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SEC. 1203. METROPOLITAN PLANNING.

    (a) General Requirements.--Section 134(a) of title 23, United
States Code, is amended to read as follows:
    ``(a) General Requirements.--
        ``(1) Findings.--It is in the national interest to encourage
    and promote the safe and efficient management, operation, and
    development of surface transportation systems that will serve the
    mobility needs of people and freight and foster economic growth and
    development within and through urbanized areas, while minimizing
    transportation-related fuel consumption and air pollution.
        ``(2) Development of plans and programs.--To accomplish the
    objective stated in paragraph (1), metropolitan planning
    organizations designated under subsection (b), in cooperation with
    the State and public transit operators, shall develop
    transportation plans and programs for urbanized areas of the State.
        ``(3) Contents.--The plans and programs for each metropolitan
    area shall provide for the development and integrated management
    and operation of transportation systems and facilities (including
    pedestrian walkways and bicycle transportation facilities) that
    will function as an intermodal transportation system for the
    metropolitan area and as an integral part of an intermodal
    transportation system for the State and the United States.
        ``(4) Process of development.--The process for developing the
    plans and programs shall provide for consideration of all modes of
    transportation and shall be continuing, cooperative, and
    comprehensive to the degree appropriate, based on the complexity of
    the transportation problems to be addressed.''.
    (b) Designation of Metropolitan Planning Organizations.--
        (1) In general.--Section 134(b) of such title is amended by
    striking paragraphs (1) and (2) and inserting the following:
        ``(1) In general.--To carry out the transportation planning
    process required by this section, a metropolitan planning
    organization shall be designated for each urbanized area with a
    population of more than 50,000 individuals--
            ``(A) by agreement between the Governor and units of
        general purpose local government that together represent at
        least 75 percent of the affected population (including the
        central city or cities as defined by the Bureau of the Census);
        or
            ``(B) in accordance with procedures established by
        applicable State or local law.
        ``(2) Structure.--Each policy board of a metropolitan planning
    organization that serves an area designated as a transportation
    management area, when designated or redesignated under this
    subsection, shall consist of--
            ``(A) local elected officials;
            ``(B) officials of public agencies that administer or
        operate major modes of transportation in the metropolitan area
        (including all transportation agencies included in the
        metropolitan planning organization as of June 1, 1991); and
            ``(C) appropriate State officials.''.
        (2) Continuing designation.--Section 134(b)(4) of such title is
    amended to read as follows:
        ``(4) Continuing designation.--A designation of a metropolitan
    planning organization under this subsection or any other provision
    of law shall remain in effect until the metropolitan planning
    organization is redesignated under paragraph (5).''.
        (3) Redesignation.--Section 134(b)(5)(A) of such title is
    amended--
            (A) by striking ``among'' and inserting ``between''; and
            (B) by striking ``which together'' and inserting ``that
        together''.
        (4) Designation of more than 1 metropolitan planning
    organization.--Section 134(b)(6) of such title is amended to read
    as follows:
        ``(6) Designation of more than 1 metropolitan planning
    organization.--More than 1 metropolitan planning organization may
    be designated within an existing metropolitan planning area only if
    the Governor and the existing metropolitan planning organization
    determine that the size and complexity of the existing metropolitan
    planning area make designation of more than 1 metropolitan planning
    organization for the area appropriate.''.
    (c) Metropolitan Planning Area Boundaries.--Section 134(c) of such
title is amended--
        (1) in the subsection heading by inserting ``Planning'' before
    ``Area'';
        (2) in the first sentence--
            (A) by striking ``For the purposes'' and inserting the
        following:
        ``(1) In general.--For the purposes''; and
            (B) by inserting ``planning'' before ``area'';
        (3) by striking the second sentence and all that follows and
    inserting the following:
        ``(2) Included area.--Each metropolitan planning area--
            ``(A) shall encompass at least the existing urbanized area
        and the contiguous area expected to become urbanized within a
        20-year forecast period; and
            ``(B) may encompass the entire metropolitan statistical
        area or consolidated metropolitan statistical area, as defined
        by the Bureau of the Census.
        ``(3) Existing metropolitan planning areas in nonattainment.--
    Notwithstanding paragraph (2), in the case of an urbanized area
    designated as a nonattainment area for ozone or carbon monoxide
    under the Clean Air Act (42 U.S.C. 7401 et seq.), the boundaries of
    the metropolitan planning area in existence as of the date of
    enactment of this paragraph shall be retained, except that the
    boundaries may be adjusted by agreement of the Governor and
    affected metropolitan planning organizations in the manner
    described in subsection (b)(5).
        ``(4) New metropolitan planning areas in nonattainment.--In the
    case of an urbanized area designated after the date of enactment of
    this paragraph as a nonattainment area for ozone or carbon
    monoxide, the boundaries of the metropolitan planning area--
            ``(A) shall be established in the manner described in
        subsection (b)(1);
            ``(B) shall encompass the areas described in paragraph
        (2)(A);
            ``(C) may encompass the areas described in paragraph
        (2)(B); and
            ``(D) may address any nonattainment area identified under
        the Clean Air Act (42 U.S.C. 7401 et seq.) for ozone or carbon
        monoxide.''; and
        (4) by aligning paragraph (1) (as designated by paragraph
    (2)(A) of this subsection) with paragraphs (2) through (4) (as
    inserted by paragraph (3) of this subsection).
    (d) Coordination in Multistate Areas.--Section 134(d) of such title
is amended to read as follows:
    ``(d) Coordination in Multistate Areas.--
        ``(1) In general.--The Secretary shall encourage each Governor
    with responsibility for a portion of a multistate metropolitan area
    and the appropriate metropolitan planning organizations to provide
    coordinated transportation planning for the entire metropolitan
    area.
        ``(2) Interstate compacts.--The consent of Congress is granted
    to any 2 or more States--
            ``(A) to enter into agreements or compacts, not in conflict
        with any law of the United States, for cooperative efforts and
        mutual assistance in support of activities authorized under
        this section as the activities pertain to interstate areas and
        localities within the States; and
            ``(B) to establish such agencies, joint or otherwise, as
        the States may determine desirable for making the agreements
        and compacts effective.
        ``(3) Lake tahoe region.--
            ``(A) Definition.--In this paragraph, the term `Lake Tahoe
        region' has the meaning given the term `region' in subdivision
        (a) of article II of the Tahoe Regional Planning Compact, as
        set forth in the first section of Public Law 96-551 (94 Stat.
        3234).
            ``(B) Transportation planning process.--The Secretary
        shall--
                ``(i) establish with the Federal land management
            agencies that have jurisdiction over land in the Lake Tahoe
            region a transportation planning process for the region;
            and
                ``(ii) coordinate the transportation planning process
            with the planning process required of State and local
            governments under this section, section 135, and chapter 53
            of title 49.
            ``(C) Interstate compact.--
                ``(i) In general.--Subject to clause (ii),
            notwithstanding subsection (b), to carry out the
            transportation planning process required by this section,
            the consent of Congress is granted to the States of
            California and Nevada to designate a metropolitan planning
            organization for the Lake Tahoe region, by agreement
            between the Governors of the States of California and
            Nevada and units of general purpose local government that
            together represent at least 75 percent of the affected
            population (including the central city or cities (as
            defined by the Bureau of the Census)), or in accordance
            with procedures established by applicable State or local
            law.
                ``(ii) Involvement of federal land management
            agencies.--

                    ``(I) Representation.--The policy board of a
                metropolitan planning organization designated under
                clause (i) shall include a representative of each
                Federal land management agency that has jurisdiction
                over land in the Lake Tahoe region.
                    ``(II) Funding.--In addition to funds made
                available to the metropolitan planning organization
                under other provisions of this title and under chapter
                53 of title 49, not more than 1 percent of the funds
                allocated under section 202 may be used to carry out
                the transportation planning process for the Lake Tahoe
                region under this subparagraph.

            ``(D) Activities.--Highway projects included in
        transportation plans developed under this paragraph--
                ``(i) shall be selected for funding in a manner that
            facilitates the participation of the Federal land
            management agencies that have jurisdiction over land in the
            Lake Tahoe region; and
                ``(ii) may, in accordance with chapter 2, be funded
            using funds allocated under section 202.
        ``(4) Recipients of other assistance.--The Secretary shall
    encourage each metropolitan planning organization to coordinate, to
    the maximum extent practicable, the design and delivery of
    transportation services within the metropolitan planning area that
    are provided--
            ``(A) by recipients of assistance under chapter 53 of title
        49; and
            ``(B) by governmental agencies and nonprofit organizations
        (including representatives of the agencies and organizations)
        that receive Federal assistance from a source other than the
        Department of Transportation to provide nonemergency
        transportation services.''.
    (e) Coordination of MPOs.--Section 134(e) of such title is
amended--
        (1) in the subsection heading by striking ``MPO's'' and
    inserting ``MPOs'';
        (2) by striking ``If'' and inserting the following:
        ``(1) Nonattainment areas.--If'';
        (3) by adding at the end the following:
        ``(2) Project located in multiple mpos.--If a project is
    located within the boundaries of more than 1 metropolitan planning
    organization, the metropolitan planning organizations shall
    coordinate plans regarding the project.''; and
        (4) by aligning paragraph (1) (as designated by paragraph (2)
    of this subsection) with paragraph (2) (as added by paragraph (3)
    of this subsection).
    (f) Scope of Planning Process.--Section 134(f) of such title is
amended to read as follows:
    ``(f) Scope of Planning Process.--
        ``(1) In general.--The metropolitan transportation planning
    process for a metropolitan area under this section shall provide
    for consideration of projects and strategies that will--
            ``(A) support the economic vitality of the metropolitan
        area, especially by enabling global competitiveness,
        productivity, and efficiency;
            ``(B) increase the safety and security of the
        transportation system for motorized and nonmotorized users;
            ``(C) increase the accessibility and mobility options
        available to people and for freight;
            ``(D) protect and enhance the environment, promote energy
        conservation, and improve quality of life;
            ``(E) enhance the integration and connectivity of the
        transportation system, across and between modes, for people and
        freight;
            ``(F) promote efficient system management and operation;
        and
            ``(G) emphasize the preservation of the existing
        transportation system.
        ``(2) Failure to consider factors.--The failure to consider any
    factor specified in paragraph (1) shall not be reviewable by any
    court under this title, subchapter II of chapter 5 of title 5, or
    chapter 7 of title 5 in any matter affecting a transportation plan,
    a transportation improvement plan, a project or strategy, or the
    certification of a planning process.''.
    (g) Long-Range Transportation Plan.--Section 134(g) of such title
is amended--
        (1) in paragraph (2) by striking ``, at a minimum'' and
    inserting ``contain, at a minimum, the following'';
        (2) in paragraph (2)(A) by striking ``Identify'' and inserting
    ``An identification of''; and
        (3) by striking paragraph (2)(B) and inserting the following:
            ``(B) A financial plan that demonstrates how the adopted
        long-range transportation plan can be implemented, indicates
        resources from public and private sources that are reasonably
        expected to be made available to carry out the plan, and
        recommends any additional financing strategies for needed
        projects and programs. The financial plan may include, for
        illustrative purposes, additional projects that would be
        included in the adopted long-range transportation plan if
        reasonable additional resources beyond those identified in the
        financial plan were available. For the purpose of developing
        the long-range transportation plan, the metropolitan planning
        organization and State shall cooperatively develop estimates of
        funds that will be available to support plan implementation.'';
        (4) in paragraph (4)--
            (A) by inserting after ``employees,'' the following:
        ``freight shippers, providers of freight transportation
        services,''; and
            (B) by inserting after ``private providers of
        transportation,'' the following: ``representatives of users of
        public transit,'';
        (5) by adding at the end the following:
        ``(6) Selection of projects from illustrative list.--
    Notwithstanding paragraph (2)(B), a State or metropolitan planning
    organization shall not be required to select any project from the
    illustrative list of additional projects included in the financial
    plan under paragraph (2)(B).'';
        (6) in the subsection heading by striking ``Long Range Plan''
    and inserting ``Long-Range Transportation Plan'';
        (7) in the headings for paragraphs (2) and (5) by striking
    ``long range plan'' and inserting ``long-range transportation
    plan''; and
        (8) by striking ``long range plan'' each place it appears and
    inserting ``long-range transportation plan''.
    (h) Metropolitan Transportation Improvement Program.--Section
134(h) of such title is amended to read as follows:
    ``(h) Metropolitan Transportation Improvement Program.--
        ``(1) Development.--
            ``(A) In general.--In cooperation with the State and any
        affected public transit operator, the metropolitan planning
        organization designated for a metropolitan area shall develop a
        transportation improvement program for the area for which the
        organization is designated.
            ``(B) Opportunity for comment.--In developing the program,
        the metropolitan planning organization, in cooperation with the
        State and any affected public transit operator, shall provide
        citizens, affected public agencies, representatives of
        transportation agency employees, freight shippers, providers of
        freight transportation services, private providers of
        transportation, representatives of users of public transit, and
        other interested parties with a reasonable opportunity to
        comment on the proposed program.
            ``(C) Funding estimates.--For the purpose of developing the
        transportation improvement program, the metropolitan planning
        organization, public transit agency, and State shall
        cooperatively develop estimates of funds that are reasonably
        expected to be available to support program implementation.
            ``(D) Updating and approval.--The program shall be updated
        at least once every 2 years and shall be approved by the
        metropolitan planning organization and the Governor.
        ``(2) Contents.--The transportation improvement program shall
    include--
            ``(A) a priority list of proposed federally supported
        projects and strategies to be carried out within each 3-year
        period after the initial adoption of the transportation
        improvement program; and
            ``(B) a financial plan that--
                ``(i) demonstrates how the transportation improvement
            program can be implemented;
                ``(ii) indicates resources from public and private
            sources that are reasonably expected to be available to
            carry out the program;
                ``(iii) identifies innovative financing techniques to
            finance projects, programs, and strategies; and
                ``(iv) may include, for illustrative purposes,
            additional projects that would be included in the approved
            transportation improvement program if reasonable additional
            resources beyond those identified in the financial plan
            were available.
        ``(3) Included projects.--
            ``(A) Projects under this chapter and chapter 53 of title
        49.--A transportation improvement program developed under this
        subsection for a metropolitan area shall include the projects
        and strategies within the area that are proposed for funding
        under this chapter and chapter 53 of title 49.
            ``(B) Projects under chapter 2.--
                ``(i) Regionally significant projects.--Regionally
            significant projects proposed for funding under chapter 2
            shall be identified individually in the transportation
            improvement program.
                ``(ii) Other projects.--Projects proposed for funding
            under chapter 2 that are not determined to be regionally
            significant shall be grouped in 1 line item or identified
            individually in the transportation improvement program.
            ``(C) Consistency with long-range transportation plan.--
        Each project shall be consistent with the long-range
        transportation plan developed under subsection (g) for the
        area.
            ``(D) Requirement of anticipated full funding.--The program
        shall include a project, or an identified phase of a project,
        only if full funding can reasonably be anticipated to be
        available for the project within the time period contemplated
        for completion of the project.
        ``(4) Notice and comment.--Before approving a transportation
    improvement program, a metropolitan planning organization shall, in
    cooperation with the State and any affected public transit
    operator, provide citizens, affected public agencies,
    representatives of transportation agency employees, freight
    shippers, providers of freight transportation services, private
    providers of transportation, representatives of users of public
    transit, and other interested parties with reasonable notice of and
    an opportunity to comment on the proposed program.
        ``(5) Selection of projects.--
            ``(A) In general.--Except as otherwise provided in
        subsection (i)(4) and in addition to the transportation
        improvement program development required under paragraph (1),
        the selection of federally funded projects for implementation
        in metropolitan areas shall be carried out, from the approved
        transportation improvement program--
                ``(i) by--

                    ``(I) in the case of projects under this chapter,
                the State; and
                    ``(II) in the case of projects under chapter 53 of
                title 49, the designated transit funding recipients;
                and

                ``(ii) in cooperation with the metropolitan planning
            organization.
            ``(B) Modifications to project priority.--Notwithstanding
        any other provision of law, action by the Secretary shall not
        be required to advance a project included in the approved
        transportation improvement program in place of another project
        in the program.
        ``(6) Selection of projects from illustrative list.--
            ``(A) No required selection.--Notwithstanding paragraph
        (2)(B)(iv), a State or metropolitan planning organization shall
        not be required to select any project from the illustrative
        list of additional projects included in the financial plan
        under paragraph (2)(B)(iv).
            ``(B) Required action by the secretary.--Action by the
        Secretary shall be required for a State or metropolitan
        planning organization to select any project from the
        illustrative list of additional projects included in the
        financial plan under paragraph (2)(B)(iv) for inclusion in an
        approved transportation improvement program.
        ``(7) Publication.--
            ``(A) Publication of transportation improvement programs.--
        A transportation improvement program involving Government
        participation shall be published or otherwise made readily
        available by the metropolitan planning organization for public
        review.
            ``(B) Publication of annual listings of projects.--An
        annual listing of projects for which Federal funds have been
        obligated in the preceding year shall be published or otherwise
        made available by the metropolitan planning organization for
        public review. The listing shall be consistent with the
        categories identified in the transportation improvement
        program.''.
    (i) Transportation Management Areas.--
        (1) Required designations.--Section 134(i)(1) of such title is
    amended to read as follows:
        ``(1) Designation.--
            ``(A) Required designations.--The Secretary shall designate
        as a transportation management area each urbanized area with a
        population of over 200,000 individuals.
            ``(B) Designations on request.--The Secretary shall
        designate any additional area as a transportation management
        area on the request of the Governor and the metropolitan
        planning organization designated for the area.''.
        (2) Selection of projects.--Section 134(i)(4) of such title is
    amended to read as follows:
        ``(4) Selection of projects.--
            ``(A) In general.--All federally funded projects carried
        out within the boundaries of a transportation management area
        under this title (excluding projects carried out on the
        National Highway System and projects carried out under the
        bridge program or the Interstate maintenance program) or under
        chapter 53 of title 49 shall be selected for implementation
        from the approved transportation improvement program by the
        metropolitan planning organization designated for the area in
        consultation with the State and any affected public transit
        operator.
            ``(B) National highway system projects.--Projects carried
        out within the boundaries of a transportation management area
        on the National Highway System and projects carried out within
        such boundaries under the bridge program or the Interstate
        maintenance program shall be selected for implementation from
        the approved transportation improvement program by the State in
        cooperation with the metropolitan planning organization
        designated for the area.''.
        (3) Certification.--Section 134(i)(5) of such title is amended
    to read as follows:
        ``(5) Certification.--
            ``(A) In general.--The Secretary shall--
                ``(i) ensure that the metropolitan planning process in
            each transportation management area is being carried out in
            accordance with applicable provisions of Federal law; and
                ``(ii) subject to subparagraph (B), certify, not less
            often than once every 3 years, that the requirements of
            this paragraph are met with respect to the transportation
            management area.
            ``(B) Requirements for certification.--The Secretary may
        make the certification under subparagraph (A) if--
                ``(i) the transportation planning process complies with
            the requirements of this section and other applicable
            requirements of Federal law; and
                ``(ii) there is a transportation improvement program
            for the area that has been approved by the metropolitan
            planning organization and the Governor.
            ``(C) Effect of failure to certify.--
                ``(i) Withholding of funds.--If a metropolitan planning
            process is not certified, the Secretary may withhold up to
            20 percent of the apportioned funds attributable to the
            transportation management area under this title and chapter
            53 of title 49.
                ``(ii) Restoration of withheld funds.--The withheld
            apportionments shall be restored to the metropolitan area
            at such time as the metropolitan planning organization is
            certified by the Secretary.
                ``(iii) Feasibility of private enterprise
            participation.--The Secretary shall not withhold
            certification under this paragraph based on the policies
            and criteria established by a metropolitan planning
            organization or transit grant recipient for determining the
            feasibility of private enterprise participation in
            accordance with section 5306(a) of title 49.
            ``(D) Review of certification.--In making certification
        determinations under this paragraph, the Secretary shall
        provide for public involvement appropriate to the metropolitan
        area under review.''.
    (j) Abbreviated Plans and Programs for Certain Areas.--Section
134(j) of such title is amended to read as follows:
    ``(j) Abbreviated Plans and Programs for Certain Areas.--
        ``(1) In general.--Subject to paragraph (2), in the case of a
    metropolitan area not designated as a transportation management
    area under this section, the Secretary may provide for the
    development of an abbreviated long-range transportation plan and
    transportation improvement program for the metropolitan area that
    the Secretary determines is appropriate to achieve the purposes of
    this section, taking into account the complexity of transportation
    problems in the area.
        ``(2) Nonattainment areas.--The Secretary may not permit
    abbreviated plans or programs for a metropolitan area that is in
    nonattainment for ozone or carbon monoxide under the Clean Air Act
    (42 U.S.C. 7401 et seq.).''.
    (k) Additional Requirements for Certain Nonattainment Areas.--
Section 134(l) of such title is amended--
        (1) by striking ``Notwithstanding'' and inserting the
    following:
        ``(1) In general.--Notwithstanding''; and
        (2) by adding at the end the following:
        ``(2) Applicability.--This subsection applies to a
    nonattainment area within the metropolitan planning area boundaries
    determined under subsection (c).''.
    (l) Funding.--Section 134(n) of such title is amended to read as
follows:
    ``(n) Funding.--
        ``(1) In general.--Funds set aside under section 104(f) of this
    title to carry out sections 5303 through 5305 of title 49 shall be
    available to carry out this section.
        ``(2) Unused funds.--Any funds that are not used to carry out
    this section may be made available by the metropolitan planning
    organization to the State to fund activities under section 135.''.
    (m) Continuation of Current Review Practice.--Section 134 of such
title is amended by adding at the end the following:
    ``(o) Continuation of Current Review Practice.--Since plans and
programs described in this section are subject to a reasonable
opportunity for public comment, since individual projects included in
the plans and programs are subject to review under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), and since
decisions by the Secretary concerning plans and programs described in
this section have not been reviewed under such Act as of January 1,
1997, any decision by the Secretary concerning a plan or program
described in this section shall not be considered to be a Federal
action subject to review under the National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.).''.
    (n) Technical Amendment.--The analysis for chapter 1 of title 23,
United States Code, is amended by striking the item relating to section
134 and inserting the following:
``134. Metropolitan planning.''.

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