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SEC. 1204. STATEWIDE PLANNING.

    (a) General Requirements.--Section 135(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.--Subject to section
    134 of this title and sections 5303 through 5305 of title 49, each
    State shall develop transportation plans and programs for all areas
    of the State.
        ``(3) Contents.--The plans and programs for each State shall
    provide for the development and integrated management and operation
    of transportation systems and facilities (including pedestrian
    walkways and bicycle transportation facilities) that will function
    as an intermodal transportation system for the State and an
    integral part of an intermodal transportation system for the United
    States.
        ``(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) Coordination With Metropolitan Planning; State Implementation
Plan.--Section 135(b) of such title is amended by inserting after ``of
this title'' the following: ``and sections 5303 through 5305 of title
49''.
    (c) Scope of Planning Process.--Section 135(c) of such title is
amended to read as follows:
    ``(c) Scope of Planning Process.--
        ``(1) In general.--Each State shall carry out a transportation
    planning process that provides for consideration of projects and
    strategies that will--
            ``(A) support the economic vitality of the United States,
        the States, and metropolitan areas, 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 throughout the
        State, 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.''.
    (d) Additional Requirements.--Section 135(d) of such title is
amended to read as follows:
    ``(d) Additional Requirements.--In carrying out planning under this
section, each State shall, at a minimum, consider--
        ``(1) with respect to nonmetropolitan areas, the concerns of
    local elected officials representing units of general purpose local
    government;
        ``(2) the concerns of Indian tribal governments and Federal
    land management agencies that have jurisdiction over land within
    the boundaries of the State; and
        ``(3) coordination of transportation plans, programs, and
    planning activities with related planning activities being carried
    out outside of metropolitan planning areas.''.
    (e) Long-Range Transportation Plan.--Section 135(e) of such title
is amended to read as follows:
    ``(e) Long-Range Transportation Plan.--
        ``(1) Development.--Each State shall develop a long-range
    transportation plan, with a minimum 20-year forecast period, for
    all areas of the State, that provides for the development and
    implementation of the intermodal transportation system of the
    State.
        ``(2) Consultation with governments.--
            ``(A) Metropolitan areas.--With respect to each
        metropolitan area in the State, the long-range transportation
        plan shall be developed in cooperation with the metropolitan
        planning organization designated for the metropolitan area
        under section 134 of this title and section 5303 of title 49.
            ``(B) Nonmetropolitan areas.--With respect to each
        nonmetropolitan area, the long-range transportation plan shall
        be developed in consultation with affected local officials with
        responsibility for transportation.
            ``(C) Indian tribal areas.--With respect to each area of
        the State under the jurisdiction of an Indian tribal
        government, the long-range transportation plan shall be
        developed in consultation with the tribal government and the
        Secretary of the Interior.
        ``(3) Participation by interested parties.--In developing the
    long-range transportation plan, the State shall--
            ``(A) provide citizens, affected public agencies,
        representatives of transportation agency employees, freight
        shippers, private providers of transportation, representatives
        of users of public transit, providers of freight transportation
        services, and other interested parties with a reasonable
        opportunity to comment on the proposed plan; and
            ``(B) identify transportation strategies necessary to
        efficiently serve the mobility needs of people.
        ``(4) Financial plan.--The long-range transportation plan may
    include 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 transportation plan
    if reasonable additional resources beyond those identified in the
    financial plan were available.
        ``(5) Selection of projects from illustrative list.--
    Notwithstanding paragraph (4), a State shall not be required to
    select any project from the illustrative list of additional
    projects included in the financial plan under paragraph (4).''.
    (f) State Transportation Improvement Program.--Section 135(f) of
such title is amended to read as follows:
    ``(f) State Transportation Improvement Program.--
        ``(1) Development.--
            ``(A) In general.--Each State shall develop a
        transportation improvement program for all areas of the State.
            ``(B) Consultation with governments.--
                ``(i) Metropolitan areas.--With respect to each
            metropolitan area in the State, the program shall be
            developed in cooperation with the metropolitan planning
            organization designated for the metropolitan area under
            section 134 of this title and section 5303 of title 49.
                ``(ii) Nonmetropolitan areas.--

                    ``(I) In general.--With respect to each
                nonmetropolitan area in the State, the program shall be
                developed in consultation with affected local officials
                with responsibility for transportation.
                    ``(II) Review.--Not later than 1 year after the
                date of enactment of this subclause, the State shall
                submit to the Secretary the details of the consultative
                planning process developed by the State for
                nonmetropolitan areas under subclause (I). The
                Secretary shall not review or approve such process.

                ``(iii) Indian tribal areas.--With respect to each area
            of the State under the jurisdiction of an Indian tribal
            government, the program shall be developed in consultation
            with the tribal government and the Secretary of the
            Interior.
            ``(C) Participation by interested parties.--In developing
        the program, the Governor shall provide citizens, affected
        public agencies, representatives of transportation agency
        employees, freight shippers, private providers of
        transportation, providers of freight transportation services,
        representatives of users of public transit, and other
        interested parties with a reasonable opportunity to comment on
        the proposed program.
        ``(2) Included projects.--
            ``(A) In general.--A transportation improvement program
        developed under this subsection for a State shall include
        federally supported surface transportation expenditures within
        the boundaries of the State.
            ``(B) Chapter 2 projects.--
                ``(i) Regionally significant projects.--Regionally
            significant projects proposed for funding under chapter 2
            shall be identified individually 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--
                ``(i) consistent with the long-range transportation
            plan developed under this section for the State;
                ``(ii) identical to the project as described in an
            approved metropolitan transportation improvement program;
            and
                ``(iii) in conformance with the applicable State air
            quality implementation plan developed under the Clean Air
            Act (42 U.S.C. 7401 et seq.), if the project is carried out
            in an area designated as nonattainment for ozone or carbon
            monoxide under such Act.
            ``(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.
            ``(E) Financial plan.--The transportation improvement
        program may include a financial plan that demonstrates how the
        approved transportation improvement program can be implemented,
        indicates resources from public and private sources that are
        reasonably expected to be made available to carry out the 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 transportation plan if reasonable
        additional resources beyond those identified in the financial
        plan were available.
            ``(F) Selection of projects from illustrative list.--
                ``(i) No required selection.--Notwithstanding
            subparagraph (E), a State shall not be required to select
            any project from the illustrative list of additional
            projects included in the financial plan under subparagraph
            (E).
                ``(ii) Required action by the secretary.--Action by the
            Secretary shall be required for a State to select any
            project from the illustrative list of additional projects
            included in the financial plan under subparagraph (E) for
            inclusion in an approved transportation improvement
            program.
            ``(G) Priorities.--The program shall reflect the priorities
        for programming and expenditures of funds, including
        transportation enhancement activities, required by this title.
        ``(3) Project selection for areas of less than 50,000
    population.--
            ``(A) In general.--Projects carried out in areas with
        populations of less than 50,000 individuals (excluding projects
        carried out on the National Highway System and projects carried
        out under the bridge program or the Interstate maintenance
        program) shall be selected, from the approved statewide
        transportation improvement program, by the State in cooperation
        with the affected local officials.
            ``(B) National highway system projects.--Projects carried
        out in areas described in subparagraph (A) on the National
        Highway System and projects carried out in such areas under the
        bridge program or the Interstate maintenance program shall be
        selected, from the approved statewide transportation
        improvement program, by the State in consultation with the
        affected local officials.
        ``(4) Biennial review and approval.--A transportation
    improvement program developed under this subsection shall be
    reviewed and, on a finding that the planning process through which
    the program was developed is consistent with this section, section
    134, and sections 5303 through 5305 of title 49, approved not less
    frequently than biennially by the Secretary.
        ``(5) Modifications to project priority.--Notwithstanding any
    other provision of law, action by the Secretary shall not be
    required to advance a project included in the approved statewide
    transportation improvement program in place of another project in
    the program.''.
    (g) Funding.--Section 134(g) of such title is amended by striking
``section 307(c)(1)'' and inserting ``section 505(a)''.
    (h) Continuation of Current Review Practice.--Section 135 of such
title is amended by adding at the end the following:
    ``(i) 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.).''.
    (i) Participation of Local Elected Officials.--
        (1) Study.--The Secretary shall conduct a study on the
    effectiveness of the participation of local elected officials in
    transportation planning and programming. In conducting the study,
    the Secretary shall consider the degree of cooperation between each
    State, local officials in rural areas in the State, and regional
    planning and development organizations in the State.
        (2) Report.--Not later than 2 years after the date of enactment
    of this Act, the Secretary shall transmit to Congress a report
    containing the results of the study with any recommendations the
    Secretary determines appropriate as a result of the study.

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