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SEC. 1221. TRANSPORTATION AND COMMUNITY AND SYSTEM PRESERVATION PILOT
              PROGRAM.

    (a) Establishment.--In cooperation with appropriate State,
regional, and local governments, the Secretary shall establish a
comprehensive initiative to investigate and address the relationships
between transportation and community and system preservation and
identify private sector-based initiatives.
    (b) Research.--
        (1) In general.--In cooperation with appropriate Federal
    agencies, State, regional, and local governments, and other
    entities eligible for assistance under subsection (d), the
    Secretary shall carry out a comprehensive research program to
    investigate the relationships between transportation, community
    preservation, and the environment and the role of the private
    sector in shaping such relationships.
        (2) Required elements.--The program shall provide for
    monitoring and analysis of projects carried out with funds made
    available to carry out subsections (c) and (d).
    (c) Planning.--
        (1) In general.--The Secretary shall allocate funds made
    available to carry out this subsection to States, metropolitan
    planning organizations, and local governments to plan, develop, and
    implement strategies to integrate transportation and community and
    system preservation plans and practices.
        (2) Purposes.--The purposes of the allocations shall be--
            (A) to improve the efficiency of the transportation system;
            (B) to reduce the impacts of transportation on the
        environment;
            (C) to reduce the need for costly future investments in
        public infrastructure;
            (D) to provide efficient access to jobs, services, and
        centers of trade; and
            (E) to examine development patterns and identify strategies
        to encourage private sector development patterns which achieve
        the goals identified in subparagraphs (A) through (D).
        (3) Criteria.--In allocating funds made available to carry out
    this subsection, the Secretary shall give priority to applicants
    that--
            (A) propose projects for funding that address the purposes
        described in paragraph (2); and
            (B) demonstrate a commitment of non-Federal resources to
        the proposed projects.
        (4) Additional criteria.--In addition, the Secretary shall give
    consideration to applicants that demonstrate a commitment to public
    and private involvement, including involvement of nontraditional
    partners in the project team.
    (d) Allocation of Funds for Implementation.--
        (1) In general.--The Secretary shall allocate funds made
    available to carry out this subsection to States, metropolitan
    planning organizations, and local governments to carry out projects
    to address transportation efficiency and community and system
    preservation.
        (2) Criteria.--In allocating funds made available to carry out
    this subsection, the Secretary shall give priority to applicants
    that--
            (A) have instituted preservation or development plans and
        programs that--
                (i) meet the requirements of title 23 and chapter 53 of
            title 49, United States Code; and
                (ii)(I) are coordinated with State and local adopted
            preservation or development plans;
                (II) are intended to promote cost-effective and
            strategic investments in transportation infrastructure that
            minimize adverse impacts on the environment; or
                (III) are intended to promote innovative private sector
            strategies.
            (B) have instituted other policies to integrate
        transportation and community and system preservation practices,
        such as--
                (i) spending policies that direct funds to high-growth
            areas;
                (ii) urban growth boundaries to guide metropolitan
            expansion;
                (iii) ``green corridors'' programs that provide access
            to major highway corridors for areas targeted for efficient
            and compact development; or
                (iv) other similar programs or policies as determined
            by the Secretary;
            (C) have preservation or development policies that include
        a mechanism for reducing potential impacts of transportation
        activities on the environment;
            (D) examine ways to encourage private sector investments
        that address the purposes of this section; and
            (E) propose projects for funding that address the purposes
        described in subsection (c)(2).
        (3) Equitable distribution.--In allocating funds to carry out
    this subsection, the Secretary shall ensure the equitable
    distribution of funds to a diversity of populations and geographic
    regions.
        (4) Use of allocated funds.--
            (A) In general.--An allocation of funds made available to
        carry out this subsection shall be used by the recipient to
        implement the projects proposed in the application to the
        Secretary.
            (B) Types of projects.--The allocation of funds shall be
        available for obligation for--
                (i) any project eligible for funding under title 23 or
            chapter 53 of title 49, United States Code; or
                (ii) any other activity relating to transportation and
            community and system preservation that the Secretary
            determines to be appropriate, including corridor
            preservation activities that are necessary to implement--

                    (I) transit-oriented development plans;
                    (II) traffic calming measures; or
                    (III) other coordinated transportation and
                community and system preservation practices.

    (e) Funding.--
        (1) In general.--There is authorized to be appropriated from
    the Highway Trust Fund (other than the Mass Transit Account) to
    carry out this section $20,000,000 for fiscal year 1999 and
    $25,000,000 for each of fiscal years 2000 through 2003.
        (2) Contract authority.--Funds authorized under this subsection
    shall be available for obligation in the same manner as if the
    funds were apportioned under chapter 1 of title 23, United States
    Code.

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