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[Congressional Record: May 22, 1998 (House)]
[Page H3792-H3842]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]
[DOCID:cr22my98-159]
 


 
CONFERENCE REPORT ON H.R. 2400, TRANSPORTATION EQUITY
ACT FOR THE 21ST 
                                CENTURY

  Mr. SHUSTER submitted the following conference report and statement 
on

[[Page H3793]]

the bill (H.R. 2400) to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes:

                  Conference Report (H. Rept. 105-550)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     2400), to authorize funds for Federal-aid highways, highway 
     safety programs, and transit programs, and for other 
     purposes, having met, after full and free conference, have 
     agreed to recommend and do recommend to their respective 
     Houses as follows:
       That the House recede from its disagreement to the 
     amendment of the Senate and agree to the same with an 
     amendment as follows:
       In lieu of the matter proposed to be inserted by the Senate 
     amendment, insert the following:

     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. Inteligent 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 in 
              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. Adjustment 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.

[[Page H3794]]

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 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. Authorizations 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 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

[[Page H3795]]

     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

[[Page H3796]]

       (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

[[Page H3797]]

     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:

[[Page H3798]]

       ``(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

[[Page H3799]]

     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--

[[Page H3800]]

       ``(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.''.

[[Page H3801]]

       (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

[[Page H3802]]

     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

[[Page H3803]]

     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 non-quantitative 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 regulation, or additional administrative 
     oversight; and
       ``(ii) shall not subject the agency to any additional 
     Federal design standards or laws (including regulations) as a 
     result of providing the non-Federal share other than those to 
     which the agency is already subject.
       ``(B) Chartered multistate agencies.--When a credit that is 
     received from a chartered multistate agency is applied to a 
     non-Federal share under this subsection, such credit shall be 
     applied equally to all charter States.''.
       (d) Conforming Amendments.--Section 130(a) of such title is 
     amended--
       (1) in the first sentence by striking ``Except as provided 
     in subsection