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[DOCID: f:publ178.105]

[[Page 112 STAT. 107]]

Public Law 105-178
105th Congress

                                 An Act


 
 To authorize funds for Federal-aid highways, highway safety programs, 
     and transit programs, and for other purposes. <<NOTE: June 9, 
                         1998 -  [H.R. 2400]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Transportation 
Equity Act for the 21st Century. Grants. Inter- governmental 
relations. Loans.>> 

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) <<NOTE: 23 USC 101 note.>>  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.

[[Page 112 STAT. 108]]

Sec. 1215. Designated transportation enhancement activities.
Sec. 1216. Innovative surface transportation financing methods.
Sec. 1217. Eligibility.
Sec. 1218. Magnetic levitation transportation technology deployment 
           program.
Sec. 1219. National scenic byways program.
Sec. 1220. Elimination of regional office responsibilities.
Sec. 1221. Transportation and community and system preservation pilot 
           program.
Sec. 1222. Additions to Appalachian region.

            Subtitle C--Program Streamlining and Flexibility

Sec. 1301. Real property acquisition and corridor preservation.
Sec. 1302. Payments to States for construction.
Sec. 1303. Proceeds from the sale or lease of real property.
Sec. 1304. Engineering cost reimbursement.
Sec. 1305. Project approval and oversight.
Sec. 1306. Standards.
Sec. 1307. Design-build contracting.
Sec. 1309. Major investment study integration.
Sec. 1309. Environmental streamlining.
Sec. 1310. Uniform transferability of Federal-aid highway funds.

                           Subtitle D--Safety

Sec. 1401. Hazard elimination program.
Sec. 1402. Roadside safety technologies.
Sec. 1403. Safety incentive grants for use of seat belts.

                           Subtitle E--Finance

Sec. 1501. Short title.
Sec. 1502. Findings.
Sec. 1503. Establishment of program.
Sec. 1504. Duties of the Secretary.

                   Subtitle F--High Priority Projects

Sec. 1601. High priority projects program.
Sec. 1602. Project authorizations.
Sec. 1603. Special rule.

                        TITLE II--HIGHWAY SAFETY

Sec. 2001. Highway safety programs.
Sec. 2002. Highway safety research and development.
Sec. 2003. Occupant protection.
Sec. 2004. Alcohol-impaired driving countermeasures.
Sec. 2005. State highway safety data improvements.
Sec. 2006. National Driver Register.
Sec. 2007. Safety studies.
Sec. 2008. Effectiveness of laws establishing maximum blood alcohol 
           concentrations.
Sec. 2009. Authorizations of appropriations.

           TITLE III--FEDERAL TRANSIT ADMINISTRATION PROGRAMS

Sec. 3001. Short title.
Sec. 3002. Amendments to title 49, United States Code.
Sec. 3003. Definitions.
Sec. 3004. Metropolitan planning.
Sec. 3005. Transportation improvement program.
Sec. 3006. Transportation management areas.
Sec. 3007. Urbanized area formula grants.
Sec. 3008. Clean fuels formula grant program.
Sec. 3009. Capital investment grants and loans.
Sec. 3010. Dollar value of mobility improvements.
Sec. 3011. Local share.
Sec. 3012. Intelligent transportation systems applications.
Sec. 3013. Formula grants and loans for special needs of elderly 
           individuals and individuals with disabilities.
Sec. 3014. Formula program for other than urbanized areas.
Sec. 3015. Research, development, demonstration, and training projects.
Sec. 3016. National planning and research programs.
Sec. 3017. National Transit Institute.
Sec. 3018. Bus testing facilities.
Sec. 3019. Bicycle facilities.
Sec. 3020. General provisions on assistance.

[[Page 112 STAT. 109]]

Sec. 3021. Pilot program for intercity rail infrastructure investment 
           from mass transit account of highway trust fund.
Sec. 3022. Contract requirements.
Sec. 3023. Special procurements.
Sec. 3024. Project management oversight and review.
Sec. 3025. Administrative procedures.
Sec. 3026. Reports and audits.
Sec. 3027. Apportionment of appropriations for formula grants.
Sec. 3028. Apportionment of appropriations for fixed guideway 
           modernization.
Sec. 3029. Authorizations.
Sec. 3030. Projects for new fixed guideway systems and extensions to 
           existing systems.
Sec. 3031. Projects for bus and bus-related facilities.
Sec. 3032. Contracting out study.
Sec. 3033. Urbanized area formula study.
Sec. 3034. Coordinated transportation services.
Sec. 3035. Final assembly of buses.
Sec. 3036. Clean fuel vehicles.
Sec. 3037. Job access and reverse commute grants.
Sec. 3038. Rural transportation accessibility incentive program.
Sec. 3039. Study of transit needs in national parks and related public 
           lands.
Sec. 3040. Obligation ceiling.
Sec. 3041. Adjustments for the Surface Transportation Extension Act of 
           1997.

                     TITLE IV--MOTOR CARRIER SAFETY

Sec. 4001. Amendments to title 49, United States Code.
Sec. 4002. Statement of purposes.
Sec. 4003. State grants.
Sec. 4004. Information systems.
Sec. 4005. Automobile transporter defined.
Sec. 4006. Inspections and reports.
Sec. 4007. Waivers, exemptions, and pilot programs.
Sec. 4008. Safety regulation.
Sec. 4009. Safety fitness.
Sec. 4010. Repeal of certain obsolete miscellaneous authorities.
Sec. 4011. Commercial vehicle operators.
Sec. 4012. Exemption from certain regulations for utility service 
           commercial motor vehicle drivers.
Sec. 4013. Participation in international registration plan and 
           international fuel tax agreement.
Sec. 4014. Safety performance history of new drivers; limitation on 
           liability.
Sec. 4015. Penalties.
Sec. 4016. Authority over charter bus transportation.
Sec. 4017. Telephone hotline for reporting safety violations.
Sec. 4018. Insulin treated diabetes mellitus.
Sec. 4019. Performance-based CDL testing.
Sec. 4020. Post-accident alcohol testing.
Sec. 4021. Driver fatigue.
Sec. 4022. Improved flow of driver history pilot program.
Sec. 4023. Employee protections.
Sec. 4024. Improved interstate school bus safety.
Sec. 4025. Truck trailer conspicuity.
Sec. 4026. DOT implementation plan.
Sec. 4027. Study of adequacy of parking facilities.
Sec. 4028. Qualifications of foreign motor carriers.
Sec. 4029. Federal motor carrier safety inspectors.
Sec. 4030. School transportation safety.
Sec. 4031. Designation of New Mexico commercial zone.
Sec. 4032. Effects of MCSAP grant reductions.

                    TITLE V--TRANSPORTATION RESEARCH

                           Subtitle A--Funding

Sec. 5001. Authorization of appropriations.
Sec. 5002. Obligation ceiling.
Sec. 5003. Notice.

                   Subtitle B--Research and Technology

Sec. 5101. Research and technology program.
Sec. 5102. Surface transportation research.
Sec. 5103. Technology deployment.

[[Page 112 STAT. 110]]

Sec. 5104. Training and education.
Sec. 5105. State planning and research.
Sec. 5106. International highway transportation outreach program.
Sec. 5107. Surface transportation-environment cooperative research 
           program.
Sec. 5108. Surface transportation research strategic planning.
Sec. 5109. Bureau of Transportation Statistics.
Sec. 5110. University transportation research.
Sec. 5111. Advanced vehicle technologies program.
Sec. 5112. Study of future strategic highway research program.
Sec. 5113. Commercial remote sensing products and spatial information 
           technologies.
Sec. 5114. Sense of the Congress on the year 2000 problem.
Sec. 5115. International trade traffic.
Sec. 5116. University grants.
Sec. 5117. Transportation technology innovation and demonstration 
           program.
Sec. 5118. Drexel University Intelligent Infrastructure Institute.
Sec. 5119. Conforming amendments.

             Subtitle C--Intelligent Transportation Systems

Sec. 5201. Short title.
Sec. 5202. Findings.
Sec. 5203. Goals and purposes.
Sec. 5204. General authorities and requirements.
Sec. 5205. National ITS program plan.
Sec. 5206. National architecture and standards.
Sec. 5207. Research and development.
Sec. 5208. Intelligent transportation system integration program.
Sec. 5209. Commercial vehicle intelligent transportation system 
           infrastructure deployment.
Sec. 5210. Use of funds.
Sec. 5211. Definitions.
Sec. 5212. Project funding.
Sec. 5213. Repeal.

            TITLE VI--OZONE AND PARTICULATE MATTER STANDARDS

Sec. 6101. Findings and purpose.
Sec. 6102. Particulate matter monitoring program.
Sec. 6103. Ozone designation requirements.
Sec. 6104. Additional provisions.

                        TITLE VII--MISCELLANEOUS

              Subtitle A--Automobile Safety and Information

Sec. 7101. Short title.
Sec. 7102. Authorization of appropriations.
Sec. 7103. Improving air bag safety.
Sec. 7104. Restrictions on lobbying activities.
Sec. 7105. Odometers.
Sec. 7106. Miscellaneous amendments.
Sec. 7107. Importation of motor vehicle for show or display.

                          Subtitle B--Railroads

Sec. 7201. High-speed rail.
Sec. 7202. Light density rail line pilot projects.
Sec. 7203. Railroad rehabilitation and improvement financing.
Sec. 7204. Alaska Railroad.

             Subtitle C--Comprehensive One-Call Notification

Sec. 7301. Findings.
Sec. 7302. One-call notification programs.

               Subtitle D--Sportfishing and Boating Safety

Sec. 7401. Short title; amendment of 1950 Act.
Sec. 7402. Outreach and communications programs.
Sec. 7403. Clean Vessel Act funding.
Sec. 7404. Boating infrastructure.
Sec. 7405. Boat safety funds.

 TITLE VIII--TRANSPORTATION DISCRETIONARY SPENDING GUARANTEE AND BUDGET 
                                 OFFSETS

       Subtitle A--Transportation Discretionary Spending Guarantee

Sec. 8101. Discretionary spending categories.

[[Page 112 STAT. 111]]

Sec. 8102. Conforming the Paygo Scorecard with this Act.
Sec. 8103. Level of obligation limitations.

                     Subtitle B--Veterans' Benefits

Sec. 8201. Short title.
Sec. 8202. Prohibition on establishment of service-connection for 
           disabilities relating to use of tobacco products.
Sec. 8203. Twenty percent increase in rates of basic educational 
           assistance under Montgomery GI Bill.
Sec. 8204. Increase in assistance amount for specially adapted housing.
Sec. 8205. Increase in amount of assistance for automobile and adaptive 
           equipment for certain disabled veterans.
Sec. 8206. Increase in aid and attendance rates for veterans eligible 
           for pension.
Sec. 8207. Eligibility of certain remarried surviving spouses for 
           reinstatement of dependency and indemnity compensation upon 
           termination of that remarriage.
Sec. 8208. Extension of prior revision to offset rule for Department of 
           Defense special separation benefit program.
Sec. 8209. Sense of the Congress concerning recovery from tobacco 
           companies of costs of treatment of veterans for tobacco-
           related illnesses.

              Subtitle C--Temporary Student Loan Provision.

Sec. 8301. Temporary student loan provision.

              Subtitle D--Block Grants for Social Services

Sec. 8401. Block grants for social services.

          TITLE IX--AMENDMENTS OF INTERNAL REVENUE CODE OF 1986

Sec. 9001. Short title; amendment of 1986 Code.
Sec. 9002. Extension of highway-related taxes and trust fund.
Sec. 9003. Extension and modification of tax benefits for alcohol fuels.
Sec. 9004. Modifications to Highway Trust Fund.
Sec. 9005. Provisions relating to Aquatic Resources Trust Fund.
Sec. 9006. Repeal of 1.25 cent tax rate on rail diesel fuel.
Sec. 9007. Additional qualified expenses available to non-Amtrak States.
Sec. 9008. Delay in effective date of new requirement for approved 
           diesel or kerosene terminals.
Sec. 9009. Simplified fuel tax refund procedures.
Sec. 9010. Election to receive taxable cash compensation in lieu of 
           nontaxable qualified transportation fringe benefits.
Sec. 9011. Repeal of National Recreational Trails Trust Fund.
Sec. 9012. Identification of limited tax benefits subject to line item 
           veto.

SEC. <<NOTE: 23 USC 101 note.>>  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.

[[Page 112 STAT. 112]]

            (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

[[Page 112 STAT. 113]]

        facilities under section 1064 of the Intermodal Surface 
        Transportation Efficiency Act of 1991 (23 U.S.C. 129 note; 105 
        Stat. 2005) $30,000,000 for each of fiscal year 1998 and 
        $38,000,000 for each of fiscal years 1999 through 2003.
            (11) National scenic byways program.--For the national 
        scenic byways program under section 162 of title 23, United 
        States Code, $23,500,000 for each of fiscal years 1998 and 1999, 
        $24,500,000 for each of fiscal years 2000 and 2001, and 
        $25,500,000 for fiscal year 2002, and $26,500,000 for fiscal 
        year 2003.
            (12) Value pricing pilot program.--For the value pricing 
        pilot program under section 1012(b) of the Intermodal Surface 
        Transportation Efficiency Act of 1991 (23 U.S.C. 149 note; 105 
        Stat. 1938) $7,000,000 for fiscal year 1999, and $11,000,000 for 
        each of fiscal years 2000 through 2003.
            (13) High priority projects program.--For the high priority 
        projects program under section 117 of title 23, United States 
        Code, $1,025,695,000 for fiscal year 1998, $1,398,675,000 for 
        fiscal year 1999, $1,678,410,000 for fiscal year 2000, 
        $1,678,410,000 for fiscal year 2001, $1,771,655,000 for fiscal 
        year 2002, and $1,771,655,000 for fiscal year 2003.
            (14) Highway use tax evasion projects.--For highway use tax 
        evasion projects under section 143 of such title $5,000,000 for 
        each of fiscal years 1998 through 2003.
            (15) Commonwealth of puerto rico highway program.--For the 
        Commonwealth of Puerto Rico highway program under section 
        1214(r) of this Act $110,000,000 for fiscal years 1998 through 
        2003.

    (b) Disadvantaged Business Enterprises.-- <<NOTE: 23 USC 101 
note.>> 
            (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) <<NOTE: Notification.>>  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)

[[Page 112 STAT. 114]]

        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) <<NOTE: Reports.>>  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

[[Page 112 STAT. 115]]

                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. <<NOTE: 23 USC 104 note.>> 

    (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.

[[Page 112 STAT. 116]]

    (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

[[Page 112 STAT. 117]]

        under paragraph (3) by the sums authorized to be appropriated 
        for such section (except in the case of section 105, 
        $2,000,000,000) for such fiscal year;
            (5) distribute the obligation authority provided by 
        subsection (a) less the aggregate amounts not distributed under 
        paragraphs (1) and (2) and amounts distributed under paragraph 
        (4) for each of the programs that are allocated by the Secretary 
        under this Act and title 23, United States Code (other than 
        activities to which paragraph (1) applies and programs to which 
        paragraph (4) applies) by multiplying the ratio determined under 
        paragraph (3) by the sums authorized to be appropriated for such 
        program for such fiscal year; and
            (6) distribute the obligation authority provided by 
        subsection (a) less the aggregate amounts not distributed under 
        paragraphs (1) and (2) and amounts distributed under paragraphs 
        (4) and (5) for Federal-aid highway and highway safety 
        construction programs (other than the minimum guarantee program, 
        but only to the extent that amounts apportioned for the minimum 
        guarantee program for such fiscal year exceed $2,639,000,000, 
        and the Appalachian development highway system program) that are 
        apportioned by the Secretary under this Act and title 23, United 
        States Code, in the ratio that--
                    (A) sums authorized to be appropriated for such 
                programs that are apportioned to each State for such 
                fiscal year, bear to
                    (B) the total of the sums authorized to be 
                appropriated for such programs that are apportioned to 
                all States for such fiscal year.

    (d) Redistribution of Unused Obligation Authority.--Notwithstanding 
subsection (c), the Secretary shall after August 1 of each of fiscal 
years 1998 through 2003 revise a distribution of the obligation 
authority made available under subsection (c) if a State will not 
obligate the amount distributed during that fiscal year and redistribute 
sufficient amounts to those States able to obligate amounts in addition 
to those previously distributed during that fiscal year giving priority 
to those States having large unobligated balances of funds apportioned 
under sections 104 and 144 of title 23, United States Code, under 
section 160 of title 23, United States Code (as in effect on the day 
before the date of enactment of this Act), and under section 1015 of the 
Intermodal Surface Transportation Act of 1991 (105 Stat. 1943-1945).
    (e) Applicability of Obligation Limitations to Transportation 
Research Programs.--Obligation limitations imposed by subsection (a) 
shall apply to transportation research programs carried out under 
chapter 3 of title 23, United States Code, and under title VI of this 
Act.
    (f) Redistribution of Certain Authorized Funds.--Not later than 30 
days after the date of the distribution of obligation authority under 
subsection (c) for each of fiscal years 1998 through 2003, the Secretary 
shall distribute to the States any funds (1) that are authorized to be 
appropriated for such fiscal year for Federal-aid highway programs 
(other than the program under section 160 of title 23, United States 
Code) and for carrying out subchapter I of chapter 311 of title 49, 
United States Code, and chapter 4 of title 23, United States Code, and 
(2) that the Secretary determines will not be allocated to the States, 
and will not be available for obligation, in such fiscal year due to the 
imposition of any

[[Page 112 STAT. 118]]

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

[[Page 112 STAT. 119]]

        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 <<NOTE: 23 USC 
104.>>  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--

[[Page 112 STAT. 120]]

                          ``(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

[[Page 112 STAT. 121]]

                      of such Act (42 U.S.C. 7512 et seq.) as a 
                      nonattainment area described in section 149(b) for 
                      carbon monoxide but has been redesignated as a 
                      maintenance area, the weighted nonattainment or 
                      maintenance area population of the area, as 
                      determined under clauses (i) through (vi) of 
                      subparagraph (B), shall be further multiplied by a 
                      factor of 1.1.
                    ``(D) Minimum apportionment.--Notwithstanding any 
                other provision of this paragraph, each State shall 
                receive a minimum of \1/2\ of 1 percent of the funds 
                apportioned under this paragraph.
                    ``(E) Determinations of population.--In determining 
                population figures for the purposes of this paragraph, 
                the Secretary shall use the latest available annual 
                estimates prepared by the Secretary of Commerce.
            ``(3) Surface transportation program.--
                    ``(A) In general.--For the surface transportation 
                program, in accordance with the following formula:
                          ``(i) 25 percent of the apportionments in the 
                      ratio that--
                                    ``(I) the total lane miles of 
                                Federal-aid highways in each State; 
                                bears to
                                    ``(II) the total lane miles of 
                                Federal-aid highways in all States.
                          ``(ii) 40 percent of the apportionments in the 
                      ratio that--
                                    ``(I) the total vehicle miles 
                                traveled on lanes on Federal-aid 
                                highways in each State; bears to
                                    ``(II) the total vehicle miles 
                                traveled on lanes on Federal-aid 
                                highways in all States.
                          ``(iii) 35 percent of the apportionments in 
                      the ratio that--
                                    ``(I) the estimated tax payments 
                                attributable to highway users in each 
                                State paid into the Highway Trust Fund 
                                (other than the Mass Transit Account) in 
                                the latest fiscal year for which data 
                                are available; bears to
                                    ``(II) the estimated tax payments 
                                attributable to highway users in all 
                                States paid into the Highway Trust Fund 
                                (other than the Mass Transit Account) in 
                                the latest fiscal year for which data 
                                are available.
                    ``(B) Minimum apportionment.--Notwithstanding 
                subparagraph (A), each State shall receive a minimum of 
                \1/2\ of 1 percent of the funds apportioned under this 
                paragraph.
            ``(4) Interstate maintenance component.--For resurfacing, 
        restoring, rehabilitating, and reconstructing the Interstate 
        System--
                    ``(A) 33\1/3\ percent in the ratio that--
                          ``(i) the total lane miles on Interstate 
                      System routes open to traffic in each State; bears 
                      to
                          ``(ii) the total of all such lane miles in all 
                      States;
                    ``(B) 33\1/3\ percent in the ratio that--
                          ``(i) the total vehicle miles traveled on 
                      lanes on Interstate System routes designated 
                      under--
                                    ``(I) section 103;

[[Page 112 STAT. 122]]

                                    ``(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 <<NOTE: 23 USC 104.>>  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.

[[Page 112 STAT. 123]]

                    ``(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-- <<NOTE: 23 USC 104.>> 
            (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.--

[[Page 112 STAT. 124]]

            ``(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 <<NOTE: 23 USC 104.>>  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

[[Page 112 STAT. 125]]

                    ``(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 <<NOTE: 23 USC 104.>>  by inserting after subsection 
(j) the following:

    ``(k) Transfer of Highway and Transit Funds.--
            ``(1) Transfer of highway funds.--Funds made available under 
        this title and transferred for transit projects of a type 
        described in section 133(b)(2) shall be administered by the 
        Secretary in accordance with chapter 53 of title 49, except that 
        the provisions of this title relating to the non-Federal share 
        shall apply to the transferred funds.
            ``(2) Transfer of transit funds.--Funds made available under 
        chapter 53 of title 49 and transferred for highway projects 
        shall be administered by the Secretary in accordance with this 
        title, except that the provisions of such chapter relating to 
        the non-Federal share shall apply to the transferred funds.
            ``(3) Transfer of obligation authority.--Obligation 
        authority provided for projects described in paragraphs (1) and 
        (2) shall be transferred in the same manner and amount as the 
        funds for the projects are transferred.''.

    (j) Effect of Certain Delay in Deposits Into Highway Trust Fund.--
Section 104 of such title is amended by adding at the end the following:
    ``(l) Effect of Certain Delay in Deposits Into Highway Trust Fund.--
Notwithstanding any other provision of law, deposits into the Highway 
Trust Fund resulting from the application of section 901(e) of the 
Taxpayer Relief Act of 1997 (111 Stat. 872) shall not be taken into 
account in determining the apportionments and allocations that any State 
shall be entitled to receive under the Transportation Equity Act for the 
21st Century and this title.''.
    (k) Technical Amendments.--Section 104(f) of such title is amended--
            (1) by striking ``(f)(1) On'' and inserting the following:

    ``(f) Metropolitan Planning.--
            ``(1) Set-aside.--On'';
            (2) in paragraph (1) by striking ``, except that'' and all 
        that follows through ``programs'';
            (3) by striking ``(2) These'' and inserting the following:
            ``(2) Apportionment to states of set-aside funds.--These'';
            (4) by striking ``(3) The'' and inserting the following:
            ``(3) Use of funds.--The'';
            (5) by striking ``(4) The'' and inserting the following:
            ``(4) Distribution of funds within states.--The''; and
            (6) by aligning the remainder of the text of each of 
        paragraphs (1) through (4) with paragraph (5).

    (l) Conforming Amendments.--
            (1) Section 146(a) of such title is amended in the first 
        sentence by striking ``, 104(b)(2), and 104(b)(6)'' and 
        inserting ``and 104(b)(3)''.
            (2) Section 158 of such title is amended--
                    (A) in subsection (a)--
                          (i) by striking paragraph (1);
                          (ii) by redesignating paragraphs (2) and (3) 
                      as paragraphs (1) and (2), respectively;

[[Page 112 STAT. 126]]

                          (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 <<NOTE: 23 
        USC 115.>>  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) <<NOTE: 23 USC 104 note.>>  Adjustments for the Surface 
Transportation Extension Act of 1997.--

[[Page 112 STAT. 127]]

            (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) <<NOTE: 23 USC 101 note.>>  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).

[[Page 112 STAT. 128]]

    ``(b) State Percentages.--The percentage for each State referred to 
in subsection (a) shall be determined in accordance with the following 
table:

``States:                                                     Percentage
        Alabama................................................. 2.0269 
        Alaska.................................................. 1.1915 
        Arizona................................................. 1.5581 
        Arkansas................................................ 1.3214 
        California.............................................. 9.1962 
        Colorado................................................ 1.1673 
        Connecticut............................................. 1.5186 
        Delaware................................................ 0.4424 
        District of Columbia.................................... 0.3956 
        Florida................................................. 4.6176 
        Georgia................................................. 3.5104 
        Hawaii.................................................. 0.5177 
        Idaho................................................... 0.7718 
        Illinois................................................ 3.3819 
        Indiana................................................. 2.3588 
        Iowa.................................................... 1.2020 
        Kansas.................................................. 1.1717 
        Kentucky................................................ 1.7365 
        Louisiana............................................... 1.5900 
        Maine................................................... 0.5263 
        Maryland................................................ 1.5087 
        Massachusetts........................................... 1.8638 
        Michigan................................................ 3.1535 
        Minnesota............................................... 1.4993 
        Mississippi............................................. 1.2186 
        Missouri................................................ 2.3615 
        Montana................................................. 0.9929 
        Nebraska................................................ 0.7768 
        Nevada.................................................. 0.7248 
        New Hampshire........................................... 0.5163 
        New Jersey.............................................. 2.5816 
        New Mexico.............................................. 0.9884 
        New York................................................ 5.1628 
        North Carolina.......................................... 2.8298 
        North Dakota............................................ 0.6553 
        Ohio.................................................... 3.4257 
        Oklahoma................................................ 1.5419 
        Oregon.................................................. 1.2183 
        Pennsylvania............................................ 4.9887 
        Rhode Island............................................ 0.5958 
        South Carolina.......................................... 1.5910 
        South Dakota............................................ 0.7149 
        Tennessee............................................... 2.2646 
        Texas................................................... 7.2131 
        Utah.................................................... 0.7831 
        Vermont................................................. 0.4573 
        Virginia................................................ 2.5627 
        Washington.............................................. 1.7875 
        West Virginia........................................... 1.1319 
        Wisconsin............................................... 1.9916 
        Wyoming................................................. 0.6951 

    ``(c) Treatment of Funds.--
            ``(1) Programmatic distribution.--The Secretary shall 
        apportion 50 percent of the amounts made available under this 
        section that exceed $2,800,000,000 so that the amount 
        apportioned to each State under this paragraph for each program 
        referred to in subsection (a) (other than metropolitan planning, 
        minimum guarantee, high priority projects, Appalachian 
        development highway system, and recreational trails programs) is 
        equal to the amount determined by multiplying the amount to be 
        apportioned under this paragraph by the ratio that--

[[Page 112 STAT. 129]]

                    ``(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.''.

[[Page 112 STAT. 130]]

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.''.

[[Page 112 STAT. 131]]

    (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. <<NOTE: 23 USC 103 note.>> 

    (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.

[[Page 112 STAT. 132]]

            ``(4) Modifications to nhs.--
                    ``(A) In general.--The Secretary may make any 
                modification, including any modification consisting of a 
                connector to a major intermodal terminal, to the 
                National Highway System that is proposed by a State or 
                that is proposed by a State and revised by the Secretary 
                if the Secretary determines that the modification--
                          ``(i) meets the criteria established for the 
                      National Highway System under this title; and
                          ``(ii) enhances the national transportation 
                      characteristics of the National Highway System.
                    ``(B) Cooperation.--
                          ``(i) In general.--In proposing a modification 
                      under this paragraph, a State shall cooperate with 
                      local and regional officials.
                          ``(ii) Urbanized areas.--In an urbanized area, 
                      the local officials shall act through the 
                      metropolitan planning organization designated for 
                      the area under section 134.
            ``(5) Congressional high priority corridors.--Upon the 
        completion of feasibility studies, the Secretary shall add to 
        the National Highway System any congressional high priority 
        corridor or any segment of such a corridor established by 
        section 1105 of the Intermodal Surface Transportation Efficiency 
        Act of 1991 (105 Stat. 2031 et seq.) that was not identified on 
        the National Highway System described in paragraph (1).
            ``(6) Eligible projects for nhs.--Subject to approval by the 
        Secretary, funds apportioned to a State under section 104(b)(1) 
        for the National Highway System may be obligated for any of the 
        following:
                    ``(A) Construction, reconstruction, resurfacing, 
                restoration, and rehabilitation of segments of the 
                National Highway System.
                    ``(B) Operational improvements for segments of the 
                National Highway System.
                    ``(C) Construction of, and operational improvements 
                for, a Federal-aid highway not on the National Highway 
                System, and construction of a transit project eligible 
                for assistance under chapter 53 of title 49, if--
                          ``(i) the highway or transit project is in the 
                      same corridor as, and in proximity to, a fully 
                      access-controlled highway designated as a part of 
                      the National Highway System;
                          ``(ii) the construction or improvements will 
                      improve the level of service on the fully access-
                      controlled highway described in clause (i) and 
                      improve regional traffic flow; and
                          ``(iii) the construction or improvements are 
                      more cost-effective than an improvement to the 
                      fully access-controlled highway described in 
                      clause (i).
                    ``(D) Highway safety improvements for segments of 
                the National Highway System.
                    ``(E) Transportation planning in accordance with 
                sections 134 and 135.
                    ``(F) Highway research and planning in accordance 
                with chapter 5.
                    ``(G) Highway-related technology transfer 
                activities.

[[Page 112 STAT. 133]]

                    ``(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).

[[Page 112 STAT. 134]]

                          ``(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.--

[[Page 112 STAT. 135]]

                                    ``(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

[[Page 112 STAT. 136]]

        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) <<NOTE: 23 USC 103 note.>>  Unobligated Balances of Interstate 
Substitute Funds.--Unobligated balances of funds apportioned to a State 
under section 103(e)(4)(H) of title 23, United States Code (as in effect 
on the day before the date of enactment of this Act), shall be available 
for obligation by the State under the law (including regulations, 
policies, and procedures) relating to the obligation and expenditure of 
the funds in effect on that date.

    (c) Conforming Amendments.--
            (1)(A) Section 115(a) of title 23, United States Code, is 
        amended--
                    (i) in the subsection heading by striking 
                ``Substitute,''; and
                    (ii) in paragraph (1)(A)(i) by striking 
                ``103(e)(4)(H),'';
            (B) Section 118 of such title is amended--
                    (i) by striking subsection (d); and
                    (ii) by redesignating subsections (e) and (f) as 
                subsections (d) and (e), respectively.
            (C) Section 129(b) of such title is amended in the first 
        sentence by striking ``which has been'' and all that follows 
        through ``and has not'' and inserting ``which is a public road 
        and has not''.
            (2)(A) Section 139 of such title, and the item relating to 
        such section in the analysis for chapter 1 of such title, are 
        repealed.
            (B) Section 127(f) of such title is amended by striking 
        ``section 139(a)'' and inserting ``section 103(c)(4)(A)''.
            (C) Section 1105(e)(5) of the Intermodal Surface 
        Transportation Efficiency Act of 1991 (109 Stat. 597) is amended 
        by striking subparagraph (B) and inserting the following:
                    ``(B) Treatment of segments.--Subject to 
                subparagraph (C), segments designated as parts of the 
                Interstate System under this paragraph shall be treated 
                in the same manner as segments designated under section 
                103(c)(4)(A) of title 23, United States Code.''.

    (d) Intermodal Freight Connectors Study.-- <<NOTE: 23 USC 103 
note.>> 
            (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.

[[Page 112 STAT. 137]]

            (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

[[Page 112 STAT. 138]]

        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.-- <<NOTE: 23 USC 119 note.>> 
            (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)--

[[Page 112 STAT. 139]]

                    (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-- <<NOTE: 23 USC 133.>> 
            (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.--

[[Page 112 STAT. 140]]

                          ``(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 <<NOTE: 23 
USC 133.>> 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) <<NOTE: Certification.>>  certifies that 
                      the State will meet all the requirements of this 
                      section; and
                          ``(ii) <<NOTE: Notification.>>  notifies the 
                      Secretary of the amount of obligations needed to 
                      carry out the program under this section.
                    ``(B) Request for adjustments of amounts.--Each 
                State shall request from the Secretary such adjustments 
                to the amount of obligations referred to in subparagraph 
                (A)(ii) as the State determines to be necessary.
                    ``(C) Effect of approval by the secretary.--Approval 
                by the Secretary of a project agreement under 
                subparagraph (A) shall be deemed a contractual 
                obligation of the United States to pay surface 
                transportation program funds made available under this 
                title.''.

    (d) Payments.--Section 133(e)(3)(A) of such title is amended by 
striking the second sentence.
    (e) Surface Transportation Program Obligations in Urban Areas.--
Section 133 of such title is amended to read as follows:
    ``(f) Obligation Authority.--
            ``(1) In general.--A State that is required to obligate in 
        an urbanized area with an urbanized area population of over 
        200,000 individuals under subsection (d) funds apportioned to 
        the State under section 104(b)(3) shall make available during 
        the period of fiscal years 1998 through 2000 and the period of 
        fiscal years 2001 through 2003 an amount of obligation authority 
        distributed to the State for Federal-aid highways and highway 
        safety construction programs for use in the area that is equal 
        to the amount obtained by multiplying--
                    ``(A) the aggregate amount of funds that the State 
                is required to obligate in the area under subsection (d) 
                during the period; and
                    ``(B) the ratio that--

[[Page 112 STAT. 141]]

                          ``(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) <<NOTE: 23 USC 133 note.>>  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) <<NOTE: 23 USC 133 note.>>  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 availab