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                      TITLE I--FEDERAL-AID HIGHWAYS  
  
                 Subtitle A--Authorizations and Programs  
  
SEC. 1101. AUTHORIZATION OF APPROPRIATIONS.  
  
    (a) In General.--The following sums are authorized to be   
appropriated out of the Highway Trust Fund (other than the Mass Transit   
Account):  
            (1) Interstate maintenance program.--For the Interstate   
        maintenance program under section 119 of title 23, United States   
        Code, $3,427,341,000 for fiscal year 1998, $3,957,103,000 for   
        fiscal year 1999, $3,994,524,000 for fiscal year 2000,   
        $4,073,322,000 for fiscal year 2001, $4,139,630,000 for fiscal   
        year 2002, and $4,217,635,000 for fiscal year 2003.  
            (2) National highway system.--For the National Highway   
        System under section 103 of such title $4,112,480,000 for fiscal   
        year 1998, $4,748,523,000 for fiscal year 1999, $4,793,429,000   
        for fiscal year 2000, $4,887,986,000 for fiscal year 2001,   
        $4,967,556,000 for fiscal year 2002, and $5,061,162,000 for   
        fiscal year 2003.  
            (3) Bridge program.--For the bridge program under section   
        144 of such title $2,941,454,000 for fiscal year 1998,   
        $3,395,354,000 for fiscal year 1999, $3,427,472,000 for fiscal   
        year 2000, $3,495,104,000 for fiscal year 2001, $3,552,016,000   
        for fiscal year 2002, and $3,618,966,000 for fiscal year 2003.  
            (4) Surface transportation program.--For the surface   
        transportation program under section 133 of such title   
        $4,797,620,000 for fiscal year 1998, $5,539,944,000 for fiscal   
        year 1999, $5,592,333,000 for fiscal year 2000, $5,702,651,000   
        for fiscal year 2001, $5,795,482,000 for fiscal year 2002, and   
        $5,904,689,000 for fiscal year 2003.  
            (5) Congestion mitigation and air quality improvement   
        program.--For the congestion mitigation and air quality   
        improvement program under section 149 of such title   
        $1,192,619,000 for fiscal year 1998, $1,345,415,000 for fiscal   
        year 1999, $1,358,138,000 for fiscal year 2000, $1,384,930,000   
        for fiscal year 2001, $1,407,474,000 for fiscal year 2002, and   
        $1,433,996,000 for fiscal year 2003.  
            (6) Appalachian development highway system program.--For the   
        Appalachian development highway system program under section 201   
        of the Appalachian Regional Development Act of 1965 (40 U.S.C.   
        App.) $450,000,000 for each of fiscal years 1999 through 2003.  
            (7) Recreational trails program.--For the recreational   
        trails program under section 206 of such title $30,000,000 for   
        fiscal year 1998, $40,000,000 for fiscal year 1999, and   
        $50,000,000 for each of fiscal years 2000 through 2003.  
            (8) Federal lands highways program.--  
                    (A) Indian reservation roads.--For Indian   
                reservation roads under section 204 of such title   
                $225,000,000 for fiscal year 1998 and $275,000,000 for   
                each of fiscal years 1999 through 2003.  
                    (B) Public lands highways.--For public lands   
                highways under section 204 of such title $196,000,000   
                for fiscal year 1998 and $246,000,000 for each of fiscal   
                years 1999 through 2003.  
                    (C) Park roads and parkways.--For park roads and   
                parkways under section 204 of such title $115,000,000   
                for fiscal year 1998 and $165,000,000 for each of fiscal   
                years 1999 through 2003.  
                    (D) Refuge roads.--For refuge roads under section   
                204 of such title $20,000,000 for each of fiscal years   
                1999 through 2003.  
            (9) National corridor planning and development and   
        coordinated border infrastructure programs.--For the national   
        corridor planning and development and coordinated border   
        infrastructure programs under sections 1118 and 1119 of this Act   
        $140,000,000 for each of fiscal years 1999 through 2003.  
            (10) Construction of ferry boats and ferry terminal   
        facilities.--For construction of ferry boats and ferry terminal  
        facilities under section 1064 of the Intermodal Surface   
        Transportation Efficiency Act of 1991 (23 U.S.C. 129 note; 105   
        Stat. 2005) $30,000,000 for each of fiscal year 1998 and   
        $38,000,000 for each of fiscal years 1999 through 2003.  
            (11) National scenic byways program.--For the national   
        scenic byways program under section 162 of title 23, United   
        States Code, $23,500,000 for each of fiscal years 1998 and 1999,   
        $24,500,000 for each of fiscal years 2000 and 2001, and   
        $25,500,000 for fiscal year 2002, and $26,500,000 for fiscal   
        year 2003.  
            (12) Value pricing pilot program.--For the value pricing   
        pilot program under section 1012(b) of the Intermodal Surface   
        Transportation Efficiency Act of 1991 (23 U.S.C. 149 note; 105   
        Stat. 1938) $7,000,000 for fiscal year 1999, and $11,000,000 for   
        each of fiscal years 2000 through 2003.  
            (13) High priority projects program.--For the high priority   
        projects program under section 117 of title 23, United States   
        Code, $1,025,695,000 for fiscal year 1998, $1,398,675,000 for   
        fiscal year 1999, $1,678,410,000 for fiscal year 2000,   
        $1,678,410,000 for fiscal year 2001, $1,771,655,000 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)  
        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  
                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.  
    (b) Exceptions.--The limitations under subsection (a) shall not   
apply to obligations--  
            (1) under section 125 of title 23, United States Code;  
            (2) under section 147 of the Surface Transportation   
        Assistance Act of 1978;  
            (3) under section 9 of the Federal-Aid Highway Act of 1981;  
            (4) under sections 131(b) and 131(j) of the Surface   
        Transportation Assistance Act of 1982;  
            (5) under sections 149(b) and 149(c) of the Surface   
        Transportation and Uniform Relocation Assistance Act of 1987;  
            (6) under sections 1103 through 1108 of the Intermodal   
        Surface Transportation Efficiency Act of 1991;  
            (7) under section 157 of title 23, United States Code, as in   
        effect on the day before the date of enactment of this Act; and  
            (8) under section 105 of title 23, United States Code (but,   
        for each of fiscal years 1998 through 2007), only in an amount   
        equal to $639,000,000 per fiscal year.  
  
    (c) Distribution of Obligation Authority.--For each of fiscal years   
1998 through 2003, the Secretary shall--  
            (1) not distribute obligation authority provided by   
        subsection (a) for such fiscal year for amounts authorized for   
        administrative expenses and programs funded from the   
        administrative takedown authorized by section 104(a) of title   
        23, United States Code, and amounts authorized for the highway   
        use tax evasion program and the Bureau of Transportation   
        Statistics;  
            (2) not distribute an amount of obligation authority   
        provided by subsection (a) that is equal to the unobligated   
        balance of amounts made available from the Highway Trust Fund   
        (other than the Mass Transit Account) for Federal-aid highway   
        and highway safety programs for previous fiscal years the funds   
        for which are allocated by the Secretary;  
            (3) determine the ratio that--  
                    (A) the obligation authority provided by subsection   
                (a) for such fiscal year less the aggregate of amounts   
                not distributed under paragraphs (1) and (2), bears to  
                    (B) the total of the sums authorized to be   
                appropriated for Federal-aid highway and highway safety   
                construction programs (other than sums authorized to be   
                appropriated for sections set forth in paragraphs (1)   
                through (7) of subsection (b) and sums authorized to be   
                appropriated for section 105 of title 23, United States   
                Code, equal to the amount referred to in subsection   
                (b)(8)) for such fiscal year less the aggregate of the   
                amounts not distributed under paragraph (1) of this   
                subsection;  
            (4) distribute the obligation authority provided by   
        subsection (a) less the aggregate amounts not distributed under   
        paragraphs (1) and (2) for section 117 of title 23, United   
        States Code (relating to high priority projects program),   
        section 201 of the Appalachian Regional Development Act of 1965,   
        the Woodrow Wilson Memorial Bridge Authority Act of 1995, and   
        $2,000,000,000 for such fiscal year under section 105 of such   
        title (relating to minimum guarantee) so that amount of   
        obligation authority available for each of such sections is   
        equal to the amount determined by multiplying the ratio   
        determined  
        under paragraph (3) by the sums authorized to be appropriated   
        for such section (except in the case of section 105,   
        $2,000,000,000) for such fiscal year;  
            (5) distribute the obligation authority provided by   
        subsection (a) less the aggregate amounts not distributed under   
        paragraphs (1) and (2) and amounts distributed under paragraph   
        (4) for each of the programs that are allocated by the Secretary   
        under this Act and title 23, United States Code (other than   
        activities to which paragraph (1) applies and programs to which   
        paragraph (4) applies) by multiplying the ratio determined under   
        paragraph (3) by the sums authorized to be appropriated for such   
        program for such fiscal year; and  
            (6) distribute the obligation authority provided by   
        subsection (a) less the aggregate amounts not distributed under   
        paragraphs (1) and (2) and amounts distributed under paragraphs   
        (4) and (5) for Federal-aid highway and highway safety   
        construction programs (other than the minimum guarantee program,   
        but only to the extent that amounts apportioned for the minimum   
        guarantee program for such fiscal year exceed $2,639,000,000,   
        and the Appalachian development highway system program) that are   
        apportioned by the Secretary under this Act and title 23, United   
        States Code, in the ratio that--  
                    (A) sums authorized to be appropriated for such   
                programs that are apportioned to each State for such   
                fiscal year, bear to  
                    (B) the total of the sums authorized to be   
                appropriated for such programs that are apportioned to   
                all States for such fiscal year.  
  
    (d) Redistribution of Unused Obligation Authority.--Notwithstanding   
subsection (c), the Secretary shall after August 1 of each of fiscal   
years 1998 through 2003 revise a distribution of the obligation   
authority made available under subsection (c) if a State will not   
obligate the amount distributed during that fiscal year and redistribute   
sufficient amounts to those States able to obligate amounts in addition   
to those previously distributed during that fiscal year giving priority   
to those States having large unobligated balances of funds apportioned   
under sections 104 and 144 of title 23, United States Code, under   
section 160 of title 23, United States Code (as in effect on the day   
before the date of enactment of this Act), and under section 1015 of the   
Intermodal Surface Transportation Act of 1991 (105 Stat. 1943-1945).  
    (e) Applicability of Obligation Limitations to Transportation   
Research Programs.--Obligation limitations imposed by subsection (a)   
shall apply to transportation research programs carried out under   
chapter 3 of title 23, United States Code, and under title VI of this   
Act.  
    (f) Redistribution of Certain Authorized Funds.--Not later than 30   
days after the date of the distribution of obligation authority under   
subsection (c) for each of fiscal years 1998 through 2003, the Secretary   
shall distribute to the States any funds (1) that are authorized to be   
appropriated for such fiscal year for Federal-aid highway programs   
(other than the program under section 160 of title 23, United States   
Code) and for carrying out subchapter I of chapter 311 of title 49,   
United States Code, and chapter 4 of title 23, United States Code, and   
(2) that the Secretary determines will not be allocated to the States,   
and will not be available for obligation, in such fiscal year due to the   
imposition of any  
obligation limitation for such fiscal year. Such distribution to the   
States shall be made in the same ratio as the distribution of obligation   
authority under subsection (c)(6). The funds so distributed shall be   
available for any purposes described in section 133(b) of title 23,   
United States Code.  
    (g) Special Rule.--Obligation authority distributed for a fiscal   
year under subsection (c)(4) for a section set forth in subsection   
(c)(4) shall remain available until used for obligation of funds for   
such section and shall be in addition to the amount of any limitation   
imposed on obligations for Federal-aid highway and highway safety   
construction programs for future fiscal years.  
    (h) Increase in Obligation Limit.--Limitations on obligations   
imposed by subsection (a) for a fiscal year shall be increased by an   
amount equal to the amount determined pursuant to section   
251(b)(1)(B)(ii)(I)(cc) of the Balanced Budget and Emergency Deficit   
Control Act of 1985 (2 U.S.C. 901(b)(2)(B)(ii)(I)(cc)) for such fiscal   
year. Any such increase shall be distributed in accordance with this   
section.  
    (i) Limitations on Obligations for Administrative Expenses.--  
Notwithstanding any other provision of law, the total amount of all   
obligations under section 104(a) of title 23, United States Code, shall   
not exceed--  
            (1) $320,000,000 for fiscal year 1998;  
            (2) $350,000,000 for fiscal year 1999;  
            (3) $370,000,000 for fiscal year 2000;  
            (4) $390,000,000 for fiscal year 2001;  
            (5) $410,000,000 for fiscal year 2002; and  
            (6) $430,000,000 for fiscal year 2003.  
  
SEC. 1103. APPORTIONMENTS.  
  
    (a) Administrative Expenses.--Section 104 of title 23, United States   
Code, is amended by striking subsection (a) and inserting the following:  
    ``(a) Administrative Expenses.--  
            ``(1) In general.--Whenever an apportionment is made of the   
        sums made available for expenditure on each of the surface   
        transportation program under section 133, the bridge program   
        under section 144, the congestion mitigation and air quality   
        improvement program under section 149, the Interstate and   
        National Highway System program under section 103, the minimum   
        guarantee program under section 105, the Federal lands highway   
        program under section 204, or the Appalachian development   
        highway system program under section 201 of the Appalachian   
        Regional Development Act of 1965 (40 U.S.C. App.), the Secretary   
        shall deduct a sum, in an amount not to exceed 1\1/2\ percent of   
        all sums so made available, as the Secretary determines   
        necessary--  
                    ``(A) to administer the provisions of law to be   
                financed from appropriations for the Federal-aid highway   
                program and programs authorized under chapter 2; and  
                    ``(B) to make transfers of such sums as the   
                Secretary determines to be appropriate to the   
                Appalachian Regional Commission for administrative   
                activities associated with the Appalachian development   
                highway system.  
            ``(2) Consideration of unobligated balances.--In making the   
        determination described in paragraph (1), the Secretary  
        shall take into account the unobligated balance of any sums   
        deducted under this subsection in prior fiscal years.  
            ``(3) Availability.--The sum deducted under paragraph (1)   
        shall remain available until expended.''.  
  
    (b) Apportionments.--Section 104(b) of such title <<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--  
                          ``(i) the total of all weighted nonattainment   
                      and maintenance area populations in each State;   
                      bears to  
                          ``(ii) the total of all weighted nonattainment   
                      and maintenance area populations in all States.  
                    ``(B) Calculation of weighted nonattainment and   
                maintenance area population.--Subject to subparagraph   
                (C), for the purpose of subparagraph (A), the weighted   
                nonattainment and maintenance area population shall be   
                calculated by multiplying the population of each area in   
                a State that was a nonattainment area or maintenance   
                area as described in section 149(b) for ozone or carbon   
                monoxide by a factor of--  
                          ``(i) 0.8 if--  
                                    ``(I) at the time of the   
                                apportionment, the area is a maintenance   
                                area; or  
                                    ``(II) at the time of the   
                                apportionment, the area is classified as   
                                a submarginal ozone nonattainment area   
                                under the Clean Air Act (42 U.S.C. 7401   
                                et seq.);  
                          ``(ii) 1.0 if, at the time of the   
                      apportionment, the area is classified as a   
                      marginal ozone nonattainment area under subpart 2   
                      of part D of title I of the Clean Air Act (42   
                      U.S.C. 7511 et seq.);  
                          ``(iii) 1.1 if, at the time of the   
                      apportionment, the area is classified as a   
                      moderate ozone nonattainment area under such   
                      subpart;  
                          ``(iv) 1.2 if, at the time of the   
                      apportionment, the area is classified as a serious   
                      ozone nonattainment area under such subpart;  
                          ``(v) 1.3 if, at the time of the   
                      apportionment, the area is classified as a severe   
                      ozone nonattainment area under such subpart;  
                          ``(vi) 1.4 if, at the time of the   
                      apportionment, the area is classified as an   
                      extreme ozone nonattainment area under such   
                      subpart; or  
                          ``(vii) 1.0 if, at the time of the   
                      apportionment, the area is not a nonattainment or   
                      maintenance area as described in section 149(b)   
                      for ozone, but is classified under subpart 3 of   
                      part D of title I of such Act (42 U.S.C. 7512 et   
                      seq.) as a nonattainment area described in section   
                      149(b) for carbon monoxide.  
                    ``(C) Additional adjustment for carbon monoxide   
                areas.--  
                          ``(i) Carbon monoxide nonattainment areas.--  
                      If, in addition to being classified as a   
                      nonattainment or maintenance area for ozone, the   
                      area was also classified under subpart 3 of part D   
                      of title I of such Act (42 U.S.C. 7512 et seq.) as   
                      a nonattainment area described in section 149(b)   
                      for carbon monoxide, the weighted nonattainment or   
                      maintenance area population of the area, as   
                      determined under clauses (i) through (vi) of   
                      subparagraph (B), shall be further multiplied by a   
                      factor of 1.2.  
                          ``(ii) Carbon monoxide maintenance areas.--If,   
                      in addition to being classified as a nonattainment   
                      or maintenance area for ozone, the area was at one   
                      time also classified under subpart 3 of part D of   
                      title I  
                      of such Act (42 U.S.C. 7512 et seq.) as a   
                      nonattainment area described in section 149(b) for   
                      carbon monoxide but has been redesignated as a   
                      maintenance area, the weighted nonattainment or   
                      maintenance area population of the area, as   
                      determined under clauses (i) through (vi) of   
                      subparagraph (B), shall be further multiplied by a   
                      factor of 1.1.  
                    ``(D) Minimum apportionment.--Notwithstanding any   
                other provision of this paragraph, each State shall   
                receive a minimum of \1/2\ of 1 percent of the funds   
                apportioned under this paragraph.  
                    ``(E) Determinations of population.--In determining   
                population figures for the purposes of this paragraph,   
                the Secretary shall use the latest available annual   
                estimates prepared by the Secretary of Commerce.  
            ``(3) Surface transportation program.--  
                    ``(A) In general.--For the surface transportation   
                program, in accordance with the following formula:  
                          ``(i) 25 percent of the apportionments in the   
                      ratio that--  
                                    ``(I) the total lane miles of   
                                Federal-aid highways in each State;   
                                bears to  
                                    ``(II) the total lane miles of   
                                Federal-aid highways in all States.  
                          ``(ii) 40 percent of the apportionments in the   
                      ratio that--  
                                    ``(I) the total vehicle miles   
                                traveled on lanes on Federal-aid   
                                highways in each State; bears to  
                                    ``(II) the total vehicle miles   
                                traveled on lanes on Federal-aid   
                                highways in all States.  
                          ``(iii) 35 percent of the apportionments in   
                      the ratio that--  
                                    ``(I) the estimated tax payments   
                                attributable to highway users in each   
                                State paid into the Highway Trust Fund   
                                (other than the Mass Transit Account) in   
                                the latest fiscal year for which data   
                                are available; bears to  
                                    ``(II) the estimated tax payments   
                                attributable to highway users in all   
                                States paid into the Highway Trust Fund   
                                (other than the Mass Transit Account) in   
                                the latest fiscal year for which data   
                                are available.  
                    ``(B) Minimum apportionment.--Notwithstanding   
                subparagraph (A), each State shall receive a minimum of   
                \1/2\ of 1 percent of the funds apportioned under this   
                paragraph.  
            ``(4) Interstate maintenance component.--For resurfacing,   
        restoring, rehabilitating, and reconstructing the Interstate   
        System--  
                    ``(A) 33\1/3\ percent in the ratio that--  
                          ``(i) the total lane miles on Interstate   
                      System routes open to traffic in each State; bears   
                      to  
                          ``(ii) the total of all such lane miles in all   
                      States;  
                    ``(B) 33\1/3\ percent in the ratio that--  
                          ``(i) the total vehicle miles traveled on   
                      lanes on Interstate System routes designated   
                      under--  
                                    ``(I) section 103;  
                                    ``(II) section 139(a) (as in effect   
                                on the day before the date of enactment   
                                of the Transportation Equity Act for the   
                                21st Century) before March 9, 1984   
                                (other than routes on toll roads not   
                                subject to a Secretarial agreement under   
                                section 105 of the Federal-Aid Highway   
                                Act of 1978 (92 Stat. 2692)); and  
                                    ``(III) section 139(c) (as in effect   
                                on the day before the date of enactment   
                                of the Transportation Equity Act for the   
                                21st Century);  
                      in each State; bears to  
                          ``(ii) the total of all such vehicle miles   
                      traveled in all States; and  
                    ``(C) 33\1/3\ percent in the ratio that--  
                          ``(i) the total of each State's annual   
                      contributions to the Highway Trust Fund (other   
                      than the Mass Transit Account) attributable to   
                      commercial vehicles; bears to  
                          ``(ii) the total of such annual contributions   
                      by all States.  
  
    (c) Operation Lifesaver and High Speed Rail Corridors.--Section   
104(d) of such title <<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.  
                    ``(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.--  
            ``(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  
                    ``(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;  
                          (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.--  
            (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).  
    ``(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--  
                    ``(A) the amount of funds apportioned to each State   
                for each program referred to in subsection (a) for a   
                fiscal year; bears to  
                    ``(B) the total amount of funds apportioned to all   
                States for such program for such fiscal year.  
            ``(2) Remaining distribution.--The Secretary shall apportion   
        the remainder of funds made available under this section to the   
        States in accordance with section 104(b)(3); except that   
        requirements of paragraphs (1), (2), and (3) of section 133(d)   
        shall not apply to amounts apportioned pursuant to this   
        paragraph.  
  
    ``(d) Authorization.--There are authorized to be appropriated out of   
the Highway Trust Fund (other than the Mass Transit Account) such sums   
as may be necessary to carry out this section for each of fiscal years   
1998 through 2003.  
    ``(e) Special Rule.--If in any of fiscal years 1999 through 2003,   
the amount authorized under subsection (d) is more than 30 percent   
higher than the amount authorized under subsection (d) in fiscal year   
1998, the Secretary shall use the apportionment factors under sections   
104 and 144 as in effect on the date of enactment of this section.  
    ``(f) Guarantee of 90.5 Return.--  
            ``(1) In general.--Before making any apportionment under   
        this title for each of fiscal years 1999 through 2003, the   
        Secretary, subject to paragraph (2), shall adjust the   
        percentages in the table in subsection (b) to reflect the   
        estimated percentage of estimated tax payments attributable to   
        highway users in each State paid into the Highway Trust Fund   
        (other than the Mass Transit Account) in the latest fiscal year   
        for which data is available, to ensure that no State's return   
        from such Trust Fund is less than 90.5 percent.  
            ``(2) Eligibility threshold for initial adjustment.--The   
        Secretary may make an adjustment under paragraph (1) for a State   
        for a fiscal year only if the State's return from the Highway   
        Trust Fund (other than the Mass Transit Account) for the   
        preceding fiscal year was equal to or less than 90.5 percent.  
            ``(3) Conforming adjustments.--After making any adjustments   
        under paragraph (1) for a fiscal year, the Secretary shall   
        adjust the remaining percentages in the table set forth in   
        subsection (b) to ensure that the total of the percentages in   
        the table do not exceed 100 percent for such fiscal year.  
            ``(4) Limitation on adjustments.--After making any   
        adjustments under paragraph (3) for a fiscal year, the Secretary   
        shall determine whether or not any State's return from the   
        Highway Trust Fund (other than the Mass Transit Account) is less   
        than 90.5 percent as a result of such adjustments and shall   
        adjust the percentages in the table for such fiscal year   
        accordingly. Adjustments of the percentages in the table under   
        this paragraph may not result in the total of such percentages   
        exceeding 100 percent.''.  
  
    (b) Conforming Amendment.--The analysis for chapter 1 of such title   
is amended by striking the item relating to section 105 and inserting   
the following:  
  
``105. Minimum guarantee.''. 
 
SEC. 1105. REVENUE ALIGNED BUDGET AUTHORITY.  
  
    (a) In General.--Chapter 1 of title 23, United States Code, is   
amended by striking section 110 and inserting the following:  
  
``Sec. 110. Revenue aligned budget authority  
  
    ``(a) Determination of Amount.--On October 15 of fiscal year 1999,   
and each fiscal year thereafter, the Secretary shall allocate an amount   
of funds equal to the amount determined pursuant to section   
251(b)(1)(B)(I)(cc) of the Balanced Budget and Emergency Deficit Control   
Act of 1985 (2 U.S.C. 901(b)(2)(B)(I)(cc)).  
    ``(b) General Distribution.--The Secretary shall--  
            ``(1) determine the ratio that--  
                    ``(A) the sums authorized to be appropriated from   
                the Highway Trust Fund (other than the Mass Transit   
                Account) for each of the for Federal-aid highway and   
                highway safety construction programs (other than the   
                minimum guarantee program) for which funds are allocated   
                from such Trust Fund by the Secretary under this title   
                and the Transportation Equity Act for the 21st Century   
                for a fiscal year, bears to  
                    ``(B) the total of all sums authorized to be   
                appropriated from such Trust Fund for such programs for   
                such fiscal year;  
            ``(2) multiply the ratio determined under paragraph (1) by   
        the total amount of funds to be allocated under subsection (a)   
        for such fiscal year;  
            ``(3) allocate the amount determined under paragraph (2)   
        among such programs in the ratio that--  
                    ``(A) the sums authorized to be appropriated from   
                such Trust Fund for each of such programs for such   
                fiscal year, bears to  
                    ``(B) the sums authorized to be appropriated from   
                such Trust Fund for all such programs for such fiscal   
                year; and  
            ``(4) allocate the remainder of the funds to be allocated   
        under subsection (a) for such fiscal year to the States in the   
        ratio that--  
                    ``(A) the total of all funds authorized to be   
                appropriated from such Trust Fund for Federal-aid   
                highway and highway safety construction programs that   
                are apportioned to each State for such fiscal year but   
                for this section, bears to  
                    ``(B) the total of all funds authorized to be   
                appropriated from such Trust Fund for such programs that   
                are apportioned to all States for such fiscal year but   
                for this section.  
  
    ``(c) State Programmatic Distribution.--Of the funds to be   
apportioned to each State under subsection (b)(4) for a fiscal year, the   
Secretary shall ensure that such funds are apportioned for the   
Interstate Maintenance program, the National Highway System program, the   
bridge program, the surface transportation program, and the congestion   
mitigation air quality improvement program in the same ratio that each   
State is apportioned funds for such programs for such fiscal year but   
for this section.  
    ``(d) Authorization of Appropriations.--There are authorized to be   
appropriated from the Highway Trust Fund (other than the Mass Transit   
Account) such sums as may be necessary to carry out this section for   
fiscal years beginning after September 30, 1998.''.  
    (b) Conforming Amendment.--The analysis for chapter 1 of such title   
is amended by striking the item relating to section 110 and inserting   
the following:  
  
``110. Revenue aligned budget authority.''.  
  
SEC. 1106. FEDERAL-AID SYSTEMS. <<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.  
            ``(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.  
                    ``(H) Capital and operating costs for traffic   
                monitoring, management, and control facilities and   
                programs.  
                    ``(I) Fringe and corridor parking facilities.  
                    ``(J) Carpool and vanpool projects.  
                    ``(K) Bicycle transportation and pedestrian walkways   
                in accordance with section 217.  
                    ``(L) Development, establishment, and implementation   
                of management systems under section 303.  
                    ``(M) In accordance with all applicable Federal law   
                (including regulations), participation in natural   
                habitat and wetland mitigation efforts related to   
                projects funded under this title, which may include   
                participation in natural habitat and wetland mitigation   
                banks, contributions to statewide and regional efforts   
                to conserve, restore, enhance, and create natural   
                habitats and wetland, and development of statewide and   
                regional natural habitat and wetland conservation and   
                mitigation plans, including any such banks, efforts, and   
                plans authorized under the Water Resources Development   
                Act of 1990 (Public Law 101-640) (including crediting   
                provisions). Contributions to the mitigation efforts   
                described in the preceding sentence may take place   
                concurrent with or in advance of project construction;   
                except that contributions in advance of project   
                construction may occur only if the efforts are   
                consistent with all applicable requirements of Federal   
                law (including regulations) and State transportation   
                planning processes. With respect to participation in a   
                natural habitat or wetland mitigation effort related to   
                a project funded under this title that has an impact   
                that occurs within the service area of a mitigation   
                bank, preference shall be given, to the maximum extent   
                practicable, to the use of the mitigation bank if the   
                bank contains sufficient available credits to offset the   
                impact and the bank is approved in accordance with the   
                Federal Guidance for the Establishment, Use and   
                Operation of Mitigation Banks (60 Fed. Reg. 58605   
                (November 28, 1995)) or other applicable Federal law   
                (including regulations).  
                    ``(N) Publicly-owned intracity or intercity bus   
                terminals.  
                    ``(O) Infrastructure-based intelligent   
                transportation systems capital improvements.  
                    ``(P) In the Virgin Islands, Guam, American Samoa,   
                and the Commonwealth of the Northern Mariana Islands,   
                any project eligible for assistance under section 133,   
                any airport, and any seaport.  
  
    ``(c) Interstate System.--  
            ``(1) Description.--  
                    ``(A) In general.--The Dwight D. Eisenhower National   
                System of Interstate and Defense Highways within the   
                United States (including the District of Columbia and   
                Puerto Rico) consists of highways designed, located, and   
                selected in accordance with this paragraph.  
                    ``(B) Design.--  
                          ``(i) In general.--Except as provided in   
                      clause (ii), highways on the Interstate System   
                      shall be designed in accordance with the standards   
                      of section 109(b).  
                          ``(ii) Exception.--Highways on the Interstate   
                      System in Alaska and Puerto Rico shall be designed   
                      in accordance with such geometric and construction   
                      standards as are adequate for current and probable   
                      future traffic demands and the needs of the   
                      locality of the highway.  
                    ``(C) Location.--Highways on the Interstate System   
                shall be located so as--  
                          ``(i) to connect by routes, as direct as   
                      practicable, the principal metropolitan areas,   
                      cities, and industrial centers;  
                          ``(ii) to serve the national defense; and  
                          ``(iii) to the maximum extent practicable, to   
                      connect at suitable border points with routes of   
                      continental importance in Canada and Mexico.  
                    ``(D) Selection of routes.--To the maximum extent   
                practicable, each route of the Interstate System shall   
                be selected by joint action of the State transportation   
                departments of the State in which the route is located   
                and the adjoining States, in cooperation with local and   
                regional officials, and subject to the approval of the   
                Secretary.  
            ``(2) Maximum mileage.--The mileage of highways on the   
        Interstate System shall not exceed 43,000 miles, exclusive of   
        designations under paragraph (4).  
            ``(3) Modifications.--The Secretary may approve or require   
        modifications to the Interstate System in a manner consistent   
        with the policies and procedures established under this   
        subsection.  
            ``(4) Interstate system designations.--  
                    ``(A) Additions.--If the Secretary determines that a   
                highway on the National Highway System meets all   
                standards of a highway on the Interstate System and that   
                the highway is a logical addition or connection to the   
                Interstate System, the Secretary may, upon the   
                affirmative recommendation of the State or States in   
                which the highway is located, designate the highway as a   
                route on the Interstate System.  
                    ``(B) Designations as future interstate system   
                routes.--  
                          ``(i) In general.--If the Secretary determines   
                      that a highway on the National Highway System   
                      would be a logical addition or connection to the   
                      Interstate System and would qualify for   
                      designation as a route on the Interstate System   
                      under subparagraph (A) if the highway met all   
                      standards of a highway on the Interstate System,   
                      the Secretary may, upon the affirmative   
                      recommendation of the State or States in which the   
                      highway is located, designate the highway as a   
                      future Interstate System route.  
                          ``(ii) Written agreement of states.--A   
                      designation under clause (i) shall be made only   
                      upon the written agreement of the State or States   
                      described in such clause that the highway will be   
                      constructed to meet all standards of a highway on   
                      the Interstate System by the date that is 12 years   
                      after the date of the agreement.  
                          ``(iii) Removal of designation.--  
                                    ``(I) In general.--If the State or   
                                States described in clause (i) have not   
                                substantially completed the construction   
                                of a highway designated under this   
                                subparagraph within the time provided   
                                for in the agreement between the   
                                Secretary and the State or States under   
                                clause (ii), the Secretary shall remove   
                                the designation of the highway as a   
                                future Interstate System route.  
                                    ``(II) Effect of removal.--Removal   
                                of the designation of a highway under   
                                subclause (I) shall not preclude the   
                                Secretary from designating the highway   
                                as a route on the Interstate System   
                                under subparagraph (A) or under any   
                                other provision of law providing for   
                                addition to the Interstate System.  
                          ``(iv) Prohibition on referral as interstate   
                      system route.--No law, rule, regulation, map,   
                      document, or other record of the United States, or   
                      of any State or political subdivision of a State,   
                      shall refer to any highway designated as a future   
                      Interstate System route under this subparagraph,   
                      nor shall any such highway be signed or marked, as   
                      a highway on the Interstate System until such time   
                      as the highway is constructed to the geometric and   
                      construction standards for the Interstate System   
                      and has been designated as a route on the   
                      Interstate System.  
                    ``(C) Financial responsibility.--Except as provided   
                in this title, the designation of a highway under this   
                paragraph shall create no additional Federal financial   
                responsibility with respect to the highway.  
  
    ``(d) Transfer of Interstate Construction Funds.--  
            ``(1) Interstate construction funds not in surplus.--  
                    ``(A) In general.--Upon application by a State and   
                approval by the Secretary, the Secretary may transfer to   
                the apportionment of the State under section 104(b)(1)   
                any amount of funds apportioned to the State under   
                section 104(b)(5)(A) (as in effect on the day before the   
                date of enactment of the Transportation Equity Act for   
                the 21st Century), if the amount does not exceed the   
                Federal share of the costs of construction of segments   
                of the Interstate System in the State included in the   
                most recent Interstate System cost estimate.  
                    ``(B) Effect of transfer.--Upon transfer of an   
                amount under subparagraph (A), the construction on which   
                the amount is based, as included in the most recent   
                Interstate System cost estimate, shall not be eligible   
                for funding under section 104(b)(5)(A) (as in effect on   
                the day before the date of enactment of the   
                Transportation Equity Act for the 21st Century) or   
                118(c).  
            ``(2) Surplus interstate construction funds.--Upon   
        application by a State and approval by the Secretary, the   
        Secretary may transfer to the apportionment of the State under   
        section 104(b)(1) any amount of surplus funds apportioned to the   
        State under section 104(b)(5)(A) (as in effect on the day before   
        the date of enactment of the Transportation Equity Act for the   
        21st Century), if the State has fully financed all  
        work eligible under the most recent Interstate System cost   
        estimate.  
            ``(3) Applicability of certain laws.--Funds transferred   
        under this subsection shall be subject to the laws (including   
        regulations, policies, and procedures) relating to the   
        apportionment to which the funds are transferred.''.  
  
    (b) <<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.  
            (3) Identification of impediments.--If the Secretary   
        determines on the basis of the review that there are impediments   
        to improving the connectors serving intermodal facilities   
        referred to in paragraph (1), the Secretary shall identify such   
        impediments and make any appropriate recommendations as part of   
        the Secretary's report to Congress under this subsection.  
  
SEC. 1107. INTERSTATE MAINTENANCE PROGRAM.  
  
    (a) In General.--Section 119 of title 23, United States Code, is   
amended--  
            (1) by striking subsection (a) and inserting the following:  
  
    ``(a) In General.--  
            ``(1) Projects.--The Secretary may approve projects for   
        resurfacing, restoring, rehabilitating, and reconstructing--  
                    ``(A) routes on the Interstate System designated   
                under section 103(c)(1) and, in Alaska and Puerto Rico,   
                under section 103(c)(4)(A);  
                    ``(B) routes on the Interstate System designated   
                before the date of enactment of the Transportation   
                Equity Act for the 21st Century under subsections (a)   
                and (b) of section 139 (as in effect on the day before   
                the date of enactment of such Act); and  
                    ``(C) any segments that become part of the   
                Interstate System under section 1105(e)(5) of the   
                Intermodal Surface Transportation Efficiency Act of   
                1991.  
            ``(2) Toll roads.--The Secretary may approve a project   
        pursuant to this subsection on a toll road only if such road is   
        subject to a Secretarial agreement provided for in section 129   
        or continued in effect by section 1012(d) of the Intermodal   
        Surface Transportation Efficiency Act of 1991 (105 Stat. 1939)   
        and not voided by the Secretary under section 120(c) of the   
        Surface Transportation and Uniform Relocation Assistance Act of   
        1987 (101 Stat. 159).  
            ``(3) Funding.--Sums authorized to be appropriated to carry   
        out this section shall be out of the Highway Trust Fund and   
        shall be apportioned in accordance with section 104(b)(4).'';  
            (2) by striking subsections (b), (c), and (e); and  
            (3) by redesignating subsections (d), (f), and (g) as   
        subsections (b), (c), and (d), respectively.  
  
    (b) Set-Asides for Interstate Discretionary Projects.--Section   
118(c) of such title is amended to read as follows:  
    ``(c) Set-Asides for Interstate Discretionary Projects.--  
            ``(1) In general.--Before any apportionment is made under   
        section 104(b)(4), the Secretary shall set aside $50,000,000 in   
        fiscal year 1998 and $100,000,000 in each of fiscal years 1999   
        through 2003 for obligation by the Secretary for projects for   
        resurfacing, restoring, rehabilitating, and reconstructing any   
        route or portion thereof on the Interstate System (other than   
        any highway designated as a part of the Interstate System under   
        section 139 (as in effect on the day before the date of   
        enactment of the Transportation Equity Act for the 21st   
        Century)) and any toll road on the Interstate System not subject   
        to an agreement under section 119(e) (as in effect on December   
        17, 1991).  
            ``(2) Selection criteria.--The amounts set aside under   
        paragraph (1) shall be made available by the Secretary to  
        any State applying for such funds if the Secretary determines   
        that--  
                    ``(A) the State has obligated or demonstrates that   
                it will obligate in the fiscal year all of its   
                apportionments under section 104(b)(4) other than an   
                amount that, by itself, is insufficient to pay the   
                Federal share of the cost of a project for resurfacing,   
                restoring, rehabilitating, and reconstructing the   
                Interstate System that has been submitted by the State   
                to the Secretary for approval; and  
                    ``(B) the applicant is willing and able to--  
                          ``(i) obligate the funds within 1 year of the   
                      date the funds are made available;  
                          ``(ii) apply the funds to a ready-to-commence   
                      project; and  
                          ``(iii) in the case of construction work,   
                      begin work within 90 days after obligation.  
            ``(3) Priority consideration for certain projects.--In   
        selecting projects to fund under paragraph (1), the Secretary   
        shall give priority consideration to any project the cost of   
        which exceeds $10,000,000 on any high volume route in an urban   
        area or a high truck-volume route in a rural area.  
            ``(4) Period of availability of discretionary funds.--Sums   
        made available pursuant to this subsection shall remain   
        available until expended.''.  
  
    (c) Interstate Needs.-- <<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)--  
                    (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.--  
                          ``(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--  
                          ``(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 available at the discretion of the   
                Secretary; except that  
                not to exceed $25,000,000 shall be available only for   
                projects for the seismic retrofit of bridges, including   
                projects in the New Madrid fault region.''; and  
            (3) by indenting subparagraph (A) (as designated by   
        paragraph (1) of this subsection) and aligning such subparagraph   
        (A) with subparagraphs (B) and (C) of such section (as added by   
        paragraph (2) of this subsection).  
  
    (c) Off-System Bridge Set-Aside.--Section 144(g)(3) of such title is   
amended-- <<NOTE: 23 USC 144.>>   
            (1) by striking ``, 1988'' and all that follows through   
        ``1997,'' and inserting ``through 2003''; and  
            (2) by striking ``system'' each place it appears and   
        inserting ``highway''.  
  
    (d) Eligibility.--Section 144 of title 23, United States Code, is   
amended--  
            (1) in subsection (d) by inserting after ``magnesium   
        acetate'' the following: ``, sodium acetate/formate, or other   
        environmentally acceptable, minimally corrosive anti-icing and   
        de-icing compositions or installing scour countermeasures'';  
            (2) in subsection (d) by inserting after ``such acetate''   
        each place it appears the following: ``or sodium acetate/formate   
        or such anti-icing or de-icing composition or installation of   
        such countermeasures''; and  
            (3) in subsection (g)(3) by inserting after ``magnesium   
        acetate'' the following: ``, sodium acetate/formate, or other   
        environmentally acceptable, minimally corrosive anti-icing and   
        de-icing compositions or install scour countermeasures''.  
  
    (e) Conforming Amendment.--Section 144(n) of such title is amended   
by striking ``system'' and inserting ``highway''.  
  
SEC. 1110. CONGESTION MITIGATION AND AIR QUALITY IMPROVEMENT PROGRAM.  
  
    (a) Establishment of Program.--Section 149(a) of title 23, United   
States Code, is amended by inserting after ``establish'' the following:   
``and implement''.  
    (b) Currently Eligible Projects.--Section 149(b) of such title is   
amended--  
            (1) by striking ``that was designated as a nonattainment   
        area under section 107(d) of the Clean Air Act (42 U.S.C.   
        7407(d)) during any part of fiscal year 1994'' and inserting the   
        following: ``that is or was designated as a nonattainment area   
        for ozone, carbon monoxide, or particulate matter under section   
        107(d) of the Clean Air Act (42 U.S.C. 7407(d)) and classified   
        pursuant to section 181(a), 186(a), 188(a), or 188(b) of the   
        Clean Air Act (42 U.S.C. 7511(a), 7512(a), 7513(a), or 7513(b))   
        or is or was designated as a nonattainment area under such   
        section 107(d) after December 31, 1997,'';  
            (2) in paragraph (1)(A) by striking ``clauses (xii) and'';   
        and inserting ``clause'';  
            (3) in paragraph (1)(A)(ii) by striking ``an area'' and all   
        that follows through the semicolon and inserting ``a maintenance   
        area;'';  
            (4) by striking ``or'' at the end of paragraph (3);  
            (5) by striking ``standard.'' at the end of paragraph (4)   
        and inserting ``standard; or''; and  
            (6) by inserting after paragraph (4) the following:  
            ``(5) if the program or project improves traffic flow,   
        including projects to improve signalization, construct high   
        occupancy vehicle lanes, improve intersections, and implement   
        intelligent transportation system strategies and such other   
        projects that are eligible for assistance under this section on   
        the day before the date of enactment of this paragraph.''.  
  
    (c) States Receiving Minimum Apportionment.--Section 149 of such   
title is amended <<NOTE: 23 USC 149.>>  by striking subsection (c) and   
inserting the following:  
  
    ``(c) States Receiving Minimum Apportionment.--  
            ``(1) States without a nonattainment area.--If a State does   
        not have, and never has had, a nonattainment area designated   
        under the Clean Air Act (42 U.S.C. 7401 et seq.), the State may   
        use funds apportioned to the State under section 104(b)(2) for   
        any project eligible under the surface transportation program   
        under section 133.  
            ``(2) States with a nonattainment area.--If a State has a   
        nonattainment area or maintenance area and receives funds under   
        section 104(b)(2)(D) above the amount of funds that the State   
        would have received based on its nonattainment and maintenance   
        area population under subparagraphs (B) and (C) of section   
        104(b)(2), the State may use that portion of the funds not based   
        on its nonattainment and maintenance area population under   
        subparagraphs (B) and (C) of section 104(b)(2) for any project   
        in the State eligible under section 133.''.  
  
    (d) Public-Private Partnerships.--  
            (1) In general.--Section 149 of such title is amended by   
        adding at the end the following:  
  
    ``(e) Partnerships With Nongovernmental Entities.--  
            ``(1) In general.--Notwithstanding any other provision of   
        this title and in accordance with this subsection, a   
        metropolitan planning organization, State transportation   
        department, or other project sponsor may enter into an agreement   
        with any public, private, or nonprofit entity to cooperatively   
        implement any project carried out under this section.  
            ``(2) Forms of participation by entities.--Participation by   
        an entity under paragraph (1) may consist of--  
                    ``(A) ownership or operation of any land, facility,   
                vehicle, or other physical asset associated with the   
                project;  
                    ``(B) cost sharing of any project expense;  
                    ``(C) carrying out of administration, construction   
                management, project management, project operation, or   
                any other management or operational duty associated with   
                the project; and  
                    ``(D) any other form of participation approved by   
                the Secretary.  
            ``(3) Allocation to entities.--A State may allocate funds   
        apportioned under section 104(b)(2) to an entity described in   
        paragraph (1).  
            ``(4) Alternative fuel projects.--In the case of a project   
        that will provide for the use of alternative fuels by privately   
        owned vehicles or vehicle fleets, activities eligible for   
        funding under this subsection--  
                    ``(A) may include the costs of vehicle refueling   
                infrastructure, including infrastructure that would   
                support the development, production, and use of emerging   
                technologies  
                that reduce emissions of air pollutants from motor   
                vehicles, and other capital investments associated with   
                the project;  
                    ``(B) shall include only the incremental cost of an   
                alternative fueled vehicle, as compared to a   
                conventionally fueled vehicle, that would otherwise be   
                borne by a private party; and  
                    ``(C) shall apply other governmental financial   
                purchase contributions in the calculation of net   
                incremental cost.  
            ``(5) Prohibition on federal participation with respect to   
        required activities.--A Federal participation payment under this   
        subsection may not be made to an entity to fund an obligation   
        imposed under the Clean Air Act (42 U.S.C. 7401 et seq.) or any   
        other Federal law.''.  
            (2) <<NOTE: 23 USC 149 note.>>  Determination by the   
        secretary.--For the purposes of section 149(c) of title 23,   
        United States Code, the Secretary shall determine in accordance   
        with the procedures specified in section 149(b) of such title   
        whether water-phased hydrocarbon fuel emulsion technologies that   
        consist of a hydrocarbon base and water in an amount not less   
        than 20 percent by volume that reduce emissions of hydrocarbon,   
        particulate matter, carbon monoxide, or nitrogen oxide from   
        motor vehicles.  
  
    (e) Study of CMAQ Program.-- <<NOTE: 23 USC 149 note.>>   
            (1) <<NOTE: Contracts.>>  In general.--The Secretary and the   
        Administrator of the Environmental Protection Agency shall enter   
        into arrangements with the National Academy of Sciences to   
        complete, by not later than January 1, 2001, a study of the   
        congestion mitigation and air quality improvement program under   
        section 149 of title 23, United States Code. The study shall, at   
        a minimum--  
                    (A) evaluate the air quality impacts of emissions   
                from motor vehicles;  
                    (B) evaluate the negative effects of traffic   
                congestion, including the economic effects of time lost   
                due to congestion;  
                    (C) determine the amount of funds obligated under   
                the program and make a comprehensive analysis of the   
                types of projects funded under the program;  
                    (D) evaluate the emissions reductions attributable   
                to projects of various types that have been funded under   
                the program;  
                    (E) assess the effectiveness, including the   
                quantitative and nonquantitative benefits, of projects   
                funded under the program and include, in the assessment,   
                an estimate of the cost per ton of pollution reduction;  
                    (F) assess the cost effectiveness of projects funded   
                under the program with respect to congestion mitigation;  
                    (G) compare--  
                          (i) the costs of achieving the air pollutant   
                      emissions reductions achieved under the program;   
                      to  
                          (ii) the costs that would be incurred if   
                      similar reductions were achieved by other   
                      measures, including pollution controls on   
                      stationary sources;  
                    (H) include recommendations on improvements,   
                including other types of projects, that will increase   
                the overall effectiveness of the program;  
                    (I) include recommendations on expanding the scope   
                of the program to address traffic-related pollutants   
                that,  
                as of the date of the study, are not addressed by the   
                program.  
            (2) Report.--Not later than January 1, 2000, the National   
        Academy of Sciences shall transmit to the Secretary, the   
        Committee on Transportation and Infrastructure and the Committee   
        on Commerce of the House of Representatives, and the Committee   
        on Environment and Public Works of the Senate a report on the   
        results of the study with recommendations for modifications to   
        the congestion mitigation and air quality improvement program in   
        light of the results of the study.  
            (3) Funding.--Before making the apportionment of funds under   
        section 104(b)(2) of title 23, United States Code, for each of   
        fiscal years 1999 and 2000, the Secretary shall deduct from the   
        amount to be apportioned under such section for such fiscal   
        year, and make available, $500,000 for such fiscal year to carry   
        out this subsection.  
  
SEC. 1111. FEDERAL SHARE.  
  
    (a) State-Determined Lower Federal Share.--Section 120 of title 23,   
United States Code, is amended--  
            (1) in subsection (a)--  
                    (A) by striking ``Except'' and inserting the   
                following:  
            ``(1) In general.--Except'';  
                    (B) by adding at the end the following:  
            ``(2) State-determined lower federal share.--In the case of   
        any project subject to paragraph (1), a State may determine a   
        lower Federal share than the Federal share determined under such   
        paragraph.''; and  
                    (C) by aligning the remainder of the text of   
                paragraph (1) (as designated by subparagraph (A) of this   
                paragraph) with paragraph (2) of such subsection (as   
                added by subparagraph (B) of this paragraph); and  
            (2) in subsection (b) by adding at the end the following:   
        ``In the case of any project subject to this subsection, a State   
        may determine a lower Federal share than the Federal share   
        determined under the preceding sentences of this subsection.''.  
  
    (b) Increased Federal Share for Certain Safety Projects.--The first   
sentence of section 120(c) of such title is amended by inserting ``or   
transit vehicles'' after ``emergency vehicles''.  
    (c) Credit for Non-Federal Share.--Section 120 of such title is   
amended by adding at the end the following:  
    ``(j) Credit for Non-Federal Share.--  
            ``(1) Eligibility.--A State may use as a credit toward the   
        non-Federal share requirement for any funds made available to   
        carry out this title (other than the emergency relief program   
        authorized by section 125) or chapter 53 of title 49 toll   
        revenues that are generated and used by public, quasi-public,   
        and private agencies to build, improve, or maintain highways,   
        bridges, or tunnels that serve the public purpose of interstate   
        commerce. Such public, quasi-public, or private agencies shall   
        have built, improved, or maintained such facilities without   
        Federal funds.  
            ``(2) Maintenance of effort.--  
                    ``(A) In general.--The credit for any non-Federal   
                share provided under this subsection shall not reduce   
                nor replace  
                State funds required to match Federal funds for any   
                program under this title.  
                    ``(B) Condition on receipt of credit.--To receive a   
                credit under paragraph (1) for a fiscal year, a State   
                shall enter into such agreement as the Secretary may   
                require to ensure that the State will maintain its non-  
                Federal transportation capital expenditures in such   
                fiscal year at or above the average level of such   
                expenditures for the preceding 3 fiscal years; except   
                that if, for any 1 of the preceding 3 fiscal years, the   
                non-Federal transportation capital expenditures of the   
                State were at a level that was greater than 130 percent   
                of the average level of such expenditures for the other   
                2 of the preceding 3 fiscal years, the agreement shall   
                ensure that the State will maintain its non-Federal   
                transportation capital expenditures in the fiscal year   
                of the credit at or above the average level of such   
                expenditures for the other 2 fiscal years.  
                    ``(C) Transportation capital expenditures defined.--  
                In subparagraph (B), the term `non-Federal   
                transportation capital expenditures' includes any   
                payments made by the State for issuance of   
                transportation-related bonds.  
            ``(3) Treatment.--  
                    ``(A) Limitation on liability.--Use of a credit for   
                a non-Federal share under this subsection that is   
                received from a public, quasi-public, or private   
                agency--  
                          ``(i) shall not expose the agency to   
                      additional liability, additional regulation, or   
                      additional administrative oversight; and  
                          ``(ii) shall not subject the agency to any   
                      additional Federal design standards or laws   
                      (including regulations) as a result of providing   
                      the non-Federal share other than those to which   
                      the agency is already subject.  
                    ``(B) Chartered multistate agencies.--When a credit   
                that is received from a chartered multistate agency is   
                applied to a non-Federal share under this subsection,   
                such credit shall be applied equally to all charter   
                States.''.  
  
    (d) <<NOTE: 23 USC 130.>> Conforming Amendments.--Section 130(a) of   
such title is amended--  
            (1) in the first sentence by striking ``Except as provided   
        in subsection (d) of section 120 of this title'' and inserting   
        ``Subject to section 120''; and  
            (2) in the second sentence by striking ``except as provided   
        in subsection (d) of section 120 of this title'' and inserting   
        ``subject to section 120''.  
  
SEC. 1112. RECREATIONAL TRAILS PROGRAM.  
  
    (a) In General.--Chapter 2 of title 23, United States Code, is   
amended by inserting after section 205 the following:  
  
``Sec. 206. Recreational trails program  
  
    ``(a) Definitions.--In this section, the following definitions   
apply:  
            ``(1) Motorized recreation.--The term `motorized recreation'   
        means off-road recreation using any motor-powered vehicle,   
        except for a motorized wheelchair.  
            ``(2) Recreational trail.--The term `recreational trail'   
        means a thoroughfare or track across land or snow, used for   
        recreational purposes such as--  
                    ``(A) pedestrian activities, including wheelchair   
                use;  
                    ``(B) skating or skateboarding;  
                    ``(C) equestrian activities, including carriage   
                driving;  
                    ``(D) nonmotorized snow trail activities, including   
                skiing;  
                    ``(E) bicycling or use of other human-powered   
                vehicles;  
                    ``(F) aquatic or water activities; and  
                    ``(G) motorized vehicular activities, including all-  
                terrain vehicle riding, motorcycling, snowmobiling, use   
                of off-road light trucks, or use of other off-road   
                motorized vehicles.  
  
    ``(b) Program.--In accordance with this section, the Secretary, in   
consultation with the Secretary of the Interior and the Secretary of   
Agriculture, shall carry out a program to provide and maintain   
recreational trails.  
    ``(c) State Responsibilities.--To be eligible for apportionments   
under this section--  
            ``(1) the Governor of the State shall designate the State   
        agency or agencies that will be responsible for administering   
        apportionments made to the State under this section; and  
            ``(2) the State shall establish a State recreational trail   
        advisory committee that represents both motorized and   
        nonmotorized recreational trail users, which shall meet not less   
        often than once per fiscal year.  
  
    ``(d) Use of Apportioned Funds.--  
            ``(1) In general.--Funds apportioned to a State to carry out   
        this section shall be obligated for recreational trails and   
        related projects that--  
                    ``(A) have been planned and developed under the   
                laws, policies, and administrative procedures of the   
                State; and  
                    ``(B) are identified in, or further a specific goal   
                of, a recreational trail plan, or a statewide   
                comprehensive outdoor recreation plan required by the   
                Land and Water Conservation Fund Act of 1965 (16 U.S.C.   
                460l-4 et seq.), that is in effect.  
            ``(2) Permissible uses.--Permissible uses of funds   
        apportioned to a State for a fiscal year to carry out this   
        section include--  
                    ``(A) maintenance and restoration of existing   
                recreational trails;  
                    ``(B) development and rehabilitation of trailside   
                and trailhead facilities and trail linkages for   
                recreational trails;  
                    ``(C) purchase and lease of recreational trail   
                construction and maintenance equipment;  
                    ``(D) construction of new recreational trails,   
                except that, in the case of new recreational trails   
                crossing Federal lands, construction of the trails shall   
                be--  
                          ``(i) permissible under other law;  
                          ``(ii) necessary and required by a statewide   
                      comprehensive outdoor recreation plan that is   
                      required by the Land and Water Conservation Fund   
                      Act of 1965 (16 U.S.C. 460l-4 et seq.) and that is   
                      in effect;  
                          ``(iii) approved by the administering agency   
                      of the State designated under subsection (c)(1);   
                      and  
                          ``(iv) approved by each Federal agency having   
                      jurisdiction over the affected lands under such   
                      terms and conditions as the head of the Federal   
                      agency determines to be appropriate, except that   
                      the approval shall be contingent on compliance by   
                      the Federal agency with all applicable laws,   
                      including the National Environmental Policy Act of   
                      1969 (42 U.S.C. 4321 et seq.), the Forest and   
                      Rangeland Renewable Resources Planning Act of 1974   
                      (16 U.S.C. 1600 et seq.), and the Federal Land   
                      Policy and Management Act of 1976 (43 U.S.C. 1701   
                      et seq.);  
                    ``(E) acquisition of easements and fee simple title   
                to property for recreational trails or recreational   
                trail corridors;  
                    ``(F) payment of costs to the State incurred in   
                administering the program, but in an amount not to   
                exceed 7 percent of the apportionment made to the State   
                for the fiscal year to carry out this section; and  
                    ``(G) operation of educational programs to promote   
                safety and environmental protection as those objectives   
                relate to the use of recreational trails, but in an   
                amount not to exceed 5 percent of the apportionment made   
                to the State for the fiscal year.  
            ``(3) Use of apportionments.--  
                    ``(A) In general.--Except as provided in   
                subparagraphs (B), (C), and (D), of the apportionments   
                made to a State for a fiscal year to carry out this   
                section--  
                          ``(i) 40 percent shall be used for   
                      recreational trail or related projects that   
                      facilitate diverse recreational trail use within a   
                      recreational trail corridor, trailside, or   
                      trailhead, regardless of whether the project is   
                      for diverse motorized use, for diverse   
                      nonmotorized use, or to accommodate both motorized   
                      and nonmotorized recreational trail use;  
                          ``(ii) 30 percent shall be used for uses   
                      relating to motorized recreation; and  
                          ``(iii) 30 percent shall be used for uses   
                      relating to nonmotorized recreation.  
                    ``(B) Small state exclusion.--Any State with a total   
                land area of less than 3,500,000 acres shall be exempt   
                from the requirements of clauses (ii) and (iii) of   
                subparagraph (A).  
                    ``(C) Waiver authority.--A State recreational trail   
                advisory committee established under subsection (c)(2)   
                may waive, in whole or in part, the requirements of   
                clauses (ii) and (iii) of subparagraph (A) if the State   
                recreational trail advisory committee determines and   
                notifies the Secretary that the State does not have   
                sufficient projects to meet the requirements of clauses   
                (ii) and (iii) of subparagraph (A).  
                    ``(D) State administrative costs.--State   
                administrative costs eligible for funding under   
                paragraph (2)(F) shall be exempt from the requirements   
                of subparagraph (A).  
            ``(4) Grants.--  
                    ``(A) In general.--A State may use funds apportioned   
                to the State to carry out this section to make grants to  
                private organizations, municipal, county, State, and   
                Federal Government entities, and other government   
                entities as approved by the State after considering   
                guidance from the State recreational trail advisory   
                committee established under subsection (c)(2), for uses   
                consistent with this section.  
                    ``(B) Compliance.--A State that makes grants under   
                subparagraph (A) shall establish measures to verify that   
                recipients of the grants comply with the conditions of   
                the program for the use of grant funds.  
  
    ``(e) Environmental Benefit or Mitigation.--To the extent   
practicable and consistent with the other requirements of this section,   
a State should give consideration to project proposals that provide for   
the redesign, reconstruction, nonroutine maintenance, or relocation of   
recreational trails to benefit the natural environment or to mitigate   
and minimize the impact to the natural environment.  
    ``(f) Federal Share.--  
            ``(1) In general.--Subject to the other provisions of this   
        subsection, the Federal share of the cost of a project under   
        this section shall not exceed 80 percent.  
            ``(2) Federal agency project sponsor.--Notwithstanding any   
        other provision of law, a Federal agency that sponsors a project   
        under this section may contribute additional Federal funds   
        toward the cost of a project, except that--  
                    ``(A) the share attributable to the Secretary of   
                Transportation may not exceed 80 percent of the cost of   
                a project under this section; and  
                    ``(B) the share attributable to the Secretary and   
                the Federal agency may not exceed 95 percent of the cost   
                of a project under this section.  
            ``(3) Use of funds from federal programs to provide non-  
        federal share.--Notwithstanding any other provision of law, the   
        non-Federal share of the cost of the project may include amounts   
        made available by the Federal Government under any Federal   
        program that are--  
                    ``(A) expended in accordance with the requirements   
                of the Federal program relating to activities funded and   
                populations served; and  
                    ``(B) expended on a project that is eligible for   
                assistance under this section.  
            ``(4) Programmatic non-federal share.--A State may allow   
        adjustments to the non-Federal share of an individual project   
        for a fiscal year under this section if the Federal share of the   
        cost of all projects carried out by the State under the program   
        (excluding projects funded under paragraph (2) or (3)) using   
        funds apportioned to the State for the fiscal year does not   
        exceed 80 percent.  
            ``(5) State administrative costs.--The Federal share of the   
        administrative costs of a State under this subsection shall be   
        determined in accordance with section 120(b).  
  
    ``(g) Uses Not Permitted.--A State may not obligate funds   
apportioned to carry out this section for--  
            ``(1) condemnation of any kind of interest in property;  
            ``(2) construction of any recreational trail on National   
        Forest System land for any motorized use unless--  
                    ``(A) the land has been designated for uses other   
                than wilderness by an approved forest land and resource  
                management plan or has been released to uses other than   
                wilderness by an Act of Congress; and  
                    ``(B) the construction is otherwise consistent with   
                the management direction in the approved forest land and   
                resource management plan;  
            ``(3) construction of any recreational trail on Bureau of   
        Land Management land for any motorized use unless the land--  
                    ``(A) has been designated for uses other than   
                wilderness by an approved Bureau of Land Management   
                resource management plan or has been released to uses   
                other than wilderness by an Act of Congress; and  
                    ``(B) the construction is otherwise consistent with   
                the management direction in the approved management   
                plan; or  
            ``(4) upgrading, expanding, or otherwise facilitating   
        motorized use or access to recreational trails predominantly   
        used by nonmotorized recreational trail users and on which, as   
        of May 1, 1991, motorized use was prohibited or had not   
        occurred.  
  
    ``(h) Project Administration.--  
            ``(1) Credit for donations of funds, materials, services, or   
        new right-of-way.--  
                    ``(A) In general.--Nothing in this title or other   
                law shall prevent a project sponsor from offering to   
                donate funds, materials, services, or a new right-of-way   
                for the purposes of a project eligible for assistance   
                under this section. Any funds, or the fair market value   
                of any materials, services, or new right-of-way, may be   
                donated by any project sponsor and shall be credited to   
                the non-Federal share in accordance with subsection (f).  
                    ``(B) Federal project sponsors.--Any funds or the   
                fair market value of any materials or services may be   
                provided by a Federal project sponsor and shall be   
                credited to the Federal agency's share in accordance   
                with subsection (f).  
            ``(2) Recreational purpose.--A project funded under this   
        section is intended to enhance recreational opportunity and is   
        not subject to section 138 of this title or section 303 of title   
        49.  
            ``(3) Continuing recreational use.--At the option of each   
        State, funds apportioned to the State to carry out this section   
        may be treated as Land and Water Conservation Fund   
        apportionments for the purposes of section 6(f)(3) of the Land   
        and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-  
        8(f)(3)).  
            ``(4) Cooperation by private persons.--  
                    ``(A) Written assurances.--As a condition of making   
                available apportionments for work on recreational trails   
                that would affect privately owned land, a State shall   
                obtain written assurances that the owner of the land   
                will cooperate with the State and participate as   
                necessary in the activities to be conducted.  
                    ``(B) Public access.--Any use of the apportionments   
                to a State to carry out this section on privately owned   
                land must be accompanied by an easement or other legally   
                binding agreement that ensures public access to the   
                recreational trail improvements funded by the   
                apportionments.  
    ``(i) Contract Authority.--Funds authorized to carry out this   
section shall be available for obligation in the same manner as if the   
funds were apportioned under chapter 1, except that the Federal share of   
the cost of a project under this section shall be determined in   
accordance with this section.''.  
    (b) Conforming Amendment.--The analysis for chapter 2 of title 23,   
United States Code, is amended by striking the item relating to section   
206 and inserting the following:  
  
``206. Recreational trails program.''.  
  
    (c) Repeal of Obsolete Provision.--Section 1302 of the Intermodal   
Surface Transportation Efficiency Act of 1991 (16 U.S.C. 1261) is   
repealed.  
    (d) Termination of Advisory Committee.--Section 1303 of such Act (16   
U.S.C. 1262) is amended by adding at the end the following:  
    ``(j) Termination.--The advisory committee established by this   
section shall terminate on September 30, 2000.''.  
    (e) <<NOTE: 23 USC 206 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 construction and maintenance of   
recreational trails under section 206 of title 23, United States Code.  
  
SEC. 1113. EMERGENCY RELIEF.  
  
    (a) Federal Share.--Section 120(e) of title 23, United States Code,   
is amended in the first sentence by striking ``highway system'' and   
inserting ``highway''.  
    (b) Eligibility and Funding.--Section 125 of such title is amended--  
            (1) by redesignating subsections (b), (c), and (d) as   
        subsections (d), (e), and (f), respectively;  
            (2) by striking subsection (a) and inserting the following:  
  
    ``(a) General Eligibility.--Subject to this section and section 120,   
an emergency fund is authorized for expenditure by the Secretary for the   
repair or reconstruction of highways, roads, and trails, in any part of   
the United States, including Indian reservations, that the Secretary   
finds have suffered serious damage as a result of--  
            ``(1) natural disaster over a wide area, such as by a flood,   
        hurricane, tidal wave, earthquake, severe storm, or landslide;   
        or  
            ``(2) catastrophic failure from any external cause.  
  
    ``(b) Restriction on Eligibility.--In no event shall funds be used   
pursuant to this section for the repair or reconstruction of bridges   
that have been permanently closed to all vehicular traffic by the State   
or responsible local official because of imminent danger of collapse due   
to a structural deficiency or physical deterioration.  
    ``(c) Funding.--Subject to the following limitations, there are   
authorized to be appropriated from the Highway Trust Fund (other than   
the Mass Transit Account) such sums as may be necessary to establish the   
fund authorized by this section and to replenish it on an annual basis:  
            ``(1) Not more than $100,000,000 is authorized to be   
        obligated in any 1 fiscal year commencing after September 30,   
        1980, to carry out the provisions of this section; except that,   
        if in any fiscal year the total of all obligations under this  
        section is less than the amount authorized to be obligated in   
        such fiscal year, the unobligated balance of such amount shall   
        remain available until expended and shall be in addition to   
        amounts otherwise available to carry out this section each year.  
            ``(2) Pending such appropriation or replenishment, the   
        Secretary may obligate from any funds heretofore or hereafter   
        appropriated for obligation in accordance with this title,   
        including existing Federal-aid appropriations, such sums as may   
        be necessary for the immediate prosecution of the work herein   
        authorized. Funds obligated under this paragraph shall be   
        reimbursed from such appropriation or replenishment.'';  
            (3) in subsection (d) (as so redesignated)--  
                    (A) in the first sentence by striking   
                ``reconstruction of highways'' and all that follows   
                through ``in accordance'' and inserting ``reconstruction   
                of highways on Federal-aid highways in accordance'';  
                    (B) by striking ``subsection (c)'' both places it   
                appears and inserting ``subsection (e)'';  
                    (C) in the second sentence by striking   
                ``authorized'' and all that follows through the period   
                and inserting ``authorized on Federal-aid highways.'';   
                and  
                    (D) in the last sentence by striking ``Disaster   
                Relief and Emergency Assistance Act (Public Law 93-  
                288)'' and inserting ``Robert T. Stafford Disaster   
                Relief and Emergency Assistance Act (42 U.S.C. 5121 et   
                seq.)''; and  
            (4) in subsection (e) (as so redesignated) by striking ``on   
        any of the Federal-aid highway systems'' and inserting   
        ``Federal-aid highways''.  
  
    (c) San Mateo County, California.--Notwithstanding any other   
provision of law, a project to repair or reconstruct any portion of a   
Federal-aid primary route in San Mateo County, California, that--  
            (1) was destroyed as a result of a combination of storms in   
        the winter of 1982-1983 and a mountain slide; and  
            (2) until its destruction, served as the only reasonable   
        access route between 2 cities and as the designated emergency   
        evacuation route of 1 of the cities;  
  
shall be eligible for assistance under section 125(a) of title 23,   
United States Code, if the project complies with the local coastal plan.  
    (d) <<NOTE: 23 USC 120.>> Technical Amendments.--Section 120(e) of   
such title is amended--  
            (1) by striking ``(c)'' and inserting ``(b)''; and  
            (2) by striking ``90'' and inserting ``180''.  
  
SEC. 1114. HIGHWAY USE TAX EVASION PROJECTS.  
  
    (a) In General.--Section 143 of title 23, United States Code, is   
amended to read as follows:  
  
``Sec. 143. Highway use tax evasion projects  
  
    ``(a) State Defined.--In this section, the term `State' means the 50   
States and the District of Columbia.  
    ``(b) Projects.--  
            ``(1) In general.--The Secretary shall carry out highway use   
        tax evasion projects in accordance with this subsection.  
            ``(2) Allocation of funds.--Funds made available to carry   
        out this section may be allocated to the Internal Revenue   
        Service and the States at the discretion of the Secretary.  
            ``(3) Conditions on funds allocated to internal revenue   
        service.--The Secretary shall not impose any condition on the   
        use of funds allocated to the Internal Revenue Service under   
        this subsection.  
            ``(4) Limitation on use of funds.--Funds made available to   
        carry out this section shall be used only--  
                    ``(A) to expand efforts to enhance motor fuel tax   
                enforcement;  
                    ``(B) to fund additional Internal Revenue Service   
                staff, but only to carry out functions described in this   
                paragraph;  
                    ``(C) to supplement motor fuel tax examinations and   
                criminal investigations;  
                    ``(D) to develop automated data processing tools to   
                monitor motor fuel production and sales;  
                    ``(E) to evaluate and implement registration and   
                reporting requirements for motor fuel taxpayers;  
                    ``(F) to reimburse State expenses that supplement   
                existing fuel tax compliance efforts; and  
                    ``(G) to analyze and implement programs to reduce   
                tax evasion associated with other highway use taxes.  
            ``(5) Maintenance of effort.--The Secretary may not make an   
        allocation to a State under this subsection for a fiscal year   
        unless the State certifies that the aggregate expenditure of   
        funds of the State, exclusive of Federal funds, for motor fuel   
        tax enforcement activities will be maintained at a level that   
        does not fall below the average level of such expenditure for   
        the preceding 2 fiscal years of the State.  
            ``(6) Federal share.--The Federal share of the cost of a   
        project carried out under this subsection shall be 100 percent.  
            ``(7) Period of availability.--Funds authorized to carry out   
        this section shall remain available for obligation for a period   
        of 3 years after the last day of the fiscal year for which the   
        funds are authorized.  
            ``(8) Use of surface transportation program funding.--In   
        addition to funds made available to carry out this section, a   
        State may expend up to \1/4\ of 1 percent of the funds   
        apportioned to the State for a fiscal year under section   
        104(b)(3) on initiatives to halt the evasion of payment of motor   
        fuel taxes.  
  
    ``(c) Excise Fuel Reporting System.--  
            ``(1) <<NOTE: Contracts.>>  In general.--Not later than   
        April 1, 1998, the Secretary shall enter into a memorandum of   
        understanding with the Commissioner of the Internal Revenue   
        Service for the purposes of the development and maintenance by   
        the Internal Revenue Service of an excise fuel reporting system   
        (in this subsection referred to as the `system').  
            ``(2) Elements of memorandum of understanding.--The   
        memorandum of understanding shall provide that--  
                    ``(A) the Internal Revenue Service shall develop and   
                maintain the system through contracts;  
                    ``(B) the system shall be under the control of the   
                Internal Revenue Service; and  
                    ``(C) the system shall be made available for use by   
                appropriate State and Federal revenue, tax, and law  
                enforcement authorities, subject to section 6103 of the   
                Internal Revenue Code of 1986.  
            ``(3) Funding.--Of the amounts made available to carry out   
        this section for each of fiscal years 1998 through 2003, the   
        Secretary shall make available sufficient funds to the Internal   
        Revenue Service to establish and operate an automated fuel   
        reporting system.''.  
  
    (b) Conforming Amendments.--  
            (1) The analysis for chapter 1 of such title is amended by   
        striking the item relating to section 143 and inserting the   
        following:  
  
``143. Highway use tax evasion projects.''.  
  
            (2) Section 1040 of the Intermodal Surface Transportation   
        Efficiency Act of 1991 (23 U.S.C. 101 note; 105 Stat. 1992) is   
        repealed.  
            (3) Section 8002 of the Intermodal Surface Transportation   
        Efficiency Act of 1991 (23 U.S.C. 101 note; 105 Stat. 2203) is   
        amended--  
                    (A) in the first sentence of subsection (g) by   
                striking ``section 1040 of this Act'' and inserting   
                ``section 143 of title 23, United States Code,''; and  
                    (B) by striking subsection (h).  
  
SEC. 1115. FEDERAL LANDS HIGHWAYS PROGRAM.  
  
    (a) Federal Share Payable.--Section 120 of title 23, United States   
Code, is amended by adding at the end the following:  
    ``(j) Use of Federal Land Management Agency Funds.--Notwithstanding   
any other provision of law, the funds appropriated to any Federal land   
management agency may be used to pay the non-Federal share of the cost   
of any Federal-aid highway project the Federal share of which is funded   
under section 104.  
    ``(k) Use of Federal Lands Highways Program Funds.--Notwithstanding   
any other provision of law, the funds authorized to be appropriated to   
carry out the Federal lands highways program under section 204 may be   
used to pay the non-Federal share of the cost of any project that is   
funded under section 104 and that provides access to or within Federal   
or Indian lands.''.  
    (b) Allocations.--Section 202(d) of such title is amended--  
            (1) by inserting ``Indian Reservation Roads.--'' after   
        ``(d)'';  
            (2) by inserting ``(1) For fiscal years ending before   
        october 1, 1999.--'' before ``On October'';  
            (3) by inserting after ``each fiscal year'' the following:   
        ``ending before October 1, 1999'';  
            (4) by adding at the end the following:  
            ``(2) Fiscal year 2000 and thereafter.--  
                    ``(A) In general.--All funds authorized to be   
                appropriated for Indian reservation roads shall be   
                allocated among Indian tribes for fiscal year 2000 and   
                each subsequent fiscal year in accordance with a formula   
                established by the Secretary of the Interior under a   
                negotiated rulemaking procedure under subchapter III of   
                chapter 5 of title 5.  
                    ``(B) Regulations.--Notwithstanding sections 563(a)   
                and 565(a) of title 5, the Secretary of the Interior   
                shall issue regulations governing the Indian reservation   
                roads program, and establishing the funding formula for   
                fiscal  
                year 2000 and each subsequent fiscal year under this   
                paragraph, in accordance with a negotiated rulemaking   
                procedure under subchapter III of chapter 5 of title 5.   
                The regulations shall be issued in final form not later   
                than April 1, 1999, and shall take effect not later than   
                October 1, 1999.  
                    ``(C) Negotiated rulemaking committee.--In   
                establishing a negotiated rulemaking committee to carry   
                out subparagraph (B), the Secretary of the Interior   
                shall--  
                          ``(i) apply the procedures under subchapter   
                      III of chapter 5 of title 5 in a manner that   
                      reflects the unique government-to-government   
                      relationship between the Indian tribes and the   
                      United States; and  
                          ``(ii) ensure that the membership of the   
                      committee includes only representatives of the   
                      Federal Government and of geographically diverse   
                      small, medium, and large Indian tribes.  
                    ``(D) Basis for funding formula.--The funding   
                formula established for fiscal year 2000 and each   
                subsequent fiscal year under this paragraph shall be   
                based on factors that reflect--  
                          ``(i) the relative needs of the Indian tribes,   
                      and reservation or tribal communities, for   
                      transportation assistance; and  
                          ``(ii) the relative administrative capacities   
                      of, and challenges faced by, various Indian   
                      tribes, including the cost of road construction in   
                      each Bureau of Indian Affairs area, geographic   
                      isolation and difficulty in maintaining all-  
                      weather access to employment, commerce, health,   
                      safety, and educational resources.  
            ``(3) Contracts and agreements with indian tribes.--  
                    ``(A) In general.--Notwithstanding any other   
                provision of law or any interagency agreement, program   
                guideline, manual, or policy directive, all funds made   
                available under this title for Indian reservation roads   
                and for highway bridges located on Indian reservation   
                roads to pay for the costs of programs, services,   
                functions, and activities, or portions thereof, that are   
                specifically or functionally related to the cost of   
                planning, research, engineering, and construction of any   
                highway, road, bridge, parkway, or transit facility that   
                provides access to or is located within the reservation   
                or community of an Indian tribe shall be made available,   
                upon request of the Indian tribal government, to the   
                Indian tribal government for contracts and agreements   
                for such planning, research, engineering, and   
                construction in accordance with the Indian Self-  
                Determination and Education Assistance Act.  
                    ``(B) Exclusion of agency participation.--Funds for   
                programs, functions, services, or activities, or   
                portions thereof, including supportive administrative   
                functions that are otherwise contractible to which   
                subparagraph (A) applies, shall be paid in accordance   
                with subparagraph (A) without regard to the   
                organizational level at which the Department of the   
                Interior that has previously carried out such programs,   
                functions, services, or activities.  
            ``(4) Reservation of funds.--  
                    ``(A) Nationwide priority program.--The Secretary   
                shall establish a nationwide priority program for   
                improving deficient Indian reservation road bridges.  
                    ``(B) Reservation.--Of the amounts authorized to be   
                appropriated for Indian reservation roads for each   
                fiscal year, the Secretary, in cooperation with the   
                Secretary of the Interior, shall reserve not less than   
                $13,000,000 for projects to replace, rehabilitate,   
                seismically retrofit, paint, apply calcium magnesium   
                acetate to, apply sodium acetate/formate de-icer to, or   
                install scour countermeasures for deficient Indian   
                reservation road bridges, including multiple-pipe   
                culverts.  
                    ``(C) Eligible bridges.--To be eligible to receive   
                funding under this subsection, a bridge described in   
                subparagraph (A) must--  
                          ``(i) have an opening of 20 feet or more;  
                          ``(ii) be on an Indian reservation road;  
                          ``(iii) be unsafe because of structural   
                      deficiencies, physical deterioration, or   
                      functional obsolescence; and  
                          ``(iv) be recorded in the national bridge   
                      inventory administered by the Secretary under   
                      subsection (b).  
                    ``(D) Approval requirement.--Funds to carry out   
                Indian reservation road bridge projects under this   
                subsection shall be made available only on approval of   
                plans, specifications, and estimates by the   
                Secretary.''; and  
            (5) by indenting paragraph (1) (as designated by paragraph   
        (2) of this paragraph) and aligning paragraph (1) with   
        paragraphs (2), (3), and (4) (as added by paragraph (4) of this   
        paragraph).  
  
    (c) <<NOTE: 23 USC 203.>>  Availability of Funds.--Section 203 of   
such title is amended by adding at the end the following:   
``Notwithstanding any other provision of law, the authorization by the   
Secretary of engineering and related work for a Federal lands highways   
program project, or the approval by the Secretary of plans,   
specifications, and estimates for construction of a Federal lands   
highways program project, shall be deemed to constitute a contractual   
obligation of the Federal Government to pay the Federal share of the   
cost of the project.''.  
  
    (d) Planning and Agency Coordination.--Section 204 of such title is   
amended--  
            (1) by striking subsection (a) and inserting the following:  
  
    ``(a) Establishment.--  
            ``(1) In general.--Recognizing the need for all Federal   
        roads that are public roads to be treated under uniform policies   
        similar to the policies that apply to Federal-aid highways,   
        there is established a coordinated Federal lands highways   
        program that shall apply to public lands highways, park roads   
        and parkways, and Indian reservation roads and bridges.  
            ``(2) Transportation planning procedures.--In consultation   
        with the Secretary of each appropriate Federal land management   
        agency, the Secretary shall develop, by rule, transportation   
        planning procedures that are consistent with the metropolitan   
        and statewide planning processes required under sections 134 and   
        135.  
            ``(3) Approval of transportation improvement program.--The   
        transportation improvement program developed as  
        a part of the transportation planning process under this section   
        shall be approved by the Secretary.  
            ``(4) Inclusion in other plans.--All regionally significant   
        Federal lands highways program projects--  
                    ``(A) shall be developed in cooperation with States   
                and metropolitan planning organizations; and  
                    ``(B) shall be included in appropriate Federal lands   
                highways program, State, and metropolitan plans and   
                transportation improvement programs.  
            ``(5) Inclusion in state programs.--The approved Federal   
        lands highways program transportation improvement program shall   
        be included in appropriate State and metropolitan planning   
        organization plans and programs without further action on the   
        transportation improvement program.  
            ``(6) Development of systems.--The Secretary and the   
        Secretary of each appropriate Federal land management agency   
        shall, to the extent appropriate, develop by rule safety,   
        bridge, pavement, and congestion management systems for roads   
        funded under the Federal lands highways program.'';  
            (2) in subsection (b) by striking the first 3 sentences and   
        inserting the following: ``Funds available for public lands   
        highways, park roads and parkways, and Indian reservation roads   
        shall be used by the Secretary and the Secretary of the   
        appropriate Federal land management agency to pay for the cost   
        of transportation planning, research, engineering, and   
        construction of the highways, roads, and parkways, or of transit   
        facilities within public lands, national parks, and Indian   
        reservations. In connection with activities under the preceding   
        sentence, the Secretary and the Secretary of the appropriate   
        Federal land management agency may enter into construction   
        contracts and other appropriate contracts with a State or civil   
        subdivision of a State or Indian tribe.'';  
            (3) in the first sentence of subsection (e) by striking   
        ``Secretary of the Interior'' and inserting ``Secretary of the   
        appropriate Federal land management agency'';  
            (4) in subsection (h) by adding at the end the following:  
            ``(8) A project to build a replacement of the federally   
        owned bridge over the Hoover Dam in the Lake Mead National   
        Recreation Area between Nevada and Arizona.'';  
            (5) by striking subsection (i) and inserting the following:  
  
    ``(i) Transfers of Costs to Secretaries of Federal Land Management   
Agencies.--  
            ``(1) Administrative costs.--The Secretary shall transfer to   
        the appropriate Federal land management agency from amounts made   
        available for public lands highways such amounts as are   
        necessary to pay necessary administrative costs of the agency in   
        connection with public lands highways.  
            ``(2) Transportation planning costs.--The Secretary shall   
        transfer to the appropriate Federal land management agency from   
        amounts made available for public lands highways such amounts as   
        are necessary to pay the cost to the agency to conduct necessary   
        transportation planning for Federal lands, if funding for the   
        planning is not otherwise provided under this section.''; and  
            (6) in subsection (j) by striking the second sentence and   
        inserting the following: ``The Indian tribal government, in  
        cooperation with the Secretary of the Interior, and as   
        appropriate, with a State, local government, or metropolitan   
        planning organization, shall carry out a transportation planning   
        process in accordance with subsection (a).''.  
  
    (e) Refuge Roads.--  
            (1) Authorizations.--Section 201 of such title is <<NOTE: 23   
        USC 201.>> amended in the first sentence by inserting ``refuge   
        roads,'' before ``public lands highways,''.  
            (2) Allocations.--Section 202 of such title is amended by   
        adding at the end the following:  
  
    ``(e) Refuge Roads.-- <<NOTE: Effective date.>> On October 1 of each   
fiscal year, the Secretary shall allocate the sums made available for   
that fiscal year for refuge roads according to the relative needs of the   
various refuges in the National Wildlife Refuge System, and taking into   
consideration--  
            ``(1) the comprehensive conservation plan for each refuge;  
            ``(2) the need for access as identified through land use   
        planning; and  
            ``(3) the impact of land use planning on existing   
        transportation facilities.''.  
            (3) Availability of funds.--Section 203 of such title is   
        amended in the first and fourth sentences--  
                    (A) by striking ``for,'' and inserting ``for''; and  
                    (B) by inserting ``refuge roads,'' after   
                ``parkways,'' each place it appears.  
            (4) Use of funding.--Section 204 of such title is amended by   
        adding at the end the following:  
  
    ``(k) Refuge Roads.--  
            ``(1) In general.--Notwithstanding any other provision of   
        this title, funds made available for refuge roads shall be used   
        by the Secretary and the Secretary of the Interior only to pay   
        the cost of--  
                    ``(A) maintenance and improvements of refuge roads;  
                    ``(B) maintenance and improvements of eligible   
                projects described in paragraphs (2), (5), and (6) of   
                subsection (h) that are located in or adjacent to   
                wildlife refuges; and  
                    ``(C) administrative costs associated with such   
                maintenance and improvements.  
            ``(2) Contracts.--In carrying out paragraph (1), the   
        Secretary and the Secretary of the Interior, as appropriate, may   
        enter into contracts with a State or civil subdivision of a   
        State or Indian tribe as is determined advisable.  
            ``(3) Compliance with other law.--Funds made available for   
        refuge roads shall be used only for projects that are in   
        compliance with the National Wildlife Refuge System   
        Administration Act of 1966 (16 U.S.C. 668dd et seq.).''.  
  
SEC. 1116. WOODROW WILSON MEMORIAL BRIDGE.  
  
    (a) Definitions.--Section 404 of the Woodrow Wilson Memorial Bridge   
Authority Act of 1995 (109 Stat. 628) is amended--  
            (1) in paragraph (3) by striking ``, including approaches   
        thereto''; and  
            (2) in paragraph (5) by striking ``to be determined under   
        section 407. Such'' and all that follows through the period at   
        the end and inserting the following: ``as described in the   
        record of decision executed by the Secretary in compliance with   
        the National Environmental Policy Act of 1969 (42 U.S.C.  
        4321 et seq.). The term includes ongoing short-term   
        rehabilitation and repairs to the Bridge.''.  
  
    (b) Ownership of Bridge.--  
            (1) Conveyance by the secretary.--Section 407(a)(1) of such   
        Act (109 Stat. 630) is amended by inserting ``or any Capital   
        Region jurisdiction'' after ``Authority'' each place it appears.  
            (2) Agreement.--Section 407 of such Act (109 Stat. 630) is   
        amended by striking subsection (c) and inserting the following:  
  
    ``(c) Agreement.--  
            ``(1) In general.--The agreement referred to in subsection   
        (a) is an agreement concerning the Project that is executed by   
        the Secretary and the Authority or any Capital Region   
        jurisdiction that accepts ownership of the new bridge.  
            ``(2) Terms of the agreement.--The agreement shall--  
                    ``(A) identify whether the Authority or a Capital   
                Region jurisdiction will accept ownership of the new   
                bridge;  
                    ``(B) contain a financial plan satisfactory to the   
                Secretary, which shall be prepared before the execution   
                of the agreement, that specifies--  
                          ``(i) the total cost of the Project, including   
                      any cost-saving measures;  
                          ``(ii) a schedule for implementation of the   
                      Project, including whether any expedited design   
                      and construction techniques will be used; and  
                          ``(iii) the sources of funding that will be   
                      used to cover any costs of the Project not funded   
                      from funds made available under section 412;  
                    ``(C) require that--  
                          ``(i) the Project include not more than 12   
                      traffic lanes, including 8 general purpose lanes,   
                      2 merging/diverging lanes, and 2 high occupancy   
                      vehicle, express bus, or rail transit lanes;  
                          ``(ii) the design, construction, and operation   
                      of the Project reflect the requirements of clause   
                      (i);  
                          ``(iii) all provisions described in the   
                      environmental impact statement for the Project or   
                      the record of decision for the Project (including   
                      in the attachments to the statement and record)   
                      for mitigation of environmental and other impacts   
                      of the Project be implemented; and  
                          ``(iv) the Authority and the Capital Region   
                      jurisdictions develop a process to integrate   
                      affected local governments, on an ongoing basis,   
                      in the process of carrying out the engineering,   
                      design, and construction phases of the project,   
                      including planning for implementing the provisions   
                      described in clause (iii); and  
                    ``(D) contain such other terms and conditions as the   
                Secretary determines to be appropriate.''.  
  
    (c) Federal Contribution.--Such Act (109 Stat. 627) is amended by   
adding at the end the following:  
  
``SEC. 412. FEDERAL CONTRIBUTION.  
  
    ``(a) Funding.--  
            ``(1) In general.--There is authorized to be appropriated   
        from the Highway Trust Fund (other than the Mass Transit   
        Account) $25,000,000 for fiscal year 1998, $75,000,000 for   
        fiscal year 1999, $150,000,000 for fiscal year 2000,   
        $200,000,000 for fiscal year 2001, $225,000,000 for fiscal year   
        2002, and $225,000,000 for fiscal year 2003 to pay the costs of   
        planning, preliminary engineering and design, final engineering,   
        acquisition of rights-of-way, and construction of the Project;   
        except that the costs associated with the Bridge shall be given   
        priority over other eligible costs, other than design costs, of   
        the Project.  
            ``(2) Contract authority.--Funds authorized by this section   
        shall be available for obligation in the same manner as if the   
        funds were apportioned under chapter 1 of title 23, United   
        States Code; except that--  
                    ``(A) the funds shall remain available until   
                expended;  
                    ``(B) the Federal share of the cost of the Bridge   
                component of the Project shall not exceed 100 percent;   
                and  
                    ``(C) the Federal share of the cost of any other   
                component of the Project shall not exceed 80 percent.  
  
    ``(b) Use of Apportioned Funds.--Nothing in this title limits the   
authority of any Capital Region jurisdiction to use funds apportioned to   
the jurisdiction under paragraphs (1) and (3) of section 104(b) of title   
23, United States Code, in accordance with the requirements for such   
funds, to pay any costs of the Project.  
    ``(c) Availability of Apportioned Funds.--None of the funds made   
available under this section shall be available for construction before   
the execution of the agreement described in section 407(c), except that   
the Secretary may fund the maintenance and rehabilitation of the Bridge,   
the design of the Project, and right-of-way acquisition, including early   
acquisition of construction staging areas.''.  
    (d) Conforming Amendment.--Section 405(b)(1) of such Act (109 Stat.   
629) is amended by striking ``the Signatories as to the Federal share of   
the cost of the Project and the terms and conditions related to the   
timing of the transfer of the Bridge to''.  
  
SEC. 1117. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM.  
  
    (a) Apportionment.--The Secretary shall apportion funds made   
available by section 102 of this Act for fiscal years 1998 through 2003   
among the States based on the latest available cost to complete estimate   
for the Appalachian development highway system under section 201 of the   
Appalachian Regional Development Act of 1965 prepared by the Appalachian   
Regional Commission. Such funds shall be available to construct highways   
and access roads under section 201 of the Appalachian Regional   
Development Act of 1965.  
    (b) Applicability of Title 23.--Funds authorized by section 102 of   
this Act for the Appalachian development highway system shall be   
available for obligation in the same manner as if such funds were   
apportioned under chapter 1 of title 23, United States Code, except that   
the Federal share of the cost of any project under this section shall be   
determined in accordance with such section 201 and such funds shall   
remain available until expended.  
    (c) Federal Share for Pre-Financed Projects.--Section 201(h)(1) of   
the Appalachian Regional Development Act of 1965 (40 U.S.C. App.) is   
amended by striking ``70'' and inserting ``80''.  
    (d) Corridor O.--There is hereby designated as an addition to   
Corridor O in Pennsylvania on the Appalachian development highway system   
a segment from Port Matilda to Interstate Route 80 along United States   
Route 322, and the segment of Corridor O from the Pennsylvania State   
line to the improved segment in Bedford, Pennsylvania, shall be   
subtracted from Corridor O. Such designated addition shall not affect   
estimates of the cost to complete such system and such subtracted   
segment may be included on a map of such system for purposes of   
continuity only.  
  
SEC. 1118. <<NOTE: 23 USC 101 note.>>  NATIONAL CORRIDOR PLANNING AND 
         DEVELOPMENT PROGRAM.  
  
    (a) In General.--The Secretary shall establish and implement a   
program to make allocations to States and metropolitan planning   
organizations for coordinated planning, design, and construction of   
corridors of national significance, economic growth, and international   
or interregional trade. A State or metropolitan planning organization   
may apply to the Secretary for allocations under this section.  
    (b) Eligibility of Corridors.--The Secretary may make allocations   
under this section with respect to--  
            (1) high priority corridors identified in section 1105(c) of   
        the Intermodal Surface Transportation Efficiency Act of 1991;   
        and  
            (2) any other significant regional or multistate highway   
        corridor not described in whole or in part in paragraph (1)   
        selected by the Secretary after consideration of--  
                    (A) the extent to which the annual volume of   
                commercial vehicle traffic at the border stations or   
                ports of entry of each State--  
                          (i) has increased since the date of enactment   
                      of the North American Free Trade Agreement   
                      Implementation Act (Public Law 103-182); and  
                          (ii) is projected to increase in the future;  
                    (B) the extent to which commercial vehicle traffic   
                in each State--  
                          (i) has increased since the date of enactment   
                      of the North American Free Trade Agreement   
                      Implementation Act (Public Law 103-182); and  
                          (ii) is projected to increase in the future;  
                    (C) the extent to which international truck-borne   
                commodities move through each State;  
                    (D) the reduction in commercial and other travel   
                time through a major international gateway or affected   
                port of entry expected as a result of the proposed   
                project including the level of traffic delays at at-  
                grade highway crossings of major rail lines in trade   
                corridors;  
                    (E) the extent of leveraging of Federal funds   
                provided under this subsection, including--  
                          (i) use of innovative financing;  
                          (ii) combination with funding provided under   
                      other sections of this Act and title 23, United   
                      States Code; and  
                          (iii) combination with other sources of   
                      Federal, State, local, or private funding   
                      including State, local, and private matching   
                      funds;  
                    (F) the value of the cargo carried by commercial   
                vehicle traffic, to the extent that the value of the   
                cargo and congestion impose economic costs on the   
                Nation's economy; and  
                    (G) encourage or facilitate major multistate or   
                regional mobility and economic growth and development in   
                areas underserved by existing highway infrastructure.  
  
    (c) Purposes.--Allocations may be made under this section for 1 or   
more of the following purposes:  
            (1) Feasibility studies.  
            (2) Comprehensive corridor planning and design activities.  
            (3) Location and routing studies.  
            (4) Multistate and intrastate coordination for corridors   
        described in subsection (b).  
            (5) After review by the Secretary of a development and   
        management plan for the corridor or a usable component thereof   
        under subsection (b)--  
                    (A) environmental review; and  
                    (B) construction.  
  
    (d) Corridor Development and Management Plan.--A State or   
metropolitan planning organization receiving an allocation under this   
section shall develop, and submit to the Secretary for review, a   
development and management plan for the corridor or a usable component   
thereof with respect to which the allocation is being made. Such plan   
shall include, at a minimum, the following elements:  
            (1) A complete and comprehensive analysis of corridor costs   
        and benefits.  
            (2) A coordinated corridor development plan and schedule,   
        including a timetable for completion of all planning and   
        development activities, environmental reviews and permits, and   
        construction of all segments.  
            (3) A finance plan, including any innovative financing   
        methods and, if the corridor is a multistate corridor, a State-  
        by-State breakdown of corridor finances.  
            (4) The results of any environmental reviews and mitigation   
        plans.  
            (5) The identification of any impediments to the development   
        and construction of the corridor, including any environmental,   
        social, political and economic objections.  
  
In the case of a multistate corridor, the Secretary shall encourage all   
States having jurisdiction over any portion of such corridor to   
participate in the development of such plan.  
    (e) Applicability of Title 23.--Funds made available by section 1101   
of this Act to carry out this section and section 1119 shall be   
available for obligation in the same manner as if such funds were   
apportioned under chapter 1 of title 23, United States Code.  
    (f) Coordination of Planning.--Planning with respect to a corridor   
under this section shall be coordinated with transportation planning   
being carried out by the States and metropolitan planning organizations   
along the corridor and, to the extent appropriate, with transportation   
planning being carried out by Federal land management agencies, by   
tribal governments, or by government agencies in Mexico or Canada.  
    (g) State Defined.--In this section, the term ``State'' has the   
meaning such term has under section 101 of title 23, United States Code.
  
SEC. 1119. COORDINATED BORDER INFRASTRUCTURE PROGRAM. <<NOTE: 23 USC 101 
           note. Canada. Mexico.>>   
  
    (a) General Authority.--The Secretary shall establish and implement   
a coordinated border infrastructure program under which the Secretary   
may make allocations to border States and metropolitan planning   
organizations for areas within the boundaries of 1 or more border States   
for projects to improve the safe movement of people and goods at or   
across the border between the United States and Canada and the border   
between the United States and Mexico.  
    (b) Eligible Uses.--Allocations to States and metropolitan planning   
organizations under this section may only be used in a border region   
for--  
            (1) improvements to existing transportation and supporting   
        infrastructure that facilitate cross-border vehicle and cargo   
        movements;  
            (2) construction of highways and related safety and safety   
        enforcement facilities that will facilitate vehicle and cargo   
        movements related to international trade;  
            (3) operational improvements, including improvements   
        relating to electronic data interchange and use of   
        telecommunications, to expedite cross border vehicle and cargo   
        movement;  
            (4) modifications to regulatory procedures to expedite cross   
        border vehicle and cargo movements;  
            (5) international coordination of planning, programming, and   
        border operation with Canada and Mexico relating to expediting   
        cross border vehicle and cargo movements; and  
            (6) activities of Federal inspection agencies.  
  
    (c) Selection Criteria.--The Secretary shall make allocations under   
this section on the basis of--  
            (1) expected reduction in commercial and other motor vehicle   
        travel time through an international border crossing as a result   
        of the project;  
            (2) improvements in vehicle and highway safety and cargo   
        security related to motor vehicles crossing a border with Canada   
        or Mexico;  
            (3) strategies to increase the use of existing,   
        underutilized border crossing facilities and approaches;  
            (4) leveraging of Federal funds provided under this section,   
        including use of innovative financing, combination of such funds   
        with funding provided under other sections of this Act, and   
        combination with other sources of Federal, State, local, or   
        private funding;  
            (5) degree of multinational involvement in the project and   
        demonstrated coordination with other Federal agencies   
        responsible for the inspection of vehicles, cargo, and persons   
        crossing international borders and their counterpart agencies in   
        Canada and Mexico;  
            (6) improvements in vehicle and highway safety and cargo   
        security in and through the gateway or affected port of entry   
        concerned;  
            (7) the degree of demonstrated coordination with Federal   
        inspection agencies;  
            (8) the extent to which the innovative and problem solving   
        techniques of the proposed project would be applicable to other   
        border stations or ports of entry;  
            (9) demonstrated local commitment to implement and sustain   
        continuing comprehensive border or affected port of entry   
        planning processes and improvement programs; and  
            (10) such other factors as the Secretary determines are   
        appropriate to promote border transportation efficiency and   
        safety.  
  
    (d) Construction of Transportation Infrastructure for Law   
Enforcement Purposes.--At the request of the Administrator of General   
Services, in consultation with the Attorney General, the Secretary may   
transfer, during the period of fiscal years 1998 through 2001, not more   
than $10,000,000 of the amounts made available by section 1101 to carry   
out this section and section 1118 to the Administrator of General   
Services for the construction of transportation infrastructure necessary   
for law enforcement in border States.  
    (e) Definitions.--In this section, the following definitions apply:  
            (1) Border region.--The term ``border region'' means the   
        portion of a border State in the vicinity of an international   
        border with Canada or Mexico.  
            (2) Border state.--The term ``border State'' means any State   
        that has a boundary in common with Canada or Mexico.  

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