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Subtitle C--Program Streamlining and Flexibility
SEC. 1301. REAL PROPERTY ACQUISITION AND CORRIDOR PRESERVATION.
(a) Advance Acquisition of Real Property.--Section 108 of title 23,
United States Code, is amended by striking the section heading and
subsection (a) and inserting the following:
``Sec. 108. Advance acquisition of real property
``(a) In General.--
``(1) Availability of funds.--For the purpose of
facilitating the timely and economical acquisition of real
property for a transportation improvement eligible for funding
under this title, the Secretary, upon the request of a State,
may make available, for the acquisition of real property, such
funds apportioned to the State as may be expended on the
transportation improvement, under such rules and regulations as
the Secretary may issue.
``(2) Construction.--The agreement between the Secretary and
the State for the reimbursement of the cost of the real property
shall provide for the actual construction of the transportation
improvement within a period not to exceed 20 years following the
fiscal year for which the request is made, unless the Secretary
determines that a longer period is reasonable.''.
(b) Credit for Acquired Lands.--Section 323(b) of such title is
amended--
(1) in the subsection heading, by striking ``Donated'' and
inserting ``Acquired'';
(2) by striking paragraphs (1) and (2) and inserting the
following:
``(1) In general.--Notwithstanding any other provision of
this title, the State share of the cost of a project with
respect to which Federal assistance is provided from the Highway
Trust Fund (other than the Mass Transit Account) may be credited
in an amount equal to the fair market value of any land that--
``(A) is lawfully obtained by the State or a unit of
local government in the State;
``(B) is incorporated into the project;
``(C) is not land described in section 138; and
``(D) the Secretary determines will not influence
the environmental assessment of the project, including--
``(i) the decision as to the need to construct
the project;
``(ii) the consideration of alternatives; and
``(iii) the selection of a specific location.
``(2) Establishment of fair market value.--The fair market
value of land incorporated into a project and credited under
paragraph (1) shall be established in the manner determined by
the Secretary, except that--
``(A) the fair market value shall not include any
increase or decrease in the value of donated property
caused by the project; and
``(B) the fair market value of donated land shall be
established as of the earlier of--
``(i) the date on which the donation becomes
effective; or
``(ii) the date on which equitable title to
the land vests in the State.'';
(3) in paragraph (3) by striking ``agency of a Federal,
State, or local government'' and inserting ``agency of the
Federal Government''; and
(4) in paragraph (4) by striking ``to which the donation is
applied''.
(c) Crediting of Contributions by Units of Local Government Toward
the State Share.--Section 323 of such title <<NOTE: 23 USC 323.>> is
amended by adding at the end the following:
``(e) Crediting of Contributions by Units of Local Government Toward
the State Share.--A contribution by a unit of local government of real
property, funds, or material in connection with a project eligible for
assistance under this title shall be credited against the State share of
the project at the fair market value of the real property, funds, or
material.''.
(d) Conforming Amendments.--
(1) Section 323 of such title is amended by striking the
section heading and inserting the following:
``Sec. 323. Donations and credits''.
(2) The analysis for chapter 1 of such title is amended by
striking the item relating to section 108 and inserting the
following:
``108. Advance acquisition of real property.''.
(3) The analysis for chapter 3 of such title is amended by
striking the item relating to section 323 and inserting the
following:
``323. Donations and credits.''.
SEC. 1302. PAYMENTS TO STATES FOR CONSTRUCTION.
Section 121 of title 23, United States Code, is amended--
(1) by striking subsections (a) and (b) and inserting the
following:
``(a) In General.--The Secretary, from time to time as the work
progresses, may make payments to a State for costs of construction
incurred by the State on a project. Such payments may also be made for
the value of the materials--
``(1) that have been stockpiled in the vicinity of the
construction in conformity to plans and specifications for the
projects; and
``(2) that are not in the vicinity of the construction if
the Secretary determines that because of required fabrication at
an off-site location the material cannot be stockpiled in such
vicinity.
``(b) Project Agreement.--No payment shall be made under this
chapter except for a project covered by a project agreement. After
completion of the project in accordance with the project agreement, a
State shall be entitled to payment out of the appropriate sums
apportioned or allocated to the State of the unpaid balance of the
Federal share payable for such project.'';
(2) by striking subsections (c) and (d); and
(3) by redesignating subsection (e) as subsection (c).
SEC. 1303. PROCEEDS FROM THE SALE OR LEASE OF REAL PROPERTY.
(a) In General.--Section 156 of title 23, United States Code, is
amended to read as follows:
``Sec. 156. Proceeds from the sale or lease of real property
``(a) Minimum Charge.--Subject to section 142(f), a State shall
charge, at a minimum, fair market value for the sale, use, lease, or
lease renewal (other than for utility use and occupancy or for a
transportation project eligible for assistance under this title) of real
property acquired with Federal assistance made available from the
Highway Trust Fund (other than the Mass Transit Account).
``(b) Exceptions.--The Secretary may grant an exception to the
requirement of subsection (a) for a social, environmental, or economic
purpose.
``(c) Use of Federal Share of Income.--The Federal share of net
income from the revenues obtained by a State under subsection (a) shall
be used by the State for projects eligible under this title.''.
(b) Conforming Amendment.--The analysis for chapter 1 of such title
is amended by striking the item relating to section 156 and inserting
the following:
``156. Proceeds from the sale or lease of real property.''.
SEC. 1304. ENGINEERING COST REIMBURSEMENT.
Section 102(b) of title 23, United States Code, is amended in the
first sentence by inserting after ``10 years'' the following: ``(or such
longer period as the State requests and the Secretary determines to be
reasonable)''.
SEC. 1305. PROJECT APPROVAL AND OVERSIGHT.
(a) In General.--Section 106 of title 23, United States Code, is
amended--
(1) by striking the section heading and inserting the
following:
``Sec. 106. Project approval and oversight'';
(2) by redesignating subsections (e) and (f) as subsections
(f) and (g), respectively; and
(3) by striking subsections (a) through (d) and inserting
the following:
``(a) In General.--
``(1) Submission of plans, specifications, and estimates.--
Except as otherwise provided in this section, each State
transportation department shall submit to the Secretary for
approval such plans, specifications, and estimates for each
proposed project as the Secretary may require.
``(2) Project agreement.--The Secretary shall act on the
plans, specifications, and estimates as soon as practicable
after the date of their submission and shall enter into a formal
project agreement with the State transportation department
formalizing the conditions of the project approval.
``(3) Contractual obligation.--The execution of the project
agreement shall be deemed a contractual obligation of the
Federal Government for the payment of the Federal share of the
cost of the project.
``(4) Guidance.--In taking action under this subsection, the
Secretary shall be guided by section 109.
``(b) Project Agreement.--
``(1) Provision of state funds.--The project agreement shall
make provision for State funds required to pay the State's non-
Federal share of the cost of construction of the project and to
pay for maintenance of the project after completion of
construction.
``(2) Representations of state.--If a part of the project is
to be constructed at the expense of, or in cooperation with,
political subdivisions of the State, the Secretary may rely on
representations made by the State transportation department with
respect to the arrangements or agreements made by the State
transportation department and appropriate local officials for
ensuring that the non-Federal contribution will be provided
under paragraph (1).
``(c) Assumption by States of Responsibilities of the Secretary.--
``(1) Non-interstate nhs projects.--For projects under this
title that are on the National Highway System but not on the
Interstate System, the State may assume the responsibilities of
the Secretary under this title for design, plans,
specifications, estimates, contract awards, and inspections of
projects unless the State or the Secretary determines that such
assumption is not appropriate.
``(2) Non-nhs projects.--For projects under this title that
are not on the National Highway System, the State shall assume
the responsibilities of the Secretary under this title for
design, plans, specifications, estimates, contract awards, and
inspection of projects, unless the State determines that such
assumption is not appropriate.
``(3) Agreement.--The Secretary and the State shall enter
into an agreement relating to the extent to which the State
assumes the responsibilities of the Secretary under this
subsection.
``(4) Limitation on authority of secretary.--The Secretary
may not assume any greater responsibility than the Secretary is
permitted under this title on September 30, 1997, except upon
agreement by the Secretary and the State.
``(d) Responsibilities of the Secretary.--Nothing in this section,
section 133, or section 149 shall affect or discharge any responsibility
or obligation of the Secretary under--
``(1) section 113 or 114; or
``(2) any Federal law other than this title (including
section 5333 of title 49).
``(e) Value Engineering Analysis.--For such projects as the
Secretary determines advisable, plans, specifications, and estimates
for proposed projects on any Federal-aid highway shall be accompanied by
a value engineering analysis or other cost reduction analysis.''.
(b) Financial Plan.--Section 106 of such title (as amended by
subsection (a)(2)), is amended <<NOTE: 23 USC 106.>> by adding at the
end the following:
``(h) Financial Plan.--A recipient of Federal financial assistance
for a project under this title with an estimated total cost of
$1,000,000,000 or more shall submit to the Secretary an annual financial
plan for the project. The plan shall be based on detailed annual
estimates of the cost to complete the remaining elements of the project
and on reasonable assumptions, as determined by the Secretary, of future
increases in the cost to complete the project.''.
(c) Life Cycle Cost Analysis.--Section 106 of such title (as amended
by subsection (a)(2)), is amended by striking subsection (f) and
inserting the following:
``(f) Life-Cycle Cost Analysis.--
``(1) Use of life-cycle cost analysis.--The Secretary shall
develop recommendations for the States to conduct life-cycle
cost analyses. The recommendations shall be based on the
principles contained in section 2 of Executive Order No. 12893
and shall be developed in consultation with the American
Association of State Highway and Transportation Officials. The
Secretary shall not require a State to conduct a life-cycle cost
analysis for any project as a result of the recommendations
required under this subsection.
``(2) Life-cycle cost analysis defined.--In this subsection,
the term `life-cycle cost analysis' means a process for
evaluating the total economic worth of a usable project segment
by analyzing initial costs and discounted future costs, such as
maintenance, user costs, reconstruction, rehabilitation,
restoring, and resurfacing costs, over the life of the project
segment.''.
(d) Conforming Amendment.--The analysis for chapter 1 of such title
is amended by striking the item relating to section 106 and inserting
the following:
``106. Project approval and oversight.''.
SEC. 1306. STANDARDS.
(a) Elimination of Guidelines and Annual Certification
Requirements.--Section 109 of title 23, United States Code, is amended--
(1) by striking subsection (m); and
(2) by redesignating subsections (n) through (q) as
subsections (m) through (p), respectively.
(b) Safety standards.--Section 109 of such title (as amended by
subsection (a)), is amended by adding at the end the following:
``(q) Phase Construction.--Safety considerations for a project under
this title may be met by phase construction consistent with the
operative safety management system established in accordance with
section 303 or in accordance with a statewide transportation improvement
program approved by the Secretary.''.
SEC. 1307. DESIGN-BUILD CONTRACTING.
(a) Authority.--Section 112(b) of title 23, United States Code, is
amended--
(1) in the first sentence of paragraph (1) by striking
``paragraph (2)'' and inserting ``paragraphs (2) and (3)'';
(2) in paragraph (2)(A) by striking ``Each'' and inserting
``Subject to paragraph (3), each''; and
(3) by adding at the end the following:
``(3) Design-build contracting.--
``(A) In general.--A State transportation department
or local transportation agency may award a design-build
contract for a qualified project described in
subparagraph (C) using any procurement process permitted
by applicable State and local law.
``(B) Limitation on final design.--Final design
under a design-build contract referred to in
subparagraph (A) shall not commence before compliance
with section 102 of the National Environmental Policy
Act of 1969 (42 U.S.C. 4332).
``(C) Qualified projects.--A qualified project
referred to in subparagraph (A) is a project under this
chapter for which--
``(i) the Secretary has approved the use of
design-build contracting described in subparagraph
(A) under criteria specified in regulations issued
by the Secretary; and
``(ii) the total costs are estimated to
exceed--
``(I) in the case of a project that
involves installation of an intelligent
transportation system, $5,000,000; and
``(II) in the case of any other
project, $50,000,000.
``(D) Design-build contract defined.--In this
paragraph, the term `design-build contract' means an
agreement that provides for design and construction of a
project by a contractor, regardless of whether the
agreement is in the form of a design-build contract, a
franchise agreement, or any other form of contract
approved by the Secretary.''.
(b) Inapplicability of Standardized Contract Clause Requirement.--
Section 112(e)(2) of such title is amended-- <<NOTE: 23 USC 112.>>
(1) by striking ``Paragraph'' and inserting the following:
``(A) State law.--Paragraph'';
(2) by adding at the end the following:
``(B) Design-build contracts.--Paragraph (1) shall
not apply to any design-build contract approved under
subsection (b)(3).''; and
(3) by aligning the remainder of the text of subparagraph
(A) (as designated by paragraph (1) of this subsection) with
subparagraph (B) of such section (as added by paragraph (2) of
this subsection).
(c) Regulations.-- <<NOTE: 23 USC 112 note.>>
(1) In general.--Not later than the effective date specified
in subsection (e), after consultation with the American
Association of State Highway and Transportation Officials and
representatives from affected industries, the Secretary shall
issue regulations to carry out the amendments made by this
section.
(2) Contents.--The regulations shall--
(A) identify the criteria to be used by the
Secretary in approving the use by a State transportation
department
or local transportation agency of design-build
contracting; and
(B) establish the procedures to be followed by a
State transportation department or local transportation
agency for obtaining the Secretary's approval of the use
of design-build contracting by the department or agency.
(d) <<NOTE: 23 USC 112 note.>> Effect on Experimental Program.--
Nothing in this section or the amendments made by this section affects
the authority to carry out, or any project carried out under, any
experimental program concerning design-build contracting that is being
carried out by the Secretary as of the date of enactment of this Act.
(e) Effective Date for Amendments.-- <<NOTE: 23 USC 112 note.>>
(1) In general.--The amendments made by this section take
effect 3 years after the date of enactment of this Act.
(2) Transition provision.--
(A) In general.--During the period before issuance
of the regulations under subsection (c), the Secretary
may approve, in accordance with an experimental program
described in subsection (d), design-build contracts to
be awarded using any process permitted by applicable
State and local law; except that final design under any
such contract shall not commence before compliance with
section 102 of the National Environmental Policy Act of
1969 (42 U.S.C. 4332).
(B) Previously awarded contracts.--The Secretary may
approve design-build contracts awarded before the date
of enactment of this Act.
(C) Design-build contract defined.--In this
paragraph, the term ``design-build contract'' means an
agreement that provides for design and construction of a
project by a contractor, regardless of whether the
agreement is in the form of a design-build contract, a
franchise agreement, or any other form of contract
approved by the Secretary.
(f) Report to Congress.-- <<NOTE: 23 USC 112 note.>>
(1) In general.--Not later than 5 years after the date of
enactment of this Act, the Secretary shall submit to Congress a
report on the effectiveness of design-build contracting
procedures.
(2) Contents.--The report shall contain--
(A) an assessment of the effect of design-build
contracting on project quality, project cost, and
timeliness of project delivery;
(B) recommendations on the appropriate level of
design for design-build procurements;
(C) an assessment of the impact of design-build
contracting on small businesses;
(D) assessment of the subjectivity used in design-
build contracting; and
(E) such recommendations concerning design-build
contracting procedures as the Secretary determines to be
appropriate.
SEC. 1308. MAJOR INVESTMENT STUDY INTEGRATION.
The Secretary shall eliminate the major investment study set forth
in section 450.318 of title 23, Code of Federal Regulations, as a
separate requirement, and promulgate regulations to integrate
such requirement, as appropriate, as part of the analyses required to be
undertaken pursuant to the planning provisions of title 23, United
States Code, and chapter 53 of title 49, United States Code, and the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) for
Federal-aid highway and transit projects. The scope of the applicability
of such regulations shall be no broader than the scope of such section.
SEC. 1309. ENVIRONMENTAL STREAMLINING. <<NOTE: 23 USC 109 note.>>
(a) Coordinated Environmental Review Process.--
(1) Development and implementation.--The Secretary shall
develop and implement a coordinated environmental review process
for highway construction projects that require--
(A) the preparation of an environmental impact
statement or environmental assessment under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.), except that the Secretary may decide not to apply
this section to the preparation of an environmental
assessment under such Act; or
(B) the conduct of any other environmental review,
analysis, opinion, or issuance of an environmental
permit, license, or approval by operation of Federal
law.
(2) Memorandum of understanding.--
(A) In general.--The coordinated environmental
review process for each project shall ensure that,
whenever practicable (as specified in this section), all
environmental reviews, analyses, opinions, and any
permits, licenses, or approvals that must be issued or
made by any Federal agency for the project concerned
shall be conducted concurrently and completed within a
cooperatively determined time period. Such process for a
project or class of project may be incorporated into a
memorandum of understanding between the Department of
Transportation and Federal agencies (and, where
appropriate, State agencies).
(B) Establishment of time periods.--In establishing
the time period referred to in subparagraph (A), and any
time periods for review within such period, the
Department and all such agencies shall take into account
their respective resources and statutory commitments.
(b) Elements of Coordinated Environmental Review Process.--For each
project, the coordinated environmental review process established under
this section shall provide, at a minimum, for the following elements:
(1) Federal agency identification.--The Secretary shall, at
the earliest possible time, identify all potential Federal
agencies that--
(A) have jurisdiction by law over environmental-
related issues that may be affected by the project and
the analysis of which would be part of any environmental
document required by the National Environmental Policy
Act of 1969 (42 U.S.C. 4321 et seq.); or
(B) may be required by Federal law to
independently--
(i) conduct an environmental-related review or
analysis; or
(ii) determine whether to issue a permit,
license, or approval or render an opinion on the
environmental impact of the project.
(2) Time limitations and concurrent review.--The Secretary
and the head of each Federal agency identified under paragraph
(1)--
(A)(i) shall jointly develop and establish time
periods for review for--
(I) all Federal agency comments with respect
to any environmental review documents required by
the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.) for the project; and
(II) all other independent Federal agency
environmental analyses, reviews, opinions, and
decisions on any permits, licenses, and approvals
that must be issued or made for the project;
whereby each such Federal agency's review shall be
undertaken and completed within such established time
periods for review; or
(ii) may enter into an agreement to establish such
time periods for review with respect to a class of
project; and
(B) shall ensure, in establishing such time periods
for review, that the conduct of any such analysis,
review, opinion, and decision is undertaken concurrently
with all other environmental reviews for the project,
including the reviews required by the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.); except that such review may not be concurrent if
the affected Federal agency can demonstrate that such
concurrent review would result in a significant adverse
impact to the environment or substantively alter the
operation of Federal law or would not be possible
without information developed as part of the
environmental review process.
(3) Factors to be considered.--Time periods for review
established under this section shall be consistent with the time
periods established by the Council on Environmental Quality
under sections 1501.8 and 1506.10 of title 40, Code of Federal
Regulations.
(4) Extensions.--The Secretary shall extend any time periods
for review under this section if, upon good cause shown, the
Secretary and any Federal agency concerned determine that
additional time for analysis and review is needed as a result of
new information that has been discovered that could not
reasonably have been anticipated when the Federal agency's time
periods for review were established. Any memorandum of
understanding shall be modified to incorporate any mutually
agreed-upon extensions.
(c) Dispute Resolution.--When the Secretary determines that a
Federal agency which is subject to a time period for its environmental
review or analysis under this section has failed to complete such
review, analysis, opinion, or decision on issuing any permit, license,
or approval within the established time period or within any agreed-upon
extension to such time period, the Secretary may, after notice and
consultation with such agency, close the record on the matter before the
Secretary. If the Secretary finds, after timely compliance with this
section, that an environmental issue related to the project that an
affected Federal agency has jurisdiction over by operation of Federal
law has not been resolved, the Secretary and the head of the Federal
agency shall resolve the
matter not later than 30 days after the date of the finding by the
Secretary.
(d) Participation of State Agencies.--For any project eligible for
assistance under chapter 1 of title 23, United States Code, a State, by
operation of State law, may require that all State agencies that have
jurisdiction by State or Federal law over environmental-related issues
that may be affected by the project, or that are required to issue any
environmental-related reviews, analyses, opinions, or determinations on
issuing any permits, licenses, or approvals for the project, be subject
to the coordinated environmental review process established under this
section unless the Secretary determines that a State's participation
would not be in the public interest. For a State to require State
agencies to participate in the review process, all affected agencies of
the State shall be subject to the review process.
(e) Assistance to Affected Federal Agencies.--
(1) In general.--The Secretary may approve a request by a
State to provide funds made available under chapter 1 of title
23, United States Code, to the State for the project subject to
the coordinated environmental review process established under
this section to affected Federal agencies to provide the
resources necessary to meet any time limits established under
this section.
(2) Amounts.--Such requests under paragraph (1) shall be
approved only--
(A) for the additional amounts that the Secretary
determines are necessary for the affected Federal
agencies to meet the time limits for environmental
review; and
(B) if such time limits are less than the customary
time necessary for such review.
(f) Judicial Review and Savings Clause.--
(1) Judicial review.--Nothing in this section shall affect
the reviewability of any final Federal agency action in a
district court of the United States or in the court of any
State.
(2) Savings clause.--Nothing in this section shall affect
the applicability of the National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.) or any other Federal environmental
statute or affect the responsibility of any Federal officer to
comply with or enforce any such statute.
(g) Federal Agency Defined.--In this section, the term ``Federal
agency'' means any Federal agency or any State agency carrying out
affected responsibilities required by operation of Federal law.
SEC. 1310. UNIFORM TRANSFERABILITY OF FEDERAL-AID HIGHWAY FUNDS.
(a) In General.--Chapter 1 of title 23, United States Code, is
amended by inserting after section 109 the following:
``Sec. 110. Uniform transferability of Federal-aid highway funds
``(a) General Rule.--Notwithstanding any other provision of law but
subject to subsections (b) and (c), if at least 50 percent of a State's
apportionment under section 104 or 144 for a fiscal year or at least 50
percent of the funds set-aside under section 133(d) from the State's
apportionment section 104(b)(3) may not be transferred to any other
apportionment of the State under section 104 or 144 for such fiscal
year, then the State may transfer not to exceed 50 percent of such
apportionment or set aside to any
other apportionment of such State under section 104 or 144 for such
fiscal year.
``(b) Application to Certain Set-Asides.--No funds may be
transferred under this section that are subject to the last sentence of
section 133(d)(1) or to section 104(f) or to section 133(d)(3). The
maximum amount that a State may transfer under this section of the
State's set-aside under section 133(d)(1) or 133(d)(2) for a fiscal year
may not exceed 25 percent of (1) the amount of such set-aside, less (2)
the amount of the State's set-aside under such section for fiscal year
1997.
``(c) Application to Certain CMAQ Funds.--The maximum amount that a
State may transfer under this section of the State's apportionment under
section 104(b)(2) for a fiscal year may not exceed 50 percent of (1) the
amount of such apportionment, less (2) the amount that the State's
apportionment under section 104(b)(2) for such fiscal year would have
been had the program been funded at $1,350,000,000. Any such funds
apportioned under section 104(b)(2) and transferred under this section
may only be obligated in geographic areas eligible for the obligation of
funds apportioned under section 104(b)(2).''.
(b) Conforming Amendment.--The analysis for chapter 1 of such title
is amended by inserting after the item relating to section 109 the
following:
``110. Uniform transferability of Federal-aid highway funds.''.