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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.''.  

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United States Department of Transportation - Federal Highway Administration