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[DOCID: f:hr550.105]
From the House Reports Online via GPO Access
[wais.access.gpo.gov]

105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     105-550
_______________________________________________________________________


              TRANSPORTATION EQUITY ACT FOR THE 21ST CENTURY

                               ----------

                           CONFERENCE REPORT

                              to accompany

                               H.R. 2400



                  May 22, 1998.--Ordered to be printed

             TRANSPORTATION EQUITY ACT FOR THE 21ST CENTURY

105th Congress                                                   Report
                      HOUSE OF REPRESENTATIVES

 2d Session                                                     105-550
_______________________________________________________________________

                       TRANSPORTATION EQUITY ACT

                         FOR THE 21ST CENTURY

                               ----------

                           CONFERENCE REPORT

                              to accompany

                               H.R. 2400



                  May 22, 1998.--Ordered to be printed

105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     105-550
_______________________________________________________________________

             TRANSPORTATION EQUITY ACT FOR THE 21ST CENTURY

                                _______


                  May 22, 1998.--Ordered to be printed

_______________________________________________________________________

 Mr. Shuster, from the committee of conference, submitted the following

                           CONFERENCE REPORT

                        [To accompany H.R. 2400]

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the
``Transportation Equity Act for the 21st Century''.
    (b) Table of Contents.--The table of contents of this Act
is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.

                      TITLE I--FEDERAL-AID HIGHWAYS

                 Subtitle A--Authorizations and Programs

Sec. 1101. Authorization of appropriations.
Sec. 1102. Obligation ceiling.
Sec. 1103. Apportionments.
Sec. 1104. Minimum guarantee.
Sec. 1105. Revenue aligned budget authority.
Sec. 1106. Federal-aid systems.
Sec. 1107. Interstate maintenance program.
Sec. 1108. Surface transportation program.
Sec. 1109. Highway bridge program.
Sec. 1110. Congestion mitigation and air quality improvement program.
Sec. 1111. Federal share.
Sec. 1112. Recreational trails program.
Sec. 1113. Emergency relief.
Sec. 1114. Highway use tax evasion projects.
Sec. 1115. Federal lands highways program.
Sec. 1116. Woodrow Wilson Memorial Bridge.
Sec. 1117. Appalachian development highway system.
Sec. 1118. National corridor planning and development program.
Sec. 1119. Coordinated border infrastructure and safety program.

                     Subtitle B--General Provisions

Sec. 1201. Definitions.
Sec. 1202. Bicycle transportation and pedestrian walkways.
Sec. 1203. Metropolitan planning.
Sec. 1204. Statewide planning.
Sec. 1205. Contracting for engineering and design services.
Sec. 1206. Access of motorcycles.
Sec. 1207. Construction of ferry boats and ferry terminal facilities.
Sec. 1208. Training.
Sec. 1209. Use of HOV lanes by inherently low-emission vehicles.
Sec. 1210. Advanced travel forecasting procedures program.
Sec. 1211. Amendments to prior surface transportation laws.
Sec. 1212. Miscellaneous.
Sec. 1213. Studies and reports.
Sec. 1214. Federal activities.
Sec. 1215. Designated transportation enhancement activities.
Sec. 1216. Innovative surface transportation financing methods.
Sec. 1217. Eligibility.
Sec. 1218. Magnetic levitation transportation technology deployment
          program.
Sec. 1219. National scenic byways program.
Sec. 1220. Elimination of regional office responsibilities.
Sec. 1221. Transportation and community and system preservation pilot
          program.
Sec. 1222. Additions to Appalachian region.

            Subtitle C--Program Streamlining and Flexibility

Sec. 1301. Real property acquisition and corridor preservation.
Sec. 1302. Payments to States for construction.
Sec. 1303. Proceeds from the sale or lease of real property.
Sec. 1304. Engineering cost reimbursement.
Sec. 1305. Project approval and oversight.
Sec. 1306. Standards.
Sec. 1307. Design-build contracting.
Sec. 1308. Major investment study integration.
Sec. 1309. Environmental streamlining.
Sec. 1310. Uniform transferability of Federal-aid highway funds.

                           Subtitle D--Safety

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

                           Subtitle E--Finance

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

                   Subtitle F--High Priority Projects

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

                        TITLE II--HIGHWAY SAFETY

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

           TITLE III--FEDERAL TRANSIT ADMINISTRATION PROGRAMS

Sec. 3001. Short title.
Sec. 3002. Amendments to title 49, United States Code.
Sec. 3003. Definitions.
Sec. 3004. Metropolitan planning.
Sec. 3005. Transportation improvement program.
Sec. 3006. Transportation management areas.
Sec. 3007. Urbanized area formula grants.
Sec. 3008. Clean fuels formula grant program.
Sec. 3009. Capital investment grants and loans.
Sec. 3010. Dollar value of mobility improvements.
Sec. 3011. Local share.
Sec. 3012. Inteligent transportation systems applications.
Sec. 3013. Formula grants and loans for special needs of elderly
          individuals and individuals with disabilities.
Sec. 3014. Formula program for other than urbanized areas.
Sec. 3015. Research, development, demonstration, and training projects.
Sec. 3016. National planning and research programs.
Sec. 3017. National transit institute.
Sec. 3018. Bus testing facilities.
Sec. 3019. Bicycle facilities.
Sec. 3020. General provisions on assistance.
Sec. 3021. Pilot program for intercity rail infrastructure investment
          from mass transit account of highway trust fund.
Sec. 3022. Contract requirements.
Sec. 3023. Special procurements.
Sec. 3024. Project management oversight and review.
Sec. 3025. Administrative procedures.
Sec. 3026. Reports and audits.
Sec. 3027. Apportionment of appropriations for formula grants.
Sec. 3028. Apportionment of appropriations for fixed guideway
          modernization.
Sec. 3029. Authorizations.
Sec. 3030. Projects for new fixed guideway systems and extensions in
          existing systems.
Sec. 3031. Projects for bus and bus-related facilities.
Sec. 3032. Contracting out study.
Sec. 3033. Urbanized area formula study.
Sec. 3034. Coordinated transportation services.
Sec. 3035. Final assembly of buses.
Sec. 3036. Clean fuel vehicles.
Sec. 3037. Job access and reverse commute grants.
Sec. 3038. Rural transportation accessibility incentive program.
Sec. 3039. Study of transit needs in national parks and related public
          lands.
Sec. 3040. Obligation ceiling.
Sec. 3041. Adjustment for the Surface Transportation Extension Act of
          1997.

                     TITLE IV--MOTOR CARRIER SAFETY

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

                    TITLE V--TRANSPORTATION RESEARCH

                           Subtitle A--Funding

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

                   Subtitle B--Research and Technology

Sec. 5101. Research and technology program.
Sec. 5102. Surface transportation research.
Sec. 5103. Technology deployment.
Sec. 5104. Training and education.
Sec. 5105. State planning and research.
Sec. 5106. International highway transportation outreach program.
Sec. 5107. Surface transportation-environment cooperative research
          program.
Sec. 5108. Surface transportation research strategic planning.
Sec. 5109. Bureau of Transportation Statistics.
Sec. 5110. University transportation research.
Sec. 5111. Advanced vehicle technologies program.
Sec. 5112. Study of future strategic highway research program.
Sec. 5113. Commercial remote sensing products and spatial information
          technologies.
Sec. 5114. Sense of Congress on the year 2000 problem.
Sec. 5115. International trade traffic.
Sec. 5116. University grants.
Sec. 5117. Transportation technology innovation and demonstration
          program.
Sec. 5118. Drexel University Intelligent Infrastructure Institute.
Sec. 5119. Conforming amendments.

             Subtitle C--Intelligent Transportation Systems

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

            TITLE VI--OZONE AND PARTICULATE MATTER STANDARDS

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

                        TITLE VII--MISCELLANEOUS

              Subtitle A--Automobile Safety and Information

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

                          Subtitle B--Railroads

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

             Subtitle C--Comprehensive One-Call Notification

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

               Subtitle D--Sportfishing and Boating Safety

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

 TITLE VIII--TRANSPORTATION DISCRETIONARY SPENDING GUARANTEE AND BUDGET
                                 OFFSETS

       Subtitle A--Transportation Discretionary Spending Guarantee

Sec. 8101. Discretionary spending categories.
Sec. 8102. Conforming the Paygo Scorecard with this Act.
Sec. 8103. Level of obligation limitations.

                     Subtitle B--Veterans' Benefits

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

              Subtitle C--Temporary Student Loan Provision.

Sec. 8301. Temporary student loan provision.

              Subtitle D--Block Grants for Social Services

Sec. 8401. Block grants for social services.

          TITLE IX--AMENDMENTS OF INTERNAL REVENUE CODE OF 1986

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

SEC. 2. DEFINITIONS.

    In this Act, the following definitions apply:
            (1) Interstate system.--The term ``Interstate
        System'' has the meaning such term has under section
        101 of title 23, United States Code.
            (2) Secretary.--The term ``Secretary'' means the
        Secretary of Transportation.

                     TITLE I--FEDERAL-AID HIGHWAYS

                Subtitle A--Authorizations and Programs

SEC. 1101. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--The following sums are authorized to be
appropriated out of the Highway Trust Fund (other than the Mass
Transit Account):
            (1) Interstate maintenance program.--For the
        Interstate maintenance program under section 119 of
        title 23, United States Code, $3,427,341,000 for fiscal
        year 1998, $3,957,103,000 for fiscal year 1999,
        $3,994,524,000 for fiscal year 2000, $4,073,322,000 for
        fiscal year 2001, $4,139,630,000 for fiscal year 2002,
        and $4,217,635,000 for fiscal year 2003.
            (2) National highway system.--For the National
        Highway System under section 103 of such title
        $4,112,480,000 for fiscal year 1998, $4,748,523,000 for
        fiscal year 1999, $4,793,429,000 for fiscal year 2000,
        $4,887,986,000 for fiscal year 2001, $4,967,556,000 for
        fiscal year 2002, and $5,061,162,000 for fiscal year
        2003.
            (3) Bridge program.--For the bridge program under
        section 144 of such title $2,941,454,000 for fiscal
        year 1998, $3,395,354,000 for fiscal year 1999,
        $3,427,472,000 for fiscal year 2000, $3,495,104,000 for
        fiscal year 2001, $3,552,016,000 for fiscal year 2002,
        and $3,618,966,000 for fiscal year 2003.
            (4) Surface transportation program.--For the
        surface transportation program under section 133 of
        such title $4,797,620,000 for fiscal year 1998,
        $5,539,944,000 for fiscal year 1999, $5,592,333,000 for
        fiscal year 2000, $5,702,651,000 for fiscal year 2001,
        $5,795,482,000 for fiscal year 2002, and $5,904,689,000
        for fiscal year 2003.
            (5) Congestion mitigation and air quality
        improvement program.--For the congestion mitigation and
        air quality improvement program under section 149 of
        such title $1,192,619,000 for fiscal year 1998,
        $1,345,415,000 for fiscal year 1999, $1,358,138,000 for
        fiscal year 2000, $1,384,930,000 for fiscal year 2001,
        $1,407,474,000 for fiscal year 2002, and $1,433,996,000
        for fiscal year 2003.
            (6) Appalachian development highway system
        program.--For the Appalachian development highway
        system program under section 201 of the Appalachian
        Regional Development Act of 1965 (40 U.S.C. App.)
        $450,000,000 for each of fiscal years 1999 through
        2003.
            (7) Recreational trails program.--For the
        recreational trails program under section 206 of such
        title $30,000,000 for fiscal year 1998, $40,000,000 for
        fiscal year 1999, and $50,000,000 for each of fiscal
        years 2000 through 2003.
            (8) Federal lands highways program.--
                    (A) Indian reservation roads.--For Indian
                reservation roads under section 204 of such
                title $225,000,000 for fiscal year 1998 and
                $275,000,000 for each of fiscal years 1999
                through 2003.
                    (B) Public lands highways.--For public
                lands highways under section 204 of such title
                $196,000,000 for fiscal year 1998 and
                $246,000,000 for each of fiscal years 1999
                through 2003.
                    (C) Park roads and parkways.--For park
                roads and parkways under section 204 of such
                title $115,000,000 for fiscal year 1998 and
                $165,000,000 for each of fiscal years 1999
                through 2003.
                    (D) Refuge roads.--For refuge roads under
                section 204 of such title $20,000,000 for each
                of fiscal years 1999 through 2003.
            (9) National corridor planning and development and
        coordinated border infrastructure programs.--For the
        national corridor planning and development and
        coordinated border infrastructure programs under
        sections 1118 and 1119 of this Act $140,000,000 for
        each of fiscal years 1999 through 2003.
            (10) Construction of ferry boats and ferry terminal
        facilities.--For construction of ferry boats and ferry
        terminal facilities under section 1064 of the
        Intermodal Surface Transportation Efficiency Act of
        1991 (23 U.S.C. 129 note; 105 Stat. 2005) $30,000,000
        for each of fiscal year 1998 and $38,000,000 for each
        of fiscal years 1999 through 2003.
            (11) National scenic byways program.--For the
        national scenic byways program under section 162 of
        title 23, United States Code, $23,500,000 for each of
        fiscal years 1998 and 1999, $24,500,000 for each of
        fiscal years 2000 and 2001,and $25,500,000 for fiscal
year 2002, and $26,500,000 for fiscal year 2003.
            (12) Value pricing pilot program.--For the value
        pricing pilot program under section 1012(b) of the
        Intermodal Surface Transportation Efficiency Act of
        1991 (23 U.S.C. 149 note; 105 Stat. 1938) $7,000,000
        for fiscal year 1999, and $11,000,000 for each of
        fiscal years 2000 through 2003.
            (13) High priority projects program.--For the high
        priority projects program under section 117 of title
        23, United States Code, $1,025,695,000 for fiscal year
        1998, $1,398,675,000 for fiscal year 1999,
        $1,678,410,000 for fiscal year 2000, $1,678,410,000 for
        fiscal year 2001, $1,771,655,000 for fiscal year 2002,
        and $1,771,655,000 for fiscal year 2003.
            (14) Highway use tax evasion projects.--For highway
        use tax evasion projects under section 143 of such
        title $5,000,000 for each of fiscal years 1998 through
        2003.
            (15) Commonwealth of puerto rico highway program.--
        For the Commonwealth of Puerto Rico highway program
        under section 1214(r) of this Act $110,000,000 for
        fiscal years 1998 through 2003.
    (b) Disadvantaged Business Enterprises.--
            (1) General rule.--Except to the extent that the
        Secretary determines otherwise, not less than 10
        percent of the amounts made available for any program
        under titles I, III, and V of this Act shall be
        expended with small business concerns owned and
        controlled by socially and economically disadvantaged
        individuals.
            (2) Definitions.--In this subsection, the following
        definitions apply:
                    (A) Small business concern.--The term
                ``small business concern'' has the meaning such
                term has under section 3 of the Small Business
                Act (15 U.S.C. 632); except that such term
                shall not include any concern or group of
                concerns controlled by the same socially and
                economically disadvantaged individual or
                individuals which has average annual gross
                receipts over the preceding 3 fiscal years in
                excess of $16,600,000, as adjusted by the
                Secretary for inflation.
                    (B) Socially and economically disadvantaged
                individuals.--The term ``socially and
                economically disadvantaged individuals'' has
                the meaning such term has under section 8(d) of
                the Small Business Act (15 U.S.C. 637(d)) and
                relevant subcontracting regulations promulgated
                pursuant thereto; except that women shall be
                presumed to be socially and economically
                disadvantaged individuals for purposes of this
                subsection.
            (3) Annual listing of disadvantaged business
        enterprises.--Each State shall annually survey and
        compile a list of the small business concerns referred
        to in paragraph (1) and the location of such concerns
        in the State and notify the Secretary, in writing, of
        the percentage of such concerns which are controlled by
        women, by socially and economically disadvantaged
        individuals (other than women), and by individuals who
        are women and are otherwise socially and economically
        disadvantaged individuals.
            (4) Uniform certification.--The Secretary shall
        establish minimum uniform criteria for State
        governments to use in certifying whether a concern
        qualifies for purposes of this subsection. Such minimum
        uniform criteria shall include but not be limited to
        on-site visits, personal interviews, licenses, analysis
        of stock ownership, listing of equipment,analysis of
bonding capacity, listing of work completed, resume of principal
owners, financial capacity, and type of work preferred.
            (5) Compliance with court orders.--Nothing in this
        subsection limits the eligibility of an entity or
        person to receive funds made available under titles I,
        III, and V of this Act, if the entity or person is
        prevented, in whole or in part, from complying with
        paragraph (1) because a Federal court issues a final
        order in which the court finds that the requirement of
        paragraph (1), or the program established under
        paragraph (1), is unconstitutional.
            (6) Review by comptroller general.--Not later than
        3 years after the date of enactment of this Act, the
        Comptroller General of the United States shall conduct
        a review of, and publish and report to Congress
        findings and conclusions on, the impact throughout the
        United States of administering the requirement of
        paragraph (1), including an analysis of--
                    (A) in the case of small business concerns
                certified in each State under paragraph (4) as
                owned and controlled by socially and
                economically disadvantaged individuals--
                            (i) the number of the small
                        business concerns; and
                            (ii) the participation rates of the
                        small business concerns in prime
                        contracts and subcontracts funded under
                        titles I, III, and V of this Act;
                    (B) in the case of small business concerns
                described in subparagraph (A) that receive
                prime contracts and subcontracts funded under
                titles I, III, and V of this Act--
                            (i) the number of the small
                        business concerns;
                            (ii) the annual gross receipts of
                        the small business concerns; and
                            (iii) the net worth of socially and
                        economically disadvantaged individuals
                        that own and control the small business
                        concerns;
                    (C) in the case of small business concerns
                described in subparagraph (A) that do not
                receive prime contracts and subcontracts funded
                under titles I, III, and V of this Act--
                            (i) the annual gross receipts of
                        the small business concerns; and
                            (ii) the net worth of socially and
                        economically disadvantaged individuals
                        that own and control the small business
                        concerns;
                    (D) in the case of business concerns that
                receive prime contracts and subcontracts funded
                under titles I, III, and V of this Act, other
                than small business concerns described in
                subparagraph (B)--
                            (i) the annual gross receipts of
                        the business concerns; and
                            (ii) the net worth of individuals
                        that own and control the business
                        concerns;
                    (E) the rate of graduation from any
                programs carried out to comply with the
                requirement of paragraph (1) for small business
                concerns owned and controlled by socially and
                economically disadvantaged individuals;
                    (F) the overall cost of administering the
                requirement of paragraph (1), including
                administrative costs, certification costs,
                additional construction costs, and litigation
                costs;
                    (G) any discrimination on the basis of
                race, color, national origin, or sex against
                small business concerns owned and controlled by
                socially and economically disadvantaged
                individuals;
                    (H)(i) any other factors limiting the
                ability of small business concerns owned and
                controlled by socially and economically
                disadvantaged individuals to compete for prime
                contracts and subcontracts funded under titles
                I, III, and V of this Act; and
                    (ii) the extent to which any of those
                factors are caused, in whole or in part, by
                discrimination based on race, color, national
                origin, or sex;
                    (I) any discrimination, on the basis of
                race, color, national origin, or sex, against
                construction companies owned and controlled by
                socially and economically disadvantaged
                individuals in public and private
                transportation contracting and the financial,
                credit, insurance, and bond markets;
                    (J) the impact on small business concerns
                owned and controlled by socially and
                economically disadvantaged individuals of--
                            (i) the issuance of a final order
                        described in paragraph (5) by a
Federalcourt that suspends a program established under paragraph (1);
or
                            (ii) the repeal or suspension of
                        State or local disadvantaged business
                        enterprise programs; and
                    (K) the impact of the requirement of
                paragraph (1), and any program carried out to
                comply with paragraph (1), on competition and
                the creation of jobs, including the creation of
                jobs for socially and economically
                disadvantaged individuals.

SEC. 1102. OBLIGATION CEILING.

    (a) General Limitation.--Notwithstanding any other
provision of law but subject to subsections (g) and (h), the
obligations for Federal-aid highway and highway safety
construction programs shall not exceed--
            (1) $21,500,000,000 for fiscal year 1998;
            (2) $25,431,000,000 for fiscal year 1999;
            (3) $26,155,000,000 for fiscal year 2000;
            (4) $26,651,000,000 for fiscal year 2001;
            (5) $27,235,000,000 for fiscal year 2002; and
            (6) $27,681,000,000 for fiscal year 2003.
    (b) Exceptions.--The limitations under subsection (a) shall
not apply to obligations--
            (1) under section 125 of title 23, United States
        Code;
            (2) under section 147 of the Surface Transportation
        Assistance Act of 1978;
            (3) under section 9 of the Federal-Aid Highway Act
        of 1981;
            (4) under sections 131(b) and 131(j) of the Surface
        Transportation Assistance Act of 1982;
            (5) under sections 149(b) and 149(c) of the Surface
        Transportation and Uniform Relocation Assistance Act of
        1987;
            (6) under sections 1103 through 1108 of the
        Intermodal Surface Transportation Efficiency Act of
        1991;
            (7) under section 157 of title 23, United States
        Code, as in effect on the day before the date of
        enactment of this Act; and
            (8) under section 105 of title 23, United States
        Code but, for each of fiscal years 1998 through 2007,
        only in an amount equal to $639,000,000 per fiscal
        year.
    (c) Distribution of Obligation Authority.--For each of
fiscal years 1998 through 2003, the Secretary shall--
            (1) not distribute obligation authority provided by
        subsection (a) for such fiscal year for amounts
        authorized for administrative expenses and programs
        funded from the administrative takedown authorized by
        section 104(a) of title 23, United States Code, and
        amounts authorized for the highway use tax evasion
        program and the Bureau of Transportation Statistics;
            (2) not distribute an amount of obligation
        authority provided by subsection (a) that is equal to
        the unobligated balance of amounts made available from
        the Highway Trust Fund (other than the Mass Transit
        Account) for Federal-aid highway and highway safety
        programs for previous fiscal years the funds for which
        are allocated by the Secretary;
            (3) determine the ratio that--
                    (A) the obligation authority provided by
                subsection (a) for such fiscal year less the
                aggregate of amounts not distributed under
                paragraphs (1) and (2), bears to
                    (B) the total of the sums authorized to be
                appropriated for Federal-aid highway and
                highway safety construction programs (other
                than sums authorized to be appropriated for
                sections set forth in paragraphs (1) through
                (7) of subsection (b) and sums authorized to be
                appropriated for section 105 of title 23,
                United States Code, equal to the amount
                referred to in subsection (b)(8)) for such
                fiscal year less the aggregate of the amounts
                not distributed under paragraph (1) of this
                subsection;
            (4) distribute the obligation authority provided by
        subsection (a) less the aggregate amounts not
        distributed under paragraphs (1) and (2) for section
        117 of title 23, United States Code (relating to high
        priority projects program), section 201 of the
        Appalachian Regional Development Act of 1965, the
        Woodrow Wilson Memorial Bridge Authority Act of 1995,
        and $2,000,000,000 for such fiscal year under section
        105 of such title (relating to minimum guarantee) so
        that amount of obligation authority available for each
        of such sections is equal to the amount determined by
        multiplying the ratio determined under paragraph (3) by
        the sums authorized to be appropriated for such section
        (except in the case of section 105, $2,000,000,000) for
        such fiscal year;
            (5) distribute the obligation authority provided by
        subsection (a) less the aggregate amounts not
        distributed under paragraphs (1) and (2) and amounts
        distributed under paragraph (4) for each ofthe 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 Secretaryshall 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, theInterstate and National
Highway System program under section 103, the minimum guarantee program
under section 105, the Federal lands highway program under section 204,
or the Appalachian development highway system program under section 201
of the Appalachian Regional Development Act of 1965 (40 U.S.C. App.),
the Secretary shall deduct a sum, in an amount not to exceed 1\1/2\
percent of all sums so made available, as the Secretary determines
necessary--
                    ``(A) to administer the provisions of law
                to be financed from appropriations for the
                Federal-aid highway program and programs
                authorized under chapter 2; and
                    ``(B) to make transfers of such sums as the
                Secretary determines to be appropriate to the
                Appalachian Regional Commission for
                administrative activities associated with the
                Appalachian development highway system.
            ``(2) Consideration of unobligated balances.--In
        making the determination described in paragraph (1),
        the Secretary shall take into account the unobligated
        balance of any sums deducted under this subsection in
        prior fiscal years.
            ``(3) Availability.--The sum deducted under
        paragraph (1) shall remain available until expended.''.
    (b) Apportionments.--Section 104(b) of such title is
amended to read as follows:
    ``(b) Apportionments.--On October 1 of each fiscal year,
the Secretary, after making the deduction authorized by
subsection (a) and the set-aside authorized by subsection (f),
shall apportion the remainder of the sums authorized to be
appropriated for expenditure on the Interstate and National
Highway System program, the congestion mitigation and air
quality improvement program, and the surface transportation
program for that fiscal year, among the several States in the
following manner:
            ``(1) National highway system component.--
                    ``(A) In general.--For the National Highway
                System (excluding funds apportioned under
                paragraph (4)), $36,400,000 for each fiscal
                year to the Virgin Islands, Guam, American
                Samoa, and the Commonwealth of Northern Mariana
                Islands, $18,800,000 for each of fiscal years
                1999 through 2003 for the Alaska Highway, and
                the remainder apportioned as follows:
                            ``(i) 25 percent in the ratio
                        that--
                                    ``(I) the total lane miles
                                of principal arterial routes
                                (excluding Interstate System
                                routes) in each State; bears to
                                    ``(II) the total lane miles
                                of principal arterial routes
                                (excluding Interstate System
                                routes) in all States.
                            ``(ii) 35 percent in the ratio
                        that--
                                    ``(I) the total vehicle
                                miles traveled on lanes on
                                principal arterial routes
                                (excluding Interstate System
                                routes) in each State; bears to
                                    ``(II) the total vehicle
                                miles traveled on lanes on
                                principal arterial routes
                                (excluding Interstate System
                                routes) in all States.
                            ``(iii) 30 percent in the ratio
                        that--
                                    ``(I) the total diesel fuel
                                used on highways in each State;
                                bears to
                                    ``(II) the total diesel
                                fuel used on highways in all
                                States.
                            ``(iv) 10 percent in the ratio
                        that--
                                    ``(I) the quotient obtained
                                by dividing the total lane
                                miles on principal arterial
                                highways in each State by the
                                total population of the State;
                                bears to
                                    ``(II) the quotient
                                obtained by dividing the total
                                lane miles on principal
                                arterial highways in all States
                                by the total population of all
                                States.
                    ``(B) Minimum apportionment.--
                Notwithstanding subparagraph (A) and paragraph
                (4), each State shall receive a minimum of \1/
                2\ of 1 percent of the funds apportioned under
                subparagraph (A) and paragraph (4).
            ``(2) Congestion mitigation and air quality
        improvement program.--
                    ``(A) In general.--For the congestion
                mitigation and air quality improvement program,
                in the ratio that--
                            ``(i) the total of all weighted
                        nonattainment and maintenance area
                        populations in each State; bears to
                            ``(ii) the total of all weighted
                        nonattainment and maintenance area
                        populations in all States.
                    ``(B) Calculation of weighted nonattainment
                and maintenance area population.--Subject to
                subparagraph (C), for thepurpose 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 is amended--
            (1) in paragraph (1) by striking ``The'' and all
        that follows through ``$300,000 for each'' and
        inserting ``Before making an apportionment under
        subsection (b)(3) of this section for a fiscal year,
        the Secretary shall set aside $500,000 for such''; and
            (2) by striking paragraphs (2) and (3) and
        inserting the following:
            ``(2) Railway-highway crossing hazard elimination
        in high speed rail corridors.--
                    ``(A) In general.--Before making an
                apportionment of funds under subsection
(b)(3)for a fiscal year, the Secretary shall set aside $5,250,000 of
the funds made available for the surface transportation program for the
fiscal year for elimination of hazards of railway-highway crossings.
                    ``(B) Eligible corridors.--Subject to
                subparagraph (E), funds made available under
                subparagraph (A) shall be expended for projects
                in--
                            ``(i) 5 railway corridors selected
                        by the Secretary in accordance with
                        this subsection (as in effect on the
                        day before the date of enactment of
                        this clause);
                            ``(ii) 3 railway corridors selected
                        by the Secretary in accordance with
                        subparagraphs (C) and (D);
                            ``(iii) a Gulf Coast high speed
                        railway corridor (as designated by the
                        Secretary);
                            ``(iv) a Keystone high speed
                        railway corridor from Philadelphia to
                        Harrisburg, Pennsylvania; and
                            ``(v) an Empire State railway
                        corridor from New York City to Albany
                        to Buffalo, New York.
                    ``(C) Required inclusion of high speed rail
                lines.--A corridor selected by the Secretary
                under subparagraph (B) shall include rail lines
                where railroad speeds of 90 miles or more per
                hour are occurring or can reasonably be
                expected to occur in the future.
                    ``(D) Considerations in corridor
                selection.--In selecting corridors under
                subparagraph (B), the Secretary shall
                consider--
                          ``(i) projected rail ridership volume
                        in each corridor;
                          ``(ii) the percentage of each
                        corridor over which a train will be
                        capable of operating at its maximum
                        cruise speed taking into account such
                        factors as topography and other traffic
                        on the line;
                          ``(iii) projected benefits to
                        nonriders such as congestion relief on
                        other modes of transportation serving
                        each corridor (including congestion in
                        heavily traveled air passenger
                        corridors);
                          ``(iv) the amount of State and local
                        financial support that can reasonably
                        be anticipated for the improvement of
                        the line and related facilities; and
                          ``(v) the cooperation of the owner of
                        the right-of-way that can reasonably be
                        expected in the operation of high speed
                        rail passenger service in each
                        corridor.
                  ``(E) Certain improvements.--Not less than
                $250,000 of such set-aside shall be available
                per fiscal year for eligible improvements to
                the Minneapolis/St. Paul-Chicago segment of the
                Midwest High Speed Rail Corridor.
                  ``(F) Authorization of appropriations.--There
                is authorized to be appropriated $15,000,000
                for each of fiscal years 1999 through 2003 to
                carry out this subsection.''.
    (d) Certification of Apportionments.--Section 104(e) of
such title is amended--
            (1) by inserting ``Certification of
        Apportionments.--'' after ``(e)'';
            (2) by inserting ``(1) In general.--'' before ``On
        October 1'';
            (3) by striking the first parenthetical phrase;
            (4) by striking ``and research'' the first place it
        appears;
            (5) by striking the second sentence;
            (6) by adding at the end the following:
            ``(2) Notice to states.--If the Secretary has not
        made an apportionment under section 104, 144, or 157 by
        the 21st day of a fiscal year beginning after September
        30, 1998, the Secretary shall transmit, by such 21st
        day, to the Committee on Transportation and
        Infrastructure of the House of Representatives and the
        Committee on Environment and Public Works of the Senate
        a written statement of the reason for not making such
        apportionment in a timely manner.''; and
            (7) by indenting paragraph (1) (as designated by
        paragraph (2) of this subsection) and aligning such
        paragraph (1) with paragraph (2) of such section (as
        added by paragraph (6) of this subsection).
    (e) Metropolitan Planning Set-Aside.--Section 104(f) of
such title is amended--
            (1) in paragraph (1) by striking ``Interstate
        construction and Interstate substitute programs'' and
        inserting ``recreational trails program''; and
            (2) in paragraph (3) by striking ``120(j) of this
        title'' and inserting ``120(b)''.
    (f) Recreational Trails Program.--Section 104(h) of such
title is amended to read as follows:
    ``(h) Recreational Trails Program.--
            ``(1) Administrative costs.--Whenever an
        apportionment is made of the sums authorized to be
        appropriated to carry out the recreational trails
        program under section 206, the Secretary shall deduct
        an amount, not to exceed 1\1/2\ percent of the sums
        authorized, to cover the cost to the Secretary for
        administration of and research and technical assistance
        under the recreational trails program and for
        administration of the National Recreational Trails
        Advisory Committee. The Secretary may enter into
        contracts with for-profit organizations or contracts,
        partnerships, or cooperative agreements with other
        government agencies, institutions of higher learning,
        or nonprofit organizations to perform these tasks.
            ``(2) Apportionment to the states.--After making
        the deduction authorized by paragraph (1) of this
        subsection, the Secretary shall apportion the remainder
        of the sums authorized to be appropriated for
        expenditure on the recreational trails program for each
        fiscal year, among the States in the following manner:
                    ``(A) 50 percent of that amount shall be
                apportioned equally among eligible States.
                    ``(B) 50 percent of that amount shall be
                apportioned among eligible States in amounts
                proportionate to the degree of non-highway
                recreational fuel use in each of those States
                during the preceding year.
            ``(3) Eligible state defined.--In this section, the
        term `eligible State' means a State that meets the
        requirements of section 206(c).''.
    (g) Audits of Highway Trust Fund.--Section 104 of such
title is amended by striking subsection (i) and inserting the
following:
    ``(i) Audits of Highway Trust Fund.--From administrative
funds deducted under subsection (a), the Secretary may
reimburse the Office of Inspector General of the Department of
Transportation for the conduct of annual audits of financial
statements in accordance with section 3521 of title 31.''.
    (h) Report on Obligations.--Section 104 of such title is
amended by striking subsection (j) and inserting the following:
    ``(j) Report to Congress.--The Secretary shall submit to
Congress a report for each fiscal year on--
            ``(1) the amount obligated, by each State, for
        Federal-aid highways and highway safety construction
        programs during the preceding fiscal year;
            ``(2) the balance, as of the last day of the
        preceding fiscal year, of the unobligated
apportionmentof each State by fiscal year under this section and
sections 105 and 144;
            ``(3) the balance of unobligated sums available for
        expenditure at the discretion of the Secretary for such
        highways and programs for the fiscal year; and
            ``(4) the rates of obligation of funds apportioned
        or set aside under this section and sections 105, 133,
        and 144, according to--
                    ``(A) program;
                    ``(B) funding category or subcategory;
                    ``(C) type of improvement;
                    ``(D) State; and
                    ``(E) sub-State geographic area, including
                urbanized and rural areas, on the basis of the
                population of each such area.''.
    (i) Transfer of Highway and Transit Funds.--Section 104 of
such title is amended by inserting after subsection (j) the
following:
    ``(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 underthe 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 toany State after
September 30, 1988, shall be available for apportionment to that
State.''.
            (3)(A) Section 115(b)(1) of such title is amended
        by striking ``104(b)(5)'' and inserting ``104(b)(4)''.
            (B) Section 137(f)(1) of such title is amended by
        striking ``section 104(b)(5)(B) of this title'' and
        inserting ``section 104(b)(4)''.
            (C) Section 141(c) of such title is amended by
        striking ``section 104(b)(5) of this title'' each place
        it appears and inserting ``section 104(b)(4)''.
            (D) Section 142(c) of such title is amended by
        striking ``(other than section 104(b)(5)(A))''.
            (E) Section 159 of such title is amended--
                    (i) by striking ``(5) of'' each place it
                appears and inserting ``(5) (as in effect on
                the day before the date of enactment of the
                Transportation Equity Act for the 21st Century)
                of''; and
                    (ii) in subsection (b)--
                            (I) in paragraphs (1)(A)(i) and
                        (3)(A) by striking ``section
                        104(b)(5)(A)'' each place it appears
                        and inserting ``section 104(b)(5)(A)
                        (as in effect on the day before the
                        date of enactment of the Transportation
                        Equity Act for the 21st Century)'';
                            (II) in paragraph (1)(A)(ii) by
                        striking ``section 104(b)(5)(B)'' and
                        inserting ``section 104(b)(5)(B) (as in
                        effect on the day before the date of
                        enactment of the Transportation Equity
                        Act for the 21st Century)'';
                            (III) in paragraph (3)(B) by
                        striking ``(5)(B)'' and inserting
                        ``(5)(B) (as in effect on the day
                        before the date of enactment of the
                        Transportation Equity Act for the 21st
                        Century)''; and
                            (IV) in paragraphs (3) and (4) by
                        striking ``section 104(b)(5)'' each
                        place it appears and inserting
                        ``section 104(b)(5) (as in effect on
                        the day before the date of enactment of
                        the Transportation Equity Act for the
                        21st Century)''.
            (F) Section 161(a) of such title is amended by
        striking ``paragraphs (1), (3), and (5)(B) of section
        104(b)'' each place it appears and inserting
        ``paragraphs (1), (3), and (4) of section 104(b)''.
            (4) Section 142(b) of such title is amended by
        striking ``paragraph (5) of subsection (b) of section
        104 of this title'' and inserting ``section
        104(b)(4)''.
    (m) Adjustments for the Surface Transportation Extension
Act of 1997.--
            (1) In general.--Notwithstanding any other
        provision of law and subject to section 2(c) of the
        Surface Transportation Extension Act of 1997, the
        Secretary shall ensure that the total apportionments
        for a State (other than Massachusetts) for fiscal year
        1998 made under the Transportation Equity Act for the
        21st Century (including amendments made by such Act)
        shall be reduced by the amount apportioned to such
        State (other than Massachusetts) under section
        1003(d)(1) of the Intermodal Surface Transportation
        Efficiency Act of 1991.
            (2) Repayment of transferred funds.--The Secretary
        shall ensure that any apportionments made to a State
        for fiscal year 1998 and adjusted under paragraph (1)
        shall first be used to restore in accordance with
        section 3(c) of the Surface Transportation Extension
        Act of 1997 any funds that a State transferred under
        section 3 of such Act.
            (3) Insufficient funds for repayment.--If a State
        has insufficient funds apportioned in fiscal year 1998
        under the Transportation Equity Act for the 21st
        Century (including amendments made by such Act) to make
        the adjustment required by paragraph (1), then the
        Secretary shall make an adjustment to any funds
        apportioned to such State in fiscal year 1999.
            (4) Allocated programs.--Notwithstanding any other
        provision of law, amounts made available for fiscal
        year 1998 by the Transportation Equity Act for the 21st
        Century (including amendments made by such Act) for a
        program that is continued by both of sections 4, 5, 6,
        and 7 of the Surface Transportation Extension Act of
        1997 (including amendments made by such sections) and
        the Transportation Equity Act for the 21st Century
        (including amendments made by such Act) shall be
        reduced by the amount made available by such sections
        4, 5, 6, and 7 for such programs.
            (5) Treatment of STEA obligation authority.--The
        amount of obligation authority made available under
        section 2(e) of the Surface Transportation Extension
        Act of 1997 shall be considered to be an amount of
        obligation authority made available for fiscal year
        1998 under section 1102(a) of this Act.
    (n) State Defined.--For the purposes of apportioning funds
under sections 104, 105, 144, and 206, the term ``State'' means
any of the 50 States and the District of Columbia.

SEC. 1104. MINIMUM GUARANTEE.

    (a) In General.--Section 105 of title 23, United States
Code, is amended to read as follows:

``Sec. 105. Minimum guarantee

    ``(a) General Rule.--For each of fiscal years 1998 through
2003, the Secretary shall allocate among the States amounts
sufficient to ensure that each State's percentage of the total
apportionments for such fiscal year of Interstate maintenance,
national highway system, bridge, congestion mitigation and air
quality improvement, surface transportation, metropolitan
planning, minimum guarantee, high priority projects,
Appalachian development highway system, and recreational trails
programs shall equal the percentage listed for each State in
subsection (b).
    ``(b) State Percentages.--The percentage for each State
referred to in subsection (a) shall be determined in accordance
with the following table:

``States:                                                     Percentage
    Alabama...................................................   2.0269
    Alaska....................................................   1.1915
    Arizona...................................................   1.5581
    Arkansas..................................................   1.3214
    California................................................   9.1962
    Colorado..................................................   1.1673
    Connecticut...............................................   1.5186
    Delaware..................................................   0.4424
    District of Columbia......................................   0.3956
    Florida...................................................   4.6176
    Georgia...................................................   3.5104
    Hawaii....................................................   0.5177
    Idaho.....................................................   0.7718
    Illinois..................................................   3.3819
    Indiana...................................................   2.3588
    Iowa......................................................   1.2020
    Kansas....................................................   1.1717
    Kentucky..................................................   1.7365
    Louisiana.................................................   1.5900
    Maine.....................................................   0.5263
    Maryland..................................................   1.5087
    Massachusetts.............................................   1.8638
    Michigan..................................................   3.1535
    Minnesota.................................................   1.4993
    Mississippi...............................................   1.2186
    Missouri..................................................   2.3615
    Montana...................................................   0.9929
    Nebraska..................................................   0.7768
    Nevada....................................................   0.7248
    New Hampshire.............................................   0.5163
    New Jersey................................................   2.5816
    New Mexico................................................   0.9884
    New York..................................................   5.1628
    North Carolina............................................   2.8298
    North Dakota..............................................   0.6553
    Ohio......................................................   3.4257
    Oklahoma..................................................   1.5419
    Oregon....................................................   1.2183
    Pennsylvania..............................................   4.9887
    Rhode Island..............................................   0.5958
    South Carolina............................................   1.5910
    South Dakota..............................................   0.7149
    Tennessee.................................................   2.2646
    Texas.....................................................   7.2131
    Utah......................................................   0.7831
    Vermont...................................................   0.4573
    Virginia..................................................   2.5627
    Washington................................................   1.7875
    West Virginia.............................................   1.1319
    Wisconsin.................................................   1.9916
    Wyoming...................................................   0.6951
    ``(c) Treatment of Funds.--
            ``(1) Programmatic distribution.--The Secretary
        shall apportion 50 percent of the amounts made
        available under this section that exceed$2,800,000,000
so that the amount apportioned to each State under this paragraph for
each program referred to in subsection (a) (other than 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 HighwayTrust Fund (other than
the Mass Transit Account) for the preceding fiscal year was equal to or
less than 90.5 percent.
            ``(3) Conforming adjustments.--After making any
        adjustments under paragraph (1) for a fiscal year, the
        Secretary shall adjust the remaining percentages in the
        table set forth in subsection (b) to ensure that the
        total of the percentages in the table do not exceed 100
        percent for such fiscal year.
            ``(4) Limitation on adjustments.--After making any
        adjustments under paragraph (3) for a fiscal year, the
        Secretary shall determine whether or not any State's
        return from the Highway Trust Fund (other than the Mass
        Transit Account) is less than 90.5 percent as a result
        of such adjustments and shall adjust the percentages in
        the table for such fiscal year accordingly. Adjustments
        of the percentages in the table under this paragraph
        may not result in the total of such percentages
        exceeding 100 percent.''.
    (b) Conforming Amendment.--The analysis for chapter 1 of
such title is amended by striking the item relating to section
105 and inserting the following:

``105. Minimum guarantee.''.

SEC. 1105. REVENUE ALIGNED BUDGET AUTHORITY.

    (a) In General.--Chapter 1 of title 23, United States Code,
is amended by striking section 110 and inserting the following:

``Sec. 110. Revenue aligned budget authority

    ``(a) Determination of Amount.--On October 15 of fiscal
year 1999, and each fiscal year thereafter, the Secretary shall
allocate an amount of funds equal to the amount determined
pursuant to section 251(b)(1)(B)(I)(cc) of the Balanced Budget
and Emergency Deficit Control Act of 1985 (2 U.S.C.
901(b)(2)(B)(I)(cc)).
    ``(b) General Distribution.--The Secretary shall--
            ``(1) determine the ratio that--
                    ``(A) the sums authorized to be
                appropriated from the Highway Trust Fund (other
                than the Mass Transit Account) for each of the
                for Federal-aid highway and highway safety
                construction programs (other than the minimum
                guarantee program) for which funds are
                allocated from such Trust Fund by the Secretary
                under this title and the Transportation Equity
                Act for the 21st Century for a fiscal year,
                bears to
                    ``(B) the total of all sums authorized to
                be appropriated from such Trust Fund for such
                programs for such fiscal year;
            ``(2) multiply the ratio determined under paragraph
        (1) by the total amount of funds to be allocated under
        subsection (a) for such fiscal year;
            ``(3) allocate the amount determined under
        paragraph (2) among such programs in the ratio that--
                    ``(A) the sums authorized to be
                appropriated from such Trust Fund for each of
                such programs for such fiscal year, bears to
                    ``(B) the sums authorized to be
                appropriated from such Trust Fund for all such
                programs for such fiscal year; and
            ``(4) allocate the remainder of the funds to be
        allocated under subsection (a) for such fiscal year to
        the States in the ratio that--
                    ``(A) the total of all funds authorized to
                be appropriated from such Trust Fund for
                Federal-aid highway and highway safety
                construction programs that are apportioned to
                each State for such fiscal year but for this
                section, bears to
                    ``(B) the total of all funds authorized to
                be appropriated from such Trust Fund for such
                programs that are apportioned to all States for
                such fiscal year but for this section.
    ``(c) State Programmatic Distribution.--Of the funds to be
apportioned to each State under subsection (b)(4) for a fiscal
year, the Secretary shall ensure that such funds are
apportioned for the Interstate maintenance program, the
National Highway System program, the bridge program, the
surface transportation program, and the congestion mitigation
air quality improvement program in the same ratio that each
State is apportioned funds for such programs for such fiscal
year but for this section.
    ``(d) Authorization of Appropriations.--There are
authorized to be appropriated from the Highway Trust Fund
(other than the Mass Transit Account) such sums as may be
necessary to carry out this section for fiscal years beginning
after September 30, 1998.''.
    (b) Conforming Amendment.--The analysis for chapter 1 of
such title is amended by striking the item relating to section
110 and inserting the following:

``110. Revenue aligned budget authority.''.

SEC. 1106. FEDERAL-AID SYSTEMS.

    (a) Administration of National Highway System and
Interstate Maintenance Program.--TheSecretary 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 naturalhabitat 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
                andregional 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 thehighway is
constructed to the geometric and construction standards for the
Interstate System and has been designated as a route on the Interstate
System.
                    ``(C) Financial responsibility.--Except as
                provided in this title, the designation of a
                highway under this paragraph shall create no
                additional Federal financial responsibility
                with respect to the highway.
    ``(d) Transfer of Interstate Construction Funds.--
            ``(1) Interstate construction funds not in
        surplus.--
                    ``(A) In general.--Upon application by a
                State and approval by the Secretary, the
                Secretary may transfer to the apportionment of
                the State under section 104(b)(1) any amount of
                funds apportioned to the State under section
                104(b)(5)(A) (as in effect on the day before
                the date of enactment of the Transportation
                Equity Act for the 21st Century), if the amount
                does not exceed the Federal share of the costs
                of construction of segments of the Interstate
                System in the State included in the most recent
                Interstate System cost estimate.
                    ``(B) Effect of transfer.--Upon transfer of
                an amount under subparagraph (A), the
                construction on which the amount is based, as
                included in the most recent Interstate System
                cost estimate, shall not be eligible for
                funding under section 104(b)(5)(A) (as in
                effect on the day before the date of enactment
                of the Transportation Equity Act for the 21st
                Century) or 118(c).
            ``(2) Surplus interstate construction funds.--Upon
        application by a State and approval by the Secretary,
        the Secretary may transfer to the apportionment of the
        State under section 104(b)(1) any amount of surplus
        funds apportioned to the State under section
        104(b)(5)(A) (as in effect on the day before the date
        of enactment of the Transportation Equity Act for the
        21st Century), if the State has fully financed all work
        eligible under the most recent Interstate System cost
        estimate.
            ``(3) Applicability of certain laws.--Funds
        transferred under this subsection shall be subject to
        the laws (including regulations, policies, and
        procedures) relating to the apportionment to which the
        funds are transferred.''.
    (b) Unobligated Balances of Interstate Substitute Funds.--
Unobligated balances of funds apportioned to a State under
section 103(e)(4)(H) of title 23, United States Code (as in
effect on the day before the date of enactment of this Act),
shall be available for obligation by the State under the law
(including regulations, policies, and procedures) relating to
the obligation and expenditure of the funds in effect on that
date.
    (c) Conforming Amendments.--
            (1)(A) Section 115(a) of title 23, United States
        Code, is amended--
                    (i) in the subsection heading by striking
                ``Substitute,''; and
                    (ii) in paragraph (1)(A)(i) by striking
                ``103(e)(4)(H),'';
            (B) Section 118 of such title is amended--
                    (i) by striking subsection (d); and
                    (ii) by redesignating subsections (e) and
                (f) as subsections (d) and (e), respectively.
            (C) Section 129(b) of such title is amended in the
        first sentence by striking ``which has been'' and all
        that follows through ``and has not'' and inserting
        ``which is a public road and has not''.
            (2)(A) Section 139 of such title, and the item
        relating to such section in the analysis for chapter 1
        of such title, are repealed.
            (B) Section 127(f) of such title is amended by
        striking ``section 139(a)'' and inserting ``section
        103(c)(4)(A)''.
            (C) Section 1105(e)(5) of the Intermodal Surface
        Transportation Efficiency Act of 1991 (109 Stat. 597)
        is amended by striking subparagraph (B) and inserting
        the following:
                    ``(B) Treatment of segments.--Subject to
                subparagraph (C), segments designated as parts
                of the Interstate System under this paragraph
                shall be treated in the same manner as segments
                designated under section 103(c)(4)(A) of title
                23, United States Code.''.
    (d) Intermodal Freight Connectors Study.--
            (1) Report.--Not later than 2 years after the date
        of enactment of this Act, the Secretary shall--
                    (A) review the condition of and
                improvements made, since the designation of the
                National Highway System, to connectors on the
                National Highway System that serve seaports,
                airports, and other intermodal freight
                transportation facilities; and
                    (B) report to Congress on the results of
                such review.
            (2) Review.--In preparing the report, the Secretary
        shall review the connectors and identify projects
        carried out on those connectors that were intended to
        provide and improve service to an intermodal facility
        referred to in paragraph (1) and to facilitate the
        efficient movement of freight, including movements of
        freight between modes.
            (3) Identification of impediments.--If the
        Secretary determines on the basis of the review that
        there are impediments to improving the connectors
        serving intermodal facilities referred to in paragraph
        (1), the Secretary shall identify such impediments and
        make any appropriate recommendations as part of the
        Secretary's report to Congress under this subsection.

SEC. 1107. INTERSTATE MAINTENANCE PROGRAM.

    (a) In General.--Section 119 of title 23, United States
Code, is amended--
            (1) by striking subsection (a) and inserting the
        following:
    ``(a) In General.--
            ``(1) Projects.--The Secretary may approve projects
        for resurfacing, restoring, rehabilitating, and
        reconstructing--
                    ``(A) routes on the Interstate System
                designated under section 103(c)(1) and, in
                Alaska and Puerto Rico, under section
                103(c)(4)(A);
                    ``(B) routes on the Interstate System
                designated before the date of enactment of the
                Transportation Equity Act for the 21st Century
                under subsections (a) and (b) of section 139
                (as in effect on the day before the date of
                enactment of such Act); and
                    ``(C) any segments that become part of the
                Interstate System under section 1105(e)(5) of
                the Intermodal Surface Transportation
                Efficiency Act of 1991.
            ``(2) Toll roads.--The Secretary may approve a
        project pursuant to this subsection on a toll road only
        if such road is subject to a Secretarial agreement
        provided for in section 129 or continued in effect by
        section 1012(d) of the Intermodal Surface
        Transportation Efficiency Act of 1991 (105 Stat. 1939)
        and not voided by the Secretary under section 120(c) of
        the Surface Transportation andUniform Relocation
Assistance Act of 1987 (101 Stat. 159).
            ``(3) Funding.--Sums authorized to be appropriated
        to carry out this section shall be out of the Highway
        Trust Fund and shall be apportioned in accordance with
        section 104(b)(4).'';
            (2) by striking subsections (b), (c), and (e); and
            (3) by redesignating subsections (d), (f), and (g)
        as subsections (b), (c), and (d), respectively.
    (b) Set-Asides for Interstate Discretionary Projects.--
Section 118(c) of such title is amended to read as follows:
    ``(c) Set-Asides for Interstate Discretionary Projects.--
            ``(1) In general.--Before any apportionment is made
        under section 104(b)(4), the Secretary shall set aside
        $50,000,000 in fiscal year 1998 and $100,000,000 in
        each of fiscal years 1999 through 2003 for obligation
        by the Secretary for projects for resurfacing,
        restoring, rehabilitating, and reconstructing any route
        or portion thereof on the Interstate System (other than
        any highway designated as a part of the Interstate
        System under section 139 (as in effect on the day
        before the date of enactment of the Transportation
        Equity Act for the 21st Century) and any toll road on
        the Interstate System not subject to an agreement under
        section 119(e) (as in effect on December 17, 1991).
            ``(2) Selection criteria.--The amounts set aside
        under paragraph (1) shall be made available by the
        Secretary to any State applying for such funds if the
        Secretary determines that--
                    ``(A) the State has obligated or
                demonstrates that it will obligate in the
                fiscal year all of its apportionments under
                section 104(b)(4) other than an amount that, by
                itself, is insufficient to pay the Federal
                share of the cost of a project for resurfacing,
                restoring, rehabilitating, and reconstructing
                the Interstate System that has been submitted
                by the State to the Secretary for approval; and
                    ``(B) the applicant is willing and able
                to--
                            ``(i) obligate the funds within 1
                        year of the date the funds are made
                        available;
                            ``(ii) apply the funds to a ready-
                        to-commence project; and
                            ``(iii) in the case of construction
                        work, begin work within 90 days after
                        obligation.
            ``(3) Priority consideration for certain
        projects.--In selecting projects to fund under
        paragraph (1), the Secretary shall give priority
        consideration to any project the cost of which exceeds
        $10,000,000 on any high volume route in an urban area
        or a high truck-volume route in a rural area.
            ``(4) Period of availability of discretionary
        funds.--Sums made available pursuant to this subsection
        shall remain available until expended.''.
    (c) Interstate Needs.--
            (1) Study.--The Secretary shall conduct, in
        cooperation with States and affected metropolitan
        planning organizations, a study to determine--
                    (A) the expected condition of the
                Interstate System over the next 10 years and
                the needs of States and metropolitan planning
                organizations to reconstruct and improve the
                Interstate System;
                    (B) the resources necessary to maintain and
                improve the Interstate System; and
                    (C) the means to ensure that the Nation's
                surface transportation program can--
                            (i) address the needs identified in
                        subparagraph (A); and
                            (ii) allow for States to address
                        any extraordinary needs.
            (2) Report.--Not later than January 1, 2000, the
        Secretary shall transmit to Congress a report on the
        results of the study.

SEC. 1108. SURFACE TRANSPORTATION PROGRAM.

    (a) Eligibility of Projects.--Section 133(b) of title 23,
United States Code, is amended--
            (1) in paragraph (1) by inserting after ``magnesium
        acetate'' the following: ``, sodium acetate/formate, or
        other environmentally acceptable, minimally corrosive
        anti-icing and de-icing compositions'';
            (2) in paragraph (2) by striking ``and publicly
        owned intracity or intercity bus terminals and
        facilities'' and inserting ``, including vehicles and
        facilities, whether publicly or privately owned, that
        are used to provide intercity passenger service by
        bus'';
            (3) in paragraph (3)--
                    (A) by striking ``and bicycle'' and
                inserting ``bicycle''; and
                    (B) by inserting before the period at the
                end the following: ``, and the modification of
                public sidewalks to comply with the Americans
                with Disabilities Act of 1990 (42 U.S.C. 12101
                et seq.)'';
            (4) in paragraph (4) by inserting
        ``infrastructure'' after ``safety'';
            (5) in paragraph (9) by striking ``section
        108(f)(1)(A) (other than clauses (xii) and (xvi)) of
        the Clean Air Act'' and inserting ``section
        108(f)(1)(A) (other than clause (xvi)) of the Clean Air
        Act (42 U.S.C. 7408(f)(1)(A))'';
            (6) in paragraph (11)--
                    (A) in the first sentence--
                            (i) by inserting ``natural habitat
                        and'' after ``participation in'' each
                        place it appears;
                            (ii) by striking ``enhance and
                        create'' and inserting ``enhance, and
                        create natural habitats and''; and
                            (iii) by inserting ``natural
                        habitat and'' before ``wetlands
                        conservation''; and
                    (B) by adding at the end the following: