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[DOCID: f:publ178.105]

[[Page 112 STAT. 107]]

Public Law 105-178
105th Congress

                                 An Act


 To authorize funds for Federal-aid highways, highway safety programs,
     and transit programs, and for other purposes. <>

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <>

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.

[[Page 112 STAT. 108]]

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

            Subtitle C--Program Streamlining and Flexibility

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

                           Subtitle D--Safety

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

                           Subtitle E--Finance

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

                   Subtitle F--High Priority Projects

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

                        TITLE II--HIGHWAY SAFETY

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

           TITLE III--FEDERAL TRANSIT ADMINISTRATION PROGRAMS

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

[[Page 112 STAT. 109]]

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

                     TITLE IV--MOTOR CARRIER SAFETY

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

                    TITLE V--TRANSPORTATION RESEARCH

                           Subtitle A--Funding

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

                   Subtitle B--Research and Technology

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

[[Page 112 STAT. 110]]

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

             Subtitle C--Intelligent Transportation Systems

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

            TITLE VI--OZONE AND PARTICULATE MATTER STANDARDS

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

                        TITLE VII--MISCELLANEOUS

              Subtitle A--Automobile Safety and Information

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

                          Subtitle B--Railroads

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

             Subtitle C--Comprehensive One-Call Notification

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

               Subtitle D--Sportfishing and Boating Safety

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

 TITLE VIII--TRANSPORTATION DISCRETIONARY SPENDING GUARANTEE AND BUDGET
                                 OFFSETS

       Subtitle A--Transportation Discretionary Spending Guarantee

Sec. 8101. Discretionary spending categories.

[[Page 112 STAT. 111]]

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

                     Subtitle B--Veterans' Benefits

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

              Subtitle C--Temporary Student Loan Provision.

Sec. 8301. Temporary student loan provision.

              Subtitle D--Block Grants for Social Services

Sec. 8401. Block grants for social services.

          TITLE IX--AMENDMENTS OF INTERNAL REVENUE CODE OF 1986

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

SEC. <>  2. DEFINITIONS.

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

                      TITLE I--FEDERAL-AID HIGHWAYS

                 Subtitle A--Authorizations and Programs

SEC. 1101. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--The following sums are authorized to be
appropriated out of the Highway Trust Fund (other than the Mass Transit
Account):
            (1) Interstate maintenance program.--For the Interstate
        maintenance program under section 119 of title 23, United States
        Code, $3,427,341,000 for fiscal year 1998, $3,957,103,000 for
        fiscal year 1999, $3,994,524,000 for fiscal year 2000,
        $4,073,322,000 for fiscal year 2001, $4,139,630,000 for fiscal
        year 2002, and $4,217,635,000 for fiscal year 2003.

[[Page 112 STAT. 112]]

            (2) National highway system.--For the National Highway
        System under section 103 of such title $4,112,480,000 for fiscal
        year 1998, $4,748,523,000 for fiscal year 1999, $4,793,429,000
        for fiscal year 2000, $4,887,986,000 for fiscal year 2001,
        $4,967,556,000 for fiscal year 2002, and $5,061,162,000 for
        fiscal year 2003.
            (3) Bridge program.--For the bridge program under section
        144 of such title $2,941,454,000 for fiscal year 1998,
        $3,395,354,000 for fiscal year 1999, $3,427,472,000 for fiscal
        year 2000, $3,495,104,000 for fiscal year 2001, $3,552,016,000
        for fiscal year 2002, and $3,618,966,000 for fiscal year 2003.
            (4) Surface transportation program.--For the surface
        transportation program under section 133 of such title
        $4,797,620,000 for fiscal year 1998, $5,539,944,000 for fiscal
        year 1999, $5,592,333,000 for fiscal year 2000, $5,702,651,000
        for fiscal year 2001, $5,795,482,000 for fiscal year 2002, and
        $5,904,689,000 for fiscal year 2003.
            (5) Congestion mitigation and air quality improvement
        program.--For the congestion mitigation and air quality
        improvement program under section 149 of such title
        $1,192,619,000 for fiscal year 1998, $1,345,415,000 for fiscal
        year 1999, $1,358,138,000 for fiscal year 2000, $1,384,930,000
        for fiscal year 2001, $1,407,474,000 for fiscal year 2002, and
        $1,433,996,000 for fiscal year 2003.
            (6) Appalachian development highway system program.--For the
        Appalachian development highway system program under section 201
        of the Appalachian Regional Development Act of 1965 (40 U.S.C.
        App.) $450,000,000 for each of fiscal years 1999 through 2003.
            (7) Recreational trails program.--For the recreational
        trails program under section 206 of such title $30,000,000 for
        fiscal year 1998, $40,000,000 for fiscal year 1999, and
        $50,000,000 for each of fiscal years 2000 through 2003.
            (8) Federal lands highways program.--
                    (A) Indian reservation roads.--For Indian
                reservation roads under section 204 of such title
                $225,000,000 for fiscal year 1998 and $275,000,000 for
                each of fiscal years 1999 through 2003.
                    (B) Public lands highways.--For public lands
                highways under section 204 of such title $196,000,000
                for fiscal year 1998 and $246,000,000 for each of fiscal
                years 1999 through 2003.
                    (C) Park roads and parkways.--For park roads and
                parkways under section 204 of such title $115,000,000
                for fiscal year 1998 and $165,000,000 for each of fiscal
                years 1999 through 2003.
                    (D) Refuge roads.--For refuge roads under section
                204 of such title $20,000,000 for each of fiscal years
                1999 through 2003.
            (9) National corridor planning and development and
        coordinated border infrastructure programs.--For the national
        corridor planning and development and coordinated border
        infrastructure programs under sections 1118 and 1119 of this Act
        $140,000,000 for each of fiscal years 1999 through 2003.
            (10) Construction of ferry boats and ferry terminal
        facilities.--For construction of ferry boats and ferry terminal

[[Page 112 STAT. 113]]

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

    (b) Disadvantaged Business Enterprises.-- <>
            (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)

[[Page 112 STAT. 114]]

        and the location of such concerns in the State and notify the
        Secretary, in writing, of the percentage of such concerns which
        are controlled by women, by socially and economically
        disadvantaged individuals (other than women), and by individuals
        who are women and are otherwise socially and economically
        disadvantaged individuals.
            (4) Uniform certification.--The Secretary shall establish
        minimum uniform criteria for State governments to use in
        certifying whether a concern qualifies for purposes of this
        subsection. Such minimum uniform criteria shall include, but not
        be limited to on-site visits, personal interviews, licenses,
        analysis of stock ownership, listing of equipment, analysis of
        bonding capacity, listing of work completed, resume of principal
        owners, financial capacity, and type of work preferred.
            (5) Compliance with court orders.--Nothing in this
        subsection limits the eligibility of an entity or person to
        receive funds made available under titles I, III, and V of this
        Act, if the entity or person is prevented, in whole or in part,
        from complying with paragraph (1) because a Federal court issues
        a final order in which the court finds that the requirement of
        paragraph (1), or the program established under paragraph (1),
        is unconstitutional.
            (6) <>  Review by comptroller general.--Not
        later than 3 years after the date of enactment of this Act, the
        Comptroller General of the United States shall conduct a review
        of, and publish and report to Congress findings and conclusions
        on, the impact throughout the United States of administering the
        requirement of paragraph (1), including an analysis of--
                    (A) in the case of small business concerns certified
                in each State under paragraph (4) as owned and
                controlled by socially and economically disadvantaged
                individuals--
                          (i) the number of the small business concerns;
                      and
                          (ii) the participation rates of the small
                      business concerns in prime contracts and
                      subcontracts funded under titles I, III, and V of
                      this Act;
                    (B) in the case of small business concerns described
                in subparagraph (A) that receive prime contracts and
                subcontracts funded under titles I, III, and V of this
                Act--
                          (i) the number of the small business concerns;
                          (ii) the annual gross receipts of the small
                      business concerns; and
                          (iii) the net worth of socially and
                      economically disadvantaged individuals that own
                      and control the small business concerns;
                    (C) in the case of small business concerns described
                in subparagraph (A) that do not receive prime contracts
                and subcontracts funded under titles I, III, and V of
                this Act--
                          (i) the annual gross receipts of the small
                      business concerns; and
                          (ii) the net worth of socially and
                      economically disadvantaged individuals that own
                      and control the small business concerns;
                    (D) in the case of business concerns that receive
                prime contracts and subcontracts funded under titles I,
                III, and

[[Page 112 STAT. 115]]

                V of this Act, other than small business concerns
                described in subparagraph (B)--
                          (i) the annual gross receipts of the business
                      concerns; and
                          (ii) the net worth of individuals that own and
                      control the business concerns;
                    (E) the rate of graduation from any programs carried
                out to comply with the requirement of paragraph (1) for
                small business concerns owned and controlled by socially
                and economically disadvantaged individuals;
                    (F) the overall cost of administering the
                requirement of paragraph (1), including administrative
                costs, certification costs, additional construction
                costs, and litigation costs;
                    (G) any discrimination on the basis of race, color,
                national origin, or sex against small business concerns
                owned and controlled by socially and economically
                disadvantaged individuals;
                    (H)(i) any other factors limiting the ability of
                small business concerns owned and controlled by socially
                and economically disadvantaged individuals to compete
                for prime contracts and subcontracts funded under titles
                I, III, and V of this Act; and
                    (ii) the extent to which any of those factors are
                caused, in whole or in part, by discrimination based on
                race, color, national origin, or sex;
                    (I) any discrimination, on the basis of race, color,
                national origin, or sex, against construction companies
                owned and controlled by socially and economically
                disadvantaged individuals in public and private
                transportation contracting and the financial, credit,
                insurance, and bond markets;
                    (J) the impact on small business concerns owned and
                controlled by socially and economically disadvantaged
                individuals of--
                          (i) the issuance of a final order described in
                      paragraph (5) by a Federal court that suspends a
                      program established under paragraph (1); or
                          (ii) the repeal or suspension of State or
                      local disadvantaged business enterprise programs;
                      and
                    (K) the impact of the requirement of paragraph (1),
                and any program carried out to comply with paragraph
                (1), on competition and the creation of jobs, including
                the creation of jobs for socially and economically
                disadvantaged individuals.

SEC. 1102. OBLIGATION CEILING. <>

    (a) General Limitation.--Notwithstanding any other provision of law
but subject to subsections (g) and (h), the obligations for Federal-aid
highway and highway safety construction programs shall not exceed--
            (1) $21,500,000,000 for fiscal year 1998;
            (2) $25,431,000,000 for fiscal year 1999;
            (3) $26,155,000,000 for fiscal year 2000;
            (4) $26,651,000,000 for fiscal year 2001;
            (5) $27,235,000,000 for fiscal year 2002; and
            (6) $27,681,000,000 for fiscal year 2003.

[[Page 112 STAT. 116]]

    (b) Exceptions.--The limitations under subsection (a) shall not
apply to obligations--
            (1) under section 125 of title 23, United States Code;
            (2) under section 147 of the Surface Transportation
        Assistance Act of 1978;
            (3) under section 9 of the Federal-Aid Highway Act of 1981;
            (4) under sections 131(b) and 131(j) of the Surface
        Transportation Assistance Act of 1982;
            (5) under sections 149(b) and 149(c) of the Surface
        Transportation and Uniform Relocation Assistance Act of 1987;
            (6) under sections 1103 through 1108 of the Intermodal
        Surface Transportation Efficiency Act of 1991;
            (7) under section 157 of title 23, United States Code, as in
        effect on the day before the date of enactment of this Act; and
            (8) under section 105 of title 23, United States Code (but,
        for each of fiscal years 1998 through 2007), only in an amount
        equal to $639,000,000 per fiscal year.

    (c) Distribution of Obligation Authority.--For each of fiscal years
1998 through 2003, the Secretary shall--
            (1) not distribute obligation authority provided by
        subsection (a) for such fiscal year for amounts authorized for
        administrative expenses and programs funded from the
        administrative takedown authorized by section 104(a) of title
        23, United States Code, and amounts authorized for the highway
        use tax evasion program and the Bureau of Transportation
        Statistics;
            (2) not distribute an amount of obligation authority
        provided by subsection (a) that is equal to the unobligated
        balance of amounts made available from the Highway Trust Fund
        (other than the Mass Transit Account) for Federal-aid highway
        and highway safety programs for previous fiscal years the funds
        for which are allocated by the Secretary;
            (3) determine the ratio that--
                    (A) the obligation authority provided by subsection
                (a) for such fiscal year less the aggregate of amounts
                not distributed under paragraphs (1) and (2), bears to
                    (B) the total of the sums authorized to be
                appropriated for Federal-aid highway and highway safety
                construction programs (other than sums authorized to be
                appropriated for sections set forth in paragraphs (1)
                through (7) of subsection (b) and sums authorized to be
                appropriated for section 105 of title 23, United States
                Code, equal to the amount referred to in subsection
                (b)(8)) for such fiscal year less the aggregate of the
                amounts not distributed under paragraph (1) of this
                subsection;
            (4) distribute the obligation authority provided by
        subsection (a) less the aggregate amounts not distributed under
        paragraphs (1) and (2) for section 117 of title 23, United
        States Code (relating to high priority projects program),
        section 201 of the Appalachian Regional Development Act of 1965,
        the Woodrow Wilson Memorial Bridge Authority Act of 1995, and
        $2,000,000,000 for such fiscal year under section 105 of such
        title (relating to minimum guarantee) so that amount of
        obligation authority available for each of such sections is
        equal to the amount determined by multiplying the ratio
        determined

[[Page 112 STAT. 117]]

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

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

[[Page 112 STAT. 118]]

obligation limitation for such fiscal year. Such distribution to the
States shall be made in the same ratio as the distribution of obligation
authority under subsection (c)(6). The funds so distributed shall be
available for any purposes described in section 133(b) of title 23,
United States Code.
    (g) Special Rule.--Obligation authority distributed for a fiscal
year under subsection (c)(4) for a section set forth in subsection
(c)(4) shall remain available until used for obligation of funds for
such section and shall be in addition to the amount of any limitation
imposed on obligations for Federal-aid highway and highway safety
construction programs for future fiscal years.
    (h) Increase in Obligation Limit.--Limitations on obligations
imposed by subsection (a) for a fiscal year shall be increased by an
amount equal to the amount determined pursuant to section
251(b)(1)(B)(ii)(I)(cc) of the Balanced Budget and Emergency Deficit
Control Act of 1985 (2 U.S.C. 901(b)(2)(B)(ii)(I)(cc)) for such fiscal
year. Any such increase shall be distributed in accordance with this
section.
    (i) Limitations on Obligations for Administrative Expenses.--
Notwithstanding any other provision of law, the total amount of all
obligations under section 104(a) of title 23, United States Code, shall
not exceed--
            (1) $320,000,000 for fiscal year 1998;
            (2) $350,000,000 for fiscal year 1999;
            (3) $370,000,000 for fiscal year 2000;
            (4) $390,000,000 for fiscal year 2001;
            (5) $410,000,000 for fiscal year 2002; and
            (6) $430,000,000 for fiscal year 2003.

SEC. 1103. APPORTIONMENTS.

    (a) Administrative Expenses.--Section 104 of title 23, United States
Code, is amended by striking subsection (a) and inserting the following:
    ``(a) Administrative Expenses.--
            ``(1) In general.--Whenever an apportionment is made of the
        sums made available for expenditure on each of the surface
        transportation program under section 133, the bridge program
        under section 144, the congestion mitigation and air quality
        improvement program under section 149, the Interstate and
        National Highway System program under section 103, the minimum
        guarantee program under section 105, the Federal lands highway
        program under section 204, or the Appalachian development
        highway system program under section 201 of the Appalachian
        Regional Development Act of 1965 (40 U.S.C. App.), the Secretary
        shall deduct a sum, in an amount not to exceed 1\1/2\ percent of
        all sums so made available, as the Secretary determines
        necessary--
                    ``(A) to administer the provisions of law to be
                financed from appropriations for the Federal-aid highway
                program and programs authorized under chapter 2; and
                    ``(B) to make transfers of such sums as the
                Secretary determines to be appropriate to the
                Appalachian Regional Commission for administrative
                activities associated with the Appalachian development
                highway system.
            ``(2) Consideration of unobligated balances.--In making the
        determination described in paragraph (1), the Secretary

[[Page 112 STAT. 119]]

        shall take into account the unobligated balance of any sums
        deducted under this subsection in prior fiscal years.
            ``(3) Availability.--The sum deducted under paragraph (1)
        shall remain available until expended.''.

    (b) Apportionments.--Section 104(b) of such title <>  is amended to read as follows:

    ``(b) Apportionments.--On October 1 of each fiscal year, the
Secretary, after making the deduction authorized by subsection (a) and
the set-aside authorized by subsection (f), shall apportion the
remainder of the sums authorized to be appropriated for expenditure on
the Interstate and National Highway System program, the Congestion
Mitigation and Air Quality Improvement program, and the Surface
Transportation program for that fiscal year, among the several States in
the following manner:
            ``(1) National highway system component.--
                    ``(A) In general.--For the National Highway System
                (excluding funds apportioned under paragraph (4)),
                $36,400,000 for each fiscal year to the Virgin Islands,
                Guam, American Samoa, and the Commonwealth of Northern
                Mariana Islands, $18,800,000 for each of fiscal years
                1999 through 2003 for the Alaska Highway, and the
                remainder apportioned as follows:
                          ``(i) 25 percent in the ratio that--
                                    ``(I) the total lane miles of
                                principal arterial routes (excluding
                                Interstate System routes) in each State;
                                bears to
                                    ``(II) the total lane miles of
                                principal arterial routes (excluding
                                Interstate System routes) in all States.
                          ``(ii) 35 percent in the ratio that--
                                    ``(I) the total vehicle miles
                                traveled on lanes on principal arterial
                                routes (excluding Interstate System
                                routes) in each State; bears to
                                    ``(II) the total vehicle miles
                                traveled on lanes on principal arterial
                                routes (excluding Interstate System
                                routes) in all States.
                          ``(iii) 30 percent in the ratio that--
                                    ``(I) the total diesel fuel used on
                                highways in each State; bears to
                                    ``(II) the total diesel fuel used on
                                highways in all States.
                          ``(iv) 10 percent in the ratio that--
                                    ``(I) the quotient obtained by
                                dividing the total lane miles on
                                principal arterial highways in each
                                State by the total population of the
                                State; bears to
                                    ``(II) the quotient obtained by
                                dividing the total lane miles on
                                principal arterial highways in all
                                States by the total population of all
                                States.
                    ``(B) Minimum apportionment.--Notwithstanding
                subparagraph (A) and paragraph (4), each State shall
                receive a minimum of \1/2\ of 1 percent of the funds
                apportioned under subparagraph (A) and paragraph (4).
            ``(2) Congestion mitigation and air quality improvement
        program.--
                    ``(A) In general.--For the congestion mitigation and
                air quality improvement program, in the ratio that--

[[Page 112 STAT. 120]]

                          ``(i) the total of all weighted nonattainment
                      and maintenance area populations in each State;
                      bears to
                          ``(ii) the total of all weighted nonattainment
                      and maintenance area populations in all States.
                    ``(B) Calculation of weighted nonattainment and
                maintenance area population.--Subject to subparagraph
                (C), for the purpose of subparagraph (A), the weighted
                nonattainment and maintenance area population shall be
                calculated by multiplying the population of each area in
                a State that was a nonattainment area or maintenance
                area as described in section 149(b) for ozone or carbon
                monoxide by a factor of--
                          ``(i) 0.8 if--
                                    ``(I) at the time of the
                                apportionment, the area is a maintenance
                                area; or
                                    ``(II) at the time of the
                                apportionment, the area is classified as
                                a submarginal ozone nonattainment area
                                under the Clean Air Act (42 U.S.C. 7401
                                et seq.);
                          ``(ii) 1.0 if, at the time of the
                      apportionment, the area is classified as a
                      marginal ozone nonattainment area under subpart 2
                      of part D of title I of the Clean Air Act (42
                      U.S.C. 7511 et seq.);
                          ``(iii) 1.1 if, at the time of the
                      apportionment, the area is classified as a
                      moderate ozone nonattainment area under such
                      subpart;
                          ``(iv) 1.2 if, at the time of the
                      apportionment, the area is classified as a serious
                      ozone nonattainment area under such subpart;
                          ``(v) 1.3 if, at the time of the
                      apportionment, the area is classified as a severe
                      ozone nonattainment area under such subpart;
                          ``(vi) 1.4 if, at the time of the
                      apportionment, the area is classified as an
                      extreme ozone nonattainment area under such
                      subpart; or
                          ``(vii) 1.0 if, at the time of the
                      apportionment, the area is not a nonattainment or
                      maintenance area as described in section 149(b)
                      for ozone, but is classified under subpart 3 of
                      part D of title I of such Act (42 U.S.C. 7512 et
                      seq.) as a nonattainment area described in section
                      149(b) for carbon monoxide.
                    ``(C) Additional adjustment for carbon monoxide
                areas.--
                          ``(i) Carbon monoxide nonattainment areas.--
                      If, in addition to being classified as a
                      nonattainment or maintenance area for ozone, the
                      area was also classified under subpart 3 of part D
                      of title I of such Act (42 U.S.C. 7512 et seq.) as
                      a nonattainment area described in section 149(b)
                      for carbon monoxide, the weighted nonattainment or
                      maintenance area population of the area, as
                      determined under clauses (i) through (vi) of
                      subparagraph (B), shall be further multiplied by a
                      factor of 1.2.
                          ``(ii) Carbon monoxide maintenance areas.--If,
                      in addition to being classified as a nonattainment
                      or maintenance area for ozone, the area was at one
                      time also classified under subpart 3 of part D of
                      title I

[[Page 112 STAT. 121]]

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

[[Page 112 STAT. 122]]

                                    ``(II) section 139(a) (as in effect
                                on the day before the date of enactment
                                of the Transportation Equity Act for the
                                21st Century) before March 9, 1984
                                (other than routes on toll roads not
                                subject to a Secretarial agreement under
                                section 105 of the Federal-Aid Highway
                                Act of 1978 (92 Stat. 2692)); and
                                    ``(III) section 139(c) (as in effect
                                on the day before the date of enactment
                                of the Transportation Equity Act for the
                                21st Century);
                      in each State; bears to
                          ``(ii) the total of all such vehicle miles
                      traveled in all States; and
                    ``(C) 33\1/3\ percent in the ratio that--
                          ``(i) the total of each State's annual
                      contributions to the Highway Trust Fund (other
                      than the Mass Transit Account) attributable to
                      commercial vehicles; bears to
                          ``(ii) the total of such annual contributions
                      by all States.

    (c) Operation Lifesaver and High Speed Rail Corridors.--Section
104(d) of such title <>  is amended--
            (1) in paragraph (1) by striking ``The'' and all that
        follows through ``$300,000 for each'' and inserting ``Before
        making an apportionment under subsection (b)(3) of this section
        for a fiscal year, the Secretary shall set aside $500,000 for
        such''; and
            (2) by striking paragraphs (2) and (3) and inserting the
        following:
            ``(2) Railway-highway crossing hazard elimination in high
        speed rail corridors.--
                    ``(A) In general.--Before making an apportionment of
                funds under subsection (b)(3) for a fiscal year, the
                Secretary shall set aside $5,250,000 of the funds made
                available for the surface transportation program for the
                fiscal year for elimination of hazards of railway-
                highway crossings.
                    ``(B) Eligible corridors.--Subject to subparagraph
                (E), funds made available under subparagraph (A) shall
                be expended for projects in--
                          ``(i) 5 railway corridors selected by the
                      Secretary in accordance with this subsection (as
                      in effect on the day before the date of enactment
                      of this clause);
                          ``(ii) 3 railway corridors selected by the
                      Secretary in accordance with subparagraphs (C) and
                      (D);
                          ``(iii) a Gulf Coast high speed railway
                      corridor (as designated by the Secretary);
                          ``(iv) a Keystone high speed railway corridor
                      from Philadelphia to Harrisburg, Pennsylvania; and
                          ``(v) an Empire State railway corridor from
                      New York City to Albany to Buffalo, New York.
                    ``(C) Required inclusion of high speed rail lines.--
                A corridor selected by the Secretary under subparagraph
                (B) shall include rail lines where railroad speeds of 90
                miles or more per hour are occurring or can reasonably
                be expected to occur in the future.

[[Page 112 STAT. 123]]

                    ``(D) Considerations in corridor selection.--In
                selecting corridors under subparagraph (B), the
                Secretary shall consider--
                          ``(i) projected rail ridership volume in each
                      corridor;
                          ``(ii) the percentage of each corridor over
                      which a train will be capable of operating at its
                      maximum cruise speed taking into account such
                      factors as topography and other traffic on the
                      line;
                          ``(iii) projected benefits to nonriders such
                      as congestion relief on other modes of
                      transportation serving each corridor (including
                      congestion in heavily traveled air passenger
                      corridors);
                          ``(iv) the amount of State and local financial
                      support that can reasonably be anticipated for the
                      improvement of the line and related facilities;
                      and
                          ``(v) the cooperation of the owner of the
                      right-of-way that can reasonably be expected in
                      the operation of high speed rail passenger service
                      in each corridor.
                    ``(E) Certain improvements.--Not less than $250,000
                of such set-aside shall be available per fiscal year for
                eligible improvements to the Minneapolis/St. Paul-
                Chicago segment of the Midwest High Speed Rail Corridor.
                    ``(F) Authorization of appropriations.--There is
                authorized to be appropriated $15,000,000 for each of
                fiscal years 1999 through 2003 to carry out this
                subsection.''.

    (d) Certification of Apportionments.--Section 104(e) of such title
is amended-- <>
            (1) by inserting ``Certification of Apportionments.--''
        after ``(e)'';
            (2) by inserting ``(1) In general.--'' before ``On October
        1'';
            (3) by striking the first parenthetical phrase;
            (4) by striking ``and research'' the first place it appears;
            (5) by striking the second sentence;
            (6) by adding at the end the following:
            ``(2) Notice to states.--If the Secretary has not made an
        apportionment under section 104, 144, or 157 by the 21st day of
        a fiscal year beginning after September 30, 1998, the Secretary
        shall transmit, by such 21st day, to the Committee on
        Transportation and Infrastructure of the House of
        Representatives and the Committee on Environment and Public
        Works of the Senate a written statement of the reason for not
        making such apportionment in a timely manner.''; and
            (7) by indenting paragraph (1) (as designated by paragraph
        (2) of this subsection) and aligning such paragraph (1) with
        paragraph (2) of such section (as added by paragraph (6) of this
        subsection).

    (e) Metropolitan Planning Set-Aside.--Section 104(f) of such title
is amended--
            (1) in paragraph (1) by striking ``Interstate construction
        and Interstate substitute programs'' and inserting
        ``recreational trails program''; and
            (2) in paragraph (3) by striking ``120(j) of this title''
        and inserting ``120(b)''.

    (f) Recreational Trails Program.--Section 104(h) of such title is
amended to read as follows:
    ``(h) Recreational Trails Program.--

[[Page 112 STAT. 124]]

            ``(1) Administrative costs.--Whenever an apportionment is
        made of the sums authorized to be appropriated to carry out the
        recreational trails program under section 206, the Secretary
        shall deduct an amount, not to exceed 1\1/2\ percent of the sums
        authorized, to cover the cost to the Secretary for
        administration of and research and technical assistance under
        the recreational trails program and for administration of the
        National Recreational Trails Advisory Committee. The Secretary
        may enter into contracts with for-profit organizations or
        contracts, partnerships, or cooperative agreements with other
        government agencies, institutions of higher learning, or
        nonprofit organizations to perform these tasks.
            ``(2) Apportionment to the states.--After making the
        deduction authorized by paragraph (1) of this subsection, the
        Secretary shall apportion the remainder of the sums authorized
        to be appropriated for expenditure on the recreational trails
        program for each fiscal year, among the States in the following
        manner:
                    ``(A) 50 percent of that amount shall be apportioned
                equally among eligible States.
                    ``(B) 50 percent of that amount shall be apportioned
                among eligible States in amounts proportionate to the
                degree of non-highway recreational fuel use in each of
                those States during the preceding year.
            ``(3) Eligible state defined.--In this section, the term
        `eligible State' means a State that meets the requirements of
        section 206(c).''.

    (g) Audits of Highway Trust Fund.--Section 104 of such title is
amended <>  by striking subsection (i) and inserting
the following:

    ``(i) Audits of Highway Trust Fund.--From administrative funds
deducted under subsection (a), the Secretary may reimburse the Office of
Inspector General of the Department of Transportation for the conduct of
annual audits of financial statements in accordance with section 3521 of
title 31.''.
    (h) Report on Obligations.--Section 104 of such title is amended by
striking subsection (j) and inserting the following:
    ``(j) Report to Congress.--The Secretary shall submit to Congress a
report for each fiscal year on--
            ``(1) the amount obligated, by each State, for Federal-aid
        highways and highway safety construction programs during the
        preceding fiscal year;
            ``(2) the balance, as of the last day of the preceding
        fiscal year, of the unobligated apportionment of each State by
        fiscal year under this section and sections 105 and 144;
            ``(3) the balance of unobligated sums available for
        expenditure at the discretion of the Secretary for such highways
        and programs for the fiscal year; and
            ``(4) the rates of obligation of funds apportioned or set
        aside under this section and sections 105, 133, and 144,
        according to--
                    ``(A) program;
                    ``(B) funding category or subcategory;
                    ``(C) type of improvement;
                    ``(D) State; and

[[Page 112 STAT. 125]]

                    ``(E) sub-State geographic area, including urbanized
                and rural areas, on the basis of the population of each
                such area.''.

    (i) Transfer of Highway and Transit Funds.--Section 104 of such
title is amended <>  by inserting after subsection
(j) the following:

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

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

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

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

[[Page 112 STAT. 126]]

                          (iii) in paragraph (1) (as so redesignated)--
                                    (I) by striking ``After the first
                                year'' and inserting ``In general''; and
                                    (II) by striking ``104(b)(2),
                                104(b)(5), and 104(b)(6)'' and inserting
                                ``104(b)(3), and 104(b)(4)''; and
                          (iv) in paragraph (2) (as redesignated by
                      clause (ii)) by striking ``paragraphs (1) and (2)
                      of this subsection'' and inserting ``paragraph
                      (1)''; and
                    (B) by striking subsection (b) and inserting the
                following:

    ``(b) Effect of Withholding of Funds.--No funds withheld under this
section from apportionment to any State after September 30, 1988, shall
be available for apportionment to that State.''.
            (3)(A) Section 115(b)(1) of such title is amended <>  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.--

[[Page 112 STAT. 127]]

            (1) In general.--Notwithstanding any other provision of law
        and subject to section 2(c) of the Surface Transportation
        Extension Act of 1997, the Secretary shall ensure that the total
        apportionments for a State (other than Massachusetts) for fiscal
        year 1998 made under the Transportation Equity Act for the 21st
        Century (including amendments made by such Act) shall be reduced
        by the amount apportioned to such State (other than
        Massachusetts) under section 1003(d)(1) of the Intermodal
        Surface Transportation Efficiency Act of 1991.
            (2) Repayment of transferred funds.--The Secretary shall
        ensure that any apportionments made to a State for fiscal year
        1998 and adjusted under paragraph (1) shall first be used to
        restore in accordance with section 3(c) of the Surface
        Transportation Extension Act of 1997 any funds that a State
        transferred under section 3 of such Act.
            (3) Insufficient funds for repayment.--If a State has
        insufficient funds apportioned in fiscal year 1998 under the
        Transportation Equity Act for the 21st Century (including
        amendments made by such Act) to make the adjustment required by
        paragraph (1), then the Secretary shall make an adjustment to
        any funds apportioned to such State in fiscal year 1999.
            (4) Allocated programs.--Notwithstanding any other provision
        of law, amounts made available for fiscal year 1998 by the
        Transportation Equity Act for the 21st Century (including
        amendments made by such Act) for a program that is continued by
        both of sections 4, 5, 6, and 7 of the Surface Transportation
        Extension Act of 1997 (including amendments made by such
        sections) and the Transportation Equity Act for the 21st Century
        (including amendments made by such Act) shall be reduced by the
        amount made available by such sections 4, 5, 6, and 7 for such
        programs.
            (5) Treatment of STEA obligation authority.--The amount of
        obligation authority made available under section 2(e) of the
        Surface Transportation Extension Act of 1997 shall be considered
        to be an amount of obligation authority made available for
        fiscal year 1998 under section 1102(a) of this Act.

    (n) <>  State Defined.--For the purposes of
apportioning funds under sections 104, 105, 144, and 206, the term
``State'' means any of the 50 States and the District of Columbia.

SEC. 1104. MINIMUM GUARANTEE.

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

``Sec. 105. Minimum guarantee

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

[[Page 112 STAT. 128]]

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

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

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

[[Page 112 STAT. 129]]

                    ``(A) the amount of funds apportioned to each State
                for each program referred to in subsection (a) for a
                fiscal year; bears to
                    ``(B) the total amount of funds apportioned to all
                States for such program for such fiscal year.
            ``(2) Remaining distribution.--The Secretary shall apportion
        the remainder of funds made available under this section to the
        States in accordance with section 104(b)(3); except that
        requirements of paragraphs (1), (2), and (3) of section 133(d)
        shall not apply to amounts apportioned pursuant to this
        paragraph.

    ``(d) Authorization.--There are authorized to be appropriated out of
the Highway Trust Fund (other than the Mass Transit Account) such sums
as may be necessary to carry out this section for each of fiscal years
1998 through 2003.
    ``(e) Special Rule.--If in any of fiscal years 1999 through 2003,
the amount authorized under subsection (d) is more than 30 percent
higher than the amount authorized under subsection (d) in fiscal year
1998, the Secretary shall use the apportionment factors under sections
104 and 144 as in effect on the date of enactment of this section.
    ``(f) Guarantee of 90.5 Return.--
            ``(1) In general.--Before making any apportionment under
        this title for each of fiscal years 1999 through 2003, the
        Secretary, subject to paragraph (2), shall adjust the
        percentages in the table in subsection (b) to reflect the
        estimated percentage of estimated tax payments attributable to
        highway users in each State paid into the Highway Trust Fund
        (other than the Mass Transit Account) in the latest fiscal year
        for which data is available, to ensure that no State's return
        from such Trust Fund is less than 90.5 percent.
            ``(2) Eligibility threshold for initial adjustment.--The
        Secretary may make an adjustment under paragraph (1) for a State
        for a fiscal year only if the State's return from the Highway
        Trust Fund (other than the Mass Transit Account) for the
        preceding fiscal year was equal to or less than 90.5 percent.
            ``(3) Conforming adjustments.--After making any adjustments
        under paragraph (1) for a fiscal year, the Secretary shall
        adjust the remaining percentages in the table set forth in
        subsection (b) to ensure that the total of the percentages in
        the table do not exceed 100 percent for such fiscal year.
            ``(4) Limitation on adjustments.--After making any
        adjustments under paragraph (3) for a fiscal year, the Secretary
        shall determine whether or not any State's return from the
        Highway Trust Fund (other than the Mass Transit Account) is less
        than 90.5 percent as a result of such adjustments and shall
        adjust the percentages in the table for such fiscal year
        accordingly. Adjustments of the percentages in the table under
        this paragraph may not result in the total of such percentages
        exceeding 100 percent.''.

    (b) Conforming Amendment.--The analysis for chapter 1 of such title
is amended by striking the item relating to section 105 and inserting
the following:

``105. Minimum guarantee.''.

[[Page 112 STAT. 130]]

SEC. 1105. REVENUE ALIGNED BUDGET AUTHORITY.

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

``Sec. 110. Revenue aligned budget authority

    ``(a) Determination of Amount.--On October 15 of fiscal year 1999,
and each fiscal year thereafter, the Secretary shall allocate an amount
of funds equal to the amount determined pursuant to section
251(b)(1)(B)(I)(cc) of the Balanced Budget and Emergency Deficit Control
Act of 1985 (2 U.S.C. 901(b)(2)(B)(I)(cc)).
    ``(b) General Distribution.--The Secretary shall--
            ``(1) determine the ratio that--
                    ``(A) the sums authorized to be appropriated from
                the Highway Trust Fund (other than the Mass Transit
                Account) for each of the for Federal-aid highway and
                highway safety construction programs (other than the
                minimum guarantee program) for which funds are allocated
                from such Trust Fund by the Secretary under this title
                and the Transportation Equity Act for the 21st Century
                for a fiscal year, bears to
                    ``(B) the total of all sums authorized to be
                appropriated from such Trust Fund for such programs for
                such fiscal year;
            ``(2) multiply the ratio determined under paragraph (1) by
        the total amount of funds to be allocated under subsection (a)
        for such fiscal year;
            ``(3) allocate the amount determined under paragraph (2)
        among such programs in the ratio that--
                    ``(A) the sums authorized to be appropriated from
                such Trust Fund for each of such programs for such
                fiscal year, bears to
                    ``(B) the sums authorized to be appropriated from
                such Trust Fund for all such programs for such fiscal
                year; and
            ``(4) allocate the remainder of the funds to be allocated
        under subsection (a) for such fiscal year to the States in the
        ratio that--
                    ``(A) the total of all funds authorized to be
                appropriated from such Trust Fund for Federal-aid
                highway and highway safety construction programs that
                are apportioned to each State for such fiscal year but
                for this section, bears to
                    ``(B) the total of all funds authorized to be
                appropriated from such Trust Fund for such programs that
                are apportioned to all States for such fiscal year but
                for this section.

    ``(c) State Programmatic Distribution.--Of the funds to be
apportioned to each State under subsection (b)(4) for a fiscal year, the
Secretary shall ensure that such funds are apportioned for the
Interstate Maintenance program, the National Highway System program, the
bridge program, the surface transportation program, and the congestion
mitigation air quality improvement program in the same ratio that each
State is apportioned funds for such programs for such fiscal year but
for this section.
    ``(d) Authorization of Appropriations.--There are authorized to be
appropriated from the Highway Trust Fund (other than the Mass Transit
Account) such sums as may be necessary to carry out this section for
fiscal years beginning after September 30, 1998.''.

[[Page 112 STAT. 131]]

    (b) Conforming Amendment.--The analysis for chapter 1 of such title
is amended by striking the item relating to section 110 and inserting
the following:

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

SEC. 1106. FEDERAL-AID SYSTEMS. <>

    (a) Administration of National Highway System and Interstate
Maintenance Program.--The Secretary shall administer the National
Highway System program and the Interstate Maintenance program as a
combined program for purposes of allowing States maximum flexibility.
References in this Act and title 23, United States Code, shall not be
affected by such consolidation.
    (b) Federal-Aid Systems.--Section 103 of title 23, United States
Code, is amended to read as follows:

``Sec. 103. Federal-aid systems

    ``(a) In General.--For the purposes of this title, the Federal-aid
systems are the Interstate System and the National Highway System.
    ``(b) National Highway System.--
            ``(1) Description.--The National Highway System consists of
        the highway routes and connections to transportation facilities
        depicted on the map submitted by the Secretary to Congress with
        the report entitled `Pulling Together: The National Highway
        System and its Connections to Major Intermodal Terminals' and
        dated May 24, 1996. The system shall--
                    ``(A) serve major population centers, international
                border crossings, ports, airports, public transportation
                facilities, and other intermodal transportation
                facilities and other major travel destinations;
                    ``(B) meet national defense requirements; and
                    ``(C) serve interstate and interregional travel.
            ``(2) Components.--The National Highway System described in
        paragraph (1) consists of the following:
                    ``(A) The Interstate System described in subsection
                (c).
                    ``(B) Other urban and rural principal arterial
                routes.
                    ``(C) Other connector highways (including toll
                facilities) that provide motor vehicle access between
                arterial routes on the National Highway System and a
                major intermodal transportation facility.
                    ``(D) A strategic highway network consisting of a
                network of highways that are important to the United
                States strategic defense policy and that provide defense
                access, continuity, and emergency capabilities for the
                movement of personnel, materials, and equipment in both
                peacetime and wartime. The highways may be highways on
                or off the Interstate System and shall be designated by
                the Secretary in consultation with appropriate Federal
                agencies and the States.
                    ``(E) Major strategic highway network connectors
                consisting of highways that provide motor vehicle access
                between major military installations and highways that
                are part of the strategic highway network. The highways
                shall be designated by the Secretary in consultation
                with appropriate Federal agencies and the States.
            ``(3) Maximum mileage.--The mileage of highways on the
        National Highway System shall not exceed 178,250 miles.

[[Page 112 STAT. 132]]

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

[[Page 112 STAT. 133]]

                    ``(H) Capital and operating costs for traffic
                monitoring, management, and control facilities and
                programs.
                    ``(I) Fringe and corridor parking facilities.
                    ``(J) Carpool and vanpool projects.
                    ``(K) Bicycle transportation and pedestrian walkways
                in accordance with section 217.
                    ``(L) Development, establishment, and implementation
                of management systems under section 303.
                    ``(M) In accordance with all applicable Federal law
                (including regulations), participation in natural
                habitat and wetland mitigation efforts related to
                projects funded under this title, which may include
                participation in natural habitat and wetland mitigation
                banks, contributions to statewide and regional efforts
                to conserve, restore, enhance, and create natural
                habitats and wetland, and development of statewide and
                regional natural habitat and wetland conservation and
                mitigation plans, including any such banks, efforts, and
                plans authorized under the Water Resources Development
                Act of 1990 (Public Law 101-640) (including crediting
                provisions). Contributions to the mitigation efforts
                described in the preceding sentence may take place
                concurrent with or in advance of project construction;
                except that contributions in advance of project
                construction may occur only if the efforts are
                consistent with all applicable requirements of Federal
                law (including regulations) and State transportation
                planning processes. With respect to participation in a
                natural habitat or wetland mitigation effort related to
                a project funded under this title that has an impact
                that occurs within the service area of a mitigation
                bank, preference shall be given, to the maximum extent
                practicable, to the use of the mitigation bank if the
                bank contains sufficient available credits to offset the
                impact and the bank is approved in accordance with the
                Federal Guidance for the Establishment, Use and
                Operation of Mitigation Banks (60 Fed. Reg. 58605
                (November 28, 1995)) or other applicable Federal law
                (including regulations).
                    ``(N) Publicly-owned intracity or intercity bus
                terminals.
                    ``(O) Infrastructure-based intelligent
                transportation systems capital improvements.
                    ``(P) In the Virgin Islands, Guam, American Samoa,
                and the Commonwealth of the Northern Mariana Islands,
                any project eligible for assistance under section 133,
                any airport, and any seaport.

    ``(c) Interstate System.--
            ``(1) Description.--
                    ``(A) In general.--The Dwight D. Eisenhower National
                System of Interstate and Defense Highways within the
                United States (including the District of Columbia and
                Puerto Rico) consists of highways designed, located, and
                selected in accordance with this paragraph.
                    ``(B) Design.--
                          ``(i) In general.--Except as provided in
                      clause (ii), highways on the Interstate System
                      shall be designed in accordance with the standards
                      of section 109(b).

[[Page 112 STAT. 134]]

                          ``(ii) Exception.--Highways on the Interstate
                      System in Alaska and Puerto Rico shall be designed
                      in accordance with such geometric and construction
                      standards as are adequate for current and probable
                      future traffic demands and the needs of the
                      locality of the highway.
                    ``(C) Location.--Highways on the Interstate System
                shall be located so as--
                          ``(i) to connect by routes, as direct as
                      practicable, the principal metropolitan areas,
                      cities, and industrial centers;
                          ``(ii) to serve the national defense; and
                          ``(iii) to the maximum extent practicable, to
                      connect at suitable border points with routes of
                      continental importance in Canada and Mexico.
                    ``(D) Selection of routes.--To the maximum extent
                practicable, each route of the Interstate System shall
                be selected by joint action of the State transportation
                departments of the State in which the route is located
                and the adjoining States, in cooperation with local and
                regional officials, and subject to the approval of the
                Secretary.
            ``(2) Maximum mileage.--The mileage of highways on the
        Interstate System shall not exceed 43,000 miles, exclusive of
        designations under paragraph (4).
            ``(3) Modifications.--The Secretary may approve or require
        modifications to the Interstate System in a manner consistent
        with the policies and procedures established under this
        subsection.
            ``(4) Interstate system designations.--
                    ``(A) Additions.--If the Secretary determines that a
                highway on the National Highway System meets all
                standards of a highway on the Interstate System and that
                the highway is a logical addition or connection to the
                Interstate System, the Secretary may, upon the
                affirmative recommendation of the State or States in
                which the highway is located, designate the highway as a
                route on the Interstate System.
                    ``(B) Designations as future interstate system
                routes.--
                          ``(i) In general.--If the Secretary determines
                      that a highway on the National Highway System
                      would be a logical addition or connection to the
                      Interstate System and would qualify for
                      designation as a route on the Interstate System
                      under subparagraph (A) if the highway met all
                      standards of a highway on the Interstate System,
                      the Secretary may, upon the affirmative
                      recommendation of the State or States in which the
                      highway is located, designate the highway as a
                      future Interstate System route.
                          ``(ii) Written agreement of states.--A
                      designation under clause (i) shall be made only
                      upon the written agreement of the State or States
                      described in such clause that the highway will be
                      constructed to meet all standards of a highway on
                      the Interstate System by the date that is 12 years
                      after the date of the agreement.
                          ``(iii) Removal of designation.--

[[Page 112 STAT. 135]]

                                    ``(I) In general.--If the State or
                                States described in clause (i) have not
                                substantially completed the construction
                                of a highway designated under this
                                subparagraph within the time provided
                                for in the agreement between the
                                Secretary and the State or States under
                                clause (ii), the Secretary shall remove
                                the designation of the highway as a
                                future Interstate System route.
                                    ``(II) Effect of removal.--Removal
                                of the designation of a highway under
                                subclause (I) shall not preclude the
                                Secretary from designating the highway
                                as a route on the Interstate System
                                under subparagraph (A) or under any
                                other provision of law providing for
                                addition to the Interstate System.
                          ``(iv) Prohibition on referral as interstate
                      system route.--No law, rule, regulation, map,
                      document, or other record of the United States, or
                      of any State or political subdivision of a State,
                      shall refer to any highway designated as a future
                      Interstate System route under this subparagraph,
                      nor shall any such highway be signed or marked, as
                      a highway on the Interstate System until such time
                      as the highway is constructed to the geometric and
                      construction standards for the Interstate System
                      and has been designated as a route on the
                      Interstate System.
                    ``(C) Financial responsibility.--Except as provided
                in this title, the designation of a highway under this
                paragraph shall create no additional Federal financial
                responsibility with respect to the highway.

    ``(d) Transfer of Interstate Construction Funds.--
            ``(1) Interstate construction funds not in surplus.--
                    ``(A) In general.--Upon application by a State and
                approval by the Secretary, the Secretary may transfer to
                the apportionment of the State under section 104(b)(1)
                any amount of funds apportioned to the State under
                section 104(b)(5)(A) (as in effect on the day before the
                date of enactment of the Transportation Equity Act for
                the 21st Century), if the amount does not exceed the
                Federal share of the costs of construction of segments
                of the Interstate System in the State included in the
                most recent Interstate System cost estimate.
                    ``(B) Effect of transfer.--Upon transfer of an
                amount under subparagraph (A), the construction on which
                the amount is based, as included in the most recent
                Interstate System cost estimate, shall not be eligible
                for funding under section 104(b)(5)(A) (as in effect on
                the day before the date of enactment of the
                Transportation Equity Act for the 21st Century) or
                118(c).
            ``(2) Surplus interstate construction funds.--Upon
        application by a State and approval by the Secretary, the
        Secretary may transfer to the apportionment of the State under
        section 104(b)(1) any amount of surplus funds apportioned to the
        State under section 104(b)(5)(A) (as in effect on the day before
        the date of enactment of the Transportation Equity Act for the
        21st Century), if the State has fully financed all

[[Page 112 STAT. 136]]

        work eligible under the most recent Interstate System cost
        estimate.
            ``(3) Applicability of certain laws.--Funds transferred
        under this subsection shall be subject to the laws (including
        regulations, policies, and procedures) relating to the
        apportionment to which the funds are transferred.''.

    (b) <>  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.

[[Page 112 STAT. 137]]

            (3) Identification of impediments.--If the Secretary
        determines on the basis of the review that there are impediments
        to improving the connectors serving intermodal facilities
        referred to in paragraph (1), the Secretary shall identify such
        impediments and make any appropriate recommendations as part of
        the Secretary's report to Congress under this subsection.

SEC. 1107. INTERSTATE MAINTENANCE PROGRAM.

    (a) In General.--Section 119 of title 23, United States Code, is
amended--
            (1) by striking subsection (a) and inserting the following:

    ``(a) In General.--
            ``(1) Projects.--The Secretary may approve projects for
        resurfacing, restoring, rehabilitating, and reconstructing--
                    ``(A) routes on the Interstate System designated
                under section 103(c)(1) and, in Alaska and Puerto Rico,
                under section 103(c)(4)(A);
                    ``(B) routes on the Interstate System designated
                before the date of enactment of the Transportation
                Equity Act for the 21st Century under subsections (a)
                and (b) of section 139 (as in effect on the day before
                the date of enactment of such Act); and
                    ``(C) any segments that become part of the
                Interstate System under section 1105(e)(5) of the
                Intermodal Surface Transportation Efficiency Act of
                1991.
            ``(2) Toll roads.--The Secretary may approve a project
        pursuant to this subsection on a toll road only if such road is
        subject to a Secretarial agreement provided for in section 129
        or continued in effect by section 1012(d) of the Intermodal
        Surface Transportation Efficiency Act of 1991 (105 Stat. 1939)
        and not voided by the Secretary under section 120(c) of the
        Surface Transportation and Uniform Relocation Assistance Act of
        1987 (101 Stat. 159).
            ``(3) Funding.--Sums authorized to be appropriated to carry
        out this section shall be out of the Highway Trust Fund and
        shall be apportioned in accordance with section 104(b)(4).'';
            (2) by striking subsections (b), (c), and (e); and
            (3) by redesignating subsections (d), (f), and (g) as
        subsections (b), (c), and (d), respectively.

    (b) Set-Asides for Interstate Discretionary Projects.--Section
118(c) of such title is amended to read as follows:
    ``(c) Set-Asides for Interstate Discretionary Projects.--
            ``(1) In general.--Before any apportionment is made under
        section 104(b)(4), the Secretary shall set aside $50,000,000 in
        fiscal year 1998 and $100,000,000 in each of fiscal years 1999
        through 2003 for obligation by the Secretary for projects for
        resurfacing, restoring, rehabilitating, and reconstructing any
        route or portion thereof on the Interstate System (other than
        any highway designated as a part of the Interstate System under
        section 139 (as in effect on the day before the date of
        enactment of the Transportation Equity Act for the 21st
        Century)) and any toll road on the Interstate System not subject
        to an agreement under section 119(e) (as in effect on December
        17, 1991).
            ``(2) Selection criteria.--The amounts set aside under
        paragraph (1) shall be made available by the Secretary to

[[Page 112 STAT. 138]]

        any State applying for such funds if the Secretary determines
        that--
                    ``(A) the State has obligated or demonstrates that
                it will obligate in the fiscal year all of its
                apportionments under section 104(b)(4) other than an
                amount that, by itself, is insufficient to pay the
                Federal share of the cost of a project for resurfacing,
                restoring, rehabilitating, and reconstructing the
                Interstate System that has been submitted by the State
                to the Secretary for approval; and
                    ``(B) the applicant is willing and able to--
                          ``(i) obligate the funds within 1 year of the
                      date the funds are made available;
                          ``(ii) apply the funds to a ready-to-commence
                      project; and
                          ``(iii) in the case of construction work,
                      begin work within 90 days after obligation.
            ``(3) Priority consideration for certain projects.--In
        selecting projects to fund under paragraph (1), the Secretary
        shall give priority consideration to any project the cost of
        which exceeds $10,000,000 on any high volume route in an urban
        area or a high truck-volume route in a rural area.
            ``(4) Period of availability of discretionary funds.--Sums
        made available pursuant to this subsection shall remain
        available until expended.''.

    (c) Interstate Needs.-- <>
            (1) Study.--The Secretary shall conduct, in cooperation with
        States and affected metropolitan planning organizations, a study
        to determine--
                    (A) the expected condition of the Interstate System
                over the next 10 years and the needs of States and
                metropolitan planning organizations to reconstruct and
                improve the Interstate System;
                    (B) the resources necessary to maintain and improve
                the Interstate System; and
                    (C) the means to ensure that the Nation's surface
                transportation program can--
                          (i) address the needs identified in
                      subparagraph (A); and
                          (ii) allow for States to address any
                      extraordinary needs.
            (2) Report.--Not later than January 1, 2000, the Secretary
        shall transmit to Congress a report on the results of the study.

SEC. 1108. SURFACE TRANSPORTATION PROGRAM.

    (a) Eligibility of Projects.--Section 133(b) of title 23, United
States Code, is amended--
            (1) in paragraph (1) by inserting after ``magnesium
        acetate'' the following: ``, sodium acetate/formate, or other
        environmentally acceptable, minimally corrosive anti-icing and
        de-icing compositions'';
            (2) in paragraph (2) by striking ``and publicly owned
        intracity or intercity bus terminals and facilities'' and
        inserting ``, including vehicles and facilities, whether
        publicly or privately owned, that are used to provide intercity
        passenger service by bus'';
            (3) in paragraph (3)--

[[Page 112 STAT. 139]]

                    (A) by striking ``and bicycle'' and inserting
                ``bicycle''; and
                    (B) by inserting before the period at the end the
                following: ``, and the modification of public sidewalks
                to comply with the Americans with Disabilities Act of
                1990 (42 U.S.C. 12101 et seq.)'';
            (4) in paragraph (4) by inserting ``infrastructure'' after
        ``safety'';
            (5) in paragraph (9) by striking ``section 108(f)(1)(A)
        (other than clauses (xii) and (xvi)) of the Clean Air Act'' and
        inserting ``section 108(f)(1)(A) (other than clause (xvi)) of
        the Clean Air Act (42 U.S.C. 7408(f)(1)(A))'';
            (6) in paragraph (11)--
                    (A) in the first sentence--
                          (i) by inserting ``natural habitat and'' after
                      ``participation in'' each place it appears;
                          (ii) by striking ``enhance and create'' and
                      inserting ``enhance, and create natural habitats
                      and''; and
                          (iii) by inserting ``natural habitat and''
                      before ``wetlands conservation''; and
                    (B) by adding at the end the following: ``With
                respect to participation in a natural habitat or wetland
                mitigation effort related to a project funded under this
                title that has an impact that occurs within the service
                area of a mitigation bank, preference shall be given, to
                the maximum extent practicable, to the use of the
                mitigation bank if the bank contains sufficient
                available credits to offset the impact and the bank is
                approved in accordance with the Federal Guidance for the
                Establishment, Use and Operation of Mitigation Banks (60
                Fed. Reg. 58605 (November 28, 1995)) or other applicable
                Federal law (including regulations).''; and
            (7) by adding at the end the following:
            ``(13) Infrastructure-based intelligent transportation
        systems capital improvements.
            ``(14) Environmental restoration and pollution abatement
        projects (including the retrofit or construction of storm water
        treatment systems) to address water pollution or environmental
        degradation caused or contributed to by transportation
        facilities, which projects shall be carried out when the
        transportation facilities are undergoing reconstruction,
        rehabilitation, resurfacing, or restoration; except that the
        expenditure of funds under this section for any such
        environmental restoration or pollution abatement project shall
        not exceed 20 percent of the total cost of the reconstruction,
        rehabilitation, resurfacing, or restoration project.''.

    (b) Transportation Enhancement Activities.--Section 133 of such
title is amended-- <>
            (1) in subsection (d)(3)(D) by striking ``any State'' and
        all that follows through the period at the end and inserting
        ``Hawaii and Alaska''; and
            (2) in subsection (e)--
                    (A) in paragraph (3)(B)(i) by striking ``if the
                Secretary'' and all that follows through ``activities'';
                and
                    (B) in paragraph (5) by adding at the end the
                following:
                    ``(C) Cost sharing.--

[[Page 112 STAT. 140]]

                          ``(i) Required aggregate non-federal share.--
                      The average annual non-Federal share of the total
                      cost of all projects to carry out transportation
                      enhancement activities in a State for a fiscal
                      year shall be not less than the non-Federal share
                      authorized for the State under section 120(b).
                          ``(ii) Innovative financing.--Subject to
                      clause (i), notwithstanding section 120--
                                    ``(I) funds from other Federal
                                agencies and the value of other
                                contributions (as determined by the
                                Secretary) may be credited toward the
                                non-Federal share of the costs of a
                                project to carry out a transportation
                                enhancement activity;
                                    ``(II) the non-Federal share for
                                such a project may be calculated on a
                                project, multiple-project, or program
                                basis; and
                                    ``(III) the Federal share of the
                                cost of an individual project to which
                                subclause (I) or (II) applies may be up
                                to 100 percent.''.

    (c) Program Approval.--Section 133(e) of such title is <> amended by striking paragraph (2) and inserting the
following:
            ``(2) Program approval.--
                    ``(A) Submission of project agreement.--For each
                fiscal year, each State shall submit a project agreement
                that--
                          ``(i) <>  certifies that
                      the State will meet all the requirements of this
                      section; and
                          ``(ii) <>  notifies the