SURFACE TRANSPORTATION PROGRAM.

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)— 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.— 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 Secretary of the amount of obligations needed to carry out the program under this section. “(B) Request for adjustments of amounts.— Each State shall request from the Secretary such adjustments to the amount of obligations referred to in subparagraph (A)(ii) as the State determines to be necessary. “(C) Effect of approval by the secretary.— Approval by the Secretary of a project agreement under subparagraph (A) shall be deemed a contractual obligation of the United States to pay surface transportation program funds made available under this title.”. (d) Payments.— Section 133(e)(3)(A) of such title is amended by striking the second sentence. (e) Surface Transportation Program Obligations in Urban Areas.— Section 133 of such title is amended to read as follows: “(f) Obligation Authority.— “(1) In general.— A State that is required to obligate in an urbanized area with an urbanized area population of over 200,000 individuals under subsection (d) funds apportioned to the State under section 104(bX3) shall make available during the period of fiscal years 1998 through 2000 and the period of fiscal years 2001 through 2003 an amount of obligation authority distributed to the State for Federal-aid highways and highway safety construction programs for use in the area that is equal to the amount obtained by multiplying— “(A) the aggregate amount of funds that the State is required to obligate in the area under subsection (d) during the period; and “(B) the ratio that— 112 STAT. 141 “(i) the aggregate amount of obligation authority distributed to the State for Federal-aid highways and highway safety construction programs during the period; bears to “(ii) the total of the sums apportioned to the State for Federal-aid highways and highway safety construction programs (excluding sums not subject to an obligation limitation) during the period. “(2) Joint responsibility.— Each State, each affected metropolitan planning organization, and the Secretary shall jointly ensure compliance with paragraph (1).”. (f) Division of STP Funds for Areas of Less Than 5,000 Population.— (1) Special rule.— Notwithstanding section 133(c) of title 23, United States Code, and except as provided in paragraph (2), up to 15 percent of the amounts required to be obligated under section 133(d)(3)(B) of such title for each of fiscal years 1998 through 2003 may be obligated on roads functionally classified as minor collectors. (2) Suspension.— The Secretary may suspend the application of paragraph (1) if the Secretary determines that paragraph (1) is being used excessively. (g) Encouragement of Use of Youth Conservation or Service CORPS.— The Secretary shall encourage the States to enter into contracts and cooperative agreements with qualified youth conservation or service corps to perform appropriate transportation enhancement activities under chapter 1 of title 23, United States Code.