FEDERAL SHARE.

SEC. 1111. FEDERAL SHARE. (a) State-Determined Lower Federal Share.— Section 120 of title 23, United States Code, is amended— (1) in subsection (a)— (A) by striking “Except” and inserting the following: “(1) In general.— Except”; (B) by adding at the end the following: “(2) State-determined lower federal share.— In the case of any project subject to paragraph (1), a State may determine a lower Federal share than the Federal share determined under such paragraph.”; and (C) by aligning the remainder of the text of paragraph(1) (as designated by subparagraph (A) of this paragraph) with paragraph (2) of such subsection (as added by subparagraph (B) of this paragraph); and (2) in subsection (b) by adding at the end the following: “In the case of any project subject to this subsection, a State may determine a lower Federal share than the Federal share determined under the preceding sentences of this subsection.”. (b) Increased Federal Share for Certain Safety Projects.— The first sentence of section 120(c) of such title is amended by inserting “or transit vehicles” after “emergency vehicles”. (c) Credit for Non-Federal Share.— Section 120 of such title is amended by adding at the end the following: “(j) Credit for Non-Federal Share.— “(1) Eligibility.— A State may use as a credit toward the non-Federal share requirement for any funds made available to carry out this title (other than the emergency relief program authorized by section 125) or chapter 53 of title 49 toll revenues that are generated and used by public, quasi-public, and private agencies to build, improve, or maintain highways, bridges, or tunnels that serve the public purpose of interstate commerce. Such public, quasi-public, or private agencies shall have built, improved, or maintained such facilities without Federal funds. “(2) Maintenance of effort.— “(A) In general.— The credit for any non-Federal share provided under this subsection shall not reduce nor replace 112 STAT. 146State funds required to match Federal funds for any program under this title. “(B) Condition on receipt of credit.— To receive a credit under paragraph (1) for a fiscal year, a State shall enter into such agreement as the Secretary may require to ensure that the State will maintain its non-Federal transportation capital expenditures in such fiscal year at or above the average level of such expenditures for the preceding 3 fiscal years; except that if, for any 1 of the preceding 3 fiscal years, the non-Federal transportation capital expenditures of the State were at a level that was greater than 130 percent of the average level of such expenditures for the other 2 of the preceding 3 fiscal years, the agreement shall ensure that the State will maintain its non-Federal transportation capital expenditures in the fiscal year of the credit at or above the average level of such expenditures for the other 2 fiscal years. “(C) Transportation capital expenditures defined.— In subparagraph (B), the term ‘non-Federal transportation capital expenditures’ includes any payments made by the State for issuance of transportation-related bonds. “(3) Treatment.— “(A) Limitation on liability.— Use of a credit for a non-Federal share under this subsection that is received from a public, quasi-public, or private agency— “(i) shall not expose the agency to additional liability, additional regulation, or additional administrative oversight; and “(ii) shall not subject the agency to any additional Federal design standards or laws (including regulations) as a result of providing the non-Federal share other than those to which the agency is already subject. “(B) Chartered multistate agencies.— When a credit that is received from a chartered multistate agency is applied to a non-Federal share under this subsection, such credit shall be applied equally to all charter States.”. (d) Conforming Amendments.— Section 130(a) of such title is amended— (1) in the first sentence by striking “Except as provided in subsection (d) of section 120 of this title” and inserting “Subject to section 120”; and (2) in the second sentence by striking “except as provided in subsection (d) of section 120 of this title” and inserting “subject to section 120”.