REAL PROPERTY ACQUISITION AND CORRIDOR PRESERVATION.

SEC. 1301. REAL PROPERTY ACQUISITION AND CORRIDOR PRESERVATION. (a) Advance Acquisition of Real Property.— Section 108 of title 23, United States Code, is amended by striking the section heading and subsection (a) and inserting the following: “§ 108. Advance acquisition of real property “(a) In General.— “(1) Availability of funds.— For the purpose of facilitating the timely and economical acquisition of real property for a transportation improvement eligible for funding under this title, the Secretary, upon the request of a State, may make available, for the acquisition of real property, such funds apportioned to the State as may be expended on the transportation improvement, under such rules and regulations as the Secretary may issue. “(2) Construction.— The agreement between the Secretary and the State for the reimbursement of the cost of the real property shall provide for the actual construction of the transportation improvement within a period not to exceed 20 years following the fiscal year for which the request is made, unless the Secretary determines that a longer period is reasonable.” . (b) Credit for Acquired Lands.— Section 323(b) of such title is amended— (1) in the subsection heading, by striking “Donated ” and inserting “Acquired ”; (2) by striking paragraphs (1) and (2) and inserting the following: “(1) In general.— Notwithstanding any other provision of this title, the State share of the cost of a project with respect to which Federal assistance is provided from the Highway Trust Fund (other than the Mass Transit Account) may be credited in an amount equal to the fair market value of any land that— “(A) is lawfully obtained by the State or a unit of local government in the State; “(B) is incorporated into the project; “(C) is not land described in section 138; and “(D) the Secretary determines will not influence the environmental assessment of the project, including— “(i) the decision as to the need to construct the project; 112 STAT. 226 “(ii) the consideration of alternatives; and “(iii) the selection of a specific location. “(2) Establishment of fair market value.— The fair market value of land incorporated into a project and credited under paragraph (1) shall be established in the manner determined by the Secretary, except that— “(A) the fair market value shall not include any increase or decrease in the value of donated property caused by the project; and “(B) the fair market value of donated land shall be established as of the earlier of— “(i) the date on which the donation becomes effective; or “(ii) the date on which equitable title to the land vests in the State.” ; (3) in paragraph (3) by striking “agency of a Federal, State, or local government” and inserting “agency of the Federal Government”; and (4) in paragraph (4) by striking “to which the donation is applied”. (c) Crediting of Contributions by Units of Local Government Toward the State Share.— Section 323 of such title is amended by adding at the end the following: “(e) Crediting of Contributions by Units of Local Government Toward the State Share.— A contribution by a unit of local government of real property, funds, or material in connection with a project eligible for assistance under this title shall be credited against the State share of the project at the fair market value of the real property, funds, or material.” . (d) Conforming Amendments.— (1) Section 323 of such title is amended by striking the section heading and inserting the following: “§ 323. Donations and credits”. (2) The analysis for chapter 1 of such title is amended by striking the item relating to section 108 and inserting the following: “ 108. Advance acquisition of real property.”. (3) The analysis for chapter 3 of such title is amended by striking the item relating to section 323 and inserting the following: “323. Donations and credits.” .