DESIGN BUILD.

SEC. 1503. DESIGN BUILD. Section 112(b)(3) of title 23, United States Code, is amended—(1) by redesignating subparagraph (D) as subparagraph (E); and(2) by striking subparagraph (C) and inserting the following:“(C) Qualified projects.—A qualified project referred to in subparagraph (A) is a project under this chapter (including intermodal projects) for which the Secretary has approved the use of design-build contracting under criteria specified in regulations issued by the Secretary.“(D) Regulatory process.—Not later than 90 days after the date of enactment of the SAFETEA–LU, the Secretary shall issue revised regulations under section 1307(c) of the Transportation Equity Act for 21st Century (23 U.S.C. 112 note; 112 Stat. 230) that—119 STAT. 1239 “(i) do not preclude a State transportation department or local transportation agency, prior to compliance with section 102 of the National Environmental Policy Act of 1969 (42 U.S.C. 4332), from—“(I) issuing requests for proposals;“(II) proceeding with awards of design-build contracts; or“(III) issuing notices to proceed with preliminary design work under design-build contracts;“(ii) require that the State transportation department or local transportation agency receive concurrence from the Secretary before carrying out an activity under clause (i); and“(iii) preclude the design-build contractor from proceeding with final design or construction of any permanent improvement prior to completion of the process under such section 102.”.