SECTION 1. NATIONAL TRANSPORTATION SYSTEM.

    Section 103 of title 23, United States Code, is amended by adding 
the following:
    ``(j) National Transportation System.--
            ``(1) Purpose.--The purpose of the National Transportation 
        System is to provide a unified and interconnected system of 
        transportation facilities that will move people and goods 
        efficiently to promote mobility, economic productivity, 
        congestion relief, energy conservation, and air quality 
        improvement.
            ``(2) Components.--The National Transportation System shall 
        consist of the following:
                    ``(A) Public transportation corridors and systems.
                    ``(B) Intercity public and private transportation 
                corridors and systems.
                    ``(C) Major bus corridors.
                    ``(D) Major rail systems.
                    ``(E) The National Highway System.
                    ``(F) Airports.
                    ``(G) Ports and inland waterways.
                    ``(H) Passenger terminals.
                    ``(I) Ferry systems.
                    ``(J) Other major intermodal transportation 
                facilities.
            ``(3) Designation.--
                    ``(A) By secretary.--Not later than 2 years after 
                the date of the enactment of this subsection, the 
                Secretary shall submit to Congress the designation of 
                the National Transportation System. The submitted 
                designation shall be the National Transportation System 
                unless modified in accordance with this subsection or 
                by law.
                    ``(B) Basis.--The proposed system submitted by the 
                Secretary shall be based on designations submitted to 
                the Secretary by the States and the metropolitan 
                planning organizations under sections 134(g)(2) and 
                135(e) of this title.
                    ``(C) Limitations.--
                            ``(i) Nonattainment areas.--No proposed new 
                        route or facility shall be included on the 
                        National Transportation System in any area that 
                        is in nonattainment area for ozone or carbon 
                        monoxide under the Clean Air Act until it has 
                        been included in a metropolitan or State long-
                        range plan and transportation improvement 
                        program that has been demonstrated to be in 
                        conformity with a State implementation plan 
                        developed pursuant to the Clean Air Act.
                            ``(ii) NHS segment.--A segment of the 
                        National Highway System shall not be a part of 
                        the National Transportation System until it has 
                        been included in a metropolitan or State long-
                        range plan and transportation improvement 
                        program that has been demonstrated to be in 
                        conformity with a State implementation plan 
                        developed pursuant to the Clean Air Act.
                    ``(D) Modification.--States or metropolitan 
                planning organizations may request the addition or 
                deletion of National Transportation System components. 
                The Secretary shall make such modifications at least 
                once every 2 years unless they are determined not to be 
                in the public interest or promote the goals of the 
                National Transportation System.
            ``(4) Grants.--The Secretary is authorized to make grants 
        to pay 80 percent of the costs of development and 
        implementation of processes and procedures that facilitate the 
        goals of the National Transportation System, including 
        operating agreements, public-private partnerships, information 
        technologies such as traveler information systems, and 
        intelligent vehicle highway and transit systems.''.

SEC. 2. METROPOLITAN PLANNING.

    Section 134(g)(2)(A) of title 23, United States Code, is amended--
            (1) by inserting after ``transit,'' the following: 
        ``airport, port, inland waterway, railroad,''; and
            (2) by inserting after the first sentence the following: 
        ``Such transportation system shall serve as the National 
        Transportation System in that metropolitan area, unless the 
        Secretary determines that designating all or any portion of 
        such identified system as a part of the National Transportation 
        System would not be in the public interest or promote the goals 
        of the National Transportation System.''.

SEC. 3. STATEWIDE PLANNING.

    Section 135(e) of title 23, United States Code, is amended by 
inserting after the first sentence the following: ``The plan shall, at 
a minimum, identify transportation facilities (including major 
roadways, transit, airport, port, inland waterway, railroad, and 
multimodal and intermodal facilities) that should function as an 
integrated State transportation system, giving emphasis to those 
facilities that serve important national and regional transportation 
functions. Such transportation system shall serve as the National 
Transportation System in that State, unless the Secretary determines 
that designating all or any portion of such identified system as a part 
of the National Transportation System would not be in the public 
interest or promote the goals of the National Transportation System.''.

SEC. 4. FUNDING FROM NHS APPORTIONMENTS.

    Section 104(c) of title 23, United States Code, is amended to read 
as follows:
    ``(c) Set-asides and Transferability of NHS Apportionments.--
            ``(1) Set-aside for grant program.--On October 1 of each 
        fiscal year, the Secretary, after making the deduction 
        authorized by subsection (a) of this section, shall set aside, 
        for the purpose of making grants under section 103(j)(4), not 
        to exceed 1 percent of the remaining funds authorized to be 
        appropriated for expenditure upon the National Highway System.
            ``(2) Set-aside for connections to nts.--
                    ``(A) General rule.--Except if the Secretary 
                provides otherwise, each State shall set-aside 10 
                percent of each apportionment made to the State under 
                section 104(b)(1) for the National Highway System to 
                provide intermodal connections to the National Highway 
                System or connections between the National Highway 
                System and other components of the National 
                Transportation System.
                    ``(B) New capacity for single-occupant passenger 
                vehicles.--No funds set-aside by a State pursuant to 
                this paragraph may be obligated for any project which 
                adds new capacity for single-occupant passenger 
                vehicles (other than for facilities which are part of a 
                system to reduce the use of such vehicles).
            ``(3) Transferability.--Subject to paragraphs (4) and (5), 
        a State may transfer not to exceed 50 percent of the State's 
        apportionment under subsection (b)(1) to the apportionment of 
        the State under subsection (b)(3). A State may transfer not to 
        exceed 90 percent of the State's apportionment under subsection 
        (b)(1) to the apportionment of the State under subsection 
        (b)(3) if the State requests to make such transfer and the 
        Secretary approves such transfer as being in the public 
        interest, after providing notice and sufficient opportunity for 
        public comment.
            ``(4) Division between urbanized areas of over 50,000 
        population and other areas.--
                    ``(A) General rule.--Except as provided in 
                subparagraph (C), after the set-aside under paragraph 
                (2), at least 75 percent of the remaining 90 percent of 
                the funds apportioned to a State under section 
                104(b)(1) for a fiscal year shall be obligated--
                            ``(i) in the urbanized areas of the State 
                        with an urbanized area population of more than 
                        50,000 that are transportation management areas 
                        designated under section 134(i) of this title 
                        or areas that are in nonattainment for ozone or 
                        carbon monoxide under the Clean Air Act; and
                            ``(ii) the other areas of the State;
                in proportion to their relative share of the State's 
                population. The remaining 25 percent may be obligated 
                in any area of the State.
                    ``(B) Special rule for rural areas.--Of the amounts 
                required to be obligated under subparagraph (A)(ii), 
                the State shall obligate in areas of the State (other 
                than urban areas with a population greater than 5,000) 
                an amount which is not less than 110 percent of the 
                funds apportioned to the State for the Federal-aid 
                secondary system for fiscal year 1991.
                    ``(C) Nonapplicability to nonattainment areas.--
                Subparagraph (A) shall not apply to any State for which 
                the entire geographic area of the State is in 
                nonattainment for ozone or carbon monoxide under the 
                Clean Air Act.
                    ``(D) Limitation on expanding capacity.--No funds 
                apportioned under section 104(b)(1) for the National 
                Highway System may be obligated for any project which 
                expands capacity by adding one or more new travel 
                lanes, other than auxiliary lanes or high occupancy 
                vehicle lanes, if any National Highway System facility 
                in that State is maintained in poor condition as 
                defined in the most recent report to Congress under 
                section 307(h) of this title unless the Governor 
                certifies that such obligation is in the public 
                interest and the Secretary approves.
            ``(5) Allocation of obligation authority.--A State which is 
        required to obligate in an urbanized area with an urbanized 
        area population of over 200,000 under paragraph (4) funds 
        apportioned to it under section 104(b)(1) shall allocate during 
        the 3-fiscal-year period 1995 through 1997 an amount of 
        obligation authority distributed to the State for Federal-aid 
        highways and highway safety construction for use in such area 
        determined by multiplying--
                    ``(A) the aggregate amount of funds which the State 
                is required to obligate in such area under paragraph 
                (4) during such period; by
                    ``(B) the ratio of the aggregate amount of 
                obligation authority distributed to the State for 
                Federal-aid highways and highway safety construction 
                during such period to the total sums apportioned to the 
                State for Federal-aid highways and highway safety 
                construction (excluding sums not subject to an 
                obligation limitation) during such period.''.
Amends Federal transportation law to establish a National Transportation System (NTS) that will move people and goods in a way that promotes mobility, economic productivity, congestion relief, energy conservation, and air quality improvement. 
Directs the Secretary of Transportation to submit to the Congress the designation of the NTS.  Prohibits proposed new routes or facilities that are in nonattainment areas for ozone or carbon monoxide, or segments of the National Highway System (NHS), from being included in the NTS until they have been included in a metropolitan or State long-range plan transportation improvement program conforming to a State implementation plan developed pursuant to the Clean Air Act.  Authorizes the Secretary to make grants to pay 80 percent of the development and implementation costs of the NTS. 
Requires a metropolitan or State long-range plan to identify, at a minimum, transportation facilities, including, among others, airport, port, inland waterway, and railroad, that function as an integrated metropolitan or State transportation system, giving emphasis to facilities that serve important national and regional transportation functions.  Requires such transportation systems to serve as the NTS in such metropolitan area or State, unless the Secretary determines it would not be in the public interest or promote the goals of the NTS.  Directs the Secretary to set-aside a specified percentage of NHS funds for grants for the developmental costs of the NTS. 
Directs States to set-aside a specified percentage of their NHS apportionment to provide intermodal connections to the NHS or connections between the NHS and the NTS.  Prohibits the use of State set-asides for projects that add new capacity for single-occupant passenger vehicles (other than for facilities which are part of a system that reduces their use).  Sets forth formulae for the apportionment of NHS funds to certain urbanized and rural areas.
To amend title 23, United States Code, relating to establishment of the National Transportation System.