SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Initiative on Surface 
Transportation and the Environment Act''.

SEC. 2. CONGESTION MITIGATION AND AIR QUALITY IMPROVEMENT PROGRAM.

    (a) Eligible Projects.--Section 149(b) of title 23, United States 
Code, is amended--
            (1) by inserting after ``nonattainment area'' the first 
        place it appears ``(including an area subsequently redesignated 
        as an attainment area)''; and
            (2) by inserting ``or thereafter'' after ``1994''.
    (b) Priority for Projects With Long-Term Sustainable Air Quality 
Benefits.--Section 149 of such title is amended by adding at the end 
the following:
    ``(e) Priority for Projects With Long-Term Sustainable Air Quality 
Benefits.--The Secretary, after consultation with the Administrator, 
shall establish a system for ranking projects and programs that are 
likely to have long-term sustainable air quality benefits, including 
energy efficiency, and for providing priority funding under this 
section for projects and programs that are ranked the highest under 
such system.''.
    (c) Authorization of Appropriations.--For the purposes of carrying 
out the congestion mitigation and air quality improvement program under 
title 23, United States Code, there is authorized to be appropriated 
out of the Highway Trust Fund (other than the Mass Transit Account) 
$1,300,000,000 for each of fiscal years 1998, 1999, 2000, 2001, 2002, 
and 2003.
    (d) Sense of Congress.--In order to provide the increased 
authorization of appropriations under subsection (c), it is the sense 
of Congress that the authorization of appropriations from the Highway 
Trust Fund for the National Highway System and the surface 
transportation program shall be reduced in the aggregate by 
$400,000,000 for each of fiscal years 1998 through 2003.

SEC. 3. ASSESSMENT AND CLEANUP OF BROWNFIELD SITES.

    (a) National Highway System.--Section 103(i) of title 23, United 
States Code, is amended by adding at the end the following:
            ``(14) In accordance with all applicable Federal law and 
        regulations, participation in assessment and cleanup of 
        brownfield sites relating to projects funded under this title, 
        projects on the rights-of-way of facilities constructed on such 
        system under this title before, on, or after the date of the 
        enactment of this paragraph, and projects for development of a 
        brownfield site if such development will provide a substantive 
        and demonstrable benefit to transportation on such system, 
        including reduction of congestion, increased use of mass 
        transit, and improved access to a transportation facility. 
        Contributions toward these efforts may occur in advance of 
        project construction only if such efforts are consistent with 
        all applicable requirements of Federal law and regulations and 
        State transportation planning processes.''.
    (b) Surface Transportation Program.--
            (1) Eligible projects.--Section 133(b) of title 23, United 
        States Code, is amended by adding at the end the following:
            ``(12) In accordance with all applicable Federal law and 
        regulations, participation in assessment and cleanup of 
        brownfield sites relating to projects funded under this title, 
        projects on the rights-of-way of facilities constructed under 
        this title before, on, or after the date of the enactment of 
        this paragraph, and projects for development of a brownfield 
        site if such development will provide a substantive and 
        demonstrable benefit to motor vehicle transportation, including 
        reduction of congestion, increased use of mass transit, and 
        improved access to a transportation facility. Contributions 
        toward these efforts may occur in advance of project 
        construction only if such efforts are consistent with all 
        applicable requirements of Federal law and regulations and 
        State transportation planning processes.''.
            (2) Funding for urbanized areas over 200,000 population.--
        Section 133(d) of such title is amended--
                    (A) in paragraph (3)(A)--
                            (i) by striking ``62.5'' and inserting 
                        ``70''; and
                            (ii) by striking ``37.5'' and inserting 
                        ``30''; and
                    (B) in paragraph (3)(C) by striking ``62.5'' and 
                inserting ``70''.
            (3) Definitions.--Section 133 of such title is further 
        amended by adding at the end the following:
    ``(g) Definitions.--In this section and section 103(i), the 
following definitions apply:
            ``(1) Brownfield site.--The term `brownfield site' means a 
        parcel of land that contains or contained abandoned or 
        underused commercial, industrial, or public facility, the 
        expansion or redevelopment of which may be complicated by the 
        presence or potential presence of hazardous substances, 
        pollutants, or contaminants.
            ``(2) Facility.--The term `facility' has the meaning such 
        term has under section 101 of the Comprehensive Environmental 
        Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
        9601).
            ``(3) Hazardous substance.--The term `hazardous substance' 
        has the meaning such term has under such section 101.
            ``(4) Pollutant or contaminant.--The term `pollutant or 
        contaminant' has the meaning such term has under such section 
        101.''.
    (c) Federal Transit Programs.--
            (1) Block grants.--Section 5307(b) of title 49, United 
        States Code, is amended by adding at the end the following:
            ``(6) Assessment and cleanup of brownfield sites.--Amounts 
        under this section may also be made available for assessment 
        and cleanup of brownfield sites relating to projects funded 
        under this title, projects on the rights-of-way of facilities 
        constructed under this title before, on, or after the date of 
        the enactment of this paragraph, and projects for development 
        of a brownfield site if such development will provide a 
        substantive and demonstrable benefit to mass transportation, 
        including reduction of congestion, increased use of mass 
        transit, and improved access to a transportation facility. Such 
        assessments and cleanups shall be carried out in accordance 
        with all applicable Federal law and regulations.''.
            (2) Discretionary grants and loans.--Section 5309(a) of 
        such title 49 is amended--
                    (A) by striking ``and'' at the end of subparagraph 
                (F);
                    (B) by striking the period at the end of 
                subparagraph (G) and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(H) in accordance with all applicable Federal law 
                and regulations, assessment and cleanup of brownfield 
                sites relating to projects funded under this title, 
                projects on the rights-of-way of facilities constructed 
                under this title before, on, or after the date of the 
                enactment of this subparagraph, and projects for 
                development of a brownfield site if such development 
                will provide a substantive and demonstrable benefit to 
                mass transportation, including reduction of congestion, 
                increased use of mass transit, and improved access to a 
                transportation facility.''.
            (3) Financial assistance for other than urbanized areas.--
        Section 5311(b)(1) of such title 49 is amended by inserting 
        before the period at the end of the first sentence the 
        following: ``and, in accordance with all applicable Federal law 
        and regulations, assessment and cleanup of brownfield sites 
        relating to projects funded under this section, projects on the 
        rights-of-way of facilities constructed under this section 
        before, on, or after the date of the enactment of the National 
        Initiative on Surface Transportation and the Environment Act, 
        and projects for development of a brownfield site if such 
        development will provide a substantive and demonstrable benefit 
        to mass transportation, including reduction of congestion, 
        increased use of mass transit, and improved access to a 
        transportation facility in such areas''.
            (4) Definitions.--Section 5302(a) of such title 49 is 
        amended--
                    (A) by redesignating paragraphs (1) through (13) as 
                paragraphs (2) through (14), respectively; and
                    (B) by inserting before paragraph (2), as so 
                redesignated, the following:
            ``(1) Brownfield site.--The term `brownfield site' means a 
        parcel of land that contains or contained abandoned or 
        underused commercial, industrial, or public facility, the 
        expansion or redevelopment of which may be complicated by the 
        presence or potential presence of hazardous substances, 
        pollutants, or contaminants. In this paragraph, the terms 
        `facility', `hazardous substance', and `pollutant or 
        contaminant' have the meaning such terms have under section 101 
of the Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980 (42 U.S.C. 9601).''.

SEC. 4. WETLANDS RESTORATION PROGRAM.

    (a) Establishment.--Chapter 1 of title 23, United States Code, is 
amended by adding at the end the following:
``Sec. 162. Wetlands restoration program
    ``(a) Establishment.--The Secretary shall establish a wetlands 
restoration program under which the Secretary may make grants to States 
for projects to mitigate against losses of wetlands that have occurred 
as a result of Federal-aid highway construction projects carried out 
before the date of the enactment of this section.
    ``(b) Allocation of Funds.--The Secretary shall allocate funds made 
available to carry out this section for a fiscal year among the States 
in the ratio that the number of acres of wetlands lost by each State as 
a result of Federal-aid highway construction projects in the preceding 
fiscal year bears to the number of acres of wetlands lost by all States 
as a result of such projects in such fiscal year; except that no State 
may receive more than 5 percent of such funds.
    ``(c) Authorization of Appropriations.--There is authorized to be 
appropriated out of the Highway Trust Fund (other than the Mass Transit 
Account) $16,666,000 per fiscal year for each of fiscal years 1998 
through 2003 to carry out this section. Such sums shall remain 
available until expended.''.
    (b) Conforming Amendment.--The table of sections for such chapter 
is amended by adding at the end the following:

``162. Wetlands restoration program.''.

SEC. 5. NONPOINT SOURCE POLLUTION.

    (a) Use of STP Funds for Mitigation of Water Pollution.--Section 
133(d) of title 23, United States Code, is amended by adding at the end 
the following:
            ``(3) For mitigation of water pollution.--1 percent of the 
        funds apportioned to a State under section 104(b)(3) for a 
        fiscal year shall only be available for monitoring, mitigating, 
        and cleaning up water pollution due to highway runoff.''.
    (b) Applied Research and Technology Program.--Section 307(e) of 
such title is amended--
            (1) by redesignating paragraphs (9) through (13) as 
        paragraphs (10) through (14), respectively; and
            (2) by inserting after paragraph (8) the following:
            ``(9) Porous paving materials.--As part of the program 
        under this subsection, the Secretary shall carry out a program 
        to assess the benefits of using porous paving materials for 
        highways and parking lots as a method of mitigating water 
        pollution due to highway runoff.''.

SEC. 6. INCENTIVES FOR REDUCTIONS IN MOTOR VEHICLE EMISSIONS.

    (a) In General.--Chapter 1 of title 23, United States Code, is 
further amended by adding at the end the following:
``Sec. 163. Incentives for reductions in motor vehicle emissions
    ``(a) Grants to MPO's.--
            ``(1) Authority to make grants.--The Secretary may make 
        grants to up to 10 metropolitan planning organizations 
        designated under section 134 for implementing alternative 
        transportation strategies to achieve reductions in motor 
        vehicle emissions. Such strategies include coordinating land 
        uses with transportation systems, creating balanced commercial 
        and residential regions, promoting alternative fuel vehicles 
        and alternative transport strategies, designing local modeling 
        systems, and increasing full public participation.
            ``(2) Amount of grants.--Each grant made to a metropolitan 
        planning organization under this subsection in a fiscal year 
        shall be in an amount equal to one-tenth of the amount made 
        available to carry out this subsection in such fiscal year.
            ``(3) Authorization of appropriations.--There is authorized 
        to be appropriated out of the Highway Trust Fund (other than 
        the Mass Transit Account) to carry out this subsection 
        $4,500,000 per fiscal year for each of fiscal years 1998 
        through 2003. Such sums shall remain available until expended.
    ``(b) Grants to States.--
            ``(1) Authority to make grants.--On or before December 31, 
        2003, the Secretary shall award a grant to each of the 10 
        States that the Secretary determines have achieved during the 
        period beginning on October 1, 1997, and ending on September 
        30, 2003, the greatest per capita reduction in fuel 
        consumption.
            ``(2) Use of grants.--A State may obligate amounts from 
        grants received under paragraph (1) for projects eligible for 
        funding under section 149.
            ``(3) Amount of grants.--Each grant made under this 
        subsection shall be in an amount equal to one-tenth of the 
        total amount made available to carry out this subsection.
            ``(4) Authorization of appropriations.--There is authorized 
        to be appropriated out of the Highway Trust Fund (other than 
        the Mass Transit Account) for fiscal years 1997 through 2003 
        $500,000,000 in the aggregate to carry out this subsection. 
        Such sums shall remain available until expended.''.
    (b) Conforming Amendment.--The table of sections for such chapter 
is amended by adding at the end the following:

``163. Incentives for reductions in motor vehicle emissions.''.
National Initiative on Surface Transportation and the Environment Act - Amends Federal highway provisions to expand eligibility for projects under the congestion mitigation and air quality improvement program. 
Directs the Secretary of Transportation to establish a system for ranking projects and programs that are likely to have long-term sustainable air quality benefits and for providing funding for projects and programs that are ranked the highest under such system. 
Authorizes appropriations. 
Expresses the sense of the Congress that the authorization of appropriations from the Highway Trust Fund for the National Highway System and the surface transportation program (STP) shall be reduced in the aggregate by $400 million for each of FY 1998 through 2003. 
(Sec. 3) Requires that participation in assessment and cleanup of brownfield sites relating to specified projects provide a substantive and demonstrable benefit to transportation on such system, including reduction of congestion, increased use of mass transit, and improved access to a transportation facility.  Permits contributions toward such efforts to occur in advance of project construction only if such efforts are consistent with Federal requirements and State transportation planning processes. 
Increases the percentage of funds apportioned to a State for the STP that must be obligated to urbanized areas with population of over 200,000 and other areas of the State in proportion to their relative share of the State's population. 
Makes Federal transit block grants, discretionary grants and loans, and financial assistance for other than urban areas available for assessment and cleanup of brownfield sites relating to specified projects if such development will provide a substantive and demonstrable benefit to mass transportation. 
(Sec. 4) Directs the Secretary to establish a wetlands restoration program under which the Secretary may make grants to States for projects to mitigate losses of wetlands that have occurred as a result of Federal-aid highway construction projects.  Authorizes appropriations. 
(Sec. 5) Makes one percent of STP funds apportioned to a State for a fiscal year available for monitoring, mitigating, and cleaning up water pollution due to highway runoff.  Directs the Secretary to carry out a program to assess the benefits of using porous paving materials for highways and parking lots as a method of mitigating such pollution. 
(Sec. 6) Authorizes the Secretary to make grants to up to ten metropolitan planning organizations designated for implementing alternative transportation strategies to achieve reductions in motor vehicle emissions.  Authorizes appropriations. 
Directs the Secretary, on or before December 31, 2003, to award a grant to each of the ten States that the Secretary determines have achieved the greatest per capita reduction in fuel consumption between October 1, 1997, and September 30, 2003.   Authorizes appropriations.
National Initiative on Surface Transportation and the Environment Act