II 

115TH CONGRESS 

1ST SESSION S. 1607 

To establish a pilot program to transform the Federal-aid highway program 

to a performance- and outcome-based program, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 20, 2017 

Mr. HATCH introduced the following bill; which was read twice and referred 

to the Committee on Environment and Public Works 

A BILL 

To establish a pilot program to transform the Federal-aid 

highway program to a performance- and outcome-based 

program, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Federal Highway Aid 

5 Performance-Based Improvement Act of 2017’’. 

6 SEC. 2. PILOT PROGRAM. 

7 (a) IN GENERAL.—Chapter 1 of title 23, United 

8 States Code, is amended by adding at the end the fol9 lowing: 


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1 ‘‘§ 171. Consolidated funding pilot program 

2 ‘‘(a) IN GENERAL.—The Secretary shall carry out a 

3 consolidated funding pilot program (referred to in this sec4 tion as the ‘program’) in 3 States, as selected by the Sec5 retary, that are eligible under subsection (c)— 

6 ‘‘(1) to transform the Federal-aid highway pro7 gram to a performance- and outcome-based program 

8 that refocuses investment of resources on transpor9 tation projects that make progress toward the 

10 achievement of the national goals described in para11 graphs (1) through (7) of section 150(b); and 

12 ‘‘(2) to continue advancements made under the 

13 Moving Ahead for Progress in the 21st Century Act 

14 (Public Law 112–141; 126 Stat. 405) and the Fix15 ing America’s Surface Transportation Act (Public 

16 Law 114–94; 129 Stat. 1312) to streamline program 

17 categories by demonstrating how additional flexi18 bility would enable States to make investment deci19 sions that better achieve State and national goals 

20 while advancing accountability and transparency of 

21 the Federal-aid highway program. 

22 ‘‘(b) IMPLEMENTATION.— 

23 ‘‘(1) IN GENERAL.—In carrying out the pro24 gram, of those funds apportioned to a participating 

25 eligible State and after suballocations, set-asides, 

26 and pass-throughs made within each State to entiVerDate Sep 11 2014 23:41 Aug 01, 2017 Jkt 069200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1607.IS S1607

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1 ties other than the transportation department of the 

2 State (including a metropolitan planning organiza3 tion and a regional transportation planning organi4 zation), the Secretary shall treat the apportionments 

5 remaining with the State transportation department 

6 under the individual apportionment programs de7 scribed in section 104 as a single, consolidated ap8 portionment. 

9 ‘‘(2) ELIGIBLE ACTIVITIES.—Activities eligible 

10 under the program shall include all activities eligible 

11 for the individual apportionment programs described 

12 in section 104. 

13 ‘‘(c) ELIGIBILITY.—To be eligible to participate in 

14 the program— 

15 ‘‘(1) a State selected by the Secretary under 

16 subsection (a) shall— 

17 ‘‘(A) demonstrate that well-established per18 formance management systems are in place in 

19 the State for the national goals for— 

20 ‘‘(i) safety described in section 

21 150(b)(1); and 

22 ‘‘(ii) infrastructure condition de23 scribed in section 150(b)(2); 

24 ‘‘(B) demonstrate that the performance 

25 management systems in place in the State inVerDate Sep 11 2014 04:28 Jul 29, 2017 Jkt 069200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1607.IS S1607

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1 clude a system of metrics and performance 

2 measures that guide the State in using program 

3 funds and prioritizing projects— 

4 ‘‘(i) to ensure an effective use of re5 sources; and 

6 ‘‘(ii) to further the objectives of the 

7 program; and 

8 ‘‘(C) demonstrate progress made toward 

9 achieving measurable performance of national 

10 goals for— 

11 ‘‘(i) congestion reduction described in 

12 section 150(b)(3); 

13 ‘‘(ii) system reliability described in 

14 section 150(b)(4); 

15 ‘‘(iii) freight movement and economic 

16 vitality described in section 150(b)(5); 

17 ‘‘(iv) environmental sustainability de18 scribed in section 150(b)(6); and 

19 ‘‘(v) reduced project delivery delays 

20 described in section 150(b)(7); and 

21 ‘‘(2) the head of the State agency with primary 

22 jurisdiction over highways shall enter into a written 

23 agreement with the division administrator of the 

24 field office of the Federal Highway Administration 

25 located in the State and any metropolitan planning 


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1 organization located in the State, which shall specify 

2 which individual apportionment programs or por3 tions of programs referred to in subsection (b) shall 

4 be included in the program in that State. 

5 ‘‘(d) TERM.—The Secretary shall carry out the pro6 gram for a term of not fewer than 6 years. 

7 ‘‘(e) TERMINATION.—Participation of a State in the 

8 program may be terminated— 

9 ‘‘(1) by the Secretary if— 

10 ‘‘(A) the Secretary determines that the 

11 State is not adequately carrying out the respon12 sibilities assigned to the State under the pro13 gram; 

14 ‘‘(B) the Secretary provides to the State— 

15 ‘‘(i) notification of the determination 

16 of noncompliance under subparagraph (A); 

17 and 

18 ‘‘(ii) a period of not less than 30 days 

19 during which the State may take such cor20 rective action as the Secretary determines 

21 necessary to comply with the program; and 

22 ‘‘(C) after the notification of noncompli23 ance and the expiration of the period under 

24 subparagraph (B), the State has not taken satVerDate Sep 11 2014 04:28 Jul 29, 2017 Jkt 069200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S1607.IS S1607

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1 isfactory corrective action, as determined by the 

2 Secretary; or 

3 ‘‘(2) by the State at any time if— 

4 ‘‘(A) not later than 90 days before the 

5 date of termination, the State provides to the 

6 Secretary notice of the termination; and 

7 ‘‘(B) the State complies with such other 

8 terms or conditions as the Secretary determines 

9 to be necessary. 

10 ‘‘(f) REPORTS.— 

11 ‘‘(1) STATE REPORTING REQUIREMENTS.—Par12 ticipating eligible States shall submit to the Sec13 retary an annual report— 

14 ‘‘(A) demonstrating how performance man15 agement systems were used to guide the deci16 sionmaking process of the State in the develop17 ment of the statewide transportation improve18 ment program of the State under section 135; 

19 and 

20 ‘‘(B) describing the results of the program 

21 based on performance measures that dem22 onstrate progress toward the achievement of 

23 performance goals. 


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1 ‘‘(2) REPORT TO CONGRESS.—The Secretary 

2 shall submit to Congress an annual report that de3 scribes the administration of the program.’’. 

4 (b) CONFORMING AMENDMENT.—The analysis for 

5 chapter 1 of title 23, United States Code, is amended by 

6 inserting after the item relating to section 170 the fol7 lowing: 

‘‘171. Consolidated funding pilot program.’’. 

Æ 


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