‘‘(3) PROJECT DELIVERY.—The Secretary shall 
perform annual reviews that address elements of a 
State’s project delivery system, which includes one or 
more activities that are involved in the life cycle of 
a project from its conception to its completion. 
‘‘(4) RESPONSIBILITY
OF
THE
STATES.—The 
States are responsible for determining that subrecipi-
ents of Federal funds under this title have adequate 
project delivery systems for projects approved under 
this section. The Secretary shall periodically review 
the States’ monitoring of subrecipients. 
‘‘(5) SPECIFIC OVERSIGHT RESPONSIBILITIES.—
Nothing in this section shall affect or discharge any 
oversight responsibility of the Secretary specifically 
provided for under this title or other Federal law. In 
addition, the Secretary shall retain full oversight re-
sponsibilities for the design and construction of all 
Appalachian development highways under section 
14501 of title 40. 
‘‘(i) MAJOR PROJECTS.—
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision in this section, a recipient of Federal finan-
cial assistance for a project under this title with an 
estimated total cost of $500,000,000 or more, or any 
other project in the discretion of the Secretary, shall
submit to the Secretary a project management plan 
and an annual financial plan. 
‘‘(2) PROJECT MANAGEMENT PLAN.—The project 
management plan shall document the procedures and 
processes in place to provide timely information to 
the project decision makers to manage effectively the 
scope, costs, schedules, and quality, and the Federal 
requirements of the project and the role of the agency 
leadership and management team in the delivery of 
the project. 
‘‘(3) FINANCIAL PLAN.—The financial plan shall 
be based on detailed estimates of the cost to complete 
the project. Annual updates shall be submitted based 
on reasonable assumptions, as determined by the Sec-
retary, of future increases in the cost to complete the 
project. 
‘‘(j) OTHER PROJECTS.—A recipient of Federal finan-
cial assistance for a project under this title with an esti-
mated total cost of $100,000,000 or more that is not covered 
by subsection (h) shall prepare an annual financial plan. 
Annual financial plans prepared under this subsection shall 
be made available to the Secretary for review upon the Sec-
retary’s request.’’.
SEC. 1106. USE OF EXCESS FUNDS. 
Section 106 of title 23, United States Code, is further 
amended by adding at the end the following: 
‘‘(k) USE OF EXCESS FUNDS.—
‘‘(1) AUDITS.—A State may audit projects fund-
ed with amounts apportioned under sections 104 and 
144 to determine whether any amounts obligated for 
a project are excess funds. 
‘‘(2) PLANS FOR USE OF EXCESS FUNDS.—If a 
State determines, after conducting an audit under 
paragraph (1), that funds obligated for a project are 
excess funds, the State may develop a plan for obli-
gating the funds for the design and construction of—
‘‘(A) with respect to excess funds derived 
from the surface transportation program under 
section 133(d)(1), 133(d) (2), or 133(d)(3), the 
highway bridge replacement and rehabilitation 
program under section 144, the congestion miti-
gation and air quality improvement program 
under section 149, or the recreational trails pro-
gram under section 206, one or more projects 
that are eligible for funding under that program; 
and 
‘‘(B) with respect to excess funds derived 
from any other program under this title, one or 
more projects that are eligible for funding those
programs or the surface transportation program 
under section 133. 
‘‘(3) CERTIFICATION
TO
THE
SECRETARY.—A 
State that has developed a plan under paragraph (2) 
shall transmit to the Secretary a certification that the 
State has conducted an audit under paragraph (1) 
and developed the plan in accordance with paragraph 
(2). 
‘‘(4) IMPLEMENTATION OF PLANS.—After trans-
mitting a certification to the Secretary with respect 
to a plan under paragraph (3), the State may carry 
out the plan. 
‘‘(5) APPLICABILITY OF REQUIREMENTS.—
‘‘(A) IN GENERAL.—Except as provided by 
subparagraph (B), excess funds used to carry out 
a project under this section shall be subject to the 
requirements of this title that are applicable to 
the program under which the project is carried 
out. 
‘‘(B) STP
ALLOCATIONS.—Section 133(d) 
shall not apply to excess funds used to carry out 
a project under this section, unless such funds 
are derived from amounts apportioned under 
104(b)(3).
‘‘(6) EXCESS
FUNDS
DEFINED.—In this sub-
section, the term ‘excess funds’ means funds obligated 
for a project that remain available for the project 
after the project has been completed or canceled.’’. 
SEC. 1107. TEMPORARY TRAFFIC CONTROL DEVICES. 
(a) STANDARDS.—Section 109(e) of title 23, United 
States Code, is amended—
(1) by striking ‘‘(e) No funds’’ and inserting the 
following: 
‘‘(e) INSTALLATION OF SAFETY DEVICES.—
‘‘(1) HIGHWAY AND RAILROAD GRADE CROSSINGS 
AND DRAWBRIDGES.—No funds’’; and 
(2) by adding at the end the following: 
‘‘(2) TEMPORARY TRAFFIC CONTROL DEVICES.—
No funds shall be approved for expenditure on any 
Federal-aid highway, or highway affected under chap-
ter 2 of this title, unless proper temporary traffic con-
trol devices to improve safety in work zones will be 
installed and maintained during construction, utility, 
and maintenance operations on that portion of the 
highway with respect to which such expenditures are 
to be made. Installation and maintenance of the de-
vices shall be in accordance with the Manual on Uni-
form Traffic Control Devices.’’.
(b) LETTING OF CONTRACTS.—Section 112 of such title 
is amended—
(1) by striking subsection (f); 
(2) by redesignating subsection (g) as subsection 
(f); and 
(3) by adding at the end the following: 
‘‘(g) TEMPORARY TRAFFIC CONTROL DEVICES.—
‘‘(1) ISSUANCE
OF
REGULATIONS.—The Sec-
retary, after consultation with appropriate Federal 
and State officials, shall issue regulations establishing 
the conditions for the appropriate use of, and expend-
iture of funds for, uniformed law enforcement officers, 
positive protective measures between workers and mo-
torized traffic, and installation and maintenance of 
temporary traffic control devices during construction, 
utility, and maintenance operations. 
‘‘(2) EFFECTS OF REGULATIONS.—Based on reg-
ulations issued under paragraph (1), a State shall—
‘‘(A) develop separate pay items for the use 
of uniformed law enforcement officers, positive 
protective measures between workers and motor-
ized traffic, and installation and maintenance of 
temporary traffic control devices during con-
struction, utility, and maintenance operations; 
and