SEC. 2. COOPERATIVE FEDERAL LANDS TRANSPORTATION
PROGRAM.
(a) IN GENERAL.—Chapter 2 of title 23, United
States Code, is amended by inserting after section 205 the
following:
‘‘SEC. 206. COOPERATIVE FEDERAL LANDS TRANSPOR-
TATION PROGRAM.
‘‘(a) FINDINGS AND PURPOSE.—
‘‘(1) FINDINGS.—Congress finds that public
roads owned by States—
‘‘(A) can provide valuable assistance to the
Federal Government in ensuring adequate and
safe transportation to, in, and across federally
owned land and Indian reservations; and
‘‘(B) supplement the efforts of the Federal
Government in developing and maintaining
roads to serve federally owned land and Indian
reservations.
‘‘(2) PURPOSE.—The purpose of this section is
to further the Federal interest in State-owned or
State-maintained roads that provide transportation
to, in, or across federally owned land or Indian res-
ervations by establishing the Cooperative Federal
Lands Transportation Program.
‘‘(b) PROGRAM.—There is established the Coopera-
tive Federal Lands Transportation Program (referred to
in this section as the ‘program’). Funds available for the
program may be used for projects, or portions of projects,
on State-owned or State-maintained highways that cross,
are adjacent to, or lead to federally owned land or Indian
reservations, as determined by the State. Such projects
shall be proposed by a State and selected by the Secretary.
A project proposed by a State under this section shall be
on a highway owned or maintained by the State and may
be a highway construction or maintenance project eligible
under this title or any project of a type described in sec-
tion 204(h).
‘‘(c) DISTRIBUTION OF FUNDS FOR PROJECTS.—
‘‘(1) IN GENERAL.—
‘‘(A) IN GENERAL.—The Secretary—
‘‘(i) after consultation with the Ad-
ministrator of General Services, the Sec-
retary of the Interior, and the heads of
other agencies as appropriate, shall deter-
mine the percentage of the total land in
each State that is owned by the Federal
Government or that is held by the Federal
Government in trust;
‘‘(ii) shall determine the sum of the
percentages determined under clause (i)
for States with respect to which the per-
centage is 4.5 or greater; and
‘‘(iii) shall determine for each State
included in the determination under clause
(ii) the percentage obtained by dividing—
‘‘(I) the percentage for the State
determined under clause (i); by
‘‘(II) the sum determined under
clause (ii).
‘‘(B) 
ADJUSTMENT.—The 
Secretary
shall—
‘‘(i) reduce any percentage determined
under subparagraph (A)(iii) that is greater
than 7.5 percent to 7.5 percent; and
‘‘(ii) 
redistribute 
the 
percentage
points equal to any reduction under clause
(i) among other States included in the de-
termination under subparagraph (A)(ii) in
proportion to the percentages for those
States determined under subparagraph
(A)(iii).
‘‘(2) AVAILABILITY
TO
STATES.—Except as
provided in paragraph (3), for each fiscal year, the
Secretary shall make funds available to carry out eli-
gible projects in a State in an amount equal to the
amount obtained by multiplying—
‘‘(A) the percentage for the State, if any,
determined under paragraph (1); by
‘‘(B) the funds made available for the pro-
gram for the fiscal year.
‘‘(3) SELECTION OF PROJECTS.—The Secretary
may establish deadlines for States to submit pro-
posed projects for funding under this section, except
that in the case of fiscal year 1998 the deadline may
not be earlier than January 1, 1998. For each fiscal
year, if a State does not have pending, by that dead-
line, applications for projects with an estimated cost
equal to at least 3 times the amount for the State
determined under paragraph (2), the Secretary may
distribute, to 1 or more other States, at the Sec-
retary’s discretion, 1⁄3 of the amount by which the
estimated cost of the State’s applications is less than
3 times the amount for the State determined under
paragraph (2).
‘‘(d) TRANSFERS.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of law, a State and the Secretary may
agree to transfer amounts made available to a State
under this section for use in carrying out projects on
any Federal lands highway that is located in the
State.
‘‘(2) SPECIAL RULE.—This paragraph applies
to a State that contains a national park that was
visited by more than 2,500,000 people in 1996 and
comprises more than 3,000 square miles of land
area, including surface water, that is located in the
State. For such a State, 50 percent of the amount
that would otherwise be made available to the State
for each fiscal year under the program shall be made
available only for eligible highway uses in the na-
tional park and within the borders of the State. For
the purpose of making allocations under section
202(c), the Secretary may not take into account the
past or future availability, for use on park roads and
parkways in a national park, of funds made avail-
able for use in a national park by this paragraph.’’.
(b) DEFINITION OF FEDERAL LANDS HIGHWAY IN-
VESTMENT.—Section 101(a) of title 23, United States
Code, is amended—
(1) by adding at the end the following:
‘‘The term ‘Federal lands highway investment’ means
funds authorized for the Federal lands highways program
or the Cooperative Federal Lands Transportation Pro-
gram under chapter 2.’’; and