(i) in the subsection heading, by strik-
ing ‘‘CONGESTION MITIGATION
AND AIR
QUALITY IMPROVEMENT,’’; and
(ii) in paragraph (1)(A)(i), by striking
‘‘104(b)(2),’’.
(C) Section 146(a) of title 23, United
States Code, is amended in the first sentence by
striking 
‘‘104(b)(2),’’ 
and 
inserting
‘‘104(b)(3)(D),’’.
(D) Section 217 of title 23, United States
Code, is amended—
(i) in subsection (a)—
(I) in the subsection heading, by
striking 
‘‘STP 
AND
CONGESTION
MITIGATION PROGRAM’’ and inserting
‘‘SURFACE
TRANSPORTATION
PRO-
GRAM’’; and
(II) 
by 
striking 
‘‘sections
104(b)(2) and 104(b)(3) of this title’’
and inserting ‘‘section 104(b)(3)’’;
and
(ii) in subsection (d), by striking ‘‘sec-
tions 104(b)(2) and 104(b)(3) of this title’’
and inserting ‘‘section 104(b)(3)’’.
SEC. 202. NATIONAL HIGHWAY SYSTEM.
(a) DEFINITION OF NATIONAL HIGHWAY SYSTEM.—
Section 101(a) of title 23, United States Code, is amended
by striking the undesignated paragraph defining ‘‘Na-
tional Highway System’’ and inserting the following:
‘‘The term ‘National Highway System’ means the
Federal-aid highway system established under section
103(b).’’.
(b) PROGRAM SPECIFICATIONS.—Section 103 of title
23, United States Code, is amended—
(1) by striking the section designation and
heading and inserting the following:
‘‘§ 103. National Highway System’’
(2) by striking subsections (g) and (h); and
(3) by redesignating subsection (i) as subsection
(c) and moving the subsection to appear after sub-
section (b).
(c) CONFORMING AMENDMENT.—The analysis for
chapter 1 of title 23, United States Code, is amended by
striking the item relating to section 103 and inserting the
following:
‘‘103. National Highway System.’’.
SEC. 203. INTERSTATE MAINTENANCE ACTIVITIES.
(a) FUNDING OF ACTIVITIES.—Section 119 of title
23, United States Code, is amended—
(1) in the section heading, by striking ‘‘pro-
gram’’ and inserting ‘‘activities’’;
(2) in subsection (a)—
(A) in the first sentence—
(i) by striking ‘‘sections 103 and
139(c) of this title and routes on the Inter-
state System designated before the date of
enactment of this sentence under section
139(a) and (b) of’’; and
(ii) by striking ‘‘subsection (e)’’ and
inserting ‘‘subsection (d)’’; and
(B) by striking the second sentence;
(3) by striking subsections (d), (f), and (g); and
(4) by redesignating subsection (e) as sub-
section (d).
(b) CONFORMING AMENDMENTS.—
(1) The analysis for chapter 1 of title 23, Unit-
ed States Code, is amended by striking the item re-
lating to section 119 and inserting the following:
‘‘119. Interstate maintenance activities.’’
(2) Sections 134(i)(4) and 135(f)(3) of title 23,
United States Code, are amended—
(A) by striking ‘‘and pursuant to the
bridge and Interstate maintenance programs’’
each place it appears and inserting ‘‘, pursuant
to the bridge program under section 144, and
as Interstate maintenance activities under sec-
tion 119’’; and
(B) by striking ‘‘or pursuant to the bridge
and Interstate maintenance programs’’ each
place it appears and inserting ‘‘, pursuant to
the bridge program under section 144, or as
Interstate maintenance activities under section
119’’.
SEC. 204. SURFACE TRANSPORTATION PROGRAM AMEND-
MENTS.
Section 133 of title 23, United States Code, is
amended—
(1) in subsection (b), by adding at the end the
following:
‘‘(12) With respect to each area of a State that
is a nonattainment area under the Clean Air Act (42
U.S.C. 7401 et seq.) for ozone or carbon monoxide,
or for PM–10 resulting from transportation activi-
ties, or for any combination of these substances, also
for any congestion mitigation and air quality im-
provement project or program without regard to any
limitation of the Department of Transportation re-
lating to the type of ambient air quality standard
addressed by the project or program. For the pur-
pose of this paragraph, an area that has been des-
ignated as nonattainment for carbon monoxide
under section 107(d) of the Clean Air Act (42
U.S.C. 7407(d)) shall be considered to be a non-
attainment area regardless of whether the area has
been ‘classified’ under subpart 3 of part D of title
I of that Act (42 U.S.C. 7512 et seq.).
‘‘(13) Placement of funds in a State infrastruc-
ture bank approved by the Secretary.’’;
(2) in subsection (c), by striking ‘‘unless such
roads are on a Federal-aid highway system on Janu-
ary 1, 1991, and’’;
(3) in subsection (d)(3)—
(A) by striking subparagraph (A) and in-
serting the following:
‘‘(A) GENERAL RULE.—
‘‘(i) URBAN AREAS.—Except as pro-
vided in subparagraph (C), for each fiscal
year, a State shall allocate for use in each
area of the State with an urbanized area
population of over 200,000 individuals an
amount of the funds apportioned under
section 104(b)(3) for the fiscal year ob-
tained by multiplying—
‘‘(I)(aa) if funds were allocated
for use in the area under the surface
transportation program for fiscal year
1997, the amount of such funds re-
quired to be allocated for use in the
area for that year; or
‘‘(bb) if funds were not allocated
for use in the area under the surface
transportation program for fiscal year
1997, the amount of such funds that
would have been required to be allo-
cated for use in the area for fiscal
year 1997 if the area had had an ur-
banized area population of 200,001
individuals as of October 1, 1996; by
‘‘(II) the amount obtained by di-
viding—
‘‘(aa) all funds apportioned
or allocated to the State for Fed-
eral-aid highways and highway
safety construction programs for
the fiscal year; by
‘‘(bb) all funds apportioned
or allocated to the State for Fed-
eral-aid highways and highway
safety construction programs for
fiscal year 1997.
‘‘(ii) OTHER AREAS.—Except as pro-
vided in subparagraph (C), for each fiscal
year, a State shall allocate for use in each
area of the State that is not an area de-
scribed in clause (i) an amount of the
funds apportioned under section 104(b)(3)
for the fiscal year obtained by multiply-
ing—
‘‘(I) the amount of funds re-
quired to be allocated for use in the
area under the surface transportation
program for fiscal year 1997; by
‘‘(II) the amount obtained by di-
viding—
‘‘(aa) all funds apportioned
or allocated to the State for Fed-
eral-aid highways and highway
safety construction programs for
the fiscal year; by
‘‘(bb) all funds apportioned
or allocated to the State for Fed-
eral-aid highways and highway
safety construction programs for
fiscal year 1997.’’;
(B) in subparagraph (B), by striking ‘‘sub-
paragraph (A)(ii)’’ and inserting ‘‘this section’’;
(C) by striking subparagraph (C) and in-
serting the following:
‘‘(C) 
SPECIAL
RULE
FOR
CERTAIN
STATES.—Subparagraph (A) shall not apply in
the case of a State that is noncontiguous with
the continental United States.’’;
(D) by striking subparagraph (D);
(E) by redesignating subparagraph (E) as
subparagraph (D); and
(F) in subparagraph (D) (as so redesig-
nated)—
(i) by striking ‘‘obligate’’ each place it
appears and inserting ‘‘allocate’’;
(ii) by striking ‘‘(A)(i)’’ each place it
appears and inserting ‘‘(A)’’; and
(iii) by striking ‘‘obligated’’ and in-
serting ‘‘allocated’’;
(4) in subsection (e), by striking paragraph (2)
and inserting the following:
‘‘(2) CERTIFICATION.—Before the beginning of
each fiscal year, the Governor of each State shall
certify to the Secretary that the State will meet all
the requirements of this section and shall notify the
Secretary that the amount of obligations expected to
be incurred for surface transportation program
projects during the fiscal year is in accordance with
the surveys, plans, specifications, and estimates for
each proposed project included in the surface trans-
portation program category in the transportation im-
provement program of the State developed under
section 135 for the fiscal year. A State may request
an adjustment to an obligation amount referred to
in subparagraph (A)(ii) later in the fiscal year. Ac-
ceptance by the Secretary of the notification and
certification shall be deemed to be a contractual obli-
gation of the United States to pay the Federal share
of costs incurred by the State for projects not sub-
ject to review by the Secretary under this chapter.’’;
and
(5) in subsection (f)—
(A) by striking ‘‘6-fiscal year period 1992
through 1997’’ and inserting ‘‘6-fiscal-year pe-
riod 1998 through 2003’’; and
(B) by striking ‘‘obligate in’’ each place it
appears and inserting ‘‘allocate to’’.
SEC. 205. CONFORMING AMENDMENTS TO DISCRETIONARY
PROGRAMS.
(a) OPERATION LIFESAVER.—Section 104 of title 23,
United States Code, is amended by striking subsection (d)
and inserting the following:
‘‘(d) OPERATION LIFESAVER.—From administrative
funds deducted under subsection (a), the Secretary shall
expend $500,000 for each fiscal year to carry out a public
information and education program to help prevent and
reduce motor vehicle accidents, injuries, and fatalities and
to improve driver performance at railway-highway cross-
ings.’’.
(b) REPEAL OF SET-ASIDES FOR THE INTERSTATE
AND NATIONAL HIGHWAY SYSTEM DISCRETIONARY PRO-
GRAMS.—Section 118 of title 23, United States Code, is
amended—
(1) by striking subsection (c); and
(2) by redesignating subsections (d), (e), and
(f) as subsections (c), (d), and (e), respectively.
SEC. 206. COOPERATIVE FEDERAL LANDS TRANSPOR-
TATION 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 other agencies
as appropriate, shall determine the per-
centage 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
(2) by reordering the undesignated paragraphs
so that they are in alphabetical order.
(c) CONFORMING AMENDMENT.—The analysis for
chapter 2 of title 23, United States Code, is amended by
inserting after the item relating to section 205 the follow-
ing:
‘‘206. Cooperative Federal Lands Transportation Program.’’.
TITLE III—REDUCTION OF
REGULATION
SEC. 301. PERIODIC REVIEW OF AGENCY RULES
(a) IN GENERAL.—The Secretary of Transportation
shall carry out a periodic review of all significant rules
issued by the Department of Transportation and shall de-
termine which of the rules should be amended, rescinded,
or continued without change, based on a consideration
of—
(1) the continued need for each rule; and
(2) the extent to which the rule overlaps, dupli-
cates, or conflicts with other Federal rules.
(b) PLAN.—Not later than 60 days after the date of
enactment of this Act, the Secretary shall develop and
publish in the Federal Register a plan for the periodic re-
view of all significant rules issued by the Department of
Transportation.
SEC. 302. PLANNING AND PROGRAMMING.
Section 135 of title 23, United States Code, is
amended by adding at the end the following:
‘‘(i) CONTINUATION
OF CURRENT REVIEW PRAC-
TICE.—Since plans and programs described in this section
are subject to a reasonable opportunity for public com-
ment, since individual projects included in the plans and
programs are subject to review under the National Envi-
on the day before the date of enactment of this
subsection), to the apportionment of the State
under section 104(b)(1).
‘‘(B) BRIDGE REPLACEMENT AND REHA-
BILITATION PROGRAM.—A State may transfer
unobligated balances of funds apportioned to
the State before October 1, 1997, for the bridge
replacement and rehabilitation program under
section 144 (as in effect on the day before the
date of enactment of this subsection) to the ap-
portionment of the State under paragraph (1)
or (3) of section 104(b) (or both).
‘‘(C) SURFACE
TRANSPORTATION
PRO-
GRAM.—A State may transfer unobligated bal-
ances of funds apportioned to the State before
October 1, 1997, for the surface transportation
program under section 104(b)(3) (as in effect
on the day before the date of enactment of this
subsection) to the apportionment of the State
under section 104(b)(3).
‘‘(D) OTHER
PROGRAMS.—A State may
transfer unobligated balances of funds appor-
tioned or allocated to the State before October
1, 1997, under sections 157 and 160 (as in ef-
fect on the day before the date of enactment of
this subsection), and sections 1013(c) and
1015(b) of the Intermodal Surface Transpor-
tation Efficiency Act of 1991 (Public Law 102–
240) (as in effect on the day before the date of
enactment of this subsection), to the apportion-
ment of the State under section 104(b)(3).
‘‘(E) APPLICABILITY OF CERTAIN LAWS.—
Funds transferred under this paragraph shall
be subject to the laws (including regulations,
policies, and procedures) relating to the appor-
tionment to which the funds are transferred as
the laws are in effect after the date of enact-
ment of this subsection, except that a transfer
of funds permitted under this paragraph shall
not extend the time period within which the
transferred funds either must be obligated or
lapse.
‘‘(F) EFFECT
ON
CERTAIN
DETERMINA-
TIONS.—A decision by a State to transfer funds
under this paragraph shall have no effect on
any determination of the apportionments or ob-
ligation authority of the State.’’.
Æ