Signed Legislation: Surface Transportation Reauthorization and Reform Act of 2015 (Part V)

Read part I of  Surface Transportation Reauthorization and Reform Act of 2015

SEC. 1103. DEFINITIONS.

Section 101(a) of title 23, United States Code, is amended--

(1) by striking paragraph (29);

(2) by redesignating paragraphs (15) through (28) as paragraphs (16) through (29), respectively; and

(3) by inserting after paragraph (14) the following:

`(15) NATIONAL HIGHWAY FREIGHT NETWORK- The term `National Highway Freight Network' means the National Highway Freight Network established under section 167.'.

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SEC. 1104. APPORTIONMENT.

(a) Administrative Expenses- Section 104(a)(1) of title 23, United States Code, is amended to read as follows:

`(1) IN GENERAL- There is authorized to be appropriated from the Highway Trust Fund (other than the Mass Transit Account) to be made available to the Secretary for administrative expenses of the Federal Highway Administration $440,000,000 for each of fiscal years 2016 through 2021.'.

(b) Division Among Programs of State's Share of Base Apportionment- Section 104(b) of title 23, United States Code, is amended--

(1) in the subsection heading by striking `Division of State Apportionments Among Programs' and inserting `Division Among Programs of State's Share of Base Apportionment';

(2) in the matter preceding paragraph (1)--

(A) by inserting `of the base apportionment' after `the amount'; and

(B) by striking `surface transportation program' and inserting `surface transportation block grant program';

(3) in paragraph (2)--

(A) in the paragraph heading by striking `SURFACE TRANSPORTATION PROGRAM' and inserting `SURFACE TRANSPORTATION BLOCK GRANT PROGRAM'; and

(B) by striking `surface transportation program' and inserting `surface transportation block grant program'; and

(4) in each of paragraphs (4) and (5), in the matter preceding subparagraph (A), by inserting `of the base apportionment' after `the amount'.

(c) Calculation of State Amounts- Section 104(c) of title 23, United States Code, is amended to read as follows:

`(c) Calculation of Amounts-

`(1) STATE SHARE- For each of fiscal years 2016 through 2021, the amount for each State shall be determined as follows:

`(A) INITIAL AMOUNTS- The initial amounts for each State shall be determined by multiplying--

`(i) each of--

`(I) the base apportionment;

`(II) supplemental funds reserved under subsection (h)(1) for the national highway performance program; and

`(III) supplemental funds reserved under subsection (h)(2) for the surface transportation block grant program; by

`(ii) the share for each State, which shall be equal to the proportion that--

`(I) the amount of apportionments that the State received for fiscal year 2015; bears to

`(II) the amount of those apportionments received by all States for that fiscal year.

`(B) ADJUSTMENTS TO AMOUNTS- The initial amounts resulting from the calculation under subparagraph (A) shall be adjusted to ensure that each State receives an aggregate apportionment equal to at least 95 percent of the estimated tax payments attributable to highway users in the State paid into the Highway Trust Fund (other than the Mass Transit Account) in the most recent fiscal year for which data are available.

`(2) STATE APPORTIONMENT- On October 1 of fiscal years 2016 through 2021, the Secretary shall apportion the sums authorized to be appropriated for expenditure on the national highway performance program under section 119, the surface transportation block grant program under section 133, the highway safety improvement program under section 148, the congestion mitigation and air quality improvement program under section 149, and to carry out section 134 in accordance with paragraph (1).'.

(d) Supplemental Funds- Section 104 of title 23, United States Code, is amended by adding at the end the following:

`(h) Supplemental Funds-

`(1) SUPPLEMENTAL FUNDS FOR NATIONAL HIGHWAY PERFORMANCE PROGRAM-

`(A) AMOUNT- Before making an apportionment for a fiscal year under subsection (c), the Secretary shall reserve for the national highway performance program under section 119 for that fiscal year an amount equal to--

`(i) $53,596,122 for fiscal year 2019;

`(ii) $66,717,816 for fiscal year 2020; and

`(iii) $79,847,397 for fiscal year 2021.

`(B) TREATMENT OF FUNDS- Funds reserved under subparagraph (A) and apportioned to a State under subsection (c) shall be treated as if apportioned under subsection (b)(1), and shall be in addition to amounts apportioned under that subsection.

`(2) SUPPLEMENTAL FUNDS FOR SURFACE TRANSPORTATION BLOCK GRANT PROGRAM-

`(A) AMOUNT- Before making an apportionment for a fiscal year under subsection (c), the Secretary shall reserve for the surface transportation block grant program under section 133 for that fiscal year an amount equal to $819,900,000 pursuant to section 133(h), plus--

`(i) $70,526,310 for fiscal year 2016;

`(ii) $104,389,904 for fiscal year 2017;

`(iii) $148,113,536 for fiscal year 2018;

`(iv) $160,788,367 for fiscal year 2019;

`(v) $200,153,448 for fiscal year 2020; and

`(vi) $239,542,191 for fiscal year 2021.

`(B) TREATMENT OF FUNDS- Funds reserved under subparagraph (A) and apportioned to a State under subsection (c) shall be treated as if apportioned under subsection (b)(2), and shall be in addition to amounts apportioned under that subsection.

`(i) Base Apportionment Defined- In this section, the term `base apportionment' means--

`(1) the combined amount authorized for appropriation for the national highway performance program under section 119, the surface transportation block grant program under section 133, the highway safety improvement program under section 148, the congestion mitigation and air quality improvement program under section 149, and to carry out section 134; minus

`(2) supplemental funds reserved under subsection (h) for the national highway performance program and the surface transportation block grant program.'.

SEC. 1105. NATIONAL HIGHWAY PERFORMANCE PROGRAM.

Section 119 of title 23, United States Code, is amended--

(1) in subsection (e)(7)--

(A) by striking `this paragraph' and inserting `section 150(e)'; and

(B) by inserting `under section 150(e)' after `the next report submitted'; and

(2) by adding at the end the following:

`(h) TIFIA Program- Upon Secretarial approval of credit assistance under chapter 6, the Secretary, at the request of a State, may allow the State to use funds apportioned under section 104(b)(1) to pay subsidy and administrative costs necessary to provide an eligible entity Federal credit assistance under chapter 6 with respect to a project eligible for assistance under this section.

`(i) Additional Funding Eligibility for Certain Bridges-

`(1) IN GENERAL- Funds apportioned to a State to carry out the national highway performance program may be obligated for a project for the reconstruction, resurfacing, restoration, rehabilitation, or preservation of a bridge not on the National Highway System, if the bridge is on a Federal-aid highway.

`(2) LIMITATION- A State required to make obligations under subsection (f) shall ensure such requirements are satisfied in order to use the flexibility under paragraph (1).'.

SEC. 1106. SURFACE TRANSPORTATION BLOCK GRANT PROGRAM.

(a) Findings- Congress finds that--

(1) the benefits of the surface transportation block grant program accrue principally to the residents of each State and municipality where the funds are obligated;

(2) decisions about how funds should be obligated are best determined by the States and municipalities to respond to unique local circumstances and implement the most efficient solutions; and

(3) reforms of the program to promote flexibility will enhance State and local control over transportation decisions.

(b) Surface Transportation Block Grant Program- Section 133 of title 23, United States Code, is amended--

(1) by striking subsections (a), (b), (c), and (d) and inserting the following:

`(a) Establishment- The Secretary shall establish a surface transportation block grant program in accordance with this section to provide flexible funding to address State and local transportation needs.

`(b) Eligible Projects- Funds apportioned to a State under section 104(b)(2) for the surface transportation block grant program may be obligated for the following:

`(1) Construction of--

`(A) highways, bridges, tunnels, including designated routes of the Appalachian development highway system and local access roads under section 14501 of title 40;

`(B) ferry boats and terminal facilities eligible for funding under section 129(c);

`(C) transit capital projects eligible for assistance under chapter 53 of title 49;

`(D) infrastructure-based intelligent transportation systems capital improvements;

`(E) truck parking facilities eligible for funding under section 1401 of MAP-21 (23 U.S.C. 137 note); and

`(F) border infrastructure projects eligible for funding under section 1303 of SAFETEA-LU (23 U.S.C. 101 note).

`(2) Operational improvements and capital and operating costs for traffic monitoring, management, and control facilities and programs.

`(3) Environmental measures eligible under sections 119(g), 328, and 329 and transportation control measures listed in section 108(f)(1)(A) (other than clause (xvi) of that section) of the Clean Air Act (42 U.S.C. 7408(f)(1)(A)).

`(4) Highway and transit safety infrastructure improvements and programs, including railway-highway grade crossings.

`(5) Fringe and corridor parking facilities and programs in accordance with section 137 and carpool projects in accordance with section 146.

`(6) Recreational trails projects eligible for funding under section 206, pedestrian and bicycle projects in accordance with section 217 (including modifications to comply with accessibility requirements under the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.)), and the safe routes to school program under section 1404 of SAFETEA-LU (23 U.S.C. 402 note).

`(7) Planning, design, or construction of boulevards and other roadways largely in the right-of-way of former Interstate System routes or other divided highways.

`(8) Development and implementation of a State asset management plan for the National Highway System and a performance-based management program for other public roads.

`(9) Protection (including painting, scour countermeasures, seismic retrofits, impact protection measures, security countermeasures, and protection against extreme events) for bridges (including approaches to bridges and other elevated structures) and tunnels on public roads, and inspection and evaluation of bridges and tunnels and other highway assets.

`(10) Surface transportation planning programs, highway and transit research and development and technology transfer programs, and workforce development, training, and education under chapter 5 of this title.

`(11) Surface transportation infrastructure modifications to facilitate direct intermodal interchange, transfer, and access into and out of a port terminal.

`(12) Projects and strategies designed to support congestion pricing, including electronic toll collection and travel demand management strategies and programs.

`(13) At the request of a State, and upon Secretarial approval of credit assistance under chapter 6, subsidy and administrative costs necessary to provide an eligible entity Federal credit assistance under chapter 6 with respect to a project eligible for assistance under this section.

`(14) The creation and operation by a State of an office to assist in the design, implementation, and oversight of public-private partnerships eligible to receive funding under this title and chapter 53 of title 49, and the payment of a stipend to unsuccessful private bidders to offset their proposal development costs, if necessary to encourage robust competition in public-private partnership procurements.

`(15) Any type of project eligible under this section as in effect on the day before the date of enactment of the Surface Transportation Reauthorization and Reform Act of 2015, including projects described under section 101(a)(29) as in effect on such day.

`(c) Location of Projects- A surface transportation block grant project may not be undertaken on a road functionally classified as a local road or a rural minor collector unless the road was on a Federal-aid highway system on January 1, 1991, except--

`(1) for a bridge or tunnel project (other than the construction of a new bridge or tunnel at a new location);

`(2) for a project described in paragraphs (4) through (11) of subsection (b);

`(3) for a project described in section 101(a)(29), as in effect on the day before the date of enactment of the Surface Transportation Reauthorization and Reform Act of 2015; and

`(4) as approved by the Secretary.

`(d) Allocations of Apportioned Funds to Areas Based on Population-

`(1) CALCULATION- Of the funds apportioned to a State under section 104(b)(2) (after the reservation of funds under subsection (h))--

`(A) the percentage specified in paragraph (6) for a fiscal year shall be obligated under this section, in proportion to their relative shares of the population of the State--

`(i) in urbanized areas of the State with an urbanized area population of over 200,000;

`(ii) in areas of the State other than urban areas with a population greater than 5,000; and

`(iii) in other areas of the State; and

`(B) the remainder may be obligated in any area of the State.

`(2) METROPOLITAN AREAS- Funds attributed to an urbanized area under paragraph (1)(A)(i) may be obligated in the metropolitan area established under section 134 that encompasses the urbanized area.

`(3) CONSULTATION WITH REGIONAL TRANSPORTATION PLANNING ORGANIZATIONS- For purposes of paragraph (1)(A)(iii), before obligating funding attributed to an area with a population greater than 5,000 and less than 200,000, a State shall consult with the regional transportation planning organizations that represent the area, if any.

`(4) DISTRIBUTION AMONG URBANIZED AREAS OF OVER 200,000 POPULATION-

`(A) IN GENERAL- Except as provided in subparagraph (B), the amount of funds that a State is required to obligate under paragraph (1)(A)(i) shall be obligated in urbanized areas described in paragraph (1)(A)(i) based on the relative population of the areas.

`(B) OTHER FACTORS- The State may obligate the funds described in subparagraph (A) based on other factors if the State and the relevant metropolitan planning organizations jointly apply to the Secretary for the permission to base the obligation on other factors and the Secretary grants the request.

`(5) APPLICABILITY OF PLANNING REQUIREMENTS- Programming and expenditure of funds for projects under this section shall be consistent with sections 134 and 135.

`(6) PERCENTAGE- The percentage referred to in paragraph (1)(A) is--

`(A) for fiscal year 2016, 51 percent;

`(B) for fiscal year 2017, 52 percent;

`(C) for fiscal year 2018, 53 percent;

`(D) for fiscal year 2019, 54 percent;

`(E) for fiscal year 2020, 55 percent; and

`(F) for fiscal year 2021, 55 percent.';

(2) by striking the section heading and inserting `Surface transportation block grant program';

(3) by striking subsection (e);

(4) by redesignating subsections (f) through (h) as subsections (e) through (g), respectively;

(5) in subsection (e)(1), as redesignated by this subsection--

(A) by striking `104(b)(3)' and inserting `104(b)(2)'; and

(B) by striking `fiscal years 2011 through 2014' and inserting `fiscal years 2016 through 2021';

(6) in subsection (g)(1), as redesignated by this subsection, by striking `under subsection (d)(1)(A)(iii) for each of fiscal years 2013 through 2014' and inserting `under subsection (d)(1)(A)(ii) for each of fiscal years 2016 through 2021'; and

(7) by adding at the end the following:

`(h) STP Set-Aside-

`(1) RESERVATION OF FUNDS- Of the funds apportioned to a State under section 104(b)(2) for each fiscal year, the Secretary shall reserve an amount such that--

`(A) the Secretary reserves a total of $819,900,000 under this subsection; and

`(B) the State's share of that total is determined by multiplying the amount under subparagraph (A) by the ratio that--

`(i) the amount apportioned to the State for the transportation enhancements program for fiscal year 2009 under section 133(d)(2), as in effect on the day before the date of enactment of MAP-21; bears to

`(ii) the total amount of funds apportioned to all States for the transportation enhancements program for fiscal year 2009.

`(2) ALLOCATION WITHIN A STATE- Funds reserved for a State under paragraph (1) shall be obligated within that State in the manner described in subsection (d), except that, for purposes of this paragraph (after funds are made available under paragraph (5))--

`(A) for each fiscal year, the percentage referred to in paragraph (1)(A) of that subsection shall be deemed to be 50 percent; and

`(B) the following provisions shall not apply:

`(i) Paragraph (3) of subsection (d).

`(ii) Subsection (e).

`(3) ELIGIBLE PROJECTS- Funds reserved under this subsection may be obligated for projects or activities described in section 101(a)(29) or 213, as such provisions were in effect on the day before the date of enactment of the Surface Transportation Reauthorization and Reform Act of 2015.

`(4) ACCESS TO FUNDS-

`(A) IN GENERAL- A State or metropolitan planning organization required to obligate funds in accordance with paragraph (2) shall develop a competitive process to allow eligible entities to submit projects for funding that achieve the objectives of this subsection. A metropolitan planning organization for an area described in subsection (d)(1)(A)(i) shall select projects under such process in consultation with the relevant State.

`(B) ELIGIBLE ENTITY DEFINED- In this paragraph, the term `eligible entity' means--

`(i) a local government;

`(ii) a regional transportation authority;

`(iii) a transit agency;

`(iv) a natural resource or public land agency;

`(v) a school district, local education agency, or school;

`(vi) a tribal government; and

`(vii) any other local or regional governmental entity with responsibility for or oversight of transportation or recreational trails (other than a metropolitan planning organization or a State agency) that the State determines to be eligible, consistent with the goals of this subsection.

`(5) CONTINUATION OF CERTAIN RECREATIONAL TRAILS PROJECTS- For each fiscal year, a State shall--

`(A) obligate an amount of funds reserved under this section equal to the amount of the funds apportioned to the State for fiscal year 2009 under section 104(h)(2), as in effect on the day before the date of enactment of MAP-21, for projects relating to recreational trails under section 206;

`(B) return 1 percent of those funds to the Secretary for the administration of that program; and

`(C) comply with the provisions of the administration of the recreational trails program under section 206, including the use of apportioned funds described in subsection (d)(3)(A) of that section.

`(6) STATE FLEXIBILITY-

`(A) RECREATIONAL TRAILS- A State may opt out of the recreational trails program under paragraph (5) if the Governor of the State notifies the Secretary not later than 30 days prior to apportionments being made for any fiscal year.

`(B) LARGE URBANIZED AREAS- A metropolitan planning area may use not to exceed 50 percent of the funds reserved under this subsection for an urbanized area described in subsection (d)(1)(A)(i) for any purpose eligible under subsection (b).

`(i) Treatment of Projects- Notwithstanding any other provision of law, projects funded under this section (excluding those carried out under subsection (h)(5)) shall be treated as projects on a Federal-aid highway under this chapter.'.

(c) Technical and Conforming Amendments-

(1) SECTION 126- Section 126(b)(2) of title 23, United States Code, is amended--

(A) by striking `section 213' and inserting `section 133(h)'; and

(B) by striking `section 213(c)(1)(B)' and inserting `section 133(h)'.

(2) SECTION 213- Section 213 of title 23, United States Code, is repealed.

(3) SECTION 322- Section 322(h)(3) of title 23, United States Code, is amended by striking `surface transportation program' and inserting `surface transportation block grant program'.

(4) SECTION 504- Section 504(a)(4) of title 23, United States Code, is amended--

(A) by striking `104(b)(3)' and inserting `104(b)(2)'; and

(B) by striking `surface transportation program' and inserting `surface transportation block grant program'.

(5) CHAPTER 1- Chapter 1 of title 23, United States Code, is amended by striking `surface transportation program' each place it appears and inserting `surface transportation block grant program'.

(6) CHAPTER ANALYSES-

(A) CHAPTER 1- The analysis for chapter 1 of title 23, United States Code, is amended by striking the item relating to section 133 and inserting the following:

`133. Surface transportation block grant program.'.

(B) CHAPTER 2- The item relating to section 213 in the analysis for chapter 2 of title 23, United States Code, is repealed.

(7) OTHER REFERENCES- Any reference in any other law, regulation, document, paper, or other record of the United States to the surface transportation program under section 133 of title 23, United States Code, shall be deemed to be a reference to the surface transportation block grant program under such section.

SEC. 1107. RAILWAY-HIGHWAY GRADE CROSSINGS.

Section 130(e)(1) of title 23, United States Code, is amended to read as follows:

`(1) IN GENERAL-

`(A) SET ASIDE- Before making an apportionment under section 104(b)(3) for a fiscal year, the Secretary shall set aside, from amounts made available to carry out the highway safety improvement program under section 148 for such fiscal year, for the elimination of hazards and the installation of protective devices at railway-highway crossings at least--

`(i) $225,000,000 for fiscal year 2016;

`(ii) $230,000,000 for fiscal year 2017;

`(iii) $235,000,000 for fiscal year 2018;

`(iv) $240,000,000 for fiscal year 2019;

`(v) $245,000,000 for fiscal year 2020; and

`(vi) $250,000,000 for fiscal year 2021.

`(B) INSTALLATION OF PROTECTIVE DEVICES- At least 1/2 of the funds set aside each fiscal year under subparagraph (A) shall be available for the installation of protective devices at railway-highway crossings.

`(C) OBLIGATION AVAILABILITY- Sums set aside each fiscal year under subparagraph (A) shall be available for obligation in the same manner as funds apportioned under section 104(b)(1) of this title.'.

SEC. 1108. HIGHWAY SAFETY IMPROVEMENT PROGRAM.

(a) Definitions-

(1) IN GENERAL- Section 148(a) of title 23, United States Code, is amended--

(A) in paragraph (4)(B)--

(i) in the matter preceding clause (i), by striking `includes, but is not limited to,' and inserting `only includes'; and

(ii) by adding at the end the following:

`(xxv) Installation of vehicle-to-infrastructure communication equipment.

`(xxvi) Pedestrian hybrid beacons.

`(xxvii) Roadway improvements that provide separation between pedestrians and motor vehicles, including medians and pedestrian crossing islands.

`(xxviii) A physical infrastructure safety project not described in clauses (i) through (xxvii).';

(B) by striking paragraph (10); and

(C) by redesignating paragraphs (11) through (13) as paragraphs (10) through (12), respectively.

(2) CONFORMING AMENDMENTS- Section 148 of title 23, United States Code, is amended--

(A) in subsection (c)(1)(A) by striking `subsections (a)(12)' and inserting `subsections (a)(11)'; and

(B) in subsection (d)(2)(B)(i) by striking `subsection (a)(12)' and inserting `subsection (a)(11)'.

(b) Data Collection- Section 148(f) of title 23, United States Code, is amended by adding at the end the following:

`(3) PROCESS- The Secretary shall establish a process to allow a State to cease to collect the subset referred to in paragraph (2)(A) for public roads that are gravel roads or otherwise unpaved if--

`(A) the State does not use funds provided to carry out this section for a project on such roads until the State completes a collection of the required model inventory of roadway elements for the roads; and

`(B) the State demonstrates that the State consulted with affected Indian tribes before ceasing to collect data with respect to such roads that are included in the National Tribal Transportation Facility Inventory.

`(4) RULE OF CONSTRUCTION- Nothing in paragraph (3) may be construed to allow a State to cease data collection related to serious injuries or fatalities.'.

(c) Rural Road Safety- Section 148(g)(1) of title 23, United States Code, is amended--

(1) by striking `If the fatality rate' and inserting the following:

`(A) IN GENERAL- If the fatality rate'; and

(2) by adding at the end the following:

`(B) FATALITIES EXCEEDING THE MEDIAN RATE- If the fatality rate on rural roads in a State, for the most recent 2-year period for which data is available, is more than the median fatality rate for rural roads among all States for such 2-year period, the State shall be required to demonstrate, in the subsequent State strategic highway safety plan of the State, strategies to address fatalities and achieve safety improvements on high risk rural roads.'.

(d) Commercial Motor Vehicle Safety Best Practices-

(1) REVIEW- The Secretary shall conduct a review of best practices with respect to the implementation of roadway safety infrastructure improvements that--

(A) are cost effective; and

(B) reduce the number or severity of accidents involving commercial motor vehicles.

(2) CONSULTATION- In conducting the review under paragraph (1), the Secretary shall consult with State transportation departments and units of local government.

(3) REPORT- Not later than 1 year after the date of enactment of this Act, the Secretary shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Environment and Public Works of the Senate, and make available on the public Internet Web site of the Department, a report describing the results of the review conducted under paragraph (1).

SEC. 1109. CONGESTION MITIGATION AND AIR QUALITY IMPROVEMENT PROGRAM.

(a) Eligible Projects- Section 149(b) of title 23, United States Code, is amended--

(1) in paragraph (7) by striking `or' at the end;

(2) in paragraph (8) by striking the period at the end and inserting `; or'; and

(3) by adding at the end the following:

`(9) if the project or program is for the installation of vehicle-to-infrastructure communication equipment.'.

(b) States Flexibility- Section 149(d) of title 23, United States Code, is amended to read as follows:

`(d) States Flexibility-

`(1) STATES WITHOUT A NONATTAINMENT AREA- If a State does not have, and never has had, a nonattainment area designated under the Clean Air Act (42 U.S.C. 7401 et seq.), the State may use funds apportioned to the State under section 104(b)(4) for any project in the State that--

`(A) would otherwise be eligible under subsection (b) if the project were carried out in a nonattainment or maintenance area; or

`(B) is eligible under the surface transportation block grant program under section 133.

`(2) STATES WITH A NONATTAINMENT AREA-

`(A) IN GENERAL- If a State has a nonattainment area or maintenance area and received funds in fiscal year 2009 under section 104(b)(2)(D), as in effect on the day before the date of enactment of the MAP-21, above the amount of funds that the State would have received based on the nonattainment and maintenance area population of the State under subparagraphs (B) and (C) of section 104(b)(2), as in effect on the day before the date of enactment of the MAP-21, the State may use, for any project that would otherwise be eligible under subsection (b) if the project were carried out in a nonattainment or maintenance area or is eligible under the surface transportation block grant program under section 133, an amount of funds apportioned to such State under section 104(b)(4) that is equal to the product obtained by multiplying--

`(i) the amount apportioned to such State under section 104(b)(4) (excluding the amounts reserved for obligation under subsection (k)(1)); by

`(ii) the ratio calculated under subparagraph (B).

`(B) RATIO- For purposes of this paragraph, the ratio shall be calculated as the proportion that--

`(i) the amount for fiscal year 2009 such State was permitted by section 149(c)(2), as in effect on the day before the date of enactment of the MAP-21, to obligate in any area of the State for projects eligible under section 133, as in effect on the day before the date of enactment of the MAP-21; bears to

`(ii) the total apportionment to such State for fiscal year 2009 under section 104(b)(2), as in effect on the day before the date of enactment of the MAP-21.

`(3) CHANGES IN DESIGNATION- If a new nonattainment area is designated or a previously designated nonattainment area is redesignated as an attainment area in a State under the Clean Air Act (42 U.S.C. 7401 et seq.), the Secretary shall modify, in a manner consistent with the approach that was in effect on the day before the date of enactment of MAP-21, the amount such State is permitted to obligate in any area of the State for projects eligible under section 133.'.

(c) Priority Consideration- Section 149(g)(3) of title 23, United States Code, is amended to read as follows:

`(3) PRIORITY CONSIDERATION-

`(A) IN GENERAL- In distributing funds received for congestion mitigation and air quality projects and programs from apportionments under section 104(b)(4) in areas designated as nonattainment or maintenance for PM2.5 under the Clean Air Act (42 U.S.C. 7401 et seq.) and where regional motor vehicle emissions are not an insignificant contributor to the air quality problem for PM2.5, States and metropolitan planning organizations shall give priority to projects, including diesel retrofits or alternative fuel vehicles, that are proven to reduce direct or indirect emissions of PM2.5.

`(B) USE OF FUNDING- To the maximum extent practicable, funding used in an area described in subparagraph (A) shall be used on the most cost-effective projects and programs that are proven to reduce directly or indirectly emitted fine particulate matter.'.

(d) Priority for Use of Funds in PM2.5 Areas- Section 149(k) of title 23, United States Code, is amended--

(1) in paragraph (1) by striking `such fine particulate' and inserting `directly emitted fine particulate'; and

(2) by adding at the end the following:

`(3) PM2.5 NONATTAINMENT AND MAINTENANCE IN LOW POPULATION DENSITY STATES-

`(A) EXCEPTION- For any State with a population density of 80 or fewer persons per square mile of land area, based on the most recent decennial census, subsection (g)(3) and paragraphs (1) and (2) of this subsection do not apply to a nonattainment or maintenance area in the State if--

`(i) the nonattainment or maintenance area does not have projects that are part of the emissions analysis of a metropolitan transportation plan or transportation improvement program; and

`(ii) regional motor vehicle emissions are an insignificant contributor to the air quality problem for PM2.5 in the nonattainment or maintenance area.

`(B) CALCULATION- If subparagraph (A) applies to a nonattainment or maintenance area in a State, the percentage of the PM2.5 set aside under paragraph (1) shall be reduced for that State proportionately based on the weighted population of the area in fine particulate matter nonattainment.'.

(e) Performance Plan- Section 149(l)(1)(B) of title 23, United States Code, is amended by inserting `emission and congestion reduction' after `achieving the'.

SEC. 1110. NATIONAL HIGHWAY FREIGHT POLICY.

(a) In General- Section 167 of title 23, United States Code, is amended to read as follows:

`Sec. 167. National highway freight policy

`(a) In General- It is the policy of the United States to improve the condition and performance of the National Highway Freight Network established under this section to ensure that the Network provides a foundation for the United States to compete in the global economy and achieve the goals described in subsection (b).

`(b) Goals- The goals of the national highway freight policy are--

`(1) to invest in infrastructure improvements and to implement operational improvements that--

`(A) strengthen the contribution of the National Highway Freight Network to the economic competitiveness of the United States;

`(B) reduce congestion and bottlenecks on the National Highway Freight Network; and

`(C) increase productivity, particularly for domestic industries and businesses that create high-value jobs;

`(2) to improve the safety, security, and resilience of highway freight transportation;

`(3) to improve the state of good repair of the National Highway Freight Network;

`(4) to use innovation and advanced technology to improve the safety, efficiency, and reliability of the National Highway Freight Network;

`(5) to improve the economic efficiency of the National Highway Freight Network;

`(6) to improve the short and long distance movement of goods that--

`(A) travel across rural areas between population centers; and

`(B) travel between rural areas and population centers;

`(7) to improve the flexibility of States to support multi-State corridor planning and the creation of multi-State organizations to increase the ability of States to address highway freight connectivity; and

`(8) to reduce the environmental impacts of freight movement on the National Highway Freight Network.

`(c) Establishment of National Highway Freight Network-

`(1) IN GENERAL- The Secretary shall establish a National Highway Freight Network in accordance with this section to strategically direct Federal resources and policies toward improved performance of the Network.

`(2) NETWORK COMPONENTS- The National Highway Freight Network shall consist of--

`(A) the Interstate System;

`(B) non-Interstate highway segments on the 41,000-mile comprehensive primary freight network developed by the Secretary under section 167(d) as in effect on the day before the date of enactment of the Surface Transportation Reauthorization and Reform Act of 2015; and

`(C) additional non-Interstate highway segments designated by the States under subsection (d).

`(d) State Additions to Network-

`(1) IN GENERAL- Not later than 1 year after the date of enactment of the Surface Transportation Reauthorization and Reform Act of 2015, each State, in consultation with the State freight advisory committee, may increase the number of miles designated as part of the National Highway Freight Network by not more than 10 percent of the miles designated in that State under subparagraphs (A) and (B) of subsection (c)(2) if the additional miles--

`(A) close gaps between segments of the National Highway Freight Network;

`(B) establish connections from the National Highway Freight Network to critical facilities for the efficient movement of freight, including ports, freight railroads, international border crossings, airports, intermodal facilities, warehouse and logistics centers, and agricultural facilities; or

`(C) are part of critical emerging freight corridors or critical commerce corridors.

`(2) SUBMISSION- Each State shall--

`(A) submit to the Secretary a list of the additional miles added under this subsection; and

`(B) certify that the additional miles meet the requirements of paragraph (1).

`(e) Redesignation-

`(1) REDESIGNATION BY SECRETARY-

`(A) IN GENERAL- Effective beginning 5 years after the date of enactment of the Surface Transportation Reauthorization and Reform Act of 2015, and every 5 years thereafter, the Secretary shall redesignate the highway segments designated by the Secretary under subsection (c)(2)(B) that are on the National Highway Freight Network.

`(B) CONSIDERATIONS- In redesignating highway segments under subparagraph (A), the Secretary shall consider--

`(i) changes in the origins and destinations of freight movements in the United States;

`(ii) changes in the percentage of annual average daily truck traffic in the annual average daily traffic on principal arterials;

`(iii) changes in the location of key facilities;

`(iv) critical emerging freight corridors and critical commerce corridors; and

`(v) network connectivity.

`(C) LIMITATION- Each redesignation under subparagraph (A) may increase the mileage on the National Highway Freight Network designated by the Secretary by not more than 3 percent.

`(2) REDESIGNATION BY STATES-

`(A) IN GENERAL- Effective beginning 5 years after the date of enactment of the Surface Transportation Reauthorization and Reform Act of 2015, and every 5 years thereafter, each State may, in consultation with the State freight advisory committee, redesignate the highway segments designated by the State under subsection (c)(2)(C) that are on the National Highway Freight Network.

`(B) CONSIDERATIONS- In redesignating highway segments under subparagraph (A), the State shall consider--

`(i) gaps between segments of the National Highway Freight Network;

`(ii) needed connections from the National Highway Freight Network to critical facilities for the efficient movement of freight, including ports, freight railroads, international border crossings, airports, intermodal facilities, warehouse and logistics centers, and agricultural facilities; and

`(iii) critical emerging freight corridors or critical commerce corridors.

`(C) LIMITATION- Each redesignation under subparagraph (A) may increase the mileage on the National Highway Freight Network designated by the State by not more than 3 percent.

`(D) RESUBMISSION- Each State, under the advisement of the State freight advisory committee, shall--

`(i) submit to the Secretary a list of the miles redesignated under this paragraph; and

`(ii) certify that the redesignated miles meet the requirements of subsection (d)(1).'.

(b) Clerical Amendment- The analysis for chapter 1 of title 23, United States Code, is amended by striking the item relating to section 167 and inserting the following:

`167. National highway freight policy.'.

Read part VI of  Surface Transportation Reauthorization and Reform Act of 2015

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