Sec. 1403. Carbon reduction incentive programs
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Chapter 1 of title 23, United States Code (as amended by section 1203(a)), is amended by adding at the end the following: In this section: The terms metropolitan planning organization and urbanized area have the meaning given those terms in section 134(b). The term transportation emissions means carbon dioxide emissions from on-road highway sources of those emissions within a State. The term transportation management area means a transportation management area identified or designated by the Secretary under section 134(k)(1).
For each fiscal year, the Secretary shall distribute among the States the amounts made available to carry out this section for that fiscal year in accordance with paragraph (2). The amount for each State shall be determined by multiplying the total amount made available to carry out this section for the applicable fiscal year by the ratio that— the total base apportionment for the State under section 104(c); bears to the total base apportionments for all States under section 104(c).
A State shall use 50 percent of the amount distributed to the State under subsection
(b)for each fiscal year to carry out activities under paragraph (2). Subject to paragraph (3), a State and any metropolitan planning organization that is required to obligate funds in accordance with subsection
(e)shall use the funds under paragraph
(1)for activities designed to reduce transportation emissions, including— a project described in paragraph (4), (5), (7), or
(8)of subsection
(b)of section 149 or subsection (c)(2) of that section, regardless of whether the project— is located in an area designated as a nonattainment or maintenance area, as described in section 149(b); or is likely to contribute to the attainment or maintenance in the area of a national ambient air quality standard; a project that is eligible for assistance under section 142; a project for the provision of facilities for pedestrians and bicyclists (including the conversion and use of rail corridors for pedestrian and bike trails); a project that is described in section 503(c)(4)(E); a project to reduce emissions from port-related equipment and vehicles; a project to replace street lighting and traffic control devices with energy efficient alternatives; and the development of a carbon reduction strategy under subsection (d)(1)(A). No funds provided under paragraph
(1)may be used for a project that will result in the construction of new capacity available to single-occupant vehicles. The Federal share of the cost of a project carried out with funds under paragraph
(1)shall be determined in accordance with section 120. A State may, in consultation with a metropolitan planning organization within the State, develop a carbon reduction strategy. If a State develops a carbon reduction strategy under subparagraph (A), the carbon reduction strategy shall— identify projects and strategies to reduce transportation emissions, which may include projects and strategies for safe, reliable, and cost-effective options— to reduce traffic congestion on Federal-aid highways located within the State or the area served by the metropolitan planning organization, as applicable; to facilitate the use of alternatives to single-occupant vehicle trips, including public transportation facilities, pedestrian facilities, bicycle facilities, and shared or pooled vehicle trips within the State or an area served by the metropolitan planning organization, if any; to facilitate the use of vehicles or modes of travel that result in lower transportation emissions per person-mile traveled; and to facilitate approaches to transportation asset construction and maintenance that result in lower transportation emissions; set targets for the reduction of transportation emissions and implementation of the projects and strategies identified under clause (i); be appropriate to the population density and context of the State, including a metropolitan planning organization within the State, if any; provide a reasonable opportunity for participation and review by interested parties within the State; be updated not less frequently than once every 3 years; and be reviewed and certified by the Secretary to have met the requirements of this subparagraph. A State shall use 50 percent of the amounts made available to the State under subsection
(b)for each fiscal year for the eligible activities under subparagraph (B). A State and any metropolitan planning organization in the State that is required to obligate funds in accordance with subsection
(e)may use the funds under subparagraph
(A)for a project or strategy described in subsection (c)(2). In addition to the eligible activities under clause (i), a State and any metropolitan planning organization in the State that is required to obligate funds in accordance with subsection
(e)may use the funds under subparagraph
(A)for a project eligible under section 133(b) if— the State has, within the fiscal year prior to the fiscal year in which the Secretary is making the grant or by a deadline established by the Secretary in the fiscal year in which the Secretary is making the grant, developed a carbon reduction strategy under paragraph (1)(A) that has been approved by the Secretary under clause
(vi)of that paragraph; or the State or metropolitan planning organization has, within the 4 fiscal years prior to the fiscal year in which the Secretary is making the grant or by a deadline established by the Secretary in the fiscal year in which the Secretary is making the grant, incorporated a carbon reduction strategy under paragraph (1)(A) into— a long-range transportation plan developed by the metropolitan planning organization under section 134(c), if any; and the long-range statewide transportation plan developed by the State under section 135(f)(1). The Federal share of the cost of a project carried out using funds under subparagraph
(A)shall be— in the case of a State or metropolitan planning organization within a State that meets the requirements under subparagraph (B)(ii), up to 100 percent, at the discretion of the State; and in the case of a State or metropolitan planning organization within a State that is not described in clause (i), determined in accordance with section 120. For each fiscal year, of the funds made available to a State under subsections
(c)and (d)— 65 percent of each amount shall be obligated, in proportion to their relative shares of the population of the State— in urbanized areas of the State with an urbanized area population of over 200,000; and in other areas of the State; and the remainder may be obligated in any area of the State. 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. Except as provided in subparagraph (B), the amount 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. 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. Before obligating funds for an eligible activity under subsection
(c)or
(d)in an urbanized area that is not a transportation management area, a State shall consult with any metropolitan planning organization that represents the urbanized area prior to determining which activities should be carried out. Before obligating funds for an eligible activity under subsection
(c)or
(d)in a rural area, a State shall consult with any regional transportation planning organization or metropolitan planning organization that represents the rural area prior to determining which activities should be carried out. In this section: The terms metropolitan planning organization and urbanized area have the meaning given those terms in section 134(b). The term qualifying State means a State in which— the average annual transportation emissions within the State has grown more slowly or declined during the most recent 2-calendar-year period for which data are available for transportation emissions at the time the Secretary is making the grant under this section, as compared to the 2-calendar-year period that immediately precedes that period; or the average annual transportation emissions within the State, as estimated on a per capita basis, has grown more slowly or declined during the most recent 2-calendar-year period for which data are available for transportation emissions at the time the Secretary is making the grant under this section, as compared to the 2-calendar-year period that immediately precedes that period. The term qualifying unit of local government means a unit of local government in an urbanized area served by a metropolitan planning organization, in which— the average annual transportation emissions within the urbanized area has grown more slowly or declined during the most recent 2-calendar-year period for which data are available for transportation emissions at the time the Secretary is making the grant under this section, as compared to the 2-calendar-year period that immediately precedes that period; or the average annual transportation emissions within the urbanized area, as estimated on a per capita basis, has grown more slowly or declined during the most recent 2-calendar-year period for which data are available for transportation emissions at the time the Secretary is making the grant under this section, as compared to the 2-calendar-year period that immediately precedes that period. The term transportation emissions has the meaning given the term in section 177(a). The Secretary shall establish a competitive grant program to award grants to eligible entities in recognition of the achievement of the eligible entity in meeting the performance categories described in paragraph (3)(A). The Secretary shall distribute amounts under paragraph
(1)to any of the following: A qualifying State. A qualifying unit of local government. The Secretary shall select eligible entities to receive a grant under paragraph
(1)to recognize the achievement of the eligible entity in meeting any of the following performance categories: A significant reduction in transportation emissions, as estimated on a per unit of economic output basis. A significant reduction in transportation emissions, as estimated on a per capita basis. Transportation emissions, as estimated on a per unit of economic output basis, that are among the lowest of jurisdictions with comparable population and surface transportation system characteristics. Transportation emissions, as estimated on a per capita basis, that are among the lowest of jurisdictions with comparable population and surface transportation system characteristics. Innovative planning efforts and the implementation of a carbon reduction strategy under section 177(d)(1)(A) or plans that lead to a reduction in transportation emissions. In selecting among eligible entities to receive grants under paragraph
(1)and the amount of each of those grants, the Secretary shall give priority to eligible entities that have achieved the most significant levels of reductions of transportation emissions, as estimated on either a per unit of economic basis or on a per capita basis. The Secretary may— award a grant under paragraph
(1)to multiple eligible entities for each performance category described in subparagraph (A); and recognize achievements in each performance category described in subparagraph (A)— in urban and rural areas; and on the State and local level. The Secretary may not award a grant under this subsection to the same eligible entity more than once in a 2-year period. A grant under paragraph
(1)shall be in an amount— not less than $5,000,000; and not more than $30,000,000. An eligible entity may use a grant under paragraph
(1)for— an activity eligible under this title; and a project— to maintain the condition of a Federal-aid highway, including routine maintenance; or that— responds to a specific condition or event; and restores a Federal-aid highway to a functional state of operations. To be eligible to receive a grant under paragraph (1), an eligible entity shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require. The Federal share of the cost of a project carried out using a grant under paragraph
(1)shall be, as determined at the discretion of the grant recipient, up to 100 percent. . The analysis for chapter 1 of title 23, United States Code (as amended by section 1203(b)), is amended by inserting after the item relating to section 176 the following: 177. Formula carbon reduction incentive program. 178. Carbon reduction performance program. .