Sec. 204. STATE UNOBLIGATED BALANCE FLEXIBILITY

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## SEC. 204 STATE UNOBLIGATED BALANCE FLEXIBILITY ###

(a)Reduction in Federal Funding ####

(1)Notification of states On the date of the enactment of this Act, or as soon as possible thereafter, the Secretary shall notify each State of the total amount of the reduction in authorized funds for fiscal year 1996 that would have been allocated to such State, and that would have been apportioned to such State, as a result of application of section 1003(c) of the Intermodal Surface Transportation Efficiency Act of 1991. ####

(2)Exclusion of certain funding In determining the amount of any reduction under paragraph (1), the Secretary shall deduct the amount allocated to each State in fiscal year 1996 to carry out projects under section 202 of this Act. ###

(b)Unobligated Balance Flexibility Upon request of a State, the Secretary shall make available to carry out projects eligible for assistance under chapter 1 of title 23, United States Code, in fiscal year 1996 an amount not to exceed the amount determined under subsection

(a)for the State. Such funds shall be made available from authorized funds that were allocated or apportioned to such State and were not obligated as of September 30, 1995. The State shall designate on or before the 30th day following the date of the enactment of this Act, or as soon as possible thereafter, which of such authorized funds are to be made available under this section to carry out such projects. The Secretary shall make available, before the 45th day following such date of enactment or as soon as possible thereafter, funds designated under the preceding sentence to the State. ###

(c)Special Rules ####

(1)Urbanized areas of over 200,000 Funds that were apportioned to the State under section 104(b)(3) of title 23, United States Code, and attributed to urbanized areas of a State with an urbanized population of over 200,000 under section 133(d)(3) of such title may be designated by the State under subsection

(b)only if the metropolitan planning organization designated for such area concurs, in writing, with such designation. ####

(2)Congestion mitigation and air quality and surface transportation program transportation enhancement activities balances #####

(A)In general Except as provided in subparagraph (B), States may not designate under subsection

(b)CMAQ and STP transportation enhancement funds. #####

(B)Exception for insufficient funding availability If the Secretary determines— ######

(i)that there is not sufficient funding available to pay the Federal share of the cost of a project in fiscal year 1996 from funds apportioned or allocated to a State under title 23, United States Code, and title I of the Intermodal Surface Transportation Efficiency Act of 1991 and available for carrying out projects of the same category as such project, and ######

(ii)that the State has utilized all flexibility and transferability available to it under title 23, United States Code, and this section with respect to such project, the State may designate in fiscal year 1996 under subsection

(b)CMAQ and STP transportation enhancement funds apportioned or allocated to the State and not obligated as of the date of the enactment of this Act to carry out such project. #####

(C)CMAQ and stp transportation enhancement funds defined In this paragraph, the term “**CMAQ and STP transportation enhancement funds**” means— ######

(i)funds apportioned under section 104(b)(2) of title 23, United States Code; and ######

(ii)funds apportioned under section 104(b)(3) of such title and available only for transportation enhancement activities under section 133(d)(3) of such title. ####

(3)Interstate construction balances A State may not designate under subsection

(b)more than ⅓ of funds apportioned or allocated to the State for interstate construction and not obligated as of the date of the enactment of this Act. ###

(d)Applicability of Chapter 1 of Title 23 Notwithstanding any other provision of law, amounts designated under subsection

(b)shall be made available for obligation in the same manner as if such funds were apportioned under chapter 1 of title 23, United States Code. Such amounts shall be available for obligation for the same period for which such amounts were originally made available for obligation. Obligation limitations for Federal-aid highways and highway safety construction programs established by the Intermodal Surface Transportation Efficiency Act of 1991 and subsequent laws shall apply to obligations made under this section. ###

(e)Limitation on Statutory Construction Nothing in this section shall be construed to affect calculations under section 157 of title 23, United States Code, and sections 1002(e), 1013(c), 1015(a), and 1015(b) of the Intermodal Surface Transportation Efficiency Act of 1991. ###

(f)State In this section and section 202, the term “**State**” has the meaning such term has under section 401 of title 23, United States Code.