Sec. 11107. FEDERAL SHARE PAYABLE

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## SEC. 11107 FEDERAL SHARE PAYABLE Section 120 of title 23, United States Code, is amended— ####

(1)in subsection (c)— #####

(A)in paragraph (1), in the first sentence, by inserting “vehicle-to-infrastructure communication equipment,” after “breakaway utility poles,”; #####

(B)in subparagraph (3)(B)— ######

(i)in clause (v), by striking “or” at the end; ######

(ii)by redesignating clause

(vi)as clause (vii); and ######

(iii)by inserting after clause

(v)the following: > > ###### “(vi) > > contractual provisions that provide safety contingency funds to incorporate safety enhancements to work zones prior to or during roadway construction activities; or” > ; and #####

(C)by adding at the end the following: > > #### “(4) Pooled funding > > Notwithstanding any other provision of law, the Secretary may waive the non-Federal share of the cost of a project or activity under section 502(b)(6) that is carried out with amounts apportioned under section 104(b)(2) after considering appropriate factors, including whether— > > > ##### “(A) > > decreasing or eliminating the non-Federal share would best serve the interests of the Federal-aid highway program; and > > > ##### “(B) > > the project or activity addresses national or regional high priority research, development, and technology transfer problems in a manner that would benefit multiple States or metropolitan planning organizations.” > ; ####

(2)in subsection (e)— #####

(A)in paragraph (1), by striking “180 days” and inserting “270 days”; and #####

(B)in paragraph (4), by striking “permanent”; and ####

(3)by adding at the end the following: > > ### “(l) Federal Share Flexibility Pilot Program > > > #### “(1) Establishment > > Not later than 180 days after the date of enactment of the Surface Transportation Reauthorization Act of 2021, the Secretary shall establish a pilot program (referred to in this subsection as the ‘pilot program’) to give States additional flexibility with respect to the Federal requirements under this section. > > > #### “(2) Program > > > ##### “(A) In general > > Notwithstanding any other provision of law, a State participating in the pilot program (referred to in this subsection as a ‘participating State’) may determine the Federal share on a project, multiple-project, or program basis for projects under any of the following: > > > ###### “(i) > > The national highway performance program under section 119. > > > ###### “(ii) > > The surface transportation block grant program under section 133. > > > ###### “(iii) > > The highway safety improvement program under section 148. > > > ###### “(iv) > > The congestion mitigation and air quality improvement program under section 149. > > > ###### “(v) > > The national highway freight program under section 167. > > > ###### “(vi) > > The carbon reduction program under section 175. > > > ###### “(vii) > > Subsection

(c)of the PROTECT program under section 176. > > > ##### “(B) Requirements > > > ###### “(i) Maximum federal share > > Subject to clause (iii), the Federal share of the cost of an individual project carried out under a program described in subparagraph

(A)by a participating State and to which the participating State is applying the Federal share requirements under the pilot program may be up to 100 percent. > > > ###### “(ii) Minimum federal share > > No individual project carried out under a program described in subparagraph

(A)by a participating State and to which the participating State is applying the Federal share requirements under the pilot program shall have a Federal share of 0 percent. > > > ###### “(iii) Determination > > The average annual Federal share of the total cost of all projects authorized under a program described in subparagraph

(A)to which a participating State is applying the Federal share requirements under the pilot program shall be not more than the average of the maximum Federal share of those projects if those projects were not carried out under the pilot program. > > > ##### “(C) Selection > > > ###### “(i) Application > > A State seeking to be a participating State shall— > > > ###### “(I) > > submit to the Secretary an application in such form, at such time, and containing such information as the Secretary may require; and > > > ###### “(II) > > have in place adequate financial controls to allow the State to determine the average annual Federal share requirements under the pilot program. > > > ###### “(ii) Requirement > > For each of fiscal years 2022 through 2026, the Secretary shall select not more than 10 States to be participating States.” > .