Authority: Title 33.1, Chapter 1, Code of Virginia.

A. Notwithstanding §§ 33.1-23.5:1 and 33.1-41.1, Code of Virginia, the Department of Transportation shall adjust for inflation the payments made as part of Financial Assistance to Localities distributions and report such inflation adjustment to the Commonwealth Transportation Board.

B. Out of the amounts for Financial Assistance for Planning, Access Road, and Special Projects, $7,000,000 the first year and $7,000,000 the second year from the Commonwealth Transportation Fund shall be allocated for purposes set forth in §§ 33.1-221, 33.1-221.1:1, and 33.1-223, Code of Virginia. Of this amount, the allocation for Recreational Access Roads shall be $1,500,000 the first year and $1,500,000 the second year.

C. Out of the amounts for Financial Assistance for Planning, Access Roads, and Special Projects, $50,000 the first year and $50,000 the second year from the Commonwealth Transportation Fund shall be provided to support the transportation planning activities of the Northern Virginia Transportation Authority. The Authority shall comply with all applicable federal and state regulations to receive the funds.

D. For any city or town that assumes responsibility for its construction program as outlined in § 33.1-23.3 D, Code of Virginia, the two percent matching highway fund requirement shall be waived for all new projects  approved on or after July 1, 2005.