Authority: Title 2.2, Chapter 2, Article 10, § 2.2-201, and Titles 33, 46, and 58, Code of Virginia.

A. The transportation policy goals enumerated in this act shall be implemented by the Secretary of Transportation, including the Secretary acting as Chairman of the Commonwealth Transportation Board.

1. The maintenance of existing transportation assets to ensure the safety of the public shall be the first priority in budgeting, allocation, and spending. The highway share of the Transportation Trust Fund shall be used for highway maintenance and operation purposes prior to its availability for new development, acquisition, and construction.

2. The efficient and cost-effective movement of people and goods will consider the needs in, and connectivity of, all modes of transportation, including bicycling, walking, public transportation, highways, freight and passenger rail, ports, and airports. The planning, development, construction, and operations of Virginia's transportation facilities will reflect this goal.

3. The Secretary of Transportation shall ensure that the planning and evaluation of projects and activities by transportation agencies is consistent with the Principles of Sustainable Community Investment identified in Executive Order 69 (2008).

4. To the greatest extent possible, the appropriation of transportation revenues shall reflect planned spending of such revenues by agency and by program. The maximization of all federal transportation funds available to the Commonwealth shall be paramount in the budgetary, spending, and allocation processes. The secretary is hereby authorized to take all actions necessary to ensure that federal transportation funds are allocated and utilized for the maximum benefit of the Commonwealth, whether such funds are authorized under P.L. 109-59 of the 109th Congress, or any successor or related federal transportation legislation.

B.1. The secretary shall ensure that the allocation of transportation funds apportioned and for which obligation authority is expected to be available under federal law shall be in accordance with such laws and in support of the transportation policy goals enumerated in this act. Furthermore, the secretary is authorized to take all actions necessary to allocate the required match for federal highway funds to ensure their appropriate and timely obligation and expenditure within the fiscal constraints of state transportation revenues. By June 1 of each year, the secretary, as Chairman of the Board, shall report to the Governor and General Assembly on the allocation of such federal transportation funds and the actions taken to provide the required match.

2. Beginning July 1, 2011, in providing the required match for federal Regional Surface Transportation Program funds made available to Metropolitan Planning Organizations in urbanized areas greater than 200,000, the board shall only make allocations to those Metropolitan Planning Organizations that, in consultation with the Office of Intermodal Planning and Investment, have developed regional transportation and land use performance measures pursuant to Chapters 670 and 690 of the 2009 Acts of Assembly and have been approved by the board.

3. Projects funded, in whole or part, from federal funds referred to as congestion mitigation and air quality improvement, shall be selected as directed by the board. Such funds shall be federally obligated within 24 months of their allocation by the board and expended within 48 months of such obligation. If the requirements included in this paragraph are not met by such agency or recipient, then the board shall use such federal funds for any other project eligible under 23 USC 149.

4. Funds apportioned under federal law for the Surface Transportation Program shall be distributed and administered in accordance with federal requirements, including the seven percent that is required to be allocated for public transportation purposes.

5. a. Funds made available to the Metropolitan Planning Organizations known as the Regional Surface Transportation Program for urbanized areas greater than 200,000, in FY 2011 and each fiscal year thereafter shall be federally obligated within 12 months of their allocation by the board and expended within 36 months of such obligation. If the requirements included in this paragraph are not met by the recipient, then the board may rescind the required match for such federal funds.

b. Funds made available to the Metropolitan Planning Organizations known as the Regional Surface Transportation Program for urbanized areas greater than 200,000, in FY 2010 and any preceding fiscal year shall be federally obligated within 12 months of the effective date of this act and expended within 36 months of such obligation.  If the requirements included in this paragraph are not met by the recipient, then the board may rescind the required match for such federal funds.

6. Funds apportioned under federal law for the Equity Bonus program shall be allocated as required by federal law, including the thirteen percent that is required to be allocated for public transportation purposes. Funds for contract fees paid by the Virginia Railway Express for access to the rights-of-way of CSX Transportation, Norfolk Southern Corporation, and the National Railroad Passenger Corporation shall be allocated from the public transportation's portion of federal Equity Bonus program funds.

7. Notwithstanding paragraph B.1. of this Item, the required matching funds for enhancement projects are to be provided by the recipient of the federal-aid funding.

8.a. Federal funds provided to the National Highway System, Surface Transportation Program, Equity Bonus Program, and Congestion Mitigation and Air Quality categories as well as the required state matching funds may be allocated by the Commonwealth Transportation Board for transit purposes under the same rules and conditions authorized by federal law. The Commonwealth Transportation Board, in consultation with the appropriate local and regional entities, may allocate to local and regional public transit operators, for operating and/or capital purposes, state revenues designated by formula for primary, urban, and secondary highways.

b. Federal funds apportioned as the Highway Bridge Program shall be allocated and obligated as required by federal law to eligible projects across the Commonwealth. The Commonwealth Transportation Board shall consider the sufficiency and deficiency ratings of such eligible projects in making their allocations.

9. If a regional area (or areas) of the Commonwealth is determined to be not in compliance with Clean Air Act rules regarding conformity and as a result federal and/or state allocations, apportionments or obligations cannot be used to fund or support transportation projects or programs in that area, such funds may be used to finance demand management, conformity, and congestion mitigation projects to the extent allowed by federal law. Any remaining amount of such allocations, apportionments, or obligations shall be set aside to the extent possible under law for use in that regional area.

10. Appropriations in this act related to federal revenues outlined in this section may be adjusted by the Director, Department of Planning and Budget, upon request from the Secretary of Transportation, as needed to utilize and allocate additional federal funds that may become available.

C. The secretary may ensure that appropriate action is taken to maintain a minimum cash balance and/or cash reserve in the Highway Maintenance and Operating fund.

D.1. The Commonwealth Transportation Board is hereby authorized to apply for, execute, and/or endorse applications submitted by private entities to obtain federal credit assistance for one or more qualifying transportation infrastructure projects or facilities to be developed pursuant to the Public-Private Transportation Act of 1995, as amended. Any such application, agreement and/or endorsement shall not financially obligate the Commonwealth or be construed to implicate the credit of the Commonwealth as security for any such federal credit assistance.

2. The Commonwealth Transportation Board is hereby authorized to pursue or otherwise apply for, and execute, an agreement to obtain financing using a federal credit instrument for project financings otherwise authorized by this Act or other Acts of Assembly.

E. Revenues generated pursuant to the provisions of § 58.1-3221.3, Code of Virginia, shall only be used to supplement, not supplant, any local funds provided for transportation programs within the localities authorized to impose the fees under the provisions of § 58.1-3221.3, Code of Virginia.

F. The Director, Department of Planning and Budget, is authorized to adjust the appropriation of transportation agencies in order to utilize proceeds from the sale of Commonwealth of Virginia Transportation Capital Projects Revenue Bonds which were authorized in the prior fiscal year but not issued, pursuant to Section 2 of Enactment Clause 2 of Chapter 896 of the 2007 General Assembly Session.

G. Pursuant to the provisions of the Memorandum of Agreement between the Commonwealth of Virginia Department of Transportation and the Metropolitan Washington Airports Authority, in conjunction with the construction of rail mass transit in the right of way of the Dulles Access/Toll Road Connector (DATRC), sound walls shall be constructed along residential properties from the beginning of the DATRC to Interstate Route 66 with funding from the Commonwealth Transportation Fund.

H. The Secretary of Transportation is hereby directed to review the Virginia Department of Transportation's vegetation management policies with the objective of evaluating the costs savings associated with limiting mowing and the removal of vegetation only within such distances from actively used pavements or shoulders consistent with traffic safety and convenience.  A proposal for a new vegetation management policy shall by submitted to the Chairmen of the House Transportation and Appropriations Committees and the Senate Finance and Transportation Committees for review and concurrence no later than 60 days before implementation of such policy.  Such proposal shall be submitted to the aforementioned Committees no later than October 15, 2010.

I.1. Oversight of the Virginia Commercial Space Flight Authority is hereby transferred from the Secretary of Commerce and Trade to the Secretary of Transportation.  The Secretary of Transportation shall conduct a review of the Virginia Commercial Space Flight Authority and the Aerospace Advisory Council and make recommendations on operational and competitive needs.  The review shall include, but not be limited too, the adequacy of the composition of the Board of Directors, the competitive standing of the aerospace industry within the region and nationally, identification of other states which provide competition for commercial spaceflight investments and the corresponding governmental organizations and their funding levels.  The Secretary of Transportation shall report to the Chairmen of the House and Senate Committees on Transportation, the House Appropriations Committee, and the Senate Finance Committee no later than December 1, 2011.

2. Upon completion of the operational report by the Secretary of Transportation, the Virginia Commercial Space Flight Authority shall develop a comprehensive Virginia Aerospace Strategic Plan to increase the competitiveness of the Virginia aerospace industry.  The strategic plan shall be delivered to the Secretary of Transportation for his consideration no later than December 1, 2012.

J. Prior to its modal allocation pursuant to § 33.1-23.03:2, Code of Virginia, up to $1,500,000 the second year from the Transportation Trust Fund shall be provided to the Virginia Commercial Space Flight Authority.