Authority: Title 2.1, Chapter 5.10 and § 2.1-51.10:l, Code of Virginia.

A. Pending the General Assembly's future action on the distribution of transportation revenues, the Commonwealth Transportation Board is hereby authorized to enter into project agreements with the United States Government to secure the maximum level of federal funding for transportation programs in the Commonwealth, including agreements that provide for the allocation of funds necessary to comply with federal law but which allocation may differ from formulae provided in the Code of Virginia in the following areas:

1. Funds apportioned under federal law to the National Highway System shall be treated, for State formulae purposes, as interstate funds, pursuant to § 33.1-23.1, Code of Virginia; and

2. Funds apportioned under federal law for congestion mitigation and air quality improvement shall be allocated to designated transportation projects in clean air non-attainment areas of the Commonwealth in addition to funds allocated to these areas pursuant to § 33.1-23.1, Code of Virginia; and

3. Funds apportioned under federal law for the Surface Transportation Program shall be distributed and administered in accordance with federal requirements, as follows:

a. Ten percent shall be set aside for a statewide safety program, with grants made on a competitive basis;

b. Ten percent shall be set aside for a statewide enhancement program, with grants made on a competitive basis;

c. Fifty percent shall be allocated on the basis of population, as prescribed by federal law; and

d. Thirty percent shall be allocated pursuant to § 33.1-23.1 of the Code of Virginia.

4. Federal requirements shall be followed regarding that portion of Equity funds apportioned to the Commonwealth that are to be allocated on the basis of population. Such equity funds include minimum allocation, hold harmless, reimbursement, payments guarantee and donor state bonus.

5. The balance of Equity funds apportioned to the Commonwealth shall be allocated to eligible projects at the discretion of the Commonwealth Transportation Board. After each action to allocate funds under this provision, the Commonwealth Transportation Board shall submit to the House Appropriations and Senate Finance Committees a list of such approved projects and the rationale for such approval.

6. Funds allocated pursuant to § 33.1-23.1 B.2 and B.3, Code of Virginia may be utilized on any project eligible under Title 23 United States Code Section 133, upon request of the local governing body and approval of the Commonwealth Transportation Board.

7. Federal funds provided to the National Highway System, Surface Transportation 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.

8. The foregoing provisions shall expire June 30, 1998.

B. In accordance with § 62.1-132.3 of the Code of Virginia and the identified long-term need for a fourth general cargo marine terminal in the Port of Hampton Roads, the Secretary of Transportation is directed to form a committee to study the potential expansion of the eastern side of the Craney Island Dredged Material Management Area (CIDMMA) for use as a site for a fourth general cargo marine terminal. The committee shall include representatives of the Virginia Port Authority and the City of Portsmouth, as designated by their governing bodies. Such examination shall take into account relevant environmental issues, the potential imposition of an equitable fee payable to the City of Portsmouth for placement of dredge materials on Craney Island, land use and transportation issues which may arise from or in association with a fourth general cargo marine terminal at this location, obtaining greater certainty about the means and schedule by which Craney Island will revert from the federal government to Virginia, and the subsequent transfer of a major portion of Craney Island to Portsmouth. The committee shall not consider any westward or northern expansion of Craney Island, provided that the committee may consider adjustment of the northern boundary for the purpose of environmental mitigation but not for expansion of capacity. The limitations imposed by § 62.1-132.20 A of the Code of Virginia shall remain in effect, except to the extent necessarily modified by the paragraph. The Secretary shall make a progress report to the Senate Finance and House Appropriations Committees by December 1, 1997.

C. The Secretary of Transportation, with the assistance and cooperation of the Secretary of Health and Human Resources and the Secretary of Commerce and Trade, shall prepare an analysis and make recommendations concerning the transportation needs required to successfully implement welfare reform throughout the Commonwealth. No later than November 1, 1997, the Secretary shall submit a report on such matters to the Governor and Chairmen of the Senate Finance and House Appropriations Committees.

D. By December 31 of each fiscal year, the Secretary of Transportation shall report to the Chairmen of the House Appropriations and Senate Finance Committees on the current balance and the estimated balance at the end of the fiscal year in which the report is required for each subprogram of each department and agency in the Transportation Secretariat, providing breakdowns by major categories within the subprograms and providing explanations on whether the balance is encumbered or committed. By August 31, the Secretary also shall report on the actual balances carried forward from the prior fiscal year to the next fiscal year for each subprogram of each department and agency in the secretariat. The Secretary shall consult with the Chairmen of the Committees on the format and content of the reports.

E. The Secretary of Transportation, in consultation with the Commonwealth Transportation Board, shall study whether to establish an Intermodal Coordinating Council, as a possible adjunct to the Commonwealth Transportation Board. The study shall examine whether such a council would be useful in overseeing and coordinating policies related to intermodal transportation connections in the Commonwealth. The Secretary shall report his findings and recommendations to the General Assembly no later than December 1, 1997.