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 matching highway fund requirement contained in § 33.1-44, Code of Virginia, shall be waived for all new projects approved on or after July 1, 2005.  

E. Local partnership fund balances shall be distributed to qualifying local governments, on a pro rata basis based on eligible project costs.  To qualify, a local government must assume responsibility for administering a local highway construction project and have not administered a project during the period July 1, 2005, though June 30, 2007. Further, use of the funds should be limited to projects with unfunded construction elements in either the secondary or urban six-year improvement programs for projects that have the right-of-way procured and the engineering substantially completed.

F. The Department of Transportation is encouraged to promote the construction and improvement of primary and secondary highways by counties, consistent with Section 33.1-75.3 of the Code of Virginia, whether or not such improvements are contained in the Six-Year Improvement Program or Plan.  If such improvements are not contained in the Six-Year Improvement Program or Plan, the counties may not seek reimbursement from the department for the improvements.