Authority: Title 33.2, Chapter 3; Code of Virginia; Chapters 8, 9, and 12, Acts of Assembly of 1989, Special Session II.

A. From the appropriation for specialized state and federal programs funds shall be distributed as follows:

1. $108,071,298 the first year and $113,028,115 the second year in federal state and matching funds shall be allocated for regional Surface Transportation Block Grant Funds and distributed to applicable metropolitan planning organizations pursuant to 23 USC 133;

2. $53,122,502 the first year and $53,122,502 the second year in federal and state matching funds shall be allocated for the Highway Safety Improvement Program pursuant to 23 USC 148;

3. $78,058,001 the first year and $77,859,551 the second year in federal and state matching funds shall be allocated for the Congestion Mitigation Air Quality program pursuant to 23 USC 149;

4. $100,000,000 the first year and $100,000,000 the second year shall be allocated for the Revenue Sharing Program pursuant to § 33.2-357, Code of Virginia;

5. $20,265,939 the first year and $20,089,434 the second year in federal funds shall be allocated for the Surface Transportation Block Grant Program Set-Aside to 23 USC 133(h).

6. $424,441,132 the first year and $345,367,043 the second year in appropriation represents the estmated project participation costs from localities and regional entities.

7. $150,908,817 the second year in this appropriation represents the bond proceeds to be used for the Route 58 Corridor Development Program.

8. $2,736,051 the first year and $4,183,261 the second year in state funds shall be allocated to the Virginia Transportation Infrastructure Bank pursuant to § 33.2-1500 et seq, Code of Virginia.

9. $1,368,025 the first year and $2,091,630 the second year in state funds shall be allocated to the Transportation Partnership Opportunity Fund pursuant to § 33.2-1529.1, Code of Virginia.

B. Notwithstanding § 33.2-358, Code of Virginia, the proceeds from the lease or sale of surplus and residue property purchased under this program in excess of related costs shall be applied to the State of Good Repair Program pursuant to § 33.2-369, Code of Virginia. Proceeds must be used on Federal Title 23 eligible projects.

C. The Director of the Department of Planning and Budget is authorized to increase the appropriation as needed to utilize amounts available from prior year balances in the dedicated funds and adjust items to the most recent Commonwealth Transportation Board budget.

D. Funds appropriated for legacy formula construction programs shall be used for the purposes enumerated in subsection C of § 33.2-358, Code of Virginia, or as previously appropriated.

E. Included in the amounts for specialized state and federal programs is the reappropriation of $145,700,000 the first year and $131,300,000 the second year from bond proceeds or dedicated special revenues for anticipated expenditure of amounts collected in prior years. The amounts will be provided from balances in the Capital Projects Revenue Bond Fund, Federal Transportation Grant Anticipation Revenue Bond Fund, Northern Virginia Transportation District Fund, State Route 28 Highway Improvement District Fund, U.S. Route 58 Corridor Development Fund and the Priority Transportation Fund. These amounts were originally appropriated when received or forecasted and are not related to FY 2017 and FY 2018 estimated revenues.

F. The Director of the Department of Planning and Budget is authorized to increase the appropriation as needed to utilize amounts available from prior year balances in the Consession Payments Account to support project activities.

G. For funds allocated in § 58.1-1741, Code of Virginia, to state of good repair purposes for fiscal year 2019 and fiscal year 2020, the distribution of funding in subsections (B) and (C) of § 33.2-369, Code of Virginia, will not apply. The Commonwealth Transportation Board may allocate funds to state of good repair purposes for reconstruction and replacement of structurally deficient state and locally owned bridges and reconstruction and rehabilitation of pavement on the interstate system and primary state highway system determined to be deteriorated by the board, including municipality-maintained primary extensions, as well as to work related to the condition assessment and pavement rehabilitation of secondary highways and other related work to improve secondary highways.

H. The Commonwealth Transportation Board shall, no later than December 1, 2018, review and report to the Chairmen of the House and Senate Committees on Transportation, the Joint Transportation Accountability Commission, the House Committee on Appropriations and the Senate Committees on Finance, on the overall condition and funding needs of large and unique bridge and tunnel structures in the Commonwealth. As part of the review, the Board shall make recommendations addressing funding of such projects within the State of Good Repair program. In developing these recommendations the Board shall assess the impact of establishing a set aside from the State of Good Repair funding pot, limited use of the provisions of § 33.2-369 B., Code of Virginia, which allows for the waiving of district minimum caps in a single year, or such other options as they might identify.