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. An estimated $115,575,647 the first year and $117,783,238 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. An estimated $44,338,091 the first year and $45,224,852 the second year in federal and state matching funds shall be allocated for the Promoting Resilient Operations for Transformative, Efficient, and Cost-saving Transportation Program pursuant to 23 USC 176;

3. An estimated $83,848,855 the first year and $208,066,648 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. $197,288,735 the first year and $208,066,648 the second year shall be allocated for the Revenue Sharing Program pursuant to § 33.2-357, Code of Virginia;

5. An estimated $20,265,939 the first year and $20,087,475 the second year in federal funds shall be allocated for the Surface Transportation Block Grant Program Set-Aside to 23 USC 133(h).

6. An estimated $1,433,969,013 the first year and $887,356,470 the second year in appropriation represents the estimated project participation costs from localities and regional entities.

7. $152,200,000 the second year in this appropriation represents the bond proceeds to be used for the Route 58 Corridor Development Program.

8. $15,333,333 the first year and $15,333,333 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. $10,044,671 the first year and $10,044,011 the second year in state funds shall be allocated to the Transportation Partnership Opportunity Fund pursuant to § 33.2-1529.1, Code of Virginia;

10. An estimated $34,768,959 in the first year and $35,464,338 in the second year in federal and state matching funds shall be allocated for the Carbon Reduction Program pursuant to 23 USC 175.

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 $495,800,000 the first year and $559,900,000 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, Interstate 81 Corridor Improvement Program, Interstate Operations and Enhancement Program, Concession Funds from the Interstate 95 Express Lanes and Interstate 66 Outside-the-Beltway Project Agreements and the Priority Transportation Fund. These amounts were originally appropriated when received or forecasted and are not related to estimated revenues of the current biennium.

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 Concession Payments Account to support project activities.

G. Included in the amounts for district grant programs is $104,300,000 the first year and $105,400,000 the second year from the regional fuels tax distributed pursuant to subsection E of § 58.1-2290.20.

H. In the instance where there is a reduction in the prescribed weight of any vehicle or combination of vehicles passing over any bridge, or bridges constituting a part of the interstate, primary, or secondary system of highways, in addition to posting signage in accordance with § 46.2-1104, Code of Virginia, the Department shall make a good faith effort to notify businesses in the surrounding area of the reduction in prescribed weight via electronic, telephone or mail as well as posting in local media in the surrounding localities. The Department shall continue to maintain an updated website, and related social media pages, and shall work with its local partners to develop an electronic communication list to facilitate seamless notification of all businesses using the route for transportation purposes in the surrounding area.

I.1 Included in these amounts, $41,500,000 the first year from the general fund is provided for the establishment of the State Trails Office within the Department of Transportation, consistent with the recommendations of the January 2022 report on the "Virginia Multi-Use Trails Initiative." In addition, the Board shall set-aside $7,000,000 in the first year and $7,000,000 in the second year from funds received for the Transportation Alternatives Program pursuant to 23 USC 133(h) for regional multi-use trails. Priority shall be given by the Board to new regional trails, projects to improve connectivity of existing trail networks, and geographic diversity in the use of such funds. Funds may be awarded through a competitive solicitation conducted by the Board.

2. Prior to July 15, 2022, up to $800,000 of these amounts shall be transferred to Item 451 to support the initial operational overhead costs of establishing the State Trails Office and for the development of a State Trails Plan and State Trails Information Clearinghouse. In developing the initial State Trails Plan, the State Trails Office shall coordinate with the State Trails Advisory Committee and the Department of Conservation and Recreation to ensure consistency with the Virginia Outdoors Plan.

3. Out of the amounts appropriated for the State Trails Office included in this paragraph, and funding carried forward from the 2020-22 biennium, allocations shall be provided as follows:

a. Up to $35.0 million shall be allocated to the Shenandoah Valley Rail Trail for the purposes of land acquisition, initial planning, and site development. Any land acquisition by the Commonwealth as part of this trail's development shall not preclude the consideration of options to maintain rail transportation in the corridor.

b. $12.5 million shall be allocated for the Craig Valley Trail.

c. $1.25 million shall be allocated for the Peaks to Creeks Trail.

d. $1.25 million shall be allocated to the Tobacco Heritage Trail.

e. $4.0 million shall be allocated to the Eastern Shore Rail Trail.

f. Any remaining funding provided for trails shall be allocated by the Commonwealth Transportation Board to the trails listed above, as needed, the Fall Line Trail, or any other trail that has applied for funding that meets the criteria set out in subparagraph 1. above.

J. Included in these amounts, $5,000,000 the first year from the general fund shall be transferred to Item 447 for deposit to the Transit Ridership Incentive Fund, established pursuant to § 33.2-1526.3, Code of Virginia, and consistent with the provisions of § 4-13.00 of this act, for regional connectivity programs focused on congestion reduction and mitigation through the provision of long-distance commuter routes.

K. Up to $5,000,000 from the general fund in the first year from this item is provided for deposit to the special structures share of the Transportation Trust Fund to expedite the replacement of the Robert O. Norris Bridge.

L.1. Up to $260,000,000 from the general fund in the second year  is provided to improve Interstate 64 between Exit 205 and Exit 234 with priority given to enhancements that provide long-term traffic flow improvements for the full 29-mile corridor.

2. Of the amounts included in the second year, $150,000,000 represents the appropriation of excess fiscal year 2022 general fund revenues reserved by the Comptroller in the Committed Fund balance pursuant to Item 485 L. of this act.

M. Appropriations from the general fund provided in this item shall be transferred to the appropriate nongeneral fund detail for expenditure.

N. Notwithstanding any other provision of law, any general fund amounts allocated by the Commonwealth Transportation Board in the Six-Year Improvement Program to a transportation project that are unspent at the end of the fiscal year shall not revert to the general fund, but shall be carried over to the next fiscal year for the identified purposes.

O.1. Out of the June 30, 2023, uncommitted balance in the Virginia Transportation Infrastructure Bank, $75,000,000 shall be transferred to the Transportation Partnership Opportunity Fund to support major economic development initiatives, in accordance with Chapters 546 and 547, 2023 Acts of Assembly.

2. Of the amounts in the Transportation Partnership Opportunity Fund, $4,800,000 the second year is provided to the City of Portsmouth to be used as the local match for the Complete High Street Innovation Corridor Project to provide multi-modal, complete streets roadway improvements along High Street between Martin Luther King Expressway to Chestnut Street. As a condition of receipt of this funding, the City shall provide, to the satisfaction of the Commissioner of Highways, evidence of federal Rebuilding American Infrastructure with Sustainability and Equity discretionary grant funding totaling at least $19.3 million for the project.

3. Of the amounts in the Transportation Partnership Opportunity Fund, up to $11,000,000 the second year is provided to effectuate the purchase of a site, which is approximately 545 acres, adjacent to the NASA Wallops Flight Facility to support development and prevent encroachment at the launch pad area.