Project approval and oversight

Except as otherwise provided in this section, each State transportation department shall submit to the Secretary for approval such plans, specifications, and estimates for each proposed project as the Secretary may require. The Secretary shall act on the plans, specifications, and estimates as soon as practicable after the date of their submission and shall enter into a formal project agreement with the State transportation department recipient formalizing the conditions of the project approval. The execution of the project agreement shall be deemed a contractual obligation of the Federal Government for the payment of the Federal share of the cost of the project. In taking action under this subsection, the Secretary shall be guided by section 109. The project agreement shall make provision for State funds required to pay the State’s non-Federal share of the cost of construction of the project (including payments made pursuant to a long-term concession agreement, such as availability payments) and to pay for maintenance of the project after completion of construction. If a part of the project is to be constructed at the expense of, or in cooperation with, political subdivisions of the State, the Secretary may rely on representations made by the State transportation department with respect to the arrangements or agreements made by the State transportation department and appropriate local officials for ensuring that the non-Federal contribution will be provided under paragraph (1). For projects under this title that are on the National Highway System, including projects on the Interstate System, the State may assume the responsibilities of the Secretary under this title for design, plans, specifications, estimates, contract awards, and inspections with respect to the projects unless the Secretary determines that the assumption is not appropriate. For projects under this title that are not on the National Highway System, the State shall assume the responsibilities of the Secretary under this title for design, plans, specifications, estimates, contract awards, and inspection of projects, unless the State determines that such assumption is not appropriate. The Secretary and the State shall enter into an agreement relating to the extent to which the State assumes the responsibilities of the Secretary under this subsection. The Secretary shall not assign any responsibilities to a State for projects the Secretary determines to be in a high risk category, as defined under subparagraph (B). The Secretary may define the high risk categories under this subparagraph on a national basis, a State-by-State basis, or a national and State-by-State basis, as determined to be appropriate by the Secretary. section 113 or 114; or any Federal law other than this title (including section 5333 of title 49). providing the needed functions safely, reliably, and at the lowest overall lifecycle cost; improving the value and quality of the project; and reducing the time to complete the project. combining or eliminating otherwise inefficient use of costly parts of the original proposed design for the project; and completely redesigning the project using different technologies, materials, or methods so as to accomplish the original purpose of the project. each project on the National Highway System receiving Federal assistance with an estimated total cost of $50,000,000 or more; a bridge project on the National Highway System receiving Federal assistance with an estimated total cost of $40,000,000 or more; and any other project the Secretary determines to be appropriate. The Secretary may require more than 1 analysis described in paragraph (2) for a major project described in subsection (h). establishes and documents value engineering program policies and procedures; ensures that the required value engineering analysis is conducted before completing the final design of a project; ensures that the value engineering analysis that is conducted, and the recommendations developed and implemented for each project, are documented in a final value engineering report; and monitors, evaluates, and annually submits to the Secretary a report that describes the results of the value analyses that are conducted and the recommendations implemented for each of the projects described in paragraph (2) that are completed in the State. include bridge superstructure and substructure requirements based on construction material; and on engineering and economic bases, taking into consideration acceptable designs for bridges; and using an analysis of lifecycle costs and duration of project construction. A requirement to provide a value engineering analysis under this subsection shall not apply to a project delivered using the design-build method of construction. The Secretary shall develop recommendations for the States to conduct life-cycle cost analyses. The recommendations shall be based on the principles contained in section 2 of Executive Order No. 12893 and shall be developed in consultation with the American Association of State Highway and Transportation Officials. The Secretary shall not require a State to conduct a life-cycle cost analysis for any project as a result of the recommendations required under this subsection. In this subsection, the term “life-cycle cost analysis” means a process for evaluating the total economic worth of a usable project segment by analyzing initial costs and discounted future costs, such as maintenance, user costs, reconstruction, rehabilitation, restoring, and resurfacing costs, over the life of the project segment. The Secretary shall establish an oversight program to monitor the effective and efficient use of funds authorized to carry out this title. At a minimum, the program shall be responsive to all areas relating to financial integrity and project delivery. The Secretary shall perform annual reviews that address elements of the State transportation departments’ financial management systems that affect projects approved under subsection (a). The Secretary shall develop minimum standards for estimating project costs and shall periodically evaluate the practices of States for estimating project costs, awarding contracts, and reducing project costs. The Secretary shall perform reviews that address elements of the project delivery system of a State, which elements include one or more activities that are involved in the life cycle of a project from conception to completion of the project. Except as provided in clauses (ii) and (iii), the Secretary shall carry out a review under subparagraph (A) not less frequently than once every 2 years. The Secretary, after consultation with a State, may make a determination to carry out a review under subparagraph (A) for that State less frequently than provided under clause (i). If the Secretary determines that there is a specific reason to require a review more frequently than provided under clause (i) with respect to a State, the Secretary may carry out a review more frequently than provided under that clause. adequate project delivery systems for projects approved under this section; and sufficient accounting controls to properly manage such Federal funds. The Secretary shall periodically review the monitoring of subrecipients by the States. Nothing in this section shall affect or discharge any oversight responsibility of the Secretary specifically provided for under this title or other Federal law. The Secretary shall retain full oversight responsibilities for the design and construction of all Appalachian development highways under section 14501 of title 40. a project management plan; and an annual financial plan, including a phasing plan when applicable. the procedures and processes that are in effect to provide timely information to the project decisionmakers to effectively manage the scope, costs, schedules, and quality of, and the Federal requirements applicable to, the project; and the role of the agency leadership and management team in the delivery of the project. shall be based on detailed estimates of the cost to complete the project; shall provide for the annual submission of updates to the Secretary that are based on reasonable assumptions, as determined by the Secretary, of future increases in the cost to complete the project; may include a phasing plan that identifies fundable incremental improvements or phases that will address the purpose and the need of the project in the short term in the event there are insufficient financial resources to complete the entire project. If a phasing plan is adopted for a project pursuant to this section, the project shall be deemed to satisfy the fiscal constraint requirements in the statewide and metropolitan planning requirements in sections 134 and 135; for a project in which the project sponsor intends to carry out the project through a public-private partnership agreement, shall include a detailed value for money analysis or similar comparative analysis for the project; and shall assess the appropriateness of a public-private partnership to deliver the project. A recipient of Federal financial assistance for a project under this title with an estimated total cost of $100,000,000 or more that is not covered by subsection (h) shall prepare an annual financial plan. Annual financial plans prepared under this subsection shall be made available to the Secretary for review upon the request of the Secretary. accelerate and improve the environmental review process; increase effective public participation; enhance the detail and accuracy of project designs; increase safety; accelerate construction, and reduce construction costs; or otherwise expedite project delivery with respect to transportation projects that receive Federal funding. With respect to transportation projects that receive Federal funding, the Secretary shall encourage the use of advanced modeling technologies during environmental, planning, financial management, design, simulation, and construction processes of the projects. compile information relating to advanced modeling technologies, including industry best practices with respect to the use of the technologies; disseminate to States information relating to advanced modeling technologies, including industry best practices with respect to the use of the technologies; and promote the use of advanced modeling technologies. The Secretary shall develop and publish on the public website of the Department of Transportation a detailed and comprehensive plan for the implementation of paragraph (2). includes all standard terms found in stewardship and oversight agreements, including any terms in an attachment to the agreement; is developed in accordance with section 106 of title 23, United States Code, or any other applicable authority; and may be developed with consideration of relevant regulations, guidance, or policies. Not later than 60 days after the date of enactment of this Act [Nov. 15, 2021], the Secretary shall publish in the Federal Register the template and a notice requesting public comment on ways to improve the template. The Secretary shall provide a period of not less than 60 days for public comment on the notice under paragraph (1). whether the template should be revised to delete standard terms requiring approval by the Secretary of the policies, procedures, processes, or manuals of the States, or other State actions, if Federal law (including regulations) does not specifically require an approval; opportunities to modify the template to allow adjustments to the review schedules for State practices or actions, including through risk-based approaches, program reviews, process reviews, or other means; and any other matters that the Secretary determines to be appropriate. describes any proposed changes to be made, and any alternatives to such changes, to the template; addresses comments in response to which changes were not made to the template; and prescribes a schedule and a plan to execute a process for implementing the changes referred to in subparagraph (A). In addressing comments under paragraph (1)(B), the Secretary shall include an explanation of the basis for retaining any requirement for approval of State policies, procedures, processes, or manuals, or other State actions, if Federal law (including regulations) does not specifically require the approval. the changes described in the notice under paragraph (1)(A); and the schedule and plan described in the notice under paragraph (1)(C). Not later than 1 year after the date on which the revised template under subparagraph (A) is published, the Secretary shall update existing agreements with States according to the template updated under subparagraph (A). Nothing in this section precludes the inclusion in a Federal-State stewardship and oversight agreement of non-standard terms to address a State-specific matter, including risk-based stewardship and Department [of Transportation] oversight involvement in individual projects of division interest. The Secretary shall not enforce or otherwise require a State to comply with approval requirements that are not required by Federal law (including regulations) in a Federal-State stewardship and oversight agreement. Notwithstanding any other provision of law, the Secretary shall not assert approval authority over any matter in a Federal-State stewardship and oversight agreement reserved to States.” is carried out, in whole or in part, using Federal financial assistance; and has an estimated total cost of $100,000,000 or more. The term ‘public-private partnership’ means an agreement between a public agency and a private entity to finance, build, and maintain or operate a project. to conduct a review of the project, including a review of the compliance of the private partner with the terms of the public-private partnership agreement; to certify to the Secretary that the private partner of the public-private partnership is meeting the terms of the public-private partnership agreement for the project; or to notify the Secretary that the private partner of the public-private partnership has not met 1 or more of the terms of the public-private partnership agreement for the project, including a brief description of each violation of the public-private partnership agreement; and to make publicly available the certification or notification, as applicable, under paragraph (2) in a form that does not disclose any proprietary or confidential business information. If the Secretary provides Federal financial assistance to a project carried out through a public-private partnership, not later than 30 days after the date on which the Federal financial assistance is first obligated, the Secretary shall submit to the Committee on Environment and Public Works of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives a notification of the Federal financial assistance made available for the project. This section and the amendments made by this section shall only apply to a public-private partnership agreement entered into on or after the date of enactment of this Act [Nov. 15, 2021].” The Secretary [of Transportation] shall use the authority under section 106(c) of title 23, United States Code, to the maximum extent practicable, to allow a State to assume the responsibilities of the Secretary for project design, plans, specifications, estimates, contract awards, and inspection of projects, on both a project-specific and programmatic basis. Not later than 18 months after the date of enactment of this Act [Dec. 4, 2015], the Secretary, in cooperation with the States, shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Environment and Public Works of the Senate recommendations for legislation to permit the assumption of additional authorities by States, including with respect to real estate acquisition and project design.” a territory of the United States; a transit agency; a port authority; a metropolitan planning organization; or any other political subdivision of a State or local government; a multistate or multijurisdictional group, if each member of the group is an entity described in paragraph (1); and a public-private partnership, if both parties are engaged in building the project. A recipient that receives multiple grant awards from the Department [of Transportation] to support 1 multimodal project may request that the Secretary [of Transportation] designate 1 modal administration in the Department to be the lead administering authority for the overall project. Any project that includes funds awarded under section 5309 of title 49, United States Code, shall be exempt from consolidation under this section unless the grant recipient requests the Federal Transit Administration to be the lead administering authority. Not later than 30 days after the date on which a request under paragraph (1) is made, the Secretary shall review the request and approve or deny the designation of a single modal administration as the lead administering authority and point of contact for the Department. The Secretary shall notify the requestor of the decision of the Secretary under subparagraph (A) in such form and at such time as the Secretary and the requestor agree. If a request is denied, the Secretary shall provide the requestor with a detailed explanation of the reasoning of the Secretary with the notification under clause (i). be responsible for leading and coordinating the integrated project management team, which shall consist of all of the other modal administrations in the Department [of Transportation] relating to the multimodal project; and to the extent feasible during the first 30 days of carrying out the multimodal project, identify overlapping or duplicative regulatory requirements that exist for the project and propose a single, streamlined approach to meeting all of the applicable regulatory requirements through the activities described in subsection (d). The Secretary [of Transportation] shall transfer all amounts that have been awarded for the multimodal project to the modal administration designated as the lead administering authority. Participation under this section shall be optional for recipients, and no recipient shall be required to participate. The Secretary is not required to identify every recipient that may be eligible to participate under this section. The Secretary [of Transportation] and modal administrations with relevant jurisdiction over a multimodal project should cooperate on project review and delivery activities at the earliest practicable time. to avoid delays and duplication of effort later in the process; to prevent potential conflicts; and to ensure that planning and project development decisions are made in a streamlined manner and consistent with applicable law. supersede, amend, or modify the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) or any other Federal environmental law; or affect the responsibility of any Federal officer to comply with or enforce any law described in paragraph (1).” Nothing in this section, section 133, or section 149 shall affect or discharge any responsibility or obligation of the Secretary under— In this subsection, the term “value engineering analysis” means a systematic process of review and analysis of a project, during the planning and design phases, by a multidisciplinary team of persons not involved in the project, that is conducted to provide recommendations such as those described in subparagraph (B) for— The recommendations referred to in subparagraph (A) include, with respect to a project— The State shall provide a value engineering analysis for— The State shall develop and carry out a value engineering program that— The value engineering analysis for a bridge project under paragraph (2) shall— be evaluated by the State— The States shall be responsible for determining that subrecipients of Federal funds under this title have— Notwithstanding any other provision of this section, a recipient of Federal financial assistance for a project under this title with an estimated total cost of $500,000,000 or more, and recipients for such other projects as may be identified by the Secretary, shall submit to the Secretary for each project— A project management plan shall document— A financial plan— In this subsection, the term “advanced modeling technology” means an available or developing technology, including 3-dimensional digital modeling, that can— In carrying out paragraph (2), the Secretary shall— In this section, the term ‘template’ means a template created by the Secretary [of Transportation] for Federal-State stewardship and oversight agreements that— The notice under paragraph (1) shall allow comment on any aspect of the template and shall specifically request public comment on— Not later than 1 year after the date of enactment of this Act, after considering the comments received in response to the Federal Register notice under subsection (b), the Secretary shall publish in the Federal Register a notice that— Not later than 60 days after the date on which the notice under paragraph (1) is published, the Secretary shall make changes to the template in accordance with— In this section: The term ‘project’ means a project (as defined in section 101 of title 23, United States Code) that— With respect to a public-private partnership, as a condition of receiving Federal financial assistance for a project, the Secretary [of Transportation] shall require the public partner, not later than 3 years after the date of opening of the project to traffic— In this section, the term ‘recipient’ means— a State, local, or tribal government, including— A modal administration designated as a lead administering authority under this section shall— The purposes of the cooperation under paragraph (1) are— Nothing in this section shall— (Source: (Pub. L. 85–767, Aug. 27, 1958, 72 Stat. 892; Pub. L. 88–157, § 7(a), Oct. 24, 1963, 77 Stat. 278; Pub. L. 91–605, title I, §§ 106(e), 142, Dec. 31, 1970, 84 Stat. 1717, 1737; Pub. L. 94–280, title I, § 114, May 5, 1976, 90 Stat. 436; Pub. L. 100–17, title I, § 133(b)(4), Apr. 2, 1987, 101 Stat. 171; Pub. L. 102–240, title I, §§ 1016(b), 1018(a), Dec. 18, 1991, 105 Stat. 1945, 1948; Pub. L. 104–59, title III, § 303, Nov. 28, 1995, 109 Stat. 578; Pub. L. 105–178, title I, § 1305(a)–(c), June 9, 1998, 112 Stat. 227–229; Pub. L. 109–59, title I, § 1904(a), Aug. 10, 2005, 119 Stat. 1465; Pub. L. 112–141, div. A, title I, § 1503(a), July 6, 2012, 126 Stat. 561; Pub. L. 114–94, div. A, title II, § 2002(b), Dec. 4, 2015, 129 Stat. 1446; Pub. L. 117–58, div. A, title I, §§ 11307(f), 11508(d)(1), Nov. 15, 2021, 135 Stat. 534, 587.))