A BILL TO BE ENTITLED
AN ACT TO IMPLEMENT the NORTH CAROLINA MOVING AHEAD transportation INITIATIVE BY ALLOWING CASH BALANCES IN THE HIGHWAY TRUST FUND TO BE USED TO MEET CRUCIAL TRANSPORTATION NEEDS, to require funds designated by this act for preservation, modernization, and maintenance be expended in accordance with the equity distribution FORMULA, To require the DEPARTMENT of Transportation to certify that use of funds in ACCORDANCE with this act will not delay construction of any highway trust fund project, to reaffirm the intent of the general assembly that proceeds from the issuance of bonds under authority of the State HIGHWAY bond act of 1996 shall be used for the purposes stated in that act, and for no other purpose, and to expedite the issuance of permits by the department of environment and natural resources.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 136‑176 is amended by adding a new subsection to read:
"(a3)	The Department may obligate three hundred million dollars ($300,000,000) in fiscal year 2003-2004 and four hundred million dollars ($400,000,000) in fiscal year 2004-2005 of the cash balance of the Highway Trust Fund for the following purposes:
(1)	Six hundred thirty million dollars ($630,000,000) for highway system preservation, modernization, and maintenance, including projects to enhance safety, reduce congestion, improve traffic flow, reduce accidents, upgrade pavement widths and shoulders, extend pavement life, improve pavement smoothness, and rehabilitate or replace deficient bridges; and for economic development transportation projects recommended by local officials and approved by the Board of Transportation.
(2)	Seventy million dollars ($70,000,000) for regional public transit systems, rural and urban public transportation system facilities, regional transportation and air quality initiatives, rail system track improvements and equipment, and other ferry, bicycle, and pedestrian improvements. For any project or program listed in this subdivision for which the Department receives federal funds, use of funds pursuant to this subdivision shall be limited to matching those funds."
SECTION 2.  G.S. 136‑176 is amended by adding a new subsection to read:
"(a4)	Projects selection pursuant to subsection (a3) of this section shall be based on identified and documented need. Funds expended pursuant to subdivision (1) of subsection (a3) of this section shall be distributed in accordance with the distribution formula in G.S. 136-17.2A."
SECTION 3.  G.S. 136‑176 is amended by adding a new subsection to read:
"(a5)	The Department shall report to the Joint Legislative Transportation Oversight Committee, on or before September 1, 2003, on its intended use of funds pursuant to subsection (a3) of this section. The Department shall report to the Joint Transportation Appropriations Subcommittee, on or before May 1, 2004, on its actual current and intended future use of funds pursuant to subsection (a3) of this section. The Department shall certify to the Joint Legislative Transportation Oversight Committee each year, on or before November 1, that use of the Highway Trust Fund cash balances for the purposes listed in subsection (a3) of this section will not adversely affect the delivery schedule of any Highway Trust Fund projects. If the Department cannot certify that the full amounts authorized in subsection (a3) of this section are available, then the Department may determine the amount that can be used without adversely affecting the delivery schedule and may proportionately apply that amount to the purposes set forth in subsection (a3) of this section."
SECTION 4.  The General Assembly reaffirms its intent that the proceeds of the issuance of any bonds pursuant to the Highway Bond Act of 1996, Chapter 590 of the 1995 Session Laws, shall be used only for the purposes stated in that act, and for no other purpose.
SECTION 5.  Chapter 136 of the General Statutes is amended by adding a new section to read:
"§ 136-44.7B.  Permit issuance by Department of Environment and Natural Resources for transportation construction projects.
(a)	Once the Department of Environment and Natural Resources or any agency within the Department of Environment and Natural Resources has received a complete application for a permit that is required for a transportation construction project to be undertaken by or on behalf of the Department of Transportation, the Department of Environment and Natural Resources shall expedite the review of the application and shall issue or deny the permit within 90 days of receipt of the submission. All permits not denied within that time limit shall be deemed approved. The Secretary of Environment and Natural Resources and the Secretary of Transportation shall jointly decide any question as to whether an application for a permit is complete. If the Secretary of Environment and Natural Resources and the Secretary of Transportation are unable to jointly decide any question, the Governor shall decide the question.
(b)	Once the Department of Environment and Natural Resources or any agency within the Department of Environment and Natural Resources has issued a permit that is required for a transportation construction project to be undertaken by or on behalf of the Department of Transportation, that permit shall remain in effect until the project is completed. The permit shall not expire and shall not be modified or cancelled for any reason, including a subsequent change in federal law or regulations or in State law or rules, unless at least one of the following occurs:
(1)	The modification or cancellation is requested by the Department of Transportation.
(2)	The modification or cancellation is clearly required by a change in federal law or regulations and a failure to modify or cancel the permit by the Department of Environment and Natural Resources would result in a loss of federal program delegation or a significant reduction in the availability of federal funds to the Department of Environment and Natural Resources or to the Department of Transportation. 
(3)	The modification or cancellation is clearly required by a change in State law as a result of an act of the General Assembly that includes a statement that the General Assembly specifically intends the change in State law to apply to ongoing transportation construction projects. 
(4)	The modification or cancellation is ordered by a court of competent jurisdiction.
(5)	The nature or scope of the transportation construction project is significantly expanded or otherwise altered."
SECTION 6.  This act becomes effective July 1, 2003.