(a) Development and Update. - (1) In general. - In cooperation with the State and affected mass transportation operators, a metropolitan planning organization designated for a metropolitan area shall develop a transportation improvement program for the area. In developing the program, the metropolitan planning organization, in cooperation with the chief executive officer of the State and any affected mass transportation operator, shall provide citizens, affected public agencies, representatives of transportation authority employees, other affected employee representatives, freight shippers, providers of freight transportation services, other affected employee representatives, private providers of transportation, representatives of users of public transit, and other interested parties with a reasonable opportunity to comment on the proposed program.

The program shall be updated at least once every 2 years and shall be approved by the organization and the chief executive officer of the State. (2) Funding estimate. - For the purpose of developing the transportation improvement program, the metropolitan planning organization, public transit agency, and the State shall cooperatively develop estimates of funds that are reasonably expected to be available to support program implementation. (b) Contents. - A transportation improvement program for a metropolitan area shall include - (1) a priority list of projects and parts of projects to be carried out in each 3-year period after the program is adopted; and (2) a financial plan that - (A) demonstrates how the program can be carried out; (B) indicates resources from public and private sources that reasonably are expected to be made available to carry out the plan; (C) identifies innovative financing techniques to finance projects, programs, and strategies; and (D) may include, for illustrative purposes, additional projects that would be included in the approved transportation improvement program if reasonable additional resources beyond those identified in the financial plan were available. (c) Project Selection. - (1) Except as otherwise provided in section 5305(d)(1) and in addition to the transportation improvement program development required under subsection (b), the selection of federally funded projects for implementation in metropolitan areas shall be carried out, from the approved transportation improvement program - (A) by - (i) in the case of projects under title 23, the State; and (ii) in the case of projects under this chapter, the designated transit funding recipients; and (B) in cooperation with the metropolitan planning organization. (2) A transportation improvement program for a metropolitan area shall include - (A) projects within the area that are proposed for financing under this chapter and title 23 and that are consistent with the long-range plan developed under section 5303(f) of this title; and (B) a project or an identified phase of a project only if full financing reasonably can be anticipated to be available for the project in the period estimated for completion. (3) Notwithstanding any other provision of law, action by the Secretary shall not be required to advance a project included in the approved transportation improvement program in place of another project in the program. (4) Selection of projects from illustrative list. - (A) In general. - Notwithstanding subsection (b)(2)(D), a State or metropolitan planning organization shall not be required to select any project from the illustrative list of additional projects included in the financial plan under subsection (b)(2)(D). (B) Action by secretary. - Action by the Secretary shall be required for a State or metropolitan planning organization to select any project from the illustrative list of additional projects included in the plan under subsection (b)(2) for inclusion in an approved transportation improvement plan. (5) Publication. - (A) A transportation improvement program involving Government participation shall be published or otherwise made readily available by the metropolitan planning organization for public review. (B) An annual listing of projects for which Government funds have been obligated in the preceding year shall be published or otherwise made available by the metropolitan planning organization for public review.

The listing shall be consistent with the categories identified in the transportation improvement program. (6) Regionally significant projects proposed for funding under chapter 2 of title 23 shall be identified individually in the transportation improvement program.

All other projects funded under chapter 2 of title 23 shall be grouped in 1 line item or identified individually in the transportation improvement program. (d) Notice and Comment. - Before approving a transportation improvement program, a metropolitan planning organization shall provide citizens, affected public agencies, representatives of transportation agency employees, private providers of transportation, and other interested parties with reasonable notice and an opportunity to comment on the proposed program. (e) Regulatory Proceeding. - Not later than June 18, 1992, the Secretary of Transportation shall begin a regulatory proceeding to conform review requirements for mass transportation projects under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) to comparable requirements under that Act applicable to highway projects.

This section and sections 5303, 5305, and 5306 of this title do not affect the applicability of the Act to mass transportation or highway projects. A mass transportation project that has an approved draft Environmental Impact Statement is exempt from complying with requirements under the Act applicable to highway projects.