Establishing an innovation pilot within the carbon reduction program

Section 175(c) of title 23, United States Code, is amended— (1) in paragraph (1), in the matter preceding subparagraph (A), by striking paragraph (2) and inserting paragraphs (2) and (3); and (2) by adding at the end the following: (3) Innovation pilot (A) In general In addition to eligible projects under paragraphs (1) and (2), funds apportioned to a State under section 104(b)(7) may be used for innovative strategies to reduce transportation emissions, including associated infrastructure improvements that will increase the share of nonmotorized trips and improve the efficiency of existing surface transportation infrastructure to address carbon reduction. (B) Notice Not later than 120 days after the date of enactment of this paragraph, the Secretary shall provide notice and guidance for interested entities to participate in activities under subparagraph (A). (C) Exclusion Funds used to carry out a project under subparagraph (A) may not be used on a project that increases net capacity for vehicular travel..