National Highway System
Designation Act Of 1995

Enacted November 28, 1995

Selected Highlights

NHS SYSTEM DESIGNATION

* Designates the National Highway System (NHS). Designation allows the release of $5.4 billion in Fiscal Year 1996 funds authorized by the Intermodal Surface Transportation Efficiency Act (ISTEA) of 1991. Total NHS mileage is 160,955 miles. The system may be modified by the Secretary of Transportation in the future. NHS connectors to major intermodal facilities will be proposed by the Secretary to Congress within 180 days.

SAFETY

* Repeals the National Maximum Speed Limit law. States may now set their own speed limits without penalty.

* Repeals the Federal Motorcycle Helmet Use law. States will no longer be penalized if they have not enacted laws requiring use of motorcycle helmets.

* Requires States to enact and enforce "zero-tolerance" laws -- laws which make it illegal for drivers under the legal drinking age of 21 to drive with a blood alcohol content of 0.02 percent or higher.

* Establishes a Commercial Motor Vehicle Safety Pilot Program which allows exemptions of vehicles and drivers of vehicles between 10,000 and 26,000 pounds from the Federal Motor Carrier Safety Regulations. Applicants must apply to the Department of Transportation (DOT) and must meet specific safety requirements to participate.

FINANCE

* Provides $471 million in new funds with broad eligibility and gives flexibility in the use of "old" funds to partially mitigate the effects of Section 1003(c) of ISTEA, which caused an across-the-board cut in FY 1996 funds totaling $2.55 billion.

* Establishes a State Infrastructure Bank (SIB) Pilot Program allowing up to 10 States to participate. The States could use up to 10% of some categories of Federal-aid highway and transit funds to establish infrastructure banks. The banks may not make conventional grants, but may make project loans, enhance credit, subsidize interest rates, and provide other assistance for eligible highway and transit capital projects. Other innovative finance provisions, designed to leverage investment in surface transportation, are also included in the legislation.

Source: U.S. DOT