(a) Definitions.—In this section, the following definitions apply:

(1) Program.—The term “program” means the territorial highway program established under subsection (b).

(2) Territory.—The term “territory” means any of the following territories of the United States:

(A) American Samoa.

(B) The Commonwealth of the Northern Mariana Islands.

(D) The United States Virgin Islands.

(b) Program.—

(1) In general.—Recognizing the mutual benefits that will accrue to the territories and the United States from the improvement of highways in the territories, the Secretary may carry out a program to assist each government of a territory in the construction and improvement of a system of arterial and collector highways, and necessary inter-island connectors, that is—

(A) designated by the Governor or chief executive officer of each territory; and

(B) approved by the Secretary.

(2) Federal share.—The Federal share of Federal financial assistance provided to territories under this section shall be in accordance with section 120(h).

(1) In general.—To continue a long-range highway development program, the Secretary may provide technical assistance to the governments of the territories to enable the territories to, on a continuing basis—

(A) engage in highway planning;

(B) conduct environmental evaluations;

(D) design, construct, operate, and maintain a system of arterial and collector highways, including necessary inter-island connectors.

(2) Form and terms of assistance.—Technical assistance provided under paragraph (1), and the terms for the sharing of information among territories receiving the technical assistance, shall be included in the agreement required by subsection (e).

(d) Nonapplicability of Certain Provisions.—

(1) In general.—Except to the extent that provisions of chapter 1 are determined by the Secretary to be inconsistent with the needs of the territories and the intent of the program, chapter 1 (other than provisions of chapter 1 relating to the apportionment and allocation of funds) shall apply to funds authorized to be appropriated for the program.

(2) Applicable provisions.—The agreement required by subsection (e) for each territory shall identify the sections of chapter 1 that are applicable to that territory and the extent of the applicability of those sections.

(e) Agreement.—

(1) In general.—Except as provided in paragraph (4), none of the funds made available for the program shall be available for obligation or expenditure with respect to any territory until the chief executive officer of the territory enters into an agreement with the Secretary (not later than 1 year after the date of enactment of SAFETEA–LU), providing that the government of the territory shall—

(A) implement the program in accordance with applicable provisions of chapter 1 and subsection (d);

(B) design and construct a system of arterial and collector highways, including necessary inter-island connectors, in accordance with standards that are—

(i) appropriate for each territory; and

(ii) approved by the Secretary;

(C) provide for the maintenance of facilities constructed or operated under this section in a condition to adequately serve the needs of present and future traffic; and

(D) implement standards for traffic operations and uniform traffic control devices that are approved by the Secretary.

(2) Technical assistance.—The agreement required by paragraph (1) shall—

(A) specify the kind of technical assistance to be provided under the program;

(B) include appropriate provisions regarding information sharing among the territories; and

(3) Review and revision of agreement.—The agreement entered into under paragraph (1) shall be reevaluated and, as necessary, revised, at least every 2 years.

(4) Existing agreements.—With respect to an agreement under the section between the Secretary and the chief executive officer of a territory that is in effect as of the date of enactment of the SAFETEA–LU—

(A) the agreement shall continue in force until replaced by an agreement entered into in accordance with paragraph (1); and

(B) amounts made available for the program under the existing agreement shall be available for obligation or expenditure so long as the agreement, or the existing agreement entered into under paragraph (1), is in effect.

(f) Permissible Uses of Funds.—

(1) In general.—Funds made available for the program may be used only for the following projects and activities carried out in a territory:

(A) Eligible surface transportation program projects described in section 133(b).

(B) Cost-effective, preventive maintenance consistent with section 116(d).

(D) Engineering and economic surveys and investigations for the planning, and the financing, of future highway programs.

(E) Studies of the economy, safety, and convenience of highway use.

(F) The regulation and equitable taxation of highway use.

(G) Such research and development as are necessary in connection with the planning, design, and maintenance of the highway system.

(2) Prohibition on use of funds for routine maintenance.—None of the funds made available for the program shall be obligated or expended for routine maintenance.

(g) Location of Projects.—Territorial highway projects (other than those described in paragraphs (1), (3), and (4) of section 133(b)) may not be undertaken on roads functionally classified as local.