SHC §182.85: (a) For purposes of this section, the term “federal local assistance funds” means either of the following: (1) Highway Safety Improvement Program (23 U.

(a) For purposes of this section, the term “federal local assistance funds” means either of the following: (1) Highway Safety Improvement Program (23 U.S.C. Sec. 148) apportionments received in a federal fiscal year (23 U.S.C. Sec. 104(b)(3)) and allocated as local assistance pursuant to this chapter, excluding funds that are set aside for the railway-highway crossings program (23 U.S.C. Sec. 130). (2) Federal funds apportioned for local bridge projects. (b) To increase flexibility in the use of state and federal funding to complete transportation improvements, the department may exchange nonfederal State Highway Account funds on a dollar-for-dollar basis for federal local assistance funds received by a city, county, or city and county. (c) Participating agencies exchanging their federal funds shall provide apportionments and obligation authority at the same rate the Federal Highway Administration distributes obligation authority. (d) The department shall not exchange state funds pursuant to this section unless the exchange meets all of the following criteria: (1) The exchange will be used by the city, county, or city and county for projects or purposes for which the federal local assistance funds being exchanged were originally intended in order to meet national transportation goals and performance management measures (23 U.S.C. Sec. 150), and the exchange will satisfy the intent of the Legislature, as described in Section 2333. (2) The exchange will not put at risk other transportation activities or projects needing state funds. (3) Federal funds received in exchange can be readily and effectively used on other projects by the state during the federal fiscal year. (4) The amount of exchange will not exceed the department’s ability to obligate all federal funds received in exchange during the current federal fiscal year. (5) The total amount of federal funds exchanged pursuant to this section does not exceed one hundred million dollars ($100,000,000) during the federal fiscal year. (e) The department shall consult with the League of California Cities and the California State Association of Counties on implementing this section.