Senate amendment to the 3rd edition makes the following changes.

Revises and adds to the proposed changes to GS 136-189.11, which provides for the distribution of funds subject to the Transportation Investment Strategy Formula (Formula). Adds a new exclusion from the Formula for Federal Carbon Reduction Program formula funds appropriated to the State. Adds to the federal program activities included in the applicable category of the Formula set forth in subsection (d) that are not subject to that subsection’s prioritization criteria State funds used to match federal Carbon Reduction Program formula funds appropriated to the State for projects on the State highway system that improve the safety, mobility, and operational characteristics of the State highway system for motorists. Regarding the percentage of funds to be allocated to Department of Transportation (DOT) divisions for division need projects, adds to the programs subject to alternate quantitative criteria only the Federal National Electric Vehicle Infrastructure Program formula funds appropriated to the State (no longer also adding Federal Carbon Reduction Program formula funds appropriated to the State, as now included in the formula's exemptions). Enacts a new subsection (d2), deeming that after redesignation of an existing or proposed secondary route to a primary highway route, a project is ineligible for evaluation in a newly-designated funding category under GS 136-189.10 until (1) the new route designation is reflected in the transportation plan that has been approved by the appropriate governing body and the Board of Transportation and (2) the DOT has commenced its second subsequent prioritization after the date of final route redesignation approval. Excludes projects that include a route redesignation initiated by the DOT to meet intrastate or interstate connectivity needs.

Authorizes the Secretary of Transportation (Secretary) to waive a project reprioritization delay required by new GS 135-189.11(d2) upon request of an affected Metropolitan Planning Organization or Rural Transportation Planning Organization. Directs the Secretary to report to the specified NCGA committee and division on waivers requested, as specified, by December 31, 2023. Expires December 31, 2023. 

Directs DOT to initiate a workgroup evaluation of potential DOT policy and rule changes, potential conflicts with federal laws or regulations, effects to the State Transportation Improvement Program (STI Program) prioritization processes, and any additional matter DOT deems relevant that relates to the implementation of new GS 135-189.11(d2). Directs DOT to report to the specified NCGA committee and division by December 1, 2022.