ISTEA Integrity Restoration Act

ISTEA Integrity Restoration Act - Makes specified unobligated balances of funds apportioned to a State under the Intermodal Surface Transportation Efficiency Act of 1991 before October 1, 1997, available for obligation in that State under the law, regulations, policies, and procedures relating to the obligation and expenditure of those funds in effect on September 30, 1997.

(Sec. 5) Authorizes appropriations out of the Highway Trust Fund (other than the Mass Transit Account) for FY 1998 through 2002 for: (1) the National Highway System (NHS); (2) the Surface Transportation Program (STP); and (3) the Federal Lands Highway Program (FLHP), including Indian reservation roads, public lands highways, and parkways and park highways.

(Sec. 6) Modifies the definition of: (1) "Federal-aid system" to mean the NHS; and (2) NHS to mean the Federal-aid highway system established pursuant to Federal highway provisions.

Defines "highway funds," beginning on October 1, 1997, to mean the funds apportioned and allocations authorized by such provisions to a State for a fiscal year and the funds administratively allocated to a State for the preceding fiscal year (if any) for Federal-aid highway and highway safety construction (other than funds made available for the FLHP and for emergency relief).

Modifies provisions regarding Federal-aid systems and the formula for apportionments of NHS funds.

(Sec. 7) Repeals provisions regarding: (1) apportionments for resurfacing, restoring, rehabilitating, and reconstructing the Interstate System (IS); and (2) the transfer of interstate construction apportionments, the transfer of funds for STP projects, and limits on new capacity.

(Sec. 8) Modifies STP provisions regarding the location of projects and allocations of apportioned funds. Authorizes a State, in nonattainment areas for ozone or carbon monoxide, or for PM-10 resulting from transportation activities, or any combination thereof, to obligate STP funds for any congestion mitigation and air quality improvement project or program without regard to any Department of Transportation limitation relating to the type of ambient air quality standard such project or program addresses.

(Sec. 9) Directs that, for purposes of STP and IS provisions, population shall be determined based on the most recent estimates prepared by the Secretary of Commerce.

(Sec. 10) Repeals provisions regarding: (1) the highway bridge replacement and rehabilitation program; and (2) the congestion mitigation and air quality improvement program.

(Sec. 12) Replaces provisions regarding minimum allocations to States with an apportionment adjustment program to provide that the Secretary shall apportion among the States additional amounts sufficient to ensure that the ratio of the highway funds of the State to those of all States for the fiscal year is not less than certain listed percentages for the State.

Repeals existing apportionment adjustment programs.

(Sec. 13) Repeals set-asides for: (1) railway-highway crossing hazard elimination in high speed rail corridors; and (2) interstate discretionary programs.

(Sec. 14) Modifies Federal highway provisions to require the Secretary, whenever an apportionment is made of the sums authorized to be appropriated for expenditure on the STP and NHS, to deduct a sum not to exceed two percent of all sums so authorized as the Secretary may deem necessary for administering the legal provisions to be financed from appropriations for the Federal-aid systems and for carrying on specified research authorized by such provisions.