A bill to permit the States to prepare environmental impact statements on Federal aid highway projects proposed by the State.

Provides that if the Secretary of Transportation determines that a State meets the guidelines designed to assure that possible adverse economic, social and environmental effects relating to any proposed Federal-aid highway system project have been fully considered, he may permit such State to prepare an environmental impact statement relative to such projects. States that such statements need only be prepared on such lengths of highway as the State proposes for Federal aid or such other lengths as the Secretary may prescribe. (Amends 23 U.S.C. 109)