Section 2302 Of Chapter 6. Federal Funds For Demonstration Projects From California Streets And Highways Code >> Division 3. >> Chapter 6.

. In addition to the purposes allowable pursuant to Section 193, the commission may allocate State Highway Account funds available for state highway purposes to meet federally required local financial matching provisions for interstate transfer projects. If the commission allocates the funds for that purpose, the department shall expend the funds or cause them to be expended for that purpose. Funds allocated from the State Highway Account pursuant to this section shall be deemed expenditures on the state highway system for purposes of Sections 188 and 188.8. Funds shall be allocated and expended pursuant to this section only if each of the following conditions exist:
  (a) The project shall be a highway.
  (b) The highway shall directly connect with a state highway.
  (c) The highway shall be a substitute for a previously authorized interstate highway.
  (d) The amount of state funding for the substitute highway shall be less than the estimated amount of the state share of the previously authorized interstate highway, both amounts to be calculated in current dollar values.
  (e) The substitute highway project shall appear in the state transportation improvement program pursuant to Section 14529 of the Government Code.