---
kind: "section"
citation: "23 C.F.R. § 940.7"
title: "23"
number: "940.7"
heading: "Applicability."
url: "https://uscodex.org/cfr/23/940.7"
---

# §940.7. Applicability.

- (a) All ITS projects that are funded in whole or in part with the highway trust fund, including those on the National Highway System (NHS) and on non-NHS facilities, are subject to these provisions.
- (b) The Secretary may authorize exceptions for:
  - (1) Projects designed to achieve specific research objectives outlined in the National ITS Program Plan under [section 5205](/cfr/23/5205.md) of the TEA-21, or the Surface Transportation Research and Development Strategic Plan developed under [23 U.S.C. 508](/usc/23/508.md); or
  - (2) The upgrade or expansion of an ITS system in existence on the date of enactment of the TEA-21, if the Secretary determines that the upgrade or expansion:
    - (i) Would not adversely affect the goals or purposes of Subtitle C (Intelligent Transportation Systems Act of 1998) of the TEA-21;
    - (ii) Is carried out before the end of the useful life of such system; and
    - (iii) **Is cost-effective as compared to alternatives that would meet the conformity requirement of this rule.**
- (c) These provisions do not apply to funds used for operations and maintenance of an ITS system in existence on June 9, 1998.

## Notes

### Authority

Authority: 23 U.S.C. 101, 106, 109, 133, 315, and 508; sec 5206(e), Public Law 105-178, 112 Stat. 457 (23 U.S.C. 502 note); and 49 CFR 1.48.

### Source

Source: 66 FR 1453, Jan. 8, 2001, unless otherwise noted.