((a)) ** .—** The Secretary may authorize a State to proceed with a project authorized under this title—

((1)) without the use of Federal funds; and

((2)) in accordance with all procedures and requirements applicable to the project other than those procedures and requirements that limit the State to implementation of a project—

((A)) with the aid of Federal funds previously apportioned or allocated to the State; or

((B)) with obligation authority previously allocated to the State.

((b)) ** .—** The Secretary, on the request of a State and execution of a project agreement, may obligate all or a portion of the Federal share of a project authorized to proceed under this section from any category of funds for which the project is eligible.

((c)) ** .—** The Secretary may approve an application for a project under this section only if the project is included in the transportation improvement program of the State developed under section 135(g).