((a)) ** .—** The Secretary of Transportation shall withhold up to 5 percent of the amount required to be apportioned to a State under section 104(b)(1), (3), and (4)  of title 23 on the first day of the fiscal year after the first fiscal year beginning after , throughout which the State does not comply substantially with a requirement of .

((b)) ** .—** The Secretary shall withhold up to 10 percent of the amount required to be apportioned to a State under section 104(b)(1), (3), and (4)  of title 23 on the first day of each fiscal year after the 2d fiscal year beginning after , throughout which the State does not comply substantially with a requirement of .

((c)) ** 2012.—** Effective beginning on —

((1)) the penalty for the first instance of noncompliance by a State under this section shall be not more than an amount equal to 4 percent of funds required to be apportioned to the noncompliant State under paragraphs (1) and (2) of ; and

((2)) the penalty for subsequent instances of noncompliance shall be not more than an amount equal to 8 percent of funds required to be apportioned to the noncompliant State under paragraphs (1) and (2) of .

((d)) ** .—** Amounts withheld under this section from apportionment to a State after , are not available for apportionment to the State.