A. Funds from the highway construction district grant programs established pursuant to § 33.2-371 shall be allocated for the improvement of nonsurface treated secondary highways that carry 50 or more vehicles per day. Such improvement may consist of enhancements to such highway or highway segment other than paving, such as improved materials, drainage upgrades, or enhanced design of the highway profile. Other techniques shall be considered improvements if they increase safety, reduce maintenance costs, or enhance the historic qualities of the highway or highway segment. Funds shall be deducted from the allocation made to each highway construction district pursuant to subsection D of § 33.2-371 and such deduction shall be based on the ratio of nonsurface treated secondary highways in each highway construction district that carry 50 or more vehicles per day to the total number of such nonsurface treated secondary highways in the Commonwealth. Total funds of the Commonwealth allocated by the Board under this section shall not exceed $25 million annually.
B. Such funds shall be distributed to counties in the secondary state highway system based on the ratio of nonsurface treated roads in each county carrying 50 vehicles or more per day to the total number of such nonsurface treated roads in the Commonwealth. The local governing body of the county shall select the highways or highway segments to be improved pursuant to this section, after consulting with the Department. Improvements pursuant to this section shall be designed and implemented utilizing project standards that conform to then-existing federal and state requirements and standards and, if no such standards exist, that conform to standards as mutually agreed upon by the Department and the locality.