NC S601

Creates new Chapter 136A establishing Regional Transportation Funding Agreements (RTFA) allowing two or more local governments in the same EPA ozone attainment area to jointly finance, construct, and operate regional transportation projects.

Restricts RTFA participation to counties and municipalities over 5,000 population within a single ozone attainment area with no more than one Metropolitan Planning Organization, and prohibits participation by governments within existing transportation authorities.

Authorizes RTFA counties to levy a 1/2% sales and use tax and a 5-cent per gallon tax on gasoline and diesel fuel, with all county members required to levy together or none may levy, exclusively for transportation project funding.

Requires at least 35% of funded projects be public transportation or mass transit projects, all projects must be completed within seven years, and at least one project must be located in each participating county.

Recodifies existing public transportation authority statutes from Chapter 160A Articles 25, 26, and 27 into new Chapter 136A Articles 2, 3, and 4 respectively, with corresponding section number changes and cross-reference updates.