; and (2) by adding at the end the following: (3) Innovation pilot (A) In general In addition to eligible projects under paragraphs (1) and (2), funds apportioned to a State under section 104(b)(7) may be used for innovative strategies to reduce transportation emissions, including associated infrastructure improvements that will increase the share of nonmotorized trips and improve the efficiency of existing surface transportation infrastructure to address carbon reduction. (B) Notice Not later than 120 days after the date of enactment of this paragraph, the Secretary shall provide notice and guidance for interested entities to participate in activities under subparagraph (A). (C) Exclusion Funds used to carry out a project under subparagraph (A) may not be used on a project that increases net capacity for vehicular travel. . 308. Making infill housing and other transportation efficiency projects eligible for RAISE grants Section 6702(a)(3) of title 49, United States Code, is amended— (1) in subparagraph (G), by striking and at the end; (2) by redesignating subparagraph (H) as subparagraph (I); and (3) by inserting after subparagraph (G) the following: (H) a project or series of projects to reduce transportation emissions, including associated infrastructure improvements to support infill development or transit-oriented development, and to increase nonmotorized trips, subject to the conditions that— (i) the project or series of projects shall directly improve the efficiency of existing surface transportation infrastructure; and (ii) the Federal share for the project or series of projects shall be used to fund only the elements of the project or series that provide public benefits