Requires that in any project funded by the transportation improvement board's urban corridor program, the board must consider, in addition to any other considerations required by law, the following factors when determining whether to make grants to local governments to accommodate projected growth: (1) Whether the project will improve the minimum levels of service on transportation facilities that will accommodate planned growth. For the purposes of this subsection, "minimum levels of service" means an "a" through "d" level of service on an "a" to "f" scale or other generally accepted transportation measurement scale;

(2) Whether the project will enable the local government to implement its comprehensive and capital facilities plans to accommodate projected population and employment growth; and

(3) Whether the local government has sufficient quantities of buildable land and development regulations to accommodate projected population and employment growth related to the project.

Appropriates the sum of twenty million dollars, or as much thereof as may be necessary, for the biennium ending June 30, 2009, from the state motor vehicle fund to the urban arterial trust account for the purposes of this act.