On page 3, after line 25, insert the following:
"(8) The exemptions under subsections (1)(a)(ii)(A) and (6) of this section only apply to a local government:
(a) Whose transportation infrastructure has received a grade of at least B or better from the department of transportation's level of service report; and
(b) Has demonstrated that the resulting new construction will not result in a reduction in transportation level of service."