Metropolitan Transportation Planning: Key Issues and Federal Funding Sources - Prof. Susan, Study Guides, Projects, Research of Public Policy

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A Briefing Notebook for Metropolitan Planning Organization Board Members The Metropolitan Transportation Planning Process: Key Issues November 2001 A Publication of the Metropolitan Capacity Building Program Federal Highway Administration Federal Transit Administration The American Association of State Highway and Transportation Officials The American Public Transportation Association The Association of Metropolitan Planning Organizations The Metropolitan Transportation Planning Process: Key Issues 2 NOTICE This document is disseminated under the sponsorship of the Department of Transportation in the interest of information exchange.The United States Government assumes no liability for its contents or use thereof.The United States Government does not endorse products or manufacturers.Trademarks or manufacturers’ names appear herein only because they are considered essential to the objective of this document. 1 INTRODUCTION Transportation helps shape a metropolitan area’s economic health and quality of life. Not only does the transportation system provide for the mobility of people and goods, it also influences patterns of growth and economic activity through accessibility to land. Furthermore, the performance of this system affects such public policy concerns as air quality, environmental resource consumption, social equity,“smart growth,” economic development, safety, and security. Recognizing the critical links between transportation and other societal goals, metropolitan areas have been undertaking a formal process of transportation planning for many decades.The planning process is more than merely listing highway and transit capital investments, it requires developing strategies for operating, managing, maintaining, and financing the area’s transportation system in such a way as to advance the area’s long-term goals. Because transportation can have a substantial impact on a metropolitan area, the American Association of State Highway and Transportation Officials (AASHTO), the American Public Transportation Association (APTA), and the Association of Metropolitan Planning Organizations (AMPO), requested a document be prepared to serve as a primer for MPO board members.This notebook is the Federal Highway Administration’s (FHWA) and the Federal Transit Administration’s (FTA) response to that request; it provides state and local officials, planning board members, and transportation service providers with an overview of transportation planning. This notebook provides a basic understanding of the key concepts, along with references for additional information. Part I discusses transportation planning and its relationship to decisionmaking. Part II presents short descriptions of important policy and planning topics. It is not intended to provide details of each policy issue.This report is available electronically at the following website: www.mcb.fhwa.dot.gov and will be updated periodically to include additional topics or information. Questions about any of the topics discussed in this book should be directed to the MPO staff in your region. For additional support, contact your local FHWA division or FTA regional office. For information on how to reach FHWA or FTA staff, visit the FHWA and FTA websites at: www.fhwa.dot.gov and www.fta.dot.gov, or the Metropolitan Capacity Building web site at www.mcb.fhwa.dot.gov. PART I: OVERVIEW OF METROPOLITAN TRANSPORTATION PLANNING Metropolitan transportation planning provides the information, tools, and public input needed for improving transportation system performance.Transportation planning should reflect the community’s vision for its future. It should also include a comprehensive consideration of possible strategies; an evaluation process that encompasses diverse viewpoints; the collaborative participation of relevant trans- portation-related agencies and organizations; and an open, timely, and meaningful involvement of the public.Transportation planning requires a comprehensive, holistic look at the needs and the future of the region and its inhabitants as shown in Figure 1. Figure 1: Links between transportation and other societal goals: transportation decisions affect our society in many ways. Conversely, many of society’s decisions have an impact on our transportation system. What is the metropolitan transportation planning process? Transportation planning in metropolitan areas is a collaborative process, led by the metropolitan planning organization (MPO) and other key stakeholders in the regional transportation system. The process is designed to foster involvement by all interested parties, such as the business community, community groups, environmental organizations, and the general public, through a proactive public participation process conducted by the MPO in coordination with the state department of transportation and transit operators. It is essential to extend public participation to include people who have been traditionally underserved by the transportation system and services in the region. Neglecting public involvement can result in unnecessary delays, litigation, and can erode public trust. Figure 2 illustrates the metropolitan trans- portation planning process. Stakeholders: Individuals, organizations, and agencies with an interest in or who are affected by the transportation planning process. The Metropolitan Transportation Planning Process: Key Issues 2 The Metropolitan Transportation Planning Process: Key Issues 3 The planning process includes a number of steps: • Forecasting future population and employment growth; • Assessing projected land uses in the region; • Identifying major growth corridors and analyzing, through detailed planning studies, various transportation improvements; • Developing alternative capital and operating strategies for people and goods; • Estimating the impact of the transportation system on air quality within the region; and • Developing a financial plan that covers operating costs, maintenance of the system, system preservation costs, and new capital investments. Figure 2:The metropolitan transportation planning process What is a Metropolitan Planning Organization and its functions? A metropolitan planning organization (MPO) is a transportation policy-making organization made up of representatives from local government and transportation authorities.The Federal Surface Transportation Assistance Act of 1973 required the formation of a MPO for any urbanized area with a population greater than 50,000. MPOs were created in order to ensure that existing and future expendi- tures for transportation projects and programs were based on a comprehensive, cooperative, and continuing (3-C) planning process. Federal funding for trans- portation projects and programs are channeled through this planning process. The Metropolitan Transportation Planning Process: Key Issues 6 The Unified Planning Work Program (UPWP):The UPWP lists the trans- portation studies and tasks to be performed by the MPO staff or a member agency. Because the UPWP reflects local priorities, the content differs from one metropolitan area to another.The UPWP contains several elements: • The planning tasks and studies that will be conducted over a one- to two-year period; • All federally funded studies as well as all relevant state and local planning activities conducted without federal funds; • Funding sources identified for each project; • A schedule of activities; and • The agency responsible for each task or study. The Long Range Transportation Plan (LRTP) or Metropolitan Transportation Plan (MTP):The transportation plan is the statement of the ways the region plans to invest in the transportation system.The plan shall “include both long-range and short-range program strategies/actions that lead to the development of an integrated intermodal transportation system that facili- tates the efficient movement of people and goods.” (23 CFR450C,Sec.450.322) The plan has several elements, for example: • Identify policies, strategies, and projects for the future; • Determine project demand for transportation services over 20 years; • Focus at the systems level, including roadways, transit, non-motorized transportation, and intermodal connections; • Articulate regional land use, development, housing, and employment goals and plans; • Estimate costs and identify reasonably available financial sources for operation, maintenance, and capital investments (see Part II, section on financial planning); • Determine ways to preserve existing roads and facilities and make efficient use of the existing system; • Be consistent with the statewide transportation plan; and • Be updated every five years or three years in air quality nonattainment and maintenance areas. MPOs should make special efforts to engage interested parties in the development of the plan. In cases where a metropolitan area is designated as a nonattainment or maintenance area, the plan must conform to the SIP for air quality (see section on air quality). The Metropolitan Transportation Planning Process: Key Issues 7 Transportation Improvement Program (TIP):The TIP is a financially constrained three-year program covering the most immediate implementation priorities for transportation projects and strategies from the metropolitan transportation plan. It is the region’s way of allocating its limited transportation resources among the various capital and operating needs of the area, based on a clear set of short-term transportation priorities. Under federal law, the TIP: • Covers a minimum three-year period of investment; • Is updated at least every two years; • Is realistic in terms of available funding (known as a fiscally constrained TIP) and is not just a “wish list” of projects; • Conforms with the SIP for air quality if the region is designated a nonattainment or maintenance area; • Is approved by the MPO and the governor for air quality; and • Is incorporated into the statewide transportation improvement program (STIP). How is federal transportation funding provided to metropolitan areas? The funding for transportation plans and projects comes from a variety of sources including the federal government, state governments, special authorities, assessment districts, local government contributions, impact fees, and tolls. However, in most metropolitan areas, federal funding, transferred first to the state to be distributed to metropolitan areas, is considered to be the primary funding source for plans and projects. (See appendix for a description of the most impor- tant federally aided transportation programs.) The financing provisions introduced in 1991 with the enactment of the lntermodal Surface Transportation Equity Act for the 21st Century (ISTEA) and continued in 1998 with the reauthorizing legis- lation known as the Transportation Equity Act (TEA-21) are obtained through the Federal Highway Trust Fund and supplemented by general funds. It is important to remember that most FHWA sources of funding are sent to and administered by the state DOTs.The state DOT then allocates the money to urban and rural areas, based on local priorities and needs. Most transit funds for urban areas are sent directly from the FTA to the transit operator. (Transit funds for rural areas are administered by the state DOT.) Federal funds are made available to a metropolitan area through a specific process: • Authorizing Legislation: Congress enacts legislation that establishes or continues the existing operation of a federal program or agency, including the amount of money it will have to spend. Congress re-authorizes federal transportation programs (known as the Federal-aid Highway Program) generally over a multi-year time period.The amount authorized, however, is not always the amount that ends up being available to spend. The Metropolitan Transportation Planning Process: Key Issues 8 • Appropriations: Each year, Congress decides on the federal budget for the next fiscal year.This process is known as the appropriation process.The amount appropriated to a federal program is often less than the amount authorized for a given year and is the actual amount available to federal agencies to spend. • Apportionment: The distribution of funds among states using a formula provided in law is called an apportionment.An apportionment is usually made on the first day of the federal fiscal year (October 1) for which the funds are authorized. At that time, the funds are available for obligation (spending) by the state, in accordance with the state’s approved transportation improvement program. In many cases, the state is the designated recipient for federal funds for transportation; in some cases, transit operators are the recipient. • Determining Eligibility: Only certain specific projects and activities are eligible to receive federal transportation funding. • Matching: Most federal transportation programs require a non-federal match. State or local governments must contribute some portion of the project cost. This matching level is established by legislation. Normally, the amount the state or local governments have to contribute is 20 percent of the project cost. How do these funding processes affect MPOs? These various funding procedures determine the way MPOs receive funding from federal sources. For example, Congress authorizes the use of federal funds for transportation planning purposes.These are called metropolitan planning funds, available from FHWA and FTA programs.The total amount of planning funding available equals one percent of the total amount of highway program funding appropriated in congressionally defined categories. A formula has been developed to apportion these funds to each state on the basis of that state’s urbanized population as a ratio of the nation’s total urbanized area population. MPOs can use these funds for all eligible planning activities.The federal matching for these funds is 80 percent, unless the Secretary of Transportation determines that increasing or decreasing this contribution level is warranted. How is federal funding used? There are many federal-aid transportation programs that support transportation activities in metropolitan areas, each having different requirements and program characteristics.The Federal-aid Highway Program is not a “cash up front” program but a reimbursable program.That is, even though the authorized amounts are “distributed” to the states, no cash is actually disbursed at this point. Instead, states are notified that they have federal funds available for their use. Projects are approved and work is started; then the federal government reimburses the states for costs as they are incurred, reimbursing up to the limit of the federal share. The federal government holds funding recipients accountable for complying with all applicable federal laws. When local governments directly oversee a federally funded project, the state DOTs are responsible for the local governments’ compliance with federal laws. The Metropolitan Transportation Planning Process: Key Issues 11 AIR QUALITY What is the relationship between transportation and air quality? Air quality issues play a major role in metropolitan planning. MPOs need to have a clear idea of what is required to achieve air quality attainment status, since nonattainment can halt transportation programs. Air pollution is caused by the interaction of topography, weather, and human influences on the environment, such as manufacturing, use of petroleum-based products like gasoline, and even small business activities, such as dry cleaning. Sources of air pollution can be classified as stationary, area, or mobile sources, as shown in Figure 4. Stationary sources include relatively large, fixed facilities such as power plants, chemical process industries, and petroleum refineries. Area sources are small, stationary, nontransportation sources that collectively contribute to air pollution, and include such sources as dry cleaners and bakeries, surface coating operations, home furnaces, and crop burning. Mobile sources include on-road vehicles such as cars, trucks, and buses; and off-road sources such as trains, ships, airplanes, boats, lawnmowers, and construction equipment. Figure 4: All sources of pollution can be looked at for ways to reduce emissions and improve air quality * Emissions reductions targets developed by the state environmental agency The Metropolitan Transportation Planning Process: Key Issues 12 The key transportation-related pollutants are ozone precursors, carbon monoxide (CO), and fine particulates (PM-10, or particles smaller than 10 microns, which are more likely to lodge in human lungs than larger particles).The ozone precur- sors are pollutants that combine to form ground-level ozone, which in turn is part of smog. Ozone precursors are volatile organic compounds (VOCs) and nitrogen oxides (NOx).These pollutants all emanate in part from on-road mobile sources and cannot exceed certain specified levels in a given region. Nonattainment areas are geographic areas that do not meet the federal air quality standards, and maintenance areas are areas that formerly violated but currently meet the federal air quality standards. If no violations of air quality standards have been found, the area is considered to be in compliance or attainment with federal air quality standards.The Clean Air Act (CAA) of 1990 identifies the actions states and MPOs must take to reduce emissions from on-road mobile sources in nonattainment and maintenance areas. The CAA and TEA-21 both require that transportation and air quality planning be integrated in areas designated by the U.S. Environmental Protection Agency (EPA) as air quality nonattainment or maintenance areas. In fact, in nonattainment and maintenance areas, federal funding for transportation projects is only available if transportation and air quality planning are integrated through the conformity process. An area can be nonattainment for one pollutant and in compliance for another. Transportation conformity is required for all ozone, carbon monoxide, and fine particulate nonattainment and maintenance areas. What is the role of the MPO in air quality issues? The challenge for MPOs in nonattainment and maintenance areas is to decide on a mix of transit and highway investments that, combined with measures such as Inspection and Maintenance (I/M) programs or reformulated gasoline, will keep emissions within the allowable limits for emissions from motor vehicles. According to the CAA, transportation plans,TIPs, and projects cannot: • Create new violations of the National Ambient Air Quality Standards (NAAQS); • Increase the frequency or severity of existing violations of the standards; or • Delay attainment of the standards. Clean Air Act: The Clean Air Act sets out the criteria by which transportation plans, programs, and projects are assessed for compliance with air quality require- ments. An area that meets the requirements is in conformity. The Metropolitan Transportation Planning Process: Key Issues 13 Reformulated gasoline: Gasoline blended to burn more completely and evaporate less easily. Fewer volatile organic compounds (VOCs) are released into the air, thus reducing ozone. MPOs are encouraged to participate in air quality planning and to identify transportation programs and projects that will help reduce emissions from on-road mobile sources of pollution.The transportation conformity process includes a number of requirements that MPOs must meet (see section below on transportation conformity). Though not required, many MPOs have developed public education and commu- nications programs to inform the public of the connection between transportation and air quality in their respective regions, and to encourage the public to make travel choices that will benefit air quality. What is transportation conformity and how does it relate to the NAAQS? The transportation conformity process, as illustrated in Figure 5, is a way to ensure that transportation projects meet air quality goals in order to be eligible for federal funding and approval.Whenever a long-term transportation plan or TIP is approved or updated, the MPO must make sure that all plans and programs comply with the conformity requirements. Figure 5:Transportation conformity process Inspection and Maintenance Programs: State programs that require vehicles to be inspected and repaired to comply with specific air quality standards, most commonly for carbon monoxide and ozone. The Metropolitan Transportation Planning Process: Key Issues 16 What funding is available for air quality improvement programs and projects? The Congestion Mitigation and Air Quality Improvement Program (CMAQ) was started in 1991 as an innovative and flexible funding source for transportation projects and programs that helps states and MPOs meet the requirements of the Clean Air Act.The CMAQ program was continued in TEA-21, and Congress authorized total funding of $8.1 billion over six federal fiscal years, from 1998 to 2003. Under the CMAQ program, states receive funding based on the severity of pollution and the population by county of each nonattainment and maintenance area. Preference is given to areas that violate both the ozone standard and the carbon monoxide standard. Each state receives CMAQ funding and then allocates funds, at the state’s discretion, to the air quality nonattainment and maintenance areas. How much money does the MPO receive each year in CMAQ funding? Each year, the amount of funding any individual MPO receives varies depending on the following factors: severity of pollution, population, and whether both the ozone standard and the CO standard are violated.The FHWA posts the annual population numbers in each nonattainment and maintenance area, and the weighting formula for the apportionments of CMAQ funding, on its website at: www.fhwa.dot.gov/environment/cmaq.htm. What types of projects are funded with CMAQ funding? CMAQ funding is reserved for projects that reduce congestion and/or improve air quality.Typical projects include transit improvements, shared-ride services, traffic flow improvements, pedestrian and bicycle programs, construction of high-occupancy vehicle (HOV) lanes, I/M programs, and transportation demand management strategies. Guidance on the CMAQ program can be found at www.fhwa.dot.gov/environment/cmaq.htm. Who decides which projects receive CMAQ funding? Decisions must be coordinated through the MPO planning process, and are made collaboratively by the MPO and state, subject to federal eligibility guidelines.These guidelines are quite flexible, in order to promote innovation. What other sources of federal funding are there for air quality improvement projects? The Surface Transportation Program (STP) in TEA-21 allows states to use certain funds (known as “flex” funds) for a variety of projects, including transit, transportation demand management, and other strategies that will help to reduce emissions. The Metropolitan Transportation Planning Process: Key Issues 17 The FTA provides funding for public transit projects, including fixed rail transit, rail modernization, buses and bus facilities (including the purchase of alternatively fueled buses), and other public transit projects. Other sources of funding include programs administered by the EPA and the U.S. Department of Energy; in many areas, state and local funding programs are in place. Additional sources of information: http://www.fhwa.dot.gov/environment/conform.htm gives a basic explanation of conformity and provides policy guidance. http://www.fhwa.dot.gov/environment/cmaq.htm provides a brochure about CMAQ, outlines policy, and gives helpful links. http://www.fta.dot.gov/office/planning/envr.htm provides information on CMAQ,Transportation and Air Quality Impacts of Transit Projects and a description of the FTA General Noise Assessment Spreadsheet. www.fhwa.dot.gov/environment/fundprog.htm is a helpful source of information on funding programs. http://www.energy.gov/transportation/index.html is a consumer-oriented site hosted by the Department of Energy on how to save fuel, and provides a helpful example of how MPOs can educate the public about air quality. U.S. Environmental Protection Agency, Criteria and Procedures for Determining Conformity to State or Federal Implementation Plans of Transportation Plans, Programs, and Projects Funded or Approved Under Title 23 U.S.C. of the Federal Transit Act,Title 40 CFR, Parts 51 and 93, November 24, 1993, as amended in August 1995, November 1995, and August 1997. The Metropolitan Transportation Planning Process: Key Issues 18 Facilities: As used in the transportation world, “facilities” means all the fixed physical assets of a transportation system, such as roads, bus terminals, bridges, bike paths, and train stations. Capital assets: A capital asset is an item, usually non-real estate, that has a useful life of greater than one year and a unit cost of $5,000 or more. Examples: road repair equipment, computer systems, buses. ASSET MANAGEMENT What is Transportation Asset Management? Transportation Asset Management is a strategic framework for making cost- effective decisions about allocating resources (funding and personnel) and managing infrastructure (physical assets such as roads, equipment, and buildings). It is based on a process of monitoring the physical condition of assets, predicting deterioration over time, and providing information on how to invest in order to maintain or enhance the performance of assets over their useful life. What is the role of the MPO in asset management? A metropolitan area’s transportation system represents a massive investment in transportation facilities and the capital assets used to operate and maintain this system.With the total government investment just in roads and bridges in the United States estimated to be over $1 trillion, the transportation system is most likely the largest government-owned asset in any metropolitan area. Use, as well as wear and tear from the environment (such as heaving from freezing and thawing), will make transportation infrastructure deteriorate over time.Therefore, one of the main goals of transportation agencies is preservation, to keep the infrastructure in operating condition. If roads, bridges, airports, transit facilities, ports, bicycle and pedestrian paths, etc. are not maintained, people and goods will not move as easily, resulting in reduced quality of life and diminished economic activity. The MPO can support asset management by encouraging the collection of data and use of the resulting information for establishing priorities for improving the area’s transportation assets.Typically, the MPO does not, on its own, develop and/or operate an asset management decisionmaking framework.This is usually the responsibility of state and local operating agencies. What are the steps decisionmakers use in the transportation asset management process? The following steps are typical for the asset management process: 1. Decisionmakers establish expectations for the transportation system’s performance, and use them to guide the analytical process, as well as the decisionmaking framework.These expectations must be consistent with goals, available budgets, and organizational policies. 2. The transportation system is inventoried, and performance data is collected and analyzed.This information is used to determine what is needed. The Metropolitan Transportation Planning Process: Key Issues 21 2. What statistics are being collected about minority/low-income communities, and how are they used to assess possible inequities? Actions to take include: • Evaluating what information is already being collected. • Identifying what further information can and should be collected. • Analyzing the data to identify potential inequities. • Developing measures to verify whether there is equitable distribution of the benefits and burdens of transportation services. 3. How are information and data incorporated into decisionmaking? Questions to ask include: • How is environmental justice considered in creating the transportation plan? • How is environmental justice information collected by the MPO and relayed to officials? • Is additional information needed to adequately consider the impacts of transportation decisions on low-income and minority communities? • How are the specific interests of minority and low-income populations addressed in transportation policies, plans, and projects? What are the regulatory foundations for environmental justice? The legal foundation for environmental justice considerations is Title VI of the Civil Rights Act of 1964, which prohibits discrimination in any program receiving federal assistance. The 1969 National Environmental Policy Act (NEPA) and 23 USC 109(h) also require that social, economic, and environmental consequences of programs be considered when contemplating any action having federal support. The FHWA and the FTA have jointly issued policy guidance on how environmental justice concerns can be incorporated into metropolitan transportation planning. Additional sources of information: http://www.fhwa.dot.gov/environment/ej2.htm provides extensive information and case studies on environmental justice. http://www.fta.dot.gov/office/planning/environj.html is another resource on FTA’s website. The Metropolitan Transportation Planning Process: Key Issues 22 FINANCIAL PLANNING AND PROGRAMMING What is financial planning? Financial planning takes a long-range look at how transportation investments are funded, and at the possible sources of funds. MPOs must consider funding needs over the 20-year period of the long-range transportation plan, and develop a financial plan that identifies funding sources for needed investments, including the maintenance and operation of the existing transportation system. What is financial programming? Programming funds means identifying funds for specific projects in the TIP, which generally covers a three-year period. Notifying FHWA and FTA of the sources of the funds that will likely be used to support each project is part of programming. What is the financial plan element of the long-range transportation plan? The long-range transportation plan must include a financial section that estimates how much funding will be needed over the life of the plan, and how the MPO can reasonably expect to fund the projects included in the plan, including anticipated revenues from FHWA and FTA, state government, regional or local sources, the private sector, and user charges. For example, a financial plan could assume that the amount of available federal funding will remain constant over the first five years of the plan, and then escalate at a rate equal to inflation or the Consumer Price Index (CPI). It could also assume that state gasoline taxes dedicated to transportation will be increased every five years by a certain amount based on past trends. Further, the trans- portation plan might assume a new revenue source from a local sales tax within an MPO region, so long as there is reason to believe such a new source will be available. How are funds programmed? Each state must submit a State Transportation Improvement Program (STIP - this is the programming document for the state) to FHWA/FTA every two years. The STIP includes all of the projects planned for implementation with the funds expected from FHWA and FTA for the upcoming three years, and includes each MPO’s TIP and all of the projects included in the first three years of that TIP. The STIP must be fiscally constrained, which means that the costs of the projects in the STIP must not exceed projected reasonably available revenue while ensuring continued funding for the operation and maintenance of the existing transportation system. The Metropolitan Transportation Planning Process: Key Issues 23 Amendments to the STIP are common, given the frequency of changes in engineering modifications, environmental issues, contracting issues, project readiness, and other factors that require project schedules and budgets to be adjusted from time to time. If an MPO wants to amend a project in the STIP, it first must amend its TIP. What is the process by which a TIP gets programmed for funding? • The TIP must be consistent with the transportation plan. • In the TIP, the MPO indicates which projects will be worked on in each year. • The MPO must identify which combination of funding sources (federal, state, local) will be used for each project and must show that enough funds will be available for all of the projects. • Projects included in the first two years of the TIP must have funds (i.e., bonds) available or committed. Some projects are multi-year in nature, which will be indicated in the TIP. The TIP (after being approved by the MPO and the governor) is then submitted to the state DOT for inclusion in the STIP, which is then submitted to FHWA/ FTA. In air quality nonattainment and maintenance areas, the TIP must also meet transportation conformity requirements. How do MPOs know how much money is going to be available? TEA-21 requires that revenue forecasts be developed cooperatively by the MPO, the state DOT, and the public transit agency in order to help MPOs know how much funding is likely to be available for transportation projects in their area.This provision is intended to improve financial planning and enable a longer-term view of financial needs. What are the sources of transportation funds? Transportation funds come from a number of sources, including income tax, sales tax, tolls, bonds, and state, local, and federal excise taxes on various fuels.The source of transportation funds to construct a particular project can vary greatly from one area to another, because each area can decide which mix of funds is best suited to local needs. When federal funds are authorized by Congress for the U.S. Department of Transportation, they are allocated into various programs before DOT redirects them to the states. Some primary examples of these programs include the Interstate System/Interstate Maintenance Program, the Highway Bridge Replacement and Rehabilitation program, the Surface Transportation Program (STP) (which includes enhancements funding and safety funding), the Federal Lands Highway Program, and the Congestion Mitigation and Air Quality Improvement Program. The Metropolitan Transportation Planning Process: Key Issues 26 Truck Restrictions: Peak period bans Freeway section bans Route diversions Designated access routing Hazardous materials route restrictions Local truck and noise ordinances Peak HOV only/off peak truck lanes Road Design and Construction: Capacity and safety improvements Improved entry/exit ramps and merges Continuous merge lanes Exclusive truck facilities Road Pricing: Peak period permits Freeway permits Peak period tolls Peak/off-peak rate differentials Fleet Management: Voluntary off-peak operations Automatic vehicle location/routing Driver training and management Traffic Engineering: Lane design restrictions Wider lanes Continuous merge lanes Variable message signs Sign placement Truck advisory signs Speed restrictions Shipper/Receiver Actions: Voluntary off-peak operations Mandatory off-peak operations Incident Management: Automated detection Site and area surveillance/ communications Organizational changes Inspection/Enforcement: Automated surveillance Urban truck inspections/enforcement Information Management: Highway advisory radio Traffic information Different freight-transport tactics that might be considered in transportation planning include the following: The Metropolitan Transportation Planning Process: Key Issues 27 What requirements must the MPO adhere to? TEA-21 states that the transportation planning process should “...support the economic vitality of the metropolitan area (or state), especially by enabling global competitiveness, productivity, and efficiency; increase the accessibility and mobility options available to people and for freight; and enhance the integration and connectivity of the transportation system, across and between modes, for people and freight.” What funding is available for freight planning and project implementation? MPOs can use planning funds for freight planning, and can dedicate funds for specific project implementation. Funding of specific freight projects must meet federal eligibility requirements for funding. Projects that provide improved access to terminals or ports can be included in the federally funded transportation improvement program. In those cases where freight investment projects can directly bring about reductions in pollutant emissions, Congestion Mitigation and Air Quality funds can also be used to support those projects. Additional sources of information: http://www.fhwa.dot.gov/freightplanning/index.htm is FHWA’s guide to freight planning, providing guidelines, case studies, and a manual. http://www.ops.fhwa.dot.gov/freight/freight_finance_report.htm is a guide to financing freight transportation improvement. The Metropolitan Transportation Planning Process: Key Issues 28 LAND USE AND TRANSPORTATION What is the relationship between land use and transportation? Transportation’s basic purpose is moving people and goods from one place to another, but its effect on economic development goes well beyond this.An efficient transportation system can improve the economy, shape development patterns, and influence quality of life and the natural environment. Land use and transportation are symbiotic: how development is spaced can greatly influence regional travel patterns, and, in turn, the degree of access provided by the transportation system can influence land use distribution. What is the role of the MPO in land use and transportation? The role of the MPO varies according to state and locality. In some areas, MPOs are responsible for reviewing local land use decisions considered regionally significant. In others, land use decisions are solely the prerogative of local officials. Regardless of the MPO’s role in decisionmaking, transportation planners must make every effort to consider the comprehensive land use plans of the region and local jurisdictions, and create a constructive dialogue with land use officials. In that way, each group is informed of actions that might affect the other. What are the requirements for considering land use in the transportation planning process? Federal planning regulations place considerable importance on the link between transportation planning and land use, though there are no federal laws mandating specific actions.According to the 1993 joint FHWA/FTA regulations for metro- politan and statewide planning, the metropolitan transportation planning process should consider “the likely effect of transportation policy decisions on land use and development and the consistency of transportation plans and programs with the provisions of all applicable short- and long-term land use and development plans....” The regulations also state that the plan itself should “reflect, to the extent that they exist, consideration of: the area’s comprehensive long-range land use plan and metropolitan development objectives; national, state, and local housing goals and strategies; community development and employment plans and strategies....” The Metropolitan Transportation Planning Process: Key Issues 31 www.op.state.md.us/smartgrowth The new Maryland Office of Smart Growth is a “one-stop shop” on smart growth that promotes interagency cooperation to help local governments bring smart growth projects to fruition; serves as an information clearinghouse on smart growth for local officials, developers, and citizen groups; and provides targeted advisory and technical assistance to local jurisdictions, developers, and the public, in cooperation with the Department of Planning. www.uli.org/indexJS.htm The Urban Land Institute’s mission is to take a leadership role in bringing together people involved in important issues related to land use and the built environment. The Metropolitan Transportation Planning Process: Key Issues 32 MODELS AND THEIR USE What are models? Models are simulations of the “real world” that can be used to show the impact of changes in a metropolitan area on the transportation system (such as adding a new road or transit line, or increases in population or employment). Current FHWA and FTA planning regulations require only that the MPO have an analytical process in place for evaluating projects. Models are not required by the federal planning regulations. Three important assumptions are part of any model used for transportation analysis: • Key characteristics of the system to be modeled can be described in terms of quantifiable variables (e.g., number of automobiles per household, household size, etc.). • There is a relationship between these variables and the behavior of individuals or of systems (e.g., the more automobiles per household, the greater the number of automobile trips per household).This relationship is most often expressed in mathematical terms. • This relationship is the same for all individuals and is constant over time. Challenges to the validity of transportation models often focus on one of these three assumptions. What is the four-step modeling process? For the past 40 years, transportation professionals have used a four-step approach in modeling transportation demand. Most modeling approaches use some form of these steps today. Once some understanding has been established as to what the land use, population, and employment levels are in a study area, the four modeling steps are: • Trip generation: Estimating the number of trips generated in a zone or at a particular location, and attracted to a zone or a particular location, based on the assumed relationship among socio-economic factors, land use characteristics, and the number of trips.Trip generation then leads to: • Trip distribution: Estimating the number of trips that originate in every zone in the study area, with destinations to every other zone.The result is a trip table that is used in: • Mode split: Estimating, for the number of trips predicted between each origin and destination, the number of trips made via each type of mode that is available for that trip.Thus,“‘x” percent are likely to drive alone,“y” percent are likely to take transit, “z” percent are likely to ride-share, etc. Mode split leads to: The Metropolitan Transportation Planning Process: Key Issues 33 • Network assignment: Estimating the number of trips via a particular mode that will take specific paths through a road or transit network.The end result, when all trips are assigned to a network, is an estimate of the total number of trips that will use each link in the network.When compared to the capacity of this link, planners can forecast the level of congestion that will occur at that location.This becomes the basis for assessing the performance of the trans- portation system. What are other types of models? Four-step models are commonly used to predict the demand for transportation services.Transportation planners and engineers also use other types of models to analyze and evaluate the performance of transportation systems and resulting impacts. Impact models determine the likely effects that constructing and operating trans- portation facilities will have on the surrounding environment and community. For example, planners often use air quality models, noise models, and community impact models in analyzing transportation alternatives. Cost models estimate the likely costs of transportation facilities and services. For example, cost models estimate the unit cost per component of a facility (e.g., dollars per linear foot of rail line), and multiply this by the estimated number of units needed. Most recent cost-modeling approaches incorporate a life-cycle costing perspective that requires the planner to estimate expected costs, both capital and operating, for a possible project over the expected life of that project.The total “cost picture” is then presented to decisionmakers when choosing among different alternatives. What should MPOs consider when presented with the results of models? Results of a model are still only estimates - they cannot provide a definitive picture of what will happen in the future. Much like economic projections, transportation forecasts are greatly affected by the long-term economic health and attractiveness of the region, by population changes, and by the individual behavior of each person using the transportation system, which no one can predict. Model results are only as good as the data that go into the model. MPOs must use the most current socio-economic and census data available, especially if the region is growing rapidly. MPOs should make every effort to explain the information and assumptions that went into creating the model in plain, understandable terms. Additional sources of information: Cambridge Systematics and Transmode Consultants, Multimodal Corridor and Capacity Analysis Manual: National Cooperative Highway Research Program Report 399.Transportation Research Board, 1998. Meyer, M. and E. Miller, Urban Transportation Planning: A Decision-Oriented Approach. New York: McGraw Hill, 2001. The Metropolitan Transportation Planning Process: Key Issues 36 Different types of transportation projects will have varying degrees of complexity and potential to affect the environment. Under NEPA, the required environmental document depends on the degree of impact and FHWA and FTA, in coordination with the project sponsor, prepare one or more of the following documents for a proposed project: • Environmental Impact Statements (EIS) - prepared for projects that have a significant impact on the human and natural environment. Draft EIS (DEIS) and Final EIS (FEIS) documents provide a full description of the proposed project, the existing environment, and the analysis of the beneficial and adverse impacts of all reasonable alternatives, including input from the public. • Record of Decision (ROD) - presents the selected transportation decision analyzed in an EIS, the basis for that decision, and the environmental commitments to mitigate for project impacts to the human and natural environment. • Categorical Exclusions (CE) - prepared for projects that do not have a significant impact on the human and natural environment. • Environmental Assessments (EA) and Finding of No Significant Impacts (FONSI) - prepared for projects where it is not clearly known if there will be significant environmental impacts. If the analysis in the EA indicates the proposed project will have significant environmental impacts, an EIS is prepared. If there is not a significant impact, this conclusion is documented in a separate decision document, the FONSI. Regardless of the type of NEPA document prepared, final selection or approval of a proposed project alternative by FHWA and FTA allows the project to be eligible for federal funding of subsequent project activities such as final design, right-of-way acquisition, and construction. Figure 6: Documentation required as part of the NEPA process The Metropolitan Transportation Planning Process: Key Issues 37 Additional sources of information: http://nepa.fhwa.dot.gov/ReNepa/ReNepa.nsf/home. This site is dedicated to the open exchange of knowledge, information, and ideas concerning NEPA and other environmental issues. Re: NEPA allows anyone interested in NEPA and related topics to contribute thoughts and ideas in an open forum. http://www.fhwa.dot.gov/environment/strmlng/index.htm. This website provides information on environmental streamlining — the term for a new cooperative approach to implementing transportation projects that brings together timely delivery and the protection and enhancement of the environment. It was first enacted into legislation for highway and transit projects with TEA-21. http://www.fta.dot.gov/office/planning/envr.htm. This website provides information on environmental streamlining and the environmental process. The Metropolitan Transportation Planning Process: Key Issues 38 PUBLIC PARTICIPATION What is the role of public participation in the development of transportation policies, programs, and projects? Public participation is integral to the MPO’s transportation mission.Without meaningful public involvement, there is a risk of making less than optimal decisions.With it, it is possible to make a lasting contribution to an area’s quality of life. Public involvement is more than an agency requirement and more than a means of fulfilling a statutory obligation.True public participation is central to good decisionmaking. The fundamental objective of public participation programs is to assure that the concerns and issues of everyone with a stake in transportation decisions are identified and addressed in the development of the policies, programs, and projects being proposed in their communities. Who is the public? The public includes anyone who resides, has an interest, or does business in a given area potentially affected by transportation decisions.This includes both individuals and organized groups. It is also important to provide opportunities for the participation of all private and public providers of transportation services, including, but not limited to, the trucking and rail freight industries, rail passenger industry, taxicab operators, and all transit and paratransit service operators. Finally, those persons traditionally underserved by existing transportation systems, such as low-income or minority households (see section on Environmental Justice) and the elderly, should be encouraged to participate in the transportation decisionmaking process. Federal, state, and local agencies with an interest in transportation issues play a particularly important role in the development of transportation projects. Many of those agencies have a statutory responsibility to review environmental docu- ments or issue permits for transportation projects. FHWA and FTA encourage MPOs and state DOTs to aggressively pursue improved communication and collaboration with these partners, beginning early in the transportation planning process, to identify and address their concerns. What is the role of the MPO in implementing public participation processes? As the agency responsible for coordinating the regional transportation planning process, the MPO must actively involve all affected parties in an open, cooperative, and collaborative process that provides meaningful opportunities to influence transportation decisions.Transportation has a profound influence on the lives of people. Decisionmakers must consider fully the social, economic, and environ- mental consequences of their actions, and assure the public that transportation programs support adopted land use plans and community values. Paratransit: A variety of smaller, often flexibly scheduled and routed transportation services using low-capacity vehicles, such as vans, which operate within normal urban transit corridors or rural areas.These services usually serve the needs of people that standard mass transit services would serve with difficulty, or not at all. Often, the patrons include the elderly and people with disabilities. The Metropolitan Transportation Planning Process: Key Issues 41 Bureau of Transportation Statistics.Annual statistical reports provide national numbers on crash statistics: http://www.bts.gov/. http://nationalacademies.org/trb/publications/circulars/ec025.pdf is a TRB circular on safety conscious planning for a multi-stakeholder workshop held in May 2000. http://www.ite.org/ contains an Institute of Transportation Engineers’ discussion paper,“The Development of the Safer Transportation Network Planning Process.” The Metropolitan Transportation Planning Process: Key Issues 42 SYSTEM MANAGEMENT AND OPERATIONS (M&O) What is system management and operations? System management and operations (M&O) analyzes regional transportation as an interconnected set of services and systems, to improve system performance through better management and use of the transportation network. In identifying possible system M&O improvements, it is important to understand what system users want in terms of performance. Some examples of user-oriented performance measures are average trip travel time, length of delay, and reliability of trip making.These are important indicators of how well the transportation system is operating. Successfully implementing M&O strategies requires close coordination among the many different agencies and groups with responsibility for transportation system performance. What are some examples of M&O tools? Intelligent Transportation Systems (ITS) are technological tools that can help to facilitate better system M&O. For example, roadway video surveillance allows better responses to changes in network conditions, such as clearing an accident faster to keep traffic moving. ITS technologies also can be used to collect real- time data, like travel speeds, which can be used to monitor system performance over time. Other examples of system M&O tools include: • Metropolitan traffic management centers • Traffic signal coordination • Freeway/arterial corridor management • Incident management programs • Preferential treatment for transit/rideshares • Special event traffic management • Emergency management strategies • Pricing of transportation services • Customer information services • ITS applications for transit • Traveler Information • Commercial vehicle programs Reliability of trip making: The level of reliability of the time it takes to make a specific trip; for example, one’s daily commute, or the time it takes for goods to move between shipper and receiver. The Metropolitan Transportation Planning Process: Key Issues 43 What is the role of the MPO in enhancing system management and operations? Identifying M&O strategies and benefits: When developing the transporta- tion plan, the MPO should consider using M&O strategies as one method of improving mobility for constituents.Those programs and projects should then be given high priority in the TIP. Coordinating with all agencies involved: Many different agencies assist in system management and operations in a typical metropolitan area.The MPO can provide regional leadership in establishing a decisionmaking framework by bringing parties together, by helping to determine how M&O decisions will be made in an area, and by asking for input on M&O issues as part of the planning process.This allows agencies to develop M&O strategies in common. Develop performance measures: The MPO should develop system performance measures that take into account the desires and expectations of transportation users, and can be used to decide how funds should be spent.The MPO can then work to improve the system through future plans and TIPs. Additional sources of information: http://www.ops.fhwa.dot.gov/ is the FHWA’s operations site, with information on travel management, transportation operations, freight management, and ITS. www.its.dot.gov is the Department of Transportation’s official ITS site. A Toolbox for Alleviating Traffic Congestion and Enhancing Mobility. Institute of Transportation Engineers:Washington, D.C., 1997. Federal Highway Administration, Managing Our Congested Streets and Highways, U.S. DOT, 2001. http://www.itsa.org/ is the website for ITS America, a nonprofit organization that acts as a clearinghouse for information on ITS. The Metropolitan Transportation Planning Process: Key Issues 46 Area Sources Small stationary and nontransportation pollution sources that are too small and/or numerous to be included as point sources but may collectively contribute significantly to air pollution (e.g., dry cleaners, crop burning). Arterial Street A class of street serving major traffic, not designated as a highway. Attainment Area An area considered to have air quality that meets or exceeds the U.S. EPA health standards used in the CAA.An area may be an attainment area for one pollutant and a nonattainment area for others. Nonattainment areas are areas considered not to have met these standards for designated pollutants. Clean Air Act (CAA) Identifies actions to be taken by states and MPOs to reduce emissions from on-road mobile sources. Capital Program Funds Financial assistance from the Capital Program of 49 U.S.C.This program enables the Secretary of Transportation to make discretionary capital grants and loans to finance public transportation projects divided among fixed guideway (rail) modernization; construction of new fixed guideway systems and extensions to fixed guideway systems; and replacement, rehabilitation, and purchase of buses and rented equipment, and construction of bus-related facilities. Capacity A transportation facility’s ability to accommodate a moving stream of people or vehicles in a given time period. Carbon Monoxide (CO) A colorless, odorless, tasteless gas formed in large part by incomplete combustion of fuel. Human activities (i.e., transportation or industrial processes) are largely the source for CO contamination. Congestion Mitigation and Air Provides funding for metropolitan area based on the population of each Quality Improvement Program nonattainment and maintenance area. (CMAQ) Congestion Management Systematic process for managing congestion. Provides information on System (CMS) transportation system performance and finds alternative ways to alleviate congestion and enhance the mobility of people and goods, to levels that meet state and local needs. Conformity The compliance of any transportation plan, program, or project with air quality implementation plans.The conformity process is defined by the CAA. Department of When used alone, indicates U.S. Department of Transportation. In Transportation (DOT) conjunction with a place name, indicates state, city, or county transportation agency (e.g., Illinois DOT, Los Angeles DOT). The Metropolitan Transportation Planning Process: Key Issues 47 Emissions Budget The part of the SIP that identifies the allowable emissions levels mandated by the NAAQS for certain pollutants emitted from mobile, stationary, and area sources.The emissions budget is used for meeting emission reduction milestones, attainment, or maintenance demonstrations. Environmental Justice (EJ) Environmental justice ensures that services and benefits allow for meaningful participation and are fairly distributed to avoid discrimination. Environmental Protection The federal regulatory agency responsible for administering and enforcing Agency (EPA) federal environmental laws, including the Clean Air Act, the Clean Water Act, the Endangered Species Act, and others. Federal Highway A branch of the U.S. Department of Transportation that administers the Administration (FHWA) Federal-Aid Highway Program, providing financial assistance to states to construct and improve highways, urban and rural roads, and bridges.The FHWA also administers the Federal Lands Highway Program, including survey, design, and construction of forest highway system roads, parkways and park roads, Indian reservation roads, defense access roads, and other federal lands roads. Fiscal Constraint Making sure that a given program or project can reasonably expect to receive funding within the time allotted for its implementation. Financial Planning The process of defining and evaluating funding sources, sharing the information, and deciding how to allocate the funds. Financial Programming A short-term commitment of funds to specific projects identified in the regional Transportation Improvement Program (see TIP). Fine Particulates One of the six EPA “criteria pollutants” for air quality, and one of the pollutants generated by on-road mobile sources. PM-10, or any airborne solid or liquid particles smaller than 10 microns. Formula Capital Grants Federal transit funds for transit operators; allocation of funds overseen by FTA. Federal Transit A branch of the U.S. Department of Transportation that is the principal Administration (FTA) source of federal financial assistance to America’s communities for planning, development, and improvement of public or mass transportation systems. FTA provides leadership, technical assistance, and financial resources for safe, technologically advanced public transportation to enhance mobility and accessibility, to improve the Nation’s communities and natural environment, and to strengthen the national economy. Geographic Information Computerized data management system designed to capture, store, System (GIS) retrieve, analyze, and display geographically referenced information. The Metropolitan Transportation Planning Process: Key Issues 48 High-Occupancy Vehicle (HOV) Vehicles carrying two or more people.The number that constitutes an HOV for the purposes of HOV highway lanes may be designated differently by different transportation agencies. Interstate Highway System (IHS) The system of highways that connects the principal metropolitan areas, cities, and industrial centers of the United States.Also connects the United States to internationally significant routes in Canada and Mexico. Intermodal The ability to connect, and the connections between, modes of transportation. Intermodal Surface Legislative initiative by the U.S. Congress that restructured funding for Transportation Efficiency transportation programs; authorized an increased role for regional Act of 1991 (ISTEA) planning commissions/MPOs in funding decisions; and required compre- hensive regional and statewide long-term transportation plans. Intelligent Transportation The application of advanced technologies to improve the efficiency and Systems (ITS) safety of transportation systems. Land Use Refers to the manner in which portions of land or the structures on them are used; i.e, commercial, residential, retail, industrial, etc. Long-Range A document resulting from regional or statewide collaboration and Transportation Plan (LRTP) consensus on a region’s or state’s transportation system, and serving as the defining vision for the region’s or state’s transportation systems and services. In metropolitan areas, the plan indicates all the transportation improvements scheduled for funding over the next 20 years. Maintenance Area A probationary status for a region that is nonattainment for air quality but is taking the required steps to comply with the Clean Air Act. Metropolitan Planning Regional policy body, required in urbanized areas with populations over Organization (MPO) 50,000, and designated by local officials and the governor of the state. Responsible, in cooperation with the state and other transportation providers, for carrying out the metropolitan transportation planning requirements of federal highway and transit legislation. Metropolitan Transportation The official intermodal transportation plan that is developed and adopted Plan (MTP) through the metropolitan transportation planning process for the metro- politan planning area, in accordance with 23 U.S.C. 134, 23 U.S.C. 135, and 49 U.S.C. 5303. Mobile Source Mobile sources are referred to as contributors to pollution. Some examples include motor vehicles, aircraft, seagoing vessels, and other transportation modes.The mobile source-related pollutants are carbon monoxide (CO), hydrocarbons (HC), nitrogen oxides (NOx), and small particulate matter (PM-10). Mode A specific form of transportation, such as automobile, subway, bus, rail, or air. The Metropolitan Transportation Planning Process: Key Issues 51 Telecommuting Communicating electronically (by telephone, computer, fax, etc.) with an office, either from home or from another site, instead of traveling to it physically. Title VI Title VI of the Civil Rights Act of 1964. Prohibits discrimination in any program receiving federal assistance. Transportation Improvement A document prepared by a metropolitan planning organization that lists Program (TIP) projects to be funded with FHWA/FTA funds for the next one- to three-year period. Transportation Management All urbanized areas over 200,000 in population, and any other area that Area (TMA) requests such designation. Trust Fund A fund credited with receipts that are held in trust by the government and earmarked by law for use in carrying out specific purposes and programs in accordance with an agreement or a statute. Unified Planning Work The management plan for the (metropolitan) planning program. Its Program (UPWP) purpose is to coordinate the planning activities of all participants in the planning process. Urbanized Area Area that contains a city of 50,000 or more population plus incorporated surrounding areas meeting size or density criteria as defined by the U.S. Census. 52 APPENDIX: FEDERALLY AIDED TRANSPORTATION PROGRAMS A modified version of the following tables is found in Financing the Statewide Plan: A Guidebook, Federal Highway Administration, November 1999: www.fhwa.dot.gov/hep10/state/04703r04.pdf Federal Transportation Programs and Revenue Sources Mode Major Transportation Programs Federal Revenue Sources Administered by FHWA • Interstate Maintenance • Highway Trust Fund with funds from federal: • National Highway System - Motor Fuel Tax (15.44 cents/gallon of • Bridge Replacement and Rehabilitation gasoline; varies for other fuel types) • Congestion Mitigation and Air - Truck and Trailer Tax Quality Improvement - Tire Tax • Surface Transportation Program - Heavy Vehicle Use Tax • National Corridor Planning and - Tire Tax Quality Improvement Development and Coordinated Border Infrastructure • High Priority (Demonstration) Projects • Intelligent Transportation Systems • Minimum Guarantee Administered by FTA • Capital (Section 3009) • Mass Transit Account of the Highway Trust • Urbanized Area Formula (Section 3007) Fund with funds from motor fuel tax • Other than Urbanized Area Formula (2 cents/gallon) (Section 3014) • Congestion Mitigation and Air Quality • General Fund Improvement (in air quality nonattainment and maintenance areas) • Interest • Formula Grants for Special Needs of Elderly Individuals and Persons With Disabilities (Section 3037) • Clean Fuels Formula Grants (Section 3008) Administered by FAA • Federal Airport and Airway Trust Fund, which • Aviation Fuel Tax is the source for: • Air Freight Tax - Airport development grants • Passenger Ticket Tax - Airport planning grants • International Departure Tax Administered by FTA, FHWA, FRA • Light Density Rail Line Pilot Projects • General Fund • Federal Railroad Administration Grants (planning, rail service continuation, rehabilitation, provision of substitute service) • CMAQ The Metropolitan Transportation Planning Process: Key Issues 53 Federal Transportation Programs and Revenue Sources (continued) Mode Major Transportation Programs Federal Revenue Sources Administered by FRA & FTA • Magnetic Levitation Transportation • Highway Trust Fund Technology Deployment • General Fund • High-Speed Rail • General Fund (relies on specific • Amtrak capital appropriations) • CMAQ • Passenger Fares • Food/Beverage Revenue Administered by MARAD & FHWA • Army Corps of Engineers • Fuel taxes paid by inland water carriers - Construction, operation, and maintenance • Ad valorem taxes paid by users of ports of waterways, locks and harbors • Highway Trust Fund • Construction of Ferry Boats and Terminal Facilities Administered by FHWA • Surface Transportation Program, • Highway Trust Fund including Enhancements • National Highway System • Congestion Mitigation and Air Quality Improvement • Federal Lands • Scenic Byways • Recreational Trails The Metropolitan Transportation Planning Process: Key Issues 56 Funding Transferability Under TEA-21 Program Transferability National Highway • States may freely transfer up to 50 percent of NHS apportionments to I/M, STP, System (NHS) CMAQ, and/or Bridge Replacement/Rehabilitation. • States may transfer up to 100 percent of NHS apportionments to STP, if approved by Secretary of Transportation and if sufficient notice and opportunity for public comment is given. Interstate Maintenance (IM) • States may transfer up to 50 percent of I/M apportionments to NHS, STP, CMAQ, and/or Bridge Replacement/Rehabilitation. Bridge Replacement • Up to 50 percent of Bridge Program apportionments may be transferred and Rehabilitation to NHS, I/M, STP, and/or CMAQ. • Funds set aside for bridges not on federal-aid highways (off-system bridges) may not be transferred unless a determination is made that the state has inadequate needs to justify expenditure of the full amount of the set aside funds. Congestion Mitigation • States may transfer up to 50 percent of the amount by which the CMAQ and Air Quality (CMAQ) apportionment for the fiscal year exceeds the amount that would have been apportioned for that fiscal year if the CMAQ program had been funded at $1.35 billion annually to STP, NHS, I/M and/or Bridge Replacement/Rehabilitation. Transferred funds may only be used in nonattainment and maintenance areas. Surface Transportation • Transportation Enhancement (TE) set aside states may transfer up to 25 Program (STP) percent of the difference between the amount set aside for TE for the fiscal year and the amount set aside for TE for FY 1997 to I/M, CMAQ, NHS, and/or Bridge Replacement/Rehabilitation. • Safety set aside funds equivalent to the funds made available for FY 1991 for the Hazard Elimination and Railway-Highway Crossing Programs may not be transferred. Up to 25 percent of the difference between the remainder of the safety set aside for the fiscal year.The “optional safety” funds—and the comparable amount for FY 2007 may be transferred to I/M, CMAQ, NHS, and/or Bridge Replacement/Rehabilitation. • Suballocation to areas-STP funds allocated to sub-state areas (rural, urbanized areas over 200,000 population) may not be transferred. • Transfers to STP from I/M, NHS, CMAQ, and Bridge Programs will not be subject to further STP set asides or suballocations. Interstate Construction (IC) • A state other than Massachusetts may transfer an amount equivalent to the federal share of the cost to complete its open-to-traffic Interstate segments included in the latest Interstate Cost Estimate (ICE) from its IC funds to NHS and/or I/M.The work on which the transfer is based will be removed from the ICE and will lose its IC fund eligibility. • States may transfer IC funds remaining after all work included in the ICE has been fully financed to the NHS. • States with remaining completion work on Interstate gaps or open-to- traffic segments may relinquish IC fund eligibility and transfer to the NHS amounts equivalent to the federal share of the cost of such work in the most recent ICE. The Metropolitan Transportation Planning Process: Key Issues 57 Innovative Highway Financing Strategies/Tools Cash Flow Approaches Tool Approach Advance Construction Allows states to independently raise upfront capital required for a project and preserve eligibility for future federal funding for the project. Projects must be designated as advance construction projects to be eligible. Partial Conversion of Form of advance construction; state only converts, obligates, or Advance Construction receives reimbursement for part of its funding for an eligible project in a given year. States no longer have to wait until the full amount of obligation authority is available. Bond Cost Reimbursement: State-issued short-term note or long-term bond that uses future Grant Anticipation Revenue federal funds to support payment of principal and interest. Issuance Vehicle (GARVEE) and insurance costs are also eligible.This is generally used in combination with advance construction. Tailored (Variable) Match Allows non-federal share to vary over project life, so long as the ultimate matching share is preserved over time. Program Level For STP projects, allows federal share for funds to be matched across the full program, not on a project-by-project basis. Flexible: Federal Land Funds from other federal agencies may count toward the Management Agency Funds non-federal matching share for recreational trails and transportation enhancement projects. Flexible: Federal Lands Funds from a DOT’s Federal Lands Highway Program may count toward non-federal match for projects within or providing access to federal or Indian lands. Flexible: Publicly-Owned Land Permits donations of publicly owned property to count toward non-federal match on all federal-aid highway projects. The Metropolitan Transportation Planning Process: Key Issues 58 Leveraging Tools Tool Approach Flexible Match Allows states to apply private donations of materials, labor, or assets and private funds toward the state or local match for federal-aid projects. Federal Share on Toll Projects Expanded use of federal funds for toll projects to include construction of new facilities, resurfacing, restoration, and rehabili- tation of existing facilities and conversion of free facilities. Private facilities are now also eligible. Bonds and Debt Allows states to use federal funds for bond principal, interest Instrument Financing costs, issuance costs, and insurance on eligible projects. ISTEA Section 1012 Loans Removes the limitation that federal funs can be used only once. Allows states to loan federal funds to leverage any eligible investment; the state can use the funds again once they have been paid back. ISTEA Section 1044 Toll Allows states to receive investment credit for certain toll revenue Investment Credits expenditures, which can be applied toward the non-federal matching share of all ISTEA programs. Credit Tools Tool Approach State Infrastructure Bank States could allocate up to 10 percent of their ISTEA apportionment to capitalize the state bank. Funds can be used to provide loans for projects.This can be structured as a revolving loan fund, where loans are recycled for new projects. State infrastructure banks can provide third-party guarantees to projects to ensure that there is sufficient revenue to pay project costs or debt service. Surface Transportation This provides direct federal loans, loan guarantees, and lines Credit Program of credit for large surface transportation programs of national significance. Rail Credit Pilot This provides direct federal loans and loan guarantees for rail and intermodal projects. Tolls and Other Income-Generating Tools Tool Approach Right-of-Way Income This allows income from right-of-way sales and leases to be used for Title 23 (highway) purposes, as currently allowed for airspace income.