INTRODUCTION TO FEDERAL HIGHWAY FUNDING AND ELIGIBILITY Mike Morrow Field Operations Engineer (503) Mike Morrow(Field Operations Engineer) Mike Morrow(Field Operations Engineer)

EXPECTATIONS How the FAHP is financed Legislation Apportionment formulas Major funding requirements Discretionary – Earmarked funds

Characteristics of the Federal-Aid Highway Program  State Administered, Federal Stewardship  Funding tied to specific “systems”  Requires States to have Highway Agency or locals to have responsible individual  States/locals pay for routine maintenance  Matching requirements  Reimbursable program  Contract authority

Review and approve state/local proposals Develop regulations and guidance Promulgate standards Provide technical assistance Distribute line of credit Reimburse States their eligible expenses State DOT Apportionment or Allocation Federal, State and Local Relationship Federal Responsibilities

Federal, State and Local Relationship State and Local Responsibilities  Conceive, prioritize, plan, design, and construct, and projects  Maintain and operate highways

Safe, Accountable, Flexible, Effient Transportation Equity Act –A Legacy for Users (SAFETEA-LU)  Highways, highway safety, transit  5-year legislation  Signed into law August 10, 2005 (P. L )  $244 billion authorized over 5 years  (12% increase over TEA-21)  Highways - $193 billion  Transit - $51 billion

Contract Authority Unobligated Balances Appropriations Act (annual) Obligation Limitation Liquidating cash from HTF Authorization Act (SAFETEA-LU) Distribution of funds Total funds available Obligation of funds Reimbursement

Distribution of Funds  Distributed by formula specified in law  Distributed on October 1  Withdrawn only by law  All eligible States are recipients  No method specified in law  Distributed throughout year  Can be withdrawn by administrative action  Only some States are recipients Apportionments (STP, NHS, Bridge, CMAQ, etc.) Allocations (Bridge Discretionary, Scenic Byways, COF, etc.)

Minimum Guarantee State’s share of apportionments and high priority projects will be not less than 92% of the State’s share of its contributions to the Highway Account of the Highway Trust Fund: State apportionments* US apportionments State contributions US contributions 92% >=>= Guaranteed Return on Contributions * Includes High Priority Projects

Types of Penalties  Transfer Apportionments (serious)  Open Container  Repeat Offenders (Section 164)  Withhold Apportionments (very serious)  Minimum Drinking Age  Zero BAC Tolerance  Withhold Project Approval (most serious)  Maintenance of Federal-aid Projects

Federal Lands Emergency Relief 100% Federal Share Interstate Maintenance 90% Matching Share NHS STP Bridge CMAQ 80% Matching Share

State submits FHWA sends State pays contractor voucher to FHWA to Treasury Treasurer wires money to State Contractor does work State pays LPA State submits voucher to FHWA FHWA sends to Treasury Treasurer wires money to State LPA pays Contractor Time ActionsActions Reimbursement

Rate of Liquidating Cash How fast obligated funds become expended % by Year Number of years until expenditure

 State Request, Federal Approval  Commits State’s Line of Credit  Commits Federal Government to Reimburse State  Based on Estimates  Protects Funds from Lapsing  Traditional Point of Budgetary Control Obligations

Obligation Limitation (Obligation Ceiling) What is it? Who does it? Why?  A budgetary mechanism to control Federal spending  Congress -- through legislation  To be responsive to current budget policies

Contents of FHWA Budget  Obligation Limitation  General Operating Expense Obligation Limitation  Liquidating Cash Amount  Budget Authority (permission to obligate)  Revenue Aligned Budget Authority (RABA) amount

Highway Trust Fund SAFETEA-LU of 2005  Extended authorization for FY  Extended HTF through FY 2011  (Woops – Missed the target here a little bit  )  Congress added six billion with hopes of getting through 2009

Federal Gasoline Tax Effective October 1, cents 0.1 cent In cents per gallon cents2.86 cents Highway Account Mass Transit Account L.U.S.T. Trust Fund

Federal Diesel Tax Effective October 1, cents 0.1 cent In cents per gallon cents 2.86 cents Highway Account Mass Transit Account L.U.S.T. Trust Fund

Highway Trust Fund Income Gasoline - $17.6 B Diesel - $7.0 B Truck Sales - $3.3 B Truck Use - $0.9 B Tires - $0.4 B Other - $0.01 B Total = $30.3 B Gasohol - $1.1 B

Functional Classification Eligibility for Federal Financial Assistance IneligibleEligible Local - 76% Interstate - 1% (Included in NHS %) NHS - 4% Other - 20% Out of 3.9 million miles of roads in the U.S., less than 1 million miles are eligible for federal financial assistance.

Authorizations Highway, Highway Safety, and Rail Programs Total = $193 B IM - $25.2 B NHS - $30.5 B Bridge - $21.6 B STP - $32.5 B CMAQ - $8.6 B Fed Lands - $4.3 B High Priority Projects - $14.8 B Minimum Guarantee $37.8 B Highway Safety - $5.0 B Research - $2.2 B Appalachia - $2.3 B Other/Admin - $8.1 B

General Eligibility Roadways eligible for Federal-aid funding: publicly owned and open to public be functional classified higher than rural minor collectors or local roadways meet the requirements of the specific Federal funding program

General Categories of Federal-aid Funds  Interstate Maintenance (IM)  National Highway System (NHS)  Surface Transportation Program (STP)  Highway Bridge Program  Congestion Mitigation & Air Quality (CMAQ)  Emergency Relief  Discretionary Programs  Earmarked Projects

Interstate Maintenance Types of Work Eligible  4R’s (Resurfacing, Restoration, Rehabilitation, and Reconstruction)  Bridges, Interchanges and Overcrossings on Existing Interstate  Safety, ITS, and Operations  Preventive Maintenance (Scheduled Activities)  HOV, auxiliary lanes, truck climbing (not new through lanes)

Interstate Maintenance State Distributions  33-1/3%: Interstate lane miles (%)  33-1/3%: VMT on Interstate (%)  33-1/3%: HTF contributions (%) attributable to commercial vehicles

National Highway System Types of Work Eligible  Construction and 4R’s (NHS)  Operational Improvements (NHS)  Safety Improvements (NHS)  Transportation Planning (23 USC 134 &135)

National Highway System Types of Work Eligible  Highway research and technology transfer Chapter 5 of Title 23, USC  Traffic monitoring, management and control facilities/programs, ITS,  Carpool, vanpool,

State Distribution National Highway System  25 %: Lane Miles (principal arterials)  35%: VMT (principal arterials)  30%: Diesel Fuel (used on highways)  10%: Lane Miles/Population (lane miles on principal arterials, population in Oregon)

NHS Map for Oregon l aps/or/or_oregon.pdf aps/or/or_oregon.pdf

Surface Transportation Program (STP) State Distribution  25%: Lane miles on Federal Aid Highway System (%)  40%: VMT on FAH (%)  35%: HTF contributions (%)

Surface Transportation Program Types of Work Eligible  Title 23, U.S.C. & Chapter 53,Title 49, U.S.C. eligible  Construction, 4R, operational improvements (FAH System & Off-System Bridges).  STP set-a-sides: Transportation enhancements (10%)

Highway Bridge Program (HBP) State Distribution Formula based on each states relative share of costs to repair or replace deficient highway bridges (on & off the Federal-aid Highway System)

Highway Bridge Program (HBP) Types of Work Eligible  Structure carries highway traffic  Is at least 20 foot clear span length (abutment to abutment)  10 years since last major work  NOTE: At least 15% of HBP $ must be used off the Fed-aid Highway System (but on a public road). May apply for exception (Oregon Does).

Highway Bridge Program (HBP)  Replace structurally deficient or functionally obsolete bridge  To replace: Sufficiency Rating < 50  To rehab: Sufficiency Rating < 80  Restore the structural integrity

Highway Bridge Program (HBP)  Replace ferryboat operations (in existence on 1/1/84)  Painting, seismic retrofitting,anti-icing/ de-icing or scour counter-measures (on bridges)

Highway Bridge Program (HBP) Prior bridge criteria only apply to the use of HBP funding. If adequate need can be established other funding types may be used for bridge work.

CMAQ State Distribution Formula based on population within ozone & carbon monoxide (CO) non-attainment & maintenance areas, and severity of the areas air quality problems.

Congestion Mitigation and Air Quality (CMAQ) Eligible projects:  Projects with air quality benefits Ineligible projects:  Projects that add new capacity for SOV  Maintenance Projects

Discretionary  Division office authorization  Apply (subsequent FHWA approval)

Discretionary  Corridors & Borders  Innovative Bridge Research and Construction  National Historic Covered Bridge Program  Public Lands Highways  Ferry Boats  Scenic Byways  Transportation and Community and System Preservation Pilot Program (TCSP)  Highways for Life  Truck Parking, and Value Pricing

Discretionary INTERSTATE MAINTENANCE  4R on interstates  Construction  Funds are lost if not obligated 9/30  Can reapply following year

Discretionary Transportation and Community and System Preservation Program (TCSP)  Planning & Construction funds  Title 23  Title 49, chapter 53 Has been fully earmarked recently Unobligated funds can be returned next year

Discretionary SCENIC BYWAYS  National/State Scenic Byways  All-American Roads

Discretionary FERRY BOAT  Bridge/tunnel not feasible  Route must be a public road  Publicly owned or operated  State has control over fares

Discretionary NATIONAL HISTORIC COVERED BRIDGE PRESERVATION  National Register of Historic Places  Fire protection system installation  Vandal/arson alarm system  Relocate to a preservation site

Earmarked Funds  Law may define eligible activities  Reverts to program requirements  Written in law  Law makes funds available  Does NOT authorize project!!!  May have to apply (discretionary)  Needs FHWA authorization  May not get all of funds, or in one year!

LPA Advertising for Bids “THOU SHALT HAVE AN FHWA AUTHORIZATION IN THY HANDS PRIOR TO ADVERTISING FOR BIDS” (or spending any money)

Local Responsibilities and Expectations for LPA projects l Knowledge of Federal-aid requirements l ODOT/Local Partnership: early, continuous communication and coordination needed. l ODOT/LPA knowledge of what is happening on LPA projects (funding, work progress, inspections, etc)

Local Responsibilities and Expectations for LPA projects l ODOT provides oversight of Local Agencies and is not relieved of its responsibilities for LPA projects’ compliance with Federal regulations l Certification program allow LPAs to use their own procedure, forms, etc., but does not relieve them or ODOT of the responsibility to comply with all Federal and State regulations and laws