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INTRODUCTION TO FEDERAL HIGHWAY FUNDING AND ELIGIBILITY Mike Morrow Field Operations Engineer (503) 587-4708

Mike Morrow (Field Operations Engineer) 503-5874708 INTRODUCTION TO FEDERAL HIGHWAY FUNDING AND ELIGIBILITY Mike Morrow Field Operations Engineer (503) 587-4708 EXPECTATIONS How the FAHP is financed Legislation Apportionment formulas Major funding requirements

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INTRODUCTION TO FEDERAL HIGHWAY FUNDING AND ELIGIBILITY Mike Morrow Field Operations Engineer (503) 587-4708

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  1. Mike Morrow (Field Operations Engineer) 503-5874708 INTRODUCTION TO FEDERAL HIGHWAY FUNDING AND ELIGIBILITY Mike Morrow Field Operations Engineer (503) 587-4708

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

  3. 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

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

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

  6. Safe, Accountable, Flexible, Effient Transportation Equity Act –A Legacy for Users (SAFETEA-LU) • Highways, highway safety, transit • 5-year legislation - 2005-2009 • Signed into law August 10, 2005 (P. L. 109-59) • $244 billion authorized over 5 years • (12% increase over TEA-21) • Highways - $193 billion • Transit - $51 billion

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

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 Distributed by formula specified in law Distributed on October 1 Withdrawn only by law All eligible States are recipients No method specified in law Distributed throughout year Can be withdrawn by administrative action Only some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

  9. Minimum Guarantee Guaranteed Return on Contributions 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% > = * Includes High Priority Projects

  10. 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

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

  12. Reimbursement Contractor does work LPA pays Contractor A c t i o n s State pays contractor State pays LPA State submits State submits voucher to FHWA voucher to FHWA FHWA sends FHWA sends to Treasury to Treasury Treasurer wires Treasurer wires money to State money to State Time

  13. Rate of Liquidating Cash How fast obligated funds become expended 41 27 % by Year 16 5 3 3 2 2 1 Number of years until expenditure

  14. Obligations • 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

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

  16. 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

  17. Highway Trust FundSAFETEA-LU of 2005 • Extended authorization for FY2005-2009 • Extended HTF through FY 2011 • (Woops – Missed the target here a little bit ) • Congress added six billion with hopes of getting through 2009

  18. Federal Gasoline Tax 18.4 cents 0.1 cent L.U.S.T. Trust Fund 15.44 cents 2.86 cents Highway Account Mass Transit Account Effective October 1, 1997 In cents per gallon

  19. Federal Diesel Tax 24.4 cents 0.1 cent L.U.S.T. Trust Fund 21.44 cents 2.86 cents Highway Account Mass Transit Account Effective October 1, 1997 In cents per gallon

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

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

  22. Authorizations 2005 - 2009 Highway, Highway Safety, and Rail Programs Minimum Guarantee $37.8 B Highway Safety - $5.0 B Research - $2.2 B Other/Admin - $8.1 B High Priority Projects - $14.8 B Fed Lands - $4.3 B IM - $25.2 B Appalachia - $2.3 B Total = $193 B CMAQ - $8.6 B NHS - $30.5 B STP - $32.5 B Bridge - $21.6 B

  23. 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

  24. 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

  25. 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)

  26. Interstate MaintenanceState Distributions • 33-1/3%: Interstate lane miles (%) • 33-1/3%: VMT on Interstate (%) • 33-1/3%: HTF contributions (%) attributable to commercial vehicles

  27. National Highway SystemTypes of Work Eligible • Construction and 4R’s (NHS) • Operational Improvements (NHS) • Safety Improvements (NHS) • Transportation Planning • (23 USC 134 &135)

  28. National Highway SystemTypes of Work Eligible • Highway research and technology transfer • Chapter 5 of Title 23, USC • Traffic monitoring, management and control facilities/programs, ITS, • Carpool, vanpool,

  29. State DistributionNational 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)

  30. NHS Map for Oregon • http://www.fhwa.dot.gov/planning/nhs/maps/or/or_oregon.pdf

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

  32. Surface Transportation ProgramTypes 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%)

  33. 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)

  34. 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).

  35. 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

  36. 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)

  37. 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.

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

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

  40. Discretionary • Division office authorization • Apply (subsequent FHWA approval)

  41. 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

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

  43. 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

  44. Discretionary • SCENIC BYWAYS • National/State Scenic Byways • All-American Roads

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

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

  47. 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!

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

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

  50. Local Responsibilities and Expectations for LPA projects • ODOT provides oversight of Local Agencies and is not relieved of its responsibilities for LPA projects’ compliance with Federal regulations • 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

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