Transportation

www.RURALTRANSPORTATION.org

Transportation Spending Bill Approved by Subcommittee

July 2, 2010 -- On July 1, House Appropriations Subcommittee on Transportation and Housing and Urban Development (HUD) approved a $126.4 billion FY2011 Transportation-HUD draft spending bill (unnumbered). The measure’s $67.4 billion in discretionary spending is $500 million below FY2010 levels and $1.3 billion below President Obama’s request. When highway and aviation trust fund monies are factored in, the bill provides a total of $126.4 billion.

The measure provides $79.3 billion for the Department of Transportation (DOT), $3.7 billion more than FY2010 spending and $1.7 billion above the president’s request. Funding for the department includes $16.5 billion for the Federal Aviation Administration, $45.2 billion for the Federal Highway Administration and $11.3 billion for the Federal Transit Administration. All three levels are higher than the president’s request and amounts provided for FY2010.

Within the Federal Aviation Administration (FAA), the bill provides level funding of $3.5 billion for Airport Improvement Program grants (level with the request) and $146 million for Essential Air Service subsidies (in addition to the mandatory $50 million per year).

Within the Federal Highway Administration (FHWA), the draft bill sets an obligation limitation on the federal-aid highway program of $45.2 billion, which is $4.1 billion more than the FY2010 number and $3.9 billion more than the president’s budget request. The draft bill also includes the provision requested by the administration to transfer $200 million from highway and bridge construction formula funding to discretionary planning grants for livable communities. An additional $307 million in livable communities funding will be made available through the Federal Transit Administration, level with the administration’s request.

The bill also provides $400 million for the “TIGER” national infrastructure investments grants program. The president had proposed to terminate the program, which received $600 million in FY2010.

Return to the top

DOT Releases Final TIGER II NOFA

June 3, 2010 -- On June 1, the U.S. Department of Transportation (DOT) released the final Notice of Funding Availability (NOFA) for the TIGER II grant program. The NOFA revises the interim notice released by DOT on April 26. The NOFA revises several portions of the interim notice, including:

Rural Area: the NOFA clarifies that DOT will only consider a material portion of a project to be located in a rural area if the majority of the project is located in a rural area

Matching Funds: the notice clarifies that DOT will consider non-federal funds as a local match for the purposes of the TIGER II program; DOT will not consider funds already expended as a local match; and all areas rural or urban, according to the notice, can increase their competitiveness by demonstrating significant contributions in excess of the required local match

Pre-applications must be submitted by July 16, 2010 and final application must be submitted (through grants.gov) by August 23.

To view the final NOFA, visit www.dot.gov/docs/TIGER_II_Discretionary_Grant_Program_Final_Notice_1_June_2010.pdf.

Return to the top

NADO Joins Groups in Call for Increased Transportation Funding in Climate Change Bill

May 24, 2010 -- On May 18, NADO joined with nearly 30 other national transportation stakeholder organizations, including the Association of Metropolitan Planning Organizations (AMPO) and the American Association of State Highway and Transportation Officials (AASHTO), to urge Sens. John Kerry (D-MA) and Joseph Lieberman (I-CT) to return a higher share of revenue to transportation projects in their recently development American Power Act bill, which is focused on reducing carbon emissions by 17 percent by 2020.

Under the legislation, at least $20 billion would be collected from allowances from gas and diesel producers, but only $6.25 billion would be returned for transportation purposes and $2.5 billion would be returned to the Highway Trust Fund annually.

The letter states that “in 2013, fees from on-road fuel consumption would generate at least $19.5 billion. Instead of returning revenue from these fees to improving the transportation system, the bill diverts at least 77 percent of the funds away from transportation infrastructure investment.”

To view the letter, visit http://nado.org/legaffair/fuelfees.pdf.

Return to the top

GAO Conducting Regional Transportation Study

May 14, 2010 -- The U.S. Government Accountability Office (GAO) is conducting a national survey on regional planning and economic development organizations’ activities in rural transportation planning and has requested to NADO member participation. This study was requested by the House Transportation and Infrastructure Committee as they consider reauthorization of the federal surface transportation programs.

Initially intended to cover only statewide planning issues, GAO staff became interested in rural transportation planning organizations (RPOs) as an effective means to gather input of rural local officials and conducting regional planning tasks under contract to state departments of transportation (DOTs). NADO staff has worked with GAO to provide background information on rural transportation issues and planning practices, and GAO decided to survey all regional planning and economic development organizations and councils of governments to hear from them directly.

This survey provides a valuable opportunity to share information on what works well in rural transportation planning and to offer honest assessments of how the rural transportation planning process should be improved. The input of organizations that do not house an RPO is also important, since they often can provide information on the extent to which rural local officials in the region participate in statewide planning.

GAO’s rural transportation survey results will be written up this summer as an important part of their statewide planning report, and delivered to Congress as they consider the future of the nation’s transportation programs.

Return to the top

DOT Schedules TIGER Application Seminar

May 14, 2010 -- On May 18, the U.S. Department of Transportation (DOT) will conduct a webinar on the process for competing for a DOT discretionary grant. The purpose of the session is to indentify key elements of competitive applications, provide information on developing benefit cost analysis and present information on the TIGER II process. The seminar will begin at 1:00 pm (eastern) and be webcast on the DOT website at www.dot.gov. No advance registration is required to view the webcast. For more information, visit www.dot.gov/recovery/ost/tigerii/tigerprogramseminarinformation.pdf.

Return to the top

FHWA Releases High Risk Rural Roads Report

May 5, 2010 -- The U.S. Department of Transportation’s (DOT) Federal Highway Administration (FHWA) recently released a report analyzing the impact the High Risk Rural Roads Program (HRRRP) has had on reducing fatalities on rural roads, which far outpace those on urban roadways.

HRRRP was authorized under SAFETEA-LU and funded at $90 million annually as a set-aside within the Highway Safety Improvement Program (HSIP). According to FHWA, the overall obligation rate for the program remains low and states have faced challenges in fully implementing the program. The report identifies those challenges as well as lessons learned and noteworthy practices.

According to the report, the most common difficulties states experience in implementing HRRRP include:

  • Collecting crash and exposure data, especially on locally owned roads, to analyze locations for potential improvements
  • Determining criteria for selecting projects, soliciting proposals and choosing which projects to fund
  • Coordinating among federal, state and local transportation partners
  • Working within the context of existing state policies and legislation as well as the limited resources to administer HRRRP

To view the report, visit http://safety.fhwa.dot.gov/local_rural/training/fhwasa10021/.

Return to the top

DOT Releases HIRE Act Funding

May 5, 2010 -- On April 21, the U.S. Department of Transportation (DOT) announced it was releasing $48.8 billion in highway funding through the recently enacted HIRE Act (H.R. 2847). The bill, which was signed into law March 18, extends SAFETEA-LU’s authorization through December 31, 2010 and provides $40.1 billion for highway programs for FY2010.

The bill also restores $8.7 billion to state departments of transportation that was rescinded in 2009 as part of the SAFETEA-LU law.

The injection of resources in conjunction with the projected revenue stream from the gas tax is expected to sustain surface transportation programs at their current (FY2009) level of authorization into FY2013.

Return to the top

DOT Unveils TIGER II Program Funding Notice

May 4, 2010 -- On April 26, the U.S. Department of Transportation (DOT) released an interim notice of funding availability for the National Infrastructure Investment (NII) program, referred to as the “TIGER II” program. TIGER II was appropriated $600 million as part of the FY2010 Consolidated Appropriations Act (P.L. 111-117). The program is similar to the TIGER program that was provided $1.5 billion under American Recovery and Reinvestment Act.

Below is a list of resources on the TIGER II Program:

TIGER II grants will be awarded competitively for capital investments in surface transportation infrastructure. Projects must have a significant impact on the nation, a metropolitan area or region. Eligible projects include, but are not limited to highway, bridge, passenger or freight rail or port infrastructure projects. DOT indicates that the two primary criteria for awarding grants will be long-term outcomes, and job creation and economic stimulus.

Under the program, grants may not be less than $10 million and no greater $200 million. However, no less than $140 million of TIGER II funds are reserved for projects in rural areas. For projects in rural areas the minimum grant size is $1 million.

Projects will require a 20 percent match, although DOT may increase the federal share up to 100 percent for projects located in rural areas. Eligible applicants include state, local and tribal governments (including U.S. territories), transit agencies, port authorities, metropolitan planning organizations and political subdivisions of state or local government. Multi-state or multi-jurisdictional groups are also eligible to apply through a single lead applicant.

In addition, of the $600 million appropriated for the TIGER II program, DOT may use up to $35 million for planning awards. The agency plans to combine these funds with $40 million in separate grant funding from the Department of Housing and Community Development’s (HUD) Community Challenge Grant Program, which is a part of the agency’s Sustainable Communities Initiative (SCI). Eligible activities include the planning, preparation or design of TIGER II eligible projects, including transportation corridors or regional transportation systems. Applications for planning assistance may be made alone of as part of a TIGER II discretionary grant application.

Below is a list of resources on the TIGER II Program:

Return to the top

TIGER Grant Seminars

May 4, 2010 -- The Department of Transportation (DOT) has announced that it is sponsoring two TIGER grant seminars.

The first, entitled “Benefit/Cost Analysis for Transportation Infrastructure: A Practitioner’s Workshop,” will be held on Monday, May 17th in the Oklahoma Room at DOT on 1200 New Jersey Avenue SE. This all-day seminar provides an introduction to benefit/cost analysis for transportation infrastructure. To register, visit http://tti.tamu.edu/conferences/benefit_cost10/.

The second seminar, entitled “Lessons on How to Compete for a DOT Discretionary Grant” will be held on Tuesday, May 18th, 2010 at 1:00 p.m. in DOT’s West Building Atrium. The purpose of this seminar is to identify the key elements of competitive applications, provide information on developing benefit/cost analyses, and present information on the program’s processes. This seminar will also discuss information outlining the next round of discretionary grant awards for the $600 million DOT received in the FY2011 Appropriations process. To register, visit www.dot.gov/recovery/ost/tigerii/tigerprogramseminarinformation.pdf.

There is no registration fee for either seminar; however, online registration for in-person attendance is required by May 12. Both workshops will be webcast through DOT’s homepage.

Return to the top

President Signs FAA Extension Measure

May 4, 2010 -- On April 30, the President signed legislation (H.R. 5147) extending Federal Aviation Administration (FAA) programs through July 3. The House and Senate approved the bill on April 28. This is the 13th extension of FAA programs, which expired at the end of FY2007.

The House passed a three-year reauthorization measure (H.R. 915) in May 2009 and the Senate passed a two-year bill (H.R. 1586) in March 2010. The extension will give the chambers time to conference the bills.

Return to the top

House Moves Highway Extension, Leaves for the Year

December 18, 2009 -- On December 16, the House approved the conference report to the FY2010 Defense Appropriations bill (HR 3266), which provides $636.3 billion for military programs. The measure is the last of 12 annual "must pass" spending bills to be enacted. With passage of the measure, the House is not expected to return until January 2010.

Included in the Defense spending measure is a short-term extension of federal surface transportation programs through February 28, 2010 at the FY2009 level of contract authority. Jobs legislation (HR2847) passed by the House (see above article) contains language extending transportation programs through FY2010. The short-term extension gives the Senate and House time to come to agreement on a longer term extension.

Return to the top

NADO Participates in Transportation Briefing

November 6, 2009 -- On November 6, NADO member Ryan Unger, Senior Program Analyst for SEDA Council of Governments in Lewisburg, PA, participated in a congressional staff briefing focused on rural transportation. Hosted by the Senate Democratic Steering and Outreach Committee, the briefing focused on the unique transportation needs of rural America and how additional transportation investments can help revitalize rural communities and spur economic development. The briefing was designed to bring attention to the current debate over the highway bill reauthorization as well as Livable Communities legislation (S. 1619) that has been introduced by Sen. Chris Dodd (D-CT).

During his presentation, Unger outlined specifics about the rural transportation planning process in Pennsylvania, how the process works in the SEDA COG region and some of the outcomes. Like many states across the country, the Pennsylvania Department of Transportation has entered into a voluntary agreement with the state’s six regional development organizations (known locally as local development districts), to conduct rural transportation planning activities. As part of the partnership, the local development districts (LDDs) conduct transportation studies and make recommendations regarding the planning and implementation of transportation projects.

To help ensure partnerships like the ones in Pennsylvania continue, NADO is currently working with Senator Amy Klobuchar (D-MN) to coordinate the introduction of legislation that will establish and give federal recognition to Regional Transportation Planning Organizations (RTPOs) for areas outside the boundaries of Metropolitan Planning Organizations (MPOs). For information about the legislation and NADO member action needed, go to www.nado.org/uploaded_files/rpoaction.pdf.

In addition, Unger highlighted a unique Land Use, Transportation and Economic Development (LUTED) program being implemented across the state of Pennsylvania. THE LUTED process, which features a prominent role for LDDs and RPOs, encourages state and regional agencies to work together to identify priority projects and to efficiently and effectively link land use, transportation and economic development decision-making at a regional level.

The briefing, which also featured speakers from the National Association of Counties (NACo) and Transportation for America, was attended by staffers representing the following Senators and Senate Committees:

  • Sen. Daniel Akaka (D-HI)
  • Sen. Max Baucus (D-MT)
  • Sen. Mark Begich (D-AK)
  • Sen. Michael Bennet (D-CO)
  • Sen. Roland Burris (D-IL)
  • Sen. Ben Cardin (D-MD)
  • Sen. Robert Casey (D-PA)
  • Sen. Kent Conrad (D-ND)
  • Sen. Kirsten Gillibrand (D-NY)
  • Sen. Tom Harkin (D-IA)
  • Sen. Tim Johnson (D-SD)
  • Sen. John Kerry (D-MA)
  • Sen. Amy Klobuchar (D-MN)
  • Sen. Herb Kohl (D-WI)
  • Sen. Patrick Leahy (D-VT)
  • Sen. Blanche Lincoln (D-AR)
  • Sen. Jeff Merkley (D-OR)
  • Sen. Ben Nelson (D-NE)
  • Sen. Mark Pryor (D-AR)
  • Sen. Debbie Stabenow (D-MI)
  • Sen. Jon Tester (D-MT)
  • Sen. Mark Udall (D-CO)
  • Sen. Tom Udall (D-NM)
  • Sen. Mark Warner (D-VA)
  • Sen. Jim Webb (D-VA)
  • Sen. Ron Wyden (D-OR)
  • Senate Committee on Agriculture, Nutrition and Forestry
  • Senate Committee on Banking, Housing and Urban Affairs
  • Senate Committee on Commerce, Science and Transportation

NADO members with Senators represented at the briefing are strongly encouraged to contact those senators and urge them to co-sponsor the Klobuchar Regional Transportation Planning bill (not yet introduced) as well as the Dodd Livable Communities legislation (S.1619). For more information, contact NADO Legislative Director Jason Boehlert at 202.624.8590 or jboehlert@nado.org.

Return to the top

Senate Eyes Six Month Highway Extension

October 27, 2009 -- After attempts to move an 18-month extension of surface transportation programs were unsuccessful, Senate authorizers are in the process of developing a shorter six-month extension measure.

Senate Environment and Public Works (EPW) Committee Chair Barbara Boxer (D-CA) and Ranking Minority Member James Inhofe (R-OK) failed to persuade Senators to adopt a long-term extension supported by the administration and could possibly have a six-month extension ready for floor consideration the week of October 26.

Hampering their efforts was Senate EPW Transportation and Infrastructure Subcommittee Ranking Member George Voinovich (R-OK), who had threatened to filibuster any measure extending transportation programs longer than six months.

If adopted by the Senate, the measure would have to be reconciled by a three month extension (HR 3617) adopted by the House of Representatives on September 23. House Transportation and Infrastructure Committee Chairman James Oberstar (D-MN) has opposed any extension beyond the end of the year and has continuously urged Congress to pass a multi-year reauthorization bill as soon as possible.

Transportation programs are currently being sustained by a one-month extension that expires October 31.

Return to the top

Senate Adopts Transportation Spending Bill

September 17, 2009 -- On September 17, the Senate adopted its $122 billion FY2010 Transportation-Housing and Urban Development Appropriations bill (HR 3288). The House adopted its $123.1 billion version in late July. The bills now awaits conference committee action.

The House bill provides $75.7 billion in discretionary budget resources for the Department of Transportation (DOT), roughly $5 billion over current funding and $1.6 billion over the administration’s request. The Senate measure provides $76.2 billion.

Both the House appropriations bill and the administration’s budget request provide $41.1 billion for Federal-Aid Highways. The figure serves as a placeholder until Congress passes a long-term reauthorization bill or legislation providing solvency to the HTF. The Senate bill allocates $42.5 billion for highways.

For transit programs, the House bill provides a total of $10.4 billion in total budgetary resources, an increase of $252 million over current funding and $148 million above the budget request. The Senate measure provides nearly $11 billion.

The Formula and Bus Grant account is provided an obligation limit of $8.3 billion in both House and Senate bills, an increase of $82.6 million over current funding. This is the same amount as requested by the administration.

While the House and administration’s funding for highway and transit programs are equal, each score the request differently. The administration funding request contains a mix of general fund appropriations and obligation authority derived from the HTF. The House bill’s funding is derived entirely from the HTF and assumes an infusion of cash in the HTF from the General Fund. The Senate bill is structured in the same fashion as the House but at different funding levels.

The Senate bill contains $1.1 billion for a new National Infrastructure Investment (NII) grant program, which would be awarded at the discretion of the DOT Secretary. Program eligibility and structure would be the same as the TIGER program funded in the American Recovery and Reinvestment Act (HR 1). The minimum grant size would be $10 million, and no less than $250 million would be reserved for rural areas.

Within the Federal Aviation Administration (FAA), the House bill provides $3.5 billion for the Airport Improvement Program (AIP), equal to current funding, the administration’s request and the Senate bill.

The Essential Air Service (EAS) program receives a total of $175 million in the House measure, $52 million over current funding and level with the President’s budget request and the Senate measure. Both bills extend provisions allowing DOT to transfer funds from other accounts to the EAS program if it experiences a shortfall. In addition, each prohibits the agency from instituting a local cost share component to the program.

The House supports the administration’s request for no funding for the Small Community Air Service Development program, currently funded at $8 million. The Senate maintains current funding.

While neither measure provides funding for the administration’s proposed National Infrastructure Bank (NIB), the House allows up to $2 billion of the $4 billion provided for capital assistance for high speed rail corridors and intercity passenger rail service to be transferred to the NIB if it is authorized by September 30, 2010.

Return to the top

NADO Joins Opposition to PL Funding Rescissions

July 31, 2009 -- On July 23, NADO joined with a group of national organizations urging Federal Highway Administration Victor Mendez to avoid rescinding metropolitan planning organization (MPO) planning funds as part of the $8.7 billion rescission of surface transportation funds required in SAFETEA-LU legislation at the end of FY2009. The letter was also signed by the American Planning Association, Association of Commuter Transportation, Association of Metropolitan Planning Organizations, National Association of City Transportation Officials and the National Association of Regional Councils. To view the letter, visit www.nado.org/legaffair/pl.pdf.

Return to the top

House and Senate Approve Highway Trust Fund Bailout

July 31, 2009 -- On July 29, the House of Representatives approved legislation (HR 3357) transferring $7 billion from the U.S. Treasury’s General Fund to the Highway Trust Fund (HTF) to ensure the highway program remains solvent through the end of FY2009. The Senate passed the measure one day later on July 30. The President is expected to sign the bill.

During Senate debate of the bill, Sen. Christopher Bond (R-MO) offered an amendment to block an $8.7 billion rescission from the highway fund otherwise set to take effect when the current law expires on September 30. Senate Environment and Public Works Chairwoman Barbara Boxer (D-CA) agreed with Bond that the rescission needs to be stopped, but said the bill before the Senate was not the place to fix the problem. She promised to include Bond’s language in an extension of the current surface transportation law expected on the Senate floor in September. The Bond amendment was rejected, 34-63.

House and Senate authorizers are still at odds over an administration plan to extend the current surface transportation program for 18 months. The issue is expected to come before both chambers in September when the resources from the HTF bailout will start running out.

On July 20, Senate Finance Committee Chairman Max Baucus (D-MT) introduced legislation (S. 1474) that would transfer roughly $27 billion into the Highway Trust Fund (HTF) and would sustain the existing transportation program through the life of an 18-month extension. Senate Democratic leaders have been supportive of the administration’s call for an extension of the current program.

House Transportation and Infrastructure Committee Chairman James Oberstar (D-MN) indicated he would only support a smaller HTF bailout bill to maintain pressure on the administration and Senate to enact a multi-year reauthorization bill as soon as possible.

Federal Highway Administrator Victor Mendez recently indicated that within the next week reimbursements to state departments of transportation could go from daily to as little as twice a month if an infusion of funds isn’t provided to the HTF.

For additional information, contact NADO Legislative Director Jason Boehlert at 202.624.8590 or jboehlert@nado.org.

Return to the top

House Approves Transportation Spending Bill

July 31, 2009 -- On July 23, the House of Representatives passed a $123.1 billion Transportation-HUD spending bill (H.R. 3288). The measure is $53 billion under the administration’s request and $14.3 billion over current spending. The Senate Transportation-HUD Appropriations Subcommittee marked up its $122 billion version of the legislation (currently unnumbered) on July 29.

This is the tenth of 12 spending bills the House has passed to date. Only the Defense (currently unnumbered) and the Labor-HHS-Education (H.R. 3293) remain uncompleted in the House. The chamber is still on track to complete work on 12 of the annual appropriations measures by the beginning of the month-long August recess. The Senate has completed work on the Homeland Security (S. 1298) and Legislative Branch (S. 1294) appropriations bills.

The bill provides $21.5 billion in discretionary spending for transportation programs, an increase of roughly $4.5 billion over current spending and $14.6 billion under the administration’s request.

Similar to the President’s budget request, the bill notes the situation within the Highway Trust Fund (HTF), which is expected to run out of money sometime in the next month.

Since the present balances and projected revenues of the HTF will not support the current spending level, the budget request provided baseline levels of funding that would be supported primarily through an appropriation from the Treasury Department’s General Fund.

Both the House Bill and the administration provide $41.1 billion for Federal-Aid Highways. The figure serves as a placeholder until Congress is able to pass a long-term reauthorization bill or legislation providing solvency to the HTF. The Senate bill allocates $43.5 billion for highways.

For transit programs, the bill provides a total of $10.4 billion in total budgetary resources, an increase of $252 million over current funding and $148 million above the budget request. Similar to the highway program, the measure provides a baseline obligation level for transit programs.

The Formula and Bus Grant account is provided an obligation limit of $8.3 billion, an increase of $82.6 million over current funding. This is the same amount as requested by the administration.

While the House and administration’s funding for highway and transit programs are equal, the way each scores the request is different. The administration funding request contains a mix of general fund appropriations and obligation authority derived from the HTF. The House bill’s funding is derived entirely from the HTF and assumes an infusion of cash in the HTF from the General Fund.

Within the Federal Aviation Administration (FAA), the bill provides $3.5 billion for the Airport Improvement Program (AIP), equal to current funding, the administration’s request and the Senate bill.

The Essential Air Service (EAS) program receives a total of $175 million, $52 million over current funding and level with the President’s budget request. The bill extends current provisions allowing the DOT Secretary to transfer funds from other accounts to the EAS program if it experiences a shortfall. In addition, the measure prohibits the agency from instituting a local cost share component to the program.

The bill supports the administration’s request for no funding for the Small Community Air Service Development program currently funded at $8 million.

While no funding is directly provided for the administration’s proposed National Infrastructure Bank (NIB), up to $2 billion of the $4 billion provided for capital assistance for high speed rail corridors and intercity passenger rail service can be transferred to the NIB if it is authorized by September 30, 2010.

For additional information, contact NADO Legislative Director Jason Boehlert at 202.624.8590 or jboehlert@nado.org.

Return to the top

Administration Unveils Highway Extension Plan

July 13, 2009 -- On July 1, the U.S. Department of Transportation unveiled its plan for a “Stage 1 Reauthorization” of federal surface transportation programs.

The reauthorization proposal would transfer $20 billion for the U.S. Treasury’s General Fund to the Highway Trust Fund, which would maintain its solvency through March 31, 2011. Of these funds, $18 billion would be directed to the highway account and $2 billion to the mass transit account. This would effectively extend authorization of the current highway and transit programs for 18 months.

Last month, the U.S. Department of Transportation sent a letter to state departments of transportation advising them of an impending cash shortfall in the Highway Trust Fund’s Highway Account and that the agency could begin rationing payments to states as early as August.

The situation is similar to one that arose last September when Congress was forced to transfer $8 billion from the U.S. Treasury’s General Fund to maintain the Highway Trust Fund’s solvency.

Funding for several reforms designed to “improve investment decisions at the federal, state and local levels,” are expected to be included in the measure extending surface transportation programs including:

  • $300 million to improve state and MPO project evaluation capacity to bolster capacity for data collection and analysis
  • $10 million to assist states and local governments build informational and analytic capacity

In addition, the administration is seeking roughly $7 billion over two years to start up and fund a National Infrastructure Bank (NIB). The NIB would be tasked with funding a broad variety of infrastructure projects. While initially focused on transportation-related projects, other forms of infrastructure would also be eligible to receive funds.

According to the administration’s outline, the minimum funding threshold for projects would be $25 million. States and local governments would be eligible to apply directly for assistance with priority given to projects that cross jurisdictional boundaries.

House Transportation and Infrastructure Chairman James Oberstar (D-MN) has recently indicated that he will begin preparing legislation to transfer nearly $7.3 billion from the General Fund to the HTF. This is expected to give state departments of transportation about a $4 billion cushion over current federal commitments through September.

Oberstar had initially planned to hold a full committee markup of his Surface Transportation Authorization Act later this month. The House Ways and Means Committee, which has jurisdiction over the revenue portion of the surface transportation bill, is embroiled in healthcare reform. Additional House legislative action on a multi-year transportation reauthorization bill is not likely until September, at the earliest.

To access the administration’s “stage one reauthorization” proposal, go to www.nado.org/legaffair/stage1.pdf. For an outline of the NIB, visit www.nado.org/legaffair/bank.pdf.

For additional information, contact NADO Legislative Director Jason Boehlert at 202.624.8590 or jboehlert@nado.org.

Return to the top

Panel Approves Draft Transportation Legislation, Extension of Current Law Likely

July 6, 2009 -- On June 24, the House Transportation and Infrastructure Subcommittee on Highways and Transit marked up legislation (currently unnumbered) reauthorizing federal surface transportation programs. The measure, which is expected to total $450 billion over six years, does not contain authorization levels or a revenue generating mechanism.

The measure is not expected to receive consideration from the full committee before the third week of July. Prior to that, House Transportation and Infrastructure Committee Chairman James Oberstar (D-MN) must reach an agreement with Ways and Means Committee Chairman Charles Rangel (D-NY) on a financing mechanism. The committee has jurisdiction over the portion of the bill related to revenue generation and taxation.

The Ways and Means Committee has been preoccupied with issues related to healthcare reform. Further complicating prospects for further action on the bill is House democratic leadership support of an administration proposal to extend the current SAFETEA-LU legislation for 18 months.

With the extension, the administration plan is expected to include a mechanism to replenish the soon-to-be-depleted Highway Trust Fund (HTF), which is expected to run a deficit of $5 billion-$7 billion in FY2009. It is anticipated that this will most likely consist of a transfer for the U.S. Treasury’s General Fund.

Senate Environment and Public Works Committee Chair Barbara Boxer (D-CA) has also indicated her support for an extension of the current program, making enactment of a multi-year reauthorization bill this year unlikely.

Along with provisions that consolidate more than 75 existing programs into four core program areas, the Oberstar bill establishes a new Metropolitan Mobility and Access program to fund congestion relief and mobility enhancement programs in areas with populations greater than 500,000.

The bill revises statewide and metropolitan planning programs, including: recognition of existing rural planning organizations; allows the U.S. Department of Transportation to review and comment on rural local official consultation plans; and requires states to coordinate with RPOs in the development of state transportation plans.

NADO staff has developed a PowerPoint presentation detailing major provisions of the Surface Transportation Authorization Act. To view the presentation, go to www.nado.org/legaffair/trans09.pdf

To access a copy of the legislation, visit www.nado.org/legaffair/oberstar.pdf.

For an executive summary of the bill, visit www.nado.org/legaffair/executive.pdf. To view a section-by-section summary, visit www.nado.org/legaffair/compiled.pdf.

Return to the top

House Transportation Chairman Unveils SAFETEA-LU Blueprint

June 19, 2009 -- On June 18, House Transportation and Infrastructure Committee Chairman James Oberstar (D-MN) unveiled his blueprint for the federal surface transportation reauthorization bill (SAFETEA-LU)

The Surface Transportation Assistance Act (STAA) sets forth a plan to condense all of the existing formula programs into four core programs: Critical Asset Investment, Highway Safety Improvement, Surface Transportation, and Congestion Mitigation and Air Quality Improvement.

In addition, Oberstar plan will establish:

  • Metropolitan Mobility Access program for the nation's 50 largest metropolitan regions (including assistance through a National Infrastructure Bank); goal is to provide each major metro region with $1 billion in contract authority over six-year period
  • Projects of National Significance account
  • Freight Improvement funding through state formula
  • Office of Livability within US DOT to advance environmentally sustainable modes of transportation

NADO has obtained three documents released by the committee outlining specifics of the plan:

A more in-depth analysis of Chairman Oberstar's proposal will be available within the week. Contact NADO Legislative Director Jason Boehlert at 202.624.8590 or jboehlert@nado.org for additional information or questions.

Return to the top

Rural Transportation Planning Bill Introduced

June 15, 2009 -- On June 9, Rep. Tim Walz (D-MN) introduced legislation (HR 2782) to establish, fund and outline the functions of Regional Transportation Planning Organizations (RTPOs) for areas outside the boundaries of Metropolitan Planning Organizations (MPOs).

Bill co-sponsors include Reps. Leonard Boswell (D-IA), Rick Boucher (D-VA), Chris Carney (D-PA), Henry Cuellar (D-TX), Ruben Hinojosa (D-TX), Tim Holden (D-PA), Paul Kanjorski (D-PA), Ann Kirkpatrick (D-AZ), Mike McIntyre (D-NC), Mike Michaud (D-ME), Walter Minnick (D-ID), Solomon Ortiz (D-TX), Tom Perriello (D-VA), Mike Ross (D-AR), Heath Shuler (D-NC), Zach Space (D-OH), Bennie Thompson (D-MS), Glenn Thompson (D-PA) and Peter Welch (D-VT).

The RTPO bill would help those states with existing, voluntary RTPO-type relationships between state DOTs and regional councils, as well as regional councils and local governments with very limited dialogue/consultation with state DOTs. As many rural areas learned with the federal stimulus process for transportation funding, the statewide transportation planning processes is the gateway for accessing federal funds. In addition, regional approaches to transportation planning are becoming more important, especially with the increased focus at the federal level of promoting better coordination and integration of economic development, housing and transportation plans at the statewide, regional and local levels.

The legislative proposal is designed as an amendment to the SAFETEA-LU highway and transit act, which is set to expire on September 30, 2009. The goal is to secure as many House co-sponsors as possible for potential inclusion in the SAFETEA-LU reauthorization bill.

Regional development organizations are asked to continue contacting their House members to urge them to co-sponsor the legislation. If your House members wish to co-sponsor, please have them contact Chris Schmitter, Legislative Director for Congressman Tim Walz (D-MN) at 202.225.2472 or chris.schmitter@mail.house.gov. Please contact NADO Legislative Director Jason Boehlert at 202.624.8590 or jboehlert@nado.org for additional information or questions. To view the bill, visit, http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=111_cong_bills&docid=f:h2782ih.txt.pdf.

Return to the top

Highway Trust Fund to Run Out by Summer

June 5, 2009 -- On June 2, during a confirmation hearing for Federal Highway Administrator nominee Victor Mendez, Senate Environment and Public Works Committee Chair Barbara Boxer (D-CA) indicated that the federal Highway Trust Fund (HTF) will run out of money this summer and require an additional $5 billion to $7 billion to remain solvent.

The White House has indicated that an additional $8 billion to $10 billion will be needed to finance projects already authorized through the end of FY2010.

Congress approved a transfer of $8 billion from general funds last September and would have to approve the transfer of any additional funds to sustain the HTF, while Congressional leaders complete surface transportation reauthorization legislation.

Options for replenishing the HTF in reauthorization legislation include raising the 18.4 cents-per-gallon tax on gasoline, which has not changed since 1993. Both the National Surface Transportation Infrastructure Financing Commission and House Transportation and Infrastructure Committee Chairman James Oberstar (D-MN) support recommendations to raise the tax. The administration has indicated their opposition to an increase in the fuel tax given the current economic crisis.

Chairman Oberstar is expected to unveil a legislative “blueprint” for reauthorization on June 9. The outline will be incomplete, and according to committee staff, only about half the bill has been drafted. Missing from the draft will be the tax/revenue piece, which falls under the jurisdiction of the House Ways and Means Committee. The panel is expected to begin drafting this component in the coming weeks.

In May, Oberstar did release a rough sketch of the proposed structure and outline for the bill, which can be viewed at www.nado.org/legaffair/plan.pdf. For additional information, contact NADO Legislative Director Jason Boehlert at 202.624.8590 or jboehlert@nado.org.

Return to the top

NADO, AMPO and AASHTO Raise Issue over Planning Changes

June 5, 2009 -- On June 1, in a joint-letter to leaders of the House Energy and Commerce and Transportation and Infrastructure Committees, NADO, the American Association of State Highway and Transportation Officials (AASHTO) and the Association of Metropolitan Planning Organizations (AMPO) voiced concern over provisions contained in the American Clean Energy and Security Act (ACESA; HR 2454) that would significantly impact statewide and metropolitan transportation planning guidelines.

The cap-and-trade legislation, which was adopted by the Energy and Commerce Committee on May 21, establishes a cap on emissions of greenhouse gases (GHG) and creates a market-based system for trading pollution allowances. Experts estimate that the federal government could generate more than $600 billion in revenue over the next decade through the sale of pollution allowances/licenses.

The measure now faces scrutiny from eight other committees which have joint jurisdiction over various pieces of the bill, including the Transportation and Infrastructure Committee.

The bill potentially establishes a set of parallel transportation planning requirements within the Clean Air Act (CAA) and requires states and MPOs to submit goals for reduction of transportation-related GHG emission as part of state and metropolitan transportation improvement program (TIP) documents.

The bill gives the Environmental Protection Agency (EPA) Administrator the authority to ensure transportation plans are consistent with the air quality conformity process. EPA would also certify that states are meeting their GHG emission reduction goals. Failure to submit a plan would result in “highway sanctions” and prevent states or metropolitan areas from obligating federal transportation dollars.

In the letter, NADO, AMPO and AASHTO requested that any changes to transportation planning law be done solely through legislation reauthorizing federal surface transportation programs.

It is unclear if and when the Transportation and Infrastructure Committee will take up provisions of the bill that fall under its jurisdiction, which include the planning revisions. Committee staff has indicated that Chairman James Oberstar’s (D-MN) first priority is completion of the surface transportation reauthorization legislation, but may consider waiving his jurisdiction if changes to the bill can be negotiated with Energy and Commerce Committee Chairman Henry Waxman (D-CA) and Speaker of the House Nancy Pelosi (D-CA). Both the Speaker and President Obama have indicated that enactment of global climate change legislation during this session is a top priority.

To view the letter, visit www.nado.org/legaffair/climate.pdf. For more information, contact NADO Legislative Director Jason Boehlert at 202.624.8590 or jboehlert@nado.org.

Return to the top

House Members Push for National RTPO Network

June 5, 2009 -- On May 27, 17 House Representatives endorsed a letter to leaders of the House Transportation and Infrastructure Committee urging that legislation currently being drafted by Rep. Tim Walz (D-MN) be included in larger legislation being developed to reauthorize federal surface transportation programs. The purpose of Rep. Walz's draft legislation is to establish a national network of regional transportation planning organizations (RTPOs) to build planning and project prioritization capacity for officials outside of metropolitan areas.

The bill would “build on the existing networks of regional transportation planning organizations (RTPOs) that more than 25 states have established, ensuring rural elected officials have meaningful opportunities to provide input in the statewide transportation planning process.” Regional development organizations are asked to continue contacting their House members to urge them to co-sponsor the bill.

To view the letter, visit www.nado.org/legaffair/rtpoletter.pdf. To access the draft RTPO legislative proposal, visit www.nado.org/legaffair/issupdate/rtpobill.pdf.

Return to the top

Budget Request Outlines Possible DOT Funding

May 20, 2009 -- The budget requests $73.3 billion in total budget authority for the Department of Transportation, an increase of nearly $1.8 billion over current spending.

The administration is developing a comprehensive approach for the SAFETEA-LU surface transportation reauthorization. The budget request contains no specific policy recommendations for programs subject to reauthorization, including highway and transit programs, and it only displays baseline funding levels for all surface transportation programs.

Federal surface transportation legislation is scheduled to expire at the end of FY2009. The budget request indicates that the administration is developing a reauthorization principles and the baseline funding amounts for surface transportation programs will change based on the passage of final legislation.

Within the Federal Highway Administration (FHWA), the budget contains $41.8 billion in total funding, roughly $200 million over current spending. For Federal-Aid Highways, the budget contains a transfer of $36.1 billion from the Treasury's General Fund. The funding serves only as a baseline level of support if a multi-year reauthorization bill is not enacted, or if other action is not taken to shore up the Highway Trust Fund (HTF), by the end of FY2009. An additional $5 billion in obligation authority is available through the HTF.

The Highway Account of the HTF is expected to need an extra $4 billion for FY2009 and at least another $10-11 billion in FY2010 to keep the program solvent. If action is not taken to increase revenue flowing into the HTF through passage of reauthorization legislation or transfer money from the General Fund, Congress will need to cut highway spending or find alternative revenue options.

For the Federal Transit Administration (FTA), the budget proposal contains $10.3 billion in total funding, an increase of $104 million.

The budget contains $8.3 billion for Formula and Bus Grants, an increase of $83 million, and $1.8 billion for Capital Investment Grants, an increase of $18 million. Of this amount, $3.3 billion is derived from a transfer from the General Fund and $5 billion in obligation authority from the Mass Transit Account of the HTF.

Similar to Federal-Aid Highway funding, the budget request for FTA programs represents a baseline funding request that is subject to change based on the administration's reauthorization proposal and passage of surface transportation legislation.

For the Federal Aviation Administration (FAA), the budget requests a total of $15.9 billion, an increase of $486 million over the current funding level. Spending requested for specific FAA programs includes:

  • Airport Improvement Program (AIP):$3.5 billion, level with current spending
  • Essential Air Service (EAS) Program:$175 million, an increase of $52 million($50 million in mandatory funding coupled with $125 million in discretionary appropriations)
  • Small Community Air Service Program:No funding is requested, currently receives $8 million under FY2009 enacted law

For the Federal Railroad Administration, the budget contains $2.7 billion in discretionary spending, an increase of more than $900 million. The request includes $1 billion for a new Capital Assistance for High Speed Rail Corridors and Intercity Passenger Rail Service program to support capital investment grants for intercity passenger rail service.

Amtrak receives $1.5 billion, including $572 million for capital costs and $930 million for capital and debt services grants.

Return to the top

House Committee Agrees on Transportation Principles

May 8, 2009 -- On May 1, it was reported that leaders of the House Transportation and Infrastructure Committee have agreed on a basic set of principles for a six-year surface transportation bill. Full committee chairman James Oberstar (D-MN), ranking member John Mica (R-FL), Highways and Transit Subcommittee chairman Peter DeFazio (D-OR) and ranking member John Duncan (R-TN), have indicated that there is agreement on the “major parameters” of the legislation.

Oberstar and Mica have indicated that they are looking to craft a bill with around $450 billion to $500 billion in funding and reduce the number of program categories from 108 to four major formula programs with additional smaller formula programs to follow.

House Committee Agrees on Transportation Principles On May 1, it was reported that leaders of the House Transportation and Infrastructure Committee have agreed on a basic set of principles for a six-year surface transportation bill. Full committee chairman James Oberstar (D-MN), ranking member John Mica (R-FL), Highways and Transit Subcommittee chairman Peter DeFazio (D-OR) and ranking member John Duncan (R-TN), have indicated that there is agreement on the “major parameters” of the legislation. Oberstar and Mica have indicated that they are looking to craft a bill with around $450 billion to $500 billion in funding and reduce the number of program categories from 108 to four major formula programs with additional smaller formula programs to follow. According to an outline developed by Oberstar, the four major formula programs could potentially consist of:

  • Critical Asset Preservation: will contain funding Interstate Maintenance, Interstate Highway System and the Highway and Bridge programs
  • Highway Safety Improvement Program (HSIP): existing core program created in SAFETEA-LU bill
  • Surface Transportation Program (STP): based on existing STP formula with 10 percent of funds set aside for enhancements and funds sub-allocated to metropolitan areas with a population of at least 200,000
  • Congestion Mitigation and Air Quality (CMAQ) program: existing program structure maintained

Beyond these major core programs, the plan being developed by Oberstar envisions several smaller formula programs. Safe Routes to Schools and Recreational Trails would be maintained in their current form. Ferry Boats, which is currently a discretionary program with large state set-asides would become a new formula program. Although details are limited, Freight Transportation would be a new formula program.

Oberstar’s plan also develops new discretionary programs. The most significant of which is a Metropolitan Mobility program that would potentially be distributed to the 68 largest metropolitan areas (those with populations of roughly 750,000 and above) to reduce congestion. Areas would be required to develop a six-year plan for improving traffic congestion and would require accountability if communities did not meet their congestion reduction goals. Within this program, up to $1 billion would potentially be dedicated to innovative financing mechanisms.

To view an outline of the plan developed by Oberstar, visit www.nado.org/legaffair/plan.pdf. For more information, contact NADO Legislative Director Jason Boehlert at 202.624.8590 or jboehlert@nado.org.

Return to the top

Short-Term FAA Extension Adopted

March 18, 2009 -- On March 18, the House and Senate adopted legislation (HR 1512) extending programs of the Federal Aviation Administration (FAA) through September 30. The agency has been operating under a series of short-term extensions since October 2007 when its underlying authorization expired.

The House Transportation and Infrastructure Committee adopted legislation (HR 915) on March 5 reauthorizing the agency through 2012. The extension gives House and Senate authorizers time to complete work on a multi-year reauthorization bill who have been deadlocked over how to restructure taxes that fund the air traffic control system.

The administration has proposed elimination of $7.2 billion in aviation excise taxes and replacing them with user fees.

Return to the top

Transit Stimulus Funds Available

March 13, 2009 -- On March 5, U.S. Transportation Secretary Ray LaHood announced the availability of $8.4 billion in transit funds for transit capital assistance, fixed guide way infrastructure investment and capital investment grants. For a state-by-state breakdown of transit funding allocation, visit http://www.recovery.gov/?q=node/202 or visit the Department of Transportation economic recovery Web site at www.dot.gov/recovery/. To view the Federal Register notice, visit http://edocket.access.gpo.gov/2009/pdf/E9-4745.pdf.

Return to the top

Back to Issue Updates list