Stability and Solvency Through FY14

Stability and Solvency Through FY14
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Following the enactment of MAP-21, there were 10 extensions of SAFETEA-LU with strong bipartisan support. This led to stability and solvency through FY14, maintaining average annual funding at FY12 levels and ensuring the Highway Trust Fund's solvency. Investment and reform under MAP-21 strengthened America's highway and public transit systems, supported economic growth, and established a performance-based federal program. The program structure under MAP-21 included various components like the National Highway Performance Program, Surface Transportation Program, and Highway Safety Improvement Program. $37.7 billion per year was allocated in formula funding for different programs. The National Highway Preservation Program focused on consolidation, expansion, and asset management planning for highways. Overall, MAP-21 brought significant improvements and stability to transportation infrastructure."

  • Stability
  • Solvency
  • MAP-21
  • Transportation
  • Infrastructure

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  1. April 9, 2013 1

  2. Stability and solvency through FY14 MAP-21 enacted following 10 extensions of SAFETEA-LU Passed Congress with strong bipartisan votes Authorized program through FY14 Average annual funding at FY12 levels Extended Highway Trust Fund (HTF) taxes Made transfers to keep HTF solvent through FY14 2

  3. Investment and reform under MAP-21 Strengthened America s highway & public transit systems Created jobs and supported economic growth Supported DOT s aggressive safety agenda Simplified and focused the Federal program Accelerated project delivery and promoted innovation Established a performance-based Federal program 3

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  5. Program structure MAP-21 Prior Law (SAFETEA-LU) National Highway Performance Program (NHPP) Surface Transportation Program (STP) NHS, IM, & Bridge (portion) STP & Bridge (portion) Congestion Mitigation & Air Quality Improvement Program (CMAQ) Highway Safety Improvement Program (HSIP) HSIP (incl. High Risk Rural CMAQ Roads) Railway-Highway Grade Crossing Metropolitan Planning Railway-Highway Grade Crossing (takedown from HSIP) Metropolitan Planning Transportation Alternatives (set-aside from NHPP, STP, HSIP, CMAQ, Metro Planning) TE, Recreational Trails, & Safe Routes to School 5

  6. $37.7 billion/year in formula funding HSIP ($2.2) Surface Transportation Program ($10.0) Railway-Highway Crossing ($0.2) CMAQ ($2.2) TAP ($0.8) Metro Planning ($0.3) National Highway Performance Program ($21.8) Note: Amounts in $ billions; program amounts do not add exactly to total due to rounding 6

  7. National Highway Preservation Program Implementation What s in the law? Consolidation of NHS, IM, Bridge Programs FY13 funds apportioned NHS expanded to include all principal arterials, STRAHNET, intermodal connectors NHPP guidance Requirement for asset management plan Updated NHS maps States set targets for condition, performance Asset mgmt. rule Min. Interstate & bridge condition standards Condition measures 7

  8. Surface Transportation Program Implementation What s in the law? FY13 funds apportioned Continued flexible funding for Fed-aid highways plus safety and bridges on any public road Eligibilities encompass some former programs STP guidance Off-system bridge set-aside 50% of funds suballocated based on population 8

  9. Highway Safety Improvement Program Implementation What s in the law? FY13 funds apportioned +$1B / year vs. prior funding levels States must now regularly update SHSP HSIP guidance Takedown for railway-highway grade crossings High Risk Rural Road guidance No rural road set-aside unless safety worsens DOT to establish measures and States to set targets for fatalities and serious injuries HSIP rule 9 Safety perf. measures Stronger link between HSIP, NHTSA programs

  10. Congestion Mitigation & Air Quality Implementation What s in the law? FY13 funds apportioned Continuation of current program with changes Performance plans for large TMAs CMAQ interim guidance States with PM 2.5 areas must address PM 2.5 Some authority to use $ for transit operations CMAQ perf. measures $ may be used on facilities for electric or natural gas-fueled vehicles Outcomes assessment study Required study assessing CMAQ outcomes 10

  11. Transportation Alternatives Program Implementation What s in the law? FY13 funds apportioned Most eligibilities from former programs (TE, rec trails, Safe Routes to Schools) Rec trails set-aside (unless State opts out) TAP interim guidance $ / yr approx. equal TE under SAFETEA-LU Funding suballocated similar to under STP Competitive grants to eligible entities 11

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  13. Federal Lands & Tribal Transportation Implementation What s in the law? FLTP guidance Federal Lands Transportation Program (new partners that compete for funding) Access Program guidance Federal Lands Access Program (Tripartite committee: FHWA, State, local) Tribal Transportation Program (new distribution formula among Tribes) TTP guidance Tribal High Priority Projects Program (subject to General Fund appropriation) FY13 funds allocated (except Tribal HPPs) 13

  14. TIFIA program Implementation What s in the law? FY13 TIFIA NOFA Lending capacity expanded: up to $17 B in credit assistance over 2 years Applications accepted throughout the year Support for 49% of eligible project costs Master credit agreement for programs of projects, phased single projects 10% set-aside for rural projects; for these projects, increased eligibility, lower interest rates 14

  15. Freight provisions Implementation What s in the law? National Freight Policy and strategic plan Process for establishing NFN National Freight Network (NFN) Interim guidance on State freight committees, plans Freight C&P reports Encouragement of State freight advisory committees and freight plans Guidance on Federal share DOT may increase Federal share for freight projects in some circumstances Notice establishing freight advisory committee 15

  16. Research, Technology Deployment, Training & Education Annual $ $115.0 M Highway Research & Development Technology & Innovation Deployment $62.5 M Training & Education $24.0 M ITS Program $100.0 M University Transportation Centers $72.5 M Bureau of Transportation Statistics $26.0 M SHRP 2 implementation (4% set-aside from SPR) TBD 16

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  18. Performance management Implementation What s in the law? MAP-21 identifies national goal areas Q&As on performance management DOT establishes measures, with input States set targets, then MPOs set targets Performance measure rule State & metro plans describe how program & project selection will help achieve targets States report to DOT on progress toward targets Reports typically lead to corrective actions (not sanctions) 18

  19. Transportation planning Implementation What s in the law? MPOs still at 50K pop.; TMAs still at 200K pop. Q&As on Metro and Statewide Planning Transition to performance-based process MPOs to establish performance targets Planning rule TIP updates at least every 4 years MPO in a TMA selects all non-NHS projects Long range plans report on conditions and performance relative to measures, targets RPOs (if in place) must be consulted 19

  20. Accelerating project delivery Ability for States to assume specific CE designations in FHWA NEPA regulations Use of construction manager/general contractor (CMGC) Accelerated completion of complex projects (4 years) when State requests technical assistance Increased Federal share for some innovative techniques Streamlining of environmental review process Expanded authority for categorical exclusions 20

  21. Rulemaking Rulemaking activities include: Consultation with stakeholders Drafting of the Notice of Proposed Rulemaking (NPRM) Completion of an Economic Assessment that looks at the impact of the proposed rule on States, MPOs and other stakeholders Coordination of rulemakings 90 day minimum comment period required after NPRM is published Publication of final rule in Federal Register including an effective date 21

  22. Implementation is well underway! MAP-21 summary and fact sheets available online Guidance posted online for most programs by the October 1, 2012, deadline NPRMs on CEs for projects in the Operational ROW or receiving limited Federal assistance More guidance and rulemaking activity to come, with related outreach Watch FHWA s MAP-21 web site http://www.fhwa.dot.gov/map21 22

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