[Federal Register Volume 65, Number 36 (Wednesday, February 23, 2000)]
[Notices]
[Pages 9040-9053]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-4224]
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DEPARTMENT OF TRANSPORTATION
Federal Highway Administration
Federal Transit Administration
[FHWA Docket No. FHWA-99-4317]
Transportation Equity Act for the 21st Century; Final Guidance
for the Congestion Mitigation and Air Quality Improvement Program
AGENCIES: Federal Highway Administration (FHWA), Federal Transit
Administration (FTA), DOT.
ACTION: Notice; issuance of final guidance.
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SUMMARY: This document publishes final guidance on section 1110 of the
Transportation Equity Act for the 21st Century (TEA-21) for the
congestion mitigation and air quality improvement program (CMAQ). This
final guidance replaces all earlier CMAQ guidance documents and
provides information on: (1) CMAQ authorization levels and
apportionment factors; (2) the new flexibility and transferability
provisions; (3) geographic area eligibility for CMAQ funds and the
impacts of new National Ambient Air Quality Standards on eligibility;
(4) project eligibility; (5) analytical requirements; and (6) Federal,
State, and local agency roles and responsibilities in the
administration of the program.
DATES: This final guidance is effective on April 28, 1999.
FOR FURTHER INFORMATION CONTACT: For the FHWA program office: Mr.
Michael J. Savonis, HEPN-10, Office of Environment and Planning, (202)
366-2080; For the FTA program office: Mr. Abbe Marner, TPL-12, Office
of Planning, (202) 366-4317; For legal issues (FHWA): Mr. S. Reid
Alsop, HCC-30, Office of the Chief Counsel, (202) 366-1371. For legal
issues (FTA): Mr. Scott Biehl, TCC-30, Assistant Chief Counsel,
Environment and Regional Operations Division, (202) 366-0952. Office
hours are from 8 a.m. to 4:30 p.m., e.t., Monday through Friday, except
Federal holidays.
SUPPLEMENTARY INFORMATION:
Electronic Access
An electronic copy of this document may be downloaded using a modem
and suitable communications software from the Government Printing
Office's Electronic Bulletin Board Service at (202) 512-1661. Internet
users may reach the Office of the Federal Register's home page at:
http://www.nara.gov/fedreg and the Government Printing Office's
database at: http://www.access.gpo.gov/nara. Internet users may also
access the written comments on the interim guidance [FHWA Docket No.
FHWA-98-4317] received by the U.S. DOT Dockets, Room PL-401, by using
the universal resource locator (URL):
http://dms.dot.gov. It is available 24 hours a day, 365 days each year.
Please follow the instructions online for more information and help.
Background
On October 26, 1998, at 63 FR 57154, the FHWA and the FTA published
interim implementation guidance for
[[Page 9041]]
the CMAQ program provided in section 1110 of the TEA-21, Public Law
105-178, 112 Stat. 107, at 142 (1998). The text of the final guidance,
which has been in effect since April 28, 1999, is provided as an
attachment to this notice.
In the latter part of 1998, the FHWA and the FTA hosted five forums
in four cities (Washington, D.C., San Francisco, CA, Chicago, IL, and
St. Louis, MO) to provide an opportunity for those directly involved in
congestion mitigation and air quality improvement programs to assist in
developing the final guidance.
The CMAQ program, established under the Intermodal Surface
Transportation Efficiency Act of 1991 (ISTEA), Public Law 102-240, 105
Stat. 1914, was designed to assist nonattainment and maintenance areas
in attaining the national ambient air quality standards (NAAQS) by
funding transportation projects and programs that will improve air
quality. It was reauthorized with some changes under section 1110 of
the TEA-21.
The primary purpose of the CMAQ program remains the same: to fund
projects and programs in air quality nonattainment and maintenance
areas that reduce transportation-related emissions. It is the only
program under title 23, U.S.C., with funds dedicated to helping
nonattainment and maintenance areas to achieve and maintain the NAAQS.
Discussion of Comments
Interested persons were invited to comment on the interim guidance
for the CMAQ program under the TEA-21. We received 34 comments from 32
agencies in response to an invitation to submit written comments to the
docket number FHWA-1998-4317 by November 30, 1998. Of the 32
commenters, 14 were State agencies, 7 were local agencies, 7 were
private sector companies or industry associations, 2 were public
interest institutes, 1 was a Federal agency, and 1 was a private
citizen. The Federal Register notice specifically asked for general
comments, as well as for input on eight questions and issues related to
the new flexibilities in the CMAQ program (For brevity, the original
questions are abridged in this summary). The FHWA and the FTA also
conducted extensive outreach efforts by holding five stakeholder forums
in which over 200 participants provided input.
In general, the comments were supportive of the CMAQ program,
acknowledging its important role in helping States and metropolitan
areas reach air quality goals. Given the several years of experience
with CMAQ and public involvement processes under ISTEA, as well as the
continued need to provide flexibility to States and metropolitan
planning organizations (MPOs), most commenters, particularly those at
the stakeholder forums, urged that CMAQ implementation guidance be
flexible--not prescriptive--and allow for existing processes to work or
be enhanced appropriately.
Many of the written comments to the docket on the interim guidance
addressed two issues: (1) Eligibility of CMAQ funding in areas where
the 1-hour ozone standard has been revoked; and (2) project evaluation
and project selection criteria.
Many of the State agencies commenting to the docket opposed
eliminating the eligibility of CMAQ funding for the areas where the 1-
hour ozone standard has been revoked. The law makes clear, however,
that only those areas that are classified in accordance with sections
181(a) and 186(a) or (b) of the Clean Air Act (42 U.S.C. 7511 and 7512)
can be included in the statutory formula apportioning CMAQ funds.
Further, the law requires that CMAQ funds be expended to assist
nonattainment and maintenance areas, if any exist within the State, to
attain and maintain the standards. Since nonattainment areas that have
the 1-hour standard revoked have no ozone standard to meet and, as a
result, have no maintenance plans and continuing air quality
responsibilities, the CMAQ funds could not be expended to assist
attainment or maintenance of the 1-hour standard in those areas.
Finally, reinstatement of the 1-hour ozone standard, as proposed by the
U.S. Environmental Protection Agency (EPA), would render this issue
moot.
In the final guidance, the FHWA and the FTA have attempted to
provide as much flexibility to State and local agencies in using CMAQ
funding within the existing authority provided by the TEA-21. As
reflected in the final guidance, in order to provide continuity in the
transportation and air quality planning process, the FHWA and the FTA
will allow those areas where the 1-hour ozone standard has been revoked
to use CMAQ funds for air quality improvement projects that were
included in the first three years of the transportation improvement
program (TIP) in effect when the standard was revoked. In addition,
these areas were granted a four-month period (beginning with the April
28, 1999 guidance or the effective date of revocation, whichever is
later) to make any adjustments to those TIPs.
Nearly all of the written comments emphasized the need for project
evaluation and selection criteria that could quantify air quality
benefits more accurately and encourage the selection of the most cost-
effective projects. Many commenters also felt that such evaluation
protocols would help ensure that public-private partnerships serve the
public interest. The FHWA and the FTA recognize the importance of
ensuring that CMAQ funds continue to provide an important resource for
reducing air pollution from mobile sources, and, in particular, to
assist attainment of the national ambient air quality standards. The
law, however, does not require performance standards. In addition, the
CMAQ program funds a great variety of projects, each with unique
circumstances and potential impacts (including air quality improvement,
congestion relief, quality of life enhancements, and other public
benefits), that preclude the application of a standardized and
inflexible evaluation protocol. The FHWA and the FTA have encouraged
States to prudently use their CMAQ funds for those projects that have
strong emissions and other public benefits. The FHWA and the FTA
believe that information on evaluation and project selection criteria
and effective practices is best provided in follow-up technical
assistance rather than prescribed in the final guidance document.
Question 1. Public-Private Partnerships
(a) Are there ways to ensure that the public funding (CMAQ) is
limited to the production of a public benefit--air quality improvement?
Thirty commenters responded to the four questions concerning
public-private partnerships. Collectively, the comments identified
several methods to ensure that CMAQ funding used in public-private
partnerships serve the public interest. For the most part, commenters
cited the need for performance measures (such as cost-effectiveness
criteria) and a standard methodology for measuring and reporting air
quality improvement and public benefits. Some commenters suggested that
programs administered by the U.S. Department of Energy, the California
Air Resources Board, and the Connecticut Department of Transportation
could serve as models on how to administer public-private partnerships.
Like the great majority of commenters, the FHWA and the FTA
strongly believe that public-private partnerships provide a significant
opportunity to advance a greater number of clean air transportation
initiatives than could be
[[Page 9042]]
achieved with public funds alone. The final guidance addresses public-
private partnerships as an eligible activity. The TEA-21 requires that
a written agreement be in place between the public agency and private
or non-profit entity before implementing a CMAQ-funded project. Since
the public benefit is air quality improvement, it is expected that
future funding proposals involving private entities will demonstrate
strong emission reduction benefits. In this respect, public-private
partnerships are no different from public sector CMAQ projects. In
addition, the FHWA is currently researching effective models and
practices for public-private partnerships that will be shared in future
technical assistance.
(b) How can the Federal, State, and local agencies insure that an
open process for project selection is preserved?
For the most part, all of the commenters agreed that an open
process was important and essential. Many commenters identified
possible elements of an open process, which included the following: (1)
Asking MPOs to provide public notice of the availability of funding for
CMAQ programs; (2) providing opportunities for prospective participants
to meet with transportation planning officials to discuss the merits of
their projects; and (3) having Federal, State, and local agencies
identify the various steps the private sector must take to participate
in public-private partnership programs. The FHWA and the FTA agree with
the majority of commenters that it is essential that all interested
parties have full and timely access to the process of selecting
projects for CMAQ funding. Given the great interest from commenters and
the diversity of ideas, the FHWA and the FTA expect to provide
additional information on effective practices and procedures on cost-
effectiveness and project selection in future technical assistance.
(c) What safeguards, agreements, or other mechanisms should be
employed to protect the public investment and insure that joint public-
private projects funded under the CMAQ program are used for their
intended public purpose, which is to improve air quality?
In general, commenters believed that existing processes protect the
public interest and offer adequate safeguards to public agencies. Three
commenters cited U.S. Department of Energy and California Air Resources
Board programs as possible models for effective administration of
public-private partnerships. Collectively, the commenters identified
several mechanisms to safeguard the public interest in public-private
partnerships that receive CMAQ funds as follows: (1) Establish a
regular monitoring program that measures air quality improvements and
other public benefits; (2) retain an appropriate percentage of the CMAQ
funding until the State is satisfied that a project is meeting its
intended purpose; (3) require MPOs to certify that the project will
improve air quality using appropriate evaluation procedures; and (4)
appoint a project manager from another agency as an administrator. The
FHWA and the FTA will consider these comments in future technical
assistance concerning public-private partnerships related to CMAQ-
funded projects. As reflected in the final guidance, the States are
responsible for ensuring that the intent of CMAQ funded projects is
served.
(d) What are the implications of these new flexibilities on the
transportation/air quality planning process? For transportation
conformity?
Several State agencies emphasized that documentation of estimated
emission reduction is the key for conformity analysis, regardless of
project sponsor, while an open planning process and emphasis on
carrying out the State Implementation Plan (SIP) will assist
conformity. However, one State agency felt the new public-private
partnership provisions would have a minimal impact on the
transportation and air quality planning and conformity process. Based
on these comments and input from other stakeholders at public forums,
the FHWA and the FTA expect that, through the continued vigilance and
responsibilities of the States, public-private partnerships will not
negatively impact the ability of areas to achieve air quality and
conformity goals. The final guidance also stresses the use of CMAQ
funds for projects that have strong emissions benefits.
Question 2. Telecommuting
Currently, eligibility for expenses related to telecommuting
programs is limited to planning, technical and feasibility studies,
training, coordination and promotion. Purchase of computer and office
equipment for public agencies and related activities are not eligible.
Should CMAQ eligibility be expanded to include these costs?
Of the 14 responses to this question, 6 commenters felt that
telecommuting eligibility should not be extended to the purchase of
computer and office equipment. These commenters either believed that
funding for these items could come from other sources, or that
telecommuting projects had a minimal impact on air quality
improvements. One commenter expressed concerns that telecommuting
programs may actually exacerbate sprawl by encouraging employees to
live farther from their workplaces. Another 8 commenters believed that
telecommuting programs should be able to purchase equipment with CMAQ
funds with some caveats as follows: (1) Purchase of computer and office
equipment should be eligible as a one-time expenditure; (2) equipment
purchases for home use or for only one employee should not be eligible;
(3) equipment must remain for use by the telecommuting program; and (4)
the telecommuting program must be large enough to have an actual,
quantifiable impact upon air conformity. One commenter suggested that
agencies should fund pilot projects to develop empirical data on the
benefits of telecommuting programs. Based on the conflicting comments
received, the FHWA and the FTA felt there was no compelling reason to
change the existing eligibility policy on telecommuting.
Question 3. Alternative Fuel Vehicles (AFV)
Under the interim guidance and under TEA-21, CMAQ eligibility under
the public-private partnership provisions is limited to the incremental
cost of a new alternative fuel vehicle as compared to a conventionally
fueled vehicle of the same type. Should this policy be extended to
projects that will provide for the use of alternative fuels for
publicly-owned vehicles and vehicle fleets (other than vehicles used
for public transit services)?
There were 20 responses to this question. Three commenters felt
that the policy should be extended to projects that encourage the use
of alternative fuels for publicly-owned vehicles and vehicle fleets.
Another 8 commenters stated that the policy should not be extended to
such publicly-owned projects. Many of these commenters believed that
the FHWA and the FTA should maintain as much flexibility as possible so
that areas can realize the potential air quality improvements offered
by AFVs, particularly those that exceed EPA standards. Of the other 9
responses, 8 commenters expressed general support for the eligibility
of alternative fuel vehicle projects for CMAQ funds, while 1 commenter
stated that the FHWA and FTA should not intervene in the AFV market.
Based on the positive response from the majority of commenters to
the Federal Register notice and in public forums, the final guidance
maintains current eligibility for the full cost of publicly-owned,
alternative fuel
[[Page 9043]]
vehicles, for on-site fueling facilities, and for other infrastructure
needed to fuel alternative fuel vehicles. However, if privately-owned
fueling stations are in place and are reasonably accessible and
convenient, then CMAQ funds may not be used to construct or operate
publicly-owned fueling stations as before. The FHWA and the FTA
emphasize that there must continue to be a sound and open process,
which safeguards the public interest, and which does not favor one
private sector interest over another. In particular, States continue to
be responsible for ensuring that the public interest is protected.
Question 4. Traffic Calming Measures
Should traffic calming projects be categorically excluded from CMAQ
funding or should they be considered for eligibility on a case-by-case
basis?
Of the 13 commenters, 9 agencies felt that traffic calming projects
should be considered for CMAQ funding on a case-by-case basis by
carefully evaluating possible increases in hydrocarbon and carbon
monoxide (CO) emissions at lower speeds against potential long-term
reductions in automobile travel by single occupancy vehicles. One of
these agencies also stipulates that traffic calming projects should be
part of a broader area systems plan in order to receive CMAQ funds.
Two agencies believed that traffic calming projects should not be
eligible, while another two believed that the FHWA and the FTA should
sponsor further research investigating the long-term potential of mode
switching and traffic diversion resulting from traffic calming
projects. Based on the comments received, the FHWA and the FTA will
continue to consider traffic calming measures for CMAQ funding on a
case-by-case basis.
Question 5. Experimental Pilot Projects
What can the FHWA and the FTA do to encourage the implementation of
experimental projects under this provision?
Twelve agencies responded to this question, offering several ideas
to the FHWA and the FTA on possible actions to encourage experimental
pilot projects as follows: (1) Provide direction and examples as to how
areas could best determine priority ranking of experimental CMAQ
projects compared to other proposed projects that have quantified
emissions benefits; (2) develop a working group or pursue research
regarding the development of unique CMAQ pilot projects; (3) consider a
process by which a pilot project that demonstrates quantifiable air
quality benefits can be incorporated into ``regular'' CMAQ programs;
(4) create an objective rating system for candidate projects that
establishes a bonus for innovative projects that don't have significant
access to other TEA-21 funding; and (5) direct States to set aside a
minimum percentage of CMAQ appropriations for experimental projects,
the allocation of which would be determined jointly by the individual
States' air quality, energy, and transportation agencies. Given the
diversity of comments received, the FHWA and the FTA will consider the
wide-ranging suggestions in future research and program activities.
Question 6. Fare/Fee Subsidy Program
The current CMAQ Guidance allows for partial, short-term subsidies
of transit and paratransit fares as a means of encouraging transit use.
Transit agencies have used this provision to offer reduced fares on
``ozone alert'' days. Should this provision be changed to allow ``free
fares?'' Should the provision be loosened to allow a broader period of
coverage, i.e., throughout the high-ozone season rather than individual
episodes?
Of the 13 agencies responding to this question, 10 believed that
the provisions should allow free fares and a broader period of
coverage. These ten agencies believed that such an expansion would
provide greater local flexibility in planning, and enable more routine
use of transit. In particular, these agencies believed that allowing a
broader period of coverage would enable better planning, and eliminate
the difficulty of predicting ``high ozone'' days far enough in advance
to have an impact on travel choice. Two agencies believed that the FHWA
and the FTA should assess subsidy programs for cost-effectiveness
before expanding program eligibility. In addition, one State agency
opposed relaxing the provisions, stating that free fares and broader
coverage would only enable existing transit users to make more
substantial use of the transit system rather than attract new transit
users.
The final guidance allows for the use of CMAQ funds to subsidize a
transit fare if the reduced or free fare is part of a more
comprehensive program in the nonattainment or maintenance area to
prevent exceedances of a national air quality standard. In the final
guidance, the FHWA and the FTA focus on the potential to attract new
riders to transit so that transit can contribute to an action plan to
meet air quality objectives.
Question 7. High Occupancy Toll (HOT) Lanes
Should projects to fund the development and/or operation of HOT
lanes be eligible under the CMAQ program?
Of the 11 commenters on this question, 5 believed that HOT lanes
should be eligible. Many of these commenters believed that the revenues
from these projects should be reinvested for air quality improvements.
A public interest group for highway and safety qualified their
affirmative response by stating that medium or heavy trucks should be
excluded from participating in a congestion pricing program on HOT
lanes receiving CMAQ funds. Two agencies commented that HOT lanes
should not be eligible since they have mixed air quality improvement
results and could be self-funding. Another four agencies believed that
HOT lanes must demonstrate air quality benefits before becoming
eligible. There is no clear consensus among the commenters. Further
concerns exist regarding the FHWA's and the FTA's discretion to allow
CMAQ funding for HOT lanes and no commenters suggested an alternative
interpretation of the law that might preclude these concerns. In the
final guidance, the FHWA and the FTA state that projects to plan,
develop, assess, or construct new High Occupancy Toll lanes are an
eligible CMAQ expense only if they are part of the Value Pricing
Program under TEA-21 (which provides relief under the law from some
statutory provisions like those in 23 U.S.C. 149.)
Question 8. Reporting Requirements
Do you have any suggestions on how to improve upon the quality of
data and information provided in annual reports? Would you use an
electronic reporting format if that option were available to you? Do
you have any suggestions on how to improve the reporting requirements
and minimize the administrative burden of reporting on CMAQ-funded
projects?
Of the 10 agencies responding to these questions, all welcomed
electronic reporting, particularly a system that could take advantage
of internet technologies. These commenters believed that electronic
reporting would facilitate communication, help streamline the reporting
process, and reduce the administrative burden. Based on the positive
comments and endorsement received, the FHWA is developing a web-based
electronic reporting system that can be used by Federal, State, and MPO
agencies, and also make information about CMAQ projects more accessible
to the public.
[[Page 9044]]
Authority: 23 U.S.C. 315; sec. 1110, Pub. L. 105-178, 112 Stat.
107 (1998); 49 CFR 1.48 and 1.51.
Issued on: February 14, 2000.
Nuria Fernandez,
Acting Federal Transit Administrator.
Kenneth R. Wykle,
Federal Highway Administrator.
The text of the final implementation guidance on the CMAQ program
reads as follows:
The Congestion Mitigation and Air Quality Improvement (CMAQ)
Program: Program Guidance
I. Introduction
The CMAQ program was reauthorized in the recently enacted TEA-21
(Public Law 105-178, June 9, 1998). The primary purpose of the CMAQ
program remains the same: to fund transportation projects and programs
in nonattainment and maintenance areas which reduce transportation-
related emissions. Over $8.1 billion dollars is authorized over the 6-
year program (1998-2003), with annual authorization amounts increasing
each year during this period.
This guidance provides complete information on the CMAQ program
including:
1. Authorization levels and apportionment factors under TEA-21;
2. Flexibility and transferability provisions available to States;
3. Geographic area eligibility for CMAQ funds;
4. Project eligibility information;
5. Project selection processes; and 6. Program oversight and
reporting responsibilities.
This guidance replaces all earlier CMAQ guidance documents.
Information on the current annual apportionment to each State and
copies of this guidance are available from the FHWA Web Site at:
www.fhwa.dot.gov.
II. Program Purpose
The purpose of the CMAQ program is to fund transportation projects
or programs that will contribute to attainment or maintenance of the
national ambient air quality standards (NAAQS) for ozone and carbon
monoxide (CO). The TEA-21 also allows CMAQ funding to be expended in
particulate matter (PM) nonattainment and maintenance areas.
Congress did not intend CMAQ funding to be the only source of funds
to reduce congestion and improve air quality. Other funds under the
Surface Transportation Program (STP) or the Federal Transit
Administration (FTA) capital assistance programs, for example, may be
used for this purpose as well. Furthermore, the greatest air quality
benefit will accrue not solely from Federal funds, but from a
partnership of Federal, State and local efforts.
III. Priority for Use of CMAQ Funds
Section 176(c) of the Clean Air Act (CAA, 42 U.S.C. 7506, July 14,
1955, c. 360, Title I, Section 176(c)(2)(B) as amended Nov. 15, 1990)
requires that the Federal Highway Administration (FHWA) and the FTA
ensure timely implementation of transportation control measures (TCMs)
in applicable State Implementation Plans (SIPs), and consequently, the
highest priority for funding under the CMAQ program is for the
implementation of such measures. The SIPs and the control measures they
contain are necessary to assist a State to attain and maintain the
NAAQS. A basic criterion for making conformity determinations is the
timely implementation of TCMs in the SIP, and conformity determinations
are necessary before transportation plans, programs, or projects can be
adopted and approved. If States fail to ensure timely implementation of
TCMs included in SIPs, their conformity determinations and
transportation initiatives will be in jeopardy. In addition, failing to
implement TCMs in SIPs can also trigger the application by the
Environmental Protection Agency (EPA) of the CAA highway sanctions (42
U.S.C. Sec. 7509, July 14, 1955, c. 360, Title I, Section 179(b)(1), as
amended Nov. 15, 1990).
Once CMAQ projects and programs are identified, States need to
insure that sufficient obligation authority is reserved to implement
these projects and programs so that nonattainment areas make progress
toward attainment of the NAAQS and that maintenance areas do not
backslide into nonattainment. While the continuation of CMAQ funds into
the maintenance period now makes it possible to look at longer term
strategies, States and metropolitan planning organizations (MPOs) are
still encouraged to consider and give priority to strategies that would
help them meet their attainment deadlines and maintain the NAAQS into
the future.
States and MPOs should make strategic use of the CMAQ funds
allotted to them even if they will not be used for TCMs in their SIPs.
For example, CMAQ funding should also be considered for use in
implementing other CMAQ eligible transportation projects in SIPs such
as inspection and maintenance (I/M) programs. These and other
transportation projects may be essential to attainment of the NAAQS and
therefore States and MPOs are urged to consider their funding, where
eligible, under the CMAQ program.
The FHWA and FTA continue to recommend that States and MPOs develop
their transportation/air quality programs using complementary measures
that simultaneously provide alternatives to single-occupant vehicle
(SOV) travel while reducing demand through pricing, parking management,
regulatory or other means. Further, the FHWA and FTA urge States and
MPOs to develop a full and open public process for the solicitation and
selection of meritorious projects to be funded through the CMAQ
program.
IV. Authorization Levels Under TEA-21
Authorization Levels
Table 1 shows the TEA-21 CMAQ authorization levels by fiscal year.
The CMAQ funds will be apportioned to States each year based upon the
adopted apportionment factors as shown in Table 2.
Table 1.--TEA-21 CMAQ Authorization Levels
------------------------------------------------------------------------
Amount
Fiscal year authorization authorized
------------------------------------------------------------------------
FY1998................................................ $1,192,619,000
FY1999................................................ 1,345,415,000
FY2000................................................ 1,358,138,000
FY2001................................................ 1,384,930,000
FY2002................................................ 1,407,474,000
FY2003................................................ 1,433,996,000
------------------------------------------------------------------------
Minimum Guarantee
The TEA-21 includes a minimum guarantee that provides each State
funding in an amount not less than 90.5 percent of the estimated annual
Federal gasoline tax payments each State pays into the Highway Trust
Fund (HTF). Due to the Minimum Guarantee, the annual authorizations
listed in Table 1 are the minimum authorization levels and are likely
to be increased depending on actual HTF receipts.
Transferability of CMAQ Funds
States may transfer CMAQ funds to other programs according to the
following provision (23 U.S.C. 110(c)). An amount not to exceed 50
percent of the State's annual apportionment may be transferred less the
amount the State would have received if the CMAQ program was authorized
at $1,350,000,000 for that year. Any transfer of such funds must still
be obligated in nonattainment and maintenance areas. This increment of
transferable funds will differ from year-to-year and State-to-State
depending on overall authorization levels. Each year FHWA will inform
each State how
[[Page 9045]]
much of their CMAQ funding is transferable, if any, and will track the
transfer of CMAQ funds each year.
V. Annual Apportionments of CMAQ Funds to States
Apportionment Factors
The CMAQ funds are apportioned annually according to factors (23
U.S.C. Sec. 104(a)), largely based on air quality need, which are
calculated in the following manner. The population of each area in a
State (based upon Census bureau data by county), that at the time of
apportionment is a nonattainment or maintenance area for ozone and/or
CO and meets the classifications contained in the CAA, is multiplied by
the appropriate factor listed in Table 2. Two key changes are included
in the apportionment factors under TEA-21. Areas that are designated
and classified as submarginal and maintenance areas for ozone are now
explicitly included in the apportionment formula, and there are new
weighting factors for CO nonattainment areas.
Table 2.--TEA-21 CMAQ Apportionment Factors
----------------------------------------------------------------------------------------------------------------
Classification at the Time of
Pollutant annual Apportionment Weighting factor
----------------------------------------------------------------------------------------------------------------
Ozone (O3) or (CO)...................... Maintenance (these areas had to .8
be previously eligible as
nonattainment areas-See Section
VI).
Ozone................................... Submarginal..................... .8
Marginal........................ 1.0
Moderate........................ 1.1
Serious......................... 1.2
Severe.......................... 1.3
Extreme......................... 1.4
CO...................................... Nonattainment (for CO only)..... 1.0
Ozone and CO............................ Ozone nonattainment or 1.1 x O3 factor
maintenance and CO maintenance.
Ozone nonattainment or 1.2 x O3 factor
maintenance and CO
nonattainment.
All States--minimum apportionment....... \1/2\ of 1 percent total annual N/A
apportionment of CMAQ funds.
----------------------------------------------------------------------------------------------------------------
Minimum Apportionments
Each State is guaranteed at least \1/2\ of 1 percent of each year's
CMAQ authorized funding regardless of whether the State has any
nonattainment or maintenance areas.
Use of Minimum Apportionments in States Without Nonattainment or
Maintenance Areas
If a State does not have, and has never had, a nonattainment or
maintenance area, the State may use its minimum apportionment for any
projects in the State eligible under either the CMAQ or the STP. Such
States are encouraged to give priority to the use of CMAQ program funds
for projects that will relieve congestion or improve air quality in
areas that are at risk of being designated as nonattainment.
Use of Minimum Apportionments in States With Nonattainment or
Maintenance Areas
Some of the States receiving minimum apportionments have
nonattainment or maintenance areas. In States where the amount of CMAQ
funds generated due to nonattainment or maintenance areas is less than
the minimum apportionment levels, additional flexibility is granted
under TEA-21. A State receiving the minimum apportionment must use that
portion of funds related to nonattainment and maintenance status (the
``air quality'' portion), in those nonattainment or maintenance areas.
The State may use the funds added above the formula amount to make up
the minimum apportionment (the ``flexible portion'') for any CMAQ or
STP eligible project in the State.
When the total annual CMAQ authorization exceeds $1.35 billion,
States may also use the transferability provisions as described in
Section IV. After the apportionment process each year, the FHWA will
advise the minimum apportionment States with nonattainment or
maintenance areas of the amount that can be flexed and the amount that
can be transferred, if any.
Apportionments and State Suballocation
Despite the statutory formula for determining the apportionment
amount, the State can use its CMAQ funds in any ozone, CO or PM-10
nonattainment or maintenance area. A State is under no statutory
obligation to suballocate CMAQ funds in the same way as they were
apportioned. However, States are strongly encouraged to consult with
affected MPOs to determine CMAQ priorities and allocate funds
accordingly. Further, to facilitate planning and programming of funds,
it is critical that States provide MPOs with timely and reasonable
estimates of the amount of CMAQ funding they can expect each year.
Federal Share and State/Local Match Requirements
The Federal share for most eligible activities and projects is 80
percent or 90 percent if used on the interstate system. Under certain
conditions (including sliding scale rates), the Federal share under
title 23 of the United States Code can even be higher. Certain
activities identified in section 120(c) of title 23, including traffic
control signalization, commuter carpooling and vanpooling, and
signalization projects to provide priority for transit vehicles may be
funded at 100 percent Federal share if they meet the conditions of that
section.
Those responsible for CMAQ project decisions have discretion with
respect to the level of local match, if any, beyond the minimum Federal
requirements. For example, decisionmakers may decide that a particular
project requires a 50 percent local match contribution rather than the
usual 20 percent required under Federal law.
VI. Geographic Areas that are Eligible to Use CMAQ Funds
Impact of the Revised NAAQS
The CMAQ eligibility provisions under TEA-21 (23 U.S.C. 149(b))
allow that any area designated as nonattainment after December 31,
1997, be eligible to spend CMAQ funding even though the area may not be
classified according to the classifications identified in the Clean Air
Act Amendments of 1990 (Sections 181(a), and 186(a)). Such areas,
however, will not be included in the apportionment factors since they
will
[[Page 9046]]
not be given classifications. This provision ensures that any areas
designated nonattainment as a result of the revised ozone and PM air
quality standards, promulgated in 1997, will be eligible to receive
CMAQ funding. Areas which are designated as nonattainment after
December 31, 1997, and are subsequently redesignated to maintenance
areas are also eligible to receive CMAQ funds.
The EPA's policies regarding the revocation of the PM-10 standard
are still under development. Issues affecting the distribution of CMAQ
funds and eligibility for affected areas will be addressed after EPA
determines its policies with respect to revocation of the PM-10
standard.
Revocation of the 1-Hour Ozone Standard
As part of the transition to the 8-hour ozone standard, EPA is
revoking the 1-hour standard in areas that demonstrate the requisite 3
years of ``clean'' monitoring data. Among areas where the 1-hour
standard is revoked, those areas that have EPA-approved maintenance
plans on the effective date of revocation will continue to have their
maintenance plans in full force. As maintenance areas, they will
continue to be eligible for CMAQ funds and will be included in the
annual apportionment factors. The conformity requirements will also
continue to apply in these areas.
Other areas for which the 1-hour ozone standard is revoked may not
have EPA-approved maintenance plans. These areas are no longer
designated nonattainment or maintenance relative to the 1-hour
standard. As such, these areas will not be subject to the conformity
requirements, and they will no longer be able to meet the basic
statutory requirement for CMAQ eligibility unless they are designated
nonattainment or maintenance for CO and/or PM. In order to provide
continuity in the transportation/air quality planning process, FHWA/FTA
will allow these areas to use CMAQ funds for air quality improvement
projects that were included in the first 3 years of the transportation
improvement program (TIP). In addition, these areas will be granted a
4-month period beginning with the date of release of this guidance or
the effective date of revocation, whichever is later, to make any
adjustments to their TIPs.
Classification Criteria
An area that was designated as a nonattainment area for ozone, CO
or PM-10 under the CAA prior to December 31, 1997, is eligible for CMAQ
funds provided that the area is also classified in accordance with
Sections 181(a), 186(a), or 188(a) or (b) of the CAA. This means that
ozone nonattainment areas must be designated and classified
``marginal'' through ``extreme,'' and CO and PM-10 nonattainment areas
must be designated and classified either ``moderate'' or ``serious'' to
be eligible for CMAQ funding. Submarginal ozone nonattainment areas are
now included in the CMAQ apportionment formula and are eligible to
receive CMAQ funds. Areas that were previously designated nonattainment
and classified in accordance with this section, but are subsequently
redesignated to maintenance areas are also eligible to receive CMAQ
funds.
Areas which were designated nonattainment prior to December 31,
1997, but were not classified in accordance with the above are not
eligible to receive CMAQ funds. These include but are not limited to
areas that were formerly considered as ozone ``transitional'' and
``incomplete data'' areas and CO ``not classified'' areas.
Maintenance Areas
Maintenance areas that were designated nonattainment, but have
since met the air quality standards are now explicitly eligible to
receive CMAQ funding and are included in the apportionment factors.
Such areas must have met the classification requirements of the 1990
CAA if they were designated nonattainment prior to December 31, 1997,
(as discussed in Section V above) in order to be eligible and included
in the apportionment factors.
In States which have ozone or CO maintenance areas and no
nonattainment areas, CMAQ funds must be used in the maintenance areas.
Previous guidance allowed such States flexibility to use their CMAQ
funding for projects eligible under the STP if a State could
demonstrate that it had sufficient funding to meet its air quality
commitments within its maintenance areas. Such flexibility is no longer
allowed since maintenance areas are now included in the apportionment
formula and the eligibility provisions require that CMAQ funding be
used in nonattainment and maintenance areas.
PM-10 Nonattainment and Maintenance Areas
Nonattainment and maintenance areas for PM-10 are also now
explicitly eligible to receive CMAQ funding. States that have PM-10
nonattainment or maintenance areas only (i.e., no ozone or CO
nonattainment or maintenance areas) are granted additional flexibility
under TEA-21. Since these areas are not included in the CMAQ
apportionment calculation, the State may use its minimum apportionment
for projects eligible under the STP or the CMAQ program anywhere in the
State. However, such States are encouraged to use their CMAQ funds in
the PM-10 nonattainment and maintenance areas. Examples of eligible
projects and programs in a PM-10 nonattainment or maintenance area
include paving dirt roads, diesel bus replacements, and purchase of
more effective street-sweeping equipment.
VII. Project Eligibility Provisions
Projects Not Eligible for CMAQ Funding
As was the case under the Intermodal Surface Transportation
Efficiency Act of 1991 (ISTEA) (Pub. L. 102-240, Dec. 18, 1991, 105
Stat. 1914), certain projects may not be funded under the CMAQ program
under any circumstances. Activities which are legislatively prohibited,
including scrappage programs and highway capacity expansion projects,
may not be funded under the CMAQ program. Similarly, rehabilitation and
maintenance activities, as noted below, show no potential to make
further progress in achieving the air quality standards and may not be
funded under the CMAQ program. Program funds may also not be used for
projects which are outside of nonattainment or maintenance area
boundaries except in cases where the project is located in close
proximity to the nonattainment or maintenance area and the benefits
will be realized primarily within the nonattainment or maintenance area
boundaries. (Note: The use of CMAQ funds under the flexibility
provisions discussed in Section V are an exception). Public-private
partnerships involving the implementation of statutorily mandated
measures (e.g., phase-in of alternatively fueled fleets) may not be
funded with CMAQ funds. Finally, projects not meeting the specific
eligibility requirements under titles 23 or49 of the United States Code
may also not be funded under this provision.
Highway and Transit Maintenance and Reconstruction Projects:
Routine maintenance projects are not eligible for CMAQ funding.
Routine maintenance and rehabilitation on existing facilities maintains
the existing levels of highway and transit service, and therefore
maintains existing ambient air quality levels. Thus, no progress is
made toward achieving the NAAQS. Rehabilitation projects only serve to
bring existing facilities back to
[[Page 9047]]
acceptable levels of service. Other funding sources, like the STP and
FTA's Section 5307 program, exist for reconstruction, rehabilitation
and maintenance activities. Replacement-in-kind of track or other
equipment, reconstruction of bridges, stations and other facilities,
and repaving or repairing roads are also ineligible for CMAQ funding.
Construction of SOV Capacity:
Construction projects which will add new capacity for SOV are not
eligible under this program unless the project consists of a high-
occupant vehicle (HOV) facility that is available to SOV only at off-
peak travel times. For purposes of this program, construction of added
capacity for SOV means the addition of general purpose through lanes to
an existing facility which are not HOV lanes, or construction of a
highway at a new location. However, projects to plan, develop, assess,
or construct new High Occupancy Toll lanes are an eligible CMAQ expense
so long as they are part of the Value Pricing Program under TEA-21 (23
U.S.C. 149(a)).
Project Eligibility-General Conditions
All projects and programs eligible for CMAQ funds must come from a
conforming transportation plan and TIP, and be consistent with the
conformity provisions contained in section 176(C) of the CAA and the
Transportation Conformity Rule Projects (40 CFR Parts 51 and 93, as
amended) need to be included in TIPs or state-wide transportation
improvement projects developed by MPOs or States respectively, under
the metropolitan or statewide planning regulations (23 CFR 450, 49 CFR
Part 613). Projects also need to complete the National Environmental
Policy Act (NEPA) requirements and meet basic eligibility requirements
for funding under titles 23 and 49 of the United States Code.
In cases where specific guidance is not provided, the following
should guide CMAQ eligibility decisions.
Capital Investment:
CMAQ funds should be used for establishment of new or expanded
transportation projects and programs to help reduce emissions. In many
cases this is likely to be capital investment in transportation
infrastructure or establishment of a new demand management strategy or
other program.
Operating Assistance: There are several general conditions which
must be met in order for any type of operating assistance to be
eligible under the CMAQ program.
In extending the use of CMAQ funds to operating
assistance, the intent is to help start up viable new transportation
services which can demonstrate air quality benefits and eventually will
be able to cover their costs to the maximum extent possible. Other
established funding sources should supplement and ultimately supplant
the use of CMAQ funds for operating assistance.
Operating assistance includes all costs related to ongoing
provision of new transportation services including, but not limited to,
labor, administrative costs and maintenance.
When using CMAQ funds for operating assistance, local
share requirements still apply.
Operating assistance is limited to new transit services
and new or expanded transportation demand management strategies.
Operating assistance under the CMAQ program is limited to
3 years, except as noted elsewhere in this guidance.
Emission Reductions: Projects funded under the CMAQ program must be
expected to result in tangible reductions in CO, ozone precursor
emissions, or PM-10 pollution. This can be demonstrated by the
assessment of anticipated emission reductions that is required under
this guidance for most projects. The FHWA and FTA strongly encourage
State and local governments to use CMAQ funds for their primary purpose
which is to assist nonattainment and maintenance areas to reduce
transportation-related emissions.
Public Good: CMAQ funded projects should be for the good of the
general public. Public-private partnerships may be eligible, however,
so long as a public good (i.e., reduced emissions) results from the
project (see discussion of public-private partnerships below).
Eligible Activities and Projects
Eligibility information on activities and projects and program
areas is provided below, together with any restrictions. All possible
requests for CMAQ funding are not covered; this section provides
particular cases where guidance can be given and rules of thumb applied
to assist decisions regarding CMAQ eligibility.
1. Transportation Activities in an Approved SIP or Maintenance
Plan:
Transportation activities in approved SIPs and maintenance plans
are likely to be eligible activities and, if so, must be given the
highest priority for CMAQ funding. Their air quality benefits will
generally have already been documented. If not, such documentation is
necessary before CMAQ funding can be approved. Further, the
transportation improvement must contribute to the specific emission
reductions necessary to bring the area into attainment.
2. TCMs:
The TCMs included in 42 U.S.C. 7408(f)(1) are the kinds of projects
intended by the TEA-21 for CMAQ funding, and generally satisfy the
eligibility criteria. As above, and consistent with the statute, air
quality benefits for TCMs must be determined and documented before a
project can be considered eligible. One CAA TCM, xvi--programs to
encourage removal of pre-1980 vehicles is specifically excluded from
the CMAQ program by the TEA-21 legislation. Eligible TCMs are listed
below as they appear in 42 U.S.C. 7408 (f)(1).
(i) programs for improved public transit;
(ii) restriction of certain roads or lanes to, or construction of
such roads or lanes for use by, passenger buses or HOV;
(iii) employer-based transportation management plans, including
incentives;
(iv) trip-reduction ordinances;
(v) traffic flow improvement programs that achieve emission
reductions;
(vi) fringe and transportation corridor parking facilities serving
multiple-occupancy vehicle programs or transit service;
(vii) programs to limit or restrict vehicle use in downtown areas
or other areas of emission concentration particularly during periods of
peak use;
(viii) programs for the provision of all forms of high-occupancy,
shared-ride services;
(ix) programs to limit portions of road surfaces or certain
sections of the metropolitan area to the use of non-motorized vehicles
or pedestrian use, both as to time and place;
(x) programs for secure bicycle storage facilities and other
facilities, including bicycle lanes, for the convenience and protection
of bicyclists, in both public and private areas;
(xi) programs to control extended idling of vehicles;
(xii) reducing emissions from extreme cold-start conditions (newly
eligible);
(xiii) employer-sponsored programs to permit flexible work
schedules;
(xiv) programs and ordinances to facilitate non-automobile travel,
provision and utilization of mass transit, and to generally reduce the
need for SOV travel, as part of transportation planning and development
efforts of a locality, includ ing programs and ordinances applicable to
new shopping centers, special events, and other centers of vehicle
activity;
(xv) programs for new construction and major reconstructions of
paths,
[[Page 9048]]
tracks or areas solely for the use by pedestrian or other non-motorized
means of transportation when economically feasible and in the public
interest. For purposes of this clause, the Administrator shall also
consult with the Secretary of the Interior; and
(xvi) programs to encourage removal of pre-1980 vehicles (Excluded
from Eligibility).
3. Extreme Low-Temperature Cold Start Programs:
Projects intended to reduce emissions from extreme cold-start
conditions are now eligible for CMAQ funding. This TCM is listed in 42
U.S.C. 7408 (f)(1) and was heretofore excluded from eligibility for
CMAQ funding. Examples of such projects include:
Retrofitting vehicles and fleets with water and oil
heaters; and
Installing electrical outlets and equipment in publicly-
owned garages or fleet storage facilities (see also section below on
public-private partnerships for a possible expansion to privately-owned
equipment and facilities).
4. Public-Private Partnerships:
The TEA-21 provides greater access to CMAQ funds for projects which
are cooperatively implemented under agreements between the public and
private sectors and/or non-profit entities. The new statutory language
leads to several important changes regarding the eligibility of joint
public-private initiatives. Nevertheless, it remains the responsibility
of the cooperating public agency to apply for CMAQ funds through the
metropolitan planning process and to oversee and protect the investment
of Federal funds in a public-private partnership.
The TEA-21 requires that a legal, written agreement be in place
between the public agency and private or non-profit entity before
implementing a CMAQ-funded project. This provision supersedes the
requirement under previous guidance that private entities have public
agency sponsors before participating in CMAQ-funded projects. These
agreements should clearly specify the use to which CMAQ funding will be
put; the roles and responsibilities of the participating agencies;
cost-sharing arrangements for capital investments and/or operating
expenses; and how the disposition of land, facilities and equipment
will be effected should the original terms of the agreement be changed,
such as insolvency or a change in the ownership of the private entity.
While the new statute provides greater latitude in funding projects
initiated by private or non-profit entities, it also raises concerns
about the use of public funds to benefit a specific private entity.
Since the public benefit is air quality improvement, it is expected
that future funding proposals involving private entities will
demonstrate strong emission reduction benefits. Furthermore, this new
flexibility requires that greater emphasis be placed on an open,
participatory process leading up to the selection of projects for
funding. Because of concerns about the equitable use of public funds,
FHWA and FTA consider it essential that all interested parties have
full and timely access to the process of selecting projects for CMAQ
funding. This should involve open solicitation for project proposals;
objective criteria developed for rating candidate projects; and
announcement of selected projects.
The TEA-21 also contains some restrictions and special provisions
on the use of CMAQ funds in public-private partnerships. Eligible costs
under this section may not include costs to fund an obligation imposed
on private sector or non-profit entities under the CAA or any other
Federal law. For example, CMAQ funds may not be used to fund mandatory
control measures such as Stage II Vapor Recovery requirements placed on
fuel sellers. Energy Policy Act requirements which apply to private
sector entities are not eligible for CMAQ funds. However, if the
private or non-profit entity is clearly exceeding its obligations under
Federal law, CMAQ funds may be used for that incremental portion of the
project.
Decisions over which projects and programs to fund under CMAQ
should continue to be made through a cooperative process involving the
State departments of transportation, affected MPOs, transit agencies
and State and local air quality agencies. All projects funded with CMAQ
funds must be included in conforming transportation plans and TIPs in
accordance with the metropolitan planning regulations (23 CFR 450.300),
the transportation conformity requirements (40 CFR parts 51 and 93),
and NEPA requirements.
Activities eligible to be considered as meeting the local match
requirements under the public-private partnership provisions include:
Ownership or operation of land, facilities or other
physical assets;
Carrying out construction or project management; and
Other forms of participation approved by the U.S. DOT
Secretary.
The TEA-21 also contained special provisions for alternative fuel
projects that are part of a public-private partnership. For purchase of
privately-owned vehicles or fleets using alternative fuels, activities
eligible for CMAQ funding are limited to the Federal share of the
incremental cost of an alternative fueled vehicle compared to a
conventionally fueled vehicle. Further, if other Federal funds are used
for vehicle purchase in addition to CMAQ funds, such Federal funds must
be applied to the incremental cost before CMAQ funds are applied.
Cost sharing of total project expenses, both capital and operating,
is a critical element of a successful public-private venture. This is
even more important if the private entity is expected to realize
profits as part of the joint venture. State and local officials are
urged to consider a full range of cost-sharing options when developing
a public-private partnership, including a larger State/local match than
the usual 20 percent required under Federal law.
5. Alternative Fuels:
The purchase of publicly-owned, alternative fuel vehicles is
eligible for CMAQ funding (for information on eligible public-private
sector alternative fuel projects see the discussion on public-private
partnerships above).
Since all alternative fueled vehicles are not necessarily good for
air quality, proposals for alternative fuel conversion should be
coordinated with the State air agency and be aimed primarily at air
quality improvement. As with all CMAQ proposals, it must be
demonstrated that the proposed switch to alternative fuels is effective
in reducing the specific pollutant(s) causing the air quality
violation.
Fleet conversions no longer need to be specifically identified or
included in the SIP or maintenance plan in order to be eligible for
CMAQ funding. Consideration of such projects should be coordinated with
air quality agencies prior to selection for funding under the CMAQ
program. This coordination will ensure that such projects are
consistent with SIP strategies to attain the NAAQS or in maintenance
plans to ensure continued maintenance of the NAAQS.
The establishment of publicly-owned, on-site fueling facilities and
other infrastructure needed to fuel alternative-fuel vehicles are also
eligible expenses. If privately-owned fueling stations are in place and
are reasonably accessible and convenient, then CMAQ funds may not be
used to construct or operate publicly-owned fueling stations except
under a public-private partnership. Such an activity would interfere
with private enterprise, and needlessly use transportation/air quality
funds for services duplicated in the area.
6. Traffic Flow Improvements:
The metropolitan planning provisions of TEA-21 (23 U.S.C. 134(i)(3)
and 49 U.S.C. 5305) require that the
[[Page 9049]]
metropolitan planning process in all Transportation Management Areas
(metropolitan areas of 200,000 or more in population) include a
congestion management system.
Projects to develop, establish, and implement the congestion
management system for both highway and transit facilities, whether
under the provisions of 23 U.S.C. Secs. 134 or under a State's own
procedures, remain eligible for CMAQ funds where it can be demonstrated
that such use is likely to reduce transportation-related emissions.
In addition to traffic signal modernization, coordination, or
synchronization projects designed to improve traffic flow within a
corridor or throughout an area like a central business district,
Intelligent Transportation Systems (ITS), traffic management and
traveler information systems can be effective in reducing traffic
congestion, enhancing transit bus performance and improving air
quality. The following have the greatest potential for improving air
quality:
regional multi-modal traveler information systems;
traffic signal control systems;
freeway management systems;
transit management systems;
incident management programs;
electronic fare payment systems; and
electronic toll collection systems.
While interconnected traffic signal control systems and freeway
management systems have been recognized for their air quality
improvement benefits, other user services like electronic fare and toll
collection systems can be useful in reducing or eliminating air quality
``hot spots''. Individually, these core infrastructure elements can
reduce emissions and therefore qualify for CMAQ funding. However, when
linked together in a system, their benefits are likely to be greater.
Agencies seeking to implement ITS projects must demonstrate
consistency with the National ITS Architecture. This is addressed in
separate guidance.
Operating expenses for traffic flow improvements are eligible for
CMAQ funding where they can be shown to: (1) have air quality benefits,
(2) the expenses are incurred from new or additional services, and (3)
previous funding mechanisms, such as fares or fees for services, are
not displaced.
Since CMAQ-funded projects should contribute to the attainment or
maintenance of a NAAQS, it must be found that these operating costs are
necessary for the overall system to contribute to attainment or
maintenance of an ambient air quality standard. It is reasonable to
assume that, after several years, a transportation service may no
longer be considered to be an air quality improvement project, but that
it has become a part of the existing transportation network. Hence,
FHWA and FTA field offices are advised to use the consultation process
with EPA to make a determination that operating assistance for traffic
management systems, traveler information systems and other ITS projects
or programs, beyond the initial 3-year period of eligibility, will
assist in the attainment or maintenance of an air quality standard.
(Also see operating assistance eligibility discussion earlier in this
guidance.)
7. Transit Projects:
Improved public transit is one of the TCMs identified in section
108(f)(1)(A) of the CAA. However, not all transit improvements are
eligible under the CMAQ program. The general guideline for determining
eligibility is whether an increase in transit ridership can reasonably
be expected to result from the project. As with all CMAQ-funded
projects, this must be supported by a quantified estimate of the
emissions effects due to the project.
Facilities: New transit facilities are eligible if they are
associated with new or enhanced mass transit service. If the project is
rehabilitation, reconstruction, or maintenance of an existing facility,
it is not eligible since there would be no change in emissions caused
by the project. Other FTA grant programs can be used for upgrading
existing facilities.
Vehicles: Acquisition of new transit vehicles (bus, rail, van) to
expand the fleet are eligible. New vehicles acquired as replacements
for existing fleet vehicles are also eligible; however, diesel-powered
replacement vehicles will have minimal impact on attaining the ozone,
PM, and CO standards. For these projects in particular, emissions
effects must be documented so that they can be arrayed with other CMAQ
proposals and allow informed decisions on the best use of available
funds.
Operating Assistance: CMAQ funding can be used to support the
start-up of new transit services. In order to be eligible, the service
must be a discrete new addition to the system so that operating costs
can be easily identified. Operating assistance is for a maximum of 3
years, after which other sources of funding must be used if the service
is to be continued.
Fare subsidies: CMAQ funds may be used to subsidize regular transit
fares, but only if the reduced or free fare is part of an overall
program for preventing exceedances of a national air quality standard
during periods of high pollutant levels. Examples include metropolitan
areas that have implemented voluntary mobile source emission reduction
programs which promote a range of measures individuals can take to
reduce ozone-forming emissions. ``Ozone-action'' programs, designed to
avoid exceedances when ozone concentrations are high, are bolstered by
more permanent measures aimed at discouraging SOV driving. Refer to
section VII.12 for additional discussion of fare/fee subsidies.
8. Bicycle and Pedestrian Facilities and Programs:
Bicycle and pedestrian facilities and programs are included as a
TCM in section 108(f)(1)(A) of the CAA. Included as eligible projects
are:
construction of bicycle and pedestrian facilities;
non-construction projects related to safe bicycle use; and
establishment and funding of State bicycle/pedestrian
coordinator positions, as established in the ISTEA, for promoting and
facilitating the increased use of non-motorized modes of
transportation. This includes public education, promotional, and safety
programs for using such facilities.
9. Travel Demand Management:
Travel demand management encompasses a diverse set of activities
ranging from traditional carpool and vanpool programs to more
innovative parking management and road pricing measures. Many of these
measures are specifically referenced in the legislation creating the
CMAQ program. Travel demand management projects meeting the basic
eligibility requirements of the FHWA and FTA funding programs are
eligible for CMAQ funding. Eligible activities include: market research
and planning in support of travel demand management (TDM)
implementation; traffic calming measures; capital expenses required to
implement TDM measures; operating assistance to administer and manage
TDM programs for up to 3 years; as well as marketing and public
education efforts to support and bolster TDM measures.
Experience to date suggests that new transportation service has the
greatest chance of success if offered along with complementary measures
which discourage SOV use, such as parking restrictions or differential
parking fees. Several provisions in TEA-21 require metropolitan areas
to consider TDM measures in the planning process and this guidance
seeks to encourage their development and implementation.
With respect to traffic calming measures, such projects should be
examined on a case-by-case basis to assess eligibility. Not all traffic
calming
[[Page 9050]]
measures will lead to reduced emissions and States and MPOs should
analyze these projects in the local context in which they would be
implemented.
10. Outreach and Rideshare Activities:
Outreach activities, such as public education on transportation and
air quality, advertising of transportation alternatives to SOV travel,
and technical assistance to employers or other outreach activities
relating to promoting non-SOV travel options have been, and continue to
be, eligible for CMAQ funds. Such outreach activities may be funded
under the CMAQ program for an indefinite period.
Outreach activities differ fundamentally from the establishment of
transportation services. They are communication services that are
critical to successful implementation of transportation measures and
may equally affect new and existing transit, shared ride, I/M, traffic
management and control, bicycle and pedestrian, and other
transportation services. As such, they are intended to continue
reaching new audiences each time they are implemented, and restrictions
on the length of time they may be funded seems contrary to one of the
program's goals of effecting behavioral changes to reduce
transportation emissions.
Marketing Programs: Marketing programs to increase use of
transportation alternatives to SOV travel and public education
campaigns involving the linkage between transportation and air quality
are eligible operating expenses. Transit ``stores'' selling fare media
and dispensing route and schedule information which occupy leased space
are also eligible. In addition, programs to promote the recently
enacted Tax Code change related to commute benefits are eligible for
CMAQ funding. [Note: The Internal Revenue Code 26 U.S.C. Sec. 132(f))
allows employers to exclude up to $65 per month for transit and vanpool
expenses and up to $175 per month for qualified parking expenses from
an employee's gross income. (For taxable years after December 31, 2001,
the amount for transit and vanpooling increases to $100 per month and
is indexed for inflation (as is already the case for qualified parking
expenses) beginning for taxable years after December 31, 2002.) As a
result of TEA-21 amendments to the Code, employers may either provide
these benefits free to employees as a tax-free benefit, in addition to
existing compensation and benefits, or allow employees to use their own
gross income before taxes to purchase these benefits through their
employers, thus saving on taxes.]
Carpooling and Vanpooling: Carpool and vanpool programs include
computer matching of individuals seeking to carpool and employer
outreach to establish rideshare programs and meet CAA requirements.
These activities, even if they are part of an existing rideshare
program, are eligible for CMAQ funding. New or expanded rideshare
programs, such as new locations for matching services, upgrades for
computer matching software, etc. are also eligible and may be funded
for an indefinite period of time for both carpool and vanpool services.
The implementation of a vanpool operation entails purchasing or
leasing vehicles and providing a transportation service. Therefore,
proposals for vanpool activities such as these must be for new or
expanded service to be eligible and are subject to the 3-year
limitation on operating costs.
Under the CMAQ program, the purchase price of a publicly-owned
vehicle for a vanpool service does not have to be paid back to the
Federal Government. Requiring payback would place an additional
constraint to wider implementation and usage of vanpool programs.
Nonetheless, CMAQ funds should not be used to buy or lease vans that
would be in direct competition with and impede private sector
initiatives. Consistent with the statewide and metropolitan planning
regulation (23 CFR 450.300), States and MPOs should consult with the
private sector prior to using CMAQ funds to purchase vans, and if local
private firms have definite plans to provide adequate vanpool service,
CMAQ funds should not be used to supplant that service.
Transportation Management Associations: Transportation Management
Associations (TMAs) are comprised of groups of individuals, firms or
employers who organize to address the transportation issues in their
immediate locale. The CMAQ funds may be used for the establishment of
TMAs provided that the TMA performs a specified purpose in the project
agreement that will be part of any air quality improvement strategy.
The TMAs can play a useful role in brokering transportation services to
private employers, and CMAQ funds may be used to contract with TMAs for
this purpose. Eligible costs include coordinating and marketing
rideshare programs, providing shuttle services, developing parking
management programs, etc. Eligible expenses for reimbursement of
associated TMA start-up costs are limited to 3 years.
11. Telecommuting:
The DOT supports the establishment of telecommuting programs.
Planning, technical and feasibility studies, training, coordination,
marketing and promotion are eligible activities under CMAQ. Physical
establishment or construction of telecommuting centers, computer and
office equipment purchases and related activities are not eligible.
12. Fare/Fee Subsidy Programs:
The CMAQ program allows funding for user fare or fee subsidies in
order to encourage greater use of alternative travel modes (e.g.,
carpool, vanpool, transit, bicycling and walking). This policy has been
established to encourage areas to take a more comprehensive approach--
including both supply and demand measures--in reducing transportation
emissions.
Transit Services: CMAQ funds can be used to subsidize transit fares
only if the reduced fare is offered as a component of a comprehensive,
targeted program to reduce SOV use during episodes of high pollutant
concentrations. (Also see Transit Project eligibility section.)
Other Demand Management Strategies: CMAQ funds can be used to
subsidize fares or fees for vanpools, shuttle services, flat-fare taxi
programs and other demand management strategies. Examples of how the
fare/fee subsidy might be used include: a program subsidizing empty
seats during the formation of a new vanpool; reduced fares for shuttle
services within a defined area, such as a flat-fare taxi program; or
providing financial incentives for carpooling, bicycling, and walking
in conjunction with a commuter choice or other program such as those
described under Outreach and Rideshare Activities above.
Other components of fare/fee subsidy programs include public
information and marketing of non-SOV alternatives, parking management
measures, employer-based commuter choice programs, and better
coordination of existing transportation services. Fare/fee subsidies
under the CMAQ program are intended as short-term incentives. As with
operating assistance, there is a maximum 3-year time limit.
13. Intermodal Freight:
The CMAQ funds have been, and continue to be, used for improved
intermodal freight facilities where air quality benefits can be shown.
Capital improvements as well as operating assistance meeting the
conditions of this guidance are eligible.
14. Planning and Project Development Activities:
Project development activities that lead to construction of
facilities or new
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services and programs with air quality benefits, such as preliminary
engineering or project planning studies are eligible. This includes
studies for the preparation of environmental or NEPA documents and
related transportation/air quality project development activities.
Project development studies directly related to a TCM are also
eligible. In the event that air quality monitoring is necessary to
determine the air quality impacts of a proposed project which is
eligible for CMAQ funding, the costs of that monitoring are also
eligible. As is the case with all CMAQ funded activities, all projects
proposed for funding must be included in the MPO Plan and TIP and must
meet the metropolitan planning requirements.
General planning activities, such as economic or demographic
studies, that do not directly propose or support a transportation/air
quality project or are too far removed from project development to
ensure any emission reductions are not eligible for funding. Funding
for preparation of NEPA or other environmental documents that are not
related to a transportation project to improve air quality is also
ineligible. Such activities should be funded with other appropriate
title 23 or title 49 FTA funds.
Region- or area-wide air quality monitoring is not eligible because
such projects do not themselves yield air quality improvements nor do
they lead directly to projects that would yield air quality benefits.
Air quality monitoring is normally a State air quality agency
responsibility which is funded under section 105 of the CAA. If the MPO
or State chooses, air quality monitoring could also be funded as a
transportation planning activity and appropriate title 23 funds used.
15. I/M Eligibility:
Emission I/M programs and related activities show strong potential
for improving air quality and are cost-effective uses of CMAQ funds.
Recognizing this, construction of facilities and purchase of equipment
for I/M stations are eligible for CMAQ funds. Projects necessary for
the development of these I/M programs and one-time start-up activities,
such as updating quality assurance software or developing a mechanic
training curriculum, are also eligible activities. Operating expenses
are eligible for CMAQ funding subject to the general conditions
applying to all new transportation services. Specifically, the I/M
program must constitute new or additional efforts; existing funding
(including inspection fees) should not be displaced, and operating
expenses are only eligible for 3 years.
Funds under the CMAQ program may be used for the establishment of
I/M programs at publicly-owned I/M facilities. Publicly-owned I/M
facilities may be constructed, equipment may be purchased, and the
facility operated for up to 3 years with CMAQ funds, provided that the
conditions covering operations described above are met.
The establishment of I/M programs at privately-owned stations, such
as service stations that own the equipment and conduct emission test-
and-repair services, can only be funded under the CMAQ program under
the provisions covering ``public-private partnerships'' contained in
this guidance. However, if the State relies on private stations, State
or local administrative costs for the planning and promotion of the
State's I/M program may be funded under the CMAQ program.
The establishment of ``portable'' I/M programs is also eligible
under the CMAQ program, provided that they are public services,
contribute to emission reductions and do not conflict with statutory I/
M requirements or EPA implementing regulations. Like all CMAQ-funded
projects, these programs must meet any relevant NEPA requirements and
must be included in the area's plan and TIP before they can be funded.
16. Magnetic Levitation Transportation Technology Deployment
Programs:
CMAQ funds may be used to fund a portion of the full project costs
(including planning, engineering, and construction) pursuant to section
1218--Magnetic Levitation Transportation Technology Deployment Program
of TEA-21 (23 U.S.C. 322) and in accordance with the provisions of
section 1218.
17. Experimental Pilot Projects:
States and local areas have long experimented with various types of
transportation services--and different means of employing them--in an
effort to better meet the travel needs of their constituents. These
``experimental'' projects may not meet the precise eligibility criteria
for Federal and State funding programs, but they may show promise in
meeting the intended public purpose of those programs in an innovative
way. The FHWA and FTA have supported this approach in the past and
funded some of these projects as demonstrations to determine their
benefits and costs.
The CMAQ provisions of TEA-21 allow experimentation provided that
the project or program can reasonably be defined as a
``transportation'' project and that emission reductions can reasonably
be expected ``through reductions in vehicle miles traveled (VMT), fuel
consumption or through other factors.'' This guidance encourages States
and MPOs to creatively address their transportation/air quality
problems and to experiment with new services, innovative financing
arrangements, public-private partnerships and complementary approaches
that constitute comprehensive strategies to reduce emissions through
transportation programs. The CMAQ program can be used to support a well
conceived project even if the proposal may not otherwise meet the
eligibility criteria of this guidance. Proposals submitted for funding
under this provision should show promise in reducing transportation
emissions in nonattainment or maintenance areas and should have the
concurrence of the MPO, State transportation agency and the FHWA/FTA.
Such proposals must also be coordinated with EPA and State/local air
quality agencies.
While the CMAQ provisions of TEA-21 were written broadly to
encourage an innovative approach, the principles of sound program
management must still be followed. Under this approach, there will
likely be proposals for funding with which transportation agencies have
little experience. As such, before-and-after studies are required to
determine the actual project impacts on the transportation network
(measured in VMT or trips reduced, or other appropriate measure) and on
air quality (emissions reduced). An assessment of the project's
benefits should be forwarded to FHWA or FTA documenting the immediate
impacts as well as a projection of the project's long-term benefits.
All projects funded under this section should be explicitly
identified in the annual report of CMAQ activities as required under
section IX of this guidance. In future years, when before-and-after
studies are complete, a summary of the actual project benefits should
also be included in the annual report. The amount obligated for
proposals made pursuant to this section should not exceed 25 percent of
a State's yearly CMAQ apportionment.
VIII. Project Selection Process--General Conditions
Proposals for CMAQ funding should include a precise description of
the project, providing information on the project's size, scope and
timetable. Also, an assessment of the proposal's expected emission
reductions in accordance with the provisions
[[Page 9052]]
described below is required. States, MPOs, and transit agencies are
encouraged to develop procedures for assessing the emission reduction
benefits of CMAQ projects. States are also required to submit annual
reports detailing the obligations made under the CMAQ program during
the previous fiscal year.
Air Quality Analysis
1. Quantitative Analyses:
Quantitative assessment of how the proposal is expected to reduce
emissions is extremely important to assist areas in developing and
funding the most effective projects in nonattainment and maintenance
areas. They also provide an objective basis for comparing the costs and
benefits of competing proposals for CMAQ funding. SinceStates are
required to submit annual reports (see discussion below), analysis of
air quality benefits for individual project proposals will assist in
their preparation. It is particularly important to assess and quantify
the benefits of projects that increase or improve basic transportation
services. This includes assessing emission reductions of transit,
traffic flow improvements, ITS projects and programs, ridesharing,
bicycle and pedestrian improvements. In addition, analyses are expected
for conversions to alternative fuels and for I/M programs.
Decisions regarding the level and type of air quality analysis
needed, as well as the credibility of its results, are left to FTA and
FHWA field staff, in consultation with EPA. Across the country, State
and local transportation/air quality agencies have different
approaches, analytical capabilities and technical expertise with
respect to such analysis. At the national level, it is not feasible to
specify a single method of analysis applicable in all cases.
While no single method is specified, every effort must be taken to
ensure that determinations of air quality benefits are credible and
based on a reproducible and logical analytical procedure that will
yield quantitative results of emission reductions. Of course, if an air
quality analysis has been done for other reasons, it may also be used
for this purpose.
2. Qualitative Assessment:
Although quantitative analysis of air quality impacts is required
whenever possible, some improvements may not lend themselves to
rigorous quantitative analysis because of the project's characteristics
or because practical experience is lacking to adequately analyze the
project. In these cases, a qualitative assessment based on a reasoned
and logical examination of how the project or program will decrease
emissions and contribute to attainment or maintenance of a NAAQS is
appropriate and acceptable.
Public education, marketing and other outreach efforts fall into
this category. The primary benefit of these activities is enhanced
communication and outreach that is expected to influence travel
behavior, and thus, air quality. Yet tracing the benefits to air
quality through the intervening steps requires a multi-disciplinary
approach that incorporates market research analysis, base case
documentation, surveying, and other analytical techniques which may not
be readily available to many transportation agencies. As such, these
projects which can include advertising alternatives to SOV travel,
employer outreach, public education campaigns, and communications or
outreach to the public during ``ozone alerts,'' or similar programs do
not require a quantitative analysis of air quality benefits.
3. Analyzing Groups of Projects:
In many situations, it may be more appropriate to examine the
impacts of more comprehensive strategies to improve air quality by
grouping TCMs. A strategy to reduce reliance on single-occupant
vehicles in a travel corridor, for example, could include transit
improvements coupled with demand management. The benefits of such a
strategy should be evaluated together rather than as separate projects.
Transit improvements, ridesharing programs or other TCMs affecting an
entire region may be best analyzed in this fashion.
IX. Program Oversight Responsibility
Annual Reports
To assist in meeting statutory obligations, States are required to
prepare annual reports for FHWA, FTA, and the general public that
specify how CMAQ funds have been spent and the expected air quality
benefits. Annual reporting enhances accountability and the annual
report enables FHWA and FTA to be responsive to the Congress on the
utilization of CMAQ funds and their impact.
This report should be provided by the first day of February
following the end of the previous Federal fiscal year (September 30)
and cover all CMAQ obligations for that fiscal year. The report should
include:
1. A list of projects funded under CMAQ, best categorized by one of
the following eight project types:
public-private partnerships;
experimental pilot projects;
transit: facilities, vehicles and equipment, operating
assistance for new transit service, etc;
shared-ride: vanpool and carpool programs and parking for
shared-ride services, etc;
traffic flow improvements: traffic management and control
services, signalization projects, ITS projects, intersection
improvements, and construction or dedication of HOV lanes, etc;
demand management: trip reduction programs, transportation
management plans, flexible work schedule programs, vehicle restriction
programs, etc.;
pedestrian/bicycle: bikeways, storage facilities,
promotional activities, etc; and
I/M and other TCMs (not covered by the above categories).
For reporting purposes, project developmental activities, as well
as public education, marketing and other outreach efforts that are
eligible under the CMAQ program should be reported in the same category
as the project or program they support.
2. The amount of CMAQ funds obligated for each project (or project
category where groups of projects are analyzed together) for the year,
disaggregated by the categories of projects listed above; and
3. A tabulation of the estimated emissions benefits for each
project (or group of projects) for the year summed from project-level
analyses and expressed as reductions of ozone precursors (volatile
organic compounds and nitrogen oxides), CO, or PM-10. These reductions
should be expressed as kilograms per day removed from the atmosphere.
Note that the annual report should now specifically include and
identify any projects funded under the Experimental Pilot Projects
provision of this guidance as well as the newly eligible public-private
partnerships (see section VII). Summaries of before-and-after studies
should be included as they become available.
Federal Agency Responsibilities and Coordination
The FTA and FHWA field offices should establish a consultation and
coordination process with their respective EPA regional offices for
early review of CMAQ funding proposals. Review by EPA is critical to
assist the determination of whether the CMAQ-proposed projects will
have air quality benefits and to help assure that effective projects
and programs are approved for CMAQ funding. Proposals for funding
should be forwarded to EPA as soon as possible to ensure timely review.
Where Memorandum of Understanding (MOU) are in place to facilitate
Federal agency
[[Page 9053]]
review, such MOUs should be updated as needed.
Either the local FTA or FHWA office will be responsible for project
administration. In cases where the project is clearly related to
transit, FTA will determine the project's eligibility and administer
the project. Similarly, traffic flow improvements that improve air
quality through operational improvements of the road system are be
administered by FHWA. For projects that include both traffic flow and
transit elements, such as park-and-ride lots and intermodal projects,
the administering agency will be decided on a case-by-case basis.
Following initial review by the administering agency and consultation
with EPA, the administering agency makes the final determination on
whether the project or program is likely to contribute to attainment of
a NAAQS and is eligible for CMAQ funding. The consultation process
should provide for timely review and handling of CMAQ funding
proposals.
State and MPO Responsibilities
Decisions over which projects and programs to fund under CMAQ
should be made through the appropriate metropolitan and/or statewide
planning process which would include the involvement of State and local
air quality agencies. This process serves to develop a pool of
potential CMAQ projects to be considered for funding in a State's
nonattainment and maintenance areas. States, MPOs and transit agencies,
in consultation with air quality agencies, are encouraged to
cooperatively develop criteria for selection of CMAQ projects. The
programming of CMAQ projects should be consistent with the appropriate
metropolitan plan.
Projects to be funded with CMAQ funds must be included in the plans
and TIPs that are developed by the MPOs in cooperation with the State
and transit operators. Under the metropolitan planning regulations (23
CFR 450.300), TIPs must contain a priority list of projects to be
carried out in the 3-year period following adoption. As a minimum,
projects must be identified by year and proposed funding source. For
projects targeting CMAQ funds, priority in the TIP should be based on
the projects' estimated air quality benefits.
Since the TIPs must be consistent with available funding, it is
important that the State advise the MPOs of the estimated amount of
CMAQ funds in a timely manner. Once CMAQ projects are included in a TIP
(approved by the MPO and the Governor), and included in a FHWA/FTA-
approved statewide TIP, those projects in the first year may be
implemented. Projects in the second or third year of the TIP could be
advanced for implementation using the specified project selection
procedures in the planning regulation.
It is the State's responsibility to manage its obligation authority
made pursuant to title 23 to ensure that CMAQ (and other Federal-aid)
funds are obligated in a timely fashion and do not lapse. Other
provisions affecting the overall Federal-aid program, such as advance
construction authority, apply to the CMAQ program as well.
Close coordination is needed between the State and MPO to assure
that CMAQ funds are used appropriately and to maximize their
effectiveness in meeting the CAA requirements. States and MPOs must
fulfill this responsibility so that nonattainment and maintenance areas
are able to make good-faith efforts to attain and maintain the NAAQS by
the prescribed deadlines. State DOTs and MPOs should consult with State
and local air quality agencies to develop an appropriate project list
of CMAQ programming priorities which will have the greatest impact on
air quality.
[FR Doc. 00-4224 Filed 2-22-00; 8:45 am]
BILLING CODE 4910-22-P