Transportation Allocation Act

Introduction

The language for the Transportation Allocation Act was taken from SB 45, enacted in California in 1997. SB 45 dramatically increased the role of regional transportation planning agencies (RTPAs) and metropolitan planning organizations (MPOs) by allocating the majority of California’s transportation funds directly to local entities. Under SB 45, three-quarters of State Transportation Improvement Program funds (including all State Highway Account, Public Transportation Account, and federal transportation funds, minus state administrative and other costs) are committed to regional improvement programs – the remaining 25 percent funds interregional improvement programs administered by the state. Regional improvement programs are developed by RTPAs and MPOs. Their focus is on improving state highways, local roads, public transit, intercity rail, pedestrian, bicycle, and all intermodal forms of transportation and safety. The following bill text highlights key provisions state legislatures should consider to increase the flexibility and power of RTPAs and MPOs in adopting transportation improvements. Because of the transportation funding variability from state to state, it is important to note that the text may need to be altered to address the specifics of your state transportation system.

Bill Text

The Transportation Allocation Act

An Act to revise the existing process for estimating the amount of state and federal funds to be available for transportation projects in the state, and for appropriating and allocating the available funds to those projects on a local, metropolitan, and regional level.

The people of the state of <insert your state’s name>, represented by the state Legislature, do enact as follows:

Section 1. Short Title.

This Act shall be known and may be cited as the “Transportation Allocation Act.”

Section 2. Definitions.

(A) “Alternative transportation projects” refer to construction projects that seek to reduce traffic congestion and provide alternatives to automobile use. They include, but are not limited to, pedestrian and bicycle infrastructure improvements and park and ride lots. They do not include highway maintenance construction projects.

(B) “Commission” means the State Transportation Commission <or your state’s equivalent entity>;

(C) “Department” means the State Department of Transportation <or your state’s equivalent agency>;

(D) “Independent transportation projects” refers to projects related to transportation that have not been considered in the context of a regional or interregional transportation plan.

(E) “Intermodal transportation” refers to use of more than one means of transport, including, but not limited to, bus, rail, park and ride lots, and pedestrian walkways.

(F) “Interregional transportation plan” is a long-term plan for transportation infrastructure, maintenance, and funding for transport between regions.

(G) “Metropolitan Planning Organization” or “MPO” is a federally required transportation planning body in urban areas with a population greater than 50,000, comprised of elected and appointed officials representing local, state, and federal governments or agencies having interest or responsibility in transportation planning and programming. The MPO is responsible for the development of a Long Range Transportation Plan (LRTP), the Transportation Improvement Program (TIP), and a Unified Planning Work Program (UPWP) for its metropolitan planning area. The adoption of these documents is a prerequisite for the receipt of both federal transit and federal highway funding.

(H) “Passenger transit system” refers to any mass transit systems, like bus and rail, intended to transport people and services within regions, cities, and interregionally.

(I) “Regional planning organization” refers to any organization created to facilitate infrastructure planning within regions. They can include regional councils, planning and development councils, planning and development commissions, councils of local governments, economic development districts, and any other planning agency created with the intent of representing local, municipal, and county planning interests within a designated region.

(J) “Regional transportation plan” is a long-term plan for transportation infrastructure, maintenance, and funding for transport within a region.

(K) “State transportation improvement program” or “STIP” refers to the compilation of metropolitan planning organizations’ transportation improvement plans, unmodified, as mandated by the federal TEA-21 regulations in the United States Code subparagraph (f), Section 135 of Title 23.

(L) “Transportation capital improvements” refers to the list of capital projects for a specified programming period that are intended to reduce traffic congestion aimed at encouraging intermodal forms of transportation and achieving a coordinated and balanced regional and interregional transportation system, including, but not limited to, mass transportation, highway, railroad, maritime, bicycle, pedestrian, goods movement, highway maintenance, and aviation facilities and services.

(M) “Urbanized area” is an area, as defined by the U.S. Census Bureau, that includes one or more incorporated cities, villages, and towns that together have a minimum of 50,000 persons.

Section 3. Intent.

The Legislature of the state of <insert your state’s name> declares that this Act is intended to give more control to regional planning organizations, MPOs, and local governments in proposing, adopting, and implementing transportation capital improvement projects, and encourages the construction and improvement of intermodal transportation projects like passenger transit systems and other alternative transportation projects. To accomplish these goals, this Act suballocates 25 percent of all available transportation funds to interregional transportation and the remaining 75 percent to regional planning organizations, MPOs, and local governments.

Section 4. Findings and Purpose.

The Legislature makes the following findings:

(A) Historically, the majority of transportation funds have been dispersed to fund highway construction and improvements, with little attention paid to specific regional and local needs;

(B) State transportation funds are generally earmarked for state highway projects, while regional planning organizations, cities, municipalities, and MPOs are more likely to support intermodal forms of transportation like passenger transit systems and alternative transportation projects;

(C) The Legislature desires to allocate resources directly to regional planning organizations and MPOs and to increase the availability of funds for intermodal transportation;

(D) The Legislature desires to encourage the construction of passenger transit systems and transportation alternatives by making the necessary funds available to regional planning organizations and MPOs; and

(E) The Legislature desires to facilitate congestion relief and infrastructure improvement at the interregional and regional level to continue to encourage future growth and make the state of <insert your state’s name> competitive in the evolving world economy.

Section 5. Guidelines for the State Transportation Improvement Plan.

(A) The Department, in cooperation with the Commission <or your state’s equivalent entity>, regional planning organizations, and MPOs, shall evaluate the state’s current guidelines for the development of the state transportation improvement program and the incorporation of projects into the state transportation improvement program and shall amend them accordingly to be consistent with the changes made by this Act.

(B) The guidelines shall include, but not be limited to, all of the following:

(1) Standards for project deliverability;

(2) Standards for identifying projects and project components;

(3) Standards for cost estimating;

(4) Programming methods for increases and schedule changes; and

(5) Objective criteria for measuring system performance and cost-effectiveness of candidate projects.

(C) New proposed guidelines shall be submitted to the Commission within 180 days after passage of this Act. After conducting necessary public hearings pursuant to <insert appropriate state administrative law reference>, the Commission shall adopt the guidelines within one year after passage of this Act.

(D) The guidelines shall be the complete and full statement of the policy, standards, and criteria that the Commission intends to use in selecting projects to be included in the state transportation improvement program.

Section 6. Interregional Transportation Plan.

(A) Not later than <insert effective date here>, biennially thereafter, and after consulting with the regional planning organizations and MPOs, the Department shall submit to the Commission its interregional improvement program consisting of all of the following:

(1) Projects to improve state highways;

(2) Projects to improve passenger transit systems, including, but not limited to, other alternative transportation projects;

(3) Projects to improve interregional movement of people, vehicles, and goods; and

(4) Projects included in the interregional improvement program shall be consistent with the adopted regional transportation plan and its guidelines pursuant to Section 7 of this Act.

(B) The Department shall be responsible for adopting and implementing interregional transportation plans and shall administer funds accordingly.

Section 7. Regional Transportation Plan.

(A) In consultation with each other, regional planning organizations and MPOs shall prepare and adopt a regional transportation plan directed at achieving a coordinated and balanced regional transportation system consisting of the following:

(1) Projects to create and or improve passenger transit systems and alternative transportation projects;

(2) Projects to improve local and state roadways and highways; and

(3) Projects to improve regional movement of people, vehicles, and goods.

(B) In consultation with one another, regional planning organizations and MPOs shall adopt and submit, biennially, an updated regional transportation plan to the <insert your state’s name> Department of Transportation <or your state’s equivalent department>. The updated plan shall be consistent with federal planning and programming requirements specified in Section 134 of Title 23 of the United States Code. A regional planning organization that does not contain an MPO or urbanized area may at its option adopt and submit a regional transportation plan once every four years beginning with December 1, <insert year>, the year after passage of this Act. Prior to adoption of the regional transportation plan, a public hearing shall be held, after the giving of notice of the hearing by publication in the affected county or counties pursuant to <insert appropriate section of state administrative law>.

(C) After consultation with other regional and local transportation agencies, each regional planning organization and MPO, whose planning area includes a primary air carrier airport, shall, in conjunction with its preparation of an updated regional transportation plan, include an airport ground access improvement program.

(1) The program shall address the development and extension of passenger transit systems and other transportation alternatives, major arterial and highway widening and extension projects, and any other ground access improvement projects the regional planning organization and MPO deem appropriate;

(2) Highest consideration shall be given to mass transit for airport access improvement projects in the program; and

(3) If federal funds are not available to a transportation planning agency for the costs of preparing or updating an airport ground access improvement program, the agency may charge the operators of primary air carrier airports within its planning area for the direct costs of preparing and updating the program. An airport operator against whom charges are imposed pursuant to this section shall pay the amount of those charges to the transportation planning agency.

Section 8. Funding Appropriation.

(A) All funds that are available to the state for transportation capital improvement projects shall be designated and expended for the following program categories:

(1) Twenty-five percent for interregional transportation capital improvements;

(2) Seventy-five percent for regional transportation capital improvements;

(3) Not less than 15 percent of the amount of funds designated for interregional capital improvements under paragraph (1) of this subsection shall be designated for passenger transit systems and transportation alternatives; and

(4) Not less than 15 percent of the amount of funds designated for regional transportation capital improvements under paragraph (2) of this subsection shall be designated for passenger transit systems and transportation alternatives.

Section 9. Funding Use Prioritization.

(A) State transportation funds shall be programmed, budgeted, and expended to maximize the use of federal funds and shall be based on the following sequence of priorities:

(1) Transportation capital improvements that expand capacity and / or reduce congestion including passenger transit systems and transportation alternatives, but may not include highway construction projects eligible for funds under paragraph (2) of this subsection;

(2) Operation, maintenance, and rehabilitation of the state highway system;

(3) Safety improvements where physical changes, other than adding additional lanes, would reduce fatalities and the number and severity of injuries; and

(4) Environmental enhancement and mitigation programs.

(B) The annual transportation budget shall align with the adopted state transportation improvement program.

(C) The budget shall not include specific appropriations for independent transportation projects and the Legislature shall not enact legislation containing independent transportation projects.

Section 10. Severability.

If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity shall not affect other provisions or applications of this Act, which can be given effect without regard to the invalid provision or application and, to this end, the provisions of this Act are severable.

Section 11. Effective Date.

This Act shall take effect immediately upon its passage.