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HomeMy WebLinkAboutAgenda - 11-22-2004-d1ORANGE COUNTY BOARD OF COUNTY COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: November 22, 2004 Action Agenda Item No. D • 1 SUBJECT: Report on Congestion Mitigation and Air Quality (CMAQ) funding options DEPARTMENT: Planning and Inspections ATTACHMENT(S): Federal Guidance on Project Eligibility Provisions Memo from NCDOT Transportation Planning Branch PUBLIC HEARING: (Y /N) INFORMATION CONTACT: Craig Benedict, ext. 2592 Karen Lincoln, ext. 2594 TELEPHONE NUMBERS: Hillsborough Chapel Hill Durham Mebane 732 -8181 968 -4501 688 -7331 (336)227 -2031 PURPOSE: To receive a report on the Congestion Mitigation and Air Quality (CMAQ) program, and identify potential projects for which Orange County may apply for CMAQ funding. BACKGROUND: The North Carolina Department of Transportation ( NCDOT) has issued a call for projects to be included in the CMAQ program, which funds transportation projects and programs that reduce transportation - related emissions in non- attainment and maintenance areas. The deadline for CMAQ applications to be submitted to NCDOT is .January 24, 2005, NCDOT has targeted CMAQ Program allocations of $7,503,584 and $481,269, respectively for Durham - Chapel Hill - Carrboro Metropolitan Planning Organization (DCHC) and Triangle Area Rural Planning Organization (TARPO). The targeted allocations are for a 7 -year period and funding will be reallocated after the Environmental Protection Agency (EPA) designates particulate matter (PM2 5) non- attainment areas. Allocations are based on population in non - attainment and maintenance areas and severity of the air quality problem. The Triangle Ozone Non- Attainment Area is a basic (sub - marginal) area. A complete list of eligible activities and projects is provided in Attachment 1. The following lists typical projects for consideration: Transportation Control Measures: a) programs for improved public transit; b) restriction of certain roads or lanes to, or construction of such roads or lanes for use by, passenger buses or HOV; c) employer -based transportation management plans, including incentives; d) trip - reduction ordinances; e) traffic flow improvement programs that achieve emission reductions; f) fringe and transportation corridor parking facilities serving multiple - occupancy vehicle programs or transit service; GAComprehensive Planning Div \GENE\2004 Public Hearings \Nov 22 \CMAQ \CMAQReportAbsl 12204 . DOC 2 g) programs for the provision of all forms of high - occupancy, shared -ride services; h) 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; i) employer- sponsored programs to permit flexible work schedules; j) 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, including programs and ordinances applicable to new shopping centers, special events, and other centers of vehicle activity; 2. Alternative Fuels 1 Traffic Flow Improvements (electronic fare payment systems qualify under this heading) 4, Transit Projects: a) Facilities b) Vehicles c) Operating Assistance d) Fare subsidies 5, Bicycle and Pedestrian Facilities and Programs: a) construction of bicycle and pedestrian facilities b) non - construction projects related to safe bicycle use 6. Outreach and Rideshare Activities: a) Marketing Programs b) Carpooling and Vanpooling c) Transportation Management Associations Attachment 2 is a memorandum from NCDOT Transportation Planning Branch that provides guidelines for the CMAQ project selection process. Orange County projects will be submitted through DCHC and TARPO. DCHC and TARPO will prioritize projects based on air quality emissions benefits, DCHC or TARPO priorities and cost of construction, and will select and submit the highest ranked projects from their area to NCDOT. Some possibilities for CMAQ applications are: • purchase of alternative fuels vehicles; • development of a transportation center at Water Stone; • new transit service to connect the transportation center with the new justice facility and other areas in Hillsborough; • development of an east -west transit route along US 70 to connect Alamance, Orange, and Durham Counties, Planning, Environment and Resource Conservation, Orange Public Transportation, and Purchasing are working in partnership with the Town of Hillsborough to develop the most viable applications for program funding. Details will be presented at the meeting, Likewise, as the process proceeds input and support will be solicited from other agencies such as (but not limited to) Walkable Hillsborough and the Chamber of Commerce, FINANCIAL IMPACT: If Orange County applies for and receives CMAQ funds, there will be a 20% local match requirement. In some instances, the local match can be met by ownership or operation of land, facilities or other physical assets. RECOMMENDATION(S): The Administration recommends that the Board receive the report on the Congestion Mitigation and Air Quality (CMAQ) program, and direct staff how to proceed, GAComprehensive Planning Div \GENE \2004 Public Hearings \Nov 22 \CMAQ \CMAQReportAbs 112204 DOC VII. PROJECT ELIGIBILITY PROVISIONS Projects Not Eligible for CMAQ Funding As was the case under the Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA), 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 or 49 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 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 -217. 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 Rule8 Projects need to be included in TIPs or state -wide transportation improvement projects developed by MPOs or States respectively, under the metropolitan or statewide planning regulations9. Projects also M 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. Publicprivate 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 5 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, including 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, 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 remove 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 nonprofit 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 11 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 publicprivate 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(1)(3) and 49 U.S.C, §5305) require that the 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. § §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. M Agencies seeking to implement ITS projects must demonstrate consistency with the National ITS Architecture. This is address 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 iul 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 VI1.12 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 nonmotorized 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 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. 11 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 10 change related to commute benefits are eligible for CMAQ funding, 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 11, 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 ivi 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 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 13 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 agencyresponsibility 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 IN 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 -awned 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. M 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 -2112 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 0 .30.v1 - I-Ac- STATE OF NORTH CAROLINA DEPARTMENT OF TRANSPORTATION MICHAEL, F., EASLEY GOVERNOR MEMORANDUM TO: FROM: LYNDO THTM SECRETARY October 20, 2004 CMAQ Eligible MPOs and RPOs 7amal S. Alavi, P.E. Transportation Planning Branch Guidelines for the CMAQ Project Selection Process As you may know, Congestion Mitigation and Air Quality's (CMAQ's) primary purpose is to fund transportation projects and programs in non- attainment and maintenance areas, which reduce transportation- related emissions. In order to facilitate coordination and cooperation with the MPOs and RPOs, we have developed new guidelines for the CMAQ application and project selection process. These guidelines are subject to the approval of the Board of Transportation. The attached guidelines provide information on the CMAQ program including: • Project Selection Process • CMAQ Eligible Areas of the State • CMAQ Target Allocations for MPOs, RPOs and Statewide (revised 10- 21 -04) • CMAQ Timeline • CMAQ Application (available electronically) Please review the material and call Cynthia Muldrow or myself at 919 -715 -5482 ext..379 and 393 respectively with any questions you may have. CC: Mike Bruff, P.E. Lori Cove, P.E. Cynthia Muldrow File: CMAQ Process MAILING ADDRESS: NC DEPARTMENT OF TRANSPORTATION TRANSPORTATION PLANNING BRANCH 1554 MAIL SERVICE CENTER RALEIGH NC 276991559 TELEPHONE: 919433-0705 FAX 919733 -2417 WESSITE WWWDOT.STATE.NC.US LOCATION: TRANSPORTATION BOILOING 1 SOUTH WILMINGTON STREET RALEIGH NC 15 16 Guidelines for the CMAQ Project Selection Process CMAQ Background CMAQ was created by IS TEA of 1991, reauthorized by TEA -21, expected to continue in the SAFETEA CMAQ's primary purpose is to fund transportation projects and programs in Non - attainment and maintenance areas to help achieve and maintain the National Ambient Air Quality Standards (NAAQS) for Ozone, CO, and upcoming PM 2 5 FHWA and FTA jointly administer CMAQ in consultation with EPA CMAQ Funds are apportioned to States based on: • Population in non - attainment and maintenance areas of the state • Severity of air quality problem In North Carolina, CMAQ funds are outside the Equity Formula CMAQ Eligible Counties in NC (See attached Map) CabamLs, Gaston, Iredell, Lincoln, Mecklenburg, Rowan and Union Davidson, Davie, Forsyth and Guilford Chatham, Durham, Franklin, Granville, Johnston, Orange, Person, and Wake Edgecombe and Nash Haywood and Swain CMAQ Project Selection Process Statewide Projects: Statewide projects are those projects that benefit multi -jurisdictions (more than one air quality region), have true statewide benefits and can not be considered as local projects. Statewide projects should be sent to the Systems Planning Unit of TPB directly CMAQ Review Committee will discuss the statewide projects and make recommendations to the NCDOT Secretary and the Board of Transportation for their approval 17 Local Projects: 1. MPOs and RPOs will receive CMAQ candidate projects from project sponsors (e.g. MPOs, regional transportation authorities, city officials, etc.) in all non- attainment and CMAQ eligible regions of the state. 2. MPOs and RPOs should prioritize all CMAQ projects based on: • Air Quality emissions benefits • MPO's and RPO's priorities • Cost of construction 3. The MPOs and RPOs will select and submit the highest ranked project(s) for their area to the Systems Planning Unit of Transportation Planning Branch, NCDOT. Cost of the project(s) must be within the target allocation for the individual WO or RPO. Proposed implementation schedule for each project should be included. 4. CMAQ Review Committee will discuss the top ranked CMAQ projects and make recommendations to the NCDOT Secretary and the Board of Transportation for their approval. CMAQ Review Committee Members include: • NCDOT (TPB & Program Development Branch) • NCDENR (Division of Air Quality) • FHWA • FTA • MPO Association President • RPO Association President 5, CMAQ Review Committee Members will recommend projects based on eligibility rules, emissions benefits, cast, and other applicable criteria 6. The Program Development Branch of NCDOT will include the project(s) in the TIP according to the WO and RPO target allocations. T The Program Development Branch of NCDOT will handle all invoicing and payments. CMAQ Application Process Project sponsors will submit the CMAQ application (available on line) and project information to the MPO's and RPO's TCC and TAC Chairpersons for the local projects and to the Systems Planning Unit of Transportation Planning Branch ( NCDOT) for the Statewide projects. The following information should be included in the application: • Identify the county where the project is located m • Eligibility of project • Emissions analysis • Project cost and source of the funding match • Proposed project implementation schedule • Miscellaneous project issues • Supporting information CMAQ Timeline October 20-22,2004 The CMAQ application process will be discussed at the MPO Conference and call for projects will be issued. January 24, 2005 The deadline for CMAQ projects to be submitted to the Systems Planning Unit of TPB (NCDOT). March 1, 2005 The CMAQ review committee completes their review of projects and will submit their recommendations to the Secretary and the Board of Transportation for approval. June 2005 Upon Board of Transportation approval, projects will be included in the final TIP. CMAQ Miscellaneous • Target .Allocations are for a 7 year period. Funding will be reallocated after PM 2.5 non - attainment areas have been designated and after the CMAQ program is reauthorized. • Projects and target allocations will be evaluated yearly to ensure that goals are being met and projects are progressing as intended.. 0 0 Q L L� r C� G v N c 0 0 Q In 0 U a y ro ro '7 O v M LO M W M r r W M w c) "" N W CO u Im y rW V! torrC'! "I oM.rd":c) O J E f0 N to [{ r N 0 O N N a N r W Op O C r W ro)NM W to O VO W W N Cl) r M (Vrmto M r r cm � ro O 2 ro `, O Mme- rC)OOOoowaommo0000O N.- r r r W W W W W W W W W W W W W m a O . ...r i o o o o o o o o 0 o 0 o R1 O U � (IC m c 0 N d C ro C W W W r N CW`')rOr0 W `- W N V0 �iNy OM OW m � . 00 r W Cl) (EN V O u. N V) a co W M 0, oO W MrN N M M(o o M Q z o c a o 0 0 c o 0 0 0 0 0 0 o( I c t 0 0 t 0 0 0 N 1 )rq(D ) o0 W W NONc� tOOrr- l ('OM 0> V' W rNOOOt r•r'M tl' V OrN o! 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(CHECK ALL THAT APPLY) ('Partial counties) ❑Cabarrus ❑Davie ❑Forsyth ❑Gmnville ❑1redell• ❑Mecklenburg ❑Person ❑Union ❑Chatham' ❑Durham ❑Franklin []Guilford ❑Johnston ❑Nash ❑Rowan ❑Wake 2. Is the project type generally eligible? (CHECK ALL THAI ❑ Transportation activities in the ❑ Bicycle and pedestrian development activities North Carolina Maintenance Plan facilities and programs ❑ Extreme low- temperature cold ❑ Travel demand (see question 8) start program management ❑ Public- private partnerships ❑ Outreach and program ❑ ridesharing activities ❑ Alternative fuel programs ❑ Traffic flow improvements (includes ITS see question 11) ❑ Telecommuting ❑ Fare/Fee subsidy programs (see question 10) APPLY) ❑ Intermodal freight ❑ Planning and project idling of vehicles development activities ❑ Motor vehicle inspection extreme cold -start conditions and maintenance programs (see question 8) ❑ Magnetic levitation management plans — including transportation technology to, or construction of such roads or program ❑ Experimental pflot projects Transportation Control Measures as defined in the Clean Air Act ❑programs for improved transit ❑traffic flow improvement programs ❑programs to control extended (see question 8) that achieve emission reductions idling of vehicles ❑reducing emissions from ❑employer sponsored programs to []trip reduction ordinances extreme cold -start conditions permit flexible work schedules []employer based transportation []programs to limit or reduce vehicle ❑restriction of certain roads or lanes management plans — including use in downtown areas or other ares of to, or construction of such roads or incentives (see question 8) emission concentration lanes of use by, passenger bus or ❑fringe and transportation corridor parking facilities serving multiple- occupancy vehicles ❑programs to limit portions of road surfaces or certain sections of metropolitan areas to the use of non - motorized vehicles or pedestrian use, both as to time and place ❑programs for the provision of all forms of high - occupancy, shared ride services ❑programs for new construction and major reconstruction of paths, tracks or areas solely for use by pedestrians or other non - motorized means of transportation when economically feasible and in the public interest (requires USDOT consultation with the Department of Interior. See question 9) HOV ❑program for secured bicycle storage facilities and other facilities including bicycle lanes, for the convenience of bicyclists in both public and private areas. ❑programs or ordinances to facilitate non - automobile travel, provision or utilization of mass transit, and to generally reduce the need for SOV travel, as part of transportation planning and development efforts of a locality, including programs and ordinances applicable to new shopping centers, special events, and other centers of Electronic Version Page 2 of 2 22 Improved (increased) transit service QNew facilities associated with a service I71New vehicles used to expand the transit fleet increase []operating assistance for new service (limit ClFare subsidies as part of program to limit exceedances of three years see question 8) NAAQS Emissions Criteria 3. What are the annual expected emissions before and after project completion? Pollutant Annual Emissions before Annual emissions after Difference implementation implern entation Carbon Monoxide ❑ No ❑ Volatile Organic Compounds ❑ Yes ❑ Oxides of Nitrogen 4. The emissions estimate is quantitative ❑qualitative. 5. Briefly, describe the method used to estimate the emissions reduction. ❑ N/a ❑ Yes ❑ No ❑ Financial Information -6— Project Cost (Total life of the project) Federal Share Local Match (20% Total $ Expected Project (CMAQ) $ minimum) $ Life (Years) 0 0 7. What is the source(s) of Required the matching funds? S. For agencies seeking operating assistance, how will the program be funded after year three? Miscellaneous 9. For construction of trails, has the Department of Interior been contacted? 10. Is the fare /fee subsidy program part of a broad program to reduce emissions? 11. Will the ITS project conform to the ❑ Yes ❑ No ❑ N/a ❑ Yes ❑ No ❑ N/a ❑ Yes ❑ No ❑ N/a 12. Supporting Information (Please provide a list of any supporting Information e.g., complete emissions . calculations, assumptions, letters of support. Use extra sheets as necessary.)