To:
Members & Affiliates
From:
National Office
Date:
March 5, 1999
Subject:
Transportation Equity Act of 21st Century (TEA 21)
Reference:
LA 99-3
On June 9, 1998, President Clinton signed the Transportation Equity Act for the 21st Century (TEA-21) (Public Law 105-178). The TEA-21 Technical Corrections bill (Public Law 105-206) was enacted on July 22, 1998. A total of $217 billion is authorized for federal FY 1998 - 2003 (six years). The TEA-21 legislation essentially replicates the previous landmark federal surface transportation legislation, Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA) (Public Law 102-240) enacted on December 19, 1991. The new Act combines the continuation and improvement of current programs with numerous new environmental initiatives like enhancing communities and the environment. Funding for new environmental initiatives is now eligible; however, the legislation is primarily devoted to surface transportation programs and projects. This Legislative Alert describes how these TEA-21 provisions work and their potential to fund water quality enhancements.
How Does TEA-21 Funding Work?
Transportation project planning and funding processes are locally and State-driven. As part of its long-term transportation plan, each State and metropolitan area develops transportation improvement programs (TIPs), which prioritize projects and funding. Only projects in an approved TIP are eligible for Federal funding. Through additions to both the Surface Transportation Program (STP) and the National Highway System (NHS), TEA-21 creates flexibility to fund environmental enhancement opportunities.In TEA-21, 10% of STP funds ($3.3 billion over six years) are set-aside for transportation enhancements (TEs). A wide array of environmental and water quality improvement projects are eligible for TE funding, including pollution abatement and mitigation projects. TEA-21 also provides that up to 20% of the cost of a transportation facility's reconstruction, rehabilitation, resurfacing or restoration project under STP may be used for environmental mitigation, pollution abatement or construction of storm water treatment systems. This equates to $6.7 billion in potential STP funding over six years. In addition, states may use STP and NHS funds for wetlands projects designed to offset impacts from past transportation projects. Depending on specific program requirements, both TE and restoration projects are cost-shared between Federal and Non-Federal sponsors, with an 80% Federal share.
What Water Quality Projects Can Be Supported Through TEA-21 Funds?
TEA-21 creates funding opportunities for a wide variety of water quality enhancement projects and contains additional water-related environmental and planning provisions. The following are the key water-related provisions:Transportation Enhancements
Funded through a 10 % set-aside of STP funds, TEs are projects that improve communities' cultural, aesthetic and environmental qualities. Eligible activities include, for example, bicycle and pedestrian pathways, historic preservation, acquisition of conservation or scenic easements, rails-to-trails projects and the mitigation of water pollution due to highway runoff.Environmental Restoration and Pollution Abatement
Environmental restoration and pollution abatement projects (including retrofit or construction of storm water treatment systems, nonpoint source best management practices and riparian or wetland restoration projects) to address water pollution or environmental degradation caused or contributed by transportation facilities, which projects shall be carried out when the transportation facilities are undergoing reconstruction, rehabilitation, resurfacing or restoration. The exception is that the expenditure of funds under this section for any environmental restoration or pollution abatement project shall not exceed 20 percent of the total cost of the reconstruction, rehabilitation, resurfacing or restoration project.Wetland Restoration
STP and NHS funds can be used to help address wetlands losses caused by past Federally-aided transportation projects. In a February 18, 1997 memorandum from its chief counsel, the FHA indicated that several provisions within Title 23, United States Code, allow states to use funds to “improve or restore wetlands that were affected by past Federal-aid highway projects, even if there is no current Federal-aid project taking place in that vicinity.”Wetland Mitigation Banks
TEA-21 establishes a preference for mitigation banks in STP or NHS projects that involve natural habitat or wetlands mitigation. Impacts would have to occur within the service area of the mitigation bank, and the bank would have to be approved in accordance with the Federal Mitigation Banking Guidance (60 Federal Register 58605, November 28, 1995) and other applicable federal laws and regulations.Wetland Restoration Pilot Program
The Secretary of Transportation is authorized to establish a national wetland restoration pilot program. This discretionary pilot program will fund restoration projects to offset the degradation of wetlands resulting from highway construction projects carried out before December 27, 1977. The Secretary is required to submit a report on the results of the program every three years. This provision provides contract authority in the amount of $12 million for FY 1998; $13 million for FY 1999; $14 million for FY 2000; $17 million for FY 2001; $20 million for FY 2002; and $24 million for FY 2003 to carry out this program. This program is devoted to historic losses of wetlands only. Funds provided in this program are not intended to reward state departments of transportation for knowingly degrading wetlands through highway construction. Therefore, the funds provided are not to be used to mitigate wetland losses from current and future highway projects or from projects carried out after December 1977.How To Get Started
AMSA members may be interested in pursuing these new federal transportation program funding opportunities. The federal transportation program may be complicated to those unfamiliar with long-standing procedures and practices. In order to start, you should make contact with your Metropolitan Planning Organizations, or MPO. The MPO is the institution responsible for carrying out the metropolitan plan in urbanized areas over 50,000 in population.These organizations are typically composed of elected local officials plus other relevant organizations. The MPO, the state and other service providers cooperatively determine their mutual responsibilities in the conduct of the plan. They agree on an annual work program, the metropolitan plan and what should be funded under the transportation improvement plan. In addition, the plan development and improvement plan is coordinated with other entities in the metropolitan area. In this regard, AMSA members may have an opportunity to provide project funding input regarding environmental restoration and pollution abatement under TEA-21.
For More Information ...
The Metropolitan Transportation Planning process has evolved over the past several decades. Numerous changes due to federal legislation have occurred and have been integrated into this dynamic process. AMSA members may desire additional information and material on how this process operates. Additional material on this subject can be made available if necessary. You may obtain more information about TEA-21 projects in your area by contacting your State Department of Transportation or the Federal Highway Administration Division Office in your State. You can also contact the following EPA offices: Nonpoint Source Branch - 202/260-7040; Stormwater/NPDES Permits Branch - 202/260-9541; Wetlands - 202/260-7791 or Coastal Protection Branch - 202/260-1952. Information is also available on the following web page: http://www.epa.gov/owow/tea. In addition, please feel free to contact Greg Schaner, AMSA's Manager of Government Affairs at 202/296-9836 if we can be of additional assistance in utilizing the TEA-21 opportunities.