Legislative & Regulatory Update

Congressional Good News with Passage of "TEA 21" Legislation

excerpts from the NACE Update, Vol. 98, No. 13 (May 28, 1998)

from On the Move, Summer (June) Quarter 1998, Volume 11, Number 2

Go back to "The Utah Technology Transfer Center On the Move Summer 1998 Newsletter"

Both the House and the Senate approved the new transportation bill late May 22, 1998 and it was signed into law by the President June 9, 1998. Below is a summary of the Conference Report:

• Reauthorizes the federal highway, transit, safety, research and motor carrier program for a 6 year period (1998-2003).
• $215 billion total budget authority over the 6 year period including $175 billion for highways, $41.4 billion for transit, $2.2 billion for highway safety programs, and $650 million for motor carrier safety grants. With a total of $200.5 billion in guaranteed highway, transit and safety spending.
• This legislation ensures that annual tax revenues deposited into the Highway Trust Fund will be spent on transportation improvements and guarantees that $165 billion for highways and $35 billion for transit can be obligated over the next 6 years. (By 1999, TEA 21 phases in the principle of obligating tax revenues and stops the diversion of the highway trust fund permanently.)
• The highway program reauthorizes and streamlines the core programs: Interstate Maintenance/National Highway System at $58.5 billion; Surface Transportation Program at $37.9 billion; Bridge Program at $21.9 billion (this preserves and increases the Bridge Program); CMAQ at $9.1 billion; and Minimum Guarantee at $16.5 billion. This also ensures true equity for donor states by guaranteeing a 90.5% return from the Trust Fund. It also includes $9 billion to fund high priority projects around the country. It allows for innovative financing of transportation infrastructure through loan guarantees and credit enhancements.
• The Safety and Motor Carrier program provides $2 billion for highway safety programs. In addition, a $500 incentive grant based on high or increased safety belt use rates is included. In lieu of a sanction, a $500 million incentive grant is established for those states with a .08 BAC (blood alcohol content) law, and state highway funds are redirected toward safety and safety construction if they do not take certain anti-drunk driving steps. The bill also continues and increases funding for the alcohol incentive grants program, which dedicates funds in qualifying states to fight drunk driving. $650 million is provided for grants to states and other programs to increase motor carrier safety.
• Reforms include environmental streamlining to reduce highway transit project delays; the elimination of programmatic responsibilities of regional offices, removing a layer of bureaucracy and red tape; and improved project approval to give states more responsibilities on non-Interstate projects.
• "TEA 21" also expands the involvement of local rural governments in project planning. For non-metropolitan areas the long range transportation plan shall be developed in consultation with local officials responsible for transportation and within one year the state shall submit to the Secretary of Transportation the details of the consultative planning process developed. NACE was pushing for more equal status with the word "cooperative" in the process. However, considering that in the ISTEA bill no mention of non-metropolitan governments was made, this is considered a victory.