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47 CHAPTER 5 APPLYING THE GUIDELINES The previous chapters described several issues surround- such as bicycle facilities. Since the creation of the program, ing any analysis of investments in bicycle facilities; the web- 45% of TE funds have been spent on bicycle and pedestrian based tool provides the user with a means to performing such facilities. Bicycle facilities that are primarily designed for analysis. This chapter describes how to apply the guidelines transportation rather than recreational uses are eligible for in the field. TE funds. Applying the described tool--Benefit-Cost Analysis of The Transportation Equity Act for the 21st Century, autho- Bicycle Facilities--provides the project proponent with the rized in 1998, provided that 10% of Surface Transportation basic technical information needed to advance a proposed Program (STP) funds authorized be set aside for TE funding. project through the development process. The project propo- This TE set aside is estimated between $500 million and nent will have an initial estimate of capital costs, including $750 million per year. Each state's DOT is charged with deter- cost of design, real estate acquisition and construction, and mining project eligibility for TE funding. In some states, a operations and maintenance costs. Additionally, the propo- sitting "enhancement committee" is given this responsibility, nent will have an estimate of use and associated benefits. as well as the responsibility for establishing project priorities. With this information, the project proponent can develop Most states also require matching funds from the project spon- public support for the project (a key step to success in proj- sor of at least 20% of the project budget, with the remaining ect implementation) and proceed into the transportation proj- funding coming from the federal TE funds. The recently ect development process. passed transportation bill, SAFETEA-LU, also provides sub- In addition to defining the project and its benefit-cost char- stantial funds devoted exclusively to constructing bicycle acteristics and initiating efforts to develop public support, an facilities. important early development task is to identify potential fund- ing sources and the path to securing project funding. Principal sources of potential project funding include federal transport- CMAQ ation programs. Some state and private programs may also be sources of project funding. In 1991, ISTEA also created the CMAQ program. The CMAQ program, jointly administered by the FHWA and the FTA and reauthorized under TEA-21, provides more than FEDERAL FUNDING SOURCES $1.3 billion per year to state DOTs, Metropolitan Planning Organizations (MPOs), and regional transit agencies (RTAs) Federal funds represent the largest potential source of fund- to invest in projects that reduce targeted air pollutants from ing for bicycle facilities. The U.S. DOT's FHWA administers transportation-related sources. the largest of these funding programs. The principal federal Because CMAQ funds are intended to improve air quality, funding sources for bicycle facilities are the Transportation funds must be spent on projects in air quality non-attainment Enhancements (TE) and the Congestion Mitigation and Air or maintenance areas. A non-attainment area is an area cur- Quality (CMAQ) programs. Bicycle projects are also eligi- rently designated by EPA as not meeting the national ambi- ble for funds from FHWA-administered programs such as ent air quality standards (NAAQS). A maintenance area is National Highway System (NHS), Federal Lands Highways, one that was at one time a non-attainment area but currently National Scenic Byways, and Recreational Trails. meets NAAQS and has been re-designated by EPA. Desig- nated areas are described in the Code of Federal Regulations. Although all states receive CMAQ funds, those that have non- Transportation Enhancements attainment areas receive proportionally more CMAQ funding than other states. The Intermodal Surface Transportation Efficiency Act Historically, only 3% of CMAQ funds annually have been (ISTEA) established the TE grant program in 1991. TE funds used to build bicycle and pedestrian facilities. The over- can be used to fund a variety of "non-traditional" projects, whelming majority of CMAQ funding has been used for