U.S. DOT Funding Opportunities forIdle-Reduction Projects

Mike Savonis

U.S. DOT-FHWA

Talking Freight SeminarJuly 21, 2004

U.S. Department of Transportation

Federal Highway Administration

• Air Quality

Why Does DOT Care?

• Energy Use

• Greenhouse Gas Emissions

• Driver Safety

• Required under the National Energy Policy

Air Quality: New Ozone Nonattainment Areas

Air Quality: Emissions

E m i s s i o n T r e n d s

S o u r c e : U . S . E n v i r o n m e n t a l P r o t e c t i o n A g e n c y . C u r r e n t E m i s s i o n s T r e n d s S u m m a r i e s : A n n u a l A v e r a g e E m i s s i o n s , A l l C r i t e r i a P o l l u t a n t s , y e a r s i n c l u d i n g 1 9 7 0 , 1 9 7 5 , 1 9 8 0 , 1 9 8 5 , 1 9 8 9 , 1 9 9 0 - 1 9 9 9 . 1 3 J u n e 2 0 0 1 . < h t t p : / / w w w . e p a . g o v / t t n / c h i e f / t r e n d s / t r e n d s 9 9 / t i e r 3 _ y r s e m i s . p d f > ( 3 O c t o b e r 2 0 0 1 ) .

Energy: Energy Trends By Sector

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5

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15

20

25

30

35

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45

2000 2005 2010 2015 2020

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S ou rce : E n e rg y In form a tion A d m in istra tion , A n n u al E ne rg y O u tloo k 2 0 0 3 .

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In d u s tria l

T ra n sp o rta tio n

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Traffic CongestionTruck and Rail Flows

Freight Flows by Truck: 2020 (daily truck volumes)

Federal Highway Administration

Freight Flows by Rail: 1998 (tons)

Federal Railroad Administration

FHWA Freight Emissions Research

• Research – Impacts of Intermodal Freight Movement on Air Quality

Six MSA’s selected (LA, Dallas, Houston, Chicago,

Detroit and Baltimore) Freight profiles developed by mode (commodity

flows and emissions) Identification of key issues and problems Preliminary look at mitigation

DOT Funding Opportunities - CMAQ

• $14.1 billion program under ISTEA and TEA-21

• Funds transportation projects and programs to help achieve and maintain NAAQS for Ozone, CO, and PM-10

• Apportioned to States based on:

– population in ozone and CO nonattainment areas; and

– severity of the air quality problem

– all States guaranteed a 0.5% minimum apportionment

• Jointly administered by FHWA and FTA in consultation with EPA

CMAQ Authorization Levels

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IS T E A T EA -21SAF ETEA*

* Administration proposal

CMAQ Eligibility – Basic Provisions

• Must be used in nonattainment or maintenance areas – if there are any. If not, can be used anywhere in the State

• Must demonstrate emissions reductions

• Must be a transportation project – power generation is not aneligible activity

• Must be creditable under the transportation conformity process

• 20% match is required – higher is encouraged. Must be non-Federal funding

CMAQ Project Development Process

CMAQ & Idle-Reduction

• FHWA guidance on “CMAQ Eligibility for Idle-Reduction Measures” (August 2003)

• Can be found at: http://www.fhwa.dot.gov/environment/cmaqpgs/index.htm

• TSE projects must be in – or in close proximity to - nonattainment or maintenance areas, and primarily benefit them

• Truck APU’s must also operate within nonattainment or maintenance areas

• Usually carried out under the public-private partnership provision

• DOT/EPA are working to address eligibility of locomotive idle-reduction

Transportation Reauthorization

• TEA-21 sunset September 30, 2003

• SAFETEA to Congress in May 2003FY 2004-2009: $256 billion for highways and transit

proposed

$8.9 billion for CMAQ (2004-2009) proposed

• Senate passed SAFETEA (S. 1072) at $318 B

• House passed TEA-LU (H.R. 3550) at $284 B

• House & Senate conferees have been appointed

Reauthorization (cont.)

• Commercial activities on Interstate Rights-of-Way

Section 111 of U.S.C. Title 23

Prohibits Federal funding for/approval of commercial activities on Interstate highways

• SAFETEA and S.1072 would lift prohibition

DOT Funding Opportunities – Section 129 Loans

• State may use regular Federal-aid highway apportionments to fund direct loans to projects with dedicated revenue streams

• Loans available to both public and private entities

DOT Funding Opportunities – State Infrastructure Banks

• Allows certain states to use regular Federal-aid highway apportionments to capitalize state administered revolving fundshttp://www.fhwa.dot.gov/innovativefinance/sib.htm

DOT Funding Opportunities – TIFIA LOANS

• Transportation Infrastructure Finance and Innovation Act

• Leverages Federal funds by requiring private sector participation in project financing

• Can be used for any highway, transit or railroad project in excess of $100 Mhttp://tifia.fhwa.dot.gov/

FHWA Innovative Finance Specialists

Jim Hatter - Phone: 404-562-3929; e-mail address: Jim.Hatter@fhwa.dot.gov

Fred Werner - Phone: 404-562-3680; e-mail address: Fred.Werner@fhwa.dot.gov

Jennifer Mayer - Phone: 415-744-2634; e-mail address: Jennifer.Mayer@fhwa.dot.gov