Transportation Equity Act for the 21st Century; Implementation Guidance for the Interstate Highway Reconstruction/Rehabilitation Pilot Program; Solicitation for Candidate Proposals

DEPARTMENT OF TRANSPORTATION

Federal Highway Administration

Transportation Equity Act for the 21st Century; Implementation

Guidance for the Interstate Highway Reconstruction/Rehabilitation Pilot

Program; Solicitation for Candidate Proposals

AGENCY: Federal Highway Administration (FHWA), DOT.

ACTION: Notice.

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SUMMARY: This document publishes implementation guidance for section

1216(b) of the Transportation Equity Act for the 21st Century (TEA-21).

Section 1216(b) established a pilot program under which the Secretary

may permit a State to convert a free highway, bridge, or tunnel on the

Interstate System to a toll facility where reconstruction or

rehabilitation of the facility could not happen without the collection

of tolls. This document also calls for submission of proposals for

consideration under the pilot program and describes eligible Interstate

facilities, application requirements, selection criteria, and the

submission process.

FOR FURTHER INFORMATION CONTACT: For pilot program: Mr. Jim Overton,

HNG-10, Office of Engineering, (202) 366-4653; For legal issues: Mr.

Steven

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Rochlis, HCC-32, Office of the Chief Counsel, (202) 366-1395, Federal

Highway Administration, 400 Seventh Street, SW, Washington, DC 20590-

0001. Office hours are from 7:45 a.m. to 4:15 p.m. E.T., Monday through

Friday, except for Federal holidays.

SUPPLEMENTARY INFORMATION:

Electronic Access

An electronic copy of this document may be downloaded using a modem

and suitable communications software from the Government Printing

Office Electronic Bulletin Board Service at (202) 512-1661. Internet

users may reach the Federal Register's home page at http://

www.nara.gov/fedreg and the Government Printing Office's database at

http://www.access.gpo.gov/nara.

Background

The TEA-21 (Pub. L. 105-178, 112 Stat. 107) implementation guidance

published in this Federal Register notice is provided for informational

purposes. Specific questions on any of the material published in this

notice should be directed to the contact person named in the caption

For Further Information Contact.

Authority: 23 U.S.C. 315; sec. 1216(b), Pub. L. 105-178, 112

Stat. 107, 212 (1998); 49 CFR 1.48.

Issued on: February 3, 1999.

Gloria J. Jeff,

Deputy Administrator, Federal Highway Administration.

The text of the FHWA memorandum reads as follows:

ACTION: Interstate Highway Reconstruction/Rehabilitation Pilot Program

Section 1216(b) of TEA-21 Solicitation for Candidate Proposals (Reply

Due: March 31, 1999)

December 24, 1998

Associate Administrator for Program Development

HNG-12

Division Administrators

Section 1216(b) of the Transportation Equity Act for the 21st

Century (TEA-21) establishes a new pilot program to allow conversion of

a free Interstate highway to a toll facility in conjunction with needed

reconstruction or rehabilitation of the Interstate highway that is only

possible with the collection of tolls. The following is implementing

guidance for this provision as well as a call for candidate proposals

from the States for consideration under the pilot program.

The selection process and the accompanying submittal of required

information for candidates under this pilot program will be conducted

in two phases. In Phase 1, we are seeking candidates from the States

for the Interstate toll pilot program. In submitting candidates, the

States are required to submit general information on the candidate(s),

as described below. A State may submit more than one candidate;

however, any one State will not have more than one candidate selected

in that State. Candidates are due to FHWA Headquarters by March 31,

1999. Based on the information submitted and the criteria outlined

below, up to three pilot projects will be selected (to be called

``provisional'' acceptance) to proceed to Phase 2.

In Phase 2, a candidate project will be required to satisfy

compliance with the National Environmental Policy Act (NEPA) process,

as described below. Although no specific time limits are established

for this phase, it is expected the States will accomplish this task in

a timely manner. If this does not occur, a candidate's ``provisional''

acceptance may be withdrawn and offered to another candidate submitted

during Phase 1.

General Pilot Program Provisions

The purpose is to provide for the reconstruction or

rehabilitation of Interstate highway corridors where estimated

improvement costs exceed available funding sources, and work cannot be

advanced without the collection of tolls.

It is expected that candidate projects will involve

tolling of sections of highways that, in general, have identified

reconstruction or rehabilitation needs throughout the section proposed

for tolling.

The FHWA may select up to three candidate projects to

participate in the pilot program. Each project selected must be in a

different State.

There is no special Federal funding specifically

authorized for this program. Regular Federal-aid highway funds, except

for Interstate Maintenance funds, may be used to fund improvements to a

designated pilot project, subject to the normal eligibility

requirements for these funds. Section 1216(b)(6) of TEA-21 specifically

prohibits use of Interstate Maintenance funds on the Interstate

facility covered by the pilot project during the period tolls are

collected. In addition, an Interstate reconstruction/rehabilitation

project may qualify for credit assistance under 23 U.S.C. 181-189.

The State must execute an agreement with the FHWA

specifying that toll revenues received from operation of the facility

will be used in accordance with the requirements set forth in Section

1216(b)(5) of TEA-21. This requires that all toll revenues be used only

for (1) debt service, (2) reasonable return on investment of any

private person financing the project, and (3) any costs necessary for

the improvement of and the proper operation and maintenance of the toll

facility, including reconstruction, resurfacing, restoration and

rehabilitation of the toll facility. Additionally, the agreement must

include a provision that the State will conduct regular (annual

suggested) audits to ensure compliance with the provisions regarding

use of toll revenues, and the results of these audits will be

transmitted to the FHWA.

Toll collection must occur for at least 10 years. There is

no maximum time limit concerning the duration of toll collection;

however, tolls that are collected can only be used for the purposes set

forth in the previous paragraph.

The FHWA is concerned that the initiation of toll

collection on a facility that is being converted from free use to tolls

should not occur until it is evident to the traveling public that tolls

will result in improvements to the facility. Accordingly, the earliest

that tolls may be imposed on a pilot project is the date of award of a

contract for the physical construction to reconstruct or rehabilitate a

significant portion of the proposed toll facility.

A pilot project, regardless of whether Federal-aid funds

are to be used in subsequent reconstruction or rehabilitation

activities, must satisfy the requirements of the NEPA process before

final approval is given to the project. The analysis of the project

must take into account not only the impacts of the proposed

reconstruction or rehabilitation activities but also consider impacts

associated with converting the free facility to a toll facility.

Eligible Interstate Facilities

Eligible Interstate routes under the pilot program are those

included in the Interstate system as described in 23 U.S.C. 103(c).

This is the originally designated Interstate system and includes those

Interstate additions under former 23 U.S.C. 139(a).

Section 1216(b)(1) of TEA-21 permits the pilot program to include

highways, bridges and tunnels on the Interstate system. Since existing

23 U.S.C. 129(a)(1)(C) already allows for the reconstruction or

replacement of a free Interstate bridge or tunnel and its subsequent

conversion to a toll bridge or tunnel, for the purposes of the

Interstate pilot program we are only seeking candidates that involve

reconstruction/rehabilitation of a free Interstate

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``highway'' and its subsequent conversion to a toll facility. Bridges

and/or tunnels may be included within the ``highway'' segment.

Phase 1--Application Requirements

An application from a State must address those items set forth in

Section 1216(b)(3) of TEA-21, as follows:

An identification of the facility on the Interstate system

proposed to be a toll facility, including the age, condition, and

intensity of use of the facility.

In the case of a facility that affects a metropolitan

area, an assurance that the metropolitan planning organization

established under 23 U.S.C. 134 for the area has been consulted

concerning the placement and amount of tolls on the facility.

An analysis demonstrating that the facility could not be

maintained or improved to meet current or future needs from the State's

apportionments and allocations made available by the TEA-21, including

amendments to the act, and from revenues for highways from any other

source without toll revenues.

A facility management plan that includes:

A plan for implementing the imposition of tolls on the

facility.

A schedule and finance plan for the reconstruction or

rehabilitation of the facility using toll revenues.

A description of the public transportation agency that

will be responsible for implementation and administration of the pilot

project.

A description of whether consideration will be given to

privatizing the maintenance and operational aspects of the facility,

while retaining legal and administrative control of the portion of the

Interstate route.

In addition, the application should:

Show how the plan for implementing tolls takes into

account the interests of local, regional and interstate travelers.

Provide an environmental scoping analysis of the proposed

project's impacts to the social, economic, and environmental resources

located in the vicinity of the project. The analysis should show what

effect the proposed construction, as well as the imposition of tolls,

may have on such resources as:

current or planned land uses,

historic, cultural, natural, or recreational resources,

economic or community resources,

safety and livability,

ambient light, noise, and air quality levels,

sensitive receptors, and

minority and low-income populations.

This scoping analysis should form the basis for the more detailed

environmental evaluation done in Phase 2.

The States are also welcome to include with their application

whatever additional information they feel would assist us in

understanding the merits of their proposal.

Phase 1--Selection Criteria

In selecting up to three candidate projects, the criteria set forth

in Section 1216(b)(4) of TEA-21 will be used to evaluate candidates.

These criteria are:

The State is unable to reconstruct or rehabilitate the

proposed toll facility using existing apportionments.

The facility has a sufficient intensity of use, age, or

condition to warrant the collection of tolls.

The State plan for implementing tolls on the facility

takes into account the interests of local, regional and interstate

travelers.

The State plan for reconstruction or rehabilitation of the

facility using toll revenues is reasonable.

The State has given preference to the use of a public toll

agency with demonstrated capability to build, operate, and maintain a

toll expressway system meeting criteria for the Interstate system.

In addition to the above, the environmental scoping analysis

information submitted will be used in evaluating candidate projects. A

candidate project perceived to have lesser environmental impacts may be

given preference.

Phase 2

It is recognized that the NEPA impacts of a proposed pilot project

under this program, not only involve those associated with the proposed

reconstruction/rehabilitation activities themselves but also those

associated with converting a free Interstate facility to a toll

facility, such as potential changes in travel patterns, construction of

toll collection facilities, and economic equity issues. The impacts

associated with conversion from a free to toll facility as well as the

impacts of the physical construction activities of the reconstruction/

rehabilitation project need to be addressed before a candidate pilot

project is given final approval as a pilot project.

Accordingly, in Phase 2 a State will be required to develop, for

FHWA acceptance, appropriate NEPA documentation for the pilot project.

Although no specific time limits are established for the NEPA process

to be completed for a pilot project, it is expected a State will

accomplish it in a timely manner. If this does not occur, a candidate's

``provisional'' acceptance may be withdrawn and offered to another

candidate submitted during Phase 1.

Submission Process

A Phase 1 application from a State is to be submitted to the

division office. Applications are to be received in Headquarters by

March 31, 1999.

The division office is to ensure the application is complete and

fully addresses the items noted above for a Phase 1 application.

Incomplete applications received by Headquarters will be returned to

the division office. In addition, the division office should review the

application based on their knowledge of the proposed candidate project

and the State's program and provide detailed comments for Headquarters

consideration.

Phase 2 tasks will also be coordinated through the division office.

We will provide additional guidance on this later.

Questions concerning this memorandum should be directed to Jim

Overton (202-366-4653) of the Federal-Aid and Design Division.

Signed by,

Thomas J. Ptak.

[FR Doc. 99-3206 Filed 2-9-99; 8:45 am]

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