Transportation Funding in North Carolina Change is coming…

1. Transportation Funding in North CarolinaChange is coming… LOSRPO TCC and TAC 7/19/2013

2. What has happened? • Governor McCrory signed into law a “Strategic Mobility Formula” on June 26th to replace the current funding formula NCDOT uses to divide available funding among different areas of the state and different types of projects • Most significant NC transportation legislation since creation of the Highway Trust Fund in 1989 • HB 817 passed both house and Senate with overwhelming support

3. What Happened? Highway Fund Highway Trust Fund Funds operations and maintenance activities Funds capital (construction) activities Statewide Strategic Mobility Projects 40% of funding Regional Impact Projects 30% of funding Division Needs Projects 30% of Funding

4. Statewide Strategic Mobility • Includes these types of facilities: • Interstates and designated “Future Interstates” • NHS, STRAHNET, and Appalachian Development Highway routes • Routes designated as part of the old “Intrastate” network • Toll roads • Four largest airports in the state (CLT, RDU, GSO, ILM) • Class I freight rail improvements (CSX & NS lines)

5. For our LOSRPO area • Eligible statewide routes in LOSRPO area: • I-26 and future I-26 projects • I-40 improvements • CSX and NS improvements to freight rail traffic (**note not passenger rail service) • Eligible regional impact routes in LOSRPO area: • US-64, US-276, US-19 • All NC signed routes (NC-151, NC-215, NC-63, NC-205, NC-197, etc.) • Short line rail projects spanning 2 or more counties (Transylvania-Henderson short line) • Eligible Division needs routes in LOSRPO area: • All SR routes • All other modes (bike/ped), remaining rail projects, airport projects, etc.

6. For our FBRMPO area • Eligible statewide routes in FBRMPO area: • I-26 and future I-26 projects; I-40 & I-240 improvements, • US-74 (Great Smokey Mountains Expressway- Non ARC funded)* • CSX and NS improvements to freight rail traffic (**note not passenger rail service) • Eligible regional impact routes in FBRMPO area: • US-64, US-276, US-19, US-25, • All NC signed routes (NC-9, NC-215, NC-63, etc.) • Short line rail projects spanning 2 or more counties • Asheville Regional Airport projects • Potential intercity passenger rail service • Eligible Division needs routes in FBRMPO area: • All SR routes • All other modes (bike/ped), remaining rail projects, other airport projects, etc. * GSME (US-74) is a designated ARC corridor (Corridors A & K)

7. Implementation of the law • The legislation provides some guidance on how to score projects for selection • Details are left to NCDOT to decide • SPOT 3.0 workgroup with members of League of Municipalities, County Commissioners Association, RPO’s and MPO’s have met weekly to hammer out the details • Legislative staff provided guidance and legislative intent into the process

8. How will projects be selected? • All projects will be submitted to NCDOT via SPOT 3.0 process • All projects across all modes will be scored on quantitative measures • Statewide mobility projects will be 100% quantitative data driven • Regional projects will be selected on quantitative measures with 30% local input • Division level projects will be selected on quantitative measures with 50% of score driven by local input

9. Draft Criteria for Quantitative Highway Projects Subject to Change – this reflects current SPOT 3.0 work group discussions Benefit/Cost is measured in travel time savings of a proposed project

10. Bike/Ped • Funding available at the division needs level • 20% match for projects after FY 2016 • No state funding available • More guidance coming from NCDOT regarding Transportation Alternative (TA) funding soon Subject to Change – this reflects current SPOT 3.0 work group discussions

11. Criteria for other modes • Each mode of transportation must have its own criteria for project prioritization • Ferry • Aviation • Rail • Transit • Bike/Ped • Staff has additional guidance available for these modes upon request (draft form as well) • All of these methodologies have been approved by the workgroup and will be presented to the Board of Transportation later this month

12. Local Input Points • LOSRPO has 1,100 points to divide amongst the projects it submits to NCDOT via SPOT 3.0 • FBRMPO has 1,800 project points to divide • No project can receive more than 100 points • Points can be shared from organization to organization to show regionally significant projects • Number of points is based on population

13. Future tasks for staff • Staff will be working with local governments over the next few months to determine: • An internal process to rank projects • General review and clarification of proposed STIP projects • Project conformity with neighboring RPO’s and MPO’s • New projects are to be submitted by the end of January 2014 • LOSRPO: 11 new projects • FBRMPO: 14 new projects • Project prioritization methodology, STP-DA & TA selection (MPO Only) to be developed according to updated (and expedited) schedule to meet new timeline

14. More information • LOSRPO and FBRMPO staff will be working with NCDOT on this process • We will keep our focus on our #1 priority, our local governments and communicate information as quickly as possible • Staff may not have all the answers to your questions, but we will strive to find the answers • Staff are also available for presentations to your Board members, Commissioners, Aldermen, or Council members as needed