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TEA-21 Delivers: One Year Anniversary

June 1999

Message from the Secretary
Photo: Rodney E. Slater
Rodney E. Slater
Secretary of Transportation

It is one year since enactment of the Transportation Equity Act for the 21st Century (TEA-21), and we have tangible results to report to the American people. States received funds in record time, allowing them to move ahead aggressively on surface transportation projects that improve safety and mobility, strengthen our ability to compete effectively in the global marketplace and protect and enhance our communities and the natural environment.

Securing the continued strength and safety of our transportation system is among the highest priorities of President Clinton. Our efforts are paying off; transportation is safer today than it was 30 years ago. In 1998, the rate of traffic fatalities in America fell to its lowest level since record-keeping began in 1966, and we have the highest level of seat belt use in our history.

Another key priority is our commitment to improving the environment for current and future generations. States and communities now have a wider array of options for improving mobility in ways that temper air, water and noise pollution and help preserve historic and natural resources. Transportation is a key part of the Clinton-Gore Livability Initiative-providing communities with the tools and resources to ease traffic congestion, preserve green space and pursue wise regional growth strategies.

Expanded opportunity for all Americans is made possible through the new access to jobs program, a continued and effective Disadvantaged Business Enterprise program, and strong labor protections for transportation workers.

Transit systems across the country are also being improved and expanded with record levels of investment. Highway construction is proceeding at a rapid pace, including work on improving border crossings and trade corridors to accommodate the expanding commerce in North America. We are continuing to make progress in repairing our Nation's roads and bridges. And, we are focusing on making our overall transportation system more varied and intermodal, including not only transit and highway but also rail, bicycle, pedestrian and other alternative facilities. We are taking advantage of new and advanced technologies such as Intelligent Transportation Systems. This improved transportation system will position the United States to compete even more effectively in the global marketplace as it contributes to the well-being of our people.

TEA-21 embodies President Clinton's vision of an integrated transportation system that will help ensure Americans' prosperity and quality of life into the next century. We look forward to continuing to work together to make our transportation system as safe and efficient as possible.
Signature: Rodney E. Slater
Rodney E. Slater
Secretary of Transportation

Table of Contents


Rebuilding America


Human and Natural Environment

Expanding Opportunity

Promoting Economic Growth and Trade

Corporate Management and Crosscutting Issues

Apportionments and Allocations


The Transportation Equity Act for the 21st Century (TEA-21), P.L. 105-178, was passed by the Senate and the House of Representatives on May 22, 1998, and signed into law by President Clinton on June 9, 1998. This month marks the one year anniversary of this landmark legislation, and the following pages highlight the progress that has been achieved during that year in delivering TEA-21 to the public.

TEA-21 embodies President Clinton's vision of an integrated transportation system helping to ensure Americans' prosperity and quality of life into the new century - it will be an important contributor to virtually every transportation project in the country in the next decade and perhaps beyond. TEA-21 reflects the commitment of the Congress and the Administration to rebuild America's infrastructure in a fiscally responsible manner, while increasing safety, providing for a cleaner environment, and expanding opportunity.

Led by Secretary Rodney E. Slater, the Department of Transportation (DOT) is working with others, including state, local, and tribal governments; industry, labor, safety and environmental protection groups; and the public to implement TEA-21 consistent with the intent of Congress.

DOT pledged to establish opportunities to listen to our partners and customers explicitly about TEA-21 before implementing the new programs and provisions of the law. We conducted an extensive, national outreach to our partners and customers before developing final guidance.

From July through November 1998, the Department of Transportation conducted 12 formal outreach sessions around the country. These included six general listening sessions and six on specific programs, including the Borders and Corridors program, safety programs, the Access to Jobs program, and planning and environment. Other focus meetings were held as well. For example, the Federal Highway Administration (FHWA) held four outreach sessions specifically focused on highway infrastructure safety to gain input from such partners as the Roadside Safety Foundation, the American Traffic Safety Services Association, and the American Association of State Highway and Transportation Officials. FHWA and the Federal Transit Administration (FTA) held five public meetings on the Congestion Mitigation and Air Quality Improvement Program. FHWA sponsored 12 meetings with federal land management agencies, state transportation agencies, and tribal governments specifically to discuss TEA-21 provisions related to the Federal Lands Highways Program. The National Highway Traffic Safety Administration (NHTSA) held more than 40 meetings with state and local governmental officials, safety advocates, and other stakeholders to discuss TEA-21 safety programs. FTA held a series of eight regional listening sessions in September and October of 1998 to learn what kind of concerns people had with respect to the implementation of TEA-21. Similarly, the Federal Railroad Administration (FRA) held several outreach sessions across the country on the magneticlevitation, high-speed rail, and intermodal flexibility aspects of TEA-21, and participated in workshops on innovative finance.

Communicating TEA-21
To allow widespread dissemination of information to the public, as well as our partners in the transportation community, we established a TEA-21 website. Its contents include: TEA-21's statutory language, a detailed summary of the Act, funding tables, program factsheets, and a section-by-section list of completed implementation actions. We are keeping that electronic resource up-to-date to facilitate easy access to Federal Register documents and other program guidance, with linkages to a variety of related websites. Hard copy publications include the TEA-21 Summary (over 60,000 copies of this "best-seller" have been distributed), as well as specialized brochures for other programs such as the Highway Safety Grant and Transfer Programs, Federal Lands Highways Program, Bicycle and Pedestrian Programs, Recreational Trails Program, Value Pricing, and Intelligent Transportation Systems.

Record Level Investment - Release of Fiscal Year 1998 and 1999 Funding
Among the most significant features of TEA-21 is its affirmation of the commitment to rebuild America by providing a record level of balanced investment in our highways, transit systems, and intermodal facilities. It does so in a fiscally responsible manner, which protects the 1997 balanced budget agreement and other vital national priorities, including education, child care, and Social Security. TEA-21 establishes a guaranteed level of federal surface transportation investment through FY 2003 that is linked to receipts into the Highway Trust Fund. We are pleased that our state and local partners across the Nation are assured of a guaranteed level of at least $198 billion for surface transportation through FY 2003, and that Congress enacted a FY 1999 budget consistent with TEA-21 which provides guaranteed funding levels of $26.622 billion for FHWA and NHTSA, $5.365 billion for FTA, plus an additional $25 million to support the Job Access and Reverse Commute Program.

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Rebuilding America

Transportation Infrastructure

Transportation System Operations

During the 20th century, great progress was made in transportation through the construction of our transportation system. In the 21st century, increased mobility, improved safety, an enhanced environment, and a higher quality of life will come from our use of technology and improvements in the operation of the transportation system. As we implement TEA-21, we have begun to emphasize the need to improve the operation of the national transportation system.

The intelligent transportation systems (ITS) program is aimed at solving congestion and safety problems, improving operating efficiencies in transit and commercial vehicles, and reducing the environmental impact of growing travel demand. Prior to TEA-21, its focus was on the research, development, and operational testing. TEA-21 prompted an expansion of the ITS program beyond developing benefits. The primary thrust of the program is now focused on developing, disseminating, and teaching technical skills so that those investing in ITS can exercise properstewardship. As part of this emphasis on deployment, proven technologies that are technically feasible and highly cost effective will be deployed nationwide as a component of the surface transportation systems of the United States. ITS will reduce transportation system life-cycle costs by approximately 25 percent, which would amount to $30 billion over the next decade. Over the next 20 years we are forecasting that putting an ITS infrastructure in place will create a $420 billion market and 600 thousand new jobs.

Advancing Research and Technology (R&T)
President Clinton's Transportation Science and Technology Strategy notes that our "ability to harness the power and promise of leading-edge advances in technology will determine, in large measure, our national prosperity, security, and global influence, and with them the standard of living and quality of life of our people." Technology offers particular promise for transportation, where it can improve the performance of our system and increase capacity, especially in our major cities where new construction may be too expensive or environmentally unsound. Innovations in transportation, such as advanced collision avoidance systems, have the potential to save hundreds of lives. Technology also offers the promise of speeding travel and freight movement. TEA-21 establishes a strategic planning process that will allow us to develop national priorities for surface transportation and measure the results and impacts.

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Safety is the Department of Transportation's top priority. Although transportation is safer today than it was 30 years ago, transportation-related incidents still take a terrible toll. Lives lost in transportation crashes account for almost half of all accidental deaths and place a huge burden on our economy - an estimated $150 billion annually. We are committed to improving safety, recognizing that we will continue to face rapid growth in travel as well as changing demographics that affect safety such as the increase in older drivers and the dispersion of housing, shopping and other services that are not well served by traditional transit.

TEA-21 expands and strengthens our successful highway safety programs, and adds several new ones. We have issued implementing regulations for all of the new and amended highway safety programs in TEA-21 that Congress intended to be in effect in FY 1999. Moreover, we issued them in time for the state legislatures to consider responsive legislation in their 1999 legislative sessions. In so doing, we have maximized the states' opportunities to qualify for highway safety grants and avoid penalties. We issued the regulations as interim final rules, so that they would take effect before the legislatures convened but could be quickly amended in response to comments. These programs and the status of their implementation are discussed below.

Driver and Vehicle Safety Programs

The highway death rate fell to a record low in 1998, to 1.6 deaths per 100 million vehicle-miles traveled, with the help of programs like the State and Community Highway Safety Grant Program, the highway safety research and development programs, and the Drunk Driving Prevention Incentive Grant Program. Alcohol-related traffic fatalities also dropped to a record low. The funding and incentive grants provided in TEA-21 present the challenge, and the opportunity, to continue to reduce the drain that highway crashes place on the economy and families.

Motor Carrier Safety
DOT has established a bold goal to reduce fatalities in crashes involving commercial vehicles by 50 percent over the next decade. TEA-21 authority for stronger enforcement, increased funding for roadside inspections, and tougher penalties for violations of safety regulations are being used to meet this goal.

Infrastructure Safety
TEA-21 continues the 10 percent Surface Transportation Program (STP) set-aside for safety construction, providing more than $630 million to states in FY 1999 and approximately $3 billion over 6 years. Project eligibility is expanded to include off-roadway safety and bicycle improvements. In FY 1999, FHWA has made available $154.8 million to states to be used exclusively for rail-highway crossing improvements or elimination. Another $162 million in FY 1999 has been made available exclusively for hazard elimination. The remainder of the STP safety set-aside, approximately $315 million, is available for either of these two programs, at the states' option. In addition, other categories of federal highway funding, for example, National Highway System (NHS), Interstate Maintenance, and general STP funds, may be used by states for safety improvements.

TEA-21 designates safety and security of the transportation system as one of seven newly established areas to be considered in the overall transportation planning process, both at the statewide and metropolitan levels. This is the first time safety has been named as a planning factor and it has great potential to increase highway safety by building safety in from the start of the planning process.

The changes resulting from this legislation significantly affect the responsibilities and decisions made by safety specialists. Consciously considering safety is an essential factor in reducing the number of highway-related fatalities and serious injuries. To enhance their understanding and knowledge, more than 125 DOT field personnel attended a Safety Integration Conference held in Washington, D.C. Conference topics addressed safety data needs, safety issues, safety programs and processes. In a ONE DOT approach, a panel discussion with panelists from FHWA and NHTSA highlighted the specific changes and the impacts on the safety programs resulting from TEA-21.

Railway-Highway Crossings

One-call Notification
This new program seeks to reduce unintentional damage to underground facilities during excavation, along with attendant risks to the public and the environment. It encourages states to establish or improve existing one-call notification systems. Such systems receive notification from excavators of their intent to excavate in a certain area and notify underground facility operators so that they may mark their lines to prevent damage. DOT established a wide-ranging team shortly after the passage of TEA-21, to identify and evaluate practices used to prevent damage to underground facilities during excavation. The results of the damage prevention and best practices activities will be announced at a public meeting on June 30, 1999. This meeting will be the kickoff for the national damage prevention campaign. TEA-21 also establishes a new 2-year program under which states may apply for grants to enhance one-call systems; authorizations are provided, subject to appropriation, for grants in FYs 2000 and 2001.

Recreational Boating Safety
TEA-21 created a stable funding base-$59 million for the states, and $5 million for the Coast Guard-to improve recreational boating safety. Recreational boating fatalities currently account for the second highest number of transportation-related deaths. State Recreational Boating Safety allocations for FY 1999 were issued by the U.S. Coast Guard in December of 1998. In response to the solicitation for FY 1999 grant proposals from national nonprofit public service organizations published in the Federal Register in October of 1998, 71 proposals were submitted by 30 organizations. Thirty-two projects have been selected for funding. Solicitation for FY 2000 nonprofit grant proposals will be published in the Federal Register in October of 1999. Efforts are underway to use new mandatory funding for the Coast Guard to improve oversight of manufacturer compliance with safety standards; conduct national boating surveys to identify boating safety problems/issues; increase outreach efforts; and implement technology innovationsand productivity improvements, e.g., enhancing the Coast Guard Infoline and the Boating Safety web site (www.uscgboating.org).

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Human and Natural Environment

Major national legislation has been enacted to protect our air and water as well as the vast cultural, historic, and natural resources important to our quality of life. Transportation's impact on air, water and noise pollution are well known, as are the potential impacts on wildlife habitat and ecosystems. It is essential that we continue to account for the costs of transportation decisions that affect these non-renewable resources and provide assistance, where possible, to mitigate adverse effects on our communities and their environment. Effective transportation planning, that considers a wide range of options and examines the consequences of our choices, is the key to shaping sound investment decisions.

Livable Communities
The Clinton-Gore Livability Initiative is designed to help communities across America achieve strong, sustainable economic growth while ensuring a high quality of life for their residents. TEA-21 gives communities and states many opportunities in choosing transportation facilities and services that best meet local transportation priorities. The National Highway System, Surface Transportation Program, Congestion Mitigation and Air Quality Improvement and transit programs each have broad eligibility and flexibility. This means that states and local areas can tailor the use of federal funds to best meet their needs whether they are for transit, bicycle/pedestrian facilities, highways, ride-sharing programs, safety projects, intermodal connections or other improvements. Intelligent transportation system technology will help make communities more livable by reducing traffic congestion, managing traffic flows of people and goods, and assisting with local responses to transportation emergencies.

The Department of Transportation's programs and activities work in close partnership with those of other federal agencies to provide states and communities with a combination of resources and tools. For example, metropolitan transportation plans and metropolitan and statewide Transportation Improvement Programs must conform to state air quality plans approved by the Environmental Protection Agency (EPA) to ensure that our air is getting cleaner. Cities and counties that have established enterprise communities and empowerment zones to spark new life in long dormant and neglected areas know how transportation can contribute to getting workers to jobs and customers to goods and services. Communities seeking to preserve the heritage of the past and to build a prosperous future can bring together such programs as DOT's Transportation Enhancement Program and Treasury's historic preservation tax credits with HUD's Community Development Block Grant program to turn deteriorated neighborhoods into attractive places to live and work. Such local partnerships give added power and reach to any single agency's contribution.

Specific TEA-21 programs give states and communities even more tools to carry out projects for enhanced livability.


Advanced Vehicle Technologies Program
TEA-21 authorized the Department to enter into partnership with other government agencies and private consortia to promote the research, development, and deployment of transportation technologies that will use technological advances in medium and heavy-duty vehicles, vehicle components, environmental technologies, and related infrastructure to improve energy efficiency and reduce environmental emissions, including greenhouse gases. The first year for which the Act authorized funding was FY 1999 and the Department has committed a total of $5 million to the program. TEA-21 will enable DOT to leverage over $250 million of defense and non-federal funds to deploy civilian advanced vehicle technologies.

Environmental Streamlining
DOT is providing national leadership on environmental streamlining and is working with the headquarters offices of other national environmental, resource, and permitting agencies to develop a national memorandum of understanding (MOU) which pledges their commitment to improved decisionmaking while ensuring that all environmental requirements are met. The MOU, now expected to be signed in July 1999, sets the framework for facilitating progress at the state and local levels among state transportation and resource agencies and their federal partners. Pilot activities are currently being supported and best practices are being highlighted. A pilot/best practices tool kit was distributed on June 1, 1999, to further encourage states to begin to develop creative responses to streamlining challenges. Support for early involvement by federal resource agencies in the project development process may be facilitated by guidance that helps states transfer a portion of their federal aid to reimburse resource agencies for quicker processing. Additional efforts to establish performance measures and obtain input from stakeholders are being pursued. We expect to issue shortly a Federal Register notice on the availability of information on environmental streamlining. As noted under "Planning," FHWA and FTA are also working jointly to develop revised planning and environmental regulations.

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Expanding Opportunity

Disadvantaged Business Enterprises
In TEA-21, Congress reauthorized the 16-year old Disadvantaged Business Enterprises (DBE) program, which has been the Department's primary tool for promoting equal opportunity for minority and women owned businesses in federal transportation contracting. TEA-21 continued the existing DBE program and mandated the General Accounting Office to conduct a nationwide study comparing program impacts on DBE and non-DBE firms. DOT's new DBE program final rule was published on February 2, 1999. This rule responds to over 900 public comments on two previous proposed rules. It also responds to court cases dealing with the DBE program, reflecting the 'strict scrutiny' (including 'narrow tailoring') standard articulated by the 1995 Supreme Court decision in Adarand Constructors v. Peña.

The FHWA DBE Supportive Services (DBESS) program enhances the objective of the DBE program. Funds are allocated to state Departments of Transportation to undertake a DBESS program designed to assist certified DBE firms in becoming self-sufficient. A total of $6.6 million was allocated to 43 states in FY 1998. In FY 1999, $8.1 million was allocated to the 50 states, the District of Columbia, Puerto Rico and the Virgin Islands.

Access to Jobs
TEA-21 authorized the Job Access and Reverse Commute program to provide competitive grants for transportation services to (1) connect welfare recipients and other low income persons to jobs and other employment-related services, and (2) improve reverse commute services to allow central city residents better access to suburban jobs. These funds will assist states and localities in developing flexible transportation services, such as shuttles, vanpools, new bus routes, connector service to mass transit and guaranteed ride home programs. On May 13, 1999, a total of $71.3 million in grants were announced under this program to assist communities in funding 179 projects across the country; the selected proposals will receive funding on approval of an FTA grant application.

Rural Transportation Accessibility Incentive Program
On September 24, 1998, the Department of Transportation issued a final rule amending its Americans with Disabilities Act regulations to require the accessibility of new over-the-road buses (OTRB) and to require accessible OTRB service. The new rule applies both to intercity and other fixed-route bus operators and to demand-responsive operators. The rule requires operators to ensure that passengers with disabilities can use OTRBs.

The OTRB program in TEA-21 authorizes FTA to make grants to operators of OTRBs to finance the incremental capital and training costs of complying with the final rule. A total of $2 million is provided for intercity fixed route operators in FY 1999. FTA has issued program guidance and application instructions, and is currently reviewing applications submitted for FY 1999 funds. Grant awards are expected to be announced later in 1999.

Rural Transportation Initiative
TEA-21 provides more money that ever before for our rural communities and towns to improve safety, to provide mobility through improvements in our transportation infrastructure, and to strengthen proven strategies to safeguard public health and the environment. It places greateremphasis on the involvement of rural local officials in the required statewide planning process. TEA-21 is an opportunity for small communities and rural areas to support economic growth and to respond to social and demographic changes as well as to improve safety (even as travel continues to increase) and to continue to preserve and enhance the environment.

Since enactment of TEA-21, we have conducted nine regional workshops on rural transportation planning. Each workshop involved between four and six states. Representatives of the state DOTs have attended as well as local officials including county engineers, county and town officials, regional planning agencies and rural transit operators. The workshops have gathered the state and local perspectives on how the state plan is developed, each party's role and responsibility, funding, integration with other types of plans, successful practices and other issues. With the assistance of the National Association of Public Administrators, we will prepare a report to Congress on how local officials are involved in the development of state transportation plans. We have also had each state document their process for involving local officials.

Appalachian Development Highway System
The Appalachian Development Highway System (ADHS) program provides funds for the construction of the Appalachian corridor highways in 13 states to improve infrastructure and enable economic development in the region. Completion of the ADHS will help Appalachian residents have access to health care and education, as well as jobs. Congress has authorized 3,025 miles for the ADHS; about 2,300 miles are open to traffic and another 110 miles are under construction. Projects to complete the remainder of the systems are in preliminary or final design stage. FHWA and the Appalachian Regional Commission are working on a memorandum of understanding and implementation guidance for the 13 states. In May of 1999, DOT co-hosted an Appalachian Intermodal Transportation Summit in Lexington, Kentucky.

Labor Protection
DOT is continuing to work with financial assistance recipients to promote vital labor protections for transportation workers on DOT-assisted construction projects. In order to implement a June 5, 1997, memorandum from the President, DOT issued a memorandum on April 22, 1998, encouraging each operating administration to authorize and promote the use of project labor agreements by its financial assistance recipients for DOT-assisted construction projects. Based on input received from various sectors of the highway industry, including the AFL-CIO's Building and Construction Trades Department and the Associated General Contractors, as well as Departmental guidance, FHWA has issued implementing instructions, and plans to provide written guidance later in 1999.

On-the-Job Training/Supportive Services
TEA-21 expanded the purposes for which On-the-Job Training Supportive Services (OJT/SS) funding may be used, and authorized the Secretary to deduct up to $10 million per fiscal year from Surface Transportation Program funding to enhance the effectiveness of highway construction and technology training, skill improvement programs, and to develop and fund Summer Transportation Institutes. TEA-21 also, with some exceptions, allows a state to reserve training positions for persons who receive welfare assistance from that state.

In FY 1998, FHWA obligated $8.9 million for OJT/SS programs. Twenty-seven states were funded to address the needs of federal-aid highway construction contractors, apprentices and trainees with a focus on welfare-to-work, retention of women in highway construction, and a diverse transportation workforce. Also through a cooperative agreement with the FHWA, theNational Urban League is developing and implementing a national program beyond state-based programs to (1) inspire inner city youth to achieve academic success in subjects related to transportation fields and (2) to prepare welfare recipients and other low-income individuals for employment in highway construction and transportation technology careers.

For FY 1999, $8.8 million was available for OJT/SS programs. The FHWA formally established the National Summer Transportation Institute (NSTI) and entered into a cooperative agreement with South Carolina State University, an Historically Black College and University, to serve as the NSTI Resource Center. The Institute is designed to familiarize youth with challenging transportation career options and to ensure a trained diverse workforce for the future. The intermodal Summer Transportation Internship Program for Diverse Groups also was funded and expanded nationwide. The remaining FY 1999 funds will be distributed to states to administer initiatives to further meet the needs of federal-aid highway construction contractors, apprentices and trainees with a focus on careers in highway construction and the transportation industry.

Garrett A. Morgan Initiatives
The Garrett A. Morgan Technology and Transportation Futures Program seeks to interest students of all ages in transportation careers and to ensure that they have the knowledge and skills to pursue them. Through the Morgan Education Roundtable coalition of transportation organizations, educational and non-profit institutions, we have built a nationwide entity committed to developing a skilled transportation workforce. Together we have established a school-to-work pilot project that will integrate transportation examples into kindergarten through 12th grade curriculum, creating a model to be used nationwide; developed speaking and informational materials for transportation professionals to use when speaking to students in classrooms and at career fairs; created a website that highlights transportation careers in age appropriate language, as well as listing sources for transportation education program information; and mobilized DOT employees across the country to speak to students in schools and on campuses whenever possible. We are well on our way to achieving our goal to reach one million students by the end of the year 2000.

University Transportation Centers
These university-based centers of excellence conduct multidisciplinary programs of transportation education, research, and technology transfer. During the first year of TEA-21, we successfully incorporated into the UTC program 14 new centers that had been designated by Congress. We also conducted a nationwide competition for the 10 regional UTC's, which brought one more new participant into the program. The regional competition generated, for the first time in the UTC program, two applications from HBCUs. While neither was selected to receive a grant, both have been recommended to existing UTCs as prospective partners. Also as a result of the recent competition, the UTC program added its first Tribal college as a member of one Center's consortium. Under TEA-21, there are now 33 UTCs, headquartered in 28 states across the nation, that receive annual grants ranging in size from $275,000 to $1,800,000. Under new program requirements imposed during the first year of TEA-21, we now manage the UTC program through a performance measurement system that will allow DOT to provide quantifiable measures of the program's success in the future.

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Promoting Economic Growth and Trade

National Corridor Planning and Border Infrastructure Programs
This new TEA-21 program provides a total of $700 million in grants through FY 2003 for projects in trade corridors and at international border crossings to provide safer and more efficient movement of people and goods between Canada, Mexico, and the U.S. Three outreach sessions, held in Michigan, California, and Texas to solicit suggestions and recommendations on how to implement these new programs, confirmed the overwhelming support for these programs and the fact that needs and requests for funding will far exceed the new funding. In response to the November 12, 1998 Federal Register Notice announcing implementation of the programs and soliciting grant applications, 150 funding requests totaling more than $2 billion were received. On May 27, 1999, grants totaling nearly $124 million were awarded for 55 projects in 32 states.

Innovative Financing
TEA-21 builds on the innovative financing initiatives begun under the Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA) to leverage federal resources by encouraging private participation in the delivery of surface transportation infrastructure. These initiatives are intended to supplement the traditional grant assistance by increasing funding flexibility and program effectiveness.

Intermodal Freight Connectors
As required by TEA-21, DOT is completing a study on the condition of and improvements made to National Highway System connectors. There are over 500 freight terminals (port, rail, pipeline, and "freight" airports) served by the NHS. In the conduct of the study, key individualswith experience and expertise in terminal access issues were consulted. The field inventory of freight connectors, including on-site inspections of the NHS connector routes to determine their adequacy and condition, is complete. The analysis of the inventory data is nearing completion. FHWA is also scheduling three outreach meetings with shippers and carriers to solicit their specific freight access needs as they relate to the NHS system with the focus on the connectors. The study will report on the condition of the connectors and investments made on them, identify impediments to making improvements to the connectors, and identify actions to increase physical connectivity for freight intermodal terminals served by the NHS. The report due date is June 9, 2000.

International Data
DOT, primarily through its Bureau of Transportation Statistics, places additional emphasis on improving international trade data through the mandate of TEA-21. This effort is essential to the long-term effort to more fully understand transportation's role as it relates to U.S. global competitiveness and to understand the impact of international trade on the nation's transportation infrastructure.

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Corporate Management and Crosscutting Issues

Year 2000 (Y2K)
The Department continues to make steady progress in addressing our Year 2000 challenges. As of the quarter ending April 30, 1999, 92 percent of all mission-critical systems were fully compliant. All operating administrations, with the exception of FAA and Coast Guard, are 100 percent complete with remediation of their mission-critical systems. FAA is on schedule to complete its Y2K efforts by June 30, 1999; Coast Guard by no later than September 1999.

With Y2K remediation efforts nearing completion, the operating administrations have turned their attention to development of Business Continuity and Contingency Plans (BCCP). These plans address alternatives for performing core business functions in the event unforeseen Y2K problems occur. The BCCPs are due to OMB by June 15, 1999, and testing of the BCCPs will continue over the summer.

FHWA Field and Headquarters Restructuring and Reorganization
The FHWA's restructuring is well underway in both its field and Headquarters offices. The Agency's field restructuring became operational on October 1, 1998, with the establishment of four resource centers designed to support the Agency's state-level Division offices and serve the Agency's customers and partners by providing enhanced program and technical assistance, training, technology delivery, and intermodal and interagency coordination.

The new Headquarters matrix organizational structure became operational on February 1, 1999. It consists of five core business units (Infrastructure; Planning and Environment; Operations; Motor Carrier and Highway Safety; and Federal Lands Highway), and eight cross-cutting service business units (Policy; Research, Development, and Technology; Administration; Chief Counsel; Civil Rights; Public Affairs; Corporate Management; and Professional Development).

This restructuring enables the FHWA to focus resources on core businesses that are aligned with the Agency's strategic goals and objectives as it implements the provisions of TEA-21 and moves forward to meet the transportation challenges of the 21st Century.

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Apportionments and Allocations

This page last modified on August 9, 1999
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