TABLE OF CONTENTS
Overview of TEA-21
How TEA-21 Affects the Environment
     Continued Federal Transportation Programs
     The Transportation Planning Process
     Innovative New Programs
     Additional Areas of Concern
NRDC's Implementation Priorities

Overview of TEA-21

On June 9, 1998 President Clinton signed the Transportation Equity Act for the 21st Century (or TEA-21) authorizing federal highway, highway safety, public transit, and other surface transportation programs for the next six years. Although the bill has been criticized for its high levels of spending (up to $217 billion over its lifetime) and the 1,850 local, individual transportation projects (sometimes called "pork barrel projects") included within it, TEA-21 is much more than just a budget-busting highway bill with high levels of pork; it is also an important piece of environmental legislation.

TEA-21 builds upon, and to a certain degree institutionalizes, the innovative program structure introduced in the landmark Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA). As was the case under ISTEA, for example, one significant component of the law is that most of the money can be allocated, at local option, to a number of potential uses. Some of the funding initially placed in a "highway" category, for instance, can be shifted to other uses. This makes it extremely important that TEA-21 be wisely implemented at the state and local levels. Although the large amount of funding authorized by TEA-21 could be used largely to pay for projects that increase automobile dependence and degrade the environment, the majority can also be used for a variety of measures -- from high occupancy vehicle lanes to transit to bike trails -- that reduce air and water pollution, create sustainable land use patterns, and enhance communities.

The law also contains numerous environmental programs and safeguards that were first introduced in ISTEA. These include: metropolitan and statewide planning requirements; a strong local role in the decision-making process; requirements for public participation; dedicated funds (that is, funds that cannot be shifted to other categories) for cleaning up the air in our metropolitan areas; and community enhancement funds. In addition, TEA-21 has several new programs that benefit the environment. These include a pilot program to improve the integration of land use and transportation planning, a job access program to use transit to move people from welfare to work, and a clean fuels program for mass transit systems.

Overall, TEA-21 provides an excellent tool to create a diverse and environmentally sustainable transportation system for the 21st century -- if it is properly implemented by federal, state, and local governments and metropolitan planning organizations, and properly guided by citizen input. However, it is only a tool to get to where we want to go. If we revert to the highway-only mentality that dominated transportation thinking for much of this century, we will only throw ourselves deeper into the grips of unnerving traffic congestion, poor air quality, and a diminished quality of life in both cities and suburbs.

It's not easy to leave the highway mindset behind, but after ISTEA passed in 1991 a number of communities rose to the occasion and used federal funds to create new transportation solutions -- from bike paths to mass transit to better land-use patterns-that are people -- centered rather than just car-centered. It is our judgment that TEA-21 will help keep those efforts on track.

How TEA-21 Affects the Environment

In preparation for the implementation of TEA-21, this document provides a basic description of programs and requirements that protect and enhance the natural environment and improve the quality of life in cities and towns across the country. Each of these programs and requirements are discussed below. In addition, there is a discussion of several areas of concern in the new transportation law. At the end of the document, we will briefly discuss NRDC's implementation priorities for TEA-21 over the coming year.

(Note: Some of the information below was derived from the Federal Highway Administration's report titled Transportation Equity Act for the 21st Century: A Summary. An electronic version is available on the agency's website. The FHWA document also describes the major highway and transit funding categories. Additional information for this paper came from the Surface Transportation Policy Project, a coalition of organizations (including NRDC) that worked in Congress to maintain ISTEA's innovative and environmentally-friendly program structure. STPP will also be working on the new law's implementation. The organization's TEA-21 web page also contains valuable information on the law.

CONTINUED FEDERAL TRANSPORTATION PROGRAMS

Overall Program Structure and Funding Flexibility

One of the most important environmental accomplishments in enacting TEA-21 was the preservation of the program structure created in ISTEA. Despite a concerted effort by some to turn the transportation legislation to a block-grant program with few rules and little federal oversight, TEA-21 maintains a strong emphasis on a balanced transportation system with programs dedicated to such important needs as mass transit, preservation of existing infrastructure, safety, and the environment, as well as highways. In fact, the new law increases the overall percentage of funding for system preservation, transit, transportation enhancements, and projects that improve air quality, while decreasing funding for the construction of new roadway capacity. (The new law also retains the structure of ISTEA with regard to transportation planning, discussed in another section below.)

Another important provision maintained in TEA-21 is the ability to transfer funds between funding categories. This provision was designed to ensure that state and local communities have the flexibility to create solutions that best meet their transportation needs. As in ISTEA, a substantial portion of funds from highway categories can be spent on all surface transportation modes, including transit, bicycle and pedestrian projects, and other transportation improvements. This funding flexibility provides opportunities for projects that promote alternative modes of transportation, help conserve and protect the natural and built environments, and make communities more livable.

Congestion Mitigation and Air Quality Improvement Program (CMAQ)

The CMAQ program, first introduced in ISTEA, provides funding to help state and local governments meet national clean air standards. Almost any project that demonstrates its ability to reduce air pollution is eligible for funding. Typical categories of projects include transit improvements, shared-ride services, traffic flow improvements, pedestrian and bicycle strategies, and vehicle inspection and maintenance programs.

In TEA-21, the CMAQ program will receive $8.1 billion for the 6 years of the bill, an increase in both the absolute dollar amount and the share of the total spending compared to ISTEA. Funds are allocated to metropolitan areas that need it the most: i.e., those that currently do not meet EPA's National Ambient Air Quality Standards (nonattainment areas) as well as former nonattainment areas that are now in compliance (maintenance areas). CMAQ was hotly contested in the Congressional debate over TEA-21, and retaining this dedicated funding source for projects that help improve air quality is a huge victory for the environment. Although proposals were introduced to allow CMAQ funds to be spent specifically on widening highways and more generally on a variety of highway projects at state option, they were wisely defeated. Only a tiny fraction of CMAQ funds may be transferred to other kinds of projects.

Transportation Enhancements

Although not a large percentage of total funding, the Enhancements Program is extremely popular because it provides dedicated support for highly visible, community-based projects, such as bike and pedestrian trails and historic preservation. Over the life of the 6-year bill, the Enhancements Program will receive approximately $3.3 billion, an increase in both the absolute dollar amount and the share of total spending compared to ISTEA. Projects eligible for Enhancements funds include bicycle and pedestrian facilities, preservation of historic transportation facilities, scenic or historic highway programs, and mitigation of water pollution due to highway runoff. As in ISTEA, these funds will continue to enhance the quality of life in communities across the country and in protecting the natural environment.

Beyond the basic Enhancements category, a new element of TEA-21 is that one percent of block grants for transit in communities with populations of over 200,000 must be spent on transit enhancements. Eligible projects include: pedestrian access and walkways, bike storage facilities, bike-on-bus racks, public art, and enhanced transit access for persons with disabilities.

Bicycle and Pedestrian Facilities

Compared to its predecessor, TEA-21 more fully recognizes bicycle and pedestrian facilities as part of the national transportation system. The changes under TEA-21 include the following: Surface Transportation Program funds can now be used for off-roadway safety improvements for bicycle facilities; bicycle and pedestrian trails are now eligible for funds under the Hazard Elimination Program; pedestrian walkways are now eligible for National Highway System funds; and the safety of bicyclists and pedestrians should be considered in designing new or reconstructing existing facilities.

Miscellaneous Environmental Programs

Other positive environmental elements in TEA-21 include:

• Over $29 billion in dedicated funding for transit, with the possibility of adding $12.65 billion from the General Fund over the life of the bill.
  
  
• The Value Pricing Pilot Program (formerly the Congestion Pricing Pilot program) to use market-based user fees to help reduce congestion and air pollution, and promote energy efficiency.
  
  
• The Federal Lands Highways Program providing $4.1 billion over 6 years for Native American Reservation Roads, Park Roads and Parkways, Public Lands Highways, and a new category of Refuge Roads (for access to or within the National Wildlife Refuge System). Transit is now eligible for funding in this program.
  
  

THE TRANSPORTATION PLANNING PROCESS

Metropolitan and Statewide Planning

In another major environmental accomplishment, TEA-21 retains the key safeguards of the metropolitan and statewide planning processes that were at the heart of ISTEA. These include public participation in the transportation planning process, fiscally constrained transportation plans, transportation plans that address multiple modes of transportation (i.e., transit and bicycle and pedestrian facilities, as well as highways), and the inclusion of numerous stakeholder groups in the planning process. NRDC strongly supports these requirements.

The most visible change to the metropolitan and statewide planning process was the consolidation of 16 metropolitan and 23 statewide planning factors into 7 broad areas of consideration: (1) economic vitality; (2) safety and security of the transportation system for all modes of travel (including nonmotorized users); (3) accessibility and mobility options for people and freight; (4) protection and enhancement of the environment, promotion of energy efficiency, and improved quality of life; (5) integration of the various modes of the transportation system; (6) efficient system management and operation; and (7) preservation of the existing system. Consideration of these factors remains mandatory, notwithstanding attempts to make them optional. Unfortunately, however, the law also now includes a clause insulating the planning process, plans, or projects from legal review on the sole basis that one of these factors has been overlooked.

Other important changes relevant to the planning process include so-called "environmental streamlining" and amendments affecting major investment studies, both discussed immediately below. Other planning changes include further involvement of local officials (especially in nonmetropolitan areas), an expanded list of stakeholders that now includes freight shippers and public transit users, and authority for planners to create an illustrative list of projects in transportation plans in case additional funding becomes available.

Environmental Streamlining

One of the most contentious environmental struggles in the ISTEA reauthorization was the desire by some to amend the procedures under which transportation projects are evaluated pursuant to other environmental statutes, including the National Environmental Policy Act (NEPA). Fortunately, the end result was a provision that does not substantively amend these laws in any way, but only establishes a process for agencies reviewing a proposed project to enter into memorandums of understanding and set up time frames for the review process. This essentially codifies the preference for concurrent review, when practicable, expressed in current Council on Environmental Quality (CEQ) regulations interpreting NEPA.

Time frames established in these memorandums may be readily extended by mutual agreement between the federal DOT and another reviewing agency; however, if an agency misses an agreed-upon deadline, DOT can take steps to close the record on that specific matter. Further, TEA-21 includes a strong savings clause to ensure that NEPA and other environmental statutes are not negatively impacted by the environmental streamlining amendment. In consultation with CEQ, DOT will be issuing regulations to implement this section.

Major Investment Studies

Under ISTEA and its implementing regulations, when a metropolitan area considered a major transportation investment it was required to conduct major investment studies (MIS), considering reasonable alternatives, to develop or refine plans for a transportation corridor. For each alternative, the MIS was required to consider the following factors: direct and indirect costs of constructing the project; mobility improvements; social, economic, and environmental effects; safety; operating efficiencies; land use and economic development; and financing and energy consumption. This process helped to level the playing field between highway and transit and provided a bridge between the planning process and the environmental review.

In TEA-21, the federal DOT is required to integrate this analysis with procedures for planning and the review of environmental impacts under NEPA. Until new regulations are issued integrating MIS with planning and NEPA, the current MIS regulations apply to major investments, just as they did before the passage of TEA-21. Indeed, the strengths of the MIS process (i.e., substantive analysis, early in the process) should remain if this section is implemented in a manner that conforms to the intent and language of TEA-21. Again, new regulations will be developed.

INNOVATIVE NEW PROGRAMS

Transportation and Community and System Preservation Pilot Program

This pilot program (strongly supported by NRDC and our partners) provides grants totaling $120 million over six years for state and local governments and metropolitan planning organizations to better integrate the transportation and land use planning processes. The goals of the pilot program are to improve the efficiency of the transportation system, reduce the impacts of transportation on the environment, reduce the need for costly investments in public infrastructure, and promote efficient access to jobs, services, and centers of trade. Among the activities eligible for these funds are traffic calming devices, transit-oriented development plans, and other measures to enhance the integration of land use and transportation planning. Although the total funding level is not large, this program could have a positive impact on the ability of metropolitan areas to reduce the environmental and social impacts of rapid suburban development.

Clean Fuels Formula Grant Program

In an effort to help reduce greenhouse gases and other air pollution in metropolitan areas, TEA-21 authorizes $1 billion for the Clean Fuels Formula Grant Program over 6 years. Eligible projects include purchasing clean fuel buses and improving existing transit depots to accommodate clean fuel buses. These funds will help transit providers convert their fleets to cleaner burning fuels, such as natural gas, hybrid electric, and fuel cells.

Job Access and Reverse Commute Grants

In TEA-21, Congress created a new grant program (supported by NRDC and our coalition partners) to improve public transit to provide better access to jobs for welfare recipients and low-income households, particularly to allow residents in urban and rural areas to get to jobs in suburban locations. The Job Access and Reverse Commute Grants Program is funded with $400 million from the Transit Account over 6 years and, if appropriated, an additional $350 million from the General Fund. Eligible projects include adding transit routes from urban areas to suburban workplaces, purchasing buses and vans dedicated to shuttling employees from residences to suburban workplaces, and promoting the use of transit vouchers by low-income individuals.

Workplace Transit Benefits

In a move to level the playing field between employer-provided parking benefits and transit benefits, TEA-21 increases the limit on tax-free transit and vanpool benefits from $65 to $100 per month. Although the benefit is still not as high as for parking (which remains at $175 per month), it can go a long way toward assisting transit-dependent workers and further promoting the use of transit.

ADDITIONAL AREAS OF CONCERN

High Levels of Overall Funding

The total funding levels in TEA-21 are dramatically higher than funding levels in ISTEA (a likely overall increase of 37 percent in federal transportation dollars). If these funds (the majority of which are flexible between categories) are used properly, the environment will be protected and our quality of life will improve. Unfortunately, with poor implementation, these funds could also be used to further automobile dependence and urban sprawl in metropolitan areas, thereby increasing traffic congestion, air pollution, land consumption, and other environmental impacts.

Pork Barrel Projects

TEA-21 contains funding for 1,850 pork barrel projects amounting to $9.3 billion. This is around five percent of the total value of the bill. Although some of these funds are for transit projects and bicycle and pedestrian facilities, other funds will be used for sprawl-inducing highway projects. Despite the fact that some of the funds will be used to advance environmental objectives, NRDC opposes the Congressional dedication of funds for individual projects because such projects trump local control of transportation decisions -- a key tenant of both ISTEA and TEA-21.

Anti-Environmental Riders

Unfortunately, two environmental provisions, which are unrelated to the transportation legislation, were added to TEA-21 at the last minute, during the Conference Committee (neither was in the House or Senate bill). One delays the schedule for implementing an EPA rule that limits visibility-reducing air pollution in Western States. The other allows motorized portages between several lakes in the Boundary Waters Canoe Area in Northern Minnesota.

Ozone and Particulate Matter Standards

Another unrelated amendment concerns the standards adopted by EPA under the Clean Air Act for ozone smog and particulate matter (soot). In particular, in 1997 the standard for ozone was strengthened while a new standard for fine particulate matter (PM) with a size of less than 2.5 microns was created. NRDC strongly supported these changes.

During the reauthorization debate on TEA-21, proposals were considered that would have significantly compromised the enforcement of these standards. Fortunately, the most damaging aspects of the proposal were withdrawn. For PM_2.5, TEA-21 ensures the establishment of a timetable for monitoring and requires that EPA pay states 100 percent of the costs of establishing and operating the monitoring network. The law also codifies EPA's pre-existing timetable for designating the boundaries of ozone and PM_2.5 nonattainment areas.

NRDC'S Implementation Priorities

As is shown above, TEA-21 provides a number of features important to sustainable transportation investment and protecting environmental quality. The regulations, guidance, and implementation of these provisions will be critical to whether they support or discourage efficiency in transportation planning and investment. NRDC will play an active role in ensuring that TEA-21 is implemented so that the natural environment is protected and quality of life is improved. Among our priorities are the following:

• Ensure that the NEPA streamlining amendment is interpreted in a manner that continues to allow adequate, meaningful agency and public involvement in the environmental review process and that allows adequate time for relevant information to be gathered and analyzed.
  
  
• Ensure that the MIS process is integrated into the NEPA and planning processes in such a way that alternatives to highways are still considered at an early stage in the process.
  
  
• Help structure the Transportation and Community and System Preservation Pilot Program in order to better integrate the transportation and land use planning processes.
  
  
• Ensure that the newly-created planning factors are implemented consistent with principles of environmental sustainability and a transportation system that provides choices and reduces automobile dependence.