THE NATIONAL HIGHWAY SYSTEM
DESIGNATION ACT OF 1995
by Nancy Bennett
The National Highway System Designation Act of 1995 (P.L. 104-59) was signed
by President Clinton on Nov. 28, 1995. Summarized below are the major provisions of
the legislation. National Highway System
System Designation
The legislation designates the National
Highway System (NHS), developed by the Department of Transportation (DOT) in cooperation
with the states, local officials, and metropolitan planning organizations (MPOs).
DOT proposed the system to Congress on Dec. 9, 1993, as required by the Intermodal
Surface Transportation Efficiency Act of 1991 (ISTEA). The system approved by Congress
reflects modifications agreed upon by DOT and Congress as of Nov. 13, 1995. The total
mileage is about 260,000 kilometers (160,955 miles) and includes the Interstate Highway
System, as well as other roads important to the nation's economy, defense, and mobility.ISTEA
set a deadline of Sept. 30, 1995, for Congress to establish the system. Until the
system was designated, the law prevented future NHS and Interstate Maintenance (IM)
funds from being released to the states. With the enactment of the NHS legislation,
the $5.4 billion of fiscal year (FY) 1996 funds were distributed to the states.
Future Modifications
NHS is a dynamic system that can change in response to future travel and trade demands.
The NHS legislation permits the secretary of transportation to approve most of the
modifications to the system (except connections to major intermodal terminals, see
below) without congressional approval. The state must cooperate with local and regional
officials in proposing the modifications. In metropolitan areas, the local and regional
officials shall act through the metropolitan planning organizations. Connections
to Major Intermodal Terminals
Within 180 days of enactment, the secretary must send to Congress proposed NHS connections
to major intermodal facilities - ports, airports, rail terminals, etc. There will
be a one-time congressional approval of the intermodal connections. Working with
the state DOTs, the Federal Highway Administration (FHWA) has identified connections
to 1,166 intermodal terminals that warrant being included in NHS. The connections
serve 198 ports, 207 airports, 307 public transit stations, 67 Amtrak stations, 82
intercity bus terminals, 190 rail/highway terminals, 37 ferry terminals, 58 pipeline
terminals, and 20 multipurpose passenger terminals. Collectively, about 2,900 kilometers
of roads and streets, which provide important connections to these terminals, have
been identified for inclusion in NHS.
The completion of this important element of NHS involved FHWA's extensive consultation
with the other modal administrations within DOT, the state transportation agencies,
national organizations, and public interest groups. Criteria were developed through
a collaborative process and used by the states and MPOs to identify terminals which
warrant an NHS connection.
Although the NHS connections must be submitted to Congress for approval, the proposed
connections are already eligible for funding with NHS funds. The NHS Designation Act
established interim eligibility for these connections, pending approval by Congress.
In the future, the secretary may modify the connections proposed by the states
in cooperation with MPOs and local and regional officials.
Safety
National Maximum Speed Limit
This act repeals the law that required
that the states, as a condition of receiving federal-aid highway assistance, adhere
to a national maximum speed limit. The provision will take effect 10 days after enactment.
An exception to the 10-day period is provided if the legislature of a state is not
in session on the date of the bill's enactment and the governor declares, before the
end of the 10-day period, that the legislature is not in session and the state prefers
an applicability date for the repeal of the national maximum speed limit law that
is after the date on which the legislature will convene. If this occurs, then the
federal repeal is applicable to the state on the 60th day following the date on which
the legislature next convenes.The secretary must submit a report to Congress by
Sept. 30, 1997, of the record of each state that raised its speed limit above the
current maximums. The human and economic costs, as well as any benefits, should be
included in the study.
Motorcycle Helmets
The law that penalized states that did
not enact motorcycle helmet requirements is repealed. The penalty was a forced transfer
of funds from federal-aid highway construction programs to safety programs. Zero
Tolerance for Blood Alcohol Content in Minors
The states must enact and enforce a law that considers an individual under the age
of 21 who has a blood alcohol concentration of 0.02 percent or greater while operating
a motor vehicle to be driving while intoxicated or driving under the influence of
alcohol. States failing to meet this requirement will have 5 percent of their highway
construction funds withheld beginning Oct. 1, 1998. The penalty is increased to 10
percent on Oct. 1, 1999, for fiscal year 2000 and for each fiscal year thereafter.
National Driver Register
The $2.55 million authorization of this National Highway Traffic Safety Administration
(NHTSA) safety program is extended for another year. Motor Carrier Provisions
Commercial Motor Vehicle Safety Pilot Program
This legislation establishes a pilot program to exempt vehicles that weigh between
4,500 and 11,700 kilograms (10,000 and 26,000 pounds) and the drivers from the Federal
Motor Carrier Safety Regulations. The program will begin within 270 days after enactment.Applicants
must meet specific requirements to participate. They must have a satisfactory safety
rating or meet criteria established by the secretary. Vehicles transporting more than
15 passengers or hazardous materials are not eligible for the program. Through monitoring
and reporting of safety-related data, the secretary will decide whether participants
may continue in the program.
Within three years of enactment, the secretary must conduct a zero-based review
to determine the need, costs, and benefits of the regulations to determine whether
they should apply to this group of vehicles and their drivers. After the review is
completed, the secretary shall grant such exemptions or modify or repeal existing
regulations as appropriate.
Exemptions From Hours-of-Service Regulations and Commercial Drivers License (CDL)
Regulations
This act provides exemptions from the hours-of-service regulations for specific industry
groups, including: transporters of agricultural commodities and farm supplies, ground
water well drilling rigs, utility service vehicles, and construction equipment and
materials.Replacement drivers of snowplows are exempted from CDL requirements when
the normal operator is unable to operate the snowplow or if a snow emergency requires
additional operators. The secretary is required to conduct a regulatory review of
these exemptions to determine the impact of such exemptions on public safety.
Winter Home Heating Oil Delivery State Flexibility Pilot Program
The secretary is directed to implement a one-season pilot program of up to five states
to permit the states to exempt the hours-of-service regulations for drivers of intrastate
home heating oil deliveries that occur within 160 direct-line kilometers (100 air
miles) of a central terminal or distribution point. The pilot program is limited to
the winter heating season following Nov. 1, 1996. The program requires the states
to meet several safety and enforcement criteria. The secretary may suspend a state's
participation if a state has not complied with the criteria. After the program is
completed, the secretary will review the results to determine whether to amend the
regulations to provide flexibility to motor carriers delivering home heating oil during
winter periods.
Key Leaders in Congress
On Surface Transportation
Issues and Legislation
Senate Environment and Public
Works Committee
Senate Transportation
and Infrastructure Subcommittee
House Transportation
and Infrastructure Committee
House Surface
Transportation Subcommittee
Mitigation of Section 1003(c)
Authorizations
Section 1003(c) of ISTEA required that, in accordance with the Budget Enforcement
Act of 1990, authorizations from the highway account of the Trust Fund for FY 1992-96
be held to $98.6 billion. Authorizations in that period exceeded the limit by $2.55
billion. This meant that FY 1996 authorizations had to be cut 12.54 percent across
the board to hold total funding to the $98.6 billion maximum allowed. The NHS legislation
contains two provisions to partially mitigate the effects of this cut. Funding
Restoration
This law provides in FY 1996 $291.5 million ($266.5 million authorized from specified
rescissions and reductions plus $25 million transferred from congestion pricing funds)
to be distributed to the states by percentages specified in the NHS legislation. In
FY 1997, $180 million ($155 million authorized from specified rescissions and reductions
plus $25 million transferred from congestion pricing funds) will be distributed to
the states.The above amounts are derived from various rescissions, reductions,
and transfers, including:
- Selected demonstration project funds.
- A portion of the administrative funds of FHWA.
- Magnetic levitation prototype development funds for FYs 1996 and 1997.
- High-speed ground transportation technology demonstration funds for FY 1997.
- Part of the FHWA Section 402 safety funds.
- Part of the FY 1997 NHTSA highway safety program funds.
- Unobligated Congestion Pricing Pilot Program funds and FYs 1996 and 1997 authorizations
for the program.
The funding restoration amounts may be used for any project eligible under Chapter
1 of Title 23. They are available for four fiscal years and are subject to the obligation
limitation. They are not subject to administrative takedowns.
Urban areas with more than 200,000 people are guaranteed a certain share of the
funding restoration amounts received by a state.
States may spend up to 0.5 percent of the funding restoration amounts on metropolitan
planning and up to 1.5 percent for State planning and research.
State Unobligated Balance Flexibility
States are allowed to designate part of their unobligated balances that existed on
Sept. 30, 1995, for use on projects of their choice that are eligible under Chapter
1 of Title 23.First, the secretary will determine, as soon as possible, the amount
of unobligated balance that each state may designate for flexible use. That amount
will equal the amount of the reduction of each state's FY 1996 funds as a result of
Section 1003(c) minus restoration funding the state receives under the NHS legislation.
Second, the states will notify the secretary, within 30 days of enactment (or as
soon as possible), which unobligated program funds it will use flexibly. Within 45
days of enactment (or as soon as possible), the secretary must make the funds available
for flexible use.
The funds under this section are available for projects under Chapter 1 of Title
23, will be available for the same period for which such amounts were originally made
available, and will be subject to the obligation limitation.
The restrictions are:
- Unobligated balances of Surface Transportation Program funds attributed for areas
over 200,000 may be used flexibly only if the MPO for a particular area concurs in
writing.
- Transportation enhancement funds and congestion mitigation and air quality improvement
(CMAQ) funds may not be used flexibly unless the state has exhausted all flexibility
and transferability provided under Title 23 and this section and still does not have
sufficient funds available for a project.
- No more than one-third of interstate construction unobligated balances may be used
flexibly.
Innovative Financing
State Infrastructure Bank (SIB) Pilot Program
Up to 10 states or multistate entities are allowed to establish transportation infrastructure
banks; DOT will establish procedures for choosing the participants in the program.
The infrastructure banks may be used to make project loans, enhance credit, subsidize
interest rates, and provide other assistance for eligible highway and transit capital
projects. The funds from the bank may not be used as a grant. The recipients of the
assistance can be public or private entities.No new federal-aid funds are provided
to capitalize the banks. States entering into cooperative agreements with the secretary
to establish infrastructure banks could contribute up to 10 percent of several categories
of their federal-aid highway and federal transit funds to capitalize the bank. Funds
attributable to urban areas with more than 200,000 people could only be used with
permission of the MPO for the area. States must match 25 percent (lower for sliding-scale
states) of the federal contribution with funds from non-federal sources. Federal-aid
funds are considered obligated when contributed to the bank.
By March 1, 1997, the secretary must have reviewed the financial condition of each
transportation infrastructure bank and must report to Congress with an evaluation
of the pilot program.
Eligibility of Bond and Other Debt Instrument Financing for Reimbursement as Construction
Expenses
States are allowed to use federal-aid funds for bond principal, interest costs, issuance
costs, and insurance on Title 23-eligible projects. Although these costs are eligible
for federal participation, such eligibility does not constitute a federal commitment
or guarantee on the part of the United States to provide for payments of principal
and interest. Limitation on Advance Construction
States are permitted to advance construction projects provided the project is on the
states transportation improvement program (STIP). This eliminates the requirements
that: (1) future year authorizations had to be in place in order to advance construct
and (2) the total of advance construction projects could not exceed a cumulative dollar
limit. Toll Roads - Federal Share for Highways, Bridges, and Tunnels
The federal share for toll projects is set at a maximum of 80 percent of eligible
costs. Before this change, the federal share for toll projects varied from 50 percent
to 80 percent, based on activity and system designation. Toll Roads - Loan Program
This act allows federal-aid loans to non-tolled projects with dedicated revenue streams
and permits interest rates at or below market rates, as needed, to make the project
feasible. Repaid funds can now be used to credit-enhance similar projects. Donations
of Funds, Materials, or Services for Federally Assisted Projects
This legislation allows private funds, materials, or services to be donated to a specific
federal-aid project and permits the state to apply the value to the state's matching
share. Before this change, states could receive credit only for donations of private
property incorporated into a federal project or for state and local funds. Mandates/Requirements
In addition to the safety mandates discussed above, the NHS legislation removes
and adds other mandates to the program. Removal of Mandates
Suspension of Management Systems
The states may choose not to implement in whole or in part any of the management systems
required under ISTEA. The secretary may not impose the 10 percent penalty on funds
if the state elects this option.The comptroller general, in cooperation with the
states, is required to report to Congress by Oct. 1, 1996, recommending to what extent
the management systems should be implemented.
Asphalt Pavement Containing Recycled Rubber
The penalty and requirements related to state use of crumb rubber are eliminated.
Metric System
No state may be required to erect or modify any highway signs to the metric system.
Also, until Sept. 30, 2000, any metric activity by the states related to federal-aid
highway projects is optional. Additional Mandates
Quality Improvement
States are required to conduct an analysis of the life-cycle costs of each usable
segment of NHS costing $25 million or more. Value Engineering
States are required to carry out value-engineering analyses for all projects on NHS
costing $25 million or more. Other Provisions
Scenic Byways
A state may exclude from a state-designated scenic byway any segment of highway that
it determines does not possess the scenic criteria for which the byway is designated.
This is a codification of the DOT's interpretation of current law. Motorist Call
Boxes
Signs identifying free motorist-aid call boxes and their sponsorship by corporations
or other organizations are allowed on call boxes and call box posts in highway rights-of-way.
Signs are limited in size, limited to one per every eight kilometers, and 20 percent
must be outside of urban areas. Transportation Enhancements
Streamlining Measures - As an alternative to waiting for reimbursement of funds,
states now have the flexibility to obtain a federal advance of funds for transportation
enhancement activities, provided that the state has a project selection process that
involves other public agencies and citizens who have expertise related to transportation
enhancements.Environmental Compliance - The secretary is directed to develop,
to the extent appropriate, categorical exclusions for transportation enhancements
and to work with the Advisory Council on Historic Preservation and the National Conference
of State Historic Preservation Officers to develop a nationwide programmatic agreement
for the process for reviewing the effects that transportation enhancement activities
have on historic properties.
Applicability of the Uniform Act to Conservation Organizations - Rules
for how to treat land acquisitions made by non-profit conservation organizations where
the land is subsequently incorporated into a transportation enhancement activity are
provided. In general, the conservation organization would be treated as a private
property owner, except when acting as an agent of a state government or when acquisition
has prior federal approval.
Transportation Conformity
This act clarifies that the transportation conformity requirements of Title 23 and
the Clean Air Act Amendments of 1990 (CAAA) apply only to areas designated as "nonattainment"
and to areas that are redesignated to attainment and must submit a maintenance plan
under the CAAA. A conformity analysis only needs to be done for specific transportation-related
pollutants for which an area is designated as nonattainment. Congestion Mitigation
and Air Quality Improvement (CMAQ) Program
The amount of CMAQ funds apportioned to each state is frozen to FY 1994 levels. Funds
may be used in areas designated as nonattainment or in maintenance areas that were
formerly nonattainment areas under the Clean Air Act. In addition, states now have
the ability to receive credit against their share of project costs through donations.
More
information about the National Highway System Designation Act of 1995 is available
on the Internet World Wide Web. The easiest way to access this information is to go
to the Department of Transportation home page (http://www.dot.gov) and then, in turn,
click on Browse DOT Administrations, Federal Highway Administration, What's New, and
NHS Designation Act of 1995.
Nancy Bennett is chief of the Program Coordination and Legislation
Team in FHWA's Office of Policy Development. She has worked in FHWA for 23 years.
