A move in the right direction - TEA-21.

Everybody gets a little something from the new 400-page transportation act. The best part is that states decide what needs to be done.

States are winners," says Colorado Senator Richard Mutzebaugh about the new federal Transportation Equity Act for the 21st Century, or TEA-21. The largest public works bill in history, it benefits highways, transit, technology, environmental programs anti jobs. And it gives states what they have wanted all along - transportation money for transportation projects. Mutzebaugh sees the act as a "positive step for states" and says he hopes the momentum "continues in this direction."

Congress in May passed TEA-21, which reauthorized the Intermodal Surface Transportation Efficiency Act (ISTEA) that had expired last year. Under it, states have more funding, more flexibility and many incentives to improve transportation safety.

"There's something for everyone. It's an historic move forward to rebuild, renovate and protect the nation's transportation infrastructure," says Maryland Delegate Carol Stoker Petzold. It also gives states the economic wherewithal they need to pull off creative transportation solutions. The act authorizes over $217 billion over the six-year period of 1998 to 2003: $175 billion for highways, $41.4 for transit, $2.2 for highway safety and $650 million for motor carrier safety grants.

Some charge that TEA-21 is a return to "pork barrel" spending, and it does contain more than 1,800 specific "high priority" projects. For example, a small town in Alaska will get a bridge, California will fix up an historic train depot, Pennsylvania will improve a business park and New York will work on a county road. But California Senator Betty Karnette says, "It's not pork, and it's misleading to call it that. Transportation is important to all of us and to the economy."

Pork or priority aside, TEA-21 is good news for states. Here's a brief rundown of what's in the 400-plus pages of the act. The key themes include funding mechanisms, highways and transit, traffic safety, environment and jobs.

DIVIDING UP THE MONEY

"Take the highway trust fund off-budget" was the battle cry for states and highway users who wanted to keep highway money from going to the general fund to offset the federal deficit. Congress finally reached a compromise to solve this pervasive debate. The majority of the funding in the $218 billion act is guaranteed for transportation. Some $198 billion must be spent only for highway, transit and safety programs. It cannot be diverted elsewhere during the appropriations process. This practically ensures that tax revenues deposited into the trust fund will be spent annually on transportation improvements.

"States have something they can count on with the guarantees in funding," Petzold says. "It allows them to move ahead with long-range planning to repair and improve failing transportation infrastructure."

The only thing the guarantee doesn't do is ensure that highway trust fund money will actually be spent. Congress could choose not to appropriate the full amount and just let the money carry over to the next year. There is little incentive to do that, however, since the money cannot be spent on anything but transportation.

TEA-21 solves another old controversy by ensuring greater equity for the "donor" states. Under the old ISTEA, donor states contributed fair more to the federal highway trust fund than they got back. Some states, such as Florida and Texas, got back only 77 cents per dollar, as compared to a state like Massachusetts that received $2.49 for each dollar spent. All states are now guaranteed a minimum 90.5 percent return on money deposited in the trust fund. "The act distributes the money more proportionately, and most states, especially Western states, will receive more money," says Mutzebaugh.

MAKING TRAVEL EASIER

"California has a desperate need for transportation improvements," says Karnette. Infrastructure, roads and strengthening bridges against earthquakes are just some of the items she mentions. With the guaranteed 90.5 percent return on funds automatically going into state transportation coffers, TEA-21 will answer many needs. In order to get projects going sooner, the act reforms some ISTEA provisions. Environmental streamlining will reduce highway and transit project delays. Procedures for project approval have been improved to give states more responsibility on projects that don't involve an interstate.

Connecting national highways with other kinds of transportation, like rail, is another focus of the legislation. The NAFTA and GATT international trade agreements potentially open up new markets between the United States, Canada and Mexico. The economic benefits will not be felt, however, unless products are moved efficiently. TEA-21 sets up a border-crossing program to make sure that people and products move safely between the countries. Several highways have been identified as "trade corridors" where the flow of commercial traffic will be the heaviest. A $700 million fund is available for the planning, design and construction of these routes in states that meet the corridor criteria. The fund includes $30 million for construction projects needed for law enforcement activities in the border states.

Although TEA-21 channels billions of dollars into road projects, it also authorizes more than $40 billion in transit funds. Cities and rural areas will both gain. Not only will new transportation systems be built, existing ones will be upgraded. For example, these funds will help ensure that Utah and the organizers of the 2002 Salt Lake City Olympics will have the resources they need to make the winter games a success. An interesting benefit of the act is a $100 per month tax-exempt employee allowance for transit users. Now commuters will be on a level with drivers who receive a parking benefit. Delegate Petzold sees these incentives to use transit as important for congested metro areas.

High tech transportation got a financial boost with $196 million in funding for 1998 and an increase to $232 million by 2003. Known as intelligent transportation systems, these projects combine automotive technology, computers, communications and electronics to make travel easier, reduce congestion and improve safety in a cost efficient manner. Examples include in-vehicle mapping systems, electronic message signs giving motorists traffic information and sophisticated traffic control centers. The Department of Transportation will fund projects to test and deploy projects and develop systems that "talk and listen" to one another so the technologies can work together. One goal of the program is to educate federal, state and local government officials about intelligent transportation systems so that they can give them full consideration in the transportation planning process.

$2.2 BILLION FOR SAFETY

Traffic safety is a top priority, says Transportation Secretary Rodney Slater, and the act reflects this focus. But states and the federal government don't always see eye to eye on how to make the highways safer. States don't like the federal government telling them what to do and how to do it, with the threat of monetary sanctions if they don't jump through the necessary hoops. One of the biggest issues for states was the widely publicized sanctions proposed by the Senate to force states to enact laws reducing to .08 the blood alcohol limit for legal driving. "States have been responsive to dealing with drunk driving," Mutzebaugh says. "We don't need the federal government telling us we need .08." States won out when this proposal was dropped in favor of an incentive program.

Incentive grants from a fund of $500 million are available to states that have enacted and are enforcing .08 laws. Currently, 15 states have such laws. Other drunk driving prevention programs also are encouraged through incentive grant funding for counter-measures such as driver's license suspension, graduated licensing for new drivers or programs that demonstrate a reduction in alcohol related fatalities. Some federally imposed penalties did find their way into the law. States that do not enact laws prohibiting driving with an open container in the car and increasing penalties against repeat drunk-driving offenders will find a small amount of highway funds redirected into safety programs. Because the states do not lose any money, these penalties are not considered sanctions.

Keeping everyone safe in the car is another way for states to get money. The act offers incentive grants to encourage programs that increase seat belt use and reduce highway deaths. Through one part of the incentive program, the transportation secretary will make grants to states that adopt primary safety belt laws, which allow a law enforcement officer to pull a driver over solely for not wearing a seat belt. Additionally, there are grants available for states that meet certain criteria for improved highway safety data collection, as well as grants for education in child protection.

Safety must be factored into planning city and statewide transportation infrastructure programs. Motor carrier safety programs carried over from the old act. The programs have been modified, however, to target the biggest risks. The Motor Carrier Safety Assistance Program gives states money to enforce commercial vehicle safety and hazardous materials transportation. It covers roadside driver and vehicle inspections, traffic enforcement and compliance reviews.

NOT JUST ROADS

"The TEA-21 legislation preserves and even advances ISTEA's emphasis on a more balanced transportation system and on the environmental and social consequences of transportation investment," says Hank Dittmar of the Surface Transportation Policy Project. Although the act contains many social and environmental provisions, proponents of growth management and environmental activists worry that the massive funding will continue a focus on new roads rather than on transportation alternatives. Too many roads with too many cars may defeat the benefits of the other environmental programs. But states will have the opportunity with TEA-21 money to address their own environmental issues and implement many new projects other than roads.

The act continues the Congestion Mitigation and Air Quality Improvement Program with approximately $1.2 billion in 1998 increasing to $1.4 billion in 2003. The program tries to reduce air pollution from cars and cut back on traffic congestion by encouraging greater use of carpools, mass transit and bicycles. The money under ISTEA went to areas that failed to attain federal air quality standards for ozone and carbon dioxide. TEA-21 expands those categories to include areas that do not meet standards for fine particulate matter.

Other new features available to eligible states and cities include authorization to enter into public-private partnerships projects. To soften the ISTEA restrictions on how congestion mitigation and air quality improvement money is spent, TEA-21 allows 50 percent of the increase in funds from FY 1997 to be applied to any project under the core highway program. That means that a small amount of these funds could go to building a new road. The legislation promises a thorough study of the air quality program by the National Academy of Sciences, which may answer some of the questions that have been raised about whether it works at all or is the best way to deal with car pollution.

ISTEA introduced the notion of setting aside money solely for "transportation enhancements" like bicycle and pedestrian trails and scenic highways. The desire to improve the cultural, aesthetic and environmental qualities of communities continues in TEA-21. More of these projects will be possible with the funding approved in the act.

In addition, TEA-21 provides new opportunities to fix up areas around mass transportation centers. It includes money for historic preservation, rehabilitation of stations, landscaping and scenic beautification, bicycle access, transit connections to parks, and easier access for people with disabilities. Transportation museums and pedestrian and bicycle safety activities are now eligible for enhancement money. Mutzebaugh, however, questions the inclusion of enhancements in this legislation and feels "it should be done locally."

The money that fishermen and recreational boaters spend for fuel will now provide better protection for natural resources, improve boating safety and create more recreation areas under TEA-21. The law's provisions also include repairs for roads within the National Wildlife Refuge System, Indian reservations and other roads on federal property.

Several states have been grappling with the problem of rapid growth, and nine have passed comprehensive growth management legislation. Similar concerns surface in TEA-21. It creates a pilot program on sustainable development, land use and transportation. The program is funded with $120 million over the six years.

A CHANCE TO WORK

The transportation needs of welfare recipients and low-income families did not go unnoticed. "If you can't get to a job, you might as well not have it," says Petzold. The law authorizes $150 million a year through FY 2003 [but only $50 million has been appropriated for FY 19991 for competitive grants to develop new approaches for getting people to work. It also includes reverse commute projects to help urban residents travel to suburban employment. A training provision allows states to reserve slots for welfare recipients in on-the-job training programs that lead to skilled highway construction trades. Trainees can benefit from special services such as counseling and help with transportation and child care. (See story on page 33.)

Women and minority owned businesses get some help, too. To make sure all businesses have equal opportunities in transportation contracting, TEA-21 continues the Disadvantaged Business Enterprises program. The hope is that 10 percent of contracts nationally will go to these companies.

From funding to programs, states come out winners with TEA-21. Guaranteed funding gives them what they need for transportation projects that will lead them into the next century. The law moves away from sanctions for states that do not do as they're told by the federal government and allows them to take care of their own highway safety issues. New roads, transit, trails and even jobs will be evident in every state as a result of the new transportation act.

Jan Goehring tracks transportation issues in NCSL's Denver office. Dawn Levy does the same in the Washington, D.C., office.