November/December
2001
Legacy
of a Landmark: ISTEA After 10 Years
by Ellen Schweppe
When the Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA)
was signed into law, it was hailed as a turning point in the history
of surface transportation in America. ISTEA was envisioned as landmark
legislation that would launch America into the post-interstate era.
Ten years later, has the act with the catchy moniker lived up to its
lofty promise?
"ISTEA was indeed a revolutionary act and changed many, many
aspects of the highway program and the transportation community,"
said Thomas Sorel, team leader in the Office of Legislation and Strategic
Planning for FHWA. "It has certainly lived up to its reputation."
One of ISTEA's chief goals was to develop a "National Intermodal
Transportation System that is economically efficient and environmentally
sound, provides the foundation for the nation to compete in the global
economy, and will move people and goods in an energy-efficient manner."
This was brand new. Instead of focusing on just highway transportation,
ISTEA emphasized intermodalism - the seamless linking of highway,
rail, air, and marine transportation. The act included many provisions
designed to chip away barriers that had separated modes of transportation
in legislation and practice for many years.
"ISTEA brought a multimodal thought process to the forefront,"
said Sorel. "No longer could plans and programs focus only on
one modal option. The intermodal mindset prompted by ISTEA is prevalent
today in most transportation agencies."
ISTEA precipitated thousands of changes designed to help fulfill the
law's goals - several of them significant enough to be considered
a sea change in the way business is conducted in the transportation
sector. "Flexibility," "innovation," "involvement,"
and "collaboration" became the new buzzwords for transportation
planning and development.
The $155 billion act, which authorized federal highway funding for
fiscal years 1992 through 1997, transformed the relationship between
the federal government and states and localities in terms of funding
transportation projects. It restructured the Federal-Aid Highway Program,
the vehicle through which states and localities obtain funding for
projects.
At the same time, ISTEA gave state and local governments greater flexibility
in determining transportation solutions. ISTEA made money available
for new kinds of programs, including projects that mitigate traffic
congestion, increase safety, and contribute to the attainment of air
quality standards. It also opened the transportation planning process
to more public involvement than ever before, bringing new players
to the table when decisions were being made and increasing collaboration
among old players.
ISTEA's successor, the Transportation Equity Act for the 21st Century
(TEA-21) built on the key provisions of its predecessor and increased
funding for highways, highway safety, and transit for fiscal years
1998 through 2003 to $218 billion.
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As the word "intermodal" in the title of ISTEA suggests,
this bill places a strong emphasis on intermodalism - all modes
of transportation working efficiently together. For example, a
ferry service transports commuters across San Francisco Bay. |
New
Focus for Programs
Prior to ISTEA, the Federal-Aid Highway Program had been directed
primarily toward the construction and improvement of four federal-aid
systems - Interstate, primary, secondary, and urban. ISTEA changed
that to two - a new National Highway System and the Interstate Highway
System.
"ISTEA
called for a national reclassification of our highways and a focus
on functional classification for eligibility of Federal-Aid Highway
Program activities. This was a sorely needed effort in our transportation
systems and simplified the complexity and confusion over functional
class and programs that existed prior to ISTEA," said Sorel.
The National Highway System (NHS) was established to focus federal
resources on the most important roads in the United States. Its 260,000
kilometers (160,955 miles) include the Interstate Highway System,
as well as other roads vital to the nation's economy, defense, and
mobility. Although it represents just 4 percent of America's 6.4 million
kilometers (4 million miles) of public roads, NHS carries more than
40 percent of the nation's highway traffic.
With the Interstate Highway System essentially completed after nearly
four decades of construction, ISTEA shifted emphasis to maintenance
rather than wholesale expansion of the highway network. Among other
things, it established an Interstate Maintenance Program for resurfacing,
restoring, and rehabilitating the Interstate Highway System.
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The
Bridge Replacement and Rehabilitation Program was continued at
a total authorization level of $16.1 billion. The Veterans Memorial
Bridge (formerly known as the Detroit-Superior Bridge) in Cleveland,
Ohio, is one of the most significant, historic bridges in Ohio,
and it underwent major rehabilitation in the 1990's. (Photo courtesy
of the Ohio Department of Transportation) |
Directing
federal dollars to maintenance was a change in direction, according
to Richard Osborne, transportation specialist in FHWA's Office of
Legislation and Strategic Planning.
"We're not talking about routine maintenance, such as snowplowing
and grass-cutting," he said. "We're talking about preventive
maintenance - those activities that can dramatically extend the life
of a roadway." That includes such activities as topping a cracked
road surface with a seal coat before it deteriorates further, lengthening
the time until more extensive and expensive repairs are needed.
"Before ISTEA, funding for maintenance was an anathema,"
Osborne said.
More
Flexibility for States
ISTEA also created the Surface Transportation Program (STP), which
brought a new level of flexibility to the funding process. STP dollars
can be used for a broad range of highway and transit projects, including
federal-aid highways, bridges on public roads, transit capital projects,
car-pooling projects, safety improvements, bicycle and pedestrian
facilities, and transportation control measures.
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ISTEA provided funds for a Scenic Byways Program. |
Although STP did not become the block grant-type program originally
envisioned, it did open up new categories of projects on which federal
dollars could be spent and gave states more leeway in determining
where to direct those funds. Under past funding acts, highway funds
were strictly for highways and transit funds were for transit. STP
changed that.
"Federal highway funds can now be applied to transit projects,
such as buying buses and building intermodal centers," said Osborne.
"Financing was changed to support the intermodal concept of eligibility
for project funding. States now have a lot more flexibility in deciding
how to use funds."
Another ISTEA innovation was the Congestion Mitigation and Air Quality
Improvement Program (CMAQ). CMAQ is designed to direct federal funds
to transportation projects that help state and local governments improve
air quality, a switch from the traditional federal transportation
funding goals of mobility and safety. It is central to ISTEA's effort
to refocus the transportation planning process toward intermodalism.
CMAQ funds are available for projects ranging from more traditional
efforts in traffic flow and transit improvements to projects focusing
on the conversion to cleaner fuels for public fleets. Program funds
have been used to establish ride-share services, promote employer
trip-reduction programs, and support bicycle and pedestrian travel
- all with the goal of improving air quality and reducing traffic
congestion.
At first, CMAQ funds were available only for projects in areas that
failed to meet national air quality standards set by the Clean Air
Act. Later, the law was changed so that areas in compliance for air
quality standards could use CMAQ funds to stay that way.
"There had been some controversy before the change because if
you instituted projects and your area came into compliance, you couldn't
get funding anymore," Osborne said.
ISTEA also funded a variety of special programs that states could
tap into to accomplish such transportation-related goals as increasing
use of safety belts and motorcycle helmets, developing state scenic
byways and recreational trails programs, and conducting research and
development to resolve highway problems.
"Bottom line, ISTEA meant more money for states and a huge change
in programs and program eligibilities," said Osborne.
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Kingston
Station in South Kingstown, R.I., was built in 1875, and it is
believed to be one of the oldest, consecutively used train stations
in the country. It was restored to serve as an intermodal transportation
center, accommodating bus; bicycle; taxi; automobile; Amtrak,
including high-speed rail service; and commuter rail service.
The building was renovated to incorporate modern features and
conveniences while preserving the building's original appearance
and historic character as much as possible. (Photo courtesy of
the Rhode Island Department of Transportation) |
Guaranteed
Funding
While ISTEA gave states more flexibility in deciding how to use federal
transportation funds, its successor, TEA-21, offered them a new planning
tool: guaranteed funding. For the first time, spending for highways,
highway safety, and transit was protected by "firewalls"
that kept it from being reduced to increase spending for other discretionary
budget programs. This put highway spending in a category with defense
and violent crime reduction, which also have firewall protection.
In a major change to federal budget rules, highway and transit programs
are now guaranteed a minimum level of spending. Before TEA-21, funding
for surface transportation programs was one item among many on a list
of priorities for federal program spending in the budget.
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Under
ISTEA, Transportation Enhancement Program funds could be used
for the construction of pedestrian and bicycle facilities, such
as pedestrian bridges. |
Now,
guaranteed amounts for highway spending are linked to actual Highway
Trust Fund receipts and can be used only to support projects eligible
under federal highway and highway safety programs.
That
means a state's obligation limitation - the ceiling on the amount
of federal assistance that a state may obligate for transportation
projects during a fiscal year - is essentially guaranteed.
Although it has not happened, the possibility exists that Highway
Trust Fund tax receipts could drop far enough below projected levels
to reduce the amount of funding available to states.
"There's always an exception to the rule," said Osborne.
But guaranteed funding provides a mechanism that allows states to
plan complex transportation programs in advance and have a reasonable
expectation of having the funds to pay for them.
"Guaranteed funding provides predictability. States not only
know how much funding they will receive through authorizations, they
know how much they can actually spend in a given fiscal year,"
said Osborne. "This is a dramatic change. It's a whole new way
of operating for states that makes it easier for them to plan and
develop transportation programs."
Involving
Stakeholders
ISTEA heralded a new philosophy in designing and planning transportation
programs - public involvement.
"Highway development had some element of public participation
prior to ISTEA, but not to the extent that ISTEA required," said
Sorel.
Transportation stakeholders, ranging from the freight community to
environmental groups to bicyclist and pedestrian interests, saw the
increased array of ISTEA's funding opportunities and wanted to participate
in the planning process. As a result, many states revamped their planning
and program development processes to accommodate the new demand for
stakeholder involvement.
"The processes became more open and responsive to the needs of
the myriad of transportation stakeholders, including the general public,"
said Sorel. And the shifts in the planning and program development
processes formed the basis for shifts in other functional areas. "Some
states began including public participation in the design process
and the environmental process," he said. "It was the new
spirit of things."
The Transportation Enhancement Program, part of STP, is one ISTEA
program that embodies the spirit of public participation. The program
opens up the Federal-Aid Highway Program to new types of activities,
such as construction of pedestrian and bicycle facilities, acquisition
of scenic and historic sites, rehabilitation of historic transportation
facilities, archeological planning and research, control and removal
of outdoor advertising, and mitigation of water quality effects from
roadway runoffs.
Although not a big-dollar item compared to other ISTEA programs, the
Transportation Enhancement Program has had a major impact because
of its visibility, according to Sorel. It has attracted considerable
interest from many state and local officials because it resonates
with constituents.
"The program provided an unprecedented level of access to transportation
funding for many groups and members of the general public. Thus, high-level
officials had a newly found interest in the transportation concerns
of their constituents," he said. "It has turned out to be
one of the most competitive programs in ISTEA. States typically have
more applicants for programs than they can fund."
Increased
Collaboration
In addition to increasing public participation, ISTEA also prompted
an unparalleled level of collaboration in the transportation community.
"New players became involved with programs such as transportation
enhancements, recreational trails, and CMAQ," Sorel said. "These
new players were often very passionate about their interests and demanded
to be heard. Thus, a new balance of power in the community was born."
Increased collaboration is a key part of the new intermodal mindset.
"Before ISTEA, highway options were always the first consideration.
Any other options, such as transit, were secondary," Sorel said.
"ISTEA gave all options equal standing in the decision-making
process." The trend toward collaboration has not happened overnight.
"Some states are still struggling with this," he said. "Some
are better than others."
ISTEA drove organizational restructuring in many transportation agencies
because of the new emphasis on intermodalism and public participation
and the raft of program changes.
"Many state highway departments weren't set up to administer
the new programs," he said. "They actually created new teams
to address such things as transportation enhancements, CMAQ, and bike/pedestrian
projects."
Not only did ISTEA influence organizational change, it had an effect
on many activities beyond the purview of federal oversight.
"Many organizations redefined their entire statewide and metropolitan
planning and program development processes to be consistent with ISTEA
philosophies," Sorel said.
Originally, ISTEA called for states to establish management systems
to set priorities for transportation projects in six areas - highway
pavement, bridges, highway safety, traffic congestion, public transportation
facilities and equipment, and intermodal transportation facilities
and systems. Management systems are designed to help states address
transportation needs from a technical standpoint so that decisions
are not purely politically driven.
Before ISTEA, many states had in place some management system elements,
such as those to manage highway pavement and bridge programs, but
for other states, it was a new way of operating. Although ISTEA's
requirement for states to create management systems was later modified,
it has had a long-term influence on many state highway departments,
according to Sorel.
"While this was very controversial because it was perceived as
an unfunded mandate, it did prompt a serious discussion about the
importance of management systems in the transportation community,"
he said. "While many states dropped some of the mandated systems,
many have survived and proved to be extremely valuable. In many cases,
this would not have occurred if the ISTEA management systems provisions
didn't exist."
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Transportation
Enhancement Program funds could also be used for archeological
planning and research. A village settled by Native Americans between
400 and 200 B.C. was discovered by archaeologists conducting a
study for the Arizona Department of Transportation in conjunction
with the reconstruction of an I-10 interchange near Tucson. |
Continuing
ISTEA's Legacy
When Congress was considering ISTEA a decade ago, it was asking the
basic question, "What is the federal government's role in surface
transportation now that the Interstate Highway System is essentially
complete?" Congress' answer was a far-reaching act that, as we
can see 10 years later, left a legacy in the way federal highway programs
are structured, planned, developed, and financed.
ISTEA has broadened federal efforts from a focus on highway transportation
to an intermodal mindset. It made wholesale changes to programs, eliminating
the Primary, Secondary, and Urban programs and creating NHS and STP
as well as a dozen other programs. It has redefined programs eligible
for federal funding to include new kinds of transportation-related
activities, such as those that contribute to cleaner air and provide
facilities for bicyclists and car-poolers.
Also, ISTEA has given states increased flexibility in determining
how to spend federal dollars. ISTEA has transformed the transportation
planning and development process, giving new stakeholders a stronger
voice and increasing opportunities for collaboration among those in
the transportation community.
TEA-21 continued the major features of ISTEA, but it is not merely
an extension of ISTEA with more funding. It represents an enormous
change as did ISTEA but in a different direction. TEA-21 is a budgetary
bill that changed the way the Federal-Aid Highway Program exists within
the budget of the United States. It focuses on equity - hence, its
name - creating the Minimum Guarantee and Revenue Aligned Budget Authority
programs and providing guaranteed funding as well.
Work is underway at FHWA on the next round of reauthorization for
federal highway programs, slated for 2003. The upcoming round is expected
to build on the legacy of ISTEA and TEA-21.
"There's a lot of sentiment to continue along this path,"
said Sorel. "People are fairly happy with the way it has worked
out."
Ellen
Schweppe is the president of Ellen Schweppe Co., an editorial
and public relations services corporation. She writes occasionally
for Public Roads.
Other
Articles in this Issue:
Legacy
of a Landmark: ISTEA After 10 Years
Creating
a Landmark: The Intermodal Surface Transportation Act of 1991
"Put
the Brakes on Fatalities" Day