THE NATIONAL CLEAN BUS NETWORK

FHWA Issues Rescissions Notice   
 Funds for Cleaner Transit and Air Quality Programs at Risk
1/25/06

For more information please contact Shefali Ranganathan, 202.662.1883 or sranganathan@eesi.org

Print Version

The Issue:

The Federal Highway Administration (FHWA) recently issued a notice requiring states to return a total of $1.99 billion in previously allocated highway program dollars, a process known as a “rescission” of program balances.    The rescission is being applied proportionately to states, based upon the FY 2006 apportionments for the five core highway programs including Interstate Maintenance (IM), National Highway System (NHS), Bridge, Surface Transportation Program (STP) and Congestion Mitigation and Air Quality Improvement Program (CMAQ).  FHWA is acting pursuant to a provision in the Transportation Appropriations Bill, 2006 (P.L. 109-115).    

Each State must surrender its share of $1.99 billion rescission within 30 days of this FHWA notice.  It is important to note that the rescission notice was sent out to state Departments of Transportation on December 28^th 2005 but only became publicly available on January 18^th 2006.  This delay reflects a lack in transparency and openness in the rescissions process.   

Click here for the FHWA Notice with the rescission amount for each state 

Does this affect all states?

Yes! Every state is required to return a portion of previously apportioned transportation funds according to the rescission directive.  The amount varies based on how much the state receives in transportation funds each year.  FHWA allows states the latitude to decide which program funds – Transportation Enhancements, Congestion Mitigation and Air Quality (CMAQ), Bridge, as examples – will be rescinded.

What is the threat?

Programs like CMAQ have often been underfunded by the states.  During prior rescissions in FY’04 and ’05, millions of dollars in CMAQ money was rescinded by states, particularly those with significant air quality problems.  CMAQ money is used to fund cleaner transit projects like alternatively- fueled buses, advanced technologies like hybrid electric and fuel cell vehicles, and related infrastructure.  Also, once a dollar in spending authority for CMAQ is lost to a rescission, you don’t get it back.   As such, depending upon the choices made by your state, could harm your efforts to secure funding for certain types of projects in the future.

To illustrate this issue further, here is an example from New York state showing why the rescission process, absent public involvement, is of concern.  In FY’05, FHWA directed New York to return $64.4 million as its share   of the total rescission amount ($1.26 billion).  New York elected to return the whole amount from the CMAQ program.  This occurred in a state where its largest metropolitan areas struggle with non-attainment problems under the Clean Air Act (for both old and new standards), challenges which have been extensively documented in national and local news stories.  The same is true of Massachusetts which elected to return $24 million in CMAQ funds to comply with its rescission directive.

Additionally, about 16 percent of the total rescissions in FY ’05 from states came from CMAQ balances, even though the program represents approximately five percent of apportioned funds to the states.  Importantly, these rescissions of CMAQ balances are occurring just as new, more rigorous standards for ozone (8-hour) and particulate matter (PM2.5) are being implemented.

What You Can Do

Here is how you can make a difference.

• Contact your Governor’s office immediately and advise them of your interest in seeing a fair and balanced treatment of the various programs in meeting the FY’06 rescission directive, indicating the importance of having them engaged in this issue.   Your Governor can influence what the state transportation department decides to do!
  
• Contact your state transportation department immediately.  

·   Ask about the process, and the public’s role, in making decisions on program funds to be rescinded, including notification to affected parties.

·   Urge your state to embrace the principle that rescission of core program funds (e.g., note your interest in CMAQ), should be in proportion to each program’s share of the original apportionments to the state.

• Contact your local media – let them know about the rescissions and how millions of dollars designated for improving air quality are being sent back without public involvement in these decisions.      

Rescissions occur each year so building support for increased transparency in the process and protecting clean air funds is critical.  Help us increase awareness about this issue by:

• Contacting your state legislators, particularly those serving in leadership positions, to advise them of the rescission, urging them to make inquiries about the rescission process and suggest that they hold a hearing on the issue or ask for a briefing by state DOT officials.
  
• Contacting officials with your Metropolitan Planning Organization and your transit provider, consulting them about the rescission package and discuss how to work together to ensure that funds destined for local “clean air” projects are protected.
  
• Contacting local officials, particularly those seeking new transit investments, concerned about compliance with clean air standards or seeking commitments to enhancement projects to make sure they are briefed and explore with them how they can work with the Governor’s office and state legislators to protect funds for cleaner transportation.
  
• Contacting other transportation reform partners in your state to brief them on the issue and organize them to contact state transportation officials on your priorities.  (Consider reaching out to state chapters of the AARP, American Lung Association and American Heart Association to engage them in helping deliver the message on protecting CMAQ funds.)

It is important for you to get engaged and press for a satisfactory resolution of these issues given the amounts of spending authority involved with this rescission.   If state transportation officials return CMAQ funds, resources shrink for innovative clean transportation projects!

If you are interested to know what programs states chose to return money from to comply with a rescission directive in 2005, please contact Shefali Ranganathan, 202.662.1883 or sranganathan@eesi.org