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STATUS: ACTIVE PROGRAM CODES:

• M001 – NHPP (MAP-21 Section 1101(a)(1))

• M002 – NHPP Exempt (MAP-21 Section 1102(b)(12))

FEDERAL SHARE: The Federal share for NHPP funds is governed by 23 U.S.C. 120. The Federal share is generally 80 percent, subject to the sliding scale (upward) adjustment. The Federal share for projects on the Interstate system is 90 percent, subject to the sliding scale (upward) adjustment, unless the project adds lanes that are not high-occupancy-vehicle or auxiliary lanes. For projects that add single occupancy vehicle capacity, that portion of the project that increases single occupancy vehicle capacity will revert to the 80 percent Federal share participation level.

Certain safety improvements as listed in 23 U.S.C. 120(c)(1) (traffic control signalization, maintaining minimum levels of retroreflectivity of highway signs or pavement markings, traffic circles/roundabouts, safety rest areas, pavement marking, shoulder and centerline rumble strips and stripes, commuter carpooling and vanpooling, rail-highway crossing closure, and installation of traffic signs, traffic lights, guardrails, impact attenuators, concrete barrier end treatments, breakaway utility poles, or priority control systems for emergency vehicles or transit vehicles at signalized intersections) may have a Federal share of 100 percent, but this provision is limited to 10 percent of the total funds apportioned to a State under 23 U.S.C. 104.

The Federal share for workforce development, training, and education activities carried out with NHPP funds under 23 U.S.C. 504(e) is 100 percent except that the Federal share for activities under the Local Technical Assistance Programs is 50 percent.

For fiscal years 2012 through 2021, the Federal share for the cost of constructing highways and access roads on the Appalachian development highway system, as provided in 40 U.S.C. 14501, with

apportioned Federal funds is 100 percent. In order to use NHPP funds at the higher Federal share, Appalachian development highway system projects must meet NHPP eligibility and location criteria. Projects incorporating Innovative Project Delivery as described in 23 U.S.C. 120(c)(3) may have an increased Federal share.

As provided for in MAP-21 Section 1116, projects that demonstrate an improvement to the efficient movement of freight and are identified in a State freight plan are eligible for an increased Federal share of up to 95 percent for projects on the Interstate System and up to 90 percent for all other projects.

The Federal share for projects located on toll roads, and subject to the provisions of 23 U.S.C. 129, is limited to 80 percent.

For States that have not developed and implemented a State asset management plan by October 1, 2016, the Federal share is limited to 65 percent.

States may choose to use a lower Federal share on most Federal-aid projects as provided in 23 U.S.C. 120.

PERIOD AVAILABLE: NHPP funds are available for obligation for a period of 3 years after the last day of the fiscal year for which the funds are authorized. Thus funds are available for obligation for 4 years.

FUND: Highway account of the Highway Trust Fund FUND DISTRIBUTION METHOD: Apportionment AUTHORITY: Contract

SUBJECT TO OBLIGATION LIMITATION: Yes (M001 funds), No (M002 funds)

STATUTORY REFERENCE: 23 U.S.C. 119 (as amended by MAP-21 Section 1106) and 23 U.S.C. 104(b)(1) (as amended by MAP-21 Section 1105)

CFR REFERENCE: None

ELIGIBILITY: Funds apportioned to a State to carry out the NHPP may be obligated only for a project on an “eligible facility” that is a project or part of a program of projects or an eligible activity supporting progress toward the achievement of national performance goals for improving infrastructure condition, safety, mobility, or freight movement on the National Highway System; and are consistent with the planning requirements of sections 134 and 135. Projects must be identified in the STIP/TIP and

consistent with the Statewide and Long Range Transportation Plan and the Metropolitan Transportation Plan(s).

Under the NHPP, an “eligible facility” includes only those facilities located on the National Highway System (NHS), as defined in 23 U.S.C. 103, except as specifically provided for in Eligible Activities below. Eligible Activities are as follows:

(A) Construction, reconstruction, resurfacing, restoration, rehabilitation, preservation, or operational improvement of segments of the National Highway System. The terms “Construction” and “Operational improvement” are defined in 23 U.S.C. 101(a).

(B) Construction, replacement (including replacement with fill material), rehabilitation, preservation, and protection (including scour countermeasures, seismic retrofits, impact protection measures, security countermeasures, and protection against extreme events) of bridges on the National Highway System.

(C) Construction, replacement (including replacement with fill material), rehabilitation, preservation, and protection (including impact protection measures, security countermeasures, and protection against extreme events) of tunnels on the National Highway System.

(D) Inspection and evaluation, as described in 23 U.S.C. 144, of bridges and tunnels on the National Highway System, and inspection and evaluation of other highway infrastructure assets on the National Highway System. This includes, but is not limited to, signs, retaining walls, and drainage structures.

(E) Training of bridge and tunnel inspectors, as described in 23 U.S.C. 144.

(F) Construction, rehabilitation, or replacement of existing ferry boats and ferry boat facilities, including approaches that connect road segments of the National Highway System. (Construction of Ferry Boats and Ferry Terminal Facilities as described in 23 U.S.C. 147.) (G) Construction, reconstruction, resurfacing, restoration, rehabilitation, and preservation of, and

operational improvements for, a Federal-aid highway not on the National Highway System, and construction of a transit project eligible for assistance under chapter 53 of title 49, if—

(i) the highway project or transit project is in the same corridor as, and in proximity to, a fully access controlled highway on the National Highway System;

(ii) the construction or improvements will reduce delays or produce travel time savings on the fully access- controlled highway described in clause (i) and improve regional traffic flow; and

(iii) the construction or improvements are more cost-effective, as determined by benefit-cost analysis, than an improvement to the fully access-controlled highway on the National Highway System.

(H) Bicycle transportation and pedestrian walkways in accordance with section 217. The project or activity must be associated with an eligible facility (on the NHS).

(I) Highway safety improvements for segments of the National Highway System.

(J) Capital and operating costs for traffic and traveler information monitoring, management, and control facilities and programs. The project or activity must be associated with an eligible facility (on the NHS).

(K) Development and implementation of a State asset management plan for the National Highway System in accordance with this section, including data collection, maintenance, and integration and the cost associated with obtaining, updating, and licensing software and equipment required for risk-based asset management and performance-based management.

(L) Infrastructure-based intelligent transportation systems capital improvements. The project or activity must be associated with an eligible facility (on the NHS).

(M) Environmental restoration and pollution abatement in accordance with section 328. The project or activity must be associated with an eligible facility (on the NHS).

(N) Control of noxious weeds and aquatic noxious weeds and establishment of native species in accordance with section 329. The project or activity must be associated with an eligible facility (on the NHS).

(O) Environmental mitigation efforts related to projects funded under this section, as described in subsection Environmental Mitigation. The project or activity must be associated with an eligible facility (on the NHS).

(P) Construction of publicly owned intracity or intercity bus terminals servicing the National Highway System.

(Q) Workforce development, training, and education activities that are in accordance with 23 U.S.C. 504(e) (see below for Federal share applicable to such uses)

BACKGROUND: The NHPP was authorized by the Moving Ahead for Progress in the 21st Century Act (MAP-21), on July 6, 2012 (Public Law 112-141). Section 1101 of MAP-21 amended 23 U.S.C. 119 and authorizes funds for the NHPP. Section 1105 of MAP-21 amended 23 U.S.C. 104(b)(1) and provided for the apportionment of funds.

The NHPP shares some similarities with the previous National Highway System (NHS) program (See National Highway System).

The purposes of the National Highway Performance Program (NHPP) are (1) to provide support for the condition and performance of the National Highway System; (2) to provide support for the construction of new facilities on the National Highway System; and (3) to ensure that investments of Federal-aid funds in

highway construction are directed to support progress toward the achievement of performance targets established in an asset management plan of a State for the National Highway System.

Under MAP-21, the National Highway System (NHS) is composed of approximately 220,000 miles of rural and urban roads serving major population centers, international border crossings, intermodal

transportation facilities, and major travel destinations. See National Highway System for background on the pre-MAP-21 NHS. The NHS includes:

• The Interstate System.

• All principal arterials (including those not previously designated as part of the NHS) and border crossings on those routes.

• Intermodal connectors -- highways that provide motor vehicle access between the NHS and major intermodal transportation facilities.

• STRAHNET -- the network of highways important to U.S. strategic defense. • STRAHNET connectors to major military installations.

NHPP requires State Performance Management consisting of a Performance Management component and an Asset Management component.

National Highway System (NHS)

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