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Funding Programs
Local Government Program
Federal Aid Programs
Special Programs
Bicycle and Pedestrian Program
Local Government Program
Transportation in Oregon is a cooperative effort involving all levels of government. Together with local partners, ODOT has made an extensive study of Oregon’s roads, highways and bridges. The information gathered helps identify and establish priorities for road and bridge needs of each responsible agency. The agencies address these priority needs subject to the allowed uses of available funds. ODOT continues to share funding based on the priority needs. Because ODOT is responsible for administering all federal funds supporting highway construction in Oregon, all local expenditures related to federal highway programs are included in ODOT’s budget. About 25 percent of the federal funds that come to Oregon support local programs.
 
Local Government Programs include:
 
OTIA III Bridge Project Applications
 
 
Fund Exchange
The State will make funds available to individual cities and counties for the exchange of flexible federal funds. The amount of funds available for exchange is determined annually. Exchanging federal funds for state funds helps local agencies avoid complicated federal contracting regulations. Exchanged funds may be used for all phases of a specified capital improvement within the roadway right-of-way, but are not intended for maintenance.
 
Special City Allotment
The Legislature mandated $1 million in state gas taxes to be distributed annually among
cities with populations of less than 5,000. ODOT sets the distribution and dollar amount by agreement with the League of Oregon Cities. Half of the funds come from the cities’ share of gas tax revenues and the half comes from ODOT’s share of the State Highway Fund. Locals can receive $25,000, one-half the maximum grant amount, up front, with final payment due upon completion of the project. Payments are included in the expenditure budget for Local Government in the Highway Program. (Note: A similar program exists for small counties. However, funds are transferred directly and are not contained as a budget expenditure.)
 

OTIB Program
The Oregon Transportation Infrastructure Bank (OTIB) is a statewide revolving loan fund designed to promote innovative financing solutions for transportation needs.  Oregon’s program was started in 1996 as part of a federal pilot program. (Because of the source of initial capital for the OTIB, most loans involve the use of federal funds.)  Legislative action in 1997 established the program in state law and expanded the bank's authority.  Staff support for the program is provided by the Financial Services office of the Oregon Department of Transportation (ODOT).

Federal Aid Programs
Federal Aid Programs  
Surface Transportation Program: The Surface Transportation Program provides federal funding to states and local governments which can be used for highways, bridges, or transit projects. Under provisions of the program, urbanized areas 200,000 and above receive an annual allocation of STP funding based on their populations. Under an agreement developed in cooperation with Oregon cities and counties, ODOT shares a portion of its yearly STP funding with local governments with populations above 5,000 and less than 200,000.
 
Local Bridge: The distribution of federal bridge funds to states is based on the percent of deficient bridges nationwide. Under an agreement with Oregon counties, ODOT allocates the federal bridge funds to local governments based on their percentage of deficient bridges in Oregon. Bridges are inspected every two years, to determine which bridges are deficient.
 
Congestion Mitigation and Air Quality (FHWA):   The Congestion Mitigation and Air Quality program directs funds toward transportation projects and programs in Clean Air Act non-attainment or maintenance areas for ozone and carbon monoxide. These projects and programs must contribute to attaining a national ambient air quality standard. Federal funds are allocated only to areas not meeting Department of Environmental Quality air quality standards.
 
Transportation Enhancement: Local governments and other public agencies can apply for enhancement funds on a competitive basis. See Special Programs for general information about the Transportation Enhancement program.
 
High Risk Rural Road Program (HRRR):   The High Risk Rural Road Program (HRRR) in SAFETEA-LU (called HR3 in Oregon ) is a sub-program of the Highway Safety Improvement Program (HSIP), a federally-funded program managed by the Oregon Department of Transportation (ODOT).  
 
Discretionary:  Through ODOT, local governments can apply for and receive federal discretionary funds such as Scenic Byways Program, Emergency Relief, Covered Bridge, and special congressional earmarks.
 
Metropolitan Planning: A portion of federal funds is set aside for Metropolitan Planning activities. Federal planning funds are allocated based on urbanized population.
Metropolitan Planning Organizations use the funds to develop long-range transportation plans and transportation improvement programs.
 
Other Local Government Programs: Occasionally some local governments contract with ODOT to develop and construct their projects. These projects are funded entirely with local funds

Special Programs
Emergency Relief Program
Federal funding for repairing damage to Federal-Aid Highways on roads functionally classes as rural major collectors, Urban Collectors and Arterials is available from the Federal Highway Administration when the Governor declares a disaster.  A subsequent finding by the Federal Highway Administration (FHWA) that a natural disaster or catastrophic failure occurred and that the damage is eligible for ER assistance is also required.  The funding requirements for the ER projects are outllined in the paper titled "A Summary of Emergency Relief Procedures For Federal-Aid Highways."

 
High Priority Projects -Federal-Aid Funding Requirements 
The Safe, Accountable, Flexible, Efficient Transportation Equity Act; A Legacy for Users, (SAFETEA-LU), was enacted on August 10, 2005.  Under SAFETEA-LU, funding has been designated for specific Oregon highway projects in a number of FHWA programs, including Highway Priority (HP) projects.  The funding requirements for the HP projects are outlined in the paper titled "Federal-Aid Funding for Highway Priority Project Sponsors". The Projects are found under the following link: SAFETEA-LU Project Breakdown.      
 
Highway Program
The Forest Highways Program provides federal funding for transportation projects on roads that are located within or provide access to national forests. The Federal Highway Administration administers the program and generally is responsible for the development and construction of projects. Projects to be funded in Oregon are selected by a committee composed of representatives from FHWA, U.S. Forest Service, ODOT and Oregon counties.
 
Transportation Enhancement
Federal Transportation Enhancement funds may be used only for 12 specific activities that enhance the cultural, aesthetic, or environmental value of the transportation system. The majority of Oregon’s Transportation Enhancement funds have been used for pedestrian and bicycle facilities. Other current or completed projects involve transportation-related historic preservation, acquisition of scenic easements, landscaping and scenic beautification, and mitigation to reduce water pollution due to highway runoff. Projects are selected based on applications from local governments and other public agencies.
 
Salmon and Watersheds
ODOT sets aside $3 million dollars per year to fund the Fish Passage Program, which repairs or replaces culverts that do not currently provide fish passage. This program supports the Department’s commitment to The Oregon Plan for Salmon and Watersheds. To date, 51 sites have been addressed, opening up more than 175 stream miles. ODOT has pioneered efforts to incorporate fish passage into highway construction, including improvements to habitat around in-water structures and more fish friendly bank repairs. Through this program, the Department is learning how to better apply the technology available for fish, animal passage, and habitat. It is no longer enough to design just for hydraulic efficiency alone. Design must balance of hydraulic needs and the needs of fish and animals. This is being accomplished while serving the needs and safety of the motoring public


Bicycle and Pedestrian Program
Oregon's Bicycle and Pedestrian Program
State law (ORS 366.514) requires ODOT, cities and counties to spend reasonable amounts of their share of the State Highway Fund (but not less than 1 percent) on footpaths and bicycle trails. To fulfill this requirement, ODOT generally provides appropriate sidewalks and bikeways when modernizing a roadway. The most common way to accommodate bicyclists is on paved highway shoulders, which are sometimes marked as bike lanes in urban areas. ODOT also constructs stand-alone pedestrian and/or bicycle improvement projects, such as:
  • Filling in missing gaps of sidewalks.
  • Creating island and curb extensions to make pedestrian crossing easier and safer.
  • Performing Americans with Disabilities Act upgrades.
  • Providing minor shoulder widening or re-striping for bicycle lanes.
 
ODOT also has a local assistance grant program for these types of improvements. In this program, local governments compete for funding for projects that are the highest priority in their community. ODOT and local governments share the costs of these projects. Grant projects are selected by the Oregon Bicycle & Pedestrian Advisory Committee, appointed by the Governor.
 
Immediate Opportunity Fund (IOF)
The Immediate Opportunity Fund supports primary economic development in Oregon. It does this by building and improving streets and roads in strategic locations. The IOF only funds strategic projects that require a quick response and commitment of funds because other sources are unavailable or insufficient. It is not a substitute for other funding sources. The IOF is a discretionary program. The maximum amount available for a single project is $500,000. Starting in 2002, all new IOF projects will be represented in the Modernization Program.
 
Jurisdictional Exchange
ODOT has identified over 1,000 miles of state highways that primarily serve local purposes. These include urban arterials serving mostly local travel, urban streets that are parallel to highway bypasses, and roads that function like county roads. Through negotiated agreements, ODOT will transfer jurisdiction of these highways to local governments. The agreements may include the cost to maintain or improve the facility based on the condition of the highway at the time of transfer.

 
Page updated: November 28, 2007

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