Mainstreaming Integrated Corridor Management: An Executive Level Primer

Chapter 5. Funding ICM

This chapter discusses potential Federal, State, regional, and local funding sources or opportunities that can be considered for deploying Integrated Corridor Management (ICM), including long-term operations and maintenance arrangements.

While understanding the benefits of ICM and mainstreaming its practices are important, funding remains one of the most-mentioned constraints to ICM implementation. Whereas the ICM pioneer sites and planning grantees were recipients of United States Department of Transportation (USDOT) grants with State and local funding matches, future ICM projects are not expected to receive ITS research program funding as stand-alone projects and will need to be funded with a mixture of State and local funding, Federal Aid, and potential USDOT grant opportunities. This further supports the mainstreaming theme in that potential ICM investments should stand on their own merits and compete for prioritization in the programming or project selection process.

USDOT conducted outreach to all of the ICM Planning Grantees in Spring 2018 and found that ICM sites that had integrated their ICM projects into their Transportation Systems Management and Operations (TSMO), Intelligent Transportation Systems (ITS), and State and local budgets were the most successful in securing funding for implementing ICM. Below are best practices in ICM funding.

• Integrate ICM into your regional TSMO, ITS, and State and local short and long-range transportation and strategic plans. Establishing the project's visions, benefits and outcomes early-on helps socialize ICM at an agency-wide perspective and removes a siloed approach to ICM.
• Integrate ICM into your department's programmatic, TSMO, and ITS budgets. Setting budgetary expectations are key to achieving success. Additionally, using a multifaceted approach for funding helps integrate the ICM into already mainstreamed practices and projects related to traffic and congestion monitoring that use similar transportation technologies.
• Add ICM to larger project proposals for USDOT Discretionary Grant Programs. Although project selection is not assured, integrating ICM into larger project proposals increases the proposed project's benefits, and can be used to establish project performance and benchmarking data collection and metrics.
• Remember to budget for long-term operations and maintenance. Plan for your funding needs to continue to enhance, fine tune and operate your Integrated Corridor Management Systems (ICMS). Early implementers of ICM have pointed out the need to identify each stakeholders' financial responsibility regarding funding long-term operations and maintenance activities.

Federal-Aid Funding Programs

Table 5 provides a listing of commonly used federal-aid funding programs for which ICM projects and other TSMO activities are likely to be eligible. Agencies should consider the possibility of using these programs for planning and implementation activities for ICM.

Table 5. Federal Funding Programs that May Support ICM and TSMO Project Activities (Source: FHWA)

Federal Funding Program	Purpose	Sample of Eligible Activities Related to ICM/TSMO
Congestion Mitigation and Air Quality (CMAQ)	Provides a flexible funding source to State and local governments for transportation projects and programs to help meet the requirements of the Clean Air Act. Funding is available to reduce congestion and improve air quality for areas that do not meet the National Ambient Air Quality Standards for ozone, carbon monoxide, or particulate matter (nonattainment areas) as well as former nonattainment areas that are now in compliance (maintenance areas).	Projects that improve traffic flow, including projects to improve signalization, construct high occupancy vehicle (HOV) lanes, improve intersections, add turning lanes, improve TSMO strategies that mitigate congestion and improve air quality, and implement ITS and other CMAQ eligible projects, including projects to improve incident and emergency response or improve mobility, such as real—time traffic, transit, and multimodal traveler information.
Highway Safety Improvement Program (HSIP)	To achieve a significant reduction in traffic fatalities and serious injuries on all public roads, including non—State—owned public roads and roads on tribal lands. A highway safety improvement project is any strategy, activity or project on a public road that is consistent with the data—driven State Strategic Highway Safety Plan (SHSP) and corrects or improves a hazardous road location or feature or addresses a highway safety problem.	Installation of a priority control system for emergency vehicles at signalized intersections. Collection, analysis, and improvement of safety data. Planning integrated, interoperable emergency communications equipment, operational activities, or traffic enforcement activities (including police assistance) relating to work zone safety.
National Highway Performance Program (NHPP)	To support the condition and performance of the National Highway System (NHS), for the construction of new facilities on the NHS, and 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 NHS.	Operational improvements of NHS segments, including capital improvements for installation of traffic surveillance and control equipment, computerized signal systems, traveler information systems, integrated traffic control systems, incident management programs, and transportation demand management facilities, strategies, and programs. Capital and operating costs for traffic and traveler information, monitoring and management programs, and infrastructure—based ITS capital projects.
Surface Transportation Program (STP)/ Surface Transportation Block Program (STPB)	Provides flexible funding that may be used by States and localities for projects to preserve and improve the conditions and performance on any Federal—aid highway, bridge and tunnel projects on any public road, pedestrian and bicycle infrastructure, and transit capital projects.	Operational improvements for highways. Capital and operating costs for traffic monitoring, management and control facilities and programs, including advanced truck stop electrification. Infrastructure—based ITS capital improvements.
Metropolitan Planning	Establishes a cooperative, continuous, and comprehensive framework for making transportation investment decisions in metropolitan areas.	Planning funds may provide MPO staff support for regional transportation operations coordination, regional operations guideline development, minor studies, and other staff activities to support regional TSMO or ICM programs.

Source: https://ops.fhwa.dot.gov/publications/fhwahop13050/index.htm
(Bond, Alex et al, Programming for Operations: MPO Examples of Programming and Funding, FHWA-HOP-13-050, 2013.)

USDOT Discretionary Grant Programs

USDOT Discretionary Grant Programs are a great resource for potential ICM funding, particularly when paired with large infrastructure projects (depending on the specific criteria of the grant program). Table 6 provides examples and brief overview of a few applicable USDOT Discretionary Grant Programs. Please note that this section is for informational purposes only and project selection is not assured.

Table 6. USDOT Discretionary Grant Programs that May Support ICM Project Activities (Source: USDOT)

USDOT Discretionary Grant Program	Description
Advanced Transportation and Congestion Management Technologies Deployment (ATCMTD)9	The Fixing America's Surface Transportation (FAST) Act established the ATCMTD to make competitive grants for the development of model deployment sites for large scale installation and operation of advanced transportation technologies to improve safety, efficiency, system performance, and infrastructure return on investment.
Better Utilizing Investments to Leverage Development (BUILD) Grant (Formerly Transportation Investment Generating Economic Recovery (TIGER))10	The BUILD Transportation Discretionary Grant program provides a unique opportunity for the USDOT to invest in road, rail, transit and port projects that promise to achieve national objectives. Previously known as TIGER Discretionary Grants, Congress has dedicated nearly $7.1 billion for ten rounds of National Infrastructure Investments to fund projects that build and repair critical pieces of our freight and passenger transportation networks and have a significant local or regional impact.
Infrastructure for Rebuilding America (INFRA)11	The FAST Act established the Nationally Significant Freight and Highway Projects (NSFHP) program to provide financial assistance—competitive grants, known as INFRA grants, or credit assistance—to nationally and regionally significant freight and highway projects that align with the below-listed program goals. Improve the safety, efficiency, and reliability of the movement of freight and people. Generate national or regional economic benefits and an increase in global economic competitiveness. Reduce highway congestion and bottlenecks. Improve connectivity between modes of freight transportation. Enhance the resiliency of critical highway infrastructure and help protect the environment. Improve roadways vital to national energy security. Address the impact of population growth on the movement of people and freight.

Advanced Transportation and Congestion Management Technologies Deployment (ATCMTD)

The Fixing America's Surface Transportation (FAST) Act established the Advanced Transportation and Congestion Management Technologies Deployment Program to make competitive grants for the development of model deployment sites for large scale installation and operation of advanced transportation technologies to improve safety, efficiency, system performance, and infrastructure return on investment.

Eligible Activities for ATCMTD funding include the following list:

• Advanced traveler information systems.
• Advanced transportation management technologies.
• Infrastructure maintenance, monitoring, and condition assessment.
• Advanced public transportation systems.
• Transportation system performance data collection, analysis, and dissemination systems.
• Advanced safety systems, including vehicle-to-vehicle and vehicle-to-infrastructure communications.
• Technologies associated with autonomous vehicles, and other collision avoidance technologies, including systems using cellular technology.
• Integration of intelligent transportation systems with the Smart Grid and other energy distribution and charging systems.
• Electronic pricing and payment systems.
• Advanced mobility and access technologies, such as dynamic ridesharing and information systems to support human services for elderly and disabled individuals. [23.U.S.C. 503(c)(4)(E)]

A grant recipient may use up to 5% of the funds awarded each fiscal year to carry out planning and reporting requirements under the program. [23 U.S.C. 503(c)(4)(L)]

Better Utilizing Investments to Leverage Development (BUILD) Grant

The Consolidated Appropriations Act, 2018 (Pub. L. 115— 141, March 23, 2018) ("FY 2018 Appropriations Act" or the "Act") appropriated $1.5 billion to be awarded by the Department of Transportation ("DOT" or the "Department") for National Infrastructure Investments. This appropriation stems from the program funded and implemented pursuant to the American Recovery and Reinvestment Act of 2009 (the "Recovery Act"). This program was previously known as the Transportation Investment Generating Economic Recovery, or "TIGER Discretionary Grants," program and is now known as the Better Utilizing Investments to Leverage Development, or "BUILD Transportation Discretionary Grants," program.

Infrastructure for Rebuilding America (INFRA)

INFRA is an opportunity to apply directly for financial assistance for highway and freight projects of national or regional significance. To maximize the value of FY 2019 INFRA funds for all Americans, the Department is focusing the competition on transportation infrastructure projects that support four key objectives: (1) Supporting economic vitality at the national and regional level; (2) Leveraging Federal funding to attract non-Federal sources of infrastructure investment; (3) Deploying innovative technology, encouraging innovative approaches to project delivery, and incentivizing the use of innovative financing; and (4) Holding grant recipients accountable for their performance.

State and Local Funding Sources

To successfully mainstream ICM, State and local funding sources ultimately need to be used. Most, if not all, federal programs that may support ICM implementation require State and local funding match. These sources may include county or regional, as well as State and local, funding categories. A wide variety of programs are may be available for ICM implementation depending on the specific criteria established for those programs and budget categories. Many areas also have funding categories specific to operations and maintenance expenses.