Transportation Division

Congestion Mitigation/Air Quality (CMAQ)

The CMAQ program was created under the Intermodal Surface Transportation Efficiency Act (ISTEA) of 1991, continued under the Transportation Equity Act for the 21^st Century (TEA-21), and reauthorized by the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU). Over $8.6 billion is authorized over the five-year program (2005-2009), with annual authorization amounts increasing each year during this period. Through 2005, the program has supported nearly 16,000 transportation projects across the country.

The purpose of the CMAQ program is to fund transportation projects or programs that will contribute to attainment or maintenance of the national ambient air quality standards (NAAQS) for ozone, carbon monoxide (CO), and particulate matter (PM).  The CMAQ program supports two important goals of the Department of Transportation: improving air quality and relieving congestion. While these goals are not new elements of the program, they are strengthened in a new provision added to the CMAQ statute by SAFETEA-LU, establishing priority consideration for cost-effective emission reduction and congestion mitigation activities when using CMAQ funding.

Priority of Use for CMAQ Funds under SAFETEA-LU
The SAFETEA-LU directs States and MPOs to give priority to two categories of funding. First, to diesel retrofits, particularly where necessary to facilitate contract compliance, and other cost-effective emission reduction activities, taking into consideration air quality and health effects. Second, priority is to be given to cost-effective congestion mitigation activities that provide air quality benefits. 

Though the SAFETEA-LU establishes these CMAQ investment priorities, it also retains State and local agencies’ authority in project selection. The law maintains the existing roles and authorities of public agencies, and substantial shifts in local procedures are not required by the SAFETEA-LU. However, project selection should reflect the positive cost-effectiveness relationships. State and local transportation programs that implement a broad array of these cost-effective measures may record a more rapid rate of progress toward their clean air goals, since many of these endeavors generate immediate benefits. Local procedures that elevate the importance of these efforts in project selection—and rate them accordingly—may accelerate the drive to air quality attainment.

Federal Share & State/Local Match Requirements
The Federal share for most eligible projects is generally 80 percent (90 percent for projects on the Interstate System). Activities identified in 23 U.S.C. §120(c), including traffic control signalization, commuter carpooling and vanpooling, and signalization projects to provide priority for transit vehicles, may be funded at up to 100 percent Federal share if they meet the conditions of that section.

Although not required for public-private partnerships (PPP) under the CMAQ program, State and local officials have the discretion to request a higher local match from the private sector partner. For example, project sponsors may find that a CMAQ PPP requiring a 50 percent local match contribution is more appropriate than the standard 20 percent required under Federal law. In addition, higher local matches for these efforts can leverage CMAQ funding and extend the program to a greater pool of projects.

Geographic Area Eligible to Use CMAQ Funds
Eligible Areas: CMAQ funds may be invested in all 8-hour ozone, CO, and PM non-attainment and maintenance areas. Funds also may be spent in the few remaining one-hour ozone maintenance areas (these counties also have Early Action Compacts in place), since the one-hour standard remains in effect for these areas.

Funds also may be used for projects in proximity to non-attainment and maintenance areas if the benefits will be realized primarily within the non-attainment or maintenance area. The delineation of an area considered “in proximity” should be discussed with the FHWA and FTA field offices and elevated to headquarters if necessary.

Maintenance Areas: CMAQ funds may be invested in maintenance areas that have approved maintenance plans under CAA section 175A. In States with ozone or CO maintenance areas but no nonattainment areas, mandatory CMAQ funds must be used in the maintenance areas.

Project Eligibility - Provisions
To be eligible for CMAQ funds, a project must be included in the MPO’s current transportation plan and TIP (or the current STIP in areas without an MPO). In non-attainment and maintenance areas, the project also must meet the conformity provisions contained in Section 176(c) of the Clean Air Act and the transportation conformity rule. In addition, all CMAQ-funded projects need to complete National Environmental Policy Act (NEPA) requirements and meet basic eligibility requirements for funding under titles 23 and 49 of the United States Code.

The following should guide CMAQ eligibility decisions:

1.  Capital Investment - CMAQ funds may be used to establish new or expanded transportation projects or programs that reduce emissions, including capital investments in transportation infrastructure, congestion relief efforts, diesel engine retrofits, or other capital projects.

2.  Operating Assistance - There are several general conditions that must be met for operating assistance to be eligible under the CMAQ program.

a. Operating assistance is limited to new transit services, intermodal facilities, and travel demand management strategies (including traffic operation centers); and the incremental cost of expanding existing transit services.

b. In using CMAQ funds for operating assistance, the intent is to help start up viable new transportation services that can demonstrate air quality benefits and eventually cover their costs as much as possible. Other funding sources should supplement and ultimately replace CMAQ funds for operating assistance, as these projects no longer represent additional, net air quality benefits but have become part of the baseline transportation network.

c. Operating assistance includes all costs of providing new transportation services, including, but not limited to, labor, fuel, administrative costs, and maintenance.

d. When CMAQ funds are used for operating assistance, non-Federal share requirements still apply.

e. With the focus on start-up costs only, operating assistance under the CMAQ program is limited to three years. The provisions in 23 U.S.C. §116 place responsibilities for maintenance on States. Since facility maintenance is akin to operations, three years of CMAQ assistance provides adequate incentive and flexibility while not creating a pattern of excessive or even perpetual support.

3.  Emission Reduction - Air quality improvement is defined by several distinct terms in 23 U.S.C. §149. These terms include contribution to attainment, reduction in pollution, air quality benefits, and others. For purposes of this guidance, the FHWA uses emission reduction to represent this group of terms. CMAQ-invested projects or programs must reduce CO, ozone precursor (NOx and VOCs), PM, or PM precursor (e.g., NOx) emissions from transportation. These reductions must contribute to the area’s overall clean air strategy and can be demonstrated by the assessment that is required under this guidance. States and MPOs also may consider the ancillary benefits of eligible projects, including greenhouse gas reductions, congestion relief, safety, or other elements, when programming CMAQ funds, though such benefits do not alone establish eligibility.

4.  Planning & Project Development - Activities in support of eligible projects also may be appropriate for CMAQ investments. Studies that are part of the project development pipeline (e.g., preliminary engineering) under the National Environmental Policy Act (NEPA) are eligible for CMAQ support, as are FTA’s Alternatives Analyses. General studies that fall outside specific project development do not qualify for CMAQ funding. Examples of such efforts include major investment studies, commuter preference studies, modal market polls or surveys, transit master plans, and others. These activities are eligible for Federal planning funds.

Projects NOT Eligible for CMAQ Funding
The following projects are ineligible for CMAQ funding:

1. Light-duty vehicle scrappage programs.
2. Projects that add new capacity for SOVs are ineligible for CMAQ funding unless construction is limited to high-occupancy vehicle (HOV) lanes.
3. Routine maintenance and rehabilitation projects (e.g., replacement-in-kind of track or other equipment, reconstruction of bridges, stations, and other facilities, and repaving or repairing roads) are ineligible for CMAQ funding as they only maintain existing levels of highway and transit service, and therefore do not reduce emissions. Other funding sources, such as STP and FTA’s Section 5307 program, are available for such activities.
4. Administrative costs of the CMAQ program may not be defrayed with program funds, e.g., support for a State’s “CMAQ Project Management Office” is not eligible.
5. Projects that do not meet the specific eligibility requirements of titles 23 and 49 U.S.C. are ineligible for CMAQ funds.
6. Stand-alone projects to purchase fuel.

Public-Private Partnerships (PPPs)
In a PPP, a private or non-profit entity’s resources replace or supplement State or local funds and possibly a portion of the Federal-aid in a selected project. The PPP elements of the program have been refined over the last two transportation reauthorizations, and these partnerships have become a critical part of CMAQ.

Partnerships must have a legal, written agreement in place between the public agency and the private or non-profit entity before a CMAQ-funded project may be implemented. These agreements should be developed under relevant State contract law and should specify the intended use for CMAQ funding; the roles and responsibilities of the participating entities; and how the disposition of land, facilities, and equipment will be carried out should the original terms of the agreement be altered (e.g., due to insolvency, change in ownership, or other changes in the structure of the PPP).

Public funds should not be invested where a strong public benefit cannot be demonstrated. Consequently, CMAQ funds must be devoted only to PPPs that benefit the general public by clearly reducing emissions, not for financing marginal projects. Consistent with the planning and project selection provisions of the Federal-aid highway program, the FHWA considers it essential that all interested parties have full, open, and timely access to the project selection process.

There are several other statutory restrictions and special provisions on the use of CMAQ funds in PPPs. Eligible costs under this section may not include costs to fund an obligation imposed on private sector or non-profit entities under the CAA or any other Federal law. However, if the private or non-profit entity is clearly exceeding its obligations under Federal law, CMAQ funds may be used for that incremental portion of the project.

Eligible non-monetary activities that satisfy the non-Federal match requirements under the partnership provisions include the following:

• Ownership or operation of land, facilities, or other physical assets
• Construction or project management
• Other forms of participation approved by the U.S. DOT

Sharing of total project costs, both capital and operating, is a critical element of a successful public-private venture, particularly if the private entity is expected to realize profits as part of the joint venture. State and local officials are urged to consider a full range of cost-sharing options when developing a PPP, including a larger State/local match than the usual 20 percent required under Federal law. For detailed information on cost principles beyond the scope of this guidance, please consult OMB Circular A-87, which focuses on determining allowable costs for State, local, and tribal governments; and 49 CFR Part 18, which provides direction on administering Federal grants to State and local governments.

Eligible Projects & Programs
Eligibility information is provided below. Not all possible requests for CMAQ funding are covered—this section provides examples of activities eligible for CMAQ funds.  Please refer to the CMAQ Guidance issued in October 2006 for additional information and qualifications for each of these activities.

1.  Transportation Control Measures (TCMs)
2.  Extreme Low Temperature Cold Start Program
3.  Alternative Fuels and Vehicles
4.  Congestion Reduction and Traffic Flow Improvements
5.  Transit Improvements
6.  Bicycle and Pedestrian Facilities & Programs:
7.  Travel Demand Management (TDM)
8.  Public Education & Outreach Activities
9.  Transportation Management Associations:
10. Carpooling & Vanpooling
11. Freight/Intermodal
12. Diesel Engine Retrofits & Other Advanced Truck Technologies
13. Idle Reduction
14. Training
15. Inspection/Maintenance Programs
16. Experimental Pilot Projects

Project Selection Process - General Conditions
Proposals for CMAQ funding should include a precise description of the project, providing information on its size, scope, location, and timetable. Also, an assessment of the project’s expected emission reduction benefits is required prior to project selection to better inform the selection of CMAQ projects (See Below).

Quantitative Analysis - Quantified emissions benefits (i.e., emissions reductions) and disbenefits (i.e., emissions increases) should be included in all project proposals, except where it is not possible to quantify emissions benefits (see Qualitative Assessment, below). Benefits and disbenefits should be included for all pollutants for which the area is in nonattainment or maintenance status. Benefits should be listed in a consistent fashion (i.e., kg/day) across projects to allow accurate comparison during the project selection process.

State and local transportation and air quality agencies conduct CMAQ-project air quality analyses with different approaches, analytical capabilities, and technical expertise. The SAFETEA-LU encourages State DOTs and MPOs to consult with State and local air quality agencies about the estimated emission reductions from CMAQ proposals. However, while no single method is specified, every effort must be taken to ensure that determinations of air quality benefits are credible and based on a reproducible and logical analytical procedure

Qualitative Assessment - Although quantitative analysis of air quality impacts is required for almost all project types, an exception to this requirement will be made when it is not possible to accurately quantify emissions benefits. In these cases, a qualitative assessment based on a reasoned and logical determination that the project or program will decrease emissions and contribute to attainment or maintenance of a NAAQS is acceptable.

Public education, marketing, and other outreach efforts, which can include advertising alternatives to SOV travel, employer outreach, and public education campaigns, may fall into this category. The primary benefit of these activities is enhanced communication and outreach that is expected to influence travel behavior, and thus air quality.

Grouped Projects Analysis - In some situations, it may be more appropriate to examine the impacts of comprehensive strategies to improve air quality by grouping projects. For example, transit improvements coupled with demand management to reduce SOV use in a corridor might best be analyzed together. Other examples include linked signalization projects, transit improvements, marketing and outreach programs, and ridesharing programs that affect an entire region or corridor.

Tradeoffs - As noted above, emissions benefits should be calculated for all pollutants for which an area is in nonattainment or maintenance status. Some potential projects may lead to benefits for one pollutant and increased emissions for another, especially when the balance involves precursors such as NOx and VOC.  

See the information below for the appropriate CMAQ contact.