IRR Program Inventory and Funding Formula Update

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IRR Program Inventory and Funding Formula Update

• M.A.S.T. Impact Week
• Washington, DC
• March 10-13

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The IRR Inventory and the Funding Formula

• The most notable issue in the Indian Reservation
  Roads (IRR) Program over the past year has been
  the funding formula and how it is being
  implemented as well as the resulting funding
  trend.
• This is an issue that impacts all tribes.

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Where We Came From

• Prior to FY2005, the only routes that generated
  funding for tribes were the BIA routes included
  in their respective Inventories.
• Public routes owned by others (tribal, state,
  county, township, other federal, etc) were
  allowed into the inventory and were eligible to
  have IRR funds expended on them. However, they
  did not generate any funding.
• Large land-based tribes had the majority of the
  BIA routes , and therefore received the majority
  of the funding.
• Tribes with little or no reservation, which
  relied on transportation infrastructures owned by
  others were unable to participate in the program.

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Where We Are Today

• In FY2005, new regulations (25 CFR Part 170) were
  implemented as a result of a lengthy Negotiated
  Rulemaking Process.
• The basic formula concept remained the same.
• 50 Cost to construct (CTC).
• 30 Vehicle Miles Traveled (VMT).
• 20 Population.
• Public routes owned by others (tribal, state,
  county, township, other federal, etc) were now
  eligible to generate funding.
• Tribes which relied on transportation
  infrastructures owned by others were now able to
  participate in the program.

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Implementation of Formula

• Since FY2005, when the IRR Program regulations
  were finalized, portions of the formula have not
  been fully implemented because certain data in
  the inventory did not make a distinction as to
  which roads should generate at 100 , and which
  should be factored at a lower percentage as
  intended in the regulations. This portion of the
  regulations is 25 CFR 170, Appendix C to Subpart
  C, Q10.

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Implementation of Formula (cont.)

• 10. Do All IRR Transportation Facilities in the
  IRR Inventory Count at 100 Percent of Their CTC
  and VMT?
• No. The CTC and VMT must be computed at the
  non-Federal share requirement for matching funds
  for any transportation facility that is added to
  the IRR inventory and is eligible for funding for
  construction or reconstruction with Federal
  funds, other than Federal Lands Highway Program
  funds. However, if a facility falls into one or
  more of the following categories, then the CTC
  and VMT factors must be computed at 100 percent
• (1) The transportation facility was approved,
  included, and funded at 100 percent of CTC and
  VMT in the IRR Inventory for funding purposes
  prior to the issuance of these regulations.
• (2) The facility is not eligible for funding for
  construction or reconstruction with Federal
  funds, other than Federal Lands Highway Program
  funds or
• (3) The facility is eligible for funding for
  construction or reconstruction with Federal
  funds, however, the public authority responsible
  for maintenance of the facility provides
  certification of maintenance responsibility and
  its inability to provide funding for the project.

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Implementation of Formula (cont.)

• Not all roads may generate 100 of CTC and VMT,
  the exceptions are described in three parts in
  Question 10
• 1. Roads which are grandfathered
• These are roads that generated funds in the
  formula used in FY2004 (prior to the regulations
  being finalized).
• 2. Roads which are not eligible for federal
  funds, other than Federal Lands Highways Program
  funds.
• 3. Roads in which the owner certifies of its
  inability to provide funding for the project and
  that it has a maintenance responsibility for the
  facility.

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Observing A Trend

• Results
• Because the existing database did not distinguish
  which roads met the specific exception under (2)
  of Q.10, all road ownerships and classes, with
  the exception of State roads, were computed at
  100.
• The resulting impacts tended to favor roads owned
  by others, particularly roads that had higher
  traffic volumes, those classes of roads which do
  receive or are eligible for Federal funds, other
  than Federal Lands Highways funds.
• Inventory Growth since FY2005 has been primarily
  in miles owned by other than BIA or tribe.

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Observing A Trend
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Recognizing a Problem and Seeking a Solution

• If during the course of the implementation of the
  regulations, it is apparent that changes or
  modifications are needed the BIA through the
  Secretary needs to first coordinate any changes
  with the IRRPCC (25CFR170.156(c)) then seek
  public comment.
• (c) The Committee also reviews and provides
  recommendations on IRR Program national concerns
  (including the implementation of this part)
  brought to its attention.

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Role of IRRPCC

• IRR Program Coordinating Committee (IRRPCC)
• Has reviewed and discussed this issue over the
  past year and is not able to come up with a
  recommendation
• Jan2008 the committee provided two views on the
  issue to Indian Affairs management
• Jan29, 2008 committee meeting, some agreement in
  theory was discussed but no recommendation

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Role of IRRPCC (cont.)

• The Committee requested that the Bureau make
  various data runs.
• Each run looked at the ownership and
  classification of routes in the inventory.
• Different percentages were applied to the various
  ownerships classifications for each run.

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Role of IRRPCC (cont.)

• The Committee reviewed all of the eligible roads
  and their corresponding classification.
• A matrix was developed to show where some
  agreement might be possible.
• Because of diverse interests, no consensus could
  be reached.
• The following matrix shows the areas of
  discussion and commonality.

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Recommendation

• Federal staff have reviewed the various data runs
  along with the discussion from the Committee.
• Federal staff have prepared a recommended
  re-write of question 10.
• A matrix was developed to coincide with the
  proposed re-write language.
• This resulting matrix closely resembles the
  matrix created by the IRRCC.

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Recommendation Contd

• The percentage of CTC and VMT used in the RNDF
  calculation is as follows
• (a) For facilities identified in the IRR
  Inventory as Ownership 1 and 2, 100 percent
• (b) For facilities identified in the IRR
  Inventory as Ownership 5, Class 4 5 The
  percentage used will be that shown under the 80
  Federal, 20 State column in the Sliding Scale
  Rates of Federal-aid Participation in Public
  Lands States for Projects not on the Interstate
  System, pursuant to 23 U.S.C. 120(b)(2) and
• (c) For facilities not included in (a) or (b)
  above - The percentage used will be the
  difference between 100 and that shown under the
  80 Federal, 20 State column in the Sliding
  Scale Rates of Federal-aid Participation in
  Public Lands States for Projects not on the
  Interstate System, pursuant to 23 U.S.C.
  120(b)(2), except for Class 1 roads which shall
  have a percentage of zero.

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Data Runs(Using FY 07 Inventory Data)

• Run 1 Baseline
• As is implementation (similar to FY 05, 06,
  07)
• All ownership w/ exception of 3 calculated at
  100 CTC and VMT
• Ownership 3 calculated at Non-Federal Match
• Run 2 (Committee RUN)
• Ownership 1 2 100 CTC and VMT
• Ownership 5, Class 4 5 100CTC and VMT
• All Other At Non-Federal Match
• Run 3 (Committee RUN)
• Ownership 1 2 100 CTC and VMT
• Ownership 3-9, Class 4 5 100 CTC and VMT
• All Others At Non-Federal Match
• Run 4 (Committee RUN)
• Ownership 1 2 100 CTC and VMT
• Ownership 4 5 At Non-Federal Match
• All Others 0 CTC and VMT

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Question 10 Items Understood to Have Majority
Agreement

• BIA (1 6) and Tribal (2) owned roads should
  generate at 100 of CTC and VMT
• Regardless of whether or not the route is on or
  off reservation
• Classes 1-8

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Question 10 Items Understood to Have Majority
Agreement

• Class 2-8 State owned routes regardless of agency
  (3), should generate at the non-federal share
  percentage for CTC and VMT
• Regardless of location

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Question 10 Items Understood to Have Majority
Agreement

• Class 1 roads other than BIA and Tribal owned
  should generate 0 CTC and VMT
• Major arterial roads with characteristics of
  serving traffic between large population centers.
  
• ADT 9,999 or more or
• More than two lanes of traffic

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Summary

• Recognized a Problem.
• BIA and tribal roads are generating less.
• Roads owned by others are generating more.
• BIA and Tribal roads sole source of funding is
  the IRR Program.
• Most roads owned by others are eligible to
  receive other federal funds.

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Summary cont

• Seeking a solution.
• The IRRCC has had good discussion on this topic,
  but is unable to come to consensus.
• BIA has prepared a recommended re-write to
  question 10.
• This proposal will be rolled out at various
  tribal meetings in the near future and published
  in the federal register as a Notice of Proposed
  Rule Making (NPRM) for public comment.
• Changes in Regulation will be effective FY2009.

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THE END