2/17/2016 Coordinated Border Infrastructure Program Funds Utilization within the US States Bordering Mexico At the US/Mexico Joint Working Committee (JWC) meeting in November of 2005, the US Border States committed to sharing with the Mexican Secretariat of Communications and Transportation (SCT) their processes for distributing funds received from the Coordinated Border Infrastructure program (CBI) in Section 1303 of SAFETEA-LU within their state and the process by which this funding can be spent in Mexico. This paper is divided into two sections. The first section provides the background on the CBI program. The second section provides program information on a state by state basis. CBI Background Program Purpose To improve the safe movement of motor vehicles at or across the land border between the U.S. and Canada and the land border between the U.S. and Mexico. Funding: Funds are apportioned among Border States based on factors related to the movement of people and goods through the land border ports of entry within the boundaries of the State. Factors include the number of incoming commercial trucks; the number of incoming personal motor vehicles and buses; the weight of incoming cargo by commercial trucks; and the number of land border ports of entry. Year Authorization 2005 2006 2007 2008 2009 $123M $145M $165M $190M $210M Eligible Use of Funds States may use funds in a border region, defined as any portion of a US border State within 100 miles of an international land border with Canada or Mexico, for the following types of improvements to facilitate/expedite cross border motor vehicle and cargo movements: Improvements to existing transportation and supporting infrastructure Construction of highways and related safety and safety enforcement facilities related to international trade Operational improvements, including those related to electronic data interchange and use of telecommunications Modifications to regulatory procedures 1 2/17/2016 International coordination of transportation planning, programming, and border operation with Canada and Mexico. Program Features Projects in Canada or Mexico – a border State may use these funds to construct a project in Canada or Mexico if the project directly and predominantly facilitates cross-border vehicle and cargo movement at an international port of entry in the border region of the State. Canada/Mexico must assure that the project will be constructed to standards equivalent to those in the US, and be maintained and used over the useful life of the facility only for the purpose for which the funds were allocated. Transfers to General Services Administration (GSA) – if a border State requests, the Secretary approves, and GSA agrees, up to 15% or $5M (whichever is less) of the State’s border program funds may be transferred to GSA to carry out one or more eligible projects. The State must provide the non-Federal share directly to GSA. (Federal share is usually 80%, but can be 90% or 100% depending on the type of project) Distribution of Funds & Ability to Spend CBI Funds in Mexico Below is a brief description of the philosophies of each of the US Border States on the distribution of funds within their own state. A second paragraph describes the state’s ability to spend CBI funds for transportation infrastructure and transportation related infrastructure projects in Mexico. Because of the overwhelming need in their states and escalating construction costs, the US Border States do not anticipate funding projects in Mexico at this time. Arizona The Arizona Department of Transportation (ADOT) will prioritize projects to be funded with CBI funds utilizing the same performance factors included in the State’s Transportation Plan while ensuring that the criteria established in SAFETEA-LU for CBI funds are met. Those projects with the greatest performance impact will be the first funded. The initial reading by legal counsel is that there is no existing mechanism to fund transportation infrastructure projects in Mexico at this time. California To date the California Department of Transportation (CALTRANS) has been unable to access these funds because of existing legislation (SB 45) which distributes 75% of federal transportation funds to the 43 regional transportation planning agencies (RTPAs) in the state giving them a decision making authority regarding when and where local transportation projects get funded. The other 25% is distributed to Caltrans for inter-regional projects. Because CBI funds can only be used in the border region (100 miles from the U.S.-Mexico border) it 2 2/17/2016 would not make sense to distribute them according to the existing legislation. Proposed legislation (SB 1282(Ducheny)), currently in the state Transportation Committee, will exempt CBI funds from the statewide distribution, thus ensuring that CBI funds are spent on eligible projects. SB 1282 (Ducheny), if passed, will allow full compliance with SAFETEA-LU section 1303. This legislation would allow: A) California to exempt 100% of CBI funding from the regional distribution formulas applicable to California’s State Transportation Improvement Program (STIP). B) Provide language-allowing California to spend CBI funds in Mexico. Once CBI funds are accessed, California will prioritize projects to be funded with CBI funds utilizing the same performance factors included in the State’s Transportation Improvement Program and the Interregional Transportation Improvement Program while meeting the criteria established in SAFETEA-LU for CBI funds. The SR 905 project which connects the Otay Mesa POE to the state highway network has been identified as the primary candidate for CBI funds At the moment, there is no legal mechanism to spend funds in Mexico. If SB 1282 is passed, Caltrans will be able to utilize the funds for projects in Mexico that comply with Sec. 1303 eligibility requirements. New Mexico The New Mexico Department of Transportation (NM DOT) will prioritize projects to be funded with CBI funds utilizing the same performance factors included in the state & regional transportation plans while meeting the criteria established in SAFETEA-LU for CBI funds. The McNutt Road project, which is near the Santa Teresa POE, has been identified as the primary candidate for CBI funds. The initial reading by legal counsel is that only CBI federal funds could potentially be spent in Mexico, but state funds are prohibited from being utilized in Mexico for transportation infrastructure projects. Texas The Texas Department of Transportation (TX DOT) will distribute the CBI funds to their three border districts using the same formula utilized by FHWA for distribution of funds to the state border states, but using the factors (the number of incoming commercial trucks; the number of incoming personal motor vehicles and buses; the weight of incoming cargo by commercial trucks; and the number of land border ports of entries) pertinent to each district. The TX DOT Districts will prioritize projects to be funded with CBI funds utilizing the same performance factors included in the state & regional transportation plans while meeting the criteria established in SAFETEA-LU for CBI funds. The TX DOT Districts may use the funds within a 50 mile radius of border crossings. As per the Texas Transportation Commission Minute Order dated March 30, 2006, the border TXDOT district may use these funds to construct a project that continues into Mexico at a border crossing if the project directly and predominantly facilitates cross border vehicle and cargo movement at an 3 2/17/2016 international port of entry. 4