11

IRR Program Inventory IRR Program Inventory and Funding Formula and Funding Formula

UpdateUpdateM.A.S.T. Impact Week M.A.S.T. Impact Week

Washington, DCWashington, DCMarch 10-13March 10-13

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The IRR Inventory and the Funding The IRR Inventory and the Funding FormulaFormula

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

This is an issue that impacts all This is an issue that impacts all tribes.tribes.

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Where We Came FromWhere We Came From Prior to FY2005, the only routes that generated Prior to FY2005, the only routes that generated

funding for tribes were the BIA routes included in funding for tribes were the BIA routes included in their respective Inventories.their respective Inventories.

Public routes owned by others (tribal, state, Public routes owned by others (tribal, state, county, township, other federal, etc) were allowed county, township, other federal, etc) were allowed into the inventory and were eligible to have IRR into the inventory and were eligible to have IRR funds expended on them. However, they did not funds expended on them. However, they did not generate any funding.generate any funding.

Large land-based tribes had the majority of the Large land-based tribes had the majority of the BIA routes , and therefore received the majority BIA routes , and therefore received the majority of the funding.of the funding.

Tribes with little or no reservation, which relied on Tribes with little or no reservation, which relied on transportation infrastructures owned by others transportation infrastructures owned by others were unable to participate in the program.were unable to participate in the program.

44

Where We Are TodayWhere We Are Today In FY2005, new regulations (25 CFR Part 170) In FY2005, new regulations (25 CFR Part 170)

were implemented as a result of a lengthy were implemented as a result of a lengthy Negotiated Rulemaking Process.Negotiated Rulemaking Process.

The basic formula concept remained the same.The basic formula concept remained the same.– 50% Cost to construct (CTC).50% Cost to construct (CTC).– 30% Vehicle Miles Traveled (VMT).30% Vehicle Miles Traveled (VMT).– 20 % Population.20 % Population.

Public routes owned by others (tribal, state, Public routes owned by others (tribal, state, county, township, other federal, etc) were now county, township, other federal, etc) were now eligible to generate funding.eligible to generate funding.

Tribes which relied on transportation Tribes which relied on transportation infrastructures owned by others were now able to infrastructures owned by others were now able to participate in the program.participate in the program.

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Implementation of FormulaImplementation of Formula

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

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Implementation of Formula (cont.)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.)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 TrendObserving A Trend Results:Results:

– Because the existing database did not Because the existing database did not distinguish which roads met the specific distinguish which roads met the specific exception under (2) of Q.10, exception under (2) of Q.10, all road all road ownerships and classes, with the exception of ownerships and classes, with the exception of State roads, were computed at 100%.State roads, were computed at 100%.

– The resulting impacts tended to favor roads The resulting impacts tended to favor roads owned by others, particularly roads that had owned by others, particularly roads that had higher traffic volumes, those classes of roads higher traffic volumes, those classes of roads which do receive or are eligible for Federal which do receive or are eligible for Federal funds, other than Federal Lands Highways funds, other than Federal Lands Highways funds.funds.

– Inventory Growth since FY2005 has been Inventory Growth since FY2005 has been primarily in miles owned by other than BIA or primarily in miles owned by other than BIA or tribe.tribe.

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Observing A TrendObserving A Trend

BIA Tribal State UrbanCounty Township Other BIA Other Fed

Other Non-Fed No Owner

FY2007 102,197.5 29,750.7 9,734.2 13,666.4 1,465.3 43,180.2 144.5 2,294.0 1,631.8 330.4

FY2006 85,481.5 28,706.2 4,276.7 13,198.7 897.8 34,295.8 138.8 2,302.8 1,445.5 127.5

FY2005 62,869.9 27,384.9 2,851.2 9,048.7 544.7 22,323.7 134.1 370.8 121.6 90.2

Total IRR Miles

Public Authority Responsible for Maintaining/Improving Roads

1010

Recognizing a Problem and Recognizing a Problem and Seeking a SolutionSeeking a Solution

If during the course of the implementation If during the course of the implementation of the regulations, it is apparent that of the regulations, it is apparent that changes or modifications are needed the changes or modifications are needed the BIA through the Secretary needs to first BIA through the Secretary needs to first coordinate any changes with the IRRPCC coordinate any changes with the IRRPCC (25CFR170.156(c)) then seek public (25CFR170.156(c)) then seek public comment. 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 IRRPCCRole of IRRPCC

IRR Program Coordinating Committee IRR Program Coordinating Committee (IRRPCC)(IRRPCC)– Has reviewed and discussed this issue Has reviewed and discussed this issue

over the past year and is not able to over the past year and is not able to come up with a recommendationcome up with a recommendation Jan2008 the committee provided two views on Jan2008 the committee provided two views on

the issue to Indian Affairs managementthe issue to Indian Affairs management Jan29, 2008 committee meeting, some Jan29, 2008 committee meeting, some

agreement in theory was discussed but no agreement in theory was discussed but no recommendationrecommendation

1212

Role of IRRPCC (cont.)Role of IRRPCC (cont.)

The Committee requested that the The Committee requested that the Bureau make various data runs.Bureau make various data runs.

Each run looked at the ownership and Each run looked at the ownership and classification of routes in the classification of routes in the inventory.inventory.– Different percentages were applied to Different percentages were applied to

the various ownerships & classifications the various ownerships & classifications for each run.for each run.

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Role of IRRPCC (cont.)Role of IRRPCC (cont.)

The Committee reviewed all of the eligible The Committee reviewed all of the eligible roads and their corresponding roads and their corresponding classification.classification.

A matrix was developed to show where A matrix was developed to show where some agreement might be possible.some agreement might be possible.

Because of diverse interests, no consensus Because of diverse interests, no consensus could be reached.could be reached.

The following matrix shows the areas of The following matrix shows the areas of discussion and commonality.discussion and commonality.

1414

1515

RecommendationRecommendation Federal staff have reviewed the Federal staff have reviewed the

various data runs along with the various data runs along with the discussion from the Committee.discussion from the Committee.

Federal staff have prepared a Federal staff have prepared a recommended re-write of question recommended re-write of question 10.10.

A matrix was developed to coincide A matrix was developed to coincide with the proposed re-write language.with the proposed re-write language.

This resulting matrix closely This resulting matrix closely resembles the matrix created by the resembles the matrix created by the IRRCC.IRRCC.

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The percentage of CTC and VMT used in the RNDF The percentage of CTC and VMT used in the RNDF calculation is as follows:calculation is as follows:– (a) For facilities identified in the IRR Inventory as Ownership 1 (a) For facilities identified in the IRR Inventory as Ownership 1

and 2, – 100 percent;and 2, – 100 percent;– (b) For facilities identified in the IRR Inventory as Ownership (b) For facilities identified in the IRR Inventory as Ownership

5, Class 4 & 5 – The percentage used will be that shown under 5, Class 4 & 5 – The percentage used will be that shown under the the 80% Federal, 20% State80% Federal, 20% State column in the “Sliding Scale column in the “Sliding Scale Rates of Federal-aid Participation in Public Lands States for Rates of Federal-aid Participation in Public Lands States for Projects not on the Interstate System”, pursuant to 23 U.S.C. Projects not on the Interstate System”, pursuant to 23 U.S.C. 120(b)(2); and120(b)(2); and

– (c) For facilities not included in (a) or (b) above - The (c) For facilities not included in (a) or (b) above - The percentage used will be the difference between 100 and that percentage used will be the difference between 100 and that shown under the shown under the 80% Federal, 20% State80% Federal, 20% State column in the column in the “Sliding Scale Rates of Federal-aid Participation in Public “Sliding Scale Rates of Federal-aid Participation in Public Lands States for Projects not on the Interstate System”, Lands States for Projects not on the Interstate System”, pursuant to 23 U.S.C. 120(b)(2), except for Class 1 roads pursuant to 23 U.S.C. 120(b)(2), except for Class 1 roads which shall have a percentage of zero. which shall have a percentage of zero.

Recommendation Cont’dRecommendation Cont’d

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Data RunsData Runs(Using FY 07’ Inventory Data)(Using FY 07’ Inventory Data)

Run 1 – BaselineRun 1 – Baseline – ““As is” implementation (similar to FY 05’, 06’, 07’)As is” implementation (similar to FY 05’, 06’, 07’)– All ownership w/ exception of 3 calculated at 100% CTC and VMTAll ownership w/ exception of 3 calculated at 100% CTC and VMT– Ownership 3 calculated at Non-Federal MatchOwnership 3 calculated at Non-Federal Match

Run 2 (Committee RUN)Run 2 (Committee RUN)– Ownership 1 & 2Ownership 1 & 2 100% CTC and VMT100% CTC and VMT– Ownership 5, Class 4 & 5Ownership 5, Class 4 & 5 100%CTC and VMT100%CTC and VMT– All OtherAll Other At Non-Federal MatchAt Non-Federal Match

Run 3 (Committee RUN)Run 3 (Committee RUN)– Ownership 1 & 2Ownership 1 & 2 100% CTC and VMT100% CTC and VMT– Ownership 3-9, Class 4 & 5Ownership 3-9, Class 4 & 5 100% CTC and VMT100% CTC and VMT– All OthersAll Others At Non-Federal MatchAt Non-Federal Match

Run 4 (Committee RUN)Run 4 (Committee RUN)– Ownership 1 & 2Ownership 1 & 2 100% CTC and VMT100% CTC and VMT– Ownership 4 & 5Ownership 4 & 5 At Non-Federal MatchAt Non-Federal Match– All Others All Others 0% CTC and VMT0% CTC and VMT

Run 5 (BIA Recommendation, see Matrix) Run 5 (BIA Recommendation, see Matrix)

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Question 10 Items Understood to Have Question 10 Items Understood to Have Majority AgreementMajority Agreement

BIA (1 & 6) and Tribal (2) owned BIA (1 & 6) and Tribal (2) owned roads should generate at 100% of roads should generate at 100% of CTC and VMTCTC and VMT– Regardless of whether or not the route Regardless of whether or not the route

is on or off reservation is on or off reservation – Classes 1-8Classes 1-8

2020

Question 10 Items Understood to Have Question 10 Items Understood to Have Majority AgreementMajority Agreement

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

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Question 10 Items Understood to Have Question 10 Items Understood to Have Majority AgreementMajority Agreement

Class 1 roads other than BIA and Class 1 roads other than BIA and Tribal owned should generate 0% Tribal owned should generate 0% CTC and VMTCTC and VMT– Major arterial roads with characteristics Major arterial roads with characteristics

of serving traffic between large of serving traffic between large population centers. population centers.

– ADT 9,999 or more; orADT 9,999 or more; or– More than two lanes of trafficMore than two lanes of traffic

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REGIONShare (%) Amount ($) Share (%) Amount ($) Share (%) Amount ($) Share (%) Amount ($) Share (%) Amount ($)

A - GR. PLAINS 6.50% 19,194,818 7.62% 22,521,838 7.22% 21,335,200 6.87% 20,293,677 7.51% 22,175,231

B - SO. PLAINS 2.78% 8,216,738 3.34% 9,856,266 3.25% 9,593,942 2.32% 6,851,329 3.26% 9,617,834

C - ROCKY MTN 7.44% 21,988,927 8.44% 24,930,599 8.43% 24,890,233 7.98% 23,577,517 8.50% 25,101,548

E - ALASKA 12.21% 36,070,741 10.48% 30,963,959 11.18% 33,033,325 14.01% 41,379,198 11.01% 32,512,012

F - MIDWEST 13.38% 39,517,651 12.79% 37,777,619 13.28% 39,245,932 11.13% 32,891,678 12.20% 36,045,541

G - EASTERN OK 12.97% 38,317,409 15.08% 44,563,392 15.28% 45,143,901 7.93% 23,419,236 13.65% 40,314,074

H - WESTERN 6.27% 18,520,881 7.26% 21,442,171 6.95% 20,517,687 9.30% 27,477,141 7.57% 22,355,598

J - PACIFIC 2.34% 6,908,118 1.86% 5,499,835 1.94% 5,730,855 1.73% 5,121,581 1.89% 5,585,951

M - SOUTHWEST 4.41% 13,020,857 5.09% 15,047,024 4.80% 14,192,373 6.59% 19,457,253 5.32% 15,724,623

N - NAVAJO 23.50% 69,410,946 20.51% 60,599,412 19.26% 56,901,894 23.54% 69,547,773 21.38% 63,159,334

P - NORTHWEST 6.38% 18,840,531 5.34% 15,768,681 6.29% 18,594,459 5.97% 17,630,938 5.49% 16,212,378

S - EASTERN 1.83% 5,416,744 2.18% 6,453,565 2.11% 6,244,559 2.63% 7,777,040 2.24% 6,620,238

Max for Region

Min for Region

RUN5

Comparison of DATA RUNS

Run 1 - BASELINE RUN 2 RUN3 RUN4

2323

SummarySummary Recognized a Problem.Recognized a Problem.

– BIA and tribal roads are generating less.BIA and tribal roads are generating less.– Roads owned by others are generating Roads owned by others are generating

more.more.– BIA and Tribal roads sole source of BIA and Tribal roads sole source of

funding is the IRR Program.funding is the IRR Program.– MostMost roads owned by others are eligible roads owned by others are eligible

to receive other federal funds.to receive other federal funds.

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Summary con’tSummary con’t Seeking a solution.Seeking a solution.

– The IRRCC has had good discussion on The IRRCC has had good discussion on this topic, but is unable to come to this topic, but is unable to come to consensus.consensus.

– BIA has prepared a recommended re-BIA has prepared a recommended re-write to question 10.write to question 10.

– This proposal will be rolled out at This proposal will be rolled out at various tribal meetings in the near various tribal meetings in the near future and published in the federal future and published in the federal register as a “Notice of Proposed Rule register as a “Notice of Proposed Rule Making (NPRM)” for public comment.Making (NPRM)” for public comment.

– Changes in Regulation will be effective Changes in Regulation will be effective FY2009.FY2009.

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THE ENDTHE END