Notice

This document is disseminated under the sponsorship of the United States Department of Transportation in the interest 

of information exchange. The United States Government assumes no liability for its contents or use thereof. The United 

States Government does not endorse products or manufacturers. Trademarks or manufacturers’ names appear herein 

only because they are considered essential to the objective of this document. 

www.planning.dot.gov

Cover photos: © iStockPhoto.com/(Highway) Urbancow; (Bus) RiverNorthPhotography; (Train) KStork; (Bicyclist) jondpatton; (Pedestrian) 

RiverNorthPhotography
Table of Contents

Introduction ...........................................................................................................................................................1

PART I: OVERVIEW OF TRANSPORTATION PLANNING.......................................................................... 2

What is the Transportation Planning Process? .....................................................................................................2

What is Performance-Based Planning? ................................................................................................................3

What is a Metropolitan Planning Organization? ....................................................................................................4

What Other Responsibilities do Some MPOs Have? ............................................................................................6

What is a State Department of Transportation?....................................................................................................7

What is a Regional Transportation Planning Organization?..................................................................................8

What is a Public Transportation Operator? ...........................................................................................................8

How do Agencies Cooperate? ..............................................................................................................................8

What are the Key Products of the Transportation Planning Process? ..................................................................9

How does Federal Transportation Funding Reach States and Metropolitan Areas? ..........................................12

How is Federal Funding Used?...........................................................................................................................13

What Are Flexible Funds?...................................................................................................................................14

PART II: MAJOR POLICY AND PLANNING ISSUES................................................................................ 15

Statutory Requirements ......................................................................................................................................15

Air Quality.................................................................................................................................................15

Congestion Management Process ...........................................................................................................21

Transportation Equity ...............................................................................................................................23

Financial Planning and Programming.......................................................................................................27

Performance-Based Planning: Programming Measures and Targets ......................................................31

Planning Data and Tools: Models, GIS, and Visualization .......................................................................34

Public Involvement ...................................................................................................................................39

Safety .......................................................................................................................................................41

Security ....................................................................................................................................................43

Transportation Asset Management ..........................................................................................................44

Transportation System Management and Operations..............................................................................46

Other Policy and Planning Considerations..........................................................................................................50

Climate Change........................................................................................................................................50

Freight Movement ....................................................................................................................................51

Land Use and Transportation...................................................................................................................53

Planning and Environment Linkages........................................................................................................56
Scenario Planning ....................................................................................................................................61

Travel Model Improvement Program........................................................................................................62

APPENDIX .................................................................................................................................................. 63

Acronyms ............................................................................................................................................................63

Glossary..............................................................................................................................................................64

Federal Aid Transportation Programs .................................................................................................................72
The Transportation Planning Process: Key Issues

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Introduction

Transportation at its core is about mobility and access. Patterns of growth and activity for people and goods across 

America are fundamentally driven by how well the transportation system delivers mobility and access. The 

performance of the transportation system also affects public policy concerns, such as air quality, environmental 

resource consumption, social equity, climate change, land use, urban growth, economic development, safety, and 

security. Transportation planning recognizes the critical links between transportation needs and other societal goals. 

The planning process involves more than simply tabulating capital projects. It includes nonmotorized strategies for 

operating, managing, maintaining, and financing the transportation system to advance an area’s long-term goals and 

the regional community’s shared vision for the future. 

This book provides an overview of transportation planning and will be useful for government officials, transportation 

decisionmakers, planning board members, transportation service providers, interested stakeholders, and the public. It 

covers the basics and key concepts of metropolitan and Statewide transportation planning, along with references for 

additional information. 

Part I discusses transportation planning and its relationship to decisionmaking. This section is general and provides a 

broad introduction to the planning process. 

Part II presents short descriptions of the key products that are prepared as part of the transportation planning 

process. 

This book has been updated to reflect recent changes in Federal legislation 

concerning the requirements for transportation planning at the metropolitan, and

Statewide and nonmetropolitan levels. It is an informational publication that replaces 

its predecessor of the same title published in 2015.

This report, along with a collection of related informational resources, is available 

electronically on the Transportation Planning Capacity Building website at 

www.planning.dot.gov and is updated periodically to include additional topics or 

information.

For more information about the topics discussed in this book, contact your local 

Federal Highway Administration (FHWA) division or Federal Transit Administration 

(FTA) regional office. For information on how to reach FHWA or FTA staff, visit the 

FHWA and FTA websites at www.fhwa.dot.gov and www.fta.dot.gov, or the 

Transportation Planning Capacity Building website at www.planning.dot.gov.

The 2007 Briefing Book for 

Transportation Decisionmakers, 

Officials, and Staff.
The Transportation Planning Process: Key Issues

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PART I: OVERVIEW OF TRANSPORTATION PLANNING 

Transportation planning plays a critical role in a State’s, region’s or community’s vision for its future. It includes (1) a 

comprehensive consideration of possible strategies, (2) an evaluation process that encompasses diverse viewpoints,

(3) the collaborative participation of relevant transportation-related agencies and organizations, and (4) open, timely, 

and meaningful public involvement. 

What is the Transportation Planning Process? 

Transportation planning is a cooperative, performance-driven process by which long and short-range transportation 

improvement priorities are determined. Metropolitan planning organizations (MPOs), States, and transit operators 

conduct transportation planning, with active involvement from the traveling public, the business community, 

community groups, environmental organizations, and freight operators. 

Figure 1. The Transportation Planning Process.
The Transportation Planning Process: Key Issues

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Transportation planning typically follows the following steps: 

 Engaging the public and stakeholders to establish shared goals and visions 

for the community.

 Monitoring existing conditions and comparing them against transportation 

performance goals.

 Forecasting future population and employment growth, including assessing 

projected land uses in the region and identifying major corridors of growth or 

redevelopment.

 Identifying current and projected transportation needs by developing

performance measures and targets.

 Analyzing various transportation improvement strategies and their related 

tradeoffs using detailed planning studies.

 Developing long-range plans and short-range programs of alternative 

capital improvement, management, and operational strategies for moving 

people and goods.

 Estimating how recommended improvements to the transportation system will 

impact achievement of performance goals, as well as impacts on the economy 

and environmental quality, including air quality.

 Developing a financial plan to secure sufficient revenues that cover the costs 

of implementing strategies and ensure ongoing maintenance and operation.

What is Performance-Based Planning?

Federal legislation has established a close connection between performance measures and performance target 

levels. These measures and target levels are connected through transportation plans and programs developed at the 

metropolitan and Statewide levels. As described in preceding sections, States and MPOs are responsible for setting 

performance targets for agreed upon performance measures for the Statewide and nonmetropolitan and metropolitan 

transportation planning processes respectively. In accordance with Federal law, USDOT is responsible for identifying 

performance measures related to national highway and transit performance goals that States and MPOs use in 

setting performance targets. With these national goals as a baseline, States and MPOs may identify additional 

performance measures and targets that address local community visions and goals.

For more on performance-based planning and programming (PBPP), please see the section of this briefing book 

titled Performance-Based Planning: Programming Measures and Targets.
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What is a Metropolitan Planning Organization?

A Metropolitan Planning Organization (MPO) has authority and responsibility for transportation policy-making in 

metropolitan planning areas.

1 Federal legislation passed in the early 1970s requires that any urbanized area (UZA)2

with a population greater than 50,000 have an MPO. MPOs ensure that existing and future expenditures for 

transportation projects and programs are based on a continuing, cooperative and comprehensive (3-C) planning 

process. MPOs also cooperate with State and public transportation operators to set spending levels for Federal funds 

that are meant for transportation projects. Note that some MPOs are found within agencies such as Regional 

Planning Organizations (RPOs), Councils of Governments (COGs), and others. 

Because MPOs typically neither own nor operate the transportation systems they serve, most MPOs will not be 

involved in implementing the transportation project priorities they establish. Rather, MPOs serve an overall 

coordination and consensus-building role in planning and programming funds for projects and operations. The MPO 

must involve local transportation providers in the planning process by including transit agencies, State and local 

highway departments, airport authorities, maritime operators, rail-freight operators, Amtrak, port operators, private 

providers of public transportation, and others within the MPO region. 

By law, an MPO is defined as a policy board comprised of local elected officials. Representatives from local 

governments and transportation agencies serve on MPOs and perform the six core functions that follow:

1) Establish a setting for effective decisionmaking

Establish and manage a fair and impartial setting for effective regional 

decisionmaking in the metropolitan area.

2) Identify and evaluate transportation improvement options

Develop transportation improvement options and use data and planning methods 

to evaluate whether those options support criteria and system performance 

targets. Planning studies and evaluations are included in the Unified Planning 

Work Program (UPWP). 

3) Prepare and maintain a Metropolitan Transportation Plan

Develop and update a long-range transportation plan (LRTP) for the metropolitan 

area covering a planning horizon of at least 20 years. MPOs prepare LRTPs 

using performance measures and targets. These are the planning factors that 

MPOs and departments of transportation consider to guide their planning 

processes: 

 Support the economic vitality of the metropolitan area, especially by 

enabling global competitiveness, productivity, and efficiency.

 Increase the safety of the transportation system for motorized and 

nonmotorized users.

 Increase the security of the transportation system for motorized and 

nonmotorized users.

 Increase accessibility and mobility for people and freight.

 

1 A metropolitan planning area must include the urbanized area and areas expected to become urbanized over the next 20 years. 

2 An urbanized area is an area that contains a city of 50,000 or more population plus the incorporated surrounding areas meeting 

size or density criteria as defined by the U.S. Census Bureau. 
The Transportation Planning Process: Key Issues

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 Protect and enhance the environment.

 Promote energy conservation.

 Improve quality of life for the community.

 Promote consistency between transportation improvements and planned 

State and local growth and economic development patterns.

 Enhance the integration and connectivity of the transportation system for 

all modes.

 Promote efficient system management and operation.

 Emphasize the preservation of the existing transportation system.

 Improve the resiliency and reliability of the transportation system and 

reduce or mitigate stormwater impacts of surface transportation; and

 Enhance travel and tourism.

4) Develop a Transportation Improvement Program (TIP)

Develop a short-range, four-year program of priority transportation improvements 

drawn from the long-range transportation plan. The MPO creates the TIP with 

spending, regulating, operating, management, and financial tools. The TIP 

represents immediate priority actions to achieve the area’s goals and associated 

system performance targets. 

5) Identify performance measure targets and monitor whether implemented 

projects are achieving targets

MPOs coordinate with State and public transportation operators to establish 

performance targets that address performance measures, as set forth in Federal

law, related to surface transportation and public transportation. MPOs prepare 

plans that include performance targets addressing performance measures and 

standards. When updating the plan, MPOs also prepare a System Performance 

Report that tracks progress in meeting performance targets. In addition to 

Federally required performance measures, MPOs may identify additional, locally 

significant performance indicators that support decisionmaking.

6) Involve the public

Involve the general public and other affected constituencies related to the 

essential decisionmaking elements listed above. 

In accordance with Federal requirements, MPOs must cooperate with the State and providers of public transportation

to create metropolitan transportation plans. The MPO approves the Metropolitan Transportation Plan (MTP), while

the governor and the MPO approve the TIP. 

UZAs with populations exceeding 200,000 typically have more complex transportation systems and associated 

challenges than smaller regions. Accordingly, these large UZAs have additional planning responsibilities and are 

designated as Transportation Management Areas (TMAs). MPOs within TMAs must include officials of public 

agencies that administer or operate major modes of transportation in the metropolitan area and providers of public 

transportation on their policy boards, as well as appropriate State officials.
The Transportation Planning Process: Key Issues

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There is no required structure for the advisory bodies and staff that provide planning and analysis to MPOs.

Technical and Citizen Advisory Committees and a staff of planners led by a director also support the metropolitan 

transportation planning process. 

MPO staff assist the MPO board by preparing documents, fostering interagency coordination, facilitating public input 

and feedback, and managing the planning process. MPO staff may also provide committees with technical 

assessments and evaluations of proposed transportation initiatives, and the MPO staff may engage consultants to 

produce data.

A technical advisory committee may then recommend specific strategies or projects to the MPO policy board. An 

advisory committee may also provide technical analysis, specialized knowledge, and citizen input on specific issues. 

It is common for an MPO to have a Technical Advisory Committee and Citizen Advisory Committee, and to have 

subcommittees on specific issues such as system performance, environmental justice (EJ), bicycle issues, and travel 

demand modeling.

The metropolitan transportation planning process must engage the public and stakeholders on an ongoing basis in all 

facets of planning, to spur dialogue on critical issues facing regions and provide opportunities for the public to 

contribute ideas. This is especially important in the early and middle stages of the process, when the plan and the 

TIP are developed. Special attention should be paid to groups that are underrepresented in the transportation 

planning decision making process or have been underserved in terms of the expenditure of transportation dollars 

(see Equity). 

What Other Responsibilities do Some MPOs Have? 

Areas designated as air quality nonattainment area (NAA) or maintenance 

area for transportation-related pollutants have additional requirements that

affect the transportation planning process. In metropolitan areas, MTPs, TIPs, 

and FHWA/FTA projects must conform to the purpose of the State’s air quality 

plan, known as the State implementation plan (SIP). In such metropolitan 

areas, the MPO and FHWA/FTA are responsible for demonstrating 

transportation conformity requirements are met.

MPOs that are in TMAs, in addition to preparing the documents noted above, 

must also maintain a congestion management process (CMP) that identifies 

actions and strategies for reducing congestion and increasing mobility.

Projects and strategies from the CMP should be considered for inclusion in the 

MTP and TIP.

MPOs that are in TMAs consult with the State and affected public transit 

operators to implement projects from the TIP, except for projects proposed for 

funding under the National Highway System program. For non-TMA MPOs 

and in rural areas, States and public transit operators cooperate with the MPO 

or local governments to select projects to implement from the TIP.

In addition to meeting Federal mandates, MPOs often have extra 

responsibilities under State law. For example, California’s MPOs are 

responsible for allocating some non-Federal transportation funds in their 

regions, while other States give MPOs a shared role in growth management 

and land-use planning. 

——————————————

It is important to note how 

project selection differs from 

project prioritization. 

Prioritization is the cooperative 

process among States, MPOs, 

and transit agencies for 

identifying projects and 

strategies from the MTP that are 

of sufficiently high priority as to 

be included in the TIP. 

Project selection, on the other 

hand, relates to identifying 

projects that are already listed in 

the TIP that are next in line for 

grant award and funding 

authorization. In TMAs, MPOs 

play a lead role in project 

selection for most program 

funding categories.

——————————————
The Transportation Planning Process: Key Issues

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What is a State Department of Transportation?

Each State, Puerto Rico, and the District of Columbia has an agency or department responsible for transportation 

planning, programming, and project implementation—these agencies are called State DOTs. In addition to 

transportation planning responsibilities, State DOTs may be responsible for the design, construction, operation, or 

maintenance of State transportation facilities, including highways, transit, air, and water. State DOTs also work 

cooperatively with tolling authorities, ports, local agencies, and special districts that own, operate, or maintain 

different portions of the transportation network or individual facilities.

State DOTs perform the following transportation planning functions:

 Prepare and Maintain a Long-Range Statewide Transportation Plan

A State DOT creates long-range transportation plans (LRSTPs) using

performance measures and targets that advance national goals established in 

Federal law. In addition to Federally required performance measures, States may 

identify State-level performance indicators to support their decisionmaking. 

LRSTPs may be broad, policy-oriented plans that do not cite specific projects, or 

they may be more detailed plans that include recommendations related to 

particular transportation improvements or programs. (For more information on 

LRSTPs see What are the key products of the transportation planning process?) 

 Develop a Statewide Transportation Improvement Program 

State DOTs create a short-range program of transportation projects, based on 

long-range transportation plans, called a statewide transportation improvement 

program (STIP). The State uses spending, regulating, operating, management, 

and financial tools to estimate progress toward the performance targets noted 

above that could be achieved by implementing projects and strategies in the 

STIP. For metropolitan areas of the State, the STIP incorporates the TIP 

developed by the MPO directly by reference and without change. 

 Identify Performance Measure Targets and Monitor Whether Implemented 

Projects Are Achieving Targets

States coordinate with MPOs and transit operators to establish performance 

targets that address performance measures, as set forth in Federal law, related 

to surface transportation and public transportation. Like MPOs, States prepare 

plans that include performance targets to address performance measures and 

standards. When updating these plans, States must prepare a System 

Performance Report that tracks progress toward performance targets. 

In addition to Federally required performance measures, States may identify 

locally significant performance measures to guide the decisionmaking process. 

Statewide and nonmetropolitan transportation plans must integrate goals, 

objectives, national performance measures, and targets identified at the State 

level. States must also consider performance plans developed by transit 

operators in non-urbanized areas to guide their decisionmaking.

 Involve the Public

States must involve the general public and all other affected constituencies in the 

essential functions listed above. MPOs and States engage the public and 

stakeholder communities as they prepare procedures that outline how the public 
The Transportation Planning Process: Key Issues

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will be advised, engaged, and consulted throughout the planning process. MPOs 

prepare public participation plans (PPPs), which describe how the MPO involves 

the public and stakeholder communities in transportation planning. The MPO 

also must periodically evaluate whether its public involvement 

process (PIP) is still effective. Similarly, States prepare documented 

public involvement processes that describe the occasions, 

procedures, and intended outcomes of public engagement in 

Statewide and nonmetropolitan transportation planning.

What is a Regional Transportation Planning 

Organization?

A Regional Transportation Planning Organization (RTPO) is a 

multijurisdictional organization of nonmetropolitan area local officials and 

transportation system operators that States may assemble to assist in the 

Statewide and nonmetropolitan transportation planning process. RTPOs 

emphasize nonmetropolitan areas of the State. An RTPO may have additional 

representatives from the State, private businesses, transportation service 

providers, economic development practitioners, and the public.

What is a Public Transportation Operator?

Public transportation operators are public agencies and governmentally 

chartered authorities that deliver transit services to the general public. As 

such, public transit operators cooperate with States and MPOs to carry out 

the Federally required transportation planning process in metropolitan areas.

MPOs and States must include projects from public transit operators in MTPs 

and TIPs in order for those projects to receive Federal financial support.

How do Agencies Cooperate? 

Transportation planning must be cooperative, because no single agency is 

responsible for the entire transportation system. Some roads that are part of 

the Interstate Highway System are subject to certain standards and are 

usually maintained by a State DOT. Other roads are county arterials or city 

streets that, along with bicycle and pedestrian facilities, are designed, 

operated, and maintained by counties or local municipalities. Transit systems 

are often built, operated, and maintained by an entity or special regional 

authority that is not an agency of the State or local jurisdiction. There may be 

more than one public transit operator in a metropolitan area serving a network 

of separate but interdependent mobility needs.

In metropolitan areas, MPOs are responsible for actively seeking participation 

during the planning process from the public and all relevant transportation 

agencies and stakeholders, including the State and public transit operators. 

Similarly, State DOTs are responsible for these activities outside of 

metropolitan areas, in cooperation with local transportation officials from

nonmetropolitan areas. MPOs must work with the public and stakeholder 

——————————————

The Federal Government has a 

government-to-government 

relationship with Indian tribal 

governments that is affirmed in 

treaties, Supreme Court 

decisions, and executive orders. 

Federal agencies must consult 

with Indian tribal governments 

regarding policy and regulatory 

matters.

State DOTs consider the needs 

of Indian tribal governments 

when carrying out transportation 

planning, and consult with 

Indian tribal governments in 

developing LRSTPs and STIPs.

MPOs may consider the needs 

of and consult with Indian tribal 

governments when developing 

MTPs and TIPs, when the 

metropolitan planning area 

includes Indian tribal lands.

Outside of the Statewide, 

metropolitan, and 

nonmetropolitan planning 

processes, State DOTs and 

MPOs may consult with Indian 

tribal governments on other 

issues—for example, when a 

project may affect Indian tribal 

archeological resources. 

For information on FTA’s Tribal 

Transit Program, see 

www.fta.dot.gov/grants.html.

For information on FHWA tribal 

planning, see 

www.planning.dot.gov/focus_trib

al.asp.

——————————————
The Transportation Planning Process: Key Issues

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9

communities to prepare public participation plans that describe how the public, interested parties and stakeholders 

will be provided access to planning documents and information.

Similarly, State DOTs must have a documented process for consulting officials from nonmetropolitan areas when

preparing their long-range Statewide transportation plans. Similarly, States must cooperate with local transportation 

officials in nonmetropolitan areas when preparing their STIPs—and, more broadly, in carrying out the Statewide and 

nonmetropolitan transportation planning process. States can establish and designate RTPOs to facilitate consultation 

with nonmetropolitan local officials.

Regional Models of Cooperation

Transportation agencies around the country are demonstrating how many different types of cooperation can enhance 

transportation planning. An enhanced process for effective communication used by State DOTs, MPOs and transit 

authorities can result in improved collaboration, policy implementation, technology use and performance 

management. Using these Regional Models of Cooperation requires thinking beyond traditional borders and brings 

together many entities to support common goals on transportation planning topics such as congestion management, 

safety, freight, livability and commerce. The competitive advantage of Regional Models of Cooperation for 

transportation planning is that they can improve decisionmaking, save time and money through shared resources, 

and help agencies achieve more by working together. They can improve freight and congestion management 

coordination across jurisdictional boundaries, support ways to address issues facing the region, and enhance public 

trust. Agencies find that working together and pooling resources can reduce their individual costs and lead to greater 

outcomes than they could have achieved alone.

What are the Key Products of the Transportation Planning Process?

As illustrated in Figure 2, Federal requirements call for agencies to deliver several key groups of documents as part 

of the transportation planning process:

 Planning Work Programs, which include UPWPs prepared by MPOs and State 

Planning and Research Work Programs prepared by States.

 Transportation Plans, which include MTPs prepared by MPOs and LRSTPs

prepared by States.

 Transportation Improvement Programs, which include Metropolitan TIPs

prepared by MPOs and Statewide TIPs prepared by States.
The Transportation Planning Process: Key Issues

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Figure 2. The key transportation planning products.

The Unified Planning Work Program 

The UPWP lists the transportation studies and tasks that MPO staff and member agencies will perform to support the 

metropolitan transportation planning process. It must identify the funding source for each project, the schedule of 

activities, and the agency or agencies responsible for each task or study. UPWPs reflect issues and strategic 

priorities unique to each metropolitan area and will differ by MPO. 

UPWPs cover a one- to two-year period and typically include the following elements: 

 Planning data and analysis tasks, such as data collection and trends 

monitoring, and studies of a variety of demographic, development, 

transportation, and environmental factors.

 Public outreach activities conducted in accordance with the PPP, including 

collaborative development of the PPP and periodic evaluation of its 

effectiveness.

 Preparing the MTP and TIP, including supporting studies and products that will 

result from these activities.

 Completing of all Federally funded studies, including all relevant State and 

local planning activities conducted without Federal funds.

The Metropolitan Transportation Plan

In metropolitan areas, the MTP identifies how the region intends to invest in the transportation system. Federal law 

requires that the plan “...include both long-range and short-range strategies/actions that provide for the development 

of an integrated intermodal transportation system... to facilitate the efficient movement of people and goods in 

addressing current and future transportation demand.” 
The Transportation Planning Process: Key Issues

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The MTP is prepared through active engagement with the public and stakeholders using an approach that considers

how roadways, transit, nonmotorized transportation, and intermodal connections are able to improve the operational 

performance of the multimodal transportation system. Accordingly, the MTP must cover performance measures and 

targets and include a report evaluating whether the condition and performance of the transportation system is 

meeting those targets.

The MTP may also describe the results of scenario analyses on transportation system conditions and performance. 

Other information contained in the MTP could include:

 Regional land use, development, housing, and employment goals and plans.

 Projected demand for transportation services over 20 years.

 Policies, strategies, and projects that the MPO recommends for the future.

 Cost estimates and reasonably available financial sources for operation, 

maintenance, and capital investments (see Financial Planning and 

Programming).

 Ways to preserve facilities and efficiently use the existing system. 

In preparing the MTP, the MPO coordinates with the State and public transit operators and makes particular effort to 

engage all communities and stakeholders. Finally, in cases where a metropolitan area is designated as a 

nonattainment or maintenance area for a transportation-related pollutant, the MTP must conform to the SIP for air 

quality (see Air Quality). 

MTPs are updated every five years in air quality attainment areas, every four years in nonattainment or maintenance 

areas, or more frequently in all areas as State and local officials deem necessary.

Transportation Improvement Program 

MPOs use a TIP to identify transportation projects and strategies they will pursue over the next four years. These 

projects reflect the investment priorities detailed in the MTP. TIPs list the immediate program of investments that, 

once implemented, will go toward achieving the performance targets established by the MPO and documented in the 

MTP. In short, a TIP is a region’s means of allocating its transportation resources among the various capital, 

management, and operating investment needs of the area, based on a clear set of short-term transportation priorities 

prepared through a performance-driven process. All projects receiving Federal funding must be in the TIP. 

Under Federal law, TIPs must follow these rules: 

 Cover at least four years of investment.

 Be updated at least every four years.

 Remain fiscally constrained so that projects are only included if their full 

funding can reasonably be anticipated.

 In air quality nonattainment and maintenance areas the projects in the first two 

years of the TIP are limited to those with available or committed funding.

 Conform with the SIP for air quality in nonattainment and maintenance areas.

 Report on anticipated progress in meeting performance targets.

 Include projects for which Federal funds were obligated in the prior year.

 Be approved by the MPO and the governor.

 Be incorporated, directly or by reference and without change, into the STIP.

The Long-Range Statewide Transportation Plan: State DOTs cooperate with MPOs, non-metropolitan area local 

officials, and others to develop an LRSTP using a performance-driven process based on an agreed upon set of 

performance measures and targets. Plans are prepared with active engagement with the public and stakeholders and 
The Transportation Planning Process: Key Issues

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will vary by State. LRSTPs may be either policy-oriented strategic plans, or project–focused investment plans that 

include lists of recommended projects. 

The Statewide plan also addresses: 

 Policies and strategies, or future projects.

 Projected demand for transportation services over 20 or more years.

 A systems-level approach that considers roadways, transit, nonmotorized

transportation, and intermodal connections.

 Statewide and regional land use, development, housing, natural environmental 

resources, freight movement and employment goals and plans.

 Cost estimates and reasonably available financial sources for operation, 

maintenance, and capital investments (see Financial Planning).

 Ways to preserve existing roads and facilities and make more efficient use of 

the existing system.

The State Planning and Research Work Program

The State Planning and Research Work Program (SPR) is similar to the UPWP. It lists transportation studies, 

research, and public engagement tasks that a State DOT, affiliated agencies, or consultants perform to support the 

Statewide and nonmetropolitan transportation planning process. An SPR work program contains several elements: 

 Planning tasks, studies and research activities, conducted over a one- to twoyear period.

 Funding sources identified for each project.

 A schedule of activities and products for that project work.

 The agency responsible for each task or study. 

Statewide Transportation Improvement Program 

The STIP is similar to the TIP in that it identifies the immediate short-range priorities for transportation investments 

Statewide and must be fiscally constrained. Through an established process, State DOTs work with local officials to 

identify projects across rural areas, small urban areas called urban clusters—with 2,500 to 49,999 people—and 

urbanized areas. Projects are selected for the STIP based on adopted procedures and criteria. As noted above, TIPs 

developed by MPOs must be incorporated, directly or by reference and without change, into the STIP.

Under Federal law and regulation, the STIP: 

 Must be fiscally constrained and may include a financial plan.

 Must be approved by FHWA and FTA.

 Including an overall determination, called the Planning Finding, which states 

whether Federal requirements are being met. 

 STIP approval must be granted before projects can proceed from the planning 

stage to the implementation stage.

 Must report anticipated progress in meeting performance targets. 

How does Federal Transportation Funding Reach States and Metropolitan Areas? 

Funding for transportation projects and strategies comes from a variety of sources including the Federal Government, 

State governments, special authorities, public or private tolls, local assessment districts, local government general 

fund contributions, such as local property and sales taxes, and impact fees. However, Federal funding is typically the 

primary funding source for capital investment projects, such as construction and purchase of vehicles and equipment. 
The Transportation Planning Process: Key Issues

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(See Appendix for the most important Federal-aid transportation programs.) Federal transportation funding is 

available through the Federal Highway Trust Fund and the Mass Transit Account of the Trust Fund.

It is important to remember that most Federal-aid highway funding programs are administered by State DOTs. The 

State DOT then allocates money to urban and rural areas, based on State and local priorities and needs. By contrast, 

most Federal transit funding for large urban areas is sent directly from the FTA to the designated recipient transit 

operator(s) in each urbanized area. Federal transit funds for transit services in smaller urban areas and outside of 

urbanized areas are administered by the State DOT. 

Federal funds are made available from the Federal budget through the following sequenced process: 

 Authorizing legislation

Congress enacts legislation that establishes or continues the existing operation 

of a Federal program or agency, including the amount of money it anticipates 

will be available to spend or grant to States, MPOs, and transit operators. 

Congress generally reauthorizes Federal surface transportation programs over 

multiple years, in effect authorizing subsequent Congressional action to make 

annual awards. The amount authorized, however, is not always the amount 

that ends up actually available.

 Appropriations

Annually, as set forth in authorizing legislation, Congress decides on the 

Federal budget for the upcoming fiscal year. As a result of the appropriation 

process, the amount appropriated to a Federal program is often less than the 

amount authorized for a given year. The appropriation is the actual amount 

available to Federal agencies to spend or grant.

 Apportionment

Apportionment describes appropriated funds, which come from selected 

Federal-aid programs, that are distributed among States and metropolitan 

areas (for most transit funds) using a formula provided by law. An 

apportionment is usually made on the first day of the Federal fiscal year, 

October 1, when funds become available for a State to spend in accordance 

with an approved STIP. In many cases, the State is the designated recipient for 

Federal transportation funds; in some cases, transit operators are the recipient.

 Determining eligibility

Only certain projects and activities are eligible to receive Federal transportation 

funding. Criteria depend on the funding source. All projects must be listed in 

the STIP and be consistent with the MTP and the long-range Statewide plan to 

be eligible for Federal-aid highway and Federal transit funding.

 Match

Most Federal transportation programs require a non-Federal match. State or 

local governments must contribute some portion of the project cost at a

matching level established by legislation. For many programs, the amount that

State or local governments must contribute is 20 percent of the capital cost of

most highway and transit projects.

How is Federal Funding Used? 

There are many Federal-aid transportation programs that support transportation activities in States and metropolitan 

areas. Each of these programs has different requirements and characteristics. These are not cash-up-front programs; 

rather, eligible expenditures are reimbursed. Even though amounts are authorized to States or awarded as grants to 
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transit operators, no cash is actually disbursed at the time of authorization. Instead, States and transit operators are 

notified that they have Federal funds available. Projects are approved and work is started. Then, the Federal

Government reimburses the States and transit operators for costs as they are incurred, reimbursing up to the limit of 

the Federal share. In some areas, MPOs serve dual roles as planning entities and as public transit operators. Only in 

those exceptional cases may the MPO receive direct disbursement of Federal funds.

The Federal Government holds State and public transit operator funding recipients accountable for complying with all 

applicable Federal laws. When local governments directly oversee a Federally funded project, State DOTs are 

responsible for monitoring that they comply with Federal laws. 

What Are Flexible Funds?

One important provision in Federal transportation legislation allows certain Federal-aid highway funds and limited 

Federal transit funds to be used for either highway or transit projects. This is referred to as flexible funding. The 

ability to transfer funds, with some restrictions, between highway and transit programs, as well as to spend certain 

categories of Federal funding directly on either highway or transit improvements, lets metropolitan areas apply 

Federal transportation resources to their highest-priority transportation projects regardless of mode.

It is important to note that MPOs discuss the need and opportunities for using flex-funds during the metropolitan 

transportation planning process. As the MPO presides over the preparation of MTP and TIP and associated financial 

plans, it may play a key role in facilitating a dialogue during which agencies can make the case for receiving flexible 

funding to augment their traditional formula-based award. Flexible funding is most commonly used through FHWA’s 

Surface Transportation Block Grant (STBG) and Congestion Mitigation and Air Quality Improvement (CMAQ) 

program. 
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PART II: MAJOR POLICY AND PLANNING ISSUES 

Although the transportation planning process is concerned primarily with issues facing a particular metropolitan area 

or State, there are many issues common to all parts of the country. This section addresses and details transportation 

topics and issues that many States and MPOs may share.

Each section includes a topic description, MPO and State DOT roles, and an overview of how the transportation 

planning process addresses the topic. The end of each section includes relevant online resources. 

Statutory Requirements

Air Quality

What is the relationship between transportation and air quality?

The transportation system can be an influential factor affecting a region’s air quality and estimated emissions of 

pollutants from motor vehicles are often a key consideration in transportation planning. Areas that have 

nonattainment or maintenance air quality status must ensure that emissions from Federal transportation investments 

conform with levels set forth in State air quality plans, and State DOTs and MPOs must understand air quality-related 

transportation planning requirements.

Nonattainment areas are geographic areas that do not meet the Federal air quality standards. Maintenance areas are 

areas that once violated but currently meet the Federal air quality standards. If no violations of air quality standards 

have been found, the area may be determined to be in compliance or attainment with a Federal air quality standard. 

An area can be in nonattainment for one pollutant and in attainment for another. Transportation conformity is required 

in nonattainment and maintenance areas for the transportation-related criteria pollutants - ozone, carbon monoxide, 

nitrogen dioxide, and particulate matter (PM10 and PM2.5). 

What are the major sources of air pollution? 

The air quality of an area is affected by how pollutants interact with sunlight, topography, and weather patterns. 

Pollutants are emitted by motor vehicle operation and by a variety of other sources, including manufacturing, energy 

production, burning petroleum-based products, and even by small business activities, such as dry cleaning. 

Stationary sources include relatively large, fixed facilities, such as power plants, chemical process industries, and 

petroleum refineries. 

Area sources are small, stationary, non-transportation sources that collectively contribute to air pollution, such as 

dry cleaners, gas stations, landfills, and wastewater treatment plants. 

Mobile sources include on-road vehicles such as cars, trucks, and buses, and off-road sources such as trains, 

ships, airplanes, boats, lawnmowers, and construction equipment. 

The key transportation-related pollutants that interact with sunlight to produce ground-level ozone, also known as 

smog, are volatile organic compounds (VOCs) and nitrogen oxides (NOx). Particulates are another type of pollution, 

referred to as PM10 or PM2.5, for particles that are smaller than 10 microns or less than 2.5 microns in diameter, 
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respectively. Carbon monoxide and nitrogen dioxide are also pollutants associated with transportation sources. 

These pollutants cannot exceed certain specified levels in a given region. 

In nonattainment and maintenance areas, Federal funding and approval for transportation projects is only available if 

transportation activities are consistent with air quality goals, as determined during the transportation conformity 

process. The transportation conformity process includes a number of requirements that MPOs must meet as well as 

requirements that project sponsors must meet for projects (see What is transportation conformity and how does it 

relate to the NAAQS?). 

The Clean Air Act (CAA) requires that each State’s environmental agency develop a State Implementation Plan. The 

SIP shows how the State will implement measures designed to improve air quality and meet National Ambient Air 

Quality Standards (NAAQS) for each type of air pollutant, according to the schedules included in the CAA. Pollutants 

are usually measured in parts per million (ppm) or micrograms per cubic meter (μg/m3) of ambient air, and standards 

vary by type of pollutant. 

Sources of pollution can be examined for ways to reduce emissions and improve air quality. As illustrated in Figure 4, 

for each source category the SIP can generate emission reduction targets for pollutants. During the SIP development 

process, an emissions limit is established for on-road mobile sources, called a motor vehicle emissions budget.

Figure 3. An example SIP showing projected reductions in pollutants by source.

Different strategies can help areas achieve clean air through vehicle emissions reductions efforts—for example, 

using reformulated gasoline or implementing Inspection and Maintenance (I/M) programs—changes to travel 

behavior—for example, ride sharing or public transit—and congestion reduction projects—for example, signal 

synchronization programs. MPOs actively work with the State to set motor vehicle emissions budgets. 

How do MPOs help improve air quality?

The Clean Air Act Amendments (CAAA) of 1990 identify the actions States and MPOs must take to reduce emissions 

from on-road mobile sources in nonattainment and maintenance areas. 

The challenge for MPOs, States, and local transportation and air quality agencies in nonattainment or maintenance 

areas is deciding on a mix of transit, highway, and bicycle-pedestrian investments that, combined with vehicle 

performance and technology-based strategies, such as I/M programs or reformulated gasoline, will keep emissions 
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within the allowable limits for motor vehicles. MPOs are encouraged to identify transportation strategies that will help 

reduce emissions from on-road mobile sources of pollution. 

Many MPOs have developed public education and communications campaigns to publicize the connection between 

transportation and air quality and to encourage the public to make travel choices that benefit air quality. 

What is transportation conformity and how does it relate to the NAAQS? 

The transportation conformity process, as illustrated in Figure 4, is a way to ensure that MTPs, TIPs, and FHWA/FTA 

projects meet air quality goals in order to be eligible for Federal funding and approval. Whenever an MTP or TIP is 

amended or updated, the MPO must address transportation conformity requirements.

According to the CAA, transportation plans, TIPs, and projects cannot do the following: 

 Create new violations of the NAAQS.

 Increase the frequency or severity of existing violations of the standards.

 Delay timely attainment of the standards or any interim milestones. 
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Figure 4. The transportation conformity process.
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What is a conformity determination and who is responsible? 

Transportation conformity on MTPs and TIPs is demonstrated in part when projected regional emissions for the MTP 

and TIP do not exceed the region’s motor vehicle emissions budgets contained in the SIP, or meet one of the interim 

emissions tests in areas without a motor vehicle emissions budget. A conformity determination is a finding by the 

MPO policy board, and subsequently by FHWA and FTA, that the MTP and TIP meet all transportation conformity 

requirements. While the MPO is responsible for ensuring a conformity determination is made, the conformity process 

depends on Federal, State, and local transportation and air quality agencies working together to meet the 

transportation conformity requirements. 

Transportation control measures (TCMs) are measures specifically identified and committed to in the SIP. A TCM is 

one of those listed in CAA section 108 or any other measure for the purpose of reducing emissions or concentrations 

of air pollutants from transportation sources by reducing vehicle use or changing traffic flow or congestion conditions. 

If an approved SIP includes any TCMs, then each time an MPO updates its MTP and TIP, it must assure that the 

TCMs are being implemented on schedule. Those TCMs must be programmed for timely implementation in the TIP.

A necessary part of the transportation and air quality planning process is consulting with other involved agencies on 

critical issues and providing opportunities for public participation. MPOs must inform the public that they are going to 

make a conformity determination, make all relevant documents reasonably available, and give adequate time to 

review the documents and supporting materials.

What plans, programs, and projects are subject to transportation conformity 

requirements? 

MTPs and TIPs in nonattainment and maintenance areas for the 

transportation-related NAAQS must meet conformity requirements. This 

includes all projects that are expected to be funded or that will require 

approval by FHWA or FTA at any point during the life of the MTP or TIP. 

Also, regional emissions analysis of the transportation plan and TIP must 

include any regionally significant projects—as defined by the conformity rule—

even those that are not Federally funded or approved.

Conformity determinations at the project level must be made for Federal

highway and transit projects, and it must be demonstrated that the project is 

part of a conforming MTP and TIP. As part of project-level determinations in

carbon monoxide and particulate matter areas, localized analysis 

requirements apply for projects that are Federally funded or Federally 

approved in nonattainment and maintenance areas. This localized analysis is 

called “hot-spot” analysis.

How frequently must a transportation conformity determination be made on the MTP and TIP? 

An MPO must make a conformity determination on the MTP and TIP at least every four years and each time the 

MPO updates or amends its transportation plan or its TIP (except for administrative modifications and amendments 

that include only exempt projects). A conformity determination is also required not more than 24 months after EPA 

approves a SIP budget or finds it adequate. When an area is newly designated as nonattainment, there is a 12-

month grace period before transportation conformity applies.

——————————————

A number of non-metropolitan 

areas also are being included in 

urban area designations or 

being designated as standalone 

entities. Generally, MPOs and 

State DOTs work cooperatively 

on regional emissions analysis 

in areas that are included in an 

urban area designation. Isolated 

rural areas, where there is no 

MPO in the nonattainment or 

maintenance area, may rely on 

State DOT staff to address

conformity issues.

——————————————
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What happens if the MPO cannot make a conformity determination on time?

If an MPO cannot make a conformity determination on time it will have a grace period of 12 months after the deadline 

is missed before conformity will lapse. During the grace period, transportation projects from the previously 

conforming and unexpired plan and TIP may continue to be eligible for funding, and the TIP may be amended to add 

projects from the conforming plan. If conformity has not been re-established after the 12 month grace period the 

transportation conformity status for the area goes into lapse, whereby FTA and FHWA cannot authorize work on any 

new transportation projects or phases unless they are Transportation Control Measures (TCMs) from an approved 

SIP, exempt from conformity, or project phases that were authorized by FHWA and FTA before the lapse. Exempt 

projects are those that have little or no impact on emissions, such as safety projects and certain public transportation 

projects. Note that the 12-month lapse grace period does not apply for newly designated metropolitan areas, which

must have a conforming plan and TIP in place no later than 12 months after the effective date of designation.

What funding is available for air quality improvement programs and projects?

Part of the Federal-aid highway program, the Congestion Mitigation and Air Quality Improvement (CMAQ) program 

was created in 1991 specifically to improve air quality. Please see the CMAQ Program Guidance for more 

information on project eligibility and agency roles and responsibilities. 

Additional Resources 

For information about transportation conformity, see FHWA resources at 

www.fhwa.dot.gov/environment/air_quality/conformity and EPA resources at www.epa.gov/state-and-localtransportation/transportation-conformity. 

For information about the CMAQ program including program guidance, see 

http://www.fhwa.dot.gov/environment/air_quality/cmaq.
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Congestion Management Process

What is the Congestion Management Process?

Congestion management is the term for applying strategies that improve transportation system performance and 

reliability by reducing the adverse impacts of congestion on the movement of people and goods. A congestion 

management process (CMP) is a systematic approach, defined by region, for managing congestion through the use 

of travel demand reduction and operational management strategies. The CMP provides accurate, up-to-date 

information on transportation system performance and assesses alternative strategies for congestion management 

that meet State and local needs. It works within the transportation planning process to move congestion management 

strategies into the funding and implementation stages.

What are the requirements for the CMP?

A CMP is required in TMAs—Transportation Management Areas. The CMP is intended to address congestion 

through a process that provides for effective transportation system management and operations (TSM&O), based on 

cooperatively developed travel demand reduction and operational management strategies. Even if a metropolitan 

area is not a TMA, the CMP represents good practice in monitoring, assessing, and resolving congestion issues. The 

CMP establishes a systematic method to identify and evaluate transportation improvement strategies, including 

operations and capital projects.

How is the CMP valuable to an MPO?

A well-designed CMP should help an MPO perform the following functions:

 Define congestion in the region and identify congested locations.

 Determine the cause of congestion.

 Evaluate the potential of different strategies to manage congestion.

 Propose alternative strategies that best address causes and impacts of 

congestion.

 Evaluate impacts and effectiveness of previously implemented strategies.

Benefits of the CMP

A successful CMP offers many benefits to the regional transportation system. Congestion concerns inevitably tie into 

community choices regarding transit services, livability, and land use. When identifying goals, actions, and 

investments to address regional congestion, broader planning goals can be considered as well, in order to create one 

unified and efficient approach to achieve the desired vision of the community. The CMP is not intended to be a 

standalone process but instead should be integrated into the larger overall planning process.

The CMP provides a framework for responding to transportation system congestion in a consistent, coordinated 

fashion. The CMP framework addresses congestion through a performance-based process that involves developing 

congestion management objectives and supportive performance measures, collecting appropriate data, analyzing 

problems, identifying solutions, and evaluating whether implemented strategies are effective. 

The CMP brings more partners and stakeholders into the metropolitan transportation planning process, to build interagency collaboration and coordination. These partners and stakeholders often include agencies responsible for 

transportation system operations—such as State and local transportation agencies, toll authorities, and transit 

agencies—land use planning agencies, transportation management associations, and the public.
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The CMP is a mechanism for identifying short-, medium-, and long-term strategies for addressing congestion on a 

system-wide, corridor-level, and site-specific basis. It also highlights Transportation Demand Management (TDM) 

and operations strategies that historically may not have been a focus of metropolitan transportation planning. In 

addition, the CMP can focus on issues such as transportation system reliability and non-recurring congestion, which 

are not well-addressed through traditional transportation demand modeling. Highlighting these strategies can help 

agencies effectively allocate limited transportation funds among projects and programs for operations and capital.

How does Transportation Demand Management relate to the CMP? 

Transportation Demand Management (TDM) is any action or set of actions designed to influence the intensity, timing, 

and distribution of transportation demand, in order to reduce traffic congestion or enhance mobility. The following 

strategies fall under TDM:

 Offering travelers alternative transportation modes or services, such as transit, 

ridesharing, or bikesharing.

 Providing incentives to travel on these modes or at non-congested hours.

 Investing in projects that facilitate safer, more convenient travel by foot or 

bicycle.

 Providing opportunities to link or chain trips together.

 Incorporating growth management or traffic impact policies into local land use 

and economic development decisions. 

TDM strategies are part of the toolbox of actions available to transportation planners for solving transportation 

problems. As part of the congestion management process, TDM actions can reduce congestion or enhance 

accessibility to jobs, goods, and services, usually at a cost much less than widening or building new roads, bridges or 

other significant physical infrastructure. 

Additional Information

For more in the relationship between the congestion management process and planning, see

www.fhwa.dot.gov/planning/congestion_management_process.

For a variety of resources and studies that support integrating TDM and operational strategies into the transportation 

planning process and resulting transportation plans and programs, see

http://www.planning.dot.gov/focus_congestion.asp.
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Transportation Equity

Transportation equity refers to the way in which the needs of all transportation system users, in particular the needs 

of those traditionally underserved by existing transportation systems, such as low-income and minority households, 

older adults, and individuals with disabilities, are reflected in the transportation planning and decisionmaking process 

and its services and products. Transportation equity means that transportation decisions deliver equitable benefits to 

a variety of users and that any associated burdens are avoided, minimized, or mitigated so as not to 

disproportionately impact disadvantaged populations. 

USDOT and modal administration regulations and guidance outline specific program requirements as well as best 

practices for achieving more equitable outcomes.

Considering equity early and often through methods such as public participation and data collection and analysis 

improves the planning process’s ability to adequately respond to the needs of the community it serves. It may also 

improve project delivery by preventing costly and time-consuming delays that could arise from previously 

unrecognized conflicts as projects move from planning into implementation.

What is Title VI of the Civil Rights Act of 1964?

Title VI, 42 U.S.C. 2000d et seq., was enacted as part of the landmark Civil Rights Act of 1964. Federal regulations 

FHWA (23 CFR part 200) and FTA (49 CFR part 21) state that “...no person in the United States shall, on the 

grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be otherwise 

subjected to discrimination under any program or activity for which the recipient receives Federal assistance from the 

Department of Transportation.” 

Other nondiscrimination statutes that afford legal protection against discrimination include: 

 Section 162 (a) of the Federal-Aid Highway Act of 1973 (23 U.S.C. 324), which 

addresses discrimination based on sex;

 Section 504 of the Rehabilitation Act of 1973, which addresses disability 

discrimination; 

 The Age Discrimination Act of 1975; 

 The Civil Rights Restoration Act of 1987; and 

 The Americans with Disabilities Act of 1990.

What is Executive Order 12898?

Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and Low-Income 

Populations, directs Federal agencies to identify and address, as appropriate, disproportionately high and adverse 

human health or environmental effects, including interrelated social and economic effects, on low-income or minority 

populations resulting from its programs, policies, and activities. The Executive Order directs the U.S. DOT to take 

action for:

 Avoiding, minimizing, or mitigating disproportionately high and adverse human health 

and environmental effects, including social and economic effects, on minority and lowincome populations;

 Ensuring the full, fair, and meaningful participation in the transportation decisionmaking 

process by all potentially affected communities; and
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 Preventing the denial of, reduction in, or significant delay in the receipt of benefits by 

minority and low-income populations. 

What other executive orders affect transportation equity?

Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency (2000), outlines 

reasonable steps to ensure meaningful access to benefits, services, information, and other important portions of their 

programs and activities for individuals who are limited-English proficient (LEP). DOT’s LEP guidance provides 

extensive information as well as US DOJ’s guidelines on self-assessment, as well as other materials. 

Taken together, these requirements define an over-arching commitment to equity for Federal projects, programs, 

services, and other activities. 

What role do State DOTs, MPOs, and public transportation providers play in incorporating nondiscrimination and 

environmental justice into transportation planning? 

As the agency responsible for coordinating the transportation planning process, the State DOT or MPO must ensure 

that all segments of the population have been included in the planning process regardless of race, national origin, 

income, age, sex, or disability. State DOTs, MPOs, and public transportation providers must comply with agencyspecific Title VI requirements when developing and implementing a Title VI Program. 

Environmental justice considerations are carried out through public participation and complementary benefits and 

burdens analysis at planning and project development stages to gauge potential impacts of proposed projects on 

traditionally underserved populations. The presence of disproportionately high and adverse impacts on EJ 

populations could necessitate mitigation. The results of these analyses are then incorporated into planning products 

such as the long range plan, (S)TIP, UPWP, and PPP. 

What are the statutory, regulatory, and other authorities for nondiscrimination? 

 Title VI of the Civil Rights Act of 1964, 42 U.S.C. 2000d et. seq., states that, 

“No person in the United States shall, on the ground of race, color, or national 

origin, be excluded from participation in, be denied the benefits of, or be 

subjected to discrimination under any program or activity receiving Federal

financial assistance.” 

 FHWA Title VI Program and Related Statutes, 23 CFR Part 200 provides 

guidelines for implementing FHWA’s Title VI compliance program under Title 

VI of the Civil Rights Act of 1964 and related civil rights laws and regulations.

 FTA Title VI Circular 4702.1B, published on October 1, 2012, provides 

recipients of FTA financial assistance with guidance and instructions necessary 

to carry out DOT Title VI regulations (49 CFR part 21) and to integrate into 

their programs and activities considerations expressed in the Department’s 

Policy Guidance Concerning Recipients’ Responsibilities to Limited English 

Proficient Persons. It is derived by the authority outlined in: Title VI of the Civil 

Rights Act of 1964; Federal Transit Laws, Title 49, U.S.C., Chapter 53; 49 CFR 

1.51; 49 CFR part 21; and 28 CFR 42.401 et seq.

 The Civil Rights Restoration Act of 1987 clarifies the original intent of 

Congress, with respect to Title VI and other nondiscrimination requirements 
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(for example, the Age Discrimination Act of 1975, Section 504 of the 

Rehabilitation Act of 1973, and the Federal-Aid Highway Act of 1973 

prohibiting discrimination on the basis of sex) by restoring the broad, 

institutional-wide scope and coverage of these nondiscrimination statutes and 

requirements to include all programs and activities of the recipient of Federal

funding.

 The National Environmental Policy Act (NEPA) and 23 U.S.C. 109(h)

require agencies to consider social, economic, and environmental 

consequences when contemplating any action that has Federal support. 

 Executive Order 12898, Federal Actions to Address Environmental 

Justice in Minority Populations and Low-Income Populations, directs 

Federal agencies to identify and address, as appropriate, disproportionately 

high and adverse human health or environmental effects on low-income or 

minority populations resulting from its programs, policies, and activities.

USDOT issued an order on environmental justice, DOT Order 5610.2, to 

support EO 12898. The updated USDOT order 5610.2(a) was issued on May 

2, 2012.

 FHWA Order on Environmental Justice 6640.23A, issued on June 14, 2012,

establishes policies and procedures for FHWA to use in complying with 

Executive Order 12898. It directs FHWA managers and staff to ensure that 

FHWA programs, policies, and activities for which they are responsible do not 

have a disproportionately high and adverse effect on minority populations or 

low-income populations.

 FTA Environmental Justice Circular 4703.1, issued on August 15, 2012,

provides recommendations to State DOTs, MPOs, public transportation 

providers, and other recipients of FTA funds on how to fully engage 

environmental justice populations in the public transportation decision-making 

process; how to determine whether environmental justice populations would be 

subjected to disproportionately high and adverse human health or 

environmental effects as a result of a transportation plan, project, or activity; 

and how to avoid, minimize, or mitigate these effects.

 Executive Order 13166, Improving Access to Services for Persons with 

Limited English Proficiency, requires that Federal agencies identify services 

needed for those with limited English proficiency (LEP), and develop and 

implement a system to provide those services so that LEP persons have 

meaningful access to them. It is expected that agency plans will provide for 

such meaningful access consistent with, and without unduly burdening, the 

fundamental mission of the agency. Executive Order 13166 also requires that 

Federal agencies work to ensure that recipients of Federal financial assistance 

provide meaningful access to their LEP applicants and beneficiaries. 

 The Age Discrimination Act of 1975 prohibits discrimination on the basis of 

age in programs or activities receiving Federal financial assistance.
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 The Americans with Disabilities Act of 1990 (ADA) prohibits discrimination 

and ensures equal opportunity for persons with disabilities in employment, 

State and local government services, public accommodations, commercial 

facilities, and transportation. It also mandates the establishment of 

TDD/telephone relay services.

Additional Information 

For FHWA resources on civil rights, including the ADA and Title VI, see www.fhwa.dot.gov/civilrights/. 

For FTA resources on civil rights, including the ADA and Title VI, see www.transit.dot.gov/regulations-andguidance/civil-rights-ada/civil-rightsada. 

For FHWA resources on environmental justice, see www.fhwa.dot.gov/environment/environmental_justice/.

For FTA resources on environmental justice, see www.transit.dot.gov/regulations-and-guidance/environmentalprograms/environmental-justice/environmental-justice. 
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Financial Planning and Programming 

Where do transportation funds come from? 

Governments generate transportation funds from a number of sources, including income tax, sales tax, tolls, bonds, 

and State, local, and Federal excise taxes on various fuels, State infrastructure banks (SIBs), and credit assistance 

sources. Each State decides which mix of funds is best suited to carry out particular projects. 

As described earlier, Federal funds are authorized and appropriated by Congress for the Federal-aid highway and 

Federal transit programs. Primary examples of funding programs on the highway side include the National Highway 

Performance Program (NHPP), the Highway Safety Improvement Program (HSIP), the Surface Transportation Block 

Grant Program (STBG), and the Congestion Mitigation and Air Quality Improvement (CMAQ) program. Federal 

transit funds are authorized and appropriated into various formula-based and discretionary programs. FTA 

administers the urban and non-urban area formula programs, as well as transit capital investment grants that are 

discretionary, as determined by DOT and based on a series of evaluation criteria. Each of these programs has 

specific eligibility requirements, although there is some flexibility in the legislation that allows funds to be shifted 

among selected programs. Similarly, some programs will fund operating costs on a continuing, or temporary, basis.

States and MPOs also receive Federal funds, established by formula, to support planning studies and report 

preparation for the transportation planning process, through FHWA’s State Planning and Research Funds (SPR) and 

Metropolitan Planning Funds (PL), and through FTA’s Sections 5305(d) and 5305(e) programs, which respectively 

correspond to the metropolitan planning program and Statewide planning and research program. These planning 

program funds typically make up a large portion of the State or MPO budget for carrying out planning activities and 

studies, and for developing transportation plans, STIPs, TIPs and other planning documents. Planning is also eligible 

under various capital programs, such as STBG, CMAQ, and FTA’s urban and non-urban area formula programs.

What is financial planning? 

Agencies use financial planning to take a long-range look at how transportation 

investments are funded and at the possible sources of funds. State DOTs, 

MPOs, and public transportation operators must consider funding needs over 

the 20-year period of the transportation plan and the 4-year period of TIPs and 

STIPs. In the long-range Statewide transportation plan and the MTP, MPOs 

must, and State DOTs may, develop a financial plan that identifies funding 

sources for needed investments. The financial plan must also demonstrate a 

reasonably reliable means to maintain and operate the existing and future 

Federally funded transportation system, as well as recommended new or 

improved facilities and services.

What is financial programming? 

Financial programming is different from financial planning. Financial programming involves identifying available or 

expected funds and scheduling specific projects listed in the Statewide Transportation Improvement Program (STIP), 

Metropolitan Transportation Improvement Program (TIP), and Metropolitan Long Range Transportation Plan (MTP). 

——————————————

Fiscal constraint is defined as 

a demonstration of sufficient 

funds, from Federal, state, local, 

and private sources, that will be 

used to implement proposed 

transportation system 

improvements, as well as to 

operate and maintain the entire 

system. This demonstration is 

carried out by comparing 

revenues and costs. 

——————————————
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How does financial planning support preparation of transportation plans? 

Financial planning establishes the reasonableness and credibility of the MTP. The MTP, which has a 20-year 

planning horizon, must include a financial plan that estimates how much funding will be needed to implement 

recommended improvements, as well as operate and maintain the system as a whole, over the life of the plan. This 

includes information on how the MPO reasonably expects to fund the projects included in the plan, including 

anticipated revenues from FHWA and FTA, State government, regional or local sources, the private sector, and user 

charges. An MTP must demonstrate that there is a balance between the expected revenue sources for transportation 

investments and the estimated costs of the projects and programs described in the plan. In other words, an MTP 

must be fiscally (or financially) constrained. Without financial planning and fiscal constraint, the MTP could be viewed 

as nothing more than a “wish-list” of good ideas.

Because the long-range Statewide plan, under Federal law, is defined in part as a, “strategic plan, that may, or may 

not, contain a listing of recommended projects,” a financial plan is optional, though strongly encouraged. The longrange Statewide transportation plan may include some or all of the financial elements commonly found in a typical 

metropolitan transportation financial plan, as the State DOT finds appropriate or necessary. It does not need to 

demonstrate fiscal constraint.

How do State DOTs, MPOs and public transportation operators know how much money is going to be available? 

Federal surface transportation legislation requires that MPOs, State DOTs, 

and public transit agencies cooperatively develop revenue forecasts for each 

metropolitan region. These forecasts let agencies determine how much 

funding is likely to be available for transportation projects and services in their 

respective region. Forecasts are based on trends from existing and proposed

funding sources, such as the gas tax or bond measures, as well as proceeds 

from proposed new sources of funding. Financial revenue forecasting, while 

tailored to each region, must be consistent and compatible with other revenue 

forecasting within a State.

A financial plan could assume that the amount of available Federal funding will remain constant over the first five 

years of the transportation plan, and then escalate at a rate equal to the historic or recent growth of Federal

transportation revenues. Or, the plan could assume declining revenues associated with reductions in fuel sales in 

future years. It could also assume that State gasoline taxes dedicated to transportation will be increased every five 

years by a certain amount based on past trends, or that no new taxes will be enacted, resulting in further erosion of 

the revenue base. In some cases, a decrease in the amount of certain revenues may be the prudent forecast, 

particularly those based on vehicle fuel sales. 

The transportation plan could also assume a new revenue source, such as a local sales tax in an MPO region. In 

such a case, the MPO or other proposing agency must demonstrate that there is reason to believe such a new 

source will be available, and should identify strategies to help achieve that goal. For planning purposes, it would be 

easier to accept a new revenue source in the out-years (years 15-20) of the MTP since the region would have many 

years to implement the new revenue source and several MTP updates to revisit their progress.

Similarly, financial planning requires consideration of future changes to the capital and operating costs of 

transportation projects and systems. The rate of inflation in capital costs may be tied to one or more of a series of 

construction and materials cost indices, while inflation in operations and maintenance may be assumed to be tied to 

labor wage rates. And, financial plans may include strategies for containing costs, such as deferring capital facility 

replacement or ongoing maintenance, in order to accommodate revenue limits.

——————————————

Proposed funding sources

must be reasonably expected to 

be available. For example, if 

voters approved a sales tax 

increase three times in a row, 

anticipated funding from a future 

vote may be reasonable.

——————————————
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29

Regardless of how financial assumptions and forecasts are developed, all project cost and revenue estimates in the 

financial plan must be shown in year of expenditure dollars based on reasonable growth and inflation factors applied 

to various elements to the project costs. To make it easier to determine the balance between revenues and costs, as 

well as longer-term funding and cost uncertainties, the later years of the financial plan for a MTP or a long-range 

Statewide transportation plan may consist of ranges for both revenues and project costs. As always, the high and low 

end of the ranges must be based on reasonable assumptions. To minimize risk, it is advisable to use the upper end 

of the project cost range when demonstrating fiscal constraint.

How are funds programmed? 

At least every four years, each State must submit a STIP for FHWA and FTA for 

review and approval. The STIP covers a four-year period and includes all of the 

projects planned for implementation and the funds expected from FHWA and 

FTA, including all regionally significant projects, as defined by regulation,

regardless of funding source. The STIP also incorporates, directly or by 

reference, the TIP for each MPO in the State, so that all projects included in the 

first four years of a TIP are part of the STIP. The STIP and the TIP must be 

fiscally constrained. 

Programming a project for funding in the TIP

Agencies programming a project that will seek Federal funds will follow these 

guidelines to include the project in the TIP:

 The TIP must be consistent with the relevant MTP. 

 The STIP and TIP must list new projects that will be initiated and the 

ongoing projects that will be advanced each year during the 

timeframe of the STIP and TIP. 

 The STIP and TIP must identify which combination of funding 

sources—Federal, State, local, or others—will be used for each 

project or group of projects, and must show that there will be 

sufficient funds to advance a project each year.

 In air quality non-attainment or maintenance areas, projects included 

in the first two years of a TIP must have funds—Federal and nonFederal matching funds—available or committed to the projects as 

defined in regulation. In areas that are in attainment of air quality 

standards, funding to support projects listed in the STIP and TIP 

must be reasonably expected to be available. Most projects involve 

expenditure of funds over a multi-year period, which will be indicated 

in the STIP and TIP. 

 Changes that do not add capacity may be made administratively to the TIP via 

administrative modification. These are essentially document edits that do not 

require that fiscal constraint or transportation conformity be re-determined.

 A project, or an identified phase of a project, will be included in a STIP only if it 

is reasonable to expect that full funding will be available to complete the entire 

project within the expected timeframe for project implementation.

After the TIP is approved by the MPO and the State’s governor, it is submitted to the State DOT for inclusion in the 

STIP, which is then submitted to FHWA and FTA for approval. In air quality nonattainment and maintenance areas, 

the TIP must also meet transportation conformity requirements. 

——————————————

It is common for agencies to 

revise their STIPs and TIPs. 

Many factors that can lead to 

adjustments in transportation 

project schedules and budgets, 

such as changes in engineering 

practices, environmental issues, 

contracting issues, and project 

readiness. A major revision is

called an amendment while a 

minor revision is called an 

administrative modification. If 

an MPO wants to amend a 

project in its TIP, it must also 

amend the STIP. Amendments 

require public review and 

comment, demonstration of 

fiscal constraint—except for 

long-range Statewide 

transportation plans—and a 

conformity determination for 

MTPs and TIPs in 

nonattainment and maintenance 

areas. Administrative 

modifications do not require

such actions.

——————————————
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Programming a project for funding in the STIP

Agencies programming a project that will seek Federal funds will follow this roadmap to include the project in the 

STIP:

 Through an established process, the State solicits or identifies projects from 

rural, small urban, and urbanized areas of the State. 

 In urbanized areas, the State, MPOs, and transit agencies develop a 

cooperative framework to prepare a metropolitan TIP which will be 

incorporated into the STIP.

 The State selects projects for inclusion in the STIP, in varying degrees of 

collaboration with other agencies, based on law and adopted procedures and 

criteria. 

 The STIP must demonstrate fiscal constraint.

 FHWA and FTA must approve the STIP before STIP projects can proceed to 

implementation.

 Amendments to the STIP can be common given the frequent changes in 

engineering practices, environmental issues, contracting issues, project 

readiness, and other factors that can require adjustments to project schedules 

and budgets.

As with the TIP, changes unrelated to capacity may be made administratively to the STIP via administrative 

modification. 

Additional Information

For an overview of the FHWA’s activities, including a guide to the agency’s programs, core business units, and 

service business units, see www.fhwa.dot.gov/programs.

For links and information about all of FTA’s funding programs and activities, see www.transit.dot.gov/funding.

For a complete list of Federal-aid transportation programs, see www.fhwa.dot.gov/Federalaid/projects.cfm.

For a complete list of FHWA discretionary programs, see www.fhwa.dot.gov/discretionary/proginfo.cfm.

For resources on financial planning and fiscal constraints, see http://www.planning.dot.gov/focus_fiscal.asp.
The Transportation Planning Process: Key Issues

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Performance-Based Planning: Programming Measures and Targets

What are performance measures? 

In accordance with provisions enacted in MAP-21 and continued in the FAST Act—the current legislation that funds 

national transportation efforts— performance measures are used to indicate how well the transportation system is 

meeting agency goals and the public’s expectations. Performance measures should be closely tied to the 

development of agency goals and objectives. Many States and metropolitan areas use performance measures to 

monitor their achievement of specific regional access and mobility goals, such as accessibility to key regional 

population, employment, cultural, and recreational centers, the mobility of disadvantaged populations, levels of air 

quality, and the health of the economy. 

Performance measures are central to implementing a performance-based planning process that guides 

decisionmaking. How performance is defined and measured can significantly affect the types of projects and 

strategies that are advanced by decisionmakers. Moreover, performance results inform agencies whether the types 

of projects and strategies they are implementing are in fact helping them achieve their goals. Performance measures 

aim to answer questions about whether the performance of the transportation system (or the economy, improving air 

quality, and so on) is getting better or worse over time. Performance measures also aim to demonstrate whether 

transportation investments are correlated or linked to stated goals and whether they produce desired outcomes.

Performance-based planning refers to specific performance measures and 

targets that are introduced to existing transportation planning and 

programming processes. Transportation agencies are increasingly applying

performance management—a strategic, structured approach that 

emphasizes performance data to reach decisions that fulfills performance 

outcomes. Introducing a performance management approach to planning is 

intended to improve project and program delivery, inform investment 

decisionmaking, focus staff on leadership priorities, and provide greater 

transparency and accountability to the public.

Legislation emphasizes performance management within the Federal-aid 

highway program and transit programs, and requires that State, metropolitan, 

and non-metropolitan transportation planners use performance-based 

approaches. This approach is often called performance-based planning and 

programming (PBPP). PBPP describes performance management that is 

applied to transportation agencies’ planning and programming for the 

multimodal transportation system. Transportation agencies, other agencies, stakeholders, and the public use the 

range of activities that PBPP covers as part of a 3-C—cooperative, continuing, and comprehensive—process.

What roles do State DOTs and MPOs have in defining and using performance measures? 

As noted previously, States and MPOs work with their planning partners through Statewide, metropolitan, and 

nonmetropolitan transportation planning processes to set targets for the national performance measures that USDOT 

is establishing. For other measures, through their respective transportation planning processes, State DOTs and 

MPOs can each take a leadership role in creating performance measures that provide information critical to regional 

and local decisionmakers. 

MPO leadership can begin by addressing the performance measures requirements set as a result of Federal

legislation. MPO leadership will then identify additional measures by interacting with stakeholders and the public to

——————————————

The PBPP process helps 

agencies develop LRTPs, other 

plans and processes (including 

those required by the Federal 

Government), and programming 

documents, including STIPs and 

TIPs.

With PBPP, decisions are made 

based on data and evidence so 

that transportation investments 

remain realistic and achievable.

——————————————
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identify community visions, and translate those visions into goals and measurable objectives. Finally, the MPO will 

set performance targets to track progress toward those goals. 

Because performance measures are derived from, and are strongly influenced by, the goals and objectives of the 

planning process, their development and ongoing support must be an integral part of ongoing planning activities. 

Development of transportation system performance measures and performance targets should be coordinated with,

and informed by, a public involvement program.

Figure 5 below outlines the framework of planning stages for performance-based planning and programming (PBPP). 

This diagram shows how performance measures, goals, and targets can drive the planning process and ensure it is 

aligned with national and community-based goals and objectives.

Figure 5. The framework for PBPP.

The following elements form the core of PBPP:

Strategic Direction: Where do we want to go? 

In the transportation planning process, the public and other stakeholders articulate a strategic direction that is based 

on a shared vision for the future.

 Goals and Objectives stem from a State or region’s vision and goals, and they 

address key desired outcomes. Agencies create objectives—which are specific, 

measurable statements—that shape planning priorities.
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 Performance Measures support objectives and are the basis for comparing 

alternative improvement strategies, investment and policy strategies, and 

tracking results.

Planning Analysis: How are we going to get there?

Driven by data on performance, along with public involvement and policy considerations, agencies conduct analyses 

that inform investment and policy priorities.

 Identify Trends and Targets – Preferred trends—a general direction of where 

results should go—or targets—specific performance levels to be met within a 

timeframe—are established for each measure. Trends and targets let agencies 

compare alternative strategies. This step relies on baseline data from past 

trends, tools to forecast future performance, and information on possible 

strategies, available funding, and other constraints. 

 Identify Strategies and Analyze Alternatives –Scenario analysis may also be 

used to compare alternative strategies and funding levels, or to explore funding 

levels required to achieve certain performance goals. 

 Develop Investment Priorities – To reach investment targets, agencies create 

long-range transportation plans (LRTPs) that consider policy priorities and 

tradeoffs.

Programming: What will it take?

Programming involves selecting specific investments to include in an agency capital plan, a TIP, or a STIP. In a 

PBPP approach, agencies make programming decisions based on whether those decisions support performance 

targets or contribute to desired trends, and whether they account for a range of factors.

 Investment Plan – In order to connect the LRTP, which has an outlook of at 

least 20 years, to projects in a TIP/STIP, some areas develop a mid-range 

investment plan that, for example, may cover 10 years.

 Resource Allocation / Program of Projects – Project prioritization or selection 

criteria are used to identify specific investments or strategies for a capital plan or 

TIP/STIP. Projects included in the TIP/STIP are selected based on performance, 

and whether they show a clear link to meeting performance objectives.

Implementation and Evaluation: How did we do?

PBPP is founded on evidence that the process leads agencies to their goals. The following evaluation activities 

happen throughout implementation and when needed throughout performance-based planning.

 Monitoring – Gathering information on actual conditions.

 Evaluation – Conducting analysis to understand whether implemented 

strategies have been effective. 

 Reporting – Communicating information about system performance and whether

policymakers, stakeholders, and the public think plans and programs are 

effective.

In a PBPP approach, each step in the process is clearly connected to the next so that goals translate into specific 

measures. Those measures then become the basis for selecting and analyzing strategies for the long range plan. 

Ultimately, project selection decisions are influenced by expected performance returns. Keeping the next step in the 

process in mind is critical to each step along the way.
The Transportation Planning Process: Key Issues

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Public involvement and data are critical throughout the process. The public’s vision for their transportation system 

plays a central role in determining goals, performance measures, and investment priorities. Agencies also decide on 

priorities using data and information on how potential strategies performed in the past, are performing now, and how 

they are projected to perform. 

Like all planning, the PBPP process is cyclical. As planning cycles evolve, goals and objectives may be adjusted and 

performance measures and targets may be refined. Making adjustments during PBPP ensures that agencies focus 

on the most important priorities and that those priorities remain achievable. 

The following examples are the kinds of additional performance measures States and MPOs may wish to include in 

their planning processes, in addition to those that are Federally required:

 Accessibility 

Accessibility may include the percent of the population within X minutes of Y

percent of employment sites, whether special populations, such as the elderly,

are able to use transportation, whether transportation services provide access 

for underserved populations to employment sites, and whether services are 

ADA compliant. 

 Mobility

Mobility may include average travel time from origin to destination, change in 

average travel time for specific origin-destination points, average trip length, 

the percentage of trips per mode, time lost to congestion, transfer time 

between modes, and the percent of on-time transit performance. 

 Economic development 

Economic development may include jobs created and new housing starts in an 

area as a result of new transportation facilities, new businesses opening along 

major routes, percent of the region’s unemployed who cite lack of 

transportation as the principal barrier to employment, and the economic cost of 

time lost to congestion. 

 Quality of life

Quality of life may include environmental and resource depletion or 

consumption, tons of pollution generated, fuel consumption per vehicle mile 

traveled, decrease in wetlands, and changes in air quality and land use. 

 Safety

Safety data may include the number of traffic fatalities and serious injuries or 

economic costs of crashes. 

Additional Information

For the FHWA PBPP Webpage, see www.fhwa.dot.gov/planning/performance_based_planning/.

For the FTA PBPP Webpage, see www.transit.dot.gov/performance-based-planning. 

Planning Data and Tools: Models, GIS, and Visualization 

Better planning tools are increasingly available to help MPOs understand the potential impact their decisions have on 

the transportation network and the natural and human environment, as well as the range of possible impacts 

associated with alternative land development and transportation improvement options. 
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There are a number of decision-support tools available to help communities consider these variables and address 

land use, community development, economic development, environmental protection, and transportation challenges. 

Examples of planning tools include transportation models, land use models, Geographic Information Systems (GIS), 

GIS-based decision-support tools, scenario planning models, and remote sensing. 

What are transportation models? 

Transportation models are simulations of the real world that are used to show how the transportation system is 

affected by changes in a metropolitan area. Impacts might include how a new road or transit line would be affected 

by increases in population or employment. Transportation models may be used to test the travel impacts of changes 

in land use, economic development, fuel and parking costs, and new highway or transit system capacity. 

The following characteristics are the three keys to any model used for transportation analysis:

 Key base, or current-year characteristics of travelers and the transportation 

system, described in terms of quantifiable variables—for example, the number 

of highway travel lanes, transit service headways, household size and income, 

number of vehicles per household, and employment patterns by type and job 

classification. These data are collected through a variety of sources, including 

roadway inventories, the Census, and the American Community Survey.

 The mathematical relationship between key base variables and how 

individuals travel—for example, the more automobiles there are per household, 

the greater the number of automobile trips there will be per household. This 

relationship is based on data collected through the National Household Travel 

Survey or similar sources.

 Future-year forecasts of key traveler and transportation system

characteristics. This relationship is the same for all individuals and is constant 

over time. Future year forecasts should reflect consistent and reasonable 

assumptions about future growth and development.

Challenges to environmental documents, such as the Environmental Impact Statement, or conformity findings are 

often based on deficiencies in one of these areas.

What is a Travel Forecasting Model?

A Travel Forecasting Model (TFM) is a series of analytical techniques—see Figure 6 below— that agencies use to 

predict future demand for transportation facilities and services. Planners, decisionmakers, and the public use these 

predictions. A TFM lets agencies estimate how policies and programs will affect behavior and travel demand. 
The Transportation Planning Process: Key Issues

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Figure 6. Travel Forecasting Model analytical techniques.

After an understanding has been established regarding the land use, population, and employment in a study area, 

transportation professionals will create a TFM using the following modeling steps: 

Figure 7. The Four-Step Travel Modeling Process.
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These four steps are the basis for assessing the performance of the transportation system. 

 Trip generation 

During the trip generation step agencies estimate the number of trips 

generated in a small geographic area, called a zone, or at a particular location, 

that end in another zone or particular location, based on the assumed 

relationship among socioeconomic factors, land use characteristics, and the 

number of trips. 

 Trip distribution

During the trip distribution step agencies estimate the number of trips that 

originate in every zone in the study area, with destinations to every other zone. 

 Mode choice

During the mode choice step agencies estimate the number of trips predicted 

between each origin and destination, the number of trips made by each type of 

mode that is available for that trip. This step produces results such as, “X

percent are likely to drive alone, Y percent are likely to take transit, and Z

percent are likely to ride-share.”

 Trip assignment

During the trip assignment step, agencies estimate the number of trips via a 

particular mode that will take specific paths through a road or transit network. 

The end result, when all trips are assigned to a network, is an estimate of the 

total number of trips that will use each link in the network. When compared to 

the capacity of each link, planners can forecast the level of congestion that will 

occur at that location. 

What other types of models are there? 

The four-step model described above are commonly used for trip-based models. Several metropolitan areas, such as 

New York, San Francisco, and Columbus, Ohio, have implemented advanced-tour or activity-based models, which 

model travel differently from trip-based models. Tour-based models, for instance, keep track of travel activity 

throughout the day and can assemble multiple trip legs into tours, called chained trips. For example, a parent may 

leave work, pick up the children at day care, and stop at the grocery store on the way home. These separate trips 

would be linked together into a tour and, when taken as a whole, the modeled travel behavior of this parent may be 

more consistent than if all of these trips were considered separately.

Land use models are used to forecast future development patterns, as well as the potential that proposed 

transportation improvements will induce new or accelerated land development in particular areas. The output of land 

use models can be used to evaluate the reasonableness of future forecasts or to provide input to the trip generation 

step of the travel forecasting model.

Agencies use air quality emissions models, such as EPA’s Motor Vehicle Emissions Simulator, to project the tons of 

key pollutants emitted from vehicular trips. 

What should decisionmakers consider when reviewing model results? 

Results of a model are only estimates or indicators; they cannot provide a definitive picture of what will happen in the 

future. Much like economic projections, transportation forecasts are greatly affected by the long-term economic 

health and attractiveness of a region, by population changes, and by the individual behavior of each person using the 

transportation system. Planning decisions should be based on sound analytic methods and quality data applied in an 

objective and rational planning process.
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Model results are only as good as the data that go into the model. MPOs must use the most current socioeconomic 

and census data available, especially if a region is growing rapidly. MPOs should make every effort to explain the 

information and assumptions that went into creating the model in plain, understandable terms. Finally, it is important 

that the models are periodically validated against observed conditions. State, MPO, and transit operators should 

have a schedule to re-survey the usage and performance patterns of their systems using, for example, transit 

onboard and roadside origin-destination surveys.

What are visualization techniques, and how are they used in transportation planning? 

Data visualization is an evolving field. Agencies that apply data visualizations can improve how the public and elected 

officials understand transportation planning issues and promote more informed decisionmaking.

Visualizations should inform the public, elected and appointed officials, and other stakeholders in a clear and easily 

accessible format that promotes understanding of existing or proposed transportation plans, policies, and programs.

There are a broad range of visualization tools, including maps, pictures, and displays.

Visualizations, especially map-based visualizations, can help organize data and make it easier to analyze information 

on a technical level. Some visualizations are more schematic in their representations of data patterns, or they blend 

schematic representations with map-based formats. Much of the data collected for transportation planning is 

geographically-based and tied to an area, corridor, or a spot location, which makes mapping especially important for 

practitioners at an MPO and outside partner agencies. 

Mapping can be done on paper, through Geographic Information System (GIS) software, or through an online 

mapping service, depending on the data and an MPO’s capabilities. Graphs and photographs can also be effective in 

helping practitioners analyze and apply the large volumes of data that are often collected or gathered as part of the 

transportation planning process. If kept relatively simple and easy to read, maps of technical data with concise 

annotations can also be effective for reaching the general public.

Visualization techniques can be used throughout the transportation project process, including in developing planning 

documents, on websites, and at public outreach and information sessions. Through visual imagery, the complex 

nature of proposed transportation plans, policies and programs can be portrayed at appropriate scales and from 

different points of view, providing the public and decisionmakers with a clear sense of the proposals and their likely 

impacts on the human and natural environment. 

Visualization techniques are also increasingly used to improve decisionmaking for context-sensitive solutions. 

Context-sensitive solutions involve proposing improvements that harmonize with local settings, and visualizations can 

superimpose prospective transportation structures, strategies, or services on the existing environment. (See Land 

Use for more on context-sensitive solutions.)

What is a Geographic Information System and how can State DOTs, MPOs and public transportation providers use GIS 

during transportation planning?

A GIS is a collection of computer software, hardware, and data, used to store, manipulate, analyze, and present 

geographically referenced information. GIS can be used for analysis and as the basis for many of the visualization 

techniques described above. In transportation planning, GIS is typically used to compile and overlay multiple sets of 

data linked to particular geographic locations. With GIS transportation professionals can holistically and efficiently 

view multiple items of interest about a particular geographic area including transportation facilities, operations, 

demographics, environmental and cultural resources, public lands, and others. As an aid to environmental analysis, 

GIS also is used to identify sensitive areas by comparing key features of the human and natural environment.
The Transportation Planning Process: Key Issues

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Additional Information

For the FHWA GIS in Transportation Website, see www.gis.fhwa.dot.gov.

For the National Highway Planning Network geospatial network database, see 

www.fhwa.dot.gov/planning/processes/tools/nhpn.

Public Involvement

Who is the public? 

The public includes any individual or group who resides, is employed, has an 

interest, or does business in an area potentially affected by transportation 

decisions. It is also important for all private and public providers of 

transportation services, including, but not limited to, the trucking and rail 

freight industries, the intercity rail passenger industry, taxicab operators, and 

all transit and paratransit service operators to have an opportunity to 

participate. Finally, extra efforts may be needed to engage persons 

traditionally underserved by existing transportation systems, such as lowincome populations, minority populations, the disabled, and the elderly (see

Equity). 

Federal, State, and local agencies that have an interest in transportation 

issues play a particularly important role in developing transportation projects. 

Many of those agencies have a statutory responsibility to review 

environmental documents or issue permits for transportation projects. FHWA 

and FTA encourage MPOs and State DOTs to aggressively pursue improved 

communication and collaboration with these partners, beginning early in the 

transportation planning process, to identify and address their concerns. 

What is the role of public involvement in developing transportation policies, programs, and projects? 

Public involvement ensures that transportation decisions consider public needs and preferences. The fundamental 

objective of public involvement programs is to ensure that the concerns and issues of people with a stake in 

transportation decisions are identified and addressed. Early and ongoing public involvement brings diverse 

viewpoints into the decisionmaking process. Public involvement lets agencies make better-informed decisions and 

builds mutual understanding and trust between agencies and the public they serve. Successful public participation is 

a continuous process that obtains input from and informs the public. 

What role do MPOs have in implementing public involvement processes? 

MPOs are responsible for actively involving all affected parties in an open, cooperative, and collaborative process 

that provides meaningful opportunities to influence transportation decisions. Decisionmakers must consider fully the 

social, economic, and environmental consequences of their actions, and assure the public that transportation 

programs support adopted land use plans and community values. 

MPOs must consult with interested parties to develop and document a public participation plan that details strategies 

for incorporating visualization techniques, using electronic media, holding public meetings, and responding to public

input, among other things. MPOs also must evaluate the effectiveness of the public participation plan in informing 

and engaging the public and stakeholder communities.

——————————————

Paratransit includes a variety of 

flexibly scheduled and routed 

transportation services that use 

low-capacity vehicles, such as 

vans. These vehicles operate 

within normal urban transit 

corridors or rural areas. Typical 

paratransit patrons include 

people who are underserved or 

not served at all by standard 

mass transit. Patrons often 

include the elderly and people 

with disabilities. 

——————————————
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What role do State DOTs have in the public participation process?

Similar to the role of MPOs in metropolitan areas, State DOTs must have a documented process for the Statewide 

engagement of the public and stakeholder interests outside of metropolitan areas. Where appropriate, States may 

carry out their public involvement processes through, or in coordination with, Regional Transportation Planning 

Organizations. State DOTs should coordinate with MPOs to achieve effective public involvement across metropolitan, 

Statewide, and nonmetropolitan transportation planning processes, as well as for project-level planning for State 

projects in metropolitan areas. 

What is the role of transit operators in the public participation process?

Transit operators have a dual role in public involvement. They need to work closely with MPOs to advocate for 

system improvement needs while representing the interests of their traveling customers. As appropriate, and with 

proper public notice, transit operators may rely on an MPO’s public involvement process to complement or satisfy 

their own public meeting requirements associated with changes in service or fare structure.

What are the characteristics of an effective public participation process? 

A well-informed public and stakeholder base has the best chance to contribute meaningful input into transportation 

decisions through a broad array of involvement opportunities at all stages of decisionmaking. Useful elements of an 

effective public involvement program include: 

 A clearly defined purpose and objectives for initiating a public dialogue on 

transportation issues.

 Identifying the public and other stakeholder groups that will be affected by the 

plans and programs being developed.

 Identifying techniques for engaging the public in the planning process.

 A concerted effort to identify how future visions and goals of the community will 

affect transportation.

 Effective procedures for notifying affected groups of meetings, project 

progress, and other benchmarks.

 Methods and measures for evaluating whether the public involvement program

is effective.

 Education and assistance techniques that lead to an accurate and full public 

understanding of transportation issues.

 Follow through by the MPO to demonstrate that decisionmakers seriously 

considered public input.

 Feedback from the public and stakeholders on whether the public involvement 

process is effective. 

Additional Information

For MPOs seeking guidance on involving the public, see www.fhwa.dot.gov/planning/public_involvement/.

For the State DOT Public Involvement Reference Tool, see 

www.fhwa.dot.gov/planning/public_involvement/reference_tool/index.cfm.

For the Transportation Research Board’s Public Involvement Committee website, see

sites.google.com/site/trbcommitteeada60/.
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For public engagement resources from the FHWA/FTA Transportation Planning Capacity Building Program (TPCB), 

see planning.dot.gov/focus_publicEngage.asp.

For TPCB Peer program reports on current practices and issues in public involvement, see

planning.dot.gov/peer_reports.aspx.

Safety

Why is safety an important component of transportation planning? 

Over the past three decades, transportation fatality rates have declined, due in large part to safer cars, tougher police 

enforcement, and improved roadway safety through engineering, enforcement, education, and emergency medical 

service. 

But there is still work to do. More than 35,000 people lost their lives and an estimated 2.4 million people were injured 

on the Nation’s roadways in 2015. In addition to injuries and lives lost, there are large economic costs associated 

with crashes, incurred by those directly involved, by travelers affected by delays caused by crashes, and by the 

greater community which experiences lost productivity and the need for emergency and medical services. 

Maintaining high performance in transportation safety requires seamless coordination of activities and funding among 

multiple partners. This begins with a data-driven, coordinated, and system-wide transportation planning process that 

identifies safety priorities and enables States to make strategic safety investment decisions.

In addition, MAP-21 identified safety on both highway and transit facilities as a national goal area, requiring the 

development of safety-related performance measures, targets, and plans. States must prepare Strategic Highway 

Safety Plans and a State Highway Safety Improvement Program, while public transportation operators must prepare 

Public Transportation Agency Safety Plans, all which are intended to support safety-related performance targets that 

align with the safety performance measures prepared by USDOT. As with the performance topics associated with the 

other national goal areas, States and MPOs are responsible for developing performance targets for use in the

Statewide and nonmetropolitan and metropolitan transportation planning processes, respectively. 

What roles do State DOTs and MPOs have in transportation safety? 

Transportation planners incorporate safety considerations by identifying high-incident locations and the most effective 

strategies for reducing crashes at these locations. These strategies typically fall into the areas of engineering, 

enforcement, education, and emergency medical services. Crash data helps identify which focus areas should 

receive funding priority for improving safety in the region. 

As noted above, a key role of State DOTs and MPO planners is to coordinate any planned safety-related 

transportation efforts with their safety partners. Much of this coordination occurs during the State Strategic Highway 

Safety Plan (SHSP) process, which is led by the State DOT in a cooperative process with local, State, Federal, tribal, 

and private-sector safety stakeholders. Other safety-related transportation planning efforts include the Public 

Transportation Agency Safety Plan and the State Safety Oversight Program. Input from these partners improves the 

safety elements of planning processes and ensures strong collaboration. 

Finally, many State DOTs and local transportation agencies have developed safety data management systems that 

monitor accident locations in their jurisdictions. MPOs can participate in data collection for these systems and can 

help coordinate the development of regional safety plans that address regional safety concerns.
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What are the planning requirements for incorporating safety into transportation planning? 

Improving the safety of the transportation system is one of the planning factors 

that Federal legislation explicitly requires to be considered in the 

transportation planning process. Short and long-range plans should have a 

safety element as part of the plan. When projects and strategies are evaluated 

for possible inclusion in the MTP and the TIP, safety should be a factor in their 

selection and prioritization criteria. 

Federal law has identified that data-driven decisionmaking should underpin 

safety performance measures for highway and public transportation systems.

USDOT prepares performance measures for safety on highway and public 

transportation systems. Then, MPOs and States make concerted efforts to 

identify and meet appropriate targets and implement their plans and programs. 

In selecting these safety-related performance targets, MPOs must coordinate 

with States and transit operators to ensure consistency across metropolitan 

and nonmetropolitan areas.

MPOs and States should engage the public and stakeholder communities 

when setting safety performance targets, using their public participation plans,

and they should document the public involvement processes. In their UPWPs,

MPOs should program the analytical work involved in collecting and analyzing 

data associated with the adopted measures, as well as tracking progress 

toward achieving the targets. Similarly, States should identify supportive work 

activities for inclusion in the State Planning Work Programs. 

Transportation planners, whether at the State or regional level, address safety 

as a key consideration in the transportation planning and programming 

process. Federal transportation planning requirements provide for 

consideration and implementation of projects, strategies and services that will 

increase the safety of the transportation system for motorized and 

nonmotorized users.

State DOTs are responsible for developing a Strategic Highway Safety Plan that focuses and coordinates efforts on 

the key safety issues at the State level. MPOs contribute to the development of the SHSP and also undertake efforts 

to identify and address safety issues in their region. Some of these regional safety issues may be distinct from the 

areas emphasized in the SHSP. Coordination and collaboration among agencies to bring together expertise and 

resources to address safety issues is a productive strategy for improving safety.

The transportation planning process typically includes goals, objectives and performance measures related to safety 

issues. Based on safety data analyses, planners collaborating with safety professionals and the public can identify 

goals and strategies for safety improvement toward reducing motor vehicle fatalities and serious injuries due to 

vehicle crashes, including efforts related to transit, pedestrian and bicycle safety. Safety data and analysis methods 

are fundamental tools for advancing safety improvements.

In addition to using safety data to identify issues and needs, planners use crash data to evaluate alternative 

strategies, or expected safety benefits of proposed improvements. These impacts are evaluated along with other 

impacts, such as congestion relief and costs, as projects are selected for the long range transportation plan and the 

transportation improvement program. Establishing safety as an important factor in decisionmaking leads to 

improvements in safety.

——————————————

A Strategic Highway Safety 

Plan (SHSP) is a major 

component and requirement of 

the FHWA Highway Safety 

Improvement Program (HSIP). 

State DOTs must develop, 

implement, and evaluate an 

SHSP in a cooperative process 

with local, State, Federal, Tribal

and private-sector stakeholders. 

An SHSP determines the State’s 

critical highway safety problems 

and provides a comprehensive 

and multidisciplinary framework 

for addressing safety on all 

public roadways. It also guides 

investment decisions toward 

strategies and countermeasures 

that have the most potential to 

save lives. State DOTs and 

MPOs should integrate the 

goals, objectives, performance 

measures, targets, and 

strategies from the SHSP into 

their respective transportation 

planning processes.

——————————————
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Safety improvement can be monitored by tracking key measures, such as total motor vehicle fatalities, serious 

injuries, pedestrian fatalities, and other key indicators that are meaningful to quality of life in a community.

Additional Information

For information from the FHWA Office of Safety on ways to improve roadway safety, see safety.fhwa.dot.gov.

For information from FTA on safety and security of public transportation systems, see 

www.transit.dot.gov/regulations-and-guidance/safety/transit-system-safety.

For Bureau of Transportation Statistics (BTS) annual statistical reports on crash statistics, see www.bts.gov.

For the FHWA Office of Planning website on transportation safety planning, see

www.fhwa.dot.gov/planning/transportation_safety_planning.

Security

What is transportation security?

Transportation security can be defined as freedom from harm, tampering, natural disasters, and extreme weather 

events that would affect motorized and nonmotorized travelers. Security goes beyond safety to include planning that

prevents, manages, or responds to threats to a region and its transportation system and users.

Why should States and MPOs consider security in the transportation planning process?

The events of September 11, 2001, Hurricanes Katrina and Rita, and Superstorm Sandy have increased awareness 

of man-made and natural security concerns among transportation professionals and the public. The vulnerability of 

the transportation system and its role in emergency evacuations are paramount to ensuring public safety. Federal law 

requires that transportation planners consider security during transportation planning and programming.

What role do State DOTs and MPOs have in transportation security?

State DOTs and MPOs, sometimes in conjunction with Regional Transportation Planning Organizations, are often in 

a unique position to foster coordination between agencies representing different transportation modes, other 

government agencies, and groups focused on security. State DOTs and regional transportation agencies have 

created homeland security plans for emergency evacuation, contingency measures, and communications 

interoperability. Additionally, State DOTs and MPOs can support programs and fund projects that enhance secure 

travel for all transportation system users. As the entities that plan and select projects for implementation, State DOTs

and MPOs can ensure that the criteria used to select and advance projects recognizes, highlights, and promotes 

projects that address transportation security.

How do agency staff demonstrate that security was considered during transportation planning?

Consideration of security in the planning process may be documented in key planning documents such as the 

UPWP, the State Planning and Research Program, the long-range transportation plans of States and MPOs, the 

STIP, TIP, or part of a stand-alone study. Federally-funded or regionally significant transportation security should be 

included in the metropolitan long-range plan, STIP or TIP. Other activities might include documenting conversations 

and coordination with groups focused on security or including transportation security as a project selection criterion.
The Transportation Planning Process: Key Issues

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Additional Information

For FHWA’s Emergency Transportation Operations website, see ops.fhwa.dot.gov/eto_tim_pse/index.htm.

For FTA resources on public safety and security, see www.transit.dot.gov/regulations-and-guidance/safety/publicsafety. 

Transportation Asset Management 

What is transportation asset management? 

Asset management is a strategic and systematic process of operating, maintaining, and improving physical assets. 

The asset management process is based on engineering and economic analyses performed with quality information. 

Agencies use asset management to identify a structured sequence of maintenance, preservation, repair, 

rehabilitation, and replacement actions that achieve and sustain a desired state of good repair over the lifecycle of 

the assets at minimum practicable cost.

A high-performing asset management program incorporates detailed asset inventories, operation and maintenance 

tasks, and long-range financial planning. At its fullest, asset management also applies performance principles to the 

long-term cost-effective preservation of physical assets, including pavements, bridges, tunnels, transit vehicles, rail

facilities, and roadside features. Asset management can enhance the value of these physical infrastructure at the 

lowest reasonable lifecycle cost while providing service levels needed to meet mobility, safety, environmental and 

economic objectives.

What is the role of the MPO in transportation asset management? 

Each State is required to develop a risk-based asset management plan for the National Highway System (NHS) to 

improve or preserve the condition of the assets and the performance of the system. In situations where NHS routes 

are owned and managed by an MPO, State DOTs should coordinate with MPOs to develop an asset management 

plan that improves or preserves the condition of the assets and the performance of the system. A transportation 

asset management plan for the National Highway System will include:

 Pavement and bridge inventory and conditions on the NHS.

 Objectives and measures.

 Performance gap identification.

 Lifecycle cost and risk management analysis.

 Financial plans.

 Investment strategies and prioritization.

Additionally, providers of public transportation are required to develop a Transit Asset Management plan that 

includes, at a minimum, capital asset inventories and condition assessments, decision support tools, and investment 

prioritization. TAM plans developed by transit providers must be coordinated with States and MPOs. MPOs should 

also know the content of a transportation asset management plan and consider this information throughout the 

planning process.

Transportation asset management has been a critical yet underrepresented element of the transportation planning 

process. But the field of asset management has grown based on the simple and powerful premise that agencies 

should consider the whole life-cycle cost of managing their assets. 
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In addition to the objectives listed above, MPOs should account for the following when developing their transportation 

plans: 

 That their MTP is comprehensive and incorporates the transportation assets of 

all modes.

 That the transportation network is managed to meet both current and future 

demands.

 That expenditures are optimized for value.

 That the value of their assets are sustained over the long-term. 

Generally, an MPO can achieve a successful transportation asset management program by managing public 

investment through the transportation plan and TIP, defining performance measures for assets through public 

involvement, encouraging or sponsoring data collection, serving as a repository for asset data, and promoting 

standard data collection and technology applications. MPOs can also educate the public and decisionmakers and 

work cooperatively with stakeholders across transportation modes.

Typically, the MPO does not, on its own, develop or operate a transportation asset management decisionmaking 

framework; this is usually the responsibility of State and local operating agencies. 

Pavement, bridge, and public transportation assets are among the infrastructure elements for which performance 

measures are prepared by USDOT. Subsequently, MPOs and States identify appropriate target values for those 

measures to set achievement goals for their plans and programs. MPOs should use their public participation plans to 

engage the public and stakeholder communities in setting performance targets. The UPWPs that MPOs create 

should include the analytical work involved in collecting and analyzing data associated with the adopted measures, 

as well as methods to track progress toward achieving the targets.

How does the Transportation Asset Management process inform decisionmakers?

Transportation Asset Management focuses on State DOTs establishing and following a set of processes to identify 

the investment strategies included in the transportation asset management plan. These processes relate to 

performing analyses at the program level, including performance gap analysis, life-cycle cost analysis, and risk 

analysis. All State DOTs can use transportation asset management to undertake a strategic and systematic process 

of effectively operating, maintaining, upgrading, and expanding physical assets throughout their life cycles in order to 

achieve and sustain a desired state of good repair. The goal is better decisionmaking that is based upon quality

information and well-defined objectives, and considers risks to the assets and system performance as part of the 

decisionmaking process.

What questions should transportation decisionmakers ask as part of the transportation asset management process? 

Typically, transportation decisionmakers should ask the following questions as part of the transportation asset 

management process: 

 What is the current state of my assets? 

What do I own? 

Where is it? 

What condition is it in? 

What is its remaining useful life? 

What is its remaining economic value? 

 What is my required level of service/ performance level? 
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What is the demand for services by stakeholders? 

Are there regulatory requirements? 

What is my actual performance? 

 Which assets are critical to sustained performance? 

How does it fail? How can it fail? 

What is the likelihood of failure? 

What does it cost to repair? 

What are the consequences of failure? 

 What are my best Operations and Maintenance and Capital Improvement 

investment strategies? 

What alternative management options exist? 

Which are the most feasible for my organization? 

 What is my best long-term funding strategy? 

Additional Information

For more about the mission of FHWA’s Office of Asset Management and other useful links, see

www.fhwa.dot.gov/asset.

For more information on FTA State of Good Repair & Asset Management and other useful links, see

www.transit.dot.gov/regulations-and-guidance/asset-management/state-good-repair.

Transportation System Management and Operations 

What is transportation system management and operations?

Agencies use a transportation system management and operations (TSM&O) program to analyze regional 

transportation as an interconnected set of services and systems and to improve traveler and system performance 

through better management and use of the multimodal transportation network. 

TSM&O is an integrated program that gives agencies the tools to optimize the 

performance of existing infrastructure through the implementation of 

multimodal, intermodal and often cross-jurisdictional systems, services and 

projects designed to preserve capacity and improve security, safety, and 

reliability. This framework directs regional operations to collaborate with and 

coordinate activities and plans between transportation and public safety 

agencies. TSM&O strategies aim to improve service efficiency, enhance 

public safety and security, reduce traveler delays, and improve access to 

information for travelers.

As agencies use TSM&O to identify improvements, it is important that they 

understand the performance that travelers expect from their transportation 

systems. Some examples of user-oriented performance measures are 

average trip travel time, length of delay, and reliability of trip making. These 

are important indicators of how well the transportation system is operating.

——————————————

Reliability of trip making asks

whether the time it takes for a 

specific trip is reliable. A specific 

trip might include, one’s daily 

commute, or the time it takes for 

goods to move between shipper 

and receiver.

——————————————
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What are the requirements for considering management and operations in the transportation planning process?

Federal requirements call for agencies to consider TSM&O in the metropolitan and Statewide and nonmetropolitan 

transportation planning processes. Examples of planning factors required by Federal legislation include, “promote 

efficient system management and operation,” and, “emphasize the preservation of the existing transportation.” 

Legislation also states that transportation plans shall include operations and management strategies to improve the 

performance of the existing transportation system by relieving vehicular congestion and maximizing the mobility of 

people and goods.

What are some examples of TSM&O tools? 

Intelligent transportation systems (ITS) are technological tools that can help to facilitate better TSM&O. For example, 

roadway video surveillance allows better responses to changes in network conditions, such as clearing an accident 

quickly to keep traffic moving. ITS technologies also can be used to collect real-time data, like travel speeds, which 

can be used to monitor system performance over time. 

Other examples of TSM&O tools include the following: 

 Regional traffic management centers.

 Regional traffic signal coordination.

 Integrated corridor management.

 Active transportation and demand management.

 Traffic incident management.

 Preferential treatment for transit and rideshares.

 Special event traffic management.

 Emergency preparedness and security.

 Pricing of transportation services.

 Customer information services.

 ITS applications for transit.

 Traveler information systems.

 Freight management and commercial vehicle programs.

These TSM&O strategies and tools focus on optimizing the performance of the transportation system. It is essential 

to mention that TSM&O does not include traditional maintenance activities, such as lawn cutting, pothole repair, or 

resurfacing.

What role do MPOs have in enhancing transportation system management and operations? 

MPOs can enhance TSM&O in the following ways:

 Identify strategies and benefits

When developing its transportation plan, an MPO should consider using 

TSM&O strategies as one method for improving mobility. Programs and 

projects that incorporate TSM&O strategies should then be given higher priority 

in the TIP. In TMAs, MPOs should consider including TSM&O strategies in 

their CMPs.
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 Coordinate with all agencies involved

Numerous agencies are responsible for managing and operating the 

transportation system in a typical metropolitan area. An MPO can provide 

regional leadership by facilitating collaboration and coordination among these 

agencies to improve safety, reliability, and performance of the strategies and 

services that are developed and delivered. The MPO establishes and sustains 

a decisionmaking framework by bringing parties together, helping to determine 

how TSM&O decisions will be made in an area, and by asking for input on 

TSM&O issues as part of the planning process. An engaged MPO helps

agencies develop and coordinate TSM&O strategies, which will make for a 

better regional approach to planning and programming projects. For example, 

many MPOs provide leadership by coordinating regional operations groups or 

committees made up of State and local agencies in the metro area.

 Advance TSM&O with a planning for operations approach

MPOs need to establish a joint effort between planners and operators to 

integrate TSM&O strategies into the planning process. This effort uses an 

objectives-driven, performance-based approach toward multi-modal, crossjurisdictional services and projects. This approach emphasizes desired system 

performance outcomes, rather than simply responding to problems with 

specific projects, and it includes the following elements:

o Development and use of operations objectives, which are specific, 

measurable statements that are included in the MTP. 

o Performance measures and data to analyze the effectiveness of M&O 

strategies and track progress toward meeting operations objectives.

o Selection and funding of M&O strategies.

o Interagency collaboration.

 Develop performance measures

MPOs should develop system performance measures that account for 

operations objectives and other regionally agreed upon outcomes and 

expectations for the management and operation of the transportation system. 

Performance measures can be used to evaluate the success of projects,

communicate with the public about current, past and future conditions, and 

help decide how investment decisions are made and how funds can be 

effectively spent. Through this process, MPOs can then work with their 

partners to improve the system through future plan development and project 

prioritization for TIPs. 

What role do State DOTs have in transportation systems management and operation?

State DOTs are responsible for operations and systems management of significant portions of the transportation 

network, and they have a major role integrating TSM&O strategies into the transportation planning process. State 

DOTs also support coordination between operations and planning functions inside and outside metropolitan areas.

Additional Information

For more on the U.S. DOT’s Planning for Operations Program, see ops.fhwa.dot.gov/plan4ops/.
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For the FHWA’s Office of Operations website and information on emergency management, travel management, 

transportation operations, freight management, and ITS, see www.ops.fhwa.dot.gov.

For the U.S. Department of Transportation’s official ITS site, see www.its.dot.gov.

For FHWA resources on congestion and transportation demand management, see 

planning.dot.gov/focus_congestion.asp. 
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Other Policy and Planning Considerations

Climate Change

The effects of climate change are complex. There is no one-size-fits-all approach to addressing climate change. 

FHWA recognizes the nuances of climate change and supports transportation and climate change research and 

disseminates the results. FHWA also offers technical assistance to stakeholders and coordinates activities within

USDOT and with other Federal agencies in the following areas:

 Mitigation

Strategies to reduce transportation greenhouse gas (GHG) emissions are 

organized into four major groups. System and operational efficiencies can 

be improved by optimizing the design, construction, operation, and use of 

transportation networks. Travel activity can be curtailed by reducing growth in 

vehicle-miles traveled. Low-carbon fuels can be introduced by developing

alternative fuels that have lower carbon content and generate fewer 

transportation GHG emissions. Fuel efficiency can be increased by advancing 

and bringing to market advanced engine and transmission designs, lighterweight materials, improved aerodynamics, and reduced rolling resistance.

 Adaptation

Climate change adaptation refers to planning, designing, constructing, 

operating, or maintaining transportation infrastructure while incorporating 

climate change concerns. Current efforts to reduce greenhouse gas (GHG) 

emissions in the atmosphere, while important for reducing the long-term effects 

of global climate change (GCC), will likely have little effect on GCC over the 

next twenty or thirty years. Policymakers, transportation planners, and system 

managers must proactively and cooperatively adapt to GCC in order to 

continue to deliver safe, reliable, effective, and sustainable transportation 

systems.

 Sustainability

Sustainable transportation systems should satisfy the functional requirements 

of societal development and economic growth while striving to enhance the 

natural environment and reduce consumption of natural resources. The 

economic goals that transportation policies and projects support are 

determined by local priorities. Priorities are specific to the sustainability needs 

identified by local decisionmakers. Needs may include job creation, business 

creation, increases in gross domestic or regional product, and increases in 

property values and tax bases.

 Energy

There are significant economic, national security, and environmental costs of 

the fuel our transportation system uses. Most US transportation sector carbon 

dioxide emissions—98 percent—come from petroleum fuels, and motor 

gasoline is responsible for about 60 percent of carbon dioxide emissions over 

the last twenty years. Reducing the use of single-occupant vehicles through 

increased reliance upon public transportation, ride-sharing, and nonmotorized 
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alternatives is an important way to reduce energy consumption. Also, 

advances have been made recently to improve the overall efficiency of motor 

vehicle operation, particularly through increased fuel economy. The traveling 

public and providers of public transit transportation are increasingly investing in 

alternative fuels, plug-in hybrid and other electric vehicle technologies. 

Increasing use of these fuels and technologies will yield numerous benefits, 

including reducing our reliance on foreign sources of oil, lowering localized and 

regional on-road emissions, and reducing energy consumption for the 

transportation sector. States and localities in the U.S. are beginning to build 

the necessary infrastructure to support these fuels and vehicle technologies.

Additional Information

For more from FHWA on sustainability, see www.fhwa.dot.gov/environment/sustainability/index.cfm. 

For more on FHWA’s Sustainable Highways Initiative, see www.sustainablehighways.dot.gov.

For more on FTA’s environmental programs, see www.transit.dot.gov/regulations-and-guidance/environmentalprograms/environmental-programs. 

Freight Movement 

What role does freight movement have in transportation systems? 

Industry, retail, agriculture, international trade, and terminal operators rely on freight that moves efficiently within and 

through a region. Metropolitan areas and ports in particular, with their air cargo airports, intermodal freight yards, 

large trucking terminals, and shipyards, are affected by freight movement issues. 

Examples of intermodal freight projects include bridge replacements, road widening, port and rail access 

improvements, terminal facility enhancements, grade separations for highway and rail, and connections to air cargo 

and new infrastructure. 

What roles do MPOs and State DOTs have in freight transportation planning? 

State DOTs and MPOs are responsible for making sure that freight movement is considered in the transportation 

planning process. Federal legislation calls for the metropolitan and Statewide and nonmetropolitan planning 

processes to provide reasonable opportunity for the public and interested parties, including, specifically, “freight 

shippers,” and “providers of freight transportation services,” to participate in developing plans and programs.

The following examples explain how State DOTs and MPOs have systematically incorporated freight movement 

issues into their planning activities: 

 Defining elements of a metropolitan area’s transportation system that are 

critical for the efficient movement of freight.

 Identifying ways to measure system performance in terms of freight movement.

 Developing freight-oriented data collection and modeling to identify problems 

and potential solutions.

 Creating freight movement advisory committees to identify important 

bottlenecks in the freight network.
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Federal law encourages States to establish freight advisory committees composed of a broad contingent of publicand private-sector freight stakeholders. To receive funding under the National Highway Freight Program, the FAST 

Act requires each State to develop a State freight plan, which must comprehensively address the State’s freight 

planning activities and investments. A State may develop its freight plan either separately from, or incorporated 

within, its statewide long-range transportation plan.

As part of the planning process, States must set performance targets related to freight transport measures set by 

USDOT, and integrate those targets in their planning processes. States must also report periodically on their 

progress in meeting the targets and on how they are addressing congestion at freight bottlenecks. 

Similarly, MPOs must set performance targets related to freight measures set by USDOT, integrate those targets into

their planning processes, and report periodically on their progress in meeting their targets.

What funding is available for freight planning and project implementation? 

The FAST Act created a new National Highway Freight formula program, as well as a new discretionary grant 

program for nationally significant freight and highway projects. The National Highway Freight Program is focused on 

improving the efficient movement of freight on the National Highway Freight Network. However, each State may use 

up to 10 percent of its NHFP funds for each fiscal year for public or private freight rail, water facilities (including 

ports), and intermodal facilities. Beginning December 4, 2017, a State must have an approved State Freight Plan in 

order to obligate NHFP funds.

The FAST Act also established a discretionary competitive grant program to provide financial assistance to nationally 

and regionally significant highway, rail, port, and intermodal freight and highway projects. US DOT refers to this 

program as “FASTLANE” grants (Fostering Advancements in Shipping and Transportation for the Long-term 

Achievement of National Efficiencies).

State DOTs and MPOs can use planning funds for freight planning, and can dedicate funds for specific projects. 

Specific freight projects must meet eligibility requirements for the specific funding source used. Agencies can include 

projects that improve access to terminals or ports in their Federally funded transportation improvement programs. 

Please see the Congestion Mitigation and Air Quality Improvement (CMAQ) program guidance for more information 

on the types of freight projects that can be funded under the CMAQ program to aid in pollutant emissions reductions. 

What are some freight-transport tactics that transportation decisionmakers might consider?

 Truck restrictions, such as peak period bans, route diversions, noise 

ordinances, and hazardous materials route restrictions.

 Road design and construction changes, such as improved entry and exit 

ramps and merges, and capacity or safety improvements.

 Road pricing changes, such as peak period permits, freeway permits, and 

peak period tolls.

 Fleet management changes, such as automatic vehicle location and routing, 

voluntary off-peak operations, and driver training and management.

 Traffic engineering improvements, such as lane design restrictions, wider 

lanes, variable message signs, and speed restrictions.

 Shipper and receiver actions, such as voluntary and mandatory off-peak 

operations.

 Incident management changes, such as automated detection and site 

surveillance and communications.
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 Inspection and enforcement changes, such as automated surveillance and

urban truck inspections and enforcement.

 Information management improvements, such as highway advisory radio,

and traffic information.

Additional Information

For FHWA’s guide to freight planning, including guidelines, case studies, and other information, see

www.fhwa.dot.gov/planning/freight_planning. 

For more FHWA resources on financing freight transportation improvements, see

www.ops.fhwa.dot.gov/freight/pol_plng_finance/financing/index.htm. 

For the FHWA Offices of Planning and Freight Management and Operations’ Talking Freight seminars, see 

www.ops.fhwa.dot.gov/freight/fpd/talking_freight/index.htm. 

Talking Freight seminars are part of FHWA’s Freight Professional Development Program, which aims to provide

technical assistance, training, tools, and information to help the freight and planning workforce meet the 

transportation challenges of tomorrow. Seminars are held monthly via web conference and are open at no cost to all 

interested parties, public and private.

Land Use and Transportation 

What is the relationship between land use and transportation? 

Transportation moves people and goods from one place to another, but transportation systems also affect community 

character, the natural and human environment, and economic development patterns. A transportation system can 

improve the economy, shape development patterns, and influence quality of life and the natural environment.

Land use and transportation are symbiotic. Development density, land use characteristics, and location all influence 

regional travel patterns, as well as the ability of the public to access opportunities through a range of transportation 

alternatives, including nonmotorized travel. In turn, the degree of access provided by the transportation system to 

various land uses will influence current and evolving land use and development trends. On a more local level, 

community and site design can facilitate travel by multiple travel modes, including transit and nonmotorized travel. 

For example, a connected system of streets with higher residential densities and a mix of land uses can allow and 

encourage travel by foot, bicycle, and public transportation, as well as by automobile. 

What is the role of the State DOT and the MPO in land use and transportation? 

Metropolitan, Statewide, and nonmetropolitan transportation planning processes promote compatibility between 

transportation improvements and growth and economic development plans.

The State DOT and MPO role and level of involvement in land use decisionmaking varies by State and local 

legislation and policies. No matter where they are, State DOTs and MPOs promote consistency between 

transportation improvements, planned growth, and economic development patterns. 
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What are the requirements for considering land use and economic development in the transportation planning process? 

When updating transportation plans, responsible agencies must review long-range Statewide transportation plans 

and MTPs for validity and consistency with current and forecasted demographic, transportation, and land use 

conditions and trends. The plan updates need to be based on the latest available projections and assumptions for a 

variety of data, including population, land use and development, travel, employment, congestion, and economic 

activity. It is essential that agencies promote the highest level of consistency between land use, transportation, and 

other planning activities, using a robust public involvement process that includes public workshops and open houses, 

draft documents that are readily available for review and comment, specific outreach strategies for key stakeholders 

and communities, and social media.

Activities intended to stimulate economic development can affect the transportation network, and the transportation 

network can affect economic development opportunities. Transportation decisionmakers can support economic 

vitality by appropriately planning for and accommodating the many different demands on the transportation system.

Decisionmakers should evaluate proposed investments for economic development and future transportation needs 

by asking the following questions: 

 How can the transportation system accommodate increased population and 

economic growth that may be brought on by proposed developments? 

 How can transportation investments support economic growth while balancing 

other transportation and community priorities? 

 Can land development and transportation investment programs be better 

coordinated to mitigate or prevent congestion?

How do Federal transportation planning programs and initiatives recognize the links between transportation and land use?

Federal programs are designed with an understanding that transportation decisionmaking affects existing and 

planned land use development and that the reverse is also true. For example, transportation planning processes 

must consider bicyclists and pedestrians, but nonmotorized travel modes are typically accommodated more 

successfully in higher density, mixed use communities. Similarly, carefully considered development allows planners 

to provide safer, more convenient, and more attractive travel experiences for a broader range of modes. 

Communities that lack areas of integrated and well-connected land use patterns can retrofit existing development or 

use new transportation investments, such as improved transit services or enhanced pedestrian amenities, to 

encourage connections between land uses. Examples of areas and efforts that are integrated and well-connected 

include town or community centers, walkable neighborhoods, and public facilities—such as libraries, businesses, 

hospitals, and banks—that are clustered.

Other initiatives that consider the relationship between land and transportation include the following:

 Livability

Communities benefit when decisions about transportation and land use are 

made at the same time. Deciding to build houses, schools, grocery stores, 

employment centers, and transit stations close to one another, while providing 

a well-connected, multimodal street network, provides more transportation 

choices and convenient access to daily activities, often at a lower cost to the 

traveler. Livability is also about using the quality, location, and type of 

transportation facilities and services available to help achieve broader 

community goals such as access to employment, housing, and schools. 

 Health 
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Communities that facilitate safe and easy travel for pedestrians, bicyclists, and 

transit riders can generate a number of health benefits, including reduced 

obesity, asthma, type 2 diabetes, heart disease, and cancer. In addition to 

transportation facilities, land use development patterns and site designs that 

facilitate the use of walking, bicycling, and transit are key to promoting active 

transportation and its beneficial outcomes.

 Sustainability

Environmental quality is affected by how we plan communities and how we 

travel within them. Providing more travel options in more compact, connected 

communities leads to fewer car trips. In turn, this reduces automobile 

emissions, lessens the demand for energy resources, and improves air and 

water quality. Developing land more efficiently and reusing existing properties 

can preserve rural lands and protect natural resources. 

What are some examples of innovative approaches for better integrating land use and transportation? 

New approaches in planning are emerging as agencies are increasingly recognizing that it is important to integrate 

land use and transportation. Scenario planning is an approach that has been used by many planning agencies to 

better consider the interaction between transportation, land use, the environment, economic development and other 

issues in a single planning process (see Scenario Planning). Context-sensitive solutions and Transit-Oriented 

Development are two commonly used integrated planning processes. 

What is a context-sensitive solution? 

A context-sensitive solution (CSS) is a collaborative, interdisciplinary approach to transportation planning that 

accounts for a transportation facility’s physical setting and preserves or enhances valued scenic, aesthetic, historic, 

cultural, environmental, and other resources while maintaining or improving safety and mobility for users. A CSS 

approach considers the entire context within which a proposed transportation project will be implemented. 

CSS requires planners to think beyond the right of way or physical borders of a transportation project or corridor. 

Proposed projects are developed and designed appropriately for the conditions of the immediate environment while 

meeting the community’s transportation needs. This approach is intended to create a project that is acceptable to a 

variety of interested parties, in recognition of their needs, perspectives, and setting. 

What is Transit-Oriented Development and Joint Development?

Transit-Oriented Development (TOD) is compact, mixed-use development that encourages the public to use transit 

by linking pedestrian pathways to transit centers, stations, and stops. Typically, agencies use TOD to leverage transit 

infrastructure to promote economic development and other neighborhood and community goals. By enhancing the 

attractiveness and serviceability of transportation alternatives, TOD can lead to more transit ridership and less traffic 

congestion while creating a sense of community and place.

Joint development refers to a public transportation project that integrally relates to, and is often co-located with,

commercial, residential, mixed-use, or other non-transit development. Joint development may include partnerships 

for public or private development associated with any mode of transit system that is being improved through new 

construction, renovation, or extension. Joint development may also include intermodal facilities, intercity bus and rail 

facilities, transit malls, or historic transportation facilities
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To be eligible for Federal funding, joint development projects must create economic and public transportation 

benefits, with commercial ventures dedicating a fair share of revenue to support public transportation. The joint 

development must be physically or functionally related to a transit project and must ensure that occupants of space 

built with Federal funds pay a fair share of the cost.

The capital project and development aspects of TOD and joint development projects may be planned, designed and 

implemented by partnerships among local government, transit operators, MPOs and States. Because MPOs do not 

have land use or capital program authority they are usually involved in planning and facilitating the formation and 

operation of public, private, and intergovernmental partnerships.

What is an MPO’s role in Transit-Oriented Development and Joint Development?

An MPO must approve all joint development and transit-oriented development projects that use Federal funds, and 

include those projects in MTPs, TIPs, and STIPs. Beyond including TOD and joint development capital projects in 

plans and TIPs, MPOs do much work during the planning process, including the following:

 Fostering understanding and support for TOD and joint development programs 

by conducting planning studies and performing outreach programmed in the 

UPWP.

 Facilitating community dialogue on the benefits of TOD and on strategies for 

implementing TOD studies and joint development market opportunities across 

the region.

 Preparing a TOD Strategic Plan for the region.

 Playing lead roles in developing and promoting land use policies that support 

TOD through various means, including criteria used to set investment priorities.

 Assembling and disseminating information on potential TOD and other land 

use practices to stakeholder communities in the public and private sector.

 Providing on-staff experts on TOD to provide assistance to local member 

governments on the relationship between land use and transportation, and 

including TOD efforts in their UPWPs.

Additional Information

For FTA’s full range of information on Transit-Oriented Development and joint development, including research and 

training resources, see www.transit.dot.gov/TOD.

For FHWA’s overview of coordinating land use and transportation, see 

www.fhwa.dot.gov/planning/processes/land_use.

Planning and Environment Linkages 

Sustainability and transportation

Sustainability means accommodating the needs of the present without compromising the ability of future generations 

to meet their needs. As applied to the transportation sector, planning for sustainability can incorporate a variety of 

strategies to conserve natural resources, encourage modes other than single-occupant vehicles, and promote travel 

reduction strategies. 
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Transportation decisions from the past have unintentionally contributed to unsustainable conditions, including 

greenhouse gas emissions, energy insecurity, congestion, and ecological impacts, and development patterns that 

public services and infrastructure may not effectively be able to support. Transportation officials and stakeholders are 

now recognizing that their decisions have long-term implications and impacts, and are working on how to prepare 

metropolitan and Statewide transportation plans and programs accordingly. Attaining a sustainable transportation 

system requires ongoing attention and action by the public sector, private companies, and individual citizens.

Why link transportation planning to environmental processes?

There are significant public benefits when State and local agencies incorporate environmental and community values 

into transportation decisions early in the planning process, and carry those considerations through to project 

development and delivery. Benefits to the riding public include the following:

 Relationship building

Transportation planning agencies can establish positive working relationships 

with resource agencies and the public by enhancing inter-agency participation, 

coordination efforts, and procedures. Better relationships can go a long way 

toward reaching local consensus on decisions. To foster relationship building, 

State DOTs and MPOs consult with State and local agencies responsible for 

land use management, natural resources, environmental protection, 

conservation, and historic preservation. State DOTs must also consult with 

tribal agencies.

 Identifying areas with environmental issues

By identifying environmental concerns early, agencies can save time and 

costs. Identifying opportunities to avoid, or minimize potential impacts to 

environmental resources during planning, allows agencies to mitigate the 

potential effects of future transportation projects. Federal law mandates that

long-range transportation plans include a discussion of types of potential 

environmental mitigation activities and potential areas to carry out these 

activities, including activities that may have the greatest potential to restore 

and maintain the environmental functions affected by the plan. The resulting 

discussions are developed in consultation with Federal, State, and tribal

wildlife, land management, and regulatory agencies.

 Process efficiencies

PEL is an optional process that is applied to undertake a multimodal, systemslevel, corridor, or subarea planning study. The use of PEL is not required but is 

encouraged by FHWA and FTA. Potential benefits of the PEL process include: 

improved sharing of information, elimination of duplicative efforts in planning 

and NEPA processes, improved communication and stronger relationships, 

early consultation and collaboration among stakeholders to identify potential 

impacts, accelerated project delivery, better environmental outcomes, timely 

permit decisions, and mutually beneficial outcomes.

 Optional PEL processes provides flexibility 

The FHWA and FTA planning regulations have included provisions on PEL 

optional practices and authorities since 2007that encouraged corridor and 

subarea studies; and PEL guidance in Appendix A that clarified how and when 

transportation planning can be adopted or incorporated by reference into 

NEPA. The 2016 update of the planning regulation include a reference to 23 
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U.S.C. 168 that provides a process by which the NEPA lead and coordinating 

agencies may adopt or incorporate by reference a planning product to use 

during the environmental review process, to the maximum extent practicable.

The term “planning product” is defined as a decision, analysis, study, or other 

documented information that is the result of an evaluation or decisionmaking 

process carried out by a metropolitan planning organization, State, or transit 

agency, as appropriate, during metropolitan or statewide transportation 

planning. Agencies can better conceive transportation programs and projects 

that effectively serve their community’s needs when they begin planning 

equipped with information about resource considerations and when they 

coordinate with resource agencies and the public 

Figure 8. The relationship between transportation planning and environmental planning, and between systems planning and project-level 

decisions. 

How is the National Environmental Policy Act related to the transportation planning process? 

NEPA established a national policy to promote the environmental protection in the actions and programs of Federal

agencies. FHWA and FTA act as lead Federal agencies and are responsible for implementing the NEPA process and 

working with State and local project sponsors during transportation project development. 

FHWA and FTA apply the NEPA process to transportation decisionmaking by assisting transportation officials in 

making project decisions that balance engineering and transportation needs with social, economic, and 

environmental factors. This process relies heavily on input from the public, interest groups, resource agencies and 

local governments. FHWA and FTA apply the NEPA process as an umbrella for compliance, with more than 40 

environmental laws, regulations, and executive orders that provide an integrated approach to addressing impacts that 

transportation projects produce on the human and natural environment. 

A coordinated approach between planning and project development can lead to transportation investments that 

reflect community needs, were developed from an active public involvement process, and are sensitive to the 

environment. The first stages of the NEPA process—development of project purpose and need—should build upon 
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the transportation needs identified during planning. These needs will inform the final selection of an alternative for 

design and construction. 

Another direct link between NEPA and transportation planning is the requirement that a project must be included in a 

conforming plan and TIP before it can advance, because major changes late in the planning process can trigger 

conformity and other planning reassessments that can lead to delays. Data collection related to environmental 

features, analyses of projected transportation system usage, and attendant impacts on environmental quality can 

provide important information as agencies commence the NEPA process.

How are transportation planning products integrated into NEPA analyses?

Federal law and supporting guidance describe approaches for integrating transportation planning products into the 

environmental review process. The lead agency must be able to stand behind the overall soundness and credibility of 

planning product made during the transportation planning process, if those decisions are adopted or incorporated directly or 

by reference into an environmental review process.

There are two types of planning products: planning decisions and planning analyses. Examples of planning decisions 

include:

a) Information on whether tolling, private financial assistance, or other special financial measures are 

necessary to implement the project.

b) A decision with respect to general travel corridor or modal choice, including a decision to implement 

corridor or subarea study recommendations to advance different modal solutions as separate projects with 

independent utility.

c) The purpose and the need for the proposed action.

d) Preliminary screening of alternatives and elimination of unreasonable alternatives.

e) A basic description of the environmental setting.

f) A decision with respect to methodologies for analysis.

g) An identification of programmatic level mitigation for potential impacts of a project, including a 

programmatic mitigation plan developed in accordance with 23 U.S.C. 1698 that the relevant agency 

determines are most effectively addressed at a national or regional scale, including:

i) Measures to avoid, minimize, and mitigate impacts at a national or regional scale of proposed 

transportation investments on environmental resources, including regional ecosystem and water 

resources.

ii) Potential mitigation activities, locations, and investments.

Examples of planning analyses include:

a) Travel demands.

b) Regional development and growth.

c) Local land use, growth management, and development.

d) Population and employment.

e) Natural and built environmental conditions.

f) Environmental resources and environmentally sensitive areas.

g) Potential environmental effects, including the identification of resources of concern and potential direct, 

indirect, and cumulative effects on those resources to both the natural and human environment.

h) Mitigation needs for a proposed project, or for programmatic level mitigation, for potential effects that the 

lead agency determines are most effectively addressed at a regional or national program level.

Publicly available planning products or other information developed during the transportation planning process may 

be incorporated directly or by reference into the environmental review process if appropriate; 
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include involvement of interested State, local, tribal, and Federal agencies; public review and reasonable opportunity 

to comment are provided; documentation of planning products is in a form that is identifiable and available for review 

during the NEPA scoping process; and NEPA lead agencies agree that such incorporation will aid in establishing or 

evaluating the purpose and need for the Federal action, reasonable alternatives, cumulative or other impacts on the 

human and natural environment, or mitigation of these impacts. 

A robust scoping and early coordination process is critical to FHWA and FTA reaching informed transportation 

decisions on the suitability of transportation planning information, analyses, documents, and decisions for use in the 

NEPA process. Early coordination provides Federal and State environmental, regulatory, and resource agencies, and 

the public, with information that explains the analyses used to develop the planning products

The Federal lead agency can determine the appropriate geographic scale for effectively addressing potential effects 

of a transportation improvement. 

Programmatic mitigation plans

Programmatic mitigation plans address potential impacts of projects at a larger geographic scale than the project 

study area. The States and MPOs may develop a programmatic mitigation plan as part of the statewide and the 

metropolitan transportation planning processes. They may develop a programmatic mitigation plan on a regional, 

ecosystem, or statewide scale, and it may either encompass multiple environmental resources within a defined 

geographic area or focus on a specific resource. Section 169 of Title 23, U.S. Code, provides an optional framework, 

whereby States and MPOs may identify environmental resources early in the planning process. As a result, they 

could potentially minimize or avoid impacts to these resources. Programmatic planning has the potential to 

streamline project development and protect environmental resources.

What NEPA documentation is required? 

NEPA documentation discloses benefits and impacts of transportation projects on the human and natural 

environments, gathers input from the public and other stakeholders, and provides information for decisionmakers. 

Transportation projects have different degrees of complexity and effects on the environment. Under NEPA, the 

environmental document that is required depends on the degree of impact of a project. FHWA and FTA, in 

coordination with project sponsors, prepare one or more of the following documents for a proposed project: 

 Categorical Exclusion documents apply to projects that do not have a 

significant impact on the human and natural environment. 

 An Environmental Assessment (EA) is prepared for projects where it is 

unclear whether there will be significant environmental impacts. If the analysis 

in the EA indicates the proposed project will have significant environmental 

impacts, then an Environmental Impact Statement (EIS) is prepared. 

 A Finding of No Significant Impact is a separate decision document 

prepared when there are no significant impacts. 

 A Notice of Intent is a notice that an Environmental Impact Statement will be 

prepared and considered.

 Environmental Impact Statement documents are prepared for projects that 

have a significant impact on the human and natural environment. Draft EIS and 

Final EIS documents include a description of the proposed project, the existing 

environment, and analysis of the beneficial and adverse impacts of all 

reasonable alternatives. 
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 A Record of Decision presents the selected transportation decision analyzed 

in an EIS, the basis for that decision, and the environmental commitments, if 

any, to mitigate for project impacts on the human and natural environment. 

Regardless of the type of NEPA document prepared, final selection or approval of a proposed project alternative by 

FHWA and FTA makes the project eligible for Federal funding of project activities, such as final design, right-of-way 

acquisition, and construction. 

Additional Information

For information on accelerating project delivery related to NEPA requirements, see 

https://www.environment.fhwa.dot.gov/strmlng/index.asp.

For more information on linking planning and environmental concerns, see 

www.environment.fhwa.dot.gov/integ/index.asp. 

For FTA resources on the environmental review processes for public transit projects, see 

www.transit.dot.gov/regulations-and-guidance/environmental-programs/environmental-analysis-review. 

To contribute thoughts and ideas in an open forum on NEPA and related topics, see 

collaboration.fhwa.dot.gov/dot/fhwa/ReNepa/default.aspx.

Scenario Planning

What is scenario planning?

Scenario planning has long been used by transportation agencies in the U.S. as a tool for visioning and identifying 

preferred land use and transportation scenarios for future growth. Scenario planning provides a framework for 

examining how alternative policies, plans, and programs will affect a community or region. In recent years, 

transportation agencies have applied scenario planning methods to strategic planning and programming tasks, 

including assessments of long-term risks, financing, system management and operations, and corridor planning. 

Scenario planning has become a significant component of long-range transportation planning.

The optional scenario planning process described in the transportation planning regulations is a process to provide 

information to decisionmakers on the implications of proposed options as they develop transportation plans. This 

approach can provide insight to decisionmakers on how preferred plan scenarios could improve the condition and 

performance of the transportation system and how changes in local policies and investments could affect the costs of 

reaching performance targets. During the development of the metropolitan transportation plan, MPOs have the option 

to develop multiple scenarios and analyze how the preferred scenario may improve the condition and performance of 

the transportation system. MPOs may consider scenarios that track with strategic policy options such as regional 

investment strategies, future distribution of housing, population and employment, strategies for maintaining baseline 

performance conditions, strategies for improving baseline performance conditions for as many of the performance 

measures as possible, revenue-constrained scenarios, and the estimated costs and potential revenues available to 

support each scenario.

Scenario planning typically includes both qualitative and quantitative analyses to illustrate the tradeoffs between different

futures and their relative impacts on different community goals. This robust discussion of tradeoffs and identification of a 

preferred set of strategies based on that tradeoff discussion can lead to more thoughtful, effective, and resilient plans. 
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Scenarios enable planners, the public, and decisionmakers to consider jointly the different variables that influence and are 

influenced by transportation to ensure careful consideration of different public policy and investment decisions. 

Additional Information

For FHWA’s Scenario Planning website, see 

www.fhwa.dot.gov/planning/scenario_and_visualization/scenario_planning. 

For the FHWA-FTA TPCB Scenario Planning Program website, see www.planning.dot.gov/scenario.asp.

Travel Model Improvement Program 

The Travel Model Improvement Program (TMIP) has conducted research, provided technical assistance, and 

delivered training to local, regional and State transportation planning professionals since 1994. Much has changed 

over this period, with shifts in transport policy, advances in modeling theories, and progressions in practical lessons. 

Throughout, TMIP has worked to advance modeling capabilities and support transportation professionals as they 

respond to current and future challenges. Today, TMIP continues its mission of improving analysis practices to 

ensure that transportation professionals are well-equipped to inform and support strategic transportation decisions.

TMIP supports effective use of analytic methods and tools in transportation decisionmaking by getting research into 

practice and supporting innovation and planning analysis improvements. The ultimate goal is to help transportation 

planning agencies provide better information in supporting transportation planning decisions. To this end, TMIP 

provides a variety of services and products to academics and professionals in the fields of analysis, modeling and 

simulation. For more information, please visit www.fhwa.dot.gov/planning/tmip. 

Additional Information

For the National Highway Institute’s Introduction to Urban Travel Demand Forecasting, see 

www.nhi.fhwa.dot.gov/training/course_search.aspx?tab=0&key=152054152054&course_no=152054&res=1.

For more from FHWA on visualization, see www.fhwa.dot.gov/visualization/. 

For more on TRB’s work on visualization in transportation, see www.trbvis.org.

For FHWA’s Office of Planning, Environment, and Realty Executive Geographic Information System, see

hepgis.fhwa.dot.gov/fhwagis/. 
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APPENDIX

Recent Highway Reauthorizations

Date signed into law Title of Bill

1991 The Intermodal Surface Transportation Efficiency Act (ISTEA)

1995 National Highway System Designation Act

1998 The Transportation Equity Act for the 21st Century (TEA-21)

2005 Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for 

Users (SAFETEA-LU)

2012 Moving Ahead for Progress in the 21st Century Act (MAP-21)

2015 Fixing America’s Surface Transportation (FAST) Act

Acronyms

3-C Continuing, Cooperative and Comprehensive Planning Process

AASHTO American Association of State Highway and Transportation Officials

BTS Bureau of Transportation Statistics

CAAA Clean Air Act as amended in 1990

CE Categorical Exclusions

CMAQ Congestion Mitigation and Air Quality Improvement Program

CMP Congestion Management Process

CO Carbon Monoxide

COG Council of Governments 

DEIS Draft Environmental Impact Statement 

DOT Department of Transportation

EA Environmental Assessment 

EIS Environmental Impact Statement

EJ Environmental Justice 

EPA Environmental Protection Agency

FAA Federal Aviation Administration

FAST Fixing America’s Surface Transportation Act

FEIS Final Environmental Impact Statement

FHWA Federal Highway Administration

FONSI Finding of No Significant Impact

FTA Federal Transit Administration 

FY Fiscal Year

HC Hydrocarbons

HSIP Highway Safety Improvement Program

HOV High-Occupancy Vehicle

I/M Inspection and Maintenance 

IHS Interstate Highway System

ISTEA Intermodal Surface Transportation Efficiency Act

ITS Intelligent Transportation Systems

LRSTP Long-Range Statewide Transportation Plan 

LRTP Long-Range Transportation Plan

M&O Management and Operations

MAP-21 Moving Ahead for Progress in the 21st Century Act

MPO Metropolitan Planning Organization
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MTP Metropolitan Transportation Plan

NAA Nonattainment Area

NAAQS National Ambient Air Quality Standards 

NADO National Association of Development Organizations

NHFN National Highway Freight Network

NHFP National Highway Freight Program

NHPP National Highway Performance Program

NHS National Highway System

NEPA National Environmental Policy Act of 1969

NOx Nitrogen Oxide

PBPP Performance-based Planning and Programming

PIP Public Involvement Plan

PL FHWA Planning Funds

PM Particulate Matter

PPP Public Participation Plan

PPM Parts Per Million

ROD Record of Decision

RPO Regional Planning Organization

RTPO Regional Transportation Planning Organization

SAFETEA-LU Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users

SDOT State DOT

SIB State Infrastructure Bank

SIP State Implementation Plan

SOV Single-Occupancy Vehicle

SPR State Planning and Research Funds

STIP Statewide Transportation Improvement Program

STBG Surface Transportation Block Grant Program

TCM Transportation Control Measure

TDM Transportation Demand Management

TEA-21 Transportation Equity Act for the 21st Century 

TIFIA Transportation Infrastructure Finance and Innovation Act of 1998

TIP Transportation Improvement Program

TMA Transportation Management Area

TMIP Travel Model Improvement Program

TOD Transit-Oriented Development

TRB Transportation Research Board

TSM&O Transportation Systems Management & Operations

UA Urbanized Area

UPWP Unified Planning Work Program 

VOC Volatile Organic Compound
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Glossary

A 

Administrative Modification

A revision to a long-range Statewide transportation or MTP, TIP, or STIP that includes minor changes to project/project phase 

costs, minor changes to funding sources of previously included projects, and minor changes to project/project phase initiation 

dates. An administrative modification is a revision that does not require public review and comment, demonstration of fiscal 

constraint, or a conformity determination (in nonattainment and maintenance areas).

Amendment 

A revision to a long-range Statewide or metropolitan transportation plan, TIP, or STIP, that involves a major change to a project, 

including the addition or deletion of a project or a major change in project cost, project/project phase initiation dates, or a major 

change in design concept or design scope (for example, changing project termini, the number of through traffic lanes, or the 

number of stations in the case of fixed-guideway transit projects). Changes to projects that are included only for illustrative 

purposes do not require an amendment. An amendment requires public review and comment, as well as a re-demonstration of 

fiscal constraint. If an amendment involves “non-exempt” projects in nonattainment and maintenance areas, a conformity 

determination is required. In the context of a long-range Statewide transportation plan, an amendment is a revision approved by 

the State in accordance with its public involvement process.

Area Sources 

Small stationary and non-transportation pollution sources that are too small and/or numerous to be included as point sources but 

may collectively contribute significantly to air pollution (for example, dry cleaning services).

Asset Management

A strategic and systematic process of operating, maintaining, and improving physical assets, with a focus on both engineering 

and economic analysis based upon quality information, to identify a structured sequence of maintenance, preservation, repair,

rehabilitation, and replacement actions that will achieve and sustain a desired state of good repair over the lifecycle of the assets 

at minimum practicable cost.

Attainment Area 

Any geographic area in which levels of a given criteria air pollutant (for example, ozone, carbon monoxide, PM10, PM2.5, and 

nitrogen oxide) meet the health-based National Ambient Air Quality Standards for that pollutant. An area may be an attainment 

area for one pollutant and a nonattainment area for others. A maintenance area (see definition below) is not considered an 

attainment area for transportation planning purposes.

C

Capacity 

A transportation facility’s ability to accommodate a moving stream of people or vehicles in a given time period. 

Capital Program Funds 

Financial assistance from the major transit capital programs of 49 U.S.C. Section 5309. This program enables the Secretary of 

Transportation to make discretionary capital grants and loans to finance public transportation projects divided among fixed 

guideway (rail) modernization, construction of new fixed guideway systems and extensions to fixed guideway systems, and 

replacement, rehabilitation, and purchase of buses and rented equipment, as well as construction of bus-related facilities. 

Carbon Monoxide 

A colorless, odorless, tasteless gas formed in large part by incomplete combustion of fuel. 

Clean Air Act

The original Clean Air Act was passed in 1963, but the national air pollution control program is actually based on the 1970 

revision of the law. The Clean Air Act as amended in 1990 made major changes and contains the most far-reaching revisions of 

the 1970 law.
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Conformity (Air Quality)

A CAA (42 U.S.C. 7506[c]) requirement that ensures that Federal funding and approval are given to metropolitan transportation 

plans, metropolitan transportation improvement programs and FHWA/FTA projects in nonattainment and maintenance areas for 

the transportation-related pollutants that are consistent with the air quality goals established by a State Implementation Plan 

(SIP). Conformity, in the context of the SIP, refers to transportation activities that will not cause new air quality violations, worsen 

existing violations, or delay timely attainment of the National Ambient Air Quality Standards or any interim milestone. The 

transportation conformity rule (40 CRF part 93) sets forth policy, criteria, and procedures for demonstrating and assuring 

conformity of transportation activities.

Congestion Management Process 

A systematic approach required in transportation management areas that provides for effective management and operation, 

based on a cooperatively developed and implemented metropolitan-wide strategy of new and existing transportation facilities 

eligible for funding under title 23 U.S.C. and title 49 U.S.C. through the use of travel demand reduction and operational 

management strategies. Provides information on transportation system performance and finds alternative ways to alleviate 

congestion and enhance the mobility of people and goods, to levels that meet State and local needs.

Congestion Mitigation and Air Quality Improvement Program

A Federal-aid funding program created under ISTEA. Directs funding to projects that contribute to meeting national air quality 

standards. CMAQ funds generally may not be used for projects that result in the construction of new capacity available to singleoccupancy vehicles. 

Coordinated Public Transit-Human Services Transportation Plan (Coordinated Plan) 

A comprehensive listing of public transportation services supported by FTA’s 5310 formula grant program for the enhanced 

mobility of seniors and individuals with disabilities, as well as by other Federal departments and agencies, including any 

transportation activities carried out by a recipient of a grant from the Department of Health and Human Services. The 

Coordinated Plan is developed and approved through a process that includes participation by seniors, individuals with 

disabilities, representatives of public, private, and nonprofit transportation and human services providers, and other members of 

the public.

D 

Department of Transportation

When used alone, indicates the U.S. Department of Transportation. In conjunction with a place name, indicates State, city, or 

county transportation agency (for example, Illinois DOT, Los Angeles DOT). 

E

Environmental Justice

Environmental justice assures that services and benefits allow for meaningful participation and are fairly distributed to avoid 

discrimination. (See also Title VI)

Environmental Mitigation Activities 

Strategies, policies, programs, actions, and activities that, over time, will serve to avoid, minimize, or eliminate impacts to 

environmental resources associated with the implementation of a long-range Statewide transportation plan or MTP. 

Environmental Protection Agency 

The Federal regulatory agency responsible for administering and enforcing Federal environmental laws, including the Clean Air 

Act, the Clean Water Act, the Endangered Species Act, and others. 

F

FAST Act

Fixing America's Surface Transportation (FAST) Act. Signed on December 4, 2015, this law authorized the Federal surface 

transportation programs for highway, highway safety, and transit for 2016 to 2020."
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Federal Highway Administration

A branch of the U.S. Department of Transportation that administers the Federal-aid highway program, providing financial 

assistance to States to construct and improve highways, urban and rural roads, and bridges. The FHWA also administers the 

Federal Lands Highway Program, including survey, design, and construction of forest highway system roads, parkways and park 

roads, Indian reservation roads, defense access roads, and other Federal Lands roads. 

Federal Transit Administration

A branch of the U.S. Department of Transportation that administers Federal funding to transportation authorities, local 

governments, and States to support a variety of locally planned, constructed, and operated public transportation systems, 

including buses, subways, light rail, commuter rail, streetcars, monorail, passenger ferry boats, inclined railways, and people 

movers.

Financial Plan 

Documentation that must be included in a Metropolitan Transportation Plan and Transportation Improvement Program (and is 

optional for the long-range Statewide transportation plan and Statewide Transportation Improvement Program) that 

demonstrates the consistency between reasonably available and projected sources of Federal, State, local, and private revenues 

and the costs of implementing proposed transportation system improvements.

Financial Programming 

A short-term commitment of funds to specific projects identified in both the regional and the Statewide Transportation 

Improvement Program. 

Fiscal Constraint

Making sure that a given program or project can reasonably expect to receive funding within the time allotted for its 

implementation. The Metropolitan Transportation Plan, Transportation Improvement Program, and the Statewide Transportation 

Improvement Program must include sufficient financial information for demonstrating that projects in those documents can be 

implemented using committed, available, or reasonably available revenue sources, with reasonable assurance that that the 

Federally supported transportation system is being adequately operated and maintained. For the Transportation Improvement 

Program and the Statewide Transportation Improvement Program, financial constraint/fiscal constraint applies to each program 

year. Additionally, projects in air quality nonattainment and maintenance areas can be included in the first two years of the

Transportation Improvement Program and Statewide Transportation Improvement Program only if funds are available or 

committed.

Formula Capital Grants

Federal transit funds for transit operators, allocated by FTA, and used to purchase rolling stock, for example, buses and trains,

as well as to design and construct facilities, for example, shelters and transfer centers. 

G

Geographic Information System

Computerized data management system designed to capture, store, retrieve, analyze, and display geographically referenced 

information.

H

High-Occupancy Vehicle 

Vehicles carrying two or more people. The number that constitutes an HOV for the purposes of HOV highway lanes may be 

designated differently by different transportation agencies. 

Highway Safety Improvement Program

Federal-aid highway funding program that funds safety projects that are consistent with the State’s strategic highway safety plan 

and that correct or improve a hazardous road location or feature or address a highway safety problem. 

I

Inspection and Maintenance Programs

State programs that require vehicles to be inspected and repaired to comply with specific Clean Air Act requirements.
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Intelligent Transportation Systems

Electronics, photonics, communications, or information processing used singly or in combination to improve the efficiency or 

safety of a surface transportation system. The National ITS architecture is a blueprint for the coordinated development of ITS 

technologies in the U.S., providing a systems framework to guide the planning and deployment of ITS infrastructure. 

Intermodal 

The ability to connect, and connections between, differing modes of transportation. 

Intermodal Surface Transportation Efficiency Act of 1991

Legislative initiative by the U.S. Congress that restructured and authorized Federal funding for transportation programs, provided 

for an increased role for regional planning commissions and MPOs in funding decisions, and required comprehensive regional 

and Statewide long-term transportation plans. 

Interstate Highway System

The specially-designated system of highways, begun in 1956, which connects the principal metropolitan areas, cities, and 

industrial centers of the United States. Also connects the U.S. to internationally significant routes in Canada and Mexico. 

L

Land Use 

Refers to the manner in which portions of land or the structures on them are used or designated for use in a plan, for example

commercial, residential, retail, or industrial.

Long-Range Statewide Transportation Plan

The official, Statewide, multimodal transportation plan covering no less than 20 years developed through the Statewide 

transportation planning processes.

Long-Range Transportation Plan 

A document resulting from regional or Statewide collaboration and consensus on a region’s or State’s transportation system, and 

serving as the defining vision for the region’s or State’s transportation systems and services. In metropolitan areas, this is the 

official multi-modal transportation plan addressing no less than a 20-year planning horizon that is developed, adopted, and 

updated by the MPO through the metropolitan transportation planning process.

M 

Maintenance Area 

Any geographic region of the United States that the EPA previously designated as a nonattainment area for one or more 

pollutants pursuant to the CAA Amendments of 1990, and subsequently re-designated as an attainment area subject to the 

requirement to develop a maintenance plan under section 175A of the CAA, as amended.

MAP-21

Law signed on July 6, 2012 fund surface transportation programs at over $105 billion for fiscal years 2013 and 2014. MAP-21 

creates a streamlined and performance-based surface transportation program and builds on the highway, transit, bike, and 

pedestrian programs and policies established in 1991.

Metropolitan Planning Area

The geographic area determined by agreement between the metropolitan planning organization (MPO) for the area and the 

Governor, in which the metropolitan transportation planning process if carried out. 

Metropolitan Planning Organization

The policy board of an organization created and designed to carry out the metropolitan transportation planning process for 

urbanized areas with populations greater than 50,000, and designated by local officials and the Governor of the State. 

Metropolitan Transportation Plan
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The official multimodal transportation plan addressing no less than a 20-year planning horizon that is developed, adopted and 

updated by the MPO through the metropolitan transportation planning process.

Mode 

A specific form of transportation, such as automobile, subway, bus, rail, air, bicycle, or foot. 

Motor Vehicle Emissions Budget

That portion of the total allowable emissions defined in the submitted or approved control strategy implementation plan revision 

or maintenance plan for a certain date for the purpose of meeting reasonable further progress milestones or demonstrating 

attainment or maintenance of the NAAQS, for any criteria pollutant or its precursor, allocated to highway and transit vehicle use 

and emissions.

N 

National Ambient Air Quality Standards 

Federal standards that set allowable concentrations and exposure limits for various pollutants. The EPA established these 

standards pursuant to section 109 of the CAA. Air quality standards have been established for the following six criteria pollutants: 

ozone (or smog), carbon monoxide, particulate matter, nitrogen dioxide, lead, and sulfur dioxide. 

National Environmental Policy Act of 1969

Requires that any project using Federal funding or requiring Federal approval, including transportation projects, examine the 

effects of proposed and alternative choices on the environment before a Federal decision is made. 

National Highway Freight Program

Federal-aid highway funding program that funds improvements on the National Highway Freight Network (NHFN). Generally, 

NHFP funds must contribute to the efficient movement of freight on the NHFN and be identified in a freight investment plan 

included in the State’s freight plan.

National Highway Performance Program

Federal-aid highway funding program that provides support for 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 a State's asset 

management plan for the NHS.

Nonattainment Area 

A geographic region of the United States that has been designated by EPA as a nonattainment area under section 107 of the 

CAA for any pollutants for which an NAAQS exists, meaning that Federal air quality standards are not being met. 

O 

Operational and Management Strategies

Actions and strategies aimed at improving the performance of existing and planned transportation facilities to relieve congestion 

and maximize the safety and mobility of people and goods.

Ozone

Ozone is a colorless gas with a sweet odor. It is a secondary pollutant formed when VOCs and NOx combine in the presence of 

sunlight. Ozone is associated with smog or haze conditions. Although the ozone in the upper atmosphere protects from harmful 

ultraviolet rays, ground-level ozone—resulting from human and natural sources—produces an unhealthy environment.

P 

Particulate Matter (PM-10 and PM 2.5) 

Particulate matter consists of airborne solid particles and liquid droplets. Particulate matter may be in the form of fly ash, soot, 

dust, fog, or fumes. These particles are classified as coarse if they are smaller than 10 microns, or fine if they are smaller than 

2.5 microns. Coarse airborne particles are produced during grinding operations or from the physical disturbance of dust by 

natural air turbulence processes, such as wind. Fine particles can be a by-product of fossil fuel combustion, such as diesel and 

bus engines. Fine particles can easily reach remote lung areas, and their presence in the lungs is linked to serious respiratory 
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ailments such as asthma, chronic bronchitis, and aggravated coughing. Exposure to these particles may aggravate other medical

conditions such as heart disease and emphysema and may cause premature death. In the environment, particulate matter 

contributes to diminished visibility and particle deposition. 

Performance Measure 

An expression based on a metric that is used to establish targets and to assess progress toward meeting the established targets.

Planning Funds

Primary source of funding for metropolitan planning administered by the FHWA. 

Public Participation / Public Involvement

The active and meaningful involvement of the public in the development of transportation plans and programs. 

R 

Regional Councils of Government 

Regional councils of government are multipurpose, multijurisdictional, public organizations. Created by local governments to 

respond to Federal and State programs, regional councils bring together participants at multiple levels of government to foster 

regional cooperation, planning and service delivery. They may also be called planning commissions, development districts, or 

other names, and may or may not include the structure and functions of Metropolitan Planning Organizations. 

Reformulated gasoline 

Gasoline blended to burn more completely and evaporate less easily. Reformulated gasoline releases fewer volatile organic 

compounds into the air when it is burned, and ozone is reduced.

S 

SAFETEA-LU 

The Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU). SAFETEA-LU 

authorized the Federal surface transportation programs for highways, highway safety, and transit for the 5-year period 2005-

2009

Scenario Planning

Scenario planning refers to a set of planning procedures that evaluates the effects of alternative policies, plans and/or programs 

on the future a community or region. Scenario planning should provide information to decisionmakers as they develop the 

transportation plan.

Sources (Pollution)

Refers here to the origin of air contaminants. Stationary sources include relatively large, fixed facilities such as power plants, 

chemical process industries, and petroleum refineries. Area sources are small, stationary, non-transportation sources that 

collectively contribute to air pollution, and include such sources as dry cleaners and bakeries, surface coating operations, home 

furnaces, and crop burning. On-road mobile sources include on-road vehicles such as cars, trucks, and buses; and off-road 

sources include trains, ships, airplanes, boats, lawnmowers, and construction equipment. Mobile source-related criteria 

pollutants are carbon monoxide, ozone, nitrogen dioxides, and particulate matter.

Stakeholders 

Individuals and organizations involved in or affected by the transportation planning process. Stakeholders include Federal, State, 

and local officials, Metropolitan Planning Organizations, transit operators, freight companies, shippers, users of the transportation 

infrastructure, and the general public.

State Implementation Plan

The portion or portions of the implementation plan (as defined in section 302[q] of the CAA), or most recent revision thereof, 

which has been approved under section 110 of the CAA, or promulgated or approved under section 301(d) of the CAA and which 

implements the relevant requirements of the CAA. The State Implementation Plan is produced by the State environmental 

agency.
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State Infrastructure Bank

A revolving fund mechanism for financing a wide variety of highway and transit projects through loans and credit enhancement. 

SIBs are designed to complement traditional Federal-aid highway and transit grants by providing States increased flexibility for 

financing infrastructure investments. 

State Planning and Research Funds

Primary source of funding for Statewide long-range planning, administered by the FHWA. 

State Planning Work Program

The SPR Work Program is a State DOT's work program that describes what Statewide planning and research work activities the 

State will perform during the grant period.

Statewide Transportation Improvement Program 

A Statewide prioritized listing of transportation projects covering a period of four years that is consistent with the long-range 

Statewide transportation plan, metropolitan transportation plans, and transportation improvement plans, and is required for 

projects to be eligible for funding under title 23 U.S.C. and title 49 U.S.C. Chapter 53.

Surface Transportation Block Grant Program

Federal-aid highway funding program that supports a broad range of surface transportation capital needs, including many roads, 

transit, sea and airport access, vanpool, bike, and pedestrian facilities. 

T

Target

A quantifiable level of performance or condition, expressed as a value for the measure, to be achieved within a time period 

required by FHWA.

Telecommuting 

Employment via electronic communication from a physical office, either at home or at another site, instead of a traditional office. 

Title VI 

Title VI of the Civil Rights Act of 1964 prohibits discrimination in any program receiving Federal assistance (See Environmental 

Justice).

Transportation Control Measure

Any measure that is specifically committed to in a State Implementation Plan that is either one of the types of listed in section 

108 of the CAA or any other measure for the purpose of reducing emissions or concentrations of air pollutants from 

transportation sources by reducing vehicle use or changing traffic flow or congestion conditions. Notwithstanding the above, 

vehicle technology-based, fuel-based, and maintenance-based measures that control the emissions from vehicles under fixed 

traffic conditions are not TCMs.

Transportation Demand Management (TDM)

Programs designed to reduce demand for transportation through various means, such as the use of public transit and of 

alternative work hours. 

Transportation Equity Act for the 21st Century 

Legislated in 1998, TEA-21 authorized approximately $217 billion in Federal funding for transportation investment for FYs 1998-

2003 used for highway, transit, and other surface transportation programs. 

Transportation Improvement Program

A prioritized listing of transportation projects covering a period of four years that is developed by a Metropolitan Planning 

Organization as part of the metropolitan transportation planning process, consistent with the Metropolitan Transportation Plan, 

and required for projects to be eligible for funding under title 23 U.S.C. and title 49 U.S.C. Chapter 53.

Transportation Infrastructure Finance and Innovation Act of 1998
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A Federal credit program under which USDOT may provide three forms of credit assistance—secured (direct) loans, loan 

guarantees, and standby lines of credit—for surface transportation projects of national or regional significance. The fundamental 

goal is to leverage Federal funds by attracting substantial private and non-Federal co-investment in critical improvements to the 

Nation’s surface transportation system. 

Transportation Management Area 

An urbanized area with a population of 200,000 or more, as defined by the U.S. Bureau of the Census and designated by the 

Secretary of Transportation, or any additional area where Transportation Management Area designation is requested by the 

Governor and the Metropolitan Planning Organization and designated by the U.S. Secretary of Transportation. 

Transportation Systems Management & Operations 

An integrated program to optimize the performance of existing infrastructure through the implementation of systems, services, 

and projects designed to preserve capacity and improve security, safety, and reliability. The term includes improvements to the 

transportation system such as traffic detection and surveillance, arterial management, freeway management, demand 

management, work zone management, emergency management, electronic toll collection, automated enforcement, traffic 

incident management, roadway weather management, traveler information services, commercial vehicle operations, traffic

control, freight management, and coordination of highway, rail, transit, bicycle, and pedestrian operations

Trust Fund

A fund credited with receipts that are held in trust by the government and earmarked by law for use in carrying out specific 

purposes and programs in accordance with an agreement or a statute.

U

Unified Planning Work Program

A Statement of work identifying the planning priorities and activities to be carried out within a metropolitan planning area. At a 

minimum, a Unified Planning Work Program includes a description of the planning work and resulting products, who will perform 

the work, time frames for completing the work, the cost of the work, and the sources of funds.

Urbanized Area

A geographic area with a population of 50,000 or more, as designated by the U.S. Bureau of the Census. 

V

Visualization Techniques 

Methods used by States and MPOs to convey information in a clear and easily accessible format to promote improved 

understanding of existing or proposed transportation plans and programs. Such techniques can include GIS- or web-based 

surveys, inventories, maps, pictures, and/or displays identifying features such as roadway rights of way, transit, intermodal, and 

non-motorized transportation facilities, historic and cultural resources, natural resources, and environmentally sensitive areas.
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Federal Aid Transportation Programs 

Federal Transportation Programs and Revenue Sources

Mode Major Transportation Programs Federal Revenue Sources 

Administered by 

FHWA 

 National Highway Performance

 Surface Transportation Block Grant (including 

Transportation Alternatives and planning funds)

 Highway Safety Improvement

 Rail-Highway Crossings

 Congestion Mitigation and Air Quality 

Improvement 

 Metropolitan Planning

 Statewide and Nonmetropolitan Planning

 National Highway Freight

 Nationally Significant Freight and Highway 

Projects (FASTLANE grants)

 Intelligent Transportation Systems.

 Federal Lands Transportation and Tribal 

Transportation

 Ferry Boats and Terminals

 Highway Trust Fund with funds from the Federal

Motor Fuel Tax (15.44 cents/gallon; varies for 

other fuel types).

 Truck and Trailer Tax.

 Tire Tax.

 Heavy Vehicle Use Tax.

 Tire Tax Quality Improvement.

Administered by 

FTA 

 Planning Programs (Section 5305).

 Urbanized Area Formula (Section 5307).

 Fixed Guideway Capital Investment Grants 

(Section 5309). 

 Enhanced Mobility of Seniors and Individuals 

with Disabilities (Section 5310).

 Formula Grants for Rural Areas (Section 5311).

 CMAQ (only when funds are flexed from FHWA).

 Public Transportation Emergency Relief Program 

(Section 5324).

 Public Transportation Safety Program (Section 

5329). 

 State of Good Repair Grants (Section 5337).

 Bus and Bus Facilities Formula Grants (Section 

5339).

 Mass Transit Account of the Highway Trust Fund,

with funds from motor fuel tax (2 cents/gallon).

 General Fund.

 Interest.

Mode Major Transportation Programs Federal Revenue Sources 

Administered by 

FAA 

 Federal Airport and Airway Trust Fund, the source 

for airport development grants and airport

planning grants. 

 Aviation Fuel Tax.

 Air Freight Tax.

 Passenger Ticket Tax.

 International Departure Tax.

Administered by 

FHWA, FRA 

 FRA grants for planning, rail service continuation, 

rehabilitation, and provision of substitute service.

 General Fund.
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Mode Major Transportation Programs Federal Revenue Sources 

Administered by 

FHWA 

 National Highway Performance

 Surface Transportation Block Grant (including 

Transportation Alternatives and planning funds)

 Highway Safety Improvement

 Rail-Highway Crossings

 Congestion Mitigation and Air Quality 

Improvement 

 Metropolitan Planning

 Statewide and Nonmetropolitan Planning

 National Highway Freight

 Nationally Significant Freight and Highway 

Projects (FASTLANE grants)

 Intelligent Transportation Systems.

 Federal Lands Transportation and Tribal 

Transportation

 Ferry Boats and Terminals

 Highway Trust Fund with funds from the Federal

Motor Fuel Tax (15.44 cents/gallon; varies for 

other fuel types).

 Truck and Trailer Tax.

 Tire Tax.

 Heavy Vehicle Use Tax.

 Tire Tax Quality Improvement.

Administered by 

FTA 

 Planning Programs (Section 5305).

 Urbanized Area Formula (Section 5307).

 Fixed Guideway Capital Investment Grants 

(Section 5309). 

 Enhanced Mobility of Seniors and Individuals 

with Disabilities (Section 5310).

 Formula Grants for Rural Areas (Section 5311).

 CMAQ (only when funds are flexed from FHWA).

 Public Transportation Emergency Relief Program 

(Section 5324).

 Public Transportation Safety Program (Section 

5329). 

 State of Good Repair Grants (Section 5337).

 Bus and Bus Facilities Formula Grants (Section 

5339).

 Mass Transit Account of the Highway Trust Fund,

with funds from motor fuel tax (2 cents/gallon).

 General Fund.

 Interest.

Administered by 

FRA 

 Magnetic levitation transportation technology 

deployment.

 High-speed rail.

 Amtrak.

 Highway Trust Fund.

 General Fund, which relies on specific 

capital appropriations.

 Passenger fares.

 Food and beverage revenue.

Administered by

MARAD & FHWA 

 Army Corps of Engineers for construction, 

operation, and maintenance of waterways, locks 

and harbors.

 Construction of ferry boats and terminal facilities.

 Fuel taxes paid by inland water carriers.

 Ad valorem taxes paid by users of ports.

 Highway Trust Fund.
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Major Federal-Aid Highway Programs Under the FAST Act

For details on the programs below, see A Guide to Federal-Aid Programs and Projects: 

https://www.fhwa.dot.gov/federalaid/projects.cfm. 

Program Eligible Uses Federal Share of 

Funded Projects

Congestion Mitigation 

and Air Quality 

Improvement 

Funds may be used for a transportation project or program that will 

contribute to meeting the requirements of the Clean Air Act, and that 

is included in the metropolitan planning organization’s (MPO’s) 

current transportation plan and transportation improvement program 

(TIP) or, in areas without an MPO, the current state transportation 

improvement program (STIP).

80 percent

Highway Safety 

Improvement

Funds be used for safety projects that are consistent with the State’s 

strategic highway safety plan (SHSP) and that correct or improve a 

hazardous road location or feature or address a highway safety 

problem. The FAST Act clarifies the range of eligible HSIP projects, 

limiting eligibility to activities listed in statute, most of which are 

infrastructure-related. 

90 percent

Metropolitan 

Planning 

All planning activities are eligible (e.g., modeling, air quality analysis, 

public outreach, environmental analysis). 

80 percent (unless the 

Secretary determines that 

changing this contribution 

level is warranted)

National Highway 

Freight Program

Eligible activities include construction, operational improvements, 

freight planning, and performance measurement. NHFP funds must 

contribute to the efficient movement of freight on the National 

Highway Freight Network and be identified in a freight investment plan 

included in a State’s freight plan. Up to 10 percent of a State’s NHFP 

funds may be used for public or private freight rail, water facilities 

(including ports), and intermodal facilities.

80 percent

National Highway 

Performance 

Program

Projects, part of a program of projects, or an eligible activity 

supporting progress toward the achievement of national performance 

goals for improving infrastructure condition, safety, congestion 

reduction, system reliability, or freight movement on the National 

Highway System. 

80 percent

Surface 

Transportation Block 

Grant Program

Broad range of surface transportation capital needs, including many 

roads, transit, sea, airport access, vanpool, bike, and pedestrian 

facilities. 

80 percent

Federal Transit Administration Grant Programs Under the FAST Act

For details on the programs below, see https://www.transit.dot.gov/funding/grants/fta-program-fact-sheets-under-fastact.

Program Eligible Uses Federal Share of Funded

Projects/ Services

Planning Programs

(Section 5305)

Funding to develop multimodal transportation plans and programs; 

plan, design and evaluate a public transportation project; and conduct 

technical studies related to public transportation in metropolitan areas 

and States that is cooperative, continuous, and comprehensive, 

resulting in long-range plans and short-range programs of 

transportation investment priorities.

80 percent.
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Program Eligible Uses Federal Share of Funded

Projects/ Services

Urbanized Area 

Formula Grants

(Section 5307)

Grants to Urbanized Areas (UZA) and Governors for public 

transportation capital, planning, passenger facilities, job access and 

reverse commute projects, as well as operating expenses in certain 

circumstances. All preventive maintenance and some Americans with 

Disabilities Act (ADA) complementary paratransit service costs are 

considered capital costs.

Up to 80 percent of the net project 

cost for capital assistance, up to 50 

percent of the net project cost for 

operating assistance. May be 90 

percent for the cost of vehicle-related 

equipment attributable to compliance 

with ADA and the Clean Air Act. May 

also be 90 percent for projects or 

portions of projects related to 

bicycles.

Fixed Guideway 

Capital Investment 

Grants 

(Section 5309)

Fixed-guideway investments such as new and expanded rapid rail, 

commuter rail, light rail, streetcars, bus rapid transit, and ferries, as well 

as corridor-based bus rapid transit investments that emulate the 

features of rail. There are four categories of eligible projects under this

program: New Starts, Small Starts, Core Capacity, and Programs of 

Interrelated Projects. This discretionary grant program is unlike most 

others in government. Instead of an annual call for applications and 

selection of awardees, the law requires that projects seeking funding 

complete a series of steps over several years to be eligible for funding.

Maximum share is 80 percent, but 

awards typically involve a lower 

share.

Enhanced Mobility of 

Seniors & Individuals 

with Disabilities

(Section 5310)

Funds for private nonprofit programs to serve the special needs of 

transit-dependent populations. Eligible projects include both traditional 

capital investment and nontraditional investment beyond the Americans 

with Disabilities Act (ADA) complementary paratransit services. At least 

55 percent of program funds must be used on capital or “traditional” 

Section 5310 projects. The remaining 45 percent is for other 

“nontraditional” projects.

80 percent.

Formula Grants for 

Rural Areas

(Section 5311)

Capital, planning, and operating funding assistance to states to support 

public transportation in rural areas with populations less than 50,000, 

where many residents often rely on public transit to reach their 

destinations. Eligible projects include planning, capital, operating, job 

access and reverse commute projects, and the acquisition of public 

transportation services.

Federal share is 80 percent for capital 

projects, 50 percent for operating 

assistance, and 80 percent for 

Americans with Disabilities Act (ADA) 

non-fixed-route paratransit service, 

using up to 10 percent of a recipient’s 

apportionment.

Public Transportation 

Emergency Relief 

Program

(Section 5324)

Protection, repair, and/or replacement of equipment and facilities that 

may suffer or have suffered serious damage as a result of an 

emergency, including natural disasters such as floods, hurricanes, and 

tornadoes. The program also improves coordination between DOT and 

the Department of Homeland Security to expedite assistance to public 

transit providers in times of disasters and emergencies.

80 percent, although FTA may waive 

the local match. Funds will be 

appropriated by Congress as 

necessary.

State of Good Repair 

Grants (Section 5337)

Provides capital assistance for maintenance, replacement, and 

rehabilitation projects of high-intensity fixed guideway and bus systems 

to help transit agencies maintain assets in a state of good repair. 

Additionally, grants are eligible for developing and implementing transit 

asset management plans.

80 percent of the net capital project 

cost, unless the grant recipient 

requests a lower percentage.

Bus and Bus Facilities 

Grants (Section 5339)

Replacement, rehabilitation, and purchase of buses and related 

equipment. Construction of bus-related facilities including technological 

changes or innovations to modify low- or no-emission vehicles or 

facilities.

80 percent of the net capital project 

cost, unless the grant recipient 

requests a lower percentage. 
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Funding Transferability Under the FAST Act

Program Transferability

Congestion Mitigation and Air Quality

Improvement (CMAQ) 

Up to 50 percent of CMAQ funds (excluding set-asides) may be transferred to the 

NHPP, NHFP, STBG, Transportation Alternatives, and HSIP.

Highway Safety Improvement (HSIP)

Up to 50 percent of HSIP funds made available each fiscal year may be 

transferred to the NHPP, NHFP, STBG, Transportation Alternatives, and CMAQ 

Program. 

National Highway Freight Program (NHFP)

Up to 50 percent of NHFP funds made available each fiscal year may be 

transferred to the NHPP, STBG, Transportation Alternatives, HSIP, and CMAQ. 

NHFP funds set-aside for Metropolitan Planning are not transferable to other 

apportioned programs.

National Highway Performance Program 

(NHPP)

Up to 50 percent of NHPP funds made available each fiscal year may be 

transferred to the NHFP, STBG, Transportation Alternatives, HSIP, and CMAQ.

Surface Transportation Block Grant 

(STBG)

Up to 50 percent of STBG funds made available each fiscal year may be 

transferred to NHPP, NHFP, HSIP, and CMAQ. STBG funds suballocated under 

23 U.S.C. 133(d)(1)(A) may not be transferred.

Innovative Highway Financing Strategies and Tools 

Cash Flow Approaches 

Tool Approach

Advance Construction 

Allows States to independently raise upfront capital required for a project and 

preserve eligibility for future Federal funding for the project. Projects must be 

designated as advance construction projects to be eligible.

Bond Cost Reimbursement: Grant 

Anticipation Revenue Vehicle (GARVEE) 

State-issued short-term note or long-term bond that uses future Federal funds to 

support payment of principal and interest. Issuance and insurance costs are also 

eligible. This is generally used in combination with advance construction. 

Flexible: Federal Land Management 

Agency Funds 

Funds from other Federal agencies may count toward the non-Federal matching 

share for recreational trails and transportation alternatives projects. 

Flexible: Federal Lands Funds from DOT’s Federal Lands Highway Program may count toward nonFederal match for projects within or providing access to Federal or Indian lands. 

Flexible: Publicly Owned Land Permits donations of publicly owned property to count toward non-Federal match 

on all Federal-aid highway projects. 

Partial Conversion of 

Advance Construction

Form of advance construction; State only converts, obligates, or receives 

reimbursement for part of its funding for an eligible project in a given year. States 

no longer have to wait until the full amount of obligation authority is available. 

Program Level For STBG projects, allows Federal share for funds to be matched across the full 

program, not on a project-by-project basis. 
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77

Tailored (Variable) Match Allows non-Federal share to vary over project life, so long as the ultimate matching 

share is preserved over time.

Tolls and Other Income-Generating Tools

Right-of-Way Income 

This allows income from right-of-way sales and leases to be used for Title 23 

(highway) purposes, as currently allowed for airspace income. ISTEA Section 

1044 Toll allows States to receive investment credit for certain toll revenue 

Investment Credits expenditures, which can be applied toward the non-Federal

matching share of all ISTEA programs. 

Leveraging Tools 

Bonds and Debt Costs, Issuance Allows States to use Federal funds for bond principal, interest Instrument 

Financing costs, and insurance on eligible projects.

Federal Share on Toll Projects

Expanded use of Federal funds for toll projects to include construction of new 

facilities, resurfacing, restoration, and rehabilitation of existing facilities and 

conversion of free facilities. Private facilities are now also eligible.

Flexible Match Allows States to apply private donations of materials, labor, or assets and private 

funds toward the State or local match for Federal-aid projects. 

ISTEA Section 1012 Loans

Removes the limitation that Federal funds can be used only once. Allows States 

to loan Federal funds to leverage any eligible investment; the State can use the 

funds again once they have been paid back.

Credit Tools

Rail Credit Pilot Provides direct Federal loans and loan guarantees for rail and intermodal 

projects. 

State Infrastructure Bank 

States can allocate up to 10 percent of their ISTEA/TEA-21 apportionment to 

capitalize the State bank. The bank can provide loans for projects and can be 

structured as a revolving loan fund, with loans recycled for new projects.

State infrastructure banks can provide third-party guarantees to projects to 

ensure that there is sufficient revenue to pay project costs or debt service.

Surface Transportation Credit Program This provides direct Federal loans, loan guarantees, and lines of credit for large 

surface transportation programs of national significance.

Transportation Infrastructure Finance 

and Innovation Act of 1998 (TIFIA)

A Federal credit program under which the USDOT may provide three forms of 

credit assistance — secured (direct) loans, loan guarantees, and standby lines 

of credit — for surface transportation projects of national or regional 

significance. The fundamental goal is to leverage Federal funds by attracting 

substantial private and non-Federal co-investment in critical improvements to 

the Nation’s surface transportation system. 
The Transportation Planning Process: Key Issues

2017 Update

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