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NO. 64. AN ACT RELATING TO THE STATE’S TRANSPORTATION CAPITAL PROGRAM AND PROJECT DEVELOPMENT PLAN.

(H.488)

It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1. TRANSPORTATION CAPITAL PROGRAM FOR 2002; PROJECT DEVELOPMENT PLAN FOR 2003-2006; APPROVAL OF PROJECT CANCELLATIONS

The transportation capital program for fiscal year 2002 and project development plan for fiscal years 2003-2006, appended to the agency of transportation’s proposed fiscal year 2002 budget, as amended by this act, are adopted. The program and plan are incorporated into this act by reference. The transportation capital program and project development plan hereby adopted supersede all previous transportation capital programs and project development plans.

* * * Town Highway Bridge Program * * *

Sec. 2. TOWN HIGHWAY BRIDGE PROGRAM; MODIFICATIONS

The following modifications are made to the town highway bridge program projects identified by the agency of transportation as ready to advance to construction for fiscal year 2002:

(1) The schedule for the town highway bridge project Brandon, BHZ 1443(22), Page 11, is amended as follows: in fiscal year 2002, by adding construction funds of $218,750, by deleting total funds of $5,250 and inserting $224,000, by deleting state funds of $787 and inserting $33,600, by deleting federal funds of $4,200 and inserting $179,200, and by deleting local funds of $263 and inserting $11,201.

(2) The schedule for the town highway bridge project Brattleboro, BHF 2000(17), Page 12, is amended as follows: in fiscal year 2002, by adding construction funds of $243,500, by deleting total funds of $11,500 and inserting $255,000, by deleting state funds of $1,732 and inserting $38,257, by deleting federal funds of $9,240 and inserting $204,040, and by deleting local funds of $578 and inserting $12,753.

(3) The schedule for the town highway bridge project Brattleboro, BHF 2000(22), Page 1, development and evaluation, is amended as follows: by adding construction and total funds of $450,000, by adding state funds of $67,500, by adding federal funds of $360,000, and by adding local funds of $22,500.

(4) The schedule for Cambridge, Project # BHO 1448(30), Page 15, is amended as follows: in fiscal year 2003, by deleting construction and total funds of $35,000 and inserting $255,500, by deleting state funds of $5,250 and inserting $38,325, by deleting federal funds of $28,000 and inserting $204,400, by deleting local funds of $1,750 and inserting $12,775, and in fiscal year 2004, by deleting all funding.

(5) The schedule for Cambridge, Project # BRO 1448(21), Page 16, is amended as follows: in fiscal year 2003, by deleting construction and total funds of $210,000 and inserting $651,000, by deleting state funds of $31,500 and inserting $97,650, by deleting federal funds of $168,000 and inserting $520,800, by deleting local funds of $10,500 and inserting $32,550, and in fiscal year 2004, by deleting all funding.

(6) The schedule for the town highway bridge project Chester BHO 1442(32), Page 21, is amended as follows: by adding construction and total funds of $82,500, by adding state funds of $12,375, by adding federal funds of $66,000, and by adding local funds of $4,125.

(7) The schedule for the town highway bridge project Clarendon, BHO 1443(39), Page 24, is amended as follows: by adding construction and total funds of $62,500, by adding state funds of $9,375, by adding federal funds of $50,000, and by adding local funds of $3,125.

(8) The schedule for the town highway bridge project Halifax, BRZ 1442(18), Page 35, is amended as follows: by adding construction and total funds of $600,000, by adding state funds of $60,000, by adding federal funds of $480,000, and by adding local funds of $60,000.

(9) The schedule for the town highway bridge project Hardwick, BRO 1447(21), Page 36, is amended as follows: by adding construction and total funds of $142,500, by adding state funds of $14,250, by adding federal funds of $114,000, and by adding local funds of $14,250.

(10) The schedule for the town highway bridge project Johnson, BHO 1448(18), Page 44, is amended as follows: by adding construction and total funds of $287,500, by adding state funds of $43,125, by adding federal funds of $230,000, and by adding local funds of $14,375.

(11) The schedule for the town highway bridge project Ludlow, BHO 1443(40), Page 48, is amended as follows: by adding construction and total funds of $56,250, by adding state funds of $8,438, by adding federal funds of $45,000, and by adding local funds of $2,813.

(12) The schedule for the town highway bridge project Lyndon, BHO 1447(26), Page 49, is amended as follows: by adding construction and total funds of $197,500, by adding state funds of $29,625, by adding federal funds of $158,000, and by adding local funds of $9,875.

(13) The schedule for the town highway bridge project Middlebury, BRZ 1445(19), Page 52, is amended as follows: by adding construction and total funds of $201,000, by adding state funds of $20,100, by adding federal funds of $160,800, and by adding local funds of $20,100.

(14) The schedule for the town highway bridge project Mt. Holly, BRO 1443(30), Page 60, is amended as follows: by adding construction funds of $400,000, by deleting total funds of $4,670 and inserting $404,670, by deleting state funds of $467 and inserting $40,467, by deleting federal funds of $3,736 and inserting $323,736, and by deleting local funds of $467 and inserting $40,467.

(15) The schedule for the town highway bridge project Northfield, BRO 1446(23), Page 62, is amended as follows: by adding construction funds of $260,000, by deleting total funds of $10,500 and inserting $270,500, by deleting state funds of $1,050 and inserting $27,050, by deleting federal funds of $8,400 and inserting $216,400, and by deleting local funds of $1,050 and inserting $27,050.

(16) The schedule for the town highway bridge project Reading, BRZ 1444(23), Page 69, is amended as follows: by adding construction and total funds of $141,250, by adding state funds of $14,125, by adding federal funds of $113,000, and by adding local funds of $14,125.

(17) The schedule for the town highway bridge project Richford Village, BHF 0302(3)S, Page 71, is amended as follows: by adding construction and total funds of $207,500, by adding state funds of $31,125, by adding federal funds of $166,000, and by adding local funds of $10,375.

(18) The schedule for the town highway bridge project Rochester, BRZ 1444(20), Page 75, is amended as follows: by adding construction funds of $287,500, by deleting total funds of $12,640 and inserting $300,140, by deleting state funds of $1,264 and inserting $30,014, by deleting federal funds of $10,112 and inserting $240,112, and by deleting local funds of $1,264 and inserting $30,014.

(19) The schedule for the town highway bridge project Rockingham, BRF 0129(3)S, Page 77, is amended as follows: in fiscal year 2002, by adding construction funds of $200,000, by deleting total funds of $27,300 and inserting $227,300, by deleting state funds of $2,730 and inserting $22,730, by deleting federal funds of $21,840 and inserting $181,840, and by deleting local funds of $2,730 and inserting $22,730.

(20) The schedule for Wilmington, Project # TH3 9410, Page 102, is amended as follows: in fiscal year 2002, by deleting all construction, total, state and federal funds.

* * * Project Development; Intermodal and Multimodal Facilities * * *

Sec. 3. PROJECT DEVELOPMENT; INTERMODAL AND MULTIMODAL

FACILITIES PROGRAM

The following modifications are made to the project development intermodal and multimodal facilities program:

(1) The schedule for Burlington, Page 2, is amended as follows: in fiscal year 2002, by deleting state funds of $100,000, and by deleting federal funds of $1,700,000 and inserting $1,800,000. Should the Burlington Intermodal Facility Project be ready for construction in fiscal year 2002, the agency of transportation shall utilize toll credits for the state match requirements. If toll credits are utilized in fiscal year 2002 for this project, it is the intention of the general assembly to reimburse the city of Burlington $100,000 of state funds in fiscal year 2003.

* * * Rail * * *

Sec. 4. RAIL

The following modifications are made to the rail program:

(1) The schedule for the statewide development and evaluation, Page 15, is amended as follows: for fiscal year 2002, by deleting "other", total and state funds of $500,000 and inserting $730,000. The listing of development and evaluation projects on Page 25 is revised as follows: by amending Rutland Railyard Relocation – VTR, as follows: by deleting total and state funds of $150,000 and inserting $380,000. The sum of $380,000 appropriated to the agency of transportation for railroad purposes shall be reallocated to the City of Rutland for continued permit and design development. The agency of transportation shall appoint a project manager to work in conjunction with a municipal project manager, appointed and funded by the City of Rutland, on the Rutland railyard relocation project to continue design and permitting activities. The agency and the City shall prepare and execute a memorandum of understanding, defining the roles and responsibilities of the two project managers and defining the activities of the project. A recommendation for approval by the secretary for further action on this project shall be made by the project managers.

(2) A new project is added for improvements to the state-owned railroad infrastructure as part of the overall goal of restoring passenger rail service and improving freight service along the Albany-Bennington-Rutland-Burlington (ABRB) corridor. The new project, authorized for preliminary engineering and construction in fiscal year 2002, shall consist of $2,000,000 in federal funds and $650,000 in state funds for track upgrades to improve both freight and passenger rail service between Middlebury and Charlotte.

(3) The description for Barre City, Page 1, is deleted, and the following description added: The Barre railyard project is to purchase property to accommodate expanded rail activities in the yard in coordination with a Barre City project, including reconstructing the bridge over the Stevens Branch and associated track work.

(4) By deleting the statewide project for the disposal of used ties on the state-owned rail system, Page 18.

* * * Roadway Program * * *

Sec. 5. PROJECT DEVELOPMENT; ROADWAY PROGRAM

The following modifications are made to the project development roadway program projects identified by the agency of transportation as ready to advance to construction for fiscal year 2002:

(1) The schedule for Barre City, STPG 6000(16)S, Page 2, is amended as follows: in fiscal year 2002, by adding construction, total and federal funds of $645,750.

(2) The schedule for Bethel, STP 0176(2), Page 4, is amended as follows: in fiscal year 2002, by adding construction and total funds of $1,800,000, by adding state and local funds of $180,000, and by adding federal funds of $1,440,000.

(3) The schedule for Grafton/Rockingham, STP 0126(4)S, Page 16, is amended as follows: in fiscal year 2002, by adding construction and total funds of $262,500, by adding state funds of $52,500, and by adding federal funds of $210,000.

(4) The schedule for Searsburg-Wilmington, Project # NHF 010-1(18), Page 27, is amended as follows: in fiscal year 2002, by deleting construction funds of $3,675,000 and inserting $1,000,000, by deleting total funds of $3,759,000 and inserting $1,084,000, by deleting state funds of $756,000 and inserting $216,800, and by deleting federal funds of $3,003,000 and inserting $867,200.

(5) The schedule for St. Albans Town, STPG SGNL(7)S, Page 31, is amended as follows: in fiscal year 2002, by adding construction, total and federal funds of $210,000.

(6) The schedule for Wallingford, NHG SNGL(6)S, Page 39, is amended as follows: in fiscal year 2002, by adding construction, total and federal funds of $73,435.

(7) The schedule for Wallingford, STP ADAS(), Page 40, is amended as follows: in fiscal year 2002, by adding construction and total funds of $101,404, by adding state funds of $20,281, and by adding federal funds of $81,123.

* * * Park-and-Ride * * *

Sec. 6. PARK-AND-RIDE

The following modifications are made to the park-and-ride program:

(1) The schedule for statewide Park-and-Ride, Page 1, is amended as follows: in fiscal year 2002, by adding construction funds of $1,000,000, by deleting total funds of $482,177 and inserting $1,482,177, by deleting federal funds of $482,177 and inserting $1,482,177.

* * * Public Transit * * *

Sec. 7. PUBLIC TRANSPORTATION

The following modifications are made to the public transportation program:

(1) The schedule for Statewide Three-Year Demonstration (Operating), Page 2, is amended as follows: in fiscal year 2002, by deleting "other" and total funds of $728,250 and inserting $568,250; by deleting federal funds of $582,600 and inserting $454,600; and by deleting local funds of $145,650 and inserting $113,650.

* * * Cancellation of Project * * *

Sec. 8. CANCELLATION OF PROJECT

Pursuant to Sec. 2 of No. 156 of the Acts of 2000 (advancement or cancellation of projects), the general assembly approves cancellation of the following project:

(1) Pedestrian and Bike Facilities – Rutland, Project # STP BIKE ( ).

* * * Transportation Program; Advancement, Cancellation, and Delay * * *

Sec. 9. 19 V.S.A. § 10g is amended to read:

§ 10g. ANNUAL REPORT; TRANSPORTATION CAPITAL PROGRAM; PROJECT DEVELOPMENT PLAN; ADVANCEMENTS, CANCELLATIONS AND DELAYS

(a) The *[state’s transportation]* agency of transportation’s project activities and expenditures in implementing the one-year transportation capital program shall *[be guided by a]*, except for subsection (f) of this section, adhere to the one-year transportation capital program *[consistent with the directives of]* as set forth by the general assembly, the planning process established by Act No. 200 of the Acts of 1988 (1987 Adjourned Session), as codified in 3 V.S.A. chapter 67 and 24 V.S.A. chapter 117, the statements of policy set forth in sections 10b-10f of this title, and the long-range systems plan, corridor studies and project priorities developed through the capital planning process under section 10i of this title.

(b) The agency *[also]* shall prepare a project development plan which *[indicates]* assists the general assembly in the establishment of the state’s *[anticipated]* transportation activities over the second through fifth years following the period covered by the one-year transportation capital program.

(c) The agency shall develop a program for implementing an infrastructure preservation plan which contains performance levels, goals, activities and their costs in the transportation capital program and project development plan.

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(c)]*(d) Each year following enactment of a transportation capital program under this section, the agency shall prepare and make available to the public *[a consolidated]* the one-year transportation capital program *[as provided by subsection (a) of this section]* and *[proposed]* four-year project development plan *[as provided by subsection (b) of this section, incorporating any adjustments and amendments resulting from legislative action]* established by the general assembly. The resulting document shall be entered in the permanent records of the agency and of the board, and shall constitute the state’s official transportation construction program and project development plan.

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(d)]*(e) Each year after a transportation capital program as provided by this section has been enacted and before November 1, the agency shall participate in five or more public hearings, in partnership with Vermont’s regional planning commissions and shall hold at least one statewide hearing providing an opportunity for input from different areas of the state, to receive public comments regarding the one-year transportation capital program under subsection (a) of this section enacted by the last session of the general assembly, and the corresponding anticipated four-year capital development program under subsection (b) of this section which is proposed by the agency, both programs to be presented in the context of the long-range systems plan as provided by section 10i of this title. The agency shall provide the board with advance notice of each public hearing and the opportunity for board members to attend. A record of the hearing or hearings, including any recommendations and comments, shall be prepared by the agency of transportation and submitted to the house and senate committees on transportation and used by the agency for future use in its preparation of transportation capital program proposals.

(f) Should capital projects in the capital program for the current fiscal year be delayed because of unanticipated problems with permitting, right-of-way acquisition, construction, local concern or availability of federal or state funds, the secretary is authorized to advance projects in the approved capital program and project development plan. The secretary is further authorized to undertake projects to resolve emergency or safety issues. Should an approved project in the current transportation capital program require additional funding to maintain the approved schedule as outlined in the one-year capital program, the agency is authorized to allocate the necessary resources. The secretary shall notify, in the district affected, the regional planning commission, the municipality, legislators, and members of the senate and house committees on transportation of any significant change in project schedules in the approved one-year capital program. No project shall be cancelled without the approval of the general assembly.

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(e)]*(g) For the purpose of enabling the state, without delay, to take advantage of economic development proposals that increase jobs for Vermonters, a transportation project certified by the governor as essential to the economic infrastructure of the state economy, or a local economy, may be approved for construction by a committee comprised of the joint fiscal committee meeting with the chairs of the transportation committees, or their designees without explicit project authorization through an enacted transportation capital program and project development plan, in the event that such authorization is otherwise required by law.

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(f)]*(h) The agency of transportation, in coordination with the agency of natural resources and the division for historic preservation shall prepare and implement a plan for advancing approved projects contained in the one-year capital program. The plan shall include the assignment of a project manager from the agency of transportation for each project. Additionally, the agency of transportation, the agency of natural resources and the division for historic preservation shall set forth provisions for expediting the permitting process and establishing a means for evaluating each project during concept design planning if more than one agency is involved to determine whether it should be advanced or deleted from the program.

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(g)]*(i) In implementing the project manager system, the agency shall include, but not be limited to, use of critical path techniques.

* * * Federal Funds Transfer * * *

Sec. 10. FEDERAL FUNDS TRANSFER

Any federal funds transferred to the 23 U.S.C. § 402 (highway safety) program pursuant to 23 C.F.R. § 1270.6 (failure of state to enact and enforce open container laws) or 1275.6 (failure of state to enact and enforce repeat intoxicated driver laws) shall be used exclusively by the agency of transportation for the 23 U.S.C. § 152 (hazard elimination) program. The governor’s highway safety council shall work cooperatively with the agency of transportation in administering these funds.

* * * Transportation Board * * *

Sec. 11. 19 V.S.A. § 5(d) is amended to read:

(d) The board shall:

* * *

(7) in coordination with the agency, hold public hearings for the purpose of obtaining public comment on the development of state transportation policy, the mission of the agency, and state transportation planning, capital programming, and program implementation; *[and]*

(8) hear and determine disputes involving the decision of a selectboard under subdivision 302(a)(3)(B) or subsection 310(a) of this title not to plow and make negotiable a class 2 or 3 town highway or section of a highway during the winter; and

(9) when requested by the secretary, conduct public hearings on matters of public interest, after which it shall transmit its findings and recommendations to the secretary and the chairs of the senate and house committees on transportation in a report which shall be a public document.

* * * Special Projects Unit; Bennington Bypass * * *

Sec. 12. BENNINGTON BYPASS

The agency of transportation is directed to complete the conceptual design of highway project Bennington Bypass South NHF 019-1(4). The agency shall not incur expenditures for conceptual design in excess of $200,000.00 in any fiscal year for the Bennington Bypass South project. Right-of-way for this project shall not be acquired without approval of the general assembly. The agency is further directed to design and construct only a partial interchange with the existing Vermont Route 9 and to make the necessary improvements to Vermont Route 9 to accommodate the partial interchange as part of the Bennington Bypass North NHF 019-1(5) project. All design activity on the Bennington Bypass North project south of Route 9 shall be postponed until approved by the general assembly.

* * * State Aid for Town Highway System * * *

Sec. 13. 19 V.S.A. § 306 is amended to read:

§ 306. APPROPRIATION; STATE AID FOR TOWN HIGHWAYS

(a) General state aid to town highways. An annual appropriation to class 1, 2 and 3 town highways shall be made. This appropriation shall increase or decrease over the previous year’s appropriation by the same percentage as any increase or decrease in the transportation agency’s total appropriations funded by transportation fund revenues, excluding the town highway appropriations for that year. The funds appropriated shall be distributed to towns as follows:

(1) six percent of the state’s annual town highway appropriation shall be apportioned to class 1 town highways. The apportionment for each town shall be that town’s percentage of class 1 town highways of the total class 1 town highway mileage in the state;

(2) forty-four percent of the state’s annual town highway appropriation shall be apportioned to class 2 town highways. The apportionment for each town shall be that town’s percentage of class 2 town highways of the total class 2 town highway mileage in the state;

(3) fifty percent of the state’s annual town highway appropriation shall be apportioned to class 3 town highways. The apportionment for each town shall be that town’s percentage of class 3 town highways of the total class 3 town highway mileage in the state;

(4) moneys apportioned under subdivisions (1), (2), and (3) shall be distributed to each town in quarterly payments beginning July 15 in each year;

(5) each town shall use the monies apportioned to it solely for town highway construction, improvement, and maintenance purposes or as the nonfederal share for public transit assistance. The *[selectmen]* members of the selectboard shall be personally liable to the state, in a civil action brought by the attorney general, for making any unauthorized expenditures from money apportioned to the town under this section.

(b) Supplemental state aid for multilane class 1 town highways. There shall be an annual appropriation for supplemental aid to municipalities having class 1 town highways with more than two lanes. The agency shall distribute this aid on the basis of its measurement of the additional class 1 town highway lanes. The secretary may adopt rules to govern apportionment of supplemental aid.

(c) State aid for town highway bridges. There shall be an annual appropriation for town bridge engineering services and for aid in maintaining or constructing bridges having a span of six feet or more on class 1, 2, and 3 town highways. Annually the agency shall distribute these funds according to a program plan based upon applications submitted by the towns. With the approval of the agency, funds may be used for alternatives which eliminate the need for a bridge or bridges, including, but not limited to, construction or reconstruction of highways, purchase of parcels of land that would be landlocked by closure of a bridge or bridges, payment of damages for loss of highway access and substitution of other means of access.

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(c)]*(d) State aid for nonfederal disasters. There shall be an annual appropriation for emergency aid in repairing, building, or rebuilding class 1, 2, or 3 town highways and bridges damaged by natural or man-made disasters *[of such magnitude that the state aid is both reasonable and necessary to preserve the public good. Emergency payments shall be approved by the agency]*. The secretary of transportation shall file an annual report with the house and senate committees on transportation, detailing the expenditure of funds under this subsection. Eligibility for use of emergency aid under this appropriation shall be subject to the following criteria:

(1) The secretary of transportation shall determine that the disaster is of such magnitude that state aid is both reasonable and necessary to preserve the public good;

(2) The disaster shall not qualify for major disaster assistance from the Federal Emergency Management Agency (FEMA) under the Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. §§ 5121 et seq., or from the Federal Highway Administration (FHWA) under the 23 C.F.R. Part 668 emergency relief program for federal-aid highways;

(3) Towns shall be eligible for reimbursement for repair or replacement costs of either up to 90 percent of the eligible repair or replacement costs or the eligible repair or replacement costs, minus an amount equal to 10 percent of the overall total highway budget, minus the town’s winter maintenance budget, whichever is greater;

(4) For towns that have adopted road and bridge standards, eligibility for reimbursement for repair or replacement of infrastructure shall be to those standards. For towns that have not adopted these standards, eligibility for reimbursement for repair or replacement of infrastructure shall be limited to the specifications of the infrastructure that preexisted the emergency event; however, the repair or replacement shall be to standards approved by the agency of transportation; and

(5) Such additional criteria as may be adopted by the agency of transportation through rulemaking under 3 V.S.A. chapter 25.

(e) State aid for town highway structures. There shall be an annual appropriation for grants to municipalities for maintenance, including actions to extend life expectancy, and construction of bridges *[and]*, culverts *[on]* and other structures, including causeways and retaining walls, intended to preserve the integrity of the traveled portion of class 1, 2 and 3 town highways. The appropriation shall be allocated by the secretary after consideration of applications submitted by the towns.

(f) *[There shall be an annual appropriation for grants to municipalities for reconstruction or resurfacing of class 2 town highways. The appropriation shall be allocated by the secretary after consideration of applications submitted by the towns.

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(g) *[There shall be an annual appropriation for supplemental aid to municipalities having class 1 town highways with more than two lanes. The agency shall distribute this aid on the basis of its measurement of the additional class 1 town highway lanes. The secretary may adopt rules to govern apportionment of supplemental aid.

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(h) Class 2 town highway roadway program. There shall be an annual appropriation for grants to municipalities for resurfacing, rehabilitation or reconstruction of paved or unpaved class 2 town highways *[that are rural major connectors]*. The appropriation shall be allocated by the secretary after consideration of applications submitted by the municipalities.

(i) *[There shall be an annual appropriation for grants to municipalities to extend the life expectancies of town highway bridges. The appropriation shall be allocated by the secretary after consideration of applications submitted by the municipalities.

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(j) Annual town plan. Within 60 days of adoption of the town’s *[annual meeting]* municipal budget, the selectboard of each town shall forward to the agency on forms provided by *[it]* the agency a plan for the maintenance and construction of all highways under *[their]* the selectboard’s control for the following year. The plan shall be made with the advice of the district transportation administrator.

Sec. 14. 19 V.S.A. § 307 is amended to read:

§ 307. MINIMUM TOWN BUDGET

Each town shall annually appropriate a highway budget equivalent to or greater than a sum of at least *[$50.00]* $300.00 per mile for each mile of class 1, 2 and 3 town highways within the town or it shall not be eligible for aid under this title.

Sec. 15. 19 V.S.A. § 309b is amended to read:

§ 309b. LOCAL MATCH; CERTAIN TOWN HIGHWAY PROGRAMS

(a) *[Grants]* Notwithstanding subsection 309a(a) of this title, grants provided to towns under the town highway *[bridge and culvert]* structures program shall be matched by local funds sufficient to cover *[ten]* 20 percent of the project costs, unless the town has adopted road and bridge standards and has completed a network inventory, in which event the local match shall be sufficient to cover 10 percent of the project costs. The secretary may adopt rules to implement the *[bridge and culvert]* town highway structures program. *[Bridge and culvert]* Town highway structures projects receiving funds pursuant to this subsection shall be the responsibility of the applicant municipality.

(b) Notwithstanding subsection 309a(a) of this title, grants provided to towns under the class 2 town highway *[resurfacing]* roadway program shall be matched by local funds sufficient to cover *[one-third]* 30 percent of the project costs, unless the town has adopted road and bridge standards and has completed a network inventory, in which event the local match shall be sufficient to cover 20 percent of the project costs. The secretary may adopt rules to implement the class 2 town highway *[resurfacing]* roadway program. Class 2 town highway *[resurfacing]* roadway projects receiving funds pursuant to this subsection shall be the responsibility of the applicant municipality.

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(c) Notwithstanding subsection 309a(a) of this title, grants provided to towns under the class 2 town highway rehabilitation program shall be matched by local funds sufficient to cover at least one-third of the project costs. The secretary may adopt rules to implement the class 2 town highway rehabilitation program. Class 2 town highway rehabilitation projects receiving funds pursuant to this subsection shall be the responsibility of the applicant municipality. The program shall be guided by the following principles:

(1) Candidates for improvement shall be identified through the regional transportation planning process, in consultation with the agency;

(2) Project scope shall be developed through a scoping process, shall emphasize rehabilitation and preservation, and shall be appropriate to the highway’s functional class; and

(3) Project design and implementation shall be managed by the involved municipalities, with technical assistance from the agency.

(d) Notwithstanding subsection 309a(a) of this title, grants provided to towns under the town highway bridge maintenance program shall be matched by local funds sufficient to cover at least one-third of the project costs. The secretary may adopt rules to implement the town highway bridge maintenance program. Town highway bridge maintenance projects receiving funds pursuant to this subsection shall be the responsibility of the applicant municipality.

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* * * New England Central Railroad * * *

Sec. 16. NEGOTIATIONS WITH NEW ENGLAND CENTRAL RAILROAD

(a) The secretary of transportation, as agent for the state of Vermont, is authorized to negotiate, but not execute a contract, for the acquisition or lease of the New England Central Railroad line between Essex Junction and Burlington, including any remaining interests of CV Properties, Inc. that the secretary deems necessary for present or future transportation uses.

(b) The secretary of transportation is authorized to negotiate and execute an agreement with New England Central Railroad which results in restoration of AMTRAK’s Vermonter service along that railroad. The agreement shall not include a direct grant to New England Central Railroad but may consist of a short-term loan or other consideration.

* * * Public Transportation * * *

Sec. 17. 24 V.S.A. § 5088 is amended to read:

§ 5088. DEFINITIONS

As used in this subchapter:

(1) "Fixed route service" means a public transit service operated over a set route or network of routes on a regular schedule.

(2) *["Net deficit" means the estimated financial deficit resulting from public transit operations over the period of a 12-month fiscal year calculated as follows:

Net deficit = all expenses attributable to public transit services - (all income attributable to public transit services + unencumbered cash assets).

(3)]* "New public transit service" means any eligible public transit service not previously provided.

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(4)]*(3) "Nonprofit public transit system" means a domestic corporation organized in accordance with 11 V.S.A. chapter 19 having the majority of its governing board appointed by the legislative body of the municipality or municipalities served, and a function of providing a public transit service or a foreign nonprofit corporation located in a state which borders Vermont and provides public transit services in both Vermont and the bordering state.

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(5)]*(4) "Paratransit" means transportation services, provided through flexible scheduling or routing in small vehicles, such as *[ridesharing]* ride-matching, dial-a-ride, jitney, *[airport limousine,]* subscription and route-deviated bus services.

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(6)]*(5) A "public transit service" means any fixed route, paratransit, transportation brokerage, user-side subsidy, and or *[ride-referral/ride-match]* rideshare/ride-match program which is available to any person upon payment of the proper fare, and which is promoted to be available to all members of the public, including those with special needs.

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(7)]*(6) A "public transit system" means:

(A) a transportation authority as provided by No. 122 of the Acts of 1973;

(B) a transit authority or transit district as provided by *[24 V.S.A.]* chapter 127 of this title;

(C) any municipal transit system, or any nonprofit public transit system;

(D) a local chapter of the American National Red Cross created by Congress under 36 U.S.C. 1 et seq. that provides public transit service; or

(E) an intercity bus carrier.

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(8)]*(7) "Short-range public transit plan" means a one-to-five-year operating and capital plan for a public transit system which examines service and performance characteristics of the public transit system’s service area and vicinity and methods of operation.

*[

(9) "Ride-referral/ride-match services" mean a nonfare telephone based service for arranging rides.

(10)]*(8) "Transportation brokerage" means matching the most appropriate services and providers to individual markets.

*[

(11)]*(9) "User-side subsidy" means a direct subsidy to users which allows them to select the service they prefer.

Sec. 18. 24 V.S.A. § 5089(c) is amended to read:

(c) The agency of transportation’s public transit plan for the state shall be updated no less frequently than every *[two]* five years so as to include, and incorporate the public transportation elements of regional plans that have not been disapproved under the provisions of *[24 V.S.A.]* chapter 117 of this title. Regional plans, together with the agency of transportation’s public transit plan shall function to coordinate the provision of public, private nonprofit, and private for-profit regional public transit services, in order to ensure effective local, regional and statewide delivery of services.

Sec. 19. 24 V.S.A. § 5091 is amended to read:

§ 5091. FUNDING

(a) The secretary of transportation, within the annual budget setting process, shall meet with the public transit advisory council and representatives of public transit systems to establish the level of state funds needed by public transit systems in Vermont, and shall consider this level in formulating the agency of transportation’s state budget request.

(b) State funds authorized by the legislature as grant assistance for the operation of public transit services shall be eligible for use as a matching source for federal funds.

(c) The same fiscal accountability requirements and regulatory standards shall apply to all grantees of funds as provided by rule of the secretary of transportation.

*[

(d) Subject to any preliminary set asides or other limitations in this section or federal law, distribution of state funds or federal funds to public transit systems shall be based on the following performance indicators:

(1) Fifty percent based on single one-way passenger trips per capita for the communities served in the last audited year.

(2) Fifty percent based on local revenue per single one-way passenger trip in the last audited year.

Provided, however, that the urbanized area may not receive more than 50 percent of the allocation under either of the above and except to the extent that total funding may decrease, no public transit system shall receive more than a 10 percent reduction from its prior fiscal year funding level. Ride-referral/ride-match

]*

(d) Rideshare, capital, contracted services and transportation brokerage services are not to be considered *[for]* as operating funds under this section.

*[

(e) Public transit systems shall not receive state funding in excess of 50 percent of the eligible operating expenses applicable to the public transit services proposed for state funding assistance.

(f) Following review and approval of the short-range public transit plan, the agency of transportation shall apply for such sums of federal congestion mitigation and air quality (CMAQ) funds as the secretary may approve for the first two years of any new public transit service.

(g)]*(e) State funds shall be paid on a semi-annual payment basis to eligible grantees with the first payment paid immediately upon approval of the contract and the second payment to occur at the start of the third quarter of the state fiscal year.

*[

(h)]*(f) After January 31, 1996, grantees shall be eligible for funding only if a short-range public transit plan has been completed.

*[

(i)]*(g) Monies which are in excess of the grantee’s net project *[deficit]* cost shall be returned to the agency of transportation within 30 days of the agency’s acceptance of the post-project audit.

*[

(j)]*(h) Applicants for state funding shall meet the requirements of federal laws and regulations relating to fiscal accountability and accessibility by the disabled.

(i) To implement the public transportation policy goals set forth in section 5083 of this title, the agency of transportation shall use the following formula for distribution of operating funds:

(1) Fifty percent of operating funds shall be based on need for basic mobility, using information developed from the United States Bureau of the Census, as follows:

(A) ten percent based on the percentage of the state’s elderly population (persons aged 60 and above) in each of the designated transit service areas;

(B) ten percent based on the percentage of the state’s youth population (persons aged 12 through 17) in each of the designated transit service areas;

(C) ten percent based on the percentage of the state’s mobility-limited population in each of the designated transit service areas;

(D) ten percent based on the percentage of the state’s population in poverty in each of the designated transit service areas;

(E) ten percent based on the percentage of the state’s households lacking access to an automobile in each of the designated transit service areas.

(2) Twenty percent of operating funds shall be based on need for employment transportation, as measured by the percentage of the state’s employed persons residing in each of the designated transit service areas, using data developed by the Vermont department of employment and training.

(3) Fifteen percent of operating funds shall be based on the need for congestion mitigation and air quality, as measured by the percentage of the state’s overall population living in high density areas in each of the designated transit service areas, using data from the United States Bureau of the Census.

(4) Fifteen percent of the operating funds shall be based on need for economic development transportation, as measured by the percentage of the state’s jobs in each of the designated transit service areas, using data developed annually by the Vermont department of employment and training.

(j) Notwithstanding subsection (i) of this section, and to the extent that appropriated funds are available, no provider who is otherwise eligible shall receive a lesser amount of operating funds than it expended on eligible operating expenses in state fiscal year 2001 for services that remain ongoing, and provided that the amount shall be evaluated as necessary to address changes in the cost of providing the services. In the event that a provider merges with or is otherwise succeeded by another provider, the successor provider shall be entitled to the same protection under this subsection that would have been available to the superseded provider.

(k) Eligibility for an intercity bus carrier is limited to capital and operating assistance for routes which have not demonstrated economic viability. The agency of transportation is directed to develop procedures and criteria by December 31, 2001 to administer this subsection. Funding shall be appropriated and distributed outside the funding formula of subsection (i).

(l) State operating assistance appropriated for projects coming off new public transit service funding in fiscal year 2002 shall not be distributed pursuant to the formula in subsection (i) of this section, but shall be added to the eligible grantees’ funding under subsection (j) of this section to the extent that they meet criteria for successful evaluation at the end of 2002.

(m) Any new state operating assistance appropriated to replace new public transit service funds for routes that have successfully met the evaluation criteria after state fiscal year 2002 shall not be distributed pursuant to the formula in subsection (i) of this section, but shall be added to the eligible grantees’ funding under subsection (j) of this section.

* * * Design Plans for New Buildings and Structures * * *

Sec. 20. 19 V.S.A. § 7(e) is amended to read:

(e) In addition to other duties imposed by law, the secretary shall:

(1) administer the laws assigned to the agency;

(2) coordinate and integrate the work of the agency; *[and

]*

(3) supervise and control all staff functions; and

(4) whenever the agency is developing preliminary plans for a new or replacement maintenance facility or salt shed, first conduct a review of all previously developed building plans and give priority to utilizing a common, uniform, preexisting design.

* * * Municipal Purchases of Highway Equipment and Materials * * *

Sec. 21. 19 V.S.A. § 304(a) is amended to read:

(a) It shall be the duty and responsibility of the *[selectmen]* selectboard of the town to, or acting as a board, *[they]* it shall have the authority to:

* * *

(3) purchase tools, equipment and materials necessary for the construction, maintenance or repair of highways and bridges, and to incur indebtedness from the municipal equipment loan fund as established in section 1601 of Title 29 for these purchases. *[They]* It may contract with governmental or private agencies for the use of tools, equipment, road building material, and services;

* * *

Sec. 22. 24 V.S.A. § 1786a(b) is amended to read:

(b) If the improvements or assets are to be financed for a term of five years or less, they shall be approved by the voters at an annual or special meeting duly warned for the purpose in accordance with the provisions of chapter 55 of Title 17. However, the requirement of this subsection shall not apply to purchases made by selectboards under the provisions of 19 V.S.A. § 304(a)(3).

* * * US Route 4 Roadway Improvement Plan * * *

Sec. 23. US ROUTE 4 ROADWAY SAFETY IMPROVEMENT PLAN

(a) The general assembly finds that US Route 4 is a portion of the National Highway System that has been under significant strain for many years due to steadily increasing truck and automobile traffic. The general assembly further finds that the construction of such improvements is long overdue, and that it is in the public interest for such improvements that can be made within the general corridor of US Route 4 to be constructed with all deliberate speed, consistent with federal and state laws.

(b) On or before January 15, 2002, the agency of transportation shall provide the senate and house committees on transportation with a coordinated plan of action for advancing short and long-term roadway improvements along the US Route 4 corridor from the New Hampshire state line to the junction of VT Route 100A at Bridgewater Corners. The agency shall work closely with the affected regional planning agencies in identifying projects, and review the regional planning commission’s previous planning work as a starting point. The agency's action plan shall develop specific projects, both long and short-term, which shall prioritize the projects on the basis of the greatest degree of safety improvements. The report shall include, but not be limited to:

(1) identification of appropriate truck passing lanes;

(2) identification of areas where shoulder widening will improve safety for motor vehicles, bicyclists and pedestrians;

(3) identification of scenic pull-offs;

(4) identification of improvements in villages located along this corridor that improve pedestrian safety and provide traffic calming;

(5) identification of a truck route around the village of Woodstock; and

(6) the individual project costs identified in the report.

(c) The general assembly shall review the plans and proposed projects developed under this section and take the necessary steps to integrate these proposed projects into the agency’s annual capital program in the most expeditious manner possible.

* * * Asset Management Plan * * *

Sec. 24. 19 V.S.A. § 10k is added to read:

§ 10k. STATEMENT OF POLICY; ASSET MANAGEMENT

The agency shall develop an asset management plan which is a systematic goal and performance-driven management and decision-making process of operating, maintaining and upgrading transportation assets cost-effectively. At a minimum, the asset management system shall:

(1) list all of the infrastructure assets and their condition, including, but not limited to, pavements, structures, and facilities;

(2) list other assets and their condition, including, but not limited to, construction and maintenance equipment, vehicles, real estate, materials, corporate data and information, and ground and water transportation facilities and equipment;

(3) include deterioration rates for infrastructure assets; and

(4) determine, long-term, the annual funds necessary to fund infrastructure maintenance at the recommended performance level.

Sec. 25. INFRASTRUCTURE ASSETS CONSTRUCTED WITHIN THE

LAST TEN YEARS; MANAGEMENT PLAN

(a) The agency of transportation shall review all transportation infrastructure assets that have been constructed within the last 10 years and develop an asset management plan for those assets. The plan shall include, but not be limited to:

(1) the costs associated with implementing the plan;

(2) the activities to be undertaken under the plan; and

(3) the comparative cost differential between maintaining the infrastructure, utilizing a preventive maintenance program versus deferring those maintenance costs.

(b) The asset management plan shall be presented to the house and senate committees on transportation no later than January 15, 2002.

* * * Signing for Level I Trauma Centers * * *

Sec. 26. ADDITIONAL SIGNING FOR LEVEL I TRAUMA CENTERS

(a) Subject to obtaining the concurrence of the Federal Highway Administration, the agency of transportation is directed to develop and implement an experimental program for providing additional signing for level I trauma centers, including those at the Medical Center Campus at Fletcher Allen Health Care in Burlington and at the Dartmouth-Hitchcock Medical Center in Lebanon, New Hampshire.

(1) For Fletcher Allen Health Care, the additional signing shall be provided on I-89, northbound and southbound, on US 7 (Shelburne Road), and I-189 northbound.

(2) For Dartmouth-Hitchcock Medical Center, the additional signing shall be provided on I-91, northbound and southbound, and on I-89 southbound.

(b) The agency of transportation shall coordinate its sign installations with affected municipalities and with the New Hampshire Department of Transportation.

Sec. 27. IDENTIFICATION OF BAYLEY-HAZEN ROAD

Notwithstanding any provision of law to the contrary, the agency of transportation shall, by September 1, 2001, install and maintain signs at locations close to where the Bayley-Hazen Road crosses US Route 2 and crosses or passes by Vermont Routes 14, 15, 16, and 100. The signs shall substantially state: "Bayley-Hazen Road, Built 1776-1779".

* * * Transportation Funds for Support of Government * * *

Sec. 28. Sec. 38 of No. 156 of the Acts of 2000 is amended to read:

Sec. 38. TRANSPORTATION FUND APPROPRIATIONS

In fiscal year *[2002 and thereafter]* 2003, the maximum amount of transportation funds that may be appropriated for the support of government, other than for the Agency of Transportation, transportation pay act funds, the cost of maintaining and staffing rest areas, construction of transportation capital facilities used by the agency of transportation, and transportation debt service, shall not exceed *[23]* 21 percent of the total of the prior fiscal year transportation fund appropriations.

* * * Lamoille Valley Railroad Corridor * * *

Sec. 29. Lamoille Valley Railroad Corridor

(a) For fiscal year 2002, no expenditure of state or federal funds or developmental activity shall occur in the Lamoille Valley railroad corridor except for a portion which may be incorporated into the Three Rivers Transportation Path, St. Johnsbury, STP Bike(10), or to facilitate municipal safety improvement projects involving rail crossings. This subsection is not intended to discourage volunteer activities to improve long-term right-of-way usage.

(b) The Joint Fiscal Office shall review the railroad restoration proposal submitted to the Mountain Valley Corridor Consortium and provide the joint fiscal committee and the chairs of the transportation committees with an analysis of the assumptions and findings.

* * * Repeal * * *

Sec. 30. REPEAL

Sec. 24 of No. 211 of the Acts of 1994 (temporary employment) is repealed.

* * * Effective Dates * * *

Sec. 31. EFFECTIVE DATES

(a) Sec. 12 shall take effect on July 1, 2001.

(b) This section and the remaining sections of this bill shall take effect from passage.

Approved: June 16, 2001