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Expansion of the DCHC MAB will take in a portion of Orange County that is in the Triangle Rural Planning Organization (TARPO), separating the northern portion of the County's rural transportation planning area from the southern part of the rural transportation planning area. Expanding the DCHC MAB into an area of Orange County currently in TARPO would result in a loss of NCDOT planning funds equal to $1 per every 10 people removed from the TARPO planning area. The local match could decrease, stay the same or increase. The NCDOT required local match of 20% is divided equally among the four participating counties, so each county's local match could decrease proportionately to the decrease in NCDOT funding for TARPO. However, the local match could remain the same or may have to be increased in order to maintain the same level of services from the Triangle J Council of Governments (TJCOG). TARPO would also lose Congestion Mitigation and Air Quality (CMAQ) funds which are based on population within the air quality maintenance or non-attainment areas in the rural planning area. Orange County would also potentially lose CMAQ funds that TARPO allocates to Orange and Chatham counties based on the percentage of each county's population in TARPO within the air quality maintenance area. Target CMAQ funds available to TARPO equal $171,848.75 each year for the five years 2013 through 2018. Orange County is potentially eligible for$101,768 of those funds based on Orange County's share of 59.22%. NCDOT funding would not be reduced until after the 2010 Census. DCHC MPO federal funding would not be affected until after the 2010 Census and would be based on population within the Census defined UZA (urbanized area). If population in the area of the proposed MAB expansion in Orange County becomes urbanized as defined by the 2010 Census, DCHC would receive additional funds. The DCHC CMAQ allocation would also increase but Orange County would face a more competitive process for applying for those CMAQ funds through the MPO. Attachment 3 is a table detailing legislation, structure and governance of MPOs and RPOs and relates to Orange County's role in the DCHC MPO and the TARPO with respect to transportation planning. FINANCIAL IMPACT: There will be no financial impact related to expanding the MAB until after the 2010 Census. After the 2010 Census, Orange County could experience increased TARPO dues (currently $7,500 per year) and reduced TARPO CMAQ (Congestion Mitigation and Air Quality) funds (currently $101,768 per year). RECOMMENDATION(S): The Manager recommends the Board: 1. Receive a presentation from DCHC MPO (Durham-Chapel Hill-Carrboro Metropolitan Planning Organization) staff; and 2. Direct staff on preparing a response to DCHC MPO: a. Option 1 — Leave the MAB as is until findings of the 2010 Census identify the new UZA; b. Option 2 — Endorse expanding the Durham-Chapel Hill-Carrboro Metropolitan Area Boundary along the 1-85/1-40 corridor; or c. Option 3 — Endorse the Burlington-Graham Metropolitan Planning Organization's expansion further along the 1-85/1-40 corridor as Mebane's urbanized area expands.