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M <br />Agencies seeking to implement ITS projects must demonstrate consistency with the <br />National ITS Architecture. This is address in separate guidance. <br />Operating expenses for traffic flow improvements are eligible for CMAQ funding where they <br />can be shown to: 1) have air quality benefits, 2) the expenses are incurred from new or <br />additional services, and 3) previous funding mechanisms, such as fares or fees for <br />services, are not displaced. <br />Since CMAQ- funded projects should contribute to the attainment or maintenance of a <br />NAAQS, it must be found that these operating costs are necessary for the overall system to <br />contribute to attainment or maintenance of an ambient air quality standard. It is reasonable <br />to assume that, after several years, a transportation service may no longer be considered <br />to be an air quality improvement project, but that it has become a part of the existing <br />transportation network. Hence, FHWA and FTA field offices are advised to use the <br />consultation process with EPA to make a determination that operating assistance for traffic <br />management systems, traveler information systems and other ITS projects or programs, <br />beyond the initial 3 -year period of eligibility, will assist in the attainment or maintenance of <br />an air quality standard. (Also see operating assistance eligibility discussion earlier in this <br />guidance.) <br />7. Transit Projects: Improved public transit is one of the TCMs identified in section <br />108(f)(1)(A) of the CAA. However, not all transit improvements are eligible under the CMAQ <br />program. The general guideline for determining eligibility is whether an increase in transit <br />ridership can reasonably be expected to result from the project. As with all CMAQ - funded <br />projects, this must be supported by a quantified estimate of the emissions effects due to the <br />project. <br />Facilities: New transit facilities are eligible if they are associated with new or enhanced <br />mass transit service. If the project is rehabilitation, reconstruction, or maintenance of an <br />existing facility, it is not eligible since there would be no change in emissions caused by the <br />project. Other FTA grant programs can be used for upgrading existing facilities. <br />Vehicles: Acquisition of new transit vehicles (bus, rail, van) to expand the fleet are eligible. <br />New vehicles acquired as replacements for existing fleet vehicles are also eligible; <br />however, diesel - powered replacement vehicles will have minimal impact on attaining the <br />ozone, PM and CO standards. For these projects in particular, emissions effects must be <br />documented so that they can be arrayed with other CMAQ proposals and allow informed <br />decisions on the best use of available funds. <br />Operating Assistance: CMAQ funding can be used to support the start -up of new transit <br />services. In order to be eligible, the service must be a discrete new addition to the system <br />so that operating costs can be easily identified. Operating assistance is for a maximum of 3 <br />years, after which other sources of funding must be used if the service is to be continued. <br />Fare subsidies: CMAQ funds may be used to subsidize regular transit fares, but only if the <br />reduced or free fare is part of an overall program for preventing exceedances of a national <br />