State and Local Policy Database

Energy Efficient Targets

A state’s investment in public transit is a key indicator of its interest in promoting energy-efficient modes of transportation. Faced with increasingly uncertain federal funding streams and federal transportation policies that remain highway-focused, many states are taking the lead when it comes to finding dedicated funding sources for long-term public transit expenditures. To generate a sustainable stream of capital and operating funds, a number have adopted legislation that identifies specific sources of funding for public transit and other alternatives to highway modes of transportation.

No policy in place or proposed.

Last Updated: July 2015

No policy in place or proposed.

Last Updated: July 2015

No policy in place or proposed.

Last Updated: July 2015

Passed in 2001, Arkansas Act 949 established the Arkansas Public Transit Fund, which directs monies from rental vehicle taxes toward public transit expenditures.

Last Updated: July 2015

Finally, the state has identified a steady stream of funding for public transit expenditures. California’s Transportation Development Act provides two sources of funding for public transit: the Location Transportation Fund and the State Transit Assistance Fund. Monies are allocated to each county based on population, taxable sales, and transit performance and are used for the development and maintenance of transit infrastructure.

Last Updated: July 2015

 

Colorado adopted the FASTER legislation in 2009, which created a State Transit and Rail fund that accumulates $5 million annually. The legislation also allocated $10 million a year from the Highway Users Tax Fund to the maintenance and creation of transit facilities.

The state subsequently passed SB 48 in 2013, which allowed for the entire local share of the Highway Users Trust Fund (derived from state gas tax and registration fees) to be used for public transit and bicycle or pedestrian investments.

LLast Updated: July 2015

No policy in place or proposed.

Last Updated: April 2015

No policy in place or proposed.

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No policy in place or proposed.

Last Updated: July 2015

The state recently adopted transit finance legislation. House Bill 1271 allows municipalities in Florida with a regional transportation system to levy a tax, subject to voter approval, that can be used as a funding stream for transit development and maintenance.

Last Updated: July 2015

The Transportation Investment Act, enacted in 2010, allows municipalities to pass a sales tax for the express purpose of financing transit development and expansion.

Last Updated: July 2015

 

Section HRS 46-16.8 of the Hawaiian Statutes allows municipalities to add a county surcharge on state tax that is then funneled towards mass transit projects.

Last Updated: July 2015

No policy in place or proposed.

Last Updated: July 2015

House Bill 289 allocates $2.5 billion for the creation and maintenance of mass transit facilities from the issuance of state bonds. 

Last Updated: July 2015

House Bill 1101 specifies that a county or city council may elect to provide revenue to a public transportation corporation from the distributive share of county adjusted gross income taxes, county option income taxes, or county economic development income taxes. An additional county economic development income tax no higher than 0.3% may also be imposed to pay the county's contribution to the funding of the metropolitan transit district. Only six counties within the state may take advantage of this legislation.

Last Updated: July 2015

The Iowa State Transit Assistance Program devotes 4% of the fees for new registration collected on sales of motor vehicle and accessory equipment to support public transportation.

Last Updated: July 2015

The Transportation Works for Kansas legislation was adopted in 2010 and provides financing for a multimodal development program in communities with sensitive transportation needs. This program includes annual funding to develop, improve, or maintain a coordinated public transportation system throughout Kansas. This dedicated funding stream increased from $6 million to $11 million in 2013 (see KSA 75-5035).

Last Updated: July 2015

No policy in place or proposed.

Last Updated: July 2015

No policy in place or proposed.

Last Updated: July 2015

The Maine Legislature created a dedicated revenue stream for multimodal transportation in 2012. Through sales tax revenues derived from taxes on vehicle rentals, Maine’s Multimodal Transportation Fund must be used for the purposes of purchasing, operating, maintaining, improving, repairing, constructing and managing the assets of multimodal forms of transportation.

Last Updated: July 2015

No policy in place or proposed.

Last Updated: July 2015

Massachusetts has also passed legislation to create a dedicated funding stream for the Massachusetts Bay Transportation Authority (MBTA). The MBTA State and Local Contribution Fund is financed by a 1% sales tax implemented in the state. 

Last Updated: July 2015

The Michigan Comprehensive Transportation Fund funnels both vehicle registration revenues and auto-related sales tax revenues towards public transportation and targeted transit demand management programs.

Last Updated: July 2015

In order to finance continued transit development in the state, Minneosta adopted House File 2700 in 2010. The bill is an omnibus bonding and capital improvement bill which provides $43.5 million for transit maintenance and construction.  The bill also prioritizes bonding authorization so that appropriations for transit construction for fiscal years 2011 and 2012 amount to $200 million. 

Last Updated: July 2015

No policy in place or proposed.

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No policy in place or proposed.

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No policy in place or proposed.

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No policy in place or proposed.

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No policy in place or proposed.

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No policy in place or proposed.

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No policy in place or proposed.

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No policy in place or proposed.

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In 2010 New York adopted Assembly Bill 8180, which increases certain registration and renewal fees to fund public transit. It also created the MTA (Metropolitan Transit Authority) financial assistance fund to support subway, bus, and rail.

Last Updated: July 2015

In 2009 North Carolina passed House Bill 148, which calls for the establishment of a congestion relief and intermodal transportation fund. Criteria for the allocation of funds can be found in the legislation.

Last Updated: July 2015

No policy in place or proposed.

Last Updated: July 2015

No policy in place or proposed.

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No policy in place or proposed

Last Updated: July 2015

In 2009, the state passed legislation that directed a “reasonable” amount of money from the State Highway Fund towards the provision of footpaths and bicycle trails whenever a highway, road or street is constructed. The state also has a Lieu of State Payroll Tax Program that provides a direct ongoing revenue stream for transit districts that can demonstrate equal local matching revenues from state agency employers in their service areas. 

Last Updated: July 2015

The State also passed Act 44 of House Bill 1590 2007, to allow counties to impose a sales tax on liquor or an excise tax on rental vehicles to fund the development of their transit systems.

Last Updated: July 2015

No policy in place or proposed.

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No policy in place or proposed.

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No policy in place or proposed.

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Tennessee Senate Bill 1471, passed in 2009, calls for the creation of a Regional Transportation Authority in major municipalities. It allows these authorities to set up dedicated funding streams for mass transit either by law or through voter referendum.

Last Updated: July 2015

No policy in place or proposed.

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No policy in place or proposed.

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No policy in place or proposed.

Last Updated: July 2015

House Bill 2313, adopted in 2013, creates the Commonwealth Mass Transit Fund which will receive approximately 15% of revenues collected from the implementation of a 1.5% sales and use tax for transportation expenditures. 

Last Updated: July 2015

In 2012, Washington adopted House Bill 2660, which created a transit service mitigation program account to provide grants to transit agencies in the state.

Last Updated: July 2015

On April 13, 2013, West Virginia Legislature passed Senate Bill No. 103. This bill is known as the WV Commuter Rail Access Act. It establishes a special fund in the State Treasury to pay track access fees accrued by commuter rail services operating within West Virginia borders. The funds have the ability to rollover from year-to-year and are administered by the West Virginia State Rail Authority.

Last Updated: July 2015

No policy in place or proposed.

Last Updated: July 2015

No policy in place or proposed.

Last Updated: July 2015