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FINAL 2008-2011 STATEWIDE TRANSPORTATION IIviPROVEMENT PROGRAM Modernization The Modernization Program funds capital construction projects that add capacity to the highway system, either by adding lanes or building new highways or investing in other system improvements that result in added highway system capacity. The program is one of the largest sources of funding for im- plementing long-range transportation plans. The process for deciding which projects to fund for the Modernization Program is the most complex of any program in the STIP. The reason is that needs far exceed available resources and the decision whether or not to improve a state highway facility requires cooperation from local governments. Funding for the Modernization Program comes from state and federal sources and indirectly from local governments that match state/federal funds. State dollars pri- marily come from the State Highway Fund, which is supported by the state gas tax. Ore- gon law (ORS 366.507) requires ODOT to dedicate the equivalent of its share of two cents per dollar of State Highway Fund revenues for highway modernization work. This share can be funded with either federal or state revenues. While the project selection for many ODOT programs is centralized, particularly those using management systems, the opposite is true for Modernization. Project selection is decentralized and managed by ODOT re- gions. Each of ODOT's five regions has their own process. While all of the regions use similar steps in the project selection process, there are significant differences be- tween them. Common steps include the use of adopted long-range plans as source documents for projects, the use of region technical service centers to scope and pre- pare cost estimates for candidate projects, the use of the Project Eligibility Criteria and Prioritization Factors to screen projects, the use of advisory committees to prioritize pro- jects, and a public comment process on the draft program in each region. In regions with MPOs, the process is made more com- plex by the need to integrate the Moderniza- tion Program for the MPO into the STIP. An extremely important constituency in the project selection process is the local advi- sory committees that work with each ODOT region to recommend which projects should be funded. ACTS serve this role in Regions 2, 3, 4, and 5. ACTS are chartered by the OTC according to its Policy on Formation and Operation of ACTs, which specifies a range of membership to participate in the ACTS' primary function of advising the OTC about transportation priorities in their area. ACTs are usually formed to include several counties and most regions have two or three ACTs. Exceptions are Region 1 and Lane County. In Region 1, the MPO (Metro) and several local coordinating committees serve this advisory function. In Hood River County (Region 1) and Lane County (Region 2), the County Board of Commissioners serves the advisory function. Each region manages the modernization pro- ject selection process differently. The proc- ess is too complex to review here, but de- tailed information on the Modernization Program in each region is available in the STIP Users' Guide. Modernization projects are identified, selected, and prioritized using the Project Eligibility Criteria and Prioritiza- tion Factors approved by the OTC for the STIP cycle in which they are programmed. The criteria are listed on page 348 of this document. ACTS may adopt other criteria and factors to help prioritize projects, such as safety, economic development impacts, land use impacts, multimodal and intermo- dal integration, congestion, environmental impacts, cost effectiveness, public support and matching funds, but they must not con- flict with statewide criteria. Page 17