Transportation for the Future Act.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 641

Short Title: Transportation for the Future Act. (Public)
Sponsors: Representatives Buansi, G. Brown, T. Brown, and Clark (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Rules, Calendar, and Operations of the House
April 2, 2025
*H641-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO MODERNIZE NORTH CAROLINA TRANSPORTATION SPENDING TO PUT 2
TAXPAYER DOLLARS TO EFFECTIVE USE AND TO GIVE OUR COMMUNITIE S 3
THE TOOLS THEY NEED TO CREATE SAFE AND S USTAINABLE MULTIMODAL 4
TRANSPORTATION SYSTEMS FOR THE FUTURE. 5
The General Assembly of North Carolina enacts: 6
SECTION 1. This act shall be known as the "Transportation for the Future Act." 7
SECTION 2. G.S. 136-189.10 reads as rewritten: 8
"§ 136-189.10. Definitions. 9
The following definitions apply in this Article: 10
… 11
(2) Division needs projects. – Includes only the following: 12
… 13
e. Public transportation service not included in subdivision (3) or (4) of 14
this section. This sub-subdivision includes bus rapid transit, commuter 15
rail, intercity rail, and light rail. Nothing in this sub-subdivision shall 16
be construed as authorizing total State funding in excess of the 17
maximum established in sub -subdivision g. of subdivision (3) of this 18
section for commuter rail and light rail projects. 19
… 20
g. Federally funded independent bicycle Bicycle and pedestrian 21
improvements. 22
… 23
(3) Regional impact projects. – Includes only the following: 24
… 25
f. Rail lines that span two or more counties not included in subdivision 26
(4) of this section. This sub -subdivision does not include short -line 27
railroads.Rail lines. 28
g. Public transportation service that spans two or more counties and that 29
serves more than one municipality. Programmed funds pursuant to this 30
sub-subdivision shall not exceed ten percent (10%) of any distribution 31
region allocation. service. This su b-subdivision includes bus rapid 32
transit, commuter rail, intercity rail, and light rail. Total State funding 33
for a commuter rail or light rail project shall not exceed the lesser of 34
ten percent (10%) of the distribution region allocation or ten percent 35
General Assembly Of North Carolina Session 2025
Page 2 House Bill 641-First Edition
(10%) of the estimated total project costs used during the prioritization 1
scoring process. The State shall not be responsible or liable for any 2
project costs in excess of the maximum established under this 3
sub-subdivision. Any agreement entered into by the St ate to fund a 4
commuter rail or light rail project shall include language setting out 5
the limitations set forth in this sub-subdivision. 6
h. Bicycle and pedestrian improvements. 7
(4) Statewide strategic mobility projects. – Includes only the following: 8
… 9
i. Public transportation service that spans two or more counties or that 10
serves more than one municipality. This sub-subdivision includes bus 11
rapid transit, commuter rail, intercity rail, and light rail. 12
j. Bicycle and pedestrian improvements that span two or more counties 13
or that serve more than one municipality." 14
SECTION 3. G.S. 136-189.11 reads as rewritten: 15
"§ 136-189.11. Transportation Investment Strategy Formula. 16
… 17
(b) Funds Excluded From Formula. – The following funds are not subject to this section: 18
(1) Federal congestion mitigation and air quality improvement program funds 19
appropriated to the State by the United States pursuant to 23 U.S.C. § 20
104(b)(2) and 23 U.S.C. § 149. 21
(1a) Federal Carbon Reduction Program formula funds appropriated to the State. 22
(2) Funds received through competitive awards or discretionary grants through 23
federal appropriations either for local governments, transportation authorities, 24
transit authorities, or the Department. 25
(3) Funds received from the federal government that under federal law may only 26
be used for Appalachian Development Highway System projects. 27
(4) Funds used in repayment of "GARVEE" bonds related to Phase I of the 28
Yadkin River Veterans Memorial Bridge project. 29
(5) Funds committed to gap funding for toll roads fun ded with bonds issued 30
pursuant to G.S. 136-176. 31
(6) Funds obligated for projects in the State Transportation Improvement 32
Program that are scheduled for construction as of October 1, 2013, in State 33
fiscal year 2012-2013, 2013-2014, or 2014-2015. 34
(7) Toll collections from a turnpike project under Article 6H of this Chapter and 35
other revenue from the sale of the Authority's bonds or notes or project loans, 36
in accordance with G.S. 136-89.192. 37
(8) Toll collections from the State -maintained ferry system collected under the 38
authority of G.S. 136-82. 39
(9) Federal State Planning and Research Program funds (23 U.S.C. § 505) and 40
Metropolitan Planning funds (23 U.S.C. §§ 104 and 134). 41
(10) Federal Lands Access Program funds received by the State pursuant to 23 42
U.S.C. § 204. 43
(11) Funds advanced pursuant to G.S. 136-186. 44
(12) Funds appropriated to the North Carolina State Ports Authority for the 45
purposes described in G.S. 136-176(b3). 46
(13) Federal Surface Transportation Program -Direct Attributable funds expended 47
on eligible projects. 48
(b1) Funds Excluded From Regional Impact Project Category. – Federal Surface 49
Transportation Program-Direct Attributable funds expended on eligible projects in the Regional 50
Impact Project category are excluded from that category. 51
General Assembly Of North Carolina Session 2025
House Bill 641-First Edition Page 3
… 1
(d) Transportation Investment Strategy Formula. – Funds subject to the Formula shall be 2
distributed as follows:follows, with at least twenty percent ( 20%) of the funds distributed to 3
non-highway projects: 4
(1) Statewide Strategic Mobility Projects. – Forty percent (40%) Thirty percent 5
(30%) of the funds subject to this section shall be used for Statewide Strategic 6
Mobility Projects: 7
a. Criteria. – Transportation-related quantitative criteria shall be used by 8
the Department to rank highway projects that address cost -effective 9
Statewide Strategic Mobility needs and promote economic and 10
employment growth. The criteria for selection of Statewide Strategic 11
Mobility Projects shall utilize a numeric scale of 100 points, based on 12
consideration of the following quantitative criteria: 13
1. Benefit cost. 14
2. Congestion. 15
3. Safety. 16
4. Economic competitiveness. 17
5. Freight. 18
6. Multimodal. 19
7. Pavement Infrastructure condition. 20
8. Lane width. 21
9. Shoulder width. 22
10. Accessibility and connectivity to employment centers, 23
essential services, tourist destinations, or military installations. 24
11. Vehicle miles traveled. 25
12. Environmental quality. 26
… 27
(2) Regional Impact Projects. – Thirty percent (30%) Forty percent (40%) of the 28
funds subject to this section shall be used for Regional Impact Projec ts and 29
allocated by population of Distribution Regions based on the most recent 30
estimates certified by the Office of State Budget and Management: 31
a. Criteria. – A combination of transportation -related quantitative 32
criteria, qualitative criteria, and local input shall be used to rank 33
Regional Impact Projects involving highways projects that address 34
cost-effective needs from a region -wide perspective and promote 35
economic growth. Local input is defined as the rankings identified by 36
the Department's Transportat ion Division Engineers, Metropolitan 37
Planning Organizations, and Rural Transportation Planning 38
Organizations. Transportation Division Engineer local input scoring 39
shall take into account public comments. The Department shall ensure 40
that the public has a fu ll opportunity to submit public comments, by 41
widely available notice to the public, an adequate time period for input, 42
and public hearings. Board of Transportation input shall be in 43
accordance with G.S. 136-189.11(g)(1) and G.S. 143B-350(g). The 44
criteria u tilized for selection of Regional Impact Projects shall be 45
based thirty percent (30%) on local input and seventy percent (70%) 46
on consideration of a numeric scale of 100 points based on the 47
following quantitative criteria: 48
1. Benefit cost. 49
2. Congestion. 50
3. Safety. 51
General Assembly Of North Carolina Session 2025
Page 4 House Bill 641-First Edition
4. Freight. 1
5. Multimodal. 2
6. Pavement Infrastructure condition. 3
7. Lane width. 4
8. Shoulder width. 5
9. Accessibility and connectivity to employment centers, 6
essential services, tourist destinations, or military installations. 7
10. Vehicle miles traveled reductions. 8
11. Environmental quality. 9
(3) Division Need Projects. – Thirty percent (30%) of the funds subject to this 10
section shall be allocated in equal share to each of the Department divisions, 11
as defined in G.S. 136-14.1, and used for Division Need Projects: 12
a. Criteria. – A combination of transportation -related quantitative 13
criteria, qualitative criteria, and local input shall be used to rank 14
Division Need Projects involving highways that address cost-effective 15
needs from a Division -wide perspective, provide access, and address 16
safety-related needs of local communities. Local input is defined as 17
the rankings identified by the Department's Transportation Division 18
Engineers, Metropolitan Planning Organizations, and Rural 19
Transportation Planning Organizations. Transportation Division 20
Engineer local input scoring shall take into account public comments. 21
The Department shall ensure that the public has a full opportunity to 22
submit public comments, by widely available notice to the public, an 23
adequate time period for input, and public hearings. Board of 24
Transportation input shall be in accordance with 25
G.S. 136-189.11(g)(1) and G.S. 143B-350(g). The criteria utilized for 26
selection of Division Need Projects shall be based fifty percent (50%) 27
thirty percent (30%) on local input and fifty percent (50%) seventy 28
percent (70%) on consideration of a numeric scale of 100 points based 29
on the following quantitative criteria, except as provided in 30
sub-subdivision b. of this subdivision: 31
1. Benefit cost. 32
2. Congestion. 33
3. Safety. 34
4. Freight. 35
5. Multimodal. 36
6. Pavement Infrastructure condition. 37
7. Lane width. 38
8. Shoulder width. 39
9. Accessibility and connectivity to employment centers, 40
essential services, tourist destinations, or military installations. 41
10. Vehicle miles traveled reductions. 42
11. Environmental quality. 43
b. Alternate criteria. – Funding from the following programs shall be 44
included in the computation of each of the Department division equal 45
shares but shall be subject to alternate quantitative criteria: 46
1. Federal Surface Transportation Program -Direct Attributable 47
funds expended on eligible projects in the Division Need 48
Projects category. 49
2. Federal Transportation Alternatives funds appropriated to the 50
State. 51
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House Bill 641-First Edition Page 5
3. Federal Railway -Highway Crossings Program funds 1
appropriated to the State. 2
3a. Federal National Electric Vehicle Infrastructure (NEVI) 3
Program formula funds appropriated to the State. 4
4. Projects requested from the Department in support of a 5
time-critical job creation opportunity, provided that (i) the 6
Department investment for all projects funded under this 7
sub-sub-subdivision in any five -year period shall not exceed 8
one hundred million dollars ($100,000,000) in the aggregate, 9
(ii) the amount of funding associated with a project under this 10
sub-sub-subdivision does not exceed the lesser of ten million 11
dollars ($10,000,000) and the greater of ten thousand dollars 12
($10,000) per job created or ten percent (10%) of the amount 13
of private investment associated with the project, (iii) the 14
Department ensures that funding under this 15
sub-sub-subdivision, when combined with any other grants, 16
does not result in the costs of the project to the State 17
outweighing its total benefits and determines that the funding 18
is necessary for completion of the project i n this State. Upon 19
the release of a State Transportation Improvement Program, 20
the Department shall submit a report to the Joint Legislative 21
Transportation Oversight Committee detailing the projects 22
funded under this sub-sub-subdivision. 23
5. Federal funds for municipal road projects. 24
c. Bicycle and pedestrian limitation. – The Department shall not provide 25
financial support for independent bicycle and pedestrian improvement 26
projects, except for federal funds administered by the Department for 27
that purpose. Thi s sub-subdivision shall not apply to funds allocated 28
to a municipality pursuant to G.S. 136-41.1 that are committed by the 29
municipality as matching funds for federal funds administered by the 30
Department and used for bicycle and pedestrian improvement projects. 31
This limitation shall not apply to funds authorized for projects in the 32
State Transportation Improvement Program that are scheduled for 33
construction as of October 1, 2013, in State fiscal year 2012 -2013, 34
2013-2014, or 2014-2015. 35
(4) Criteria for nonhi ghway projects. – Nonhighway projects subject to this 36
subsection shall be evaluated through a separate prioritization process 37
established by the Department that complies with all of the following: 38
a. The criteria used for selection of projects for a particular transportation 39
mode shall be based on a minimum of four quantitative criteria. 40
b. Local input shall include rankings of projects identified by the 41
Department's Transportation Division Engineers, Metropolitan 42
Planning Organizations, and Rural Transport ation Planning 43
Organizations. Transportation Division Engineer local input scoring 44
shall take into account public comments. The Department shall ensure 45
that the public has a full opportunity to submit public comments, by 46
widely available notice to the public, an adequate time period for input, 47
and public hearings. Board of Transportation input shall be in 48
accordance with G.S. 136-189.11(g)(1) and G.S. 143B-350(g). 49
General Assembly Of North Carolina Session 2025
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c. The criteria shall be based on a scale not to exceed 100 points that 1
includes no bonus poin ts or other alterations favoring any particular 2
mode of transportation. 3
(d1) Additional Requirement for High-Cost Projects. – State funding may not be expended 4
for a light rail project until a written agreement is provided to the Department establishing that 5
all non-State funding necessary to construct the project has been committed. 6
… 7
(e) Authorized Formula Variance. – The Department may vary from the Formula set forth 8
in this section if it complies with the following: 9
(1) Limitation on variance. – The Department, in obligating funds in accordance 10
with this section, shall ensure that the percentage amount obligated to 11
Statewide Strategic Mobility Projects, Regional Impact Projects, and Division 12
Need Projects does not vary by more than fifteen percent (15%) ten percent 13
(10%) over any five-year period and ten percent (10%) five percent (5%) over 14
any 10-year period from the percentage required to be allocated to each of 15
those categories by this section. Funds obligated among distribution regions 16
or divisions pursuant to this section may vary up to fifteen percent (15%) ten 17
percent (10%) over any five -year period and ten percent (10%) five percent 18
(5%) over any 10-year period. 19
… 20
(f) Incentives for Local Funding and Highway Tolling. – The Department may revise 21
highway project selection ratings based on local government funding initiatives and capital 22
construction funding directly attributable to highway toll revenue. Projects authorized for 23
construction after November 1, 2013, and contained in the 10-year Department of Transportation 24
work program are eligible for a bonus allocation under this subsection: 25
… 26
(2) Funds obtained from local government funding participation. – Upon 27
authorization to construct a project with funds obtained by local government 28
funding participation, the Department shall make available for allocation as 29
set forth in subdivision (4) of this section an amount equal to one -half of the 30
local funding commitment for other eligible highway projects that serve the 31
local entity or entities that provided the local funding. 32
(3) Funds obtained through highway tolling. – Upon authorization to construct a 33
project with funding from toll revenue, the Department shall make available 34
for allocation an amount equal to one -half of the project construction cost 35
derived from toll revenue bonds. Upon authorization to construct a toll project 36
in which no project construction cost is derived from toll revenue bonds, the 37
Department shall make available for allocation an amount equal to one -half 38
of the revenue expected from the project over the first 10 years of the project, 39
less operations costs, as set forth in the Investment Grade Traffic and Revenue 40
Study. The amount made available for allocation to other eligible highway 41
projects shall not exceed two hundred millio n dollars ($200,000,000) of the 42
capital construction funding directly attributable to the highway toll revenues 43
committed in the Investment Grade Traffic and Revenue Study, for a project 44
for which funds have been committed on or before July 1, 2015. The am ount 45
made available for allocation to other eligible highway projects shall not 46
exceed one hundred million dollars ($100,000,000) of the capital construction 47
funding directly attributable to the highway toll revenues committed in the 48
Investment Grade Traff ic and Revenue Study, for a project for which funds 49
are committed after July 1, 2015. If the toll project is located in one or more 50
Metropolitan Planning Organization or Rural Transportation Planning 51
General Assembly Of North Carolina Session 2025
House Bill 641-First Edition Page 7
Organization boundaries, based on the boundaries in exis tence at the time of 1
letting of the project construction contract, the bonus allocation shall be 2
distributed proportionately to lane miles of new capacity within the 3
Organization's boundaries. The Organization shall apply the bonus allocation 4
only within those counties in which the toll project is located. Except for tolls 5
removed pursuant to G.S. 136-89.196, if a toll is removed or a toll is not 6
implemented, any funds made available for allocation or allocated under this 7
subdivision shall be withheld by the Department or repaid to the Department, 8
as applicable. Any funds withheld or repaid under this subdivision may be 9
reallocated according to the requirements of this subdivision. 10
(4) Use of bonus allocation. – The Metropolitan Planning Organization, Rural 11
Transportation Planning Organization, or the local government may choose to 12
apply its bonus allocation in one of the three categories or in a combination of 13
the three categories as provided in this subdivision: 14
a. Statewide Strategic Mobility Projects category. – The bonus allocation 15
shall apply over the five -year period in the State Transportation 16
Improvement Program in the cycle following the contractual 17
obligation. 18
b. Regional Impact Projects category. – The bonus allocation is capped 19
at ten percent (10%) of the regional allocation, or allocation to multiple 20
regions, made over a five -year period and shall be applied over the 21
five-year period in the State Transportation Improvement Program in 22
the cycle following the contractual obligation. 23
c. Division Needs Projects category. – The bonus allocation is capped at 24
ten percent (10%) of the division allocation, or allocation to multiple 25
divisions, made over a five -year period and shall be applied over the 26
five-year period in the State Transportation Improvement Program in 27
the cycle following the contractual obligation. 28
…." 29
SECTION 4. G.S. 153A-145.1 is repealed. 30
SECTION 5. G.S. 160A-204 is repealed. 31
SECTION 6. G.S. 160D-804 reads as rewritten: 32
"§ 160D-804. Contents and requirements of regulation. 33
(a) Purposes. – A subdivision regulation may provide for the orderly growth and 34
development of the local government; for the coordination of transportation networks and 35
utilities within proposed subdivisions with existing or planned streets and highways streets, 36
highways, sidewalks, bicycle lanes, bus stops, transit infrastructure, and other transportation 37
facilities and with other public facilities; and for the distribution of population and traffic in a 38
manner that will avoid congestion and overcrowding and will create conditions that substantially 39
promote public health, safety, and general welfare. 40
… 41
(c) Transportation and Utilities. – 42
(1) The regulation may provide for the dedication of rights -of-way or easements 43
for street transportation and utility purpose s, including the dedication of 44
rights-of-way pursuant to G.S. 136-66.10 or G.S. 136-66.11. 45
(2) A regulation adopted by a city may provide that in lieu of required street 46
transportation facility construction, a developer be required to provide funds 47
for city use for the construction of roads transportation facilities to serve the 48
occupants, residents, or invitees of the subdivision or development, and these 49
funds may be used for roads transportation facilities which serve more than 50
one subdivision or development within the area. All funds received by the city 51
General Assembly Of North Carolina Session 2025
Page 8 House Bill 641-First Edition
pursuant to this subdivision shall be used only for development of roads, 1
transportation facilities, including design, land acquisition, and construction. 2
However, a city may undertake these activities in conjunction with the 3
Department of Transportation under an agreement between the city and the 4
Department of Transportation. The term "transportation facilities " includes 5
streets, sidewalks, bicycle lanes, bus stops, transit infrastructure, and other 6
facilities designed to assist the movement of people or goods from one place 7
to another. 8
(3) A regulation adopted by a county may provide that in lieu of required street 9
transportation facility construction, a developer may provide funds to a county 10
to be used for the development of roads transportation facilities to serve the 11
occupants, residents, or invitees of the subdivision or development. All funds 12
received by the county under this subdivision shall be transferred to a city to 13
be used solely for the development of roads, transportation facilities, including 14
design, land acquisition, and construction. Any city receiving funds from a 15
county under this subdivision is authorized to expend the funds outside its 16
corporate limits for the purposes specified in th e agreement between the 17
municipality and the county. 18
(4) Any formula adopted by a local government to determine the amount of funds 19
the developer is to pay in lieu of required street transportation facility 20
construction shall be based on the trips generate d from the subdivision or 21
development. The regulation may require a combination of partial payment of 22
funds and partial dedication of constructed streets transportation facilities 23
when the governing board determines that a combination is in the best 24
interests of the citizens of the area to be served. 25
…." 26
SECTION 7. G.S. 105-511.2 reads as rewritten: 27
"§ 105-511.2. Local election on adoption of sales and use tax. 28
(a) Resolution. – The board of commissioners of a county may direct the county board 29
of elections to conduct an advisory referendum within the county on the question of whether a 30
local sales and use tax at the rate of one-quarter percent (1/4%) up to one percent (1%) may be 31
levied in accordance with this Part. The election shall be held on a date jointly agreed upon by 32
the boards and shall be held on a date permitted by and in accordance with the procedures of 33
G.S. 163-287. The board of commissioners shall hold a public hearing on the question at least 30 34
days before the date the election is to be held. 35
(b) Ballot Question. – The form of the question to be presented on a ballot for a special 36
election concerning the levy of a tax authorized by this Article shall be: 37
"[ ] FOR [ ] AGAINST 38
One-quarter percent (1/4%) local sales and use taxes, in addition to the current local sales and 39
use taxes, to be used only for public transportation systems."" 40
SECTION 8. G.S. 160D-702(a) reads as rewritten: 41
"(a) A local government may adopt zoning regulations. Except as provided in subsections 42
(b) and (c) of this section, a zoning regulation may regulate and restrict the height, number of 43
stories, and size of buildings and other structures; the percentage of lots that may be occupied; 44
the size of yards, courts, and other open spaces; the density of population; the location and use 45
of buildings, structures, and land. A local government may regulate development, including 46
floating homes, over estuarine waters and over lands covered by navigable waters owned by the 47
State pursuant to G.S. 146-12. A zoning regulation shall provide density credits or severable 48
development rights for dedicated rights -of-way pursuant to G.S. 136-66.10 or G.S. 136-66.11. 49
Where appropriate, a zoning regulation may include requirements that street transportation 50
facility and utility rights-of-way be dedicated to the public, that provision be made of recreational 51
General Assembly Of North Carolina Session 2025
House Bill 641-First Edition Page 9
space and facilities, and that performance guarantees be provided, all to the same extent and with 1
the same limitations as provided for in G.S. 160D-804 and G.S. 160D-804.1." 2
SECTION 9. G.S. 160D-705(c) reads as rewritten: 3
"(c) Special Use Permits. – The regulations may provide that the board of adjustment, 4
planning board, or governing board he ar and decide special use permits in accordance with 5
principles, conditions, safeguards, and procedures specified in the regulations. Reasonable and 6
appropriate conditions and safeguards may be imposed upon these permits. Where appropriate, 7
such conditions may include requirements that street transportation facility and utility 8
rights-of-way be dedicated to the public and that provision be made for recreational space and 9
facilities. Conditions and safeguards imposed under this subsection shall not include 10
requirements for which the local government does not have authority under statute to regulate 11
nor requirements for which the courts have held to be unenforceable if imposed directly by the 12
local government, including, without limitation, taxes, impact fees , building design elements 13
within the scope of G.S. 160D-702(b), driveway -related improvements in excess of those 14
allowed in G.S. 136-18(29) and G.S. 160A-307, or other unauthorized limitations on the 15
development or use of land. 16
The regulations may provide that defined minor modifications to special use permits that do 17
not involve a change in uses permitted or the density of overall development permitted may be 18
reviewed and approved administratively. Any other modification or revocation of a special use 19
permit shall follow the same process for approval as is applicable to the approval of a special use 20
permit. If multiple parcels of land are subject to a special use permit, the owners of individual 21
parcels may apply for permit modification so long as the modi fication would not result in other 22
properties failing to meet the terms of the special use permit or regulations. Any modifications 23
approved apply only to those properties whose owners apply for the modification. The regulation 24
may require that special use permits be recorded with the register of deeds." 25
SECTION 10. This act is effective when it becomes law. 26