PHOENIX – The Arizona Department of Transportation has brought back a program made possible under state law allowing local governments to build transportation projects faster and at a lower cost by reducing red tape associated with federal funding.

The HURF Exchange Program, taking its name from the Highway User Revenue Fund, allows ADOT to exchange State Highway Fund revenues for federal Surface Transportation Block Grant Program funds with eligible local governments. ADOT is required to administer most federally funded projects, but local governments taking part in the program can now administer projects themselves, facing fewer regulatory restrictions and requirements.

“This is a win-win for the state and local communities that would otherwise have to depend on ADOT to manage their federally funded projects,” ADOT Director John Halikowski said. “Enabling local governments to administer their own projects through the HURF Exchange Program helps reduce project costs and time to completion, and allows ADOT to focus its efforts on highway projects.”

Cities, towns and unincorporated portions of counties within a regional planning area with 200,000 or fewer residents are eligible to participate in the HURF Exchange Program. Projects must be programmed as part of the HURF Exchange Program by a region’s council of governments or metropolitan planning organization, be on the federal aid system and improve the efficiency, reliability and safety of travel. ADOT will provide State Highway Fund dollars at the rate of 90 percent of the amount of federal aid programmed for eligible projects.

ADOT will review projects qualifying for the HURF Exchange Program and consult with the Federal Highway Administration to determine which federal requirements may apply. These requirements will be the responsibility of the project sponsor to fulfill and are documented in an intergovernmental agreement.

The state Legislature authorized the program in 1997, but ADOT suspended it in 2009 due to a lack of State Highway Fund revenues. Before that, the HURF Exchange Program facilitated 145 projects with a total value exceeding $90 million.

For more information on the HURF Exchange program, please visit azdot.gov/HURFExchange.