Assessment of Availability and Need for Intercity Bus Services in Utah

The intercity bus industry has been in decline for the last 40 years. The decline has been attributed to the increase in automobile availability, intense intermodal competition, and competition from package express carriers. In 1982, the Bus Regulatory Reform Act (BRRA) made it possible for the bus industry to abandon unprofitable routes and shortly thereafter numerous communities experienced service losses. The majority of these communities had populations of 2500 or less. In 1991 under the Intermodal Surface Efficiency Act (ISTEA), the federal government developed a program to address intercity bus service needs in rural areas. States were required to set aside a portion of their Section 5311 (f) funds to support intercity services. Eligible activities under the Section 5311 program included: planning and marketing for intercity bus transportation; capital gains for intercity bus shelters, joint use of bus stops and depots; operating grants through purchase of service agreement; user-side subsidies and demonstration projects; and coordination of rural connections between small transit operators and intercity bus carriers. Like other Section 5311 programs, operating expenses require a 50% local match, and capital and project administration require a 20% match. Eligible recipients for Section 5311 funds include state and local agencies, private non-profit organizations, and operators of public transportation services. This study describes the state of the intercity bus system in Utah and provides recommendations for the implementation of Section 5311.