Intercity Transportation - National RTAP
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Intercity Transportation
Since the 1980s, intercity bus services such as Greyhound, Jefferson Lines, Express Arrow,
Indian Trails, and Barons Bus have worked with the states and rural operators to expand
rural passenger transit opportunities, but expansion was limited due to insufficient funding,
inflexible ticketing options and unsophisticated technology. As federal guidance and
technology has advanced, outreach for partnership opportunities to rural communities by
the intercity bus industry has become more effective and successful.
Released November 2019
Introduction, Background and History
The Bus Regulatory Reform Act of 1982 began a period of several decades in which the private for-
profit intercity bus carriers eliminated much of the rural bus service which had previously been
cross-subsidized by profits from charters and interstate bus routes between larger cities. Beginning
in the late 1980s, the industry began to work with rural operators under the Greyhound Rural
Connection program to replace some of the lost service through connections with local rural public
transit providers.
Federal assistance for rural intercity bus service began in 1991 when the Federal Transit
Administration’s (FTA’s) Section 18(i) intercity bus set-aside was created as part of the Intermodal
Surface Transportation Efficiency Act (ISTEA). In 1994 the Section 18(i) program was codified as
Section 5311(f). This section requires each state to spend at least 15% of its overall Section 5311
apportionment on rural intercity bus services, unless the Governor certifies to the U.S. Secretary of
Transportation that there are no rural intercity bus needs in the state. States must conduct a
consultation process with potential stakeholders, including intercity bus providers, before making
such a determination. For FY2020, total appropriations for the Section 5311 program are $673.3
million, of which 15% is set aside for rural intercity bus projects
Use of the Section 5311(f) rural intercity bus program greatly increased after the FTA issued
guidance in 2006 allowing the value of connecting unsubsidized intercity bus service to be used as
in-kind match for operating assistance projects. This pilot project was made statutory as part of the
2012 reauthorization bill “Moving Ahead for Progress in the 21st Century” (MAP-21). Currently 29
states are using this method to fund rural intercity bus projects, and another four are in the
implementation planning process. Over 600 places are receiving intercity bus service under the
Section 5311(f) program. Some of these places benefit from increased frequencies, most would not
otherwise have service.
An intercity bus stop analysis published in 2017 by the Small Urban and Rural Livability Center
found that nationally, the majority of intercity bus stops are located in rural areas, with 28 of the 48
contiguous U.S. states having 80% of their intercity bus stops located in rural areas.
1Rural Intercity Bus Service Defined—Section 5311(f)
FTA defined intercity bus service in the National RTAP 101 Webinar Series: FTA Intercity Bus
Program webinar:
• Regularly scheduled service for the general public that operates with limited stops over fixed
routes connecting two or more urban areas not in close proximity.
• Has the capacity for transporting baggage carried by passengers
• Makes meaningful connections with scheduled intercity bus service to more distant points, if
such service is available.
• For purposes of the 15% set-aside, intercity service does not include commuter service. It
also does not include air, water, and rail service.
Eligible Activities under Section 5311(f)
As listed in Formula Grants for Rural Areas: Program Guidance and Application Instructions (FTA
C 9040.1G, Chapter VIII.8), eligible activities for intercity bus services are:
• Planning and marketing for intercity bus transportation
• Capital grants for intercity bus shelters, joint-use stops and depots
• Operating grants through purchase-of-service agreements, user-side subsidies, and
demonstration projects
• Coordination of rural connections between small transit operations and intercity bus carriers
• Operating assistance for the direct operation of intercity bus service
• Capital assistance to purchase vehicles or vehicle related equipment for use in intercity bus
service
Public transportation providers, government agencies, and private non-profit organizations may all
partner with intercity providers to offer services. States may choose to provide assistance to
operators of intercity bus service using a contractual relationship.
Use of In-Kind Match under Section 5311(f)
Section 5311(f) is unique in that it allows the non-federal match for operating projects to be
provided as in-kind. Under this provision, a rural intercity bus project is redefined to include both a
subsidized segment (for which funding is required), and an unsubsidized segment of connecting
service. The full value of the fully-allocated operating cost of the unsubsidized segment can be
counted as the match, allowing the subsidized segment to receive the federal operating funds.
Through careful project design, it may be possible to fund the entire subsidy requirement of the
combined project with federal dollars. The private carrier operating the unsubsidized segment must
provide a letter stating that they are participating in the project, specifying the connecting
unsubsidized service that is being valued, and providing the value of that service.
Greyhound Lines provides most in-kind match, as it as a national network that is largely
unsubsidized. It has a number of conditions for providing the match. These include:
• The service to receive subsidy must be scheduled service
• It must have proper operating authority and insurance
• Should be operated preferably seven days a week but no less than five days a week
• Should not duplicate existing subsidized or unsubsidized intercity bus service
2• Should be scheduled to provide connections within a two-hour window of the connecting
scheduled Greyhound service at the connection point
• Should offer interline ticketing
• Must be able to meet all FTA Section 5311(f) eligibility requirements, including ADA
accessibility of vehicles and trained staff
Other carriers that provide services that would otherwise be eligible for Section 5311(f) projects may
provide in-kind match, and an eligible carrier may provide match for its own subsidized service.
Interlining and Intercity Transportation
Rural operators can benefit from intercity bus schedules and routes by becoming ‘interline’ partners.
This works by having the customer purchase one ticket that includes transportation from the rural
point to any area across the country where the intercity service runs. There are significant advantages
to interline ticketing, as the service is included in the national ticketing system and passengers can
find the service on Greyhound and other ticketing systems and purchase tickets to and from
anywhere on the network. Interlining is seamless ticketing, where each company providing service
to a passenger honors the ticket of the issuing company.
Interlining requires Federal Motor Carrier Safety Administration (FMCSA) authority, insurance and
vehicle safety standards, but potential revenue is higher, and marketing area is greater. Rural
operators can participate in the national interline ticketing system through membership in the
National Bus Traffic Association (NBTA), which is the national clearinghouse for interline tickets.
NBTA has created a “sponsored membership” category for rural operators to participate through a
sponsoring regular carrier member, minimizing costs and hassles. NBTA works one-on-one with
rural agencies to help establish such relationships. An NBTA-sponsored transit agency membership
is $25 along with an annual fee of $100. More information on NBTA is contained in the NBTA
Section at http://www.bustraffic.org/). Rural operators that interline can earn the full value of their
fare. In addition, a rural operator can become a commission agent and sell intercity bus tickets on
the national network, earning a percentage of each ticket sold. Through this ticketing a rural
operator can sell tickets to destinations in the United States, Canada and Mexico.
Steps to Developing Intercity Service and Partnering with
Intercity Providers
1. Identify service needs: demographic analysis, trip characteristics, existing services, etc. Seek
community input, consider opportunities to connect with existing services.
2. A merit-based selection process should be used to ensure the best and most appropriate service
operator is selected - whether through a competitive grant program or a contract.
3. Registration with FMCSA if the service will cross state lines or if the service will have interline
ticketing offering interstate travel.
4. FMCSA insurance requirements must be met - see section below.
5. If interline ticketing is to be provided, the operator must participate in the NBTA.
6. Rural intercity carriers do not have to become ticket commission agents, though they can opt to
do this to collect a commission on intercity tickets that they sell.
7. The FTA Section 5311(f) requirements call for services to make a meaningful connection with
the national network of intercity bus services, serving common shared stops, with schedules
allowing convenient transfers. This requires schedule coordination to avoid long waits for
connecting buses.
38. To access private carrier intercity bus terminals a
provider will need to complete a bus terminal license. Case Study - Travel Washington
Check with the intercity provider regarding their bus Intercity Bus Program
terminal access requirements. Public intermodal
terminals also will require access agreements. Washington State Department of
9. Interline ticketing can be done through the National Transportation’s (WSDOT) original intercity
Bus Ticketing System (NBTS), which is a Google bus program was managed on a grant basis
Chrome application requiring only an internet and projects were locally generated without
connection and a regular printer. regard to gaps in the state’s overall network
10. Training provided by intercity provider representatives, of intercity bus services. Transit leadership
with train-the-trainer options provided for larger wanted to expand the program through
organizations development of a comprehensive network
11. Initiate service. Consider branding and marketing plan.
plans to inform potential users. Always keep
connecting carriers informed about connecting Greyhound entered into a pilot project with
schedules, and monitor intercity schedules so as to WSDOT in 2005; the partnership resulted in
avoid breaking scheduled connections. the launch of new routes on a contract basis.
12. Reporting and interline ticketing: The Northwest Motorcoach Association,
chambers of commerce, elected officials,
• Commission Agency: Types of reporting generally
and local businesses became involved in the
are typically daily, weekly, or monthly
project and contributed to its success.
• Sponsored Carrier: The provider can work with
their sponsoring carriers through the NBTA; The value of the private portion of the route
typically, tickets are reimbursed on a monthly basis. is counted as the required local match, with
• Regular NBTA Carrier: Carriers settle monthly with FTA grant funds used to provide the needed
each other for tickets lifted subsidy for the subsidized segment. The
13. Reporting—state funding agency: public-private partnership was codified as
• Typically grant agreements or contracts for funding part of the MAP-21 reauthorization.
of rural intercity services will specify required state WSDOT pioneered the use of in-kind match
program reporting, usually involving monthly to provide the local operating match,
ridership, revenues, operating costs, etc. working with FTA officials to develop the
pilot that led to this change in the national
Insurance Requirements program. All lines make connections that did
Fixed route and demand-response feeder services that not exist before and rural areas that didn’t
interline with intercity providers must comply with have transit service now do.
FMCSA insurance requirements—$1.5 million for vehicles
with a seating capacity of 15 or fewer passengers and $5.0 WSDOT branded all of the services as
million for vehicles with a seating capacity of 16 or more Travel Washington, giving each corridor a
passengers. The insurance requirements to apply interlined name reflecting local character: Grape Line,
services whether or not they cross state lines. In general, Gold Line, Dungeness Line, and Apple Line.
FMCSA requires insurance to be provided by commercial All routes have schedules coordinated to
carriers, not accepting insurance provided under municipal connect to intercity services provided by
or other public pools. Greyhound Lines and Northwestern
Trailways. The routes served over 92,000
Any rural feeder services that access an intercity bus riders through 2019, and the numbers
terminal should maintain a general liability policy with a continue to grow. This project has served as
combined single limit of not less than $1 million. The a model for many other intercity bus
intercity provider must be added as an additional named programs throughout the nation. The Travel
insured on these policies, as well. Washington Intercity Bus Program
highlights the value of public-private
partnerships and private sector investment.
4Fares
Establishing fares is the responsibility of the local rural operator. If interlined, the local operator can
receive their full fare for their share of an intermodal ticket. Interlining operators will upload that
information into the intercity provider’s nationwide ticketing system. The intercity provider will then
be able to quote local operator fares (and vice versa). The rural operator can develop their own fare
based on models such as flat fares, zoned fares, or fares-per-mile. Fares can be collected onboard by
conductors or drivers, through fare boxes, or through electronic means (such as mobile apps).
Intercity providers now utilize revenue management systems to price trips based on how far in
advance a ticket is purchased, its refundability, rider characteristics, etc., and so fares for the same
trip can vary considerably. However, the participating rural operator can always get their full fare
from the intercity carrier.
Interlining Ticketing Options
A rural operator may sell intercity service tickets if it becomes a commissioned agent, which means it
must execute a Standard Independent Commission Agreement (SICA), specifying the obligations of
both parties for:
• Sale of tickets
• Accounting requirements
• Reporting and payment requirements
• Certain related liability issues
Ticketing systems, such as the National Bus Ticketing System used by Greyhound and other carriers,
can benefit transit agencies and passengers by:
• Producing baggage checks
• Honoring tickets sold online
• Allowing for entry of package shipments
• Providing the full value of the rural operator’s fare payment for their portion of the trip
Personal Belongings and Packages
Intercity carriers may check bags, although passengers should be informed to contact the provider
for rules as to size, weight, contents and acceptable containers. Liability limits also prevent escalated
claims of damage or loss.
At the same time the carrier is also responsible for damages or loss of packages accepted for
transportation. The operator may offer station-to-door delivery, though it is not required.
Intercity carriers often provide online shipment management tools, such as routing, order entry,
real-time integration with ground operations, shipment monitoring, and automated notification.
Marketing and 5311(f) Grant Assistance
Intercity service logos and names can be used with permission in conjunction with local rural feeder
services, in most circumstances. Major providers use national radio, Internet, print, and social media
advertising, and recommend that new feeder services implement a strong local and regional
campaign. A number of state programs have developing branding for rural intercity projects.
Marketing is an eligible Section 5311(f) expense.
5Bus Terminal Access
In order to access intercity owned/leased and operated terminals and stations, a rural feeder service
operator must execute a Bus Terminal License (BTL) agreement (see Greyhound Lines Inc.’s
template at http://nationalrtap.org/Resource-Library/Advanced-Search/?fid=1050) and provide
the aforementioned general liability insurance policy which names the intercity provider as an
additional insured. Access to stations that are operated by independent commissioned agents may
involve different requirements. The intercity provider will offer assistance to feeder service operators
to access these locations.
Accessibility
All Section 5311(f) projects must be fully accessible for individuals with disabilities. All vehicles
used in such services must be fully accessible under Part 38 of the Americans with Disabilities Act
(ADA), and all operators must trained to proficiency in the use of accessibility devices. Large
operators of over-the-road coaches have been required to be fully accessible (including Greyhound),
and they require that connecting interline services (including those services for which they provide
in-kind match) meet these accessibility requirements. All public and private transportation
providers are subject to the requirements of 49 CFR Part 37, Subpart G—Provision of Service.
Operators of over-the-road coaches are subject to the requirements of Subpart H—Over-the-Road
Buses (OTRBs). Complementary paratransit is not required for intercity services.
Future Directions
More and more intercity bus services are utilizing emerging technologies to add features for ease of
use and efficiency. Some providers are using crowdsourcing techniques to gain insight into demand
and provide additional services, including pop-up services for special events, ticket purchasing travel
apps, bus tracker tools, and Internet ticketing with carrier comparison capabilities. While Greyhound
(which also operates BoltBus) still has the largest share of the intercity market and is the only
national carrier, many large and small carriers that have entered the market in recent years, focusing
on point-to-point express services between major cities and university towns. Maintaining and
improving connections between rural areas and the services in the larger cities will require the use of
these programs to provide routes serving rural stops.
Expanding partnerships are also on the horizon. In 2019, Panhandle Trails Intercity Bus began
working with Feonix in the Mobility by Design program to launch a new service called “Panhandle
Connect” with a grant from the Nebraska DOT. The Panhandle service will enable seniors and
individuals with disabilities to connect with both existing municipal and intercity public transit and
intercity service options in sparsely-populated western Nebraska, where demand does not support
daily scheduled service. Another new initiative in 2019 was a partnership formed by Peter Pan Bus
Line officials with the Regional Transit Authority and Cape Cod Healthcare to expand service to
area medical centers, including the possibility of vouchers to make rides more affordable or free.
As the intercity industry evolves, there will be continued opportunities for rural transit agencies to
offer their riders service to many areas where few or no services existed previously.
This technical brief is adapted from the retired National RTAP technical brief Partnering with Greyhound (2011). National RTAP staff
would like to thank Fred Fravel and Beth Hamby of KFH Group and Stephen R. Abernathy, Isaacs & Associates, Greyhound State
Government Relations for the development and update of this 2019 technical brief.
6Further Information
Antolin, Brian, Schwieterman, Joseph P. and Matthew Jacques. New Directions: 2019 Outlook for
the Intercity Bus Industry in the United States. Chicago, IL, Chaddick Institute for Metropolitan
Development, DePaul University. 2019. https://las.depaul.edu/centers-and-institutes/chaddick-
institute-for-metropolitan-development/research-and-
publications/Documents/2019%20Intercity%20Bus%20Outlook%20%202.1.pdf
Clouser, Karalyn and David Kack. Intercity Bus Stop Analysis. Montana State University, College of
Engineering, Small Urban and Rural Livability Center, 2017.
https://rosap.ntl.bts.gov/view/dot/36773
Darus, Alex. Peter Pan to Add Bus Stops at Cape Medical Centers. Cape Cod Times. November 17,
2019. https://www.capecodtimes.com/news/20191117/peter-pan-to-add-bus-stops-at-cape-
medical-centers. Accessed November 18, 2019.
Feonix Mobility Rising. Connecting Rural Transit Options and Filling Gaps in Service. October
2019. https://feonixmobilityrising.org/october-2019#e12e9f80-83ec-4c3f-8e40-09a563187912.
Accessed November 18, 2019.
FMCSA Regulations as they Apply to FTA Section 5310/5311 Providers: A Handbook. 2006.
http://onlinepubs.trb.org/onlinepubs/nchrp/nchrp_rrd_311.pdf.
FMCSA’s Frequently Asked Questions. http://www.fmcsa.dot.gov/about/other/faq/faqs.aspx.
Accessed October 17, 2019.
Formula Grants for Rural Areas: Program Guidance and Application Instructions (FTA C 9040.1G,
Chapter VIII.8). 2014. https://www.transit.dot.gov/regulations-and-guidance/fta-circulars/formula-
grants-rural-areas-program-guidance-and-application.
Greyhound Lines Inc. Bus Terminal Lease Agreement. August 2018.
http://nationalrtap.org/Resource-Library/Advanced-Search/?fid=1050
National Bus Traffic Association’s National Intercity Bus Directory.
http://www.bustraffic.org/NIBD_TOC.aspx. Accessed October 17, 2019.
National Cooperative Highway Research Program (NCHRP). Analysis of State Rural Intercity Bus
Strategies: Requirements for Utilization of S.5311(f) Funding. 2011.
http://www.trb.org/Main/Blurbs/166318.aspx
National Cooperative Highway Research Program (NCHRP). Best Practices in Rural Regional
Mobility. 2017. http://www.trb.org/Main/Blurbs/176823.aspx
National RTAP. 101 Webinar Series: FTA Intercity Bus Program. 2015.
http://nationalrtap.org/Resource-Library/Advanced-Search/fid=1020
Schwieterman, Joseph P. The Decline and Revival of Intercity Bus Service. TR News, 2016.
http://onlinepubs.trb.org/Onlinepubs/trnews/trnews303.pdf. Accessed November 22, 2019.
Transit Cooperative Research Program (TCRP). Effective Approaches to Meeting Rural Intercity
Bus Transportation Needs. 2002. http://www.trb.org/Publications/Blurbs/161424.aspx
Transit Cooperative Research Program (TCRP). Toolkit for Estimating Demand for Rural Intercity
Bus Services. 2011. http://www.trb.org/Main/Blurbs/165858.aspx.
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