Future Surface Future Surface Transportation Transportation

OptionsOptions

Talking Freight Talking Freight August 20, 2008August 20, 2008

Tony Furst Tony Furst Acting Associate Acting Associate

Administrator for OperationsAdministrator for OperationsFHWAFHWA

Future Surface Future Surface Transportation Transportation

OptionsOptionso US Government Accountability US Government Accountability

OfficeOfficeo Surface Transportation Programs: Surface Transportation Programs:

Proposals Highlight Key Issues and Proposals Highlight Key Issues and Challenges in Restructuring the ProgramsChallenges in Restructuring the Programs

o U.S. DOT’s Vision for the FutureU.S. DOT’s Vision for the Futureo Refocus, Reform, Renew: A New Refocus, Reform, Renew: A New

Transportation Approach for AmericaTransportation Approach for America

o Section 1909 Commission reportSection 1909 Commission reporto Transportation for TomorrowTransportation for Tomorrow

GAO’s GAO’s Reauthorization Reauthorization

PrinciplesPrincipleso Define the federal role based on Define the federal role based on

identified areas of national interest and identified areas of national interest and goals.goals.

o Incorporate performance & Incorporate performance & accountability into funding decisions. accountability into funding decisions.

o Employ the best tools and approaches to Employ the best tools and approaches to improve results and return on improve results and return on investment.investment.

o Ensure fiscal sustainability. Ensure fiscal sustainability.

Themes GAO Identified Themes GAO Identified in Reauthorization in Reauthorization ProposalsProposalso Define a federal role in freight Define a federal role in freight

goods movementgoods movemento Incorporate performance & Incorporate performance &

accountabilityaccountabilityo Promote better management of Promote better management of

existing assetsexisting assetso Use multiple funding sources Use multiple funding sources o Link transportation policy & funding Link transportation policy & funding

to environment and energy sectorsto environment and energy sectors

Refocus. Reform. Refocus. Reform. Renew.Renew.

A New Transportation A New Transportation Approach for AmericaApproach for America

Six Major ThemesSix Major Themes

o More focused Federal roleMore focused Federal roleo Transportation safetyTransportation safetyo Consolidation of programs and fundingConsolidation of programs and fundingo Emphasis on interstate commerce and Emphasis on interstate commerce and

metropolitan area congestionmetropolitan area congestiono More rational investment decisionsMore rational investment decisions

o Performance measuresPerformance measureso Benefit-cost analysis Benefit-cost analysis

o Increased State/Municipal flexibilityIncreased State/Municipal flexibilityo More efficient pricing and leveraging of More efficient pricing and leveraging of

federal resourcesfederal resourceso Data/technology approach to safetyData/technology approach to safetyo More efficient/effective environmental More efficient/effective environmental

stewardship stewardship

Core ProgramsCore Programs

o Federal Interest Highway (FIH) Federal Interest Highway (FIH) o Metro Mobility (MM)Metro Mobility (MM)o Mobility Enhancement (ME)Mobility Enhancement (ME)o Highway Safety Improvement (HSIP)Highway Safety Improvement (HSIP)o OtherOther

o Federal Lands Highways and Transit Federal Lands Highways and Transit (FLH&T)(FLH&T)

o Modal AdministrationsModal Administrationso ResearchResearcho Transportation Infrastructure Finance & Transportation Infrastructure Finance &

Innovation Act Program (TIFIA)Innovation Act Program (TIFIA)

Freight ImplicationsFreight Implications

o Federal Interest HighwaysFederal Interest Highwayso Metropolitan MobilityMetropolitan Mobilityo Motor Carrier Safety Grant Program Motor Carrier Safety Grant Program

FlexibilityFlexibilityo TIFIA Reform TIFIA Reform o Rest Area Quality Improvement Pilot Rest Area Quality Improvement Pilot o Enhance access to private activity Enhance access to private activity

bondsbondso Enhanced flexibility on state Enhanced flexibility on state

infrastructure banksinfrastructure bankso Tolls and Direct Pricing Tolls and Direct Pricing

o Key AspectsKey Aspectso Investment focused on interstate systems Investment focused on interstate systems

and other nationally significant and other nationally significant transportation assetstransportation assets

o 80% formula and 20% discretionary funding80% formula and 20% discretionary fundingo Focus on performance (congestion, Focus on performance (congestion,

pavement quality, safety, etc.)pavement quality, safety, etc.)o Benefit-cost analysis of projects over $25MBenefit-cost analysis of projects over $25Mo Public private partnership (PPP) Public private partnership (PPP)

comparison for projects > $250Mcomparison for projects > $250M

Federal Interest Highway Federal Interest Highway (FIH) Program(FIH) Program

Metropolitan Mobility Metropolitan Mobility (MM) Program(MM) Program

o Key AspectsKey Aspectso Investment in metropolitan areas with populations Investment in metropolitan areas with populations

over 500,000over 500,000o Addresses congestion in areas that account for most Addresses congestion in areas that account for most

of the Nation’s economic outputof the Nation’s economic outputo Managed by regionally-designated Metropolitan Managed by regionally-designated Metropolitan

Transportation BoardTransportation Boardo Highway and transit funding no longer separatedHighway and transit funding no longer separatedo 70% Formula and 30% discretionary funding70% Formula and 30% discretionary fundingo 50/50 match requirement50/50 match requiremento Performance focus (congestion, safety, pavement Performance focus (congestion, safety, pavement

quality, state of good repair, etc.)quality, state of good repair, etc.)o Benefit-cost analysis for projects > $25 MBenefit-cost analysis for projects > $25 Mo Required PPP comparison for projects > $250 MRequired PPP comparison for projects > $250 M

o Motor carrier safetyMotor carrier safetyo Consolidation of 10 separate grant Consolidation of 10 separate grant

programs into one and increases flexibilityprograms into one and increases flexibilityo Single set of matching requirements Single set of matching requirements o Authority for FMCSA to use grant funds Authority for FMCSA to use grant funds

for contracts in support of national for contracts in support of national program activities program activities

o New maintenance of effort standard so New maintenance of effort standard so States are not penalized when contribute States are not penalized when contribute additional State resourcesadditional State resources

Commercial Motor Commercial Motor Vehicle Safety Grant Vehicle Safety Grant

ProgramProgram

o TIFIA reforms TIFIA reforms o Repayment flexibility on a case-by-case basis for Repayment flexibility on a case-by-case basis for

schedules and maturity datesschedules and maturity dateso Credit assistance in the form of loan guarantees Credit assistance in the form of loan guarantees

or lines of credit not subject to Title 23/49or lines of credit not subject to Title 23/49o Ability to cover up to 50% of project costs if Ability to cover up to 50% of project costs if

repayment is from direct pricing repayment is from direct pricing o Loan guarantees/lines of credit may supplement Loan guarantees/lines of credit may supplement

secured loans as long as total assistance does secured loans as long as total assistance does not exceed 40% of eligible project costsnot exceed 40% of eligible project costs

o Currently, credit assistance is limited to 33% of total Currently, credit assistance is limited to 33% of total project costproject cost

Transportation Transportation Infrastructure Finance & Infrastructure Finance & Innovation Act ProgramInnovation Act Program

Rest Area Pilot ProjectRest Area Pilot Project

o Rest Area Quality Improvement Rest Area Quality Improvement PilotPiloto Ten statesTen stateso Competitive franchise agreementsCompetitive franchise agreementso Excess revenue dedicated to Title Excess revenue dedicated to Title

23 purposes23 purposeso Improvements to truck parking Improvements to truck parking

facilitiesfacilities

Transportation for Transportation for TomorrowTomorrow

Report of the National Surface Report of the National Surface TransportationTransportation

Policy and Revenue Study CommissionPolicy and Revenue Study Commission

December 2007December 2007

Recommendations: Recommendations: New Federal CompactNew Federal Compact

o A strong federal roleA strong federal roleo Improved effectiveness & Improved effectiveness &

accountability for investmentsaccountability for investmentso Investment strategies targeted at Investment strategies targeted at

performance outcomes performance outcomes o Increased expenditures from all levels Increased expenditures from all levels

of government & private sectorof government & private sectoro Institutional & Federal program Institutional & Federal program

delivery reformsdelivery reforms

The National Interest: The National Interest: Ten Focus AreasTen Focus Areas

o Rebuilding America: a Rebuilding America: a National Asset National Asset Management ProgramManagement Program

o Freight Freight Transportation: A Transportation: A Program to Enhance Program to Enhance U.S. Global U.S. Global CompetitivenessCompetitiveness

o Congestion Relief: Congestion Relief: Improved Metropolitan Improved Metropolitan MobilityMobility

o Saving Lives: National Saving Lives: National Safety Mobility ProgramSafety Mobility Program

o Connecting America: Connecting America: National Access Program National Access Program for Smaller Cities and for Smaller Cities and rural Areasrural Areas

o Intercity passenger Rail: Intercity passenger Rail: Serve High-growth Serve High-growth corridors…corridors…

o Environmental Environmental Stewardship: Stewardship: Investment…to support a Investment…to support a healthy environmenthealthy environment

o Energy Security: to Energy Security: to accelerate development of accelerate development of environmentally environmentally friendly…fuelsfriendly…fuels

o Federal Lands: … Federal Lands: … providing Public Accessproviding Public Access

o Research, Development & Research, Development & technology: Coherent technology: Coherent Transportation research Transportation research Program for the Nation.Program for the Nation.

Freight Focus Freight Focus

o Freight Challenges:Freight Challenges:o Maintaining global competitiveness & Maintaining global competitiveness &

supporting interstate commercesupporting interstate commerceo Infrastructure capacity & performanceInfrastructure capacity & performance

o Freight Investment ProgramFreight Investment Programo Capacity improvements in key corridorsCapacity improvements in key corridorso P3’sP3’so Environmentally friendly freight Environmentally friendly freight

improvementsimprovements