Report of the Section 1909 National Surface Transportation Policy by armedman1


									                             Report of the Section 1909
                       National Surface Transportation Policy
                          and Revenue Study Commission
                                           Released: January 15, 2008

                                Presentation to the National Association of State
                                      Highway and Transportation Unions
                                    Ninth Annual Conference - April 28, 2008

Susan J. Binder
FHWA Deputy Associate Administrator
for Policy and Government Affairs
and Executive Director of the Commission
            Statutory Objectives
•   Examine condition/ needs of the surface transportation
    system for 15-, 30-, and 50-years.

•   Develop a conceptual plan, with alternative
    approaches, to ensure that the system will continue to
    serve the needs of the US for the 21st Century.

•   Examine the roles of the various levels of government
    and the private sector in meeting future surface
    transportation financing needs.

•   Recommend alternatives to replace or supplement the
    fuel tax as the principal revenue source to support the
    Highway Trust Fund.
       Structure of Report
• Volume I – Detailed Findings &
• Volume II – Technical Subject Treatment
• Volume III – Issue Papers & Analyses,
  Testimony, and Related Background
  Documents (target release end February
  2008) including external studies
•   Mary Peters, Secretary of Transportation
•   Frank Busalacchi, Wisconsin Secretary of Transportation
•   Maria Cino, Former Deputy Secretary of Transportation
•   Rick Geddes, Cornell University
•   Steve Heminger, Executive Director, Metropolitan
    Transportation Commission
•   Frank McArdle, General Contractors Association of New York
•   Steve Odland, Chairman and CEO, Office Depot
•   Patrick Quinn, Co-Chairman, U.S. Xpress Enterprises
•   Matt Rose, CEO, Burlington Northern Santa Fe Railroad
•   Jack Schenendorf, Covington & Burling
•   Tom Skancke, CEO, The Skancke Company
•   Paul Weyrich, Chairman and CEO, Free Congress Foundation
       Major Future Factors

• Extensive population growth & shifting
• Emergence of mega-regions
• Increasing demand for mobility
• Environmental and energy realities
• Freight transportation growth in a global
• Aging infrastructure clogged by
  escalating traffic congestion
          Central Conclusion:
           A New Beginning
To create and sustain the pre-eminent surface
transportation system in the world.

• The Federal surface transportation program should not
be reauthorized in its current form.

• Outgrown the transportation system that serves our
mobility and our commerce to ensure U.S. prosperity and
global preeminence for generations to come.

• Current institutions and program delivery mechanisms
are outdated and result in a mismatch between supply and
demand for transport services.
 5-Part New Federal Compact
• A strong Federal role
• Increased expenditures from all levels of
  government & the private sector
• Improve effectiveness & accountability for
• Investment strategies targeted at
  performance outcomes
• Institutional and Federal program delivery
Minority View – Chairman
Peters, Cino, Geddes
•   Agreed to much in the report
     – Importance of transportation
     – Opportunities for simplification, consolidation, streamlining
     – Need for greater accountability and better investment
•   Disagreed with solutions, based on philosophy
     –   Federal Fuel taxes as the solution
     –   Unnecessarily large Federal role
     –   Inappropriate definition of “need”
     –   NASTRAC
     –   Restrictions on pricing and private investment
     –   Inclusion of earmarks
     –   Energy research concerns
       #1 A strong Federal role

• Surface transportation
• More than “more money”?
• Evolve to meet the national interest
   – Facilities well maintained
   – Mobility within and between metropolitan areas is reliable
   – Transportation systems are appropriately priced
   – Modes are rebalanced and travel options are plentiful
   – Freight movement is explicitly valued
   – Safety is assured
   – Transportation decisions and resource impacts are
   – Rational regulatory policy prevails
 #2 Increased expenditures from all
 levels of government & the private

• Compensate for past investment
  failures while addressing significant
  increases in future demand
• Based on combination of needs
  analyses and interest group
 Needs analysis was at the core of
  the charge to the Commission

Commissioners’ conclusion:
Significant new funding will be needed.

• Annual investment requirement to improve the
  condition and performance of all modes of surface
• Between $225 and 340 billion by all levels of
  government and the private sector
    #3 Improve effectiveness &
   accountability for investments

• Structural features key to successful
  program reform
• Programs defined based on outcomes
• Eliminates (for the most part) modal
• Individual National plan associated with
  the programs
• Integration across plans to form
  National Strategic Plan
 #4 Investment strategies targeted
     at performance outcomes
• Concentrate Federal surface
  transportation investment in 10 program
• Discipline of benefit-cost and other
  systematic criteria
• Planning process directed at outcomes
   – USDOT, working collaboratively with its partners
     and stakeholders
   – Establish performance standards critical to serve
     the national interest
   – National target set for the long run
   – Expectations that grantees accountable for
     progress, with consideration of variability across
     States and localities
       #5 Institutional and Federal
        program delivery reforms

• Grantees appropriate to the category go beyond
  States to include regional and private entities

• Reforming program and project development
   –   reduce the excessive time
   –   Improve project decisions
   –   Reduce project and program management costs
   –   Realize benefits sooner
   –   Responsive to accelerated business conditions

• Independent commission “NASTRAC” to temper
  politization of funding and earmarking
          The National Interest:
            Ten Focus Areas
Rebuilding America: A National   Intercity Passenger Rail: ….to
Asset Management Program         Serve High-Growth Corridors by
Freight Transportation: A        Environmental Stewardship:
Program to Enhance U.S. Global   …Investment …to Support a
Competitiveness                  Healthy Environment
Congestion Relief: A Program     Energy Security: …to
for Improved Metropolitan        Accelerate … Development of
Mobility                         Environmentally-Friendly
                                 Replacement Fuels
Saving Lives: A National Safe    Federal Lands: … Providing
Mobility Program                 Public Access
                                 Research, Development, &
Connecting America: A            Technology: A Coherent
National Access Program for      Transportation Research
Smaller Cities and Rural Areas   Program for the Nation
Paying the Bill

•   Immediate: HTF solvency
•   Mid-range: Increasing Federal Revenues thru 2025
     – Gas Tax infusion
     – Federal ticket tax for Transit
     – Freight fees (customs, investment tax credits, possible
       container fee)
     – Ticket tax for passenger rail
•   Mid-range: Increasing State, Local, Private
     – Remove barriers to tolling and pricing but with conditions
     – Surface Transportation Fund
     – Freight fund TBD
•   Long-term
     – Transition to VMT fees
          Federal Fuel Tax

• Raise the Federal fuel tax by between
  25 and 40 cents per gallon, with the
  traditional Federal share of 40 percent
  of total transportation capital funding.
• Index any rate increase to the
  construction cost index and phase in
  over a period of years.
• After 2025, the most promising
  alternative appears to be a vehicle
  miles traveled fee, provided that
  substantial privacy and collection cost
  issues can be addressed.
   Next Steps: Hearings and
• Wrap-up activities: archiving, FOIA,
  speeches, limited outreach

• Lays the groundwork

• Refreshes the Policy literature

• Stimulates interest and discussion
For More Information

  The full report is available at

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