# Presentation: 835263

## Freight Issues in the Report of the National Surface Transportation Policy and Revenue Study CommissionTransportation for Tomorrow 

## The Commission

- Established under Section 1909 of SAFETEA-LU
- 12 commissioners appointed by the President and Congressional leaders
- Secretary of Transportation served as Chair
- Views of the Commission do not represent the views of the USDOT or its staff

## Statutory Objectives

- Examine future conditions and needs of the surface transportation system over 15-, 30-, and 50-year time horizons.
- 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.

## The Work of the Commission

- Monthly meetings (May 2006-Dec 2007)
- Public meetings
- Field hearings
- Private briefings from industry groups
- Issue papers

## Structure of the Report

**Volume I – Detailed Findings &  Recommendations**
**Volume II – Technical Subject Treatment**
**Volume III – Issue Papers & Analyses, Testimony, and Related Background Documents (including external studies) **

##  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-   Current institutions and program delivery mechanisms are outdated and result in a mismatch between supply and demand for transport services.

## Recommendations 5-Part New Federal Compact

- A strong Federal role
- Increased expenditures from all levels of government & the private sector
- Improved effectiveness & accountability for  investments
- Investment strategies targeted at  performance outcomes
- Institutional and Federal program delivery reforms

## The National Interest: Ten Focus Areas

**Rebuilding America**:  A National Asset Management Program
**Freight Transportation****:  A Program to Enhance U.S. Global Competitiveness**
**Congestion Relief**: A Program for Improved Metropolitan Mobility
**Saving Lives**: A National Safe Mobility Program
**Connecting America**:  A National Access Program for Smaller Cities and Rural Areas

**Intercity Passenger Rail**:  ....to Serve High-Growth Corridors by Rail
**Environmental Stewardship**:  ...Investment ...to Support a Healthy Environment
**Energy Security**:  ...to Accelerate ... Development of Environmentally-Friendly Replacement Fuels
**Federal Lands**:  ... Providing Public Access
**Research, Development, & Technology**:  A Coherent Transportation Research Program for the Nation

## Critical Factors Influencing the Future Demand for Freight Movement 

- Economic Growth
- International Trade
- Commodity Mix
- Operational Efficiency
- Changes in Business Practices

## Infrastructure Challenges 

- Age and Deterioration
- Congestion
- Safety
- Energy Security and Environmental Protection
- Population Growth

## Freight Challenges 

- Maintaining global competitiveness and supporting interstate commerce
- Infrastructure capacity and performance
- Ports and international gateways
- Intermodal connections
- Freight bottlenecks in congested cities

## Freight Investment Program 

- Capacity improvements in key freight corridors
- Public-private partnerships
- Intermodal, rail, and port facilities
- Environmentally-friendly freight improvements
- Current examples
- Alameda corridor
- CREATE

## Needs Analysis

- Highway and transit needs analysis based on tools used for USDOT’s Conditions and Performance Report
- Freight rail investment needs developed  for Commission by AAR
- Both the highway and freight rail investment analyses drew on freight projections from the Freight Analysis Framework

## Funding Sources for Future Investment 

- General user fee increases
- Near term:  fuel taxes
- Long term: VMT-based fees
- Potential new freight fees
- Would be deposited with other user fees in a consolidated Surface Transportation Trust Fund
- Investment tax credits for transportation facility owners
- New taxes and fees not endorsed by all Commissioners

## Policy and Financial Issues 

- Assessing public and private benefits and allocating financial responsibility
- Impacts of tolling on freight movement
- Modal neutrality
- Geographic alignment of revenue sources and uses
- Track access for passenger rail
- Developing exclusive passenger and freight facilities
- Issues were raised by Commission, but not resolved

## For More Information

- The full report is available at
*www.transportationfortomorrow.org*