# Presentation: 048349

## Future Surface Transportation OptionsTalking Freight August 20, 2008

**Tony Furst **
**Acting Associate Administrator for Operations**
**FHWA**

## Future Surface Transportation Options

**US Government Accountability Office**
- Surface Transportation Programs: Proposals Highlight Key Issues and Challenges in Restructuring the Programs
**U.S. DOT’s Vision for the Future**
- Refocus, Reform, Renew: A New Transportation Approach for America
**Section 1909 Commission report**
- Transportation for Tomorrow

## GAO’s  Reauthorization Principles

- Define the federal role based on identified areas of national interest and goals.
- Incorporate performance & accountability into funding decisions.
- Employ the best tools and approaches to improve results and return on investment.
- Ensure fiscal sustainability.

**Notes:**
Federal Role:
Given the regional benefits provided by freight corridors and the importance of interstate commerce
Linking policy & funding to environment and energy:
Given transportation’s contribution to greenhouse gas emissions and concerns about energy security
Better management of assets:
Through efficient use of life-cycle management strategies
Performance and accountability:
Into transportation programs to ensure projects that receive funding result in commensurate public benefits
Multiple funding sources:
To ensure the long term sustainability of the programs

## Themes GAO Identified in Reauthorization Proposals

- Define a federal role in freight goods movement
- Incorporate performance & accountability
- Promote better management of existing assets
- Use multiple funding sources
- Link transportation policy & funding to environment and energy sectors

**Notes:**
Federal Role:
Given the regional benefits provided by freight corridors and the importance of interstate commerce
Linking policy & funding to environment and energy:
Given transportation’s contribution to greenhouse gas emissions and concerns about energy security
Better management of assets:
Through efficient use of life-cycle management strategies
Performance and accountability:
Into transportation programs to ensure projects that receive funding result in commensurate public benefits
Multiple funding sources:
To ensure the long term sustainability of the programs

## Refocus. Reform. Renew.

**A New Transportation Approach for America**

## Six Major Themes

- More focused Federal role
- Transportation safety
- Consolidation of programs and funding
- Emphasis on interstate commerce and metropolitan area congestion
- More rational investment decisions
- Performance measures
- Benefit-cost analysis
- Increased State/Municipal flexibility
- More efficient pricing and leveraging of federal resources
- Data/technology approach to safety
- More efficient/effective environmental stewardship

## Core Programs

**Federal Interest Highway (FIH)  **
**Metro Mobility (MM)**
**Mobility Enhancement (ME)**
**Highway Safety Improvement (HSIP)**
**Other**
- Federal Lands Highways and Transit (FLH&T)
- Modal Administrations
- Research
- Transportation Infrastructure Finance & Innovation Act Program (TIFIA)

## Freight Implications

- Federal Interest Highways
- Metropolitan Mobility
- Motor Carrier Safety Grant Program Flexibility
- TIFIA Reform
- Rest Area Quality Improvement Pilot
- Enhance access to private activity bonds
- Enhanced flexibility on state infrastructure banks
- Tolls and Direct Pricing

## Key Aspects
Investment focused on interstate systems and other nationally significant transportation assets
80% formula and 20% discretionary funding
Focus on performance (congestion, pavement quality, safety, etc.)
Benefit-cost analysis of projects over $25M
Public private partnership (PPP) comparison for projects > $250M

- Investment focused on interstate systems and other nationally significant transportation assets
- 80% formula and 20% discretionary funding
- Focus on performance (congestion, pavement quality, safety, etc.)
- Benefit-cost analysis of projects over $25M
- Public private partnership (PPP) comparison for projects > $250M

**Federal Interest Highway (FIH) Program**

## Metropolitan Mobility (MM) Program

- Key Aspects
- Investment in metropolitan areas with populations over 500,000
- Addresses congestion in areas that account for most of the Nation’s economic output
- Managed by regionally-designated Metropolitan Transportation Board
- Highway and transit funding no longer separated
- 70% Formula and 30% discretionary funding
- 50/50 match requirement
- Performance focus (congestion, safety, pavement quality, state of good repair, etc.)
- Benefit-cost analysis for projects > $25 M
- Required PPP comparison for projects > $250 M

## Motor carrier safety
Consolidation of 10 separate grant programs into one and increases flexibility
Single set of matching requirements 
Authority for FMCSA to use grant funds for contracts in support of national program activities 
New maintenance of effort standard so States are not penalized when contribute additional State resources

- Consolidation of 10 separate grant programs into one and increases flexibility
- Single set of matching requirements
- Authority for FMCSA to use grant funds for contracts in support of national program activities
- New maintenance of effort standard so States are not penalized when contribute additional State resources

**Commercial Motor Vehicle Safety Grant Program**

## TIFIA reforms 
Repayment flexibility on a case-by-case basis for schedules and maturity dates
Credit assistance in the form of loan guarantees or lines of credit not subject to Title 23/49
Ability to cover up to 50% of project costs if repayment is from direct pricing   
Loan guarantees/lines of credit may supplement secured loans as long as total assistance does not exceed 40% of eligible project costs
Currently, credit assistance is limited to 33% of total project cost

- Repayment flexibility on a case-by-case basis for schedules and maturity dates
- Credit assistance in the form of loan guarantees or lines of credit not subject to Title 23/49
- Ability to cover up to 50% of project costs if repayment is from direct pricing
- Loan guarantees/lines of credit may supplement secured loans as long as total assistance does not exceed 40% of eligible project costs
- Currently, credit assistance is limited to 33% of total project cost

**Transportation Infrastructure Finance & Innovation Act Program**

## Rest Area Pilot Project

- Rest Area Quality Improvement Pilot
- Ten states
- Competitive franchise agreements
- Excess revenue dedicated to Title 23 purposes
- Improvements to truck parking facilities

## Transportation for Tomorrow

  Report of the National Surface Transportation
        Policy and Revenue Study Commission
December 2007

**  ****Report of the National Surface Transportation**
**        ****Policy and Revenue Study Commission**
***December 2007***

## Recommendations: New Federal Compact

- A strong federal role
- Improved effectiveness & accountability for investments
- Investment strategies targeted at performance outcomes
- Increased expenditures from all levels of government & private sector
- Institutional & 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: Improved Metropolitan Mobility
- Saving Lives: National Safety Mobility Program
- Connecting America: National Access Program for Smaller Cities and rural Areas

- Intercity passenger Rail: Serve High-growth corridors...
- Environmental Stewardship: Investment...to support a healthy environment
- Energy Security: to accelerate development of environmentally friendly...fuels
- Federal Lands: ... providing Public Access
- Research, Development & technology: Coherent Transportation research Program for the Nation.

## Freight Focus 

- Freight Challenges:
- Maintaining global competitiveness & supporting interstate commerce
- Infrastructure capacity & performance
- Freight Investment Program
- Capacity improvements in key corridors
- P3’s
- Environmentally friendly freight improvements

**Notes:**
Infrastructure capacity & performance:
Ports & international gateways
Intermodal connections
Freight bottlenecks in congested cities
P3’s
Intermodal, rail, and port facilities
Current examples
Alameda Corridor
CREATE