Future Surface Transportation Options Talking Freight August 20, 2008

1. Future Surface Transportation OptionsTalking Freight August 20, 2008 Tony Furst Acting Associate Administrator for Operations FHWA

2. 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

3. 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.

4. 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

5. Refocus. Reform. Renew. A New Transportation Approach for America

6. 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

7. 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)

8. 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

9. Federal Interest Highway (FIH) Program • 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

10. 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

11. Commercial Motor Vehicle Safety Grant Program • 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

12. Transportation Infrastructure Finance & Innovation Act 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

13. 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

14. Transportation for Tomorrow Report of the National Surface Transportation Policy and Revenue Study Commission December 2007

15. 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

16. 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. The National Interest: Ten Focus Areas

17. 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