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Commissioners

Commissioners. Mary Peters Secretary of Transportation — Chairperson Jack Schenendorf Of Counsel, Covington & Burling LLP—Vice Chair Frank Busalacchi Wisconsin Secretary of Transportation Maria Cino Deputy Secretary of Transportation

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Commissioners

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  1. Commissioners Mary Peters Secretary of Transportation — Chairperson Jack Schenendorf Of Counsel, Covington & Burling LLP—Vice Chair Frank Busalacchi Wisconsin Secretary of Transportation Maria Cino Deputy Secretary of Transportation Rick Geddes Director of Undergraduate Studies, Cornell University Steve Heminger Executive Director, Metropolitan Transportation Commission Frank McArdle General Contractors Association of New York Steve OdlandChairman and CEO, Office Depot Patrick QuinnChairman, American Trucking Association Matt RoseCEO, Burlington Northern Santa Fe Railroad Tom SkanckeCEO, The Skancke Company Paul WeyrichChairman and CEO, Free Congress Foundation 2

  2. Statutory Mandate Study current condition and future needs Policy Financing 15-, 30-, and 50-year time horizons Report to Congress by January 1,2008 3

  3. Field Hearings September 20-21, 2006 Dallas, TX October 27, 2006 Portland, OR November 15–16, 2006 New York, NY Memphis, TN February 21–22, 2007 Los Angeles, CA Atlanta, GA March 19, 2007 Washington, DC April 18–19, 2007 Chicago, IL Minneapolis, MN 4

  4. America Has Been Very Fortunate Thomas Jefferson—Roads and Canals Abraham Lincoln—Intercontinental Railroad Teddy Roosevelt—Panama Canal Franklin Roosevelt—Interstate Highways 5

  5. “Our unity as a nation is sustained by free communication of thought and by easy transportation of people and goods... Together the unifying forces of our communication and transportation systems are dynamic elements in the very name we bear — United States. Without them, we would be a mere alliance of many separate parts.” — Dwight D. Eisenhower, 1955 6 6

  6. But Today We Face A Looming Transportation Crisis 7

  7. The Crisis….. • Investment Crisis • Decaying Infrastructure In Need of Repair/Replacement • Inadequate Capacity To Meet Future Growth • Policy Crisis • Financing Crisis

  8. Investment Crisis

  9. Decaying System

  10. Minnesota I-35 W 11

  11. Texas 1-20 West of Pecos 12

  12. Louisiana Hurricane Katrina U.S. 90 Ocean Springs 13

  13. 2005 Report Card for America’s Infrastructure 14 Sources: American Society of Civil Engineers, 2005

  14. Inadequate Capacity 15

  15. Freight

  16. Freight Transportation at the crossroads… 2020 Growth Projections January Analyst Draft 5 17 Source: Global Insights, AASHTO, FHWA

  17. Central region +71% Northeast region +58% West region +65% South region +71% More trade means more domesticfreight movements Source: U.S. DOT 18

  18. Transportation growth and capacity: The past 25 years (1980-2005) Route Miles Growth Rail -39% 65%GTM Highway +7% 96% VMTs Ports N/A 400% TEUs 19

  19. What is the cost to the supply chain? U.S. Logistics Costs as a Percent of GDP Transportation costs increased 9.4% over 2005 Rail = 6.7% of U.S. Transportation Spend Inventory and administrative costs increased 13% over 2005 Total Logistics Costs Transportation Costs Inventory /Admin. Costs 20 Source: Annual State of Logistics Report, Council of Supply Chain Management Professionals

  20. Metro Congestion 21

  21. 22

  22. In Congestion for At Least 40 Hours Annually Source: Texas Transportation Institute 23

  23. Source: America 2050 24

  24. Metro Areas Greater Than 1 Million Source: U.S. Census 25

  25. Metros Capture Huge Market Share Sources: U.S. Census, Texas Transportation Institute, U.S. Conference of Mayors, EPA 26

  26. U.S. Population Change, 2000–2050 Source: Woods & Poole 2002; University of Pennsylvania School of Design 27 27

  27. Access, Connectivity and Mobility

  28. Massive Underinvestment Cost to Maintain(2055) Cost to Improvewith Pricing(2055) Cost to Improvewithout Pricing(2055) Current Spending(2006) Source: Section 1909 Commission 30

  29. Policy Crisis • Loss of Federal Vision/Mission • 108 programs • Donor/Donee • Earmarks • Loss of Credibility • Bridge to Nowhere; Coconut Road Interchange • Safety • Lack of Accountability • Project Delivery 31

  30. Financing Crisis • Loss of Purchasing Power • Highway Trust Fund • Short Term • Medium Term • Long Term • Enormous Needs • Restrictive Policies

  31. Projected Highway and Transit Account Balances Through 2012 Source: U.S. Department of the Treasury projections 33

  32. Fuel Efficiency/Energy Security/Climate Change 34

  33. Annual Petroleum Production, Imports and Consumption In the U.S., 1949–2006 Source: Energy Information Administration 35

  34. International Fuel Economy Comparison Comparison of fleet average fuel economy and GHG emission standards for new-sale light-duty vehicles Source: UC Berkeley 36 36

  35. U.S. Carbon Dioxide Emissions from Energy Use: 1985-2006 Source: Bureau of Transportation Statistics, 2007 37

  36. Is the Public Ready for Change? Source: The New York Times / CBS News Poll, April 2007 38

  37. Safety 39

  38. 40

  39. 41

  40. U.S. and G.B. Traffic Fatalities Per 100 Million VMT Source: Leonard Evans, Traffic Safety, 2004 42

  41. U.S. Traffic Deaths Far Exceed Casualties of War 43 Source: Leonard Evans, Traffic Safety, 2004

  42. We Are At A Crossroads…..

  43. Business As Usual….. • Threatens National Security • Greater Fatalities/Injuries • Greater Cost to Consumers • Damage to Vehicles • Congestion • Loss of Competitiveness • Weaker Economy • Fewer Jobs • Reduced Quality of Life

  44. Commission Rejected Business As Usual

  45. Major Recommendations 47 47

  46. No Easy Answers 48 48

  47. 1. A New Beginning • The federal surface transportation program should not be reauthorized in its current form. • Instead, we must make a new beginning. • And it must be Bold and Transformational. 49 49

  48. 50 50

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