The Next Transportation Bill AMPO Perspective

1. The Next Transportation BillAMPO Perspective The Association of Metropolitan Planning Organizations (AMPO) 1029 Vermont Ave., NW Suite 710 Washington, DC 20005 202-296-7051

2. TALKING WITH AMPO • Recent History • Forces at Play • Recent National Activity • Going Forward • AMPO’s Process

3. Recent History • SAFETEA-LU -- 2 Years Late and loaded with earmarks (more then 6300) • Increased Funding -- Illusionary & Inadequate • Highway Trust Fund -- In Jeopardy

4. Forces at Play

5. 15,835 59,420 2,557 1,776 4,478 Seattle NY/NJ 4,396 1,798 5,566 1,809 Tacoma Virginia 3,382 2,043 6,639 1,860 Oakland Charleston 13,101 9,420 1,662 6,165 LA/LB 1,437 Savannah 2,152 1,010 Houston (TEUs in thousands) Miami 2004 Forecast figures based on 10-year linear regression 2020 Dramatic Increase in U.S. Maritime Trade Volume of trade: 2004 and 2020 Source: U.S. DOT

6. Central region +71% Northeast region +58% West region +65% South region +71% More trade means more domesticfreight movements… U.S. domestic freight tonnage growth forecast, 2000-2020 Source: U.S. DOT

8. Street and Highway Construction Costs Have Increased Dramatically Over the Past Few Years Source: AGC

9. Highway Account Cash Balance Source: FY 2008 President’s Budget Projections

10. Mass Transit Account Cash Balance Source: FY 2008 President’s Budget Projections

11. Travel Behavior is Changing……At Least in the Short Term • VMT is falling nationwide • 30 billion fewer miles driven in the first 5 months of 2008, compared to 2007 • Public transit ridership increasing • 88 million more transit trips in first quarter of 2008 over 2007 • Happening across all transit modes • Bus ridership is up 8% in communities with less than 100,000 pop’n • $1.5 billion less expected to go into the HTF

12. New Strategic Context • Global War on Terrorism • Global Economy and Emergence of China and India • Oil Production Peaks and Supply Constraints • U.S. Oil Imports (some from potentially unstable nations) • The Inconvenient Truth of Global Warming

13. Recent National Activity

14. National Surface Transportation Policy and Revenue Study Commission • Released in mid-January • Study current condition and future needs • Evaluate short- and long-term alternatives to replace or supplement fuel tax • Frame policy and funding recommendations for 15-, 30-, and 50-year time horizons Much discussion on findings within the Beltway

15. National Surface Transportation Policy and Revenue Study Commission Major Recommendations • Federal investment should be focused on objectives of national interest • There is NO focus when we have 108 programs • Planning should guide investment to where it is most needed, not according to earmarks or funding silos • Advocates for performance-based programming, with accountability

16. Administration Authorization Proposal - July 2008 • Focuses on areas of greatest federal interest – free-up state and local dollars • A more focused federal role- fewer programs • Emphasis on safety • Pricing of facilities • Cost-benefit analysis of systems and programs - eliminate politics from the process • Increased use of more long-distance freight - Railroads

17. Administration Authorization Proposal - July 2008 • Move away from the gas tax towards more direct pricing options, like tolling and private sector investment • Proposes Metropolitan Mobility Program that would: • Provide funding directly to metro areas with populations > 500,000 • Create a new regional body, Metropolitan Transportation Board (“MTB”), designated by regional consensus (not by federal requirement) • 70% formula funding, 30% competitive grant funding • Federal share of project costs is 50% • Metro areas would establish performance areas that they are to meet • Proposes “Performance-Oriented Pilot (“POP”) program that would eliminate most federal planning requirements, including long range plans, TIPs, UPWPs, and certification reviews.

18. Administration Authorization Proposal - July 2008 • AMPO supports reform, refocusing the federal program, and emphasis on alternative funding sources. But we can not support this proposal. • Silent on continued support and funding for existing MPOs and for areas under 500,000 • Silent on consultation in rural areas • Undermines the planning process • Over-emphasis on role of private investment

19. Key Sentiments of Key Participants • Rep. Oberstar: Transformational bill • Sen. Boxer: Collapse programs, focus on goods and people movement, clean air, and safety • Sec. Peters: Fundamental reform • AASHTO: Program reform with greater accountability • Brookings: Federal Government should lead, empower, and focus on outcomes • Eno, others: Does planning (and do MPOs) matter?

20. Going Forward

21. Scenarios for Authorization • RE-TEA -- Reauthorization As Usual • The Same only with more money • Devolution to the States • Roll back federal gas tax, privatize, and focus on innovative financing at state, regional, & local level • Green Tea • Energy Independence and global warming • POST-TEA -- Fundamental Reform • Realign roles, structure, authority and funding

22. AMPO’s Process

23. AMPO Process • Rounds of surveys to membership to craft policy positions • Town Hall Meeting at the Annual Conference • Policy Committee developed white papers and policy positions • Board approved positions and paper went out to membership last week • Two year process to get us to… the starting point

24. AMPO Position on Authorization • Improve International and Interstate Commerce • Improve Metropolitan Mobility • Energy Independence by 2050 • Rebuild America Smarter

25. AMPO Position on Authorization Improve International and Interstate Commerce • National Program for Freight Mobility and Transparent Borders • Improve freight capacity (rail and highway) along national freight corridors • Address metropolitan congestion and bottlenecks • Ensure that rural agricultural and resource industries have good access to markets • Study a national truck network

26. AMPO Position on Authorization Create Metropolitan Mobility Program • Flexible program with accountability and authority • Raise pop’n threshold for new MPOs to 100,000 • Grandfather existing MPOs between 50,000 and 100,000 pop’n, with streamlined requirements.

27. AMPO Position on Authorization Create Metropolitan Mobility Program (cont.) • Areas over 200,000 pop’n gain project selection authority for federal funds, in cooperation with the state • Areas over 1 million pop’n can choose to designate themselves as a Metropolitan Mobility Authority • Project selection authority for all federal funds • Eligible to receive new federal funds aimed at congestion relief and energy conservation • Required to meet performance-based planning standards

28. AMPO Position on Authorization Energy Independence by 2050 • Federal goals for energy independence and reducing greenhouse gas emissions • Create an Energy Independence Fund through market incentives • Cap and trade? • Carbon tax? • Increase federal gas tax? • Focus funding on transportation programs to relieve congestion, improve traffic efficiency, support transit, efficient land use development, intercity rail, and clean technology for fuels and vehicles.

29. AMPO Position on Authorization Rebuild America Smarter • Increase funding to ensure base system preservation • Establish an independent Transportation Revenue Adjustment Commission to periodically address revenue needs • Utilize intelligent transportation system tools and strategies • Upgrade federal interest and support for robust data

30. Key Themes Going Forward • Link between energy, climate change, and transportation • Planning is important. AMPO brings this perspective to the debate and we intend to focus on it • Preservation and operation of the existing system is critical • How do we measure benefits and costs? • What program delivery structure do we support?

31. We Want to Hear From You ?

32. Thanks for the opportunity! AMPO 1029 Vermont Ave., NW Suite 710 Washington, DC 20005 Rich Denbow rdenbow@ampo.org AMPO thanks Steve Heminger and Jim McKenzie for contributing to this presentation's content