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Federal Highway Administration. IFTA Annual Business Meeting Virginia Beach, VA August 17, 2011. Introduction. Overview of Highway Program Funding Overview of FHWA data collection Commission studies Congressional approaches Senate House Future is uncertain.
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Federal Highway Administration IFTA Annual Business Meeting Virginia Beach, VA August 17, 2011
Introduction • Overview of Highway Program Funding • Overview of FHWA data collection • Commission studies • Congressional approaches • Senate • House • Future is uncertain
Surface Transportation Authorization • Administration proposal • Congress develops authorizing legislation • Legislation is signed into law • Program sets limits for funding during life of authorization • Congress may need to pass an Appropriations Act • Most FHWA programs have Contract Authority Reference - http://www.fhwa.dot.gov/reports/fifahiwy/
Characteristics of the Federal-Aid Highway Program • Federally assisted - State administered • Funding tied to specific systems/programs • Requires State to have highway agency • States provide maintenance
Federal State RelationshipFederal Responsibilities • Review and approve State proposals • Develop regulations and guidance • Promulgate Standards • Provide technical assistance • Distribute funds • Reimburse State their eligible expenses
Federal State RelationshipState Responsibilities • Administer projects and State programs • Conceive • Plan • Design • Construct • Maintain and operate highways
Commissioned Study • National Surface Transportation Policy and Revenue Study Commission • Mandated by SAFETEA-LU section 1909 • Conduct study • Revenue analyses • Existing funds • Long term alternatives • Sources to fund 30 year projections • Develop conceptual plan with specific recommendations • Report published December 2007
Program Recommendations • Speed project delivery • Consolidate many highway programs to 10 • National asset management • Freight • Congestion relief • Safety • Small cites access • Intercity passenger rail • Environmental stewardship • Energy security • Federal lands • Research development and technology • Independent national commission to develop strategic national plan • Target 40% of capital investment in surface transportation as Federal share
Funding Recommendations • Raise gas tax • 5-8 cents per year for five years (25-40 cent increase) • Index for inflation • Various adjustments • Credit interest on the trust fund balance • Channel to Trust Fund • Portion of custom duties • Freight fee • Return emergency funds • Promote • Tolling • Pricing • Public-Private Partners
Office of Highway Policy Information Analysis of Data • States enter data on reported fuel consumption and financial data • FHWA has established models • Data is analyzed and adjustments are made as needed to balance reporting • Funding for several major programs is based on % of fuel computed to be used on highways in the States Reference - http://www.fhwa.dot.gov/policyinformation/hss/guide/index.cfm
Office of Highway Policy Information Analysis of Data • Report IFTA net amounts each month on FHWA-551M • Enter electronically in the correct fuel type Reference - http://www.fhwa.dot.gov/policyinformation/hss/guide/index.cfm
Federal-aid Highway Program (FHP)Extensions • SAFETEA-LU expired on Sept 30, 2009 • Surface Transportation Extension Act of 2010 • Surface Transportation Extension Act of 2011 • Federal highway taxes expire Sept 30, 2011
Senate Bill • Environment and Public Works Committee • Moving Ahead for Progress in the 21st Century (MAP-21) • 2-year funding at current levels • Eliminate earmarks • Program consolidation • Accelerate Project delivery
Senate Bill • Core Programs: • National Highway Performance • Transportation Mobility • National Freight • Congestion Mitigation and Air Quality Improvement • Highway Safety • Federal Land and Tribal Transportation • Research and Education
House Bill • Transportation and Infrastructure Committee • Six-year bill • Streamlining and Reform • Consolidate programs • Set performance measures • Delegate more decisions to States
House Bill • Leveraging • Expand lending options • Transportation Infrastructure and Finance Act (TIFIA) • State Infrastructure Banks (SIBs) • Allow I-State tolling: • On new lanes • Not existing lanes • Target funding: • Interstate travel and commerce (I-State and NHS) • Preserve existing capacity • Build new capacity
What’s Next • Future is uncertain • Common themes • Fewer programs • Expedited delivery • Un-addressed issues • Program size • Enhanced revenue
What’s Next • Alternative Revenue – MBUF fees • How to report electric vehicles (hybrid/dedicated) • Rapidly declining Highway Trust Fund • Increases in CAFÉ standards • Highway Use Tax Evasion Program
Contact Michael Dougherty 202-366-9234 michael.dougherty@dot.gov