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August 2008

August 07, 2008

Support for Reform

Last week, I introduced a plan to refocus, reform and renew transportation policy in America…and we at the Department aren’t the only ones who think the time for change has come.  As you can see from the following quotes, a variety of think tanks, business groups, government entities, and transportation experts are sounding the drumbeat for reform. 

The Congressional Budget Office—Congress’ budget arm for nearly 100 years said “there is a strong rationale for charging users for the costs of transportation infrastructure because they reap substantial benefits that the system provides. Designing and implementing a financing system that charges users of transportation infrastructure for the costs that they impose on the system can encourage efficient use of existing roads, rails, and other transportation infrastructure. It can also help in identifying needs and paying for the construction of new infrastructure in the right places at the right time. The charges users pay for the costs that they impose on the system provide a measure of the value of investment in increased capacity.” (Public Spending on Surface Transportation Infrastructure,” Testimony of Robert A. Sunshine, CBO Deputy Director, Before the House Committee on the Budget, October 25, 2007.

In the SAFETEA-LU bill, Congress created two independent Commissions to develop recommendations on the future of surface transportation.  Both bodies were supportive of significant programmatic reform.

The National Surface Transportation Policy and Revenue Study Commission has said that “the absence of national investment priorities under our current surface transportation programs has been frequently raised, illustrated by long lists of highway and transit programs authorized in SAFETEA-LU, many of which are heavily earmarked…Many such categorical programs address narrow issue areas, arguably with meritorious intent, but with little or no overarching national interest. The Commission believes that surface transportation programs should be reconstructed from a ‘clean slate’ to allow for radical program reforms.” (Report of the National Surface Transportation Policy and Revenue Study Commission, December 2007)

And the National Surface Transportation Infrastructure Financing Commission argued that “reliance on fuel taxes may have been an effective funding approach in the second half of the 20th century, but it may not be sufficient to address the pressing needs of the first half of the 21st century and beyond.” (The Path Forward: Funding and Financing our Surface Transportation System, February 2008)

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August 05, 2008

FRA Administrator Boardman: Intercity Rail Service Proposals to Compete for Federal Funding

Intercity passenger rail is an integral part of our nation’s transportation network, and with that in mind, the department established a new $30 million grant program aimed at improving such services around the nation.  Twenty-five forward-thinking proposals from twenty two-states will compete for funding under the new program.

The proposals are designed to improve the reliability of intercity passenger rail, relieve highway congestion, and increase capacity.  Some examples of proposed projects include installing advanced signaling systems to increase track speeds, reconfiguring track junctions to enhance operational efficiency, and constructing additional main line track to keep trains moving.  Most of the grant applications seek to improve existing passenger rail routes while a few involve planning activities for the creation of an entirely new service. 

The Department will review the proposals and determine final grant awards in September.  The plans will be evaluated based on several criteria, including inclusion of intercity passenger rail in state plans to address congestion and a project’s ability to reduce travel times, increase service frequency, or enhance service quality. 

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August 04, 2008

The Time is Ripe for Change

Last week, I released a surface reform proposal to refocus, reform and renew our transportation policies for the future.

The plan starts by refocusing the nation’s transportation programs, with a significant emphasis on our greatest transportation needs--safety, the condition and performance of the Interstate highway system and urban congestion. 

The proposal expands state and local decision making and seeks to streamline the 102 separate transportation programs down to eight core programs, and reduce the dozen years it takes to design and build new highway and transit projects.  We also begin the long overdue process of weaning ourselves from the gas tax through the greater use of direct road pricing and private sector investment. 

While not necessarily speaking about the Department’s specific reform proposal, many national leaders have recognized that the time is ripe for change.

Delivering the keynote address at the American Public Transit Association, Speaker of the House Nancy Pelosi said:

“Private investment is playing an increasingly larger role in public infrastructure. Innovative public-private partnerships are appearing around the country, bringing much-needed capital to the table. It is important to ensure that the public interest is well-served in public-private partnerships, since they are here to stay and likely grow in importance.”

The International Bridge, Tunnel and Turnpike Association reported last week that Sen. Christopher Dodd said, “There is no way we’ll appropriate the money necessary to fund our infrastructure,” and Sen. John Kerry added “We need to find a way to look beyond the gas tax.”

Pennsylvania Governor Ed Rendell last week also proposed a four-part solution to support our nation’s transportation infrastructure that would include letting states and local governments assess tolls on roads where tolls previously had not been collected and using public-private partnerships more often.

Other leaders have signaled strong and direct support for our reform proposal:

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USA Today Supports FAA’s Airspace Redesign Plan

In case you missed it, USA Today editorialized in favor of the Federal Aviation Administration’s redesign plan for the airspace surrounding New York and Philadelphia, citing the national benefits of alleviating congestion at airports that cause 75 percent of the country’s total flight delays.  The FAA’s plan, which has been in the works for a decade, provides a safe solution to one of our most pressing transportation problems…but the plan is under attack from local interest groups and politicians who seem willing to distort facts in order to score political points.

Indeed, USA Today ran an opposing view by Senators Frank Lautenberg and Bob Menendez of New Jersey, who claim the plan does little to reduce delays and is unsafe.  But as USA Today’s own editorial board wrote: “pilots—who would be the first to object if safety were compromised—disagree. Capt. Larry Newman of the Air Line Pilots Association says procedures spurred by the redesign ‘have been safely used throughout the national airspace system for years.’”  And USA Today agrees with the FAA that the reduction in delays is significant.

I agree with USA Today’s editorial board that there surely is a way to compromise so that we can make a real difference for the nation’s air travelers without placing an undue burden on the citizens of New York and New Jersey.  The FAA has been willing to bend.  What about the politicians?

Unfortunately, this is yet another example of political and special interests impeding progress on transportation solutions that benefit the nation as a whole.

-Secretary Peters

August 01, 2008

GAO Issues Report on Need to Restructure Surface Transportation Policy

Earlier this week, the Government Accountability Office (GAO) issued a report supporting a “fundamental reexamination and refocusing of the nation’s surface transportation policies”—just as the Department released our own proposal to reform, refocus and renew the government’s approach to transportation.

Citing increased demand that “for the past several decades…has outpaced the capacity of the surface transportation system,” the report recommends that Congress consider restructuring federal programs to meet the strain on our infrastructure that will be caused by “population growth, technological change, and the increased globalization of the economy.”

I believe the GAO report confirms what we have been saying all along: it’s time for fresh ideas, and a new approach to funding, building, and managing our nation’s transportation infrastructure.

The plan we released earlier this week does just that by streamlining funding mechanisms, making it easier for state and local governments to access private capital for infrastructure improvements, and reducing the fiscal damage caused by the broken earmark system.

I hope you will read the report and comment on the Fast Lane…it’s always good to get your thoughts!

-Secretary Peters