PERFORMANCE REPORT

STRATEGIC AND ORGANIZATIONAL GOALS
ENVIRONMENTAL STEWARDSHIP STRATEGIC GOAL

PROMOTE TRANSPORTATION SOLUTIONS THAT ENHANCE COMMUNITIES AND PROTECT THE
NATURAL AND BUILT ENVIRONMENT

The transportation system has a significant impact on the environment. At the current rate of growth, transportation's share of the human-produced greenhouse gas emissions in the U.S. is projected to increase from 28 percent to 36 percent. DOT's Climate Change Center and Environmental Forecasting is a collective effort of DOT agencies to examine environmental factors in a coordinated manner while each agency continues pursuit of the issues under its purview.

The U.S. Department of Transportation leveraged $7,188 million to protect communities and their natural and built assets.

Key Performance Areas

Strategic outcomes from the DOT Strategic Plan are indicated in blue and FY 2008 results for key DOT performance measures are marked to indicate Met Target () and Did Not Meet Target ().

Reduction in Polution Reduction in pollution and other adverse environmental effects from transportation and transportation facilities. Number of areas in a conformity lapse. Number of hazardous liquid pipeline spills in high consequence areas. Percent DOT facilities characterized as NFRAP under the Superfund Amendments and Reauthorization Act.	Streamlined Environmental Review Streamlined environmental review of transportation infrastructure projects. Median time in months to complete environmental impact statements for DOT funded infrastructure projects.
	Other Environmental Activities Number of Exemplary Human Environmental Initiatives undertaken.

2008 Performance Highlights

• For the second consecutive year there were no areas in air quality conformity lapse. The FHWA and the Enivironmental Protection Agency (EPA) cooperatively prepared state Departments of Transportation, air quality agencies, and Metropolitan Planning Organizations (MPO) to successfully meet requirements.
• DOT PHMSA issued a Final Rule expanding regulatory oversight to large diameter low-stress lines-the type of pipeline that failed on the North Slope of Alaska in 2006 with significant consequences.
• DOT has attained a 94 percent 'No Further Remedial Action Planned' status designation against 70 sites FAA sites. Only 4 sites have not yet attained NFRAP status and all of those now have either short-term or long-term plans in place for remedial action.
• Over 40 percent of 26 FHWA projects were recognized as Exemplary Human Environment Initiatives transportation projects and activities that were particularly effective and innovative in how they enhanced the human environment and improve public benefit.
• The Maritime Administration awarded 21 disposal contracts that will result in the dismantling/recycling of those ships within the next 2 years.

Reduction In Pollution
FY 2008 Enacted Funds: $2.845 Billion

Mobile Source Emissions

The National Ambient Air Quality Standards (NAAQS) target six major pollutants as among the most serious airborne threats to human health. Transportation is a major contributor to some of the pollutants-particularly ozone, carbon monoxide and particulate matter. Over the past 20 years, contributions of emissions from on road mobile sources to all emissions rapidly declined. The downward trend in on road mobile source emissions is expected to continue as a result of the introduction of cleaner engines and fuels.

Areas that exceed, or have previously exceeded, certain air quality standards - designated as air quality non-attainment or maintenance areas, respectively - are required to meet transportation conformity requirements in the Clean Air Act. Failure to meet the conformity requirements places an area in a conformity lapse, which means only limited types of Federally-funded highway and transit projects can proceed.

Performance Measure Number of areas in a conformity lapse
	2005	2006	2007	2008
Target	6.0	6.0	6.0	6.0
Actual	5.8	1.3	0.0	0.0
Associated FY 2008 Funding - $2.1 billion

FY 2008 Results. DOT exceeded the target. For the second consecutive year there were no areas in a conformity lapse. The EPA, with DOT concurrence, finalized a rulemaking to implement SAFETEA-LU changes. The FHWA and the EPA conducted workshops, training sessions, and other outreach activities to raise awareness and prepare State Departments of Transportation, air quality agencies, and Metropolitan Planning Organizations (MPO) to meet conformity requirements. State and local agencies coordinated the process well in advance of conformity determinations. Because of the advanced preparations, most of the locales that had been non-attainment and maintenance areas met the Clean Air Act goals, thus enabling projects to proceed.

A number of changes to the conformity provisions were implemented to streamline and provide more flexibility to the conformity process as a result of SAFETEA-LU. The introduction of a conformity lapse grace period allows an additional 12 months to address conformity issues before they enter into a lapse. Recent changes to the transportation conformity process in SAFETEA-LU provided flexibility to States and MPOs in meeting the Clean Air Act requirements. FHWA provided guidance and technical assistance to State Departments of Transportation and MPOs to ensure that the recent flexibility to the conformity process was implemented.

FY 2009 Performance Forecast. FHWA expects to meet the 2009 target. With the implementation of more stringent standards for ozone and fine particulate matter, FHWA will continue to address the impact of the regulatory changes and to maintain the number of conformity lapses at the current low level.

Partnering with State and Local Governments

FHWA worked with state and local partnering agencies to identify, fund, and implement more cost-effective emissions reduction strategies, often focusing on heavy-duty diesel emissions.

Guidance was provided to state and local partners to implement the new provisions under the Congestion Mitigation and Air Quality program.

And FHWA encouraged partners and stakeholders to better understand the science behind climate change especially in the transportation planning process, during project development, and in air quality analysis.

FHWA co-authored a study entitled, Impact of Climate Change and Variability on Transportation Systems and Infrastructure: Gulf Coast Study, Phase One [http://climate.dot.gov/publications/impact_of_climate_change] and conducted numerous outreach efforts to provide information and engender discussion of climate change impacts on transportation.

Pipeline Spills of Hazardous Liquids

PHMSA's first priority is the continued safe operation and reliability of all pipelines. PHMSA has taken a proactive approach to protecting the environment by designing and implementing a strong risk-based systems approach to ensure the safety, security, and reliability of the Nation's pipeline infrastructure.

PHMSA establishes safe land use standards for existing pipelines and new pipeline construction in proximity to populated areas using an enterprise approach working with local governments, real estate and development interests, insurers, pipeline operators, other Federal and state agencies, the Pipeline and Informed Planning Alliance (PIPA), and others. PIPA helps communities understand where pipelines are located, who owns and operates them, and what other information is available for community planning. As pipelines expand into communities it is vital to locate them where they pose the least potential hazard to people and the environment while also protecting pipelines from potential excavation damage, helping to ensure their crucial energy supply is protected as much as possible from disruptions from potential excavation damage, a leading cause of pipeline failures.

Performance Measure Number of hazardous liquid pipeline spills in high consequence areas
	2005	2006	2007	2008
Target	N/A	52	51	50
Actual	55 (r)	46 (r)	50 (r)	59 *
(r) Revised; * Preliminary estimate
Associated FY 2008 Funding - $24 million

FY 2008 Results. Based on the preliminary data, PHMSA does not expect to meet the 2008 performance target. The increase from 2007-2008 might be attributed to multiple spills reported by pipeline operators who reported no spills in 2007. The causes for the increase, however, require further analysis.

• This year, PHMSA issued a Final Rule expanding regulatory oversight to large diameter low-stress pipe lines-the type of pipeline that failed on the North Slope of Alaska in 2006 with significant consequences. The agency will pursue regulation of smaller diameter low-stress lines in FY 2009. This action is consistent with past Congressional requirements and new requirements in the PIPES Act of 2006.
• Also in FY 2008, PHMSA issued an Advisory Bulletin seeking notification of construction of pipelines that would transport new alternative fuels such as ethanol and other biofuels. Notification provides a key entry point for the agency to examine technical issues associated with transporting new alternative fuels, and to provide safety oversight of the construction.

Alaskan Pipelines

PHMSA recognizes the strategic importance of Alaska's oil and gas production and transportation systems to the Nation's energy supply and in FY 2008 we elevated the status of our field office in Alaska to a Regional office to provide emphasis on our oversight there and continue to address technical challenges with declining oil field production and the need for planning to meet new demands. Alaska's 4,600 miles of pipelines deliver about 10 percent of America's energy products to the lower 48 states. Protecting the reliable and secure transportation of energy from Alaska is essential to the continued economic growth of our nation and meeting the President's goal of energy independence.

FY 2009 Performance Forecast. We expect it might be a significant challenge to meet the FY 2009 target of 49 spills in high consequence areas, given the results in 2008 and the small numbers we are dealing with; however, we believe with overall reductions in corrosion and excavation damages we are on track for FY 2009. And although the agency did not meet the FY 2008 target, progress continues to be made to significantly reduce the environmental impact of non-volatile hazardous liquid spills over the long term.

The agency began collecting detailed Integrity Management related repair information beginning in 2005 and with three years of collected information PHMSA is encouraged with the progress. With over 47,000 defects found and fixed over that period together with a 32 percent decrease in corrosion, the leading cause of hazardous liquid accidents, we believe this is a good indicator that the Integrity Management approach is working. At the end of 2007, the total number of pipeline segment miles that could affect High Consequence Areas (HCAs), including environmentally sensitive areas, was approximately 72,000 miles, of which about 32,000 miles were inspected in 2005-2007. Operators have repaired over 47,000 defects that without early detection and mitigation could have led to failures that harmed the public and the environment. Corrosion is the leading cause of failures in HCAs and the agency has seen about a 32 percent decrease in those failures from the twelve month period ending July 2008 compared to the same time period in the previous year. Given this positive trend, PHMSA anticipates meeting the goal over the long term.

DOT Facility Cleanup

DOT has a special responsibility to ensure that its own facilities are compliant with environmental laws and regulations. Our activities fall into three broad categories: restoration, compliance, and pollution prevention. Restoration activities involve identifying, investigating, and cleaning up contaminated sites. Compliance activities include the operation of facilities, equipment, and vessels in accordance with environmental requirements. Pollution prevention activities mean preventing future clean-up activities by avoiding the generation of pollutants in our operations or facilities.

The DOT has 73 of the 2,282 Federal facilities on the EPA's Hazardous Waste Compliance Docket. The FAA and the FRA own or operate the DOT facilities included on the Hazardous Waste Compliance Docket. FAA is responsible for 70 of the 73 DOT sites listed.

Performance Measure Percent DOT facilities characterized as NFRAP under the Superfund Amendments and Reauthorization Act
	2005	2006	2007	2008
Target	93	93	93	93
Actual	92	92	93	94
Associated FY 2008 Funding - $40 million

FY 2008 Results. DOT met the FY 2008 target. There are 73 DOT sites on the EPA Hazardous Waste Compliance Docket and all but 4 of them have attained No Further Remedial Action Planned (NFRAP) status. DOT has attained a 94 percent NFRAP status designation against the 70 sites listed on the Docket which are FAA's responsibility. The latest site to reach that status is FAA's Omaha EX Air Force Station Z-71. EPA Region 7 provided a letter to FAA designating NFRAP status at the Omaha EX Air Force Station Z-71. FAA currently has only 4 sites listed on the Docket that have not yet attained NFRAP status.

1. Ronald Reagan National Airport
2. Kirksville Air Route Surveillance Radar (ARSR), AFS F-64
3. Mike Monroney Aeronautical Center
4. William J. Hughes Technical Center

FY 2009 Performance Forecast. DOT anticipates meeting the FY 2009 target. FAA provides funding and oversight for these four sites and has developed short-term actions (1-5 years) to achieve NFRAP status for the National Airport site, while longer-term actions (5-20 years) will be necessary to achieve NFRAP status for the other 3 sites.

Other Environmental Activities
FY 2008 Enacted Funds: $4.206 Billion

Human Environment

The FHWA promotes environmental stewardship practices by recognizing Exemplary Human Environment Initiatives (EHEI) in transportation projects and activities that were particularly effective and innovative in how they enhanced the human environment and improve public benefit. The EHEI measure is based on the number of projects or activities chosen for national recognition in six categories:

• Encouraging non-motorized transportation activities such as greater use of bicycling, walking (including access for persons with disabilities), and other non-motorized modes of travel.
• Enhancing the environment for human activities through infrastructure changes (e.g., historical preservation activities) that benefit human transportation and increase livability and quality of life.
• Process and procedural changes (e.g., collaborative decision making) that allow for more efficient service delivery.
• Educational and training programs that inform people about issues or changes that should be made to improve the human environment.
• Product development including Geographic Information System or travel modeling related activities that result in the creation or improvement of a tangible product or technology that improves everyday processes, and
• Other projects and activities including, but not limited to, border planning or economic development that do not fit in the other five categories.

Performance Measure Number of Exemplary Human Environmental Initiatives undertaken
	2005	2006	2007	2008
Target	N/A	N/A	N/A	10
Actual	N/A	N/A	N/A	11
N/A Not applicable
Associated FY 2008 Funding - $4.2 billion

FY 2008 Results. The FY 2008 target was met. FHWA's solicitation for EHEI projects or activities resulted in 26 EHEI submittals with 11 projects announced as EHEI recipients at the end of July 2008. In FY 2008, the FHWA adopted the EHEI measure as a replacement for the measure of Exemplary Ecosystem Initiatives (EEI). The FHWA replaced the EEI measure after performance targets were exceeded, indicating that the desired effect of promoting consideration of ecosystems into development of transportation projects and in creating a broad array of model projects on which project sponsors could draw was achieved.

FY 2009 Performance Forecast. FHWA expects to meet the 2009 target. FHWA also focuses efforts to incorporate Context Sensitive Solutions (CSS) and Context Sensitive Designs (CSD) into all aspects of transportation planning and project development. CSS and CSD are collaborative, interdisciplinary approaches that involve all stakeholders in the development of transportation facilities that fit their physical settings and preserve scenic, aesthetic, historic and environmental resources. CSS and CSD concepts are being promoted to advance solutions that enhance and protect ecosystems, communities, active living, beautification, and acquisition or relocation while maintaining safety and mobility.

Leveraging Expert Resources

FHWA issued grants for pilot projects that advance Eco-Logical concepts that leverage expertise outside the Department, integrates plans across agency boundaries, and endorses ecosystem-based mitigation. Eco-Logical: an Ecosystem Approach to Developing Infrastructure Projects [http://www.environment.fhwa.dot.gov/ecological/eco_index.asp]

FHWA awarded funding to the American Association of State Highway and Transportation Officials (AASHTO) Center for Environmental Excellence, which hosts a comprehensive Web site, captures best practices through concise practitioner guides, conducts targeted problem solving workshops, and manages a program of technical assistance on a variety of environmental topics.

Ship Disposal

The Maritime Administration is the U.S. government's disposal agent for merchant-type vessels 1,500 gross tons or more owned by the Federal Government. The Agency has custody of a fleet of approximately 100 non-retention ships that are available for disposal but not yet under contract. These obsolete ships are located at the James River Reserve Fleet site in Virginia, the Suisun Bay Reserve Fleet site in California and the Beaumont Reserve Fleet site in Texas. Steady progress in the disposal of the obsolete ships must be maintained to minimize the risk to the surrounding environment due to the presence of hazardous materials on board the ships.

FY 2008 Results. Despite the regulatory and litigation challenges faced in 2007 and 2008, the Maritime Administration awarded 21 disposal contracts that will result in the dismantling/recycling of those ships within the next 2 years. The 21 awards exceed the FY 2008 target by 11 ships. Of the 21 awards, 16 were through the sale of the obsolete ships, 4 were via fee-for-service contracts and one was through a donation to the Government of Greece for use as a museum. With the exception of the one to Greece, all of the removals are the result of dismantling/recycling contracts with domestic ship disposal companies. Proceeds from the sale of obsolete vessels provide revenue to the Government and value to the taxpayer. This has been achieved through a combination of high market steel prices and a sound sales strategy that maximizes domestic recycling industry capacity and competition.

The Maritime Administration removed a total of 25 obsolete ships from the James River and Beaumont facilities in FY 2008, 9 more than the target of 16. The total number of vessels disposed in FY 2008 was 19 ships, exceeding the target by 3 ships. The completed ships were removed from the fleet sites during the current and preceding fiscal years. It takes from several months to more than two years to dismantle a ship once it has arrived at a recycling facility. The rate of dismantling is dependent on a number of factors, including specific vessel characteristics, weather, contractor resource availability and the contractor's ability to quickly and properly arrange for disposal of hazardous materials.

Streamlined Environmental Review
FY 2008 Enacted Funds: $136 Million

DOT establishes and pursues rigorous timeframes for all projects requiring an Environmental Impact Statement (EIS). By tracking timeframes, DOT has developed a better understanding of the key impediments to the process, enabling us to address the concerns of Congress, the States, and others. The DOT has established 60 months as the FY 2008 target for the median timeframe for completing an EIS. DOT facilitates the achievement of the objective by promoting environmental stewardship practices and integrated planning efforts, and encouraging linkages between planning and NEPA requirements.

The EIS process not only ensures that infrastructure projects comply with NEPA guidelines, but it also allows citizens and local organizations an opportunity to voice their concerns and propose alternatives. DOT embraces the public's thoughts on alternative ways to accomplish what it is proposing and to offer comments on its analysis of the environmental effects of the proposed action.

Performance Measure Median time in months to complete environmental impact statements for DOT funded infrastructure projects
	2005	2006	2007	2008
Target	N/A	N/A	N/A	60
Actual	56	57	67	63.5 *
* Preliminary estimate
Associated FY 2008 Funding - $68 million

FY 2008 Results. The FY 2008 target was not met. The preliminary estimate of 63 months, based on 26 FHWA projects and 4 FRA projects with a completed EIS, was slightly above the target and 3.5 months shorter than last year's results. (FAA is developing environmental impact statements for four airports, which because the process was not complete were not included in this year's data collection.)

FY 2009 Performance Forecast. The FY 2009 target will likely not be met. Because the number of FHWA projects contributes significantly to the overall DOT result, the effort to remove dormant projects from the list of FHWA projects under review should have a positive effect in the coming months. More importantly, FHWA, FTA, and FAA are all pursuing activities that should begin to affect median review time in the next two or three years.

• FAA employs an interagency coordinated and expedited environmental review procedure on designated infrastructure projects as provided for in Title III of Vision 100-Century of Aviation Reauthorization Act (also known as the Aviation Streamlining Approval Process Act of 2003). The procedures call for agreement on the protocols among affected agencies and deadlines for necessary actions by each individual agency including deadlines for the review of environmental analyses and the issuance of environmental opinions, licenses, permits, and approvals. Where this process has been used, not only has FAA seen a marked improvement in the time to complete the environmental review process, but here has been improvement in minimizing and resolving disputes between agencies.
• FHWA undertook a variety of actions, such as rescission of Notices of Intent for projects that have been dormant for long periods of time, and peer exchanges to identify project management practices that were employed with the environmental review process to achieve timely project delivery. FHWA actively promoted practices that minimized project delays through several on-line resources. These activities will continue to have an effect on FHWA processes in FY 2009.
• FTA has taken several steps, including redesigning its 'Managing the Environmental Process' course, offered through the National Transit Institute, to emphasize sound, cost-effective document-preparation practices. FTA has also updated relevant guidance, including sample documents, on various aspects of impact statement preparation. To encourage its grantees and their consultants to pursue the National Environmental Policy Act process efficiently and effectively, FTA has instituted an Outstanding Achievement Award for Excellence in Environmental Document Preparation. Finally, FTA has published a document entitled Keys to Efficient Development of Useful Environmental Documents for the purpose of dramatically improving the quality of environmental documentation.