Slide 1 The Association of Metropolitan Planning Organizations (AMPO) 1029 Vermont Ave., NW Suite 710 Washington, DC The Next Transportation Bill AMPO Perspective

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

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

Slide 4 Forces at Play

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

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

Slide 7

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

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

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

Slide 11 Travel Behavior is Changing… …At Least in the Short Term VMT is falling nationwide VMT is falling nationwide –30 billion fewer miles driven in the first 5 months of 2008, compared to 2007 Public transit ridership increasing 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 $1.5 billion less expected to go into the HTF

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

Slide 13 Recent National Activity

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

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

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

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

Slide 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. 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 continued support and funding for existing MPOs and for areas under 500,000 Silent on consultation in rural areas Silent on consultation in rural areas Undermines the planning process Undermines the planning process Over-emphasis on role of private investment Over-emphasis on role of private investment

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

Slide 20 Going Forward

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

Slide 22 AMPO’s Process

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

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

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

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

Slide 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 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 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

Slide 28 AMPO Position on Authorization Energy Independence by 2050 Federal goals for energy independence and reducing greenhouse gas emissions Federal goals for energy independence and reducing greenhouse gas emissions Create an Energy Independence Fund through market incentives 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. 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.

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

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

Slide 31 We Want to Hear From You ?

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