Freight Issues in the Report of the National Surface Transportation Policy and Revenue Study Commission Transportation for Tomorrow

The Commission Established under Section 1909 of SAFETEA-LU 12 commissioners appointed by the President and Congressional leaders –Secretary of Transportation served as Chair Views of the Commission do not represent the views of the USDOT or its staff

Statutory Objectives Examine future conditions and needs of the surface transportation system over 15-, 30-, and 50-year time horizons. Develop a conceptual plan, with alternative approaches, to ensure that the system will continue to serve the needs of the US for the 21st Century. Examine the roles of the various levels of government and the private sector in meeting future surface transportation financing needs. Recommend alternatives to replace or supplement the fuel tax as the principal revenue source to support the Highway Trust Fund.

The Work of the Commission Monthly meetings (May 2006-Dec 2007) Public meetings Field hearings Private briefings from industry groups Issue papers

Structure of the Report Volume I – Detailed Findings & Recommendations Volume II – Technical Subject Treatment Volume III – Issue Papers & Analyses, Testimony, and Related Background Documents (including external studies)

Central Conclusion: A New Beginning To create and sustain the pre-eminent surface transportation system in the world. The Federal surface transportation program should not be reauthorized in its current form. Outgrown the transportation system that serves our mobility and our commerce to ensure U.S. prosperity and global preeminence for generations to come. Current institutions and program delivery mechanisms are outdated and result in a mismatch between supply and demand for transport services.

Recommendations 5-Part New Federal Compact A strong Federal role Increased expenditures from all levels of government & the private sector Improved effectiveness & accountability for investments Investment strategies targeted at performance outcomes Institutional and Federal program delivery reforms

The National Interest: Ten Focus Areas Rebuilding America: A National Asset Management Program Freight Transportation Freight Transportation: A Program to Enhance U.S. Global Competitiveness Congestion Relief: A Program for Improved Metropolitan Mobility Saving Lives: A National Safe Mobility Program Connecting America: A National Access Program for Smaller Cities and Rural Areas Intercity Passenger Rail: ….to Serve High-Growth Corridors by Rail Environmental Stewardship: …Investment …to Support a Healthy Environment Energy Security: …to Accelerate … Development of Environmentally-Friendly Replacement Fuels Federal Lands: … Providing Public Access Research, Development, & Technology: A Coherent Transportation Research Program for the Nation

Critical Factors Influencing the Future Demand for Freight Movement Economic Growth International Trade Commodity Mix Operational Efficiency Changes in Business Practices

Infrastructure Challenges Age and Deterioration Congestion Safety Energy Security and Environmental Protection Population Growth

Freight Challenges Maintaining global competitiveness and supporting interstate commerce Infrastructure capacity and performance –Ports and international gateways –Intermodal connections –Freight bottlenecks in congested cities

Freight Investment Program Capacity improvements in key freight corridors Public-private partnerships –Intermodal, rail, and port facilities Environmentally-friendly freight improvements Current examples –Alameda corridor –CREATE

Needs Analysis Highway and transit needs analysis based on tools used for USDOT’s Conditions and Performance Report Freight rail investment needs developed for Commission by AAR Both the highway and freight rail investment analyses drew on freight projections from the Freight Analysis Framework

Funding Sources for Future Investment General user fee increases –Near term: fuel taxes –Long term: VMT-based fees Potential new freight fees –Would be deposited with other user fees in a consolidated Surface Transportation Trust Fund –Investment tax credits for transportation facility owners New taxes and fees not endorsed by all Commissioners

Policy and Financial Issues Assessing public and private benefits and allocating financial responsibility Impacts of tolling on freight movement Modal neutrality Geographic alignment of revenue sources and uses Track access for passenger rail Developing exclusive passenger and freight facilities Issues were raised by Commission, but not resolved

For More Information The full report is available at