1. Future Surface Transportation Options Talking Freight August 20, 2008 Tony Furst Acting Associate Administrator for Operations FHWA

2. Future Surface Transportation Options oUS Government Accountability Office oSurface Transportation Programs: Proposals Highlight Key Issues and Challenges in Restructuring the Programs oU.S. DOT’s Vision for the Future oRefocus, Reform, Renew: A New Transportation Approach for America oSection 1909 Commission report oTransportation for Tomorrow

3. GAO’s Reauthorization Principles oDefine the federal role based on identified areas of national interest and goals. oIncorporate performance & accountability into funding decisions. oEmploy the best tools and approaches to improve results and return on investment. oEnsure fiscal sustainability.

4. Themes GAO Identified in Reauthorization Proposals oDefine a federal role in freight goods movement oIncorporate performance & accountability oPromote better management of existing assets oUse multiple funding sources oLink transportation policy & funding to environment and energy sectors

5. Refocus. Reform. Renew. A New Transportation Approach for America

6. Six Major Themes oMore focused Federal role oTransportation safety oConsolidation of programs and funding oEmphasis on interstate commerce and metropolitan area congestion oMore rational investment decisions oPerformance measures oBenefit-cost analysis oIncreased State/Municipal flexibility oMore efficient pricing and leveraging of federal resources oData/technology approach to safety oMore efficient/effective environmental stewardship

7. Core Programs oFederal Interest Highway (FIH) oMetro Mobility (MM) oMobility Enhancement (ME) oHighway Safety Improvement (HSIP) oOther oFederal Lands Highways and Transit (FLH&T) oModal Administrations oResearch oTransportation Infrastructure Finance & Innovation Act Program (TIFIA)

8. Freight Implications oFederal Interest Highways oMetropolitan Mobility oMotor Carrier Safety Grant Program Flexibility oTIFIA Reform oRest Area Quality Improvement Pilot oEnhance access to private activity bonds oEnhanced flexibility on state infrastructure banks oTolls and Direct Pricing

9. oKey Aspects oInvestment focused on interstate systems and other nationally significant transportation assets o80% formula and 20% discretionary funding oFocus on performance (congestion, pavement quality, safety, etc.) oBenefit-cost analysis of projects over $25M oPublic private partnership (PPP) comparison for projects > $250M Federal Interest Highway (FIH) Program

10. Metropolitan Mobility (MM) Program oKey Aspects oInvestment in metropolitan areas with populations over 500,000 oAddresses congestion in areas that account for most of the Nation’s economic output oManaged by regionally-designated Metropolitan Transportation Board oHighway and transit funding no longer separated o70% Formula and 30% discretionary funding o50/50 match requirement oPerformance focus (congestion, safety, pavement quality, state of good repair, etc.) oBenefit-cost analysis for projects > $25 M oRequired PPP comparison for projects > $250 M

11. oMotor carrier safety oConsolidation of 10 separate grant programs into one and increases flexibility oSingle set of matching requirements oAuthority for FMCSA to use grant funds for contracts in support of national program activities oNew maintenance of effort standard so States are not penalized when contribute additional State resources Commercial Motor Vehicle Safety Grant Program

12. oTIFIA reforms oRepayment flexibility on a case-by-case basis for schedules and maturity dates oCredit assistance in the form of loan guarantees or lines of credit not subject to Title 23/49 oAbility to cover up to 50% of project costs if repayment is from direct pricing oLoan guarantees/lines of credit may supplement secured loans as long as total assistance does not exceed 40% of eligible project costs oCurrently, credit assistance is limited to 33% of total project cost Transportation Infrastructure Finance & Innovation Act Program

13. Rest Area Pilot Project oRest Area Quality Improvement Pilot oTen states oCompetitive franchise agreements oExcess revenue dedicated to Title 23 purposes oImprovements to truck parking facilities

14. Transportation for Tomorrow Report of the National Surface Transportation Report of the National Surface Transportation Policy and Revenue Study Commission Policy and Revenue Study Commission December 2007

15. Recommendations: New Federal Compact oA strong federal role oImproved effectiveness & accountability for investments oInvestment strategies targeted at performance outcomes oIncreased expenditures from all levels of government & private sector oInstitutional & Federal program delivery reforms

16. The National Interest: Ten Focus Areas oRebuilding America: a National Asset Management Program oFreight Transportation: A Program to Enhance U.S. Global Competitiveness oCongestion Relief: Improved Metropolitan Mobility oSaving Lives: National Safety Mobility Program oConnecting America: National Access Program for Smaller Cities and rural Areas oIntercity passenger Rail: Serve High-growth corridors… oEnvironmental Stewardship: Investment…to support a healthy environment oEnergy Security: to accelerate development of environmentally friendly…fuels oFederal Lands: … providing Public Access oResearch, Development & technology: Coherent Transportation research Program for the Nation.

17. Freight Focus oFreight Challenges: oMaintaining global competitiveness & supporting interstate commerce oInfrastructure capacity & performance oFreight Investment Program oCapacity improvements in key corridors oP3’s oEnvironmentally friendly freight improvements