1. 2015 Unified Transportation Program (UTP) Update March 05, 2015 HOBBY MANAGEMENT AREA TRANSPORTATION UPDATE Texas Transportation Commission March 05, 2015

2. 2015 Unified Transportation Program (UTP) Update March 05, 2015 Texas’ Transportation System Texas has one of the largest highway system in the nation More than 53,000 bridges 80,233 centerline miles 194,887 lane miles More than 1,000,000 acres of right of way

3. 2015 Unified Transportation Program (UTP) Update March 05, 2015 TxDOT’s Strategic Vision  Texas is at an historic crossroads for mobility demand.  Throughout the State’s history, our transportation system has supported and enabled the state’s economy.  Today it is a key part of Texas’ annual gross domestic product, which was more than $1.5 trillion in 2013.  Population has grown and continues to grow at a very rapid pace, – More than 4 million new people between 2000 and 2010. – Projections are that our population will expand from 26 million today to 45 million by 2035. We must meet the challenges of today while discovering and creating a vision and path to our state’s transportation future.

4. 2015 Unified Transportation Program (UTP) Update March 05, 2015 Congestion Growth in Texas  Each year, congestion costs Texans: 472 million extra hours of travel time $10.1 billion in delay and fuel costs $2.1 billion in truck freight moving costs  Texas cities have highest levels of congestion in nation: # 6 – Houston # 13 – Dallas/Fort Worth #17 – Austin  By 2035, Texas will add 5 million new residents Levels of congestion on freeways and major roads Source: Texas Transportation Institute’s “2012 Urban Mobility Report”

5. 2015 Unified Transportation Program (UTP) Update March 05, 2015 Increasing Demands for Capacity  The introduction of hydraulic fracturing to explore and extract natural gas and crude oil has been a boon for the Texas economy. – Resulting in unprecedented volumes of heavy truck traffic typically moving across the state’s rural highway system that was not designed or constructed to support these loads.  The expansion of the Panama Canal will provide a great economic development opportunity for Texas. – Growing trade between the United States, South America, and Asia puts Texas in a position to capture a larger share of Asian and South American imports, while expanding export markets.  Texas stands on the doorstep of a Mexican economy that continues its steady expansion. – A robust Mexican economy means even more trade with Texas’ largest export partner. We need a next generation transportation system to meet these demands, and must make strategic investments in this system to ensure we can meet these demands to enable Texas to continue to compete in the global economy and to sustain the quality of life Texans deserve.

6. 2015 Unified Transportation Program (UTP) Update March 05, 2015 TxDOT- Must Be Multi-Modal  The 2013-2014 TxDOT biennial budget dedicated less than 3% of the available resources to non-highway transportation programs.  Less than 0.5% of the budget supports rail programs. – No dedicated source of federal funding to assist with freight rail developments and improvements – The Texas Railroad Relocation and Improvement Fund, established by a constitutional amendment in 2005, remains unfunded.  Less than 1% of the 2013-2014 TxDOT biennial budget supports public transportation.  Less than $200 million for the biennium (about 1% of the total) for the state’s general aviation system needs.  Less than $1 million a year is available to support of the Gulf Intracoastal Waterway and the budget provides $45 million a year to operate the Texas ferry system.  11% of available resources ($2.4 billion) goes to debt service for highway mobility and safety projects financed over the past decade.  Another 11% is used for planning, design, and right of way acquisition to support highway construction. We are operating under a 20th century highway budget, but we are charged with being a 21st century department of transportation. 

7. 2015 Unified Transportation Program (UTP) Update March 05, 2015 Age of Centerline Miles in Texas 50% of state’s highways were built between 1947-1977. Highways are now 35-65 years old. 85% of our highways are more than 35 years old.

8. 2015 Unified Transportation Program (UTP) Update March 05, 2015 Proposition 1 Implementation Process Proposition 1 Timeline  November 4: Voters approve proposition 1 with 80% approval.  December 11: ESF committee established the sufficient balance of the ESF, which resulted in a $1.74 billion distribution in FY 15 to the State Highway Fund.  December 12: Stakeholder Working Group confirmed the distribution plan by TxDOT. – 40% to address Congestion using the Category 2 formula – 30% to address System Connectivity using the Category 11 formula – 15% to address Maintenance needs using the Category 1 formula – 15% to address Energy Sector using a hybrid version of the SB 1747 formula  December 15: received letters of approval from LBB and Office Of The Governor.  December – February: coordinated with MPOs and Districts on project selection.  February 26: Commission approved 1st update to UTP with Prop. 1 funded projects.

9. 2015 Unified Transportation Program (UTP) Update March 05, 2015 Proposed funding adjustments to 2015 UTP Funding Level Adjustments Distribution of $1.74 billion in Proposition 1 funds Based on local Metropolitan Planning Organization (MPO) and District input On-going coordination with MPO programming efforts Adjustments may be considered based on public involvement Administrative Revisions Adjustments to projects and funding allocations

10. 2015 Unified Transportation Program (UTP) Update March 05, 2015 Proposed Proposition 1 Distribution by District

11. 2015 Unified Transportation Program (UTP) Update March 05, 2015 February Update Schedule January 20, 2015Public Meeting January 23, 2015Texas Register Posting (for public hearing). Start 30-day comment period January 29, 2015 9:00 a.m. (CST): Presentation of proposed amendments to Texas Transportation Commission February 12, 201510:00 a.m. (CST): Public Hearing at 118 E. Riverside Drive, Austin, TX February 23, 2015 4:00 p.m. (CST): Deadline for receipt of comments (by e-mail, phone, or in writing) February 26, 2015Commission approved UTP updates Note: 30-day comment period happened from January 23 to February 23.

12. 2015 Unified Transportation Program (UTP) Update March 05, 2015 Houston District  Plans, designs, builds, operates and maintains the state transportation system in six counties: Brazoria, Fort Bend, Galveston, Harris, Montgomery and Waller.  Encompasses 5,856 square miles.  Serves approximately 5.8 million people.  Approximately 5.1 million registered vehicles.  Current FTE count is 1,025.  Seven area offices and nine maintenance sections.

13. 2015 Unified Transportation Program (UTP) Update March 05, 2015

14. 2015 Unified Transportation Program (UTP) Update March 05, 2015 Meeting Current & Future Demand TxDOT must work with elected officials and local and regional partners to make current and new sources of revenues resilient and flexible enough to tackle our transportation demands in a variety of ways. ♦ We must create a vision for our future transportation system and move beyond a budget and transportation policies focused on construction and maintenance of the highway system to new policy and budget systems that support multimodal, transformative transportation options for Texas. ♦ TxDOT and its leadership are committed to working with our partners to make this a reality for Texas. We want to become a true department of transportation, in practice and funding, not in name only. It will take a lot of work, but, if we are to truly fulfill our mission to work with others to provide safe and reliable transportation solutions for Texas, it is work that must be done.

15. 2015 Unified Transportation Program (UTP) Update March 05, 2015 Questions?