Circulation Draft Created on 12/8/2009 2:58:00 PM

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1 Circulation Draft Notes: This document is a draft document. It is not to be construed as a final product as it will change (i.e. items may be added or deleted). Please feel free to send comments at any time to Jefferson Grimes at jgrimes@dot.state.tx.us. This version will be used in a discussion with the Texas Transportation Commission on Wednesday, December 16, Following that meeting, we will take comments until January 15, 2010, at which time a final draft will be prepared for Commission action at its January 28, 2010 meeting. Texas Transportation Commission Policy Considerations Reauthorization of the Federal Surface Transportation Program Introduction (Subject to edits and additions) At the direction of the Texas Transportation Commission, agency staff was directed to develop a proposed federal legislative agenda which identifies key policy objectives for Congress to consider as they debate reauthorization of the federal transportation program. Ultimately, these key policy objectives will be provided to members of the Texas Congressional Delegation as a resource in the upcoming months as the issue is debated in both committee and on the floors of each house of Congress. As a part of this direction from the Commission, agency staff has reached out to both stakeholders and the general public in an attempt to solicit input and ideas into what principles should guide the future transportation policy of this state and the nation. TxDOT published a call for ideas through the internet and through more traditional means such as the Texas Register. Staff met with coalitions such as the Border Trade Advisory Coalition and the Texas Municipal League and with principles from the Ports to Plains and the Midland-Odessa Transportation Alliances. Staff met with the state s small urban and rural transit providers through the Texas Transit Association and with the Texas Association of Metropolitan Planning Organizations. TxDOT also met with representatives of some of the state s local toll project entities (specifically, the North Texas Tollway Authority, Harris Country Toll Road Authority, Central Texas Regional Mobility Authority, Alamo Regional Mobility Authority, and the Camino Real Regional Mobility Authority). And of course, staff gathered input from within the agency as well. What follows is a listing of common policy issues and ideas stemming from these deliberations and meetings. Although it goes without saying that there are differing opinions on some transportation matters, it was equally clear that definite commonalities in philosophy exist between the agency and many of its transportation partners. 1

2 Policy Objectives Rate of Return: No single issue serves as the primary focus for the state s relationship with the federal government on transportation matters more so than ensuring that Texas gets its fair share of the monies the state sends to Washington. The political reality of the issue is that it is highly unlikely that Texas, and other donor states, will be in a position to increase the rate of return without a substantial infusion of new funding. However, if the opportunities arise to improve the state s rate of return then Texas Congressional Delegation should be in an informed position and ready to take advantage of it. Calculations of rate of return can be complicated. Texas has historically performed done well in formula programs and has faired poorly in discretionary programs. Presently, when highway and transit funding is combined, Texas receives approximately (insert figure in January 2010 final version) cents back for every dollar in federal motor fuels tax sent to the federal government. Throughout deliberations on the next federal reauthorization bill, Texas should at least maintain the status quo in its rate of return. If additional fuel taxes are made available, all new funds above the current tax should accrue to each state at a 100 percent rate of return and should have a higher degree of flexibility than current funding. Texas has little to gain by leading the Congressional fight for an increased rate of return. However, the Congressional delegation needs to be informed on how the rate of return is calculated so that they may be in a better position to argue its merits should the need arise. (Local Toll Project Entities; Texas Municipal League; Association of Texas Metropolitan Planning Organizations) Overall concern with how to fund myriad new programs being considered such as the National Infrastructure Bank. (Local Toll Project Entities; Texas Municipal League; Association of Texas Metropolitan Planning Organizations) Concern over the effect of any new program establishing fees associated with greenhouse gas emissions. (Local Toll Project Entities) Turn as many discretionary programs into formula based programs as possible. (Border Trade Advisory Coalition; Ports to Plains Alliance; Midland-Odessa Transportation Alliance) Clearly Established Goals and Roles: Many have argued that there has been no formally defined goal of the federal highway program since the 1950 s when the focus was on development of the Interstate Highway system. Since that time, the program has focused on, whether appropriately or not, everything from increased environmental requirements to funding many separate programs. There should be a clearly defined federal focus on 2

3 addressing congestion relief in our metropolitan areas, connectivity between our urban centers, and in maintaining and preserving this nation s highway assets. Congress should establish the overarching goal of the federal transportation program. Federal reauthorization of the transportation program should clearly define the roles that the federal, state and local governments and the private sector play in addressing each of these goals need to be clearly articulated, enforced, and incentivized. There should be no additional layers of bureaucracy established at the federal level if the result is anything less than a streamlined system of funding and project development. Do not grant additional oversight responsibility to local entities such as metropolitan planning organizations. (Local Toll project Entities) Keep decision making at the local and regional level. (Association of Texas Metropolitan Planning Organizations) Create a national vision for transportation that maintains economic competitiveness and preserves assets. (Association of Texas Metropolitan Planning Organizations) Make all funding formula based and find ways to fully fund the nation s needs. (Association of Texas Metropolitan Planning Organizations) Ensure that future CAFE standards do not result in decreased revenue to the federal highway trust fund. (Association of Texas Metropolitan Planning Organizations) Concerned that rural areas of Texas will be unable to sustain a VMT-based system of funding. (Association of Texas Metropolitan Planning Organizations) Concerned that a VMT-based system of collecting revenue may inadvertently exacerbate the donor-donee conundrum. (Texas Municipal League) Private sector developers should shoulder increased responsibility in funding transportation systems perhaps through impact fees. (Texas Municipal League) Clearly Defined Performance Measures and Program Consolidation: Federal programs and funding should be consolidated based upon the clearly established national goals. Coupled with that consolidation are the resultant programs which hold performance measures that are meaningful and establish a sense of progress towards meeting national goals. Establishing performance measures which are attributable to attainment of national, state and local goals are an excellent way of ensuring that the public is receiving the best transportation system possible for the investment. Reauthorization should consolidate highway and transit programs where it makes sense to do so with the overall goal being to broaden the amount of funds available to specific program areas. As an example, there are dozens of federal programs that fund highways. These should be reduced to only a handful. In addition, as Congress moves towards 3

4 establishing and increasing performance measure, appropriate measures must be identified for all levels of government. Enhance sustainability and accountability with measurable performance standards. (Association of Texas Metropolitan Planning Organizations) Performance measures are good if done in a streamlined and cohesive manner. Currently transit has too many reporting requirements that aren t efficient and don t serve a national purpose. (Texas Transit Association) All funds distributed through formula instead of competitive grant and discretionary processes. (Texas Transit Association) Maintain the Coordinated Border Infrastructure Program as a separate formula based program instead of rolling it in with the discretionary program on projects of national significance. (Border Trade Advisory Coalition; Ports to Plains Alliance; Midland- Odessa Transportation Alliance; City of El Paso) Performance measure for the border region should include improved security and less wait time at border crossings. (Border Trade Advisory Coalition) Flexibility in Use of Federal Funds: State and regions should be able to decide where and how to spend federal transportation dollars. Specifically, this flexibility should not only exist but be encouraged across modes and types of projects. As the transportation systems of the future rely more on rail projects and tolled highway projects, the need for this flexibility will become significantly more acute. Congress reauthorization legislation should ensure that states and locals are authorized to utilize federal funds across modal lines. Establish more flexibility to spend funds between highway programs. Flexibility among modes does little to relieve congestion and bang for buck. (Local Toll Project Entities) Allow funds to be spent on rail and specifically freight rail. (Border Trade Advisory Coalition; Ports to Plains Alliance; Midland-Odessa Transportation Alliance) Per federal legislation introduced in 2007 (S. 406), would like to be able to use funds for operating expenses in addition to capital expenses. (Texas Transit Association) Make match 80/20 across the board for all programs. (Texas Transit Association) Focus funds on high growth and high density, currently priority given to high density only. (Texas Transit Association) 4

5 Expedite Project Delivery: Perhaps no single issue was more of concern to local and state stakeholders than the concept of removing barriers to the expedited delivery of highway improvement projects. It is possible to deliver highway projects in an environmentally sound manner and do so in a reasonable time frame. Reauthorization of the federal transportation program must focus on expedited project delivery. Specifically, there should be firm establishment of additional programmatic environmental permitting approvals and further delegation of environmental review to the states. In addition, federal law should require that all records of decisions for projects be processed within a specific time frame. Streamline the environmental review process. (Local Toll Project Entities) Remove the present 120-day filing deadline for the filing of lawsuits under NEPA and return to the six year time frame. (Local Toll Project Entities) Innovative Funding and Project Delivery: Due to the increased unreliability of federal funding, states should be allowed to develop innovative relationships with its local and private sector partners in a productive manner without intrusive federal oversight. There have been some proposals which seek to establish new federal bureaucracies under the auspices of ensuring that the public s interests are considered and maintained. Texas would issue the challenge that no one is better prepared to determine what constitutes the best interests of its citizenry than those at the state and local level. Additional federal agencies which do everything from approving innovative partnerships to approving local toll rates are the antithesis of streamlining. Reauthorization of the federal transportation program should include provisions which ensure that private sector investment in addressing transportation infrastructure improvements is encouraged. The decision to utilize toll roads and private sector solutions should remain exclusively a state and local decision. Certain federal programs, such as the TIFIA program, should be funded with increased vigor. Ensure that there are no new federal laws limiting the ability of states and local governments to enter into public-private partnerships. (Texas Municipal League) 5

6 Increase federal investments in the TIFIA program and ensure that there is no penalty for paying bonds off early. (Local Toll Project Entities) Ensure no additional federal oversight of toll road development including such issues as federal oversight in regards to the necessity for toll roads and the approval of toll rates. (Local Toll Project Entities; Texas Municipal League) Repeal the Federal Highway Administration rule on the fair market value for concession agreements. (Local Toll Project Entities) Ensure that the federal laws governing transportation development credits remain intact. (Texas Transit Association) Earmark Prioritization: (Placeholder for text.) (Placeholder for proposed Commission objective.) Earmarks are not necessarily a bad idea but there should be some criteria for identifying what constitutes an appropriate earmark. (Association of Texas Metropolitan Planning Organizations; Texas Municipal League) Should have the flexibility to combine unused earmarks after a certain period of time and use them for one or more other projects in the region without having to get Congressional authorization to do so. (Association of Texas Metropolitan Planning Organizations) Conclusion (Placeholder for conclusion.) This document is intended to be a reference point by which the Texas Transportation Commission and its transportation stakeholders may communicate broadly what are the important transportation policies for Texans over the coming decades. Produced by the Texas Department of Transportation s Government and Public Affairs Division Coby Chase, Director Jefferson Grimes, Deputy Director 6