SECTION: CAPITOL HILL HEARING TESTIMONY

LENGTH: 3077 words

COMMITTEE: HOUSE TRANSPORTATION AND INFRASTRUCTURE

HEADLINE: SURFACE TRANSPORTATION REAUTHORIZATION

TESTIMONY-BY: MARY E. PETERS, ADMINISTRATOR

AFFILIATION: FEDERAL HIGHWAY ADMINISTRATION

BODY:
CORRECTED COPY

STATEMENT OF MARY E. PETERS, ADMINISTRATOR FEDERAL HIGHWAY ADMINISTRATION

JENNIFER L. DORN, ADMINISTRATOR FEDERAL TRANSIT ADMINISTRATION

JOSEPH M. CLAPP, ADMINISTRATOR FEDERAL MOTOR CARRIER SAFETY ADMINISTRATION

JEFFREY W. RUNGE, M.D., ADMINISTRATOR NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION

U.S. DEPARTMENT OF TRANSPORTATION

Before the SUBCOMMITTEE ON HIGHWAYS AND TRANSIT COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE

U.S. HOUSE OF REPRESENTATIVES

February 7, 2002

Mr. Chairman, Members of the Subcommittee, thank you for the opportunity to participate in this first hearing before your committee on the reauthorization of the nation's surface transportation legislation.

Through the leadership of the Committee on Transportation and Infrastructure, and with the active participation of our State, local and private sector partners, the Department of Transportation has worked to realize the purposes and objectives of the Transportation Equity Act for the 21st Century (TEA-21).

We are looking forward to working with the members of this subcommittee, the full committee and Congress in shaping proposals for the reauthorization of this legislation. Working together, we need to establish the base of resources available for this important legislation in order to meet the transportation challenges facing the nation. The enactment of the predecessor of TEA-21, the Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA), revolutionized the Nation's approach to surface transportation. With that legislation, new principles in the implementation of the Nation's surface transportation programs were established: building partnerships with local and State officials to advance the strategic goals for transportation capital investment; flexibility in the use of funds; a commitment to strengthening the intermodal connections of the nation's transportation system; expanded investment in, and deployment of, new information technologies for transportation services; and a heightened sensitivity to the impacts that transportation has on our quality of life and on the shape and character of America's communities.

TEA-21 built upon the programmatic initiatives contained in the earlier legislation and, through its financial provisions, provided State and local governments and other transportation providers with greater reliability in planning transportation investments. It achieved this by reforming the treatment of the Highway Trust Fund to ensure that, for the first time, spending from the Highway Trust Fund for infrastructure improvements would be linked to highway revenues. The financial mechanisms of TEA-21 -firewalls and the minimum guarantee - provided greater equity among States in Federal funding and record levels of transportation investment.

The programmatic and financial initiatives of these two historic surface transportation acts have provided us with a solid and balanced structure around which we can shape this reauthorization legislation. While the legislation should continue to build upon ISTEA and TEA-21, Secretary Mineta has noted that the Department of Transportation has an opportunity and an obligation to do more.

This is a time of extraordinary challenge and opportunity in the transportation sector. The world of surface transportation is changing. The Administration has launched an ambitious new research initiative to develop fuel cell technology that will improve environmental quality and reduce our need for petroleum- based fuels. As we look forward, we will need to consider other sources of revenue for the nation's transportation programs in anticipation of these technological advances. Furthermore, the events of September 11th have demonstrated how critical the nation's transportation system is to the security of every American and to the nation's economic well-being.

Secretary Mineta has articulated a set of core principles and values that will frame the Department's approach to TEA-21's reauthorization. These principles seek to enhance the safety and security of all Americans, even as we increase their mobility, reduce congestion, and grow the economy. These are not incompatible goals; the lessons of TEA-21 demonstrate that these are appropriate, indeed necessary, goals of national transportation policy and that they reinforce each other. It is possible to have a transportation system that is safe and secure, efficient and productive.

TEA-21's Record

In five principal areas, TEA-21 has strengthened the nation's transportation system: funding levels and program equity; safety; mobility and system upgrading; new technologies; and quality of life.

Funding Levels and Program Equity

TEA-21 dramatically altered the nature of transportation funding and authorized record amounts of funding for transportation, a 40 percent increase over the period of ISTEA. The minimum guarantee and the Highway Trust Fund firewalls created confidence among grantees regarding program funding. These mechanisms have enhanced the ability of State and local officials to plan, finance and implement their programs. States and local communities have increased their funding levels to match the commitments made in TEA-21. Importantly, TEA-21's minimum guarantee provided unprecedented equity among the States, ensuring that highway funds were distributed in the fairest manner to date.

Equally important was the funding flexibility, first allowed in ISTEA and continued in TEA-21. Flexible funding has allowed States and communities to tailor their transportation choices to meet their unique needs and has enabled State and local decision- makers to consider all transportation options and their impacts on traffic congestion, air pollution, land use patterns, economic development, and quality of life.

TEA-21's innovative loan and grant programs further augmented the highway and transit programs. The Transportation Infrastructure Finance and Innovation Act (TIFIA) has provided almost $3.6 billion in federal credit assistance to eleven projects of national significance representing $15 billion in infrastructure investment. These loans, loan guarantees, and lines of credit for highway, transit and rail projects encouraged private investment in strengthening the transportation infrastructure.

The key to ensuring that highway-related receipts are spent is that the highway funding level is adjusted each year to reflect the latest information on Highway Trust Fund (HTF) receipts. At the time of the enactment of TEA-21, highway program funding levels were set based on estimates of HTF receipts. Each year, the level is adjusted using a formula specified in TEA-21. This adjustment ensures that highway spending remains aligned with HTF receipts.

These adjustments have provided significant additional highway spending over the past three years. Thus far, States have received $9 billion more than they would have received under guaranteed levels. That's $9 billion that is already working in the economy. Unfortunately, due to the recent economic slowdown and current projections of future highway trust fund receipts, the adjustment for FY 2003 will be a negative $4.369 billion. However, even with this negative calculation, over the life of TEA-21, these adjustments will provide a net gain of $4.6 billion in highway spending.

The calculation of the adjustment is not a policy call - it is a budget calculation based in law. As we discuss the reauthorization of TEA-21, we need to look for ways to smooth out current positive and negative swings that result from the adjustments in order to make it more predictable. However, linking highway spending to receipts is a fundamental principle of TEA-21 and should not be abandoned on the eve of reauthorization.

Safety

The safety and security of the public is the Department of Transportation's most important priority, and America has an enviable transportation safety record. The Department's goal is to ensure that the Nation's transportation systems area as safe and secure as possible, while preserving freedom of mobility and promoting economic vitality. The events of September 11th have underscored the importance of the Department's commitment to this goal.

Highway Safety

The challenge of safety in the transportation system remains significant. While the number of highway fatalities in recent years has been held relatively flat, despite significantly rising numbers of vehicles on our roads, more than a quarter of a million people have been killed on America's roadways in the past six years, 42,000 deaths each year. There are also more than 3 million police-reported injuries annually. We can, we must, and we will strive to do better.

TEA-21 introduced new programs, greater flexibility and increased funding to meet this challenge. Increased TEA-21 funding enabled States to make needed safety improvements to the infrastructure, and States may - and do - use their Surface Transportation Program (STP), Interstate Maintenance, and National Highway System (NHS) funds for safety infrastructure improvements. Safety is built into every interchange upgrade, intersection redesign, signing project and pavement improvement.

Within the STP, 10 percent of funds are reserved under TEA-21 for highway-rail crossing improvements and hazard elimination. The Hazard Elimination program supports efforts to resolve safety problems at hazardous highway locations. Since the enactment of TEA-21, States have obligated $489.3 million in Hazard Elimination funds. Another $707.4 million in optional safety funds have been obligated primarily for Hazard Elimination. The program is estimated to have saved 7,200 lives since 1998. The Highway-Rail Grade Crossing Safety program is designed to reduce crashes at public grade crossings, and $499 million in Highway- Rail Grade Crossing funds have been obligated. The grade crossing safety program is estimated to have saved 2,000 lives since 1998.

The Federal Highway Administration (FHWA) also devotes Surface Transportation Research and Technology Deployment funds to safety initiatives and products. These include innovations, such as automated enforcement of red light running, to improve the safety of intersections. Speed management techniques are designed to reduce the 30 percent of fatal crashes in which speed is a factor. Rumble strips help prevent run-off-the-road crashes, which account for 38 percent of all fatal crashes. FHWA provides technical assistance to States like Maryland, whose 1999 data show a $182 safety benefit for every dollar spent on rumble strip installation.

In 2000, 13 percent of all traffic fatalities were pedestrians and bicyclists. Projects to raise public awareness of pedestrian and bicycle safety are designed to reduce the fatal crash rate for these vulnerable populations. Such projects include "Safer Journey", an award-winning pedestrian safety awareness CD-ROM that provides an interactive "virtual" journey home with critical safety choices on the way. Engineering improvements to make signs more visible and intersections safer for older drivers are taught through Older Driver Workshops for Engineers. Tools and training are being developed to help planners integrate safety in the metropolitan and State planning processes. The FHWA works closely with States and others to improve our ability to analyze roadway safety challenges and to direct investments to specific projects and programs. This will deliver the most value in terms of lives saved and injuries minimized.

Highway Safety Grant Programs

Since enactment of TEA-21, the Department has awarded a total of $729 million in State and community formula highway safety grants to encourage proper use of occupant protection devices; reduce alcohol and drug-impaired driving; reduce crashes between motorcycles and other vehicles; reduce school bus crashes; improve police traffic services; improve emergency medical services and trauma care systems; increase pedestrian and bicyclist safety; improve traffic record systems; and improve roadway safety.

TEA-21 also established several new safety incentive grant programs. Highway safety programs that TEA-21 authorized have been integral to reducing death and injury on our highways through seat belt use promotion and alcohol-impaired driving countermeasures. Between FY 1999 and FY 2002, NHTSA awarded approximately $323 million in Seat Belt Incentive and Innovative grants. Between FY 1999 and FY 2001, NHTSA awarded $31.3 million to States for Occupant Protection Incentive grants, which fund projects to increase seat belt and child safety seat use through increased enforcement of safety belt and child safety seat laws, air bag education, and correct child safety seat usage education. As of June 2001, seat belt use was at 73 percent, up from 65 percent in June 1998. Seat belt usage saves an estimated 12,000 people annually.

In addition, TEA-21 established incentive grant programs designed to reduce deaths and injuries resulting from alcohol-impaired driving. From FY 1998 through FY 2001, NHTSA awarded approximately $253 million in incentive grants to States that enacted and enforced 0.08 Blood Alcohol Concentration (BAC) laws. In FY 1998, the first year of these incentive grants, 15 States had .08 BAC laws in effect. By FY 2001, 27 States, the District of Columbia and Puerto Rico had complying .08 BAC laws in effect, a significant increase since initiation of the program. Between FY 1998 and FY 2001, NHTSA awarded approximately $132 million to States for Alcohol-Impaired Driving Countermeasures Incentive grants, which fund projects to reduce drunk driving through implementation of new laws, innovative programs and increased enforcement.

Due to transfer programs established under TEA-21, the number of States with open container laws has increased from 14 to 35 including the District of Columbia and the number of States with Repeat Offender laws has increased from 4 to 28 including the District of Columbia.

Transit Safety

TEA-21 continued the Federal Transit Administration's authority to assure that safety and security needs are being addressed. The Act requires that grant recipients spend at least one percent of their funds on safety and security, unless they certify that such expenditures are not necessary. FTA verifies compliance with this requirement through its triennial review program. Recipients of grants under the "New Starts" program must establish comprehensive safety and security programs and demonstrate their technical capacity to carry out those programs. Additionally, FTA makes capital grants to public transportation agencies for crime prevention and security, as well as research and demonstration grants for both safety and security. Finally, FTA trains over 5,500 public transportation employees each year through the Transportation Safety Institute and National Transit Institute, and provides guidance, manuals and best practices to transportation agencies nationwide.

Transit has an enviable safety record. Across all modes of public transportation, accidents per million passenger miles decreased by nearly 28 percent between 1993 and 1999; transit passenger injuries per million passenger miles declined nearly 24 percent; and fatalities rates remained stable at .008 deaths per million passenger miles. Largely as a result of technological advances, both light rail and heavy rail showed very significant declines in accidents and injury rates.

Motor Carrier Safety

TEA-21 and the Motor Carrier Safety Improvement Act of 1999 (MCSIA) created new programs and tools for the Department and the States to improve safety. TEA-21 increased flexibility for grantees, strengthened Federal and State enforcement capabilities, and provided greater administrative flexibility to promote innovative approaches to improving motor carrier safety. From 1998 through 2001, States received $406 million in Motor Carrier Safety Assistance Program (MCSAP) grants to perform roadside vehicle and driver inspections and other activities to improve the safety of commercial vehicles in their States. TEA-21 also placed greater emphasis on targeting unsafe carriers and improving the information systems and analyses that underpin all national motor carrier safety activities. TEA-21 gave States greater flexibility to design their motor carrier safety enforcement plans with their particular safety challenges in mind, required coordinated traffic safety planning at the State level, and provided significantly higher levels of funding assistance to States through MCSAP. This increased funding is helping States improve their commercial driver license (CDL) programs.

Since 1998, $15.6 million in special commercial driver license grants have been awarded to States to improve the flow of licensing and violation information and step up measures to protect against fraudulent licensing schemes. More than $15 million in additional grants will be awarded this year. Today 20 States are receiving funds to implement the Federal Motor Carrier Safety Administration's (FMCSA) Performance and Registration Information System Management (PRISM) program up from 5 States in 1998. TEA-21 placed special emphasis on using safety information systems to target enforcement on carriers with poor safety records. The Commercial Vehicle Information System Network (CVISN), allows States, the Federal government and motor carriers to exchange information to support targeting of high-risk carriers at the roadside. Four States have deployed CVISN, and 30 additional States are ready for deployment. Using the dedicated funding provided by TEA-21 for safety information systems, the Department has made data on motor carriers' safety performance widely available to the public through our website. This enables businesses to make sure their products move with safe carriers and exerts market pressure on carriers to improve safety performance. TEA-21 also increased penalties for violations of Federal motor carrier safety regulations, allowing fines of up to $10,000 to be assessed for each non-record keeping safety violation. In April of 1999, we issued guidance to our State Directors to increase penalty assessments consistent with the new levels established in TEA-21 to induce carriers to comply



LOAD-DATE: February 12, 2002