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Volume 101 Number 09
March 2, 2001
Executive Digest

Congress
Information
Details

Bush Budget Fully Funds TEA-21 and AIR-21 Guarantee

    The FY 2002 budget outline released by the Bush Administration on Wednesday fully funds the guarantees included in TEA-21 and AIR-21, providing some $32.3 billion for the highway program, $6.7 billion for transit and $3.3 billion for the Airport Improvement Program. Overall funding for the transportation program is cut $2 billion, however, as the result of the elimination of "one-time appropriations" for special projects in FY 2001.

    The first budget proposal offered by President George W. Bush includes $1.6 trillion in tax cuts, along with increased funding for education, medicare, medical research and the military. In an attempt to stem the rate of federal spending increases, Bush is proposing to keep overall spending slightly above four percent over the next 10 years.

    President Bush released a 175-page document containing overall funding levels for different programs and highlighting certain initiatives. The transportation portion is three pages, and can be found on the White House web site. The administration's comprehensive budget proposal will be submitted to Congress on April 3.

    The bare-bones budget proposal confirmed that Secretary of Transportation Norman Mineta managed to secure funding levels exactly consistent with the guarantees included for the highway, transit and aviation programs, despite previous attempts by the Office of Management and Budget to cut back on aviation funding.

    However, the transportation program took an overall cut of $2.1 billion in the budget proposal, all in discretionary spending. The Department of Transportation justified the cut by citing over $2 billion in "one-time appropriations" in FY 2001. Among these were $1.4 billion for over 90 demonstration projects, $600 million for the Woodrow Wilson Bridge, and some $718 million to pay off outstanding emergency relief requests.

    The Administration's budget proposal assumes that Congress will not continue with its increased rate of earmarking funding for specific projects this year. Congressional appropriations staff, speaking at the AASHTO Washington Briefing this week, indicated that earmarking will likely continue this year (see related article).

    RABA Maintained

    The budget proposal includes some $32.3 billion for highways, $2.1 billion above the FY 2001 enacted level. This amount is consistent with the provisions of TEA-21, and includes some $4.5 billion in revenue-aligned budget authority (RABA) from higher-than-expected motor fuel tax receipts into the Highway Trust Fund. The $32.3 billion figure includes a federal-aid obligation authority of $31.633 billion, Federal Motor Carrier Safety Administration funding of $325 million, and highway safety grants of $223 million.

    The administration proposes to stray slightly from the RABA formula contained in TEA-21, but not to the extent of the previous administration's budget proposals. Specifically, the Department proposes to use $145 million in RABA funding for two new programs associated with the President's New Freedom Initiative. Under the initiative, $45 million would be provided for pilot programs to improve transportation for people with disabilities, while $100 million in competitive matching grants would be available for promoting access to alternative methods of transportation.

    Transit, Aviation, Other Programs Fully Funded

    Transit also fares well in the budget, with the authorized level of $6.7 billion proposed for FY 2002 - an increase of $486 million over the FY 2001 level.

    Funding for the Federal Aviation Administration increases 6 percent in the President's budget to a level of $13.2 billion. The funding authorizations of AIR-21 are met in the proposal, with the Airport Improvement Program funded at $3.3 billion, a $100 million increase over FY 2001. FAA operations and facilities and equipment are funded at $6.88 billion and $2.9 billion, respectively.

    Some $521 million is provided for Amtrak capital improvements, equal to what was appropriated in FY 2001. Despite initial fears of spending cuts, the Coast Guard would receive a $545 million boost in spending to a $5.1 billion overall level.

    Possible Reforms Outlined

    The budget blueprint states that the Department of Transportation will address possible reforms in the comprehensive budget, including improved oversight of large highway projects. In remarks to delegates at the AASHTO Washington Briefing Secretary Mineta said that with the 40 percent increase in federal funding under TEA-21, the Department of Transportation would look for ways to be more vigilant in overseeing large transportation projects to reduce instances of possible fraud.

    In the budget outline, the Administration hinted it may consider looking into privatizing the air traffic control system. Specifically, the Department intends to examine privatization efforts in Canada and other countries, and "develop a plan of action for improving the Nation's aviation record."

Supreme Court Upholds EPA Authority on Clean Air

    Another 242 counties across the nation will fail to meet federal air quality standards following a Supreme Court ruling this week upholding the Environmental Protection Agency's authority to issue tougher ozone and particulate matter standards. However, it appears that the EPA must go back to the drawing board on how the standards are to be implemented.

    In a ruling issued Tuesday, the court overturned a lower court decision that held EPA had exceeded its authority in issuing the new eight-hour standard for ozone emissions and a new particulate matter standard. In a unanimous decision, the Supreme Court also barred EPA from considering compliance costs when setting standards to protect the public health.

    Justice Antonin Scalia stated in his opinion that the federal law requires EPA "to set air quality standards at the level that is requisite, that is, not lower or higher than necessary, to protect the public health with an adequate margin of safety."

    The legal challenge was considered one of the most important tests of the Clean Air Act and other regulatory actions in years, because it questioned how much latitude agencies might take to implement the laws passed by Congress.

    While upholding the agency's authority, the court also ruled that the EPA's implementation plan was unreasonable and in violation of the Clean Air Act Amendments of 1990. The court remanded the case to the U.S. Court of Appeals for further action on a new implementation plan to be devised by the EPA.

    Non-Attainment Designations Key to Transportation Agencies

    Under the new eight-hour ozone standard issued by the EPA in 1997, the number of counties failing to meet federal air quality standards will increase from 414 to 656, according to James Shrouds, Director of the Office of Natural Environment for the Federal Highway Administration. The EPA had initiated the designation process, but that was halted by Congress last year when Congress passed legislation prohibiting any designations until June 15, or until the Supreme Court decision was issued.

    "There's a big question mark about how they are going to proceed," Shrouds said. He noted it would be possible for EPA to go ahead with the designation of nonattainment areas prior to the development of the new implementation policy. But he added that he did not think the agency will act quickly, because of the complexity of the court decision and the lack of key political appointees at the agency likely to be involved.

    In an address to the AASHTO Washington Briefing on Monday, Shrouds noted that under the new eight-hour ozone standards an additional 52 areas, comprised of 242 counties, will be designated as "non-attainment areas." In 29 areas already categorized as "non-attainment," the boundaries will be expanded. For example, he said, the Atlanta region currently has 13 counties included in the non-attainment area. Under the new standard that will be expanded to 21.

    Designation as a non-attainment area triggers a host of requirements, he said, including the integration of transportation and air-quality planning, more frequent plan updates, congestion-management systems and other mandates. The designated areas must demonstrate that any proposed transportation projects "conform" to state air-quality plans. That may place severe constraints on the kind of transportation projects that can be advanced for federal approval.

    Shrouds advised that states should not wait until the final designations are made by the EPA, but should start working immediately with areas they know will be affected to prepare them for the conformity process.

    One other impact of the addition of 242 counties, as Shrouds noted, will be to spread Congestion Mitigation and Air Quality funds more thinly. In TEA-21, the CMAQ program was expanded from $6 billion to $8.1 billion over six years. However, there was no provision made to increase a state's share of the funding if new nonattainment areas were designated.

    Industry to Pursue Challenges

    While expressing regret at the Supreme Court ruling, several industry parties that had backed the suit indicated they would continue to wage their battle at the appeals-court level as EPA rewrites its implementation plan.

    Pete Ruane, President of the American Road and Transportation Builders Association, said "This decision makes it even more imperative for the Congress to reform the transportation conformity provisions of the Clean Air Act." Several members of Congress have also indicated they may introduce legislation to require EPA to consider a cost-benefit analysis in developing standards.

    Prospects for reauthorization of the Clean Air Act were also addressed at the Washington Briefing by Robert Myers, Counsel for the House Energy and Commerce Committee. Myers said in the near term, the Committee will focus on energy issues, and that reauthorization of the Clean Air Act would likely be a long and unpredictable process. Lessons learned form the last reauthorization in 1990, he said, were that cooperation between the Congress and the Administration is essential, and bipartisan support with the Congress would be needed to achieve enactment of a bill.

Secretary Mineta Addresses Aviation, Intermodal Transportation

    U.S. Department of Transportation Secretary Norman Mineta addressed the AASHTO Washington Briefing on Tuesday, saying U.S. DOT will become more deeply involved in decisions regarding airline mergers and vowing to do what he can to support a national system of passenger trains.

    Mineta also called for closure of "the gap between demand for transportation and the capacity of our transportation infrastructure" and increased emphasis on multimodal approaches to achieve that goal. Mineta told state transportation officials that while the nation's transportation system is operating at near capacity, travel demand is far exceeding that capacity. That gap is what is generating congestion on the nation's highways, bottlenecks in freight deliveries and delays in the airways, he said. Mineta added that "a high degree of local, regional and state involvement is needed to overcome resistance" to transportation projects. Mineta praised AASHTO Executive Director John Horsley "for his efforts to promote an intermodal approach."

    While stating that the record levels of investment made possible by the Transportation Efficiency Act for the 21st Century are helping to meet needs, it is time to look ahead at how to sustain that investment in the next reauthorization bill, he said. TEA-21 will expire on September 30, 2003.

    Regarding the role of U.S. DOT in analyzing airline mergers, Mineta said, "We think we can play a more active role in terms of our recommendations." Currently, he said, U.S. DOT supplies data to the Department of Justice but does not make in-depth analysis of it, or policy recommendations. This week, Senators John McCain (R-AZ) and Ernest Hollings (D-SC) introduced legislation to give U.S. DOT more authority in overseeing airline mergers.

    "We're going to be writing a scenario: here are the impacts," Mineta said, including the effect of mergers on passengers and on individual airports serving particular routes. The first such U.S. DOT review may be ready before the Justice Department rules on whether United Airlines should be allowed to purchase U S Airways; that ruling is expected in April. Two other potential mergers are also pending: American Airlines has offered to buy TWA, and Delta Airlines and Continental Airlines are reported to be in talks about merging.

    Addressing the shortage in airport capacity, he noted that the three entities responsible for the aviation system are "out of alignment" and that more coordination is needed between industry, state and local government, and the federal government. "All of us have to be part of the solution," he said. Specific approaches to helping solve aviation woes at the federal level, he said, include improved technology and expediting airport expansion reviews.

    In post-speech questions, Mineta also said he has quickly learned in his few weeks at U.S. DOT that "rail" is "a four-letter word," in the sense of it being a topic spurring high controversy. Asked whether he believed passenger-rail expansion could help ease highway congestion, Mineta said he admires and supports the efficiency of rail for moving both people and freight, and will support moves toward a broader national passenger rail system. "It is a very important alternative" but "the conflict of how to finance it is real."

    Carlson Urges Congressional Consultation

    Opening the three-day Washington Briefing, AASHTO President Dean Carlson noted that in a time of great change in Congress and the Administration, Mineta is a knowledgeable and trusted supporter for transportation.

    However, he noted that 30 percent of the members of Congress were not in office when TEA-21 was passed. He added, "President Bill Clinton, who signed the bill into law, is no longer President. Representative Bud Shuster, former Chairman of the House Transportation and Infrastructure Committee, one of the master architects of the funding guarantees, is in retirement."

    "We need to forge new alliances and enlist new champions," Carlson added. "We need to inform new members and staff that it is important to their states and districts to protect the TEA-21 legislation, and to forge ahead with the implementation of its streamlining provisions." The need to convince key decision-makers about the importance of transportation is one of the reasons that it is so important to lay the groundwork for the successor to TEA-21, he added.

Garvey Urges Streamlining for Airport Projects

    With new runways offering a 40 percent increase in capacity at busy airports, Federal Aviation Administrator Jane Garvey this week called for an environmental review process that is "predictable, certain and finite."

    Garvey told state transportation officials at AASHTO's Washington Briefing Tuesday that the nation's air system carries 40 percent of the world's air traffic, and that at any minute 70,000 people were traveling by air. She said the air system has an extraordinary record for safety. But she said that there is a critical need to expand the nation's airport capacity to accommodate expected growth.

    Garvey said that she would submit a report to Congress in April with FAA's recommendations for regulatory and statutory changes needed to expedite airport improvements. "How do we streamline the environmental process?" she said, "Not shortchange it, but expedite it." Garvey said "It may be possible to fold your issue [of environmental streamlining] into ours...it's not going to be easy, but we are eager to take that on." She also expressed appreciation to FHWA and to state transportation officials for the assistance they have given in this key area.

    Garvey also outlined a capacity benchmark initiative launched by the FAA, in which the nation's top 30 airports are being asked to determine their current capacity, their current demand, and the improvements being planned to accommodate that demand. She asked state transportation officials to work with airport authorities and their governors on the capacity issue and to "think of transportation in a more holistic fashion." She stressed the need for building a strong local and state consensus to advance airport projects.

    Issue Isn't Money

    David Plavin, President of the Airport Council International-North America, projected a growth rate of four to five percent per year in air travel, noting that within 10 years a billion people will be flying every year. One reason for the growth is a 40 percent decline in airfares in real dollars, he said. Plavin noted that 25 percent of the nation's airports account for 96 percent of delays, and a "finite and manageable" list of projects could help alleviate the delays. "We could do it with $3 billion," he said, "but it is not a money issue."

    Plavin said that currently the addition of a runway is "at best a 10-year project." Displaying a complex diagram of approvals, he alleged that the process is designed not to protect the environment, but to stop projects from moving. He conceded, however, that some airports will not be able to build more capacity, and in those cases demand management will be required.

Petri Stresses Need to Protect RABA

    Saying "It's time to build on our success rather than relax because of it," Rep. Thomas Petri (R-WI) urged state transportation officials to spread the word about the importance of the funding guarantees of TEA-21.

    Petri cited the historical track record of past highway and transit acts, in which authorizations were fully funded for the first or second years, but then "the commitment was eroded." He said that the firewall created in TEA-21 had restored trust to the Highway Trust Fund, and resulted in full funding for highways and transit since its enactment. He particularly noted the Revenue Aligned Budget Authority provision, which this year will provide some $4.5 billion to the states from revenue collected in the Highway Trust Fund in excess of authorizations. "This is not a surplus," he said, "this was a key to getting the legislation through Congress."

    Petri also stressed the importance of translating the increase in highway and transit funding into increased maintenance and preservation of the transportation system. "If money is lost in the pipeline, or the pipeline cannot accommodate the funding, that is unacceptable," he said. "We can't build on funding if we can't produce results at the end of the day." That is why Congress is concerned about the streamlining of environmental reviews of transportation projects. Petri said that while the Congress did write provisions so that "projects would not be endlessly delayed," it appeared that "reports are mixed" on their success. He asked that states provide examples of successes in streamlining, "so that we can learn from what has worked."

    Saying that a possible mid-term correction bill was "up in the air" Petri raised the possibility that a softening in the economy might create the climate for an economic-stimulus package. He urged states to identify possible major transportation projects that "could be done tomorrow if the President signed a bill today."

Transportation Likely to Bode Well in Appropriations, Staff Report


TEA-21 Streamlining Options May Include Issuance of No Rules at All

    In comments to AASHTO's Washington Briefing, FHWA Program Manager for Planning and Environment Cynthia Burbank said several approaches to proposed Transportation Equity Act for the 21st Century (TEA-21) environmental streamlining rules are available to the agency as the Bush Administration takes the reins -- including issuance of no rules at all.

    In an update on U.S. DOT proposed rules affecting planning, intelligent transportation systems and the National Environmental Policy Act, Burbank noted that only the ITS rules went out in final form during the Clinton Administration, and the effective date of those rules was delayed. The proposed planning rule was not finalized and the NEPA-related rules were simply deferred for action by the Bush Administration.

    Burbank said options include splitting the planning and NEPA rules into separate rulemakings and revisiting them; following AASHTO's earlier suggestion and starting the entire process over from scratch, or deferring rulemaking altogether on the topics and proceeding with work on TEA-21 reauthorization instead. FHWA already has sent out a memo reminding state DOTs that, even in the absence of rules, the more general guidelines for streamlining set out in TEA-21 itself remain in effect and should provide some direction, even without the detail formal rules would provide.

    Burbank said FHWA wants to keep an open door and communicate, as directly as possible, with affected parties -- but must keep in mind the constraints of the Administrative Procedures Act, which sets some limits on contacts between affected parties and people or agencies holding adjudicatory power over policy. "We are exploring, with our legal staff, how much we may be able to have some give-and-take," she said.

    Meanwhile, work continues to craft improvements to such construction-slowing mandates as historic-preservation rule 4(f). Burbank said that issue was explored positively in a recent meeting of FHWA staffers from the northeastern U.S. recently, with an eye to searching harder under current law for flexibility that could make compliance with 4(f) less time-consuming. Currently, compliance with it adds an average of two years to a highway environmental impact statement, and "it should not take that long," Burbank said.

    Lucy Garliauskas, of FHWA's Office of National Environmental Policy Act Facilitation, spoke about non-regulatory approaches to the environmental streamlining called for in TEA-21 and progress on them. The concept of streamlining has been around much longer than that law -- as long as three decades, in fact -- but has largely been discussed as a theory rather than practiced, Garliauskas said.

    Part of the reason for that is that many of the players have nothing in common other than having the public for their constituency, she said. This may be improved by building on existing flexibility, delegating authority for streamlining to the states, sharing best practices among the states, and getting some agreement from those involved about what is reasonable in terms of how long an environmental vetting process should take.

    FHWA is working to crystallize some of this thinking into an action plan that will offer such elements as draft dispute-resolution procedures, best practices, advancement of pilot projects, and time frames, she said.

Reauthorization Work Plans Outlined

    With current federal highway and transit authorization legislation expiring in September, 2003, AASHTO Vice President Brad Mallory outlined the association's comprehensive "game plan" for the reauthorization of TEA-21 at the Washington Briefing this week, along with other transportation associations that have ongoing efforts.

    Mallory chairs the AASHTO Reauthorization Steering Committee (    http://www.tea-21reauthorization.org/), made up of representatives of all the states, which will draft policy recommendations for consideration by the AASHTO Board of Directors next May. He detailed a comprehensive program of research, data collection and analysis, outreach and consensus-building, and policy development. "If we follow our plan, we will succeed," Mallory said.

    One of the key emphasis areas to be undertaken, he said, is the demonstration of the value of transportation to the economy and to the nation's quality of life. An entire "family" of products will be devoted to that, he said. Other initiatives include a "stewardship" report of the benefits of the funding from TEA-21, an analysis of the conditions and performance assessment of the nation's highways and transit systems, and a projection of future funding requirements.

    Panel Discusses Reauthorization Impacts

    A four-member panel of transportation leaders presented the impact of reauthorization on their respective industries. Bill Millar, president of the American Public Transportation Association, said that transit ridership has increased 20 percent in the last five years, while U.S. population has only grown five percent in five years. He noted that the investments in transit by state, local, and federal governments are "paying off."

    Millar said the keys to producing a reauthorization plan that all can support include developing a statement of national purpose, deciding how much funding is necessary and what is fair, and developing regulatory reform.

    Hal Kassoff of the American Consulting Engineers Council discussed issues under consideration by its Reauthorization Task Force. He broke down the reauthorization process into three categories: funding, programs, and streamlining. Kassoff noted the importance of preserving the highway trust fund and keeping the gasoline tax. He spoke of legitimizing the need for highway construction since it is critical in allowing traffic to run smoothly.

    Kassoff listed his keys to success in the reauthorization process as building and maintaining alliances between transportation associations, focusing on a few big themes, agreeing on allocation figures, and keeping on guard throughout the process.

    American Association of Port Authorities (AAPA) Senior Vice President Jean Godwin spoke of the need for funding in her industry, citing that trade volume will double by the year 2020. Godwin touched upon U.S. DOT's TEA-21 Conference Report that evaluated the condition of National Highway System (NHS) connections to major freight intermodal terminals. She listed some of the findings from the report, citing an unclear vision of intermodalism and the role NHS connectors serve.

    Freight programs are not being funded, she said, due to low priority in state and metropolitan planning organization plans, a lack of participation from the private sector, and environmental concerns. Alternatives might include establishment of a Transportation Infrastructure Finance and Innovation Act (TIFIA)-type program for freight connectors, expansion of the Railroad Rehabilitation and Improvement Financing Credit Program, and state-level credit programs or infrastructure funds for connectors, she said.

    Larry Naake, Executive Director of the National Association of Counties, wrapped up the discussion with his list of transportation-related priorities. He pointed out the need to preserve and expand bridge programs by rehabilitating and replacing, emphasize safety, increase transit funding, continue the welfare-to-work and job access programs, and strengthen the role of the planning process in urban and rural counties.

ARTBA Study Finds Dramatic Increase in Federal Road Funds for Mass Transit


Washington State, Oregon Recovering from Earthquake; Transportation Effects Moderate

    Officials in Washington state said Wednesday that millions of dollars invested in seismic stabilization of buildings and bridges paid off, when a magnitude-6.8 earthquake struck the Olympia-Seattle area, prompting extensive but only moderate damage and causing one heart-attack death.

    Though Seattle-Tacoma International Airport U.S. Highway 101 were closed several hours as authorities sought an alternative site for air-traffic control to the damaged SeaTac tower and ensured the safety of runways and continuity of road pavement, Washington's DOT said there were no reports of major bridge damage. According to the Associated Press, the state embarked on a retrofitting program in 1990 that strengthened more than 300 bridges against the effects of seismic activity, following the 1989 San Francisco quake that caused significant damage and fatalities.

    The greater Seattle area experienced a hellish, early-starting rush hour, however, as motorists jammed intact highways to check on their homes and found alternate routes to roads that were closed. Ferry service was delayed about two hours while crews ensured the safety of docks and terminal buildings.

    "We would look at the retrofit program as having paid for itself and shown a success," said Ed Henley, a bridge management engineer. Crews inspected bridges from Kalama in the south to Snohomish County in the northern part of the state, finding some cracking that can be shored up fairly quickly, engineer Harvey Coffman of the Washington DOT told the Seattle Post-Intelligencer. Permanent repairs may take months, but the cracking may be reparable for about $10 million, by Coffman's estimate.

    However, Seattle's Alaskan Way viaduct was closed; a 1995 study found that an earthquake of 7.5 on the Richter scale could destroy that bridge. Elsewhere in King County, inspection of the 40 most vital bridges led to the closure of just one, the Tolt Hill Road bridge near Carnation, the P-I reported.

    Wednesday's quake struck at 10:54 a.m. The SeaTac Airport closed immediately while crews fashioned a temporary control tower, after the quake shattered all but one of the windows in the regular tower and damaged six of eight structural supports in it. In the terminals, some ceiling tiles fell and a few light fixtures and flight status monitors crashed to the floor.

    The airfield servicing the Boeing Corp. fared worse, with damage to its runways and tower. One runway was reopened to small planes and helicopters, but greater access will not occur until all runways have been inspected and cleared for use, a spokeswoman told the P-I.

    In Oregon, though the quake was felt as far east as The Dalles and as far south as Coos Bay, AP reported, there was little significant damage. Some flights bound for Seattle were diverted to Portland, and Amtrak suspended train service between the two cities until track condition could be checked.

FHWA Seeks Office of International Programs Director


Focus Explores Bridge Foundation Design

    The February 2001 issue of the Focus newsletter highlights scour evaluations as a key practice in improving bridge foundation design.

    Focus is published by the Federal Highway Administration to report on innovative products and strategies for building better, safer roads. The February issue also offers information on the Innovative Bridge Research Program.

AASHTO Appointment

    President Dean Carlson has announced the following appointment to an AASHTO Committee:

    Illinois Department of Transportation Shop Plans and Steel Fabrication Chief John Edwards, appointed to the Joint AASHTO/AWS Bridge Welding Committee, representing Region III.



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