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Volume 101 Number 07
February 16, 2001
Executive Digest

Congress
Information
AASHTO
Details

Congress to Face High-Priced Transportation Challenges


Stiffer Project Oversight Needed

    The 40 percent increase in federal funding for highways and transit is a tempting target for fraud, and has increased the need for federal project oversight by the U.S. Department of Transportation, DOT Inspector General Ken Mead said this week.

    Testifying at a Senate appropriations hearing this week, Ken Mead noted that the recent influx of funding due to TEA-21 and AIR-21 is comparable to the beginning of building the Interstate system under the Eisenhower Administration. As a result, federal oversight to ensure that federal funding is being spent properly presents a major challenge to U.S. DOT.

    U.S. DOT needs to be particularly aware of fraud, Mead maintained. The inspector general's office has found that fraud is on the increase. "U.S. DOT needs to greatly improve its stewardship and oversight of transportation funding across all modes," he said. He added that the inspector general's office, AASHTO and the Federal Bureau of Investigation are currently involved in a major anti-fraud initiative.

    Mead pointed to particular challenges facing the Federal Transit Administration. In the course of a year the number of full-grant-agreement projects the agency oversees jumped from 15 to 28, with another 6 pending. Mead said that New Start projects in particular require intensive oversight, and given the fact that the money authorized in TEA-21 for new starts is already exhausted, FTA will have to work with Congress to address anticipated shortfalls in oversight funding.

Jackson Nominated as Deputy Secretary of DOT

    President George W. Bush has announced he will nominate Lockheed Martin Vice President Michael P. Jackson as the new Deputy Secretary of Transportation.

    Jackson is a familiar figure in the transportation community. Prior to his work at Lockheed Martin IMS, Transportation Systems and Services, he was a Senior Vice President and Counselor to the President at the American Trucking Association. He also served in various positions within the Executive Branch, including Chief of Staff at the Department of Transportation from 1992 to 1993. Jackson also served as a Special Assistant to the President and Executive Secretary for Cabinet Liaison under President George H. W. Bush.

    Jackson is a graduate of the University of Houston, and holds a doctorate degree in government from Georgetown University.

Aviation Funds Reportedly Restored to Budget

    The Bush Administration reportedly has agreed to restore some $568 million in aviation funding to its proposed FY 2002 budget proposal. Meanwhile, House and Senate Budget Committees hope budget resolutions ready by the end of March.

    In remarks during a U.S. Chamber of Commerce aviation summit on February 2, Secretary of Transportation Norman Mineta stated that the "passback" budget submitted by OMB to the Department of Transportation fell some $568 million short of the mandatory spending outlined in the Aviation Investment and Reform Act of the 21st Century (AIR-21). He urged the business community and transportation stakeholders to encourage the Administration and the Congress to fully fund aviation programs.

    Specifically, the initial OMB recommendation would have kept funding for the programs at FY 2001 levels, which would result in a $368 million shortfall for capital programs including the Airport Improvement Program (AIP) and facilities and equipment program. In addition funding or FAA operations would fall $200 million short of the authorized level. AIR-21 authorizes $4.1 billion for capital programs and $3 billion for operations for FY 2002.

    The Washington Post on February 16 reported that according to congressional sources, the Administration has agreed to restore the $568 million needed to fund authorizations.

    Budget May Be Held to Rate of Inflation

    The Bush administration and congressional budget and appropriations members this week indicated that they hope to stem the rate of increase in spending by raising discretionary spending by no more than the rate of inflation. Under such a scenario, overall discretionary spending would increase to $665 billion in FY 2002, compared to the $637 billion level last year. Some $343 billion of that would be for non-defense spending.

    Senate Budget Committee Chairman Pete Domenici (R-NM) remains confident that the budget can account for President Bush's tax cut and increased spending for defense and education. Domenici referred to some $15 billion in one time expenditures that were added in the omnibus appropriations bill last year for hundreds of member projects that will not have to be repeated this year. That $15 billion, along with the $23 billion increase in overall funding equal to inflation, should provide enough room within the budget for the president's priorities, he maintained.

    Congressional Democrats have warned that needed discretionary spending increases would likely exceed the rate of inflation in FY 2002. House and Senate Appropriations Ranking Members David Obey (D-WI) and Sen. Robert Byrd (D-WV) both cited transportation improvements as a justification for higher spending.

    Appropriations Hearings Scheduled

    Rep. Hal Rogers (R-KY), the new Chair of the House Transportation Appropriations Subcommittee, has tentatively scheduled two hearings to receive testimony on transportation spending for FY 2002. A hearing on Amtrak is scheduled on February 28 at 2:00 p.m., while members of Congress will provide testimony on March 7 at 10:00 a.m.

Implement TEA-21 Planning Provisions without Guidance, DOT Says

    With proposed regulations for implementing the planning requirements of TEA-21 possibly still months away, federal officials are advising states governments that they should comply with the requirements based on statutory language.

    The statewide and metropolitan planning regulations proposed by the Federal Highway Administration and the Federal Transit Administration are among the proposed rules that have been placed on hold by the Bush Administration pending further review.

    The regulations were unveiled in May and triggered an extensive review process within AASHTO in coordination with other government and transportation organizations. Of particular concern to the state transportation departments were the following issues:

    • failure to streamline the planning and project development processes;
    • lack of transition time for implementing the regulations;
    • new substantive requirements for NEPA;
    • redefined intergovernmental roles and responsibilities, the effect of which would be to erode existing state authority;
    • increased data and technical requirements;
    • regulations that extend beyond TEA-21's statutory language;
    • increased state legal exposure; and
    • missed opportunities for streamlining, clarification and additional flexibility


    During the review process, AASHTO President Dean Carlson said, "The proposed planning and environment regulations go one hundred and eighty degrees in the opposite direction from streamlining." In August, the AASHTO Board of Directors adopted a resolution urging that the rulemaking be extensively revised and subjected to a second public review. That position was again urged in December in a meeting between the Board and Federal Highway Administrator Ken Wykle. Members of Congress, including Senate Environment and Public Works committee Chairman Bob Smith (R-NH), have also urged that the proposed rules be rewritten and republished for review.

    In the waning days of the Clinton Administration, the U.S. DOT sent the planning rules forward to OMB on January 9, but held up the environmental regulations. However, OMB did not sign off on the rule prior to the January 20 inauguration of President Bush. A memorandum was issued that day by White House Chief of Staff Andrew Card directing that regulations currently under review by the Office of Management and Budget be halted pending review by the new administration. As a result, the planning and NEPA rules are currently on hold.

    DOT Memorandum Seeks "Basic Compliance"

    On February 2, Cindy Burbank, Program Manager for Environment and Planning at the FHWA, and Charlotte Adams, Associate Administrator for Planning at the FTA, issued a memorandum to division and regional administrators saying, "Although new planning regulations have not been issued, the requirements in TEA-21 are in effect." It adds that field personnel should be working with states, Metropolitan Planning Organizations and transit operators "to ensure a basic level of compliance with TEA-21 planning requirements, based on statutory language."

    The memorandum cites eight specific TEA-21 requirements, including:

    • annual listing of projects;
    • revenue estimates for plans and transportation improvement plans;
    • state consultation with local officials in non-metropolitan areas;
    • consultation with transit users and freight shippers and service providers;
    • major investment study integration;
    • federal planning finding for state transportation improvement plan approvals;
    • consolidation of planning factors; and
    • public involvement during certification reviews.


    The memorandum states, "Because of the uncertain status of the planning regulations, we are not providing written guidance at this time. However, we ask that you advise your state, MPO and transit partners that these statutory requirements are legally in effect since the enactment of TEA-21, and ask that you work with them to ensure basic compliance."

    Burbank said that the memorandum was prompted by a concern that in some cases states and MPOs are still awaiting the issuance of regulations before implementing the TEA-21 requirements, particularly in the areas of the annual listing of projects and revenue estimates. She said that the memorandum was intended to alert field staff that they should work with the states and MPOs to assist in executing the TEA-21 provisions.

    AASHTO Executive Director John Horsley said, "We had urged that the DOT limit its regulations to the provisions spelled out in the statute, and it would appear that this directive would do that. However, we are concerned that in the absence of consultation with the states and MPOs it may be implemented differently throughout the nation. We will work with the FHWA and FTA to try to improve communication and about how this notice can best be implemented. For example, discussion with FHWA during the joint meeting of our Planning and Environmental Committees on April 9-12 would be an opportunity for clarification."

House Approved Rail Accident Bill

    The House on Wednesday approved by a vote of 404-4 a bill that would put in place family support services for families of rail-accident victims, as is now provided for airline accidents.

    The bill, H.R. 554, would call for the National Transportation Safety Board to designate a director of family support services to act as an advocate with federal agencies. It also directs that the NTSB designate non-profit groups to provide counseling and coordination services for family members. The bill would also prohibit unsolicited contact by attorneys to victim's families for 45 days following an accident. Similar legislation was approved by the House in October, but was not reported out of committee in the Senate.

Regulations May Pose Environmental Test for Administration

    Pressure to roll back some of the last-minute regulations issued by the past administration, including diesel-fuel emission limits and wetlands dredging restrictions, may pose the first environmental tests for President Bush and EPA Administrator Christine Todd Whitman.

    Among the most controversial of dozens of rulemakings temporarily on hold or delayed is a regulation issued January 18 imposing new emission controls on diesel engines and in sulfur content of diesel fuels.

    The final rule, which is to take effect on March 19, calls for a 97 percent reduction in sulfur emissions and a 90-95 percent reduction in particulate and nitrogen oxide emissions, to become effective with model year 2007 trucks and buses.

    A suit was filed by the National Petrochemical and Refiners Association on February 2 to block the regulations. It charges that the EPA failed to consider the economic impacts of the rule.

    Meanwhile a group of environmental organizations held a press briefing in Washington this week to warn that they would sue the EPA if the agency delays the regulation beyond its March 19 effective date.

    Administration officials have given no indication of its intentions on the diesel rule, beyond the statement that all rulemakings were on hold subject to cabinet-level review.

    Dredging Rules Delayed

    Another regulation which has significant implications for state construction and maintenance activities is the rule made final January 17 regulating the discharge of dredged materials in wetlands. The rule was issued by EPA and the Army Corps of Engineers in response to a court ruling that had overturned EPA's regulation of certain ditching activities, the so-called Tulloch Rule. It had extended the definition of wetlands to require the issuance of a Section 404 permit for ditching activities.

    In response to the Card memorandum requesting a delay of implementation of all new regulations, the effective date of the rule has now been postponed until April 17, according to a notice published in the February 15 Federal Register.

Bill Requiring Use of Recycled Materials Introduced

    Two bills have been introduced in the House of Representatives regarding the use of recycled materials for federal-aid highway projects.

    The bills were introduced on February 8 by Rep. Robert Andrews (D-NJ), who introduced similar legislation in the last Congress. The first bill, H.R. 529, would give the Secretary of Transportation authority to issue regulations requiring the use of recycled materials in the construction of federal-aid highways.

    H.R. 530 mandates that 10 percent of a state's annual federal funding for highway projects be used for the purchase and use of recycled materials. Under the bill, the Secretary of Transportation is to issue regulations within 90 days of enactment.

    The American Road and Transportation Builders Association has noted that the U.S. transportation construction industry recycles pavement materials at a higher rate (80 percent) than aluminum cans (60 percent), newspapers (57 percent), plastic soft drink bottles (37 percent), glass beverage bottles (31 percent) and magazines (23 percent).

High-Speed Trains May Be Delayed

    Start-up construction funding for super-high-speed "maglev" or magnetic-levitation trains may be delayed by an order for U.S. DOT to tighten its discretionary spending budget and by questions raised about which corridors will be first in line for the funds, CQ Daily Monitor reports.

    The Bush Administration has ordered U.S. DOT to tighten up on discretionary funding for the coming year. Some $950 million aimed at the maglev train program under the Clinton Administration may not be fully available once mandatory highway and mass-transit funding is carried out as required by the Transportation Equity Act for the 21st Century (TEA-21), the Daily Monitor reported.

    Further, some western lawmakers are objecting to the selection of two eastern routes as finalists for the kickoff maglev work. Former U.S. DOT Secretary Rodney Slater named one route in Pittsburgh, Pennsylvania and another between Baltimore, Maryland and Washington, DC as finalists for the funds.

    In all seven routes were in contention, including western routes. Though former House Transportation and Infrastructure Committee Chairman Bud Shuster hailed from Pennsylvania, he retired earlier this year and Rep. Don Young (R-AK) replaced him in that powerful post.

    Young is siding with Rep. Shelley Berkley (D-NV) a member of the T&I committee, in asking U.S. DOT Secretary Norman Mineta to reconsider the finalists selected. One of the non-selected contenders was a Nevada-Anaheim, California route.

    "I'm upset and disappointed by the 11th-hour decision by the outgoing secretary," Young said. "Very frankly, the West Coast, with all of its heavy congestion, should have a chance to alleviate traffic with a high-speed train."

Environmental Interests File Suit Against Atlanta Regional Agency

    Environmental and civil-rights groups again have filed suit under the Clean Air Act to halt highway construction in the Atlanta area.

    Suit was filed on Tuesday against the Atlanta Regional Commission, the U.S. and Georgia Departments of Transportation, and officials of the groups, alleging failure to conform with the Clean Air Act in connection with the state air-quality plan, the Atlanta Journal-Constitution reported. The plaintiffs also allege that current plans would violate the Transportation Equity Act for the 21st Century (TEA-21).

    The 13 counties in the region missed a 1999 deadline for compliance with federal air-quality laws. Some $700 million in highway projects were halted and postponed for two years as a result of a court challenge by the environmental groups. However, the U.S. DOT approved the region's latest plan last July.

    In an attempt to stave off another court challenge the state and other transportation planning groups had been negotiating with the environmental organizations to allow projects to expand highway capacity to proceed. Negotiations over increased mass-transit and transportation options for low-income people and minorities broke down last month, and subsequently suit was filed alleging that the Atlanta region should be reclassified as a severe nonattainment area for ozone under the Clean Air Act. That suit is pending.

    Suing are the groups environmental Defense, the Sierra Club, the Southern Organizing Committee for Economic and Social Justice and the Georgia Coalition for the People's Agenda. The same groups filed the January suit against EPA.

Colorado Legislature Acts to Replace Bumped Highway Revenues From Reserve

    Colorado Gov. Bill Owens is set to receive a bill passed by the Colorado Legislature, which will use state reserve funds to replace most of the more than $200 million bumped from 10 major highway projects in November by a voter-approved referendum assigning extra funding to schools.

    Included on the highways list is a $93 million proposal to widen Interstate 25 and expand light rail along that corridor.

    The measure, which initially would have replaced the entire needed sum of $212 million, was amended to let the amount released from reserve float according to the level of incoming state revenues. A legislative economist last week delivered revenue projections about $64.5 million lower than those forecast a month earlier.

    However, Gov. Bill Owens has said he prefers to move funds away from unspecified state buildings projects rather than further delay the planned highway work.

    Tom Norton, executive director of the Colorado Department of Transportation, says the state should be able to keep to its 2001 highway construction schedule if the bill is signed into law. CDOT plans to go to the financial markets with a bond offering of $400 million - $500 million this spring to finance some of the work. Reduction of the department's earlier projected cashflow could have prevented the bonding from being done.

Inspector General Releases Final Report on Airline Customer Service

    A report on the major airlines' voluntary commitments to customer-service improvement was released by the U.S. Department of Transportation Office of Inspector General on Monday. The report concludes that some improvement has occurred, but more work needs to be done.

    The report, under way for about a year, was requested by Sen. John McCain, R-Arizona, who held a hearing on its findings later in the week. The report, the second of two analyses by the inspector general's office, looked at voluntary commitments made by airlines in the Air Transport Association, the members of which cover more than 95 percent of all air movements of people and cargo in the United States. ATA members are Alaska Airlines, Aloha Airlines, American Airlines, American Trans Air, America West Airlines, Continental Airlines, Delta Air Lines, Hawaiian Airlines, Midwest Express Airlines, Northwest Airlines, Southwest Airlines, Trans World Airlines, United Airlines, and U S Airways.

    "Overall, we found the airlines were making progress toward meeting their customer service commitment and that the commitment has been a plus for air travelers on a number of important fronts," OIG stated. However, "We continue to find significant shortfalls in reliable and timely communication with passengers by the airlines about flight delays and cancellations. Further, we find the airlines commitment does not directly address the most deep-seated, underlying cause of customer dissatisfaction B flight delays and cancellations, and what the airlines plan to do about them," OIG said.

    The agency's recommendations included establishing a uniform system for tracking delays and cancellations and their causes; developing "capacity benchmarks" for the top 30 airports in the country, to help gauge how much traffic each can reasonably handle at different times of day; and developing a strategic plan to address shortfalls in capacity B with short-term, intermediate, and long-term horizons.

    OIG also urged all airlines, not just ATA members, to adopt the service commitment; called for expansion of the resources of DOT's Aviation Consumer Protection division; and made specific recommendations including:

    • Making provisions of the airline customer service commitments enforceable through each airline's "contract of carriage" with its customers or through regulations, including provisions affecting passenger eligibility for lowest fares, holding or cancellation of reservations, accommodating passengers delayed overnight, and meeting customers' essential needs during long delays on board planes.
    • Adding a commitment by the airlines to set a quality-assurance and performance-measurement system and conducting internal audits to measure compliance with promises to customers.
    • Offering lowest fares available regardless of whether customers link to the airline via telephone or in person at a ticketing counter. OIG noted that its earlier recommendation that customers be advised of possible fare differentials available through the Internet has largely been followed.
    • Offering more information about delays, cancellations and on-time performance, and setting targets for reducing the number of chronically delayed or canceled flights.
    • Strengthening information and performance on handling of baggage.
    • Strengthening DOT enforcement when airlines fail to provide prompt ticket refunds.
    • Seeking more input from disabled and special-needs passengers about their requirements and issues.

La Guardia Airport Leads in Flight Delays

    An analysis by a federal agency shows that New York's La Guardia Airport is home to a significant proportion of the flights most likely to be delayed or canceled, the New York Times reported on Wednesday.

    The Times requested a special analysis by the U.S. DOT Office of Inspector General, which counted the number of months last year when flights either were delayed by more than an hour or canceled more than 40 percent of the days within a given month.

    While La Guardia, on several routes, accounted for 50 of the 100 most-delayed flights nationwide, the New York-Chicago route offered the most delay trouble, accounting for 19 of the 100 "most agita-inducing flights," as the Times put it. The San Francisco-Los Angeles route accounted for 16 of the 100, and Newark-Chicago ranked high with 13 of the 100.

    DOT Inspector General Kenneth M. Mead testified Tuesday that 10,300 U.S. flight routes were chronically delayed (by at least half an hour), or had flight cancellations at least 40 percent of the time during single months in the year 2000.

Secretary Mineta Announces National Child Passenger Safety Week



FHWA Seeks Applications for Senior Level Positions

    The Federal Highway Administration (FHWA) is recruiting for three Senior Executive Service vacancies.

    The positions are as follows:

    Director, Office of Safety Design

    The director of the Office of Safety Design provides national leadership for the administration of programs and the promotion of practices relating to the development and incorporation of road and roadside features that will improve highway safety performance by reducing the number and severity of highway crashes. He or she also provides guidance on safety performance goals, policies, and criteria for all public roads and bicycle/pedestrian facilities. The director serves as the focal point regarding highway safety program development, evaluation, and administration.

    The position closes February 20, 2001.

    Director, Office of Safety Program Integration and Delivery

    The Director of the Office of Safety Program Integration and Delivery provides national strategic direction for surface transportation programs administered by FHWA, ensures that safety policies and programs are integrated with other FHWA and U.S. Department of Transportation policies and initiatives, and manages and promotes a program to leverage technology and innovation in the support of the FHWA safety objective to reduce the number and severity of highway crashes. The director provides technical assistance to Congressional authorizing and appropriations committees in developing legislative recommendations and interpreting statutory provisions related to safety.

    The position closes February 20, 2001.

    Director, Office of International Programs

    The Director of the Office of International Programs is responsible for developing, implementing, and managing the agency's program of international scanning for new technology and innovation, international organizations, overseas missions for technical assistance, the international technology transfer program, and the international visitors program. The director works with AASHTO, the National Cooperative Highway Research Program, the Transportation Research Board, and FHWA offices to develop and deliver a bi-annual program for scanning team activities.

    The position closes March 5, 2001.

    For further information about these positions, contact Susan Wheelock in the FHWA Office of Human Resources at (202) 366-2596.

MacDonald Named DOT Secretary for Washington State

    Governor Gary Locke and the Transportation Commission on Thursday announced the appointment of Douglas MacDonald as Secretary of the Washington State Department of Transportation.

    MacDonald is currently the executive director of the Massachusetts Water Resources Authority, an agency that provides the regional water supply and sewer treatment services to the greater Boston area.

    In a Washington State DOT news release, Governor Locke said, "Doug has a solid and successful record of providing essential services that connect millions of people throughout many communities in a large region. Our challenges are huge, and Doug is the right individual to take them on with expertise, energy, and a constant focus on results."

    MacDonald succeeds Sid Morrison, who announced in June 2000 that he would retire in June 2001 after eight years with the department.

AASHTO Appointments

    President Dean Carlson has announced the following appointments to AASHTO committees:

    King W. Gee, Program Manager, FHWA Office of Infrastructure, appointed as Secretary of the Standing Committee on Highways.

    Fred Jones, FHWA National Quality Coordinator, appointed as the Secretary of the Standing Committee on Quality.

    James Cooper, Director, FHWA Office of Bridge Technology, appointed as Secretary of the Subcommittee on Bridges and Structures.



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