The rescission of FY 2002 contract authority, which has already been apportioned and distributed to the states by the Federal Highway Administration, began as a cut of $200 million, as part of an effort to offset the additional spending included in the supplemental appropriations bill. The size of the rescission grew to $320 million as the Senate sought to provide additional emergency relief funding to address the impacts of the collapse of the I-40 bridge in Oklahoma, and for other disasters.

Although Senator James Jeffords (I-VT) attempted to block the rescission on the Senate floor with an amendment, the bill was passed with the rescission in place.

In the letter to Byrd, which was also distributed to the other Senate conferees, Horsley said that states were "alarmed" about the proposed cut in apportioned contract authority. He said, "The rescission will take back contract authority, which the states are likely counting on in the development of their long-range transportation plans and financing strategies. This is troubling news, which comes at a time when the states are confronting a reduction of several billion dollars in their programs for Fiscal Year 2003 as a result of the RABA calculation. This proposed action would contribute additional financial uncertainty just as states are trying to adjust their programs to the substantial program reduction they will face in just a few months."

The letter also terms the administration of the rescission problematic. "While there is no language in the bill on the method of distributing the reduction, we assume it would likely be distributed proportionately to the states and to program categories. However, the amount of unused contract authority varies widely from state to state and among categories within each state."

To win support of House appropriators for the RABA restoration, leaders of the House Transportation and Infrastructure Committee agreed to accept a provision in the supplemental that would allow funding of 49 earmarks totaling more than $120 million. These projects had been included in the Transportation Equity Act for the 21st Century (TEA-21) but were determined by the Department of Transportation to be "statutorily ineligible" for federal funds. No such projects are included in the Senate bill, and it remains to be seen what position Senate conferees will take.

To win support of House appropriators for the RABA restoration, leaders of the House Transportation and Infrastructure Committee agreed to accept a provision in the supplemental that would allow funding of 49 earmarks totaling more than $120 million. These projects had been included in the Transportation Equity Act for the 21st Century (TEA-21) but were determined by the Department of Transportation to be "statutorily ineligible" for federal funds. No such projects are included in the Senate bill, and it remains to be seen what position Senate conferees will take.

In a letter to Mineta on June 11, Senator James Jeffords, Chairman of the Senate Environment and Public Works Committee, Senator Bob Smith, Ranking Minority Member of that committee, and Senator Max Baucus, Chairman of the Senate Finance Committee, and Senator Chuck Grassley, Ranking Minority Member of that committee, urged "timely research on ways to leverage limited federal resources through so-called innovative finance techniques would benefit both the Administration and the Congress as we develop TEA-21 reauthorization proposals."

The letter further urges exploration of "several new topics related to transportation finance, such as using a centralized entity to fund loans and provide credit enhancement, and the use of tax-credit bonds as a financing vehicle for transportation infrastructure."

AASHTO recently briefed Congressional committees in both the House and Senate on its concept of a federally chartered Transportation Finance Corporation, through which federal funding could be leveraged through the issuance of bonds for distribution to the states. Many good questions were asked, and in general the discussions were positive.

The senators asked for "any preliminary analyses and findings that could be produced within the next few months," noting that "sharing of such information while Congress is debating significant funding and programmatic issues would certainly aid our TEA-21 reauthorization deliberations." They concluded, "We hope that together with the transportation community and the Administration, we can find a way to increase infrastructure investments through a financing mechanism that leverages existing governmental and private sector resources."

GAO based its study on an exhaustive written survey that received responses from all 50 states, plus the District of Columbia and Puerto Rico - AASHTO's main membership base. Its staff also visited the states of Arizona, Florida, Missouri, North Dakota, and Pennsylvania. (For details on state recommendations for addressing interstate congestion, see the sidebar below.)

In addition to the findings on condition and congestion, GAO determined that the interstate highway system is increasingly important for the movement of freight; that interstates and their associated bridges are aging to a point where refurbishment will be increasingly necessary; and that the interstate system remains the safest of the U.S. highway types, in part because of design factors originally prescribed for it by AASHTO.

"Over the past decade, the physical condition of the Interstate Highway System has improved; the safety of the system has stayed steady; and congestion has increased," GAO wrote in its report, numbered GAO-02-571 and released May 31.

Though most states surveyed said they believed conditions on the interstate system would continue to be generally good, a few told GAO that system aging and budgetary pressures may make it difficult to maintain the system in top form indefinitely.

The Federal Highway Administration and nearly all the states "expect the volume of both car and truck traffic to increase over the next 10 years, and most states reported that the expected increase in traffic would negatively affect the physical condition of pavement and bridges, safety, and levels of congestion on their Interstates," GAO wrote.

"In addition, states expect the continued aging of the Interstates to have a negative effect on the conditions of their pavement and bridges," GAO stated. "Transportation officials we spoke with were also concerned that large, expensive projects might restrict the availability of funds for maintaining the rest of their systems."

The survey also revealed that state transportation officials regard the interstate highway system as crucial not only for safe movement of citizens and military people and materiel - the original stated purposes for its construction - but also for freight transport, economic development, getting people to airports, and urban mobility.

In a study of the interstate highway system released this week by the General Accounting Office, 41 of 50 states indicated that adding lanes to increase capacity is "very useful or moderately useful" to solve congestion problems. Only 12 states found that providing alternate transportation modes such as buses, rail and ferries to be useful.

The GAO study posed a number of questions to state DOTs on their views on the future of the interstate system. No less than 24 states rated the level of congestion on their urban interstates as high to very high, with 41 projecting that those conditions would exist 10 years from now. While only one characterized congestion on its rural interstates as high, 18 project that congestion will be high, or very high, in another decade.

Prospects for progress appeared dim to most states, with 48 predicting they would only stay even or fall behind with congestion on rural interstates, given expected levels of funding, and 49 states predicting the same lack of progress on urban interstates.

The GAO report notes that congestion on the interstate system has increased, with the time required for an average trip increasing by 12 percent over the last decade. While interstate lane-miles have increased by only six percent, travel nationwide has increased by 39 percent and ton-miles of freight have increased by 40 percent.

From 1992 to 2000, states invested $48.5 billion in federal aid for interstate highway projects, with 68 percent spent on urban interstates and 34 percent on rural interstates.

The GAO posed questions to states about the benefit of six approaches to congestion relief. Noting that the usefulness of each tool will vary because of variations in population density, the report found the following in regard to methods termed "moderately or very useful"

• Capacity additions - 44 states
• Redesign of problem highway sections - 34 states
• Traffic incident-management tools - 36 states
• Advanced technology - 42 states
• Alternate transportation modes - 12 states
• Driver incentives, such as HOV lanes and varying tolls - 15 states

A look at the 26,796 miles of multi-year federal-aid roadway projects initiated since 1996 shows that 83 percent preserve the current system, while only 17 percent add any capacity through such steps as new lanes or lane widening.

"It's little wonder congestion is increasing nationwide," said John Horsley, Executive Director of AASHTO. "States have not been able to invest enough in new capacity to keep up with traffic growth. Our population grew by 31 million people since 1990, and the miles traveled on our highways grew 30 percent - from 2.15 trillion to 2.75 trillion. At the same time our highway system grew by only 1.8 percent."

"It will require more resources to meet both preservation and new capacity needs - and it takes too long to get these projects through the approval process. We hope to address this during Congressional reauthorization of the Transportation Equity Act for the 21st Century next year," Horsley said.

"Surveys show Americans want congestion relief," Horsley said. "And state transportation departments are tackling the problem in many ways. These include new construction where practicable, technology to increase system performance and reliability, and support for more transit, where that makes sense."

Census data released earlier this month also indicate that on average, commuters spent an extra six minutes per day traveling to and from work in 2000, compared with times recorded in the 1990 census. Stated in terms of individuals' time, this increased commuting duration means Americans are adding more than one full, 24-hour day a year to commutes that absorb nearly nine days a year, taken altogether, for the average working person.

Nationwide mean commute times in 1980 averaged 21.7 minutes, in 1990, 22.4 minutes, and in 2000, 25.5 minutes.

"A variety of transportation options are needed," Horsley said. "But with more than 90 percent of U.S. travel being done by private vehicle, we have to recognize the demand for new capacity, and find a way to meet it."

Federal-aid funding comprises only one-fifth of the total highway funding spent annually by all levels of government.

Witnesses appearing at the hearing Thursday included Detroit Mayor Kwame Kilpatrick; Boise, Idaho Mayor H. Brent Coles, and Dallas County, Texas Commissioner Kenneth Mayfield president-elect of the National Association of Counties, and U.S. Rep.Carolyn Kilpatrick (D-MI).

The focus of the hearing was on the impact of TEA-21 on local governments. The witnesses spoke of growing need for transit funding, the flexibility of funding options, security issues, and the role of transportation to their economies. Congresswoman Kilpatrick urged the committee to support the higher funding levels being proposed for TEA-21 in the Senate version of the supplemental appropriations bill, as the bill goes to conference.

Mayor Kilpatrick cited the key role that public transportation has played in economic growth and revitalization of Detroit, and urged that the next reauthorization continue the funding practices of TEA-21. He said Detroit's Downtown People Mover and bus system benefitted greatly from TEA-21, but that both systems now are in dire need of increased funding. The Downtown People Mover require significant repairs and upgrades if it is to remain a key public transit circulator, he said, while the buses need maintenance and the bus system has need of heavy-repair garages, at a cost of up to $120 million. The Detroit mayor agreed with the recommendation of the American Public Transit Association that the federal transit program should grow to $14 billion, with additional funds for security programs.

Mayor Coles told of TEA-21's role in a quickly-growing city just beginning to use transit options. Boise has had the second-highest growth rate in the nation over the past decade, Coles said, which sparked transit demand. Coles praised the funding flexibility in TEA-21, terming the law essentially sound and worthy of preservation. But he urged that the Senate to streamline the funding process.

Mayfield addressed the use of funds from TEA-21 and its predecessor act, ISTEA, as spurs for development. Dallas County enacted a 1 percent sales tax to supplement TEA-21 funds, he said. The combination created the Dallas Area Rapid Transit (DART) system, which in turn allowed Dallas County to attract new investment along the DART corridor, Mayfield said.

The pipeline safety bill (H.R. 3609) was reported out by the Transportation and Infrastructure Committee on May 23, and referred to the Energy and Commerce Committee, where it was reported out by voice vote on Tuesday. However, the CQ Daily Monitor on June 12 reported that amendments made to the bill by the Energy panel must be cleared with the Transportation and Infrastructure Committee before the bill is brought to the House floor.

Among other provisions, the bill would require the Department of Transportation to develop criteria for inspection of natural gas pipelines, and set a schedule for inspections at least every seven years. It would also require that the U.S. DOT establish qualifications for pipeline workers, which are to be implemented within two years. Either state authorities or the U.S. DOT would be responsible for certifying worker qualifications. Currently, federal oversight of pipeline safety resides in the U.S. Department of Transportation, within the Research and Special Programs Administration.

The Energy Committee's version of the bill would allow the preemption of federal, state and local environmental laws for issuance of pipeline repair permits.

AASHTO Highway Transport Subcommittee Addresses Commercial-Vehicle Issues

Commercial-vehicle issues including security, safety, rest areas, use of intelligent transportation systems and truck size and weight were addressed by AASHTO's Subcommittee on Highway Transport in a meeting June 10 and 11.

Clyde Woodle, Senior Minority Staff Director of the Highways and Transit Subcommittee of the House Committee on Transportation and Infrastructure, described the status of pending legislation and provided some perspective on the prospects for TEA-21 reauthorization. Woodle noted that Congressman James Oberstar (D-MN) remains strongly opposed to increasing the federal limits on truck size and weight.

Julie Cirillo, Assistant Administrator of the Federal Motor Carrier Safety Administration, reviewed FMCSA's security and safety activities. She said regulations will be issued soon to implement Patriot Act provisions on security clearances for drivers seeking hazmat endorsement on commercial driver's licenses.

AASHTO Executive Director John Horsley spoke on AASHTO's reauthorization policy and strategy and outlined the freight transportation policy recommendations approved by AASHTO's Board of Directors at its Spring Meeting in Pennsylvania.

An overview of the recently released TRB report, Regulation of Weights, Lengths and Widths of Commercial Motor Vehicles, was presented by Joe Morris, who directed the study.

The report recommends the creation of a Commercial Traffic Effects Institute, which would be chartered to evaluate commercial motor-vehicle performance and the effects of size and weight regulations. The institute would conduct pilot studies and recommend regulatory changes to Congress and U.S. DOT.

Holly Stearns, Senior Policy Analyst with the Coalition Against Bigger Trucks, criticized the TRB report, noting her group has found no new research was conducted for the study and terming its findings "one-sided." A trucking industry panel, however, expressed support for the TRB report and the general objective of allowing "more productive trucks." Members of the trucking panel also discussed TEA-21 reauthorization, congestion, capacity, planning and international trade.

His remarks came in a speech delivered at the Commuter Rail/Rail Transit Conference of the American Public Transit Association in Baltimore on Tuesday.

Gunn, who previously directed transit systems in Toronto, Washington DC, New York and Pennsylvania, said failure to focus on "the basic economics of our industry" has led elected officials to view rail operations as "bottomless pits."

He termed the financial self-sufficiency requirement of the 1997 Amtrak Reform Act "nonsense," adding, "unfortunately, Amtrak tried to achieve it." Some recommendations of the congressionally created Amtrak Reform Council, which earlier this year called for a radical restructuring of the governance and operation of intercity passenger rail, were "really good." But but Gunn said he disagrees "totally" with the idea that Amtrak could be privatized successfully. He described that proposal as "loony."

Gunn was upbeat about Amtrak's core capabilities and what can be accomplished. "We can turn it back into a pretty decent operation, and it is not that bad today."