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Volume 101 Number 25
June 22, 2001
Executive Digest

Congress
Information
Details

Mary Peters, CEO in Arizona, Said to be Nominee for FHWA Administrator

    Arizona Department of Transportation Director, Mary Peters who chairs AASHTO's Standing Committee on Planning and its Asset Management Task Force may soon be nominated by President Bush for Federal Highway Administrator, sources told the AASHTO Journal.

    If confirmed by the Senate, Peters, who has been with the Arizona department for 15 years, would head the largest operating administration within the U.S. Department of Transportation, with a budget of more than $30 billion. Peters, who holds a degree in management, also is active in AASHTO's Western regional group, the Western Association of State Highway and Transportation Officials or WASHTO; in the National Partnership for Highway Quality, and is on the board of the Intelligent Transportation Society of America.

    The search for an FHWA administrator has been under way for months. In the interim, FHWA has been managed by Deputy Executive Director Vincent Schimmoller. U.S. Secretary of Transportation Norman Y. Mineta has indicated he seeks an FHWA administrator with strong management experience, in part to respond to criticism of FHWA's oversight of the cost-overrun Boston Central Artery project during the Clinton Administration.

    In other Bush Administration nominee news, Jennifer L. Dorn, who has been nominated for Administrator of the Federal Transit Administration, was warmly received Thursday by members of the Senate Banking, Housing and Urban Affairs Committee. A vote by the panel on the nomination, however, will have to wait until Senate Democrats and Republicans resolve their housekeeping differences following the recent status change of the Democrats from minority to majority.

    Dorn worked in U.S. DOT between 1983 and 1987, holding positions including director of the Office of Commercial Space Transportation and associate deputy secretary. She has also served as assistant secretary of the Department of Labor, as senior vice president of the American Red Cross, and currently is president of the National Health Museum. She has close ties to Elizabeth Dole, former U.S. DOT secretary.

Committee Clears Transportation Spending Bill

    The House of Representatives is expected to vote next week on a $59.1 billion FY 2002 transportation spending bill reported by the Transportation Appropriations Committee on Wednesday.

    Increasing overall funding for transportation by 2 percent over FY 2001's level, the FY 2002 spending bill fully funds the authorized levels for highways, transit and aviation. However, during Wednesday's markup by the full Committee, members complained that the funding guarantees under TEA21 and AIR21 left little flexibility for appropriators to shift funding from one program to another.

    The June 21 CQ Daily Monitor reports that in lamenting the funding guarantees, Transportation Appropriations Subcommittee Chairman Harold Rogers (RKY) told his colleagues "Some of you voted for TEA21, yes you did. In 2003, you'll have an opportunity to vote on TEA21 reauthorization."

    Given the tight funding limits set in the FY 2002 budget resolution, appropriators curtailed discretionary spending from $16.5 billion in FY 2001 to $14.9 billion. While less funding is provided for projects, most of the available discretionary spending under TEA21 and AIR21 was earmarked by the Committee (see below).

    The earmarking in the transportation spending bill has reportedly drawn the ire of the Administration and the House Transportation and Infrastructure Committee. The June 22 CQ Daily Monitor reports that a letter from Chairman Don Young (R-AK) and Ranking Member James Oberstar (D-MN) to appropriators indicate that they will seek a point of order against the bill unless their concerns are addressed.

    A letter from the Office of Management and Budget states "the Administration is very concerned about the level of earmarking in this bill." It cites some $1.6 billion in project for more than 900 projects. OMB states that the earmarking exceeds the FY 2001 spending bill by $300 million and 300 projects.

    In keeping with the guarantees under the Transportation Equity Act for the 21st Century, spending for highways equals $32.7 billion, with the obligation limitation set at $31.7 billion, while transit funding amounts to $6.7 billion. The aviation program is funded at $13.3 billion, which is consistent with the Aviation Improvement and Reform Act, with $3.3 billion provided for airport improvements.

    The Committee followed the funding totals for specific transportation programs as approved by the Transportation Appropriations Subcommittee last week, which are contained in the June 15 AASHTO Journal.

    Earmarks

    Appropriators provided funding for hundreds of transportation projects, thereby accounting for most of the discretionary funding available. Normally the funding would be allocated by the Department of Transportation based on applications from project sponsors.

    Some $440 million in funding is identified for specific highway and bridge projects under certain FHWA programs, including in part: 70 intelligent transportation system deployment projects; 43 interstate maintenance discretionary projects; 25 bridge projects; 43 federal lands projects; 61 national corridor planning and border infrastructure program projects; and 56 transportation and community and system preservation program projects.

    Discretionary funding is also earmarked for specific transit projects. While hundreds of transit project requests were submitted to the Subcommittee, only those that had received prior approval by the Federal Transit Administration will receive funding. Some $1.16 billion is earmarked for 52 full federal funding grant agreement projects. Language is also included that expresses the Committee's support for projects that have no greater than a 60 percent federal share.

    The Committee rejected proposals by the Administration to "formularize" the distribution of funding for bus and bus facilities and the job access and reverse commute program, and instead divvied up funding under the programs for specific projects.

    Of the $3.3 billion in Airport Improvement Program (AIP) funding, the report language notes that $1.273 billion in discretionary AIP funding is available in FY 2002, $77.5 million more than FY 2001. The Committee recommends that priority consideration be given to more than 160 listed airports.

    RABA for Border Projects Approved

    The Committee's bill includes $4.5 billion in revenue aligned budget authority (RABA), a 50 percent increase over FY 2001's $3 billion level. The Committee rejected a proposal by the Administration to use $145 million in RABA funding for a "New Freedom" initiative intended to provide transportation services to disabled persons.

    Members did approve the Administration's request to use $56 billion in RABA funding for infrastructure and station improvements along the Mexican border.

    Amendments Passed in Markup

    Missing from the bill is language that would freeze the current corporate average fuel economy (CAFE) standard. The controversial provision had been included in the transportation spending bill for years, but was omitted from this year's House version. Automotive manufacturers, who have been strong proponents of the freeze, indicate that they are waiting for the results of a study to be released by the National Academy of Sciences next month on the possible benefits of increasing the current CAFE standard.

    The issue has become a growing political hot button given the recent debates over energy supply and demand. The Administration's energy proposal does not address the standard, although Secretary of Transportation Norman Mineta told a House subcommittee earlier this year that the Administration was open to considering raising the standard. The Washington Post reports that the Administration is leaning towards increasing the CAFE standard for SUVs and light trucks.

    Two amendments generated considerable debate during the Wednesday markup. Rep. Martin Sabo (D-MN), Ranking Member of the Transportation Appropriations Subcommittee, offered an amendment that would require trucks from Mexico to meet Federal Motor Carrier Safety Administration standards if they travel beyond 20 miles from the border. Members instead adopted a substitute offered by Rogers that would require safety audits 18 months after operation within the U.S.

    Members also passed an amendment that requires the Washington Metropolitan Area Transit Authority to revise their system signs and maps to indicate the designation of the Ronald Reagan Washington National Airport.


FHWA Encouraged to Move Forward with a Portion of Planning Regs

    Report language went into the House version of the transportation appropriations bill, calling on the Federal Highway Administration to proceed with a portion of proposed regulations concerning consultation with rural officials in statewide transportation planning processes.

    The Washington Letter on Transportation reported that during consideration of the spending bill by the Transportation Appropriations Subcommittee last week, Rep. Jo Ann Emerson (R-MO) noted that the Federal Highway Administration had yet to forward that portion of a notice of proposed rulemaking, issued last May.

    Emerson introduced, and then withdrew, an amendment to prevent FHWA from taking any further regulatory action unless it moved on that portion of the NPRM. During markup by the full Committee on Wednesday, Emerson inserted language encouraging FHWA to proceed with the rural consultation portion.

    AASHTO sent a letter to members of the Appropriations Committee this week, encouraging them to oppose incorporation of state and local consultation procedures into the FY 2002 spending bill. The letter notes AASHTO's concerns, raised in comments to the docket, about the rural consultation portion of the NPRMs.

    In those comments, AASHTO indicated that TEA21 preserves individual state discretion with regard to the process for consultation with local officials. Each state has established its own process for working with local officials based on unique geographic, political, and demographic considerations. A one-size-fits-all approach for the entire country would be counterproductive and controversial. Moreover, TEA21 specifically directs that federal agencies shall not approve nor disapprove a state's individual methods for consultation with nonmetropolitan local officials.

    The letter also notes AASHTO's support for waiting to address the issue until after the reauthorization of TEA21, as outlined in policy resolution PR301 Support for Deferring Regulations on Planning and NEPA. The Board of Directors passed the resolution on May 20, 2001.

Supplemental Spending Bill Passes House

    The House of Representatives on Wednesday cleared an FY 2001 supplemental spending bill that provides $6.5 billion in additional spending for defense and other programs.

    A total of $2.2 billion in supplemental spending was approved for nondefense programs, which in part includes $389 million for disaster relief and $92 million to address Coast Guard operational costs. Some $473 million in emergency spending for flood relief was also included, despite opposition raised by the Administration. With the emergency designation budget offsets are not required.

    A total of $1.46 billion in offsets are identified to help reduce the cost of the supplemental, including $30 million in unobligated airport improvement program funds for FY 2001. The House rejected a proposal by the Administration to rescind $93 million designated in FY 2001 for highway improvements to I49 in Arkansas.

    The House also rejected a proposal to impose a .33 percent across-the-board cut in FY 2001 funding for nondefense programs as an offset for additional funding proposed for the Federal Emergency Management Agency.

    Although no formal organization plan has been endorsed, the Senate Appropriations Committee met on Thursday and approved an almost identical bill.

Legislation Would Let Airlines Compare Notes on Scheduling Without Antitrust Worries

    On a voice vote, the House Judiciary Committee on Wednesday became the second House panel to give approval to legislation that would let airlines compare notes on scheduling in the interest of preventing flight delays. Currently, antitrust laws block such activities.

    The bill, H.R. 1407, would require such talks among airlines to be public. Airline officials would continue to be barred from discussing fares, inflight services or routes. The House Transportation and Infrastructure Committee had approved the bill, also on a voice vote, on May 17.

    Judiciary Committee Chairman F. James Sensenbrenner Jr. of Wisconsin offered amendments all adopted by the panel to require the attorney general to participate in such talks; to require the unanimous consent of all airlines participating in such talks to any scheduling changes; and to set an expiration date of October 26, 2004 for agreements arising out of the talks. Sensenbrenner also won an amendment to block off further agreements after October 26, 2003.

State Budgets Tightening; Midwest, Southeast Most Strongly Affected

    The biannual "Fiscal Survey of States" by the National Governors Association (NGA) and the National Association of State Budget Officers (NASBO) was released this week, showing a tightening of state budgets due to rising healthcare costs, a slowing national economy and declining revenues.

    "What the latest data illustrate is that governors and legislators are being prudent as state coffers are squeezed by slowing revenue growth and increasing healthcare costs," said Scott Pattison, executive director of NASBO.

    "While the effects are being felt around the country, states facing the most serious challenges are in the Southeast and Midwest, which depend on manufacturing and rely heavily on sales taxes for revenue," said Raymond C. Sheppach, executive director of the NGA.

    On the spending side, overall general fund spending is estimated to increase by 8.2 percent for fiscal 2001, then grow at only 3.4 percent in fiscal 2002, the smallest increase in state generalfund spending since 1993. Elementary and secondary education continue to be the highest spending category in the states, with Medicaid outlays in second place.

    As for revenue, governors' proposed changes in taxes and fees would cut fiscal 2002 revenues -- mostly in the area of personal income tax -- by $677 million, following a drop of $5.8 billion in fiscal 2001. The proposed tax decreases would be the smallest since states began cutting taxes in 1994. However, states must brace for the side effects of federal tax cuts, as states face total revenue loss over the next decade estimated at $50 billion to $100 billion.

    Year-end balances for fiscal 2002 total $28 billion, or 6 percent of expenditures. The balances, though still deemed healthy, are about half the sum available in fiscal 2000, the groups said.

Runway NearCollisions Occur Nearly Once a Week: FAA

    Federal Aviation Administration officials have found that a "significant" risk of collisions among airplanes engaged in ground travel occurs about once a week, USA Today reported Thursday.

    Though the tooclose travel of planes and other groundbased vehicles and people, known as "runway incursions," usually poses little threat of an outright crash, FAA counted 1,369 incidents between 1997 and 2000 in which an aircraft could have actually collided with another plane or object while not in the air. It was FAA's first attempt to assess the risk such incursions pose.

    FAA characterized the runway incidents as rare, saying there are about five for every 1 million takeoffs and landings. Still, Bill Davis, FAA's director of runway safety, said "We need to redouble our efforts" to prevent such incursions. He said the evidence suggests complex airports with numerous runways that cross or intersect tend to have greater problems with incursions.

    Though there are programs in place to help aircraft avoid people, vehicles and other craft on runways and other ground zones nearer the terminal, FAA reported that incidents it deems serious rose from 60 in 1997 to 68 in the year 2000. These "serious" incidents appear to be about evenly divided between those involving a large jet and those involving smaller planes such as commuter or corporate craft.

AASHTO Environmental Streamlining and Stewardship Programs Move Ahead


AASHTO Focuses on 21st Century Operations

    Operations or transportation systems management will be a major focus area for all transportation agencies in the years to come, requiring coordinated efforts of transportation professionals from many disciplines, partnerships with the enforcement and emergency response community and a new focus on customer service.

    Those were some of the conclusions reached at an AASHTO workshop June 1415, which brought together 40 transportation leaders and professionals define an operations focused transportation agency of the 21st Century and discuss what actions AASHTO should take to lead this effort.

    AASHTO President E. Dean Carlson, Secretary of the Kansas Department of Transportation, convened the conference with Minnesota Commissioner of Transportation Elwyn Tinklenberg, the Operations Initiative leader and chair of AASHTO's Highway Subcommittee on Advanced Transportation Systems. Attending the workshop held in Overland Park, Kansas were chief executive officers and professionals from 14 states, several of AASHTO's committee chairs, and representatives from ITS America, the Transportation Research Board, the Institute of Transportation Engineers, the American Public Works Association, the National Association of County Engineers and the Federal Highway Administration.

    The goals of the Retreat and Operations Initiative were to define the characteristics of a 21st Century Transportation Agency, prepare AASHTO for participation in the National Dialogue on Operations to be held this fall, and propose actions necessary for AASHTO to assume a leadership position in Operations. President Carlson had designated Operations as one of AASHTO's major emphasis areas during his term as president.

    AASHTO Executive Director John Horsley said significant agreement was reached by participants in a variety of areas. The group reviewed the activities of several state leaders in operations and defined characteristics that will be different about a systems management organization from that of today's DOT.

    In addition, the group developed the framework for input and participation at the National Operations Dialogue Summit to be held in October and recommendations for discussion with the AASHTO Reauthorization Task Force. The group also developed a series of activities and recommendations for possible consideration by the Board of Directors at the AASHTO Annual Meeting in Fort Worth, November 29 - December 4.

National Forum Explores MultiState and Jurisdictional Transportation Issues

    Transportation leaders this week gathered in Arlington, Virginia to discuss the challenges with multistate/jurisdictional transportation issues at a national forum sponsored by the I95 Corridor Coalition, the Transportation Research Board, the Federal Highway Administration, and AASHTO.

    Discussion at the forum was based on the white paper "Challenges with MultiState/Jurisdictional Transportation Issues" from FHWA's Office of Freight Management and Operations and Office of Intermodal and Statewide Programs. The white paper is a compilation of seven different case studies regarding multistate/jurisdictional alliances, including the I-95 Corridor Coalition, the International Mobility and Trade Corridor Project, and the Midwest Regional Rail Initiative.

    Dr. Christine Johnson, director of FHWA's Operations Core Business Unit, spoke about future challenges to the formation of these coalitions, stating that coalitions must be intermodal and overcome funding issues between modes, as well as between the public and private sectors. She also emphasized that in order to bring the private sector to the table, coalitions must engage the private sector in the decisionmaking process.

    A panel of coalition and freight leaders moderated by Harry Harris, Rail Administrator for the Connecticut Department of Transportation discussed observations of the white paper's case studies. Forum participants shared personal experiences about what works and what doesn't in existing multistate/jurisdictional coordination efforts, and explored future options.

    Information gathered at the National Forum on Challenges with MultiState/Jurisdictional Transportation Issues will be forwarded to executive and legislative decisionmakers. It will address policy options and assess the "state of practice" of interjurisdictional and interagency cooperation for transportation management.

First FuelCell Hybrid Bus to be Introduced by Toyota

    Japan's Toyota Motor Corp. announced it has developed an experimental bus, dubbed the FCHVBUS1, that runs on a fuel cell with an extra electric motor.

    The fuelcell technology is considered a clean motive source because it creates electricity from the combination of hydrogen and oxygen, with water vapor as the byproduct instead of particulate and gases.

    The technology, however, remains quite costly and is not expected, as a result, to be commercially available for several years.

    Toyota affiliate Hino Motor is working on the bus, which would hold 63 passengers. Road tests are under way in Japan and in July, further testing of the vehicle is expected at the California Fuel Cell Partnership, a meeting of automakers from around the world aimed at promoting spread of fuelcell vehicles.

    The experimental bus would be a "hybrid" capable of switching from the fuelcell power to a regular electric battery motor. Toyota has a commercially available auto called the Prius that lets users switch between a gasolinepowered motor and a batterypowered electric motor.

Special Committee on Intermodal Transportation and Economic Development Named

    President E. Dean Carlson has made appointments to the newly created Special Committee on Intermodal Transportation and Economic Development. Thomas E. Norton, Executive Director of the Colorado Department of Transportation, will serve as chair and David A. Galt, Director of the Montana Department of Transportation, as vicechair.

    The mission of this new committee is focused on intermodal freight transportation issues and on the relationship between transportation and the economy. It will formulate and carry out a strategy to develop and support the case for the economic value of transportation, arrange dialogues with the business community and foster an exchange of information concerning transportation and economic development among the AASHTO member departments.

    Membership on the Special Committee on Intermodal Transportation and Economic Expansion will consist of the Chairs of AASHTO's major committees and a representative of each region. Members will be announced soon.


NHTSA Soliciting Applications for Programs to Reduce Drunken Driving

    The National Highway Traffic Safety Administration is taking applications for a discretionary cooperative agreement to demonstrate effective programs in reducing alcohol impaired driving by people ages 21 34.

    NHTSA's goal is to reduce alcoholrelated fatalities to no more than 11,000 by 2002 through its Impaired Driving program. The cooperative agreement project is to support inventive programs and new approaches that demonstrate, or have the potential to demonstrate, reductions in alcoholimpaired fatalities and injuries in that age group.

    Public and private, nonprofit, notforprofit and commercial organizations, and governments and their agencies are invited to apply. Applications must be received by August 3, 2001. For further information, contact Joseph A. Comella in the NHTSA Office of Contracts and Procurement at (202) 366 - 9568.

Louisiana Legislators Approve Toll Authority

    A bill that authorizes the establishment of toll roads in Louisiana won final approval on Monday, and supporters say it will get stalled "megaprojects" moving again.

    The bill establishes a ninemember Louisiana Transportation Authority within the state Department of Transportation and Development. The panel could choose projects, sell bonds to finance them, and impose tolls for paying off debts and funding operations. Projects would be subject to the same reviews as highway plans, including environmental impact statements and feasibility studies.

    The toll authority would be able to acquire public or private land, thereby helping to prevent delays on highway improvement projects, backers say.

    Passage of the bill was one of Governor Mike Foster's priorities. "It gives us the flexibility to do what other states are doing," Foster told the Baton Rouge Advocate. States such as Texas and Florida have similar laws to raise revenue to improve highways.

Bowlin to Take Over Alabama DOT

    Paul Bowlin will replace G. Mack Roberts as director of the Alabama Department of Transportation on July 1, 2001.

    Bowlin is currently assistant director of the Alabama DOT and has worked in the department since 1960. Roberts will pursue a career in the private sector.

    The announcement of the change is seen as part of a broad government shakeup by Governor Don Siegelman, who also announced the appointment of a new chief of staff, a new director of economic and community affairs, a new banking superintendent and a new policy director. Roberts began his career with the Alabama DOT in 1956, rising through the ranks to be named as the Alabama Highway Director in 1993. He returned to head the department under Governor Siegelman.

Maryland SHA's Salisbury Bypass Project Featured on AASHTO Web Site




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