[House Hearing, 110 Congress] [From the U.S. Government Publishing Office] CONGESTION AND MOBILITY ======================================================================= (110-48) HEARING BEFORE THE SUBCOMMITTEE ON HIGHWAYS AND TRANSIT OF THE COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE HOUSE OF REPRESENTATIVES ONE HUNDRED TENTH CONGRESS FIRST SESSION __________ JUNE 7, 2007 __________ Printed for the use of the Committee on Transportation and Infrastructure U.S. GOVERNMENT PRINTING OFFICE 35-930 WASHINGTON : 2008 _____________________________________________________________________________ For Sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; (202) 512�091800 Fax: (202) 512�092104 Mail: Stop IDCC, Washington, DC 20402�090001 COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE JAMES L. OBERSTAR, Minnesota, Chairman NICK J. RAHALL, II, West Virginia JOHN L. MICA, Florida PETER A. DeFAZIO, Oregon DON YOUNG, Alaska JERRY F. COSTELLO, Illinois THOMAS E. PETRI, Wisconsin ELEANOR HOLMES NORTON, District of HOWARD COBLE, North Carolina Columbia JOHN J. DUNCAN, Jr., Tennessee JERROLD NADLER, New York WAYNE T. GILCHREST, Maryland CORRINE BROWN, Florida VERNON J. EHLERS, Michigan BOB FILNER, California STEVEN C. LaTOURETTE, Ohio EDDIE BERNICE JOHNSON, Texas RICHARD H. BAKER, Louisiana GENE TAYLOR, Mississippi FRANK A. LoBIONDO, New Jersey ELIJAH E. CUMMINGS, Maryland JERRY MORAN, Kansas ELLEN O. TAUSCHER, California GARY G. MILLER, California LEONARD L. BOSWELL, Iowa ROBIN HAYES, North Carolina TIM HOLDEN, Pennsylvania HENRY E. BROWN, Jr., South BRIAN BAIRD, Washington Carolina RICK LARSEN, Washington TIMOTHY V. JOHNSON, Illinois MICHAEL E. CAPUANO, Massachusetts TODD RUSSELL PLATTS, Pennsylvania JULIA CARSON, Indiana SAM GRAVES, Missouri TIMOTHY H. BISHOP, New York BILL SHUSTER, Pennsylvania MICHAEL H. MICHAUD, Maine JOHN BOOZMAN, Arkansas BRIAN HIGGINS, New York SHELLEY MOORE CAPITO, West RUSS CARNAHAN, Missouri Virginia JOHN T. SALAZAR, Colorado JIM GERLACH, Pennsylvania GRACE F. NAPOLITANO, California MARIO DIAZ-BALART, Florida DANIEL LIPINSKI, Illinois CHARLES W. DENT, Pennsylvania DORIS O. MATSUI, California TED POE, Texas NICK LAMPSON, Texas DAVID G. REICHERT, Washington ZACHARY T. SPACE, Ohio CONNIE MACK, Florida MAZIE K. HIRONO, Hawaii JOHN R. `RANDY' KUHL, Jr., New BRUCE L. BRALEY, Iowa York JASON ALTMIRE, Pennsylvania LYNN A WESTMORELAND, Georgia TIMOTHY J. WALZ, Minnesota CHARLES W. BOUSTANY, Jr., HEATH SHULER, North Carolina Louisiana MICHAEL A. ACURI, New York JEAN SCHMIDT, Ohio HARRY E. MITCHELL, Arizona CANDICE S. MILLER, Michigan CHRISTOPHER P. CARNEY, Pennsylvania THELMA D. DRAKE, Virginia JOHN J. HALL, New York MARY FALLIN, Oklahoma STEVE KAGEN, Wisconsin VERN BUCHANAN, Florida STEVE COHEN, Tennessee JERRY McNERNEY, California VACANCY (ii) SUBCOMMITTEE ON HIGHWAYS AND TRANSIT PETER A. DeFAZIO, Oregon NICK J. RAHALL II, West Virginia JOHN J. DUNCAN, Jr., Tennessee JERROLD NADLER, New York DON YOUNG, Alaska ELLEN O. TAUSCHER, California THOMAS E. PETRI, Wisconsin TIM HOLDEN, Pennsylvania HOWARD COBLE, North Carolina MICHAEL E. CAPUANO, Massachusetts RICHARD H. BAKER, Louisiana JULIA CARSON, Indiana GARY G. MILLER, California TIMOTHY H. BISHOP, New York ROBIN HAYES, North Carolina MICHAEL H. MICHAUD, Maine HENRY E. BROWN, Jr., South BRIAN HIGGINS, New York Carolina GRACE F. NAPOLITANO, California TIMOTHY V. JOHNSON, Illinois MAZIE K. HIRONO, Hawaii TODD RUSSELL PLATTS, Pennsylvania JASON ALTMIRE, Pennsylvania JOHN BOOZMAN, Arkansas TIMOTHY J. WALZ, Minnesota SHELLEY MOORE CAPITO, West HEATH SHULER, North Carolina Virginia MICHAEL A ARCURI, New York JIM GERLACH, Pennsylvania CHRISTOPHER P. CARNEY, Pennsylvania MARIO DIAZ-BALART, Florida JERRY MCNERNEY, California CHARLES W. DENT, Pennsylvania BOB FILNER, California TED POE, Texas ELIJAH E. CUMMINGS, Maryland DAVID G. REICHERT, Washington BRIAN BAIRD, Washington CHARLES W. BOUSTANY, Jr., DANIEL LIPINSKI, Illinois Louisiana DORIS O. MATSUI, California JEAN SCHMIDT, Ohio STEVE COHEN, Tennessee CANDICE S. MILLER, Michigan ZACHARY T. SPACE, Ohio THELMA D. DRAKE, Virginia BRUCE L. BRALEY, Iowa MARY FALLIN, Oklahoma HARRY E. MITCHELL, Arizona VERN BUCHANAN, Florida VACANCY JOHN L. MICA, Florida JAMES L. OBERSTAR, Minnesota (Ex Officio) (Ex Officio) (iii) CONTENTS Page Summary of Subject Matter........................................ vi TESTIMONY Catlin, Peggy, Colorado Department of Transportation, Deputy Executive Director............................................. 28 Lomax, Timothy J., Research Engineer, Texas Transportation Institute, Mobility Analysis Program, College Station, Texas... 28 Shane, Hon. Jeffrey N., Under Secretary for Policy, U.S. Department Of Transportation, accompanied by the Honorable J. Richard Capka, Administrator, Federal Highway Administration and the Honorable James S. Simpson, Administrator, Federal Transit Administration......................................... 4 Stone, Craig, Deputy Administrator, Washington State Department of Transportation, Urban Corridors............................. 28 PREPARED STATEMENTS SUBMITTED BY MEMBERS OF CONGRESS Carney, Hon. Christopher P., of Pennsylvania..................... 40 Carson, Hon. Julia, of Indiana................................... 42 Cummings, Hon. Elijah E., of Maryland............................ 43 Walz, Hon. Timothy J., of Minnesota.............................. 49 PREPARED STATEMENTS SUBMITTED BY WITNESSES Catlin, Peggy.................................................... 50 Lomax, Timothy J................................................. 68 Shane, Jeffrey N................................................. 82 Stone, Craig J................................................... 101 SUBMISSIONS FOR THE RECORD Catlin, Peggy, Colorado Department of Transportation, Deputy Executive Director, presentation slides........................ 53 Lomax, Timothy J., Research Engineer, Texas Transportation Institute, Mobility Analysis Program, College Station, Texas, response to questions from Rep. Carson......................... 80 Shane, Hon. Jeffrey N., Under Secretary for Policy, U.S. Department Of Transportation: Responses to questions from Chairman DeFazio................... 88 Responses to questions from Rep. Carson........................ 92 Responses to questions from Rep. Napolitano.................... 97 Stone, Craig, Deputy Administrator, Washington State Department of Transportation, Urban Corridors, ``Low Cost, High Benefit Congestion Relief from Better Highway Management,'' Washington State Department of Transportation............................. 106 [GRAPHIC] [TIFF OMITTED] T5930.001 [GRAPHIC] [TIFF OMITTED] T5930.002 [GRAPHIC] [TIFF OMITTED] T5930.003 [GRAPHIC] [TIFF OMITTED] T5930.004 [GRAPHIC] [TIFF OMITTED] T5930.005 [GRAPHIC] [TIFF OMITTED] T5930.006 [GRAPHIC] [TIFF OMITTED] T5930.007 [GRAPHIC] [TIFF OMITTED] T5930.008 HEARING ON CONGESTION AND MOBILITY ---------- Thursday, June 7, 2007 House of Representatives Committee on Transportation and Infrastructure, Subcommittee on Highways and Transit, Washington, DC. The Subcommittee met, pursuant to call, at 10:00 a.m., in Room 2167, Rayburn House Office Building, the Honorable Peter A. DeFazio [Chairman of the Subcommittee] presiding. Mr. Baird. Good morning. I want to welcome you here to this hearing of the Transportation Committee and thank our distinguished guests and my dear friend and colleague, the Ranking Member, Mr. Duncan. Mr. DeFazio, who is the Chair of this Subcommittee, will join us in a little while. I am Congressman Brian Baird and I have the privilege of filling in until he gets here. As you know, today's hearing is on congestion, and as we all know, anybody who drives at all knows, that many of the regions of the Nation have really what you could call a congestion crisis. The surface transportation system is a national network that serves the mobility needs of the entire Country, but localized congestion has effects that ripple across the entire Nation. Addressing this situation will require a national response and strong Federal leadership. The most recent report by the Texas Transportation Institute found that congestion continues to grow in urban areas of every size. Congestion places a significant cost on the Nation in terms of wasted time and wasted fuels. In 2003, overall traffic delays totaled 3.7 billion hours; an extra 2.3 billion gallons of fuel was consumed due to congestion; and the total cost was estimated at $63.1 billion, up from $12.5 billion in 1982. There is no silver bullet to solving this congestion crisis, but to begin reversing congestion, all levels of government must implement a range of strategies and policies. Solving the problem will require a multi-pronged approach involving expanding roadway and transit capacity, but--and I particularly want to emphasize this--solving this problem will require more than just additional capacity. We need to provide more travel options; we must improve the operational efficiency of transportation networks; there must be better demand management; employ new technology; and better align land use development and transportation planning. All must be part of the solution to this crisis. I personally believe we need particularly to encourage people to try to live closer to where they work and where their kids go to school, because a lot of folks think they are saving money on houses far outside of town, but when you factor in the cost of driving in and the time commitment, the savings is actually illusory. Congestion is a critical issue that must be addressed by this Committee as we begin our efforts to reauthorize Federal surface transportation programs which will expire in 2009-- seems like we just did them, Jim--but we must look at the structural policy needs of our surface system before our congestion crisis worsens. I thank our witnesses for being here today. We look forward to the hearing. I recognize Mr. Duncan for opening remarks and, I understand, a presentation of some sort. Mr. Duncan. Well, thank you very much, Mr. Chairman. I know you will very ably fill the chair until Chairman DeFazio gets here, but I want to thank you and Chairman DeFazio for holding this important hearing on congestion and mobility. As you have very ably pointed out, this is an issue of great importance to not only large cities, but also our fast-growing communities around the Country. In my own hometown of Knoxville, Tennessee, Knox County has a population of about 410,000. Even more than that, though, is that we have two interstates that meet in Knoxville and a third that comes to within 37 miles outside of the city, so we have just many millions coming through there, both going east and west and north and south. It has also become one of the most popular places in the Country to move to, so as our region continues to grow very rapidly, as it is, I am sure that our congestion problems will also continue to grow. Across the Country, in communities large and small, congestion is choking our economy and degrading our quality of life. Congestion costs motorists. There are all sorts of different estimates, but the most usual estimates you see are 60 or 65 or 70 billion a year in wasted time and fuel costs, and this means that it costs the average person at least around $800 a year. In addition, congestion has an impact on the cost of moving freight. Freight choke points at the Ports of Los Angeles and Long Beach, and domestic freight hubs like Chicago, tie up goods and raw materials that add to the final cost of just about every product we buy. These freight choke points and highway bottlenecks are no longer confined to our Nation's older large cities; over the past 10 years, transportation experts have seen dramatic growth in bottlenecks in fast- growing cities such as Charlotte, Phoenix, Denver, and Dallas. Part of the congestion crisis has been caused by the fact that infrastructure investment has not kept pace with the needs of the transportation system. We need to come up with a comprehensive approach to solving this problem that includes additional highway capacity and better access to public transportation. I think the Chairman has also pointed out that we need to work on programs to encourage people to move back into some of our inner cities, and we see that happening in a lot of cities around the Country. The success of the U.S. economy is dependent, as we all know, on a good transportation network that can move people and goods around the Country efficiently and reliably. The congestion crisis in the U.S. is so bad that the mainstream media carries stories on this issue on a regular basis. I saw the piece that we are about to show two months ago on NBC and I think it does a pretty good job of framing this problem, so we will show that. I think it lasts a minute and 50 seconds. Hopefully show it. Mr. Baird. Look, the traffic is dead-stop. [Laughter.] Mr. Duncan. Well, can we get some sound? Mr. Baird. Mr. Duncan, I think this actually shows how we can solve the congestion problem: cars are able to overlap one another. [Video played.] Mr. Duncan. Well, at any rate, thank you. Thank you very much, Mr. Chairman. Mr. Baird. Thank you, Mr. Duncan. I think we all appreciate the message of that, even though it was a little bit hard to hear. Most of us probably live with this on a regular basis ourselves. When you are just driving around in this town at almost any time you experience it. The general procedure of this particular Subcommittee is to try to limit opening comments so we can hear from our witnesses, but if someone is dying to say something important, I would be happy to recognize them; otherwise, we will hear from our witnesses. Mr. Coble? Mr. Coble. Mr. Chairman, I will be very brief. You and the Ranking Member have already mentioned it, but I think vehicular congestion negatively impacts productivity, negatively impacts our quality of life, and I thank you for staging this hearing. I hate to be the eternal pessimist, but I am afraid that congestion is going to get worse before it gets better, but hopefully our panel may bring us through this maze. I thank you, Mr. Chairman. Mr. Baird. Thank you, Mr. Coble. I spoke to the three panelists. Actually, we have two panels today. They promised that by the end of today they will have all the problems solved and we will be able to move forward judiciously to implement them. [Laughter.] Mr. Baird. We are privileged today to have two panels. I will read the names of all of them and then we will hear from our first panel. Our first panel is comprised of the Honorable Jeffrey N. Shane, U.S. Department of Transportation Under Secretary for Policy; accompanied by the Honorable J. Richard Capka, Federal Highway Administrator. Good to see you again, Mr. Capka. And the Honorable James S. Simpson, Federal Transit Administration. Our second panel will be Dr. Timothy J. Lomax of the Texas Transportation Institute; Ms. Peggy Catlin, Colorado Department of Transportation, Deputy Executive Director; and Mr. Craig Stone from my home State of Washington, the Department of Transportation Deputy Administrator for Urban Corridors out of Seattle. So we have got outstanding people who will, I promise you, solve this problem, and all we will have to do is follow their sound wisdom and implement the legislation, and everyone will drive freely ever after. More seriously, though, I look forward to great testimony on a challenging topic. Appreciate the witnesses being here. Mr. Shane, we will start with you and then proceed in order from right to left. TESTIMONY OF THE HONORABLE JEFFREY N. SHANE, UNDER SECRETARY FOR POLICY, U.S. DEPARTMENT OF TRANSPORTATION, ACCOMPANIED BY: THE HONORABLE J. RICHARD CAPKA, ADMINISTRATOR, FEDERAL HIGHWAY ADMINISTRATION AND THE HONORABLE JAMES S. SIMPSON, ADMINISTRATOR, FEDERAL TRANSIT ADMINISTRATION Mr. Shane. In the interest of time, Mr. Chairman, what we decided we would do is I'd present the opening statement, and then you may have access to all three of us. Thanks again, Mr. Chairman and Ranking Member Duncan, Members of the Subcommittee. We are very grateful for the opportunity to come before you today and testify about this important subject, congestion and mobility issues generally. I can't tell you how delighted I am to be accompanied by our Federal Highway Administrator, Rick Capka, and our Federal Transit Administrator, Jim Simpson. Last May, the Department of Transportation announced a new effort to respond to the growing crisis of congestion in our transportation system, the Secretary's National Strategy to Reduce Congestion on America's Transportation Network, which we often refer to as the Congestion Initiative. The President underscored the importance of this effort in this year's State of the Union policy initiatives in which he directed DOT to work with the States and the cities to utilize new approaches to reduce traffic congestion, save fuel, shorten commute times. This year's Economic Report of the President further amplified the importance of the issue with an entire chapter--the first time in the history of the republic-- dedicated to transportation and energy. Protecting the public interest requires policymakers and lawmakers to consider seriously the fundamental causes of the congestion crisis and to enact policy reforms that respond directly to those causes. The Congestion Initiative reflects the Bush Administration's commitment to keeping our Nation moving. Let me talk for a moment about the real costs of congestion. Transportation system congestion is an enormous drag on our economic prosperity and way of life, as the opening statements we have heard already this morning have made clear. Transportation delay and unreliability costs America, we think, an estimated $200 billion a year and have begun to chip away at one of our Nation's most important economic assets: an efficient transportation system that allows businesses freedom of location and the ability to quickly reach customers across the Nation and around the world. Congestion also imposes substantial costs on our Nation's families. We don't often think about this sufficiently, Mr. Chairman. Congestion forces parents to miss events with their children, limits the time that friends and families can spend together, and reduces opportunities for civic participation. While difficult to quantify, these social costs of traffic congestion are enormous and they are growing. America isn't alone in this experience. I represented Secretary Peters at an important meeting of transport ministers from around the world last week in Sofia, Bulgaria. The entire two-day meeting was devoted to the single topic of transportation congestion. A great many countries, in addition to the United States, are taking aggressive steps to combat this problem, which they all believe has the potential to compromise economic growth significantly. The Department's Congestion Initiative is founded on two key premises: first, we do not have to accept growing transportation congestion as a permanent feature of our national life; second, chronic congestion is the result of poor policy choices, a failure to distinguish between solutions that are effective and those that are not. The Congestion Initiative includes a broad range of activities, not all of which I will discuss today. In the short time that I have, I would like to focus on the Department's Urban Partnership program, which is arguably the most critical component of the entire Initiative. Within that program, the Department plans to sign Urban Partnership Agreements with up to 5 metropolitan areas that agree to implement comprehensive congestion-reducing strategies that include congestion pricing, enhanced transit services, and increased emphasis on telecommuting and flex scheduling, as well as the deployment of advanced technology. In exchange for their policy commitments, the Department will support its urban partners with financial resources, using current budget authority, as well as regulatory flexibility and expertise. The Department received applications from 27 metropolitan areas, from which we have just short-listed 9 preliminary urban partners. We will soon enter into negotiations with all of them regarding the specifics of their proposals, following which we will select up to 5 final partners. This targeting of discretionary grant funding in support of urban partners will allow the Department to strategically and intermodally focus its scarce discretionary dollars toward national priority, the national priority of congestion reduction. In closing, let me just commend the Subcommittee for holding today's hearing. We all share enormous responsibility for ensuring that future generations can experience the freedom of an efficient and productive transportation system. It is important for Americans to understand that congestion is not an insurmountable problem, but that solutions will require a smarter approach to capacity expansion, as well as improving the productivity of existing transportation assets. Thanks again for inviting us, and Administrators Capka, Simpson, and I all look forward to your questions. Mr. Baird. Good. I appreciate that, Mr. Administrator. Thank you for your comments. We want to commend the Administration for recognizing the importance of the congestion issue. I have a few questions and then I will yield to my friend, Mr. Duncan. One of the questions I have as I look at our whole transportation strategy, which sometimes I think it is over- complimentary to refer to it as a strategy. No comment on you folks per se, but all of us, we seem to approach things post- hoc and piecemeal. By post-hoc I mean we wait until the development or the new construction or whatever has come into place and then our constituents come and say, gosh, development has exceeded capacity, we need you to scramble post-hoc to get the money; and even as we are chasing the money to meet the already excessive demand, the new development is going on, which will chase us on the next transportation version. The second thing I see is for me a question of fungibility. In other words, if the real issue is getting freight and people to and from their workplace, our transportation dollars tend to be dedicated towards just putting more asphalt or bridges or whatever the remedy is. I sometimes wonder, if we spent that money differently, could we actually address the problem more efficiently, and I will share with you what one right thinker suggested to me. He said he if we spent money on improving our urban schools, we could substantially reduce congestion in the outlying areas, and the reason was, apparently, if you ask people, why did you move from the inner city to the suburban area, oftentimes the answer is schools; and the premise being if you had a better school in the inner city, people wouldn't have to live so far away to get to the schools. So they move outside so their kids can go to better schools, and then they drive a long way into work. So could you address those two issues, the issue of sort we are always swinging late, to use a baseball metaphor, but, secondly, fungibility? Could we spend our dollars or our resources in a more effective way than just laying down asphalt, putting up bridges? Mr. Shane. Thanks very much, Mr. Chairman. I don't think any of us disagree that we could be doing things smarter. The idea of comprehensive planning, looking at all sectors that affect the transportation problems, the transportation equation, it is something you really can't quarrel with. I think, within the Department of Transportation, we are necessarily slaves to the appropriations process and to the way in which our programs are defined. We have limited resources within the Department of Transportation and they are specifically focused on infrastructure. The Congestion Initiative is an attempt, within the scope of what is available to the Transportation Department to do, to try to use that money in a smarter way, and that is why the urban partnerships that we are engendering right now are being graded on their ability to look across the board at smart solutions; not just more asphalt, as you say, but the use of technology, the use of flex scheduling for our workforce, a variety of approaches which go beyond the traditional transportation solutions and address the problem of congestion in a more holistic and societal way. But there are real limitations in that within, as you know, the transportation programs, so perhaps more intergovernmental interagency coordination with respect to transportation is something we should be focused on to a greater extent. Mr. Baird. I appreciate that and understand well the limitations. I guess I would just invite you folks to feel free to share with us--we always refer to thinking outside the box; I think I would say think outside the freeway a little bit--if you feel there are options to be more efficient. The goal is to get goods and services and people to and from where they need to be in the most efficient way, and there may be a lot of ways to do that. And if there are better ways to do it but your hands are tied, I would appreciate the feedback about we look at some of those alternatives, not only for the issue of congestion, but congestions directly related to consumption of our fossil fuels, which affects our foreign policy, which affects our environment, etc., etc. So anything we can do to not just focus on what our own stovepipe authorization or appropriation is, but on what is the most effective way to actually achieve the goal would be most welcome. With that, I would yield five minutes to my friend and colleague, Mr. Duncan, the Ranking Member. Mr. Duncan. Well, thank you very much, Mr. Chairman. First of all, I want to commend all three of you because, while we talk about these problems here, it is pretty clear, as I travel to other countries and read about what is going on in other countries, that we have by far the best transportation system in the world; it is just that you always need to be trying to improve and get better, and we do have some of these problems that we definitely need some work on. Mr. Shane, in the aviation sector they always say that roughly 70 percent of the delays are caused by weather. What percentage of the delays on the highways are caused by weather, accidents, work zones, things that are at least partially or totally out of your control? Mr. Shane. Thanks for the question. It is an excellent question. We think that what we characterize as non-recurrent delays attributable to accidents, incidents, weather, the like, represent something like 60 percent of the delays that we are dealing with today. So, therefore, we actually are focused to a great extent on trying to address some of those. Better incident management produce enormous dividends. Federal Highway Administration has a really forward-looking program on weather as it affects our surface transportation system, something that is not recognized enough. We are doing that in close concert with NOAA and really delivering tremendous amounts of better information to communities around the Country so that they can manage their resources better. But this is a very important part of the congestion problem, no doubt. Mr. Duncan. I understand that this urban partnership that you are talking about you have narrowed down from, now, I think, 27 cities to 9 cities, and you are going to narrow it down to 5 more, is that correct? Mr. Shane. That is correct, yes, sir. Mr. Duncan. And the plan is that you are going to spend approximately $1.1 billion on that? That is the figure I have. I just figured how that money was going to be spent. How is it primarily going to be spent, is that going to be up more to the Department or is that going to be up more to the local cities, and are they going to submit proposals on what things they want to try, or how is that going to work? Mr. Shane. Yes, Congressman Duncan. The applications came in pursuant to our request for applications. We will end up with, we hope, 5 final urban partners. The funds that are dispersed to them will be dispersed pursuant to current statutory authority, pursuant to the programs that are currently available to us, targeted to initiatives which fit within the framework established by statute by emphasizing congestion relief through a variety of different tools. I think the $1.1 billion--I will ask Rick Capka to talk to this a little bit, as well as Administrator Simpson--that is money that would be available to the States in any event. We are simply attempting, again, to use these programs in a smarter way. The President's budget for fiscal year 2008 includes--or, I am sorry, is it 2007?--2008, forgive me, includes $175 million of found money, we think, money that had been earmarked for other purposes but not spent, such that we actually can increase the amount of money that would otherwise have been available for this purpose. But the rest of the money is money that would have been received by the States in any event, but, Administrator Capka, perhaps you want to supplement that answer. Mr. Capka. Thank you, sir. Ranking Member Duncan, that is a great observation, a great question, and as Mr. Shane said, the Urban Partnership Agreement aspect to the Congestion Initiative is right there at the center. In addition to the funds that Mr. Shane talked about, we have discretionary funds in the Federal highway. With the 2007 appropriations process, we were given discretion that we did not have before, so it is another $300 million that we have to work with within Federal highways. Of course, as Mr. Shane said, those dollars will first meet the statutory requirement, as they have to do, and will support the programs under which those programs were authorized and appropriated, but we will apply those to wherever they can fit best within these urban partnerships as another criteria that we would include in the process there. Mr. Duncan. Mr. Simpson? Mr. Simpson. Yes. I guess traditionally, in the past, the DOT was pretty much stovepipe. Highways did their thing; transit did their thing. We have got this slogan: one DOT. So, strategically, together, we are looking at where we can best-- highway and transit and other modes--come together to have a synergistic relationship with our stakeholders, and a lot of that is from the implementation of SAFETEA-LU. SAFETEA-LU said to us very early, with the MPOs and planning, we are not just going to look at building another highway; what is the problem in the corridor and is it best served with transit or is it best served with highway. Also, the flex funding that we have, the CMAC funding that allows funds to be flex and the STIP funding over to transit. So we are working as a unified, cohesive one DOT in order to get this done within the statute. Mr. Duncan. Well, I want to give these others a chance to ask some questions, but let me just ask all three of you what is the initiative or what do you see for the near future that you are the most optimistic about? What proposals are out there, a proposal that you have seen that you think is going to make the most improvement in relieving some of this congestion, increasing mobility? What are you the most hopeful about? Mr. Shane. I will take a crack at it and then we will ask our---- Mr. Duncan. What is the best idea that you have seen recently? Mr. Shane. To my mind--and I am not sure we all have the same answer, but my answer is pricing strategies are probably the most important near-term fix we can deploy. With the advent of electronic tolling, which really reduces--and not just by virtue of not having to stop at a tollbooth makes a big difference, but being able to calibrate price and keeping with demand, really keying the cost of using the facility to the amount of congestion that is on the facility. Not just in the United States, but around the world, this is probably the most important advance, I would say, in transportation planning that we have seen. Not without controversy, to be sure--we are all aware of that--but we see wherever this pricing strategy has been used as a new tool for congestion management, in addition, of course, to raising revenue, the public embraces it, notwithstanding the fact that we know all of the mousetraps that a pricing strategy may pose to segments of the community. Nevertheless, we see broad support for pricing strategies in those communities which have actually adopted them because of the results that they deliver. So that would be my first answer, but, Administrator Simpson, perhaps you have an answer. Mr. Simpson. Congressman, some project that I am really familiar with from my hometown in New York City, just for a moment, back in 1985 I ran a trucking company and I would send out about 100 workers a day and maybe 15 to 20 trucks from Staten Island, New York, which, in the most recent U.S. News and World Report is the number one community in the Country with gridlock. So that is where my corporate headquarters was. We would pay these 100 workers on an hourly basis, and from my depot it was 15 miles to the center of Manhattan on one interstate, Interstate 278, which, by the way, has not expanded since the early 1960s. It would take our drivers 45 minutes, and with traffic at the time, at the most, an hour each way, from depot to job site--let's call it the Empire State Building--and back to the depot. Three years ago and today it is taking over two hours each way. So these high-paid workers at a fully loaded cost of $25 to $30 an hour, with a $100,000 truck, you can do the math. They are spending four hours in the truck, totally unproductive, for eight hours work. So that is a 50 percent waste in productivity. These are real dollars. Now, New York has been very bold, so they--let me first start by saying the Department has been going all over the Country--this is not a static thing, this is a dynamic thing. The Department has been going all over the Country talking about these solutions like this urban partnership. New York is really bold. What they are proposing now, which is going to take some legislation, but almost everybody is on board, to have an access fee, similar to London, south of 86th Street to Lower Manhattan to free up maybe 5 or 10 percent of the traffic so that the goods and services. And by the way, those trucks that are traveling to Manhattan every day, people on Express Buses, which is a misnomer, stuck in the same traffic two hours each way, so the Express Buses are not the express buses. We have this limited capacity. So New York has got this bold initiative, which includes a pricing initiative. There will be a transit component and maybe a highway component to it. So we are looking to see how we can take our resources--our financial resources, our technological resources--and help New York with that to break this gridlock. And the beauty of this program is whatever we invest in now, Mayor Bloomberg said that this congestion pricing will throw off about $300 million a year to finance such things as a $6 billion or $7 billion 2nd Avenue subway, more Express Bus service, and all those things so the commuters and everybody else can get to work in a lot less time. That is the real problem, and that problem plays itself out, maybe not to that magnitude, but it plays itself out in probably 50 to 60 cities around the Country day in and day out. Mr. Duncan. Thank you. Administrator Capka? Mr. Capka. Sir, that was a great question you asked, and I think one of the things that excites me about the Congestion Initiative is not just one piece that makes progress for us, and I would like to kind of take an example. I think you have heard the pricing piece, but there are a lot of efficiencies and innovation, and the program itself is designed to stimulate innovation; not prescribe steps that need to be taken, but really reach out and tap the creativity that is there. In our Highways for Life program--you had asked a question about non-recurring congestion and the impact, and Mr. Shane mentioned it takes up about 60 percent of the congestion. Our Highways for Life program reaches out and looks for new construction techniques to minimize the work zone exposure time; get things in and out very quickly and have them last longer. You have probably seen images of bridges being floated down, fully complete, on a barge, raised and put into position overnight so that the driving public did not have to go through the inconvenience and congestion associated with reconstruction onsite. These are examples that are occurring across the Nation right now, and we are trying to, rather than have them the ad hoc examples of excellence, to make them mainstream, and the Congestion Initiative is focusing on that side of the equation as well. Mr. Duncan. Well, thank you very much. Very interesting answers. Mr. Chairman, thank you. Mr. Baird. The gentleman from California, Mr. McNerney, is recognized for five minutes. Mr. McNerney. Thank you, Mr. Chairman. I was definitely intrigued by some of the discussion so far. In fact, the Chairman's comment about schools being better funded in the urban areas might actually have some impact. I have also noticed that in our region school buses aren't funded, so a lot of parents are dropping their kids off, and that causes a lot of early morning and late afternoon congestion. But in terms of Federal actions, you are talking about advanced planning being important, regional transportation authorities, things like flex schedules and telecommuting. How can we, at the Federal level, help encourage those kinds of behaviors and regional transportation authorities to do the kind of work that is needed for future planning in congested areas? Mr. Shane. Thanks. We think the answer is to create incentives through programs like the urban partnership program, in other words, provide a reason why local planning organizations and State transportation departments need to think more aggressively about how to implement teleworking, for example, or encourage teleworking among businesses throughout the region. The Urban Partnership Agreements program is designed by rewarding innovative applications to stimulate that sort of thinking, and we think that it is in fact already doing that. I am not suggesting there isn't an awful lot of creativity already there, but strong Federal leadership, the use of the bully pulpit and the use of our programs, to the extent that they make it possible, to encourage some of this innovation are probably the ways to go. Mr. McNerney. Well, in the Bay Area, which is my home area, we had an incident lately where a crash took down one of the highways, and the Caltrans had that replaced within about a month, and, boy, I would like to see some way that the Federal Government could encourage that sort of aggressive and efficient repair or planning that could get things done. You also mentioned Bulgaria, which was interesting, because in Eastern Europe I know they don't have as many cars as we do, but they are already experiencing congestion? Is that because their infrastructure is less capable than ours, or what is the scenario going on over there? Mr. Shane. So many countries in Eastern Europe, particularly those that have recently joined the European Union, are experiencing unprecedented economic growth and, predictably, that is producing more real personal income, more vehicles on the roads, just as is the case in developed economies like ours. That increase in vehicular use and traffic is far outstripping the pace at which they are able to increase their infrastructure. But the meeting was in Bulgaria not because of a unique congestion problem there, but because it just happened to be the venue for a global meeting. We had ministers of transport from around the world basically telling exactly the same story; not just in their urban areas, but across all segments of their societies. Mr. McNerney. I have one other comment. You were talking about congestion pricing. That sounds a little bit like a tax. How does that work? You said that it is acceptable to the population. How do they react to that sort of thing? Does it cause more problems by pricing? How does it work? Mr. Shane. Well, it can work in a variety of different ways. There are cities in other countries where they have established cordoned pricing, something that New York is beginning to think about now. Administrator Simpson was talking about Mayor Bloomberg's thinking on this front. You put a charge in place that you get charged if you want to drive your car into the inner city everyday, and that charge is at a sufficient level, maybe what economists would call a market clearing price, that it actually does drive an awful lot of traffic out of cars, personal vehicles, and onto public transportation. And if you can just reduce the vehicular use by even 5 to 10 percent, you make a tremendous amount of difference in the flow of traffic. We experience this in Washington every August, when we have a number of us go on vacation. Well, the actual reduction in vehicular use during August in Washington is probably not more than 5 or 10 percent, but it is a different world during that month just because of that small reduction. So cordon pricing is one approach to it. But just variable tolls on roadways used for commuting purposes area a way of ensuring that a lot of discretionary traffic, traffic that wouldn't have to be there during rush hour, chooses a different time of day. That is the whole idea. I mean, congestion pricing is precisely what it is, it is meant to reduce the peak load on our assets such that they have a much longer and more efficient life. With electronic tolling, of course, it is very easy to vary the level of the toll during the day, and we have seen a lot of successful examples of that, particularly in California. Mr. McNerney. Well, I understand in ancient Rome they didn't let certain vehicles on the road during the day; they had to use the roads at night. So maybe that is sort of an approach that would be useful too. Mr. Shane. I think we are doing that in many places. Modern Rome, Administrator Simpson said, is still doing that. But there is no question but that rules of that kind can make a tremendous amount of difference consistent with, of course, the need for people and businesses to use those roads. Mr. McNerney. Thank you, Mr. Chairman. Mr. Baird. Thank you. Mr. Coble. Mr. Coble. Thank you, Mr. Chairman. Good to have you all with us this morning, gentlemen. Mr. Capka, let me ask you this question. The primary focus of the Congestion Mitigation and Air Quality program seems to be improving air quality, as opposed to relieving congestion. But would not relieving congestion inevitably result in air quality improvement? Mr. Capka. Sir, that is an accurate observation. In fact, the CMAC program that you referred to does focus on air quality. In fact, the application of the program is designed to work in areas where the air quality has not reached standard. But the C in the CMAC program is for congestion mitigation, and in the program, as it has worked over, oh, a number of years, 73 percent of the projects--and these are State discretionary projects--focus or at least have an impact on congestion. So there is a direct application of congestion mitigation associated with the program. I will say that it is a State administered program and the States set up the priorities for it. For our Federal Congestion Initiative, we don't have the discretion to work those dollars as effectively as some of the other discretionary programs we do have. Mr. Coble. I thank you. Not unlike most every district, probably, congestion is a growing issue. In my district there are two major interstates, I-85 and I-40, that are vital corridors. Furthermore, there is a third project, I-73/74, which has work progressing, which will add another thoroughfare to hopefully reduce growing demand. I also believe it is important that we continue to promote mass transit--as I suspect you all do--as a way to reduce congestion and offer commuters an alternative. My question is this. In light of these efforts, how do you all balance funding to add additional capacity on existing infrastructure, on the one hand, as opposed to promoting alternatives to reduce congestion? Mr. Capka. Sir, we have encouraged States and local planners to take a holistic view of transportation requirements, and as was suggested earlier, early in the planning process is where these kinds of balancing decisions are taken. As Mr. Simpson mentioned earlier, we are trying to set the example with our Congestion Initiative to show how all modes of transportation can come together and seek a balance in terms of how we move freight or how we move people from point A to point B. So a major foundation piece in the Congestion Initiative is to ensure that we are looking across all modes of transportation. Mr. Simpson. If I could add on, Congressman. Mr. Coble. Sure. Mr. Simpson. Secretary Peters just had an executive one-day planning conference to come up with 21st century solutions to our problems today, and one of the questions was how do we increase capacity with existing infrastructure, because we don't have a blank check. So she challenged everybody in their mode to go back and to turn research upside down and do all those other things. On the transit side, we are doing a lot and it has been an ongoing thing. A perfect example is rather than have a new-- let's say you need more capacity on the Metro. Rather than putting in a new line, you elongate the stations so that they could accommodate more cars. Secondly, technology has really done a lot for us not only in rail, but also in bus. But if you look on the rail side, with the signaling technology today, you can run trains closer together so you can get more throughput in the same fashion. Those are just two examples. So we have been hammering away at that in all the modes on transit and we have been working with the stakeholders, and trying to squeeze more capacity out of existing infrastructure is the number one priority at the Department. Mr. Coble. I thank you. Mr. Shane, do you want to add anything to that? Mr. Shane. No, sir. Mr. Coble. All right. Thank you. Yield back, Mr. Chairman. Mr. Baird. I thank the gentleman. Elijah? Mr. Cummings. Thank you very much, Mr. Chairman. Secretary Shane, can you give us an update on the state of the Highway Trust Fund? Mr. Shane. I would like to defer to our Federal Highway Administrator, who is in charge of writing the checks out of the Highway Trust Fund and probably can give you a much more relevant answer. Mr. Cummings. That is fine. Mr. Capka. Congressman Cummings, that is one of the major topics we have going on between the Administration and the Committee here, is the status of the Trust Fund. As you know, during SAFETEA-LU, in order to reach the $286.4 billion size of the bill, we had to spend down the balance in the Trust Fund, so we consciously took a look at the Trust Fund and decided that at the end of 2009 we would not have an extra dollar in the Trust Fund. Because we are spending down the Trust Fund, it is clear that revenues are not keeping up with the current level of expenditure. At the end of 2009, we will have to take a look at how to restructure and re-look at the financing of highways. We may or may not get to the complete end of 2009 before we have a problem, and we are looking at that very carefully. In our budget submission for 2008, we have made some recommendations in order to mitigate the potential that the Trust Fund would not be able to support full SAFETEA-LU funding before the end of the SAFETEA-LU period. Mr. Cummings. Well, in the longer term, do you believe that the gas tax can or will continue to be the primary source of transportation funding at the Federal and State level? If so, why? And, if not, what funding mechanisms do you believe are most likely to be able to supplement the gas tax? Mr. Capka. Looking into the future, the interesting thing about the gas tax from the highway infrastructure perspective, the more gas we burn, the better for revenues coming into the Trust Fund. It is counter to national programs that we have, national priorities with respect to dependency on foreign oil, with respect to the greenhouse effect and the carbon loading. We certainly don't want to encourage the continued use of fossil-based fuels. So I would say, looking into the future, we have got to find ways to weaning ourselves off of the gas tax and looking to something perhaps like vehicle miles traveled, as is being experimented with in a couple of States, Oregon being one, where vehicles are in this pilot program. They are not charged gas tax when they fill up at the fuel pump; they are charged for the miles they have traveled and the periods they have traveled, much like a taxi meter rolling up a taxi fare. I think there are innovations like this with the technology that is emerging, with our sense that we are going to have to use some technique to help also throttle demand on our highways to work congestion, that these types of solutions are the ones we need to be experimenting with today, looking at them very carefully, and then working them into our long-range plan for the funding of the highway system. Mr. Cummings. Well, what, if any, steps is the Administration taking in its Congestion Initiative to promote improved land use planning and to create the kinds of communities that can shift people from cars to other modes of transportation? Any of you. Mr. Simpson. Congressman, on the transit side, you know, our discretionary program, which is for new fixed guideway systems like rail--and Baltimore has plenty of rails, so you understand that discretionary program--one of the things that we look at in statute and we pay very close attention to is the development around stations. In order to have sustainability, you need to have the right density. So we look for cities in area--while it is a local decision--if they are going to get funded with the Federal dollar, to make sure that they have good land use patterns that are supportive to transit investment. We are a big supporter of transit-oriented development and we have got, additionally, HUD and FTA have a MOU, and we just completed a report and sent, I believe, to this Committee talking about not only housing around transit, but affordable housing, as well; that the people that need transit the most have to be able to live near where transit is and have to be able to afford to live so they can access transit and have mobility. Mr. Cummings. All right, thank you. I yield back. Mr. DeFazio. [Presiding] I thank the gentleman. Mr. Brown. Mr. Brown. Thank you, Mr. Chairman. I thank the gentlemen for coming and giving us all this good information. My question is to the Under Secretary. We have heard a lot about the corridors of the future. Can you tell us a little bit more about how the Department is defining the corridors? Would it be on a case by case basis based upon the application submitted to the Department or based on need. How would that be determined? Mr. Shane. Thanks, Congressman Brown. Yes, we received 38 proposals under the Corridors for the Future component of the Congestion Initiative. We, so far, selected 14 of them last February. We are going to winnow that list down--we have been working on that for quite some time--to the point where we are going to finally have five that will be chosen by the middle of the summer, we expect. Clearly, what we are attempting to do in the Corridors for the Future program is reward comprehensive planning that is designed to link together various regions of the Country in a productive transportation thoroughfare that will benefit not just one community, or even a group of communities, but a number of States, really enhancing the flow of commerce and trade in a much more effective way. Mr. Brown. And you will be able to identify those by the summer, those five? Mr. Shane. By mid-summer, I think. If you have anything to add, Rick. Mr. Brown. And what will be the next step after the identification? Mr. Capka. Sir, the selections will be made mid-summer. At that point an agreement will be set up with the sponsors for the Corridors of the Future, setting up the objectives and milestone deliverables, those sorts of things, and we will work then very carefully with them to provide the support resources that we have available in that program. Mr. Brown. I noted that there has been a lot of pressure on the Department of Transportation, I guess, since 1954, when they started the interstate system, and not much has been done about enhancing it since then other than maybe expanding the number of lanes, and that sort of thing. I think the Corridors of the Future is certainly a great innovative thing to look at doing some new planning based upon the population shift. I know down in my region--I represent South Carolina, which is a tourist destination, but we also have a port, which is a commerce destination, too, and I know that we have one interstate connecting Charleston. We don't have any interstates connecting Myrtle Beach, which has 14 million visitors a year coming. So you can imagine the congestion we have during the summer months. But I would hope that those criteria would be placed upon whatever selection process you might have so that those type situations would be included. I know, Mr. Under Secretary, we talked about dealing with the shortfall of the Trust Fund, and I know that your idea about using miles driven, rather than gasoline purchased, because of the increase of the efficiency now of the new automobiles and constraints placed upon the carbon emissions, this sort of thing. How would you go about collecting miles driven? How would a user be able to tell you that? Mr. Shane. There are a number of technologies, Congressman, that are being experimented with right now, not the least of which is the use of GPS. You simply have a transponder on a car and it is possible to monitor the movements of the vehicle. There are ways of protecting the privacy of the owner and so forth, which obviously have to be part of the program, but which end up being metered automatically and just producing an invoice at the end of every month which goes out and is paid. That is one way of doing it. Meters in cars which could be automatically read would be another way of doing it. There is no question that there are technologies around, and it is something that we are not experimenting with in the United States alone. I know The Netherlands is actually thinking about--and I just learned this last week--a national program for metering vehicle use and charging for that use by the kilometer, rather than a fuel tax. The fuel tax, as my colleague said eloquently, is a way of penalizing ourselves. If we increase the fuel tax, we are, in effect, penalizing ourselves for having achieved fuel economy objectives that we all share and that we are trying to make tougher and tougher over time. There is a real conflict in the effort to reduce our reliance on fossil fuels and our reliance on those very same fuels as a source of funding for our transportation infrastructure, and that is what we are trying to de-link. Mr. Brown. How do you plan to fund the Corridors of the Future? Mr. Shane. Out of existing Highway Administration funding. Rick, you can be more specific than I on specifically where that money is coming from. Mr. Capka. We do have some discretionary dollars that have been made available to us this year. In our 2008 budget submission we have asked for $175 million to be reprogrammed from ISTEA era, 10 year old projects that have been inactive with unobligated balances, that would also be made available to support these programs. Mr. Brown. Very good. Thank you very much. Mr. DeFazio. I thank the gentleman. Mr. Lipinski? Mr. Lipinski. Thank you, Mr. Chairman. Thank you for your testimony here today. In Chicago land, where my district lies, is one of the most congested regions in the Country, and my constituents and millions of others in Northeastern Illinois deal with this everyday. Now, much has been done to provide resources to State and local governments, but I think that we definitely need to do more. First and foremost, we need to continue to enhance investments in surface transportation capacity expansion projects. One of the most important in the Chicago region is CREATE, the rail modernization program, which would do a tremendous amount to help move freight in and out and through Chicago; help with the commuter rail, Amtrak lines; but also help to clear up congestion on roads by building underpasses, overpasses, you know, grades separations. So I think there is no question that we need to continue to do more and provide more funding for projects like this, but in the short term ITS can make a real difference in fighting congestion through operational improvements and demand management. We really have the technology available--it is growing more and more everyday--to help people to get traffic information, make it easier, try to make the commutes easier for them. This is another area, though, where I think that we can do more for State and local governments. Last year I met with former Secretary Mineta, and we talked about congestion in Chicago land and about the Congestion Initiative. We had a very productive discussion at that time. Today I just want to ask you in specific terms, with particular emphasis on any ITS applications, how can the Initiative help reduce congestion in the Chicago area. Mr. Shane. Thanks very much, Congressman. Let me just, first of all, say that at the Department of Transportation we think CREATE is one of the most important projects that the Country needs to focus on. It is not just of significance to Chicago, as you know, but given Chicago's role in the national freight movement system, CREATE has a tremendous amount of potential benefit to the Country at large. So we look forward to seeing further progress on CREATE. To your specific question about ITS, we are, through the Urban Partnership Agreements component of our Congestion Initiative, trying to encourage further deployment of ITS solutions, intelligent transportation system solutions, that really deploy technology for the benefit of reducing congestion in ways that are probably the most cost-effectively means we have of reducing the load on our existing transportation assets. This is, again, without quarreling with the need to continue to expand capacity. That is, of course, the central point of our transportation programs. Nevertheless, we know that it takes time to do that and, therefore, the efficiencies that can be gained by the use of intelligent technologies--and they are available and on the shelf today, as we all know; what they need is greater ubiquity--the use of those technologies have huge potential for helping to address some of the problems that we have both in our urban and rural areas. Administrator Simpson would like to supplement that. Mr. Simpson. Congressman, I have been out to Chicago a couple of times, meeting with Frank Kruesi, who I believe is no longer with the CTA, and also met with Senator Durbin, and Chicago is a great city, and the whole area, in terms of their ridership. Chicago area is actually number two in the Country for transit ridership; you are at about 12 percent. New York is 25 and Chicago is number two. But you are also number three in the Country for congestion. So there is obviously a need to make some change, so I would encourage you to work with the local folks to take a look at what is happening in New York, because maybe if that passes, to try to implement some sort of a model like New York. But with respect to the rail mod money, it has been doing a really good job for the Chicago Transit Authority. They are upgrading their signalization, their tracks. It is a very old system, as we know, but it seems like they are doing a great job and they are trying to get, I know, a great amount of needs, and they are looking at alternative sources for transit funding. The New York model today will spin off hundreds of millions of dollars that can go to transit projects, so I think that the folks in Chicago, if they take a look at what may be happening in New York, but what certainly has happened in London, it might help alleviate some of the extra pressure. Mr. Capka. Sir, also from kind of a low tech, but high tech with respect to ITS, is providing decision-quality information to drivers; when you should get out on the road or where there is congestion, when to avoid. The 511 system is a dial-up system that links a driver up with the latest traffic information, where you can determine where there are construction problems, an incident that has occurred, or just the regular congestion that allows the driver to make some smart decisions before going out on the road. Something like that can do an awful lot to address congestion problems, particularly in Illinois. Mr. Lipinski. Well, I thank you for your responses, and I want to also follow up and agree with Mr. Simpson that transit is very critical, and with the great needs right now that we face in Chicago, but certainly in other places around the Country, I think that is another place where we need to have a greater Federal commitment, because it does a great job of reducing congestion. Cutting down pollution is to support transit. Thank you. Mr. DeFazio. Thank you. Representative Reichert. Mr. Reichert. Thank you, Mr. Chair. I have just one quick question, and if it has been asked already, I will get it over the telephone later, so I apologize. I was reading through the testimony and noticed that you want to establish a competitive process for designing up to five multi-State Corridors of the Future. Has that process been started and have the five corridors been identified, or where are we in that process? Mr. Shane. Thanks, Congressman. Yes, we actually did talk about that earlier. We are well into the process. We received 38 proposals back in February. We are winnowing those down to a list of 5, which will be announced in the middle of the summer sometime. Mr. Reichert. Do you happen to know if the Seattle area is one of the 38 that has applied? Mr. Shane. I-5, Administrator Capka tells me, was certainly one of the corridors that was proposed, yes, indeed. Mr. Reichert. Okay, thank you. Mr. DeFazio. Thank you. I want to apologize for being late. Sometimes there are imperatives that relate to one's district, and we had a meeting with our former colleague, Mr. Portman, and OMB to discuss an issue of extraordinary concern to my district, so I was unavoidably detained. I would like to go to Mr. Shane's testimony. I guess maybe I live in a little different world or hear from different folks, but when I read today a growing course of economists, academics, transportation planners arguing that fundamental mis-pricing of highway travel must be addressed to tackle the congestion problem in a sustainable way, and prior to that you say there are there basic mechanisms available: one, rationing; two, formally allocating access rights to use the network at various times, as is done in the rail and aviation sectors; or three, using prices, as we do with most other goods and services. I guess the question for Secretary Shane, which I posed to Mr. Duvall, when he came and waxed eloquent about the congestion problems, all things we are having, is what about investment? There is no discussion, except in the context of the private-public partnerships, about investment. You might recall the President's own Department of Transportation, during the consideration of SAFETEA-LU, said we needed $375 billion to basically keep up. That was their estimate when we started the discussion. This Committee wanted to work toward that number, and that just couldn't happen between Congress and the White House. The President started at 250; we ended up around 280. But it seems to me, if we are going to say there are ways to address this, number four might be significantly enhanced investment at the Federal, State, local, and, yes, even the private level. But we are talking about rationing and using prices and the growing chorus of mis-pricing of highway travel. That is not what I hear from people. They say when are you going to improve the off-ramp; when are you going to add another lane; when are you going to give me an alternative. They are not saying, gee, it is mis-priced. Granted, I come from the West Coast, and we are not as enamored of tolling as perhaps some people are here on the East Coast. So that is sort of the first question. Does investment play a role here? Does the Administration have a position on investment? Are you looking at 2009, when the Trust Fund might be depleted, and do you have any solutions for how we might fund the existing program in that year? Then the second question would be sort of on the whole theory of pricing people off the highways. You use the example of a doctor and someone going shopping. But what if the doctor was going shopping? Might the doctor, because of his high discretionary income, decide, well, he is not on the way to an emergency at the hospital, so it is not time sensitive in that way, but he is going to use the HOT lane because he can afford to? I mean, I think the thing that is being overlooked here is people don't choose when they go to work. People don't necessarily have tremendous discretion over where they live. I would use Portland, Oregon as an example. The Metro Council there is enamored of some of these ideas and being pushed by DOT, until I disabused them of the notion. Middle income, lower income people can't afford to live in the city; that is a fact. So they have to live further out. We don't happen to provide alternatives that go across the city for them to get to work. Well, I guess they are just out of luck, or maybe they have got to find a new job, or they are going to pay an extortionate amount to get to work that they can't afford on their salary. It seems to me that we are skipping over a whole lot of issues here, and I wish you would address those, Mr. Shane, the first being investment and the second being the inequities and the problems that are potentially created when people don't have a viable mass transit option and they just happen to work one place and live another, or it is a single mom who has got to get their kid to school and get to work and pick the kid up after school and there is no transit option available for that and she can't afford 20 bucks to use the HOT lane. Mr. Shane. Thanks very much, Mr. Chairman. Let me just say, in response to the first part of the question, that we are talking about shades of emphasis here. There is no intention on the part of the Department of Transportation to de-emphasize investment. Mr. DeFazio. Well, we just never hear any talk about it. I mean, Mr. Duvall was here; he didn't mention it. It seems to me if you say there are three ways to deal with congestion and none of them mention enhanced investment---- Mr. Shane. Well, we do talk about enhanced investment. That was the public-private partnerships part of the Congestion Initiative. There is not any quarrel with---- Mr. DeFazio. That, again, would be a fraction compared to-- if you have heard all the testimony from the experts, they say maybe it is a 5 percent solution, public-private partnerships. Mr. Duvall was here. So let's say it is even a 7 percent solution. What about the other 93 percent, which requires State, Federal, and local investment? We need to address those issues and I see a very unbalanced presentation. Mr. Shane. What we are emphasizing is what is different in our proposals today. There is not any quarreling with the existing program, and I expect that that program will continue in some form going forward. We did have, I think, a productive discussion with Congressman Cummings about whether or not an increased gas tax is necessarily a formula for future success and tying our infrastructure finance to fuel that we are trying to reduce the consumption of. There is a fundamental conflict in our policies in that regard and we have to address that conflict. But it is not to gain, say, the notion that more investment is necessary. We happen to think that there are hundreds of billions of dollars--that is what people tell us--available in the private sector, money that is available for transportation infrastructure and that we should tap. We should do it intelligently. I have seen the correspondence from the Committee. I don't have any quarrel with many of the points that were made in that correspondence. We do have to calibrate the use of these tools, but these tools are, nevertheless, available to us as a means of enhancing the amount of investment that we put into our infrastructure. And they are not just ideas that are brewing here. I mentioned in my testimony that I was overseas last week. I learned that these are tools that are being embraced, in fact, far more readily in other countries than they are here. We just wonder why it is that we are having so much difficulty marching in the same direction when it seems to be producing so many successes in other countries. So I don't want to mislead the Committee. Investment will continue to be a core objective of all of our programs. We intend to work with the Committee, and this Subcommittee in particular, on trying to find intelligent ways of doing that. What we are trying to do, however, recognizing the extent to which demand has outstripped our capacity to invest through traditional means--and that is to say at the Federal level--is find additional solutions; the use of technology, the use of pricing strategies, things that are producing real dividends and addressing congestion in lots of parts of this Country and other countries which, if we could make more ubiquitous, would produce enormous dividends in terms of the quality of life and the productivity of our economy. Regarding the whole question of inequity, we are mindful of that and it has certainly been a source of a lot of discussion. What we do find, however, is that wherever pricing strategies have been implemented and then a referendum is taken after the fact or a survey is taken after the fact, we find that the reaction of the populations to those pricing strategies does not seem to be a function of income levels. By and large, these strategies have been broadly embraced by the people that have been subjected to them. In Stockholm, for example, they put a pricing scheme in place in order to calibrate the use of transportation assets for getting to and from the downtown area. They did it on a temporary basis because they wanted to see what the reaction would be. They had a referendum; the referendum was a broad acceptance of the idea, so that by mid-summer they are going to put it in place on a permanent basis. They have all levels of income, of course, in the population of Stockholm. There is not any effort here to ignore the issues that are raised by lower income elements of our population. If in fact that is a problem for our transportation system, for getting people to and from their jobs, particularly where they have no discretion, we should address that straight up. It may mean that we need to find ways of assisting lower income folks in using a transportation system more efficiently if in fact the use of that transportation system more efficiently requires a pricing strategy. We shouldn't be chasing the lowest common denominator because of a problem that we have with some income strata in our society. We should address those problems in ways that respond to those problems, but not sacrifice the efficiency of our transportation system because of them. Mr. DeFazio. So the example is Stockholm, where they have a massive investment in public transit in a region called Europe, where they are much less dependent upon automobiles and have totally different land use and development patterns, and suddenly we are going to apply things that work for the people of Stockholm to the United States and think that they are going to work and they will be popular. You know, maybe I just have too much of a western, U.S. view of the world, but I really don't see that. And what I find is, again, a single-minded push here toward private-public partnerships--if I could, since you raised the issue of not having a problem with what the Committee has stated, because have tried to fairly state the potential benefits, small as they are, of private-public partnerships and the potential pitfalls, huge as they are, of private-public partnerships, especially when you are talking about monetizing existing assets and giving monopoly authority to an entity for up to 100 years to price an asset which is irreplaceable and which you can't compete with in many cases. I would note that the last time I think either you were here or Mr. Duvall was here, we heard that quite soon we would have a little more balanced presentation on the DOT website other than the so-called model legislation, which really points people at the pitfalls and the wrong approach, and it still isn't posted yet. We heard that was imminent. I do note that you could find space to post some articles critical of the Chairman and myself, yet you didn't post a number of articles that are critical of PPPs. It just seems like one-sided advocacy here, like we are making transportation policy out of the Heritage Foundation, and that is not going to be acceptable to a majority of the people either in the Congress or the United States of America. Mr. Shane. There is no question that there is a controversy about all of this. What I see happening across this Country and, frankly, around the world is an increasing recognition that the reliance on government funding for transportation assets is something that we are approaching the end of; it is simply not going to be possible to---- Mr. DeFazio. Well, excuse me, but we are only approaching the end of this because this Administration said no taxes, no user fees, no bonding, no more money; and we had to drag them kicking and screaming to a marginal number. That is why. We are talking about will. It is just like Mitch Daniels saying, gee, there was no will to raise the tolls, until he entered a monopoly agreement; then suddenly he had the will to raise the tolls and now they have absolute discretion to raise the tolls and no one can touch them, it is in a contract. So you are saying there is no money out there, but somehow we can extract money from people through private contract agreements, which include a profit motive, but we can't just get a cost-based--which is without a profit motive--investment by the Federal Government. It goes to will at some point. I know the will isn't downtown. Whether the will is uptown here, at the Congress, we will see in two years. But you can't say there isn't a capability of raising more funds in the United States of America to invest in transit and roads, and I look at, and a number of people have mentioned, Washington State. Washington State just raised the gas tax. They are talking about now raising title fees. My State raised title and other fees. People are willing to accept dedicated taxes when they see a real benefit, the benefits to their transportation and their movement and the economy. This White House and Administration has been totally unwilling to discuss that, but you are obsessed over here with the hundreds of billions of dollars of private money floating around out there. It might not be quite as much as you think if you read the most recent articles in The Wall Street Journal about Macquarie's books, which is starting to look at lot like Enron's. Mr. Shane. Well, Macquarie is one of a great many investment banks that are beginning to look at this new vehicle for investment. I predict that no future administration is going to come out very differently on the issue of public financing of transportation. We know that the entitlement programs are simply overwhelming our budget. That will continue to be the case for a long time. There simply has got to be discipline on the use of government funds, and that is going to be a fact of life for every future administration, not just this one. When in fact there are so many alternative ways of funding transportation assets which produce a calibration of the use of those assets that actually makes them more productive, it is difficult to understand why there is so much controversy about it. Mr. DeFazio. Okay, thanks. We will just have to disagree. As usual, you are in your diplomatic mode here. You know, the calibration of use means we price modest and middle income and low income people off the roads, which are taking up public space, where they have no alternative. I look at this road they are going to build out here. I don't think Members of Congress are going to be able to afford the road at 20 bucks a pop, let alone modest working people So let's go to transit for a moment, and then I will turn to Mr. Duncan. The question for Mr. Simpson, since we are talking about transit does get a minimal little nod here as part of this solution at the end, but it seems to be totally oriented toward bus rapid transit, utilizing private, for-profit HOT lanes. Is that the only vision or are we going to make some progress on new starts, small starts? Are we going to incorporate the mandated economic development and land use statutorily mandated criteria? Because I notice that you have now included non-statutory criteria, which happen to support this privatization congestion management program, and saying, well, if you adopt those, we will give you more points, but if you did the economic development or you did the land use that is required by statute, we can't figure out how to rate that, so we will rate you up for what we want to do, which isn't authorized by law, but we won't rate you for the things required by law. Could you answer that? Mr. Simpson. Could you redirect the question? I am not sure of the question. Mr. DeFazio. Well, the question is when are we going to see the formulas modified to actually incorporate the statutory requirements of economic development and land use, and how is it that you can suddenly add a criteria that isn't statutorily authorized, which is to support this particular program---- Mr. Simpson. Right. You are talking about the Congestion Initiative? Mr. DeFazio.--but you can't get to the economic development and land use. Why is that? Mr. Simpson. Well, let's take the congestion piece first that we are adding to it. That is a sub-component of mobility and it is clear throughout SAFETEA-LU, at least on the transit side, that one of the things we are trying to do is free up congestion. With respect to economic development and land use, we had a stand-alone hearing--I don't know, was it a month ago?--and I promised that the rule would be out by the end of the money, and I apologize in advance that it is not out yet. But after our long hearing we went back and had very robust conversation at the Department, and we are looking for ways to quantify economic development. We are going to be asking the stakeholder community and we do, in our project justification, we do look at land use and we do look at economic development. But Mr. Chairman, I have to tell you it is very hard--I have been talking to economists myself; I have been dragging the folks at DOT. It is very difficult at times to define the difference between economic development and land use. And when you are looking at a national program, if we don't build a transit project, but we build a school instead, but we still have construction, you know, separate all that out. It is really a challenging---- Mr. DeFazio. Right. But we did have an economist sit right there who sketched out ideas for a model, and he did talk about Transportation System User Benefit and Summit Software as a really bad box that is being applied to everything that really distorts the whole system. Mr. Simpson. Mr. Chairman, I spoke to him--I think that was David Lewis. Was it David Lewis? Mr. DeFazio. I---- Mr. Simpson. Okay. Anyway, I spoke to the economist, and he has been to my facility, to the FTA, and he is welcomed back to talk about it further. But even with this cost-effectiveness issue that we talked about before, if a transit project is going to deliver good benefits, there has to be a mobility component to it. So, in a convoluted way, this cost- effectiveness is measuring economic development. We want to get where the Congress wants us to be, but it is a huge challenge, and I promise you we are working towards that. Mr. DeFazio. Okay, thank you. Mr. Duncan. Mr. Duncan. Well, thank you, Mr. Chairman. I have already asked the questions that I wanted to ask, but I will say that, Secretary Shane, you are exactly right on the runaway entitlements in future years. In fact, Dan McFeatters, who is a columnist for the Scripps Howard newspaper chain, wrote a couple years ago and said that we are headed for a financial tsunami shortly after the baby boomers start retiring in large numbers in 2008, and that is going to cut into every department and agency in the entire Government. But what I wanted to get at in this in just a few comments, I mentioned in my opening statement and then in my questions that I think the Congestion Initiative and the urban partnership are good things, and I pointed out that the congestion is not just confined to our older, what we traditionally think of as our larger cities, but also many of the newer, faster growing cities. I think that is all fine, but I also mentioned my hometown of Knoxville, which, if you looked at a population book, you would see, I don't know, it might show 185,000 or something in that vicinity, and you might think, well, the problems there couldn't be that great. But what you have, as I said, you can't tell when you go from the city to the county. Knox County has about 410,000. Then you have got the really fast growth in the counties that touch on Knox County. So you have got close to a million and a half, I think, now in the SMSA. Then you have got between 9 million and 10 million coming to the Smokies, and most of those get off the interstate there at Knoxville. Interstate 75 is the heaviest traveled north- south interstate in the whole Country, so that is many millions there going to Florida, going to Atlanta, other places. You have got Interstate 40, one of the main east-west routes, running right through Knoxville. Then you have the heaviest traveled truck route on Interstate 81 coming to within 37 miles of Knoxville. In addition to that, we live within about 600 miles of over two-thirds of the population. What I am getting at is this. There are some places like Knoxville--I have said in here before in other hearings I generally or many times face much more traffic in Knoxville than I do here. So there are some places whose traffic problems far exceed their populations. And I hope you take that into consideration, because it is just mega-millions there in a place like Knoxville that you wouldn't expect, and it affects all three of your departments and agencies. So I just hope you keep that in mind and take a close look at some of those places. Thank you very much for being with us, and I appreciate your very informative answers to these questions. Mr. DeFazio. Mr. Hayes. Mr. Hayes. Thank you, Mr. Chairman. Gentlemen, thank you for being here. I apologize for being late to the hearing, but there was an occurrence that I read about on Saturday and talked to Mr. DeFazio about. As it relates to congestion, do you all remember the situation in California where the tanker exploded? Did you read the outcome on Saturday of what happened there? The project, if I understand correctly, was scheduled for 50 days. There was a $200,000 bonus for every day that that deadline was beat. Congestion obviously was huge. The contractor, using American steel, Mr. Chairman, and the ingenuity of the marketplace, completed that project in 17 days. So the incentive was the bonus for early completion, as opposed to punitive liquidated damages. I don't know as much as I should, but the results are stunning and very, very positive. What lessons have we learned from that and are there some things here that we can apply to future projects to take advantage again of American expertise, ingenuity, steel, and incentive for performance? Any comments on that would be appreciated. That was a really uplifting article. Mr. Capka. Sir, we are just as excited about the innovation and creativity that was demonstrated by California Department of Transportation in the private sector there in Oakland. Some of the features that were key to that success, first of all, was everybody was focused on a goal that needed to be accomplished, the public-private sector, everybody there was focused on making sure it got done. Secondly, California Department of Transportation used a contracting technique that just unleashed the creativity and the innovation of the private sector. You hit the bonus, $5 million. The winning bid on that project was $800,000. Mr. Hayes. Exactly. Mr. Capka. Because a contractor knew, I can make that bonus, and he set up an arrangement with the steel supplier to have those beams ready to go. California Department of Transportation was calculating that it would take another 30 days, at least, to have the steel onsite, so their expectations were another month to six weeks longer. The contractor saw that incentive, probably shared a little bit of that incentive with the steel fabricator to ensure that the materials showed up onsite, and they had a winning combination. That is the kind of example we are trying to export to other parts of the Country when we see how valuable that is. Mr. Hayes. And I think they saved $1 million. The next lowest bid was 6.8, as I recall. But the more I think about it, it kind of reminds you a little bit of the runway project down in Atlanta that was completed. But this, again, Mr. Chairman and Members, is where we need to be headed as we work to deal with congestion. So get that word out there. Thank you, Mr. Chairman. I yield back. Mr. DeFazio. Mr. Baird, quickly. Mr. Baird. Yes. I would just point out, Mr. Capka, we have spoken before about Buy America. Mr. Hayes cares deeply about this, as do I. He was only able to get that steel because he had a steel fabricator stateside. If he had been dependent on a foreign fabricator who said we don't want to provide it to you, they would have been out of luck. So we need to keep those steel fabricators domestic. Mr. Capka. Sir, that was a great example of solid teamwork there, I agree with you 100 percent. Mr. DeFazio. Well, and I certainly would emphasize what Mr. Baird did. Critical infrastructure materials need to be domestically produced on not just basic materials but, in my mind, obviously, hopefully more sophisticated things like streetcars, which we are trying to pioneer. I would just, in closing, reflect that we have a dedicated funding source. We know that there are some problems with that, but the highway program and transit program, with the exception of the potential shortfall in 2009, has been funded out of dedicated revenues; it is not like other programs which are funded from general funds. The question is can we find an enhanced revenue stream that will be dedicated to those purposes, yes or no. If there is absolutely no way to find one, sure, then we are going to have to cast a broad net for other alternatives. But we have discussed a few of the problems that could come with private-public partnerships and congestion pricing and some of the inequities and other issues that are raised by that, but beyond that you have got to remember many of these assumptions that have gone into Macquarie's perspectives, they have said they are not going to make the money on increased efficiency on the Indiana Turnpike; they are going to make it on toll increases, plain and simple. So you are going to extract the money from people one way or another, and you can extract it from them and include a profit component, or you can do it at cost and serve the general public, or you can have some combination thereof, and I am just saying there is no one-sided answer to this problem. It is a huge problem. The costs of congestion are massive; the waste of fuel is horrible; the loss of time weighs on many people's lives and it hurts business and our competitiveness internationally, and we have got to approach this in a way that doesn't just offer a simplistic and diversionary answer, but a comprehensive approach. I thank you all for your time. We are going to now have two votes, and as soon as the votes are concluded we will have the next panel. With that, the Committee is in recess. Mr. Baker. Mr. Chairman, could I ask him one more question as we are walking out the door? Mr. DeFazio. Yes, go right ahead. Mr. Baker. I was just think about the coordination in that California Department of Transportation project. As we look, everybody here, in their district, has probably a bypass or a highway project that has been kind of slow. If you all could help us to help you coordinate some of the different agencies that are required to line up and sign up before the Monroe Highway 74 bypass can be completed, I think that would be a very positive exercise, because the sheriff and Congressman Baird and Mr. DeFazio and others, everybody has a Highway 74 bypass project. If we could apply the technology and skills that we discussed, that would be really good. Mr. Baird. We have just got to get some tanker trucks to burn up in our own districts, and we will be on our way. [Laughter.] Mr. DeFazio. Now, Mr. Baird, don't. Just one other. I don't want to leave that we are totally at odds here. I do agree that we can attribute 50 percent of the congestion to other than capacity constraints, and I note that you say more attention needs to be paid there. I would like to know what initiatives the Administration is undertaking in those areas. I think we ought to have some sort of clearinghouse. I mean, it seems to me there is a lot of jurisdictions out there that are doing some interesting and innovative things that other jurisdictions might not know about, and if we provided a service of sort of a clearinghouse at the Federal level for everybody to bring in or contribute their non-congestion ideas and make them readily available through a website or something like that, I think it could be very helpful. Mr. Capka. Sir, I will just comment on that very briefly. We do have a program that kind of sits right on target with what you have described, and it is the Highways for Life program. It certainly started out as a program focusing on how to reduce the exposure time of work zones; how can you get in, get out, stay out, and we have been setting up a website that gives these examples of excellence to others to consider so we make them the routine. And it is not just the construction techniques, it is the contracting techniques that we discussed earlier; it is the communications, it is the ITS aspects that goes along with it. So we are very much in line with you on sharing the good work, the good news, the innovation that is evidenced across the Country. Mr. DeFazio. Great. Well, thank you very much. Again, thank you for your testimony. [Recess.] TESTIMONY OF TIMOTHY J. LOMAX, RESEARCH ENGINEER, TEXAS TRANSPORTATION INSTITUTE, MOBILITY ANALYSIS PROGRAM, COLLEGE STATION, TEXAS; PEGGY CATLIN, COLORADO DEPARTMENT OF TRANSPORTATION, DEPUTY EXECUTIVE DIRECTOR; CRAIG STONE, DEPUTY ADMINISTRATOR, WASHINGTON STATE DEPARTMENT OF TRANSPORTATION, URBAN CORRIDORS Mr. Lomax. Thank you very much. I will try to use your time resource wisely. Thank you very much for the opportunity to discuss the future transportation issues and some of the solutions to the problems. I want to make sure you understand from the outset that I haven't really changed any of my views from the last time I appeared before this Subcommittee. I think we have enormous challenges. I think there are some solutions and I think that congestion is only one of the challenges that we face. I also think that Congress can play a very important role in helping Americans get to their schools, their jobs, their health facilities, shops, as well as moving toward a desirable quality of life. I appreciate the chance to appear before you today and I welcome any questions you might have. I want to summarize my written remarks with a few observations. Number one, I think congestion problems are going to challenge the major metropolitan areas as well as the small urban areas and rural areas for many years to come. Travel delays and unpredictable times for people and freight will always be a problem. Certainly smaller cities are also seeing a problem from that as well. I also think it is important to note that some of these solutions don't just address one issue, but safety and congestion, for example, are very integrated, congestion and air quality are very integrated. Solutions that work on one problem also provide benefits on other problems. I think if we think of these as related problems we come very much closer to comprehensive solutions and comprehensive improvements in quality of life and economic productivity. I think we should think about the problems, opportunities and solutions in terms of niche marketing. There isn't a problem or a solution, a problem or a solution, some problems have very clear technology or infrastructure fixes, some can only be solved with better information and some will be best addressed by different policies, programs and financial or institutional arrangements. Some problems require big solutions and big price tags, but other problems require only small change in operations or design. Problems that agencies have found over the years create a lot of benefits for relatively little cost. Perhaps even more importantly, it is these simple ideas, obvious solutions to the public, that make a difference, that build the trust to support the bigger improvement programs. The transparent, data-driven analytical approach typically yields a variety of solutions with a range of cost, substantial benefits and good public involvement is a key to enacting these programs. The projects, programs and policies that each region uses to solve the problems will be different. As you have identified in the past, Portland has a different take on the solutions and the problems than some other places. I think that is a reflection of the diversity that we have in our Country, and I think that is good. I think the strategies are going to be different, depending on where you are within a metropolitan area as well. The same strategies that work downtown are not going to be the same ones that work at the port or out in the suburbs. The range of solutions obviously includes strategies to get more productivity out of this current system. I think they also require programs designed to provide travelers with a choice of travel modes, departure times, pricing and electronic options for trips, tele-commuting, for example, as well as projects to increase person movement and freight movement capacity. In our growing urban areas, we are going to need more capacity. It is also clear that solutions need to be pursued in a comprehensive way that involves the public. In all the fast- growing areas, there is not enough funding to keep congestion levels where they are, much less make improvements. Judging from successful approaches in the past, however, comprehensive strategies that combine investments in things as well as people work very well. The solutions, therefore, I think are broadly defined and integrated in a related combination of operating and maintaining what you have to the best of the ability, providing information and options to travelers, home buyers, businesses and other interested groups so that they make choices to avoid long travel times, whether that is day to day or year to year. Expanding the system where bottlenecks or growth make other options inadequate to meet the goals that the community has set, these are goals the community has set. Monitor the effect of the programs, policies and projects to make operational and design improvements and to provide an accountable and transparent reporting to the taxpayers. So operate it as good as you can, identify options, identify information, identify ways for people to make trips, so that they have the option of changing their trips, and then expansion. Those three things, broadly defined, I think represent a good set of policies and programs. The final element, monitoring the programs, not only has a feedback effect of making the projects better as you go, but they also have the effect of building the public trust. The interrelationship of these factors has been clearly demonstrated. In California and Washington, only two examples have recently received significant funding increases, based on a combination of doing a good job with what they have, providing a clear plan for additional spending, that attacks the problems, and committing to a communication effort that both informs the public about the effects of the programs and is used internally to refine the next set of project designs and operating strategies. The varying amount of extra time travelers and freight shippers have to allow this reliability factor is also important. Improving that can reduce traveler frustration and taxpayer trust. Finally, let me say, I think we know what works. We know the projects, programs, policies that work, we know that there are some institutional reactions that need to take place. Public support and funding are vital to making this work. As my son's baseball coach says, folks, this is really simple, it ain't rocket surgery. He is sort of analogy-challenged in the Yogi Berra sense. But really, transportation is a service. We need to treat travelers and shippers as consumers of that service. Our ability to fund transportation needs rests on our ability to get the most out of what we have and communicate the costs and benefits of those options. Institutional structures, as I said, are organized around policies and programs that deliver reliable service and which prioritize spending around principles and along the lines of getting the most bang for the buck are vitally important. Thank you for allowing me time to express my ideas. Mr. DeFazio. Thank you, Doctor. I now turn to Ms. Catlin. Mr. Catlin. Thank you, Mr. Chairman and Members of the Committee. It is my distinct privilege and honor to be here before you today to tell a little story about a low-cost, easy- to-implement congestion management tool that we in Colorado have utilized just to manage our infrastructure better. We are one of the fastest growing States, and a western State as well, and we are pretty proud of our ability to implement this project. Actually, the Colorado Department of Transportation received a value pricing pilot grant in the late 1990s in order to implement such a tool. We did a study that identified I-25 from the central business district of Denver up to U.S. 36, about a seven mile stretch, as that HOV lane in the Denver Metro area that would best be suited for a conversion to an HOT lane that our general assembly mandated in legislation in 1999. As we planned the project, we embarked upon a public process, a number of focus groups, public opinion, surveys, and processes, meeting with stakeholders, etc., in order to best convert this project and to meet the public's needs. As you can see on the map, this project, as envisioned, as from the central business district of Denver, north about seven miles to U.S. 36. It is reversible, it is barrier-separated, two-lane facility, and, quite frankly, at the time it was greatly under- utilized. The goal was to really optimize this section of road by allowing solo drivers the ability to pay a toll and buy access to this existing facility. Next, please. There are many stakeholders involved. They are listed here; I won't identify them. But we very, very carefully crafted interagency agreements in order to protect the public's interest. Next. This is a picture of the facility. You can see that it is barrier-separated, and the general purpose lanes. It is between the general purpose lanes of I-25. Next, please. How does it operate? Basically, as I mentioned, solo drivers and HOV lanes can utilize either lane except as the point of toll collection; and there is only one point of toll collection, about the midpoint of the seven mile facility. And at that point, but only at that point, solo drivers must be in the dedicated express lane in order to pay an electronic toll. HOV lanes must be in the dedicated HOV lane and signs--it is pretty clear where they need to be as they maneuver through the lanes. Next, please. It is all open roll tolling; it is electronic toll collection only. We were very, very fortunate to have some existing public highway authorities in the Denver Metro area with over 15 years of experience, and we capitalized on their experience and lessons learned. It is electronic toll collection only. Because they had over 400,000 toll tags or transponders in existence, we were able to capture some existing market share, and we contracted with them to do back office operations and provide all the services in terms of electronic toll collection and violation processing. In so doing, we minimized any need for additional staff, any additional government, any additional FTE and kept our overhead costs pretty low. Next, please. It really is the way we manage traffic congestion, we have a hierarchy of use. The primary use is transit; the second priority of use is carpoolers; and the third priority of use is solo drivers. And we manage the influx of solo drivers by managing the price of the toll that the users pay. Next, please. This is the initial toll rate structure. You will notice that in the peak period there is a toll rate that is paid of $3.25. We negotiated with our transit agency, our partners, and we agreed that if someone were to pay a toll, they would pay no less than the express fare for an express bus service for the same trip. We wanted transit to be very competitive, and we didn't want people to choose to pay a toll over the possibility of using transit. Next, please. But we also had to ensure that transit and HOV had no degradation of service, so we put together very, very strong metrics to ensure that there would be no degradation of that transit service. By doing that, we measure each and every bus trip into and out of the downtown area. There are about 6500 buses per month that make a trip on that facility. We measure the travel time as they enter and the travel time as they exit, and if they drop below a trip that would be maintained at the posted speed limit, then we measure that. I am pleased to report that other than incidents such as snowstorms, we are operating at over a 99 percent success rate in the bus trips that are there. Next, please. We also developed a comprehensive incident management plan that encompasses not only our express toll lanes and our HOT lanes, but also the general purpose lanes on I-25, and we worked with incident responders, has a courtesy patrol and everything, and there are protocols that were established, so it is very effective. We also wanted to make it very onerous for cheaters, so we have a pretty high, pretty steep fine if you are caught violating in the HOV lane. Next, please. Some unique challenges. The challenges were very unique in implementing this, but it did require a very concerted public process: reaching out to stakeholders and a promise that we would measure performance and find out what the actual usage was. Next, please. Many of you mentioned that it would provide a predictable choice. It is flexible. Drivers can use any lane; they can opt for transit, HOV, or they can choose to pay a toll. It is environmentally responsible and it is sustainable. Next, please. Performance. We have exceeded our expectations. We are very pleased to say that not only have toll paying customers increased, but HOV performance has increased as well, and it is somewhat of a byproduct of our advertising in advance. People said, wow, I didn't even know that there was an HOV lane that I could use for free. And it is optimizing the use of the real estate in that about 16 percent of the person trips on I-25 that are taken daily are taking those lanes and they are operating at full highway speeds without congestion. They are sometimes enjoying as much as a 10 to 20 minute travel time savings, as opposed to those in the peak hour who are sitting in congestion. Next, please. And also, although it is not the primary purpose, it has certainly been a benefit that we have seen a much greater influx of revenues than we had predicted. It is not supposed to be a money maker, but what we did, we availed the transit agency of their obligation for maintenance on those lanes. They had previously spent about $350,000 a year in snow plowing and sweeping. Through the collection of tolls, we are now able to cover all those expenses, and they, in turn, have an additional $350,000 to use for transit service elsewhere, or to enhance their service. Furthermore, the State had the obligation of about $700,000 in maintenance that they had to bear for pothole patching, sign replacement, striping; and we are now, through the collection of user fees, able to offset those costs. And because we are so under-funded in our maintenance activities in Colorado, we are able to use those elsewhere in the system as well. We exceeded our first year revenue and our first year traffic by about two and a half times, and we just celebrated our first anniversary of opening on June 2nd, and we call it the little project that could. It is not a huge--and I also want to say that it is about an $8 million investment, and that included the first two years of operating. We are going to be able to recover that, pay back that loan, as well as cover all of our operations and maintenance expenses. Thank you. Mr. DeFazio. Thank you. Mr. Stone. Mr. Stone. Good afternoon, Mr. Chairman. It is a pleasure to be here and testify before your Committee. I am Craig Stone with the Washington State Department of Transportation, where I am a Deputy Administrator for our Urban Corridors Office. What this is is an office in the Seattle area dealing with the seven most congested or most controversial corridors that we have there. I provided to you written testimony, to you and your staff, as well as what we call a folio of low-cost/high-benefit congestion relief for better highway management that our secretary, Doug McDonald, has put forward and has spoken to. If I could, I would just like to talk to a few points. Clearly, what you have heard today, our challenge is great and it is a major issue. In Seattle, the polls constantly say congestion traffic is the number one issue for them. With that, we are trying a balanced approach. We actually have a major investment program going on that you have heard about in Washington State with our nickel and nine and a half cent gas tax. We also have a major transit component going on transit, and this November we hope to have another ballot measure. So clearly there are major investments happening. I am here today to also say that we need to make sure that we are getting the most productivity out of those investments, and doing that is how we will operate and manage our system that we have, both where we are making improvements and where there are needs. You have also heard today about congestion happens. About half of it is reoccurring congestion; half of it is non- reoccurring. If I could just speak quickly to the reoccurring congestion. People think of delay, but, importantly, we actually lose half of our capacity of productivity during congestion. We have Interstate 405, which is one of our beltways, and instead of moving 2,000 vehicles an hour through that, we will only move 1,000 when we need it most. So how do you get the most productivity is really my focus here. We also need to think about the customer as getting information to them and reliability, because sometimes, an hour trip could be there, where other days it could be a 20 minute trip. Clearly, that is important. Low-cost/high-benefit congestion relief comes through better management. We are using tried and true examples. Things have been done other ways, but for 30 years we have had rent metering in place. We have about 150 rent meters, over 150 miles of what we call data collection. Obviously, traffic signalization, synchronization is very important. You get a 40 to 1 benefit out of that investment that you make in doing that. Those are really good things. Non-recurrent delay: incident response teams. We actually have 40 incident response trucks that then travel our facilities to then respond to incidents because one minute of congestion can give you ten minutes of delay. So there is a huge return on that, and we work closely with the State patrol and emergency responders, and even put incentives for our tow truck operators to clear the incidents quickly. Construction work zone management I have spoken to earlier. We are doing more and more of early planning, including putting early what we call ITS out before the project, transit before the project, and not making it the last thing that we construct during a project. And then traveler information, I think now with the web- based systems, portable devices, is extremely important and giving them accurate information so they can make good choices on their mode, where they are going to do their route, their travel time, and including one time all of our websites had 14 million hits in one day just from that. So you can see the usage of that. Moving on, we are using the tried and true examples in Washington State and other places in the Nation, and Federal highways has been a big supporter of ITS, and we appreciate that. I have also participated with some States--Virginia, Texas, Minnesota--as well as Federal Highway staff to go to Europe. We heard a little bit about Europe here. But we want to add on, we are right now studying how can we add some of the management systems that they have there, which are speed control, lane harmonization, kind of the end of your congestion warnings, possibly even opening up shoulders to only during your peak hours; and with that we are seeing potentially great return on safety, and then safety then means return on congestion and congestion relief. So, with that, we are looking for flexibility from the Federal Highway Administration and flexibility in our funding that we might be able to test some of those applications. My last point comes a lot to the previous session you had also, but for our future, even with the major investments we are making in the Central Puget Sound area and across the State of Washington, we think we need bold solutions, and part of that comes to the open road tolling that you just heard about. We are opening up, on July 15th, our Tacoma Narrows Bridge, and that will include about 70 percent of the users will be using these good-to-go tags. They are the size of a credit card, put in your windshield, and then your account will be credited for that, and that is clearly for payment and payment back of the bonding for that particular project. That same good-to-go tag will be used for what we are having as our pilot, our State Route 167 HOT lane, which will be a nine mile pilot where we are taking an HOV lane and converting it over, and we are going to test with our public, our users. But, again, one customer focus, one device so they can use our system. Value pricing is important also to our future, and from the standpoint, as I understand today, that our State Route 520 project was part of the short list of the UPA, and in that we are looking at the opportunity to not only look at how we might be able to bond the project and be able to make tolls for a bridge replacement, but how would we vary the tolls to maximize the throughput at the same time. So we are looking at two initiatives at the same point at that place. Clearly, with these systems, choices is very important. The choices of the route, the mode, time of day; will I take transit today, will I go in my single car, will I go in my HOV. We hear about the soccer moms. There are great examples in San Diego of what they observed, and that is why we want to do our pilot for four years, and we will test it, we will assess it, and then we will be able to look at our performance through that. In closing, the Federal support for enhancing ITS systems, along with this European active traffic management flexibility for the States to look at value pricing I think is important. Having a balanced approach where we are making infrastructure improvements, we are looking at how they will operate not only of year opening, but 20 years out; how they then tie in with bus rapid transit, telecommuting, all lead to the best practices, the best productivity from our systems operation and management. Thank you for the time to be here and look forward to any questions you might have. Mr. DeFazio. Thank you. Thank you all for your testimony and for sharing your ideas. I assume that you all were here during the first panel, and it seems what Colorado is doing is a very different model. You had an under-utilized asset and you priced it to bring on new users to actually more optimally utilize it, which is sort of the opposite about what most of the rest of the discussion with the first panel, particularly Mr. Shane, was about, which is we are going to keep pricing the asset until we drive enough people off it that it works more efficiently. I don't know what exactly the question is, but I think you were probably in a fairly unique position. There probably aren't too many urban areas or urbanizing areas or heavily utilized areas where they actually have that kind of capacity that they could try--they want to induce more people onto it by having them pay to get a privilege. Are you aware of anybody else who has had this opportunity? It is almost the inverse of what we are talking about No? Dr. Lomax? Mr. Lomax. I believe Miami is pursuing a similar option with some of their HOV lanes. Again, HOV lanes that are under- utilized are a perfect analogy here. I think the key is that Colorado DOT was able to get with their partners and make sure the public understood what the benefit here is. It is not that we are allowing a whole bunch of people into the lane and it is going to become congested, and you folks who are doing sort of the societally right thing by riding a bus or car pool are going to get penalized; it is we have got a whole bunch of extra capacity here, we can handle a lot more people, and let's take advantage of that. We don't have many under- utilized resources; let's see if we can get this one to carry more people, but at the same time not degrade the service. Mr. DeFazio. Right. Do you anticipate a point at which, with the growth, where you might bump up against the capacity of that? And then would you, at that point, consider variable pricing in order to deter people? Ms. Catlin. Actually, we delayed implementing a dynamic pricing strategy until people got accustomed to it, but, yes, we would implement a dynamic pricing strategy that would ensure that people that were using the lanes, whether it be transit car pools or solo drivers, would have an unrestricted trip, an uncongested trip. So we will be raising the price if enough solo drivers come in to start creating delays for the buses or something. Mr. DeFazio. But right now you have equity, basically, between the people that are using the bus rapid transit or the buses that are utilizing these lanes and the single occupant vehicle, is that correct? Ms. Catlin. That is correct. Right now, the single occupant vehicle actually pays 25 cents more than a transit trip in the same route. The transit route would stay the same. If they decide to raise their bus fares, then we would accordingly raise the peak hour trip for single occupant vehicles. But if it becomes congested, then we are required to work with our transit partners to figure out a pricing strategy that would work. But we are going to be implementing dynamic pricing in the next couple of years. But we still, when there is no congestion in the adjoining lanes, we drop the fare to 50 cents. Mr. DeFazio. For any of the panelists, just given some of the concerns, societally, how is it--in your case, you have an equivalent option. I can choose to pay 25 cents more, drive my single occupant vehicle; I can take the bus rapid transit. But that is, again, a fairly unique, almost direct match. Whereas, in many cases, for someone to piece together a trip from a suburban area perhaps through an urban area to another area where they have to work, we don't provide those sorts of transit options. Then when you start pricing, how do we deal with that issue, Dr. Lomax? I mean, are we creating some-- basically, what is the message to that person, change your job or move? Mr. Lomax. Well, I think that is what we have been telling them for 50 years. Mr. DeFazio. Right. Mr. Lomax. We got mortgage deduction on your income tax and all kinds of policies that sort of make it easy for people to buy a house out in the suburbs. People had moved to the suburbs; the shops and the jobs had moved there as well, and how we have got this suburb-to-suburb commute that is much more difficult to handle with sort of the traditional infrastructure-based transportation systems. I think that is why you need a whole range of strategies targeted at what the problems are. California's big investment program is oriented around corridors to try to get high volume, high demand corridors to work really well; spot improvements, fixing the bottlenecks; adding transit where that makes sense. But again, you have to recognize that transit isn't going to work everywhere. Those low-density suburbs are very difficult to serve with transit, so having either a much less intensive form of transit, combined with some flexible work hours and telecommuting possibilities and ride share, sort of day-to-day trip making ideas and making the system operate better; getting the signals coordinated, those kinds of things. They are all strategies that work; we just have to figure out where they are best suited. Mr. DeFazio. Yes, Ms. Catlin. Ms. Catlin. As we look at maybe expanding our system a little bit further, we are looking to expand it in concert with transit, and on some of the highly congested corridors where we are looking at adding capacity with a managed lane option, we are working in concert with our transit provider. Right now, they are not necessarily providing bus service between suburb- to-suburb because their buses are sitting in congested traffic. If we were to provide a priced option for solo drivers, they would consider increasing their transit service along that corridor. So every time we look into this or plan for this, we are trying to do it in concert with buses, and we already have a policy that we struck with our transit agency that buses would always go free. So we have tried to use this as a model if we go forward on any other corridors. Mr. DeFazio. Is this a public transit agency? Ms. Catlin. Yes, public transit agencies. Mr. DeFazio. We have been really focused on individual users, and I guess the other side of this we haven't talked much about today is freight mobility, as congestion relates to that, and I am not sure, again, that the Administration's advocacy for congestion pricing is going to be particularly applicable or help us really resolve the sort of bottleneck problems and things we have with freight movement, and I am interested in any ideas any of you have on dealing with our freight mobility problem. Yes, Mr. Stone. Mr. Stone. If I could, one of the observations we had overseas with Germany, they would open up their shoulders during these peak hours and actually the freight was one of the highest uses of those outside shoulders. And as we look at one of our corridors, that is one thing we are looking at and will be testing, is if you can open that up, you actually get about 25 percent increase in capacity for that period when you need it. It may be able to address some of those peaks and keep the freight moving. So, again, a test area, something on the future. Obviously, in Atlanta, with a truck on the toll lanes--and that has been a test, trying to consider what that would be, but obviously I am not the person to speak to specifics of that. Mr. DeFazio. Just on using the shoulders, I mean, the question becomes you are going to have to have some awfully well stationed and quick removal of breakdowns, or you are going to have some big problems or accidents, potentially Mr. Stone. And that is what my message would be. Systems operations and management is everything comes together; incident response, early detection, responding to that, being able to lower the speeds in advance of a congested area so you don't have rear-end accidents that then create secondary accidents. You can do a lot if you really use the technology that we have. Our generations are growing up with technology, and that is part of the future, to put that in place. And then with that, then we look at other smaller strategies that can fit into it. Mr. Lomax. I would think that what Craig is talking about in terms of the best incident management program is to keep the incidents from happening, so to the extent you can keep people from running into each other at the back of a queue or sideswipe collisions or entrance ramp traffic flows, the ramp metering really has a huge beneficial effect at just sort of spacing out the cars that get to the freeway, so you are preventing collisions. But then very rapid response that is provided in many States to incidents when they happen. Houston has a program where tow trucks are contracted to operate on the freeways and are responsible for a six minute response time. When they get there, they pick up the car and they haul it away. They don't worry about doing minor engine repair on the side of the freeway; they get it out of the way. It has led to more than a 10 percent reduction in collisions just on the freeway. But to your issue of the freight mobility, I think the truck only toll lanes idea is a good one. Again, it is not a ubiquitous kind of program, but if you focus toll lanes on ports or intermodal terminals or big truck volume flows, I think the trucking companies are going to find out that they are going to save these large amounts that Administrator Simpson was talking about in terms of their productivity. There is an enormous benefit there for them. So I think that is a part of it, but I think also, as your business community in Portland has found, that the port is a vital component of travel and you are not going to put containers onto light rail trains. You have got to do something about roads that serve the port area, or the economic engine begins to die away. Mr. DeFazio. Well, that is a point I would like to find a way to deal with in the next reauthorization, is sort of what I call a least cost approach to transportation investment, and we would heavily weigh factors like congestion, fuel consumption. Right now we are talking a lot about carbon footprints, all those sorts of things. But we have a rail system that is at capacity in the West, for the most part, privately operated. We have public highways that are at capacity, and the question becomes does it make more sense to build another lane mile on I-5 or would it make more sense maybe for some sort of public-private, truly public- private partnership to enhance the railroad to double tracks so we can get some of those containers and freight off the highway. Any innovative thinking or ideas you have in that area would be welcome. You don't have to respond now, but if you think about it and get back, because right now we have got sort of the chimney approach. Okay, this isn't the rail Subcommittee, as you noticed, so they are off doing different things, and we are not really--I mean, if we want to be truly fuel efficient and perhaps cost-efficient, it looks to me like there has got to be a lot more utilization of rail for movement of freight. Mr. Lomax. I think Mr. Stone talked about the flexibility as an option. I think that is really what many States in Metro regions are looking for, and even long distance regions like the Administration has heard from in their corridor plan. They are looking for ways to be able to move money and move decision making sort of out into the open and be able to invest in projects that make sense sort of no matter what stovepipe or what institutional arrangements have existed in the past. So anything that you all can do I think would be greatly appreciated and would unleash some of that creative power. Mr. DeFazio. I would like to get there, so if anybody else has any thoughts about that, I would appreciate them. I don't have any other questions and I see no other Members present. Unless any of you feel there is something you would like to comment on that has gone on during today or something else you would enlighten the Committee with? If not, then I would again thank you for your time and your testimony, and this Committee is now adjourned. 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