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Who Should Foot the Bill for Sandy’s Damage to Tracks and Train Tunnels?

Water rushing into the Hoboken PATH station through an elevator shaft last night. Photo credit: Port Authority of New York and New Jersey

As the East Coast surveys the damage from Hurricane Sandy, cities are still struggling to get their transit systems back up and running.

In New York City, there is no firm timetable for restoring subway service after train tunnels were flooded with a surge of saltwater, in what New York MTA Chair Joe Lhota has called the most devastating event to ever strike the subway system.

In Philadelphia, SEPTA is slowly bringing back service on subway and bus lines. The regional rail system is down at least until tomorrow, with the majority of the damage apparently from downed trees. Amtrak has also continued its suspension of service on the Northeast Corridor, with repairs pending on the track and signal systems, as well as the removal of trees and other debris.

New Jersey Transit was hit hard, with “major damage on each and every one of New Jersey rail lines,” according to Governor Chris Christie, including washouts along the North Jersey Coast Line and at Kearny Junction, as well as flooding at rail hubs in Secaucus, Hoboken and Newark Penn Station, according to the AP. It could be seven to 10 days before PATH train service is restored.

DC’s metro came back online at 2:00 p.m. today, and there was no major flooding or damage reported to Baltimore’s and Boston’s transit systems.

One early estimate pegged the total damage caused by the storm at more than $20 billion, with insured losses at about $7 billion. Infrastructure repairs figure to account for a substantial portion of the costs. With transit agencies and local governments still feeling the fiscal squeeze, who will foot the bill?

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FHWA Helps Cities and Towns Land Bike/Ped Funding

American cities and towns should get a leg up on using federal funds to make streets safer for biking and walking, thanks to rules enacted yesterday by the Federal Highway Administration.

Projects like this pedestrian bridge in Austin, Texas, which are built by local agencies, will get a boost from new FHWA rules. Photo: National Transportation Enhancements Clearinghouse/R.E. Martin

MAP-21, the current transportation law, was passed hurriedly enough that not all the i’s could be dotted and t’s could be crossed — and some of those details simply aren’t the business of Congress to work out. It’s up to U.S. DOT to put a finer point on many of the provisions in the bill. The agency is still struggling with a lot of them and has, admirably, opened the door to significant public input to help them put meat on MAP-21′s bones.

Some of the details came out yesterday, with FHWA’s guidance on the Transportation Alternatives program, which replaced the popular Transportation Enhancements program as a major funding source for bicycle and pedestrian projects.

America Bikes was quick with its analysis of the pros and cons of the new rules, and chief among the good news is that the guidance preserves local control over bike/ped funds by denying states eligibility for TA funds.

The disappointing provisions in MAP-21 haven’t gone away. TA money still gets split down the middle, with half going to cities and towns and the other half going to the states. And state DOTs can still have the option of either running a competitive grant program with their half of the funds, or “flexing” their entire portion to whatever they want. But states can no longer apply to their own grant programs, clearing the way for greater local access to these funds.

“If you make a contest with your own rules, and you apply to it, who’s going to win?” said Mary Lauran Hall, spokesperson for America Bikes.

Primarily, the rule means that if a state decides to use its TA funds on bike and pedestrian infrastructure, local agencies will have a greater say in how the funds get spent. But it won’t just prevent state bike/ped projects from competing against city bike/ped projects. One of the most disappointing changes in MAP-21 was that states can now spend TA funds on environmental mitigation for road building. Those tend to be big, expensive projects that can elbow crosswalks and bike lanes out of the running. This rule seemingly negates that option, unless the state finds a local agency to sponsor the environmental mitigation project.

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Will Transportation Investments Keep Up With the Way Americans Travel?

Phineas Baxandall is a senior analyst at the U.S. Public Interest Research Group.

It’s now common knowledge that annual changes in the volume of driving no longer follow the old patterns.

For 60 years, the amount of vehicle miles traveled (VMT) rose steadily. Predicting more driving miles next year was like predicting that the sun would rise or that computer chips would be faster. The only direction seemed to be up.

Then, after 2004, per-capita VMT fell 6 percent, which has led to a decline in total VMT since 2007.

The most recent data are from July, traditionally America’s biggest month for driving. In July 2012, Americans clocked over 258 billion miles behind the wheel, a billion fewer miles than the previous July despite a slightly stronger economy and cheaper gasoline. In fact, you’d need to go back to 2002 to find a July when Americans drove fewer miles than July 2012.

Has America’s long increase in driving turned a corner or just taken a prolonged pause? The answer matters a lot. Consider four scenarios:

Graph: Phineas Baxandall, U.S. PIRG

  1. If the volume of annual vehicle miles traveled switches back to the average rate of increase between 1987 and 2005, then by 2025 VMT will be 27 percent greater than the 2012 level.
  2. If VMT changes at the average rate it sustained over the entire period between 1987 to 2012, then it will grow by almost 19 percent by 2025.
  3. If instead VMT changes at the average rate that has prevailed since 2004, then the number of miles driven will fall 2.3 percent by 2025.
  4. And if VMT changes at the average rate that has prevailed since 2007, then VMT would fall off by almost 8 percent by 2025.

Table: Phineas Baxandall, U.S. PIRG

The difference spanning these scenarios amounts to over a trillion vehicle miles per year. How we decide to invest in transportation should be very different, depending on which scenario we are planning for – especially since the roads, railways and other infrastructure we build today will be with us long past 2025. Continuing to build new highways at the current pace might arguably make some sense if driving were to return to pre-2005 rates of growth. But those outlays indisputably would be a colossal waste if more recent trends prevail.

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Five Factors That Will Determine Whether TIFIA Benefits Transit

Phineas Baxandall is a senior analyst at the U.S. Public Interest Research Group.

Is Crenshaw light rail the beginning or the end of TIFIA financing for transit? Image: LA Metro

Last week, Transportation Secretary Ray LaHood touted his department’s $545.9 million TIFIA loan to construct Los Angeles’ 8.5-mile light rail transit line along the Crenshaw corridor as “just one example of how DOT’s TIFIA credit assistance program extends the value of America’s transportation dollar.”

But will public transit financing really be the future of the Transportation Infrastructure Finance Innovation Act (TIFIA) loan program?

TIFIA has been politically popular partly because people see their own hopes reflected in its broad mandate to provide “innovative” financing through low-interest loans and lines of credit for transportation. Both chambers of Congress offered major increases to TIFIA, while virtually every other program in the last transportation bill saw cuts or level funding. From $122 million for the program last year, the new transportation law provides $750 million this year and $1 billion the next. Groups that had urged the elimination of dedicated federal funding for transit cheered TIFIA’s expansion, while Senate EPW Committee Chair Barbara Boxer triumphantly declared that TIFIA would leverage $50 billion in transportation finance and bring salvation for Los Angeles’s larger regional transit plans. Many transit advocates and metropolitan planning organizations point to the new money as evidence that their long-fought efforts to improve the otherwise uninspiring transportation law weren’t in vain.

There’s reason to be skeptical and also reason for hope. Past TIFIA financing went mainly to highways and private toll roads. New first-come-first-serve rules make it even less likely that future TIFIA assistance will reach non-highway projects, but other rule changes expand the kinds of transit projects eligible under TIFIA.

Five questions will determine what kind of program TIFIA becomes, and five recommendations can help build a better TIFIA. First, the questions…

  1. Will the backlog of highway proposals get a head start?

    TIFIA’s old criteria included sustainability and livability, but the new law rewards speedy applications as long as they are complete and eligible. The legislation makes it easier for transit and other multimodal projects to become eligible, but money may not be available once they apply.

    The first letters of interest received by TIFIA this summer lacked even a single transit, bike, or pedestrian proposal — and they “could just about tap out TIFIA’s FY2013 budget authority,” according to the Public Works Financing Newsletter. The first letter received was another “bridge to nowhere” proposal for Alaska, followed mostly by Texas highways that probably couldn’t have cut the mustard under the previous, more stringent TIFIA selection criteria.

    A first-come-first-serve application process favors toll road proposals, like those from Texas, that have been shopped around for years in different forms. It’s not clear how much selection criteria will be imposed between submitting letters of inquiry and being invited to submit an application. But transit projects will face a more complicated and untested process, as well as the need to coordinate with the government entities whose sales, property or other taxes will be used to pay back the loans. TIFIA’s acronym may come to mean Tolling Is Faster In Applications.

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Federal Housing Administration Clears Way for More Walkable Development

Over the last five years America has seen an historic housing downturn, but the prevailing trend hasn’t sapped demand for walkable, urban development, especially in many larger metros.

This walkable development in Atlanta was denied FHA funding, under antiquated restrictions, because plans contained too much retail. Photo: Congress for the New Urbanism

Until recently, however, Federal Housing Administration regulations made it difficult for developers to provide the kind of housing consumers are demanding. Now, thanks in large part to the efforts of groups like Congress for the New Urbanism and the National Association of Realtors, the feds are revising outdated regulations that have hampered the growth of mixed-use housing.

Last month, FHA loosened a restriction that forbade government-backed loans from supporting condominium projects that contained more than 25 percent commercial space. New rules will allow credit to flow to projects with up to 35 percent commercial space — or 50 percent in certain cases where the developer applies for an exemption.

“This is one indication that FHA is making big strides,” said CNU spokesperson Benjamin Schulman. “We view this as the first step in this long process to reform the regulation.”

Next CNU would like to see the commercial share threshold raised for multi-family housing projects administered by HUD, he said.

Better Cities and Towns reports that the restrictions on commercial space were grandfathered in from the 1930s, when mixed-use buildings were placed in a higher-risk category. Since then, a “form follows finance” phenomenon, led by federal agencies like FHA, helped turn America into a nation of  suburban, single-family-housing dwellers.

According to the LA Times, the new rules could be a big boost for the nation’s condo market, which has been performing well below expectations.

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How MAP-21 Allocates Transpo Funds Where They’re Needed Least

Who wins and who loses when political wheeling and dealing takes the place of sound decision-making on transportation? Graphic: CAP

Transportation reauthorizations have typically not been a time for major discussions about national policy goals. They’ve been a time for getting while the getting’s good, a time for deal-making and pork and a lot of back-room transactions to make sure every member of Congress could go home and talk about how much federal money they were bringing home.

If MAP-21 accomplished anything it was to change that conversation. It eliminated earmarks – no small feat, as the previous transportation bill, 2005′s SAFETEA-LU, was one of the most heavily-earmarked pieces of legislation ever. MAP-21 also eliminated funding formulas, which used to hold up every bill for at least a year or two as Congress members tried to manipulate the numbers to benefit their states. And the bill also eliminated the “equity bonus” program, which ate up 22 percent of transportation funding in 2010 and was, at its heart, the exact opposite of everything reformers are seeking in the transportation bill. The explicit purpose of the equity bonus program was to reallocate billions of dollars to where the money was not needed — and it was the biggest funding program by far in SAFETEA-LU, accounting for nearly $10 billion in 2010.

Unfortunately, although MAP-21 eliminated these inefficient calculations, it froze in place the funding levels that politicians arrived at through this wheeling and dealing. The new law based state-by-state allocations on the share of the total pie each state got in 2009 – and that share was determined by how well the state fared in flawed funding formulas and the equity bonus program.

Donna Cooper and John Griffith at the Center for American Progress just published a report called “Highway Robbery,” lamenting the fact that the equity bonus isn’t truly dead – its legacy still haunts our transportation funding system.

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Will Cuomo Spend Bike-Ped Funds on Bike-Ped Projects?

With MAP-21 taking effect today, city and state transportation advocates are calling on Governor Cuomo and the New York State Department of Transportation to devote all of its federal bike-ped funds to walking and cycling infrastructure. The coalition of just over 100 groups is also asking that the state make available millions of dollars, allocated as part of the prior federal transportation bill, to such projects before the funds must be returned to Washington.

MAP-21 decreases overall bike-ped funding by 30 percent, explains the Tri-State Transportation Campaign in a media release, and gives governors the authority to take up to half of the bike-ped pool for highways and bridges. Representing transportation, environmental and health interests, the groups want the state to use 100 percent of federal “Transportation Alternatives” funds for bike and pedestrian projects. A letter to Cuomo and the DOT also asks that localities be granted the opportunity to apply for $30 million in bike and pedestrian funds from the last transportation law, funds that must otherwise be returned.

TSTC reports that, in New York State, total injuries to cyclists from collisions with motorists jumped 12 percent between 2009 and 2010, from 5,405 to 6,058, according to the latest data from the National Highway Traffic Safety Administration. Cyclist fatalities increased from 29 to 36, a 24 percent spike. Pedestrian injuries increased from 15,321 in 2009 to 16,090 in 2010, a 5 percent rise.

“High rates of pedestrian and bicycle injuries and fatalities indicate that all available funds must be used by state and local officials to reduce these numbers,” said TSTC Executive Director Veronica Vanterpool. “Our ‘Most Dangerous Roads’ report found that more than 1,200 pedestrians were killed in the downstate region from 2008 to 2010 — that’s 1,200 reasons to use every available dollar to make our roads safer for all users.”

The Cuomo administration hasn’t shown much interest in traffic safety. Last week, the Department of Motor Vehicles announced a new policy to permanently revoke licenses of motorists with five or more DWI convictions — or three or more DWI convictions in 25 years, as long the motorist has also committed a serious driving offense, such as killing one or more people. Two days later, Cuomo unveiled his “Drivers First” program, which will “prioritize the convenience of motorists and ensure that disruptions are as minimal as possible to drivers at highway and bridge projects across the state.” These initiatives are fairly representative of an administration whose signature transportation project is a multi-billion dollar mega-bridge with no provisions for transit.

“With the stroke of a pen, Governor Cuomo can save lives and improve the health and quality of life of all New Yorkers,” said Brian Kehoe, executive director of the New York Bicycling Coalition. “This is money that gets spent locally, improves the safety of our roads and sidewalks, and creates trails, making our communities better places to live. Leadership is needed to adapt our community infrastructure to 21st century needs.”

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Reminder: Amtrak Subsidies Pale in Comparison to Highway Subsidies

House Transportation Committee Chair John Mica is on a "holy jihad" to curb Amtrak's subsidies. Image: C-SPAN

Mica went after subsidies in this one, and he clearly thinks this is a winning issue. After all, Amtrak has gotten nearly $1 billion a year in federal funds over its 41-year existence. The per-ticket subsidy over the past five years has averaged nearly $51. Mica compared that to other forms of transportation: Using 2008 data, he showed that the average per-ticket subsidy to aviation was $4.28, for mass transit was 95 cents, and for intercity commercial bus service 10 cents.

What’s missing? Highways, of course. Luckily, Amtrak CEO Joe Boardman was on hand to remind him. “In the past four years, the federal government has appropriated $53.3 billion from the general fund of the Treasury to bail out the Highway Trust Fund,” Boardman told the committee. “That’s almost 30 percent more than the total federal expenditure on Amtrak since 1971.”

Considering that about 20 percent of the Highway Trust Fund goes to transit, that’s still more for highways alone over the past four years than Amtrak has ever gotten.

Meanwhile, Amtrak affirmed this week that the rail line covers 85 percent of its operating costs with ticket sales and other revenues [PDF].

Mica did acknowledge in his opening remarks that “almost all forms of transportation are underwritten by subsidies” but didn’t mention roads, despite the massive subsidies road builders receive.

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What Would Happen If Washington Cuts Transpo Funding 35 Percent?

The Republicans have retreated from their insistence on cutting transportation spending by 35 percent to match Highway Trust Fund revenues — for now. But the problem is far from solved. As a reminder of the dangers such a policy presents, the Bipartisan Policy Center and the Eno Center for Transportation put out a new report yesterday on the potential consequences of a 35 percent cut in transportation spending.

Service cuts: The future of transit? Photo: flickr/Dave Longa

The report, The Consequences of Reduced Federal Transportation Investment, follows up another report BPC released in June 2011, called Performance Driven, which argued that if funding is reduced, major policy reforms have to accompany the cut in order to maintain the best of the transportation system, not the worst.

But is this still a conversation worth having? As Republican Transportation Committee staffer Jim Tymon said plainly at yesterday’s report release, “There was an attempt to move in that direction, and there wasn’t the political will to do that.”

Indeed, the conversation quickly morphed into a discussion about the gas tax. After all, if no one wants to cut spending, the other side of the coin is to raise revenues. But, as Tymon reminded the audience: “There isn’t the political appetite to raise gas tax.”

That’s pretty much where federal policy has been stuck for the last three years, since the rejection of Rep. Jim Oberstar’s ambitious, six-year, $500 billion proposal.

One audience member noted yesterday, “We don’t have a revenue problem; we have a political problem.” Rather than seize the opportunity with MAP-21 to address the revenue question, Congress and the Obama administration punted. And addressing the revenue issue is a prerequisite for implementing other major changes to federal policy: As Shin-pei Tsay of the Carnegie Endowment said, “We’re not going to come around to the policy reform unless we really deal with the funding issue.”

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How Highway Spending Could Become as Transparent as Bike/Ped Spending

“There’s an inverse proportion of the size of a transportation program to the amount of transparency,” says Deron Lovaas of the Natural Resources Defense Council. While anyone can easily find in granular detail anything they would ever want to know about where bike/ped money goes, and they can get a pretty good idea of what’s going on with transit capital investments, highway spending is a black box — and that’s 80 percent of U.S. transportation dollars.

Why should this bike/ped path be subject to more rigorous reporting requirements ...

... than this highway? Above photo: National Transportation Enhancements Clearinghouse. Bottom photo: This is Broken

But that could change if an unsung provision of the new transportation bill, MAP-21, is implemented as fully as it should be.

Right now, finding information about highway projects is incredibly hard. Want to find out how much a certain project cost and what money was used to build it? Great. You can search “104(j)” in the Federal Highways Administration website and get reports from 2008 and 2009. Looking for anything less than three years old? Better luck next time, buster. Hoping for a searchable database? Here’s a scanned Excel spreadsheet. I hope you don’t mind that every state reports from a third to half of their spending as “other.” Want to drill down deeper than topline numbers for programs and states? You’re asking a bit much, don’t you think?

Meanwhile, the world is your oyster if you’re curious how states are spending the pocket change devoted to bike/ped. The Transportation Enhancements Clearinghouse lets you filter projects by state, type, and year on a digital database, going all the way back to the start of the Enhancements program in 1992 and updated through 2011.

Curious about the bike lane and sidewalk put in near Santa Fe High School in Alachua County, Florida, in 2009? It cost $86,511 total, consisting of $13,500 in federal funds, $67,963 in stimulus funds and a $5,048 local match. Would you like fries with that?

If only as much accountability were demanded of multimillion dollar highway projects as they were of $86,000 bike lanes.

Thanks to Section 1503(c) of MAP-21, it could get easier to hold states accountable for the highways they build. The section, titled “Transparency and Accountability,” says U.S. DOT will have to make expenditure data for highways and transit publicly accessible, organized by project and state, regularly updated “to reflect the current status of obligations, expenditures, and Federal-aid projects” – and it should be searchable and downloadable. And it should be submitted to Congress.

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