    [Budget of the United States Government]
    [III. Creating a Better Government]
    [9. Transportation]
    [From the U.S. Government Publishing Office, www.gpo.gov]

                               9.  TRANSPORTATION

      ----------------------------------------------------------------------

                               Table 9-1.  Federal Resources in Support of Transportation
                                                (In millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                                   Estimate
                   Function 400                   2000   -----------------------------------------------------------
                                                 Actual     2001      2002      2003      2004      2005      2006
    ----------------------------------------------------------------------------------------------------------------
    Spending:
      Discretionary Budget Authority..........    15,172    18,912    16,836    17,790    18,190    18,558    18,970
      Mandatory Outlays:
        Existing law..........................     2,107     2,219     1,796     2,046     1,982     1,913     1,890
    Credit Activity:
      Direct loan disbursements...............       323       403       709     1,109     1,542     1,993     2,221
      Guaranteed loans........................       886       634       418       218       218       218       218
    Tax Expenditures:
      Existing law............................     2,090     2,220     2,370     2,520     2,670     2,840     3,010
    ----------------------------------------------------------------------------------------------------------------
    Discretionary Budgetary Resources ........    49,668    57,261    57,736    60,099    61,449    62,790    64,195
    ----------------------------------------------------------------------------------------------------------------

      ----------------------------------------------------------------------
      The security, economic prosperity, and social well being of the Nation
    are dependent on the efficient movement of people and commerce.
    America's transportation system is an indispensable component in moving
    people and goods. Our transportation system must enable the Nation to
    sustain its economic growth and enhance the quality of life for all
    Americans. In 2002, the Federal Government will invest over $57 billion
    on transportation to continue to improve the Nation's transportation
    system, build and maintain the transportation infrastructure, and ensure
    safety for the traveling public.
      Significant investments have been made in Federal transportation
    infrastructure in recent years. The challenge the Administration and the
    Department of Transportation (DOT) now face is how to maximize the
    effectiveness of new investments and ensure vigilant management and
    oversight of taxpayer resources. DOT plans to target its efforts on a
    number of unresolved critical transportation problems over the next year
    in the areas of tire and truck safety, aviation system modernization,
    Coast Guard fleet replacement, and highway grant oversight and
    accountability. (See Chart 9-1.)

    Transportation Safety

      Ensuring transportation safety is one of the highest priorities of the
    Federal Government. This budget continues Federal efforts to work with
    State and local governments and private groups to minimize the safety
    risks inherent in transportation. DOT leads efforts to regulate motor
    vehicle design and operation; inspect commercial vehicles; design,
    build, and operate safer roadways; educate the public regarding safety;
    direct air and waterway traffic; rescue mariners in danger; monitor
    railroad safety; and conduct safety research. The budget recommends $7.3
    billion for safety programs to meet this challenge.
      A range of Federal programs and activities has helped to reduce the
    number of deaths and injuries from highway crashes. Federal programs
    reach out to State and local partners, industry, and health care
    professionals to identify the causes of crashes and develop new
    strategies to reduce deaths, injuries, and the resulting medical costs.
    These partnerships yield results. For example, the partnership against
    drunk driving helped the Nation hold alcohol related highway fatalities
    to an estimated 38 percent of all highway deaths in 2000. And, efforts
    continue to

    [[Page 70]]

    reduce the roughly 41,000 deaths and three million injuries that occur
    each year on the Nation's roadways.

      Highway and Truck Safety: The budget includes $196 million for the
    National Highway Traffic Safety Administration (NHTSA) Operations and
    Research program. Along with coordinating national traffic safety
    efforts such as increasing seat belt use, NHTSA regulates the design of
    motor vehicles, researches design improvements for crash worthiness, and
    investigates reported safety defects. In 2002, safety defect
    investigations will continue to focus on improved defect testing,
    database modernization, and enhanced consumer complaint processing.
    NHTSA will also concentrate its efforts on updating the tire safety
    standard and increasing crash data collection to capture information
    regarding tire failure. In 2002, NHTSA will distribute $223 million in
    highway traffic safety grants that target increased seat belt use,
    decreased alcohol-related fatalities, and efforts to improve State
    safety data. Additional programs are designed to reduce drunk and
    drugged driving, and focus on reducing injuries and fatalities among
    minorities and youth, and in rural communities.
      In partnership with the highway community and NHTSA, the Federal
    Highway Administration (FHWA) works to identify top roadway and vehicle
    safety issues and countermeasures. In 2002, safety construction programs
    will contribute an estimated $765 million to correct unsafe roadway
    design, remove roadway hazards, and fund other safety construction
    programs.
      Highway safety programs are targeted to reduce the rate of highway-
    related fatalities and injuries per 100 million vehicle miles traveled
    (VMT). In 2000, NHTSA estimated that there were 1.6 fatalities per 100
    million VMT, and 119 highway-related injuries per 100 million VMT. The
    Department's 2002 goal is to:

    [[Page 71]]

       Reduce the rate to 1.4 highway-related fatalities per 100
              million VMT and 111 highway-related injuries per 100 million
              VMT.
      The Federal Motor Carrier Safety Administration (FMCSA) prescribes
    motor carrier safety regulations and conducts interstate enforcement
    efforts to enhance motor carrier safety. FMCSA also collects motor
    carrier safety data and reviews safety operations. States will continue
    to receive dedicated funding to heighten oversight of commercial (e.g.,
    large truck and bus) license, vehicle, and driver inspection at roadside
    locations in an effort to keep unsafe vehicles and drivers off our
    Nation's highways. The budget includes $183 million for grants to States
    to enforce Federal and State standards for commercial motor vehicle
    safety inspections, traffic enforcement, and compliance reviews.
      To ensure that trade between the United States and Mexico, under the
    North American Free Trade Agreement, is accomplished safely, the budget
    includes $88 million for additional inspectors and $56 million for State
    funding for construction and operation of border safety inspection
    facilities. An additional $17 million is included for information
    systems and strategic initiatives aimed at improving motor carrier
    safety and $5 million is provided to continue a comprehensive study on
    commercial motor vehicle crash causation initiated in 2001. One of the
    prime highway safety goals of FMCSA is to:
       Reduce the number of motor carrier fatalities to no more than
              4,710 in 2002.

      Aviation Safety: Perhaps the Federal Government's most visible
    transportation safety function involves air traffic control and air
    navigational systems. The Federal Aviation Administration (FAA) provides
    air traffic service to over two flights per second, moving 1.8 million
    passengers safely each day. In 2002, the FAA will perform nearly 325,000
    safety-related inspections. The budget includes $6.9 billion for FAA
    operations and $2.9 billion for capital modernization. In total, a 6.7-
    percent increase over 2001. FAA seeks to:
       Achieve an 80-percent reduction in the fatal accident rate
              for U.S. commercial air carriers by 2007. The 2002 target is
              .038 accidents per 100,000 departures. While FAA's annual
              targets may fluctuate due to the limited number of accidents,
              they generally follow a downward slope to the 2007 80-percent
              reduction goal.
       Reduce the number of runway incursions with a target for 2002
              of 236 incursions. In 2000, there were 403 incursions, up from
              330 in 1999. To counter the increase in runway incursions, the
              FAA has identified and established strategies under its Runway
              Incursion Program 2000 Blueprint.

      Coastal Waterway Safety: The Federal Government plays a key safety
    role on our waterways. On average, Coast Guard efforts result in the
    rescue of one life every two hours. The Coast Guard works to improve
    maritime safety by preventing incidents and mitigating the effect of
    accidents. In 2000, the Coast Guard saved 93 percent of all mariners
    reported in imminent danger. To accomplish this, the Coast Guard
    operates radio distress systems, guides vessels through busy ports, and
    operates reliable and safe navigation systems. It also regulates vessel
    design and operation, enforces United States and international safety
    standards, provides boating safety grants to States, and supports a
    35,000-member voluntary auxiliary that provides safety education and
    assistance to regular Coast Guard units. The budget includes more than
    $4 billion for Coast Guard operations and capital, a 12-percent increase
    compared with 2001. With this funding, the Coast Guard seeks to:
       Limit the number of recreational boating fatalities to less
              than 742 in 2002. In 2000 there were 742 recreational boating
              fatalities in our coastal regions and inland waterways.

      Rail Safety: The budget includes $154 million in 2002 for Federal
    railroad safety programs that work in partnership with the rail
    industry. The Safety Assurance and Compliance program brings together
    rail labor, management, and the Federal Government to determine causes
    of safety problems. This partnership has produced results: record low
    levels in the number and rate of overall rail-related fatalities and
    injuries. In 2000, the fatality level was the lowest level since 1981.
    The Federal Railroad Administration seeks to:

    [[Page 72]]

       Reduce the rate of rail-related fatalities to 1.20 fatalities
              per million train miles or less in 2002. In 2000, the rate was
              estimated to be 1.29 fatalities per million train miles.
       Reduce the grade crossing accident rate in 2002 by 0.35
              percent compared with 2000.

      Pipeline and Hazardous Material Safety: Similarly, the Federal
    Government has implemented several important initiatives in its pipeline
    safety program to reduce the risk of pipeline failures. These include
    oversight and enforcement of recently strengthened Federal pipeline
    safety standards, assistance to communities in protecting their citizens
    from pipeline failures, expanded partnership with States, and research
    and development efforts. The budget includes $54 million for pipeline
    safety programs, a 15-percent increase above 2001. The Research and
    Special Programs Administration, through its Office of Pipeline Safety,
    seeks to:
       Reduce the number of natural gas transmission pipeline
              failures by almost four percent since 1999 to no more than
              4,301 failures in 2002.
       Reduce the spillage rate of hazardous liquid materials
              shipped by pipelines (in tons) per million ton-miles to 0.0142
              in 2002. In 2000, the spillage rate was 0.0131.
      The Federal Government also develops regulations and standards to
    ensure the safe transportation of hazardous materials, and enforces
    those standards for every mode of transportation. The budget includes
    $113 million for hazardous materials safety programs, an eight-percent
    increase over 2001. The Federal Government seeks to:
       Reduce the number of serious hazardous materials incidents in
              transportation to 391 or fewer in 2002. In 2000, there were an
              estimated 396 serious hazardous material incidents.

    Infrastructure and Efficiency Investment

      Mobility as much as any other factor defines us as a Nation. It
    connects people with work, school, community services, health care,
    markets, religious facilities, and other people. The U.S. transportation
    system carries over 4.6 trillion passenger miles of travel and 3.9
    trillion ton miles of freight every year--generated by more than 276
    million travelers and six million businesses. The Federal Government
    helped develop large parts of the system, with funding supported by user
    fees and transportation taxes. Investment is targeted to maintaining and
    improving the existing system while at the same time advancing safety,
    quality, efficiency, accessibility, and the intermodal character of
    transportation infrastructure. This investment ensures the Nation will
    meet commerce needs and enhance its efficiency. The budget includes
    $42.3 billion in mobility funding to meet this challenge.

      Highways and Bridges: More than 958,000 miles of roads and bridges are
    eligible for Federal support, including the National Highway System
    (NHS) and Federal lands roads. For 2002, the Transportation Equity Act
    for the 21st Century (TEA-21) provides $31.6 billion for the Federal-aid
    highway program. About 90 percent of these funds are distributed to the
    States by formula, primarily for highway-related projects, including the
    preservation and expansion of eligible roads and bridges. This funding
    comes from Federal motor fuel and truck taxes, mainly the gasoline tax,
    which is currently 18.4 cents per gallon, of which 15.44 cents goes into
    the Highway Trust Fund's Highway account to finance grants to States and
    local governments for highway related repair and improvement.
      In aggregate, State and local governments provide 63 percent of
    highway and bridge infrastructure spending, most of which they generate
    through their own fuel and vehicle taxes. The average State gasoline tax
    was approximately 20 cents per gallon in 2000. State and local
    governments accelerate their infrastructure projects through debt
    financing, such as bonds and revolving loan funds. FHWA will work with
    State and local governments in 2002 to:
       Maintain 95 percent or more of NHS miles in a condition that
              meets pavement performance standards for acceptable ride
              quality. The NHS carries one trillion, or 43 percent, of all
              vehicle miles traveled.

    [[Page 73]]

               The condition of the system affects public safety, wear-and-
              tear on vehicles, fuel consumption, travel time, congestion,
              and comfort. In 2000, the estimated percentage was 94 percent.
       Hold the growth in average annual hours of extra travel time
              due to delays over 30 minutes to a total of 34 hours in 2002.
              In 1999, the individual urban traveler experienced an average
              32 hours of extra travel time due to delays. Without projects
              that improve traffic flow, this would grow to 35 hours of
              extra travel time. Clearly, traffic congestion is a problem
              which DOT will need to devote increasing attention.
       Reduce the percentage of bridges on the NHS that are
              deficient--from 21.5 percent in 2000 to 21 percent in 2002.

      Transit: As with highways, the Federal Government assists State and
    local governments to improve mass transit. Of the Federal motor fuels
    tax, 2.86 cents per gallon goes to fund mass transit improvements.
    Federal capital grants comprise about half of the total spent each year
    to maintain and expand the Nation's 6,000 bus, rail, trolley, van, and
    ferry systems. Together, States and localities invest over $3.5 billion
    a year on transit infrastructure and equipment.
      Federal funding growth has been substantial. In 2002, TEA-21 provides
    $6.6 billion for transit infrastructure. The Federal role is especially
    important in financing new urban bus and rail transit systems, as well
    as rural bus and van networks. Millions of Americans use transit for
    their daily commute, easing roadway congestion and reducing air
    pollution. Many riders depend on public transportation to access
    employment, schools, healthcare, and social services. Transit can also
    provide economic opportunity. For example, the Job Access and Reverse
    Commute program helps provide transportation services in urban,
    suburban, and rural areas to assist welfare recipients and low-income
    individuals reach employment opportunities. The Administration proposes
    to target transit funding to communities with the greatest need. To
    ensure that local governments play a major role in funding transit ``New
    Starts,'' the budget recommends a cap on Federal participation at 50
    percent starting in 2004. The Federal Transit Administration seeks to:
       Increase transit ridership to 47.5 billion passenger-miles
              traveled in 2002. In 2000, transit rider ship was 45.3 billion
              passenger-miles traveled.

      Innovative Financing: There are a number of financing innovations
    designed to streamline procedures, improve existing programs, and
    implement new ideas for improving the Nation's transportation
    infrastructure. In total, these initiatives are helping advance over 200
    projects, representing a total capital investment of more than $20
    billion. For example, there is the Transportation Infrastructure Finance
    and Innovation Act (TIFIA) program, authorized by TEA-21. TIFIA provides
    Federal credit assistance to major transportation investments of
    critical national importance, such as: intermodal facilities, border
    crossing infrastructure, highway trade corridors, and transit and
    passenger rail facilities with regional and national benefits. In 2000,
    $37 million of TIFIA budget authority supported $637 million in credit
    assistance. In 2002, an estimated funding level of $108 million should
    provide for as much as $2.4 billion in credit assistance.
      Passenger Rail: The budget includes $521 million in 2002 to support
    Amtrak capital improvements and equipment maintenance. The Federal
    Railroad Administration seeks to:
       Increase Amtrak's intercity ridership to 26.7 million
              passengers in 2002. In 2000, 22.5 million passengers rode
              Amtrak. Amtrak ridership in 2000 was an all-time annual
              record, reflecting a 4.7-percent increase over 1999.
       Amtrak's financial condition will demand continued oversight by DOT.

      Aviation and Airports: The Federal Government seeks to ensure that the
    aviation system is safe, reliable, accessible, well integrated, and
    flexible. In 2002, the Administration will continue aggressive
    modernization of FAA air traffic control equipment, including the
    development of new technologies and instituting improvements to existing
    systems to decrease air traffic delays. The Free Flight Phase I program
    is implementing air traffic automation aids that allow controllers to
    use airspace and runway capacity more efficiently.

    [[Page 74]]

     In addition, FAA is developing controller pilot data link and Global
    Positioning System technologies to improve efficiency in handling
    aircraft. Ongoing replacement of airport surveillance and beacon radar
    systems will improve the reliability of equipment used for air traffic
    control.
      About 3,300 airports throughout the country are eligible recipients of
    Airport Improvement Program (AIP) funding provided in the Aviation
    Investment and Reform Act for the 21st Century, which reauthorized this
    program. AIP helps enhance airport capacity, safety, security, and noise
    mitigation. These funds augment other airport funding sources, such as
    bond proceeds, State and local grants, and passenger facility charges
    that airports are permitted to establish. With 98 percent of the
    population living within 20 miles of a public airport, most people have
    excellent access to air transportation. The budget includes $6.9 billion
    for FAA operations and $2.9 billion for modernizing air traffic control
    capital assets--in total $619 million, or seven percent, more than 2001.
    To ensure the most ``bang-for-the-buck,'' the Administration is
    proposing to modify the Essential Air Service (EAS) program. EAS, which
    provides subsidies to air carriers serving small airports, would be
    targeted only to communities with limited transportation alternatives
    and which face great distances to air carriers. The Federal Government
    seeks to:
       Reduce the rate of air travel delays to 171 delays per
              100,000 activities in 2002. In 2000, the rate of air delays
              was 250 delays per 100,000 activities.
      While the FAA is funded at historically high levels, the
    Administration recognizes that substantial reform is necessary to make
    the aviation system more efficient. Current levels of aviation delay are
    unacceptable. The Administration supports efforts to institute improved
    business practices, organizational changes, and market-oriented
    techniques to strengthen FAA's operations and reduce system delays,
    recognizing the role of airlines and airports. As part of this effort,
    over the next year the Administration will work with the aviation
    community and Congress to develop a plan of action for improving the
    Nation's aviation record. In particular, the Administration will examine
    the success that various nations, including Canada, have experienced
    with individual air traffic control systems owned and operated by
    private companies.

      Marine Transportation and Law Enforcement: For our Nation's commercial
    shipping infrastructure, the Coast Guard establishes and operates
    electronic and visual aids-to-navigation infrastructure that enables the
    safe movement of shipping. This includes ensuring that winter shipments
    such as fuel oil arrive without delay. The Maritime Administration and
    the Coast Guard are co-leading a joint cooperative effort with other
    Federal, State, and local government agencies and the private sector to
    review the Nation's Marine Transportation System (MTS). The MTS is faced
    with growing levels of demand, shifting and competing user requirements,
    and safety and information system improvements. The Federal Government
    seeks to:
       Limit the number of days that critical waterways are closed
              due to ice to no more than two days in an average winter. In
              2000, there were no waterway closures due to ice conditions.
      As a military service with civil law enforcement missions, the Coast
    Guard plays an important role in maritime security, through enforcement
    of a wide range of Federal laws on the Nation's waters. The budget
    provides new funding for the Coast Guard to continue implementation of
    the Western Hemisphere Drug Elimination Act and to recapitalize its
    fleet of aircraft and ships under an initiative entitled Deepwater. The
    Coast Guard's deepwater acquisition plan will be an Administration
    management and procurement initiative over the coming year. This
    procurement will be monitored carefully to ensure that Federal funds are
    efficiently and productively spent. These efforts will enhance drug
    interdiction efforts and improve the Coast Guard's capability to:
       Reduce the rate at which illegal drugs successfully enter the
              United States from the transit and arrival zones by 10 percent
              as compared to the 1996 base year.

    [[Page 75]]

       Hold the flow of undocumented illegal migrants entering the
              United States via maritime routes to no more than 13 percent
              of estimated entry attempts.

    Research and Development

      The Federal Government has a role in developing transportation
    technology. Federal research helps build stronger roads and bridges,
    design safer cars, reduce human error in operations, lower barriers to
    people with disabilities, and improve the efficiency of existing
    infrastructure.

      Smart Roads: The Department's Intelligent Transportation Systems (ITS)
    program is developing and deploying technologies to help States and
    localities improve traffic flow and safety on streets and highways. ITS
    provides cost-effective ways to improve the management of our
    infrastructure, boosting efficiency and capacity. The Federal Government
    seeks to:
       Increase the number of metropolitan areas with integrated ITS
              infrastructure from 52 in 2000 to 61 in 2002.

      Aviation Research: The FAA's research, engineering, and development
    programs help improve safety, security, capacity, and efficiency in the
    National Airspace System. For example, the development of improved
    weather forecasting and modeling tools will help reduce delays and
    prevent accidents and injuries caused by aircraft icing and turbulence.
    In 2002, the budget includes work on the impact of fatigue on
    performance and determining the causes of human error that lead to
    accidents. Work will continue on aircraft safety and fire protection
    methods that explore new ways to reduce the risk of aircraft fires and
    new inspection techniques to detect flaws in aging aircraft. Security
    and explosive detection systems research will develop machines that
    process baggage more rapidly and provide new technology for passenger
    and cargo screening. Research will continue on reducing aircraft noise
    and emissions.
      The National Aeronautics and Space Administration (NASA) coordinates
    closely with FAA to develop new technologies that address challenges to
    growth in the Nation's air-aviation system in the areas such as air
    system safety, aircraft noise and emissions, and airport system
    congestion. For example, NASA will be undertaking a Virtual Airspace
    Modeling project to produce an advanced computer-model of the Nation's
    air traffic aviation system. This model will help the FAA and NASA
    develop new operational concepts and better understand where the
    benefits of new technologies will have the greatest leverage in reducing
    airport crowding and delays, while improving aviation safety.
       DOT, NASA, the Department of Defense, and private industry
              will work together on research to achieve an 80-percent
              reduction in the fatal aviation accident rate for commercial
              air carriers by 2007 (from a 1994-1996 baseline of 0.051
              accidents per 100,000 departures). Research will focus on
              preventing equipment malfunctions, reducing human error, and
              ensuring the separation between aircraft and potential
              hazards.

    Regulation of Transportation

      Federal rules greatly influence transportation and constitute one of
    the key ways the Federal Government achieves desired transportation
    safety, mobility, accessibility, equity, and efficiency outcomes. In the
    past two decades, economic deregulation of the railroad, airline, and
    interstate and intrastate trucking industries has reduced costs for
    consumers and shippers, while improving service.
      The Federal Government also issues regulations that promote safer,
    cleaner transportation. The regulations--of cars, trucks, ships, trains,
    and airplanes--have substantially cut the number of transportation-
    related deaths and injuries, improved the safe handling of hazardous
    materials shipments, and helped reduce the number of oil spills.
       Where regulations are used to meet our transportation safety,
    security, equity, and environmental goals, the Government aims for
    rulemakings that are timely, cost-effective, and make common sense.