[Federal Register Volume 61, Number 116 (Friday, June 14, 1996)]
[Notices]
[Pages 30276-30279]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-15163]



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DEPARTMENT OF TRANSPORTATION
[Docket Number: OST-96-1447]


ISTEA Reauthorization Policy Statement and Principles

AGENCY: Office of the Secretary, Department of Transportation.

ACTION: Notice of policy statement and principles that will be used to 
guide the development of a legislative proposal for the reauthorization 
of the Federal surface transportation programs.

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SUMMARY: The Intermodal Surface Transportation Efficiency Act of 1991 
(ISTEA) authorized funding for surface transportation programs through 
September 30, 1997. Those programs and the implementing statutory 
authority which are contained in ISTEA are core elements of the Federal 
surface transportation policy and programs administered by the 
Department of Transportation.
    Transportation is vital to our economic prosperity and quality of 
life. The United States is facing major challenges in providing safe 
and convenient travel, serving new patterns of freight shipments and 
changing regional populations, and taking advantage of the explosion of 
information technology that holds the promise of better transportation 
at lower cost. If we are to remain competitive in the global 
marketplace and maintain our quality of life, we must meet those 
challenges. As America increasingly becomes part of a larger global 
economy, transportation will only become more important to our standard 
of living.
    To that end, the Department of Transportation has begun a process 
which will lead to a proposal for reauthorizing the major surface 
transportation programs. As a first step, the Department has developed 
a policy statement that identifies national challenges to global 
marketplace competitiveness and quality of life and outlines a set of 
reauthorization policy principles. The principles set out the broad 
objectives that the Administration hopes to achieve or strengthen 
through the reauthorization proposal.
    An essential and important part of the development of the 
Department's reauthorization proposal will be consultation with the 
transportation community and other interested parties. It is hoped that 
the policy statement and principles will provide a starting point for 
those discussions. The Department recently initiated a series of 
regional forums which will continue over the next several months to 
determine how our programs and policies should be shaped to meet the 
challenges we face. Hopefully, these efforts will help us to design 
Federal surface transportation programs that responds quickly and 
effectively to the changing demands this Nation will face in the 21st 
century.

DATES: Comments on the policy statement and principles are welcomed. To 
be most useful, comments on these issues should be submitted no later 
than August 30, 1996.

ADDRESSES: Three copies of comments for the public docket on the ISTEA 
Reauthorization Policy Statement and Principles should be sent to: 
Office of the Secretary, Documentary Services Division, C-55, Attn: 
ISTEA Public Docket OST-96-1447, Room PL 401, 400 Seventh Street, S.W., 
Washington, D.C. 20590.

FOR FURTHER INFORMATION CONTACT: Questions on the ISTEA Reauthorization

[[Page 30277]]

Policy Statement and Principles also can be directed to:

Mr. Frank Kruesi, Assistant Secretary for Transportation Policy, Room 
10228, 400 Seventh Street, S.W., Washington, D.C. 20590, Phone: (202) 
366-4544.
Mr. Stephen Palmer, Assistant Secretary for Governmental Affairs, Room 
10408, 400 Seventh Street, S.W., Washington, D.C. 20590, Phone: (202) 
366-4573.

SUPPLEMENTARY INFORMATION:

ISTEA Reauthorization Policy Statement and Principles

    Transportation has been vital to America's economic prosperity and 
quality of life since the Nation's founding. From the colonial post 
roads and canals that expanded our frontiers, to the railroads and 
Interstate highways that linked a growing country, and to the mass 
transit systems that made possible the development of our great cities, 
transportation has opened up new markets and enabled the quick, 
economical movement of people and goods that powered our economy's 
growth.
    More than $700 billion dollars annually--an eighth of America's 
economy--is devoted to transportation products and services: Everything 
from auto manufacturing to air travel to freight shipping. One in ten 
Americans is employed in the industries which provide these goods and 
services, and all of us depend upon them.
    As the national economy becomes more fully integrated and as 
America increasingly becomes part of a larger global economy, 
transportation's role will only become more important. In recent years, 
transportation has dramatically increased productivity, with major 
benefits for business and consumers. We need to continue--and 
accelerate--this trend. In the face of growing competition at home and 
around the world, businesses simply cannot afford the costs imposed by 
an inefficient transportation system. This is especially true as they 
rely on effective transport to make logistical innovations such as 
``just-in-time'' delivery systems work properly.
    However, our national and regional transportation systems face 
growing travel demand, inadequate capacity, and bottlenecks and poor 
connections between different forms of transportation. These conditions 
pose challenges that, if unmet, could slow economic growth and reduce 
our international competitiveness. Nor should Americans have to endure 
the costs and disruptions that an inefficient system imposes on their 
own lives. Americans depend upon smooth-flowing, seamless 
transportation to get to work or school, to shop, and to provide the 
products they buy in stores. When these systems do not work as 
intended, Americans pay the price in lost time, higher prices, or 
diminished opportunity.

Challenges

    If we are to remain competitive in the global marketplace and 
maintain our quality of life, we must aggressively meet at least four 
national challenges: (1) Safety, (2) continued growth of traffic and 
travel and its attendant congestion, (3) environmental concerns, and 
(4) demographic changes.

1. Safety

    We have made great progress in the face of increasing travel. Even 
so, motor vehicle crashes are the leading killer of America's youth. 
After years of steady decline, total highway deaths are increasing. 
These increases came prior to the repeal of speed limit and motorcycle 
helmet provisions. Transportation deaths and injuries place a huge 
burden on our economy--an estimated $140 billion annually. Through 
Medicare and Medicaid, much of this burden falls directly on the 
American taxpayer. Reversing this trend will be a challenge requiring 
Federal leadership.

2. Travel Growth

    Traffic congestion in the Nation's 50 largest cities costs 
travelers more than $40 billion annually. Delays are likely to increase 
over the next two decades as travel nationwide increases by some 60 
percent--delays that translate directly into costs to businesses which 
ultimately are passed to consumers and that also rob Americans of 
precious personal time.

3. Environment

    Nearly one-quarter of the areas that failed to meet ozone standards 
in 1990 have been reclassified as ``attainment'' areas by the 
Environmental Protection Agency. But many of our largest cities are 
still having problems meeting air quality standards. We must maintain 
our efforts to reduce air pollutant emissions in light of the continued 
rise in vehicle miles and the threat posed by global climate change.

4. Demographic Changes

    Mobility for older Americans as well as those with disabilities is 
a critical need. The elderly are the fastest growing component of the 
U.S. population. More than six million Americans are over 85; that will 
increase 400 percent by 2050. The majority of this population is 
accustomed to relying on self-operated automobiles, and as they grow 
older, their special transportation needs will require national 
attention.
    Transportation also affects, and is affected by, the increasing 
dispersion of land use patterns and cultural and demographic change. 
Although the shift to the Sun Belt has slowed, immigration is expected 
to continue, as is domestic migration from urban areas to smaller towns 
and the new ``edge cities.'' Among the effects of this shift from 
central cities to the surrounding areas are more, and longer, vehicle 
trips as people choose to live farther from the places where they work 
or shop.
    America's transportation needs are being addressed aggressively by 
the private sector but the efforts of all levels of government are also 
required. As President Clinton recently pointed out, the Interstate 
Highway System brought Americans closer together, connecting region to 
region, city to city, and family to family in ways that were undreamed 
of a half-century ago. That same spirit has always been a driving force 
for government investment in transportation.
    From the Nation's earliest days, government has supported 
transportation development: Building roads and canals, providing land 
for railroads, and financing airports, water ports and mass transit 
systems. Government at all levels now invests more than $40 billion 
annually in surface transportation infrastructure alone, with 
additional billions spent on operating and managing those systems.
    Much of this support has been authorized through a series of 
legislative initiatives setting policy guidance and providing funding 
for highway, transit, and safety programs. The most recent of these, 
the Intermodal Surface Transportation Efficiency Act of 1991 (known as 
ISTEA), authorizes Federal programs in these areas for fiscal years 
1992-1997.
    Through ISTEA, not only have we invested more, we have worked with 
state and local government to invest better. Americans are getting more 
for transportation dollars because ISTEA provided a strategic 
investment framework. It did so through stronger planning requirements 
and through programs such as the National Highway System, completion of 
the Interstate System, and transit capital investment that focused 
resources on national priorities. ISTEA's authors also had the vision 
to create programs, such as the Surface Transportation Program, that 
provided unprecedented flexibility to

[[Page 30278]]

state and local officials and helped assure that transportation 
investments would meet the unique needs of their communities.
    ISTEA's authority expires in October 1997, and the Department of 
Transportation has begun to consider what form the successor to ISTEA 
should take. This statement outlines some of the major principles that 
the Department believes should be the basis for this next authorizing 
bill.

Policy Principles

    ISTEA's successor should be based upon principles that will sustain 
a strong, globally-competitive economy and ensure the mobility, safety 
and well-being of our people. The following are several key principles 
that serve as a framework for the deliberations on this legislation.

1. Promote Economic Prosperity

    America needs a well-connected transportation system that is 
economically efficient and that provides the foundation for us to 
compete in the global economy. Moving people to jobs, transporting raw 
materials to manufacturers, and distributing products to market in ways 
that are timely and economical are fundamental to our prosperity and to 
Americans' well-being. Post-ISTEA legislation should continue the 
emphasis on ISTEA's ``E'': efficiency.

2. Improve Quality of Life

    Transportation directly affects our access to activities, goods, 
and services which we value, defines the very shape of our communities, 
and determines our ability to take advantage of social, economic, and 
cultural opportunities. Post-ISTEA legislation should facilitate the 
transportation improvements Americans need to improve their daily 
lives.

3. Improve Safety

    Travel inevitably places us at some risk. Given the high economic, 
social, and personal costs of crashes and other incidents, safety must 
be government's highest priority in transportation. ISTEA made great 
progress in improving the public's safety, and its successor must 
continue to improve safety and set standards that are reasonable.

4. Enhance the Environment

    The air we breathe and the water we drink are affected by 
transportation, as are the cultural, historic, and natural resources 
that define us as a Nation. ISTEA was a major step forward in 
preserving and protecting them, and its successor must ensure that we 
continue to protect the environment and account for the full costs of 
transportation decisions that affect air, water, and such nonrenewable 
resources as wetlands and energy.

5. Ensure National Security

    A sound transportation system is necessary to ensure America's 
national security. Both national defense and our ability to respond to 
disasters and other emergencies depend upon our system of highways, 
railroads, airports, and ports for the movement of essential equipment, 
supplies, and personnel. Post-ISTEA legislation must strengthen this 
vital aspect of our preparedness.

Building Blocks

    As planning begins for ISTEA reauthorization, we need to identify 
aspects of ISTEA that will continue to help us shape a transportation 
system for the 21st century. These basic building blocks will help us 
identify the specific steps we must take to move in the directions laid 
out in the policy principles described above.

1. Promote Intermodalism

    Better modal choices and improved connections between modes can 
provide a unified, interconnected transportation system that meets the 
demands of travelers and shippers by making the parts of the system 
work better together to provide alternatives suited to a variety of 
transportation needs. Reauthorization must continue the progress toward 
intermodalism--so modal categories of the early 20th century do not 
dictate the transportation system of the future. Post-ISTEA legislation 
should ensure that ISTEA's ``I''--intermodal--remains a focus of 
Federal policy.

2. Improve Planning and Public Participation

    ISTEA also brought new players to the table. And a more inclusive 
process does yield real results--in the form of better, more feasible 
and publicly acceptable plans. The fiscal constraints ISTEA applied to 
transportation plans means they reflect the reality that real planning 
requires hard choices based on realistically available funding. There 
should be no question of turning back. We must continue to guarantee 
that investment decisions are the product of an inclusive planning 
process--an informed political decision.

3. Empower State and Local Officials

    ISTEA created flexible programs, such as the Surface Transportation 
Program and the Congestion Mitigation and Air Quality Program, and 
increased state and local officials' ability to target funds to 
projects that made sense for their communities. They responded 
enthusiastically to increased flexibility; more than $2 billion has 
been flexed. And by their own actions, these officials have 
demonstrated a commitment to even greater flexibility. ISTEA's 
successor should further empower these officials to invest Federal 
funds in the projects that best meet their needs, possibly including 
areas in which their investment is currently limited, including perhaps 
rail and intermodal projects.

4. Strengthen Partnerships

    Drawing upon the strengths and perspectives found at all levels of 
government and in the private sector, from both passenger and freight 
transport, can enhance the decision-making process and assure that 
transportation meets present and future needs. ISTEA strengthened the 
traditional Federal-state partnership and expanded it to include local 
governments, metropolitan planning organizations, and the private 
sector. Partnerships must be forged with other countries as well. As we 
compete in a global economy, it is essential that we work to improve 
transportation that facilitates the effective movement of our Nation's 
goods and its people. Post-ISTEA legislation should build upon these 
partnerships.

5. Encourage Performance Management

    Performance management is a way of getting at the question raised 
by the National Performance Review: ``How can we get government to work 
better and cost less?'' Performance management, with its outcome-
oriented goals and clear measures, is a positive and flexible way to 
manage transportation. Greater reliance on performance management will 
allow us to maintain accountability for use of public resources while 
reducing cumbersome rules that delay improvements and add to costs. It 
will encourage strategies--such as preventive maintenance and 
Intelligent Vehicle Systems technologies--that, in some cases, improve 
the performance of the existing system more efficiently than new 
construction alone.

6. Promote Innovative Financing

    Competition for scarce public resources continues to intensify. 
ISTEA offered new opportunities for cutting red tape that delays 
projects, for involving the private sector, and for financing 
transportation improvements through tolls and other innovative means. 
Our Partnership for

[[Page 30279]]

Transportation Investment program jump-started innovative financing 
suggested by ISTEA. The establishment of transportation infrastructure 
banks builds upon this progress. ISTEA's successor should continue 
these efforts to create new ways of paying for the transportation 
systems America needs.

7. Encourage New Technologies

    Cleaner, safer, and more efficient transportation has often come 
because of new technologies--some entirely new, such as the automobile, 
and some that have made previous advances safer or more efficient, such 
as seat belts. Continued development and use of advanced technology is 
vital if such progress is to continue. Under ISTEA, the Federal 
Government renewed its emphasis on applying technology to improve 
safety, system capacity, and travel times. Investment in research and 
development has been expanded, both through increased funding and 
through new partnerships with the private sector. The successful 
Intelligent Transportation Systems and Global Positioning Satellite 
systems deployments are products of such initiatives. Post-ISTEA 
transportation legislation should continue this commitment.

8. Encourage Better Infrastructure Investment and Management

    Continually improving the performance of infrastructure investment 
programs is always essential, but especially so in an era of limited 
public funding. ISTEA's successor should encourage state and local 
officials to base investment decisions on systematic cost-benefit 
analysis, and to adopt operational, maintenance, and pricing practices, 
that maximize the efficiency of, and return on, investment, as 
described in the Executive Order, Principles for Federal Infrastructure 
Investments.

Meeting the Challenge

    ISTEA is visionary legislation. Its central elements--strategic 
infrastructure investments, intermodalism, flexibility, 
intergovernmental partnership, a strong commitment to safety, enhanced 
planning and strategic investment--should be preserved.
    The forces shaping the debate over the role of government in our 
society will influence the reauthorization debate. What is the Federal 
role in surface transportation infrastructure? What has worked under 
ISTEA--what has not? What can we do to improve our safety record? How 
can we increase our resources? How can we benefit more from the fiscal 
resources we have? Should we expand eligibility for Federal funds, for 
example to rail and intermodal projects?
    Most of these questions require further study and discussion. But 
in one case--the Federal role--the answer is clear. We need strong 
Federal leadership. Efficient national cargo movement is key to our 
ability to benefit from expanding trade opportunities. Truckers and 
other freight operators need national uniformity in facilities and 
regulatory standards. We also need national consistency if we are going 
to move forward with deployment of new technology. We cannot achieve 
other key national priorities--linking Americans to jobs, health care 
and education--without efficient and accessible transportation. And the 
challenges we face in the areas of safety and the environment do not 
stop at state borders.
    As we tackle these difficult questions, the policy principles and 
building blocks outlined in this statement should guide us. Our goal 
for reauthorization is to develop a proposal for the next century that 
allows our Nation to preserve our competitive advantage throughout the 
world and maintain the well being of our citizens.

    Issued this 10th day of June 1996, in Washington, DC.
Frank Kruesi,
Assistant Secretary for Transportation Policy.
[FR Doc. 96-15163 Filed 6-13-96; 8:45 am]
BILLING CODE 4910-62-P