1. IFTA Annual Business Meeting Virginia Beach, VA August 17, 2011 Federal Highway Administration

2. Introduction Overview of Highway Program Funding Overview of FHWA data collection Commission studies Congressional approaches Senate House Future is uncertain

3. Surface Transportation Authorization Administration proposal Congress develops authorizing legislation Legislation is signed into law Program sets limits for funding during life of authorization Congress may need to pass an Appropriations Act Most FHWA programs have Contract Authority Reference - http://www.fhwa.dot.gov/reports/fifahiwy/

4. Characteristics of the Federal-Aid Highway Program Federally assisted - State administered Funding tied to specific systems/programs Requires State to have highway agency States provide maintenance

5. Federal State Relationship Federal Responsibilities Review and approve State proposals Develop regulations and guidance Promulgate Standards Provide technical assistance Distribute funds Reimburse State their eligible expenses

6. Federal State Relationship State Responsibilities Administer projects and State programs Conceive Plan Design Construct Maintain and operate highways

7. Commissioned Study National Surface Transportation Policy and Revenue Study Commission Mandated by SAFETEA-LU section 1909 Conduct study Revenue analyses Existing funds Long term alternatives Sources to fund 30 year projections Develop conceptual plan with specific recommendations Report published December 2007

8. Program Recommendations Speed project delivery Consolidate many highway programs to 10 National asset management Freight Congestion relief Safety Small cites access Intercity passenger rail Environmental stewardship Energy security Federal lands Research development and technology Independent national commission to develop strategic national plan Target 40% of capital investment in surface transportation as Federal share

9. Funding Recommendations Raise gas tax 5-8 cents per year for five years (25-40 cent increase) Index for inflation Various adjustments Credit interest on the trust fund balance Channel to Trust Fund Portion of custom duties Freight fee Return emergency funds Promote Tolling Pricing Public-Private Partners

10. Office of Highway Policy Information Analysis of Data States enter data on reported fuel consumption and financial data FHWA has established models Data is analyzed and adjustments are made as needed to balance reporting Funding for several major programs is based on % of fuel computed to be used on highways in the States Reference - http://www.fhwa.dot.gov/policyinformation/hss/guide/index.cfm

11. Office of Highway Policy Information Analysis of Data Report IFTA net amounts each month on FHWA- 551M Enter electronically in the correct fuel type Reference - http://www.fhwa.dot.gov/policyinformation/hss/guide/index.cfm

12. Federal-aid Highway Program (FHP) Extensions SAFETEA-LU expired on Sept 30, 2009 Surface Transportation Extension Act of 2010 Surface Transportation Extension Act of 2011 Federal highway taxes expire Sept 30, 2011

13. Senate Bill Environment and Public Works Committee Moving Ahead for Progress in the 21 st Century (MAP-21) 2-year funding at current levels Eliminate earmarks Program consolidation Accelerate Project delivery

14. Senate Bill Core Programs: National Highway Performance Transportation Mobility National Freight Congestion Mitigation and Air Quality Improvement Highway Safety Federal Land and Tribal Transportation Research and Education

15. House Bill Transportation and Infrastructure Committee Six-year bill Streamlining and Reform Consolidate programs Set performance measures Delegate more decisions to States

16. House Bill Leveraging Expand lending options Transportation Infrastructure and Finance Act (TIFIA) State Infrastructure Banks (SIBs) Allow I-State tolling: On new lanes Not existing lanes Target funding: Interstate travel and commerce (I-State and NHS) Preserve existing capacity Build new capacity

17. What’s Next Future is uncertain Common themes Fewer programs Expedited delivery Un-addressed issues Program size Enhanced revenue

18. What’s Next Alternative Revenue – MBUF fees How to report electric vehicles (hybrid/dedicated) Rapidly declining Highway Trust Fund Increases in CAFÉ standards Highway Use Tax Evasion Program

19. Contact Michael Dougherty 202-366-9234 michael.dougherty@dot.gov