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Framework for a National Freight Policy - Proposed Elements

DATE: November 23, 2009

Comments and questions concerning this proposed framework should be directed to freight@dot.gov

Disclaimer:
The Framework includes a broad range of proposals from many diverse interests. The inclusion of proposed strategies, tactics, and activities in the Framework does not imply Department of Transportation endorsement or industry consensus.

Introduction
- The United States freight system underpins the nation's continued economic growth, and historically the U.S. has led the world in freight system design and management. Today the nation faces a new challenge. Dramatically increasing freight flows have created congestion in the transportation system, imposing costs on shippers, consumers, and the environment. The U.S. freight system faces significant capacity constraints at key freight gateways, and the Department of Transportation doesn't have the tools--or the authority--to remedy all of the problems on its own. Effective policy solutions will require coordinated and collaborative action by both public and private parties. That coordination and collaboration starts with focused communication about a framework for action.
  To bring together public and private stakeholders around a common vision, the U.S. Department of Transportation proposes this Framework for a National Freight Policy. The framework lays out a vision and objectives, then details strategies and tactics that the Department and its partners - both public and private sector - can pursue to achieve those objectives. To be credible and achievable, the framework requires input and buy-in from the broader freight sector, including both public and private sector interests. The Department has begun the process of soliciting such input, and DOT looks forward to working with its partners to further develop the framework over the coming months.
  Comments and questions concerning this proposed framework should be directed to freight@dot.gov
Vision Statement
- The United States freight transportation system will ensure the efficient, reliable, safe and secure movement of goods and support the nation's economic growth while improving environmental quality.
Overarching Themes
- Framework for National freight policy, not Federal freight policy. The United States freight transportation system is a national system, not a Federal system, composed of a vast array of inter-connected public and private sector institutions and organizations. In recognition of that fact, this framework includes strategies and tactics that draw upon not only the U.S. DOT, but also many other public and private sector organizations.
- Importance of investment. The national freight transportation system is a tremendous asset, and like any asset it requires investment to maintain its high level of performance - performance upon which the nation's economic growth depends. Historically public sector investment has largely taken the form of Federal grants. Going forward, this framework takes a broader perspective, leveraging a wide range of public and private investment tools to finance the construction and operation of freight infrastructure.
- Public-private collaboration. Historically the public sector and private sector have played clearly divided roles in relation to freight transportation: the public sector has built, owned, and operated transportation infrastructure - predominantly highways - and the private sector has used that infrastructure to conduct freight operations. This division has limited the opportunities for leveraging private sector efficiencies and expertise in the construction and operation freight infrastructure. Consequently, this framework focuses on facilitating freight transportation through collaborative action between the public and private sectors.
- Living document. This framework must be as dynamic as the freight sector and the economy it serves. This framework will evolve as conditions change and as strategies and tactics are tried and evaluated.
Proposed Framework Elements
- Activity 1.1.01.02 SAFETEA-LU Technical Amendment
  - Description: Proposed SAFETEA-LU technical amendment designating Transportation System Maintenance and Operation (TSM&O) as an eligible expense
  - Lead: FHWA
  - Status: Proposed
  - Sector: Public
  - Mode: truck
- Activity 1.1.06.05 Increase weight limits for trucks
  - Description: Implement ATA 97,000 pound 3 axle proposal
  - Lead: American Trucking Associations
  - Status: Proposed
  - Sector: Private
  - Mode: truck
- Activity 1.1.09.02 Amendment of Harbor Maintenance Tax
  - Description: Pursue amendments to the Harbor Maintenance Tax to facilitate short-sea shipping by exempting certain cargo operations.
  - Lead: MARAD
  - Status: Proposed
  - Sector: Joint
  - Mode: maritime
- Activity 1.2.04.01 US Army Corp of Engineers Performance Based Programming
  - Description: US Army Corp of Engineers FY 2009 budget request for maintaining the nations infrastructure focuses on the performance of existing projects and gives priority to operating and maintaining key water resources infrastructure across the Nation.
  - Lead: USACE
  - Status: Proposed
  - Sector: Public
  - Mode: maritime
- Activity 1.2.05.01 US Army Corp of Engineers Harbor Maintenance Trust Fund
  - Description: Continue the Corps of Engineers funding for operations and maintenance (dredging costs) of federal authorized channels for commercial navigation
  - Lead: USACE
  - Status: Proposed
  - Sector: Public
  - Mode: maritime
- Activity 2.1.01.02 Refocus FHWA Federal Aid Funding Programs
  - Description: Work with decision makers to reestablish emphasis of national highway programs on national connectivity and economic expansion by focusing on nationally significant supply-chain bottlenecks at interchanges, gateways, intermodal connectors, and international borders.
  - Lead: FHWA
  - Status: Proposed
  - Sector: Public
  - Mode: truck
- Activity 2.2.03.02 Critical Commerce Corridors
  - Description: The Critical Commerce Corridors (3C) program is proposed to Congress as a new 25-year federal initiative focused exclusively on developing the surface transportation capacity necessary to facilitate the secure and efficient movement of freight. It would be funded outside the federal motor fuels excises by new freight-related user fees and potentially other mechanisms with resulting revenues statutorily firewalled for use only on 3C projects.
  - Lead: ARBTA
  - Status: Proposed
  - Sector: Private
  - Mode: truck
- Activity 2.2.03.03 AASHTO Freight Corridors
  - Description: Add Nearly as Much Capacity to the Interstate Highway System Over the Next 50 Years as Was Built Over the Last 50 Years - To accommodate impending growth in population and traffic over the next 30 years and to sustain our economic competitiveness, initiate the next phase of the Interstate System (sometimes referred to as Corridors of Commerce), adding 10,000 miles of new routes on new alignments, adding 20,000 lane miles to existing Interstates, and upgrading 20,000 miles of NHS routes to Interstate status. Correct bottlenecks, improve intermodal connections, upgrade interchanges, and create exclusive truck lanes.
  - Lead: AASHTO
  - Status: Proposed
  - Sector: Public
  - Mode: truck/rail
- Activity 2.2.05.01 U.S. DOT Office of Intermodalism
  - Description: The office will coordinate United States Government research on intermodal transportation as provided in the plan developed under ISTEA provide technical assistance to States and to metropolitan planning organizations for urban areas having a population of at least 1,000,000 in collecting data related to intermodal transportation to facilitate the collection of the data by States and metropolitan planning organizations. The Office in consultation with the advisory board established under section 5502 and other public and private transportation interests, shall develop a National Intermodal System Improvement Plan to improve the national intermodal transportation system. Maintain an U.S. DOT Office that can coordinate Federal policy on intermodal transportation and initiate policies to promote efficient intermodal transportation in the United States
  - Lead: OST
  - Status: Proposed
  - Sector: Public
  - Mode: truck/rail/maritime/pipeline/aviation
- Activity 2.3.01.02 AASHTO Short Line Legislative proposal
  - Description: Advocate for the Congress to extend the short-line rail infrastructure investment tax credit, create incentives for new investment in freight rail infrastructure by rail companies and provide federal funding from revenues outside of the highway trust fund for state participation in public-private rail projects
  - Lead: AASHTO
  - Status: Proposed
  - Sector: Joint
  - Mode: rail
- Activity 2.3.01.03 AASHTO Rail Tax and Financing Legislative proposal
  - Description: Advocate for the Congress to pass and the President to sign legislation that will: amend the tax code to decrease the cost of capital for the freight rail industry through incentives such as investment credits, depreciation adjustments, and tax credit bond financing; provide new financing tools and techniques to generate financing from high capacity projects and investment funding for rail projects that benefit both passenger and freight rail services.
  - Lead: AASHTO
  - Status: Proposed
  - Sector: Joint
  - Mode: rail
- Activity 2.3.01.04 AASHTO Transportation Financing Legislative proposal
  - Description: Advocate for the federal government to support the development and application of new financing tools and techniques to take advantage of self-capitalization opportunities provided by high demand projects and new financing tools and techniques to take advantage of self-capitalization opportunities provided by high demand projects.
  - Lead: AASHTO
  - Status: Proposed
  - Sector: Joint
  - Mode: rail
- Activity 2.3.05.01 Multi-state/regional investment banks
  - Description: Formal policy resolution adopted for the federal government to provide support to multi-state/regional investment banks to finance improvements to regionally and nationally significant freight projects, where costs are in a single state, but benefits accrue to several states
  - Lead: AASHTO
  - Status: Proposed
  - Sector: Public
  - Mode: truck/rail
- Activity 3.1.02.03 Airport Slot Pricing
  - Description: When an airport has more demand than it can handle, the FAA will cap it and allocate slots based on the airports capacity in order to avoid delays and ease congestion. By establishing limits based on airport facilities, the FAA distributes a fixed number of slots between the airlines that wish to fly in and out of that airport. To make entry into an airport easier and increase competition, the FAA has proposed reserving 10-20% of slots at congested airports and auctioning a portion of those slots on a yearly basis. Under this system, new entrants have the opportunity to bid on open slots, gain entrance into an airport, and provide competition to give the passengers the benefits of reduced fares and higher quality
  - Lead: FAA
  - Status: Proposed
  - Sector: Public
  - Mode: aviation
- Activity 3.1.04.01 Passenger Facilities Charges
  - Description: Use Passenger Facility Charges (PFCs) to improve passenger flow and create space/release funding for air cargo improvements
  - Lead: FHWA
  - Status: Proposed
  - Sector: Joint
  - Mode: aviation
- Activity 3.3.02.01 Use of Waterways Trust Fund and the Harbor Maintenance Trust Fund for their legislated purposes
  - Description: Formal policy resolution adopted to ensure resources available through the Inland Waterways Trust Fund and the Harbor Maintenance Trust Fund should be used for their legislated purposes
  - Lead: AASHTO
  - Status: Proposed
  - Sector: Joint
  - Mode: maritime
- Activity 3.3.03.01 Multi-modal Pooled Funds for Freight Investments
  - Description: Formal policy resolution adopted to ensure the federal government in collaboration with the state should relax the constraints created by the modal silos in order to allow for pooled funding for investment in essential freight projects
  - Lead: AASHTO
  - Status: Proposed
  - Sector: Public
  - Mode: truck/rail/maritime/pipeline/aviation
- Activity 4.1.04.01 Implementation of Truck Lane Policy
  - Description: Formal policy resolution adopted to provide states with the authority and resources to develop truck only or truck only toll lanes where demand warrants
  - Lead: FHWA
  - Status: Proposed
  - Sector: Public
  - Mode: truck
- Activity 6.1.04.04 Continue Railway-Highway Crossings Program
  - Description: Advocate continuing the Railway-Highway Crossings Program
  - Lead: AASHTO
  - Status: Proposed
  - Sector: Public
  - Mode: truck/rail
- Activity 7.2.02.02 Green Freight Initiative
  - Description: Lead a "green freight" initiative to accelerate the development and adoption of technologies and practices that reduce emissions, noise, etc. from freight operations.
  - Lead: DOT
  - Status: Proposed
  - Sector: Public
  - Mode: truck/rail/maritime
- Objective 1 Improve the operations of the existing freight transportation system.
  - Tactic 1.1.06 Accommodate standard combination trucks on the National Network, subject to weight limits on the Interstate portion, and allow operation of longer combination trucks on selected routes.
    - Lead: AASHTO
    - Status: Proposed
    - Mode: Rail, Truck
  - Tactic 1.1.07 Accommodate double stack trains and railcars with higher weight limits.
    - Lead: Various
    - Status: Proposed
    - Mode: Rail
  - Tactic 1.1.08 Accommodate higher capacity container ships.
    - Lead: Various
    - Status: Proposed
    - Mode: Water
  - Tactic 1.1.09 Promote alternative freight capacity where market feasible (particularly for short sea shipping and short haul intermodal services).
    - Lead: Various
    - Status: Proposed
    - Mode: Rail Water
  - Tactic 1.1.10 Establish a Rest Area Quality Improvement Pilot Program.
    - Lead: USDOT
    - Status: Proposed
    - Mode: Truck
  - Tactic 1.4.04 Industry programs to train and recruit port and railroad workers.
    - Lead: Various
    - Status: Proposed
    - Mode: Rail Water
- Objective 2 Add physical capacity to the freight transportation system in places where investment makes economic sense.
  - Tactic 2.2.05 Coordinate plans for investments in highway, rail, and waterway capacity.
    - Lead: USDOT
    - Status: Proposed
    - Mode: All
  - Tactic 2.3.05 Establish framework for multi-state regional investment banks to finance local freight capacity improvements with national and regional significance.
    - Lead: AASHTO
    - Status: Proposed
    - Mode: All
- Objective 3 Better align all costs and benefits among parties affected by the freight system to improve productivity.
  - Tactic 3.3.03 In collaboration with the states the federal government should relax the constraints created by the "modal silos" in order to allow pooling funds for investment in essential freight projects.
    - Lead: AASHTO
    - Status: Proposed
    - Mode: All
  - Tactic 3.3.07 Include the diesel fuel usage in each State as part of the funding formula for the Federal Interest Highway Program.
    - Lead: USDOT
    - Status: Proposed
    - Mode: Truck
    - Activity 2.4.01.04 AASHTO Rail Legislative Proposal
      - Description: Advocate for Congress to pass and the President to sign legislation that will: establish grant and credit programs that support public participation in public benefit freight rail projects; provide funding and investment to carry out new business models for rail service in markets abandoned by Class I railroads; consider support for the development of public/private partnerships for freight rail investment.
      - Lead: AASHTO
      - Status: Proposed
      - Sector: Joint
      - Mode: rail
- Objective 4 Reduce or remove statutory, regulatory, and institutional barriers to improved freight transportation performance.
  - Tactic 4.1.04 State should be provided the authority and resources necessary to provide truck-only lanes or truck-only-toll lanes when demand warrants.
    - Lead: AASHTO
    - Status: Proposed
    - Mode: Truck
  - Tactic 5.4.01 Create frameworks for participation by multiple stakeholders in the planning, financing, and implementation of major freight projects.
    - Lead: AASHTO
    - Status: Proposed
    - Mode: All
- Objective 5 Proactively identify and address emerging transportation needs.
  - Tactic 5.1.04 Conduct national assessments of freight system needs.
    - Lead: Various
    - Status: Proposed
    - Mode: All
  - Tactic 5.5.01 Institute performance management on informed decision-making at a system and program level.
    - Lead: USDOT
    - Status: Proposed
    - Mode: All
  - Tactic 5.5.02 Institute benefit-cost analysis and focus on informed decision-making at a system and program level.
    - Lead: USDOT
    - Status: Proposed
    - Mode: All
- Objective 6 Maximize the safety and security of the freight transportation system.
  - Tactic 6.1.08 Increase the flexibility of FMCSAs Motor Carrier Safety Grant Program by consolidating ten current programs into a single commercial motor vehicle safety program.
    - Lead: USDOT
    - Status: Proposed
    - Mode: Truck
  - Tactic 6.1.09 Implement new Maintenance of Effort requirements so States are not penalized when contributing additional state resources toward commercial vehicle safety programs.
    - Lead: USDOT
    - Status: Proposed
    - Mode: Truck
- Objective 7 Mitigate and better manage the environmental, health, energy, and community impacts of freight transportation.
  - No proposed tactics