The US DOT’s Disappointing Strategic Plan
At a time when it is increasingly acknowledged that the federal government is on an unsustainable fiscal course, you would think the first thing a cabinet agency’s new strategic plan would do is attempt to figure out which of its historical functions are truly federal and should be continued. But that sort of prioritization is entirely absent from the U.S. DOT’s draft Strategic Plan, posted online for comment at https://dotstrategicplan.ideascale.com .
Instead we are given a vast array of poorly justified expansions of the federal role into every nook and cranny of how Americans and their goods should travel—as well as how and where we should live.
One prevailing theme is frustration that current law does not permit the DOT to exercise as much micromanagement as its leaders think they should be doing. For example, the plan laments the lack of federal authority to regulate the safety of mass transit, as well as the lack of federal control over which specific highway and bridge projects states spend their federal highway monies on (as opposed to the numerous programs into which the feds already divide up these funds). It even laments that “DOT’s Federal-aid roadway design standards are not enforceable on local streets,” so that unless the law is changed, the DOT can only “encourage” more states to adopt the “complete streets” model in which every street in America must be equipped with sidewalks and bike paths.
Another recurrent theme is performance measures—but they are selectively and inconsistently applied. For example, something as basic as a minimum benefit/cost ratio threshold (perhaps 1.5) would weed out numerous low-priority projects that sound nice but aren’t worth the money. The only instance in which such a standard is discussed is with regard to possible airport expansion. It is not mentioned with respect to with DOT’s newly favored sectors: transit, streetcars, high-speed rail, the “marine highway,” etc.
The phrase “data-driven” appears several times, but only in limited contexts such as multimodal safety problems—not to evaluate favored modes or favored themes. The notion of a level playing field among transportation modes is mentioned several times—but the only aspects where analysis is suggested are on fuel-use, safety, and environmental benefits. What about a level-playing field comparison of goods-movement modes on cost, delivery time, and reliability?
A major focus of the previous Administration’s DOT, under both Democrat Norm Mineta and Republican Mary Peters, was congestion reduction. This applied to both surface and air transportation, and included active promotion of market pricing in both areas (with no success in aviation, alas). Unfortunately, while the draft strategic plan gives lip service to reducing congestion, its approach to doing this in urban areas is to expand transit, promote ride-sharing and flextime, and support the demand-management form of road pricing. (Tellingly, that reference to pricing is buried in the “State of Good Repair” chapter, which is mainly about asset management.)
And that provides a clue to one of the major omissions from the Plan: capacity expansion. While it expresses limited support for expanding airport capacity, in highways its only concession is the possibility of “targeted investments” in “our national freight highway corridors to address bottlenecks.”
But as far as motorists are concerned, there is not a word about adding capacity to cope with projected growth and reduce congestion. In fact, the plan even suggests that more cities do as San Francisco did after its last earthquake and tear down urban freeways that may no longer be needed. And in its redefinition of “functionally obsolete” bridges, it refers to not having “adequate lane widths, shoulder widths, or vertical clearances,” but makes no mention of not having enough lanes. It also uncritically accepts the “We can’t build our way out of congestion” mantra, despite extensive evidence to the contrary (especially with priced capacity).
Entire chapters are devoted to the Secretary’s two favorite topics: Livability and Environmental Sustainability. Both are notable for broad assertions presented without acknowledging considerable data and analysis calling them into question. For example: “A comprehensive strategy that promotes livability and reduced the demand for auto travel will significantly lower the long-run cost of transportation (and other infrastructure) for both household budgets and taxpayers.” (p. 30) That’s an astounding claim, accompanied by zero evidence. Transit and smart-growth advocacy groups typically argue that substituting transit for driving saves an individual money—but they ignore the large taxpayer cost of the highly subsidized transit alternative.
Another example is a tricky little game played with transportation data. The National Household Travel Survey (NHTS) did indeed find that 11.6% of all individual trips are made by walking or bicycling. Page 51 contrasts that figure with the less than 2% of annual Federal Aid Highway funds spent on walking and biking. First, this ignores the other NHTS finding that in terms of person-miles traveled, biking and walking together come to just 0.9% of the total (but still get 2% of the funding). Second, federal highway funds are supposed to fund important federal highways , like the Interstates. There is also the factoid that 40% of all metro-area trips are two miles or less in length and therefore “could be taken on foot or bicycle”—if you ignore how people value their time, the vagaries of weather, the stuff they have to carry, etc.
Yet another assertion, presented with no attempt at substantiation, is that “Creating livable communities is just as important to residents of rural areas as it is to residents of urban and suburban areas.”
Finally, in the chapter on sustainability, this allegedly data-driven, performance-based plan simply asserts that “to reduce carbon emissions, improve energy efficiency, and reduce dependence on oil,” the nation must begin “development of a national network of high-speed rail corridors.” A similarly vague justification is given for DOT to “strategically expand the marine highway system.” These mode choices are never presented as having emerged from a data-driven, mode-neutral benefit/cost analysis; they are simply assumed to be wise choices on which to expand billions of federal tax dollars. In particular, nowhere in the entire document is there any mention of using a cost/ton standard (such as no more than $50/ton) to sort out cost-effective greenhouse gas reduction measures from highly wasteful ones.
This draft plan is presumably a preview of what the Administration will set forth in its proposal for reauthorizing the federal surface transportation program. That amply demonstrates the need for a fundamentally different alternative to emerge from Congress.
Bob Poole is a Searle Freedom Trust Transportation Fellow and Director of Transportation Policy for the Reason Foundation, the free market think tank. A recognized transportation policy expert, Mr. Poole has advised the previous four Presidential administrations on transportation and policy issues. This column first appeared in the May 2010 issue of the Reason Foundation’s Surface Transportation Innovations e-newsletter.














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Mr. Poole is on target in stating that the U.S. DOT’s draft Strategic Plan presents a "vast array of poorly justified expansions of the federal role into every nook and cranny of how Americans and their goods should travel—as well as how and where we should live."
The Strategic Plan largely overlooks the nation’s dire need for capacity expansion throughout the transportation system. The possibility of “targeted investments" in our national freight highway corridors to address bottlenecks is not enough. We need a commitment to this important strategy for cutting carbon emissions and maintaining an efficient supply chain.
Freedom of mobility is a defining trait of our great nation and that freedom appears to be under attack. Much of the 72 page draft is devoted to “a comprehensive strategy that promotes livability. The administration justifies this push by arguing that "the demand for auto travel will significantly lower the long-run cost of transportation (and other infrastructure) for both household budgets and taxpayers.” As Mr. Poole points out, the Administration presents zero evidence to support this claim. The draft also says that "creating livable communities is just as important to residents of rural areas as it is to residents of urban and suburban areas." Unfortunately, the draft fails to mention how taxpayers will feel once they’re subjected to the tremendous costs associated with these unnecessary programs.
Finally, the draft claims that developement of a national network of high-speed rail corridors and expansion of the marine highway system is necessary to "to reduce carbon emissions, improve energy efficiency, and reduce dependence on oil." However, there is no analysis in the draft plan to justify a focus on non-highway modes of transportation. As Mr. Poole said, the Administration’s modal choices ignore market forces and reflect personal preference and a strong bias against highway transportation.
If in fact the draft is a preview of the Administration’s proposal for reauthorization, then Congress must develop alternatives that allow the market to determine how goods move throughout our country.
The DOT's draft Strategic Plan largely overlooks the nation's dire need for repair, operational improvements, and expansion where necessary throughout the National Highway System. The plan mentions the possibility of "targeted investments" in our national freight highway corridors to address bottlenecks, but it never commits to this important strategy for cutting carbon emissions and maintaining an efficient supply chain. Nothing is mentioned about the great strain congestion places on motorists . In fact, the plan even suggests more cities tear down damaged or under-utilized infrastructure in urban areas.
Much of the 72-page draft is devoted to Livability and Environmental Sustainability. The draft says that "a comprehensive strategy that promotes livability and reduced the demand for auto travel will significantly lower the long-run cost of transportation (and other infrastructure) for both household budgets and taxpayers." The draft presents zero evidence to support this claim. As Bob Poole said, the draft makes other unsubstantiated claims, such as: "Creating livable communities is just as important to residents of rural areas as it is to residents of urban and suburban areas." Nowhere does the plan mention how taxpayers will feel once they're subjected to the tremendous costs associated with these unnecessary programs. Choosing where and how to live are important personal decisions that must be made by the American people - not our government.
The trucking industry takes issue with the Administration's claims that they will "reduce the carbon footprint and pollutants emitted by the freight transportation system ... expanding opportunities for shifting freight from less fuel-efficient modes to more fuel-efficient modes-air to trucks, trucks to rail, and rail to water." The Administration's modal choices ignore market forces and reflect personal preference and a strong bias against highway transportation. No two modes provide a direct substitution for another. Each mode serves a unique role in our transportation mix and freight traditionally carried by truck cannot easily be shifted to rail.
Trucking companies are among the railroads' best customers, and place freight on railroads whenever the distance of travel and nature of the cargo make an intermodal rail-truck freight movement economically viable. However, these opportunities are extremely limited and make up less than 2 percent of the freight market. The market does a good job determining the most efficient mode for the type of freight service required. Our nation's shippers choose trucks for the fast, efficient movement of lower density, higher value goods like food, clothing and electronics. Railroads are ideal for moving heavy, bulk commodities, like stone, coal and grain that are not time-sensitive.
DOT's draft plan is very ambitious, but many of their aspirations have little to do with transportation and instead focus on social engineering, which DOT admits in their plan will require the help of several government agencies outside of DOT. Ultimately, the ability to enact any policy changes comes down to funding and public acceptance. We hope revenue from the Highway Trust Fund (HTF) will not be targeted to pay for these initiatives. The trucking industry cannot support a plan that diverts more revenue from the HTF to non-highway purposes, let alone non-transportation purposes. Already, 20 percent of HTF revenue is diverted to transit, which is part of the livability equation. Because the draft plan extends far beyond transportation, the General Fund is the most appropriate funding source.
By ignoring the market forces driving our economy and the critical needs of our nation's supply chain, the draft also fails to consider the welfare of the American public. About 80 percent of U.S. communities rely solely on trucks to deliver essential items like food, medicine, clothing and fuel. If this draft is a reflection of the upcoming reauthorization bill, then we implore Congress to develop alternatives.
Bill Graves
Thanks.