I would like to thank the chairman, the ranking member, and the other senators of this subcommittee for the opportunity to talk about TEA-21. I would also like to thank the chairman for his flexibility in allowing me to testify today. I was unable to testify at the last hearing on TEA-21 implementation, and I would like to start my testimony with an overall assessment of TEA-21.
The Governors believe that TEA-21 is a significant milestone in state-federal relations. The program is in its first months, but already the changes are having a positive impact. The Governors are committed to maintaining a highly effective surface transportation system. Efficient, safe, and productive road and transit infrastructure and operations provide the foundation for our nation's economic strength. They are essential for the personal mobility that is central to the American quality of life. State and local governments finance more than half of all public investment in surface transportation. In addition to their financing responsibilities, state and local governments own and operate most of the nation's surface transportation systems. That's why it's important that TEA-21 strengthened the state-federal partnership as a step towards greater efficiency.
During the two years that Congress considered reauthorization of federal highway programs, Governors established a coalition with other state and local officials, and representatives of industry and labor, named the coalition for TRUST (Transportation Revenues Used Solely for Transportation). The coalition members recognized the need for a strong multimodal surface transportation network that lowers the cost of doing business and ensures a high quality of life in our cities. Today, businesses employ just-in-time manufacturing and streamlined distribution systems to reduce the cost and time necessary to produce and distribute goods. The success of these business strategies depends on federal, state and local governments making adequate investments in transportation and delivering improvements on time.
Full and prompt implementation of TEA-21 is needed by Governors, as well as our TRUST Coalition partners to achieve the nation's high-priority surface transportation objectives. The state-federal partnership, embodied in TEA-21, must be fully and effectively implemented in accord with its provisions, taking into account national, state, and local needs, resources, and responsibilities.
TEA-21 Funding Guarantees The nation's Governors commend Congress for restoring the integrity and reliability of the dedicated Highway Trust Fund by guaranteeing that all federal Highway Trust Fund revenues will be distributed each year for their intended purpose. TEA-21 will provide the capital needed to ensure that our transportation system meets the demands of our 21st century economy. This guarantee of funding in TEA-21 will provide states with the stability they need to better plan and manage long-term capital investments.
Although TEA-21 increases federal investment in surface transportation programs to record levels, it is predominantly funded from user revenues dedicated to the Highway Trust Fund. Congress and the administration must ensure that all revenue flowing to the Highway Trust Fund is directed to the programs established in TEA-21. Moreover, while meeting these levels, Congress and the administration must not sacrifice investments in other modes of transportation or other nontransportation programs. This approach is fully consistent with the national goal of a balanced federal budget. This increased investment will create jobs, improve productivity, and enhance our nation's competitiveness in the global economy.
Governors are also pleased with this step because at the state level we occasionally need to raise gas taxes to ensure adequate state support for roads. Over the past few years, as the federal government redirected these gas tax revenues to other programs, resistance to state gas tax increases was more likely. Now that the gas tax revenue is dedicated, it will be easier for Governors to use this source of revenues for state highway funding because taxpayers will see that their taxes are making the roads better and safer.
State Authority and Flexibility in TEA-21 State governments are central to the organization and management of transportation systems that both serve local communities and their residents and interconnect to create an efficient national system. TEA-21 contains several provisions that support and enhance the effectiveness of state transportation programs.
Statewide Planning. TEA-21 supports the primacy of statewide planning and project selection and enables states to meet the diverse needs of urban, suburban, and rural communities. States have a long history of drawing on the expertise of the federal and local governments, metropolitan planning organizations (MPOs), and private enterprise. Under TEA-21, states are able to continue to work with these entities in delivering transportation programs to the public. Governors are hopeful that in implementing TEA-21, no regulations or guidance will distort statewide priorities or preempt state authority.
Program Flexibility. TEA-21 provides each state with genuine flexibility to meet the transportation priorities of that state and its units of local government. Governors welcome this flexibility. Individual state planning processes must be used to determine the right mix of investments. The Governors commend Congress for streamlining and simplifying the process through which federal funds flow to states and urge the administration to implement TEA-21 in a manner consistent with state flexibility, without creating new suballocations or regulatory requirements. At the same time, we ask Congress to refrain from creating set-asides or new program requirements in a manner that lessens state options.
Using Incentives to Achieve National Goals. The Governors strongly believe that positive incentives to encourage the achievement of national goals are more effective and productive than sanctions. They applaud Congress for providing positive incentives in TEA-21 to encourage states to increase safety belt use and reduce the incidence of impaired driving. The Governors oppose the use of sanctions and urge instead the use of federal incentives in limited instances to stimulate states to adopt national standards.
Emphasis on Safety. Governors want travel to be as safe as possible. In 1997 more than 40,000 Americans lost their lives and more than 3 million Americans were injured in motor vehicle collisions. The fatality and injury rate has declined over the past two decades, but the number of deaths and injuries is still far too high. To reduce the number of deaths and injuries on the roads, the Governors supported strengthened safety programs in TEA-21. However, federal aid requirements should be simplified, and each state should be permitted to focus federal highway safety resources on its most pressing problems. In addition, Congress and the administration should not mandate additional national safety standards without state involvement and concurrence.
Improve Project Delivery Timeliness. The Governors support the TEA-21 provisions that streamline and eliminate duplicative administrative processes in order to improve the timeliness and advancement of critical transportation improvements. With the need for project funding so great, it is important that we establish and maintain an efficient system to make the best possible use of these public funds. Governors hope the TEA-21 state-federal partnership becomes a premier example of federalism. The Governors stand ready to work with federal agencies to further improve and enhance the project development process.
Invest in Rail Development. Across the nation, rail is increasingly being used to move both people and freight. Investments in rail mean greater access, expanded mobility, efficient movement of goods, and job creation. A vibrant rail network is essential to the maintenance of a strong economy. Without it, the United States will lack a balanced intermodal transportation system.
In some areas of the nation, rail line capacity is at or near full capacity, while in other areas, usage is still well below capacity and could be expanded. Under the Transportation Equity Act for the 21st Century (TEA-21), states will play an increasingly larger role in the development and implementation of both passenger and freight rail, including high speed rail corridors, commuter rail, intercity passenger rail, intermodal linkages, and shortline and regional freight rail development. Governors strongly support both new and revived efforts that are taking place nationwide in the development of passenger and freight rail.
The Governors support the flexibility to spend a portion of their federal transportation allocation on intercity passenger rail, if they so choose. As you know, under TEA-21 highway trust fund monies can be spent on mass transit, bus acquisition, light rail, pike paths, pedestrian walkways, technology research, snowmobile trails, intermodal freight facilities, driver education programs, hiking trails and much more. However, if a state wants to spend a portion of its transportation allocation on intercity passenger rail, it is prohibited from doing so. Including passenger rail as an eligible use of Congestion Mitigation and Air Quality (CMAQ), Surface Transportation Program (STP), National Highway System (NHS) and eligible transit funds would eliminate this bias in transportation spending.
Inclusion of passenger rail as an eligible use of TEA-21 funds would require no new spending, would not change any federal transportation formulas, and would not mandate that a state spend one penny on passenger rail service. It would however provide states with the flexibility to invest in the transportation service that best suited its needs. Simply put this is a state flexibility and states rights issue.
Transportation Conformity with the Clean Air Act Many Governors are seriously concerned over the U.S. Environmental Protection Agency's (EPA) decision not to appeal a recent U.S. Court of Appeals decision that is already seriously impacting transportation projects across the country. The March 2 ruling by the U.S. Court of Appeals for the District of Columbia struck down a 1997 EPA rule that allowed certain "grandfathered" highway projects to proceed even if the region's long-term transportation plan did not comply with its clean air goals. The ruling also struck down a provision that allowed certain regionally significant non federal projects to proceed during a conformity lapse. The flexibility that was built into those regulations was the direct result of months of work with both EPA and the U.S. Department of Transportation (DOT). Governors and other state and local officials strongly supported this flexibility which has been threatened by this ruling. The ruling could perpetuate roadway hazards by stopping or delaying highway and mass transit projects across the nation designed to reduce traffic congestion and make roads safer. We stand willing to work with both EPA and DOT on some other solution, but it took us nearly a year to achieve the rule that has been overturned.
According to the FHWA, there are 10 projects worth about $100 million that are currently affected by the ruling, but the total could go as high as 84 projects at $1.2 billion in value. The 10 grandfathered projects are immediately at risk because they are in areas with conformity lapse and were scheduled to receive federal approval to advance through April 1999. The other projects are in various phases of development and may be delayed in areas that fail to reestablish conformity. One problem that we currently face is that we have not been provided with any list of these additional 84 projects. I ask the committee's help in determining the complete impact of the court's decision.
With the passage of the Clean Air Act and TEA-21, Congress took steps to advance two essential national goals: achieving air quality standards and providing for the transportation needs of the American people. The Governors strongly support the attainment of both of these goals and believe that neither should be sacrificed in pursuit of the other. To meet air quality standards and provide a safe and efficient transportation system, state governments must devise workable and acceptable programs that will meet the particular needs of the nation's many diverse regions. However, states must be provided with the flexibility to meet these goals.
Effective implementation of the Clean Air Act requires taking into account emissions from all sources. It is critical that transportation and air quality decisions be made by the government leaders closest to the problem and most directly accountable to those affected. The Governors affirm their responsibility under the Clean Air Act to see that all sectors of their states work together to reach clean air standards within a reasonable time period and through appropriate means. The Governors also affirm their responsibility to see that emissions from the mobile source sector, including transportation plans, programs, and projects, do not: (1) violate clean air standards; (2) worsen existing violations; or, (3) delay timely attainment of clean air objectives. However, the Governors also believe that the conformity rules must respect the role of the Governor as the chief administrative officer of the state. The best way to support the role of Governors is to provide the flexibility to make the law work effectively in specific situations.
Thanks again for allowing me to testify today on behalf of the National Governors' Association. The Governors pledge their commitment to work with Congress and the president on these and other issues important to the nation's transportation system.