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Budget Estimates Fiscal Year 2008
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EXHIBIT IV-1
FY 2008 BUDGET REQUEST BY STRATEGIC GOAL
FEDERAL HIGHWAY ADMINISTRATION
Appropriations, Obligation Limitations, and Exempt Programs
($000)

STRATEGIC & PERFORMANCE GOALS by PROGRAM ACTIVITIES FY 2006 ACTUAL FY 2007 CONTINUING RESOLUTION FY 2007 PRESIDENT'S BUDGET TOTAL 2008 REQUEST
I. Safety
A. Reduce Transportation-Related Deaths and Injuries
Federal-aid Highways (Excludes LAE) $ 8,266,041 $ 7,358,098 $ 9,147,878 $ 9,274,870
Transp. Infrastructure Finance and Innov. Act (TIFIA) 21,016 19,905 23,638 24,393
Surface Transportation Program 1,100,319 989,066 1,328,262 1,391,395
National Highway System 1,021,937 857,464 1,151,571 1,206,308
Interstate Maintenance 876,501 735,592 987,923 1,034,883
Bridge Program 782,909 657,095 882,510 924,460
Congestion Mitigation & Air Quality Improvement ----- ----- ----- -----
Highway Safety Improvement Program 855,716 705,715 944,286 992,497
Equity Bonus 1,345,047 1,385,939 1,618,902 1,887,426
Equity Bonus (Exempt) 146,970 146,970 146,970 146,970
Federal Lands Highways 161,331 146,219 198,086 208,950
Appalachian Development Highway System 71,153 60,501 80,455 80,563
High Priority Projects 510,992 425,804 574,757 564,970
Projects of National and Regional Significance 64,355 67,032 90,482 88,941
ITS Research 52,298 52,298 58,824 57,823
Transportation Research, Training and Education 14,123 15,619 15,885 15,614
Miscellaneous Programs 1,218,374 1,069,879 1,022,327 626,677
Emergency Relief Program 23,000 23,000 23,000 23,000
Appalachian Development Highway Systems (ADHS) 4,554 18,936 ----- -----
PROGRAM FUND:
SUBTOTAL PROGRAM FUND $ 8,270,595 $ 7,377,034 $ 9,147,878 $ 9,274,870
LIMITATION ON ADMINISTRATIVE EXPENSES $ 78,500 83,600 $ 86,379 89,303
TOTAL REQUEST………………………………………………………………………………………………… $ 8,349,095 $ 7,460,634 $ 9,234,257 $ 9,364,173
Mandatory [non-add] $ 169,970 $ 169,970 $ 169,970 $ 169,970
Discretionary [non-add] $ 8,179,125 $ 7,290,664 $ 9,064,287 $ 9,194,203
FTE (GOE & Federal-aid Direct) 601 640 699 692
II. Reduced Congestion
A. Reduction in urban congestion
Federal-aid Highways (Excludes LAE) $ 5,833,758 $ 5,220,226 $ 6,473,435 $ 6,547,598
Transp. Infrastructure Finance and Innov. Act (TIFIA) 17,968 17,018 20,211 20,856
Surface Transportation Program 790,795 710,837 954,616 999,989
National Highway System 832,149 698,221 937,708 982,279
Interstate Maintenance 840,245 705,165 947,058 992,076
Bridge Program 620,881 521,105 699,869 733,137
Congestion Mitigation & Air Quality Improvement ----- ----- ----- -----
Highway Safety Improvement Program ----- ----- ----- -----
Equity Bonus 966,680 996,068 1,163,498 1,356,485
Equity Bonus (Exempt) 105,627 105,627 105,627 105,627
Federal Lands Highways 115,948 105,087 142,364 150,171
Appalachian Development Highway System 78,861 67,055 89,171 89,291
High Priority Projects 436,898 364,062 491,417 483,049
Projects of National and Regional Significance 64,630 67,320 90,869 89,322
ITS Research 11,395 11,395 12,817 12,598
Transportation Research, Training and Education 59,511 65,819 66,938 65,798
Miscellaneous Programs 875,640 768,917 734,742 450,390
Emergency Relief Program 16,530 16,530 16,530 16,530
Congestion Initiative -- Value Pricing Program ----- ----- ----- -----
Appalachian Development Highway Systems (ADHS) 3,273 13,609 ----- [$100,000]
Emergency Relief Supplemental (GF) 983,924 ----- ----- -----
PROGRAM FUND:
SUBTOTAL PROGRAM FUND $ 6,820,955 $ 5,233,835 $ 6,473,435 $ 6,547,598
LIMITATION ON ADMINISTRATIVE EXPENSES $ 64,741 59,312 $ 61,126 63,043
TOTAL REQUEST………………………………………………………………………………………………… $ 6,885,696 $ 5,293,147 $ 6,534,561 $ 6,610,641
FTE (GOE & Federal-aid Direct) 496 454 494 488
II. Reduced Congestion (continued)
B. Increased use of integrated ITS networks and new incident management approaches
Federal-aid Highways (Excludes LAE) $ 2,968,053 $ 2,655,905 $ 3,293,502 $ 3,331,236
Transp. Infrastructure Finance and Innov. Act (TIFIA) 9,142 8,659 10,283 10,611
Surface Transportation Program 402,334 361,654 485,682 508,767
National Highway System 423,374 355,235 477,079 499,756
Interstate Maintenance 427,493 358,768 481,837 504,740
Bridge Program 315,887 265,124 356,074 373,000
Congestion Mitigation & Air Quality Improvement ----- ----- ----- -----
Highway Safety Improvement Program ----- ----- ----- -----
Equity Bonus 491,819 506,772 591,955 690,142
Equity Bonus (Exempt) 53,740 53,740 53,740 53,740
Federal Lands Highways 58,991 53,465 72,431 76,403
Appalachian Development Highway System 40,123 34,116 45,367 45,429
High Priority Projects 222,282 185,225 250,019 245,762
Projects of National and Regional Significance 32,882 34,250 46,232 45,444
ITS Research 5,797 5,797 6,521 6,410
Transportation Research, Training and Education 30,278 33,487 34,056 33,476
Miscellaneous Programs 445,501 391,203 373,816 229,146
Emergency Relief Program 8,410 8,410 8,410 8,410
Congestion Initiative -- Real-time System Mgmt Info Program & Research ----- ----- ----- [$50,000]
Appalachian Development Highway Systems (ADHS) 1,665 6,924 ----- -----
Emergency Relief Supplemental (GF) 500,593 ----- ----- -----
PROGRAM FUND:
SUBTOTAL PROGRAM FUND $ 3,470,311 $ 2,662,829 $ 3,293,502 $ 3,331,236
LIMITATION ON ADMINISTRATIVE EXPENSES $ 32,938 30,176 $ 31,099 32,075
TOTAL REQUEST $ 3,503,249 $ 2,693,005 $ 3,324,601 $ 3,363,311
FTE (GOE & Federal-aid Direct) 252 231 251 248
II. Reduced Congestion (continued)
C. Increased investment in Corridors of the Future program
Federal-aid Highways (Excludes LAE) $ 1,432,851 $ 1,282,162 $ 1,589,967 $ 1,608,183
Transp. Infrastructure Finance and Innov. Act (TIFIA) 4,413 4,180 4,964 5,123
Surface Transportation Program 194,230 174,592 234,467 245,611
National Highway System 204,387 171,493 230,314 241,262
Interstate Maintenance 206,376 173,198 232,611 243,668
Bridge Program 152,497 127,991 171,898 180,069
Congestion Mitigation & Air Quality Improvement ----- ----- ----- -----
Highway Safety Improvement Program ----- ----- ----- -----
Equity Bonus 237,430 244,648 285,771 333,172
Equity Bonus (Exempt) 25,943 25,943 25,943 25,943
Federal Lands Highways 28,478 25,811 34,967 36,884
Appalachian Development Highway System 19,369 16,470 21,902 21,931
High Priority Projects 107,308 89,419 120,699 118,644
Projects of National and Regional Significance 15,874 16,535 22,319 21,939
ITS Research 2,799 2,799 3,148 3,094
Transportation Research, Training and Education 14,617 16,166 16,441 16,161
Miscellaneous Programs 215,070 188,857 180,463 110,622
Emergency Relief Program 4,060 4,060 4,060 4,060
Congestion Initiative -- Corridors of the Future ----- ----- ----- [$25,000]
Appalachian Development Highway Systems (ADHS) 804 3,343 ----- -----
Emergency Relief Supplemental (GF) 241,665 ----- ----- -----
PROGRAM FUND:
SUBTOTAL PROGRAM FUND $ 1,675,320 $ 1,285,505 $ 1,589,967 $ 1,608,183
LIMITATION ON ADMINISTRATIVE EXPENSES $ 15,901 14,568 $ 15,013 15,484
TOTAL REQUEST………………………………………………………………………………………………… $ 1,691,221 $ 1,300,073 $ 1,604,980 $ 1,623,667
FTE (GOE & Federal-aid Direct) 122 112 121 120
II. Reduced Congestion (continued)
D. Improved infrastructure
Federal-aid Highways (Excludes LAE) $ 10,184,998 $ 9,137,182 $ 11,232,133 $ 11,318,616
Transp. Infrastructure Finance and Innov. Act (TIFIA) 34,676 32,843 39,002 40,246
Surface Transportation Program 1,052,479 946,063 1,270,510 1,330,900
National Highway System 1,605,900 1,347,443 1,809,610 1,895,627
Interstate Maintenance 1,314,751 1,103,388 1,481,884 1,552,324
Bridge Program 953,106 799,942 1,074,358 1,125,429
Congestion Mitigation & Air Quality Improvement ----- ----- ----- -----
Highway Safety Improvement Program ----- ----- ----- -----
Equity Bonus 1,871,370 1,928,263 2,252,384 2,625,983
Equity Bonus (Exempt) 204,479 204,479 204,479 204,479
Federal Lands Highways 217,446 197,078 266,986 281,627
Appalachian Development Highway System 138,354 117,640 156,439 156,648
High Priority Projects 843,136 702,576 948,349 932,201
Projects of National and Regional Significance 88,871 92,569 124,950 122,823
ITS Research 19,896 19,896 22,379 21,998
Transportation Research, Training and Education 104,406 115,474 117,434 115,435
Miscellaneous Programs 1,695,128 1,488,528 1,422,370 871,896
Emergency Relief Program 41,000 41,000 41,000 41,000
Appalachian Development Highway Systems (ADHS) 6,336 26,347 ----- -----
Emergency Relief Supplemental (GF) 1,726,182 ----- ----- -----
PROGRAM FUND:
SUBTOTAL PROGRAM FUND $ 11,917,516 $ 9,163,529 $ 11,232,133 $ 11,318,616
LIMITATION ON ADMINISTRATIVE EXPENSES $ 113,117 103,845 $ 106,061 108,980
TOTAL REQUEST………………………………………………………………………………………………… $ 12,030,633 $ 9,267,374 $ 11,338,194 $ 11,427,596
FTE (GOE & Federal-aid Direct) 866 794 856 843
TOTAL CONGESTION:
Program Fund $ 23,884,102 $ 18,345,698 $ 22,589,037 $ 22,805,633
Congestion Initiative -- Program Funds $ ----- $ ----- $ ----- [$175,000]
Limitation on Administrative Expenses $ 226,697 $ 207,901 $ 213,299 $ 219,582
TOTAL REQUEST $ 24,110,799 $ 18,553,599 $ 22,802,336 $ 23,025,215
Mandatory [non-add] $ 459,789 $ 459,789 $ 459,789 $ 459,789
Discretionary [non-add] $ 23,651,010 $ 18,093,810 $ 22,342,547 $ 22,565,426
FTE (GOE & Federal-aid Direct) 1,736 1,591 1,722 1,699
III. Global Connectivity
A. Safer, more efficient movement of passengers and cargo through the supply chain
Federal-aid Highways (Excludes LAE) $ 785,363 $ 695,511 $ 871,409 $ 882,117
Transp. Infrastructure Finance and Innov. Act (TIFIA) 4,203 3,981 4,728 4,879
Surface Transportation Program 95,680 86,006 115,501 120,991
National Highway System 145,991 122,495 164,510 172,330
Interstate Maintenance 39,841 33,436 44,906 47,040
Bridge Program 136,158 114,277 153,480 160,776
Congestion Mitigation & Air Quality Improvement ----- ----- ----- -----
Highway Safety Improvement Program ----- ----- ----- -----
Equity Bonus 116,961 120,516 140,774 164,124
Equity Bonus (Exempt) 12,780 12,780 12,780 12,780
Federal Lands Highways 14,029 12,715 17,225 18,170
Appalachian Development Highway System 3,953 3,361 4,470 4,476
High Priority Projects 102,198 85,161 114,951 112,994
Projects of National and Regional Significance 3,065 3,192 4,309 4,235
ITS Research 2,558 2,558 2,877 2,828
Transportation Research, Training and Education ----- ----- ----- -----
Miscellaneous Programs 105,946 93,033 88,898 54,494
Emergency Relief Program 2,000 2,000 2,000 2,000
Appalachian Development Highway Systems (ADHS) 396 1,647 ----- -----
PROGRAM FUND:
SUBTOTAL PROGRAM FUND $ 785,759 $ 697,158 $ 871,409 $ 882,117
LIMITATION ON ADMINISTRATIVE EXPENSES $ 7,458 7,901 $ 8,228 8,493
TOTAL REQUEST………………………………………………………………………………………………… $ 793,217 $ 705,059 $ 879,637 $ 890,610
FTE (GOE & Federal-aid Direct) 57 60 66 66
III. Global Connectivity (continued)
B. Enhanced competitiveness of U.S. transport providers and manufacturers in the global marketplace
Federal-aid Highways (Excludes LAE) $ 329,861 $ 295,199 $ 365,401 $ 369,135
Transp. Infrastructure Finance and Innov. Act (TIFIA) 1,051 995 1,182 1,220
Surface Transportation Program 47,840 43,003 57,751 60,495
National Highway System 48,664 40,832 54,837 57,443
Interstate Maintenance 39,841 33,436 44,906 47,040
Bridge Program 34,040 28,569 38,370 40,194
Congestion Mitigation & Air Quality Improvement ----- ----- ----- -----
Highway Safety Improvement Program ----- ----- ----- -----
Equity Bonus 58,480 60,258 70,387 82,062
Equity Bonus (Exempt) 6,390 6,390 6,390 6,390
Federal Lands Highways 7,014 6,357 8,612 9,085
Appalachian Development Highway System 3,953 3,361 4,470 4,476
High Priority Projects 25,550 21,290 28,738 28,248
Projects of National and Regional Significance 3,065 3,192 4,309 4,235
ITS Research ----- ----- ----- -----
Transportation Research, Training and Education ----- ----- ----- -----
Miscellaneous Programs 52,973 46,516 44,449 27,247
Emergency Relief Program 1,000 1,000 1,000 1,000
Appalachian Development Highway Systems (ADHS) 198 823 ----- -----
PROGRAM FUND:
SUBTOTAL PROGRAM FUND $ 330,059 $ 296,022 $ 365,401 $ 369,135
LIMITATION ON ADMINISTRATIVE EXPENSES $ 3,133 3,355 $ 3,450 3,554
TOTAL REQUEST………………………………………………………………………………………………… $ 333,192 $ 299,377 $ 368,851 $ 372,689
FTE (GOE & Federal-aid Direct) 24 26 28 28
TOTAL GLOBAL CONNECTIVITY:
Program Fund $ 1,115,818 $ 993,180 $ 1,236,810 $ 1,251,252
Limitation on Administrative Expenses $ 10,591 $ 11,256 $ 11,678 $ 12,047
TOTAL REQUEST $ 1,126,409 $ 1,004,436 $ 1,248,488 $ 1,263,299
Mandatory [non-add] $ 22,170 $ 22,170 $ 22,170 $ 22,170
Discretionary [non-add] $ 1,104,239 $ 982,266 $ 1,226,318 $ 1,241,129
FTE (GOE & Federal-aid Direct) 81 86 94 94
IV. Environmental Stewardship
A. Reduction in pollution and other adverse environmental effects from transportation and transportation facilities
Federal-aid Highways (Excludes LAE) $ 3,858,731 $ 4,297,343 $ 5,468,013 $ 5,594,965
Transp. Infrastructure Finance and Innov. Act (TIFIA) 10,245 9,703 11,524 11,892
Surface Transportation Program 944,840 849,306 1,140,573 1,194,785
National Highway System 474,471 398,108 534,658 560,072
Interstate Maintenance 189,244 158,821 213,301 223,441
Bridge Program 331,885 278,551 374,108 391,891
Congestion Mitigation & Air Quality Improvement 359,256 1,151,139 1,545,901 1,619,376
Highway Safety Improvement Program ----- ----- ----- -----
Equity Bonus 570,183 587,518 686,274 800,105
Equity Bonus (Exempt) 62,303 62,303 62,303 62,303
Federal Lands Highways 75,405 68,341 92,584 97,661
Appalachian Development Highway System 34,588 29,410 39,110 39,163
High Priority Projects 249,109 207,579 280,194 275,423
Projects of National and Regional Significance 29,879 31,122 42,009 41,294
ITS Research ----- ----- ----- -----
Transportation Research, Training and Education 10,088 11,157 11,346 11,153
Miscellaneous Programs 516,485 453,535 433,378 265,656
Emergency Relief Program 750 750 750 750
Appalachian Development Highway Systems (ADHS) 1,931 8,027 ----- -----
PROGRAM FUND:
SUBTOTAL PROGRAM FUND $ 3,860,662 $ 4,305,370 $ 5,468,013 $ 5,594,965
LIMITATION ON ADMINISTRATIVE EXPENSES $ 36,643 48,791 $ 51,632 53,871
TOTAL REQUEST………………………………………………………………………………………………… $ 3,897,305 $ 4,354,161 $ 5,519,645 $ 5,648,836
FTE (GOE & Federal-aid Direct) 280 373 417 417
IV. Environmental Stewardship (continued)
B. Streamlined environmental review of transportation infrastructure projects
Federal-aid Highways (Excludes LAE) $ 83,375 $ 76,715 $ 95,263 $ 96,385
Transp. Infrastructure Finance and Innov. Act (TIFIA) 263 249 295 305
Surface Transportation Program 11,960 10,751 14,438 15,124
National Highway System 12,166 10,208 13,709 14,361
Interstate Maintenance 9,960 8,359 11,226 11,760
Bridge Program 8,510 7,142 9,593 10,048
Congestion Mitigation & Air Quality Improvement 910 2,914 3,914 4,100
Highway Safety Improvement Program ----- ----- ----- -----
Equity Bonus 14,620 15,065 17,597 20,516
Equity Bonus (Exempt) 1,598 1,598 1,598 1,598
Federal Lands Highways 1,754 1,589 2,153 2,271
Appalachian Development Highway System 988 840 1,117 1,119
High Priority Projects 6,387 5,323 7,184 7,062
Projects of National and Regional Significance 766 798 1,077 1,059
ITS Research ----- ----- ----- -----
Transportation Research, Training and Education ----- ----- ----- -----
Miscellaneous Programs 13,243 11,629 11,112 6,812
Emergency Relief Program 250 250 250 250
Appalachian Development Highway Systems (ADHS) 50 206 ----- -----
PROGRAM FUND:
SUBTOTAL PROGRAM FUND $ 83,425 $ 76,921 $ 95,263 $ 96,385
LIMITATION ON ADMINISTRATIVE EXPENSES $ 792 872 $ 900 928
TOTAL REQUEST………………………………………………………………………………………………… $ 84,217 $ 77,793 $ 96,163 $ 97,313
FTE (GOE & Federal-aid Direct) 6 7 8 7
TOTAL ENVIRONMENT:
Program Fund $ 3,944,087 $ 4,382,291 $ 5,563,276 $ 5,691,350
Limitation on Administrative Expenses $ 37,435 $ 49,663 $ 52,532 $ 54,799
TOTAL REQUEST $ 3,981,522 $ 4,431,954 $ 5,615,808 $ 5,746,149
Mandatory [non-add] $ 64,901 $ 64,901 $ 64,901 $ 64,901
Discretionary [non-add] $ 3,916,621 $ 4,367,053 $ 5,550,907 $ 5,681,248
FTE (GOE & Federal-aid Direct) 286 380 425 424
V. Security, Preparedness, and Response
A. Rapid, effective decision-making in emergencies affecting the transport. sector, and effective prep. and response for transport. emergencies
Federal-aid Highways (Excludes LAE) $ 331,625 $ 297,151 $ 367,387 $ 371,087
Transp. Infrastructure Finance and Innov. Act (TIFIA) 1,051 995 1,182 1,220
Surface Transportation Program 47,840 43,003 57,751 60,495
National Highway System 48,664 40,832 54,837 57,443
Interstate Maintenance 39,841 33,436 44,906 47,040
Bridge Program 34,040 28,569 38,370 40,194
Congestion Mitigation & Air Quality Improvement ----- ----- ----- -----
Highway Safety Improvement Program ----- ----- ----- -----
Equity Bonus 58,480 60,258 70,387 82,062
Equity Bonus (Exempt) 6,390 6,390 6,390 6,390
Federal Lands Highways 7,014 6,357 8,612 9,085
Appalachian Development Highway System 3,953 3,361 4,470 4,476
High Priority Projects 25,550 21,290 28,738 28,248
Projects of National and Regional Significance 3,064 3,192 4,309 4,235
ITS Research ----- ----- ----- -----
Transportation Research, Training and Education 1,765 1,952 1,986 1,952
Miscellaneous Programs 52,973 46,516 44,449 27,247
Emergency Relief Program 1,000 1,000 1,000 1,000
Appalachian Development Highway Systems (ADHS) 198 823 ----- -----
PROGRAM FUND:
SUBTOTAL PROGRAM FUND $ 331,823 $ 297,974 $ 367,387 $ 371,087
LIMITATION ON ADMINISTRATIVE EXPENSES $ 3,149 3,377 $ 3,469 3,573
TOTAL REQUEST………………………………………………………………………………………………… $ 334,972 $ 301,351 $ 370,856 $ 374,660
Mandatory [non-add] $ 7,390 $ 7,390 $ 7,390 $ 7,390
Discretionary [non-add] $ 327,582 $ 293,961 $ 363,466 $ 367,270
FTE (GOE & Federal-aid Direct) 24 26 28 28
VI. Organizational Excellence
A. Achieve strategic mgmt of human capital, e-gov goals, competitive sourcing goals, financial performance goals, and budget and performance integration goals
Federal-aid Highways (Excludes LAE) $ 486,384 $ 456,766 $ 545,070 $ 545,327
Transp. Infrastructure Finance and Innov. Act (TIFIA) 1,051 995 1,182 1,220
Surface Transportation Program 95,680 86,006 115,501 120,991
National Highway System 48,664 40,832 54,837 57,443
Interstate Maintenance ----- ----- ----- -----
Bridge Program 34,040 28,569 38,370 40,194
Congestion Mitigation & Air Quality Improvement 3,638 11,657 15,655 16,399
Highway Safety Improvement Program 8,644 7,128 9,538 10,025
Equity Bonus 116,961 120,516 140,774 164,124
Equity Bonus (Exempt) 12,780 12,780 12,780 12,780
Federal Lands Highways 14,029 12,715 17,225 18,170
Appalachian Development Highway System ----- ----- ----- -----
High Priority Projects 25,550 21,290 28,738 28,248
Projects of National and Regional Significance ----- ----- ----- -----
ITS Research ----- ----- ----- -----
Transportation Research, Training and Education 17,401 19,245 19,572 19,239
Miscellaneous Programs 105,946 93,033 88,898 54,494
Emergency Relief Program 2,000 2,000 2,000 2,000
Appalachian Development Highway Systems (ADHS) 395 1,647 ----- -----
PROGRAM FUND:
SUBTOTAL PROGRAM FUND $ 486,779 $ 458,413 $ 545,070 $ 545,327
LIMITATION ON ADMINISTRATIVE EXPENSES $ 4,620 5,195 $ 5,147 5,251
TOTAL REQUEST………………………………………………………………………………………………… $ 491,399 $ 463,608 $ 550,217 $ 550,578
Mandatory [non-add] $ 14,780 $ 14,780 $ 14,780 $ 14,780
Discretionary [non-add] $ 476,619 $ 448,828 $ 535,437 $ 535,798
FTE (GOE & Federal-aid Direct) 35 40 42 41
All FHWA PERFORMANCE GOALS
Federal-aid Highways (Excludes LAE) $ 34,561,040 $ 31,772,258 $ 39,449,458 $ 39,939,519
Transp. Infrastructure Finance and Innov. Act (TIFIA) 105,079 99,523 118,191 121,965
Surface Transportation Program 4,783,997 4,300,287 5,775,052 6,049,543
National Highway System 4,866,367 4,083,163 5,483,670 5,744,324
Interstate Maintenance 3,984,093 3,343,599 4,490,558 4,704,012
Bridge Program 3,403,953 2,856,934 3,837,000 4,019,392
Congestion Mitigation & Air Quality Improvement 363,804 1,165,710 1,565,470 1,639,875
Highway Safety Improvement Program 864,360 712,843 953,824 1,002,522
Equity Bonus 5,848,031 6,025,821 7,038,703 8,206,201
Equity Bonus (Exempt) 639,000 639,000 639,000 639,000
Federal Lands Highways 701,439 635,734 861,245 908,477
Appalachian Development Highway System 395,295 336,115 446,971 447,572
High Priority Projects 2,554,960 2,129,019 2,873,784 2,824,849
Projects of National and Regional Significance 306,451 319,202 430,865 423,527
ITS Research 94,743 94,743 106,566 104,751
Transportation Research, Training and Education 252,189 278,919 283,658 278,828
Miscellaneous Programs 5,297,279 4,651,646 4,444,902 2,724,681
Emergency Relief Program 100,000 100,000 100,000 100,000
Congestion Initiative ----- ----- ----- [$175,000]
Appalachian Development Highway Systems (ADHS) 19,800 82,332 ----- -----
Emergency Relief Supplemental (GF) 3,452,364 ----- ----- -----
TOTALS: Appropriations, Obligation Limitation, and Exempt Programs/CA $ 38,033,204 $ 31,854,590 $ 39,449,458 $ 39,939,519
Limitation on Administrative Expenses $ 360,992 $ 360,992 $ 372,504 $ 384,556
GRAND TOTAL $ 38,394,196 $ 32,215,582 $ 39,821,962 $ 40,324,075
Mandatory [non-add] $ 739,000 $ 739,000 $ 739,000 $ 739,000
Discretionary [non-add] $ 37,655,196 $ 31,476,582 $ 39,082,962 $ 39,585,075
FTE (Direct funded, exclude MTF and BTS) 2,763 2,763 3,010 2,978

1/ Breakdown among goal areas for FY 2006 is estimated and assumptions made for FY 2007 and FY 2008 are consistent with FY 2006.
[ ] Indicates non add.




EXHIBIT IV-2
FY 2008 BUDGET REQUEST BY APPROPRIATION ACCOUNT AND PERFORMANCE GOAL
FEDERAL HIGHWAY ADMINISTRATION
Appropriations, Obligation Limitations, and Exempt Programs
($000)

APPROPRIATION / PROGRAM ACTIVITY / PERFORMANCE GOAL FY 2006 ACTUAL FY 2007 CONTINUING RESOLUTION FY 2007 PRESIDENT'S BUDGET TOTAL FY 2008 REQUEST
($000) FTEs ($000) FTEs ($000) FTEs ($000) FTEs
Federal-aid Highways (Excludes LAE) 34,561,040 ----- 31,772,258 ----- 39,449,458 ----- 39,939,519 -----
Safety 8,266,041 7,358,098 9,147,878 9,274,870
Reduced Congestion 20,419,660 18,295,475 22,589,037 22,805,633
Global Connectivity 1,115,224 990,710 1,236,810 1,251,252
Environmental Stewardship 3,942,106 4,374,058 5,563,276 5,691,350
Security, Response, and Preparedness 331,625 297,151 367,387 371,087
Oganizational Excellence 486,384 456,766 545,070 545,327
Limitation on Administrative Expenses 360,992 2,763 360,992 2,763 372,504 3,010 384,556 2,978
Safety 78,500 83,600 86,379 89,303
Reduced Congestion 226,697 207,901 213,299 219,582
Global Connectivity 10,591 11,256 11,678 12,047
Environmental Stewardship 37,435 49,663 52,532 54,799
Security, Response, and Preparedness 3,149 3,377 3,469 3,573
Oganizational Excellence 4,620 5,195 5,147 5,251
Appalachian Development Highway Systems (ADHS) 19,800 ----- 82,332 ----- ----- ----- ----- -----
Safety 4,554 18,936 ----- -----
Reduced Congestion 12,078 50,223 ----- -----
Global Connectivity 594 2,470 ----- -----
Environmental Stewardship 1,981 8,233 ----- -----
Security, Response, and Preparedness 198 823 ----- -----
Oganizational Excellence 395 1,647 ----- -----
Emergency Relief Supplemental 3,452,364 ----- ----- ----- ----- ----- ----- -----
Safety ----- ----- ----- -----
Reduced Congestion 3,452,364 ----- ----- -----
Global Connectivity ----- ----- ----- -----
Environmental Stewardship ----- ----- ----- -----
Security, Response, and Preparedness ----- ----- ----- -----
Oganizational Excellence ----- ----- ----- -----
TOTALS: Appropriations, Obligation Limitation, and Exempt Programs/CA 38,033,204 31,854,590 39,449,458 39,939,519
Limitation on Administrative Expenses 360,992 360,992 372,504 384,556
GRAND TOTAL 38,394,196 32,215,582 39,821,962 40,324,075
FTE (Direct funded, exclude MTF and BTS) 2,763 2,763 3,010 2,978






FEDERAL HIGHWAY ADMINISTRATION FISCAL YEAR 2008 PERFORMANCE BUDGET

NARRATIVE JUSTIFICATION

SAFETY

DOT Performance Goal: Reduction in transportation-related deaths and injuries.

This funding request contributes to the DOT Safety strategic objective and FHWA's performance target to reduce highway fatalities to 1.0 per 100 million vehicle-miles of travel by 2011.

Fatalities per 100 million vehicle-miles of travel (VMT).

20012002200320042005200620072008
Target:1.501.401.401.381.381.381.381.37
Actual:1.511.511.481.44(r)1.45 *1.44 #

Reduce the rate of passenger vehicle occupant highway fatalities per 100 million passenger vehicle miles traveled (VMT).

200320042005200620072008
Target:n/an/an/a1.121.101.06
Actual:1.211.171.14

Reduce the rate of non-occupant highway fatalities per 100 million VMT.

200320042005200620072008
Target:n/an/an/a0.160.150.19
Actual:0.190.190.20

Reduce the expected rate of increase in motorcycle rider highway fatalities per 1,000 motorcycle registrations.

2005200620072008
Target:n/a0.750.760.76
Actual:0.73

Reduce the rate of large truck and bus fatalities per 100 million total vehicle miles traveled (VMT).

2005200620072008
Target:n/a0.1790.1750.171
Actual:0.184

(r) Revised; * Preliminary Estimate; #Projection

Funding for this performance goal: $9.4 billion.

This request allows the FHWA to continue delivering technical assistance, training, and public awareness programs to advance priorities in the delivery of national safety programs. Funds from this request will be used for a full range of highway safety related program efforts including: the implementation of new SAFETEA-LU provisions; redesign and construction of roadways and intersections to eliminate hazards; installation of safety improvement countermeasures, such as guardrails and rumble strips; and collection of crash and other safety-related data. Funds will also be used to assist state and metropolitan areas in developing plans and policies to improve safety and to educate decision makers within the transportation planning process on the importance of safety.

The resources requested to achieve this goal are:

($000)
FY 2007 FY 2007 TOTAL
STRATEGIC & PERFORMANCE GOALS FY 2006 CONTINUING PRESIDENT'S 2008
by PROGRAM ACTIVITIES ACTUAL RESOLUTION BUDGET REQUEST
I. Safety
A. Reduce Transportation-Related Deaths and Injuries
Federal-aid Highways (Excludes LAE) $ 8,266,041 $ 7,358,098 $ 9,147,878 $ 9,274,870
Transp. Infrastructure Finance and Innov. Act (TIFIA) 21,016 19,905 23,638 24,393
Surface Transportation Program 1,100,319 989,066 1,328,262 1,391,395
National Highway System 1,021,937 857,464 1,151,571 1,206,308
Interstate Maintenance 876,501 735,592 987,923 1,034,883
Bridge Program 782,909 657,095 882,510 924,460
Congestion Mitigation & Air Quality Improvement ----- ----- ----- -----
Highway Safety Improvement Program 855,716 705,715 944,286 992,497
Equity Bonus 1,345,047 1,385,939 1,618,902 1,887,426
Equity Bonus (Exempt) 146,970 146,970 146,970 146,970
Federal Lands Highways 161,331 146,219 198,086 208,950
Appalachian Development Highway System 71,153 60,501 80,455 80,563
High Priority Projects 510,992 425,804 574,757 564,970
Projects of National and Regional Significance 64,355 67,032 90,482 88,941
ITS Research 52,298 52,298 58,824 57,823
Transportation Research, Training and Education 14,123 15,619 15,885 15,614
Miscellaneous Programs 1,218,374 1,069,879 1,022,327 626,677
Emergency Relief Program 23,000 23,000 23,000 23,000
Appalachian Development Highway Systems (ADHS) 4,554 18,936 ----- -----
PROGRAM FUND:
SUBTOTAL PROGRAM FUND $ 8,270,595 $ 7,377,034 $ 9,147,878 $ 9,274,870
LIMITATION ON ADMINISTRATIVE EXPENSES $ 78,500 83,600 $ 86,379 $ 89,303
TOTAL REQUEST $ 8,349,095 $ 7,460,634 $ 9,234,257 $ 9,364,173
Mandatory [non-add] $ 169,970 $ 169,970 $ 169,970 $ 169,970
Discretionary [non-add] $ 8,179,125 $ 7,290,664 $ 9,064,287 $ 9,194,203
FTE (GOE & Federal-aid Direct) 601 640 699 692

Marginal Cost of Performance - Safety

SAFETEA-LU significantly increased funding dedicated towards Safety goal-related programs beginning in 2006 and established several new or expanded safety programs including the Highway Safety Improvement Program (HSIP) and Safe Routes to School (SRS) Program. This increase in resources will strengthen the ability of FHWA to provide the technical assistance, training, and delivery of national safety programs requested by the States to impact the overall fatality rate, thereby improving Agency operations and saving lives.

As noted in the tables below, the FHWA will focus its efforts on achieving a reduction in the overall highway fatality rate by advancing program initiatives that save lives in roadway departure, intersection, and pedestrian-related crashes. To project the number of lives saved, the fatality rate for each of these three crash types in 2003 is the baseline for comparison of actual lives saved in 2004 and subsequent years. Estimates of lives saved in 2006, 2007 and 2008 are based on a target fatality rate for each crash type and estimated vehicle miles traveled (VMT). While it is difficult to generalize, findings from a wide range of studies have led us to estimate that approximately one-third of the estimated total lives saved in future years will be due to engineering improvements resulting from program increases authorized in SAFETEA-LU. When combined, a projected 1,470 additional lives will be saved in 2008, compared with a baseline of 39,698 lives lost due to these three types of crashes. The incremental improvement from 2007 to 2008, based on a program funding increase of $130 million, is 250 lives saved.

Agency Output or Outcome Measure Associated with this Program Increase(s): Highway Fatality Rate, expressed as the number of lives saved in roadway departure per vehicle miles traveled, and the intersection-related and pedestrian-related crashes per population.

Performance Measure: Number of lives saved in roadway departure crashes. Baseline is 0.88 fatalities per hundred million vehicle miles of travel (VMT) in 2003. Target rate for 2008 is 0.86 fatalities per hundred million VMT.

Baseline Performance LevelFY 2004FY 2005FY 2006FY 2007FY 2008
TargetN/TN/T470 (r)630 (r)800
Actual523312N/AN/AN/A

Performance Measure: Number of lives saved in intersection-related passenger vehicle crashes. Baseline is 3.22 fatalities per hundred thousand population or 9,362 fatalities in 2003. Target rate for 2008 is 3.14 fatalities per hundred thousand population.

Baseline Performance LevelFY 2004FY 2005FY 2006FY 2007FY 2008
TargetN/TN/T240 (r)240 (r)240
Actual337233N/AN/AN/A

Performance Measure: Number of lives saved in pedestrian-related passenger vehicle crashes. Baseline is 1.64 fatalities per hundred thousand population or 4,774 fatalities in 2003. Target rate for 2008 is 1.5 fatalities per hundred thousand population.

Baseline Performance LevelFY 2004FY 2005FY 2006FY
TargetN/TN/T270 (r)350 (r)430
Actual180193N/AN/AN/A
Incremental Performance Target With Program Changes------------240250
(Total) Performance Target With Program Changes------------1,2201,470

Note: Actual VMT in 2004 was 2,963 million miles. The estimates used for VMT are 3,008 in 2005, 3,011 in 2006, 3,057 in 2007, and 3,145 in 2008.

N/T - No Target. N/A - Not Available. r - Revised

Performance Issue

After two consecutive years of decline in overall highway fatalities and impaired driving fatalities, and having achieved the lowest recorded fatality rate in history, the data reveal a setback in 2005. Total fatalities increased by 1.4 percent over 2004, to a total of 43,443 in 2005, a figure which includes a minimal decrease of alcohol-related fatalities by 0.2 percent to a total of 16,885 in 2005. Recent trends and annual targets for this performance measure are illustrated in Figure 1

.

Figure 1. Highway Fatality Rate, 1996 to 2008.

The increase in fatalities comes from the continued dramatic rise in the number of motorcycle fatalities and the increase in pedestrian fatalities over the previous year, which more than compensate for the slight decrease in motor vehicle occupant fatalities (- 0.7%).  Motorcycles continue to be of particular concern, playing a large role in the increase with a 13 percent increase in motorcycle fatalities in 2005, to a total of 4,553, an increase of more than 115 percent since 1997.  The number of pedestrian fatalities increased from 4,675 in 2004 to 4,881 in 2005, a 4.4 percent increase.

Fatalities often receive more public attention than injuries from traffic crashes; however, the societal toll in hospitalization, medical costs, lost productivity, pain and suffering are a significant burden on individuals and on our society.  Like fatalities, injury trends are dominated by highway crashes, accounting for 99 percent of all transportation-related injuries.  In 2005, approximately 2.70 million individuals were injured in police-reported motor vehicle crashes, a 3.2 percent decline from the 2.79 million individuals injured in 2004.

Motor vehicle crashes are the leading cause of death and disability for Americans age 4 through 34.  Traffic crashes cost our economy approximately $230.6 billion, or 2.3 percent of the U.S. Gross Domestic Product.  This figure includes $81 billion in lost productivity, $33 billion in medical expenses, and $59 billion in property damage.  Furthermore, this translates to an annual average of $820 for every person living in the United States.  The average cost for a critically injured survivor of a motor vehicle crash is estimated at $1.1 million over a lifetime.

The Department has made transportation safety its highest priority.  While firmly committed to meeting the 1.0 fatality rate goal, the Department has realized that we will not achieve this goal by FY 2008 as originally planned.  To continue making our roads safer, a cross-modal working group has been established to identify new strategies and technologies that will reduce highway fatalities.  New performance targets have been established in key areas to focus the Department’s efforts on the critical factors responsible for the overall highway fatality rate increase.  These key focus areas include passenger vehicle occupants, non-occupants (pedestrians, cyclists, etc.), motorcycle riders, and large trucks and buses.  They were chosen in part to cover the breadth of all road users.  In addition to the establishment of new performance measures for these focus areas; each mode will continue to maintain their agency-specific intermediate outcome measures, many of which serve as a subset to the Department’s accountability measures.  The DOT overall fatality rate target for 2008 is 1.37 fatalities per 100 million vehicle miles traveled (VMT).

Reduce the rate of passenger vehicle occupant highway fatalities per 100 million passenger vehicle miles traveled (VMT).

DOT has established a long-term outcome measure: Reduce the passenger vehicle occupant fatality rate (includes passenger cars, pickup trucks, vans, and SUVs) to 1.06 by 2008.  The passenger vehicle occupant fatality rate has declined sharply since 1995 when the rate was 1.44.  In 2005 (the latest rate data available), the passenger vehicle occupant fatality rate declined to 1.14.  The number of passenger vehicle occupant fatalities decreased in 2005 to 31,415 from 31,866 in 2004.

The 2005 Fatality Analysis Reporting System (FARS) data show passenger vehicle occupant fatalities decreased by 1.4%; occupant fatalities in passenger cars declined by 3.9%, while occupant fatalities in light trucks and vans (LTVs) – to include sport utility vehicles (SUVs), vans and pickup trucks) increased by 2.4%.  The increase in LTV fatalities was largely impacted by a 3.4 percent increase in occupant fatalities in pick up trucks.

A further reduction in occupant fatalities and the passenger vehicle occupant fatality rate can be achieved by increased availability of front and side airbags, increased seat belt use, a reduction of alcohol and drug impaired driving and increased use of age-appropriate child safety seats.  Consequently, DOT has set a 2008 target rate of 1.06 fatalities per 100 million passenger vehicle miles traveled.

Reduce the expected rate of increase in motorcycle rider highway fatalities per 1,000 motorcycle registrations.

While 20 percent of passenger vehicle crashes result in injury or death to occupants, an astounding 80 percent of police-reported motorcycle crashes result in injury or death to involved riders.  Motorcycle rider fatalities have increased each year since reaching a historic low of 2,116 fatalities in 1997.  In 2005 motorcycle rider fatalities increased to 4,553 (increasing for the 8th year in a row), from 4,028 in 2004.  This is a 13 percent increase in just one year and accounts for 10.5 percent of the 43,443 total fatalities in motor vehicle crashes in 2005.

Data from 2005 show that motorcycle rider fatalities increased for every age group; however, the largest increase was in the “50 and over” age group, followed by the “20‑29” and the “30-39” age groups.  Significant increases again occurred among older riders (40+) who are primarily riding large engine (1,001 cc and above) motorcycles.  Increases also continued to occur among younger riders (less than 30) riding medium engine (500-1,000 cc) motorcycles.  In addition, speed continued to be a major contributing factor in motorcycle crashes especially among the younger riders.  Likewise, the number of motorcycle riders killed in alcohol-related crashes increased by 10 percent.

In 2005, 20 States, the District of Columbia, Puerto Rico, Guam, the Virgin Islands, and two other U.S. territories required helmet use by all motorcycle operators and passengers.  In another 27 States, only persons under a specific age, usually 18 were required to wear helmets.  Three States had no laws requiring helmet use.

According to the Motorcycle Industry Council (MIC), new unit motorcycle sales continued to climb in 2004 (latest data available), rising through the one million mark and reaching levels not seen since the 1970s.  MIC data indicates that in 2004, 725,000 new-on-highway motorcycle units were sold, marking the 12th consecutive year of growth for the U.S. motorcycle market.  As a result, State operator training programs continue to have difficulty meeting the increased demand for their services.

VMT is usually considered the best measure for exposure since it measures actual miles traveled.  However, given that both fatalities and registrations climbed significantly over this period, the lack of change in VMT does not seem credible.  Fatality data is collected through FARS and it represents a complete census of all fatal crashes in the U.S.  Registration data is collected by the states and provided to the Federal Highway Administration which is responsible for the collection and publication of all exposure data (registration, VMT, licensed drivers).  The VMT data collected by the Federal Highway Administration are from estimates gathered by individual states.  However, state reporting of motorcycle VMT to FHWA is optional.  Even in states that report motorcycle VMT, it is often only measured as a standard proportion of total VMT rather than being collected directly through surveys or roadside counters.  FHWA estimates VMT for states that do not report based on data from states that do report.  The accuracy of these counts is thus quite speculative.  Additionally, motorcycle ridership (i.e. state registration), is itself dependent on high oil prices and successful marketing.  For FY 2008, the Department re-baselined this measure to reflect a change of focus from fatalities per 100 million VMT to fatalities per 1,000 registrations.

DOT has set its motorcycle rider fatality rate for FY 2008 at 0.76.  Like other road users who are urged to protect themselves from injury or death by wearing seat belts, driving unimpaired, and observing traffic rules, many motorcycle deaths could be prevented if motorcyclists would take responsibility for ensuring they have done everything possible to make the ride safe by taking operator training, wearing protective gear including helmets, and riding sober.

Reduce the rate of non-occupant highway fatalities per 100 million VMT.

According to the 2005 data, the number of non-occupants of all types (pedestrians, pedal cyclists and occupants of motor vehicles not in transport and of non-motor vehicle transport devices) killed in motor vehicle crashes increased by 5.7 percent, to 5,849 fatalities in 2005, as compared to 5,532 in 2004.  The increase in the non-occupant fatality rate was impacted most by the 4.4 percent increase in pedestrian fatalities and the 7.8 percent increase in pedalcyclist fatalities.  To re-align the non-occupant fatality rate goal with current trends, DOT has re-baselined the measure and has set its FY 2008 target to 0.19 fatalities per 100 million VMT.

Reduce the rate of large truck and bus fatalities per 100 million total vehicle miles traveled.

The new DOT large truck and bus sub-measure will track fatalities involving both occupants and non-occupants in a crash involving a truck with a gross vehicle weight rating of 10,000 pounds or more and/or motor coach)  This new measurement will use total VMT, rather than truck VMT.  Total VMT captures the traffic volumes of all vehicles, which is important given that approximately three-fourths of fatal large truck crashes in recent years have involved a passenger vehicle.  The FY2008 target for large truck and bus fatalities is 0.171.

In addition, the FHWA safety program continues to concentrate efforts on reducing the number of fatalities in three types of crashes:  roadway departures, crashes at or near intersections, and collisions involving pedestrians.  Approximately 60 percent of the fatalities occurred in roadway departure crashes in 2004; i.e., those involving a single vehicle running-off-road in or a head-on or sideswipe collision with another vehicle.  Roadway departures fatalities in 2005 were 25,388, a slight decrease from 2004.  Fatalities for intersection-related fatal crashes in 2005 were 9,188 and 4,881 for pedestrian-related fatalities. Both figures represent slight increases from 2004. 

While FHWA has adopted several safety-related performance measures, the highway fatality rate measure is shared by the other DOT modal administrations and is included in the Program Assessment and Rating Tool (PART) assessment of the Highway Infrastructure Program.

FHWA safety-related programs and funding continue to yield benefits for communities across the U.S., including improvements in system conditions and operations.  Construction programs improve the safety of roadway designs and operations, improve the condition of bridges, and remove roadway hazards.  As illustrated in Figure 2, FHWA actively pursues improved highway safety through a comprehensive, multi-faceted approach, which recognizes the role of Engineering, Education, Enforcement, and Emergency medical services (the 4E’s) in delivering effective programs and projects.

Figure 2. Relationship between Safety-Directed Program Outputs and Outcomes.

As part of its comprehensive safety program, FHWA staff worked closely with state highway engineers and law enforcement officials to identify appropriate engineering safety countermeasures for high-risk locations and new roads.  Examples include promoting greater use of roadway improvements such as upgraded guardrails and rumble strips, greater use of retroreflective signage and improved markings, and the removal of roadside hazards.

The FHWA pursues improved intersection safety through a multidisciplinary approach that includes working with industry partners to develop solutions and strategies including: engineering and technology improvements, intersection safety audits, red-light cameras, training for local safety professionals, and increased public awareness.  The Intelligent Transportation Systems (ITS) Program continued efforts to develop technology-based systems that could significantly reduce intersection crashes.  A major component was the recent construction of an intersection safety test facility at FHWA’s Turner Fairbank Highway Research Center and the development of a Cooperative Intersection Collision Avoidance System (CICAS) to help drivers avoid crashes at intersections.  The CICAS is one of the Department’s priority ITS programs, and it seeks to assist drivers in making safe turns at signalized and unsignalized intersections.

To counter the serious issue of pedestrian fatalities, FHWA continues to actively pursue improved safety through a comprehensive approach.  This includes partnering with State and local officials, concerned citizens, local business leaders, schools and youth organizations and incorporates targeting crash causes in major urban areas and select rural locations.

As an integral part of the overall DOT safety program, FHWA continues to work with the National Highway Traffic Safety Administration (NHTSA), the Federal Motor Carrier Safety Administration (FMCSA), the Federal Railroad Administration (FRA) and the Federal Transit Administration (FTA) to develop comprehensive approaches to improve traffic safety.

Management Challenge:  Building on Recent Initiatives to Further Strengthen Surface Safety Programs.

To reduce the number and rate of fatalities in traffic-related crashes, the FHWA launched a performance-based approach to safety in FY 2005 that better focuses resources on 16 identified States where the greatest opportunity exists to save lives; these are known as “Opportunity States.” As part of this effort, FHWA realigned staff, funding, and program priorities to support a focused approach that concentrates on reducing run-off-the road, intersection, and pedestrian-related fatalities in these States.  The Opportunity State designations were retained in FY 2006 and FY 2007.

In addition, FHWA partnered with States to provide support and technical assistance in the development and implementation of safety plans as part of their efforts to advance safety within their States.  SAFETEA-LU requires each State to develop a Strategic Highway Safety Plan (SHSP) through a collaborative, comprehensive and data-driven approach. SAFETEA-LU significantly increased funding for Safety goal-related programs beginning in 2006 and established several new or expanded safety programs including the HSIP and SRTS programs. This increase in resources strengthens the ability of States and locals to deliver effective safety programs which lower the overall fatality rate and which save lives.

SAFETEA-LU requires that States develop a comprehensive, data-driven program whose purpose is to reduce fatalities and serious injuries, and to direct Federal-aid highway safety resources toward programs and projects which will have the greatest positive impact within that State.  The FHWA does not have the authority to direct the States to address specific safety needs with Federal Aid funds; however States may use funds provided for collection and analysis of safety data, development and implementation of Strategic Highway Safety Plans, and related efforts which maximize the effectiveness of investments in terms of lives saved and injuries prevented.  By implementing the focused approach to safety within FHWA and among the States, and with effective implementation of the HSIP and other Safety programs within SAFETEA-LU; the Agency believes the national fatality and crash rates will be significantly reduced.

Anticipated FY 2007 Accomplishments

FHWA plans to continue implementing a focused approach to improving highway safety.  Specific topic areas of importance within targeted focus States will be designated for attention, including fatality-producing crashes which involve roadway departure, intersections, and pedestrians; and assistance will be provided to reduce fatalities in these areas.  Assistance to States in the development of Strategic Highway Safety Plans will continue.  All States are to have developed a SHSP by the end of FY 2007.  During FY 2007, the FHWA will continue to focus upon States with higher fatality rates to implement proven measures to enhance safety and assist State and local governments to implement safety programs.  These actions will help the FHWA meet the following objectives:

Progress in these areas should contribute to a downward trend in the national fatality rate, which translates into an increase in lives saved.

Federal Lands Highway (FLH) will implement the Safety Management System (SMS) for the U.S. Fish and Wildlife Service Refuge Road Program.  The system will provide valuable safety accident and fatality data that will enable FHWA and its partners to develop targeted strategies to address problem areas.  Similarly, FLH anticipates significant progress towards completing a SMS for the Forest Highway Program.  The Forest Highway Program is unique in that project delivery decisions are addressed through a tri-party agreement between FHWA, the U.S. Forest Service and the State departments of transportation.  Individual arrangements in 42 states make the collection of safety data challenging, since many of the Forest Highways are owned by multiple jurisdictions.   Through a partnership with the National Park Service, the Park Roads and Parkways Program will complete a new Safety Summary Report and gather significant data on crashes in our national parks.  In addition, in collaboration with the NPS, a final determination will be made on a future Crash Data System.  A pilot Crash Record System for the Indian Reservation Road (IRR) Program will be developed in collaboration with the Bureau of Indian Affairs.  Outreach to the tribes will be undertaken to encourage their participation in sharing safety data to support the pilot system. FLH will participate in Road Safety audits planned for various Tribal lands in Arizona, New Mexico, and North Dakota.

FY 2008 Performance Budget Request

Federal-aid Highway Program

Safety funding consists of two basic types of FHWA funding sources: funds dedicated to safety purposes such as the Highway Safety Improvement Program (HSIP), and funds utilized by States to support safety infrastructure and operational improvements as part of Federal-Aid programs such as National Highway System (NHS) and Surface Transportation Program (STP).  The Federal-Aid Highway program funds are used by States to improve the safety of roadway designs and operations, improve the condition of bridges, and remove roadway hazards.

FHWA will continue to assist States with the development of Strategic Highway Safety Plans (SHSP) and safety planning where data show a need to improve injury and fatality rates.  The Highway Safety Improvement Program (HSIP) will continue to provide States with flexibility to use safety funds for projects on all public roads and publicly owned pedestrian and bicycle paths, and to focus efforts on implementation of a State SHSP.  States are required to collect data, analyze highway safety problems and produce a list of projects to be funded based upon the analysis.  Data analyses will identify specific countermeasures, which can include installing traffic control devices at high crash locations, establishing roadway departure warning devices including rumble strips, and improving highway signage and pavement marking.

Rural road fatality rates are over three times higher than on the Interstate.  To address these higher rural road fatalities, highway safety program funds will provide a foundation for safety improvements in areas where the greatest need exists.  The High Risk Rural Road section of the HSIP sets aside $90 million for FY 2008 to address safety considerations and develop countermeasures to reduce these higher rural road fatalities.

FHWA will also continue to concentrate its efforts in reducing the severity of crashes through roadway infrastructure and operational improvements.  Planned activities include funding improvements to the national infrastructure and promoting better geometric design, utilizing more durable pavement markings, installing more visible roadside signs, and increasing skid-resistant roadway surfaces to enhance safety.  The continued use of Road Safety Audits assists communities with safety improvements in the construction of new roadways and reconstruction of existing roadways.

An example of how effective roadway safety improvements can be in reducing crashes and fatalities is a cable median barrier program implemented in South Carolina.  Cable median barriers were installed on the Interstate system in an effort to reduce the potential for median crossover crashes.  Multiple sources of funds, including Federal aid funding, were used for these improvements.  The cable median barrier reduced the number of annual fatal Interstate median crossover crashes by 67 percent, from before installation in 2000, through 2003.

Pedestrian safety programs and intersection improvement plans will also be addressed through the HSIP program.  An example of a pedestrian project that was implemented in Montgomery County, Maryland, involved the development of new design standards for sidewalks and bike paths on residential and collector roads.  The new standards support safe passage for motorists, pedestrians, bicyclists and address issues such as increasing the clear zones on higher speed collector roads and aligning the dimensions of slope of shoulders, ditches and driveways to provide pedestrian facilities in accordance with the American with Disabilities Act.  In addition to pedestrian-oriented projects supported by the HSIP, the new Safe Routes to School (SRTS) program empowers communities to make walking and bicycling to school a safe and routine activity. The program supports a wide variety of programs and projects, from safer street crossings to establishing programs that encourage children and their parents to walk and bicycle safely to school.

In one area to address intersection safety, FHWA will work with the Federal Railroad Administration and the Federal Transit Administration to further reduce the number of incidents at public highway-rail grade crossings.  The number of crashes at crossings has been reduced by 75 percent since 1975 with the installation of lights and gates, signing and roadway geometric improvements.  In FY 2008, $220 million is set aside to address crossing safety countermeasures. An example of an intersection safety project involved the redesign of a traffic circle in Colonie, New York, incorporating improved safety features.   The circle was constructed in 1934 and formed an interchange between two busy state highways. A frequent accident site, the circle was improved with new approach signs and pavement markings to minimize driver confusion.  The approaches were redesigned with new curbs, aprons and signage.  Wet/night reflective markings were used to maximize the effectiveness even under adverse weather conditions.  These safety improvements enhanced the ability of drivers to safely move through the traffic circle.

Federal Lands Highway

Federal Lands Highway will advance its safety initiatives to the next level.  For programs that are completing the development of data systems such as the Refuge Road and Parks Roads and Parkways Programs, FLH will execute safety strategies based on the safety data and deploy strategies to strengthen our approach for planning, designing, and constructing roads and bridges in our parks and refuges.  For programs in the final stages of completing an SMS, such as the Forest Highway and IRR programs, FLH will be focusing on effectively gathering data to support the requirements of the new systems.  Generally, the goal is to move from the tool development stage to the development and deployment of corrective actions phase based on what the safety data is telling us.  The outcomes should be a safer visitor experience at parks, refuges and forests and safer travel for tribal members who use IRR facilities daily.

Research and ITS

Four critical crash areas will continue to be addressed in FY 2008: roadway departure crashes, intersection fatalities, pedestrian fatalities, and establishment of a strategic approach to improving highway safety.  To address roadway departure crashes, research funds will support activities that include the refinement and implementation of the Interactive Highway Safety Design Model (IHSDM), efforts to enhance roadway and roadside visibility, and activities to improve the crashworthiness of road and roadside safety features.  Outreach activities, including training courses, implementation materials, and demonstration and evaluation of technologies, will be critical components of this program.

To reduce intersection fatalities, research funds will support identification and evaluation of innovative infrastructure and operational configurations at both signalized and non-signalized intersections.  Examples of such designs are a Diverging Diamond and Continuous Flow Intersections.  Road safety audit training and promotion of intersection safety analysis tools will be critical components of this program area. ITS technologies such as ITS based intersection crash avoidance systems will be developed and tested.  In cooperation with the automobile industry, work will also continue to develop integrated vehicle based safety systems and to pursue vehicle to vehicle and vehicle to roadside communications.

In addition, the FHWA will conduct numerous safety research projects that contribute to multiple objectives.  These include work on speed management in evaluating variable speed limits and further analysis of rational speed limits; safety management in commercialization of the Digital Highway Measurement Vehicle; deploying the first version of the Safety Analyst software/starting the development of the next version of Safety Analyst; evaluating the effectiveness of various safety improvements; developing and operating the fifth generation of the Highway Safety Information System; advanced visibility technologies; and work on human-centered systems to incorporate human factors considerations into all aspects of highway design.

To address the problem of pedestrian fatalities, research and ITS funds will enable FHWA to continue to work in cooperation with the NHTSA on developing and evaluating comprehensive countermeasures and appropriate tools and technologies to improve pedestrian safety; integrating pedestrian issues in the planning, design, operations, and maintenance of roadway facilities; and implementing key recommendations from our partners and customers.  New initiatives for FY 2008 include evaluation of the impacts of traffic calming designs and development of expert systems to evaluate pedestrian and bicycle improvements opportunities.

Research funds will also be used to develop, demonstrate, and implement techniques for States to collect better safety data; to use the information appropriately to support Strategic Highway Safety Plans; and to evaluate the success of safety programs.  This will ensure that resources are allocated so as to provide maximum returns in reducing the severity and frequency of crashes.  Results from the FHWA-managed Evaluation of Safety Countermeasures Pooled Fund Study will also be advanced and reported on.

Limitation on Administrative Expenses

FTE and administrative resources associated with this strategic initiative are as follows:

692 FTE and $89.3 million

The Safety strategic initiative is supported by information technology through a number of mission support and management data systems utilized by staff in delivering the program:

Fatality Analysis Reporting System (FARS):  FARS, which is managed by the National Highway Traffic Safety Administration, is the primary database for Federal level highway safety analysis.  It contains data on all fatalities on public roads within the 50 States, DC and Puerto Rico; and is used by USDOT staff to analyze trends and characteristics of fatality-producing crashes.

Highway Performance Monitoring System (HPMS):  The HPMS is a national level highway information system that includes data on the extent, condition, performance, use, and operating characteristics of the Nation's highways. In general, the HPMS contains administrative and extent of system information on all public roads, while information on other characteristics is represented in HPMS as a mix of universe and sample data for arterial and collector functional systems. VMT data from the HPMS are used to determine the highway fatality rate.

FHWA uses HEPGIS Software and GIS expertise to support the Safety, Mobility, Global Connectivity, Environment, Organizational Excellence and Security strategic initiatives though the analysis and display of information.  The primary function of HEPGIS is the display of data that is the official record of the National Highway System (NHS), NHS connectors, Strategic Highway System (STRAHNET), STRAHNET connectors and the Interstate.  The output of GIS is used to analysis the transportation system, share information with other agencies and define which roads are eligible for Funds. GIS is also used to make this information available over the Internet.

Responsible Official:  Mr. Jeffrey Lindley, Associate Administrator for Safety

REDUCED CONGESTION

DOT Performance Goal: Reduction in urban congestion.

This funding request contributes to the DOT Reduced Congestion strategic objective and the performance outcome goals to achieve a reduction in urban congestion.

Percent of total annual urban-area road travel time that occurring in congested conditions.

2002200320042005200620072008
Target:30.931.632.333.033.732.532.3
Actual:30.7(r)31.0(r)31.6(r)31.8#32.6#  

(r) Revised; * Preliminary; # Projection

Funding for this performance goal: $6.6 billion.

This request will allow FHWA to fund transportation-related improvements that address traffic congestion in urban areas and will support the Department's Congestion Initiative. The Nation's transportation system can be improved by advancing a variable pricing program that increases throughput. Funds will be used to improve the performance of our existing transportation system through operational and management improvements, and by increasing physical capacity. Operation and management strategies to improve performance of the existing transportation system include: travel demand management practices (to include variable pricing of facilities); implementing infrastructure- and operational-oriented strategies to mitigate traffic bottlenecks; improving management of freeway and arterial systems; and enhancing decision-making through the use of more robust traffic analysis tools, the integration of system management and operation considerations into the Planning process; and the establishment of partnerships that include all of the key agencies in a region.

Also, FHWA will continue developing the next generation of system operations capabilities that improve real-time information collection and dissemination to enable State and local transportation agencies to better quantify performance, better utilize reductions in congestion management techniques, and place better information in the hands of transportation decision-makers. In addition, funds will be used to improve the performance of the existing transportation system and increase physical capacity. The capacity and performance of the physical infrastructure can be increased in specific locations or corridors by building new facilities, adding lanes to existing facilities, or removing bottlenecks.

The resources requested to achieve this goal are:

($000)

STRATEGIC & PERFORMANCE GOALS by PROGRAM ACTIVITIES FY 2006 ACTUAL FY 2007 CONTINUING RESOLUTION FY 2007 PRESIDENT'S BUDGET TOTAL 2008 REQUEST
II. Reduced Congestion
A. Reduction in urban congestion
Federal-aid Highways (Excludes LAE) $ 5,833,758 $ 5,220,226 $ 6,473,435 $ 6,547,598
Transp. Infrastructure Finance and Innov. Act (TIFIA) 17,968 17,018 20,211 20,856
Surface Transportation Program 790,795 710,837 954,616 999,989
National Highway System 832,149 698,221 937,708 982,279
Interstate Maintenance 840,245 705,165 947,058 992,076
Bridge Program 620,881 521,105 699,869 733,137
Congestion Mitigation & Air Quality Improvement ----- ----- ----- -----
Highway Safety Improvement Program ----- ----- ----- -----
Equity Bonus 966,680 996,068 1,163,498 1,356,485
Equity Bonus (Exempt) 105,627 105,627 105,627 105,627
Federal Lands Highways 115,948 105,087 142,364 150,171
Appalachian Development Highway System 78,861 67,055 89,171 89,291
High Priority Projects 436,898 364,062 491,417 483,049
Projects of National and Regional Significance 64,630 67,320 90,869 89,322
ITS Research 11,395 11,395 12,817 12,598
Transportation Research, Training and Education 59,511 65,819 66,938 65,798
Miscellaneous Programs 875,640 768,917 734,742 450,390
Emergency Relief Program 16,530 16,530 16,530 16,530
Congestion Initiative -- Value Pricing Program ----- ----- ----- [$100,000]
Appalachian Development Highway Systems (ADHS) 3,273 13,609 ----- -----
Emergency Relief Supplemental (GF) 983,924 ----- ----- -----
PROGRAM FUND:
SUBTOTAL PROGRAM FUND $ 6,820,955 $ 5,233,835 $ 6,473,435 $ 6,547,598
LIMITATION ON ADMINISTRATIVE EXPENSES $ 64,741 59,312 $ 61,126 $ 63,043
TOTAL REQUEST $ 6,885,696 $ 5,293,147 $ 6,534,561 $ 6,610,641
FTE (GOE & Federal-aid Direct) 496 454 494 488

Performance Issue

Traffic congestion on the Nation's highways has steadily increased over the past 20 years as population, number of drivers and vehicles, and travel volume continue to increase at a much faster rate than system capacity. According to the Texas Transportation Institute, drivers experience 3.7 billion hours of delay and waste 2.3 billion gallons of fuel annually due to traffic congestion. The economic impact of congestion, including wasted fuel and time, was estimated to be over $63 billion in 2003. Over 60 percent of the cost was experienced in the 10 metropolitan areas with the most congestion. In addition, many of the major urban centers in the U.S., such as Los Angeles/Long Beach CA, are significant freight hubs. The volume of freight that moves through these urban centers is predicted to continue to grow. Freight movement affects traffic congestion levels and is impacted by congestion in urban centers.

The DOT and FHWA adopted the percent of daily-congested travel nationwide as an indicator of overall system performance. The measure is an estimate of the percent of daily traffic in approximately 400 urbanized areas moving at less than free-flow speeds. The FHWA includes this long-term congestion measure within the FAHP PART assessment. As noted in figure 3, the percent of congested travel was 31.8 percent in 2005, a figure below the projected level of 33.2 percent (and the target of 33.0 percent). The actual result was 0.2 percent higher than in 2004, a rate slightly below the projected increase of 0.7 percent. On the whole, recent results suggest that the overall rate of growth in traffic congestion nationwide has slowed somewhat. The goal in FY 2008 is to reduce the level of congestion by 0.2 percent relative to the FY 2007 target level.

In addition, the rate of growth in traffic congestion nationwide appears to be slowing based on the analyses of real-time traffic data that the FHWA collected during 2004-2005 from travel information websites and transportation management centers in selected cities. Upcoming analysis of 2006 data from transportation management centers in 20 cities will provide more detailed information on congestion growth rate trends during 2005-2006.

Figure 3. Percent of Travel under Congested Conditions, 1997-2008.

Figure 3. Percent of Travel under Congested Conditions, 1997-2008.

Innovative strategies to reduce congestion are now available. For example, new advances in technology can greatly improve system operations and management and provide for the application of pricing. In addition successful congestion reducing demonstrations in major cities around the world have proven that congestion pricing strategies are effective. Furthermore, a number of freeway and arterial management strategies are available to address recurring congestion. For example, poorly timed traffic signals cause approximately 10 percent of congestion. Often signals are initially timed, but not re-adjusted when traffic patterns changes. This results in inefficiency and unnecessary delays. Effective and low-cost options are currently available to address this problem.

As illustrated in Figure 4, the FHWA will pursue several broad strategies that are aimed at reducing congestion in urban areas. A high priority will be placed on establishing Urban Partnership Agreements where model cities commit to implement a broad congestion pricing or variable toll demonstration; create or expand express bus services; secure agreements from major area employers to establish or expand telecommuting and flex scheduling programs; and complete significant highway capacity projects that have high potential for reducing congestion and bottlenecks. A significant body of knowledge will be developed to support the Agreements and to extend the resulting successes to the broader community. Effort will also focus on developing and promoting improved freeway and arterial management strategies. In addition, improved decision-making frameworks and practices that encompass all relevant information points (e.g., system management and operations) will be developed and supported through to institutionalization in the planning process.

Figure 4. Relationship between Urban Congestion Reduction Program Outputs and Outcomes.

Figure 4. Relationship between Urban Congestion Reduction Program Outputs and Outcomes.

Increasing the capacity of the highway infrastructure is also an important approach to reducing traffic congestion.  The capacity of the physical infrastructure can be increased in specific locations or corridors by building new facilities, adding lanes to existing facilities, or removing bottlenecks.  In addition, FHWA will implement SAFETEA-LU programs to fund designated projects that will add capacity to the National Highway System.  The Projects of National and Regional Significance Program involves 25 projects and $1.779 billion in funding over five years.  The National Corridor Infrastructure Improvement Program involves 33 projects and $1.948 billion in funding over 5 years.

To advance the opportunity for public private financing, FHWA will provide technical assistance and share information with other government partners so that they can assist legislators at all government levels to develop enabling legislation that would permit public-private financing arrangements for select projects, thus leveraging public funds to increase investment in tolling and pricing demonstration projects and capacity expansion projects.  FHWA will also consider the use of credit assistance through the Transportation Infrastructure Finance and Innovation Act (TIFIA) credit program, if proposed projects meet the established criteria.  The TIFIA program was the subject of a Program Assessment Review (PART) during the FY 2008 budget cycle and is discussed in   Section 3.

Anticipated FY 2007 Accomplishments

Congestion reduction should be achieved in areas where there are higher levels of investment in adding system capacity and removing bottlenecks, more emphasis on effective congestion partnerships that promote tolling and pricing strategies, collection and dissemination of real-time information, and other effective operational practices.  By focusing efforts on these areas, FHWA anticipates progress in meeting the following objectives:

FY 2008 Performance Budget Request

Federal-aid Highway Program

Value Pricing Pilot Program:   $100 million

In support of the Department’s Congestion Initiative, the budget proposes to reprogram $100 million from unobligated balances of inactive highway demonstration and other projects for the Value Pricing Pilot Program.  The $100 million would be in addition to the $12 million authorized in SAFETEA-LU for the Value Pricing Pilot Program in FY 2008, bringing the total program to $112 million.  This infusion of funds would allow FHWA to accelerate progress in advancing the Urban Partnership Agreement track of the Congestion Initiative, which aims to implement pricing programs in selected metropolitan areas.  Specifically, the funding would be used to assist selected States in constituency building, outreach, program development, implementation and/or evaluation related to charging for the use of portions of their highway systems so as to better manage demand and enhance system performance.

Highway funds apportioned to the States will continue to be used to increase roadway throughput by adding system capacity, either as new roadways or transit routes, added traffic lanes, or additional buses in specific locations where congestion is recurring.  States and local governments will also use these funds to improve traffic flow through more effective systems management and operations, including variable pricing programs, providing better information to travelers to allow them to choose departure times, travel modes, and routes that may mitigate congestion problems. The capacity of the physical infrastructure can be increased in specific locations or corridors by building new facilities, adding lanes to existing facilities, or removing bottlenecks. 

In the following paragraphs, two major projects are described which illustrate how the uses of FAH funds contribute to reducing congestion:

In FY 2008, FHWA will provide technical assistance to all parties involved in Public Private Partnerships (PPP) issues from both a programmatic and project level.  The PPP program will be reaching out to state representatives, state DOTs, private sector interests, and private financial community representatives to explain and demonstrate how financing tools and PPP methods have worked successfully to build roads and highways faster and more economically.  FHWA will share information with state government and private industry and financial representatives about the advantages of using innovative partnerships by developing and disseminating PPP technical materials.  Program staff will prepare a revised technical manual, which will be of value to those who will be interested in using PPPs to more easily accomplish their objectives.  Staff will also be presenting PPP best practices and highlighting successful examples of PPPs used throughout the country at meetings and conferences during the year.  FHWA will assist in the implementation of the Secretary’s Congestion Initiative by encouraging states to enact PPP enabling legislation, working with states and others to overcome institutional resistance by  explaining how the process works and what was done to achieve success, and identifying and utilizing Federal program authorities to encourage the formation of PPPs.

Federal Lands Highway

FLH will use identified funding to reduce congestion by continuing to implement alternative transportation solutions on all Federal lands.  FLHP funds will be used to support capacity expansion, including the use of buses in national parks, national forests, fish and wildlife refuges, and Indian Reservations, as well as operational improvement approaches.  FHWA is coordinating a joint effort with the Department of Interior to create a process for external reviews of the Park Road and Parkways Program.  These activities are referred to in the PART assessment of the Federal Lands Highway Program.

Research and ITS

Global Positioning System Civil Requirements:  $3.6 M
The Secretary of Transportation proposes to provide resources to the Secretary of Defense for assessment, development, acquisition, implementation, operation, and sustaining of additional designated Global Positioning System civil capabilities beyond the second and third civil signals already contained in the current Global Positioning System Program.  FHWA requests the reprogramming of $3.6 million of unobligated balances of highway funds to be used to develop the new GPS L1C civil signal (modernized signal compatible with the EU Galileo Open Service signal on the new GPS III satellites), and for GPS Civil Signal Monitoring that entails software and hardware upgrades for global monitoring of all civil signals to include L1C/A, L2C, L5, and L1C.

Effectively addressing traffic congestion will hinge on the ability of FHWA and State and local transportation agencies to transform traditional transportation organizations into modern agencies using advanced technologies to improve management and operations.  ITS technologies have been researched, deployed, and tested during the past decade to improve the operation of the highway system and mitigate congestion.

Specifically, FHWA will use FY 2008 R&D and ITS funding to:

DOT Performance Goal: Increased use of integrated ITS networks and new incident management approaches.

This funding request contributes to the DOT Reduced Congestion strategic objective and the performance outcome goal to increase use of integrated ITS networks and new incident management approaches.

Percent of U.S. population with access to 511 travel telephone service.

2002200320042005200620072008
Target:N/T30%35%40%50%65%75%
Actual:14%17%25%28%35%

Percent of top 40 metropolitan areas with full service patrols, quick clearance policies, and quick clearance laws.

2002200320042005200620072008
Target:Establish baselines for each measure in FY 2007.

Funding for this performance goal: $3.4 billion.

This request will allow FHWA to fund efforts aimed at minimizing the impact of events that occasion non-recurring congestion, to include traffic incidents, construction (work) zones, and weather. Activities will proceed along two tracks: (1) Providing travelers with the information they require to make better decisions about the routes to take, the times to travel, and mode to use, and (2) Mitigating the negative mobility impacts associated with traffic incidents, work zones, and weather. With respect to the first track, the requested funds will allow FHWA to pursue the next generation of ITS-based system operations capabilities that improve the collection of real-time information and its dissemination to the traveling public and operating agencies. Also the requested funds will support technological improvements aimed at developing and implementing integrated approaches to corridor management where travelers will receive, in real-time, information on the status of alternate modes in a given corridor. The second track targets transportation-related improvements that address expanding the application of effective incident, construction (work) zone, and road weather management approaches. Funds will be used to advance incident management approaches that more rapidly clear incidents from the roadway, and encourage the planning for, establishing, and managing of work zones in ways that consider the broader safety and mobility impacts of work zones across all stages of a project. Because traffic incidents account for roughly one-quarter of congestion, a high-priority emphasis area aimed at increasing the deployment of full-service (incident-oriented) patrols, and Quick Clearance policies and laws has been identified. In addition, funds will provide for ITS-based solutions to improving road weather management.

The resources requested to achieve this goal are:

($000)

STRATEGIC & PERFORMANCE GOAL by PROGRAM ACTIVITIES FY 2006 ACTUAL FY 2007 CONTINUING RESOLUTION FY 2007 PRESIDENT'S BUDGET TOTAL 2008 REQUEST
II. Reduced Congestion (continued)
B. Increased use of integrated ITS networks and new incident management approaches
Federal-aid Highways (Excludes LAE) $ 2,968,053 $ 2,655,905 $ 3,293,502 $ 3,331,236
Transp. Infrastructure Finance and Innov. Act (TIFIA) 9,142 8,659 10,283 10,611
Surface Transportation Program 402,334 361,654 485,682 508,767
National Highway System 423,374 355,235 477,079 499,756
Interstate Maintenance 427,493 358,768 481,837 504,740
Bridge Program 315,887 265,124 356,074 373,000
Congestion Mitigation & Air Quality Improvement ----- ----- ----- -----
Highway Safety Improvement Program ----- ----- ----- -----
Equity Bonus 491,819 506,772 591,955 690,142
Equity Bonus (Exempt) 53,740 53,740 53,740 53,740
Federal Lands Highways 58,991 53,465 72,431 76,403
Appalachian Development Highway System 40,123 34,116 45,367 45,429
High Priority Projects 222,282 185,225 250,019 245,762
Projects of National and Regional Significance 32,882 34,250 46,232 45,444
ITS Research 5,797 5,797 6,521 6,410
Transportation Research, Training and Education 30,278 33,487 34,056 33,476
Miscellaneous Programs 445,501 391,203 373,816 229,146
Emergency Relief Program 8,410 8,410 8,410 8,410
Congestion Initiative -- Real-time System Mgmt Info Program & Research ----- ----- ----- [$50,000]
Appalachian Development Highway Systems (ADHS) 1,665 6,924 ----- -----
Emergency Relief Supplemental (GF) 500,593 ----- ----- -----
PROGRAM FUND:
SUBTOTAL PROGRAM FUND $ 3,470,311 $ 2,662,829 $ 3,293,502 $ 3,331,236
LIMITATION ON ADMINISTRATIVE EXPENSES $ 32,938 30,176 $ 31,099 $ 32,075
TOTAL REQUEST $ 3,503,249 $ 2,693,005 $ 3,324,601 $ 3,363,311
FTE (GOE & Federal-aid Direct) 252 231 251 248

Performance Issue

Non-recurring congestion accounts for half of all congestion. This is the congestion that comes as a surprise. The four main causes of non-recurring congestion are: traffic incidents (ranging from disable vehicles to major crashes), work zones, weather, and special events. Non-recurring events dramatically reduce the available capacity and reliability of the entire transportation system. Travelers and shippers are especially sensitive to the unanticipated disruptions due to tightly scheduled personal activities and manufacturing distribution procedures.

Traffic incidents cause approximately 25 percent of traffic congestion. For every minute that an incident blocks a lane, it increases congestion of an additional 4 minutes after the incident is cleared. Better incident management practices can have a profound effect on the system by improving traffic safety and reducing non-recurring congestion. According to the 2004 Urban Mobility Report, good traffic incident management practices led by quick clearance actions can reduce delay by 170 million hours annually. However, there remain many obstacles to the effective and uniform application of Quick Clearance and Move It policies. This is because traffic incident management is neither solely a public safety function nor solely a traffic management function. It requires cooperation between various public agencies to reach full efficacy in clearing traffic incidents and containing the amount of resulting traffic congestion. Promoting effective partnerships for quick clearance strategies are key to the effective management of traffic incidents.

Over 3,000 work zones were present on the National Highway System during the 2001 summer season - this translated to over 60 million vehicles per hour per day of lost capacity. Because much of the Interstate System is over 30 years old, this trend will continue. Work zones on freeways account for nearly one-quarter of non-recurring delay. The new Work Zone Safety and Mobility Rule is intended to tackle this issue, while at the same time promoting work zone safety. The Rule advocates stronger consideration and management of work zone safety and mobility impacts. It focuses on state and local agency-level work zone policies to institutionalize work zone processes and procedures that consider work zone impacts throughout the project delivery process. Compliance with the updated rule is required by October 12, 2007. The rule provides considerable opportunity to improve the management and implementation of work zones so as to reduce associated congestion impacts.

Weather related incidents constitute 15 percent of the time loss attributed to congestion. Improving the accuracy and timeliness of road weather information made available to road users and operators, and building the road weather observational database that supports the development of such information is key to helping to resolve this component of the congestion problem.

While traffic incidents, work zones, and weather related delays may be productively addressed through individual programs, efforts aimed at providing real-time information about the resulting delays and better managing the associated traffic patterns, also provides opportunities to significantly reduce congestion. Real time travel information is "decision-quality" information about traffic incidents, the weather, construction activities, transit and special events allows travelers to choose the most efficient mode and route to their final destination. Such information may be provided through dynamic message signs, 511 services, in-vehicle devices, and Web sites.

FHWA continues to support and track the deployment of 511, a national travel information telephone service that provides drivers with easier access to local travel conditions information. As illustrated in Figure 5, the 511 Telephone service is now accessible to about 35 percent of the Nation's population. The target is to make the service available to 75 percent by the end of FY 2008.

Figure 5. Percent of Population with Access to 511 Telephone Traveler Information Services, 2002-2008.

Figure 5. Percent of Population with Access to 511 Telephone Traveler Information Services, 2002-2008.

Working through the National Traffic Incident Management Coalition, which is comprised of a number of transportation, public safety and private sector organizations, FHWA initiated an effort this past year to develop measures that will be used to monitor progress in changing the state of practice in three areas: Full-function service patrols, Quick Clearance or Move It laws, and Quick Clearance policies. It is anticipated that the measures will be defined and baseline performance trends available by the end of 2007. There are a number of technical challenges associated with developing measures that can be used in all jurisdictions, not the least of which is achieving a consensus on operational definitions for each measure and agreement on the methodologies used to collect and report the data nationwide.

Complementing this information is the management of integrated corridors. Unused corridor capacity often exists on parallel routes, on the non-peak direction on freeways and arteries, within single-occupant vehicles, and in transit vehicles. As traffic congestion increases due to non-recurrent congestion events, shifts in travel demand to unused capacity can be accomplished by delivering real time travel data. ITS technologies can efficiently and proactively manage the movement of people and goods in major transportation corridors in large cities.

As illustrated in Figure 6, FHWA will pursue broad strategies that are aimed at increasing the use of integrated ITS networks, providing real-time traveler information, effective approaches to incident and construction (work) zone management as well as road weather management technologies. A high priority will be placed on integrated corridor management, reducing incident delay, and better managing work zones associated with construction and maintenance projects.

Figure 6. Relationship between Integrated ITS networks and Incident Management Program Outputs and Outcomes.

Anticipated FY 2007 Accomplishments

Congestion reduction should be achieved in corridors and areas where there are more extensive deployment and integration of ITS technologies, and greater use of work zone, incident management practices, and other effective operational practices. By focusing efforts on these areas, FHWA anticipates progress in meeting the following objectives:

FY 2008 Performance Budget Request

Federal-aid Highway Program

Real-time System Management Information Program: $25 million

In support of the Department's Congestion Initiative, the budget proposes to reprogram $25 million from unobligated balances of inactive highway demonstration projects for the Real-time System Management Information Program. Funding to support the Real-time System Management Information Program (section 1201 of SAFETEA-LU) will be provided to State and local transportation agencies to plan or implement monitoring services collecting information relative to the program. Activities will include: analyzing and revising regional ITS architectures to accommodate program requirements; planning and developing projects for acquiring monitoring services or integrating information from various services; conducting studies to identify and address issues related to using privately provided information services to satisfy program requirements; and developing communications portals to provide access to program information.

Highway funds apportioned to the States will continue to be used to improve traffic flow through more effective systems management and operations, including providing better information to travelers to allow them to choose departure times, travel modes, and routes that may mitigate congestion problems; implementing and maintaining incident management service patrols and promoting quick clearance laws; and developing and implementing improved strategies for work zone implementation and management.

Research and ITS

Congestion Research: $25 million

In support of the Department's Congestion Initiative, the budget proposes to reprogram $25 million from unobligated balances of inactive highway demonstration and other projects for the ITS R&D program to expand congestion-related research activities. These funds would support one or more new major ITS initiatives focused on reducing congestion. These major initiatives would include the research, development, and operational testing necessary to bring innovative, multi-modal solutions to the transportation marketplace. Areas to be explored would include: major advances in the acquisition and delivery of real-time traffic information; improved technology for identifying and responding to incidents; effective operational improvements to address traffic flow bottlenecks; and/or enhanced management techniques for controlling and balancing traffic flows along freeways and major arterials.

Effectively addressing traffic congestion will hinge on the ability of FHWA and State and local transportation agencies to transform traditional transportation organizations into agencies which can use advanced technologies to improve management and operations. ITS technologies have been researched, deployed, and tested during the past decade to improve the operation of the highway system and mitigate congestion.

FHWA will use FY 2008 R&D and ITS funding to:

DOT Performance Goal: Increased investment in Corridors of the Future Program.

This funding request contributes to the DOT Reduced Congestion strategic objective and the performance outcome goal to increase investment in the Corridors of the Future Program. This request will allow the DOT, on a discretionary basis, to assist States with the development of corridors that meet the program objectives.

Milestones

Competition Announced - FY 2006
Winners Announced - FY 2007
DOT Budget and Legislative Proposals Approved - FY 2007

Funding for this performance goal: $1.6 billion.

This request will allow the FHWA to promote innovative national and regional transportation planning and congestion mitigation solutions; illustrate the benefits of alternative financial models that employ private sector capital; employ a more efficient environmental review process; support continued growth of the U.S. economy by providing reliable transportation corridors; and develop corridors that will provide reliable freight movement needed by the U.S. economy and more efficient transportation networks that will enable the growing U.S. population to enjoy a lifestyle unhampered by congestion.

The resources requested to achieve this goal are:

($000)

STRATEGIC & PERFORMANCE GOALS by PROGRAM ACTIVITIES FY 2006 ACTUAL FY 2007 CONTINUING RESOLUTION FY 2007 PRESIDENT'S BUDGET TOTAL 2008 REQUEST
II. Reduced Congestion (continued)
C. Increased investment in Corridors of the Future program
Federal-aid Highways (Excludes LAE) $ 1,432,851 $ 1,282,162 $ 1,589,967 $ 1,608,183
Transp. Infrastructure Finance and Innov. Act (TIFIA) 4,413 4,180 4,964 5,123
Surface Transportation Program 194,230 174,592 234,467 245,611
National Highway System 204,387 171,493 230,314 241,262
Interstate Maintenance 206,376 173,198 232,611 243,668
Bridge Program 152,497 127,991 171,898 180,069
Congestion Mitigation & Air Quality Improvement ----- ----- ----- -----
Highway Safety Improvement Program ----- ----- ----- -----
Equity Bonus 237,430 244,648 285,771 333,172
Equity Bonus (Exempt) 25,943 25,943 25,943 25,943
Federal Lands Highways 28,478 25,811 34,967 36,884
Appalachian Development Highway System 19,369 16,470 21,902 21,931
High Priority Projects 107,308 89,419 120,699 118,644
Projects of National and Regional Significance 15,874 16,535 22,319 21,939
ITS Research 2,799 2,799 3,148 3,094
Transportation Research, Training and Education 14,617 16,166 16,441 16,161
Miscellaneous Programs 215,070 188,857 180,463 110,622
Emergency Relief Program 4,060 4,060 4,060 4,060
Congestion Initiative -- Corridors of the Future ----- ----- ----- [$25,000]
Appalachian Development Highway Systems (ADHS) 804 3,343 ----- -----
Emergency Relief Supplemental (GF) 241,665 ----- ----- -----
PROGRAM FUND:
SUBTOTAL PROGRAM FUND $ 1,675,320 $ 1,285,505 $ 1,589,967 $ 1,608,183
LIMITATION ON ADMINISTRATIVE EXPENSES $ 15,901 14,568 $ 15,013 $ 15,484
TOTAL REQUEST $ 1,691,221 $ 1,300,073 $ 1,604,980 $ 1,623,667
FTE (GOE & Federal-aid Direct) 122 112 121 120

Performance Issue

The Federal government has an important role to play in facilitating and accelerating development of multi-State, and possibly multi-use, transportation corridors that can alleviate current or forecasted congestion. Economically based multi-State, multi-use corridor development that relies on private sector investment resources holds the promise to introduce new innovations and increase existing highway productivity.

Anticipated FY 2007 Accomplishments

FHWA will identify and select up to five corridors for administration under the Corridors of the Future Program. In addition, the DOT will introduce legislation specifically for the Corridors of the Future Program to streamline Federal reviews and approvals and address any other Federal statutory and regulatory impediments that may prevent the timely delivery of the program.

FY 2008 Performance Budget

Federal-aid Highway Program

Corridors of the Future: $25 million

In support of the Department's Congestion Initiative, the budget proposes to reprogram $25 million of unobligated balances of inactive highway demonstration and other projects for the Corridors of the Future program. These funds would be utilized at the discretion of the Secretary to facilitate development of selected Corridors of the Future projects. Funds would be eligible for expenditures across the spectrum of project development including preliminary engineering, and purchasing of financial or environmental expertise. In addition, other preconstruction activities such as planning, feasibility analysis, revenue forecasting (for tolled facilities), and preliminary design work would be eligible expenses.

DOT Performance Goal: Longer lasting, high performance highway infrastructure.

This request contributes to the DOT Reduced Congestion strategic objective and the performance outcome goal to achieve a longer lasting, high performance highway infrastructure.

Percentage of travel on the National Highway System (NHS) meeting pavement performance standards for good ride (less than or equal to 95 inches per mile International Roughness Index).

20012002200320042005200620072008
Target:N/AN/AN/AN/A53.054.055.557.0
Actual:48.249.3(r)50.0(r)52.0(r)51.854.2#

(r) Revised; * Preliminary Estimate; # Projection

Supplemental FHWA Measures

Funding for this performance goal: $11.4 billion.

This request will allow FHWA to continue to fund transportation-related improvements in the States to maintain and improve the performance of the NHS, including the Interstate system and non-NHS, and replace, rehabilitate, and preserve bridges and other infrastructure. Funds will also be used to build needed transportation facilities, support long-term research, and provide public education, technical assistance, and training to partner agencies and transportation system users. Funds will be used to promote the use of asset management principles to manage and allocate resources to improve system performance, and accelerate the adoption of innovation and new technology in highway construction. This request will also enable FHWA to fund the clean up, repair, restoration and/or reconstruction of highway facilities damaged during natural and man made disasters.

The resources requested to achieve this goal are:

($000)

STRATEGIC & PERFORMANCE GOALS by PROGRAM ACTIVITIES FY 2006 ACTUAL FY 2007 CONTINUING RESOLUTION FY 2007 PRESIDENT'S BUDGET TOTAL 2008 REQUEST
II. Reduced Congestion (continued)
D. Improved infrastructure
Federal-aid Highways (Excludes LAE) $ 10,184,998 $ 9,137,182 $ 11,232,133 $ 11,318,616
Transp. Infrastructure Finance and Innov. Act (TIFIA) 34,676 32,843 39,002 40,246
Surface Transportation Program 1,052,479 946,063 1,270,510 1,330,900
National Highway System 1,605,900 1,347,443 1,809,610 1,895,627
Interstate Maintenance 1,314,751 1,103,388 1,481,884 1,552,324
Bridge Program 953,106 799,942 1,074,358 1,125,429
Congestion Mitigation & Air Quality Improvement ----- ----- ----- -----
Highway Safety Improvement Program ----- ----- ----- -----
Equity Bonus 1,871,370 1,928,263 2,252,384 2,625,983
Equity Bonus (Exempt) 204,479 204,479 204,479 204,479
Federal Lands Highways 217,446 197,078 266,986 281,627
Appalachian Development Highway System 138,354 117,640 156,439 156,648
High Priority Projects 843,136 702,576 948,349 932,201
Projects of National and Regional Significance 88,871 92,569 124,950 122,823
ITS Research 19,896 19,896 22,379 21,998
Transportation Research, Training and Education 104,406 115,474 117,434 115,435
Miscellaneous Programs 1,695,128 1,488,528 1,422,370 871,896
Emergency Relief Program 41,000 41,000 41,000 41,000
Appalachian Development Highway Systems (ADHS) 6,336 26,347 ----- -----
Emergency Relief Supplemental (GF) 1,726,182 ----- ----- -----
PROGRAM FUND:
SUBTOTAL PROGRAM FUND $ 11,917,516 $ 9,163,529 $ 11,232,133 $ 11,318,616
LIMITATION ON ADMINISTRATIVE EXPENSES $ 113,117 $ 103,845 $ 106,061 $ 108,980
TOTAL REQUEST $ 12,030,633 $ 9,267,374 $ 11,338,194 $ 11,427,596
FTE (GOE & Federal-aid Direct) 866 794 856 843

Marginal Cost of Performance - Infrastructure

Empirical studies demonstrate that users perceive pavements with an International Roughness Index (IRI) of less than 95 inches per mile as being of good or very good quality. Using this measure, FHWA and the States have shown improvement over the past five years. This measure reinforces an asset management philosophy that espouses "doing the right thing at the right time." Waiting until pavements have deteriorated to what is perceived to be fair or poor condition, with an IRI of 170 inch per mile, is often too late. Once pavements reach this stage, major rehabilitation or reconstruction is the only viable alternative in many cases. It is better to make improvements when pavements are at or near the 95 inch per mile level.

As noted in the tables below, the FHWA will focus its pavement smoothness initiatives on increasing the amount of travel on pavements with good ride quality. The estimate of increased travel on pavements with good ride quality in FY 2007 and FY 2008 are based on meeting the targets for the percentage of travel with good ride quality on the NHS and an estimated VMT for FY 2006-2008. Using this approach, it is estimated that there will be an increase of 815 million miles of travel on the NHS with good ride quality. The incremental improvement from FY 2007 to FY 2008, based on a program funding increase of $92 Million, is 43 million miles of travel. This increase in the amount of travel on pavement with good ride quality is likely to produce some user benefits such as less vehicle wear and tear, lower fuel consumption, and higher user satisfaction with the ride. However, it is difficult to quantify these benefits in economic terms when comparing pavements that are between good and fair ride quality (in the 95 to 120 inch per mile range).

Agency Output or Outcome Measure Associated with this Program increase(s): Improved infrastructure in all modes.

Performance Measure: Million vehicle miles of travel on the National Highway System (NHS) meeting pavement performance standards for good ride (less than or equal to 95 inches per mile International Roughness Index).

FY 2004FY 2005FY 2006FY 2007FY 2008
Baseline Performance Level
Target696719740772815
Actual698690
Incremental Performance Target, Million VMT, With Program Changes--------3243
(Total) Performance Target, Million VMT, With Program Changes------------815

Note: Actual VMT in 2004 was 2,963 million miles. The estimates used for VMT are 3,008 in 2005, 3,011 in 2006, 3,057 in 2007, and 3,145 in 2008. Percent of VMT on the NHS is 44.3 percent, based on travel in 2003.

Performance Issue

The condition of the NHS affects wear-and-tear on vehicles, the comfort of travelers, and fuel consumption. Improving the condition of pavement and bridges is critical to the structural integrity, cost effectiveness and performance of the transportation system. In addition, excessive highway construction must be avoided because it is costly and undermines system performance. Efforts continue to improve the pavement condition on the Nation's highways. The goal is to reach a target of 57.0 percent of vehicle miles traveled on NHS pavements with good ride quality (International Roughness Index (IRI) of 95 inches/mile or less) by FY 2008. As illustrated in Figure 7, the actual value for FY 2006 was 54.2 percent.

The pavement condition measure has been changed from the previous 170 inches/mile IRI to 95 inches/mile. The criteria for the pavement condition measure were revised to encourage States to focus on increasing the good quality pavements, rather than simply minimizing the poor pavements. An IRI of less than 95 inches per mile is representative of the level of roughness that is widely perceived as of good or very good quality in terms of public perception. An IRI of l70 inches per mile is generally considered the break between fair and poor quality. This change now focused efforts of the states on increasing the good quality pavements rather than simply minimizing the poor pavements.

Figure 7. Pavement Condition on the NHS, 1996 to 2008.

Figure 7. Pavement Condition on the NHS, 1996 to 2008.

A supplemental goal for FY 2008 is to decrease the percent of deck area on deficient bridges, adjusted for average daily traffic, to 22.0 percent on the NHS and to 25 percent on non-NHS bridges. The nationwide percentage of deck area on deficient bridges on the NHS dropped from 32.6 percent in 1998 to 29.2 percent in 2006. The results vary on the NHS by average daily traffic (ADT), with a higher percentage of deck area on deficient bridges on roads with ADT levels above 50,000. The ADT is an average 24-hour traffic volume at a given location for some period of time less than one year. The nationwide percentage of deck area on deficient bridges on the non-NHS dropped from 32.5 percent in 1998 to 30.6 percent in 2006. The results vary on the non-NHS by ADT, with a higher percentage of deck area on deficient bridges on roads with ADT levels above 10,000.

As a part of implementation of the President's National Park Legacy initiative, FLH committed through a Memorandum of Agreement between the National Park Service (NPS) and FHWA to develop additional outcome-based national performance measures. The program goals and measures supporting the Park Roads and Parkways program will reflect the progress both agencies make in improving the condition of park roads and bridges. FLH continues to work with the NPS to assess bridge conditions in our National parks on a biennial basis. FLH also examines Park Roads and Bridges using industry standards and norms and is providing critical data to the NPS for their performance measures.

Anticipated FY 2007 Accomplishments

FY 2008 Performance Budget Request

Federal-aid Highway Program

Highway funds apportioned to the States will continue to be used to support the majority of projects and activities that contribute to achieving the mobility goal and this particular outcome.

Interstate Maintenance (IM) funds will be used for resurfacing, restoring, rehabilitating, and reconstructing most routes on the Interstate System. Also, IM funds will provide for the upkeep and improvement of the 46,000 mile Interstate System, which is designed as a separate identity within the NHS.

The National Highway System (NHS) funds will be used for improvements to rural and urban roads that are part of the NHS, including the Interstate System, and designated connections to major intermodal terminals.

The Surface Transportation Program (STP) funds will be used on a variety of surface transportation infrastructure projects, transit and carpool activities, bicycle and pedestrian projects, intelligent transportation systems, and management systems, on any Federal-aid highway. Using set aside STP funds, FHWA will implement a new Planning Capacity Building Initiative to support enhancements in transportation planning through research, program development, information collection and dissemination, and technical assistance. Transportation, Community and System Preservation Program (TCSP) set aside funds will be used to facilitate the planning, development, and implementation of strategies by States, Metropolitan Planning Organizations (MPOs), federally-recognized tribes, and local governments, in order to integrate transportation community, and system preservation plans and practices.

Bridge program funds will be used by States to improve the condition of bridges, including historic bridges, through replacement, rehabilitation, and systematic preventative maintenance. Also, funds will be used to promote the advancement of bridge technologies and enhance the quality of the highway bridge program delivery.

The Emergency Relief (ER) program funds will be used for the repair or reconstruction of Federal-aid highways and federally owned roads if they suffer serious damage as a result of natural disasters or catastrophic failures from an external cause. The ER program funds are critical to maintaining mobility for the American public, since natural disasters and catastrophes that destroy highways and bridges can occur anywhere in the country.

More than $2.7 billion in Emergency Relief (ER) funds were provided in late 2005 to assist States in the repair and recovery of Federal-aid highways damaged by hurricanes. These funds were instrumental in assisting the Gulf Coast region with needed recovery efforts following the devastating impact from Hurricanes Katrina, Rita, and Wilma. The I-10 Twin Spans Bridge in Louisiana was closed due to extensive damage incurred during hurricane Katrina. Emergency repairs to the Twin Spans Bridge enabled the bridge to be reopened to traffic ahead of schedule. The FHWA has approved ER funding that will ultimately be used to replace the bridge. FHWA has also approved ER funding that will assist Mississippi in the replacement of two bridges on U.S. 90 that were completely destroyed by Hurricane Katrina. In Pascagoula, Mississippi, the substructure of a portion of the I-10 bridge was damaged during Hurricane Katrina, causing the eastbound lanes of the bridge to be closed to traffic. Emergency repairs to the bridge were completed in only 20 days, allowing the restoration of traffic to pre-disaster conditions. In addition, Alabama, Florida, and Texas received ER funds following the hurricanes. Many Federal-aid highway repairs were accomplished with the use of ER funds, including emergency roadway repairs and debris removal that opened closed roadways and allow recovery efforts to proceed quickly. In addition, funds paid for repairs to traffic signals, guardrail replacement, and restoration of washed-out pavements and shoulders caused by extensive flooding.

The Highways for LIFE (HFL) program is aimed at demonstrating dramatic improvements in the way highways are built and perform. The program will employ technologies and innovations to construct a limited number of showcase projects, and use concentrated training, marketing, and communication efforts to help the states and highway industry understand the benefits of adopting new approaches. The HFL pilot program will demonstrate and promote state-of-the-art technologies and innovations, elevated performance goals, and new business practices in the highway construction process that result in improved safety, reduced congestion from construction, improved quality, at a lower cost. FHWA will continue to provide funding to support up to 15 HFL demonstration construction projects.

The Technology Partnership Program will demonstrate the benefits of automation and electronic data reporting to improve the quality and performance of pavement construction. Technology transfer, information dissemination and stakeholder participation activities will build support and equip industry and public agencies to accelerate the adoption of innovative practices to improve safety, quality and customer satisfaction and reduce congestion due to construction.

FHWA will continue to work with States to develop a comprehensive asset management program to ensure the most effective targeting of investments in highway construction, maintenance, and systems preservation.

TIFIA credit assistance will continue to support projects that otherwise might have difficulty in obtaining financing in existing capital markets. TIFIA assistance cannot exceed 33 percent of total project costs.

Federal Lands Highway

In FY 2008, funding for the FLHP will be used for road and bridge improvements on Federal and Indian lands. Park Roads and Parkways funds will be used to support the President’s National Park Legacy initiative to reduce the backlog of maintenance needs for roads and bridges in the national parks. The specific projects that will be funded for all our partners in FY 2008 are based on the program of projects that our partners initiate through the transportation planning process. The trend data based on the past few years, coupled with the number of active design projects we have underway currently, indicates that we can anticipate improving between 700 to 1000 miles of roads and about 35 to 40 bridges in FY 2008. The improvement of these roads and bridges enables the American public to access these national treasures across the country.

Research and ITS

There is a growing need to develop a comprehensive background in system preservation technologies of roads and bridges. To meet this need, an enhanced RD&T program will be initiated for the preservation of roads and bridges. Improving pavement condition as a means of improving physical condition and performance of the NHS, including the Interstate System, remains a primary objective of the FHWA. This can only be accomplished through an extensive program that includes active outreach programs and use of innovative technology, as well as continued effort by States to effectively maintain and rehabilitate the NHS in a timely manner. Improvement in pavement condition on federally owned roads will also be supported. Further, FHWA will focus resources and grant funding on improving bridge conditions on the NHS and non-NHS routes. More widespread use of the latest highway materials and design technologies, new specifications and best practices for constructing and preserving pavements, as well as asset management tools and system preservation techniques, are expected to help maintain and improve the Nation’s transportation infrastructure.

To optimize performance in the pavement design area, components will be developed that contribute to the further development of a truly mechanistic (i.e., performance predictive) design/analysis procedure and continued use and adoption of the recently developed AASHTO design procedure. Technologies will also be sought and employed to enhance highway user satisfaction by reducing delays, enhancing pavement smoothness, and optimizing surface texture for safety and noise. Initiatives in FY 2008 relate to research to support development of a fully integrated suite of tools for pavement management (including design, materials selection, construction specifications, including quality control/assurance, and preservation).

Additionally, pavements funds will be used in development of automated testing for construction and material quality assurance State process reviews, implementation of the new pavement design guide technology, development of pavement surface characteristic measuring equipment and technologies for faster construction (e.g., precast and prestressed concrete) and less energy intensive (e.g., warm asphalt) pavements, and technology to facilitate increased recycling. The Long Term Pavement Performance (LTPP) funds will be used to maximize the return on the LTPP investment, and analyze collected data with emphasis on developing products that can be applied to improve our nation’s highway system.

The highway bridge and structure Research and ITS activities will focus on improved development and testing of a variety of innovative technology for non-destructive evaluation and methodologies for bridge management. The use of advanced materials such as fiber-reinforced polymer, high-performance steel and concrete, corrosion resistant reinforcing bars and corrosion resistant pre-stressing tendons will be emphasized. A systems approach to designing and building more reliable, durable bridges will also be emphasized. A wide variety of activities to assure bridge safety, reliability, and security will continue, with a particular emphasis on developing techniques to control structural corrosion and prevent other damage.

Asset management activities will focus on systematic management approaches to ameliorate the long-term cost effectiveness of highway investments. Programs include developing innovative methods for measuring and analyzing highway performance, sponsoring programs that enhance preservation of pavements and structures, encourage the further development and use of performance related specifications, increase efforts to calculate remaining service life of pavements and structures, evaluate and implement new and/or innovative techniques/traffic control devices in work zones, and research leading to the use of modern economic tools for evaluating highway investments.

FHWA will use resources to research, develop, and promote the deployment of new technologies, Asset Management Principles, materials, and analysis tools that will improve pavement and bridge performance and system cost-effectiveness. FHWA will continue to provide technical assistance and training to State officials and other partners in order to encourage the deployment of technologies, including innovative construction techniques and preservation practices that improve pavement and bridge condition. Through the sharing of best practices and the provision of training, FHWA will encourage State partners to use innovative bridge materials that are more durable and resistant to traffic loads and corrosive attack, resulting in less maintenance and fewer traffic restrictions. Adoption of these technologies should lead to overall improvements in pavement and bridge condition ratings.

New initiatives in FY 2008 focus on modeling the performance of bridges (i.e., remaining service life), enhancing construction quality through improved program management and stewardship and oversight. Fundamental research on actual costs of maintaining and operating transportation facilities, including the integration of advanced pavement modeling into a new version of the HERS-ST model, developing training in data integration techniques, encouraging improvement of management systems to monitor system performance and undertaking engineering and economic analysis as an integral part of the decision making process. The overall goal is to improve the remaining service life of the network through effective system preservation for the safe and efficient movement of people and goods on our highway transportation system.

Limitation on Administrative Expenses

FTE and administrative resources associated with this strategic initiative are as follows:
1,699 FTE and $219.6 million

In support of the Department’s Congestion Initiative, administrative expenses funding will be utilized to support to related activities. This funding will address potential needs including:

The Reduced Congestion strategic initiative is supported by information technology through a number of Mission Support and Management data systems utilized by staff in delivering the program:

Highway Performance Monitoring System (HPMS) The HPMS is a national level highway information system that includes data on the extent, condition, performance, use, and operating characteristics of the Nation's highways. In general, the HPMS contains administrative and extensive system information on all public roads, while information on other characteristics is represented in HPMS as a mix of universe and sample data for arterial and collector functional systems. Travel data from the HPMS is used by the Texas Transportation Institute to determine the nationwide results for the Urban Congested Travel measure. Pavement smoothness data reported in the HPMS is used annually to determine the nationwide condition of pavements on the NHS.

Mobility Monitoring Program (MMP) & Urban Congestion Report (UCR): Provides continued and expanded congestion monitoring capabilities and technical assistance to states through the MMP and UCR. The MMP supplies archived ITS data to the UCR, which develops congestion, mobility and reliability performance measures using data from over 20 cities. The resulting measures provide a snapshot of congestion in urban areas in the U.S. and are used by FHWA Division Offices and the state and local agencies that supply the data. Support activities will include technical assistance via the MMP program to the cities providing data to develop their own measures as well as general technical assistance with operations and reliability measure development across the U.S.

National Bridge Inventory System (NBIS): Bridge inspection data reported in the NBIS is used annually to determine the nationwide condition of bridges on the NHS and non-NHS.

FHWA uses the Transportation Analysis Simulation System (TRANSIMS) to develop regional simulations of individual activity patterns and traffic resulting from those patterns. It will forecast the location and duration of congestion and the impact of measures designed to relieve congestion. The results of TRANSIMS may be used to support decision makers in the development of regional transportation plans, project analysis and the selection of measures to relieve congestion.

FHWA uses HEPGIS Software and GIS expertise to support the Safety, Mobility, Global Connectivity, Environment, Organizational Excellence and Security strategic initiatives though the analysis and display of information. The primary function of HEPGIS is the display of data that is the official record of the National Highway System (NHS), NHS connectors, Strategic Highway System (STRAHNET), STRAHNET connectors and the Interstate. The output of GIS is used to analysis the transportation system, share information with other agencies and define which roads are eligible for Funds. GIS is also used to make this information available over the Internet.

Transportation Computer Assisted Design (TRANSCAD) software is used by FHWA/HEP to support the Congestion and Organizational Excellence strategic initiatives by providing information, data and analysis to FHWA planners on proposed projects and to allow for input into FHWA databases and IT systems, such as HEPGIS.

The Transportation Economics and Land Use Systems (TELUS) supports Safety, Congestion, Environment, and Organizational Excellence strategic initiatives by providing metropolitan planning organizations and State departments of transportation fully integrated information management and decision support system to develop their transportation improvement programs and carry out other transportation planning responsibilities, including public participation in the transportation planning process. TELUS provides an information management system that is easy to use, can store and manipulate large amounts of data, and can present these data to decision makers and the public in a coherent and timely manner.

FLH Structural Data Management System enables FLH engineers, planners, and staff in coordination with partner agencies and Indian tribes to inspect structures in accordance with the NBIS and then to aid in the selection of structures that are structurally deficient and functionally obsolete for improvement through the development of long range transportation plans and individual project contract packages for the Federal lands Highway Program. By improving individual structures the mobility and safety are improved on the roads to, through, and on Federal lands. The output from these software programs are directly linked to the preparation of FLH’s portions of the Conditions & Performance (C&P) report.

FLH Management Information System enables the warehousing of data from FLH offices for business operations data, business metrics, and trends information. Information from these software programs supports FLH preparation of the C&P report.

FLH Roadway Inventory System enables FLH engineers and staff to inspect and inventory roadways that provide access to, through, and on federal lands. With this inventory, FLH in coordination with partner agencies and Indian tribes develop long range transportation plans, a program of projects, and individual construction projects for the Federal lands Highway Program. The output from these software programs are directly linked to the preparation of FLH’s portions of the C&P report.

FLH Engineers Estimate and Field Management System enables FLH engineers and staff to calculate estimates for construction contract packages for roadway projects that provide access to, through, and on federal lands, track projects in the field, and prepare contract modifications. The output from these software programs are directly linked to the preparation of FLH’s portions of the C&P report.

FLH Project Management Systems enables project, team, and program managers to manage individual projects within the FLH program and other special projects including project tracking, planning, baseline management, and budgeting for roadways that provide access to, through, and on federal lands. The output from these software programs are directly linked to the preparation of FLH’s portions of the C&P report.

FLH Database and Application Support enables contractor personnel who perform database administration and support the Office of Federal Lands Highway as well as allow functional and program managers access to the budget, resources, and technical data necessary to make business decisions.

FLH Construction Management enables FLH engineers and staff access to construction status and project data. The output from these software programs are directly linked to the preparation of FLH’s portions of the C&P report.

FLH GIS Laboratory enables the development of methods to leverage spatial data in the FLH project development and design process.

FLH Peer Review System allows FLH project managers, engineers, and staff to review highway design projects during development.

The TIFIA JPO contracts with a commercial loan servicing entity to carry out certain administrative and financial requirements related to its portfolio of project loans. The system provides loan servicing in accordance with Federal Financial Management Improvement Act/Joint Financial Improvement Program (FFMIA/JFMIP) requirements. Services include financial reporting, collections, maintenance of documents. This is a leased service, which does not include any assets owned or operated by the FHWA.

Responsible Officials:
Mr. King Gee, Associate Administrator for Infrastructure
Mr. Arthur E. Hamilton, P.E., Associate Administrator Office of Federal Lands Highway
Mr. Dennis C. Judycki, Associate Administrator for Research, Development and Technology
Mr. Jeffrey F. Paniati, Associate Administrator for Operations
Mr. James D. Ray, Chief Counsel
Mr. Mark Sullivan, TIFIA Director

GLOBAL CONNECTIVITY

DOT Performance Goal: Safer, more efficient and cost effective movement of passengers and cargo throughout international and domestic transportation systems, including U.S. ports of entry, modal and intermodal supply chains.

This funding request contributes to the DOT Global Connectivity strategic objective and the performance outcome goal to achieve safer, more efficient and cost effective movement of passengers and cargo.

Number of freight corridors with an annual decrease in the average buffer index rating.

200620072008
Target:52525
Actual:3

Travel time reliability at land border crossings (currently under development).

2005200620072008
Target:Target will be established after baseline data is available in early FY 2007
Actual:Baseline Data will be available in early FY 2007.

Funding for this performance goal: $890.6 million.

This request will allow FHWA to fund the development and dissemination of the analytic capability and professional capacity needed by Federal, State, international and private sector partners to understand freight movement, support U.S. foreign policy priorities and initiatives including expanded opportunities and access for U.S. transportation industry, and support the FHWA's efforts to coordinate highway transportation infrastructure and operations with planned changes at U.S. land borders. This includes data analysis tools, network performance metrics, improved freight modeling capability, professional capacity building, continuation of grants for both multi-state corridor and border efforts, linkages between investment decisions and impacts on land ports of entry, linkages between freight transportation and our national and regional economies, and improved bi-national planning. States and MPOs will also use these resources to improve freight movement into and through major trade transport gateways and hubs, improve the transportation infrastructure that connects these gateways to the Nation's mainline transportation networks, and relieve congestion related to high levels of truck traffic.

The resources requested to achieve this goal are:

($000)

STRATEGIC & PERFORMANCE GOALS by PROGRAM ACTIVITIES FY 2006 ACTUAL FY 2007 CONTINUING RESOLUTION FY 2007 PRESIDENT'S BUDGET TOTAL 2008 REQUEST
III. Global Connectivity
A. Safer, more efficient movement of passengers and cargo through the supply chain
Federal-aid Highways (Excludes LAE) $ 785,363 $ 695,511 $ 871,409 $ 882,117
Transp. Infrastructure Finance and Innov. Act (TIFIA) 4,203 3,981 4,728 4,879
Surface Transportation Program 95,680 86,006 115,501 120,991
National Highway System 145,991 122,495 164,510 172,330
Interstate Maintenance 39,841 33,436 44,906 47,040
Bridge Program 136,158 114,277 153,480 160,776
Congestion Mitigation & Air Quality Improvement ----- ----- ----- -----
Highway Safety Improvement Program ----- ----- ----- -----
Equity Bonus 116,961 120,516 140,774 164,124
Equity Bonus (Exempt) 12,780 12,780 12,780 12,780
Federal Lands Highways 14,029 12,715 17,225 18,170
Appalachian Development Highway System 3,953 3,361 4,470 4,476
High Priority Projects 102,198 85,161 114,951 112,994
Projects of National and Regional Significance 3,065 3,192 4,309 4,235
ITS Research 2,558 2,558 2,877 2,828
Transportation Research, Training and Education ----- ----- ----- -----
Miscellaneous Programs 105,946 93,033 88,898 54,494
Emergency Relief Program 2,000 2,000 2,000 2,000
Appalachian Development Highway Systems (ADHS) 396 1,647 ----- -----
PROGRAM FUND:
SUBTOTAL PROGRAM FUND $ 785,759 $ 697,158 $ 871,409 $ 882,117
LIMITATION ON ADMINISTRATIVE EXPENSES $ 7,458 7,901 $ 8,228 $ 8,493
TOTAL REQUEST $ 793,217 $ 705,059 $ 879,637 $ 890,610
FTE (GOE & Federal-aid Direct) 57 60 66 66

Performance Issue

The U.S. transportation system is an integral component of our national economy, enabling the movement of $2 trillion in goods every year. In 2003 our Nation's transportation system carried almost 500 million people between the US and Canada and the US and Mexico. International trade currently accounts for about 25 percent of the U.S. Gross Domestic Product and this figure is anticipated to grow to 35 percent in the next 20 years. As the economy continues to expand its connection to global trade, the ability to move goods into and out of the U.S., through the transportation system, only increases in importance. Significant volumes of freight move through key corridors and border crossings of our transportation network. Keeping our corridors and land border crossings as free flowing as possible is vital to our nation's economy and defense. Yet this vital component is showing increasing signs of strain. Current congestion levels on our transportation system are beginning to adversely affect the movement of goods.

The border regions with Canada and Mexico are of particular interest to the economy of the United States. Taking into consideration combined imports and exports, Canada and Mexico are our top two trading partners. In 2001, the surface modes carried $547.3 billion in trade between the U.S., Canada and Mexico. These volumes immediately impact our border communities as well as the Nation as a whole. On the Canadian border, for example, an estimated 50 percent of the freight traffic crossing the Ambassador Bridge between Detroit and Windsor is locally bound to serve the auto industry, which is as vital to the economy of the Detroit area as it is to the nation. Along the Mexican border, the development of the Maquiladora (Mexican assembly plants that manufacture finished goods for export) industry in the Mexican border communities of San Diego and El Paso has been the engine for economic growth in northern Mexico through job creation and exports, as well as the growth of cross border trade. In addition to the freight movement, almost one million people each day move through our land borders for a variety of reasons that range from recreation and tourism, to access to health care, to employment and visiting family and friends.

Travel time and the variability of travel time on sections of the transportation network with significant volumes of freight are key indicators of how efficiently the U.S. is able to move its goods. The FHWA began measuring travel speeds along significant freight corridors in FY 2005. As illustrated in Table A, travel speed measurements were used to calculate the average travel speed and average buffer index for the five Interstate corridors in which data were collected. Data collection expanded to 25 freight corridors in FY 2006. The buffer index represents the extra time freight carriers should add to their average travel time in order to ensure on-time arrival, at least 95 percent of the time, for an end-to-end trip along the corridor. The extra time is added to account for any unexpected delay. The buffer index, which is expressed as a percentage, decreases as trip reliability improves. As travel speed measurements used to calculate an average travel speed along any given corridor become more consistent and reliable, the number of corridors with a declining annual buffer index rating should also increase. In 2008, the target is to achieve a decline in the annual rating in all 25 corridors under study.

Between January and March 2006, the change in quarterly average travel speed for the five corridors was less than 0.3% from the same quarter last year. At the same time, the change in the quarterly average buffer index for all five corridors combined was 18.8%, an increase of 2% over the same period last year. While there was a combined increase in the average buffer index, three of the five corridors experienced a decrease. Significant increases in two corridors, I-70 and I-45, resulted in the overall combined increase in buffer index.

Table A. Average Travel Speed and Buffer Index on Freight Significant Corridors, FY 2006.

Corridor Name

Description (Start and End Locations)

Average Travel Speed (miles per hour)

Average Buffer Index (%)

I-5

San Diego, CA (Mexican Border) to Blaine, WA (Canadian Border)

49.7 mph

18.9 %

I-10

Santa Monica, CA to Jacksonville, FL

55.9 mph

20.8 %

I-45

Galveston, TX to Dallas, TX

54.1 mph

30.8 %

I-65

Mobile, AL to Gary, IN

57.7 mph

 6.8 %

I-70

Cove Fort, UT to Baltimore, MD

54.3 mph

11.1 %

The buffer index represents the extra time freight carriers should add to their average travel time in order to ensure on-time arrival, at least 95 percent of the time, for an end-to-end trip along the corridor.

A second key indicator of the transportation system performance is the delay time for commercial motor vehicles entering and leaving the U.S. at ports-of-entry with Mexico and Canada. To develop a baseline measure of border delay, the FHWA will continue to benchmark outbound and inbound crossing times at selected northern and southern borders. Baseline data for this measure will be available in the Spring of 2007. Concurrent with the benchmarking activities, the FHWA will collaborate with other public and private agencies to develop strategies that produce positive results using the benchmarks.

Anticipated FY 2007 Accomplishments

FHWA will continue to work with transportation investment decision makers to ensure they have the needed information, analytic capability and professional capacity to advance transportation projects that improve freight mobility. FHWA will:

FY 2008 Performance Budget Request

Federal-aid Highway Program

FHWA will continue to collaborate with State and local government agencies and the private sector to ensure more effective planning, improved data collection, modeling and analysis, and infrastructure and operational improvements. FHWA will continue to refine the FAF and FPD, continue to implement the products of the FMIP effort, and continue to create opportunities for joint planning with a variety of State, local and other Federal agencies.

Coordinated planning and collaboration with the GSA, the DHS, State Departments of Transportation and MPOs, Canada and Mexico will be continued so that better and more informed decisions for land ports of entry can be made. To carry out these efforts, FHWA, GSA and DHS will sponsor joint conferences and training opportunities.

Border Planning, Operations, and Technology program funds, as well as research funds, will be used to improve bi-national transportation planning for the U.S. borders with Mexico and Canada. FHWA will work to foster communications and coordination among GSA, the Transportation Security Administration (TSA), U.S. Customs and Border Protection and Border States by continuing the Joint Working Committee with Mexico and the Transportation Border Working Group with Canada. Participating in various interagency task forces such as the Border Station Partnership Council, the Border Governors, the U.S./Mexico Bridges and Borders Committee, and the Customs Border Infrastructure Modeling Working Group will help to improve communications.

FHWA will also encourage States and MPOs at or near international land borders to use funds for highway and multi-modal planning or environmental studies; cross-border port of entry and safety inspection improvements, including operational enhancements as well as technology applications and transfer such as the Border Wizard planning model technology and information exchange activities, and right-of-way acquisition, design, and construction projects.

The Trans Texas Corridor, Texas project is estimated at over $180 billion over a 50-year implementation period and consists of a new 600-mile multi-use corridor from the Oklahoma border to the Mexico border. This proposed corridor may include toll roads, high-speed passenger and freight rail, regional freight and commuter rail, and utility transportation for water, petroleum, gas and telecommunications. A Comprehensive Development Agreement was procured through a Public Private Partnership with a Spanish Developer CINTRA and US developer Zachary. This major project will respond to the continuation of rapid population growth, which will result in a substantial increase in the number of vehicles using Texas highways.

Research and ITS

Research and ITS funds will be used to help reduce barriers to trade in the transportation of goods and services and allow more efficient movement of cargo throughout the international borders. Methods of improvement include GPS applications, use of GIS applications, sensor and communications technologies, ITS technologies for freight tracking and monitoring, promotion of the Border Information Flow Architecture on both borders, and systems management and operations.

DOT Performance Goal: Enhanced competitiveness of U.S. transport providers and manufacturers in the global marketplace.

This funding request contributes to the DOT Global Connectivity strategic objective and the performance outcome goal to enhance the competitiveness of U.S. transport providers and manufacturers in the global marketplace.

Number of technology/information exchange agreements that promote U.S. transportation industry (target is 3 new or expanded agreements by 2011).

200620072008
Target:Targets will be established after baseline data is available
Actual:Baseline Data will be available in October 2007.

Funding for this performance goal: $372.7 million.

This request will allow FHWA to fund the development and dissemination of the analytic capability and professional capacity needed by Federal, State, international, and private sector partners to support U.S. foreign policy priorities and initiatives including expanded opportunities and access for U.S. transportation industry.

The resources requested to achieve this goal are:

($000)

STRATEGIC & PERFORMANCE GOALS by PROGRAM ACTIVITIES FY 2006 ACTUAL FY 2007 CONTINUING RESOLUTION FY 2007 PRESIDENT'S BUDGET TOTAL 2008 REQUEST
III. Global Connectivity (continued)
B. Enhanced competitiveness of U.S. transport providers and manufacturers in the global marketplace
Federal-aid Highways (Excludes LAE) $ 329,861 $ 295,199 $ 365,401 $ 369,135
Transp. Infrastructure Finance and Innov. Act (TIFIA) 1,051 995 1,182 1,220
Surface Transportation Program 47,840 43,003 57,751 60,495
National Highway System 48,664 40,832 54,837 57,443
Interstate Maintenance 39,841 33,436 44,906 47,040
Bridge Program 34,040 28,569 38,370 40,194
Congestion Mitigation & Air Quality Improvement ----- ----- ----- -----
Highway Safety Improvement Program ----- ----- ----- -----
Equity Bonus 58,480 60,258 70,387 82,062
Equity Bonus (Exempt) 6,390 6,390 6,390 6,390
Federal Lands Highways 7,014 6,357 8,612 9,085
Appalachian Development Highway System 3,953 3,361 4,470 4,476
High Priority Projects 25,550 21,290 28,738 28,248
Projects of National and Regional Significance 3,065 3,192 4,309 4,235
ITS Research ----- ----- ----- -----
Transportation Research, Training and Education ----- ----- ----- -----
Miscellaneous Programs 52,973 46,516 44,449 27,247
Emergency Relief Program 1,000 1,000 1,000 1,000
Appalachian Development Highway Systems (ADHS) 198 823 ----- -----
PROGRAM FUND:
SUBTOTAL PROGRAM FUND $ 330,059 $ 296,022 $ 365,401 $ 369,135
LIMITATION ON ADMINISTRATIVE EXPENSES $ 3,133 3,355 $ 3,450 $ 3,554
TOTAL REQUEST $ 333,192 $ 299,377 $ 368,851 $ 372,689
FTE (GOE & Federal-aid Direct) 24 26 28 28

Performance Issue

Increasingly, the DOT and FHWA provides direct support for U.S. foreign policy priorities and initiatives, especially expanded opportunities and access for U.S. transportation industry. Currently, the Agency is providing technical assistance to countries such as Iraq, Kuwait, China, Brazil, and Argentina, thereby expanding opportunities for the U.S. private sector.

Through the International Scanning Program (in cooperation with AASHTO and NCHRP) and international partnerships, new technologies and best practices that were developed elsewhere are more quickly adopted in the U.S., thus enhancing the competitiveness of U.S. transport providers and manufacturers. As an example, over 250 million tons of Stone Matrix Asphalt has been placed in the U.S. since the technology was introduced 15 years ago. With just a 25 percent increase in the life of a pavement surface as a result of the adoption of this technology, over $50 million is saved annually according to the National Center for Asphalt Technology.

Requests for technical assistance from government agencies and private organizations in other countries continue to increase. The Agency provides technical assistance and information exchange in response and frequently gains from these exchanges; partnering with a variety of firms and trade associations to access markets has led to millions of dollars in sales of U.S. technology.

Anticipated FY 2007 Accomplishments

FY 2008 Performance Budget Request

Federal-aid Highway Program

Funds will be used to continue the International Technology Scanning Program, a cooperative program with AASHTO and NCHRP which accesses and evaluates innovative foreign technologies and practices that could significantly benefit U.S. highway transportation systems.  This approach allows for advanced technology to be adapted and put into practice much more efficiently without spending scarce research funds to recreate advances already developed by other countries.  Scan reports will be circulated throughout the country to State and local transportation officials and the private sector.

Funds will be used to work with existing partners and to expand the number of technology transfer centers and engage in technical and information exchange activities, as well as priority technical training, in selected countries such as Iraq and Kuwait. FHWA will support the Border Technology Exchange Program that functions in a multilateral manner along the U.S. borders with Mexico and Canada.    Funds will be used to facilitate critical communication between U.S. agencies and international counterparts, both bilaterally and through international forums.

Funds will be used to increase efforts on projects that will bring more immediate benefits to the United States, aiding private sector efforts in other countries, adoption of U.S.-endorsed standards, developing targeted bilateral agreements versus multilateral agreements, and best practices that may benefit State DOTs and transportation companies operating in the United States.   The FHWA intends to coordinate with other federal entities, and State partners, to leverage resources in providing assistance and facilitate winning relationships between U.S. States and their foreign counterparts.

FHWA will continue to facilitate technical exchanges and relationships leading to the use of international technologies and best practices.  FHWA expects to open opportunities for the private sector through its various programs, exchange information and technology with our counterparts abroad, and share the best and most current technologies and best practices with the U.S. transportation community by facilitating twinning relationships that benefit U.S., state, and international partners. 

Limitation on Administrative Expenses

FTE and administrative resources associated with this strategic initiative are as follows:
94 FTE and $12.0 million

The Global Connectivity strategic initiative is supported by information technology through Mission Support and Management data systems utilized by staff in delivering the program:

As part of the Freight Performance Measurement (FPM) program, FHWA will continue and expand monitoring of travel times in freight-significant corridors. The FPM program captures location data from approximately 250,000 trucks.  The location data is used to calculate average operating speeds and derive congestion (delay), mobility and reliability performance measures for 25 Interstate highways and up to 10,000 miles of roadways and facilities off the interstate system. The FPM program also includes a border component focused on measuring delay and crossing time at major US international land border crossings.  The resulting data provide a snapshot of congestion on the intercity network and through urban areas and are used to monitor progress in FHWA's goal area of Global Connectivity.  The data is used to identify freight congestion and bottlenecks on the surface highway transportation system. 

FHWA uses the Freight Analysis Framework (FAF) to support the congestion strategic initiative by estimating the quantity of goods to be moved by origin and destination regions and the number of truckloads required to move those goods over the nation's highways.  Data files created by the FAF are used by a variety of policy analysis programs to test the consequences of changes to commodity flows on highway capacity and the consequences of changes in highway capacity on commodity flows and economic development.

FHWA uses the Electronic Freight Manifest Program to support the congestion strategic initiative by developing a system of information flows among carriers and shippers to support greater efficiencies in truck operations and to reduce truck travel on congested highways.

FHWA uses HEPGIS Software and GIS expertise to support this strategic initiative though the analysis and display of information.  The primary function of HEPGIS is the display of data that is the official record of the National Highway System (NHS), NHS connectors, Strategic Highway System (STRAHNET), STRAHNET connectors and the Interstate.  The output of this system is used to analyze the transportation system, share information with other agencies, and define which roads are eligible for funds.

Responsible Officials:
Ms. Mary Phillips, Associate Administrator for Policy and Governmental Affairs.
Mr. Jeffrey F. Paniati, Associate Administrator for Operations
Mr. Fred Skaer, Acting Associate Administrator for Planning, Environment, and Realty

ENVIRONMENTAL STEWARDSHIP

DOT Performance Goal: Reduction in pollution and other adverse environmental effects from transportation and transportation facilities.

This funding request contributes to the DOT Environmental Stewardship strategic objective and the performance outcome goal to reduce pollution and other adverse environmental effects from transportation and transportation facilities.

12-month moving average number of areas in transportation conformity lapse.

20012002200320042005200620072008
Target:N/A6.06.06.06.06.06.06.0
Actual:6.06.06.0(r)6.3(r)5.8(r)1.3

(r) Revised;

Number of exemplary ecosystem initiatives.

2002200320042005200620072008
Target:N/A81017245055
Actual:58152343

Funding for this performance goal: $5.6 billion.

This request will allow FHWA to fund transportation improvement projects in states to help reduce mobile source emissions and adverse environmental effects. Funds will also be used for research, technical assistance, and public education initiatives to improve air quality.

This request will also allow the FHWA and States to protect and enhance the Nation's wetlands and aquatic resources, helps FHWA achieve its goal of conservation of natural habitats and ecosystems, protect wildlife populations while enhancing safety and reduce impacts on land and water resources. The number of Exemplary Ecosystem Initiatives undertaken will become the primary measure demonstrating accomplishment in environmental stewardship. Funds will be used for research, technical assistance, and public education initiatives to support further implementation of exemplary ecosystem and habitat conservation initiatives. These activities are consistent with congressional directives to develop rapid methods of ecosystem impact assessment and enhance the scenic beauty of highways.

The resources requested to achieve this goal are:

($000)

STRATEGIC & PERFORMANCE GOALS by PROGRAM ACTIVITIES FY 2006ACTUAL FY 2007 CONTINUING RESOLUTION FY 2007 PRESIDENT'S BUDGET TOTAL 2008 REQUEST
IV. Environmental Stewardship
A. Reduction in pollution and other adverse environmental effects from transportation and transportation facilities        
Federal-aid Highways (Excludes LAE) $ 3,858,731 $ 4,297,343 $ 5,468,013 $ 5,594,965
Transp. Infrastructure Finance and Innov. Act (TIFIA) 10,245 9,703 11,524 11,892
Surface Transportation Program 944,840 849,306 1,140,573 1,194,785
National Highway System 474,471 398,108 534,658 560,072
Interstate Maintenance 189,244 158,821 213,301 223,441
Bridge Program 331,885 278,551 374,108 391,891
Congestion Mitigation & Air Quality Improvement 359,256 1,151,139 1,545,901 1,619,376
Highway Safety Improvement Program ----- ----- ----- -----
Equity Bonus 570,183 587,518 686,274 800,105
Equity Bonus (Exempt) 62,303 62,303 62,303 62,303
Federal Lands Highways 75,405 68,341 92,584 97,661
Appalachian Development Highway System 34,588 29,410 39,110 39,163
High Priority Projects 249,109 207,579 280,194 275,423
Projects of National and Regional Significance 29,879 31,122 42,009 41,294
ITS Research ----- ----- ----- -----
Transportation Research, Training and Education 10,088 11,157 11,346 11,153
Miscellaneous Programs 516,485 453,535 433,378 265,656
Emergency Relief Program 750 750 750 750
Appalachian Development Highway Systems (ADHS) 1,931 8,027 ----- -----
PROGRAM FUND:
SUBTOTAL PROGRAM FUND $ 3,860,662 $ 4,305,370 $ 5,468,013 $ 5,594,965
LIMITATION ON ADMINISTRATIVE EXPENSES $ 36,643 48,791 $ 51,632 $ 53,871
TOTAL REQUEST $ 3,897,305 $ 4,354,161 $ 5,519,645 $ 5,648,836
FTE (GOE & Federal-aid Direct) 280 373 417 417

Performance Issue

The National Ambient Air Quality Standards (NAAQS) address six criteria pollutants that are among the most serious airborne threats to human health.  Transportation is a major contributor for some of these pollutants, particularly ozone, carbon monoxide, and particulate matter.  Over the past 20 years, contributions of emissions from on road mobile sources to all emissions have been rapidly declining.  For example, on road mobile source emissions decreased 68, 36, 57, and 59 percent, respectively, for Volatile Organic Compounds (VOC), Nitrogen Oxides (NOx), Particulate Matter (PM10) and Carbon Monoxide (CO) between 1980 and 2003. The downward trend in on-road mobiles sources emissions is expected to continue through 2030 as a result of the introduction of cleaner engines and fuels.

Though solid progress has been made to reduce airborne threats, more needs to be done to improve air quality.  Areas exceeding or maintaining the NAAQS are required to meet transportation conformity requirements in the Clean Air Act.  During the past eight years, the percent of nonattainment and maintenance metropolitan areas that met their emissions goals has increased and the number of metropolitan areas meeting their emissions goals is expected to increase.

During FY 2005, on average, 88 percent of Ozone areas, 98 percent of Carbon Monoxide areas, and 97 percent of Particulate Matter areas designated as nonattainment and maintenance had met their on-road mobile source emissions budgets.  The percentage for Ozone is down from 2004 due mainly to the conformity deadline of June 15, 2005 that added 126 new 8-hour Ozone nonattainment areas.  However, the levels have been consistently high for CO and PM10, and the overall trend is generally favorable.

At the end of FY 2006, there were no areas in a conformity lapse.  In 2006, the average number of areas in a conformity lapse at any given time was 1.3 percent, less than 1 percent of approximately 300 designated nonattainment or maintenance areas.  In early 2005, the EPA designated an additional 208 counties, or 39 areas, as nonattainment under the new PM2.5 standards. Transportation conformity applied in these new nonattainment areas on April 5, 2006, one year after the effective date of the nonattainment designations.  Because all of the PM2.5 nonattainment areas subject to the new standard determined conformity by the deadline, projects and program development were not delayed.

Wetlands are important natural ecosystems that filter pollutants and minimize potential floodwater damage.  They provide essential habitat for the maintenance of diverse plant and animal life.  Before their value was fully recognized, many of the Nation’s wetlands were adversely affected or lost in the development of transportation and other infrastructure facilities. In 1996, FHWA established a national policy on wetland protection that called for a net gain of wetlands in federally assisted projects.  In accordance with Section 404 of the Clean Water Act and Executive Order 11990, Protection of Wetlands, highway and transportation agencies must consider the environmental impacts of siting, construction, and operation of transportation facilities on wetlands and other aquatic resources, and provide compensatory mitigation for unavoidable impacts to and losses of, waters of the United States.

Since FHWA has replaced at least 1.5 acre to every one acre of wetlands lost throughout the Federal aid highway program during the past ten years, achieving the stated performance objective is now viewed as routine practice.  Protection of these resources remains a national priority and is a requirement under various Federal statutes and regulations, such as the Clean Water Act, Endangered Species Act, the Noxious Weed Executive Order, and Migratory Bird Treaty Act and associated implementing rules, as well as state laws and regulations.

The measure of Exemplary Ecosystem Initiatives (EEI) undertaken is the primary measure demonstrating accomplishment in environmental stewardship. An EEI is an action or measure that will help sustain or restore natural ecosystems and their functions and values, using an ecosystem or landscape approach.  Examples include mitigation projects that support wildlife movement and habitat connectivity, maintain ecosystem integrity, implement watershed-based environmental assessment and mitigation approaches, and encourage the use of wetland and habitat banking and the use of special measures to prevent invasive species along highway rights-of-way.  In FY 2008, FHWA will continue to increase the number of EEI towards the long-term goal of 55 initiatives in at least 20 States or Federal Lands Divisions.  Recent trends and targets are illustrated in Figure 6.  The FHWA recognized 20 new EEI in 2006, exceeding by thirteen the target of designating seven additional initiatives and bringing the total number that FHWA has designated thus far to 43.

Figure 6. Exemplary Ecosystem Initiatives, FY 2002 to 2008.

Figure 6. Exemplary Ecosystem Initiatives, FY 2002 to 2008.

FHWA increases ecosystem and habitat conservation in areas impacted by transportation projects by encouraging the implementation of exemplary initiatives that are either unique in geographic scope or are recognized as particularly valuable from an environmental perspective, applying innovative scientific and technological practices, and attaining a high level environmental standard. This approach is illustrated in Figure 8.

Figure 8. Relationship Between Ecosystem Protection Outputs and Outcomes.

Figure 8. Relationship Between Ecosystem Protection Outputs and Outcomes.

Anticipated FY 2007 Accomplishments

FY 2008 Performance Budget Request

Federal-aid Highway Program

Since its inception in 1992, the CMAQ program has funded more than $1 billion annually in transportation projects, targeting improvements in air quality. More recently investment levels have exceeded $1.5 billion annually. In 2008, the program will continue to help States with nonattainment and maintenance areas to implement specific initiatives for reducing transportation-related emissions. More cost-effective measures focusing on diesel emissions from freight are anticipated stemming from the new SAFETEA-LU provisions.

A major evaluation and assessment effort will be undertaken largely in FY 2007-2008 to gauge the air quality impact of CMAQ projects. The assessment program also includes the development of a CMAQ database to track and help ensure the effective implementation of the program.

NHS and STP funds will be used to support projects that reduce the social and environmental impact of system infrastructure improvements. FAHP funds apportioned to States and metropolitan areas will be used for planning activities, including the development of transportation plans that meet necessary conformity requirements.

The States will use FAHP funds apportioned for the NHS, STP, and Bridge programs to support various programs, including wetland and natural habitat mitigation, to reduce the environmental impacts to the larger watershed areas of transportation projects.

In FY 2008, FHWA will continue to encourage States to use STP and NHS funds for projects to control invasive species and encourage adoption of native plants on projects, for pollution abatement and environmental restoration projects, and brown field site remediation efforts. These actions will contribute to minimizing the environmental impacts of federally assisted transportation projects. Continued and new training and coordination activities will help implement the principles embodied in Eco-logical and development and implementation of the rapid ecosystem impact methodology for NEPA will improve efforts to streamline environmental and natural resource coordination and compliance measures.

Federal Lands Highway

FLHP funds will be used to identify project alternatives that would avoid or minimize impacts to wetlands as a first consideration. If wetland disruption is unavoidable, FHWA will mitigate wetland impacts on Federal lands by wetland replacement or investment in a wetland bank. FHLP funds will be used to contribute to increasing the number of exemplary initiatives towards the Agency-wide long-term goal. Finally, FHLP funds will be used to contribute to minimizing the environmental impacts of federally assisted transportation projects.

FLH will continue working with its partners to require more information on environmental resources and related conservation plans. For example, most states have developed a comprehensive wildlife conservation strategy, also known as Wildlife Action Plans, which is intended to help conserve wildlife and vital natural areas before they become too rare and costly to protect. This type of environmental information can help identify issues and better define scope of work for a proposed project.

One example of the benefits brought to the FLH on specific projects was in Montana. While working on a complicated federal lands project in NW Montana, FLH held multi-agency team meetings with over 20 members representing regulatory, land owning, and transportation interests in order to foster collaboration as well as improve stewardship and streamlining during the environmental process. Studies by local universities are being conducted to provide modeling of ecosystems that will aid development of future projects. Another of the results of this particular project is that FLH is now more closely working with federal, state, and local agencies to discuss transportation projects and regulatory issues in the state of Montana on future projects in the very early stages of developments and planning to further improve implementation of Executive Order 13274, Environmental Stewardship and Transportation Infrastructure Project Reviews in the Northwest and continue to remove obstacles in the environmental documentation phase.

Research and ITS

In FY 2008, FHWA will continue to undertake research on particulates, air toxics, the health effects of transportation emissions, energy and global climate change, CMAQ effectiveness, and evaluation of emissions models. Support for air quality and climate research will advance understanding of the relationship of surface transportation to the emerging areas of fine particulate emissions, toxic air emissions, and regional haze. The results will help the transportation community develop mitigation tools and technologies to reduce fine particulate emissions. FHWA will pursue air quality research to develop analytical techniques and cost-effective mitigation strategies to reduce transportation-related emissions, disseminate such information through State and local networks, and permit development of viable transportation programs. This research is critical so that the transportation community can assist the Secretary and Congress in assessing transportation’s contribution to air quality improvement.

Based on stakeholder input, FHWA will use Surface Transportation Environment and Planning Cooperative Research Program (STEP) funds as seed money to advance transportation environment and planning research on long-term, systems issues. The research agenda is focusing on major, multi-year research initiatives to improve knowledge and understanding of cross-cutting, complex transportation-environment topics, including: land use; ecology and natural systems; planning and performance measures; human health; environmental and socioeconomic relations; advanced technologies; and emerging critical issues.

Imperviousness has been recognized as a key indicator of the ecological condition of a watershed. Many studies do not break down the watershed system into components that show better evaluation of methodologies to control and mitigate impacts. Funds will be used for research regarding land use, land cover, and surface data to determine the individual contributions of the various impervious surfaces to the overall storm water runoff issue. This research will help enable States to meet Clean Water Act National Pollutant Discharge Elimination Standards, Total Maximum Daily Load, and Section 404 requirements for highway projects.

Funds will also be used to research and support the development of wetland protection and enhancement, practical techniques of habitat restoration, and ecosystem analyses and characterization. Specific initiatives for which funding will be needed are:

DOT Performance Goal: Streamlined environmental review of transportation infrastructure projects.

This funding request contributes to the DOT Environmental Stewardship and Streamlining strategic objective and the performance outcome goal to streamline environmental review of transportation infrastructure projects.

Median time in months to complete environmental impact statements (EIS) and environmental assessments (EA) for DOT-funded infrastructure projects.

20042005200620072008
Target:3530303030
Actual:DOT-wide results were not reported in FY 2005.

(Supplemental FHWA Measure)

Median time in months required for all Federal-aid Highway projects to have a completed EIS or EA

20012002200320042005200620072008
EIS Target:N/AN/A514845403636
EIS Actual:5480685456(r)57*
EA Target:N/AN/A171615141212
EA Actual:N/AN/A262525(r)43*

(r) Revised;

(Supplemental FHWA Measure)

Funding for this performance goal: $97.3 million.

This request will enable FHWA to implement environmental streamlining activities that encourage States and resource agencies to establish and meet timelines for all projects with an EIS or EA, use the Executive Order 13274 to resolve obstacles to environmental review early and develop new streamlined procedures, promote widespread implementation of environmental stewardship during project development through Context Sensitive Solutions (CSS), and promote processes that integrate environment and transportation decision making in more States. In addition it serves as a surrogate for measuring implementation of the SAFETEA-LU environmental process provisions.

The resources requested to achieve this goal are:

($000)

STRATEGIC & PERFORMANCE GOALS by PROGRAM ACTIVITIES FY 2006 ACTUAL FY 2007 CONTINUING RESOLUTION FY 2007 PRESIDENT'S BUDGET TOTAL 2008 REQUEST
IV. Environmental Stewardship (continued)
B. Streamlined environmental review of transportation infrastructure projects
Federal-aid Highways (Excludes LAE) $ 83,375 $ 76,715 $ 95,263 $ 96,385
Transp. Infrastructure Finance and Innov. Act (TIFIA) 263 249 295 305
Surface Transportation Program 11,960 10,751 14,438 15,124
National Highway System 12,166 10,208 13,709 14,361
Interstate Maintenance 9,960 8,359 11,226 11,760
Bridge Program 8,510 7,142 9,593 10,048
Congestion Mitigation & Air Quality Improvement 910 2,914 3,914 4,100
Highway Safety Improvement Program ----- ----- ----- -----
Equity Bonus 14,620 15,065 17,597 20,516
Equity Bonus (Exempt) 1,598 1,598 1,598 1,598
Federal Lands Highways 1,754 1,589 2,153 2,271
Appalachian Development Highway System 988 840 1,117 1,119
High Priority Projects 6,387 5,323 7,184 7,062
Projects of National and Regional Significance 766 798 1,077 1,059
ITS Research ----- ----- ----- -----
Transportation Research, Training and Education ----- ----- ----- -----
Miscellaneous Programs 13,243 11,629 11,112 6,812
Emergency Relief Program 250 250 250 250
Appalachian Development Highway Systems (ADHS) 50 206 ----- -----
PROGRAM FUND:
SUBTOTAL PROGRAM FUND $ 83,425 $ 76,921 $ 95,263 $ 96,385
LIMITATION ON ADMINISTRATIVE EXPENSES $ 792 872 $ 900 $ 928
TOTAL REQUEST $ 84,217 $ 77,793 $ 96,163 $ 97,313
FTE (GOE & Federal-aid Direct) 6 7 8 7

Performance Issue

Project delays impede needed transportation system improvements. Streamlining of environmental reviews and documentation is essential to mitigating time delays and implementing highway projects on a more timely and cost effective basis. To date, progress has been slow because of the magnitude of the issues and the pipeline effect of complex projects with an EIS and EA initiated many years ago. States are responding to reductions in staffing and budgets at resource agencies by increasing the use of funding agreements for liaisons and data to support streamlining. Progress can be masked by the process delays created from responding to emerging issues, such as air toxics and changes in wetland banking rules.

As illustrated in Figure 8, the median time to complete an environmental review for all Federal-aid projects in FY 1999 was 79 months, or six-and-a-half years. The median time for processing an EIS declined to 54 months between FY 1999 and FY 2001. Due in part to efforts to include additional longstanding projects in the inventory, the median time increased to 80 months in 2002. The median time decreased from 68 months in FY 2003 to 57 months in FY 2006.

Despite this recent reversal in the trend, FHWA aims to decrease the median completion time for all EIS and EA projects to 36 and 12 months, respectively in FY 2008. Working with State departments of transportation, FHWA will strive to establish schedules for completion of all EISs and EAs and advance them on schedule. In the longer-term these targets will be maintained.

Figure 8. Median EIS Processing times, FY 1998 - 2008.

Figure 8. Median EIS Processing times, FY 1998 - 2008.

Anticipated FY 2007 Accomplishments

The FHWA will encourage States and resource agencies to establish and meet timelines for all projects with an EIS or EA. Implementation of Executive Order 13274, Environmental Stewardship and Transportation Infrastructure Project Reviews, will help resolve obstacles in the environmental review process at early stages for designated priority projects.

Many SAFETEA-LU environmental process provisions include tracking and reporting measures that will aid states in their continuous improvement efforts, and managers will be able to act on the results of the second National NEPA Performance Survey.

Federal Lands Highway continues to undertake steps to link planning and NEPA as an opportunity to streamline the environmental process. FLH continues to reach out to our FLMA partners to better define the planning processes across the FLH programs and clarify roles and responsibilities and to develop an action plan to track implementation of linking activities. FLH is currently working with FLMAs to understand and implement SAFETEA-LU provisions that change traditional agency roles and responsibilities in project delivery. In FY 2006, one development is to promote, implement, and continue support of a NEPA template from one NPS Region to all NPS Regions. By linking planning and NEPA, FLH hopes to affect the NEPA process timeline by meeting or exceeding the goals set by the agency.

After developing the training for the NHI Context Sensitive Solutions (CSS) training and as a recognized leader in CSS, FLH continues to support CSS training and works with the federal agencies of the FLH program and Indian tribes for integrated planning and continuation of CSS. CSS is a collaborative, interdisciplinary approach to designing and constructing transportation projects that ensure safety and mobility while preserving scenic, aesthetic, historic, and environmental resources.

FY 2008 Performance Budget Request

Federal-aid Highway Program

Significant environmental process changes will be made in response to SAFETEA-LU. The Planning and Project Development Process will start to reflect the implementation of new guidance, rulemaking, and delegation pilot efforts. Assessment and tracking methods will be implemented to identify trends in environmental stewardship and streamlining. Good practices to promote and opportunities for problem solving will emerge.

Significant interagency partnering and co-funded initiatives will be needed to implement integrated planning and linking planning and NEPA state and regional efforts. Collaboration and coordination of resource agency research initiatives with transportation priorities will be accomplished through Executive Order 13274, Federal Liaisons, and the STEP outreach effort. Interdisciplinary teams of partners will be called on to form policy and program options that advance the Transportation Secretary’s Congestion Initiative.

Advances in geospatial and decision support technology and the training of project development practitioners in tiered and scalable reviews are needed to address the ever growing complexity of major project development. Improved impact analysis and creative mitigation approaches are dependent on good proactive responses to changes in best available science.

The path towards community and financial support for transportation improvements is based on widespread awareness and practice of context sensitive solution principals. Many public involvement tools and methods need to be updated in response to changes in innovative financing, visualization, environmental management systems and commitment tracking systems, as well as process changes to planning and project development.

Federal Lands Highway

The FLHP funds will be used to continue activities with FLMAs to streamline the environmental efforts by identifying best practices and processes. FLH continues to track timelines for both EIS and EA, working with partner agencies to speed up the timeline, and continues to evaluate a survey with partner agencies to assess if collaboration efforts in the environmental arena are successful. FLH will evaluate the phased programming process for the FH and PRP programs and develop criteria for projects that warrant a phased programming process. FLH will monitor change in program management. EIS projects and EA projects with a wide range of location or cost alternatives should be considered for a phased process. Program management recommendations are provided.

Research and ITS

In FY 2008, FHWA will place substantial emphasis on identifying and developing time-sensitive and cost-effective techniques to redesign, integrate, and balance environmental and transportation decision-making so that the environmental review process is completed in less time. FHWA anticipates placing substantial effort in implementing the environmental streamlining related provisions included in SAFETEA-LU. In addition, FHWA will continue to work with other Federal agencies and State transportation departments to advance administrative measures to streamline environmental reviews. These will involve national policy initiatives with the U.S. Army Corps of Engineers, the U.S. Fish and Wildlife Service, the Forest Service, the EPA, the National Marine Fisheries Service and the Advisory Council on Historic Preservation. It will also involve providing support for State and regional measures that provide new models for environmental review efficiency.

The FHWA will upgrade the Environmental Document Tracking System and conduct follow up survey of transportation and environmental agency staff perceptions. This will allow a comparison between 2003 and 2006 survey results and will assist in evaluating the effectiveness of various initiatives to improve interagency coordination. All these actions are intended to improve understanding of the NEPA process and to ultimately streamline environmental processing timeframes.

Limitation on Administrative Expenses

FTE and administrative resources associated with this strategic initiative are as follows:
424 FTE and $54.8 million

The Environmental Stewardship strategic initiative is supported by information technology through mission support and management data systems utilized by staff in delivering the program:

FHWA uses HEPGIS Software and GIS expertise to support the Safety, Mobility, Global Connectivity, Environment, Organizational Excellence and Security strategic initiatives though the analysis and display of information. The primary function of HEPGIS is the display of data that is the official record of the National Highway System (NHS), NHS connectors, Strategic Highway System (STRAHNET), STRAHNET connectors and the Interstate. The output of GIS is used to analysis the transportation system, share information with other agencies and define which roads are eligible for Funds. GIS is also used to make this information available over the Internet.

TELUS - Supports Safety, Congestion, Environment, and Organizational Excellence strategic initiatives by providing metropolitan planning organizations and State departments of transportation fully integrated information management and decision support system to develop their transportation improvement programs and carry out other transportation planning responsibilities, particularly, public participation in the transportation planning process. TELUS provides an information management system that is easy to use, can store and manipulate large amounts of data, and can present these data to decision makers and the public in a coherent and timely manner.

The Environment Document Tracking System (EDTS) allows FHWA to record and periodically update key project information needed to track the progress of active EISs and EAs. This tracking system aids in our ability to monitor project progress between major milestones and to accurately determine the total processing time from initiation of an EIS or EA to approval of the final decision document. The ability to accurately determine the length of time necessary to complete the NEPA process is essential and enhances the Agency's understanding of the average time required to prepare EISs and EAs, and the delay factors that affect the efficiency of NEPA project delivery.

CMAQ System: The CMAQ Reporting System supports both Mobility and Environment goals. The system provides comprehensive project-level information on efforts funded under CMAQ. In addition to data on the emissions reductions projected for CMAQ projects, the system tracks information on those endeavors that target congestion relief and traffic flow. In addition to reducing emissions, about 70% of CMAQ investments to date have contributed to congestion mitigation efforts.

Responsible Officials:
Ms. Gloria Shepherd, Acting Associate Administrator for Planning, Environment, and Realty

SECURITY, PREPAREDNESS AND RESPONSE

DOT Performance Goals:

This funding request enables the FHWA and DOT to balance the need to protect critical transportation infrastructure with the safety, mobility and economic needs of the nation, respond to emergency need following disasters of all types, and providing for rapid recovery of transportation in all modes from intentional harm and natural disasters.

Funding for this performance goal: $374.7 million.

This request will allow FHWA to enable State departments of transportation to implement critical security enhancement activities in the areas of critical infrastructure vulnerability assessments and countermeasure deployment; emergency operations, preparedness and response; freight and border security operations; and national defense mobility using the Strategic Highway Network.

This request will allow DOT to continue to address state and local needs in recovering from natural and man-made disasters, to provide technical assistance and guidance to Federal-aid Highway Program fund recipients on strategies designed to protect critical transportation infrastructure from attack as well as in responding to emergencies of all types.

The resources requested to achieve this goal are:

($000)

STRATEGIC & PERFORMANCE GOALS by PROGRAM ACTIVITIES FY 2006 ACTUAL FY 2007 CONTINUING RESOLUTION FY 2007 PRESIDENT'S BUDGET TOTAL 2008 REQUEST
V. Security, Preparedness, and Response
A. Rapid, effective decision-making in emergencies affecting the transport. sector, and effective prep. and response for transport. emergencies
Federal-aid Highways (Excludes LAE) $ 331,625 $ 297,151 $ 367,387 $ 371,087
Transp. Infrastructure Finance and Innov. Act (TIFIA) 1,051 995 1,182 1,220
Surface Transportation Program 47,840 43,003 57,751 60,495
National Highway System 48,664 40,832 54,837 57,443
Interstate Maintenance 39,841 33,436 44,906 47,040
Bridge Program 34,040 28,569 38,370 40,194
Congestion Mitigation & Air Quality Improvement ----- ----- ----- -----
Highway Safety Improvement Program ----- ----- ----- -----
Equity Bonus 58,480 60,258 70,387 82,062
Equity Bonus (Exempt) 6,390 6,390 6,390 6,390
Federal Lands Highways 7,014 6,357 8,612 9,085
Appalachian Development Highway System 3,953 3,361 4,470 4,476
High Priority Projects 25,550 21,290 28,738 28,248
Projects of National and Regional Significance 3,064 3,192 4,309 4,235
ITS Research ----- ----- ----- -----
Transportation Research, Training and Education 1,765 1,952 1,986 1,952
Miscellaneous Programs 52,973 46,516 44,449 27,247
Emergency Relief Program 1,000 1,000 1,000 1,000
Appalachian Development Highway Systems (ADHS) 198 823 ----- -----
PROGRAM FUND:
SUBTOTAL PROGRAM FUND $ 331,823 $ 297,974 $ 367,387 $ 371,087
LIMITATION ON ADMINISTRATIVE EXPENSES $ 3,149 3,377 $ 3,469 $ 3,573
TOTAL REQUEST $ 334,972 $ 301,351 $ 370,856 $ 374,660
Mandatory [non-add] $ 7,390 $ 7,390 $ 7,390 $ 7,390
Discretionary [non-add] $ 327,582 $ 293,961 $ 363,466 $ 367,270
FTE (GOE & Federal-aid Direct) 24 26 28 28

Performance Issue

The highway system is not only critical to the Nation's economic vitality and quality of life, but it also plays a key role in every emergency event. The transportation system must function efficiently in order to evacuate threatened populations including special needs and transit-dependent populations and pets, allow first responders to get to the scene, and facilitate the movement of supplies into and out of the area. Access to critical infrastructure during and after an incident must be safeguarded and mobility must be restored in the days and months after an event.

Anticipated FY 2007 Accomplishments

FY 2008 Performance Budget Request

Federal-aid Highways Program

Federal-aid funds allocated to States will be used to support the projects and initiatives identified in State and local security plans, such as increased bridge surveillance, retrofit of existing facilities, or the enhancement of new facilities to meet current and future security needs. State departments of transportation will use a portion of their FAHP funds to support the pooled fund Security and Emergency Operations Professional Capacity Building Program to meeting their needs for training and technical assistance in these areas. Working closely with TSA, FHWA will encourage States and local communities to use available funds to identify their critical transportation infrastructure, perform risk assessments of those facilities, and implement cost effective countermeasures to reduce risk of catastrophic loss. FHWA will encourage state and local governments to consider security program options and strategies identified during the regional workshops conducted in FY 2006-2007. FHWA will continue to provide technical assistance and training in areas ranging from risk assessment and countermeasure implementation to emergency preparedness and operations.

Research and ITS

The FHWA, together with the National Capital Planning Commission (NCPC), the Department of State, the General Services Administration, the Department of Homeland Security, and others have formed a Perimeter Security Testing Working Group to design and test aesthetically enhanced streetscape that function as barrier elements for use at federal properties federal properties nationally and abroad. FHWA contributes through the use of models and simulations initially developed for roadside hardware safety analysis. Funding is requested to engineer (including limited crash testing to verify their effectiveness) alternative barrier treatments that meet the Urban Design and Security Plan adopted by the NCPC in October of 2002. The parties have a common interest in ensuring that barrier elements that secure the perimeter of federal buildings are tested for reliability against vehicular attack and are designed to be complementary to the surrounding environment.

Proposed FHWA activities in support of national security also include:

Limitation on Administrative Expenses

FTE and administrative resources associated with this strategic initiative are as follows:
28 FTE and $3.6 million

The Security strategic initiative is supported by information technology through mission support and management data systems utilized by staff in delivering the program:

FHWA uses HEPGIS Software and GIS expertise to support the Security strategic initiative though the analysis and display of information. The primary function of HEPGIS is the display of data that is the official record of the National Highway System (NHS), NHS connectors, Strategic Highway System (STRAHNET), STRAHNET connectors and the Interstate. GIS is used to analyze the transportation system, share information with other agencies and define which roads are eligible for funds.

Responsible Officials:

Mr. Dan Ferezan, Program Manager for Transportation Security
Mr. Jeffrey F. Paniati, Associate Administrator for Operations
Mr. King Gee, Associate Administrator for Infrastructure

ORGANIZATIONAL EXCELLENCE

DOT Performance Goal: Achieve strategic management of human capital, e-government goals, competitive sourcing goals, financial performance goals, and budget and performance integration goals.

This funding request contributes to the DOT Organizational Excellence strategic objective to implement the reform initiatives in the President's Management Agenda (PMA).

Funding for this performance goal: $550.6 million.

The resources requested to achieve this goal are:

($000)

STRATEGIC & PERFORMANCE GOALS by PROGRAM ACTIVITIES FY 2006 ACTUAL FY 2007 CONTINUING RESOLUTION FY 2007 PRESIDENT'S BUDGET TOTAL 2008 REQUEST
VI. Organizational Excellence
A. Achieve strategic mgmt of human capital, e-gov goals, competitive sourcing goals, financial performance goals, and budget and performance integration goals        
Federal-aid Highways (Excludes LAE) $ 486,384 $ 456,766 $ 545,070 $ 545,327
Transp. Infrastructure Finance and Innov. Act (TIFIA) 1,051 995 1,182 1,220
Surface Transportation Program 95,680 86,006 115,501 120,991
National Highway System 48,664 40,832 54,837 57,443
Interstate Maintenance ----- ----- ----- -----
Bridge Program 34,040 28,569 38,370 40,194
Congestion Mitigation & Air Quality Improvement 3,638 11,657 15,655 16,399
Highway Safety Improvement Program 8,644 7,128 9,538 10,025
Equity Bonus 116,961 120,516 140,774 164,124
Equity Bonus (Exempt) 12,780 12,780 12,780 12,780
Federal Lands Highways 14,029 12,715 17,225 18,170
Appalachian Development Highway System ----- ----- ----- -----
High Priority Projects 25,550 21,290 28,738 28,248
Projects of National and Regional Significance ----- ----- ----- -----
ITS Research ----- ----- ----- -----
Transportation Research, Training and Education 17,401 19,245 19,572 19,239
Miscellaneous Programs 105,946 93,033 88,898 54,494
Emergency Relief Program 2,000 2,000 2,000 2,000
Appalachian Development Highway Systems (ADHS) 395 1,647 ----- -----
PROGRAM FUND:
SUBTOTAL PROGRAM FUND $ 486,779 $ 458,413 $ 545,070 $ 545,327
LIMITATION ON ADMINISTRATIVE EXPENSES $ 4,620 5,195 $ 5,147 $ 5,251
TOTAL REQUEST $ 491,399 $ 463,608 $ 550,217 $ 550,578
Mandatory [non-add] $ 14,780 $ 14,780 $ 14,780 $ 14,780
Discretionary [non-add] $ 476,619 $ 448,828 $ 535,437 $ 535,798
FTE (GOE & Federal-aid Direct) 35 40 42 41

Human Capital

The FHWA monitors the Agency's goals and performance objectives, as stated in the Strategic Implementation Plan and the Administrator's Accountability Contract with the Transportation Secretary. The performance objectives are cascaded to the performance agreements of Senior Executives, and further to the performance plans of individual employees. Individual performance plans are used as the basis for recognizing and rewarding employee accomplishments. Thus, the FHWA ensures that awards are being used to recognize achievements that advance the Agency's mission-related goals and performance objectives.

Anticipated FY 2007 Accomplishments

The numbers at the beginning of each paragraph refer to the OMB Standards of Success for Achieving/Maintaining a "Green" status for this PMA initiative.

Human Capital Plan, Succession Planning, Closing Gaps. The FHWA's Human Capital Plan will be revised to implement a new model for the achieving a multidisciplinary workforce. The Agency will strengthen succession planning initiatives by revising supervisory, management, and leadership learning strategies and by establishing a more focused approach on executive development. The FHWA anticipates that significant numbers of employees will be retiring and that effective recruitment strategies will be needed to replace the retiring workforce. While continuing to assess needed skill changes of FHWA employees through workforce planning, the Agency will make continued progress in closing gaps in mission critical occupations, e.g., financial management, engineering and government wide IT and Human Resources. The Professional Development Program ($2.25 million) will be used to hire individuals in critical disciplines, including financial management. Recruitment incentives ($0.3 million) will be critical to attracting individuals with the needed multidisciplinary skills. The FHWA will implement actions necessary to change the skills mix of the financial management workforce. The Agency's learning and development program ($2.0 million) will train increasing numbers of employees in project oversight and financial management and incorporate the multidisciplinary approach and accountability at all levels of training. The Agency plans to fund rotational assignments for mid-career hires to ensure that they have the skills needed to perform on the job. Numerous training programs will be offered via videoconferencing and web conferencing. In addition, development for succession planning purposes will focus on the following areas, the executive development program, as well as new supervisor and leadership training.

The FHWA will implement recommendations for pilot field organizational alignments that lead to increased organizational flexibility to respond to changes in agency mission. ($0.06 million for teleworking sites and related training for employees and managers in remote worksites.)

The FHWA has performance appraisal and awards systems for all SES and all General Schedule employees. Employees and supervisors will receive additional training on how to increase the metrics in the performance standards. Feedback from OPM on FHWA's Performance Appraisal Assessment Tool will be addressed. FHWA also plans to ensure that awards are being used to recognize achievements that advance our goals and objectives. FHWA will carefully monitor that these goals and objectives, as stated in the Agency Performance Plan and the Administrator's Performance Agreement with the Secretary, are cascaded down to Senior Executives' performance objectives and to the performance plans of individual employees, and are used as the basis for recognizing and rewarding employee accomplishments. The Agency has requested $2.7 million in GOE funds for its employee recognition and awards budget to support this strengthening of the performance culture in the FHWA.

The FHWA will continue to implement its Diversity Action Plan and create an organizational climate that enables a multidisciplinary workforce to achieve the strategic goals of the Agency. New approaches will be used to reach out to diverse groups of candidates at the mid-level. Recruitment incentives will be critical to attract individuals with diverse skills and backgrounds. The Agency will implement new initiatives to reduce the under-representation of Hispanic employees and individuals with disabilities. In addition, recommendations from the FHWA Disability Task Force will be implemented. Mediation will be used to address organizational issues when appropriate ($0.13 million).

Under the OPM 45-day hiring model, the measurement of success will change from "average number of days" to "percentage selected within 45 days." The goal for FY 2007 is for selecting officials to sign the certificate within 45 days of the announcement closing in 65 percent of the cases. For the SES, the FHWA is developing a guideline to assist selecting officials in making selections and clearing the ERRC within 90 days.

FHWA is participating in Department-wide accountability reviews. In 2007, FHWA will implement improvements and corrective actions identified in the accountability reviews of the employee recognition system. It will conduct an accountability review of selected staffing and recruitment programs in the Talent area. Further accountability review activity will be coordinated with the DOT Accountability Review Program Plan. ($0.04 million)

FY 2008 Performance Budget Request

Human Capital Plan, Succession Planning, Closing Gaps. The FHWA's Human Capital Plan will be modified to reflect new organizational approaches for implementing the Federal-aid Highway Program. The Succession Plan will be implemented to ensure its workforce has depth in leadership skills to replace retiring employees. The FHWA anticipates that significant numbers of employees will be retiring and that effective recruitment strategies will be needed to replace the retiring workforce. While continuing to assess needed skill change of FHWA employees through workforce planning, the Agency will make continued progress in closing gaps in mission critical occupations, e.g., financial management, engineering, and government-wide IT and Human Resources. The Professional Development Program ($2.25 million) will be used to hire individuals in critical disciplines, including financial management. Recruitment incentives ($0.3 million) will be critical to attracting individuals with the needed multidisciplinary skills. The FHWA will implement actions necessary to change the skills mix of the financial management workforce. The Agency's learning and development program ($2.5 million) will train increasing numbers of employees in project oversight and financial management and incorporate the multidisciplinary approach and accountability at all levels of training. In addition, development for succession planning purposes will focus on the following areas, the executive development program, as well as new supervisor and leadership training. Additionally, the Agency will continue to fund rotational assignments for mid-career hires to ensure that they have the skills needed to perform on the job. Numerous training programs will be offered via videoconferencing and web-conferencing.

The FHWA will evaluate the pilot field realignments to identify issues and make changes to increase organizational effectiveness ($0.06 million for teleworking sites and related training for employees and managers in remote worksites).

The FHWA will carefully monitor to ensure the Agency's goals and objectives, as stated in the Agency Performance Plan and the Administrator's Performance Agreement with the Secretary, are cascaded down to Senior Executives' performance objectives and to the performance plans of individual employees, and are used as the basis for recognizing and rewarding employee accomplishments. The Agency's focus on pay-for-performance will be results-driven, producing a distribution of pay adjustments and awards based on individual contribution, organizational performance, and/or team performance. Follow-up assessments will be conducted to measure the effectiveness of program improvements implemented as a result of previous Accountability Reviews.

The Agency also plans to ensure that awards are being used to recognize achievements that advance the Agency's goals and objectives. The Agency has requested $2.7 million in GOE funds for its employee recognition and awards budget to support this strengthening of the performance culture in the FHWA.

The FHWA will continue to implement its Diversity Action Plan and create an organizational climate that enables a multidisciplinary workforce to achieve the strategic goals of the Agency. New approaches will be used to reach out to diverse groups of candidates at the mid-level. Recruitment incentives will be critical to attract individuals with diverse skills and backgrounds. The Agency will implement new initiatives to increase the representation of Hispanic employees and individuals with disabilities. Mediation will be used to address organizational issues when appropriate ($0.13 million).

Under the OPM 45-day hiring model, the measurement of success for FY 2007 will change from "average number of days" to "percentage selected within 45 days." If the measurement for success changes for FY 2008, the FHWA will make any changes necessary to work toward achieving the new goal.

The FHWA will continue to integrate into our business processes additional components of an accountability system that provides consistent means to monitor and analyze agency performance on all aspects of human capital management policies, programs, and activities, which must themselves support mission accomplishment and be effective, efficient, and in compliance with merit system principles. In addition, the FHWA will participate in Department-wide accountability reviews. The FHWA will continue to implement improvements and corrective actions identified in the accountability reviews of the selected staffing and recruitment programs in the Talent area. Further accountability review activity will be coordinated with the DOT Accountability Review Program Plan ($0.04 million).

E-Government

Anticipated FY 2007 Accomplishments

In FY 2007, the FHWA plans to continue to lead a departmental E-Government committee working on crosscutting information technology (IT) initiatives, complete the consolidation of IT infrastructure in field offices as a matter of best practice, and support the 24 E-Gov initiatives through contributions and partnering. In addition, in the Enterprise Architecture (EA) area, FHWA will continue to build an information repository and to integrate EA with capital planning. Some of the areas the Agency will focus on include establishing a target architecture, developing a transition strategy and sequencing plan, and implementing governance processes. We will also develop a process and plan for implementing Lines of Business and SmartBuy initiatives to prevent redundant or duplicative information technology investments.

Implementation of the Department of Interior's Federal Personnel and Payroll System (FPPS). In FY 2007, new versions of FPPS will be implemented as they become available.

Electronic Systems for Learning and Development (eLMS). FHWA anticipates implementing the following advanced functionality within eLMS in FY2007: the Individual Development Plan (IDP).

Executive Agent/Hiring Management. In FY 2007, the Executive Agent (DOT Automated Staffing Office) will continue to enhance the automated staffing system and work with the Administrations within DOT to improve timeliness of selections. In FY 2006, the performance measurement of the 45-day model for the Department was changed to track the percentage of cases that met the 45 workday goal as opposed to the average number of days. The Executive Agent will work with each Administration to promote awareness of the goal and improve timeliness of the actions such that 80 percent of certificates are signed by the Selecting Officials within 45 workdays from the date the announcement closes. The Executive Agent will continue to reduce the average number of days to 7 days or less and to issue 90 percent of certificates within 15 days, with over 80 percent being issued within 7 days.

Implementation of the Enterprise Human Resource Integration (EHRI). The Enterprise Human Resource Integration (EHRI) is an e-Government initiative under the President's Management Agenda, which includes implementation of the Electronic Official Personnel File (e-OPF). In FY 2007, the FHWA will begin to convert paper OPFs to electronic format.

FY 2008 Performance Budget Request

The FHWA anticipates the following accomplishments in the information technology (IT) e-Gov area in FY 2008:

Implementation of the Department of Interior's Federal Personnel and Payroll System (FPPS). In FY 2008, new versions of FPPS will be implemented as they become available.

Electronic Systems for Learning and Development (eLMS). FHWA anticipates implementing the following advanced functionality within eLMS in FY2008: competencies, and building course curriculum.

Executive Agent/Hiring Management. In FY 2008, the Executive Agent will continue to enhance the automated staffing system and work with the Administrations within DOT to improve timeliness of selections. In FY 2006, the performance measurement of the 45-Day model for the Department was changed to track the percentage of cases that met the 45 workday goal as opposed to the average number of days. The Executive Agent will continue to work with each Administration to promote awareness of the goal and improve timeliness of the actions. In FY 2008, the Executive Agent will work with each Administration to improve the timeliness of the staffing/hiring actions, such that 85 percent of certificates are signed by the Selecting Officials within 45 workdays from the date the announcement closes and to increase to 95 percent the number of certificates issued within 15 calendar days from the date the vacancy closes.

Implementation of the Enterprise Human Resource Integration (EHRI). The Enterprise Human Resource Integration (EHRI) is an e-Government initiative under the President's Management Agenda, which includes implementation of the Electronic Official Personnel File (e-OPF). In FY 2008, the FHWA will convert the remaining paper OPFs to electronic format and will implement full usage of e-OPF.

Competitive Sourcing

The FHWA Administrator remains fully committed to sustaining a "green" status for competitive sourcing on the President's Management Agenda status scorecard.

Anticipated FY 2007 Accomplishments

In FY 2007, FHWA expects to use the results of its FY 2006 and previous FAIR Act Inventories for determining whether feasibility studies are in order and to continue work begun in prior years. We will also continue to utilize our activity-based approach in compiling FHWA's annual Federal Activities Inventory Reform (FAIR) Act inventory and continue to provide written justifications for all activities determined to be unsuitable for competition.

The FHWA has begun an intensive review of the commercial training and technical assistance activities that reside in the otherwise inherently governmental and commercial work of program specialists (engineers, right-of-way specialists, environmental specialists, etc.) spread throughout the Agency nationwide. Though this review is being conducted as part of FHWA's strategic workforce planning analysis, it should also provide insights into the nature of this activity and the viability and consequences of separating this activity from other work. It is anticipated that this review will conclude in late FY 2007 at which time FHWA will review its options for future workforce actions.

The FHWA is actively participating with the Department to identify common functions among the Operating Administrations that, when collectively considered, have the potential for greater economy and efficiency through public-private competition. The FHWA's internal plans and process may need to be modified, as a result of Departmental decisions regarding functions selected for joint review.

In early 2007, the FHWA will receive the results of its first annual post competition review of the two streamlined competitions (Visual Information Services (9 FTE) and Data Collection and Analysis (19 FTE)) that were completed by the Agency in early 2005. The review is being conducted to ensure accountability by the winners of the competition for providing the services specified in the statements of work used in the public-private competitions.

In summary, planned accomplishments in 2007 are:

FY 2008 Performance Budget Request

In FY 2008, FHWA will continue to use competitive sourcing as a tool that supports our workforce planning and organizational effectiveness goals. Competitive sourcing will continue to be one tool we use to help focus FHWA's efforts to achieve a most efficient and effective organization by complementing internal efficiency reviews with an added potential for external solutions.

As in other Federal agencies, virtually all of FHWA's FTE positions perform a combination of inherently governmental and commercial work. By focusing on functions and activities rather than specific positions, our FAIR Act inventories facilitate the identification of areas that may or may not be appropriate for private sector performance. This level of detail also contributes to the effectiveness of our organizational and workforce planning analyses, and helps ensure consistency in the categorization of like positions across the Agency. We want to maintain an inventory that minimizes the need for changes during subsequent annual review cycles. Short of any extraordinary influences on FHWA, our current inherently governmental and commercial inventories depict a steady state.

Planned accomplishments include 1) working to improve and enhance the alignment of our human capital management strategies with competitive sourcing; 2) continuing to participate in OST cross-cutting reviews of Departmental operations where FHWA has an FTE presence; and 3) continuing to train those Agency employees involved in the competitive sourcing process, e.g., competition officials, to ensure they have the necessary knowledge and skill to properly implement the Agency's Competitive Sourcing Program.

Financial Performance

Performance measures

Percent of major Federally funded transportation infrastructure projects with less than 2% annual growth in the project completion milestone as reported in the finance plan (target is 90% in 2011).

20042005200620072008
Target:N/TN/TN/TN/T90%
Actual:50%83%86%

Percent of finance plan cost estimates for major Federally funded transportation infrastructure projects with less than 2% annual growth (target is 90% in 2011).

20042005200620072008
Target:N/TN/TN/TN/T90%
Actual:75%83%86%

The resources included in the budget submission will enable FHWA to improve major project oversight and program stewardship, improve program delivery through the development of program guidance, technical assistance, tools and training.

Performance Issue

The fiscal year 2005 audit of the Highway Trust Fund (HTF) identified grants financial management oversight as a material weakness. It was also reported as a material weakness in the FY 2004 audit.

Program oversight and program stewardship are critical and ongoing strategic objectives for FHWA. In this regard, FHWA must continue to focus its resources on activities that ensure that every Federal dollar is well spent and that program operations and processes are efficient and streamlined. Monitoring the cost, schedule, and performance of Federal-aid transportation infrastructure projects, especially mega-projects (those costing over $500 million) are critical to identify problems and initiate action to mitigate risks.

In 2000, the FHWA began monitoring project cost and schedules on mega-projects by reviewing and approving project Finance Plans and annual updates. SAFETEA-LU lowered the monetary threshold for classification as a Major Project from $1 billion to $500 million and Project Management Plans were made mandatory for all mega- projects. The impact of the lowered monetary threshold immediately increased the number of Major Projects from 21 to 37. In addition, more than 80 potential Major Projects are currently at the environmental review stage.

Anticipated FY 2007 Accomplishments

FHWA will complete a full year under the Financial Integrity Review and Evaluation (FIRE) Program. Training will continue to be provided to the Federal-aid Division Office Administrators and Financial Managers regarding the objectives of the oversight program and techniques for accomplishing the program.

The following activities and initiatives are planned for the stewardship and oversight area: develop a National Lessons Learned Program, and cost estimating standards; deliver the Project Management for Executives course, and cost estimating training; update and revise the Finance Plan guidance; develop and implement Project Management Plan guidance.

FY 2008 Performance Budget Request

FHWA will continue implementation of the FIRE program and ongoing efforts to improve financial stewardship and oversight.

FHWA will deliver a National Lessons Learned Program to field offices for major project stewardship and oversight. Also, an NHI course on cost estimation for major projects is expected to be ready for delivery. The course will present fundamental concepts to be used for major project cost estimate validations that will assist in ensuring that major project cost estimates are accurate and complete throughout the project development process.

FHWA will continue to support project management training for Major Project oversight managers and employees actively involved in the projects. The training will help ensure that the project management plans required for major projects are consistent with Agency guidance.

Management Challenge: Getting the Most for Every Taxpayer Dollar Invested in Highway and Transit Projects.

1. Actions by FHWA and the States Are Needed To Provide Oversight of Highway Funds to Ensure Projects Are Delivered On Time, Within Budget, and Free From Fraud.

Ensure major project cost estimates and schedule milestones are credible.

In a 2003 Report to Congress, the FHWA outlined its efforts to develop a more multi-disciplinary approach towards project management and oversight activities. During the past three years, the Agency has addressed four key areas: 1) Optimizing the use of internal staffing; 2) Effective recruitment of project managers; 3) Increased training for existing and new staff; and 4) Implementing specific stewardship and oversight initiatives, including the development of Project Management Plans and an Agency-wide risk management approach.

Optimizing the use of internal staffing. In FY 2006, the FHWA continued a program to transition Agency employees from the traditional role of reviewing and approving highway engineering project level actions to an emerging role of ensuring the effectiveness of state department of transportation processes in areas that are major project drivers such as financing, controlling project level costs, schedule performance, transportation planning, maintaining funds accountability, and providing greater oversight of higher level management and financial issues (see discussion below).

FHWA also initiated an effort in FY 2005 to develop a more formal, documented approach to Project Delivery Oversight. Each Division Office was directed to survey their respective data systems that contain the project cost and schedule management elements.

Effective recruitment of project managers. Since major projects require more project-focused effort, FHWA Divisions with major projects are establishing a Project Oversight Manager position. The duties of a Project Oversight Manager will include ensuring that cost estimates and schedule milestones are credible. Specifically, this guidance requires actions at major project milestones. Prior to the release of the Final Environmental Impact Statement or Environmental Assessment for a major project, the State DOT or Metropolitan Planning Organization is required to conduct an independent and unbiased validation of the cost estimate for the preferred alternative. The validation is a rigorous review of the cost estimate and schedule to ensure that it is reasonable and logical. The FHWA will then review the results of that validation to verify that the estimate includes all costs and that project uncertainties and risks have been accounted for. This validation and review process will be repeated prior to the initial financial plan and whenever major project financial plan annual updates show an increase of more than 5 percent or a schedule slippage of more than 6 months.

While continuing to assess needed skill change of FHWA employees through workforce planning, the Agency continues to make progress in closing gaps in mission critical occupations and continuing the shift to a multidisciplinary workforce. The Agency expects that the cultural shift to an organization committed to project oversight and effective financial management will be fully operational in FY 2007. The Professional Development Program is being used to hire individuals in critical disciplines, including financial management. Recruitment incentives will be critical to attracting individuals with the needed multidisciplinary skills.

Increased training for existing and new staff. In 2006, FHWA continued its effort to develop a multidisciplinary workforce. The FHWA delivered training to support implementation of a financial management improvement program, cost estimating, risk management, project management and process review. In the areas of financial management, FHWA is committed to narrowing the skill gaps identified in Department-wide assessments. We have identified areas of improvement, developed a strategy for closing the gaps and rewritten position descriptions to better identify financial management job duties and responsibilities. The FHWA is also addressing skill gaps by changing the mix of new hires to a multidisciplinary focus that includes positions other than civil engineering. Finally, FHWA assessed and evaluated positions in the 810 (Engineering) job series to determine whether the function reflects the appropriate classification series and made recommendations for appropriate classification.

Implementing specific stewardship and oversight initiatives. The FHWA’s stewardship and oversight role was strengthened in SAFETEA-LU legislation passed last year. The legislation requires the FHWA conduct an annual review of the State department of transportation financial management systems and project delivery systems, develop minimum standards for estimating project costs and periodically evaluate State practices in these areas. It also places requirements for a Project Management Plan and Financial Plan on all Major projects of $500 million or more, and requires each State to provide a value engineering analysis on each Federal aid project with a total cost of $25 million or more, a bridge project of $20 million or more, and other designated projects. In January of this year, the FHWA issued Interim Major Project Guidance to expand the FHWA oversight role and optimize its positive influence in the management of major projects.

The responsibility for FHWA stewardship/oversight includes monitoring and tracking the cost and schedule elements of a project, as defined in the environmental process, from the design phase to construction completion. Initial Finance Plans are required for all Major Projects prior to beginning construction. Through June 2006, FHWA has approved financial plans or their annual updates for 14 major projects. Of the 14 Major projects that have reached the Financial Plan stage, 10 of 12, or 83%, are currently on or within allowable budget variances (current cost estimates have not yet been received for 2 new projects). In addition, 12 of 14 projects, or 86%, are within the forecasted schedule completion variance.

Free up idle funds for other infrastructure expansion and preservation projects.

FHWA revised 23 CFR 630, Subpart A, Project Authorization and Agreements to address concerns with inactive obligations. This regulation change assists States and FHWA in monitoring Federal-aid highway projects and provides greater assurance that the Federal funds obligated reflect the current estimated cost of the project. FHWA will revise the Federal obligation amount if the State fails to take action as required by the regulation.

Develop a process to effectively detect improper payments and stop wasteful spending by grantees.

FHWA implemented the improper payments testing and assessment methodology into the normal grant testing procedures. We continue work to derive a nationwide improper payment rate by the end of 2006.

Clean up bad data and generate reliable financial statements.

In response to the FY 2004 audit findings, the FHWA introduced the Financial Integrity Review and Evaluation (FIRE) Program in April 2005. This program consolidated current financial oversight responsibilities of the Federal-aid division offices into a single directive, and incorporated current requirements to perform a financial management process review, review inactive projects, follow up on audit findings, assure compliance with the Single Audit Act, and assess the accounting and internal controls relating to administrative funds.

In May, the Financial Integrity Review and Evaluation (FIRE) Program initiated last year was revised to include a review of Federal-aid billing transactions that will comply with the Improper Payments Information Act. Based on the results of the FIRE requirements, the Division Administrators will certify the results of these activities as part of the annual, year end Section 2, internal control, and Section 4, integrity of financial systems, certification required by the Federal Managers’ Financial Integrity Act.

In compliance with the Single Audit Act, States are required to conduct annual audits of sample grant amounts in excess of $300,000 dollars to ensure that appropriate controls are in place to identify any payment that should not have been made or that was made for an incorrect amount under statutory, contractual, administrative, or other legally applicable requirements, or to an ineligible recipient. The Single Audit Act requirements, and supporting OMB regulations that States comply with, are insufficient to address and identify improper payments. As a result, the DOT and OMB agreed to better define the criteria that State auditors use to evaluate improper payments and engage State DOT auditors to test the criteria. FHWA participated in a research single auditing pilot with several state agencies in FY 2006.

In FY 2007 FHWA will undertake a consolidation of FMFIA programs within the agency so that Federal-aid and Federal Land Divisions and all other FHWA organizations will fall under a single FHWA-wide FIRE program that will address the areas of value engineering and fiscal constraint.

FHWA continued the improved financial statement preparation processes and procedures that were implemented late last year. Financial and budget execution business processes were further enhanced to minimize data entry errors and streamline financial operations. Data from legacy financial systems were reconciled.

Make certain Statewide Transportation Improvement Programs (STIP) do not make misleading promises of what can realistically be accomplished.

In the past five years, fiscal constraint issues have arisen in at least 10 states and several metropolitan areas. Some have raised concerns about whether FHWA and FTA have been applying fiscal constraint adequately and consistently across the country. In response to these recent issues and the need for consistency, FHWA and FTA issued interim guidance, references, and worksheets that are intended to be a tool to assist FHWA and FTA field offices in fulfilling current law requirements for fiscal constraint. This guidance was developed in close consultation with over 20 FHWA/FTA field staff to ensure it was informed by the knowledge and experience of those who are most familiar with day-to-day planning and programming of states and MPOs.

Redouble efforts to develop a multidisciplinary workforce.

The FHWA continued a program to transition FHWA employees from the traditional role of reviewing and approving highway engineering project level actions to a new role of ensuring the effectiveness of state department of transportation processes in areas that are major project drivers. The majority of the positions filled in the FHWA Professional Development Program were by individuals from disciplines other than civil engineering, which is the traditional background. A series of multidisciplinary workshops were held for headquarters and field supervisors and managers. The Agency implemented training that focused on the development of project oversight and financial management, delivered over 30 sessions of a workshop that focuses on process review procedures, and delivered web conference seminars in the financial management area.

2. Enhancing Fraud Prevention Capabilities and Taking Aggressive Action Against Those Who Perpetrate Fraud, Including Motor Fuel Tax Evasion.

With the passage of recent legislation, including SAFETEA-LU, FHWA recognizes the need to develop and implement a consistent approach to stewardship and oversight throughout FHWA in support of its evolving oversight mission. In May, FHWA issued the Stewardship/Oversight Agreement Guidance to define the minimum requirements and to provide a consistent approach to developing future stewardship agreements between FHWA and the State. A policy memorandum released in June requires each FHWA office use a risk/benefit analysis to identify appropriate oversight initiatives and allocate personnel resources effectively based on risks and benefits. FHWA is implementing a two-stage structured risk management initiative. An Interim User Guide to the Risk Management Framework was issued to guide offices in conducting the required risk/benefit analyses.

In its relationships with State and local highway agencies, FHWA continues to stress the use of fraud indicators and reporting procedures and is working with the transportation and highway industry to include the OIG as a resource for reporting allegations of fraud, waste, and abuse on Federal-aid infrastructure construction projects.

The FHWA and the Internal Revenue Service (IRS) continue to work together to address the issue of evasion of motor fuel and other highway use taxes. An enforcement strategy, signed in January by the FHWA Administrator and the IRS Commissioner, focuses on enhancing enforcement efforts through developing and modernizing systems to improve service and enforcement; sharing best practices, lessons learned, and expertise with agencies involved with motor fuel and highway use tax enforcement; conducting outreach and education for stakeholders; and continuing research into finding solutions to the problem of evasion. Additionally, a Memorandum of Understanding identifying program-related responsibilities, accountability requirements, and funding levels, was signed in January 2006.

Budget and Performance Integration

Anticipated FY 2007 Accomplishments

The FHWA will continue efforts to integrate budget and performance by linking strategic goals and objectives.

The FHWA undertakes annual performance-based planning to continually align its goals and objectives with those in the DOT Strategic Plan. FHWA includes representatives from the Federal Transit Administration and the National Highway Traffic Safety Administration in these planning discussions. Responsibility for achieving some of the DOT performance goals, such as reducing the highway fatality rate, is shared by the FHWA with other DOT modal administrations. In addition, FHWA is collaborating with other Federal agencies to achieve shared goals and objectives such as improving park roads and bridge condition, freight movement at border crossings, international trade and commerce, environmental streamlining, and transportation security.

The FHWA will refine the methodology recently developed for attributing costs to DOT strategic objectives, and to more than one performance goal. These activities will provide the basis for a Managerial Cost Accounting (MCA) model. In FY 2007, the FHWA will continue implementation of the Labor Distribution Reporting (LDR) module in the DOT Consolidated Automated System for Time and Labor Entry (CASTLE).

FY 2008 Performance Budget Request

The FHWA will continue to align program strategies and activities to support the DOT Strategic Objectives, as outlined in the revised DOT Strategic Plan for FY 2006-2011, and continue to develop an annual Strategic Implementation Plan and Accountability Contract to link organizational and managerial performance. To advance the implementation of managerial cost accounting and activity-based budgeting, the current MCA model will fully map budget accounts and program activities to strategic objectives and performance goals. FHWA will continue to improve the MCA and unit performance reports.

Limitation on Administrative Expenses

FTE and administrative resources associated with this strategic initiative are as follows:
41 FTE and $5.3 million

The Organizational Excellence strategic initiative is supported by information technology through mission support and management data systems utilized by staff in delivering the program:

FMIS and DELPHI: These accounting systems are FHWA's major financial information systems for tracking obligations and expenditures of Federal-aid and Research and Technology funding on a project-by-project basis. FMIS is used by staff to closely monitor fund activity by the States on a project-by-project basis, while DELPHI allows staff to monitor funds spent on various highway safety improvement projects and activities.

MCA: The Managerial Cost Accounting System is used by staff to review allocation of resources, link performance and cost, and better plan for budgeting financial and human resources by projects and tasks.

SUPPS: The Shared Unit Performance Planning System (SUPPS) is a web-based planning database that is used by FHWA staff to develop unit plans, link unit plans to individual performance plans, and share performance-based information with individuals in other offices agency wide.

FHWA uses HEPGIS Software and GIS expertise to support the Safety, Mobility, Global Connectivity, Environment, Organizational Excellence and Security strategic initiatives though the analysis and display of information. The primary function of HEPGIS is the display of data that is the official record of the National Highway System (NHS), NHS connectors, Strategic Highway System (STRAHNET), STRAHNET connectors and the Interstate. The output of GIS is used to analysis the transportation system, share information with other agencies and define which roads are eligible for Funds. GIS is also used to make this information available over the Internet.

TRANSCAD software is used by FHWA/HEP to support the Congestion and Organizational Excellence strategic initiatives by providing information, data and analysis to FHWA planners on proposed projects and to allow for input into FHWA databases and IT systems, such as HEPGIS.

TELUS - Supports Safety, Congestion, Environment, and Organizational Excellence strategic initiatives by providing metropolitan planning organizations and State departments of transportation fully integrated information management and decision support system to develop their transportation improvement programs and carry out other transportation planning responsibilities, particularly, public participation in the transportation planning process. TELUS provides an information management system that is easy to use, can store and manipulate large amounts of data, and can present these data to decision makers and the public in a coherent and timely manner.

FLH Database and Application Support is used to support mobility, organizational excellence, environmental stewardship, and safety by covering contractor personnel who perform database administration and support the Office of Federal Lands Highway as well as allow functional and program managers access to the budget, resources, and technical data necessary to make business decisions.

Responsible Officials:

Mr. Tom Park, Office of the Chief Financial Officer
Ms. Mary Phillips, Associate Administrator for Policy and Governmental Affairs
Ms. Patricia Prosperi, Associate Administrator for Administration

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