Surface Transportation
Clear Federal Role and Criteria-Based Selection Process Could Improve Three National and Regional Infrastructure Programs
GAO-09-219, Feb 6, 2009
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To help meet increasing transportation demands, the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) created three programs to invest federal funds in national and regional transportation infrastructure. As requested, this report provides (1) an overview of the goals, funding status, and types of projects and activities funded by the three programs; (2) advantages and challenges identified by program stakeholders; and (3) potential program enhancements. GAO reviewed pertinent federal laws and rules; examined plans for selected projects; conducted site visits; and interviewed officials, stakeholders, and experts.
The goals of the projects funded by the three national and regional infrastructure programs--Projects of Regional and National Significance (PNRS), the National Corridor Infrastructure Improvement Program (NCIIP), and the Coordinated Border Infrastructure (CBI) program--are varied, most projects have been reviewed and funded, most projects are for highway improvements, and funds have been applied toward various related activities. PNRS and NCIIP funds were distributed by congressional directive, and CBI funds were distributed by formula. The states GAO visited or whose officials GAO interviewed had established a variety of project goals, including increasing capacity and enhancing mobility. As of December 2008, the Federal Highway Administration had reviewed most projects submitted by states and had obligated $1.2 billion, or about 33 percent of the $3.6 billion authorized for the three programs through September 30, 2008. However, some states had not initiated efforts to obtain available funding. The officials GAO interviewed cited various reasons for not pursuing the funds, such as trying to complete an environmental impact statement and trying to identify a project that met the program's funding criteria. The programs' contributions to projects' estimated total costs varied, from less than 30 percent of the estimated total costs for the majority of reviewed PNRS projects and about half of the reviewed NCIIP projects to 80 percent or more of the estimated total costs for almost half of the reviewed CBI projects. Furthermore, for high-cost projects--those expected to cost over $500 million--the programs' funding contributions ranged from about 4 to 13 percent of the estimated total project cost. States have used the program funds mainly for highway projects and for various related activities, such as conducting environmental studies and expanding ongoing projects. In discussing the three programs, stakeholders cited advantages less often than challenges. The most frequently cited advantage was the funding the programs provided to support and move projects forward. The most commonly cited challenge also involved funding and included funding uncertainty. This was a challenge because project sponsors did not know whether they would receive additional federal funds to complete their projects--especially high-cost projects. According to GAO's interviews and prior work, clearly defining the federal role in surface transportation is an important step in enhancing these programs. Two historical approaches could then be used to distribute federal funds--a criteria-based competition or a formula-based distribution. GAO's interviews and prior work suggest that a criteria-based competition could enhance these programs. Some interviewees also called for a wide range of other enhancements, from broad proposals to increase investment in different transportation modes to specific suggestions, such as using cost-benefit analysis in selecting projects. The Department of Transportation generally agreed with the report's information and conclusions and offered to work with Congress on GAO's three proposed matters.
Status Legend:
Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.
- In Process
- Open
- Closed - implemented
- Closed - not implemented
Recommendations for Congressional Consideration
Recommendation: When considering the reauthorization of federal surface transportation programs, Congress may wish to consider defining the federal role in surface transportation in accordance with the national and regional transportation priorities that these three programs are designed to meet.
Agency Affected: Congress
Status: Open
Comments: As of August 2010, Congress has not reauthorized the federal surface transportation programs. In June 2009, the House Transportation and Infrastructure developed its reauthorization proposal--the Surface Transportation Reauthorization Act of 2009: A Blueprint for Investment and Reform--which addresses this Matter for Congress. Specifically, the proposal contains language to clarify the federal role in surface transportation to focus on addressing national, regional, and state priorities and objectives. These include creating a National Transportation Strategic Plan, improving safety of the overall surface transportation network, bringing highway and transit infrastructure to a state of good repair, improving metropolitan and rural mobility and access, lessening environmental impacts from transportation, among others. We will continue to monitor Congressional actions in this area and update the status of this Matter for Congress as conditions warrant.
Recommendation: When considering the reauthorization of federal surface transportation programs, Congress may wish to consider implementing a criteria-based, competitive project selection process for these three programs, in concert with other selection criteria.
Agency Affected: Congress
Status: Open
Comments: As of August 2010, Congress has not reauthorized the federal surface transportation programs. However, the House Transportation and Infrastructure Committee's June 2009 reauthorization proposal--the Surface Transportation Reauthorization Act of 2009: A Blueprint for Investment and Reform--completely addresses this Matter for Congress. Specifically, the proposal cites our report (GAO-09-219) and calls for implementing the matter by consolidating all three infrastructure programs addressed in our report into a new discretionary Projects of National Significance (PNS) Program and funding projects under the new program through an open, competitive, and merit-based selection process. Under this process, the Transportation Secretary would be required to (1) conduct a national solicitation for project applications, (2) provide discretionary grants to projects selected on the basis of merit, and (3) evaluate proposed projects based on their likely national economic, mobility, and safety benefits; their use of new technologies; and the degree to which they supplement federal grants with other funding sources and finance methods. This program would work with the proposed National Infrastructure Bank to provide the financial means to states to finance these projects.
Recommendation: When considering the reauthorization of federal surface transportation programs, Congress may wish to consider working with the Secretary of Transportation to develop any specific program enhancements that could help these programs meet identified priorities and achieve the highest return on federal investments.
Agency Affected: Congress
Status: Open
Comments: As of August 2010, Congress has not reauthorized the federal surface transportation programs. However, the House Transportation and Infrastructure committee's June 2009 reauthorization proposal--the Surface Transportation Reauthorization Act of 2009: A Blueprint for Investment and Reform--completely addresses this Matter for Congress. Specifically, the proposal increases the accountability of the new consolidated Projects of National Significance (PNS) Program through plans, performance targets, and post-project evaluation and reporting. These requirements include (1) submission of financial plans, projects management plans, and schedules; (2) development of quantifiable performance outcomes that the projects must achieve within two years after project completion; (3) before and after studies that compare predicted to actual project outcomes, and (4) annual DOT reports to Congress and an independent review by the TRB of the new PNS Program. In addition, the committee's proposal includes several enhancements for all federal surface transportation programs that would also apply to the new PNS Program (e.g., consolidating and simplifying programs, requiring performance standards and accountability measures, and expediting the transportation project delivery process).