(Source: New York Times & Planetizen)

It was hailed as the solution to America’s infrastructure spending deficit, but the influx of private funds has come to halt along with the failure of banks and the huge investment from the Recovery Act. Plus, many schemes aroused taxpayers wrath.

Late last month plans to privatize “Alligator Alley,” a 78-mile stretch of Florida highway that connects Fort Lauderdale with Naples, collapsed when no bidders showed up. The failure has had a ripple effect — in Mississippi, state officials have pushed back the bidding schedule for a new 12-mile toll road.

Then there is the $1.2 billion privatization of 36,000 parking meters in Chicago. In the five months since the deal took effect, widespread complaints about poor service and rising parking rates have created a political firestorm for the Chicago City Council. Public opposition was so strong that on Wednesday the council approved a delay in voting on any future asset sales.

Chicago public officials have called the work of the private operator, Chicago Parking Meters L.L.C., “simply unacceptable.” For its part, the operator has apologized and announced it would delay price increases at the meters.

Proponents of public-to-private asset sales point to the $1.8 billion lease of the 7.8-mile Chicago Skyway in 2004 and the $3.8 billion raised by Indiana through a 75-year lease of its toll road in 2006 as successful pioneering efforts.

In Indiana, the money went to pay for a 10-year highway infrastructure program, and Gov. Mitch Daniels was re-elected last year promoting the lease, despite bumper stickers that read “Keep the Toll Road, Lease Mitch.”

The stimulus money, as well as other infrastructure money promised by Congress, has provided temporary relief for cash-poor municipalities. But this situation will not last forever.

(Source:  Stateline.org via Planetizen)

States are hoping to use federal stimulus money to add technological advancements to their streets and highways to create “smart” roads.

Not all the highway improvement projects states plan to pay for with federal stimulus money involve widening roads, fixing bridges or repaving highways. Nearly half the states plan to use some of their new funds to pay for high-tech gadgets that will reduce congestion, help the environment and create jobs quickly.

At least 22 states have told the federal government they want to make their roads “smarter” by installing traffic cameras, creating express toll lanes, improving traffic signals and alerting drivers about accidents or delays ahead, according to the National Conference of State Legislatures.Such projects are “quick, they can move forward very fast, they create jobs and they’re effective in the short and long term,” said Jaime Rall, an NCSL analyst.States are under the gun to tell the federal government how they plan to use $26.7 billion in federal stimulus money for transportation. They have until June 29 to commit half of that money to specific projects, so states are focusing on projects that can get started quickly.Three-quarters of the money committed by states so far will pave or re-pave roads. Some of the money can go to passenger and freight rail efforts, too.

The Obama administration announced earlier this week that another $1.5 billion in transportation stimulus money can be used for innovative road projects.But included in the mix already are dozens of efforts to use technology to make roads function better. The “smart road” improvements include signals for on-ramps in Colorado, new E-Z Pass toll booths to allow drivers to pay without stopping in Delaware and traffic lights connected to fiber optic cable to reduce bottlenecks in Utah.

Technology improvements, in particular, have a bigger bang for the buck for the economy, the federal government points out, because more of the money goes straight to workers’ salaries. Only 20 percent of material-intense projects such as laying roads or fixing bridges typically goes to payroll, according to a January analysis by the U.S. Department of Transportation. For technology upgrades, about 50 percent goes to paychecks.

(Source: TheTrucker.com & AP)

Secretary of Transportation Ray LaHood took exception to an Associated Press articlethat reported that counties suffering the most from job losses stand to receive the least help from President Barack Obama’s plan to spend billions of stimulus dollars on roads and bridges, an Associated Press analysis has found.  Although the intent of the money is to put people back to work, AP’s review of more than 5,500 planned transportation projects nationwide reveals that states are planning to spend the stimulus in communities where jobless rates are already lower.

Image Courtesy: AP - U.S. map shows amount of stimulus funds announced for transportation, by county

Altogether, the government is set to spend 50 percent more per person in areas with the lowest unemployment than it will in communities with the highest.

“At the DOT, we have $48 billion to rebuild roads, bridges, highways, airport runways, ports and transit projects,” LaHood wrote. “And we have already signed off on transportation projects in all 50 states. Just 12 weeks after President Obama signed the American Recovery and Reinvestment Act into law, we have approved 2,800 road projects and another 300 airport projects.”

LaHood said that amounted to over $10 billion “out the door and countless Americans going back to work.”

By this summer, LaHood wrote, Americans won’t be able to drive down the street without seeing people working at good-paying jobs.

He attributed those jobs to the Recovery Act money.

“Unfortunately, the AP’s analysis is misguided,” LaHood said. “Its reporters looked at 5,500 transportation projects from state lists and concluded that the transportation money is going to counties with low unemployment. But until the states make a request and the experts at the DOT certify that a project meets the criteria for Recovery dollars, those lists are not the final word.

 “Basically, their (the Associated Press’) work amounts to nothing more than an academic exercise.”

For people who are out of work and at risk of losing their jobs, this construction work is a godsend, LaHood said he believed.

“Sadly, unemployed workers can be found all over our nation in these difficult economic times — even in counties that don’t have the highest unemployment rates,” the secretary wrote

“Governmental boundaries are often arbitrary, and workers know that,” LaHood noted. “People who work construction jobs often drive to wherever they can find work in a metropolitan area or region. Our idea is to drive down unemployment, period.”

LaHood said he told Brett Blackledge, the Associated Press writer who authored the story, about a recent trip he took to New Hampshire for a groundbreaking on highway 101.

“I shook hands with men and women who are going back to work thanks to the Recovery Act,” LaHood said. ”One man told me that he drives all over New England for construction jobs. Another said he is the father of four children and was unemployed until this project began. Now that he has this job, he will be commuting from Wolfeboro.

“Unfortunately, Brett didn’t think it was worth quoting me when I told him that the point of the program is to put people to work. And that’s something I’m proud of.”

(Source: GreenBiz via Reuters)

The Obama administration established a Biofuels Interagency Working Group this week in a move that carries implications for the industry on several fronts, including regulatory and research and development. 
 
The Biofuels Interagency Working Group, comprised of the U.S. Environmental Protection Agency, Department of Energy (DOE)  and Department of Agriculture, will develop a biofuel market development program, coordinate biofuel infrastructure policies, study biofuel lifecycle and help existing biofuel producers secure credit and refinancing.

Meanwhile, the DOE will spend $786.5 million in stimulus funds on demonstration projects and research to accelerate the adoption of next-generation biofuels. 

For example, the agency will dole out $480 million on 10 to 20 pilot-scale and demonstration-scale projects, with a ceiling of $25 million and $50 million, respectively. Another $176.5 million shall be used to increase funding for two or more commercial-scale biorefinery projects that previously received government assistance.

The DOE biomass program also will dedicate $130 million toward research into ethanol, algal biofuels and biofuel sustainability research.

The proposal breaks down renewable fuels into four categories: cellulosic biofuels, biomass-derived diesel, advanced biofuels, and total renewable fuel. The fuels must produce fewer greenhouse gas emissions than conventional fuels, but there is great debate within the biofuel industry about how these lifecycle assessments should be calculated.

$480 million solicitation for integrated pilot- and demonstration-scale biorefineries

Projects selected under this Funding Opportunity Announcement will work to validate integrated biorefinery technologies that produce advanced biofuels, bioproducts, and heat and power in an integrated system, thus enabling private financing of commercial-scale replications.

DOE anticipates making 10 to 20 awards for refineries at various scales and designs, all to be operational in the next three years.  The DOE funding ceiling is $25 million for pilot-scale projects and $50 million for demonstration scale projects.

These integrated biorefineries will reduce dependence on petroleum-based transportation fuels and chemicals. They will also facilitate the development of an “advanced biofuels” industry to meet the federal Renewable Fuel Standards.

(Source: American Public Transportation Association via More Riders)

Many transportation industry minds are wondering what is the tangible benefits from all this investment in transit? After spending nearly one billion dollars through their public transportation agencies, what do the taxpayers stand to reap?

 According to a new report by the American Public Transportation Association, 30,000 jobs (besides better public transportation).   That comes out to one new job for every $33,333 in spending. Not bad at all, as economic development projects go.   

The study report released on April 29th shows that investing in public transportation provides jobs to the American workers who may need them the most.  Job Impacts of Spending on Public Transportation: an Update shows that two-thirds (67 percent) of the jobs created by capital investment in the public transit industry replaces lost blue-collar jobs with “green jobs” in the public transit sector.  The Economic Development Research Group prepared the study for the American Public Transportation Association (APTA). 

Overall, the study shows an investment of one billion dollars in public transportation supports and creates 30,000 jobs in a variety of sectors.  Based on these projections, the American Recovery and Reinvestment Act of 2009 (ARRA), which provides $8.4 billion for public transportation projects, will create approximately 252,000 jobs for Americans and help transit systems meet the steadily growing demand for public transit services.  APTA released the study at the U.S. House of Representatives Transportation and Infrastructure Committee hearing Recovery Act: 10-Week Progress Report for Transportation and Infrastructure Programs.

“The ultimate goal in any economic recovery plan should be to not create just any type of job, but rather to invest in and focus on areas particularly hit hard by the economic downturn,” said William W. Millar, APTA president.  “The investment in public transit not only produces green jobs but also provides for a more sustainable transportation system that will help reduce our dependence on foreign oil and lessen the transportation sector’s impact on the environment.”

The study reveals that two out of three (67 percent) of these new construction and manufacturing “green jobs” resulting from public transit capital investment typically fall in the category of Blue-Collar Semi-Skilled (59 percent) and Blue-Collar Skilled (8 percent).  These jobs include positions in manufacturing, service, repair worker, drivers, crew, ticket agents and construction. 

In addition, 33 percent of the new jobs as a result of public transit investment fall in the White-Collar Skilled (32 percent) or White Collar Semi-Skilled (1 percent) category.  These jobs include clerical, managerial and technical engineers.

Some of the key findings from this study are here:

• The rate for federal funding of public transportation reflects a specific mix of capital investment and preventive maintenance funding as allowable by law.  Under current federal law, an estimated 30,000 jobs are supported per billion dollars of spending.

• The national rate can vary from of 24,000 to 41,000 jobs per billion dollars of spending, depending on the spending mix.  The lower figure holds for spending on capital investments (vehicles and facilities), while the higher figure holds for spending on transit system operations. In reality, it is not logical to spend money on vehicles and not use them, nor is it logical to operate vehicles forever without any purchases of new equipment.  For these reasons, the average rate is a more meaningful number.

• Looking across the entire $47 billion spent on public transportation in the US each year, there is an average rate of approximately 36,000 jobs per billion dollars of public transportation spending (i.e., 36 jobs per million dollars of spending).  This figure is based on the national mix of public transportation spending as of 2007.  It includes a direct effect of spending in transportation related manufacturing, construction and operations as well as orders to suppliers or by re-spending of worker income on consumer purchases.

The rate of jobs supported per billion dollars of spending will continue to change every year, as prices change and technologies evolve. 

Click here to read the entire report in HTML & to download a copy of the report in PDF format.  For those who like to stay without leaving this window, here is a read-only copy of the PDF report.

Source: Tree Hugger)

 Is Enthusiasm for High Speed Rail Just Another Speed Addiction?

The world is a confusing place – no sooner do the governments of the world finally start taking high speed rail seriously as an alternative to aviation, and the environmentalists start complaining. First we had Obama’s massive investment in high speed rail, which Jim Kunstler (who else?) described as “perfectly f***ing stupid.”And now UK politicians are limbering up to support a significant upgrade of the country’s rail system – but John Whitelegg over at The Guardian says High Speed Rail is an expensive and counterproductive red herring:

The federal government has already committed nearly $11 billion in stimulus money to help get road, bridge and environmental projects off the ground, administration officials told Congress on Wednesday.

“I believe we have already achieved enormous success,” Transportation Secretary Ray LaHood told the House Transportation Committee, giving a progress report on infrastructure money allotted under the $787 billion economic stimulus bill passed in February.

Lahood, a former Republican congressman from Illinois, told the panel his department had made decisions on $9 billion dollars in projects around the country out of Transportation’s $48 billion share of the stimulus package.  However, he was less specific about the jobs directly resulting from stimulus spending.

It was originally estimated that the $64 billion in the stimulus for infrastructure — for transit, high speed rail, aviation, federal buildings and Army Corps of Engineers projects as well as roads and bridges — would create or sustain 1.8 million jobs.

But so far, reports on new jobs were mostly anecdotal. The Transportation Committee said its survey of state and local transportation officials revealed that work had begun on 263 highway and transit projects in 30 states, putting about 1,250 workers back on the job.

D.J. Stadtler, Jr., chief financial officer for Amtrak, said it expected to produce about 4,600 jobs in the first year of the stimulus with investment of $1.3 billion.

Unemployment in the construction industry soared to nearly 2 million in March, about 21.1 percent compared with 13 percent a year ago.

Rep. John Mica of Florida, top Republican on the committee, questioned the job-creation effectiveness of the program, saying some projects might take three to four years to get off the ground. But he said he would withhold judgment, saying, “We have to give folks a pass at this juncture.”

The Government Accountability Office, in a report prepared for the hearing, also raised questions about the ability of states and Washington to track how the money is being spent. But it gave some states high marks for moving the money quickly.

(Source: New York Times)

(Source: The Transport Politic)

Proposal reveals a little – and a lot – about how the administration wants to proceed with its rail programs

Click here to read the entire article.

 (Source: USDOT, Infrastructurist; YouTube)

President Barack Obama, along with Vice President Biden and Secretary LaHood, announced a new U.S. push today to transform travel in America, creating high-speed rail lines from city to city, reducing dependence on cars and planes and spurring economic development.

The President released a strategic plan outlining his vision for high speed rail in America. The plan identifies $8 billion provided in the ARRA and $1 billion a year for five years requested in the federal budget as a down payment to jump-start a potential world-class passenger rail system and sets the direction of transportation policy for the future. The strategic plan will be followed by detailed guidance for state and local applicants. By late summer, the Federal Railroad Administration will begin awarding the first round of grants.

The Infrastructurist summaries this nicely: ” In fact, he (President Obama) doesn’t pull any punches in saying that rail is a *better* way to travel than car or plane. It’s “faster, easier, and cheaper than building more freeways.” And he conjures the appeal of travel from city center to city center without having to dash out to far-flung airports — “no sitting on the tarmac, no lost luggage, no taking off your shoes.” And: “High-speed rail is long-overdue, and this plan lets American travelers know that they are not doomed to a future of long lines at the airports or jammed cars on the highways.”

The report formalizes the identification of ten high-speed rail corridors as potential recipients of federal funding. Those lines are: California, Pacific Northwest, South Central, Gulf Coast, Chicago Hub Network, Florida, Southeast, Keystone, Empire and Northern New England. Also, opportunities exist for the Northeast Corridor from Washington to Boston to compete for funds to improve the nation’s only existing high-speed rail service.

President Obama’s vision for high-speed rail mirrors that of President Eisenhower, the father of the Interstate highway system, which revolutionized the way Americans traveled. Now, high-speed rail has the potential to reduce U.S. dependence on foreign oil, lower harmful carbon emissions, foster new economic development and give travelers more choices when it comes to moving around the country.

“My high-speed rail proposal will lead to innovations that change the way we travel in America. We must start developing clean, energy-efficient transportation that will define our regions for centuries to come,” said President Obama. “A major new high-speed rail line will generate many thousands of construction jobs over several years, as well as permanent jobs for rail employees and increased economic activity in the destinations these trains serve. High-speed rail is long-overdue, and this plan lets American travelers know that they are not doomed to a future of long lines at the airports or jammed cars on the highways.”

“Today, we see clearly how Recovery Act funds and the Department of Transportation are building the platform for a brighter economic future – they’re creating jobs and making life better for communities everywhere,” said Vice President Biden. “Everyone knows railways are the best way to connect communities to each other, and as a daily rail commuter for over 35 years, this announcement is near and dear to my heart. Investing in a high-speed rail system will lower our dependence on foreign oil and the bill for a tank of gas; loosen the congestion suffocating our highways and skyways; and significantly reduce the damage we do to our planet.”

Ten major corridors are being identified for potential high-speed rail projects: