Questions arise about highway-safety nominee’s views on CAFE

April 15, 2009 at 10:34 am

(Source:  Greenwire – New York Times; AutoBlogGreen)

President Obama tapped a longtime crusader against drunken driving to lead the Transportation Department’s highway safety agency, but some environmentalists are concerned about the nominee’s positions on fuel economy standards.  The nomination of a new NHTSA administrator might seem like an event that would elicit little controversy, but when President Obama picked Chuck Hurley to head the National Highway Traffic Safety Administration, the rumbles began. In the White House announcement, Hurley’s work with Mothers Against Drunk Driving (he was CEO since 2005) and automobile safetly was highlighted. Sounds good, right? 
If confirmed, Charles Hurley would become the top official at the National Highway Traffic Safety Administration, the agency that must draft and enforce a wide range of safety measures and craft corporate average fuel economy, or CAFE, standards.

 

Chuck Hurley - Image Courtesy: Dickinson College

Hurley has served as CEO of Mothers Against Drunk Driving since 2005 and has spent more than three decades working on a host of driving safety initiatives. He previously held senior leadership posts at both the National Safety Council and the Insurance Institute for Highway Safety, a nonprofit research group funded by auto insurers.

The insurance institute has been critical of past CAFE proposals and has backed an auto industry argument that a disproportionate focus on increasing fuel mileage would lead to smaller and less safe cars (See a related article on TransportGooru that discussed the latest IIHS crash test results correlating vehicle safety during crashes to the size and fuel effieicency factors of small cars). The group helped lead a successful industry push for CAFE standards that use an attribute-based system that requires cars and trucks to achieve different standards depending on each vehicle’s footprint.

Hurley’s work with the institute during the 1990s was enough to worry Dan Becker, director of the Safe Climate Campaign, which has advocated for fuel economy increases. “It would be awkward to have an administrator of NHTSA who’s spent much of his career attacking fuel economy standards that NHTSA administers,” he told the Wall Street Journal.

With exception of the fuel economy concern, Hurley’s nomination drew near-universal praise from highway safety advocates.  In addition to his extensive work on drunk-driving issues, Hurley has also worked with law enforcement agencies on air bag and seat belt issues, child passenger safety and teen driving initiatives.  “Chuck is a passionate safety advocate whose career has been dedicated to reducing motor vehicle deaths and injuries on the highways,” said Vernon Betkey Jr., chairman of the Governors Highway Safety Association.

President Obama taps John Porcari, Secretary of the Maryland Department of Transportation, to serve as the next Deputy Secretary of the U.S. Department of Transportation.

April 13, 2009 at 1:19 pm

(Source: Washington Post & AASHTO)

Maryland Secretary of Transportation John D. Porcari has been tapped to join the Obama administration. (Photo by Post)

John Porcari, Secretary of the Maryland Department of Transportation, is President Barack Obama’s choice to become the next Deputy Secretary of the U.S. Department of Transportation.

Maryland’s secretary of transportation John D. Porcari will serve as Ray LaHood‘s deputy if confirmed by the Senate. He first served as Maryland’s transportation chief from 1999 to 2002, leading the development and construction of two high-profile transportation projects in the greater Washington region. He led the planning and start of the Intercounty Connectorbetween Montgomery and Prince Georges County, Md., and the development and funding to reconstruct the Woodrow Wilson Bridge, a critical piece of Washington’s infamous Beltway that connects Maryland with Virginia. In between two tours of duty at Maryland DOT, he served as the chief administrative and financial officer at the University of Maryland.

AASHTO Presser offer the following on Mr. Porcari’s nomination: “John Porcari brings tremendous talent and experience to this extremely important and influential Administration position,” said AASHTO Executive Director John Horsley. “Under Secretary Porcari’s leadership, the Maryland DOT has led the way in community sensitive design and smart growth strategies that have improved the quality of life for Marylanders. He was also instrumental in the development of the new Woodrow Wilson Bridge, a $2.4 billion megaproject which was not only delivered on time and on budget; it broke new ground in environmental, contracting, and management innovation. We commend President Obama for this outstanding nomination and look forward to working with Mr. Porcari, once he is confirmed.”

In his current position, Mr. Porcari is responsible for motor vehicle registration and the highway, transit, aviation, and maritime modes of the state’s transportation system. Mr. Porcari also serves as chairman of the entity responsible for operating the state’s bridge and tunnel facilities. He’s in his second tour as Secretary, having previously served in this capacity from 1999 to 2002.

President Obama, Vice President Biden, Transportation Secretary LaHood Announce 2,000th Transportation Project Under Economic Recovery Act

April 13, 2009 at 11:59 am

(Source: USDOT Press Release)

 President Barack Obama today announced funding for the 2,000th transportation project under the American Recovery and Reinvestment Act (ARRA), only six weeks after approving the first project.  The President made the remarks at the U.S. Department of Transportation with Vice President Biden and Transportation Secretary Ray LaHood.

“Just 41 days ago we announced funding for the first transportation project under ARRA and today we’re approving the 2,000thproject,” said President Obama.  “I am proud to utter the two rarest phrases in the English language – projects are being approved ahead of schedule, and they are coming in under budget.”

“The Recovery Act is being implemented with speed, transparency and accountability,” said Vice President Biden.  “Don’t take my word for it – just look at what’s happening today. We have the 2000th transportation project now underway – that’s going to help create jobs, make it easier for folks to get to the jobs they have, and improve our nation’s infrastructure all at the same time. The Recovery Act is full- steam ahead on helping us build an economy for the 21st century.”

“This is the government working for the people, creating jobs today and laying the foundation for a bright economic future,” said Secretary LaHood.

The 2,000th project is in Kalamazoo County, Michigan.  The $68 million project involves widening of I-94 from two lanes both east and westbound to three lanes in each direction.  The project will improve safety and ease congestion by providing a more efficient interchange.  

State departments of transportation around the country have reported to FHWA intense competition by contractors for ARRA projects.  Bids have been roughly 15 to 20 percent lower on average, and as much as 30 percent lower in some cases, than engineers anticipated.  For example, in Colorado, the state’s first five ARRA transportation projects announced on April 2 were 12 percent lower than anticipated.   In Maine, one bridge project was 20 percent lower than estimated.  In Oregon, during February and March 2009, bids have averaged 30 percent lower than expected. 

President Obama secured passage of the ARRA and signed it into law on February 17, less than one month after taking office.  Less than two weeks later, on March 3, the President, Vice President Biden and Secretary LaHood released the first funding to the states and localities for highways, roads and bridge projects.  That release of funds came eight days earlier than required by law.   

ARRA provides a total of $48.1 billion for transportation infrastructure projects to be administered by the U.S. Department of Transportation.  Of that $27.5 billion is for highways and bridges, $8.4 billion is for transit, $8 billion is for high speed rail, $1.3 billion is for Amtrak, $1.5 billion is for discretionary infrastructure grants $1.3 billion is for airports and Federal Aviation Administration facilities and equipment and $100 million for shipyards.   

In early February, prior to the passage of the ARRA, Secretary LaHood established within the U.S. Department of Transportation the TIGER (Transportation Investments Generating Economic Recovery) team to ensure that economic recovery dollars for transportation infrastructure projects is rapidly made available and that project spending is monitored and transparent.  On March 3, the President unveiled a TIGER logo, as well as an ARRA logo, that will be placed on construction signs across the country, to mark projects being built and jobs created with Recovery Act funds. 

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Due to heightened competition among contractors for recovery construction work, Transportation agencies across the nation are receiving project bids substantially lower than engineers’ initial estimates.  These lower than expected bids are allowing states to stretch economic recovery funds to pay for additional projects, which the Department of Transportation predicts will create even more jobs and yield further infrastructure repair nationwide. Below is a sampling of state transportation projects set to break ground across the country at a fraction of initial estimates. 

“At Baltimore-Washington International Marshall Airport, a recent project to reconstruct the area around Piers C and D received six bids instead of the usual two or three. The result: The estimated $50 million project will be built for $8 million less than was budgeted, and the savings will be allocated to other projects. There were 21 bidders for a $200,000 drainage project in Carroll County, more than anyone could remember.” [Washington Post, 4/8/09] 

Click here to read the entire presser.

The “Chosen One” – NY Times profiles Obama’s Car Czar-lite, Mr. Steven Rattner

April 8, 2009 at 12:01 am

(Source:  New York Times; Photo: Jay Mailin/Bloombern News)

Obama’s Top Auto Industry Troubleshooter

After 26 years as one of the most politically connected investment bankers on Wall Street, Steven Rattner finally took a job in Washington — only it is not quite the one friends and business associates thought it would be.
Washington buzzed that Mr. Rattner, a big name in the New York media world who, friends say, aspires to a cabinet post like Treasury secretary, would be named the car czar of the Obama administration. Instead, he is one of 14 people on a committee that is orchestrating the rescue of the giant automakers.

Still, Mr. Rattner, a well-known media banker, is playing a central role as car czar lite, traveling to Detroit to visit plants, meeting with the automakers’ bankers, unions and bondholders, and advising the White House on which companies seem salvageable and how. If he succeeds, he may get a chance at a larger job in the administration.

That is a big if. He has to push the car companies to overhaul decades-old practices, persuade his former colleagues on Wall Street to lower their demands on the automakers’ debt payments and appeal to union leaders who may be turned off by Mr. Rattner’s financial success.

Mr. Rattner said in an interview that he has long been interested in returning to Washington, where he worked as a newspaper reporter 30 years ago, and that he hoped to stay on for some time to work on aspects of the financial crisis.

“In the fall, as the economic crisis intensified, it became clearer and clearer to me that this was a moment of historic importance,” Mr. Rattner said, “and if one was ever to have an interest in serving your country in the area of economic policy, this was the moment.”

Mr. Rattner has been among the most politically connected people in the banking industry. He and his wife, Maureen White, who together have been referred to by New York magazine as the “D.N.C.’s A.T.M.,” have hosted many Democratic fund-raisers at their lavish apartment on Fifth Avenue. They were initially Clinton supporters, but they hosted events for Barack Obama after he sealed the nomination.

Click here to read the entire article.

President Obama’s Nominees for USDOT Administrations: FHWA – Victor Mendez; RITA – Peter Appel

April 3, 2009 at 12:43 pm

(Source: Washington Post)

Victor M. Mendez, director of the Arizona Department of Transportation, is Obama’s pick for administrator of the Federal Highway Administration. Mendez worked under former governor Janet Napolitano before she became Obama’s homeland security secretary. In Arizona, Mendez helped implement the state’s multi-billion dollar freeway system and gained extensive experience in transportation funding, technology, infrastructure, research and planning.

Joining Mendez at the Transportation Department will be Peter H. Appel, Obama’s nominee for administrator of the Research and Innovative Technology Administration. A principal with the global management consulting firm of A.T. Kearney, Inc., Appel has over 20 years of experience in transportation and infrastructure projects. He has helped organizations in the railroad, trucking, airline and ocean shipping industries, and he previously served as a top aide at the Federal Aviation Administration and at Amtrak.

Below are the brief Bios of the nominees as shown in Washington Post.

Victor M. Mendez, Nominee for Administrator, Federal Highway Administration, Department of Transportation

Victor M. Mendez was a member of former Arizona Governor Janet Napolitano’s Cabinet as the Director of the Arizona Department of Transportation. He has extensive experience in transportation including innovations in the areas of funding and financing, technology, infrastructure, research, planning and internal operations. Mendez has served as a past President of the American Association of State Highway and Transportation Officials and in 2008 he was selected as Leader of the Year in Public Policy in Transportation by the Arizona Capitol Times. Previously, Mendez was selected as the Deputy State Engineer to lead the implementation of the Phoenix area’s multi-billion dollar freeway system. Mendez earned a Masters of Business Administration degree from Arizona State University and a Bachelors of Science in Civil Engineering degree from the University of Texas at El Paso. 

Peter H. Appel, Nominee for Administrator, Research and Innovative Technology Administration, Department of Transportation

Peter H. Appel is a Principal with the global management consulting firm of A.T. Kearney, Inc. He has led business improvement initiatives for clients in the private and public sectors, with a focus on Transportation and Infrastructure. Appel has over 20 years of experience in Transportation, and has supported organizations in the railroad, trucking, airline, and ocean shipping industries with growth strategy, supply chain improvement, post-merger integration, public-private partnerships, and other key business and policy issues. Previously, Appel served as the Special Assistant to the Administrator of the Federal Aviation Administration, and as Assistant Director for Pricing and Yield Management at Amtrak. Appel earned his bachelor’s degree from Brandeis University in Economics and Computer Science with Highest Honors, and received his Master of Science in Transportation from the Massachusetts Institute of Technology.

Click here to read more.

Oregon’s mileage-based taxation experiment declared a roaring success; Final Report now available

April 2, 2009 at 12:04 pm

(Source: Streetsblog & WorldChanging)

The Oregon Department of Transportation (ODOT) has compiled a 100-page report on the experiment that covers a lot of ground, but basically describes the trial as a roaring success. A few interesting features of this report :

  • Overhead is low. Because the mileage tax piggybacks on the existing gas tax collection system, it’s easy and cheap for the state to administer.
  • Payment is simple. From the driver’s perspective, the mileage tax differs little from the gas tax, other than the fact that their gas station receipts contain interesting information on miles driven.
  • Privacy is protected. The state only gets odometer information, not information about vehicle location.
  • Evasion is difficult. Even if you tamper with the GPS receiver, you’re still going to pay the gas tax.
  • Phased implementation is possible. Oregon doesn’t foresee a complete changeover to mileage taxes happening until 2040. This is a bit too slow for my taste (I really hope gas stations don’t exist in 2040), but the point is that gas taxes and mileage taxes can happily coexist as the vehicle fleet turns over.

Technically, the system worked. Just as importantly, public acceptance was high. 91% of [self-selected] test participants preferred the system to paying gas taxes.… Before the experiment began, media portrayals of the system were almost uniformly negative — and inaccurate. By the middle of 2006, media coverage ranged from neutral to positive, and were far more accurate. Citizen comment reflected this broader trend. ODOT concludes, “Effective communication can lead to public acceptance.”

Click here to read blogger Adam Stein’s take on this subject at WorldChanging.com.  For those interested here is the final report in PDF form. 

 

Understanding Obama’s Auto Warranty Plan

March 30, 2009 at 7:45 pm

 (Source: New York Times – Wheels)The Big (Troubled) Three


On Monday morning, President Obama announced that the Treasury Department would back the warranties of new General Motors and Chrysler vehicles.

“If you buy a car from Chrysler or General Motors, you will be able to get your car serviced and repaired, just like always,” President Obama said during a speech from the White House. “Your warranty will be safe. In fact, it will be safer than it’s ever been, because starting today, the United States government will stand behind your warranty.”

The administration’s plan to stand behind new-car warranties for G.M. and Chrysler is intended to reassure consumers worried about buying domestic vehicles. And to a large extent, the plan should do exactly that. But people who already own a G.M. or Chrysler vehicle are not covered by this program and it also does not cover safety recalls, which can occur years after the warranty expires.

In a nutshell: The Obama warranty commitment program sets up special warranty accounts that will be used only if the automaker runs out of money. If that happens, the government will “appoint a program administrator who, together with the U.S. Government, will identify an auto service provider to supply warranty services.” Those accounts will be funded with 125 percent of the expected warranty cost. The automaker will contribute 15 percent and the government 110 percent. The federal funds will come from the Troubled Asset Relief Program.

That could be a lot of money (except, perhaps, by the government’s current standards). For example, G.M. paid $4.5 billion worldwide in 2007 on warranties and $3.9 billion during the first nine months of last year, according to a filing with the Securities and Exchange Commission.

Click here to read more.  For those interested in reading the President’s Warranty Program, here is a PDF file.

Detroit’s Golden Parachute Beats Wall Street’s

March 30, 2009 at 1:56 pm

Mr. & Mrs. Wagoner- R.I.P (Relaxing in Propsperity)

(Source: ABC News)

(Relaxing in Prosperity)R.I.P Rick Wagoner – Gets $20Mil for losing tens of billions of dollars and tanking stock price from $60 (June 2000) to $1.27 (March 2009)

Rick Wagoner will leave his post as CEO of bailed-out General Motors with a $20 million retirement package, the company’s financial filings show.

Although the Treasury Department has barred GM from paying severance toWagoner or any other senior executive, Wagoner is eligible to collect millions in retirement benefits from his former employer, according to the documents reviewed by ABC News.

The Obama administration asked for Wagoner to resign Sunday, as part of its restructuring of the auto industry. President Obama said this morning that forcing Wagoner out indicated it was a time for new leadership. 

Under Wagoner’s leadership, GM lost tens of billions of dollars, took billions in taxpayer-financed aid, and announced plans to cut 47,000 employees by the end of 2009.

Click here to read the entire article.  For those interested in reading Wagoner’s farewell e-mail, please visit The Truth About Cars.  

For those who care to know, here is what GM’s Executive Officer Severance Policy  looks like (Thanks, an0nymous poster @EVcast): 

General Motors executive officers are generally at-will employees who serve at the discretion of the Board. In early 2005, GM adopted a policy applicable to executive officers requiring stockholder approval of any severance benefits if: 
• The executive’s employment was terminated prior to retirement; and 
• The present value of the proposed severance benefits would exceed 2.99 times the sum of the executive’s annual base salary and target annual incentive. 

Note: TransportGooru wonders if this culture of execessively compensating under-performing, over-paid must-be-retired executives will ever come to an end?   If Mr. Wagoner has any iota of ethics that his alma mater (Harvard Business School) tries to inculcate in its wards, he must politely decline and walk away without taking a penny from this $20mil payout.

Change you can believe in! GM chief resigns at the behest of White House

March 30, 2009 at 9:41 am

 (Source:  CNNMoney.com Video: MSNBC via YouTube)

GM chief out in bailout shakeout

Rick Wagoner forced out of top spot as Obama administration moves to overhaul automaker.

General Motors CEO Rick Wagoner announced his resignation early Monday as the Obama administration gave automakers failing grades for their turnaround efforts.

White House and GM sources had told CNN Sunday that Wagoner would resign as part of the federal government’s bailout strategy for the troubled automaker.

“On Friday I was in Washington for a meeting with Administration officials. In the course of that meeting, they requested that I ‘step aside’ as CEO of GM, and so I have,” Wagoner said in a statement posted to the GM Web site.gm_chrysler_chart2.gif

He is being replaced by GM’s president and chief operating officer, Fritz Henderson. Kent Kresa will serve as interim chairman.

“Having worked closely with Fritz for many years, I know that he is the ideal person to lead the company through the completion of our restructuring efforts. His knowledge of the global industry and the company are exceptional, and he has the intellect, energy, and support among GM’ers worldwide to succeed,” Wagoner said.

Click here to read the entire article.

Stimulus rules may stymie transportation projects; State recipients worry

March 26, 2009 at 6:10 pm

(Source: Boston Globe)

Mass. officials say public works that would have the biggest impact – and create the most jobs – may be left out

Governor Deval Patrick’s administration has determined that dozens of worthy projects are not eligible for federal stimulus money because the US government has dictated that only certain types of public improvements can be funded, even if they have limited economic potential.

That means the initial round of stimulus spending may generate fewer jobs than Massachusetts officials had expected.

When it approved the stimulus package, Congress restricted the use of about $800 million of transportation funds to projects that have been included on a list of public improvements states put together annually. It often takes years for a project to work its way onto that list.

In Massachusetts, many of those projects are simple jobs – paving roads or fixing sidewalks – and usually do not trigger another round of associated development that would employ a larger number of people. The congressional restriction prevents Patrick from using the money for some larger highway and transit upgrades that aren’t on the list but that would spur development of homes, office parks, and retail stores.

Click here to read the entire article.