LegiStorm

Summary:

Economic growth and global trade have led to dramatic increases in goods movement over the past few decades. Despite current economic woes, this trend is expected by many to continue over the long term. The growth in freight transportation demand, in tandem with growing demand on the passenger side, has caused congestion in many parts of the transportation system, making freight movements generally slower and, in some instances, less reliable. Many observers argue that unless there are significant and focused increases in freight infrastructure investment, the freight system will become increasingly inefficient and a drag on the U.S. economy. While most agree that more investment is necessary to accommodate current and future freight demand, there is significant disagreement about the best way to accomplish improvements in freight system infrastructure. Among the most important areas of disagreement are how to raise new funds for investment, the magnitude of the amounts required, and the role of the federal government in the planning process. There is currently no separate federal freight transportation program, only a loose collection of freight-related programs that are embedded in a larger surface transportation program aimed at supporting both passenger and freight mobility. Most of these programs are authorized by the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA), P.L. 109-59, enacted in 2005 and expiring at the end of FY2009. A large proportion of the funding authorized by SAFETEA is provided to the states through the regular highway programs, such as the Surface Transportation Program, that provide significant benefits to the freight industry. Of the total funding only relatively small amounts were specifically dedicated to freight transportation improvements, leaving most decisions about the types of infrastructure improvements to fund largely to State Departments of Transportation (SDOTs) and Metropolitan Planning Organizations (MPOs). Because of this, some in the transportation community would like to see a larger and more well-defined federal freight program that addresses needs the regular programs have not or cannot address. Efforts to define and fund a freight program may be an important element of the reauthorization debate. Because the reauthorization of SAFETEA predominantly concerns highway funding, the focus of this report is on truck freight and that portion of the rail industry that transports truck trailers and containers. The report begins with a brief introduction to the organization of the freight transportation industry and the issue of congestion in the surface transportation system. This is followed by a discussion of how freight fits into the current federal surface transportation program. The report then considers four main overarching freight transportation infrastructure issues that Congress will likely consider in the reauthorization debate: (1) the size of funding needs; (2) options in funding and financing; (3) freight planning and project prioritization; (4) and the need for and design of a federal freight program. Other specific program issues and options are then discussed. These specific issues are federal truck size and weight limits, truck-only (toll) lanes, intermodal network connectivity issues, and motor vehicle delays at highway-rail grade crossings. This report does not discuss environmental issues associated with freight movements such as carbon emissions and climate change, air pollution emissions, and noise.