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National Surface Transportation Policy and Revenue Study Commission Report

The National Surface Transportation Policy and Revenue Study Commission was established by Congress in 2005 under Section 1909 of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU), and was charged with examining the condition and future needs of the nation's surface transportation system, as well as identifying short- and long-term alternatives to replace or supplement the federal fuel tax. The Commission issued its final report in January 2008 outlining recommendations for the future scope of the federal transportation program and how to fund it.

Program Reforms

• Continue a strong federal role in transportation, but with significant structural and programmatic reforms.
• Replace existing programs with 10 performance-driven, outcome-based, modally neutral programs.
• Restructure the Highway Trust Fund into a “Surface Transportation Trust Fund” with contributions from a broader base of transportation users, and support for programs like intercity passenger rail.
• Restructure the U.S. Department of Transportation (DOT) to reflect the new program focus.
• Establish an independent commission (National Surface Transportation Commission, or NASTRAC), much like the Postal Rate Commission or the Base Realignment and Closure Commission, to “oversee development of a national strategic plan for transportation investment and to recommend appropriate revenue adjustments to the Congress to implement that plan."

Funding Recommendations

• Increase the federal gas tax from 5 cents to 8 cents per gallon annually over the next five years, after which it should be indexed to inflation.
• Transition to a vehicle miles traveled tax (VMT) for the long term.
• Expand the use of public-private partnerships and increase tolling on the Interstate.
• Create and fund a national freight transportation program to eliminate chokepoints and increase efficiency.

Safety

• Establish safety as one of 10 new federal programs
• Develop national safety standards, including a goal to reduce fatalities 50 percent by 2025.

National Surface Transportation Infrastructure Financing Commission Interim Report

The National Surface Transportation Infrastructure Financing Commission was authorized under the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) and tasked with analyzing future highway and transit needs, reviewing existing revenues, and making recommendations regarding alternative approaches to financing transportation. Their focus is only on funding, whereas the National Surface Transportation Policy and Revenue Study Commission was tasked with making both programmatic and funding recommendations.

The Commission has not yet issued its final report. The following is based on an interim report and details provided through the media.

Program Reforms

• Supports a new transportation vision, new approaches, and new technologies to increase funding for surface transportation improvements, reduce system cost, maximize current system’s capacity, and reduce negative environmental effects.
• Performance objectives tied to spending.

Funding Recommendations

• Increase federal fuel taxes and index for inflation going forward.
• Support and incentivize state and local policymakers to finance infrastructure improvements through tolls and other diversified user fees, including a program of incentive grants and regulatory reforms to enable more use of tolling.
• Begin immediately the transition to a vehicle-miles-traveled tax (VMT) for the long term.