The Long Game on Infrastructure

by Debra Knopman and Martin Wachs

 

With the release (PDF) of its Legislative Outline for Rebuilding Infrastructure in America, the Trump administration announced its intent to rely on state, local and private investment to provide the lion’s share of new infrastructure funding. Local projects with the highest non-federal share of funding would have priority and a project’s economic benefits to the public would take a back seat to revenue potential in the plan’s ranking system. But with its lack of new federal funding, the plan may not be the best path to economically beneficial or creative solutions to America’s most serious regional, national and long-term problems.

The plan would diminish the federal role in funding and regulation and reduce requirements for environmental permit reviews that the administration blames for slowing project approvals. Private developers would be incentivized to play much larger roles in financing public infrastructure.

State and local governments today bear 62 percent of the cost of building new transportation and water infrastructure and 92 percent of their annual operations and maintenance costs. Annual public spending on transportation and water across all levels of government currently exceeds $400 billion (PDF). The federal share is under $100 billion. Freight railways are almost all privately owned, but private ownership accounts for less than 1 percent of America’s surface transportation and water infrastructure assets.

The president’s plan asserts that federal spending of $200 billion over the next 10 years will unleash some $1.3 trillion in new spending by states, local governments and private developers for a total of $1.5 trillion. But most of the $200 billion would likely come from cuts in existing infrastructure and other domestic programs—it would not be “new” money on top of current federal infrastructure programs unless Congress acts to raise the gas tax or generate other new revenues.

How the six- or seven-fold increase in state, local and private investment would happen is a mystery. The plan includes $20 billion for federal spending on “transformative projects,” defined as projects with positive impacts unlikely to attract private investment.

Block grants to rural states for spending on infrastructure are another element of the plan, with a total set-aside of $50 billion. Rural economies need a boost, but the vast majority of aging infrastructure and most economic growth are in highly urbanized states.

Even more important than imprecision about national spending priorities is the absence of clarity about the future federal role and the need to raise new revenues and increase direct spending on infrastructure. With the interstate highway system complete, many believe federal leadership in transportation funding is no longer necessary and that the federal share of transportation spending, now less than 25 percent of the annual $220 billion (PDF) total, can continue to decline. They maintain that local projects should be supported by local resources, public and private. This is already the case for water and wastewater utilities where the federal share is only 4 percent, although most local governments depend on federal subsidies through tax-exempt municipal bonds for financing and low-interest loans through federal and state programs.

Federal retreat is appropriate for projects that largely benefit local populations. But an entirely different class of projects could bring widespread benefits to larger regions and the nation as a whole. Such projects would transcend state boundaries and promote clearly national goals. Harbor improvements, major flood control works on the nation’s great rivers,and the interstate highway system were the reasons the federal government years ago began funding “internal improvements.” The Clean Water Act of 1972 cleaned up the nation’s rivers and streams. It initiated a massive public works program to help cities of all sizes build secondary sewage treatment plants to comply with new water quality standards.

The nation has different needs now, but there still are national needs. More than 60 percent of the interstate highway system was built before 1970, and a renewed national road network is needed no less in the current era of fast-changing new road and vehicle technologies than it was in the 1950s. Freight hubs connecting rail, roads and ports around the country are congested and reaching their limits. The plan would allow states to toll interstates to raise needed money for improvement, but it does not mention how the bankrupt federal highway trust fund could be put on sound footing.

Urban mass transit—considered a national asset in other countries—provides economic and environmental benefits that cannot be fully financed by fares. The plan requires local governments to capture land value increases near transit stations to fund transit, but does not commit sufficient federal money to match local revenue. Coastal and riverine cities are struggling to keep up with increasing threats from stormwater flooding, with federal spending on recovery from natural disasters—mostly flood-related—exceeding $300 billion in 2017 alone. Federal spending on protection could save federal money on recovery.

The conversation about national infrastructure policy should be not only about which level of government or which private investors will put up the money. It should be a call for imagination and vision of what U.S. infrastructure needs to be for a prosperous 21st century. The conversation could and should transcend party politics. Achieving that could be the biggest transformative project of all.


Debra Knopman is a principal researcher at the nonprofit, nonpartisan RAND Corporation and a professor at the Pardee RAND Graduate School. Martin Wachs is an adjunct principal researcher at RAND. They are the principal co-authors of a RAND Corporation report entitled Not Everything is Broken: the Future of Transportation and Water Infrastructure Funding and Finance in the U.S.

This commentary originally appeared on U.S. News & World Report on February 16, 2018. Commentary gives RAND researchers a platform to convey insights based on their professional expertise and often on their peer-reviewed research and analysis.

ARTBA: Analysis of the Trump Administration’s Infrastructure Package and FY 2019 U.S. Department of Transportation Budget Proposal

Prepared by American Road & Transportation Builders Association

 

Trump Infrastructure Package

The White House Feb. 12 released the detailed infrastructure package that President Donald Trump promised throughout his first year in office. It arrived the same day the administration issued its FY2019 budget, the day has finally come.

The introduction of the 55-page “Legislative Outline for Rebuilding Infrastructure in America”, says: “To help build a better future for all Americans, I ask the Congress to act soon on an infrastructure bill that will: stimulate at least $1.5 trillion in new investment over the next 10 years, shorten the process for approving projects to 2 years or less, address unmet rural infrastructure needs, empower State and local authorities, and train the American workforce of the future.” The president adds, “My administration is committed to working with the Congress to enact a law that will enable America’s builders to construct new, modern, and efficient infrastructure throughout our beautiful land.”

The plan details differ little from what Trump administration officials have discussed for months. The main focus is largely on incentivizing state and local governments and private sector entities to use their money to capture some of the $200 billion the administration proposes to spend. The plan also reforms and speeds the construction project approval process at the federal level and increases workforce capacity to carry out the jobs that may be needed and created because of this investment.

As expected, the Trump administration’s infrastructure package does not address the looming Highway Trust Fund (HTF) solvency problem. Beginning in FY 2021, the HTF will need roughly $18 billion per year, on average, to avoid severe cuts in the amount of annual investment levels of the federal highway and transit programs during subsequent years. In fact, the proposal only raises the HTF in passing and without addressing the looming fiscal crisis. Moreover, the package does not include a way to pay for the $200 billion in federal resources the president is recommending.

Here is a breakdown of how the package intends to leverage the federal dollars to produce as much as $1.5 trillion in total investment:

  • Infrastructure Incentives Program ($100 billion), a competitive grant program for projects including major investments by states, localities, and the private sector. It would be administered by the U.S. Department of Transportation (DOT), U.S. Environmental Protection Agency (EPA) and the U.S. Army Corps of Engineers. The plan does not say how much would be allocated to each agency. As part of the selection process, the plan does weight heavily towards how much new, non-federal revenue can be brought to the table for a project. The federal share is capped at 20 percent per project, and no state can receive more than 10 percent of the $100 billion.
  • Rural Infrastructure Program ($50 billion) that aims to improve the condition of infrastructure, enhance regional connectivity and access to markets and employment opportunities and spur economic growth outside cities. Eligible projects would include transportation, broadband, water, power and electric infrastructure. In this program, 80 percent of the funding would be distributed by a formula based on population of less than 50,000, and lane mileage. The remaining 20 percent would be distributed via a performance grant program for states that submit a comprehensive infrastructure investment plan. Tribal and U.S. territorial areas would also be eligible for funding under this program.
  • Transformative Projects Program ($20 billion) would provide federal funding for, “bold, innovative, and transformative infrastructure projects that could dramatically improve infrastructure” but are, for various reasons, considered too risky for private sector investment. The U.S. Department of Commerce would oversee this program, with consultation as needed from other departments, and eligibility would include all previously mentioned uses of infrastructure as well as “commercial space”. Up to 50 percent of planning costs and 80 percent of construction costs could come from this program.
  • Infrastructure Financing Programs ($20 billion) would allocate an additional $14 billion for the expansion of existing federal credit programs, including the Transportation Infrastructure Finance and Innovation Act (TIFIA), Railroad Rehabilitation and Improvement Financing (RRIF) program and Water Infrastructure Finance and Innovation Act (WIFIA). This additional funding would allow the administration to further diversify the portfolios for these programs. Specifically, port and airport infrastructure projects would be eligible for TIFIA credit assistance, which is currently limited to highway, bridge, transit and certain intermodal projects. The RRIF program would be amended with incentives for short-line freight and passenger rail projects.
  • Another $6 billion would be used to broaden eligibility for tax exempt Private Activity Bonds (PABs). This financing tool has been an option for certain highway and freight facility projects since 2005, subject to an overall cap of $15 billion. The proposal would remove this cap (as well as similar state volume caps) to strengthen the certainty of PABs’ future availability. The administration would also enable PABs to be used for reconstruction projects, longer-term private leases and concession arrangements, and a number of new non-transportation infrastructure categories.
  • Federal Capital Financing Fund ($10 billion) to help federal agencies purchase real property and pay for it over a 15-year period rather than the current requirement that this be done within one year. The fund would help finance these purchases and the relevant department would repay the fund in 15 installments via annual appropriations. The aim is to save money in the long run by hopefully avoiding some cost-prohibitive leases.

Transportation Financing and Contracting

The administration’s proposal would enable states to toll existing Interstate facilities, and use tool revenues to benefit certain surface transportation infrastructure projects beyond the scope of the tolled facility itself. Similarly, states would be able to commercialize rest areas on Interstate highways, provided they “reinvest” the proceeds in the same corridor.

The administration also seeks to eliminate normal federal-aid requirements for highway and transit projects where federal dollars are “de minimis” and for smaller projects largely out of the federal-aid highway right-of-way. A state would also have the option to repay a project’s federal share to the HTF and terminate the need to comply with federal requirements in its maintenance and operations. In the same vein, “federalization” requirements for projects funded by state infrastructure banks would be reduced. The proposal would also raise the threshold for “major” highway projects from $500 million to $1 billion, in order to decrease the number of these larger projects subject to additional supervision and administrative requirements by the Federal Highway Administration (FHWA).

Other provisions:

  • Enable federal land management agencies (such as FHWA’s Federal Lands Highway Division) to use a wider variety of alternative contracting and project delivery methods.
  • Expand existing pilot programs intended to encourage public-private partnerships (P3s) and partnerships between public agencies for transit capital projects, and enable the privatization of airports.
  • Authorize utility relocation for highway and transit projects to take place prior to completion of the National Environmental Policy Act (NEPA) process.
  • Require the use of “value capture financing” as a prerequisite for certain transit capital
    grants. As an example, private entities benefiting from a transit project may be asked to share in its cost through a tax, fee, assessment or other arrangement.
  • Establish an Interior Maintenance Fund that would allow the U.S. Department of the Interior to keep half of the revenues collected from new energy and mineral exploration in order to address the deferred infrastructure maintenance backlog – including roadways – within the inventories of the National Park Service and the U.S. Fish and Wildlife Service.
  • Allow the disposition of federal real property, making it easier to sell federal government-owned assets that may better be managed or owned by states, localities or the private sector.

Project Approval Process

President Trump’s infrastructure proposal would make significant changes to the environmental review and approval process for transportation construction projects. The proposal builds on his August 2017 executive order on reforming the permitting process by setting a two year time limit for environmental reviews. Specifically, the lead agency on any project would have 21 months to complete an environmental review and then additional permitting requirements from other agencies would have to be completed three months thereafter. A number of reforms to NEPA are also made, including limiting the range of alternatives to options which are feasible and eliminating duplication of agency review efforts. The plan would also revoke EPA’s authority to review NEPA decisions made by other agencies.

The proposal also calls for changes to major environmental laws impacting transportation construction. Specifically, the plan would remove EPA from the wetlands permitting process (making the U.S. Army Corps of Engineers solely responsible for such permits) and eliminate EPA’s ability to retroactively veto Clean Water Act permits. Additionally, the Clean Air Act’s transportation conformity process would be altered by requiring that it apply only to the most recent set of National Ambient Air Quality Standards (NAAQS). This would eliminate the problem of counties struggling to meet old standards when new ones are introduced. The plan would also eliminate duplicative regulatory requirements for historic sites and parklands.

NEPA delegation – such as that currently done by FHWA – would also be expanded to other agencies under the proposal. Additionally, the program would be broadened to include delegation of regulatory responsibilities outside of NEPA, including Clean Air Act transportation conformity decisions, flood plain determinations and noise policies. Also, changes would be made to the way in which courts review challenges to transportation projects. Under the plan, courts would only be able to halt transportation projects for legal challenges in “exceptional circumstances.” In addition, federal agencies are directed to establish guidelines on the timeliness of data used in environmental permitting decisions. Once these guidelines have been established, courts will not be able to entertain challenges to agency data based on whether or not the information is current.

Workforce Development

Because of an anticipated increase in construction and other employment resulting from infrastructure legislation, as well as related economic growth, the administration proposes numerous improvements and reforms to federal education and training programs. These include:

  • Expand Pell Grant eligibility to individuals seeking a vocational certification or credential, often through a short-term educational or apprenticeship program.
  • Reform the Perkins Career and Technical Education program with the objective of improving access to high-quality technical education in secondary and post-secondary institutions. This would include directing a larger share of Perkins funding to high schools, in part to “fast track” interested high school graduates to infrastructure-related jobs.
  • Grow the eligibility for the Federal Work Study program among students pursuing career and technical education, particularly low-income and low-skilled students seeking quick entry or reentry to the workforce.
  • Require states accepting federal dollars for infrastructure projects to allow participation by workers with skilled trade licenses from other states.

Trump Administration’s FY 2019 U.S. Department of Transportation Budget Proposal

Conventional Washington wisdom says that any administration’s budget request is usually “dead on arrival.” That may be especially true this year. Congress and the administration agreed Feb. 9 on overall discretionary funding levels for both defense and non-defense spending for FY 2018 and FY 2019. The deal by congressional leaders and the president increased spending by more than $300 billion over FY 2017 funding levels, a portion of which will undoubtedly go towards transportation programs. The question is which programs?

The budget deal combined with the Trump administration’s infrastructure package release make the transportation sections of the FY2019 budget somewhat subdued. However, the president’s budget is helpful in that it demonstrate the areas the administration feels should be emphasized and those that may be reduced or eliminated. Congress controls the “power of the purse,” however, and will make most of the funding decisions, despite the administration’s request.

Federal Highway Program

For FY 2019, the administration’s budget for highways conforms to the amount enacted in the FAST Act, as it did for FY 2018. The budget recommends $46.001 billion in new contract authority, up from $44.924 in FY 2018, and an obligation limit of $45.269 billion, up from $44.234 in FY 2018. Both FY 2019 figures represent an increase of 2.3 percent over FY 2018. In addition, $739 million of contract authority could be obligated above the limitation, bringing total obligation authority for the year to $46.007 billion. This represents a significant change from the FY 2018 budget, when the administration recommended freezing highway program funding for FY 2019 at the FY 2018 level.

Nonetheless, the long-term outlook for the highway program remains highly uncertain. At current funding levels, outlays from the highway account exceed projected revenues by about $8-$9 billion per year. The balance in the highway account will be dissipated by the end of FY 2021. In response, the administration’s budget includes the following adjustments:

  • First, the administration’s budget assumes a freeze on new contract authority and obligations at $43.969 billion per year through FY 2028. By contrast, the FAST Act provides for annual growth of just above 2 percent, or close to $1 billion, annually. A freeze thus means the obligation limitation in FY 2028 would be about $10 billion less than continuation of the FAST Act.
  • Even more critical, however, is the forecast that outlays for highways will have to be cut from $47 billion in FY 2021 to $36 billion in FY 2022 and beyond. In essence, rather than raise new revenues, the administration is proposing to limit payments to states and contractors from the Highway Trust Fund after FY 2021 to no more than projected HTF revenues under current tax rates. To fill the $11 billion gap, states would have to use their own funds, stop construction work on some projects, or slow down reimbursements to contractors.

Public Transportation Program

The Mass Transit Account of the Highway Trust Fund is the source of funding for the Transit Formula Grants program, which includes money for a wide variety of transit needs, including operations and maintenance of urban transit facilities, bus purchase and repair, repairs to fixed guideway transit systems, transit programs in rural areas, and transit for seniors and persons with disabilities, among others. For FY 2019, the Trump administration proposes to provide $9.90 billion for the Transit Formula Grant program, down from $10.5 billion in FY 2018. Longer term, like the highway program, the Highway Trust Fund can continue to pay for the transit program only for another couple years before revenue constraints force a cut. Following FY 2021, the administration’s budget proposes a reduction in outlays for the transit formula program from $10.1 billion to $6.3 billion in FY 2023 and beyond. Absent new revenues, this would mean significant program cuts or a greater burden on state and local governments to fund mass transit needs.

Only a small fraction of Formula Grant funds, however, are used for construction of transit facilities. Most funding for major transit project construction goes through the Capital Investment Grants/New Starts program. In recent years, this program has been funded from the general fund and requires an annual appropriation. For FY 2019, the administration’s budget recommends cutting new money for this program to $1 billion, down from $2.4 billion in FY 2018, and using the funds only to continue construction activity on ongoing transit projects. There would be no federal funding for new transit projects. Longer-term, the budget projects funding for Capital Investment Grants to remain at the $1 billion level through FY 2028.

Highway Trust Fund

A $70 billion infusion of general funds into the Highway Trust Fund under the 2015 FAST Act will, according to the FY 2019 budget, keep the trust fund solvent through FY 2021. After that, however, the trust fund will not be able to maintain existing funding for highway and transit improvements without new revenues, either in the form of another general fund transfer or an increase in highway user fee revenues.

Unfortunately, this critical issue is not addressed in either the FY 2019 budget or the Administration’s Rebuilding Infrastructure in American plan. According to the FY 2019 budget, the federal motor fuel and truck taxes will generate no more than $42 to $44 billion per year in revenues into the Highway Trust Fund for the foreseeable future. At the same time, annual outlays of $55 to $58 billion per year from the trust fund would be required just to maintain existing levels of investment in the federal highway, transit and highway safety programs. As a result, the balance in the highway trust fund would be depleted by the end of FY 2021.

The administration’s response to this bleak Highway Trust Fund forecast is two-fold:

  • After FY 2021, limit outlays for the federal highway, transit and transit safety programs to Highway Trust Fund revenues. As the table shows, this means cutting outlays by about $13 billion.
  • Shift responsibility for investing in transportation infrastructure to state and local governments, as well as the private sector.

Aviation Programs

The Trump administration once again is advocating for the privatization of the nation’s air traffic control system. House Transportation & Infrastructure Committee Chairman Bill Shuster (R-Pa.) passed legislation out of his committee in 2017, but it did not advance beyond that stage and has generated substantial opposition from Republicans in the House and Senate. Under the administration’s approach, the aviation passenger ticket taxes would be reduced and the new entity would impose new user fees to support the system.The budget proposes continuing Airport Improvement Program (AIP) funding at $3.35 billion—the level at which it has been since FY 2012. The AIP is the federal capital construction program that airports use to build and maintain runways, taxiways and other critical infrastructure.

Other Transportation Programs

The Trump administration FY 2019 budget also calls for:

  • No funding for the National Infrastructure Investments program, or TIGER Program, which was initiated by the Obama administration and provides grants from the federal general fund for a variety of transportation projects—highway-related activities are the historically largest recipient of the program. Congress provided $500 million in FY 2017.
  • A $962 million cut in Amtrak funding over FAST Act authorized FY 2019 levels, a 57 percent reduction, and cuts to several other smaller rail programs.
  • $1.25 billion, or 21 percent, cut to the Army Corps of Engineers budget from what was enacted in FY 2017. These programs, among other things, support port and water infrastructure activities.

What’s Next?

Now that the Trump administration’s infrastructure plan is public, the real work begins in the halls of Congress. The authorizing committees will likely hold hearings on the administration’s plan in the coming weeks and will, hopefully, begin crafting legislative language to move promptly through the House and Senate.

The president’s detractors, including the media, will likely focus on what’s missing from the plan. Some of that criticism is justified, given the absence of a HTF user fee solution. However, ARTBA will continue pressuring Congress and leadership on both sides of the aisle, in particular, to move an infrastructure package forward that includes a HTF revenue solution as its foundation.

President Trump’s plan is like the starter’s gun at an Olympic speed skating race. In order for a package to be completed before Congress begins to focus full time on the November midterm election, we need to work hard to make sure this package moves at a record-breaking pace.

Rethinking Infrastructure Funding

COMMENTARY

It Is Time to Rethink the U.S. Highway Model

Our highway funding system based on per-gallon fuel taxes is breaking down for several reasons.

By
I’ve been writing this Public Works Financing column for more than two decades. During this time, I’ve researched and written dozens of policy studies on transportation infrastructure, advised federal and state transportation agencies, and served on various transportation committees and commissions. From all of this I’ve concluded that the way we fund and manage the U.S. highway system is broken and needs serious rethinking if it’s going to meet the needs of 21st century America.

The problems are legion, beginning with the huge direct cost of traffic congestion in America’s 200 or so urban areas—a whopping $160 billion per year just in wasted time and fuel. And while our highways and bridges are not “crumbling,” there are chronic problems of deferred maintenance, leading to many rough roads and a surprisingly large number of structurally deficient or functionally obsolete bridges.

Our highway funding system based on per-gallon fuel taxes is breaking down for several reasons. A growing share of the proceeds is no longer spent on highways, so people have come to view gas taxes as just another tax, which politicians are therefore leery of increasing. Yet as cars continue to get more efficient—using fewer gallons to go a given distance—revenues from per-gallon fuel taxes can’t keep pace with either the growth in driving or the cost of building and maintaining highways.

Moreover, with decisions on how to spend transportation revenues being largely political, at both state and federal levels, the billions raised and spent each year are often not spent on projects that would produce the most bang for the buck. Most federal highway and transit money is doled out by formula, and although members of Congress are no longer allowed to “earmark” pet projects, the overall process is based far more on politics than on sound economic principles (such as ensuring that benefits of a project exceed its costs).

I now think that a far better model would be to reconceive highways as another category of network utility, in addition to the familiar examples of electricity, water supply, telecommunications, and natural gas. Most network utilities are not run by government agencies, with key decisions made by legislators. Instead, the providers are organized as companies that sell services to customers, under government oversight. That’s true regardless of whether those companies are owned by investors or are government enterprises (like municipal electric and water utilities).

If highways were provided by highway utility companies—investor-owned concession companies, government toll agencies, or nonprofit user co-ops—a great many things would be different. For example:

  • People would pay for highways based on how much they use them, just as we pay for water by the gallon and electricity by the kilowatt hour.
  • People would be just as familiar with what highways cost, based on their monthly bill, as they are with the cost of cable television, cell phones, electricity, etc.
  • Per-mile highway charges would be subject to some form of regulatory oversight, based on the extent to which the highways and bridges in question had competitors or were essentially monopolies.
  • Large-scale highway investments—for new highways and for replacing worn-out ones—would be financed via the capital markets, just as individuals do in buying a home and as other utilities do in building new facilities, rather than being paid for piecemeal out of annual appropriations.
  • Major highway investments would be primarily business decisions, not political decisions, subject of course to the same kinds of land-use and environmental constraints faced by all other commercial developments.
  • Highway operations would be managed in real time, to provide customers with the quality of services they were willing to pay for.
  • Highway companies would have strong incentives to keep their facilities in excellent condition, to attract and keep customers.

That may sound like a utopian vision, but there are reasons to think we are at a point where dramatic change will be necessary. The federal government is on a path toward insolvency, where nearly all federal revenues will be consumed by entitlements, defense, and paying the interest owed on the national debt. There will be no “general revenue” left over to bail out a Highway Trust Fund.

Most state governments are saddled with huge unfunded pension and health care obligations to retired public employees, so they are not in a position to take up the slack from a reduced federal role in transportation. And per-gallon fuel taxes will have to be replaced by a propulsion-neutral funding source—some form of per-mile charging.

These conditions set the stage for the transformation to a new highway system, supported by three other key developments. One is the growing worldwide success of revenue-financed public-private partnership (P3) concession projects for highways and other transport infrastructure. Compared with Australia, Chile, France, and Spain, the United States has hardly scratched the surface of what is possible.

Second is the emergence of global infrastructure investment funds, which have amassed over $350 billion of equity to invest in revenue-producing infrastructure in the past five years. Most of this is being invested in European, Asia-Pacific, and Latin American infrastructure—but these funds clearly desire to invest far more in the United States, if only there were a “pipeline of projects.” America’s aging, hyper-congested highway system could offer an ample pipeline.

A third development is the increasingly recognized need for public pension funds to diversify their portfolios by investing more in revenue-producing infrastructure. That’s hard to do in U.S. transportation, because nearly all airports, highways, and seaports are owned and operated by governments. But P3 concessions open such infrastructure to serious investment by non-profit pension funds as well as for-profit investment funds.

The transformation of U.S. highways from state-owned enterprises to highway utility companies could not happen overnight. But in my forthcoming book, Rethinking America’s Highways: A 21st Century Vision for Better Infrastructure (University of Chicago Press, June 2018), I lay out scenarios showing how a several-decades transition could occur. The book shows that investor-owned toll roads have a long European and U.S. history that was overlooked once motor vehicles arrived on the scene. The concept was rediscovered in post-World War II Europe, and it spread to Australia, China, and Latin America late in the 20th century. It is only in the last 15 years that P3 highway infrastructure has gained a toe-hold in the USA.

The preview of the White House infrastructure plan (leaked on January 22nd) offers some steps toward beginning this transition. It recognizes the need to reduce the direct funding role of the federal government for infrastructure owned and operated by state and local governments. It provides for expanded P3 financing tools (Private Activity Bonds, Transportation Infrastructure Finance and Innovation Act programs, etc.) as well as repealing the federal ban on toll-financed Interstate reconstruction and modernization. And by not embracing a federal fuel tax increase, it de-facto encourages the needed shift from per-gallon gas tax to per-mile charging, led (as it should be) by the states that own the highway infrastructure.

A version of this column first appeared in Public Works Financing.

Robert Poole is director of transportation policy and Searle Freedom Trust Transportation Fellow at Reason Foundation. Poole, an MIT-trained engineer, has advised the Ronald Reagan, the George H.W. Bush, the Clinton, and the George W. Bush administrations.

 

Trump’s infrastructure plan hits early roadblock over funding

By Mark Niquette, Bloomberg, WP Bloomberg

 

Top Democrats are questioning President Donald Trump’s infrastructure plan even before it’s released, raising doubts about whether the administration’s approach can win bipartisan support.

Trump has long touted his plan to upgrade U.S. public works as something that can win Democratic backing, and he will appeal to Democrats on infrastructure in his State of the Union address on Tuesday. He’s offering at least $200 billion in federal money over 10 years to spur states, localities and the private sector to spend as much as $1.6 trillion.

Democrats say that’s not nearly enough. Senate Minority Leader Chuck Schumer and other Senate Democrats have called for $1 trillion in federal investment. The American Society of Civil Engineers has said more than $2 trillion in additional funding is needed by 2025 to upgrade conditions of everything from roads, bridges and airports to mass transit and drinking water.

“It’s a ‘nothing burger,’” Oregon Rep. Pete DeFazio, the top Democrat on the House Transportation and Infrastructure Committee, said of the administration’s proposal in a Jan. 9 interview. “It has to have real investment, not just a bunch of polemics and ideology pretending to be taking major steps to rebuild our infrastructure.”

Infrastructure is the next big item on Trump’s legislative agenda, after a failed attempt to overhaul health care and passing a tax bill last year. But Democrats’ call for more funding comes in addition to the tax measure costing $1.5 trillion over 10 years, and Republican leaders say they don’t want a big spending bill. The push also follows the acrimonious government shutdown, and lawmakers are already fighting about budget spending with mid-term elections looming in November.

Trump is expected to tout his infrastructure plan in his State of the Union speech, and detailed principles will be transmitted to Congress a week or two after that to start the legislative process, adviser DJ Gribbin said.

With Republicans controlling the Senate by only a 51-49 margin, Trump needs Democratic votes. It’s unlikely an infrastructure bill can pass on a simple, party-line majority, the way the tax overhaul was enacted last year, using what’s known as budget reconciliation.

Delaware Sen. Tom Carper, the leading Democrat on the Senate Environment and Public Works Committee and a former governor, said he supports encouraging states and localities to generate funding for projects. But he returned from a meeting with administration officials earlier this month skeptical about their approach.

“Can we do a better job using scarce resources to leverage state and local monies? Yes,” he said. “But I’m still not sure how you transform $200 billion into $1 trillion. You’ll have to show me.”

Rep. Bill Shuster, the Pennsylvania Republican who is chairman of the House Transportation and Infrastructure Committee, said he has told Trump that any bill must be bipartisan and fiscally responsible.

Democrats will want to address the Highway Trust Fund, which uses primarily federal fuel taxes to help fund state and local projects but is projected to become insolvent by 2021, Shuster said. Republicans don’t want deficit spending, he said.

“So we have to find a path forward that satisfies both the Democrats and Republicans,” Shuster said. “But I believe there is a path forward.”

Trump will appeal to Democrats in his State of the Union speech that a bipartisan approach is needed to rebuild the country, Marc Short, the White House legislative affairs director, said on “Fox News Sunday.” Trump has eyed Democratic support for his public-works plan, in part because it means jobs for the Democrats’ traditional allies in labor unions.

There’s no doubt that Democrats in Congress will want more federal dollars, but there’s a significant debt problem in the U.S., Short said. “This can’t just be all federal largess that pays for this,” he said.

Some governors and mayors have said they’re already paying their fair share and that they need a better federal partner. But Trump wants to allow communities to keep more of their funds, make their own decisions, and “simplify the federal bureaucratic maze,” White House spokeswoman Lindsay Walters said.

“The Washington establishment still thinks that infrastructure can only be built correctly if they make all the decisions and control the purse strings, but one look at the crumbling bridges and roads across America shows that approach has failed,” Walters said in an email.

Still, allocating $200 billion in federal funds is “a drop in the bucket” compared with the cost for slashing taxes for corporations and the wealthy in the tax bill, said Sen. Ron Wyden, the top Democrat on the Senate Finance Committee. It appears Trump also wants to shift the funding burden to states and cities already strapped for cash, he said.

“This is not a formula to pull our infrastructure out of disrepair,” Wyden said in a statement.

Drew Hammill, a spokesman for House Minority Leader Nancy Pelosi said “a token GOP infrastructure plan” that guts environmental protections, privatizes assets and increases tolls won’t work, and that Democrats “will continue to fight for broad, bold federal investment.”

Trump’s White House wants to change the approach to funding projects to reduce over-reliance on federal money and get more public works built and maintained. A leaked draft of principles that emerged this week said half of the federal monies would go toward incentives in a competition to encourage non-federal entities that own most assets to secure their own funding for projects. Tax-exempt bonds also would be expanded to help attract private investment, according to the draft.

White House officials have said the plan being developed also would allocate funding for rural projects, money for federal lending programs and “transformative” projects that can’t secure private financing. Streamlining environmental reviews and permitting to get project approvals in an average of two years also will be part of the plan, officials have said.

Gribbin said the White House is “open to conversations” with lawmakers about increasing the $200 billion, and the administration is purposely not including new revenue in its proposal to allow those details to be negotiated with Congress.

Congressional Republicans have been supportive of streamlining project approvals and leveraging federal dollars, though lawmakers who represent rural areas, including John Barrasso of Wyoming, chairman of the Senate Environment and Public Works Committee, have expressed concerns about relying too heavily on private investment that doesn’t work well in less-populated areas.

Barrasso has said his panel was working on a bill while waiting for a White House proposal. Committee Democrats outlined a blueprint in July that called for more than $500 billion and may draft their own measure, Carper said. Other committees would also be involved.

While some administration proposals are good, $200 billion in federal funds “barely gets you out of the starting gate” in addressing deficient bridges and other U.S. needs, said Ed Rendell, the former Democratic governor of Pennsylvania who co-founded Building America’s Future, a bipartisan coalition of officials that promotes infrastructure spending. He called the White House framework “dead on arrival.”

“It’s all show and no go,” Rendell said. “You can’t do infrastructure without a significantly sized federal commitment, and I think it has no chance to get Democratic votes — and it won’t get 100 percent of the Republican votes because of the Tea Party.”

Ray LaHood, a Republican and former transportation secretary under President Barack Obama, said he thinks it’s possible to find a spending amount that both Democrats and Republicans could support “if people will be reasonable and talk to one another.”

“I think the administration really wants to be bipartisan on infrastructure and wants to include Democrats and wants Democrats in the room when the bill is written and when the funding sources are really determined,” said LaHood, who is a co-chairman of Building America’s Future.

Even so, getting a major infrastructure bill enacted in 2018 will be “an uphill climb,” said Stephen Sandherr, chief executive officer of the Associated General Contractors of America, representing more than 26,000 construction companies and other firms. Sandherr said a lot of his members are more optimistic than he is because of the partisan political battles during the past year.

“To think that they’re all going to now, all of a sudden in the new year sit around a campfire, hold hands and sing ‘Kumbaya’ on infrastructure is a little bit unrealistic,” Sandherr said on a conference call with reporters earlier this month.

What Amazon wants for its new HQ

MIAMI MAKES ITS CASE FOR AMAZON’S SECOND HQ

FOX Business

 

Just 20 cities are left standing in the competition for Amazon’s second headquarters and the 50,000 jobs it will bring.

Future is Bright for train travel in Florida

First ride: Aboard Florida’s new Brightline train

Lisa Broadt, The (Stuart, Fla.) News, Published 9:11 p.m. ET Jan. 12, 2018 | Updated 9:12 p.m. ET Jan. 12, 2018

 

WEST PALM BEACH, Fla. — On the eve of Brightline passenger rail launching in South Florida, the railroad already is looking beyond its original goal of service between Miami and Orlando.

Brightline’s intercity system could be expanded within Florida to Jacksonville or Tampa and could be replicated in other states with similar demographics, including Georgia and Texas, railroad officials said at a media event Friday.

“Our vision doesn’t stop here,” said Wes Edens, co-founder of Fortress Investment Group, Brightline’s parent company. “Our goal is to look at other corridors with similar characteristics — too long to drive, too short to fly.”

Brightline — the country’s only privately owned and operated passenger railroad — is to officially begin passenger service Saturday morning.

For now, trains will run between West Palm Beach and Fort Lauderdale. But the railroad will expand to Miami later this year, with full service to Orlando still two years away.

Elected officials and members of the media on Friday took the 40-minute trip on BrightGreen, one of Brightline’s five colorful diesel-electric trains.

It was a chance for the $3.1 billion railroad to show off the amenities they say will set Brightline apart from other forms of public transportation, including Tri-Rail, South Florida’s existing commuter rail.

Leather seats, wide aisles, bike racks, free wireless Internet — with two power outlets and two USB ports per seat — are among the amenities Brightline says will appeal to its target customers, which include tourists, business travelers and Millennials.

Friday’s event also was a chance for Brightline to introduce the staff that it says will provide world-class hospitality.

Train attendant Whytni Walker, 23, of West Palm Beach said she applied to Brightline because she wanted “to be part of something new.”

Walker said she believes the staff, many of whom are Millennials, are helping to create a vibrant atmosphere aboard the trains and in the stations.

“There’s energy everywhere,” Walker said. “Since training began, there hasn’t been a dull day.”

But even with the launch of service just hours away, Brightline officials on Friday were focused on the future.

The project’s successful launch — and performance in the coming years — could have implications for passenger rail nationwide, Edens said in an interview with USA TODAY.

To be economically viable, the railroad must capture 2% of the approximately 100 million annual trips between Miami and Orlando, according to Edens.

The private-equity investor and co-owner of the NBA’s Milwaukee Bucks said he’s confident Brightline will deliver.

“The service offering and the convenience and the expense of it are so compelling that 2% seems like a good risk,” Edens said.

The Brightline model could be replicated in other highly populated, highly congested city pairs, such as Atlanta-Charlotte, Houston-Dallas and Dallas-Austin, according to Edens.

The company has long said that its use of the Florida East Coast Railway — a Miami-to-Jacksonville corridor established in the late 19th century but currently used only for freight — was a key factor in making Brightline financially viable.

Similar infrastructure exists in Texas and Georgia and is, in fact, abundant in many areas of the country, according to Edens.

“The U.S. has very poor passenger rail, but the best freight system in the world,” he said. “The existing infrastructure is very usable in many of these places.”

Within Florida, Tampa and Jacksonville are among the most obvious expansion opportunities, Edens said, adding that each comes with unique benefits. Expansion from Orlando to Tampa, Florida’s second-largest city by population, would be aided by the fact that the state owns right-of-way between the cities, while an expansion to Jacksonville, the northern terminus of the Florida East Coast Railway, would have the advantage of the existing infrastructure, according to Edens.

Introductory fares between West Palm and Fort Lauderdale are $10 each way for Smart Service, Brightline’s coach class, and $15 for Select Service, its business class. Seniors, active military personnel and veterans will receive a 10% discount, and children younger than 12 will ride for half price as part of discounted introductory fares, according to Brightline.

Initial service will include 10 daily round trips on weekdays and nine on weekends between 6 a.m. and 11 p.m.

Brightline ticketing and schedule information is available online and through the railroad’s new mobile app.

Urban Mobility: Data Driven Decision-Making and Solutions

Who Owns Urban Mobility Data?

Policymakers need it; private transportation companies have it. Here’s one way to broker a solution.

   DAVID ZIPPER

 

How, exactly, should policymakers respond to the rapid rise of new private mobility services such as ride-hailing, dockless shared bicycles, and microtransit? As I argued here several months ago, in order to answer that question city leaders will need accurate and detailed information about all urban trips—however the traveler chose to get from one place to another. And that information needs to come in part from the private mobility companies that are moving a growing share of people within our cities.

In 2017, these services had a tumultuous year. Apocalyptic images of discarded dockless bikes in China left American officials that are experimenting with this model for bikesharing scrambling to ensure their cities avoid the same fate. Meanwhile, Uber’s admission that it paid a $100,000 ransom to hackers who stole 57 million user accounts damaged that company’s credibility as a protector of passenger privacy. And a widely shared study from researchers at University of California-Davis refuted several optimistic hypotheses about ride-hailing’s societal benefits: It found that companies like Uber and Lyft are spurring urban congestion, siphoning public transit riders, and failing to entice many people to give up their cars. Not coincidentally, transit agencies like Washington, D.C.’s WMATA are now launching their own investigations to see if declining ridership can be traced to the emergence of ride-hailing.

Beyond these broad issues, there are a number of specific questions that can’t be answered without access to trip information from Uber, Lyft, Limebike, and the like. For example, without such data it’s hard for policymakers—or the general public—to decide if it’s a good idea to convert a parking meter to a ride-hailing drop-off point, or to ensure pedestrians aren’t obstructed by heaps of dockless bikeshare bikes on the sidewalk. Unfortunately, new mobility services have generally refused to let the public sector see inside their data vaults.

But the tide is turning, especially as the line between public and private forms of urban transportation blurs. American transit agencies are partnering with ride-hailing companies to offer late-night service, move people to bus or rail stations (“first mile/last mile” solutions), and manage paratransit for riders with limited mobility. Ride-hailing companies are in an awkward position if they refuse to share data with governments that subsidize them. “If I’m paying you to move a passenger, the data for that passenger isn’t yours,” I heard a Texas transit official say recently to a ride-hailing executive. “It’s mine.” The executive had no response.

When will policymakers finally be able to access the data they need to manage streets and sidewalks in the public interest, and how will they get it? The most likely solution is via a data exchange that anonymizes rider data and gives public experts (and perhaps academic and private ones too) the ability to answer policy questions.

This idea is starting to catch on. The World Bank’s OpenTraffic project, founded in 2016, initially developed ways to aggregate traffic information derived from commercial fleets. A handful of private companies like Grab and Easy Taxi pledged their support when OpenTraffic launched. This fall, the project become part of SharedStreets, a collaboration between the National Association of City Transportation Officials (NACTO), the World Resources Institute, and the OECD’s International Transport Forum to pilot new ways of collecting and sharing a variety of public and private transport data. Kevin Webb, the founder of SharedStreets, envisions a future where both cities and private companies can utilize SharedStreets to solve questions on topics like street safety, curb use, and congestion.

That’s a laudable goal, but Shared Streets will have to solve several challenges in order to become a go-to resource. For example, it’s hard to provide a complete picture of urban mobility unless the heavyweights like Uber, Lyft, Didi Chuxing, Ofo, and Mobike participate; so far none of them has signed on. There is also the question of how tech behemoths like Google and Apple—collectors of massive datasets about individuals’ movement—can be involved. Perhaps they can be sources of reliable revenue that SharedStreets will need in order to scale (at present the initiative is being incubated with philanthropic support).

Finally, there is the critical question of privacy. Although Uber’s hacking scandal has dinged ride-hailing’s credibility as a protector of passenger data, new mobility services do have a point when they push back against handing over rider information to the government. It’s reasonable to assume that at least some customers will balk at the prospect of public agencies accessing their personal ride histories. Webb says that SharedStreets will handle those concerns by collecting aggregated data that is rich enough to allow for deep analysis while still hiding information about individual rides. New mobility service companies could further protect their passengers by converting trip data into so-called “synthetic populations” of artificial data modeled after trips that people actually took.

However the new mobility service data arrives—almost certainly aggregated, and potentially artificially modeled—there will need to be a way to ensure it is accurate. After all, companies like Uber and Lyft have a vested interest in the questions policymakers pose about their impact on city streets. Data validation—especially for modeled data—is crucial for such an exchange to be trusted.

Bosch: The Smart City Of The Future Has Arrived

Conducting connected pilots in 14 urban centers worldwide

       

 

While much of CES is focused on the smart home, Bosch is looking beyond our abodes to the mega metropolises that house them.

Leveraging its IoT, AI, software and sensor smarts – the building blocks of smart cities – the Germany-based business is already working to cure many of the ills that plague large urban areas, including traffic, pollution, high energy consumption and crime.

In a CES Media Day presentation on Monday, Bosch Group management board member Dr. Stefan Hartung and Mike Mansuetti, president of Bosch North America, cited 14 current “Beacon” projects in metroplexes worldwide, where “The smart city of the future is already here,” Hartung said.

Among the pilots: A connected-parking program, being tested this year in 20 U.S. cities, in which specially-equipped cars automatically report available parking spaces to the Cloud as they pass, helping to reduce traffic, fuel consumption, pollution and time spent hunting for a spot.

The company is also outfitting 5,000 streetlights in San Leandro, Calif., to only illumine when needed, which is expected to save the municipality $8 million over 15 years.

On the product front, Bosch has developed a shoebox-sized micro-climate monitoring unit called Climo that urban managers can use for traffic control. A winner of a CES 2018 Innovation Award, the device is one-tenth the cost and one-hundredth the size of standard monitors, Mansuetti said.

The executives also touted a telematic eCall plug, which fits into a car’s cigarette lighter and can monitor and report the driver’s performance, and emit an emergency alert signal if needed. The device can help calm parents of young drivers and reward safe motorists with discounted insurance rates.

To help make smart cities a reality, Bosch has deployed 4,000 IoT engineers and is operating three AI research centers, in Germany, India and Silicon Valley. Why the urgency? According to Hartung, two-thirds of the world’s population will be living in mega cities by 2050, while Mansuetti pointed to the big business that smart city has become: 19 percent annual growth and a projected 800 million Euros in expenditures by 2020.

IT’S ALL ABOUT THE DATA

Miami’s New Vision as a Global City seeks to expand Economic Opportunity

The Miami Urban Future Initiative is a joint initiative with FIU’s College of Communication, Architecture + The Arts and CCG sponsored in part by The John S. and James L. Knight Foundation,  which will lead new research and mapping on economic, occupational, creative and technological assets in Miami, in partnership with renowned experts, to provide necessary data, evidence and strategy to grow a more inclusive, creative economy for a 21st century global Miami. Miami has reached a crossroads. Its economy – historically based on tourism, hospitality, transportation, and real-estate development – has deepened, diversified, and become more creative and idea-based, as banking, media, arts, education, and new technology-based industries have assumed a larger role. The region now finds itself at a critical inflection point.

While growing, Miami’s creative class — those who make a living by using their minds in arts & design, science, technology, law, & medical industries or academia, media, management, & finance — only make up 25% of the workforce, a much smaller share than regions like Washington, D.C. (44.6%),  Chicago or& L.A. (31.5% each). Miami also suffers from challenges arising from a rapidly growing urban center. This Initiative will develop additional research about Miami’s creative economy and divides, while working across the business, civic, and academic communities to shape a constructive, future-oriented dialogue.

Through this Initiative, they hope to provide the thought leadership and awareness required to guide Miami’s evolution as a global city through data-driven research and assessments of the key trends shaping the region, disseminate this information and inform the broad strategic vision for the region’s private and public stakeholders through ongoing local convenings and briefs and bring global thought-leaders and practitioners to bear on thinking about the region’s future through high-level events and convenings on issues important to Miami and global cities.

More than two decades ago, Alejandro Portes, now at the University of Miami, and Alex Stepick of FIU dubbed Miami as a “city on the edge,” with many assets and many challenges. The region’s transformation, they added, was a story of “change without a blueprint.” Miami has seen one of its greatest growth waves since that time, benefiting from the strategic action of visionary stakeholders, groups, universities and colleges, and mayors since. It is now time to renew the region’s commitment to a regional strategy and to engage a broad region-wide conversation about a more inclusive prosperity that takes into account the mounting realities and challenges that face the region today. The time to act is now: if it misses this opportunity, the region risks losing the economic advantages it has achieved.

To this end, FIU’s College of Communication, Architecture + The Arts and Creative Class Group (CCG) created the FIU-Miami Creative City Initiative, an ongoing collaboration to better understand the forces that are shaping the future of Miami. Their aim is to build upon the strong foundation created by the region’s political, business, academic, and civic leadership and organizations over the past several decades to help identify the key things Miami can do to position itself as a more innovative, creative, inclusive, and prosperous global city and region.

Miami Urban Future Initiative Research Report: Miami Ranks 6th Among Large U.S. Metros on the New Urban Crisis Index

Miami’s rankings on the various equity metrics include:

  • Income Inequality. Miami ranks second among large U.S. metros in terms of income inequality.
  • Wealth Segregation. Miami ranks tenth among large U.S. metros according to its segregation of the wealthy, a measure of the residential segregation of households with incomes of $200,000 or more.
  • Overall Segregation. Miami ranks sixteenth among large U.S. metros on the Segregation Inequality Index, a combined measure of economic segregation and both wage and income inequality.
  • Housing Unaffordability. Miami ranks among the twenty least-affordable metros in the world in terms of its “median multiple,” or ratio of median housing prices to median household income.
  • Concentrated Poverty. 14 percent of Greater Miami households and one in five families with children lived below the poverty line.
  • Middle Class Decline. In Miami, the middle-class share of population declined from 51 percent in 2000 to 48.5 percent in 2014.

Getting there from here!

Throughout the history of mankind, people have always faced a great divide and responded by asking themselves, “How do we get there from here?”

Facing thousands of miles of forest, mountains, rivers and even desert separating America’s east coast from the west, pioneers responded first with covered wagons, then with railroads and finally with a system of interstate highways.

One hundred years ago, innovators faced the 50 miles that separated the Atlantic and Pacific Oceans across the Isthmus of Panama and responded with a canal that would transform global trade.

Fifty years ago, visionaries gazed at the moon in the night sky and again challenged themselves to figure out how we could get there from here.  They responded with engineering marvels of space exploration.

Today, we are faced with another divide – one of funding, where policy and political will rather than physical distance and geography separates us.

Historically, Congress has authorized transportation funding for six years at a time, recognizing that major infrastructure projects are long-term investments that can’t move forward without reliable funding streams. But, in recent years, Congress has succeeded in passing only two-year band-aid bills, shifting $52 billion from the General Fund to the Highway Trust Fund since 2008 to keep it from going insolvent.

The reason for this chronic shortfall is our nation’s singular reliance on the gas tax to pay for transportation needs, and its failure to keep up. The gas tax is not indexed to rise with inflation and our leaders have not summoned the political resolve to raise the tax in more than 20 years. And that’s just compounded by the growth in more fuel-efficient vehicles and those that don’t require gasoline at all.

Some, like the U.S. Chamber of Commerce and the American Road & Transportation Builders Association argue for substantial increases in the gas tax. Others, like the conservative Heritage Action group, promote eliminating the federal gas tax altogether and letting states fund 100 percent of their transportation needs.

Clearly, a great divide. Like many divides, the failure to bridge this one is costly.

The American Society of Civil Engineers (ASCE) grades America’s infrastructure a D+ and estimates that American families and businesses are losing an estimated $101 billion a year in wasted time and fuel.

That same report estimates that driving on roads in need of repair costs Florida motorists $2.5 billion a year in extra vehicle repairs and operating costs. That’s $181.43 per motorist. ASCE rates 259 Florida bridges as structurally deficient and 1,785 as functionally obsolete. It estimates that Florida schools have $8.9 billion in infrastructure funding needs.

We must reach across political and philosophical divides to find solutions and build a fragile but needed consensus. These solutions are likely to include:

Greater latitude for states and local governments to enter into public-private partnerships to speed infrastructure projects with private funding.

Greater use of toll roads and toll lanes. This means we must defeat misguided efforts to tie decision-makers’ hands, such as a proposed Florida Constitutional amendment to prohibit new toll roads or toll increases without voter approval.

Greater use of transponder technology, such as SunPass, which ensures that drivers pay for roads as they use them.

And a long-term transportation funding bill funded by a continued and increased federal gas tax — at least as a transitory source, possibly paired with incentives to spur more innovative, technology-reliant funding solutions.

As with other great divides, success comes when we refuse to accept failure as an option. We need our leaders in Washington to find their political determination and apply that kind of resolve to this problem, quickly.

 

Walter Elias Disney: Transportation Visionary and Urban Planner

“I don’t believe there’s a challenge anywhere in the world that’s more important to people everywhere than finding solutions to the problems of our cities. But where do we begin… how do we start answering this great challenge?” -Walt Disney

EPCOT, or the Experimental Prototype Community of Tomorrow, began as Walt Disney’s idea of creating a better city. A utopian environment enriched in education, and in expanding technology. A perfect city with dependable public transportation, a soaring civic center covered by an all-weather dome, and model factories concealed in green belts that were readily accessible to workers housed in idyllic suburban subdivisions nearby.

The idea of having a perfect city was one of Walt Disney’s last projects. Before his death, in late 1966, Walt had bought up thousands of acres in central Florida, for an East Coast Disneyland, Walt Disney World. But all this was leading up to Walt’s true vision, a city without dirt, without grime, an experimental prototype city.

This idea of a perfect environment actually formed in Walt’s mind way before the actual thought of EPCOT. Disneyland is a perfect example. Its 25 foot Earthen Berm protects it from the outside world. With clean streets, and walkways, Disneyland was Walt’s first idea to have a better city, not like the 1950’s Los Angeles where Walt worked and lived.

Plans for the Florida Project, “Project X,” were being designed in a special room at the Disney Studios. This “Florida Room” had high ceilings and padded walls for pinning up plans. This room is where master plans were created for EPCOT, as well as Walt Disney World.

“EPCOT,” is an acronym for Experimental Prototype Community of Tomorrow. WED Designer Marvin Davis said Walt created the phrase, he thought it was just right.

Shortly before Walt’s death, he made a film showcasing this new city. Before the filming he gave his presentation to a few friends, and afterwards asked “does this sound like a city you’d want to live in?” In the final product the EPCOT movie was a model for solving “today’s city problems . . . through proper master planning.” The movie continued, although, the city on the film was just a set, with a series of maps and charts. With a strong rhetorical image of wholeness, harmony, safety, and underlying order.

Unfortunately the EPCOT Walt Disney envisioned was never created. Walt Disney died of lung cancer at the hospital across the street from his studio. Work on EPCOT continued with fresh intensity. Although, the team would have to rely on the past thoughts from Walt; before Walt would come into the Florida room 2-3 times a week, bringing fresh ideas, and new excitement to the bunch. Marvin Davis recalls how “he designed the whole traffic flow around EPCOT on a little napkin.”

Roy Disney, Walt’s brother, was troubled by the thought of building a city. What did a Movie Studio know about water lines, power cables, sewer systems, and municipal government? When Marvin Davis presented his plans to Roy, they met with a sad, simple, answer. “Marvin,” Roy Disney spoke, “Walt’s dead.” So was the city known as EPCOT. So, plans then were shifted, first, to a Disneyland East- Magic Kingdom Park- a taller, and bigger park. Then a series of hotels, located on the edge of the property, to keep out unwanted intrusions.

Even though Walt’s dream of an Experimental Prototype Community of Tomorrow was never developed, a World’s Fair type EPCOT does now exist. Although, a city truly new and experimental was designed, and is located on the Disney World Property, Celebration Florida is where remnant of EPCOT now resides. One wonders, what if Walt lived longer, would there have been an EPCOT? This question is inevitably unanswerable.

Walt Disney’s Vision of an EPCOT