TRANSPORTATION ISSUE PAPER December 29, 2015 Victor M. Boyer President/CEO San Antonio Mobility Coalition, Inc.

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1 TRANSPORTATION ISSUE PAPER December 29, 2015 Victor M. Boyer President/CEO San Antonio Mobility Coalition, Inc. FEDERAL SURFACE TRANSPORTATION REAUTHORIZATION REQUEST: Support action by Congress to provide long-term sustainable funding for investment in the expansion, upgrade, and replacement of our nation s transit, highway, and rail infrastructure. With the nation s economic competitiveness, quality of life, and energy independence at stake, we urge Congress and the Administration to approve a multi-year surface transportation reauthorization bill that will: Increase funding by raising the federal fuels tax by ten cents per gallon Reduce disparities between donor and non-donor states Expedite environmental processes Reauthorize/expand the Transportation Infrastructure Finance and Innovation Act (TIFIA) program Reauthorize/expand the Transportation Investment for Generating Economic Recovery (TIGER) Grant program BACKGROUND: Moving Ahead for Progress in the 21 st Century Act or MAP-21 the federal transportation reauthorization bill was passed by Congress in 2012, but only given a two-year life to September 30, A short-term extension through May 2015 was approved by Congress in August The MAP-21 surface transportation reauthorization made major changes to the federal highway, transit, and safety programs administered by the United States Department of Transportation. Key provisions of MAP-21 at the time of passage included: a drawdown of the remaining Highway Trust Fund (HTF) balance to zero with $12 billion in additional funding, essentially maintaining the 2012 level of funding plus inflation. The bill also eliminated earmarks, expanded funding for the TIFIA program to $1 billion, encouraged establishment of state infrastructure banks, and provided greater flexibility for states with regard to use of funding for various transportation enhancement programs. A six-year surface transportation measure would require approximately $330 billion to maintain current (FY 2014) spending levels. Projected Trust Fund revenue and interest over the same period are projected by the Congressional Budget Office to bring in only $230 billion, leaving an unfunded gap of about $100 billion. In recent years, reductions in federal spending for transportation and rescissions of previous spending authority have caused state and local transportation officials to make significant cutbacks in planned projects for the next decade and beyond. For example, in December 2009 the San Antonio-Bexar County MPO eliminated 51 highway projects totaling $3.2 billion from their transportation plan. The eliminated projects included future expansion of IH 410 and Loop 1604 on the east, west, and south sides of San Antonio, as well as future improvements on Bandera Road. The San Antonio region currently has a total of a least $26 billion in identified, unfunded transportation projects (both highway and transit) while the three-county MPO population is expected

2 projected to grow from 1.99 to 3.40 million by 2040 likely resulting in much higher levels of congestion than have previously been experienced in the region. ISSUE: As part of reauthorization, continuation and/or expansion of the Department of Transportation s (DOT) Transportation Investment Generating Economic Recovery (TIGER) and the Transportation Infrastructure Finance and Innovation Act (TIFIA) programs will likely be considered. Since 2009, the DOT has awarded TIGER discretionary grants on a competitive basis for projects that will have a significant impact on the nation, a metropolitan area or region. The TIGER program has provided valuable assistance to communities such as San Antonio that are moving forward with multi-modal transportation projects. Similarly, the TIFIA program provides various forms of credit assistance (direct loans, a line of credit, and/or a loan guarantees) for large-scale, surface transportation projects, including highway, transit, railroad, intermodal freight, and port access. The TIFIA program is designed to fill market gaps and leverage substantial private co-investment by providing supplemental and subordinate capital. In San Antonio, TIFIA funding is a potential financial component related to future added capacity projects (managed lanes) along US 281, IH 10, IH 35, Loop 1604, and other potential corridors. This committee is seeking support from the San Antonio and Texas delegations. The benefit of greater investment levels in our nation s transportation infrastructure will create jobs, promote economic competitiveness, improve air quality, enhance safety, and improve the quality of life for our nation s growing urban areas. Maintaining a positive balance in the Highway Trust Fund will enable the federal government to meet its transportation funding commitments and prevent additional reductions in funding to the states.

3 TRANSPORTATION ISSUE PAPER Alison M. Schulze Senior Planner LONE STAR RAIL DISTRICT LONE STAR RAIL DISTRICT REQUEST: Secure funding for the Projects of National and Regional Significance program at a level not less than in MAP-21 ($500 million) for each year of the new authorization. BACKGROUND: Lone Star Rail District (LSRD) submitted an application in 2013 for funding from Projects of National and Regional Significance, a federal program reauthorized in MAP-21. However, no funds were appropriated. The program would have funded critical high-cost surface infrastructure projects that are difficult to complete with existing federal, state, local and private funds. Qualifying projects, which would include LSRD s freight relocation project, must generate national economic benefits that exceed their cost and increase global competitiveness; reduce long-term congestion and increase speed, reliability and accessibility of the movement of people and freight; improve transportation safety; and improve roadways vital to national energy security. If the program is reauthorized and funds appropriated, LSRD intends to submit an application for $50 million for preliminary engineering and design work on the freight bypass. The freight bypass project includes 80 miles of new freight rail line in an alignment to be determined from Taylor to Seguin. The bypass will connect to existing freight lines in Taylor and Seguin, allowing 80% of the freight traffic on the existing line between Austin and San Antonio to be moved out of the urban cores of the communities along I-35. Although local freight will remain on the existing mainline, the relocation of through-freight operations to a new freight corridor will enhance freight mobility due to higher velocity and capacity, divert truck freight traffic from I-35 to rail, and ensure continued operational efficiency of the national and regional trade network. An additional benefit of relocating freight service is the creation of capacity on the existing freight line for regional passenger rail service between the San Antonio and Austin metropolitan areas. PROJECT DESCRIPTION: LSRD is spearheading a vital rail initiative in Central and South Texas: Relocation of Union Pacific s through freight to a new freight corridor, and Implementation of passenger service on the existing UP line between San Antonio and Austin once the through-freight traffic is moved. In October 2010, LSRD and Union Pacific executed a Memorandum of Understanding to study the feasibility of relocating UP s through freight to a new urban bypass. Once an appropriate route is identified, UP will consider moving it s through freight which makes up the bulk of the current traffic to the new line in exchange for title to the existing freight line. Toward that end, LSRD, in partnership with UP, completed an analysis of alternative alignments, the initial study in the freight rail relocation effort and an essential step in expediting the federal environmental process.

4 In 2014, the Federal Highway Administration (FHWA), in cooperation with the Texas Dept. of Transportation (TxDOT) and LSRD began preparing an environmental impact statement (EIS) on the Lone Star Regional Rail Project. The project includes two elements: introduce passenger rail service in the existing UP freight corridor between the San Antonio and Austin metro areas, and construct a new freight corridor between Seguin and Taylor to run freight trains displaced by the passenger service. ISSUE: The passenger rail element of the project is a key mobility initiative in Central and South Texas to help alleviate the congestion and safety problems on I-35 due to extraordinary population growth and increased NAFTA traffic. The regional passenger rail project (adopted by the San Antonio and Austin MPOs in 2005) is a 118-mile passenger rail system located in the existing Union Pacific rail corridor for most its length. At least 16 stations are currently planned along the route, which is anchored by the Austin and San Antonio metropolitan areas with additional stations in Schertz, New Braunfels, San Marcos, Kyle, Buda, Round Rock and Georgetown. The intercity passenger rail operation will provide travel times competitive with, if not faster than, travel by automobile. Additionally, the intercity passenger rail element will be the backbone that connects and unites the Austin-San Antonio region s high-capacity transit systems in a seamless and integrated regional network. The capital cost of the passenger rail project is estimated at $700 million for initial service with an annual operating and maintenance (O&M) cost of $30 million to be paid by the local jurisdictions. The capital cost for full build-out is $1.4 billion with an annual O&M cost of $96 million. The capital cost of the freight bypass is $1.3 billion; Union Pacific will be responsible for maintaining it. Significant technical studies have been completed on both elements of the project. A comprehensive business plan is essentially complete and completion of the finance plan is expected in the near term. RECENT MILESTONES AND ACCOMPLISHMENTS: Awarded $20 million from the Alamo Area MPO for passenger rail final design and capital costs. Awarded $20 million from the Capital Area MPO for environmental clearance and preliminary engineering on the combined passenger rail/freight rail bypass project. Launched the federal environmental process on the Lone Star Regional Rail Project, with FHWA serving as lead federal agency. Published the Notice of Intent in the Federal Register in October 2014, which formally kicked off the EIS. Executed interlocal agreements with the City of Austin, the City of San Marcos, and Austin Community College District to fund annual operations and maintenance (O&M) costs of the regional passenger rail project. Similar agreements with the cities of San Antonio, Schertz, New Braunfels, Kyle, and Georgetown are in progress. State Legislature approved $182 million for the State Rail Relocation and Improvement Fund for the biennium (subject to certification by State Comptroller). Executed Memorandum of Understanding (MOU) with Union Pacific to study relocation of through freight to new alignment and allow passenger service on existing UP rail line. Conducted meetings with UP executive-level staff on rerouting and exchange of existing right-of-way. Secured $50 million in State appropriations bill for matching dollars on federal rail relocation funds.

5 Executed Memorandum of Understanding with North Central Texas Council of Governments to collaborate on long-range rail planning efforts between Dallas-Ft. Worth and Austin-San Antonio metropolitan areas to ensure system connectivity. CONGRESSIONAL SUPPORT: Requesting support from U.S. Senators John Cornyn and Ted Cruz and all members of the Bexar County Congressional Delegation. BENEFITS: Implementation of the regional passenger rail/freight rail relocation project will: Enhance regional mobility of people and goods Improve public safety in the I-35 corridor Provide a predictable, reliable travel choice Reduce I-35 traffic, passenger and freight, resulting in reduced highway maintenance expenditures Create an integrated, seamless, regional multi-modal transportation system Create jobs and economic development opportunities Enhance freight mobility with new higher velocity, higher capacity corridor Reduce volume of slow, 2-mile long freight trains through town centers Reduce number of highway-rail at-grade crossings in the corridor Maintain air quality status (Austin and San Antonio both near-non-attainment areas)

6 TRANSPORTATION ISSUE PAPER Jeff Coyle Director of Intergovernmental Relations City of San Antonio San Antonio International Airport Legislative Issues REQUEST: In the FAA reauthorization bill in 2015, support passage of the Federal Aviation Administration (FAA) Reauthorization Bill to maintain funding levels for the Airport Improvement Program (AIP), modernize the Passenger Facility Charge (PFC), and support increasing opportunities for non-stop service to Reagan National Airport. BACKGROUND: The Airport Improvement Program provides grants to airports for the capital needs of airport infrastructure. Eligible projects include enhancing safety, security and capacity, and environmental programs including noise mitigation. San Antonio International Airport will pursue AIP entitlement and discretionary grant funding for continuing airfield upgrades to improve safety, enhance operations and to maintain the existing infrastructure. Airfield improvements through 2020 is planned at $130 million with $21 million budgeted in FY The major components of these improvements include the reconstruction of runways with new and rehabilitated taxiways. In 1990 Congress authorized the Passenger Facility Charge to fund airport projects for safety, security and capacity projects. PFCs have funded $50 billion in airport capital investments for new terminals and runways. In 2000 Congress established the current PFC of $4.50. Over the ensuing 15 years construction cost inflation has stripped the PFC value in half. The adjusted PFC value (1990 to 2015) is $9.85. The Chamber supports legislation to maintain or increase the AIP funding to allow greater flexibility to airports to maintain their infrastructure requirements. The Chamber also supports modernizing the Passenger Facility Charge from $4.50 to $8.50 as part of the FAA Reauthorization. In addition, the Chamber supports providing indexing of the PFC to keep pace with inflation. ISSUE: Non-Stop Service to Ronald Reagan Washington National Airport (DCA). Nonstop flights into and out of DCA are not allowed to exceed 1,250 miles (Perimeter Rule). Over the years Congress, as part of the reauthorization process, has approved a total of 40 exemptions to the perimeter rule to promote competition and provide nonstop access at DCA to major markets in the western United States. San Antonio (1380 miles from DCA) is currently the largest medium hub airport outside of the perimeter not to have nonstop service to DCA. The Chamber supports efforts to add extra beyond the perimeter slots with the intention of working with the airlines to provide non-stop service between SAT and DCA. In addition to expanding the number of beyond the perimeter slots, the Chamber supports legislation to extend the Perimeter Rule from 1,250 miles to 1,750 miles. An extension of the DCA Perimeter to 1,750 miles would allow airlines to serve SAT non-stop with existing inside the perimeter slots, thus increasing the opportunity for San Antonio to convince an airline to launch non-stop service to DCA.

7 TRANSPORTATION ISSUE PAPER Charles A. Gonzalez Chief of Public Engagement VIA Metropolitan Transit SUPPORT TIGER 2015 REQUEST: Support TIGER 2015, Small Starts/New Starts and other federal funding grant opportunities that further the development of public transportation and/or multi-modal projects. Continue to support federal funding opportunities that advance public transportation and/or other multi-modal projects for the San Antonio/Bexar County region. BACKGROUND: VIA is an important area partner with a regional mission to advance transportation choices for the many communities we serve. VIA provides 44 million rides a year in our 1,250 mile service area. We are recognized amongst our peers for efficiency, use of alternative fuel technologies, safety and we tout our nationally recognized award winning maintenance teams. To better serve our riders, VIA programmed a 4% service increase in 2015 without raising fares. ISSUE: These efforts are part of the SmartMove program, which is the initial implementation of the Long Range Comprehensive Transportation Plan (LRCTP). This plan outlines specific corridor improvements, transit technologies, timelines, and connectivity through Efficient transit service is vital to the community s quality of life and economic competitiveness. This is especially true as the region continues to sustain its growth projections over the next 25 years. Thus, VIA is working in close collaboration with our community colleagues as part of the City of San Antonio s Comprehensive Plan and Strategic Multimodal Plan. At the same time, VIA is pursuing a slate of projects to be completed within the next five years. These projects include: WEST SAN ANTONIO VIA Villa The VIA Villa is the new home for VIA s headquarters at the Grand, a historic train station. Across the street is the Centro Plaza, where several modes of transportation gather. The Plaza services will increase mobility and encourage transit-oriented development. The area immediately around the Villa is significant, as it is the gateway to a cultural corridor leading to San Antonio s West Side. State Highway 151/Loop 1604 Park & Ride The VIA Board of Trustees committed $8 million towards this project in response to tremendous growth, as increased congestion levels and demand for additional transportation options prompt the need for more public transportation.

8 EAST SAN ANTONIO Robert Thompson Transit Center/ Ellis Alley Structures The Robert Thompson Transit Station is an existing special event facility adjacent to the Alamodome complex. VIA is working to enhance the facility to provide improved amenities and connectivity with local neighborhoods, businesses, and HemisFair Park. The new Robert Thompson Transit Center will strengthen the transportation infrastructure and invigorate the nearby community of San Antonio s Eastside. The project also includes the opportunity for public/private partnerships in transitoriented development. The nearby Ellis Alley area was first settled by freedman and other African-Americans in the years following the Civil War, and it served as the seed from which the East Side grew. VIA maintains an information center in the enclave, which was formed by linking homes together and refurbishing them to preserve their historic nature. VIA recently finished restoration of the other units at Ellis Alley and will lease them to transit-oriented community businesses. NORTH SAN ANTONIO US-281North Park & Ride A new transit facility on U.S. Highway 281 North will facilitate connections to current and future routes and activity centers. The initial phase includes construction of a four story garage supporting park-and-ride service with a direct connector to as future managed lane project in US-281, to be followed by further expansions that will provide opportunities for public/private partnerships. IH-10/Loop 1604 Park & Ride The VIA Board of Trustees have committed to the construction of a park-and-ride facility on IH-10 West outside Loop This facility will serve as the collector for commuters coming from outlying cities in nearby counties. SOUTH SAN ANTONIO Brooks City Base Park & Ride VIA is working towards the construction of a full-fledged transit center in the vicinity of Brooks City- Base. The facility will accommodate a critical mass of bus activity to allow patrons to make transfers more easily. This will provide the burgeoning region with more travel options and for greater comfort and conveniences for riders. The new transit center would seek opportunities for joint development and transit supportive development, and is being developed in partnership with the Brooks Development Authority. SOUTH/WEST SAN ANTONIO CORRIDOR Bus Rapid Transit (BRT) The VIA Board of Trustees have committed over $50 million for the development of a BRT corridor to serve this high-transit use area of the city. The BRT would connect the planned Brooks City Base Transit Center to Port San Antonio, and then extend northward to the South Texas Medical Center Transit Center.

9 2015 CAPITAL PLAN Amenities One thousand new structures will be added as part of our programming. The modules include seating, shelter, lighting, route information displays, and real-time bus arrival displays. Bus/Paratransit Fleet Over the next five years, VIA will replace 323 buses 293 regular, 40-foot-long buses and 30 articulated, 60-foot-long buses, similar to the ones used on VIA Primo. VIA recently replaced its fleet of VIAtrans, paratransit vans with state-of-the-art propane powered vehicles. Through innovative preventive maintenance efforts, our in-house maintenance team has been able to add years to the service life of our bus fleet. Our average bus already exceeded federal standards for bus replacement. VIA s maintenance competitive teams are recognized at the state and national levels for excellence. HIGH TECHNOLOGICAL INITIATIVES Go VIA VIA App This free downloadable app, named Go VIA VIA is a mobile application available for smartphones. It is designed to provide easy access for many of the features available on VIA s website. It provides access to core rider tools, such as real-time bus arrival feature, trip planning, system maps, and information on fares and passes. Internal research indicates that nearly 50% of our patrons have smartphones. SMS Texting for Real Time Arrivals VIA provides a system-wide texting feature that allows patrons to get real-time bus arrival information through their mobile devices. By texting any VIA bus stop number to 52020, riders can find out when the bus will arrive. This information can also be obtained by sending an to nextbus@viainfo.net with the bus stop number in the subject line. Automated Fare Collection System With new fare boxes installed throughout the bus fleet, VIA s E-fare system will provide customers with the capability to introduce state-of-the-art technologies for smartcard use, online account management, ticket vending machines, mobile ticketing and other conveniences. Free WiFi Access for Patrons VIA provides free internet access on our express routes, at our information centers and in our Primo vehicles.