Guidebook for Integrating Freight into Transportation Planning and Project Selection Processes (2007)

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4.1 Introduction Although no single set of guidelines can meet the unique freight planning and programming needs of each state and MPO, several practices, processes, and procedures are hallmarks of com- prehensive and continuous freight planning programs. This section provides a mix of strategies that can help effectively integrate freight into existing transportation planning and program- ming processes. The activities described in this section are organized around the four individual phases of the transportation planning process (described in Section 2). Specific guidance is provided for 11 freight planning, programming, and project development activities, which correspond to one of the four planning process phases. These activities are listed below and described in detail later in this section. • Needs Identification Strategies – Developing a Freight and Industry Profile – Engaging the Private Sector in the Needs Identification Process – Conducting a Hotspot or Bottleneck Analysis • Plan Development Strategies – Identifying Corridors and Facilities of Statewide or Regional Significance – Developing Freight Performance Measures – Linking Freight and Land Use Planning • Programming Strategies – Developing Freight-Specific Evaluation Criteria – Evaluating Economic and Other Public Benefits of Freight Improvement Projects – Using Alternative Funding and Financing Approaches • Project Development Strategies – Addressing NEPA Requirements within Freight Projects – Incorporating Context-Sensitive Solutions (CSS) into Freight Projects Each activity or technique is organized around five elements: 1. Overview. This section provides a brief description of the strategy and its importance. 2. Key Steps. This section describes specific steps necessary to accomplish the activity. 3. Data Needs and Other Supporting Resources. This section will refer you to the types of freight data needed to conduct the activity. In addition, other supporting resources, such as training opportunities or other guidebooks, will be listed. Specific details and availability of these data and supporting resources are described in Section 5 (Freight Resource Tool Box). 4. Case Study Example. The guidance provided in this section is supported with case study vignettes from actual practices of states and MPOs. These case study examples are effective 21 S E C T I O N 4 Techniques for Integrating Freight within the Transportation Planning and Programming Process

ways to demonstrate how freight planning and programming concepts are being used in the field. Fully developed best practice case studies are provided in Section 5 (Freight Resource Tool Box). 5. Strategies to Link to the “Traditional” Process. One of the keys to a successful, continu- ous freight planning program is to link it to the existing transportation planning and programming process. This section provides specific strategies to link the freight planning activity described with the “traditional” transportation planning, and programming process. Consistently employing these strategies will allow a traditional transportation planning and programming process to evolve into one that fully incorporates freight issues, allowing DOTs and MPOs to plan, program, and implement transportation improvements more comprehensively. Common Stumbling Points Prior to describing specific guidelines, it is helpful to review the four common stumbling points that often affect the ability of states and MPOs to implement the strategies described in this section. Individually or collectively, these stumbling points can prevent freight from being fully implemented within the traditional transportation planning and programming process, making it difficult for freight projects to compete in the setting of statewide or regional priori- ties and in the allocation of transportation resources. These common stumbling points are described below: • Limited Freight Data. Obtaining and analyzing freight-related data often presents a stum- bling point for freight planning and programming. Publicly available datasets, when used in isolation, often do not provide sufficient detail to conduct meaningful freight planning activ- ities at the state or metropolitan levels; privately maintained freight databases are often costly to acquire and analyze. Unlike other transportation program elements, freight-related data often have not been fully integrated into ongoing data collection programs. Limited data can make it difficult for states and MPOs to fully understand freight trends and issues as well as the potential costs and benefits of freight improvement projects. In addition, although some agencies collect truck counts or conduct freight surveys, combining these sources to support transportation planning activities effectively can be challenging. • Limited Private-Sector Participation. Establishing and maintaining relationships with the private sector, while critical to the success of a statewide or metropolitan freight planning pro- gram, can be difficult. Many elements make up the “private-sector freight industry,” includ- ing shippers/receivers, carriers, logistics providers, and others, and it can be challenging to effectively engage this diverse group. The private sector plans over a much shorter time horizon than the public sector and can quickly grow impatient with the public process. In addition, the private sector may be concerned about potential release of proprietary informa- tion if it participates in public processes. • Limited Freight Expertise within an Organization. While most state and metropolitan transportation planners hold advanced degrees in transportation or planning, few have for- mal training in freight planning, and few transportation decisionmakers fully appreciate the complexity of national and international freight movements and their associated statewide or local effects. This is compounded by an agile private-sector freight community that reacts and responds to market and logistics trends and innovations quickly. The limited freight expert- ise that exists within many transportation planning organizations can make it difficult to engage the private-sector freight community, identify freight needs and deficiencies, and plan and implement solutions. • Limited Institutional Support for Freight Planning. In some DOTs and MPOs, there remains some institutional resistance to spend time and resources on conducting freight planning activities and/or implementing freight improvement projects. There are very few 22 Guidebook for Integrating Freight into Transportation Planning and Project Selection Processes

examples of funding resources that are expressly dedicated to conducting freight planning activities. Rather, freight-related activities must fit within existing programs and responsibil- ities. Because this often involves the reallocation of existing staff and funding resources, build- ing support among key transportation decisionmakers is critical to moving freight-specific projects forward. Limited funding resources are also a stumbling point to private-sector participation: it can be difficult to keep the private-sector freight community engaged if funds to implement improvement projects do not exist. To better understand how these common stumbling points affect the freight planning and pro- gramming activities described below, a summary table is provided at the beginning of each section. This table provides a brief snapshot of the relative importance of data, private-sector involvement, freight expertise, and institutional support to the development and implementation of the strategy described. This information, combined with the results of the freight planning and programming self-assessment included in Section 3, will allow you to select the mix of freight planning and programming strategies that best meets your needs. Data, training opportunities, and other resources to address these common stumbling points are provided in Section 5. 4.2 Needs Identification Strategies The identification of freight needs and deficiencies identifies gaps between existing freight sys- tem conditions and capabilities and the projected freight transportation needs for an area. This is a critical element of a statewide or metropolitan transportation planning program, because it feeds the identification, development, and implementation of improvement projects. Several strategies have proven effective in identifying freight-related needs and deficiencies, as described in Table 4-1 and below. Overview Freight and industry profiles are good ways to develop a better understanding of the industry, transportation, and socioeconomic characteristics of a state or region and are often effective first Techniques for Integrating Freight within the Transportation Planning and Programming Process 23 Needs Identification Strategies Data Private Sector Freight Expertise Institutional Support Developing a Freight/Industry Profile Engaging the Private Sector in the Needs Identification Process Conducting a Hotspot or Bottleneck Analysis Key: Less Important More Important Table 4-1. Relative importance of common stumbling points to needs identification strategies. Data Private Sector Freight Expertise Institutional Support Developing a freight and industry profile.

steps in assessing freight transportation needs and deficiencies. Many states and MPOs around the country have completed stand-alone multimodal freight profiles or studies, the objectives of which are to define the significance of goods movement to the statewide or regional economies; identify existing and emerging industries that are most significantly affecting the freight trans- portation system; describe how industry logistics patterns affect the freight transportation system; and identify the key economic, trade, and supply chain trends that are influencing freight demand and freight movements. States and MPOs should conduct these profiles and studies in order to develop a more detailed understanding of the regional freight system, the type and volume of freight movements moving along that system, and the key issues affecting freight efficiency. Most important, states and MPOs should link the results of these efforts to the existing transportation planning and programming process by identifying specific freight-related projects or activities that can enter the project planning and programming pipeline, helping to mainstream freight issues within the process. The profile should be used to establish the foundation of an ongoing freight data collection and analysis program that supports the planning and programming processes. The following sections provide key steps, data sources and other resources, and related outreach activities for developing a freight and industry profile. Key Steps 1. Develop modal profiles. Summarize each of the freight modes operating within your region, focusing on physical extent and key capacity issues. As part of these modal profiles, key facil- ities (i.e., ports, rail yards, airports, distribution centers, and pipeline facilities) should also be identified. Supplement existing data with interviews with the owners, operators, and users of the system to develop an understanding of system performance. These modal profiles will allow you to develop an initial understanding of the location and severity of key network bottlenecks as they are perceived by system users. 2. Develop commodity flow summaries. Understanding commodity flows is critical to developing a freight profile—such understanding provides insight into the characteris- tics of the freight that is moving along the system. Commodity flow data are available from several public and private sources and should be analyzed to identify the following characteristics: – Overall volume and value of freight moving into, out of, within, and through the region; – Major domestic trade partners; – Key commodities moving into, out of, within, and through the region (by weight, trade lane, and value), including the flows of hazardous materials; and – Modal shares for freight moving into, out of, within, and through the region. 3. Identify Major and Emerging Industries. Review data from existing state, regional, and fed- eral sources describing the economic sectors of the state or regional economy, including historic trends and forecasts by industry sector. These kinds of data are also available from several public and private sources. This step will help you identify the existing and emerging industries that are driving your state or regional economy and its future growth. Involving local and regional economic development agencies and chamber of commerce organizations is also helpful to identify emerging interests and activities. 4. Describe the Importance of Transportation to These Key Industries. In addition to identifying major and emerging industries, it is crucial to understand how these indus- tries currently use the transportation system and the factors that will influence that use in the future. More precisely understanding how your existing transportation system facilitates or hinders freight movements associated with these industries will help you identify needs and deficiencies and appropriately respond to changing freight move- ments in the future. Conduct interviews with key shippers, manufacturers, and logistics 24 Guidebook for Integrating Freight into Transportation Planning and Project Selection Processes

professionals to understand system performance needs (e.g., importance of cost, veloc- ity, and reliability); modal usage patterns; growth prospects; and changing national/ international trade patterns. Data Needs and Other Supporting Resources • Modal Network data (see Table 5-1) • Commodity flow/Volume data (see Table 5-2) • Socioeconomic and Industry data (see Table 5-5) • Freight Stakeholder input (see Section 5) • Guidebook for Freight Policy, Planning, and Programming in Small- and Medium-Sized MPOs (NCHRP 8-47) (see Table 5-6) Case Study—Maine DOT Techniques for Integrating Freight within the Transportation Planning and Programming Process 25 The Maine DOT developed and regularly updates an Integrated Freight Plan (IFP) in coordination with the State’s 20-year, 6-year, and 2-year transportation plans. The DOT’s 20-year plan establishes goals, objectives, and strategies for the department; the 6-year plan is used in the State’s capital improvement planning and program- ming efforts and links the 20-year plan, which is policy-based, and the 2-year plan, which is project-based. As in many states, Maine’s 20-year, 6-year, and 2-year trans- portation plans have a heavy emphasis on traditional highway transportation, with freight issues and concerns receiving little attention. Completion of the IFP has allowed the Maine DOT to focus on critical freight policy and programming issues that affected the movement of freight statewide and provided strategic guidance to the Office of Freight Transportation in building their freight planning program. The IFP includes a freight and industry profile, which summarizes the State’s com- modity flows, key industries, freight transportation system and modes, and critical supply chains. Development of the IFP included both data analysis and outreach to the State’s freight transportation industry, business leaders, local governments, and other freight stakeholders. Outreach efforts were often the primary data collection tool used to develop and update the IFP. Data were collected from personal interviews with key public and private stakeholders and mail-in surveys sent to the State’s 340 largest manufacturers, Regional Transportation Advisory Committees, and government officials of municipalities with major transportation routes or facilities. These interviews and surveys allowed the State to collect important information while simultaneously building support for a statewide freight planning program among these stakeholders. Quantitative data were also used to supplement the information collected via the survey and interview process in order to develop a more comprehensive freight profile of the State. Commodity flow data for Maine were obtained from such sources as the Bureau of Transportation Statistics, the American Association of Port Authorities, the Association of American Railroads, the Vehicle Inventory and Use Survey, and other private sources. The result of the Maine IFP was a set of short-, medium-, and long-term recommendations for specific freight improvement projects and enhancements to Maine’s freight planning program. These recommendations were fed directly into the State’s existing 20-, 6-, and 2-year transportation plans.

Strategies to Link to the Traditional Process • Use the profile to help identify freight needs and deficiencies. The freight/industry profile will not be a needs and deficiencies analysis in and of itself. However, it is critical for feeding existing needs and deficiencies analyses already being developed by states and MPOs. Using the information included in the freight/industry profile to feed existing needs and deficiencies analyses can be an important way to incorporate freight issues into existing processes. • Develop a freight/industry profile in conjunction with long-range plans, modal plans, work programs, or similar activities. One way to effectively integrate freight issues into the trans- portation planning process is to conduct freight planning activities in conjunction with existing planning activities. As discussed in the case study example, the Maine DOT developed its IFP in conjunction with long-range plan updates. This ensured that needs and deficiencies identified as part of the IFP could feed directly into traditional transportation planning activities and doc- uments. Other strategies include linking the freight/industry profile with a transportation needs and deficiencies statement, including the freight/industry profile as a chapter within a long- range transportation plan, including specific freight/industry profiles within existing modal plans, or using the freight/industry profile as an input to the annual work program development process. Explicitly including freight-related activities, such as a freight/industry profile, as part of regularly conducted transportation planning activities will allow your process to evolve into one that fully incorporates freight issues as a matter of course. • Modify existing data collection program(s) to incorporate freight data. Completion of a freight/industry profile will provide an excellent starting point for the collection of freight- related data. To ensure that freight data are routinely collected, updated, and incorporated into existing planning processes, existing data collection programs should be modified to explicitly include freight data. 26 Guidebook for Integrating Freight into Transportation Planning and Project Selection Processes Data Private Sector Freight Expertise Institutional Support Overview An effective way to better understand freight needs and deficiencies and to begin to build rela- tionships with the private-sector freight community is to engage such stakeholders in the needs identification process. Many states and MPOs accomplish this by conducting in-person inter- views or listening sessions with key freight stakeholders. In other areas, state DOT or MPO staff have become involved in chamber of commerce activities. Because chambers of commerce represent the interests of local or statewide businesses and have strong relationships with the busi- ness and industry community, they typically have a deep understanding of how a local or statewide transportation system meets the needs of their members. Engaging chamber of commerce staff in needs identification has also proven to be an effective way to understand the transportation needs of the business community and translate those needs into potential projects for consideration in the statewide or metropolitan transportation planning process. States and MPOs should set aside staff time and budget within their annual work programs to ensure that these sessions occur regularly and can feed directly into other statewide and metropol- itan transportation planning and programming activities. These sessions, which should focus on identifying specific issues that affect freight operations, are useful ways to identify freight-specific improvements that otherwise would not have been considered in the transportation planning Engaging the private sector in the needs identification process.

pipeline. Even if projects identified in these sessions never make it to the programming or project development stages, these listening sessions are useful to states and MPOs because they allow tech- nical staff to better understand the transportation needs of key industries in their region and are effective ways to begin to develop a rapport with the private-sector freight community. Although the public sector is making a strong effort to learn the language and the logistics concepts that drive supply chain planning, the private sector may not understand the public transportation planning process and activities. As access and infrastructure issues begin to sur- face as key regional private-sector concerns it is important to help these stakeholders understand how to contribute to the process. Key Steps • Identify key freight stakeholders. Freight transportation stakeholders are a varied group that includes freight service providers (i.e., trucking companies, railroads, and logistics providers); businesses and industries that ship freight; freight, border, or gateway security agencies; and others. Identifying these freight stakeholders will be easier if a freight profile has been devel- oped. Other sources include chambers of commerce, statewide or local trucking or railroad associations, and even traffic clubs or similar public interest groups. • Attend freight industry events. Participating in industry events, such as trucking association meetings, chamber of commerce meetings, and other gatherings, can be an excellent way to meet freight transportation stakeholders and better understand their needs and issues. It can also be an excellent way to describe the public-sector transportation planning process and ways in which the private sector can participate. The private sector, in many areas, does not fully understand the process used by DOTs and MPOs to make transportation investment decisions. Participating in industry events—formally or informally—can often provide a two-way educational process. • Establish ongoing stakeholder outreach. An effective way to better understand freight needs and deficiencies and to begin to build relationships with the private-sector freight community is to conduct in-person interviews or listening sessions with key freight stakeholders. As described earlier, states and MPOs should set aside staff time and budget in their annual work programs to ensure that these sessions occur regularly and can feed directly into other statewide and metropolitan transportation planning and programming activities. These sessions can be useful in helping to understand the factors that will influence freight transportation and logistics patterns in the future. Data Needs and Other Supporting Resources • Freight stakeholder input (see Section 5) • Engaging the Private Sector in Freight Planning Workshop (see Table 5.7) Case Study—Toledo Metropolitan Area Council of Governments Techniques for Integrating Freight within the Transportation Planning and Programming Process 27 TMACOG, the MPO for the Toledo, Ohio, region, has developed a continuing process that allows it to identify freight transportation issues of the region through freight transportation listening sessions. These sessions are programmed annually into the MPO’s UPWP. Typically, the MPO tries to conduct four to five of these listening sessions per year (about one per quarter). The MPO has one staff member that sets up and conducts these sessions. The interviews focus on identi- fying freight-specific issues that affect the operations of the interviewee. (Continued)

Strategies to Link to the Traditional Process • Offer to make presentations to industry groups during long-range plan or TIP updates. As described earlier, the private-sector freight industry often does not fully understand the process used by DOTs and MPOs to make transportation investment decisions. Offering to make presentations to freight industry groups or associations during the long-range planning or TIP development process can help them understand the process while simultaneously par- ticipating in it. In fact, making presentations as part of regularly scheduled long-range trans- portation plan and TIP updates can itself be an effective, continuous private-sector outreach strategy. • Create a freight advisory committee. A full-fledged freight advisory committee is not always necessary, particularly if a state or MPO has already developed an effective private-sector freight outreach strategy and engages the private-sector community during the development of transportation plans, programs, and improvement projects. However, some DOTs and MPOs have found that creating a formal freight advisory committee makes it easier to engage the private-sector in the needs identification process (and other phases of the transportation planning and programming process). In addition, MPOs that have existing advisory commit- tees (e.g., bike/pedestrian, transit) should create a freight advisory committee with the same authority and input to the MPO Board as other committees enjoy. This will not only allow the MPO to receive freight-specific input on transportation plans, programs, and projects, but also to demonstrate commitment to freight planning by the organization. • Modify your existing public involvement process to include freight-specific outreach activ- ities. Each state DOT and MPO has a specific public outreach process through which to col- lect comments and feedback on proposed transportation plans, programs, and improve- ments. In many cases, these existing strategies do not meet the unique needs of the freight and business community. Developing freight-specific outreach activities, such as site visits to key industries, holding meetings at convenient times/locations for private-sector participants, and participating in industry events can have several important benefits. First, it allows states and MPOs to comply with SAFETEA-LU Sections 6001 and 6002, which require early engagement and coordination with freight and economic development agencies within the transportation planning process. Second, it allows states and MPOs to collect more comprehensive input on proposed transportation plans, programs, and improvements. Finally—and most importantly— it allows states and MPOs to develop relationships with the private-sector freight and business community and engage them more completely in the setting of statewide and metropolitan transportation priorities and investment strategies. 28 Guidebook for Integrating Freight into Transportation Planning and Project Selection Processes TMACOG prefers speaking with dispatchers because they tend to be more aware of the specific mobility issues affecting their day-to-day operations. While large is- sues are important, TMACOG finds out through these meetings if there are smaller problems they can easily address (“low-hanging fruit” such as signage, sig- nal, access, turning radii, and surface rideability). By taking care of these types of issues quickly, TMACOG earns the respect of the shippers/carriers and is better able to maintain long-term relationships that benefit future information gather- ing and planning. The MPO has successfully identified several projects as a result of these sessions, including the rehabilitation of an access road to a major chemical manufacturer. It is unlikely that this (or other improvements) would have been included in the TIP had it not been identified as part of these sessions.

Techniques for Integrating Freight within the Transportation Planning and Programming Process 29 Data Private Sector Freight Expertise Institutional Support Overview An effective way that states and MPOs can get a better sense of freight needs and deficiencies is to conduct a freight “hotspot” analysis. The purpose of a hotspot analysis is to identify locations, intersections, or grade crossings that may need safety or operational improvements. In many cases, hotspot analyses can be conducted using data already collected by state, metropolitan, or local agencies. Crash data, for example, can be mapped against the freight transportation system in order to identify high-crash intersections for trucks. Intersection studies can then be conducted at these locations to determine how well these intersections meet the needs of freight movements and to identify potential solutions (e.g., turning radii improvements and signal re-timings) that would improve the safety and efficiency of these areas. Similarly, grade crossing or highway level-of- service information can be used to identify areas that may have other safety, congestion, or oper- ational concerns. Finally, interviews with railroads and rail shippers can help identify key rail bot- tlenecks. Conducting a freight hotspot analysis provides a low-cost way to identify potential freight needs and deficiencies for consideration in the transportation planning and programming process. Key Steps • Identify and collect data. As discussed above, various data sources can be used as part of a freight hotspot or bottleneck analysis. Much of the data needed to describe your freight sys- tem, such as transportation infrastructure, modal profiles, and commodity flows, may have already been collected and analyzed as part of a freight/industry profile. These data can be supplemented with other data, including – Safety data. Crash data are often available from the state or local police, State Motor Vehi- cle Divisions, or Divisions of Public Safety. These data can be useful in identifying high- crash locations for commercial vehicles or dangerous at-grade crossings. – Land use data. Land use data can be useful to identify current and future locations of freight facilities, such as rail yards, industrial parks, or distribution centers. – Incident data. Some states and MPOs have developed programs to track highway inci- dents, looking at incident duration time, incident response time, and incident clearance time. Data available from these programs can help identify high-incident locations for commercial vehicles. – Travel time data. Truck volumes and roadway level-of-service data are useful to identify congested corridors for truck movements and to identify peak periods for commercial vehicle traffic. • Supplement data collection efforts with interviews. It is also important to supplement the data collection and analysis with interviews of key freight stakeholders in both the public and private sectors. Private-sector freight and industry leaders should be interviewed to get their perspectives on key chokepoints and hotspots and it is important to interview stakeholders who have a broad perspective (i.e., strategic planning staff) as well as an operational perspective (i.e., staff at railroad yards or distribution centers). Collecting information from both types of groups can help planning practitioners understand local as well as statewide and regional operations and bottlenecks. In addition, state and local “implementing agencies” should also be engaged in the process, because they often have a better understanding of local travel patterns, operational strategies (e.g., truck routes), and the specific locations and implications of freight hotspots in Conducting a hotspot or bottleneck analysis.

As part of its Freight and Goods Movement Study in 2002, the Broward County MPO used existing data and tools to better understand land use and development patterns, safety issues, and key freight-related hotspots and bottlenecks. Using their regions. For example, state DOTs should interview lead engineers or planners at their dis- trict offices (or equivalent). MPOs should engage local public works officials or county-level engineers or planners. Engaging these public-sector stakeholders has two key benefits. First, it allows for a deeper understanding of the specific locations and implications of freight hotspots and bottlenecks and can help in identifying solutions or mitigation strategies to improve freight mobility. Second, it helps these local/district agencies better incorporate freight issues into their own processes, which can help improve freight mobility regionwide. • Map results using a Geographic Information System (GIS). GIS maps provide an effective way to show the location of freight hotspots and bottlenecks, how they relate to key land uses in a region, and how they may be affecting freight and passenger mobility. GIS maps can also be useful when engaging public- and private-sector stakeholders, because they can help target discussions on key issues and problem locations. Data Needs and Other Supporting Resources • Modal Network data (see Table 5-1) • Commodity flow/Volume data (see Table 5-2) • Freight Stakeholder input (see Section 5) • Freight Data Made Simple Workshop (see Table 5-7) Case Study—Broward County MPO 30 Guidebook for Integrating Freight into Transportation Planning and Project Selection Processes (Continued)

Strategies to Link to the Traditional Process • Use the hotspot/bottleneck analysis to help identify freight needs and deficiencies. Like the freight/industry profile discussed earlier, the hotspot/bottleneck analysis can be used for feeding existing needs and deficiencies analyses already being developed by states and MPOs. Using the information included within the hotspot/bottleneck analysis to feed existing needs and deficiencies analyses can be an important way to incorporate freight issues into existing processes. • Link hotspot/bottleneck data collection efforts to existing data collection activities. Most states and MPOs have an ongoing data collection program, even if that program consists only of the collection of classification counts on area roadways. Before undertaking a hotspot/ bottleneck analysis, states and MPOs should identify their data needs and match those needs against available data to identify data gaps and potential data collection opportunities. Some states and MPOs may find that existing data from federal sources (e.g., CFS, STB Carload Waybill Sample, and Army Corps of Engineers Ports and Waterways data); or state sources (e.g., truck counts, agricultural shipment data, and safety data) are sufficient to meet their needs. Others may determine that a more detailed data collection program is required. In any case, the data collected as part of a hotspot/bottleneck analysis should be linked to existing data collection programs and collected and analyzed regularly. • Link hotspots and bottlenecks to specific industries and to statewide or regional mobility and economic development goals. Many states and MPOs have included freight- and eco- nomic development-related goals in their long-range transportation plans. By identifying key hotspots and bottlenecks on the transportation system and understanding how they relate to specific industries, a hotspot/bottleneck analysis can be an effective way to help determine how the transportation system is facilitating or hindering freight and passenger mobility and/or economic development efforts. Showing how freight movements are affecting the safety, efficiency, and mobility of passengers and goods can also be an effective way to build support for identifying freight needs and deficiencies as well as solutions. 4.3 Plan Development Strategies The plan development phase occurs after the transportation needs of an area are identified. The plan development process lays the groundwork for how a state or MPO incorporates freight interests and issues in its planning program. At the conclusion of the plan development stage, the area’s transportation vision and goals are described in a long-range transportation plan, as well as a list of funded and unfunded improvement projects that illustrate the agency’s future Techniques for Integrating Freight within the Transportation Planning and Programming Process 31 GIS, the MPO mapped freight-related data sources, including population (taken from the U.S. Census), land use patterns (taken from county and city sources), locations of high-crash locations for commercial vehicles (taken from the Department of Highway Safety and Motor Vehicles), and truck volumes and delay (taken from traffic counts). A series of maps were developed to highlight critical bottlenecks for freight-related traffic, both current and future. The below figure shows truck volumes plotted over truck trips generated at the traffic analysis zone (TAZ) level. The use of existing data and the MPO’s existing GIS helped MPO staff understand the effects of freight movements on populations, land use, and safety, and were critical in identifying freight needs and deficiencies.

32 Guidebook for Integrating Freight into Transportation Planning and Project Selection Processes Data Private Sector Freight Expertise Institutional Support Identifying Corridors and Facilities of Statewide or Regional Significance Developing Freight Performance Measures Linking Freight and Land Use Planning Needs Identification Strategies Data Private Sector Freight Expertise Institutional Support Key: Less Important More Important Table 4-2. Relative importance of common stumbling points to plan development strategies. Identifying corridors and facilities of statewide or regional significance. build out plans. Several strategies have proven effective in integrating freight issues in long-range planning activities, as described in Table 4-2 and below. Overview One way to more effectively link long-range goals with nearer term actions is to define key freight corridors and facilities that contribute to statewide or regional economic competitive- ness, mobility, or quality of life. Identifying key freight corridors and facilities within a long- range planning document can have several important benefits. First, it can provide structure and focus to a freight planning program, particularly at a statewide level, by allowing states and MPOs to focus potential investments on those corridors and facilities that have the greatest effect on economic competitiveness, mobility, or quality of life. While specific projects need not be identified, defining key freight corridors and outlining specific objectives for those corridors (e.g., improve access to port/intermodal facilities, implement ITS technologies to improve flow, and improve access to highway facilities to spur economic development) can improve the abil- ity of states and MPOs to identify freight-specific projects and help ensure that those projects are consistent with statewide or regional goals. In addition, identifying key freight corridors and facilities can help emphasize freight’s impor- tance to regional economies and regional mobility, both within a state and among different states and jurisdictions. This information, in turn, can be used to develop advocates or champions for freight planning and project development within agencies and among other constituencies, help- ing to propel statewide or metropolitan freight planning efforts. Key Steps • Gather freight stakeholders. Freight and industry stakeholders, as the primary users of the freight transportation system, should be heavily involved in identifying key freight facilities and corridors. This is an excellent exercise for a freight advisory committee (or similar group),

if one exists within the organization. Some states and MPOs without formal freight advisory committees have created ad hoc freight committees to guide the process. • Define criteria for freight facilities and corridors. The freight stakeholders group should as- sist in developing quantifiable, flexible criteria to guide the identification of key freight corri- dors and facilities. Criteria should be defined to be consistent with an existing data collection plan. In addition, these criteria would have the following characteristics: – Criteria should be quantifiable. Data such as tons of freight carried, passenger trips made, or total airport/seaport cargo throughput are useful for determining the contribution of specific transportation facilities to overall statewide or metropolitan freight mobility or economic vitality. Quantifiable data are also useful in supporting objective, performance- based planning processes. – Multiple types of criteria should be used. No single measure can be used to completely describe the strategic importance of an individual transportation mode, network, or fa- cility, as many facilities and networks fill critical niches in an overall statewide or metropolitan transportation system. There are several elements that, taken together, can describe a transportation system, including: facilities, services, and centers. Transporta- tion facilities describe the physical features and extent of the freight transportation system. Services describe the degree to which segments of the transportation system serve freight mobility needs. These include the operational characteristics of a trans- portation system and can be measured in terms of level of service, accessibility, and intermodal connectivity. Finally, centers describe the location and activity at major trip generation sites along the transportation system. These sites, such as manufacturing plants, distribution centers, ports, or intermodal freight terminals, are points at which significant freight traffic originates or terminates. To ensure that the full strategic importance of each segment of the transportation system can be accurately assessed, different sets of criteria, which evaluate each element of a statewide or metropolitan transportation system, should be combined. The complexity of this task will vary based on the size and scope of activities within a given region or state. Relationships in urban areas are often complex and intertwined, but rural bulk freight needs should not be overlooked from a systems perspective. – Criteria should be flexible. Individual transportation network segments and facilities may have borderline significance to a state or metropolitan area as a whole, but may be vitally important to an individual city or region within the state. An example of this type of facil- ity is a regional airport or seaport that does not handle significant volumes of freight or pas- senger traffic when compared with other facilities across the state, but provides the only available intermodal connection for shippers and passengers in the region. Assessing the strategic importance of a transportation mode, network, or facility based solely on strictly defined criteria may not recognize the overall importance of such smaller facilities. It is important to develop a process through which a limited number of borderline strategic facilities can be designated. • Define critical freight facilities and key strategies. Using the criteria developed above, define multimodal freight corridors and facilities, and map using GIS. These facilities should be updated regularly. Data Needs and Other Supporting Resources • Modal Network data (see Table 5-1) • Commodity flow/Volume data (see Table 5-2) • Freight Industry data (see Table 5-3) • Socioeconomic and Industry data (see Table 5-5) • Freight Stakeholder input (see Section 5) Techniques for Integrating Freight within the Transportation Planning and Programming Process 33

Strategies to Link to the Traditional Process • Include key corridors and facilities in the long-range plan and link to goals and objectives. It is important to include the critical freight corridors and facilities in a long-range plan and describe how these facilities relate to key mobility, safety, security, economic, and quality of life goals. Identifying key freight corridors and linking them to long-range goals and objec- tives can help focus potential investments on those corridors and facilities that have the great- est effect on economic competitiveness, mobility, or quality of life while ensuring that these investments are consistent with existing statewide or metropolitan priorities. • Develop a process for updates that is consistent with existing long-range planning activi- ties. It is critical that key freight corridors be updated on a routine basis to reflect current mar- ket trends and issues, commodity flow patterns, and logistics strategies. To ensure consistency with other long-range planning efforts and so that freight planning activities are considered as a “normal” part of these activities, these updates should occur on the same cycle as existing long-range plan updates. 34 Guidebook for Integrating Freight into Transportation Planning and Project Selection Processes Case Study—Pennsylvania Long-Range Transportation Plan— Statewide Corridors As part of its long-range transportation plan, PennPlan, the Pennsylvania DOT (PennDOT) identified 28 corridors of statewide significance, which consisted of in- terconnected and interacting transportation facilities that move people and goods between regions of the Commonwealth and between the Commonwealth and other states. Because long-range corridor planning in Pennsylvania is carried out by MPOs, local development districts, and other planning partners, their plans formed the foundation for the corridor analyses and objectives outlined in PennPlan. The resulting corridors are multimodal. For example, the corridors that connect Pittsburgh and Philadelphia consist of not just the Pennsylvania Turnpike, but also key U.S. routes, Norfolk Southern’s rail freight mainline, three international airports, and other facilities, all working together to move goods east and west throughout the State. In addition to identifying these key multimodal corridors, PennDOT and its partners also developed specific objectives for each of the corri- dors that were consistent with overall statewide and regional goals. For example, the objectives of the Delaware River Intermodal Corridor include • Improve intermodal connection and access to the Port of Philadelphia and Camden and the Philadelphia International Airport; • Invest in the Port of Philadelphia and Camden in order to compete in the global economy; • Maintain the depth of the Delaware River shipping channel at a minimum of 45 feet; and • Implement safety and capacity improvements to U.S. 1 and U.S. 202. While the identification of these 28 corridors was not designed as a roster of specific transportation improvement projects, it helps ensure that projects that ultimately are proposed and funded are consistent with statewide and regional objectives.

Techniques for Integrating Freight within the Transportation Planning and Programming Process 35 Data Private Sector Freight Expertise Institutional Support • Ensure criteria fit within existing long-range planning processes. Many states and MPOs have adopted a performance-based planning approach and use their long-range plans to pro- vide a framework for developing and analyzing performance measures using key factors such as mobility, reliability, economic competitiveness, and safety. It is crucial that criteria devel- oped as part of a key freight corridor/facility designation are integrated into existing measures within these factor areas or developed into new, complementary measures. This will help integrate freight issues into existing statewide and metropolitan processes and avoid freight planning from being perceived as a separate, parallel process. Overview Development of freight performance measures can help state DOTs and MPOs evaluate how well they are meeting transportation goals and objectives. Freight performance measures can also be used to more effectively target investments to address identified freight performance is- sues by helping DOTs and MPOs monitor the performance of the statewide and metropolitan transportation systems to identify key problem areas. These freight performance measures should be integrated into existing transportation plan- ning and programming processes. Linking freight data collection and performance measurement to existing processes can help ensure that freight issues become mainstreamed within an MPO or DOT and can allow freight projects to compete more effectively in the regional prioritization and funding processes. States and MPOs have developed various techniques to effectively link freight performance measurement with existing processes. Some states and MPOs develop freight “report cards” that help measure progress toward key freight-related goals and objectives included in the long-range plan. Others specifically link freight performance measures with pol- icy statements, goals, and strategies outlined in long-range transportation plans. Linking freight performance measures to existing planning activities and documents helps to more fully integrate freight into statewide and metropolitan transportation planning and programming processes. Key Steps • Review existing plans and policies to identify potential freight performance measures. The freight planning and programming self-assessment should have given you a good sense of your existing planning process and any existing performance measures used to guide it. In some cases, performance measures are already included in existing plans that may be relevant to freight movements. Examples include travel-time reliability on key highway corridors or the number of weight-restricted bridges. • Modify existing or identify new freight-specific performance measures. When modifying existing or developing new freight performance measures, it is critical to keep two key prin- ciples in mind. First, measures should be supported by data and information that are rela- tively easy to collect, analyze, and update. This is important because performance measures that come with overwhelming data collection and analysis requirements will quickly be abandoned. Second, measures should be statewide or regionally significant (i.e., they should measure the overall performance of the statewide or regional freight transportation system) and not be solely a reflection of the performance of individual elements of that system. Developing freight performance measures.

• Engage the private-sector freight community. The involvement of the private-sector freight industry is particularly important in the development of freight performance measures. Statewide and regional freight stakeholders work in the field every day and their perspectives on the most important aspects of the goods movement system help provide focus. By includ- ing the private-sector freight community, such as shippers, carriers, and key industry leaders, in the development of freight performance measures, states and MPOs can develop meaning- ful performance indicators that accurately reflect the operations of the private sector while providing targeted information to staff and decisionmakers. • Set performance targets and develop a process for evaluating performance. Once freight- specific performance measures are identified, it is important to set performance targets and develop a process for evaluating and reporting performance. The private-sector freight com- munity can be a key resource to help evaluate the validity of performance targets. Data Needs and Other Supporting Resources • Commodity flow/Volume data (see Table 5-2) • Freight Stakeholder input (see Section 5) • Guidebook for Performance-Based Planning (see Table 5-6) • Methods for Forecasting Statewide Freight Movements and Related Performance Measures (see Table 5-6) Case Study—East-West Gateway Coordinating Council 36 Guidebook for Integrating Freight into Transportation Planning and Project Selection Processes The East-West Gateway Coordinating Council (EWGCC) is the MPO for the St. Louis region. Although the EWGCC has been exploring the use of performance measures for transportation planning since the early 1990s, two key initiatives contributed directly to the development and adoption of freight performance measures. The first initiative was the explicit development and implementation of a performance-based planning strategy for the MPO’s transportation planning activities. The second was the development of a regional freight planning study guided by a freight advisory committee consisting of officials from all levels of government and freight represen- tatives from the trucking, rail, air cargo, barge, warehousing, and shipping industries. A key role of the freight advisory committee was to lead in the development of freight performance measures and then determine how to incorporate these performance measures into the MPO’s existing transportation planning and programming process. Twenty-eight specific performance measures were developed and classified into five specific categories that balance the need for meaningful indicators with the ease of data collection. These measures include • Connectivity/congestion, measured by average speed on key roadways; • Safety, measured by high-crash locations and number of turn-restricted inter- sections for 53-foot trailers; • Reliability, measured by level of service on key roadways; • Intermodal, measured by throughput at key freight facilities; and • Economic, measured by job growth and available warehouse space in the region. It was critical that these performance measures be mainstreamed into existing transportation planning and programming processes. The EWGCC linked freight (Continued)

Strategies to Link to the Traditional Process • Relate freight performance measures to existing goals and objectives. It is critical to specif- ically relate freight performance measures to existing goals and objectives included within a long-range plan. Explicitly linking freight performance measures with overall mobility, safety, security, and reliability goals helps underline how freight-specific activities can be used to support “traditional” transportation planning and programming, helping to integrate freight into existing processes. Understanding the value of improved performance for the private sec- tor can be an important exercise in helping improve project understanding. • Link data collection and analysis efforts to existing activities. Ease of data collection should be an important consideration in the development and implementation of freight perfor- mance measures, as even the best indicators are meaningless if they cannot be measured routinely. When selecting the final set of performance measures, it is important to be mind- ful of your organization’s capacity for data collection to support them. While it may be tempt- ing to expand the number of overall indicators to more comprehensively understand the performance of the freight transportation system, some prospective measures may be too peripheral to offer value and actually reduce the overall effectiveness of performance measurement. In any case, it is critical that the data collection activities associated with freight performance measures be linked to existing data collection programs and collected and analyzed on a regular basis. Techniques for Integrating Freight within the Transportation Planning and Programming Process 37 Data Gathering/ Monitoring Planning/ Evaluation Review/ Refinement Implementation • Transportation Data • Commercial Data • Economic Data • Freight Directory • Freight Survey • Outreach • Priority Goods Movement Network • Intermodal Management Information System • Other EWGCC Management Systems • Freight Advisory Committee • EWGCC Staff • Initiative Areas • Infrastructure • Institutional • Financial • Planning • Technology Annual Freight Report Card EWGCC Board Updated Short and Long Range Plans Updated TIP Annual Update Process performance measures to the overall transportation planning and programming process in two ways. First, they developed a freight “report card” that helps measure progress toward key freight-related goals and objectives included in the long-range plan. Second, the EWGCC developed a framework, shown below, to map how freight planning activities, including the freight report card and related performance measures, fit within existing transportation planning activities, particularly the development of long- and short-range plans and the development of the TIP.

• Use performance measures to identify freight needs and deficiencies. An active freight per- formance measurement program can, in itself, be an excellent way to routinely identify freight needs and deficiencies, which can then be fed back into the transportation planning and pro- gramming pipeline. Routinely assessing freight performance and using the process to identify potential needs and deficiencies in this way will eventually result in freight issues becoming an accepted, integrated component of a transportation planning and programming process. 38 Guidebook for Integrating Freight into Transportation Planning and Project Selection Processes Data Private Sector Freight Expertise Institutional Support Overview Despite the close relationship between transportation and land use, many DOTs, MPOs, and local agencies find it difficult to coordinate freight transportation and land use planning activi- ties to ensure that transportation facilities are compatible with adjacent land uses or that land use decisions are consistent with freight mobility and operational needs. Because freight move- ments can have important land use, economic development, and community and environmen- tal impacts, the integration of freight and land use into transportation planning at all levels— including project, corridor, and system-level plans—is critical. Although DOTs and MPOs are rarely the lead agencies for land use planning, they can and should work with partner agencies to develop strategies to better link freight transportation and land use planning activities. These strategies would start by developing a better understanding of freight operations and the local, regional, and corridor effects of freight movements and how local and regional land use decisions can affect freight operations and development patterns. Working together, DOTs, MPOs, and their local partners can then identify strategies that allow various types of land uses to co-exist and contribute to overall passenger and freight mobility, economic, and safety goals and identify ways in which state and regional transportation agencies can work with local jurisdictions and the private sector to implement land use strategies that support freight movement and economic development while minimizing environmental and community impacts. Key Steps • Identify land use stakeholders and collect and review land use policies and strategies that af- fect freight (and vice versa). Responsibilities for land use planning and policy-making vary among states and metropolitan areas. It is important to understand what agencies/entities have responsibilities for land use planning in your region and how their actions fit within your trans- portation planning and programming activities. It is also important to understand how freight transportation investment decisions made by your organization may affect land use strategies. Some urban areas are concerned with redevelopment and industrial corridor preservation. Some rural areas are fiercely competitive for new business enterprises and freight logistics cen- ters. Balancing local and regional interest is important given the economic impact freight may have at the site level. The freight planning and programming self-assessment in Section 3 should have given you a good sense of how land use policies may affect freight planning activities in your region. • Combine freight and land use data and information within a GIS. Many agencies that have responsibility for land use planning have developed maps of current and future land use pat- terns within a GIS. At the same time, many transportation planning agencies, particularly those that have developed freight and industry profiles (see above) have developed maps of freight facilities, movements, and key industries. Combining these maps can provide both Linking freight and land use planning.

transportation and land use planners with a better understanding of how freight transporta- tion and land use strategies interact. It can also help these transportation and land use stake- holders better address land use issues within existing transportation plans (and vice versa). • Work with stakeholders to address land use issues within existing transportation plans. Many state DOTs and MPOs do not have jurisdiction over land use issues. However, engag- ing transportation and land use stakeholders as part of a long-range planning process can help ensure that freight issues are included as part of a coordinated transportation and land use strategy. Land use issues should be addressed at three levels: – Regional strategies could include designating brownfield sites and other industrial areas as desirable locations for industrial and warehousing development. – Local strategies could include ensuring adequate intermodal access to local freight facili- ties or industries and zoning strategies which recognize the importance of neighborhood quality of life issues and the need for separation and/or integration with appropriate levels of industrial activity. – Site-specific strategies could include developing curb space management plans to manage curbside loading zones and operations, encouraging building designs that have adequate off-street loading bays/zones and dock height requirements, developing facility-specific guidance for freight facilities and other businesses, and orienting and screening loading facilities to minimize aesthetic, noise, and pollution impacts. Data Needs and Other Supporting Resources • Modal Network data (see Table 5-1) • Commodity flow/Volume data (see Table 5-2) • Freight Industry data (see Table 5-3) • Socioeconomic and Industry data (see Table 5-5) • Freight Stakeholder input (see Section 5) • Transportation and Land Use course (see Table 5-7) • Freight Planning and Environmental Considerations course (see Table 5-7) Case Study—Chicago 2040 Regional Framework Plan Techniques for Integrating Freight within the Transportation Planning and Programming Process 39 The Northeast Illinois Planning Commission (NIPC) provides regional growth management and comprehensive land use planning for the metropolitan Chicago area. Until 2006,1 NIPC operated under an inter-agency agreement with the Illinois DOT and the Chicago Area Transportation Study (CATS, the Chicago area MPO). As part of this agreement, NIPC plans and data were used as the basis of the Regional Transportation Plan, allowing these agencies to effectively coordinate land use and transportation planning. An example of this coordination is provided by the development of NIPC’s 2040 Regional Framework Plan, which was developed in response to several land use trends, particularly the conversion of prime industrial sites in Chicago into expensive residential lofts and condominiums. The Regional Framework Plan engaged key transportation, industry, and land use stakeholders in visioning and planning tech- niques to develop specific strategies to guide future growth while ensuring that freight and passenger mobility needs are met. The Plan designated future industrial locations and included several maps showing the locations of key freight corridors and facilities layered on top of current and future industrial parcels, as shown below. (Continued)

40 Guidebook for Integrating Freight into Transportation Planning and Project Selection Processes Strategies to Link to the Traditional Process • Incorporate freight and land use goals and objectives and identify industrial sites and cor- ridors in the long-range transportation plan. Incorporating freight and land use specific goals and objectives in a long-range plan can help ensure that land use and freight-specific strategies are coordinated at the regional and metropolitan levels. In addition, it can help demonstrate the link between transportation and land use, helping to develop advocates for coordinated planning within both transportation and land use agencies. It is also important to identify key industrial sites and corridors within the long-range plan, as this can help MPOs and local agencies more effectively steer freight-related development into areas that are better equipped to support it. • Modify project evaluation criteria to encourage brownfield redevelopment. One way to effectively coordinate transportation and land use planning is to modify evaluation criteria to encourage the use of brownfields or other defined industrial sites. Modifying TIP/STIP eval- uation criteria to provide extra “points” or consideration for those projects that utilize these areas will further help MPOs and local agencies ensure that freight transportation investments are consistent with land use policies. • Add land use agencies to a freight advisory committee or similar group. States and MPOs should include appropriate land use and other environmental agencies to existing freight advisory committee or similar groups to ensure that land use issues are effectively incorpo- rated within freight and other transportation planning activities. Engaging these groups early in the planning and programming process has the added benefit of building advocacy and consensus for freight-related projects that might be developed, programmed, and imple- mented later on. The Regional Framework Plan included several regional and local strategies, such as • Planned Manufacturing Districts, which are special zoning designations for a defined geographic area that limit the types of development that may occur in the area to industrial activity and other compatible land uses; and • Industrial tax increment finance districts, which support transportation im- provements, financed by tax revenues from development. 1In 2006, CATS and NIPC merged.

4.4 Programming Strategies The project programming phase occurs after long-range plan development and is the phase in which states and MPOs begin actually implementing transportation improvement projects through the development of TIPs and STIPs. Several strategies have proven effective in integrat- ing freight issues in programming activities, as described in Table 4-3 and below. Overview Although most states and MPOs use criteria to evaluate and rank projects for inclusion on a TIP or STIP, these criteria rarely reflect potential economic and business development benefits of freight improvement projects. Instead, these criteria typically consider how a proposed project will improve highway volume-to-capacity ratios, highway level-of-service ratings, and safety. Some freight im- provement projects receive decent scores for these criteria, but most fail because, for example, a freight connector improvement project typically serves fewer total vehicles than a competing sub- urban intersection improvement. Missing are evaluation criteria that reflect the other economic and business development benefits of freight improvement projects, such as how they may improve shipping-time reliability or the extent to which they may attract or retain businesses and jobs in an area. As a result, many freight projects never appear on a TIP/STIP or are ranked very low. Project evaluation criteria that give more recognition of and emphasis to freight projects should be devel- oped so that freight projects can be given fair consideration in the project evaluation process. Some states have developed quantifiable criteria in categories such as mobility, economic development effects, safety/security, and other “freight-friendly” areas. Guidance should also be provided to assist in the application of those criteria. Developing concrete guidance to assist project evaluators in assessing and ranking of projects can help eliminate bias and ensure that all potential projects are treated equally within the evaluation process. Key Steps • Review your existing programming evaluation process for “freight friendliness” and identify gaps. The freight planning and programming self-assessment in Section 3 should Techniques for Integrating Freight within the Transportation Planning and Programming Process 41 Needs Identification Strategies Data Private Sector Freight Expertise Institutional Support Evaluating Economic and other Public Benefits of Freight Improvement Projects Using Alternative Funding and Financing Approaches Key: Less Important More Important Developing Freight-Specific Evaluation Criteria Table 4-3. Relative importance of common stumbling points to programming strategies. Data Private Sector Freight Expertise Institutional Support Developing freight-specific evaluation criteria.

have given you a good sense of how your existing programming process and evaluation criteria treat freight issues. When evaluating your existing evaluation criteria for “freight friendliness,” consider the following questions: – Are the evaluation criteria multimodal in nature? – Are economic benefits (e.g., increased jobs, access, and improved market economics) included? – Are specific measures for truck movements identified? – How do the evaluation criteria relate to overall DOT or MPO goals and objectives? – Do the criteria include scoring guidance? • Develop criteria that reflect potential freight, economic, and security benefits of freight proj- ects. It may be necessary to modify existing criteria or develop new criteria that better reflect the potential freight, economic, and security benefits of freight improvement projects. The private- sector freight community is an excellent resource that can help determine which measures to focus on. It is important to ensure that the final set of freight criteria can be supported by data and information that are relatively easy to collect, analyze, and update. Evaluation criteria that come with overwhelming data collection and analysis requirements will quickly be abandoned. • Develop scoring guidance. Guidance should be provided to project evaluators to assist them in applying the criteria to different types of projects. Scoring guidance is particularly useful for evaluators who may not fully understand the potential effects or benefits of a proposed freight improvement project. Providing guidance on how to evaluate projects can help these evalua- tors make more informed decisions about transportation investments while giving freight improvement projects a “fighting chance” to compete for funding with other proposed transportation improvements. Data Needs and Other Supporting Resources • Modal Network data (see Table 5-1) • Commodity flow/Volume data (see Table 5-2) • Freight Industry data (see Table 5-3) • Socioeconomic and Industry data (see Table 5-5) • Freight Stakeholder input (see Section 5) Case Study—Rhode Island Project Evaluation Process 42 Guidebook for Integrating Freight into Transportation Planning and Project Selection Processes Rhode Island, because of its size, is unique in its organizational structure for trans- portation planning. Planning activities are carried out on a statewide basis, rather than occurring at both the statewide and metropolitan levels, as in most other states. Rhode Island’s Statewide Planning Program (RISPP) is responsible for trans- portation planning within the State and also is the designated MPO for Rhode Island (the MPO region covers the entire State). Project proposals are reviewed by a Technical Advisory Committee (TAC) within four regional subcommittees (Northwest Region, Metro Providence Region, East Bay, and South County) using criteria adopted by the State Planning Council. The scoring system evaluates projects in six major categories: Mobility Benefits, Cost-Effectiveness, Economic Development, Environmental Impact, Degree of Support to Local and State Goals and Plans, and Safety/Security/Technology. Specific qualitative and quantitative measures were developed for each category and proposals are scored on a scale from –5 to 5 (negative values being assigned to indicate negative effects) within each of the six areas. (Continued)

Strategies to Link to the Traditional Process • Modify your project evaluation process to include freight representation on project evalu- ation committees. Private-sector participation is important in all phases of the transportation planning process and is particularly important in the programming process where potential projects are evaluated for inclusion in a TIP or STIP. States and MPOs should include private- sector freight representation, such as industry associations, economic development corpora- tions, or shippers and carriers on project evaluation committees because these stakeholders are often able to more effectively articulate the potential public benefits of freight transporta- tion investments, such as how freight-specific projects could improve economic development and competitiveness, safety and security, and overall mobility. In addition, engaging the private sector in this way promotes a sense of fairness and openness to the TIP/STIP develop- ment process and can encourage the private-sector freight community to stay engaged in the transportation planning process for the long haul. • Refocus approach to setting transportation priorities. Many of the processes and proce- dures used by states and MPOs were developed to evaluate and prioritize highway improve- ments. This is one reason why freight improvement projects—particularly non-highway improvements—often have a difficult time successfully navigating the planning and pro- gramming process and appearing in TIPs and STIPs. Setting priorities for non-highway im- provement projects often involves making modal tradeoffs, e.g., justifying why investing in a freight rail project may be a better use of public resources than improving highway capacity. Some states and MPOs have begun to refocus their approach to setting transportation priorities in order to more effectively evaluate modal tradeoffs. Table 4-4 describes how Florida DOT’s approach has evolved. Other states and MPOs should also refocus their approach to setting transportation priorities—this would allow them to better assess multi- modal tradeoffs and understand how freight improvements can link directly to existing mobility, environmental, and economic goals. • Review the existing TIP/STIP to identify freight projects. In many cases, states and MPOs are already addressing freight movements within their transportation planning programs, al- beit indirectly. States and MPOs should review their existing transportation planning docu- ments, particularly their most recent TIPs and STIPs, to evaluate their “freight friendliness” and highlight projects that promote goods movement and economic development efforts. Some states and MPOs, particularly those affected by a high level of truck movements, may find that their existing improvement programs are already benefiting freight movements. Techniques for Integrating Freight within the Transportation Planning and Programming Process 43 Following scoring by the TAC subcommittees, a prioritized list of recommenda- tions is presented to the full TAC. The full TAC, using information on anticipated funding and scheduling, assembles its recommended fiscally constrained program into a draft TIP. The draft TIP is reviewed by the State Planning Council and made available for public comments before it is approved. Development of quantifiable criteria with which to evaluate potential improvement projects for inclusion in the TIP gives freight improvement projects a “fighting chance” to compete for funding with other proposed transportation improvements. In fact, many freight improvement projects would score highly in several of the criteria areas, particularly those criteria included in the Mobility, Economic Development, and Safety/Security/Technology categories. In the most recent TIP, a freight rail track improvement project and several grade crossing separation projects were approved for funding.

States and MPOs should also consider adding a freight section to the TIP/STIP to specifically identify and highlight those projects that have freight benefits. Understanding how an exist- ing transportation improvement program benefits freight movements can help build credibility with the private-sector freight industry and encourage industry representatives to identify other, more freight-focused improvement projects for consideration in the future. Overview State DOT and MPO staff are an important resource in identifying freight needs and defi- ciencies, proposing potential improvement projects, and moving those projects through the transportation planning and programming process. However, few have formal training in freight planning, and even fewer have experience in quantifying the public benefits of proposed freight improvement projects. Compounding the issue is the fact that freight-specific data and analytical tools are limited in their availability and their effectiveness in describing costs and benefits of freight improvements. As a result, many state DOTs and MPOs find it difficult to adequately describe the costs and benefits of freight improvement projects and how they might accrue to different public and private stakeholders. Although public investment in the freight system might have the joint benefit of improving mobility for freight and passenger movements while reducing the need for additional highway capacity expansions, most DOT and MPO staff lack the analytical tools to make that argument adequately. As a result, freight-related needs, issues, and potential solutions are often not fully mainstreamed in the transportation planning and programming process, making such solutions unlikely to be included in the setting of statewide or regional priorities or in the allocation of funds. Key Steps • Identify the transportation purpose of the project in terms of its intended effect on improv- ing freight and non-freight travel conditions. This is needed to ensure that those transporta- tion effects and their consequences are properly evaluated. Key elements include 44 Guidebook for Integrating Freight into Transportation Planning and Project Selection Processes From… To… Individual modes and facilities Individual jurisdictions Capacity and throughput Complete end-to-end trip Economic regions and trade corridors Reliability and bottlenecks Travel time and vehicle operating costs Business logistics and economic competitiveness Reacting to economic growth and community/ environmental impacts Proactive planning for economic, environmental, and community goals Table 4-4. Evolution of Florida DOT approach to setting transportation priorities. Data Private Sector Freight Expertise Institutional Support Evaluating economic and other public benefits of freight improvement projects.

– Facility Location—Local entry/access point, regional corridor, and facility; – Modes Involved—Air, water, rail, truck, and combinations of modes; – Transport Change—Capacity, access, speed/flow, and cost; and – Investment—Expand existing facility or build new or alternative facility. • Identify the expected economic impacts in terms of the elements of the economy that might have significant stakeholder benefit. This is needed to ensure that those economic effects and their consequences are also properly evaluated. One of the keys to allowing freight improvement projects to more effectively compete with other transportation im- provements is to identify key regional stakeholders and describe potential benefits of the project to those stakeholders. Most freight improvement projects have a wide range of potential beneficiaries, including businesses and industry, public agencies, freight service providers, and the general public. A critical first step is to develop a general understand- ing of the types of benefits that different stakeholders are interested in. Key effects to focus on include – National- and international-scale freight network capacity and level-of-service needs; – Economic competitiveness, growth, productivity, and trade; – Benefits to specific regions, modes, or industries; and – Allocation of costs and benefits among affected parties, to assess equitable funding. • Apply transportation effect evaluation tools to assess the magnitude and nature of trans- portation system performance effects actually projected to affect shippers/receivers and car- riers. Types of transportation effect evaluation tools include – Network analysis tools that identify and measure transportation links, nodes, capacity, and performance of rail and highway systems. Examples include travel demand or truck freight models (maintained by most DOTs and many MPOs) and rail system models (available from several private-sector software vendors). – Facility handling analysis tools that measure capacity/cost for ports, terminals, bridges, and tunnels. Several publicly and privately available models measure capacity and costs of airports, marine ports, and rail terminals. – Logistics analysis tools that estimate cost implications of mode/facility choices. One ex- ample is the Intermodal Transportation and Inventory Cost Model (ITIC), a freight mode choice model from FHWA’s Office of Freight Management and the Federal Railroad Ad- ministration. This model attempts to calculate the logistics cost and decision tradeoffs seen by shipper logistics managers and then assigns the truck/rail diversion to alternatives that minimize total logistics cost. • Apply economic impact evaluation tools to assess the magnitude and nature of economic effects actually projected to occur for elements of the economy that are either directly or in- directly affected by freight system costs and performance. Key elements to focus on include – Form of economic impact—How the proposed project will reduce costs, improve produc- tivity, or generate additional income or jobs; – Geography of affected markets—How the effects will accrue at the local, regional, na- tional, and international levels; – Distribution of economic impacts—How the effects will be distributed among key com- modities and economic sectors; and – Use of economic impact models—What existing economic impact models (e.g., supply chain models, regional economic simulation models, national productivity models, inter- national trade models, or input/output models) will be necessary. • Apply decision support methods to identify the substantial positive and negative effects of the project for the economy (at the local/state or national level). Key decision support meth- ods include – Benefit/cost analysis, a comparison of all of the positive and negative effects of a project expressed on a consistent basis in terms of net present values; Techniques for Integrating Freight within the Transportation Planning and Programming Process 45

– Cost-effectiveness analysis, a comparison of the effectiveness of project alternatives in achieving various individual indicators of desired benefits (such as reducing congestion and improving air quality and freight flow); and – Multiple criteria analysis, which is most popular in Europe as a more comprehensive al- ternative to the use of traditional benefit/cost analyses. It provides a means of considering the wider issues of qualitative and quantitative benefits and costs, as well as distribution and equity of their incidence, in a unified framework based on rating criteria. Data Needs and Other Supporting Resources • Modal Network data (see Table 5-1) • Commodity flow/Volume data (see Table 5-2) • Freight Industry data (see Table 5-3) • Socioeconomic and Industry data (see Table 5-5) • Financing Freight Improvements (see Table 5-6) Case Study—CREATE 46 Guidebook for Integrating Freight into Transportation Planning and Project Selection Processes The Chicago Regional Environmental and Transportation Efficiency (CREATE) pro- gram is a $1.5 billion plan to improve rail efficiency and grade separation at critical crossings in Chicago. Stakeholders include the Illinois and Chicago DOTs, the Chicago Area Transportation Study (CATS, MPO for the region), local transit opera- tors, and four Class I railroads. The following paragraphs briefly describe how these stakeholders applied the five-step approach to assessing economic impacts. Step 1—Identify the Transportation Purpose CREATE is classified as an operational improvement (for freight rail) and a capacity improvement for passenger rail. Step 2—Identify the Expected Economic Impacts The public benefits analysis of the CREATE proposal evaluated three key issues: national growth/productivity, savings to rail operators, and the allocation of costs and benefits to the mix of beneficiaries. Key benefits that were defined included • Inventory reduction savings; • Highway investment averted and congestion mitigation on future highway passenger traffic growth; • Rail commuter’s time savings/Motorists time savings at crossings; • Savings tied to accident reduction at crossings; • Savings tied to accident reduction on less congested highways; • Project Construction Economic Stimulus; and • Value of emission reductions due to reduced train and motor vehicle idling. Step 3—Select and Apply the Analysis Tools to Estimate Transportation Effects The public benefits analysis relied on transportation modeling resources of ILDOT and CATS and some additional methods. Accident reductions from improved (Continued)

Strategies to Link to the Traditional Process • Build advocacy for freight planning among key decisionmakers by focusing on benefits. One of the keys to getting freight projects from the planning stage to the programming and imple- mentation stages is to build advocacy for freight-specific projects among key regional decision- makers, including DOT/MPO management, industry and business leaders, local citizens, and statewide or local elected officials. One of the most effective ways to build advocacy among these groups is to effectively describe potential benefits of proposed projects. A critical first step in describing benefits is to understand who the potential advocates for a project are and how they would share in the benefits of the proposed improvement. Clearly, different stakeholders have different focus areas: business and industry tend to be primarily concerned with how a proposed improvement would affect economic competitiveness and growth; local citizens and elected officials tend to be more concerned with the traffic, air quality, noise, and public safety effects; and DOT and MPO management are often most concerned with maximizing scarce resources and ensuring that regional or statewide mobility goals are met. By understanding the players involved and their interests, states and MPOs can more effectively describe how the benefits of potential freight improvements could accrue to each of these individual stakehold- ers. Building advocacy among these key constituencies is critical to moving freight-specific projects forward. If decisionmakers understand the potential public benefits of a project and buy-in to those benefits, moving from planning to programming to implementation will be Techniques for Integrating Freight within the Transportation Planning and Programming Process 47 crossings as well as less congested highways (achieved by modal shift into passenger rail) were drawn from these agency resources. The railroads relied on the Berkeley Simulation model to estimate rail network performance changes for both freight and passenger rail activity. Step 4—Select and Apply Analysis Tools to Estimate Economic Impacts Inventory reductions were calculated by multiplying the time saved on freight movement by value of delay, all at the commodity-specific level. The value of delay was based on the direct cost savings that would result from not holding shipments in inventory. Averted highway construction and maintenance costs were derived from the FHWA Highway Economic Requirement System (HERS) model and from an analysis tied to AASHTO’s Freight-Rail Bottom Line Report (2003). Emission reductions were estimated using reductions in rail-fleet idling time as well as the automobile/truck delay improvements at the improved (grade separated) crossings. EPA estimates for locomotive emissions were used along with data from CATS’ recent CMAQ analysis for approved NOx projects. Automobile/truck emission reductions were identified in part from a rail simulation model and from CATS data for existing and future highway traffic. Step 5—Apply Relevant Decision Methods A benefit/cost analysis was conducted to develop a cost-sharing agreement among the parties. At minimum, the operational improvements would be worth $0.2 billion of rail industry funding toward the overall cost of CREATE. Public en- tity funding will involve METRA, CDOT, ILDOT, and Federal funding.

much easier. Additionally, being able to effectively describe benefits and how they would accrue to different groups can help open the door to discussing how costs could be shared. • Modify the project evaluation process to include identification of public benefits as a crite- rion. Although many states and MPOs evaluate costs and benefits of potential transportation improvements prior to including them in a TIP or STIP, few specifically link transportation improvements to economic growth and vitality, often a primary benefit of freight improve- ment projects. States and MPOs should modify their project evaluation process to assess not only the costs of projects, but their anticipated effects on congestion, access to key freight and other facilities, and economic vitality (e.g., jobs and income). This will help ensure that all transportation projects are evaluated on the same basis and allow project evaluators to better understand the potential costs and benefits of transportation improvements. 48 Guidebook for Integrating Freight into Transportation Planning and Project Selection Processes Data Private Sector Freight Expertise Institutional Support Overview Successfully reaching the project development and implementation stage is where many of the most successful freight planning programs have built their credibility and created the momen- tum to move forward. However, many states and MPOs have a hard time funding freight improvement projects within the traditional planning and programming process, because deserving and necessary freight improvements have to compete with other deserving and neces- sary non-freight transportation improvements for limited funding. Several states and MPOs have recognized alternative funding approaches work for freight improvements and can be used to implement freight improvements outside of or in concert with the traditional process. Examples include the Congestion Mitigation and Air Quality (CMAQ) program, which has been used successfully in non-attainment areas to make freight improvements; small capital improvement programs, which link the maintenance and opera- tions budgets of local governments (in the case of an MPO) or district offices (in the case of a state DOT) to make short-term improvements, such as traffic signal retimings, pothole repairs, or installation of directional signage to improve freight flows; and state-specific funding pro- grams, such as rail access programs, harbor improvement programs, or multimodal improve- ment programs that target investments in specific types of freight projects or facilities. States have also been investigating the use of public/private partnerships to fund and finance freight improvement projects that have clear public and private benefits. Developing and using these kinds of innovative programs together with traditional ones is one way to move freight improvement projects forward and maintain momentum for a freight planning program. Key Steps • Investigate grants from transportation programs. Grants from transportation programs, which give states and the Federal government the best control over the use of transportation funds, can be targeted to specific projects that solve freight transportation needs and deficien- cies. Several funding programs can be used for freight improvements: – Funding programs in SAFETEA-LU, which include traditional funding programs, such as the Surface Transportation Program (STP), typically used to fund highway improvements; mode-specific or special programs, such as the Congestion Mitigation and Air Quality (CMAQ) program, which funds transportation improvements that improve air quality; Using alternative funding and financing approaches.

and new programs, such as the Truck Parking Facilities grant program, which can be used to improve truck parking areas along NHS highways. – Non-SAFETEA-LU funding programs, which include grant programs funded by other Federal agencies, such as the FTA Rail Modernization program, which can be used for projects that often have freight benefits, or the Department of Commerce Economic Development Administration grants, which can be used to fund freight improvement projects that attract or retain industry. – State-specific funding programs, which are used by states to target investments on freight infrastructure or operational improvements. These programs are often coupled with economic development incentives to attract employers. • Investigate loan and credit enhancement programs. These programs enable states to use Federal resources and stimulate capital investment in transportation infrastructure by providing loans or credit support (rather than grants) for transportation projects. Examples include – Transportation Infrastructure Finance and Innovation Act (TIFIA), which provides loans and credit assistance for major transportation investments of national or regional significance; – Rail Rehabilitation and Improvement Financing (RRIF), which provides loans and credit assistance to both public and private sponsors of rail and intermodal projects; and – State Infrastructure Banks (SIB), which allow states to establish infrastructure revolving funds that can be capitalized with Federal transportation funds. • Investigate tax-expenditure financing programs. These programs can be used to provide targeted income tax benefits for investments made to improve the efficiency or increase the capacity of the freight transportation system by reducing or eliminating tax burdens on some interest paid by investors. Examples of tax-expenditure financing programs include – Private Activity Bonds, which allow the issuance of tax-exempt private activity bonds for highway and freight transfer facilities; and – Grant Anticipation Revenue Vehicle (GARVEE) Bonds, which allow states to issue tax-exempt debt, backed by future Federal-aid highway revenues. • Investigate direct user fees to fund freight improvements. Direct user fees are typically applied at the point and time of use, such as tolls. Examples of user fees that have been imple- mented to support freight investments or reduce congestion at freight facilities and the feasi- bility of truck-only toll lanes, VMT-charges for commercial vehicles, and other strategies have been assessed by some state DOTs and other entities. Direct user fees, described below, could be applied to freight operations, although only a handful are being used to generate revenue to support freight-specific infrastructure improvements: – Container fees, which levy a fee on import and export container movements at U.S. gateways (i.e., seaports, airports, and border crossings). These fees are sometimes used by states to pay for freight infrastructure improvements related to gateways. – Tolls, whose use is gaining momentum across the country as a way to accelerate trans- portation investments and more directly link fees and payments with the use of transporta- tion infrastructure. The tolling concept is broad and includes specialized tolled facilities such as turnpikes, tunnels, bridges, and high-occupancy toll (HOT) or managed-lane facilities. The primary tolling application for freight involves truck-only toll lanes, which are the subject of feasibility studies along SR 60 and I-710 in the Los Angeles/Long Beach region, throughout the entire State of Georgia, and in many other locations. The use of tolls on such facilities could accelerate the delivery of freight-specific improvement projects while minimizing public-sector risk. In addition, surplus toll revenue could be used to sup- port additional freight improvements. • Congestion pricing, which involves offering incentives to use transportation facilities in off-peak hours or charging extra to use them during peak hours. Prices can vary based on Techniques for Integrating Freight within the Transportation Planning and Programming Process 49

a fixed schedule, or they can be dynamic, meaning that rates change depending on the level of congestion that exists at a particular time. This strategy is being used as a CMAQ im- provement strategy as part of the PierPass program implemented at the Ports of Los Ange- les and Long Beach. This program has effectively shifted approximately one-third of the port movements to off-peak delivery times. Though most commonly used as a congestion mitigation tool, surplus revenue from congestion pricing programs could be used to support other freight improvements. • Investigate the use of public-private partnerships (PPPs) for freight investments. PPPs are contractual agreements formed between a public agency and private-sector entity that allow for greater private-sector participation in the delivery of transportation projects. The three principal aspects of private-sector participation are Project Delivery (development phase through design and construction); Project Management (long-term operational and main- tenance responsibilities); and Project Financing (raising the capital necessary to fund the project). Some PPP approaches involve just one of these services (such as design-build contracting for a public-sponsored project, such as highway construction), whereas others may involve all three (e.g., user-charge project financings under long-term private conces- sions). Traditionally, private-sector participation in surface transportation projects was limited to planning, design, or construction contracts. PPPs, however, provide for expanded participation and responsibility from the private-sector in traditionally public investments on transportation. Typical PPP options include – Design-Bid-Build. This is the traditional project delivery approach for public works. The design-bid-build model separates design and construction responsibilities by awarding them to an independent private design engineer and a separate private contractor. The de- sign engineering firm is responsible for completing the final project design. During the bid- ding phase, contractors submit competitive bids, which are reviewed by the public entity. Once a contractor is selected (based on the lowest bid), the project moves into the con- struction phase. – Private Contract Fee Services. In this strategy, the public sector transfers the responsibil- ity for services that would be typically performed in house to the private sector. Typically these include operations and maintenance of publicly owned facilities and program and fi- nancial management. – Design-Build. The design-build method combines two typically separate services into one single contract. The public sector owns the facility under construction, and retains respon- sibility for financing, operating, and maintaining the project. – Build-Operate-Transfer/Design-Build-Operate-Maintain. This model (also known as “turnkey” procurement) combines design-build with operations and maintenance. A sin- gle contract is awarded to a private entity that is responsible for the design, construction, and operation/maintenance of the project. Once the contract expires, the facility is turned over to the public owner. – Design-Build-Finance-Operate. With this approach, the responsibilities for designing, building, financing, and operating are bundled together and transferred to private-sector partners. Arrangements can vary greatly, especially concerning the degree of financial re- sponsibilities actually transferred to the private sector. For this model, a project could be entirely financed by either the public sector or the private sector or a combination of both. A common trait across all Design-Build-Finance-Operate projects is that they are either partly or wholly financed by debt backed by revenue sources dedicated to the project. Direct user fees are the most common revenue source. – Build-Own-Operate. With this model, a private company is granted the right to develop, finance, design, build, own, operate, and maintain a transportation project for a specified concession period. Public-sector involvement is limited to ensuring performance of the concession provisions. 50 Guidebook for Integrating Freight into Transportation Planning and Project Selection Processes

Data Needs • Commodity flow/Volume data (see Table 5-2) • Guidebook for Financing Freight Investments (see Table 5-6) • CMAQ: Program and Purpose Course (see Table 5-7) • Multimodal Freight Financing Seminar (see Table 5-7) Case Studies—Use of Alternative Funding and Financing Approaches Techniques for Integrating Freight within the Transportation Planning and Programming Process 51 Use of “Traditional” Grants—North Carolina DOT Rail Improvement Program Working with the North Carolina Railroad (NCRR), Norfolk Southern (NS), and CSX Railroads, NCDOT is upgrading existing rail corridors to improve safety, efficiency, and capacity for freight and passenger train services. The first phase of improve- ments is occurring along the North Carolina Railroad, a 317-mile, state-owned corridor that links Charlotte, Greensboro, and Raleigh and extends to the Port of Morehead City for both passengers and freight. Specific infrastructure and signal improvements, such as double-tracking some portions, extending sidings, and straightening curves, have helped reduce the travel time between Raleigh and Charlotte by 30 minutes since the work began in 2001. In addition to reducing the travel time, these projects will increase efficiency and reliability for both freight and passenger trains in the corridor. Almost $7 million in STP and NHS funds have been used to date to fund this program. Use of Mode-Specific Programs—DVRPC Competitive CMAQ Program Every 2 to 3 years, the DVRPC sets aside a specific amount of CMAQ funding in its TIP to fund projects through a competitive program. Projects may be submitted by any public agency or public-private partnership, including members of DVRPC’s Goods Movement Task Force. For FY 2003/2004, the DVRPC Board selected 24 projects to receive funding under the Competitive CMAQ Program. The Board awarded a total of $11.7 million of Federal CMAQ funds, including $2.3 million for 7 projects in New Jersey and $9.3 million for 17 projects in Pennsylvania. Among the approved projects were five freight projects, which encourage reduced truck emissions and promote rail freight as an alternative to long-haul trucks. Use of Non-DOT Funding Programs—Indiana Burns Harbor The Indiana Burns Harbor links Indiana, the eastern United States, and global markets via the St. Lawrence Seaway and the Inland Waterway System. In addition to water access, the Burns Harbor provides freight access via rail (i.e., Indiana Harbor Belt Railroad, Norfolk Southern, CSX, and South Shore Railroad), highway, and air (i.e., O’Hare International Airport, Meigs Field, and Midway Airport). The port construction and associated access projects, such as a rail overpass, highway and roadway improvements, and dredging and breakwater construction were funded by the Economic Development Administration and the United States Army Corps of Engineers Harbor Maintenance program. (Continued)

52 Guidebook for Integrating Freight into Transportation Planning and Project Selection Processes Use of Loan and Credit Enhancements—ReTRAC Project The ReTRAC project involves creating a below-grade trench for the Union Pacific (UP) railroad’s mainline through downtown Reno. Infrastructure improvements include the construction of two mainline tracks, constructed to standards permit- ting maximum train speeds of 60 miles per hour, an access road adjacent to and on the south side of the tracks within the below-grade corridor, and the recon- struction of 11 street crossings built as street “bridges” across the top of the de- pressed trench. The project was financed with several sources: a $73.5 million TIFIA direct loan that will be repaid through local revenue sources, including a one-eighth-cent sales tax; a 1-percent hotel occupancy tax; lease income from UP properties donated to the City; and tax assessments from downtown businesses. The TIFIA loan was used to leverage other state and local funding sources, includ- ing a project earmark within TEA-21. Use of Tax Expenditure Financing—Freight Rail Improvement Project (FRIP) The FRIP is a 22-mile-long project in Amtrak’s Northeast Corridor in Rhode Island. This project entails constructing a freight-dedicated track along Amtrak’s mainline tracks, linking Quonset/Davisville to the Boston Switch at Central Falls and out to western markets. The FRIP is to be administered by Amtrak Force Account—work performed by Amtrak forces—as well as Rhode Island DOT construction contracts. Funding for the project is a mix of state and Federal funds, including a combined $51 million in planned GARVEE and Motor Fuel bonds. Use of the GARVEE bonds allowed Rhode Island to “reserve,” or program, its future annual highway money in order to complete this project. Use of Direct User Fees—Arizona DOT Arizona’s Safety Enforcement and Transportation Infrastructure Fund (SETIF) is capitalized using fees collected from commercial vehicles entering the United States via Arizona’s southern ports of entry. These funds provide revenue for the enforcement of vehicle safety requirements by the department of public safety and the maintenance of transportation facilities, including roads, streets, and highways, as approved by the Arizona Transportation Board within 25 miles of the border between Arizona and Mexico. Use of Public-Private Partnerships—Virginia DOT Virginia’s Public-Private Transportation Act of 1995 allows private entities to enter into agreements to construct, improve, maintain, and operate transportation facilities. Virginia DOT recently began soliciting proposals for the U.S. Route 460 Corridor Improvements Project. This corridor carries significant truck volumes, many of which serve the Port of Virginia. This corridor is also considered an excellent location for additional warehouse and distribution centers needed in the region. Through this PPP, Virginia DOT is seeking a private entity to develop and/or operate the new roadway. All or most of the project finance is expected to come from the private sector and may include tolling or other innovative finance methods.

Strategies to Link to the Traditional Process • Identify potential funding sources for freight projects prior to the programming stage. Identifying a potential funding source can often make a proposed freight improvement proj- ect more attractive than other, competing projects during the programming phase and in- crease its chances for appearing on a TIP or STIP. Taking advantage of the state and Federal grant programs and other funding and financing options can help freight improvements more successfully navigate the project programming process. At the same time, funding and financing freight improvements in this way may make it easier for states and MPOs to attract private-sector equity for freight investments, because such funding creates an environment where both the public and private sectors can pool resources more effectively, share risks and rewards more equitably, and distribute costs and benefits more efficiently, further enhancing transportation efficiency and economic vitality. • Modify the project evaluation process/criteria to reward the use of alternative funding mechanisms. States and MPOs should modify the project evaluation process to reward the use of alternative funding or financing mechanisms or to incorporate a factor which recog- nizes the leveraging of public investment dollars. Modifying TIP/STIP evaluation criteria to provide extra “points” or consideration for those projects that bring their own funding sources will allow freight projects to more effectively compete with non-freight improvements and may also encourage the private-sector freight community to propose improvement projects and enter into cost-sharing agreements. 4.5 Project Development Strategies The project development stage of the transportation planning process includes a more detailed scoping and design of the potential project, along with a more formal assessment of the necessary permitting and approval activities. Several strategies have proven effective in integrating freight issues into project development activities, as described in Table 4-5 and below. Techniques for Integrating Freight within the Transportation Planning and Programming Process 53 Needs Identification Strategies Data Private Sector Freight Expertise Institutional Support Incorporating Context Sensitive Solutions (CSS) into Freight Projects Key: Less Important More Important Addressing NEPA Requirements within Freight Projects Table 4-5. Relative importance of common stumbling points to project development strategies. Data Private Sector Freight Expertise Institutional Support Addressing NEPA requirements within freight projects.

Overview National Environmental Policy Act (NEPA) reviews often present challenges for freight-specific projects. Freight-specific projects can be jurisdictionally complex, occur in environmentally sensi- tive areas, and involve a wide range of public and private-sector transportation, resource, and environmental agencies. If this part of the process is not conducted properly, the result can be significant delays in project implementation as alternatives are re-reviewed and new stakeholders are brought into the process for the first time. Key Steps • Understand the NEPA process and explain requirements to project stakeholders. It is important to understand the NEPA process and how it applies to freight improvement proj- ects. It also is critical that the NEPA requirements and processes be clearly explained to project stakeholders. Clearly articulating the NEPA process, its requirements, the agencies involved, and how its results may affect freight project implementation is particularly im- portant for private-sector freight stakeholders, who may not be completely familiar with NEPA. • Identify key stakeholders and engage them early in the process. It is critical to identify proj- ect stakeholders (e.g., freight, environmental, and community) and engage them early in the planning process. Engaging different groups throughout the process allows potential environ- mental pitfalls to be identified and mitigation strategies to be developed prior to project implementation. It also can help build advocacy among the general public as well as local and regional decisionmakers, which is key to the successful implementation of freight improve- ment projects. • Identify key points of contact to facilitate interagency coordination during the NEPA process. Given the number of agencies that can become involved in NEPA processes, coordinating the activities during the project development and implementation process is a challenge often faced by state DOTs and MPOs. It is important that states and MPOs coordinating these activities first identify the agencies and entities involved and then identify a primary and a secondary point-of-contact for project-related matters. This can help ensure close coordination and regular exchange of information that can facilitate the design, envi- ronmental studies and compliance, and permitting activities associated with the project. Data Needs and Other Supporting Resources • Commodity flow/Volume data (see Table 5-2) • Freight Industry data (see Table 5-3) • Socioeconomic and Industry data (see Table 5-5) • NEPA and Transportation Decision-Making course (see Table 5-7) • Linking Planning and NEPA: Towards Streamlined Decision-Making course (see Table 5-7) • Freight Planning and Environmental Considerations course (see Table 5-7) Case Study—Calais-St. Stephen International Border Crossing 54 Guidebook for Integrating Freight into Transportation Planning and Project Selection Processes Over the last several years, the Maine and New Brunswick DOTs have been collab- orating, along with the U.S. General Services Administration (GSA), Canada Border Services Agency (CBSA), and U.S. Department of Homeland Security’s (DHS) Customs and Border Protection (CBP) to plan and design new border-crossing fa- cilities in Calais, Maine and St. Stephen, New Brunswick. (Continued)

Strategies to Link to the Traditional Process • Add resource agencies to freight advisory committees or similar groups. States and MPOs should include appropriate resource and other environmental agencies to existing freight advisory committee or similar groups to ensure that potential environmental issues are identified and addressed well in advance of project development. Engaging these groups early in the planning and programming process has the added benefit of building advocacy and consensus for freight-related projects while avoiding costly environmental delays. • Include environmental data in existing data collection and mapping activities. Geographic information systems (GIS) can be effective tools for identifying potential environmental issues associated with freight and other transportation improvement projects. Collecting environmental data and “overlaying” these data on proposed transportation improvements can provide insight into how improvements may affect sensitive environmental areas, relate to land use strategies, and affect certain communities. States and MPOs should work closely with resource and other environmental agencies to collect appropriate environmental data and incorporate it in existing GIS or other mapping tools. Techniques for Integrating Freight within the Transportation Planning and Programming Process 55 Many state, Federal, and provincial agencies and entities are involved in a border- crossing project. On the U.S. side, stakeholders include those commonly consulted as part of major transportation improvements, such as the Environmental Protec- tion Agency (EPA), the Fish and Wildlife Service, the U.S. Army Corps of Engineers, the GSA, agencies of the DHS, and the U.S. Coast Guard. On the Canadian side, similar agencies must be consulted, including provincial governments, the CBSA, and others. Finally, authorizations of the Federal Government of Canada and the U.S. State Department must be obtained before an international bridge may be constructed. The development of this project involved close coordination of the various state, Federal, and provincial stakeholders in the project. A Project Advisory Committee, made up of representatives from these stakeholders, was developed to ensure that key issues were identified and addressed in a timely fashion and that lines of communication among the various parties remained open. Two key elements contributed to the success of this group and allowed them to drive this project forward: 1. Points of Contact—Each of the primary agencies involved in the planning and development of this project (i.e., Maine DOT, NBDOT, CBSA, and GSA) identi- fied a primary and a secondary point-of-contact for project-related matters. This allowed the Project Advisory Committee to develop close relationships with the other agencies, improving their ability to identify and solve potential issues as they arose. 2. Regular Progress Reports—In addition to identifying points of contact at agencies, meetings of the Project Advisory Committee and other public meet- ings often began with progress reports from each of the key agencies. As part of these progress reports, information was provided on progress since the last meeting, planned activities over the next quarter, and unresolved issues/ required information.

Overview Context-sensitive solutions (CSS) is a collaborative, interdisciplinary approach that involves all stakeholders in developing transportation facilities that complement physical settings; pre- serve scenic, aesthetic, historic, and environmental resources; and maintain safety and mobility. Incorporating CSS principles throughout the transportation planning and programming process can provide a better understanding of project context and community values. CSS also provides a vehicle for early cooperation, coordination, and consensus-building among key transportation, economic development, and environmental agencies and communities. Incorporating CSS principles for freight-specific improvement projects can be challenging for several reasons. First, many freight facilities are already built on private property and require high degrees of interconnection with other existing facilities and networks. As a result, there are limited opportunities to relocate these facilities and CSS principles must be adapted when making improvements to these facilities. Second, some freight projects are planned and funded outside the state DOT or MPO process but affect the public-sector system and surrounding communities. In those cases, CSS issues may not arise until the permitting process and must be identified and incorporated during the project development process, possibly increasing costs and delays. Finally, freight movements are dictated by market forces and changes in these forces (e.g., demand, fuel costs, handling costs, and merger activities) can result in changes in freight volumes at facilities and along corridors. Changes in shipper logistics patterns or decisions can also affect mode choice decisions. As a result, freight facilities previously dormant could witness a rapid increase in operations, causing CSS and other environmental issues that might not have existed before. Despite these challenges, several states and MPOs have successfully incorporated CSS principles in freight improvement projects. By doing so, these states and MPOs have had an easier time overcoming potential environmental and other project development and implemen- tation challenges. Key Steps • Understand the project “context.” Understanding the “context” of the proposed improve- ment (i.e., its location: its proximity to community, cultural, historic, or environmental resources, and its potential effects on those resources) is a critical component of CSS. Quanti- tative and qualitative methods can be used to describe the context of a proposed improvement. Quantitatively, environmental, transportation, and historical/cultural data can be used (within a GIS) to understand potential environmental and community implications of transportation improvements. Such data may have been collected, analyzed, and mapped as part of a freight/industry profile and can be used in this phase of the transportation planning process to identify potential effects. Qualitatively, engaging key freight, community, and environmental stakeholders throughout the planning and programming process can help you understand the context and potential implications of proposed improvements. • Identify key freight and community stakeholders and engage them early in the process. Sim- ilar to addressing NEPA requirements for freight projects, identifying freight, environmental, and community stakeholders and engaging them early in the planning process is a key element 56 Guidebook for Integrating Freight into Transportation Planning and Project Selection Processes Data Private Sector Freight Expertise Institutional Support Incorporating context-sensitive solutions (CSS) into freight projects.

Techniques for Integrating Freight within the Transportation Planning and Programming Process 57 of successful incorporation of CSS principles. Balancing community, environmental, and freight transportation goals early in the process can help build advocacy for freight improve- ment projects and other freight-related planning activities. Data Needs and Other Supporting Resources • Commodity flow/Volume data (see Table 5-2) • Socioeconomic and Industry data (see Table 5-5) • Context-Sensitive Solutions course (see Table 5-7) • Freight Planning and Environmental Considerations course (see Table 5-7) Case Study—Merrick/Memorial Neighborhood Redevelopment Plan The West Springfield (Massachusetts) CSX rail yard has long dominated the physi- cal landscape and functioned as the economic engine for the surrounding Merrick and Memorial neighborhoods. The community’s rail heritage dates to the turn of the century when the prosperous rail yard was the center of the area’s industrial economy. The businesses that the rail yard attracts, the jobs that it creates, and the traffic and environmental effects that it generates all directly influence the quality of life for the more than 5,000 people who reside in the immediate area. Key issues included poor truck access to the yard (trucks used neighborhood streets) and an increasing volume of rail traffic at the facility, causing noise and air quality issues. The Pioneer Valley Planning Commission and the Town of West Springfield prepared a master redevelopment plan to assist efforts aimed at developing a redevelopment strategy for the West Springfield CSX rail yard and surrounding neighborhood. The plan was developed so that it would not adversely affect renewable energy sources or result in the waste of water, energy, or other natural resources. While open space in the Merrick and Memorial neighborhoods is limited, the plan encourages the development of additional areas for recreational use and seeks to enhance existing streetscapes with sidewalks and pedestrian amenities. The plan promotes building techniques that use land, water, and materials efficiently. Finally, significant mitigation measures, including increased signage and noise control measures, were identified. Strategies to Link to the Traditional Process • Incorporate “visioning” or “scenario planning” techniques within the long-range plan- ning process. Visioning or scenario planning techniques allow transportation planners to develop consensus-driven visions by analyzing various forces that affect future growth (e.g., health, transportation, economic, environmental, and land use). This is different from the tra- ditional “build versus no-build” alternatives analysis because it incorporates the analysis of long-term socioeconomic, transportation, industry, and land use trends and their effects on a region. Successful scenario planning actively involves the general public, freight and indus- try communities, and elected officials on a broad scale, educating them about growth trends and tradeoffs, and incorporating their values and feedback into plans. Engaging key statewide and regional stakeholders in this process can help DOTs and MPOs more effectively balance community, environmental, and mobility needs, as well as allow them to incorporate CSS principles early in the transportation planning and programming process.

• Include community, historical, and cultural data in existing data collection and mapping ac- tivities. As discussed earlier, GIS can be an effective tool for identifying potential community, historical, and cultural issues associated with freight and other transportation improvement projects. Collecting and “overlaying” these data on proposed transportation improvements can provide insight into how improvements may affect communities and can help DOTs and MPOs avoid conflicts during project development and implementation. 58 Guidebook for Integrating Freight into Transportation Planning and Project Selection Processes