Action Plan

Overview

Governor Rick Perry wrote Transportation Commission Chairman John W. Johnson on January 30, 2002 to outline his vision for the Trans Texas Corridor. The Governor asked the three-member commission to assemble the Texas Department of Transportation’s top talent to create and deliver a Trans Texas Corridor implementation plan in 90 days.

This report details what the corridor will look like, identifies four priority segments and discusses how the project can be funded.

Texas needs to move quickly in developing the corridor segments that will generate the highest toll level—revenue that will enable TxDOT to extend the corridor into every section of the state. What follows is an action plan that sets out what needs to be done to transform this innovative transportation concept into reality.

TxDOT actions

August 2002

Designate Trans Texas Corridor Office

The department will designate a central office to oversee the development of the Trans Texas Corridor.

Strengthen and market regional mobility authorities

Regional mobility authorities, created by the Texas Legislature, will have a critical role in the success of the Trans Texas Corridor and other local transportation projects. In addition to steps already taken, TxDOT will enhance these authorities through the following means:

• Inform the public, local governments and private entities of the advantages of regional mobility authorities, toll roads, leveraging funds and the use of surplus revenue as a catalyst for other projects.

• Provide greater responsibilities to regional mobility authorities in the development of Trans Texas Corridor segments.

• Create evaluation tools outlining project development and establish partnering methods TxDOT and regional mobility authorities can use to combine resources.

•  Provide information to the private sector on toll equity and exclusive development agreements.

September 2002

Market initial segments

• The department will market and accept proposals for the priority segments. The four priority corridors parallel:

• I-35, I-37, I-69 (proposed) from Denison to Rio Grande Valley.

• I-69 (proposed) from Texarkana to Houston to Laredo.

• I-45 from Dallas-Fort Worth to Houston.

• I-10 from El Paso to Orange.

Reach out to the public

Exchanging ideas about the Trans Texas Corridor is critical to its development. The first phase of TxDOT’s public outreach effort will include:

• Setting up a central clearinghouse for public information about the Trans Texas Corridor.

• Holding numerous public meetings throughout the state.

• Developing a public information campaign. This will include putting up a Web site, producing a newsletter and other outreach efforts.

Reach out to stakeholders

• Meeting with major stakeholders such as local, county and state elected officials, regional governments, surrounding states, Mexico and corporations.

• Involving stakeholders will also rely on public information efforts.

January 2003

• Begin environmental review public meetings.

• The department will begin environmental studies and the records of decision process for the first four corridors. Using the comprehensive public involvement process for I-69 (proposed) as a model, public meetings and hearings will be held in tandem with the work of resource agencies. The public will be engaged throughout the process.

• Right of way acquisition for purposes of corridor preservation will begin as soon as the transportation corridor environmental reviews are completed. Priority will be given to the first segments identified above.

United States Congress

August 2002 through December 2003

In the absence of rising revenues, Congress has gradually turned toward the innovative use of limited funding. The Transportation Equity Act for the 21st Century will be reauthorized in 2003, providing Texas an opportunity for greater flexibility in meeting its transportation demands. Recommended changes to the federal act are listed below. Further detail can be found in individual chapters of this report.

• Establish a schedule for buying portions of federally funded highways for the purpose of tolling by regional mobility authorities.

• Increase the rate of return Texas receives on its fuel tax dollars sent to Washington.

• Permit the movement of funds among federal programs to construct comprehensive transportation systems.

• Streamline the environmental and project review processes.

• Waive the 20 percent state match for federally funded projects. Permit "donor" states (those that contribute more money to the Highway Trust Fund than is returned) to receive 100 percent reimbursement for project expenditures.

• Allow private entities to issue tax-exempt bonds for highway projects. This is common practice for airport, seaport and transit projects and should be for an undertaking like the Trans Texas Corridor as well.

• Increase funding levels for, and guarantee Texas a share of, High-Speed Rail Grants and Railroad Rehabilitation and Improvement Financing.

• Allow toll credits to be derived from projects that include federal funds. This can be accomplished on a pro rata basis gauged by the amount of federal dollars apportioned to a project.

• Seek federal funding for the study and development of new freight, high-speed passenger and commuter railroads.

Texas Legislature

January 2003 through May 2003

Many statutory tools are in place, but changes in state law will be necessary to realize the full benefits of the Trans Texas Corridor. The changes are listed on the following page. Further detail can be found in individual chapters of this report.

The first segments of the Trans Texas Corridor will advance more rapidly with start-up financing from the Texas Mobility Fund. The fund will require capitalization and the removal of limitations on its ability to provide toll equity financing.

• Create a new chapter in the Texas Transportation Code specific to the Trans Texas Corridor. This chapter would incorporate existing acquisition and funding authority granted to TxDOT and grant additional authorization to expedite the process as well as provide flexibility in dealing with utilities, railroads and private landowners.

• Amend state law to authorize TxDOT and certain other entities to acquire property by purchase or condemnation for rail and utility purposes (including entering into franchise agreements).

• This will include the authority to acquire additional right of way and lease it to private entities for a profit.

• Clarify and expand TxDOT’s authority to enter into contracts with private entities (including exclusive development agreements) for development of all types of transportation projects.

• Remove the restriction that limits the number of projects financed through exclusive development agreements.

• Grant an exception to Chapter 181 of the Texas Utility Code to allow TxDOT to charge public utilities for placement of their facilities within corridor right of way. TxDOT also needs general authority to charge public and private concerns for utility, commodity or data transmission.

• Permit environmental expenditures that will benefit a future need (i.e. land banking) as well as immediate needs caused by a particular taking or improvement.

• Provide an incentive for property owners at the time of purchase by granting a percentage of future toll receipts (in the nature of a royalty interest) in lieu of full cash payment.

• Regional mobility authorities will require the ability to issue debt, condemn property, set tolls, enter into exclusive development agreements, direct utility installations and exercise other appropriate means to fully develop turnpike projects.

• Authorize existing toll authorities to expand their operational and jurisdictional boundaries for purposes of constructing segments of the corridor.