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Transportation's Role in Reducing U.S. Greenhouse Gas Emissions ...

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<strong>Transportation's</strong> <strong>Role</strong> <strong>in</strong> Reduc<strong>in</strong>g U.S. <strong>Greenhouse</strong> <strong>Gas</strong> <strong>Emissions</strong>: Volume 1<br />

strategy. Fund<strong>in</strong>g could be targeted at those activities identified elsewhere <strong>in</strong> this<br />

report as hav<strong>in</strong>g the greatest potential for GHG reductions.<br />

This strategy would closely support technical assistance activities such as the<br />

application of improved plann<strong>in</strong>g tools and methods. It also would support any<br />

regulatory actions that require certa<strong>in</strong> types of plann<strong>in</strong>g or analysis. It provides<br />

flexibility to State and metropolitan agencies <strong>in</strong> terms of what GHG reduction<br />

measures to actually implement, but does not guarantee that any specific<br />

measures will be undertaken.<br />

Fund<strong>in</strong>g for GHG Reduction Strategies<br />

Federal fund<strong>in</strong>g also could be directed at specific types of transportation projects<br />

that have been demonstrated to reduce GHG emissions. For example, the<br />

Congestion Mitigation and Air Quality Improvement Program (CMAQ) could be<br />

expanded or revised, or a new program created, to also provide funds to all<br />

states and MPOs to support projects that reduce transportation GHG. Fund<strong>in</strong>g<br />

also could be directed at other modes not normally funded through the statewide<br />

and metropolitan plann<strong>in</strong>g process. CMAQ already is used to fund a variety of<br />

nontraditional projects—such as <strong>in</strong>termodal rail freight projects and passenger<br />

ferries—and consideration of GHG impacts could be another selection criteria for<br />

such projects.<br />

This type of approach would provide greater certa<strong>in</strong>ty that GHG reduc<strong>in</strong>g<br />

projects would be implemented, although the magnitude of such reductions<br />

would depend upon the types of projects funded and their level of use by<br />

consumers. While targeted fund<strong>in</strong>g can encourage specific activities, it can<br />

reduce flexibility to State and metropolitan agencies to meet locally def<strong>in</strong>ed goals<br />

and objectives. It also leaves fewer funds available to meet other needs, such as<br />

ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g the condition and performance of the exist<strong>in</strong>g transportation system.<br />

Performance-Based Fund<strong>in</strong>g<br />

Performance-based approaches could range from a modest amount of fund<strong>in</strong>g to<br />

reward certa<strong>in</strong> projects to completely chang<strong>in</strong>g how Federal fund<strong>in</strong>g is directed.<br />

The goal would be to reward activities result<strong>in</strong>g <strong>in</strong> the most cost-effective GHG<br />

reductions or areas achiev<strong>in</strong>g the greatest GHG reductions. A programmatic<br />

approach could, for example, take the form of a highway/transit formula factor<br />

that is based on transportation GHG per capita or is based on achieved<br />

reductions <strong>in</strong> transportation GHG per capita over time. In a performance-based<br />

fund<strong>in</strong>g approach, GHG is likely to be one of a number of performance<br />

measures, which may also <strong>in</strong>clude factors such as accessibility, safety, economic<br />

development, air quality, and livability. Resource decisions could be required to<br />

achieve certa<strong>in</strong> performance targets <strong>in</strong> several areas.<br />

A programmatic performance-based approach would allow each fund<strong>in</strong>g<br />

recipient the flexibility to choose the strategies that are most effective <strong>in</strong> widely<br />

vary<strong>in</strong>g circumstances. This approach could potentially be revenue-neutral<br />

overall for the Federal government, if there was enough revenue to achieve<br />

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