Laura Tyson – Why We Need a Second Stimulus – NYTimes.com

Laura Tyson – Why We Need a Second Stimulus – NYTimes.com.

Laura Tyson, member of the Presidential Economic Recovery Advisory Board (PERAB), describes important components needed in an infrastructure-focused second stimulus. The benefits of infrastructure investment are numerous, creating jobs several orders out beyond the road workers and civil engineers involved in construction. Building or rehabilitating functional assets facilitates long-term economic growth, energy efficiency, environmental protection, and individual savings from reduced commuting time and diminished vehicle wear and tear. Most of the argument is boilerplate (citing ASCE/CBO figures) but it represents a significant voice advising the President and is still right on the mark, regardless of how often these specific arguments are made or the political realities of getting anything passed with an obstructionist sophistic party impeding necessary action to ignorantly grandstand.

An increase in government investment in roads, airports and other kinds of public infrastructure would be cost-effective, too, as measured by the number of jobs created per dollar of spending. And it would help reduce the road congestion, airport delays and freight bottlenecks that reduce productivity and make the United States a less attractive place to do business. The American Society of Engineers has identified more than $2.2 trillion in public infrastructure needs nationwide, and a 2008 study by the Congressional Budget Office found that, on strict cost-benefit grounds, it would make sense to increase annual spending on transportation projects alone by 74 percent.

Over the next five years, the federal government should work with state and local governments and the private sector to finance $1 trillion worth of additional investment in infrastructure. It should extend the Build America Bonds stimulus program, which in the past year has helped states finance $120 billion in infrastructure improvement.

The federal government should also create and capitalize a National Infrastructure Bank that would provide greater certainty about the level of infrastructure financing over several years, select projects based on rigorous cost-benefit analysis, invest in things like interstate high-speed rail that require coordination among states and attract private co-investors in projects like toll roads and airports that generate dedicated future revenue streams.

Transportation User Fee Model Obsolete, But No Solution on the Horizon « The Transport Politic

Transportation User Fee Model Obsolete, But No Solution on the Horizon « The Transport Politic.

The only real solution for now is a second stimulus (infrastructure oriented) that keeps the trust fund solvent until the economy rebounds. This should be coupled with a phased-in increase in the gas tax (discrepancy right now is just $22B/year), the transition to VMT by 2020 (we should be moving heavily to all-electric cars at the same time) and the establishment of a robust, self-replenishing National Infrastructure Bank. We keep framing the debate as if these are hard but necessary choices but its not really as difficult as it seems. Wide support across the country exists for enhancing our infrastructure – it is more about central messaging and utilizing some political capital to back it. The public support and the demonstrable benefits of investment to infrastructure exist (4 Es – employment, economic growth, energy efficiency, and environment). Let’s get moving.

FYI Yonah Freemark is one of my heroes.

» Even as GAO reveals that nearly all states received more federal allocations than they contributed to the Highway Trust Fund, Congressional inaction continues.Supposed alternatives, like L.A.’s 30/10 plan, don’t address core issues.

Here’s how the Highway Trust Fund was supposed to work, back when it was created in 1956 to fund the Interstate Highway System: Congress would redistribute annual revenue from a series of fuel taxes on a proportional basis to states to cover the majority of construction costs of freeways from Maine to Montana. Over the past five decades, that system has worked well enough both to construct the United States’ massive roads system but also to keep it in relatively adequate condition — all by relying only on fees covered by direct users of the system. The understanding, theoretically shared by both drivers and politicians, was that the road system “paid for itself.”

Over the last few decades, however, that relationship has become increasingly tenuous. In 1983, the Mass Transit Account was created to fund public transportation with one out of every nine collected cents from drivers going to support rail and bus projects. In 1993, a 4.3¢ increase to the tax was allocated towards deficit reduction rather than transportation (though the money was eventually directed back towards roads in 1997). In the past two years, though, the user fee system has met its most challenging situation yet: Because of a refusal of the Congress to approve tax increases, a decrease in overall vehicle miles traveled, and an increase in the fuel efficiency of vehicles, the Highway Trust Fund is now paying out more than it collects for the first time — to virtually every state, according to the Government Accountability Office.

For proponents of the idea that federal transportation spending should be self-supporting, these facts come as a serious blow. They put in question both assumptions about the manner in which transport is funded in the United States and the long-term viability of that funding.

The biggest obstacle faced by the American transportation system is simply that we have run out of money to pay for it. The Congress has made little effort to advance any reauthorization of highway and transit allocations because of an unwillingness throughout the process to identify any tax increases that would be politically acceptable enough to pay for the system. The general fund has become the de facto financing source (leading to the aforementioned situation in which states contribute less in fuel taxes than they receive), but support for its continued use, despite its merits, remains unclear, leaving the whole transportation program in the lurch.

This situation has been exacerbated by the Obama Administration’s steadfast failure to support any tax increases during the recession: Transportation Secretary Ray LaHooddeclared late last month that not only is no fuel increase in the cards, but also neither is a vehicle miles traveled fee, the only realistic alternative. Mr. LaHood argued that tolls could fill the gap — but there are structural impediments blocking that idea; more significantly, the federal government has no direct control over road tolls, so any increase in funds would go to state governments, not the national government.

Though states have the potential to be strong supporters of public transportation, they currently have shown little interest in doing so, even in the most progressive states. Apart from municipal and metropolitan governments, the overwhelming contributor to the financing of transit capital projects has been Washington.

Recently, two new alternatives have been promoted. Ken Orski, an Associate Administrator of the Urban Mass Transportation Administration (now FTA) in the 1970s, commented last week in his Innovation Briefs that Los Angeles’ 30/10 transit plan was one significant option, since it promoted “fiscal independence” by allowing the federal government to “facilitate” but not be responsible for the financing of transit in ten years through low-interest loans that would eventually be paid back through thirty years of tax revenues. This argument has been repeated by several other sources.

This discussion, however, is disingenuous, since it does not reflect the fact that each of the public transportation projects being proposed for Los Angeles, from the Westside Subway extension to the Crenshaw Line, will require a financial commitment from Washington through the New Starts grant program. In other words, the federal government must still find the money to pay for these projects through direct funding — through 30/10, Los Angeles is just trying to speed the process up. This could potentially make the situation worse for the already cash-strapped U.S. Department of Transportation, since it would only increase the immediate demand for more national transportation funds!

Meanwhile, Orski points to the proposal of the libertarian Reason Foundation to simply direct all transportation funds raised through the fuel tax — including those currently used for transit projects — towards a “results-oriented” “Interstate 2.0″ highway program. This proposal is a reflection of Reason’s sense that Americans “have lost trust in the Trust Fund,” a sense that only conservatives seem to share, based on the understanding that it is unreasonable to use driver user fees to pay for bike, pedestrian, and public transportation projects.

This is a dangerously anti-multimodal point of view that fails to reflect the fact that there are significant benefits to the nation as a whole to invest both in highway and transit projects, no matter the source of revenue used to pay for them. Moreover, it does not consider a political reality that lobbies for the roads and public transportation are mutually dependent; there must continue to be a role for both in any future federal transportation financial structure.

I do not have a miracle solution to these problems other than to suggest once again that if the government wants to support a well-maintained national infrastructure, there is no choice but to increase taxes to do so — most of the “alternatives” are either just as reliant on federal investment as is the current system or represent an overall reduction in spending, the exact opposite of what is necessary. While it may be politically inconvenient to force through a tax increase, whether that means on fuel or income taxes, the United States has no real choice but to do so if it continues to desire a functioning transportation network.

William McDonough On Cradle-To-Cradle Design – Forbes.com

McDonough Partners

William McDonough On Cradle-To-Cradle Design – Forbes.com.

Former UVA Dean of Architechture William McDonough on building sustainable closed feedback loops in design.  ”Doing less bad is not doing more good.”

William (Bill) McDonough is perhaps best known for redesigning Ford Motor’s River Rouge plant with a vast green grass roof. But McDonough has morphed from pure architect to designer of everything. With the publication in 2002 of his book Cradle To Cradle: Remaking The Way We Make Things, McDonough unleashed a design revolution that began examining not just what things look like, but also the chemical makeup of things: water bottles, carpet, countertops. In the view of McDonough and his design partner Michael Braungart, a chemist, waste can be eliminated by making products that can be either recycled or re-used. McDonough spoke with Forbes Technology Editor Kerry Dolan about sustainability and the future.

Forbes: What’s your next project?

McDonough: The next project from the architecture side is NASA’s new Sustainability Base at the Ames Research Center at Moffett Field [near Mountain View, Calif., in the Bay Area].

We said, “Where is the energy going to come from?” instead of just saying “We’ll plug it in and try to be less bad by reducing our energy consumption.” That would be benchmarking. You can’t really benchmark innovation because you don’t leave the box. I mean, Google–one of our clients–didn’t benchmark the Encyclopedia Britannica.

So NASA had the question. “Where’s the energy come from?” Well, it comes from the sun. [i.e., solar power] “OK, now we need coolness. Where did that come from?” you think, “Well, below my feet is the coolness of the earth, 55 degrees. We’ll go there for coolness.”

The building is 7% under budget. The building will breathe. Basically the windows open and close, depending on when and where you need temperature and oxygen, stuff like that. It’ll probably be the most monitored building in the United States. The parking lots will have solar collectors over them, like they have at Google. We expect that the building will be a net energy exporter.

What are you going to do when the sun’s down to power this building?

There are a lot of strategies that’ll be starting to show up. Clearly batteries are one. And that’s something used in space. We will be exporting [excess solar power] to the grid and then borrowing it back from the grid [when needed].

Who or what have been your biggest influences?

I grew up in Japan and Hong Kong and then came to the States.

Japan was a huge influence on me because, as a child, I would hear the oxcarts come and collect our sewage at night out of our house from the latrine and then take it off to the farms as fertilizer. And then the food would come back in oxcarts during the day. I always had this sort of “our poop became food” mental model. The idea of “waste equals food” was pretty inculcated, that everything was precious and the systems were coherent and cyclical.

When we moved to Hong Kong everybody was in desperate shape, typically because they were refugees from Communist China and very poor and destitute. We had people dying of cholera and typhoid and typhus, starvation. Beggars used dead babies to get your sympathy. It was really quite another world. And it was sort of like living in the future. It was a crowded, desperate place with limited resources. You had four hours of water every fourth day.

When we moved to Connecticut, I was a teenager and went to high school. I went to a public high school in Westport. The first day in gym all the boys left the showers running with hot water, just left them on and went back to class. I was just in shock. I couldn’t believe it. And I’m still in shock. What are we doing here? Where are the values? So those things have been a big influence.

In design, people like Buckminster Fuller amazed me at the levels at which he could think.

He could think molecularly. And he could think at the almost galactic scale. And the idea that somebody could actually talk about molecules and talk about buildings and structures and talk about space just amazed me. As I get older–I’ll be 60 next year–what I’ve discovered is that I find myself in those three realms too.

Then the last thing, which is what I’m working on in a lot of cases, is synergetic: the idea that the Earth is a whole system. Fuller really had that range of interest that I think was inspirational that we could think at those scales altogether. I think at the molecular scale with our chemistry work and with Michael Braungart, who is my most influential influencer. He’s inspired me in so many ways.

On the buildings, I’m inspired by modernism. I see that idea that we need a new form as something critical. I mean, we do need to invent and not be benchmarking all the time. That’s important to me.

Are there things that you’re sick of?

I’m sick of people thinking that efficiency is going to be sufficient. I’m sick of seeing people say, “I’m going to reduce my carbon footprint,” and think that being less bad is being good. I’m sick of a lot of people saying, “I have recycled content. And that makes me good.” But they’re recycling PVC, and they’re providing carcinogens and plasticizers into children’s’ environments, claiming to be eco-warriors when they’re recycling cancer. I want healthy, safe things in closed cycles, not just being less bad.

What we do with our work, like our first textile, we did in 1993 with Michael and I. I was designing what it looked like, but we also wanted to design what it was. We looked at 8,000 chemicals in the textile industry and said, “No more cancer, birth defects, mutagenic effects, heavy metals.” And basically we reduced it down to 38 chemicals that were all safe and healthy. The fabric cost 20% less to make. It was clean enough to eat. It’s been selected by the Airbus 380. So if you find yourself at 40,000 feet with a fiber deficiency, you can eat your chair.

How has new technology changed what you do?

Certainly the Internet and the Web have been immensely helpful because we can catalog data with other practitioners on a global basis. That’s pretty exciting. The other thing for me, as a designer and architect, and for Michael Braungart, as a chemist, is that we can start to integrate whole systems and their cross benefits. So we can talk about the benefit to water is part of the benefit to energy, is part of the benefit to society, is part of the benefit to reverse logistics, is part of the benefit to soil and recarbonizing.

Technology helps because of its ability to manage data, to visualize data?

Yes, manage data and render visible interactions. People can get out of their silos, start to see whole systems and think whole systems.

In the era of quick knockoffs, is there still some value in original design?

I think the job of an original designer is to inspire. In that case the knockoffs are just something we hope for. Now the case of green architecture. We did the first green office in New York in 1984. We were very lonely, because we were the first architects in New York to starting asking, “What’s in a product and what’s it volatilizing in the commercial sector?”

Now the green building agenda is huge. It’s wonderful. And they’ve created this LEED standard, [for rating how energy efficient and green a building is] which is benchmarking, which is a good thing to do because most people need checklists. You need standards as reference points. And my job is not to accept that. My job it to push past all that.

South Korea’s “City in a Box” Testbed

The City of the Future – ABC News.

While I’m not totally sold on the long-term success of “cities in a box,” I think these massive testbed environments could provide enormous amounts of beneficial city planning information especially regarding efficient energy generation/delivery/usage, broadband communication, public transit, and even trash/sewage management.

Water’s Fundamental Role in Iraq

Could Water Undermine the American Game Plan for Iraq? Will Rogers. Center for a New American Security – June 21, 2010.

Public efficacy in Iraq’s government and America’s military presence will require the re-establishment or generation of public infrastructure systems that work – ensuring that the proceeds from Iraq’s natural bounties translate into general development especially concerning the power, water, transportation, communications, education, and healthcare systems. Will Rogers takes a look at the vital role water systems for individual and agricultural use will play in the fledgling democracy’s long-term growth and stability.

In Iraq, a country where one in four citizens  do not have access to safe drinking water – let alone enough water to irrigate their crops — water shortages could drown any hope of long-term, meaningful reconciliation between the Iraqi people and the government.

Many Iraqis have been pleading to Baghdad to devote more resources to shore up the country’s crumbling infrastructure and unsustainable water management policies in order to effectively tackle the chronic water challenges that have been exacerbated by four-years of drought. “If our government was good and strong, we would get our [water] rights,” one Iraqi told The New York Times recently.

Ali Baban, Iraqi Minister of Planning and Development Co-operation, warned last July that Iraq’s intense drought conditions could push the frail state to a breaking point. “We have a real thirst in Iraq. Our agriculture is going to die, our cities are going to wilt, and no state can keep quiet in such a situation,” he cautioned. But with the government still in limbo after the recent March 7 election, it is unlikely that Baghdad will have the capability or capacity to address these water woes anytime soon.

Acute water shortages continue to shape internal security dynamics, forcing Iraqis to flee their native communities in search of better resources. Iraq’s Minster of Water, Dr. Abdul Latif Jamal Rashid, stated last year that more than 300,000 marshland residents were forced to flee their drought stricken communities in recent years. To make matters worse, in provinces where access to water is slightly better, the tattered infrastructure of pipes prevents much of that water from reaching Iraqis in their homes, forcing them to rely instead on water trucks from the International Committee of the Red Cross and other NGOs to supply fresh water.

Iraq was once a paradise, the wheat basket of the Middle East, with lush marshes and river ways that sustained a vibrant agricultural community and fresh-water fisheries. Even today, while agricultural production accounts for only 10 percent of Iraqi GDP, it has long been a hallmark of Iraq – producing wheat for world renowned German beers and the region’s most popular varietal rice, Anbar rice.

In recent years, many of Iraq’s crops have been left parched and its fragile agricultural industry in disarray – leaving Iraqi farmers in a veritable dustbowl. Barley and wheat production has declined up to 95 percent in provinces that rely on rain-fed irrigation, while total barley and wheat production declined by more than half last year. Meanwhile Iraq’s date industry – once the world’s leading exporter – is dwindling. At its height in the 1980s, Iraqi date farmers produced 600,000 tons of dates; in 2008, production dropped to 281,000 tons with production continuing to decline as drought worsens.

Regional politics and perennial drought throughout much of the Middle East have not helped Iraq navigate its water crisis either.  Voluntary commitments from neighboring Iran, Turkey and Syria to increase water flow from upstream dams and reservoirs have been made over the last several years, but Iraq has not seen much increase in downstream water flow. The lack of credibility in the new government may also be hampering its ability to get its neighbors to execute on those commitments.

While much attention is understandably on Afghanistan, U.S. national security policymakers should be aware of the challenges that could shape the future security environment in Iraq – especially as the new government in Baghdad struggles to stand on its own. Water shortages alone won’t cause a resurgence of violence, but the issue could be the straw that breaks the back of a (weak) fledgling government. As the United States looks ahead for opportunities to ensure long-term stability in Iraq, access to water may well be critical to the new Iraqi government’s credibility and our ability to responsibly withdraw.

Could 2010 really be the year that Iraq begins to unravel? Maybe. Maybe not. But one thing is clear: the broad outlines of a post-occupation Iraq are beginning to take shape, and some of the acute challenges that have been marginalized in the post-war years could increasingly undermine Baghdad’s credibility and long-term stability. If left unaddressed, water shortages could very well leave Baghdad hanging out to dry — and us, too.

Rebuilding America’s Prosperity

Overcoming our infrastructure deficit – Rep. James Oberstar. Politico – June 28, 2010.

As a key proponent for the Surface Transportation Authorization Act, Rep. Jim Oberstar (D-MN) is keenly aware of the array of challenges facing America’s built environment. While STAA is not a panacea solution for our ailing infrastructure, it is a supreme start in the right direction containing many reforms internal and external to DOT that will provide the planning, finance, and execution support needed to bring US infrastructure back to world-class.

The U.S. surface transportation system was once the envy of the world. In recent decades, however, our roads, bridges, trains and transit have slipped into decline while other nations have made robust investments.

In 2008, the National Surface Transportation Policy and Revenue Study Commission called for an annual investment of $250 billion from federal, state and local governments for the next 50 years to meet our transportation needs. The commission also reported that the current level of investment is less than 40 percent of that.

Unfortunately, at a time when we need to direct more money to transportation, the political will to dedicate resources to this purpose is sorely lacking.

One big problem is that the main source of revenue for surface transportation has not kept pace with our needs.

The Highway Trust Fund is sustained primarily by federal fuel taxes. President Dwight D. Eisenhower initiated this fund when he imposed a 3-cents-per-gallon tax on gasoline to pay for the Interstate Highway System. There was little opposition in Congress because it operates like a user fee. The people who pay the tax are the users of the facility it finances.

Even the leading fiscal conservative of our age saw the benefit in the user-based fee to keep our transportation system healthy. This is what President Ronald Reagan said when he proposed a 5-cents increase in the fee in 1982:

“We simply cannot allow this magnificent system to deteriorate beyond repair. The time has come to preserve what past Americans spent so much time and effort to create. … America can’t afford throwaway roads or disposable transit systems. The bridges and highways we fail to repair today will have to be rebuilt tomorrow at many times the cost.”

The user fee is now 18.4 cents per gallon for gasoline. However, as a flat per-gallon fee, the rate is not affected by fluctuations in fuel prices and has remained static since 1993.

In 1993, the average price of a gallon of gas in mid-Atlantic states was $1.09, according to the Department of Energy. Today, the average price is $2.70 . In between, it has reached as high as $4.11.

But the user fee has remained unchanged, even as construction costs have spiked 84 percent.

If we do nothing, our situation will only get worse. And our economic health, quality of life and roadway safety will suffer for it.

If we try to do what we can with current revenues, our efforts will fall short and the results will be much the same.

There is no one-size-fits-all revenue solution to this situation. Addressing the needs of a 21st-century transportation network requires a comprehensive, transformational approach. We must also face some difficult choices.

But I am certain that, with vision and determination, we can overcome these obstacles — as we have done so many times in our nation’s history.

Alas, the political atmosphere today is not welcoming to the task. Our economic troubles have taken precedence over our transportation needs in the public arena.

The American Recovery and Reinvestment Act of 2009 has supplied some $36 billion out of the general fund for highway and transit projects and created thousands of jobs over the past 14 months. But it is no substitute for a long-term, $500 billion transportation authorization bill as proposed by the Committee on Transportation and Infrastructure.

Since Eisenhower’s bold vision in 1956, surface transportation programs have been “pay as you go.” Funding for transportation improvements come from the Trust Fund, supported by the user fee.

Since 1997, the Trust Fund has been firewalled to prevent its money being used for any purpose other than transportation. As a result, we inherited a completely paid-for and world-class surface transportation network that fostered more than 50 years of unparalleled freedom, mobility and economic prosperity.

We cannot allow future generations to receive anything less.

We need only to find the political will to make it so — as Eisenhower did, as Reagan did and as so many others have before us.

Rep. James Oberstar (D-Minn.) is the chairman of the House Committee on Transportation and Infrastructure.

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