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4.4 Type III Guidelines over time. Therefore, the Type I and II guidelines presented
should be reviewed for applicability to Type III institutional
Type III guidelines build on the Types I and II guidelines arrangements. Type III guidelines focus on consensus build-
and specifically address the needs of Type III institutional ing, organizational structure, leadership, risk reduction, cost
arrangements. Type III arrangements are organizations that and schedule control, and ongoing mitigation of challenges
implement freight-related projects. These differ from Type II or obstacles. Table 4-4 summarizes the Type III guidelines.
in that they typically represent a formalized organization The examples presented in Table 4-4 are described in detail
designed to address one particular need or program, rather in Examples 4.4-1 through 4.4-3; full detailed case studies are
than competing projects or programs. These organizations given in Appendix C.
are responsible for need identification, project definition,
and project implementation. Project implementation en-
tails environmental approvals, design, right-of-way acquisi- Guideline 23. Build consensus on specific
tion, utility relocation, construction, mitigation of project project parameters.
impacts, and financing. In addition, some arrangements
transition into operating authorities following completion Consensus on the scope of the project is essential. If there
of construction activities. Construction activities can range is uncertainty about the scale or location of the project, de-
from physical capacity improvement projects to new uses of lays will occur and costs will rise. Key considerations include
technologies to streamlined operations. Type I through III project design, development of the preferred alternative, and
guidelines represent a progressive process that grows more identification of specific costs and benefits. Having a clear un-
specific and detailed as the mission of an institutional arrange- derstanding of the distribution of benefits is necessary for
ment becomes more focused and specialized. Most, if not productive negotiations on project design, location, and
all, Type III institutional arrangements should follow all the funding responsibility (including funding responsibility for
defined guidelines as they work through their development. mitigation measures). Unfortunately, many projects never
In fact, many begin as a Type I and progress to a Type III get beyond this stage.
Table 4-4. Summary of Type III guidelines.
CREATE
CVISN
ACTA
Guideline
23 Build consensus on specific project parameters
24 Seek out champions and develop a diverse coalition of interest groups
25 Provide a neutral forum
26 Secure private-sector involvement/commitment
27 Develop mitigation strategy for project impacts
28 Establish clear decision-making authority
29 Remain focused on defined mission
30 Adopt a product orientation
31 Identify, monitor, and address obstacles
32 Develop partnership agreements
33 Negotiate third-party agreements early
34 Allocate risk between owner and contractor
35 Establish funding firewalls and sunset clauses
36 Consider Design-Build procurement
37 Understand how bond rating agencies make decisions
38 Establish cost-sharing structure
39 Maintain adequate contingency and reserves
40 Maximize use of available funding cycles
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Guideline 24. Seek out "champions" and be developed. This strategy should detail all the activities that
develop a diverse coalition of interest will be required to conform to the requirements. A team of
groups to support the project. experts should be developed to lead the implementation of
this strategy. Having a visible strategy will also communicate
Champions are people in positions of authority (e.g.,
to key stakeholders that mitigation activities are being given
elected officials, major industry owners, and agency Board
the necessary focus.
presidents) who can advocate the merits of the project. Such
champions are often helped in their lobbying efforts when
they are supported by a broad coalition of interest groups Guideline 28. Establish clear decision-
(e.g., chambers of commerce, individual companies, major making authority.
shippers, carriers, and environmental groups). Supporters In the public works arena, it is critical to know who has
of a project can write letters to key decisionmakers to pro- authority to make what decisions so that the project is not
mote the project. Although the need for a champion was in- delayed while waiting for decisions to be made. Within each
troduced in the Type I guidelines, it is re-emphasized in organization it is important to clearly identify at what level
Type III to address the complexities of project development in the organization decisions can be made.
and construction. Breaking ground on a project often de-
pends on the consistent efforts and commitment of one or
more champions. Guideline 29. Remain focused on the
defined mission.
Guideline 25. Provide a neutral forum. Over the course of project design and construction, there
often is pressure from stakeholders to broaden the scope of a
Major new projects affect a vast array of stakeholders in-
project in order to spread the benefits. This can lead to an in-
cluding system users, local communities, and funding and op-
creased scope, resulting in cost increases and schedule lapses.
erating entities. By providing a neutral forum, a level of con-
Although not analyzed in this study, the "Big Dig" project in
fidence can be built among the stakeholders that will minimize
Boston is often cited as a project that allowed many additional
conflicts and help ensure that the final outcome will provide
scope changes in response to constituents' demands, leading
the most equitable situation for all affected. The neutral forum
to cost overruns and schedule delays.
provides a venue to ensure that all stakeholders have an equal
opportunity to provide input regarding development of
acceptable solutions. Guideline 30. Adopt a product orientation.
Many arrangements are process driven, designed to bring
Guideline 26. Secure private-sector stakeholders together for a common purpose. However, for
involvement and commitment. Type III arrangements, the focus must be on the defined
Specific projects and/or new organizations and authori- product. Agencies that are more interested in achieving ex-
ties must provide new or improved conditions for the af- plicit goals and producing well-defined products are often
fected stakeholders. For example, a new tolled truck-only more successful in controlling costs and keeping on sched-
corridor will be used by industry only if the benefits out- ule than agencies that are primarily process oriented. Fol-
weigh the additional user costs. As projects are designed and lowing bureaucratic procedures is important, but when pro-
constructed, these stakeholders must be involved to ensure cedures hinder producing the project on time or on budget,
the outcome adds value. A commitment by these stakehold- adjustments to the processes should be considered. Being
ers to use the new capacity or program requires outreach focused on specific goals will foster concurrent, rather than
throughout the process. sequential, processing of key activities.
Guideline 27. Develop a mitigation Guideline 31. Identify, monitor, and
strategy for project impacts. address obstacles.
One of the key challenges of a major infrastructure project It is important to continually monitor potential obstacles
is the required mitigation activities. Mitigation often refers to and develop action plans to resolve them in a timely manner.
environmental impacts, but can also include quality-of-life There often is a tendency to put off defining and implement-
and community impacts as well as traffic impacts. For a project ing solutions. Such delay wastes money and can result in the
to address these requirements successfully, a strategy should termination of the project.
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Guideline 32. Develop partnership stated purpose and that after the project is completed, the
agreements. fees will go away. Stakeholders responsible for paying these
user fees must understand how the funds will be used and
Partnering agreements among the owner, designer, and how long the fees will be charged. This helps build accept-
contractor can minimize disputes and shorten the time to ance for the cost. Building support for these fees is critical.
resolve differences that may arise. These agreements estab- If the project does not provide significant benefits, the costs
lish responsibilities and ensure each partner is vested in the will not be accepted and facility users will find alternate
project. These agreements are similar to MOUs; however, routes.
they go a step further by putting key stakeholders on an
equal platform, with defined responsibilities for ensuring
Guideline 36. Consider Design-Build
project success.
procurement, particularly for revenue-
driven projects.
Guideline 33. Negotiate third-party
agreements early. With Design-Build procurement, design activities can over-
lap construction to some degree, thus saving valuable time. In
Agreements with utilities for relocation or protection of fa- addition to saving time, Design-Build procurements can allow
cilities affected by the project can be time-consuming and for contractor innovation.
costly. Typically, these discussions focus on who has prior
rights and thus who is responsible for paying for the reloca-
tion or protection. Another time-consuming task is negotiat- Guideline 37. Understand how bond rating
ing with municipalities for city permits for work involving agencies make decisions.
city-owned facilities (e.g., sewers, water lines, traffic signals, Many agencies need to borrow funds in order to fund a
curbs and gutters, and striping of streets). Cities often use major project fully. When asked to assess credit risk, the bond
these negotiations to request extra mitigations such as urban rating agencies (Fitch, Moody's, and Standard & Poor's) re-
design improvements, aesthetic treatments, landscaping, and view all potential risks to a project. Project management skills
other enhancements. All of this takes time, so project owners
and ability to control costs and keep on schedule are just a few
do well to address these issues early. Without agreements in
of the items reviewed by rating agencies. It is prudent to un-
place early in the program, the risks to the project can be much
derstand what these agencies look for and to plan accord-
greater. These agreements can take the form of MOUs, which
ingly. This management advice is useful for any project, even
specify the responsibilities of the various parties as construc-
if revenue bonds are not involved.
tion proceeds.
Guideline 34. Allocate risk between owner Guideline 38. Establish a cost-sharing
and contractor. structure.
Before signing a construction contract, it is important to de- The construction of a major project probably will rely on
cide how risks will be shared between the contractor and owner a mix of funding sources. It may include issuance of private
for unexpected cost increases due to constructability issues, or municipal bonds, local or state transportation funding,
unknown conditions, hazardous materials encountered, miti- private-sector funding, or user fees. The success of the project
gation requirements, and so forth. For example, depending on will depend on the ability to provide funding on an as-needed
the scale of the project, it might be appropriate to agree that the basis throughout construction. Delays can hinder the schedule,
first $X million cost of addressing an unknown condition support for, and overall outcome of the project. A plan should
would be the contractor's responsibility, the next $X million be in place to effectively manage the available funds, including
the owner's responsibility, and anything beyond that a 50-50 match requirements, contracting requirements, and flexibility
responsibility between owner and contractor. to address issues that arise during the project.
Guideline 35. Establish funding firewalls Guideline 39. Maintain an adequate
and sunset clauses. contingency and reserves.
For projects that involve user fees or tolls, it is critical to The success of many large infrastructure projects depends
provide safeguards to reduce investor risk. No one likes to on adequate funding. In many instances, initial resources fall
pay fees, but the risk to the private sector can be reduced if short of total costs because of unforeseen circumstances (e.g.,
there are assurances that the funds will only be used for their complications with environmental mitigation requirements
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or changes in design). To keep a project on schedule, it is nec- slip away. Sometimes agencies believe that they are "not
essary to have access to contingency funding. ready" to apply or think that the competition is too great. As
a result they often miss out on funding opportunities. It is im-
portant to get the project in queue, get the project known, in-
Guideline 40. Maximize the use of
crease the project's visibility, and tout the merits of the proj-
available funding cycles.
ect at every opportunity. Requests for project information
Project sponsors should seize on all potential opportuni- from key decisionmakers should be met. Each opportunity
ties for funding and not let deadlines for applying for grants provides a new opportunity for success.
Example 4.4-1. Alameda Corridor Transportation Authority
The Alameda Corridor in Southern California is one of the nation's largest and most successful public
works projects. Combining capacity improvements and environmental enhancements, the project dra-
matically improved railroad access to the largest port complex in the United States. The purpose of the
project was to consolidate harbor-related railroad traffic onto a single 20-mile corridor between the ports
of Long Beach and Los Angeles and the railroad mainlines near downtown Los Angeles.
The project was designed to build consensus on the following project parameters: impacts of trains on
grade crossing delays (e.g., vehicular delay, emergency vehicles), noise impacts in residential areas, air
quality concerns, efficiency of train operations, potential challenges to future port growth proposals, and
facilitation of international trade. To get the process started, the Southern California Association of Gov-
ernments (SCAG) created a Ports Advisory Committee (PAC). This committee brought together a diverse
coalition of interest groups to begin the communications and consensus-building process. PAC members
included local elected officials, as well as representatives of the Ports of Los Angeles and Long Beach, the
U.S. Navy, the U.S. Army Corps of Engineers, affected railroads, the trucking industry, and the Los Ange-
les County Transportation Commission (LACTC). During this phase, the effort could have been described
as a Type I institutional arrangement, dedicated to consensus building, information sharing, identifying
obstacles, and building trust. As the concept for the Alameda Corridor progressed, the arrangement
transitioned to Type III--one focused on implementing a specific project. SCAG created the Alameda Cor-
ridor Task Force (ACTF), with a membership similar to the PAC but including the California Public Utili-
ties Commission and each of the cities along the corridor. The ACTF created the Consolidated Transporta-
tion Corridor Joint Powers Authority in August of 1989. The agency changed its name to the Alameda
Corridor Transportation Authority (ACTA) in November 1990.
In 1995 ACTA hired a program management entity called the Alameda Corridor Engineering Team (ACET),
which is a joint venture of four major engineering firms. This joint venture and its subcontractors were
responsible for preliminary design, environmental reviews, engineering and construction oversight, and
other key aspects of the project. Staffing for ACET has varied over the life of the project in response to
the need for engineering and construction services. This project management team established decision-
making authority and made it clear at what level in the organization a decision could be made.
ACTA's primary mission was to design and construct the Alameda Corridor Project. There was a strong
mandate to complete the project on time and on budget. The dedicated focus on the primary mission of
the project helped keep it from costly overruns and schedule delays. The commitment to the product, as
opposed to just the process, also helped ACTA accomplish its mission in April 2002 when the project
opened for service. ACTA had a reputation for focusing on the principal objective of completing the proj-
ect on time and on budget.
ACTA awarded consulting contracts through a qualifications-based selection process. Traditionally, con-
struction projects are awarded through the Design-Bid-Build process; however, ACTA's largest contract
for the mid-corridor trench was awarded on a Design-Build basis. In 1997, ACTA evaluated the pros and cons
of the Design-Build approach for the Mid-Corridor contract. It was estimated that with the traditional
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Example 4.4-1. (Continued)
Design-Bid-Build approach the project could not be completed until 2003. ACTA concluded that, in order
to make the project financially feasible, an earlier delivery date was required. Considering Design-Build
procurement allowed ACTA to (1) reduce the overall completion time by approximately 18 months by
enabling the design and construction phases to overlap; (2) facilitate a bond sale through earlier identi-
fication of total project cost and shift much of the project risk to the contractor; and (3) encourage con-
tractor innovation through early participation in the development of the project.
ACTA paid special attention to the risk allocated between the owner and the contractor. They devel-
oped a risk-allocation matrix as a framework for negotiation of design-build construction contracts. It was
especially important to decide ahead of time how risks would be shared between the contractor and
owner for unexpected cost increases due to constructability issues, unknown conditions, hazardous mate-
rials encountered, and other issues that might arise.
ACTA negotiated several complex agreements with corridor cities, utilities, railroads, and other stakehold-
ers. For example, when SCAG adopted the plan for the consolidated railroad corridor in 1984, the railroads
were generally opposed because they had their privately owned tracks and they thought the government
should not attempt to force them to share a common right-of-way. Improving the efficiency of the rail
line and facilitating the movement of international cargo were important objectives, along with the goals
of reducing vehicular delays at grade crossings, improving emergency vehicle access, reducing noise in res-
idential neighborhoods, and reducing air pollution. Negotiating agreements with the railroads took sev-
eral years. A major issue was the competitive nature of the private railroads. The ports and railroads also
negotiated construction and maintenance agreements and use and operating agreements. Without these
third-party agreements in place early in the program, the risks to the project would have been much
greater. In addition, it was important to have the right assurances in all agreements such as establishing
funding firewalls and sunset clauses. ACTA built these guarantees into its agreements with the railroads.
Although there was no public opposition to the project, during the environmental review process, there
were local disagreements over project design. The corridor cities preferred a lowered railway--i.e., a
trench--but the ports preferred an at-grade railway with standard grade separations. During this debate
over project definition, ACTA faced significant funding shortages. ACTA used the EIR and EIS processes
to compare and contrast alternative project designs and to identify mitigations for environmental impacts.
Several variations of the at-grade and the depressed railway options were analyzed. In the end, the final
configuration included standard grade separations at the north and south ends and a lowered railroad
in the mid-corridor. Other important compromises were negotiated on alignment and design, including
aesthetic treatments along the entire 20-mile corridor. These agreements could not have been reached
without extensive technical studies, including preliminary engineering and the EIR/EIS, and painstaking
negotiations with project stakeholders.
ACTA faced several critical challenges and issues during the course of this project, including project defini-
tion, governance structure, relations with corridor cities, railroad cooperation and participation, funding,
construction and project delivery, environmental compliance, disadvantaged business enterprise participa-
tion, job training, and local participation. ACTA continually identified and monitored all potential obsta-
cles and then addressed them early to determine resolutions as soon as possible. In addition, with a com-
plex project like the Alameda Corridor, ACTA deemed it prudent to maintain an adequate contingency. It
had a $200 million contingency fund to start, which provided a mechanism to pay for unforeseen obstacles.
One of ACTA's biggest challenges was to raise additional funds beyond the initial seed money provided by
the ports. ACTA acted on any opportunity to maximize the availability of a funding cycle in order to raise
all the funds necessary for the Alameda Corridor Project. For example, in the early 1990s, the Los Angeles
County Transportation Commission (LACTC) was responsible for programming state and Federal funds in
(continued)
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Example 4.4-1. (Continued)
Los Angeles County. Initially, ACTA was frozen out of the competition for these funds because there was
no category in which to compete. The Alameda Corridor was not a freeway project, a light rail project, or
any of the other categories established by the LACTC. For 2 years ACTA lobbied for a new category on the
basis that goods movement projects such as the Alameda Corridor are essential for reducing congestion and
air pollution and for maintaining a healthy economy. Ultimately, the LACTC and its successor agency, the
Los Angeles County Metropolitan Transportation Authority (MTA), provided a major financial contribution
to the project. For projects funded with revenue bonds, it is necessary to understand how bond rating agen-
cies make decisions. Many aspects of a project are reviewed by these organizations and can make a differ-
ence in what type of and how much credit might be available and at what interest rate.
The Alameda Corridor cost $2.43 billion. Much effort was given to secure this large sum of money. In
addition to never missing an opportunity to apply for a funding cycle, a cost-sharing structure was estab-
lished to secure necessary funding from various sources. The largest component of ACTA's funding came
from a $1.1 billion revenue bond sale in January and February of 1999: $520 million in tax-exempt bonds
and $643 million in taxable bonds were sold. Funding also included a $400 million Federal loan. This loan
later became the inspiration for the Federal credit program for transportation projects of national or
regional significance authorized by the Transportation Infrastructure Finance and Innovation Act of 1998
(TIFIA). In 2004, ACTA pre-paid and replaced the Federal loan by issuing $475 million in tax-exempt bonds
and $211 million in taxable bonds. The ports contributed $394 million for the purchase of needed railroad
right-of-way. The MTA provided $347 million in Federal, state, and local grants. Of that amount, the
Federal government provided only $80 million of grant funds (3% of the total project costs). Another
$130 million came from miscellaneous sources, including income from investing bond and loan proceeds.
Example 4.4-2. Chicago Region Environmental and Transportation Efficiency Program
The Chicago Region Environmental and Transportation Efficiency Program (CREATE), a public-private
partnership created in 2003, includes the state and city transportation departments, the passenger
rail services Metra and Amtrak, and six of the largest North American freight railroads (i.e., BNSF, CN,
CP, CSX, NS, and UP1). The CREATE Program consists of approximately 78 projects of national and
regional significance aimed at addressing existing and future congestion issues on the rail system, which, if
not addressed, are expected to adversely affect the national economy and the transportation system.
The CREATE Program is an excellent example of engaging private industry in capital investments that will
intrinsically benefit them as well as the public sector. CREATE represents the first time the public sector
(state and local government) has partnered with the railroad industry to solve the urban rail congestion
problem in Chicago on such a large scale. It is an example of successful consensus building, because it is
the first project where private railroads overcame competitive issues and reached agreement on a list of
improvement projects to increase the efficiency of an urban rail network. These are primarily functions
of a Type I institutional arrangement; hence Type I guidelines would have been helpful to the effort at
this point in its evolution. Six of the seven Class I railroads operating in North America pass through
Chicago and all six are partners in the CREATE Program. All have pledged to contribute funds to com-
plete the necessary improvements that will benefit all six railroads as well as the commuter rail (Metra),
the intercity rail service (Amtrak), and the highway network--all public benefits. The CREATE Program
has also set new parameters on private-sector commitment for public-private partnerships. The freight
railroads are committed to providing $212 million, based on an estimate of the economic benefits that
the private sector will gain with the implementation of the program, as determined through analysis con-
ducted by the railroads.
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Example 4.4-2. (Continued)
In addition to the commitment by private railroads and the strong political support from all of its stake-
holders, CREATE is recognized as a project of regional and national significance. Since its genesis, a strong
leadership presence from political leaders has helped bring private industry into the project design
process. Support from communities and freight organizations was also achieved thanks to the political
leaders at the Chicago Department of Transportation (CDOT) and at the Illinois Department of Trans-
portation (IDOT) who have actively promoted the benefits of the CREATE Program to gain public sup-
port for the projects. Over 15 businesses have produced letters of support stating how the CREATE
Program improvements will benefit their businesses. To add significant local resident appeal for neigh-
borhoods bisected by freight lines and obtain their support, several key grade separation improvements
were also included in the overall list of projects. In the end, the political support of a diverse coalition of
interest groups like political leaders, private and public partners, businesses, and local communities pro-
moting not only the local and regional benefits but also the national benefits made the case for the sig-
nificance of investing in CREATE projects and positioning it to better compete for the Projects of National
and Regional Significance (PNRS) Program money. As a result, CREATE received funding, although not
the amount requested, from the PNRS Program and is recognized nationally as a single project that will
produce great benefit to the movement of goods and passengers.
Having a common goal and clear benefits has made it easier for CREATE partners to work together and
cooperate with each other in order to see the CREATE Program completely implemented. The CREATE
Program has successfully remained focused on its mission which is to proactively address and invest in
the numerous railroad bottlenecks in the Chicago region to streamline operations and allow rail cars
(freight and passenger trains) to move more efficiently through the regional network. All CREATE part-
ners are working toward the same goal, even competing private railroad and public-sector partners. CRE-
ATE's focus on implementing a consensus set of projects typifies a Type III arrangement. The CREATE Pro-
gram has effectively articulated how the main stakeholders (i.e., freight shippers, railroads, passenger
rail services, and highway users) will benefit. It has also identified the significant local, regional, and
national benefits CREATE will produce. In the end, all will benefit from an improved Chicago railroad
network that will generate national and regional economic benefits, reduce congestion, improve trans-
portation safety, enhance the national transportation system, and help protect the environment.
To ensure the program's implementation, a partnership agreement or "Joint Statement of Understanding"
(JSOU) that identified the roles and responsibilities of the partners, created a governance structure, and
defined the private funding contribution levels was signed in June 2003 by the program partners. The
CREATE Program's 78 projects were divided into three categories, which also defined partner responsibilities:
(1) railroad improvements, excluding rail-rail separation (Railroad Components); (2) rail-rail separation (Metra
Components); and (3) public improvements, including separation of at-grade highway-rail crossings, viaduct
improvements, and grade crossing safety enhancements (Public Component--IDOT and CDOT). A multi-
institutional committee structure, including a series of groups with specific roles, was created to imple-
ment and manage all CREATE improvement projects. All together, these committees and groups make
sure CREATE projects are completed on time and on budget, partners continue to advocate for additional
funding at all levels (i.e., Federal, state, local, and private), and communities are informed of the progress
of each project.
Given its complex multi-institutional committee structure, the decision-making authority falls to several
committees that manage the program, resulting in a somewhat cumbersome and slow process. The Stake-
holder Committee sets policy for the CREATE Program and approves any changes in scope or budget. This
committee provides final resolution on all stakeholder issues and makes decisions by unanimous agreement.
The Management Committee reviews and approves project designs, project cost estimates, and construc-
tion assumptions and makes decisions regarding scope, schedule, and budget based on recommendations
(continued)
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Example 4.4-2. (Continued)
from the Implementation Team. The Implementation Team tracks budget and construction progress and
recommends project changes. The Finance and Budget Committee identifies sources of public funds, mon-
itors project cost estimates versus actual expenditures, and assists project managers with financial manage-
ment issues. The Advocacy Committee is responsible for all CREATE communications, addressing commu-
nity concerns, and advocating for CREATE. Each project in the CREATE Program was delegated to one or
more partners, who become the Project Managers. The Component Project Managers are responsible for
all phases of development through implementation, including design and construction, and are responsi-
ble for tracking project status and potential scope and cost changes. The Project Office is responsible for
tracking all projects, approving final designs and cost estimates, assisting with grant applications, and act-
ing as a liaison between the Component Project Managers and other groups. The Project Office identifies,
monitors, and addresses potential obstacles; initiates requests related to changes in project scope and/or
costs; and advises the Management Committee of proposed actions. Some have suggested that the CREATE
Program would benefit from a separate institutional structure (i.e., Joint Powers Authority) to build the
CREATE Program rather than this complex multi-institutional committee structure.
The total cost of all CREATE projects was estimated at $1.5 billion in 2003. In December 2008, the CREATE
partnership updated the program cost and the new, total unfunded CREATE Program cost is estimated at
$2.6 billion. The CREATE Program did not receive the $900 million in Federal funding anticipated from
SAFETEA-LU in 2005. Instead, it received $100 million with the remaining funding coming from a mix of
funding sources (private-sector contributions and state and local funding). As a result, the project list was
prioritized and will need to be implemented in phases, which has slowed the program and significantly
delayed its benefits. Phase I includes only 32 projects that are programmed to be in design or construction
by 2009. Funding for Phase I comes from the following sources: SAFETEA-LU Programs of National and
Regional Significance--$100 million; State of Illinois--$100 million (unsecured to date); Freight Railroads--
$100 million; and City of Chicago--$30 million. These amounts will be insufficient to complete all 78 CREATE
projects. Federal funding is necessary to complete all projects. Otherwise, all other partners will have to
increase their contributions or projects will be delayed until funding becomes available. Continued delays
will result in higher project costs due to inflation, especially the increased costs of construction materials.
CREATE stakeholders continue to move Phase I projects into construction. At the same time they have
begun obtaining consensus and drafting the next phase (Phase II) of projects. CREATE partners will con-
tinue to participate actively in the national debate on freight policy and maximize the opportunity of
the next available funding cycle at the Federal level. CREATE will seek additional funding in the next Fed-
eral transportation authorization. The partnership will engage the shipper, business, and passenger com-
munities in order to generate more advocates supportive of CREATE goals. CREATE will continue to work
to complete all the critically needed rail improvements included in the program in order to make the
Chicago freight hub the country's model for safe, productive, and efficient railroad operations.
1
Burlington Northern Santa Fe (BNSF), Canadian National (CN), Canadian Pacific (CP), CSX, Norfolk Southern (NS),
and Union Pacific (UP).
Example 4.4-3. Commercial Vehicle Information Systems and Networks
The Commercial Vehicle Information Systems and Networks (CVISN) Program consists of a framework
for organizing, deploying, and funding the implementation of technology to automate various motor
carrier regulatory and safety enforcement functions with the ultimate goal of improving commercial
motor vehicle safety. The mission is to support the U.S. DOT and FMCSA's performance goals in high-
way vehicle safety, hazardous materials safety, homeland and national security, transportation relia-
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Example 4.4-3. (Continued)
bility and productivity, and organization excellence. The core CVISN Program capabilities focus on
three program areas: Safety Information Exchange (automated roadside vehicle and driver inspections),
Electronic Screening (transponder-based systems), and Electronic Credentials Administration (automatic
application, processing, and issuance of credentials and permits). The program is managed by FMCSA;
however, deployment, planning, and implementation of the program require the full participation of
FMCSA, state agencies with motor carrier safety or regulatory responsibilities, and private industry.
Effective planning and deployment of CVISN projects in all three program areas has required effective part-
nership agreements at all levels, including Federal-state partnerships, regional partnerships, inter-agency
partnerships within states, and public-private partnerships. On the Federal and state level, FMCSA cannot
achieve its mission of reducing crashes involving trucks and buses without the support of states responsible
for administering and enforcing commercial vehicle regulations. States, on the other hand, typically cannot
fully finance the technology infrastructure required for CVISN, nor are individual states well suited to coor-
dinate activities across states for purposes of promoting uniformity and standards. States wishing to receive
Federal CVISN funds must enter into formal partnership agreements with FMCSA. These agreements spec-
ify what is required of states in order to qualify for and receive CVISN grant money and outline what they
can expect from FMCSA.
As the champion, FMCSA's primary responsibility is managing and overseeing the CVISN Program at the
national level. States are responsible for planning, deploying, operating, and maintaining their CVISN
architecture and services. Multi-state coalitions, like the I-95 Corridor Coalition, have supported the
CVISN program on a number of fronts, including providing funding to support (1) CVISN training and
program planning activities and (2) design and implementation of specific projects of regional signifi-
cance. State agencies with commercial vehicle operations (CVO) responsibilities like the Departments of
Transportation, Revenue, Public Safety and/or State Police often are engaged in CVISN planning and
deployment activities. Given the distributed nature of CVO regulatory and enforcement functions, most
states participating in CVISN have executed formal memoranda of understanding (MOUs) to identify
cost-sharing agreements, designate the lead agency, and clarify the responsibilities of all partners to
the agreement. The funding contributions of the MOU participants vary depending on the functional-
ity that a state is electing to deploy. For example, systems such as the Commercial Vehicle Information
Exchange Window (CVIEW) provide functionality that is beneficial to all agencies in a state. As such, the
agencies may agree to share in the costs to deploy a CVIEW equally. Certainly MOUs between or among
multiple state agencies have helped to solidify working relationships and memorialize commitments
that have been made, even when administrations change.
Public-private partnerships and private-sector involvement have played a significant role in advancing
the CVISN Program and have taken on many different forms. For example, motor carriers have been
asked to participate in discussions about the design of software that will allow them to apply for and
receive certain credentials electronically. As the systems are built or customized, carriers also have been
asked to review or participate in pilot testing of the systems to confirm that they have been built around
the needs of industry and are operating as intended. These informal partnerships between states and
industry whereby motor carriers and motor coach operators are engaged in the planning and design of
CVISN systems to ensure that the systems are built in a manner consistent with the needs of industry
exemplify how CVISN has reached out to the private sector to build consensus on specific project
parameters. Formal partnerships include cost-sharing agreements among carriers, vendors, state agen-
cies, and other third-parties that are memorialized in writing. Some of these contracts have resulted in
cost sharing between the parties whereby vendors will provide in-kind services at a reduced fee or will
implement their systems at no cost to the state in exchange for the opportunity to deploy their systems
and collect future revenue based on user fees.
(continued)
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Example 4.4-3. (Continued)
All 50 states have begun to deploy some of the core CVISN capabilities. As of August 2008, 20 states are Core
CVISN Compliant or have deployed all of the core CVISN capabilities. These states have shown a more pro-
nounced CVISN deployment progress because of their strong partnership with the Federal government,
across state agencies, and with private industry. FMCSA and its state and industry partners have been critical
to the overall success of the program and continue to support the development of the program. They have
identified a series of expanded CVISN functionalities that are being integrated into the CVISN program while
remaining focused on its mission to support FMCSA's ultimate goal of improving commercial motor vehicle
safety.
