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16 Source: National Highway Institute Course 139001, "Integrating Freight in the Transportation Planning Process." Figure 2-8. U.S. pipeline network. The Role of Government Administration (FMCSA), National Highway Traffic Safety Administration (NHTSA), Federal Railroad Administra- Government at all levels has a role in building, operating, tion (FRA), the Coast Guard, the Maritime Administration maintaining, and regulating the freight system, although (MARAD), and the Pipeline and Hazardous Materials Safety the specific government roles vary considerably across the Administration (PHMSA). The Environmental Protection modes. Agency (EPA) establishes many environmental rules that affect At the Federal level, the two major government roles in freight carriers. The Transportation Security Administration freight are (1) funding and related cost-recovery policies and (TSA) makes security-related rules. The U.S. Congress may (2) regulation, especially safety and environmental regula- enact regulatory laws in any of these areas. tion. For highways, the Federal government sets overall levels The Surface Transportation Board (STB) is unique in the of Federal aid and, through the earmarking process, takes a extent of its role as a Federal economic regulator. Railroads hand in project selection. Congress must also provide the have monopoly power in some of their markets. STB must financing for highway investment through fuel taxes, other decide rate cases in such markets and make rules regarding user charges, or various credit devices. The Federal govern- these issues. ment has a similar role in providing funding for airport The state role in freight system funding is similar to the Fed- infrastructure. (In this regard, both the FHWA and FAA set eral role. State legislatures set highway funding levels and play standards for highway and runway design.) FAA directly a role in project selection; they are also involved in setting fuel funds and operates the air traffic control system. The U.S. taxes and other user charges to finance the system. States may Army Corps of Engineers (USACE) is responsible for main- invest in ports and airports as well. State authorities have taining and improving the inland waterway system, including responsibility to enforce some safety regulations, such as sup- building locks and dredging navigation channels. Railroads porting FMCSA rules and weight limits. State legislatures set and pipelines are in a separate category in terms of funding; speed limits, subject to Federal constraints. States can impose with limited exceptions, they bear the full financial responsi- some environmental regulations, such as requirements for bility for their infrastructure. impact analysis and mitigation for transportation projects. In terms of safety regulation, numerous Federal agencies California is unique among states in its authority to set motor are involved, including FAA, the Federal Motor Carrier Safety vehicle emission standards.

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17 Local government roles tend to be similar for all modes, operations. Many seaports and airports are owned and man- mostly relating to land use planning and local rules to mini- aged by a public port authority, sometimes created by a local mize the adverse effects of freight facilities, such as noise, government and sometimes created by a state. traffic, and lighting. Decisions in these areas primarily affect Table 2-1 shows the principal Federal and state agencies with trucking and rail, but they can also affect barge and aviation direct policy responsibilities for the freight system. Table 2-1. Summary of major government roles in freight systems. Funding Agencies Regulating Agencies Mode Federal State Federal State Air Congress Legislatures FAA N/A FAA (traffic control, DOTs (airports) EPA airports) TSA PHMSA Truck Congress Legislatures FMCSA (operations) Legislatures FHWA DOTs NHTSA (vehicles) DOT EPA Law enforcement TSA DMV PHMSA Rail minimal minimal STB (economic) Environmental agencies FRA EPA TSA PHMSA Water Congress Legislatures Coast Guard Legislatures Corps of Engineers MARAD Environmental agencies Fed. Maritime Commission TSA PHMSA Pipeline minimal minimal PHMSA Environmental agencies FERC (economic) Offices of pipeline safety