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Economic stimulus and investment in ITS solutions

Scott Belcher, President and CEO of ITS America looks at the year ahead
February 2, 2012 Read time: 8 mins
Live demonstration of current and future ITS solutions and applications, epitomised here by the 11th Avenue Theater

Scott Belcher, President and CEO of ITS America looks at the year ahead


2009 promises to be a challenging yet exciting year as the new Obama Administration works with Congress to implement an economic stimulus programme that will create jobs and bring our economy out of its slump, pass transportation reforms as part of a new transportation authorisation bill, and advance legislative solutions to other critical issues like energy, climate change, and homeland security. This agenda provides an unparalleled opportunity to advance the development and deployment of Intelligent Transportation Systems and related innovations that must play a key role in solving our economic, transportation and environmental challenges.

Since economic recovery is on the front burner, it is critical that states and local agencies invest in ITS solutions that will create jobs across numerous industries including the high-tech, automotive, engineering, information technology, manufacturing and environmental sectors.

According to the 324 US Department of Transportation (USDOT), an average of 50 per cent of ITS project spending is for direct labour as compared with 20 per cent for new highway construction, making ITS an attractive investment from a purely job creation standpoint. And integrating ITS into transportation projects can significantly improve economic productivity by reducing traffic gridlock, which is critical for businesses, truckers and shippers, and ultimately consumers whose jobs and livelihoods depend on an efficient, reliable transportation network.

Tools like traffic light synchronisation, incident detection and management systems, traveller information, electronic tolling, ramp signalling, dynamic message signs, weigh-in-motion truck inspection and smart transit systems can all be deployed quickly to put people to work while also providing long-term benefits in terms of less congestion, fewer accidents and a healthier environment.

It is encouraging that the USDOT has also recognised this critical opportunity and has provided guidance through its 831 Federal Highway Administration recommending that agencies include ITS and other operational elements in their transportation projects as they work to invest the economic stimulus funding most effectively.

Beyond stimulus

While much of the current debate is centred on economic recovery, we must not lose focus on the critical need for reform in the next surface transportation authorisation bill. The expiration of the current SAFETEA-LU legislation on 30 September 2009 provides a landmark opportunity to pursue new, innovative solutions and build a smarter transportation system.

Many transportation agencies and private sector innovators are already incorporating the latest technologies into passenger and commercial vehicles, highways, transit systems, and traffic operations centres. But in order to accelerate the widespread deployment and effective use of these 21st century solutions, fundamental changes are needed in our nation's approach to transportation policy.

Funding and policy reforms

The current SAFETEA-LU legislation eliminated dedicated funding for deployment of ITS and provides only $110 million per year for ITS research and development. These funding levels are grossly insufficient to support the critical role that ITS must play in modernising our transportation network. In addition, the current law lacks proper incentives for agencies to use all of the tools at their disposal to improve system performance. Dedicated funding for deployment and operation of ITS, combined with meaningful policy reforms, will result in significant improvements in the transportation system while also providing tremendous opportunities for the ITS industry.

 560 ITS America has been working with its public and private sector members and coalition partners to develop common legislative priorities for the next surface transportation bill. These include: Measuring performance to improve results - funding should be linked to aggressive performance goals to ensure that the public investment results in measurable improvements in safety, mobility and the environment. System performance can be effectively measured using ITS data and technologies, and ITS solutions are critical for improving performance in areas like accident, congestion and emissions reduction. Performance results should be published regularly as part of a National Scorecard that would rank states according to their progress, and would provide accountability and incentives for transportation agencies to pursue the most effective solutions.

Dedicated Funding for ITS deployment - to improve the performance of our transportation system, the next authorisation bill should provide dedicated funding and incentives for public agencies and private sector partners to deploy and operate ITS solutions that will prevent traffic accidents and fatalities, reduce gridlock, improve the environment and build a smarter multimodal transportation network. Congressional leaders have estimated that the next transportation bill could include a total investment in the range of $500 billion over a six-year cycle. Of this, an annual investment of $3 billion would provide agencies and industry partners with much-needed resources to deploy and integrate ITS solutions into their transportation system.

Advancing next-generation innovations - while we are making better use of today's technology, the next authorisation bill should at least double funding for research, development and demonstration programmes that will advance the next generation of ITS solutions including vehicle collision avoidance technologies, advanced congestion management systems, and new approaches for collecting and disseminating real-time traffic, transit and multimodal traveller information.

Bringing transportation into the wireless age - a significant investment should be made in the initial deployment of a nationwide communications network between vehicles and with the roadway, known as Vehicle Infrastructure Integration (VII) or IntelliDrive, that will enable the next generation of critical safety, mobility, commercial and consumer applications.

Financing the future of transportation - ITS enables a variety of innovative financing methods for supplementing and ultimately replacing the current gas tax, including mileage-based user fees and variably priced tolling systems. The next transportation bill should include major real-world demonstrations of ITS-enabled financing alternatives.

The time is now

President Obama has made it a priority to advance smart technologies and encourage innovation. ITS solutions are here today that will transform our nation's transportation future.

The time is now for Congress and President Obama to put these innovations to work modernising our transportation network, spurring economic growth, improving the environment, and strengthening our quality of life.

ITS America has been working to mobilise the ITS community to send the message to Congress and the new Administration that the Federal Government needs to begin investing seriously in the deployment and integration of currently available technologies into our transportation system, while also making a stronger commitment to research and development of tomorrow's innovations. We are calling this our Campaign for Intelligent Transportation Solutions.

During the 15th 6456 ITS World Congress in New York City this past November, ITS America arranged for Congressional guests and government officials to participate in 'city street' demonstrations of the latest vehicle safety and mobility technologies, experience a VII test bed in downtown Manhattan, tour the 350,000 square foot exhibition hall and Transportation Management Center (TMC) of the Future, and visit New York-area transportation facilities that are using ITS to manage real-world traffic conditions. In addition to experiencing ITS in action, Congressional guests had the opportunity to interact with industry leaders, attend sessions and participate in policy discussions about the future of transportation.

We are excited to follow the World Congress by bringing our Campaign for Intelligent Transportation Solutions to Washington during ITS America's 2009 Annual Meeting, which will be held from 1-3 June at the new Gaylord National Resort & Convention Center in National Harbor, MD. The Annual Meeting will be a tremendous opportunity to promote ITS solutions to Members of Congress and the new Obama Administration, and is particularly timely as Congress will be in the midst of debating the new transportation bill and possibly energy or climate change. In addition to engaging policymakers in sessions and technical tours, we will be taking our message to Capitol Hill during a programme that will include hands-on demonstrations of the latest vehicle technologies.

As exciting as the 2009 Annual Meeting will be, we are not waiting until June to impact the legislative agenda. Starting last year we created a Washington Representatives Committee comprised of ITS America member companies, public agencies, universities and allied stakeholders, who have been actively engaged in developing our legislative agenda and performing Congressional outreach and advocacy. The Committee has finalised our priorities for the next transportation bill, which are available online at http://www.itsa.org/itsa/files/pdf /ITSAAuthorizationPriorities.pdf, and is developing detailed legislative language to accompany these priorities that will help achieve our legislative goals.

ITS America and its members are also holding regular meetings and briefings with Members of Congress and their staff, key House and Senate Committees, and Congressional Caucuses including the newly re-energised ITS Caucus and the Sustainable Energy and Environment Caucus. The ITS Caucus, co-chaired by Congresswoman Ellen Tauscher (D-CA) and Congressman Mike Rogers (R-MI), is recruiting new members and has been working closely with ITS America to promote ITS solutions in the economic recovery plan and the next transportation bill. ITS America and the ITS Caucus will also host a Capitol Hill technology fair and reception on 25 March to showcase ITS solutions to members of Congress, recruit new members to the Caucus, and preview the 2009 Annual Meeting.

In addition, ITS America members participate in monthly Congressional Roundtable events on Capitol Hill that typically involve a sit-down breakfast or lunch with a key member of Congress who has jurisdiction over transportation and technology-related legislation. Recent guests have included House Transportation and Infrastructure (T&I) Committee Chairman James Oberstar and Ranking Republican John Mica, Highways and Transit Subcommittee Chairman Peter DeFazio, and Congressman Russ Carnahan, who is a member of the House T&I and the House Science and Technology Committees. Special guests in the coming months will include ITS Caucus co-chair Ellen Tauscher, who is also a member of the House T&I Committee, and key Senators from the Environment and Public Works Committee and the Committee on Commerce, Science and Transportation.

Join the campaign

The ITS community is better positioned than ever before to make a difference in the next transportation bill and other upcoming legislative battles. But we must do a better job of communicating the benefits of ITS and our legislative solutions to the public, policymakers, thought leaders and the media in order to elevate the ITS industry's role as a critical partner in solving our nation's transportation challenges.

As an industry, our collective investment is far less than what is being spent by other industries and organisations competing for funding and legislative priorities in the next transportation bill. In order to dramatically improve our probability of success, we are looking for partners who are willing to join with ITS America to invest in the future of ITS and advance common priorities that will benefit the ITS industry and the broader transportation community.

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