the future of transportation and the path forward/media/files/... · •manage existing...

The Future of

Transportation and

the Path Forward

Rodney Slater

Partner

Squire Patton Boggs

(Former Secretary, US

Department of Transportation)

Regina Hopper

President and CEO

The Intelligent Transportation

Society of America (ITS America)

squirepattonboggs.com www.itsa.org 2

• One of the world’s strongest integrated law firms, providing

insight at the point where law, business and government meets.

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to working alongside you to achieve successful outcomes.

• It’s a seamlessly connected service that operates on any scale -

locally or globally and encompasses virtually every matter,

jurisdiction and market.

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understanding of your business goals, while our robust and

open culture enables us to find the right answers quickly and

effectively from lawyers who understand the geographic, sector

or issue-specific challenges you face.

Squire Patton Boggs

Recognized as one of the top 15

“Most Global” law firms

– Am Law Global 100 2014

• 44 Offices in

21 Countries

• More than

1,500

Lawyers

Across Four

Continents

• More than

500

Partners

• Over 2,600

Combined

Headcount


• The nation’s organization dedicated to advancing the

research and deployment of Intelligent Transportation

Systems (ITS) to improve safety, mobility, and build a

smarter, more convenient and sustainable

transportation network.

• Our state chapter network includes over 1,000

companies, public agencies and research

institutions across 40 states.

ITS America

• Over 450 state and local agencies, universities, and

companies spanning the automotive, transit,

commercial vehicle, infrastructure, tolling, telecom

and high-tech sectors.


The Facts • ~33,000 die each year in crashes, with over 2.3 million

injuries (NHTSA)

• Annual cost of crashes: $871 billion (NHTSA)

• Annual cost of traffic congestion: $160 billion per year

(TTI)

• The USDOT estimates that V2V and V2I communication

technology could prevent or reduce the impact of 80% of

all unimpaired vehicle crashes


Technology enables us to:

• Prevent vehicle crashes and respond more effectively to incidents

• Manage existing transportation systems to better optimize existing

capacity and reduce costs, traffic congestion, fuel use and emissions

• Improve mobility and provide new options including shared services

• Build systems to meet both current and future demands

ITS Can Make the Roads & Vehicles Safer


What Is ITS? Using Technology to Change How

We Move People and Goods


What is ITS? Connectivity and Data

Driving Transportation Innovation


ITS: The Intersection of Technology & Transportation

• Real-time multimodal navigation and trip

planning

• Integrated payment platforms

• On-demand and shared services

• Smart parking

• Pay-as-you-drive insurance

• Mileage-based user fees

• Synchronized lighting

• Fully connected smart cities

• V2V, V2I, V2X communication

• Increasingly automated vehicles


The Definition of ITS is Expanding:

The Companies in the Space are Expanding

https://gridsmart.com/


ITS: The Intersection of Transportation &

Technology Hits the Mainstream

New York City Tapped for Program to

Decrease Traffic Injuries, Congestion

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCMLZ_bPnj8gCFUQ9Pgod4rsD5A&url=https%3A%2F%2Froskam.house.gov%2Fmedia-center%2Fpress-releases%2Ficymi-wall-street-journal-editorial-highlights-roskam-concerns-over-irs&psig=AFQjCNE_R1pk-qzAB0-Jjn-GKyn8FpeFug&ust=1443188775830727


Connected Vehicle Deployment

• CV Safety Pilot Model Deployment in Ann Arbor, Michigan

Over 2,800 cars, buses and trucks testing effectiveness of V2V to

inform NHTSA regulatory decision to be sent to OMB by end of 2015

Being expanded to 20,000 vehicles, 120 highway miles

• MCity launched in Ann Arbor, GoMentum Station in Contra

Costa County, Calif. to test connected and automated vehicles

• ITS America helped launch V2I Deployment

Coalition to accelerate deployment of

infrastructure-based CV technology

• New Connected Vehicle Pilots announced

in New York City, Tampa, and Wyoming


Congressional Charge Around ITS:

Advance Smart Policy Solutions

• September 30: End of fiscal year, action needed to avoid shutdown

Likely to pass a continuing resolution through the end of 2015 followed by

an omnibus spending bill

• October 29: Three-month MAP-21 extension expires

Pass a new reauthorization bill or kick the can again?

Funding solutions don’t get any easier the more time passes

• November/December: Highway Trust Fund drops below $4 billion

U.S. DOT forced to delay or reduce reimbursements

• June/July 2016: Highway Trust Fund officially hits $0

Balance sheet deficit accelerates as construction season progresses


U.S. DOT Highway Trust Fund Ticker


Critical Choices Ahead

• Senate passed six-year reauthorization bill (the DRIVE Act) with

bipartisan support

Six years of policy but only three years of funding

Does not address long-term funding but cobbles together General Fund accounts

• House planned to introduce six-year bill this month, anticipated T&I

Committee intro and mark-up postponed

Policy provisions largely agreed to, T&I Chairman Bill Shuster waiting for

Ways & Means Committee to address funding needs before moving bill

Ways & Means Chair Paul Ryan would prefer to combine transportation fix

with comprehensive tax reform, not expected until at least next year

Can the House find six years of funding without a long-term fix, or will they

follow the Senate’s lead with a partially-funded bill, or punt until next year

with the hope of comprehensive tax/transportation legislation?


Reauthorization: An Opportunity for

Congress to Drive Innovation

• Senate DRIVE Act includes a new Innovative Title, proposed by ITS

America, supported by the Smart Transportation Innovation Coalition

• House T&I Committee bill expected to include a similar Innovation Title

• House Science Committee advancing three bills to encourage ITS

research and deployment, including connected and automated vehicles

Connected Transportation Research and Innovation Act of 2015 – Rep. Eddie

Bernice Johnson (Full Committee Ranking Member)

Surface Transportation Research and Development Act of 2015 – Rep.

Barbara Comstock (Research and Technology Subcommittee Chairwoman)

Future Transportation Research and Innovation for Prosperity (Future TRIP)

Act – Rep. Dan Lipinski (Research and Technology Subcommittee RM)


Senate DRIVE Act: Innovation provisions

• New Innovation Title to encourage research and deployment of ITS and

other innovative transportation technology solutions

• Creation of new $30M per year System Operations and ITS Deployment

competitive grant program within $100M ITS research program

• Additional $30M+ per year in competitive Innovation Grants through

FHWA’s $62.5M Technology and Innovation Deployment program

• New $150M per year Achievement of Transportation for Performance

and Innovation competitive grant program to reward implementation of

performance-based management and use of innovative technologies

• New $15 - $20M per year grant program to support research into user-

based alternative revenue mechanisms

• Continuation of University Transportation Center grants at $72.5M


Senate DRIVE Act (continued) • New $2 - $2.5B Freight Program with a focus on using technology to

improve the safety and efficiency of the national freight network

• New $300 - $450M Assistance for Major Projects program to award

grants for high-cost projects, including those using ITS, that are difficult

to complete with existing funds (potential TIGER program replacement)

• Explicit funding eligibility for V2I communication equipment within the

National Highway Performance Program, Surface Transportation

Program, and Highway Safety Improvement Program

• Additional tolling flexibility including removing limitations on HOV-to-

HOT lane conversions for states that meet requirements including using

automated and variably-priced tolling, and establishment of a pilot

program to develop a marketplace for states to buy and sell toll credits

• Commissions a Future Interstate Study and a Smart Cities Study


DRIVE Act (NHTSA and FMCSA titles) • Establishes a Commercial Vehicle Innovative Technology Deployment

discretionary grant program for states to advance their technological

capability and promote ITS for commercial vehicle operations

• Requires FMCSA to modernize the Compliance, Safety, Accountability

(CSA) program or set up a third party process to incentivize non-

mandatory safety technologies and programs used to enhance safety

Examples include crash avoidance systems, lane departure warnings,

electronic logging devices, electronic stability control, critical event recorders

• Requires crash avoidance information next to 5-star crash worthiness

information on manufacturers stickers placed on passenger vehicles

• Continued support for ongoing connected vehicle program through ITS

research program, flat funding may hamper automated vehicle research

• Avoids 5.9 GHz band spectrum debate, industry collaboration continues


Wireless Spectrum • 5.9 GHz Band (5850-5925 MHz) allocated to support V2V, V2I and V2X

Allocated by the FCC following ITS America petition, technical rules established in 2003

Communications foundation for Connected Vehicle safety applications

• FCC in 2013 proposed opening band to unlicensed devices (i.e., Wi-Fi)

• ITS America and others have raised concern about potential interference

risks to V2V, V2I, V2X from unlicensed devices operating in the band

• Wi-Fi Innovation Act (S. 424) would pressure the FCC to expedite testing

of spectrum sharing technologies in the 5.9 GHz band

• August: U.S. DOT published draft plan to complete spectrum sharing

testing within 12 months of receiving test devices from Wi-Fi industry,

committed to send NHTSA V2V rulemaking to OBM by end of 2015

• September: Senators Thune, Rubio and Booker support 9 principles for

conducting spectrum sharing tests drafted by auto and Wi-Fi industries


Cybersecurity and Data Privacy • Today’s vehicles include as much as 100 million lines of code and

multiple electronic points of entry (i.e., Bluetooth, Internet access,

keyless entry, remote starting, telematics)

• Vehicles collect real-time location data and driving history

• July: Wired article described remote hack into Jeep Cherokee via

cellular connection to infotainment system

Fiat Chrysler recalled 1.4 million vehicles to install software patch

Vehicle OEMs have announced an industry effort to establish an Information Sharing

and Analysis Center (ISAC) to address cybersecurity threats by end of 2015

NHTSA considering cybersecurity and data privacy requirements in pending Connected

Vehicles rulemaking proceeding

• “SPY Car Act” (S. 1806) would impose cybersecurity and privacy

protections for vehicles


QUESTIONS?

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