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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.
• We give you a voice, support your ambitions and are committed
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.
• Our solutions are shaped by a clear, commercially-focused
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
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• 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.
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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
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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
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What Is ITS? Using Technology to Change How
We Move People and Goods
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What is ITS? Connectivity and Data
Driving Transportation Innovation
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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
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The Definition of ITS is Expanding:
The Companies in the Space are Expanding
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ITS: The Intersection of Transportation &
Technology Hits the Mainstream
New York City Tapped for Program to
Decrease Traffic Injuries, Congestion
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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
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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
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U.S. DOT Highway Trust Fund Ticker
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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?
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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)
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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
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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
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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
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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
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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
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QUESTIONS?
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