Business and transportation industry leaders today joined Transportation for America for a briefing on Capitol Hill to underscore the potential of a reformed, multi-year transportation bill to boost the economy and create lasting jobs across the country.

Business leaders from Siemens, IBM and the Silicon Valley Leadership Group, which represents more than 300 major companies in the Silicon Valley including Yahoo!, Microsoft and AT&T, highlighted the power of new and innovative policies to revolutionize the transportation sector, make our country more economically competitive for the 21st century and provide working Americans the affordable options they need to get to their jobs every day.

“Our annual CEO survey identified traffic congestion as one of the top concerns for businesses in the Silicon Valley,” said Carl Guardino, President and CEO of the Silicon Valley Leadership Group. “Public transportation is a lifeline for our nation’s workforce. Allowing the cuts to service we have seen around the country to continue will only worsen congestion for commuters and increase the challenge of attracting the talent that our cutting-edge businesses depend on.”

The panelists highlighted the need for major reform to our national transportation system and investments in smart technologies that will make our country a leader in innovation. Whether in reducing congestion, improving road safety or increasing service and efficiency in public transportation networks, these investments can help communities solve problems and create jobs.

“Siemens is optimistic that the combination of political will, public interest, and unprecedented funding will lead to an integrated and comprehensive transportation system throughout the U.S.,” said Diederick Van Dillen, Mid Atlantic Regional Manager for the Siemens Corporation. “The movement of people and goods is what keeps cities and regions competitive, and less time spent in traffic leads to enhanced quality of life for Americans.”

Our current transportation program is based largely on policies enacted in the 1950’s. These policies helped our nation successfully build a world class highway system that now connects communities across the country. The next federal transportation bill offers a chance to stand on the shoulders of that success and focus our transportation program on using smarter approaches to solve the problems of the 21st century.

“IBM is committed to working with all stake holders in the broad transportation ecosystem – policy makers, transportation operators, agencies and academics – to make new innovations and technology a reality for smart transportation systems and to better serve society’s needs in the 21st century,” said Mike Kearney, Business Development Executive, IBM Research Division.

“Across the country major employers are working hard to support investments in public transportation because they know it is essential to reducing congestion, and creating efficiency in the movement of people and goods and most importantly to reduce our dependence on oil by giving people options other than driving everywhere,” said Tom Murphy, Former Mayor of Pittsburgh and a Senior Fellow at the Urban Land Institute. “Whether it is local chambers of commerce or companies like Google, and Yahoo!, businesses on the cutting edge of the new economy are telling us that the next transportation bill must remove the impediments at the federal level that suppress and slow down investment in public transit and safe, complete streets.”

“We have an unprecedented opportunity to build for the future and create communities that will thrive for generations to come,” said James Corless, director of Transportation for America. “We must embrace the power of innovation in our transportation program and seize this chance to grow our economy, create jobs and wean our nation off dangerous sources of oil. Only a truly reformed long-term transportation program will allow us to seize this moment. We cannot allow it to slip away.”

Transportation for America will continue to work with business leaders around the country as the transportation authorization bill makes its way through Congress.

The Duke University Center on Globalization, Governance and Competitiveness released a new report this morning during a briefing at the Natural Resources Defense Council that evaluated the many U.S. job opportunities that can reduce carbon emissions in public transit buses. Jobs in and related to public transportation are some of the lowest hanging fruit in the push for green jobs, so what’s keeping the domestic manufacturing industry from ramping up?

The U.S. market for heavy-duty transit buses is small, currently delivering 5,000 to 5,500 buses per year. U.S.-based firms dominate the North American bus market, with an 88% share in total buses and a 51% share in heavy-duty transit buses. Under current U.S. transportation policy, which favors highway spending and de-emphasizes public transit, bus orders are small and sporadic; this makes it difficult for the bus industry to grow.

Non-comprehensive chart of the domestic supply chain for buses. From the Duke CGGC report, p.30

The report is well worth a read, but for a much simpler case study of what this means in real life, consider one piece of the complex supply chain for transit buses that we tend to take for granted: seats. On a crowded bus or train, you may not get the chance to sit in one, but when you do, you probably don’t think about the design or innovation that went into that seat. It probably didn’t occur to you that seats can add hundreds or thousands of pounds of weight that the bus needs energy to carry.

David McLaughlin, vice president of the American Seating Company, a U.S.-based manufacturer of seats for buses and railcars (among many other things), made it clear at this morning’s briefing that increased investment in transit would be good for business. But he also stressed that those benefits are not limited to American Seating alone. As a result of the stimulus bill from 2009, McLaughlin’s company calculated $2.9 million in new business, the bulk of which resulted from seat orders for buses and railcars ordered by transit agencies across the country with stimulus dollars.

“$2.9 million means 11 new jobs for us at American Seating,” he said. In another internal study, His company discovered that 1 job at American Seating sustained roughly 6 others in their immediate supply chain.

Take those two facts together and you begin to see the economic impact of the small public transit investment in the stimulus — and what could happen on a much larger scale. American Seating, just one manufacturer of one particular component that goes into transit vehicles, created the equivalent of 11 jobs through the stimulus. Those 11 jobs create or sustain 66 more at the company that supply them.

Stimulus spending will not be enough, however. Although the economic activity resulting from the stimulus was important, McLaughlin said his business needs investment that is reliable, consistent and predictable — like the funding that could result from a full six-year transportation bill. Stable funding sources will fuel the research and development that can cut seats weights even further and enable buses to use less energy.

“The stimulus package has been a good thing, but what we really need is sustained predictable investment, so we can make the investments we need to make to ensure our viability. This isn’t just a public issue, it’s a public-private issue.  …It’s jobs,” he said.

The message from all fronts this morning was consistent. To spur job creation through manufacturing cleaner transit buses, the industry needs reliable, predictable investment and government policies that encourage innovation. Increasing the available federal funding for new transit lines and rolling stock is one aspect. Ensuring operation of these new transit lines remains affordable is another. Both are needed. As the report says:

If federal, state and local policy were to shift to a clear, sustained commitment to public transit, the nation would have the manufacturing capability to meet the resulting increased demand for transit buses. However, the transit bus industry is unlikely to have significant market growth in the absence of several major changes: better management of public transit funds and improved coordination with manufacturing firms; significant, sustained public funding; and perhaps most important, a comprehensive transportation policy shift that encourages public transit use.

Or, in other words, give transit agencies money to buy new rolling stock — and the money to operate them — and you’ll be creating green jobs on Main Street all across America. Buy new hybrid buses for New York City or San Francisco to reduce emissions there, and support new jobs in towns like Grand Rapids, Michigan that need jobs more than anything.

An organization representing more than 300 elite Silicon Valley businesses from Apple to Yahoo! sent a letter last week to Senate Environment and Public Works Chairman Barbara Boxer, a California Democrat, urging her to make sure the Senate climate bill adequately invests in clean transportation alternatives to reduce emissions in their region while keeping it mobile and competitive.

The Silicon Valley Leadership Group, made up of mostly tech-focused organizations in Silicon Valley, works to enhance economic competitiveness and maintain a high quality of life for the region. SVLG members employ more than 250,000 people in the Valley and generate more than $1 trillion worth of business each year. (SVLG is a partner of Transportation for America.)

Started in the 1970′s by the founder of Hewlett Packard, they recognize that investments in transit and safe, accessible, walkable neighborhoods are keys to their continued economic success and ability to lure smart and talented workers to the region.

In the letter, president Carl Guardino thanked Chairman Boxer for her leadership on the issue of climate change, and pointed out that California will need to make a large investment in cleaner transportation options if they are going to have any chance of meeting the ambitious reductions proposed in the climate bill:

Transportation represents the fastest growing source of national greenhouse gas emissions (GHG), and the largest single source in California, accounting for 40% of emissions. In Silicon Valley and the Bay Area, that number is higher still – 51% of GHG’s.

House bill, H.R. 2454 (Waxman/Markey), recognizes the importance of reducing transportation emissions by requiring states and metropolitan areas adopt new planning requirements and GHG reduction goals. However, the bill provides virtually no allowances for this purpose. Without adequate funding to address transportation’s increasing contribution to climate change, we will not be able to rise and meet this challenge.

The debate over the Senate’s climate bill is expected to heat up in the next few days as Chairman Boxer’s Senate committee releases the numbers showing where the allocations from the Clean Energy Jobs and American Power Act will be directed.

Transportation for America, our 28,000 supporters and 350+ partners like SVLG have been calling on the Senate to direct 10 percent of the funding to clean transportation alternatives.

The Senate bill will require states and cities to reduce emissions from transportation. Giving them 5-10% of the revenues will give them the tools they need to make investments in clean transportation alternatives, like public transportation and passenger rail, affordable neighborhoods around transit stops and neighborhood projects that increase safety for cyclists and pedestrians.

Click the jump to read through the entire letter from the SVLG.

Dear Senator Boxer,

On behalf of the Silicon Valley Leadership Group, I want to thank you for your leadership in crafting legislation to address climate change. The Leadership Group believes a necessary component of this legislation is to dedicate at least 10 percent of a climate bill’s revenues toward clean transportation programs and projects.

As background, the Silicon Valley Leadership Group, founded in 1978 by David Packard of Hewlett-Packard, represents more than 300 of Silicon Valley’s most respected employers on issues, programs and campaigns affecting the economic health and quality of life in Silicon Valley, including transportation, education, economic vitality and the environment. Leadership Group members collectively account for more than 250,000 local jobs, or one of every four private sector jobs in Silicon Valley.

Transportation represents the fastest growing source of national greenhouse gas emissions (GHG), and the largest single source in California, accounting for 40% of emissions. In Silicon Valley and the Bay Area, that number is higher still – 51% of GHG’s.

House bill, H.R. 2454 (Waxman/Markey), recognizes the importance of reducing transportation emissions by requiring states and metropolitan areas adopt new planning requirements and GHG reduction goals. However, the bill provides virtually no allowances for this purpose. Without adequate funding to address transportation’s increasing contribution to climate change, we will not be able to rise and meet this challenge.

Thank you again for your leadership and you have our sincerest thanks for considering the inclusion of robust clean transportation funding in the climate change bill.

Sincerely,

Carl Guardino
President and CEO
Silicon Valley Leadership Group

Tuesday’s briefing, titled “Planning for a Better Future: Lessons from the States on Regional Sustainability Planning” featured experts from three regional laboratories on transportation reform – Sacramento, CA; Salt Lake City, UT (right); and Minneapolis, MN.

The American Planning Association and LOCUS, an association of pro-reform real estate developers, co-hosted the event at the Capitol Visitors Center on Tuesday afternoon.

Regional blueprints, or plans, outline a long-term transportation vision for a region. Metropolitan Planning Organization, or MPOs, typically have jurisdiction over this process, alongside partners at the county and municipal level. One objective of these plans is to lower greenhouse gas emissions through measures like increased transit use and building new homes near jobs.

“Comprehensive, but bottom-up” is how LOCUS President Christopher Leinberger, the event’s moderator, describes a potential direction for federal policy. In essence, the federal government would provide the funding and set the benchmarks, while regional planning authorities make allocations and are expected to achieve significant reductions in emissions.

Panelists stressed that their primary focus is on increasing choices – in transportation and housing – for all Americans. The recent economic recession was fueled in part by an over-supply of single-family homes on large lots. And while ample demand exists for mixed-use development on smaller lots, a combination of lagging infrastructure and policy restrictions have prevented the private sector from moving to meet that demand.

That is why the engagement and support of the business community is so critical.

Natalie Gochnour is the Chief Operating Officer for the Salt Lake City Chamber of Commerce. Her group’s seat at the table and engagement with a strategic and sustainable vision for the Salt Lake City area led to championing a sales tax increase to pay for 70 miles of light-rail for seven years.

“My message is this: don’t underestimate business community support for new ways of seeing and new ways of doing,” Gochnour said.

Michael McKeever, Executive Director of the Sacramento Area Council of Governments, cited a similar dynamic in his area, where the Sacramento Area Chamber of Commerce helped push the blueprint concept in its early stages and has hailed the region’s long-range plan as a signature accomplishment.

Both Sacramento and Salt Lake City have seen substantial increases in transit usage and decreases in vehicle miles traveled (VMT) since beginning to implement their blueprints.

Commissioner Peter McLaughlin of Hennepin County in Minnesota addressed successes in his region as well.

T4 America Director James Corless emphasized that there was no “silver bullet” in regional sustainability planning, but that providing benchmarks and the required funding would result in substantial leaps.

Communities should be asking, “what do we want to look like in 25 years?” Corless said. “That’s the fundamental question.”