Design infrastructure to promote transportation options and facilitate efficient movement of freight, and prevent infrastructure investments that would not be prudent given fuel shortages and higher prices.

Transportation infrastructure is a long-term investment that needs to consider long-term community needs and costs. Rising petroleum prices influence infrastructure planning at several levels. Transportation modes and patterns will shift at the same time that transportation agencies face inflated construction costs with rising prices for fuel, asphalt and other materials. Gas tax revenue will also be affected. Combined, these factors call for transportation agencies to adapt infrastructure plans to meet mobility and access needs in a post-peak environment.

Action items:

a)  Facilitate fuel-efficient freight movement. Portland’s competitiveness is largely dependent on the region’s role as a gateway and distribution center for domestic inland and international markets. Efficient movement of freight is critical to maintaining business viability and jobs.

• Protect existing inter-modal freight facilities to ensure options in response to fuel price increases.

• Continue to protect industrial and manufacturing land, particularly areas that already have rail access or are close to inter-modal transport to allow for economic diversification if the global economy falters.

• Encourage rail to serve industrial clusters.
• Work with freight vendors such as individual airline, trucking, rail and marine shipping companies to encourage efficient and sustainable transportation technologies and fuels and to identify incentives needed to promote transition. 
• Reduce delay for high value trips, like freight or bus, through congestion pricing for one or more lanes on highly congested corridors.

b)  Prevent infrastructure investments that would not be prudent given fuel shortages and higher prices. Air, long-distance truck and car travel are likely to be reduced in response to peak oil, and land use patterns are likely to become more compact. Thus, investments in expanding road and air capacity may not be prudent. The Port of Portland, the Oregon Department of Transportation and other agencies need to consider the impacts of peak oil when developing capital construction plans for major facilities.

• Encourage the Port of Portland to examine the timing and impacts of a peak oil scenario on air traffic when developing plans to expand the airport.
• Recognizing that the majority of transportation investment funding comes from non-city sources and that the uses of these funds are not flexible, direct the Portland Office of Transportation to consider the impacts of rising oil prices when deciding where to invest those scarce transportation funds under its control.
• Invest in infrastructure that meets access and mobility needs with less fuel.

c)   Continue to identify and promote the use of recycled paving materials and other methods that require less petroleum.

d)  Support the work of the Oregon Department of Transportation to develop a sustainable funding structure for transportation that will eventually replace declining gas tax revenues. As people shift to more efficient vehicles and transportation options, gas tax revenue will not keep pace with needs to maintain roads and improve transportation infrastructure.  This impacts all modes, since pedestrians and bicyclists as well as auto and truck users need permanent smooth surfaces. The City should explore new revenue options for transportation, including a carbon tax, congestion pricing, and a vehicle-miles-traveled fee, and should also encourage the state and federal government to investigate revenue options that do not rely on declining gas taxes. The new funding structures should be flexible to enable significant investment in services and infrastructure for fuel-efficient modes of transportation.

e)  Work with regional agencies to accelerate development of inter-urban transit options, including commuter rail. Continue to expand the light rail, street car and bus systems.

f)   Advocate for state and federal funding for transportation options, such as in ConnectOregon 2 and in the next Federal Surface Transportation Act.