Studies are underway to widen the entire 325.51 miles of I-81 in Virginia. The Virginia Department of Transportation (VDOT) had a conceptual plan to widen the highway to a minimum of six lanes, with about 75 miles of eight-lane widening in urban areas such as Roanoke, Harrisonburg, Staunton and Winchester, and in 1997 it was estimated to cost a total of $3.3 billion for engineering, right-of-way and construction, to be completed in phases by 2020.

This section this article has a chronology of the events as they unfold and are added to the article. For now, material is added sequentially and the older material remains as when it was originally posted.

STAR Solutions Unsolicited PPTA Proposal in 2002

A consortium named STAR Solutions submitted to VDOT an unsolicited project proposal in January 2002, to fund and build the widening of all of I-81 in Virginia, under the provisions of PPTA (Virginia's Public-Private Transportation Act of 1995). The billions of dollars in costs would be financed mainly through bonds and retired through tolls assessed electronically on large trucks, with possibly a small share of the funding utilizing some state and federal road user tax funds.

The major design difference between this and the VDOT 1997 I-81 widening plan, is that it would make the whole 325-mile-long highway 4 lanes each way with separation of 2 lanes of truck traffic and 2 lanes of auto traffic each way; whereas the 1997 VDOT $3.3 billion plan would make 250 miles 3 lanes each way and 75 miles 4 lanes each way, with conventional roadway configurations. The PPTA proposal also included new interchanges and rest areas for trucks in areas with heavy traffic, and with 3 lanes each way on the auto lanes in the urban areas. So the PPTA proposal provided considerably more highway than does the 1997 VDOT plan.

The Public-Private Transportation Act of 1995 is the legislative framework enabling the Commonwealth of Virginia, qualifying local governments and certain other political entities to enter into agreements authorizing private entities to acquire, construct, improve, maintain, and/or operate qualifying transportation facilities. Passage of the Act, which took effect July 1, 1995, followed a year-long collaboration among the General Assembly, representatives from the private sector, and the transportation agencies.

Virginia's PPTA: Public-Private Transportation Act (PPTA).

The following articles and news releases are in sequential order, added to my website article as they were published.

So as we can see, this I-81 PPTA proposal moved forward, with the necessary enabling legislation having just been passed by the Virginia General Assembly and signed into law by the Governor.

Motorists driving cars would benefit from the widening program also, so it is probably not really fair to toll only trucks and not the cars. A multi-level toll structure could provide lower toll rates for the local residents who live in the Virginia counties along I-81.

VDOT Receives STAR Solutions PPTA Proposal

"PPTA Process Will Drive Virginia I-81 Widening Proposal", VDOT news release, April 29, 2002. Excerpt following (blue text):
The Virginia Department of Transportation (VDOT) soon will review construction proposals to widen the entire length of I-81 in Virginia. To date, one private entity, Star Solutions, has submitted a proposal through the Public-Private Transportation Act (PPTA) process. The PPTA process lets VDOT partner with the private sector to improve roads, bridges and other transportation facilities. VDOT's goal in this process is to build projects quicker with less cost to taxpayers. Currently two PPTA projects, Routes 288 and 895, are under construction in the Richmond area.

"VDOT Receives Two I-81 Proposals", VDOT news release, January 17, 2003. Excerpts follow (blue text):
The Virginia Department of Transportation (VDOT) received two conceptual proposals from private entities to improve Virginia’s Interstate 81 corridor under the Public-Private Transportation Act of 1995 (PPTA), as amended.

The firms that submitted conceptual proposals are:
Fluor Virginia, Inc.
The major design-build contracting firms are Granite Construction Company in joint venture with Lane Construction Company; Gilbert Southern Corp., a subsidiary of Kiewit, and Fluor assisted by Virginia based Shirley Contracting Company.
STAR Solutions
Star Solutions is a consortium of APAC, Inc., Adams Construction Company, English Construction Company, Inc., KBR, Inc., Koch Performance Roads, Inc., W-L Construction & Paving, Inc. and Wilbur Smith Associates.

VDOT received the proposals by 4 p.m. today, the official deadline.
“We requested proposals so we can generate more competition and bring forward the best and brightest ideas the private sector has to offer,” said VDOT Commissioner Philip A. Shucet. “We asked the private sector for not only road-widening solutions, but more importantly, for multi-modal and high-tech solutions. We also expect the proposers to share in the financial risk of improving I-81.”

As the VDOT news release says, the next critical dates in 2003 are, 1) Feb. 14 – VDOT reviews administration requirements and determines whether to move one or more proposals to the initial stage of review. 2) July 11 – If VDOT moves forward with the process, the agency selects one or more of the proposals for negotiations on this date. 3) Sept. 30 – VDOT’s target date for completing negotiations.

"Star Solutions gives new details in plan - Group renews proposal for I-81", Roanoke Times, January 17, 2003. Excerpt follows (blue text):
The private builders' group that wanted to widen Interstate 81 renewed its proposal Thursday with new details about cost, safety features and switching freight to rail. The cost is estimated at between $6.25 billion and $7.75 billion, said Star Solutions, a consortium of 25 construction and finance companies. Others had estimated the cost as high as $13 billion. Virginia's tax-dollar investment would be capped at $169 million. Concrete "Jersey barriers" would separate trucks from cars along the entire 325 miles of I-81 in Virginia, and bridges to help trucks exit from the interstate have been added to the plan. Last year, the builders had proposed using only rumble strips to separate cars and trucks. The Virginia Department of Transportation added a requirement in October that builders propose ways to divert some truck freight to railroads. Star Solutions said its proposal met that requirement, and it remains open to new solutions that may come from rail studies that are under way. Other aspects of the Star Solutions proposal look much the same as its original plan, submitted in January 2002. It would provide at least four lanes in each direction, with two lanes each way reserved for trucks. Construction could be completed in 15 years.

"Fluor Virginia consortium says it can widen highway faster, at lower cost than rival can", Roanoke Times, January 18, 2003. Excerpt follows (blue text):
A second group of road-building companies said Friday that it can widen Interstate 81 faster and for less money than other builders. Fluor Virginia Inc. said it can add two car-only lanes in the median of I-81 for $1.8 billion by 2011 and pay for it entirely with tolls on cars and trucks. Fluor's proposal to the Virginia Department of Transportation competes with one filed a day earlier by Star Solutions. Both Fluor and Star are consortiums of contractors, engineers and financiers headed by some of the nation's largest corporations. The price difference is almost $4.5 billion. Star Solutions proposed to rebuild I-81 to eight lanes in a wider path; Fluor Virginia proposed to add one lane each way within existing right of way. The proposals were alike in that both would widen all 325 miles of I-81 in Virginia and that both would pay for it, at least partly, with tolls. The primary differences are the number of lanes and the price. Fluor's lowest figure was $1.8 billion; Star's low figure was $6.25 billion. The cost for both would go up if Virginia wanted the consortiums to maintain the pavement after construction.

The Fluor proposal would involve no public tax funding, and it would toll all vehicles (the Star Solutions proposal would toll trucks only), and Fluor proposes tolls of 10 cents per mile for trucks, and 3 cents per mile for cars. So Fluor would add one lane each way in the median of the existing highway, and have the job completed in 8 years, while Star Solutions would build a more elaborate and more expensive dual-divided scheme with a 2x2x2x2 lane configuration which would separate cars from trucks.

"I-81 plan calls for car tolls", Richmond Times-Dispatch, January 17, 2003. It reiterates much of the same points as the previous two newspaper articles, and it includes a schematic of Fluor's proposed widening scheme.

TEA-21 - Fact Sheet: Interstate Toll Pilot, September 14, 1998. Excerpt (in blue text):
TEA-21 creates a pilot program under which a State may collect tolls on an Interstate highway for the purpose of reconstructing or rehabilitating an Interstate highway that could not otherwise be adequately maintained or functionally improved without the collection of tolls. [1216(b)(1)]

A maximum of three Interstate facilities may be included in the pilot program, and they must be in different States. [1216(b)(2)]

The following is VDOT's application for the Interstate toll pilot project for I-81, and the Federal Highway Administration's (FHWA) response and recommendation to approve the application.

VDOT's Application to Toll Interstate 81 Under Section 1216(b) of TEA-21, March 20, 2003.  Excerpts follow (blue text):
Subject: VDOT's Application to Toll Interstate 81 Under Section 1216(b)
of TEA-21
Date: March 20, 2003
From: \\Original Signed by Vincent Mammano for\\
Roberto Fonseca-Martinez
Division Administrator HDA-VA
To: Dwight A. Horne, Director Office of Program Administration

VDOT has submitted an application (attached), under 1216(b) of TEA 21, to toll Interstate 81. Our office reviewed the application and finds it to be satisfactory as discussed with your office and VDOT there are several future actions and deliverables that are necessary for a complete approval under this program. These items are listed in Section E (Understanding of required future actions). Based on the information in the application and the commitments in Section E, the Virginia Division recommends that one of the three available slots under this pilot program is assigned to Virginia DOT for Interstate 81.

As you know VDOT has received two proposals under their Public Private Transportation Act, to improve I-81. Both of the proposals include tolling as part of the projects.

We request your review and approval of this application. If you have any questions, please contact Vince Mammano at 804-775-3355.

The remainder of the application is on the above link.

On March 20, 2003, the Commonwealth Transportation Board voted to move ahead with both I-81 PPTA proposals.

"Transportation Board Votes to Move Ahead With Both I-81 PPTA Proposals", March 20, 2003, VDOT news release. Excerpts follow (blue text):
The Commonwealth Transportation Board (CTB) voted today to move two I-81 conceptual proposals by Fluor Virginia, Inc. and STAR Solutions to the detailed stage of the review process under the Public-Private Transportation Act (PPTA). The proposals to improve the I-81 corridor have gone through the first phase of the PPTA process, which involved a committee of top VDOT officials reviewing the firms’ qualifications, technical and engineering merit and financial feasibility. After determining that both proposals qualify to move forward, VDOT Commissioner Philip Shucet recommended to the 17-member board that it vote to advance the proposals to the next stage in the PPTA process. The CTB concurred with Shucet’s recommendation.

“With traffic volume expected to double over the next 20 years, it is critical that I-81 be improved to handle the demand in a safe and efficient manner,” said Shucet. “It is also critical that we go through this process carefully so that the best transportation solution is achieved, while at the same time paying careful attention to potential social, economic and environmental impacts.”

Before VDOT asks for detailed proposals, it is seeking clarification from the Federal Highway Administration (FHWA) regarding the timing of approving an eventual comprehensive agreement, should one or both detailed proposals be accepted. Depending on that clarification, the comprehensive agreement may not be concluded until the National Environmental Policy Act (NEPA) process is completed. NEPA requires projects that necessitate a major federal action from the FHWA – such as federal funding - to go through a comprehensive environmental review of all reasonable alternatives, including the alternative of doing nothing. VDOT expects a decision from the FHWA within 2 to 4 weeks.

The NEPA (National Environmental Policy Act) issues in that last paragraph, and many other NEPA questions received from the various public and private sector organizations, were addressed in one memorandum from VDOT to FHWA (Federal Highway Administration). FHWA has a detailed Q&A webpage on their website, to answer the many questions that they have received with regard to the I-81 PPTA proposals:

I-81 Public Private Transportation Act (PPTA) Proposals
published by FHWA on May 6, 2003.

One of the key points in that FHWA webpage, is that if a PPTA comprehensive agreement is entered into between VDOT and a private proposer, that does not constitute "selecting an alternative" in the NEPA EIS process. If not already completed, the full NEPA process would be undertaken, and it would be possible for the private entity to fund all or part of the cost of the EIS studies in a separate contract, and in that case the private entity would be free to provide information and analyses which the state DOT could consider using in the NEPA document, but the state DOT would provide direction, oversight, authorship and ensure objectivity over the actual NEPA document. The full NEPA process (purpose and need, full range of alternatives analysis including the no-action alternative, impacts, mitigation, public hearings, response from other agencies, etc.) would be carried to conclusion. If a different alternative from that of the plan of the private entity is chosen, it looks like that the comprehensive agreement would be terminated, that being a risk that the private entity would have to assume, although it would be between the state and the private entity as to how the financial risk would be apportioned should that be the case.

"VDOT Announces Latest I-81 PPTA Developments", VDOT news release, May 30, 2003. Excerpts follow (blue text):
The Virginia Department of Transportation(VDOT), working with both the Fluor Virginia, Inc. and STAR Solutions teams, took the next step today in moving forward with the I-81 proposals submitted under the Public-Private Transportation Act (PPTA). In order to comply with the National Environmental Policy Act (NEPA), VDOT must prepare environmental documents for the I-81 corridor. While VDOT will be responsible for the environmental process to ensure a thorough and objective review, the PPTA teams – Fluor Virginia, Inc. and STAR Solutions - will work with VDOT to develop certain objective and technical information for the studies.
 
“By working together with both PPTA teams, VDOT will expedite the environmental review process while making certain that all environmental requirements are completely satisfied, including the requirement to investigate all reasonable alternatives,” said VDOT Commissioner Philip Shucet. He emphasized that rail options must be fully considered as part of any proposal. During the environmental review of I-81, citizens will have opportunities to provide their input through public meetings. This summer, VDOT begins a Purpose and Need Study to lay the foundation for the NEPA process. Approximately $37 million has been allocated for environmental review of the I-81 corridor in the Tentative Six-Year Improvement Program, which will be finalized by the Commonwealth Transportation Board (CTB) in June.

"Statement from VDOT Commissioner Philip Shucet to the Media Regarding I-81 PPTA Proposals", VDOT news release, June 5, 2003. Excerpts follow (blue text):
Nine months ago when the Virginia Department of Transportation (VDOT) solicited proposals from the private sector under the PPTA for I-81, we anticipated that the proposers would be able to conduct the required environmental review process under the National Environmental Policy Act (NEPA). Since that time, the FHWA has made it clear that VDOT must independently control and manage the NEPA process. With FHWA’s direction in hand, we met with both PPTA partners and worked out a strategy for moving forward. In doing so, I made it clear that the projected date of construction to upgrade the corridor would not be delayed in the process and that the project remains a critical priority to the Department.

For that reason, I stated at the press conference that we would work with both Star Solutions and Flour Virginia, the two PPTA partners, during the environmental review process, but would defer actually signing a comprehensive agreement with either party until the NEPA process had been concluded.
 
As it turns out, the only vehicle available to fully engage the private partners during the environmental review is to sign comprehensive agreements with those partners.

So, VDOT is saying that a PPTA agreement will be entered into with one or both Fluor and Star, should at least one be chosen, by the end of 2003.

"Evaluation of I-81 Proposals Proceeds", VDOT news release, Sept. 26, 2003. Excerpts follow (blue text):
Two detailed proposals to improve I-81 in Virginia will be reviewed and evaluated by an advisory panel created by Secretary of Transportation Whitt Clement. The panel consists of 11 members, including representation from the Commonwealth Transportation Board, the Department of Transportation, the Department of Rail and Public Transportation, the academic community and the Virginia Transportation Safety Board.

The advisory panel's first meeting will be held on Thursday, October 2, from 10:00 a.m. to 3:00 p.m. in the VDOT Salem District auditorium, 731 Harrison Ave., Salem, Virginia. The meeting will be open to the public and all written materials provided to the panel also will be available to the public.
 
VDOT Begins I-81 Environmental Studies

"VDOT, FHWA Sign Agreement To Begin Environmental Study of I-81", November 10, 2003, VDOT news release . Excerpts follow (blue text):
The Federal Highway Administration (FHWA) and the Virginia Department of Transportation (VDOT) have signed an agreement on how the federally required environmental review process will be carried out for the 325-mile I-81 corridor in Virginia. The Process Streamlining Agreement is the first of its kind in Virginia to outline a process to ensure that environmental issues are fully addressed in an agreed-upon timeframe. “This agreement is a substantial step forward in terms of preparing and processing environmental documents,” said VDOT Commissioner Philip Shucet. “Both agencies have agreed that we will conduct the study in two phases, or tiers, with the completion of the first tier and some approvals to come as early as mid-2005.”

The environmental review will be conducted in two tiers, each of which will lead to specific decisions. This approach allows VDOT to get certain decisions from FHWA and other federal agencies throughout the course of the study, not just at the end. That may position VDOT to go forward with developing some sections of the corridor sooner rather than later.
 
When the Tier 1 study is completed, decisions on the following will be made:
* Improvement concepts for highway and rail facilities, such as the number of additional highway lanes that may be needed; partial or complete separation of trucks and passenger vehicles; and additional rail capacity
* Approval to advance I-81 as a toll pilot project under current federal law
* Roadway and rail components to be studied in Tier 2
* Possible purchase of right-of-way parcels on a case-by-case basis
 
FHWA and VDOT will work to complete the Tier 1 study in mid-2005, according to the agreement. It is expected that the Tier 1 study will identify site-specific areas for further analysis and federal approvals, which will be performed in a Tier 2 study. After the Tier 2 study is complete, FHWA could authorize use of federal funds for VDOT to begin designing construction plans, purchasing right-of-way and building improvements.

"VDOT Signs Consultant for I-81 Environmental Review", VDOT news release, December 18, 2003. Excerpts follow (blue text):
The federally required environmental review of the 325-mile Interstate 81 corridor in Virginia will begin in early January 2004, according to the Virginia Department of Transportation (VDOT).
 
VDOT selected the Richmond firm of Vanasse Hangen Brustlin Inc. (VHB) to conduct an environmental study of the I-81 corridor in accordance with the National Environmental Policy Act (NEPA). Because the interstate system is federally funded, any proposed changes to the highway must follow the national project development process as prescribed by the Federal Highway Administration (FHWA). Part of the process includes compliance with all federal laws including NEPA.

The environmental study must consider reasonable improvement concepts for the heavily traveled I-81 corridor, including opportunities for separation of trucks and passenger vehicles, and rail improvements. In addition, the study will evaluate tolling as a funding source. Citizens will have many opportunities to provide input on all proposed I-81 improvement concepts during the environmental review process, including many open house style meetings along the corridor and an interactive Web site.

The news release goes on to say that VDOT and FHWA announced in November, 2003 that the agencies had agreed to streamline the environmental study by dividing it into two phases, or tiers, each of which will lead to specific decisions. The Tier 1 study is planned to be completed in mid-2005, and the Tier 2 study will be completed later. VHB will conduct the Tier 1 study for VDOT under a contract valued at $10,955,273.

"State Releases Interstate 81 Rail Diversion Study", Virginia Department of Rail and Public Transportation (VDR&PT) news release, December 18, 2003.  Excerpts follow (blue text):
A study released today by the Virginia Department of Rail and Public Transportation suggests that an additional 5% or 500,000 trucks annually could be diverted from Interstate 81 to rail if significant capital improvements are made to the rail system that serves the corridor in Virginia.

The study looked at two scenarios; 1) a "Virginia Only" investment and 2) a twelve to fourteen state "Multi-State Corridor" investment stretching from Louisiana to New York. A "Virginia Only" investment of $492 million could divert an additional 5% of truck traffic by 2020. The study also found that truck traffic on I-81 could be reduced by 30% by the year 2020 only if a multi-state investment of $7.9 billion was made.

VDR&PT I-81 Marketing Study Presentation, I-81 Final Report - Executive Summary, I-81 Final Report - Full Report - Part I, I-81 Final Report - Full Report - Part II (Appendices).

I think that the freight railroads are a great way to move large-tonnage cargoes for long distances, and in the United States, the railroads have the largest cargo market share of all the modes, with 40% of the tonnage being moved by freight railroad (trucking is about 30%, with barge/ship, pipeline and aircraft being the rest); but the above study results seem to indicate serious concerns about the feasibility of diverting cargo from I-81 to the railroads. The "Virginia Only" investment seems affordable, but would only divert 5% of the I-81 truck traffic by 2020. The "Multi-State Corridor" investment would facilitate a substantial diversion of I-81 truck traffic, but that would rely on 12 to 14 states and the associated railroads all in harmony agreeing on a plan of how to improve the railroad infrastructure, and would rely on a large sum of funding ($7.9 billion) from unknown sources, since no railroad user funding mechanism has yet been proposed for funding such a project; on the other hand, the widening of I-81 can be 100% funded from its tolls and road user taxes.

"VDOT Sets Public Meetings on I-81 Corridor Study", VDOT news release, January 28, 2004. Excerpts follow (blue text):
Seven public information meetings are scheduled along the 325-mile Interstate 81 corridor in February 2004, and interested citizens are encouraged to attend to provide their ideas about how I-81 could function in the future. The meetings, called scoping meetings, are the public kickoff of the I-81 Corridor Improvement Study now under way by the Federal Highway Administration and the Virginia Department of Transportation. The study will identify deficiencies along the interstate as well as opportunities for improvements throughout the corridor in Virginia.

The news release goes on to discuss the purpose of the meetings, and lists the locations of the meetings along the I-81 corridor.

On February 13, 2004, the I-81 PPTA Advisory Panel recommended to the VDOT Commissioner (agency head) that he enter into negotiations with STAR Solutions for a comprehensive agreement on their proposal.

"Advisory Panel Reaches Recommendation on I-81 PPTA Proposals", VDOT news release, February 13, 2004. Excerpts follow (blue text):
The advisory panel reviewing two detailed proposals to improve the Interstate 81 corridor in Virginia recommended to Commissioner Philip Shucet today that he enter into negotiations with STAR Solutions for a comprehensive agreement. The STAR proposal is based on the separation of car and truck lanes along the I-81 corridor. The majority of the panel supported the concept to widen I-81 to four lanes in each direction, with tolls applied to both cars and trucks. The panel also strongly endorsed the need for a multi-state effort for rail improvements. The panel’s recommendation and its supporting documents will go to Shucet for his review. Shucet will determine whether or not to accept, reject or modify the recommendation. He also will determine whether or not to enter into negotiations for a comprehensive agreement.

The news release goes on to say that the comprehensive agreement is contingent on the project receiving $800 million in the pending federal highway legislation, and that the comprehensive agreement should be based on a tolling framework that minimizes car and truck traffic diversion to other major roadways in Virginia and recognizes the potential impacts on existing and future economic activity in the corridor.

The news release lists the I-81 PPTA advisory panel members:
Pierce Homer, Deputy Secretary of Transportation
Jim Bowie, Commonwealth Transportation Board
Dr. Phillip Stone, Commonwealth Transportation Board
Helen Dragas, Commonwealth Transportation Board
Dana Martin, Commonwealth Transportation Board
Dee Bowles, Transportation Safety Board
Dr. Jonathan Gifford, George Mason University
Fred Altizer, VDOT District Administrator
Malcolm Kerley, VDOT Chief Engineer
Barbara Reese, VDOT Chief Financial Officer
George Conner, DRPT Assistant Director

"Panel gives Star's plans green light for 1-81", Roanoke Times, February 14, 2004. Excerpts follow (blue text):
Star Solutions, the builders' consortium with an eight-lane concept for widening Interstate 81, won the approval Friday of an advisory panel that decided a competitor's six-lane proposal wasn't enough. Construction should be financed by tolls on both cars and trucks, along with $1.6 billion in federal money for a pilot project that provides truck-only lanes, panel members said. The approval doesn't guarantee that I-81 will be rebuilt to eight lanes. A final decision on its width depends on an environmental review, which began last month and will run into 2006 or later.

Star Solutions' selection still hinges on its ability to bring in the federal funding that, at this point, is only a concept in the transportation act that's being debated in Congress. Star Solutions also must submit, perhaps by adapting its proposal, to requirements of the National Environmental Policy Act. Pierce Homer, chairman of the panel, which spent four months reviewing proposals by Star and competing consortium Fluor Virginia, said it's critical that Star follow through with the federal funding and environmental compliance. There were other conditions, too - so many that it could easily take two years for the Virginia Department of Transportation to negotiate a comprehensive agreement with Star Solutions. The panel's vote was 9-2 for Star Solutions.

The panel agreed that I-81 can't be widened without tolls. Conventional financing would require a 13-cent increase in the state gas tax, dedicated to I-81, said panelist Barbara Reese, VDOT's chief financial officer. That tax could never win General Assembly approval, panel members said.

The solution, the panel suggested, is a carefully structured toll pricing system aimed at keeping the cost bearable for trucks and cars. The pricing would also have to pass muster with Wall Street investors buying the bonds.

"Panel wants all drivers to pay", Richmond Times-Dispatch, February 14, 2004, had more information about the recommendation to select Star Solutions.  Excerpt follows (blue text):
Star Solutions would initially charge truckers more than 20 cents per mile in tolls and ultimately bump the toll rate up to nearly 37 cents per mile, costing truckers about $120 to drive from Bristol to Winchester. The study found that a toll of 35 cents per mile would prompt 50 and 60 percent of truckers to use alternate routes. But Volk [Star Solutions Vice President] said a toll on cars, as recommended by the panel, might allow Star Solutions to cut the toll on trucks in half, curtailing the number of trucks that would leave I-81.

VDOT Enters into Negotiations With STAR Solutions

On March 5, 2004, the VDOT Commissioner (agency head) announced his decision about the February 13, 2004 recommendations of the I-81 PPTA Advisory Panel, and he agreed that VDOT should enter into negotiations with STAR Solutions for a comprehensive agreement on their proposal. It will take some time for VDOT and STAR Solutions to complete the comprehensive agreement, but this is the big milestone where the state has selected which of the proposers that it wants to consider partnering with on the I-81 widening. Even after a comprehensive agreement is entered into, the I-81 widening projects will still need to have a completed NEPA process (environmental impact documents, public hearings, and federal approvals) and pertinent federal and state permits before they can be built.

"VDOT Commissioner Reaches Decision on I-81 PPTA Proposals", VDOT news release, March 5, 2004. Excerpts follow (blue text):
Statement from Transportation Commissioner Philip Shucet: “After careful review of the I-81 PPTA advisory panel’s recommendation and all supporting documents, I am directing VDOT to enter into negotiations with STAR Solutions as the potential operator under the Public Private Transportation Act of 1995, as amended, for improvements to the Interstate 81 Corridor in Virginia. The conditions included in the recommendation will be taken under advisement during the negotiation process. This approval in no way preempts the requirements of the National Environmental Policy Act of 1970 (NEPA), requiring the evaluation of reasonable alternatives, as well as an analysis of potential social, environmental and economic impacts. NEPA serves as a basis for making informed decisions prior to proceeding with any construction activities.” Negotiations between VDOT and STAR Solutions will take six to nine months. Should negotiations be successful, a comprehensive agreement would follow.

The STAR proposal would widen I-81 to four lanes in each direction, with the separation of truck and car lanes. The majority of the panel supported financing the project with tolls applied to both cars and trucks. The panel also strongly endorsed the need for a multi-state effort for rail improvements.

"Highway chief OKs I-81 plan", Roanoke Times, March 6, 2004. Excerpts follow (blue text):
Virginia's transportation commissioner added his approval Friday to the Interstate 81 widening proposal by the Star Solutions builders consortium. The decision by Commissioner Philip Shucet moves Virginia closer to an agreement for what he called "the largest design-build horizontal project anybody has ever embarked on."

Virginia Department of Transportation staffers will begin negotiating with Star toward a comprehensive agreement, framing a big picture of the ways they'll work together until an environmental study is complete two or more years from now. An eight-lane concept for I-81 is the general idea shaping the negotiations, but parts of the highway could have more lanes or fewer, depending on environmental issues, Shucet said.

The agreement allows independent consultants to do a study required by the National Environmental Policy Act to evaluate alternatives to the widening and analyze "potential social, environmental and economic impacts," Shucet said.

The agreement will not establish tolls on I-81 or set a price for construction. Those can't be decided until the environmental process has revealed what it's possible to build, Shucet said. Preliminary cost figures run as high as $13 billion.

"I've been clear that I believe rail is a part of the solution," Shucet said, and people shouldn't adopt the belief that VDOT's choosing Star Solutions' plan leaves rail out. Star Solutions proposed upgrading tracks in the Manassas-to-Front Royal area at a cost of about $110 million, saying that would take 5 percent of total truck traffic off I-81.

An advisory panel that recommended the Star Solutions concept to Shucet also recommended that both cars and trucks be tolled. The panel said truck tolls needed to be held at 20 cents or less per mile, and the only apparent way for that to work out financially was to toll cars.

Draft Purpose and Need Statement Released

The Draft Purpose and Need Statement was released on January 31, 2005.

See I-81 Corridor Study, with Draft Purpose and Need and the links to Existing and Future Conditions, October 2004.

"Draft" is the watchword here, as it leads off with (excerpt in blue text):
This information is being developed as part of the National Environmental Policy Act (NEPA) process. All data presented herein are preliminary and subject to change prior to the public availability of the Tier 1 Draft Environmental Impact Statement. VDOT values public input and comments or questions received about these data will be considered as part of the normal process of public availability for the Tier 1 DEIS.

The projected 2035 average weekday total traffic ranges from 77,700 to 91,000 in the rural areas and from 100,000 to 114,000 in the urban areas, and the projected 2035 average weekday large truck traffic ranges from 22,310 to 33,970. That would indicate a need for a minimum of 6 lanes, and 8 lanes in the urban areas. The 2035 projected truck traffic is much higher than what the original 4-lane (2 each way) I-81 was designed for in traffic for all classes of vehicles. A separate, exclusive four-lane truckway could be warranted, unless a multi-state effort is undertaken to provide sufficient freight railroad improvements from (at least) the Tennessee-to-New York corridor to relieve freight traffic along the I-81 corridor. I would rather see the necessary railroad improvements, and I-81 with  6 lanes (3x3) in the rural areas, and 8 lanes (4x4) in the urban areas.

The reason for the 2035 design year  (excerpt in blue text):
The year 2035 was selected because it is envisioned that the improvements that emerge from this study may take at least 10 years to complete and, per FHWA requirements, should have a useful life of at least 20 years beyond completion. A detailed description of the forecast methodology is presented in the I-81 Corridor Improvement Study Transportation Technical Report.

STAR Solutions Proposal Criticized

Since the middle part of 2004, there has been growing opposing from some people and groups to the STAR Solutions 8-lane dual-divided proposal that would separate car and truck traffic. There has been some scaremongering from a few of them, claiming that this proposal is a "done deal" with VDOT and other state officials.

VDOT has not entered into any legal agreement with STAR Solutions for any I-81 improvements. The March 5, 2004 action by VDOT was to "enter into negotiations with STAR Solutions as the potential operator under the Public Private Transportation Act of 1995, as amended, for improvements to the Interstate 81 Corridor in Virginia." That means exactly what it says, that VDOT is at the negotiation stage of the PPTA process. VDOT has not decided what general design will be utilized for I-81, and hasn't decided whether STAR Solutions will be the operator for any I-81 improvements.

It goes on to say, "Should negotiations be successful, a comprehensive agreement would follow". A comprehensive agreement in the PPTA process is the actual legal agreement between the agency and the private entity, whereby roles and responsibilities are detailed, which could include work such as design work, construction work, maintenance, pavement warranty, etc.

An FHWA-approved Tier I Final EIS, and an FHWA-issued Record of Decision, will be required before a final decision is made as to what I-81 in Virginia will look like in the future. These approvals could occur in Fall 2005. This federal NEPA process is separate and independent from the Virginia PPTA process. This Tier I EIS process includes both potential I-81 improvements and potential railroad improvements in the same general corridor.

The PPTA legislation was enacted in 1995, and the I-81 public-private proposal process is exactly following the legislated PPTA process framework, and VDOT is using the authority that was delegated to it by the General Assembly.

The Public-Private Transportation Act of 1995 is the legislative framework enabling the Commonwealth of Virginia, qualifying local governments and certain other political entities to enter into agreements authorizing private entities to acquire, construct, improve, maintain, and/or operate qualifying transportation facilities. Passage of the Act, which took effect July 1, 1995, followed a year-long collaboration among the General Assembly, representatives from the private sector, and the transportation agencies.

PPTA is conceptually similar to the public-private partnership legal framework that at least 16 others states have, and what is used in many parts of the world.

If the General Assembly wants to modify the PPTA law in the state code, then they can certainly do so; and they can also commission JLARC (Joint Legislative Audit and Review Commission of the General Assembly of Virginia) to conduct an audit/review of the PPTA process and specific PPTA projects, should they choose to do so; and the fact that JLARC hasn't yet done that in the 10 years of existence of the PPTA, would indicate that the General Assembly believes that the PPTA process is working successfully and properly.

I personally would like to see JLARC conduct the audit/review. I had  2 and 1/2 years of experience in public sector auditing, and auditing  is the friend of the public process, and given that some people are complaining about the PPTA process, a JLARC audit/review would help put those complaints to rest, and recommend adjustments in the PPTA law if JLARC finds that such adjustments are warranted.

By engaging STAR Solutions for negotiations under PPTA, VDOT has not ruled out the possibility for a traditional design-bid-build (non-PPTA) outcome for widening I-81. VDOT has not entered into any legal agreement with STAR Solutions for any I-81 improvements. Unless in the future VDOT enters into a PPTA comprehensive agreement with STAR, there will be no further action with STAR on this project. Meanwhile, the Tier I EIS will be completed within the next year, evaluating alternatives for I-81 improvements and railroad improvements in the same general corridor, and the EIS will be just as valuable for traditional (non-PPTA) transportation infrastructure improvements.

Tier 1 Draft Environmental Impact Statement Released

VDOT and FHWA released the Tier 1 Draft Environmental Impact Statement on November 29, 2005.

Tier 1 Final Environmental Impact Statement Released

VDOT and FHWA released the Tier 1 Final Environmental Impact Statement on April 9, 2007.

With regard to the value of public-private partnerships being used to build transportation projects, a recent Federal Highway Administration (FHWA) study on public-private partnerships concluded that they can perform better than 100% public sector projects in some instances.

Report to Congress on Public-Private Partnerships, 12/04. Excerpts (in blue text):
Public-private partnerships can generate substantial benefits for public agencies interested in encouraging innovation and saving time and money on projects. Risk aversion and lack of experience with the private sector, however, often drive public agencies to spend considerable time and resources developing systems for soliciting projects, ensuring adequate competition, and allocating the risks associated with designing, constructing, and operating a large transportation facility.

Cost and time-savings associated with public-private partnerships are more readily quantifiable. Two reports and numerous case studies have found that public-private partnerships can save from 6 to 40 percent of the cost of construction and significantly limit the potential for cost overruns. The reason for these savings is that the private sector often has more appropriate incentives to limit costs than the public sector. In addition, having one entity responsible for design, construction, and operation can result in efficiencies that are not possible with traditional design-bid-build methods. Public-private partnerships help reduce the time it takes to build a project in two ways, through innovative finance and project management. The most significant time-savings generated by public-private partnerships are a result of innovative financing. By restructuring project financing and borrowing funds, public-private partnerships can cut many years off project delivery. Although frequently less dramatic, innovative project management also reduces the time it takes to finish a project, often saving months if not years.

I-81 Project Links

Star Solutions website - www.improve81.com. [link is inactive]

"Improving I-81" - the Roanoke Times has a central webpage with various links about the Virginia I-81 widening proposals, including their newspaper articles, and the VDOT I-81 project links. [link is inactive]

Welcome to the Interstate 81 Corridor in Virginia - highlights of VDOT studies and plans to improve/widen I-81 in Virginia.

VDOT webpage I-81 PPTA Proposals.

Roads to the Future Articles with Additional Information and Photos

Interstate 81 and Interstate 77
Interstate 77 Virginia Photos
Interstate 77 New River Bridge
Interstate 77 in Virginia
Interstate 81 in Virginia