1. Environmental Costs Marlys Osterhues FHWA – HEPE FHWA Environmental Conference June 19, 2008

2. Today’s Presentation • Fiscal Stewardship • Research Activities: • Project Cost Disclosure in Environmental Documents • Costs Associated with Environmental Impacts and Environmental Process • Next Steps

3. Fiscal Stewardship • Engrained throughout the transportation decision making process: • Fiscal constraint requirements in the transportation planning process; • Reasonable cost estimates of alternatives in project development and the NEPA process; and • Financial plans and major project requirements during design and construction.

4. Cost Estimation Disclosure in EISs • Eisenhower Fellow Graduate Student from Clemson University • Reviewed100 EIS • Identify how costs are presented in EISs • Determine if costs are updated through different phases of NEPA process • Snapshot of estimating techniques used • Follow-up interviews on 6 projects

5. Cost Estimation Disclosure in EISs • Findings from May 2008 Report • 11% of projects did not disclose cost estimate. • Minimal change in cost difference between DEIS, FEIS and ROD. • 33% did not break costs down for all alternatives. • 87% did not address how estimate was developed.

6. Project Environmental Costs • Report to Congress on Costs Associated with the Environmental Process, October 2006 • Based on FHWA Case Studies • Environmental Costs averaged about 8% of total project costs • Stormwater, wetlands, landscaping expenditures during construction were large environmental cost drivers

7. Project Environmental Costs • NCHRP Project 25-25 Task (39), Estimating Environmental Costs • Research on improving cost estimating for transportation projects • Ongoing project conducted by ICF • Due out in 2009

8. Next Steps • Disseminate and post research products • Create FHWA website on environmental costs • Host webinars • Include more guidance on cost disclosure in any future update to TA?

9. Questions marlys.osterhues@dot.gov 202-366-2052