From Jack McDougle, President & CEO of the Board of Trade:

“Not only is the government shutdown ineffective policy-making, it’s also hurting the region. Over 300,000 people in the area work for the federal government, and many of them are now missing a paycheck, with no reassurance from federal leaders when that paycheck will come. This is tough on those families, and it’s tough on the local businesses that rely on the daily spending of federal workers. It’s also discouraging tourists from visiting and spending their money here. This all adds up to enormous costs; when the government shut down in 2013, the D.C. area lost about $400 million of economic activity per week. Many of our member companies, large and small, are impacted. The Board of Trade urges members of Congress and the President to work together to reopen the government as quickly as possible.”

 

For press inquiries, contact Lindsey Longendyke, Communications Director, at lindseylongendyke@bot.org or 980-322-9904.

In late November, the Board of Trade teamed up with the Greater Washington Partnership to host the 2018 Capital Region Transportation Forum. Here are five big ideas from the conversations on stage:

1. You can’t fight poverty without fixing transportation.

Poverty is complex, but according to a study cited by Virginia transportation secretary Shannon Valentine, a family’s ability to rise from poverty is most impacted by their access to transportation. Valentine explained that the area can have world-class schools and abundant jobs, but if residents can’t physically get to them, they will be left behind.

The Capital Region Blueprint on Regional Mobility, released by the Greater Washington Partnership at the forum, claims that residents traveling by transit can get to just 8 percent of the jobs they could get to by car within 45 minutes of their home. That’s not good enough. Greater Washington must treat transportation as a core social issue to reverse longstanding economic inequities across the region.

2. We need to think in systems, not projects.

Building the purple line. Rebuilding the American Legion Bridge. Connecting the VRE and the MARC trains. These are just a few of the large and expensive transportation projects named on stage.

These and other projects are important, but speakers stressed the need for leaders to step back and think of the entire system. This can challenge states’ transportation departments, which are usually “project factories,” according to Pete Rahn, Maryland’s transportation head.

Valentine noted that Virginia is attempting to shift away from a project-based approach in allocating $15 billion of investment. She described looking across all modes of transportation and thinking holistically about connecting high-traffic sites.

But transportation departments can’t work alone. Government agencies responsible for scouting sites for schools, neighborhoods, and other important community amenities need to think ahead about accessibility and, ideally, consult with the department of transportation before breaking ground. Building a school on comparably cheap land that’s removed from bus and Metro lines won’t save the community money in the long-run.

Jeff Marootian, director of the District Department of Transportation, put these new operational models in the context of our changing times, saying, “We need to think about innovation not just with respect to technology but innovation with respect to process.”

3. People want seamless mobility services

Thinking in systems is inherently more customer-centric, especially as travelers and commuters embrace new and mixed modes of transportation. Without thoughtful integration, getting from point A to point B could require several points of payment, access cards, or apps—which can inhibit travelers from pursuing the fastest, most cost-effective, and most sustainable route.

In a panel discussion on innovation and disruption, Uber’s public policy manager, Nick Zabriskie, described a digital overlay that would connect its service to public transportation. Zabriskie acknowledged that a car might not always be the best solution for customers, and a digital interface that displays all option could help users choose the best course.

4. There’s a market for $40 toll lanes

When the I-66 express lanes opened in December 2017, they were met with widespread alarm over $40 tolls at peak rush hour. There were accusations of price gauging and #highwayrobbery trended on Twitter. Many asked, “Who would pay that?”

But a year later, there is a clear market for the express lanes. Jennifer Aument, North America general manager for Transurban, shared that a typical customer is a working parent who uses the express lanes when needed to help manage their busy life. This demographic is more likely than others to use convenience services like grocery home delivery.

Nicholas Donohue from the Virginia Department of Transportation explained that paying a $40 toll won’t be an everyday choice for most people, but it’s an option that people are glad to have when they are in a pinch. (His example was picking his mother-in-law up from the airport!)

If planned correctly, these toll lanes can benefit more than just the affluent drivers who can afford them. The Partnership offers six principles for “performance-driven tolling,” including that revenues be reinvested in the wider transportation network.

5. Public-private partnerships work when everyone plays to their strengths

Partnerships between government agencies, private sector companies, and investors can make it possible to successfully design, finance, and build the infrastructure Greater Washington needs on a much shorter time scale. However, there’s a right and a wrong way to structure a public-private partnership, or P3. The right structure will allow each entity to do what it does best.

Governments are accountable to their citizens and are not profit-driven. Therefore, their role should be to keep the needs of the community at the heart of the project. They should ensure environmental impacts are understood and mitigated, and that the benefits of infrastructural projects are inclusive of the whole community.

The private sector, on the other hand, is often a driving force for innovation and efficiency. That’s why several panelists held the opinion that governments should be clear about the problem they want to solve but let the private sector develop and propose solutions without heavy interference. Gregory Slater of the Maryland State Highway Administration shared that his department received simple but highly effective proposals from the private sector for a $100 million investment in 1-270 by simply asking, “Who can move the most, the furthest, the fastest?” He said, “It’s amazing what you can do when you don’t tell people what to do.”

Today, at the 2018 Annual Meeting, the Board of Trade released a bold, new strategic plan for the years ahead. Read the opening letter from our leadership below, and to read the full document, download the PDF or view the mobile-friendly version. 

A Letter from our Leadership

We are living in a time of unprecedented change. Around the world, technology is evolving at breakneck speeds, urban populations are growing faster than ever, new markets are emerging as powerful economic centers, and our climate and natural resources are increasingly under strain. These changes represent significant opportunities and challenges, as witnessed by Amazon’s
decision to make a major expansion in the region.

Greater Washington will inevitably see its share of these changes over the coming years, but the shape of that change is up to us. We must collaborate to ensure a desirable and innovative business climate where our members prosper, resources are used wisely, people’s needs are met, and our urban spaces are planned thoughtfully—adding up to a region where everyone can thrive, for generations to come.

This strategic plan outlines how we will make this vision a reality. It is the culmination of an especially transformational and exciting year in which we welcomed Jack McDougle as CEO and, with input from across the membership, took a fresh look at our strategic direction while improving our internal capacity. It builds on our 130-year legacy of bringing together the region’s leaders for thoughtful discussion with an action-oriented agenda.

Our strategy is to better leverage technology and innovation to drive inclusive economic growth and improve livability. We will lead a smart region movement to tackle complex, systemic issues while keeping a long-term perspective. We will focus on issues where private sector engagement can make a clear difference, such as innovation, technology, economic diversity, investment, mobility, housing, and workforce development.

The Board of Trade’s ambitious agenda advocates that we work together across organizations and jurisdictions to ensure swift and steady progress. In some cases, the Board of Trade will lead on issues. When it doesn’t, it will support others with the capacity needed to get results. This is not a zero-sum game. We must also be iterative in our approach, creating a learning environment where
we can explore and implement new ideas.

Sincerely,

Kim Horn, President, Kaiser Foundation Health Plan of the Mid-Atlantic States, Inc. and 2018 Chair of the Greater Washington Board of Trade

Tony Lewis, Region Vice President of Public Policy, Verizon and 2019 Chair of the Greater Washington Board of Trade

Jack McDougle, President and CEO, Greater Washington Board of Trade

The 2018 Annual Meeting, which was held today over lunch at the Bethesda North Marriott Hotel & Conference Center, brought together nearly 300 Board of Trade members to celebrate recent accomplishments and take a focused look at the organization’s strategy for the years ahead.

 

From the Stage

Kim Horn, our current Chair, reflected on a few key wins in 2018: achieving dedicated funding for Metro, bringing on Jack McDougle as CEO, and launching a smart region movement to drive inclusive economic growth and improve livability in our region. Looking forward, Jack and incoming Chair Tony Lewis described our 2019-2021 Strategic Plan.

Bruce Gordon, former CEO of the National Association for the Advancement of Colored People (NAACP) and consultant with a long track-record of working with Fortune 500 companies on leadership issues, delivered a keynote speech on staying committed to long-term outcomes.

 

New Video

We also screened a new video that features several of our members. We asked them to, in their own words, explain what the Board of Trade’s smart region movement means to them.

 

2019 Officers

The 2019 Board of Trade officers were announced. They are:

Chair
Tony Lewis
Region Vice President, Public Policy, Verizon

Chair-Elect
Dave Velazquez
President & CEO, Pepco Holdings

Secretary
Dan O’Neill
Mid-Atlantic Division President & CEO, SunTrust Bank, Greater Washington/Maryland

Assistant Secretary
Ken Samet
President & CEO, MedStar Health

Treasurer
Rosie Allen-Herring
President & CEO, United Way of The National Capital Area

Assistant Treasurer
Adam Ostrach
Executive Vice President, Mid-Atlantic Regional Manager, Middle Market Banking, Capital One Bank

Assistant Treasurer
Jermaine Johnson
Executive Vice President, Corporate Banking, PNC Bank

General Counsel
John Stalfort
Managing Principal, Washington DC Office, Miles & Stockbridge, P.C.

 

Thank you, sponsors

This special event was made possible by our sponsors:

STATEMENT: Greater Washington Board of Trade Welcomes Amazon and Calls for Continued Collaboration to Better the Region

WASHINGTON, D.C., Nov 13, 2018 – The Greater Washington Board of Trade, the region’s premier business organization representing all industry sectors, congratulates Crystal City on being selected as one of the two locations for Amazon.com Inc.’s second headquarters, dubbed “HQ2.” More than 200 cities in the United States, Canada and Mexico competed to host the expansion of one of the world’s largest technology companies, and each should be commended for their strong effort.

Following is a statement from Jack McDougle, President & CEO, Greater Washington Board of Trade:

“This is an exciting opportunity. Amazon’s expanded presence will be good for the region, not only because of the jobs and investments, but most importantly because of the technological expertise they bring. Amazon adds significant tech capacity to help further diversify and strengthen our economy. As our region continues to grow, we must continue to work together to take full advantage of this opportunity.”

Following is a statement from Kim Horn, President, Kaiser Foundation Health Plan of the Mid-Atlantic States, Inc. and Chair of the Board of Trade:

“Amazon’s decision is another sign of the Greater Washington region’s amazing talented workforce and economic competitiveness. Working together across multiple jurisdictions, we are not just the national capital—we’re a hotbed of innovation and economic opportunity.”

About the Board of Trade

The Greater Washington Board of Trade is the region’s premier business organization and has represented all industry sectors in the District of Columbia, suburban Maryland and Northern Virginia for 130 years. Pro-business and non-partisan, the Board of Trade uses its tremendous convening power to strengthen our regional economy. It is focused on advancing technology and innovation in the region to drive inclusive economic growth and livability.

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CONTACT: Lindsey Longendyke, Communications Director, 980-322-9904, lindseylongendyke@bot.org

The following letter was submitted to key members of the Maryland Congressional Delegation:

October 22, 2018

Dear Members of the Maryland Congressional Delegation:

I write today to express my strong support for the transfer of the federal portion of the Baltimore-Washington Parkway (MD-295) from the U.S. Department of the Interior (DOI), National Park Service to the State of Maryland. This transfer will allow the State to increase safety by upgrading the existing highway and to build and operate new express toll lanes, which will provide commuters with improved, expanded travel options between Baltimore City and Washington, DC.

The project will transform MD-295 – an unsafe and heavily congested highway – and will improve safety and commute time for the 165,000 people who depend on this thoroughfare every day and the millions of annual visitors to the Washington, D.C. region. The project also will improve the flow of traffic to critical Federal facilities, including but not limited to Fort George G. Meade, the National Security Agency and NASA’s Goddard Space Flight Center.

According to a 2015 report from the National Park Service, no capacity improvements have been made to MD-295 since its construction. This report identified a number of issues with the roadway, including overcapacity operating conditions, roadway features inconsistent with industry transportation safety standards, poor dissemination of information, difficulty with traffic safety enforcement, and limited driver situational awareness. An average of 6 fatalities and 547 crashes per year have occurred on MD-295 since 2006.

Congestion in Maryland has limited economic growth and the quality of life for Maryland citizens for far too long. The net result is that Maryland now has the second longest commuting times in the nation, and the DC region is the most congested region in the nation based on annual delay and congestion cost per auto-commuter. The statewide cost of congestion based on auto delay, truck delay, and wasted fuel and increased emissions was a staggering $2.11 billion in 2016, and is getting worse. This $2.11 billion cost is an increase of approximately $59 million over 2015 levels. More than 98% of the weekday congestion cost was incurred in the Baltimore/Washington region. The proposed plan will benefit the entire regional network by freeing up space on the existing highways and reducing commuter traffic on local roads.

We urge you to move forward with this important initiative that will greatly benefit our regional economy, improve quality of life for millions of Marylanders by affording a quicker and safer commute, and reduce transportation costs. If you have any questions or would further like to discuss our commitment to this project, please do not hesitate to contact us.

Sincerely,

Jack McDougle
President and CEO

The following letter was submitted to Brinda Westbrook–Sedgwick, secretary of the District of Columbia Public Service Commission.

September 18, 2018

Dear Secretary Westbrook:

On behalf of the Greater Washington Board of Trade, I am writing in support of Pepco’s notice of construction (FC 1144) – the “Capital Grid Project” – filed on June 29, 2018. This project is critical for promoting enhanced reliability and strengthening the overall system.

Aging transmission and substation assets pose a major vulnerability to businesses, government and citizens. Nearly all electricity is imported from outside the city and, in fact, only four transmission lines supply electric power to the District as well as Montgomery and Prince George’s Counties. Should any one of these lines go down, it could result in an outage lasting many days and cost millions in economic damages. Not to mention increased concerns about citizen health and safety.

Continuing growth in the District and surrounding communities depends on consistent, reliable and affordable power supplies. Equally important is the need to increase integration of renewables onto the system as well as support customer generated power such as roof top solar. The additional capacity realized through this project will better accommodate these alternative sources.

I am confident the merits of this project will persuade you to support its approval. Thank you for your attention

Sincerely,

Jack McDougle
President and CEO
Greater Washington Board of Trade

The following letter was submitted to Brinda Westbrook–Sedgwick, Commission Secretary of the District of Columbia Public Service Commission.

September 18, 2018

Dear Secretary Westbrook:

On behalf of the Greater Washington Board of Trade, I am writing in support of Pepco’s request to implement a suite of innovative electric vehicle programs. Compelling reasons for pursuing this important initiative include:

• Establishing the District of Columbia as a leader in the rapidly growing electric vehicles market;
• Encouraging electric vehicle ownership by offering various incentives – reduced electric rates, credits and rebates;
• Public support for an electric vehicle network in Washington, D.C. is strong at 77 percent;
• Growing electric vehicle use will create jobs and have a positive economic impact;
• Electric vehicles are a clean technology that will reduce emissions, improve public health and enhance the environment;
• Neighboring states are making significant progress including Maryland with a goal to achieve close to 2.4 million zero emission vehicles on their roads by 2025 as well as efforts underway in Virginia to develop a statewide public electric vehicle charging network.

The District of Columbia currently has limited electric vehicle use. Access to charging stations contributes to customer apprehension about investing in this clean, efficient, and affordable transportation resource. Initiating an electric vehicle program now will allow the market to expand and directly support the District’s long-term sustainability and clean energy plans.

I am confident the merits of this program will persuade you to support its approval. Thank you for your attention.

Sincerely,

Jack McDougle
President and CEO
Greater Washington Board of Trade