House T&I Committee Releases Reauthorization Blueprint [Archive]

PLANSIT

06-18-2009, 09:28 PM

June 18, 2009

House T&I Committee Releases Reauthorization Blueprint; LaHood Proposes 18-Month Extension

Today, the House of Representatives' Transportation and Infrastructure Committee released its blueprint for the Surface Transportation Authorization Act of 2009, reauthorization of the nation's federal surface transportation legislation. The full content of the Blueprint and Executive Summary is attached here. The Surface Transportation Authorization Act of 2009. (PDF) (1.73 MB)

Included among the highlights are:
• A $450 billion program over six years, including a combined a nearly $100 billion authorization for community and public transportation;

• Focusing transit investment in four core categories: achieving a state of good repair; specific funding to restore rail transit systems; access to mobility for transit-dependent individuals; and planning, designing and implementing new transit service;

• Creation of a National Transportation Strategic Plan, including highway, transit and rail services to develop intermodal connectivity;

• A restructured U.S. Department of Transportation, requirements for improved performance standards, and an enhanced project-delivery process to reduce duplication; and

• A new program to support the development and construction of a national high-speed rail network.
The Community Transportation Association of America will develop additional analysis of this proposal and other legislative activities in upcoming editions of Fast Mail and our other publications.

Meanwhile, Transportation Secretary Ray LaHood announced the Obama Administration announced its support for an 18-month extension of the current SAFETEA-LU program in order to stabilize the Highway Trust Fund and avoid raising fuel taxes during the current economic downturn. Secretary LaHood's full statement can be read here: http://www.dot.gov/affairs/2009/dot8209.htm

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Jasonhouse

06-18-2009, 11:40 PM

A much more descriptive article... Note that it is from an industry publisher, so there is an increased focus on freight transport.

Transportation policy: Oberstar unveils new plan for surface transportation authorization

Jeff Berman, Group News Editor
Logistics Management
6/18/2009
http://www.logisticsmgmt.com/article/CA6666251.html?industryid=48467

WASHINGTON—House Transportation and Infrastructure Committee James L. Oberstar formally rolled out his plan for a new approach to surface transportation authorization earlier today.

In his whitepaper, “The Surface Transportation Authorization Act of 2009: A Blueprint for Investment and Reform,” Oberstar outlines myriad ways to remedy the nation’s transportation system, which, he said, “while once the envy of the world, is losing its battle against time, growth, weather, and wear.”

What is needed now, he says, is a National Transportation Strategic Plan that is intermodal in nature and national in scope.

A major theme of Oberstar’s plan calls for a national transportation policy, as opposed to the Department of Transportation’s current policies, which were established and are administered by separate DOT departments—each of which focuses on a single mode transportation.

“Since completion of the Interstate Highway System, our national transportation policy has lacked strategic focus,” notes the plan. “Although States and metropolitan regions are required to develop long-range transportation plans for highway, transit, and rail investment, there has been no attempt to aggregate these plans and establish a National Transportation Strategic Plan.”

Some of the main objectives of the Surface Transportation Authorization Act of 2009 include:

* consolidating the majority of highway funding in four, core formula categories designed to bring our highway and bridge systems to a state of good repair; improve highway safety; develop new and improved capacity; and reduce congestion and greenhouse gas emissions and improve air quality;

* establish new initiatives to address the crippling congestion in major metropolitan regions, and eliminate bottlenecks in freight transportation; and

* create a National Infrastructure Bank to better leverage limited transportation dollars, among others.

“This plan restructures programs within the DOT…and moves from a highly prescriptive program to a performance and outcomes-based surface transportation program,” said Oberstar at a press conference today.

In terms of funding, this plan is calling for $450 million over six years, stating it is the minimum amount needed to stop the decline in the U.S. surface transportation system, make improvements, and restore the country’s mobility and economic productivity. This proposed funding level represents a 38 percent over the current funding level of $326 billion and 57 percent more than the original level granted by SAFETEA-LU.

Ways in which this plan would be financed look to be the biggest obstacle in getting it on track. As LM has previously reported, the Highway Trust Fund (HTF) is on the brink of insolvency, with a $5 billion-to-$7 billion shortfall predicted by the time the current bill expires.

The plan notes that the current user fees supporting the HTF are not enough to maintain existing infrastructure, coupled with the fact that the motor vehicle fuel tax has not been raised since 1993. The Obama administration has repeatedly stated raising the gas tax is not an option at this point.

The current user fees generate only enough revenue to finance a $35.1 billion of investments from this year's $53 billion funding level and without additional revenues, a six-year surface transportation authorization bill could fund only $236 billion in highway, highway safety, and transit investment –$90 billion less than the current investment level over the next six years ($326 billion), according to the plan.

“The major point here is to come up with a way to reach that funding target,” said Payson Peabody, of counsel, at Washington, D.C.-based law firm Dykema Gossett PLLC. “Oberstar recognizes a short-term fix is not necessarily going to solve the short-term problems we have.

Peabody added that in the current fiscal environment, the additional spending proposed by Chairman Oberstar must be paid for. And he explained there are really only two choices: a broad-based tax increase; or tolling and expanded use of public private partnerships.

Direct user fees to pay for new infrastructure will allow leveraging of private capital to help pay for transportation investment, said Peabody, and it will reduce budget costs and make each project accountable to investors as well as to voters.

Freight Focus: In a section of the plan focused on expanded mobility and access for people and goods, the bill calls for improving economic productivity by facilitating international trade and relieving congestion at major trade gateways and corridors. It notes this could be done by having the DOT, in conjunction with the National Infrastructure Bank, providing grants, loans, line guarantees, and other financial tools to States to finance the construction of these projects of national significance.

Another area of the plan dedicated to freight improvement provides state formula grant funding for freight and goods movement projects and for improving States' ability to conduct freight planning. To support Freight Improvement, States will receive formula apportionments funded by contract authority derived from the Trust Fund, according to the plan.

“At this point, we are looking at this bill schematically and saying a lot of the right pieces are there,” said Janet Kavinoky, director of transportation infrastructure at the U.S. Chamber of Commerce. “We are pleased to see freight projects of national and regional significance mentioned. But we need to use caution, because it is not until we see legislative language to understand what the actual focus is of the programs, as well as how the resources are allocated. Right now, it looks promising, and the U.S. Chamber is pleased that a lot of the principles we asked for were included.”

Oberstar said hearings regarding the bill will be held next week in the Ways and Means Committee, with a mark-up scheduled for June 24, and by the end of July he expects it to move to the House floor.