Senate EPW committee releases outline of new transportation bill
Senate and House bills both set sights on a new future for transportation with distinctly different approaches
in the NewsState of Logistics 2016: Pursue mutual benefit UPS Airlines pilots close deal on new contract with Independent Pilots Association B2B Sellers Prefer a Unified Approach for Ecommerce Q2 TIA benchmarking report shows mixed annual results EY and UN Collaborate on Climate Change and Supply Chain Study More News
Following a proposed multi-year transportation reauthorization by the Republican Leadership of the House Transportation and Infrastructure Committee, the Senate’s Committee on Environment and Public Works has unveiled an outline for its take on new legislation.
Entitled Moving Ahead for Progress in the 21st Century (MAP-21), this bipartisan proposal, led by Senator Barbara Boxer (D-CA), EPW Chair, and James Inhofe, R-OK, is for a two-year bill, $109 billion bill that would keep funding at current levels that were intact during the previous six-year, $286 billion SAFETEA-LU, which expired in 2009 and has been kept afloat since then through a series of continuing resolutions.
This 2-year bill would come at a cost of roughly $109 billion, whereas the House bill, led by T&I Committee Chair John Mica, is a six-year, $230 billion bill.
“We have worked together to develop MAP-21, which is a bipartisan proposal that modernizes and reforms our current transportation systems to help create jobs, jumpstart our economy, and build the foundation for long-term prosperity,” said Boxer in a statement. “This bill is an investment in America’s future, because the nation’s aging infrastructure has not kept up with needed improvements, and now our transportation systems are falling behind other countries. We will continue to work to move the transportation bill through the EPW Committee and the full Senate.”
The EPW bill is comprised of various freight- and supply chain-related components, including:
-a National Freight Program that provides formula funds to states for projects to improve the movement of freight on highways, including freight intermodal connectors;
-a National Highway Performance Program that consolidates the Interstate Maintenance program, the National Highway System program and part of the Highway Bridge Program into a single program that focuses on the most critical 22,000 miles of roads in the country; and
-leveraging Transportation Infrastructure Finance and Innovation Act (TIFIA) program to help communities leverage transportation resources through federal credit assistance and increase annual funding from $122 billion to $1 billion. TIFIA provides Federal credit assistance in the form of direct loans, loan guarantees, and standby lines of credit to finance surface transportation projects of national and regional significance.
This bill was positively received by Mort Downey, Coalitions for America’s Gateways and Trade Corridors (CAGTC) Chairman former deputy Transportation Secretary under President Clinton Mort Downey.
“The release of a framework for a Senate surface transportation bill is good news in a number of respects,” said Downey. “It represents solid bi-partisan agreement—a rare commodity in today’s Washington politics. At a time of constrained resources, it sets a goal of retaining current investment levels. And, from the point of view of CAGTC, it answers the call for dedicated investment into our freight network. Lots of steps lie ahead—working out the resource issues with the Senate Finance Committee, incorporating input from other Senate groups including the Senate Commerce Committee, and getting to consensus with the House of Representatives against a firm deadline of September 30 when the existing taxes and programs expire.”
While Mica’s bill is calling for fewer dollars over a longer period, it also is calling for funding for the highway, transit, and highway safety programs at levels consistent with the amount of revenue being deposited into the Highway Trust Fund (HTF), whose revenues are derived from the federal gasoline tax—which has not increased since 1993.
The House and T&I Committee made its case clear for this approach, explaining that in 2010 the HTF brought in $135 billion in revenue, while more than $50 billion in spending was authorized from the HTF. And in the last three years, Congress has transferred about $35 billion from the U.S. General Fund into the HTF in order to keep the HTF solvent, with the HTF expected to run out of funding by 2013.
This bill also has its own freight- and supply chain-related components, including:
- providing additional funding for TIFIA;
-encouraging states to create and capitalize State Infrastructure Banks to provide loans for transportation projects at the state level;
-creating a faster and more predictable application process for Rail Rehabilitation and Improvement Financing loans;
-trying Harbor Maintenance Trust Fund expenditures to revenues, ensuring fees paid by shippers go to channel maintenance; and
-encouraging short-sea shipping by prohibiting double-taxing of vessels shipping goods between domestic ports, among others.
“Both of these bills represent a significant move to something more realistic that could win approval, but the goals have also shifted,” said Payson Peabody, of counsel, at Washington, D.C.-based law firm Dykema Gossett PLLC. “The Mica bill goes the furthest in terms of relying on HTF revenue for programs, and the Boxer bill is set on maintaining existing spending on top of needing an additional $12 billion to close the funding gap [to ensure funding is at $109 billion]. Finding another $12 billion is more realistic than a $500-plus billion bill which has been proposed by President Obama and former T&I Chair James Oberstar.”
Peabody added that this would not require a significant increase in the gasoline tax, adding that it is not realistic to expect the House to sign off on any gas tax increase. What’s more vehicle miles traveled have flattened out and it has resulted in a wider gap between economic projections and actual revenue, which had led to the tax no longer being a stable source of revenue for transportation programs, he said.
About the AuthorJeff Berman, Group News Editor Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman
Subscribe to Logistics Management Magazine!Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!
Megatrends in ocean freight Ocean Cargo Roundtable: What’s in store for 2017? View More From this Issue