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Senate EPW committee to mark up transportation legislation on November 9

By Jeff Berman, Group News Editor
October 24, 2011

On November 9, the Senate Environment and Public Works Committee, chaired by Senator Barbara Boxer (D-CA), will hold a hearing on a surface transportation bill introduced by EPW earlier this year.

The two-year, $109 billion bill is entitled Moving Ahead for Progress in the 21st Century (MAP-21), which EPW officials have described as a “bipartisan effort that holds spending at current levels plus inflation, greatly increases leveraging of federal dollars, and modernizes and reforms the nation’s transportation systems to help create jobs and build the foundation for long-term prosperity.”

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.

The original version of this bill called for $339 billion over a six-year period, which would have represented the current funding level of the six-year $286 billion SAFETEA-LU authorization, which expired in September 2009 and has since been kept afloat by a series of continuing resolutions.

With a six-year bill, though, EPW recognized there would have been an annual shortfall of $12 billion from current Highway Trust Fund revenues, which are largely supported by the federal gasoline tax, according to the American Association of State and Highway Transportation Officials (AASHTO). And how to fund a six-year bill, given the fiscal realities of the political landscape also likely quelled the push for a longer bill.

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, in a July interview with LM.

“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.”

Earlier this year, the House Transportation and Infrastructure Committee, led by Rep. John Mica (R-FL), rolled out its own six-year, $230 billion bill.

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.”

About the Author

Jeff Berman headshot
Jeff 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. .(JavaScript must be enabled to view this email address).


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