|
At a press conference on January 15, the National Transportation Policy and Revenue Commission released its report "Transportation for Tomorrow", which is a blue print for addressing our nation's transportation infrastructure needs in the future. The Commission was established in the SAFETEA-LU legislation and had members selected by Congress and the President. Transportation Secretary Mary Peters chaired the panel and Jack Schenendorf, former Chief of Staff for the House Transportation and Infrastructure Committee, served as vice chair. Many of AGC's recommendations for the future of the transportation program, that were made in testimony to the commission and in other submittals, were included in the report.
Hearings on the report will be held January 17 in the House Transportation and Infrastructure Committee and the week after in the Senate Environment and Public Works Committee. SAFETEA-LU must be reauthorized before the end of Fiscal year 2009. Release of this report is viewed as the first step in the reauthorization and begins the debate about the future of federal surface transportation programs.
Summary:
The report recommends: investment of $225-$240 billion per year for 50 years to meet identified needs, maintaining a strong federal role in transportation, maintaining traditional 40 percent share of investment from Federal level, consolidating existing programs into 10 National focus areas, raising the Federal gas tax 25-40 cents to meet identified needs, indexing the motor fuels tax, moving to a distance based tax system in the future, establishing ticket fees for transit and passenger rail, creating freight rail fees, changing the name of the Highway Trust Fund to Surface Transportation Trust Fund (STTF),expanding projects eligible to be funded out of the STTF to include freight and passenger rail projects, creating an independent National Surface Transportation Commission to develop a transportation strategic plan and recommend future revenue adjustments to implement the plan, reforming the approval system to speed delivery of transportation projects, allowing greater use of tolling and congestion pricing and encouraging more private investment.
Dissenting Opinion:
While an overwhelming majority (9-3) of the Commissioners fully supports the report's recommendations, there was considerable opposition from Transportation Secretary Peters and two other commissioners to some of the recommendations. Those commissioners included a dissenting opinion in the report. The dissent strongly disagrees with the extent of the investment necessary to meet future needs and challenges the premise that the Federal government should fund 40 percent of the program. The dissent strongly favors a more significant state role in meeting transportation needs with a diminished Federal role. The dissenters also favor more emphasis on congestion pricing, tolling, and private investment to meet needs and do not believe that an increase in the federal gas tax is achievable or desirable.
Report Details:
The Commission, as directed by Congress, took a look at highway, transit, freight and passenger rail concerns and recommends that there remain a strong federal role in transportation planning and financing. The report, however, recommends that structural changes be made in the way the programs operate.
A key recommendation is to consolidate the existing 63 categorical highway and transit programs into 10 new parallel functional units as follows: Rebuilding America (Asset Management), Freight Transportation, Congestion Relief, Safety, Smaller Cities and Rural Area Connectivity, Intercity Passenger Rail, Environmental Stewardship, Energy Security, Access to Federal Lands, Research.
The report estimates that the Nation will need to invest between $225 to $240 billion each year, for the next fifty years to upgrade our existing transportation network and build facilities to remain globally competitive. The traditional 40 percent federal share should be maintained according to the report.
To meet these needs, the Commission recommends that the federal fuel tax be raised 25-40 cents per gallon in 5-8 cents per gallon increments over the next five years. Thereafter, the Commission recommends that the gas tax be indexed to the construction cost index and ultimately be transitioned to a distance tax based on number of miles traveled.
Overseeing U.S. DOT's development of a national strategic plan for transportation would be the National Surface Transportation Commission (NASTRAC), which would also play the important role of recommending to Congress appropriate revenue adjustments to implement the plan. The Commission defines NASTRAC's purpose to "de-politicize how we make federal transportation investment decisions, as well as how we choose to pay for them." The creation of a body like NASTRAC was a specific recommendation of AGC. NASTRAC's revenue recommendations would be sent directly to Congress and would become law unless a recorded vote of two-thirds of both houses within 60 days of receipt chooses to veto them.
The Commission also recommends changing the name of the Highway Trust Fund to the Surface Transportation Trust Fund (STTF), and recommends abolishing the specific Highway and Mass Transit subaccounts but, at the same time, suggests the creation of new subaccounts for freight and passenger rail.
The Commission also recommends other user fee adjustments, including the levy of a new federal ticket tax on public transit and passenger rail trips to supplement other revenues. The Commission also puts forth AGC's recommendation to dedicate a portion of Customs duties to help pay for freight-related improvements, as well as to set-aside an appropriate portion of any revenue generated by a tax on carbon or a "cap and trade" system to reduce greenhouse gas emissions for transportation activities. In addition, the Commission also calls on state and local governments to raise additional revenues within their own jurisdictions to meet future needs and recommends safeguards to assure that states and local agencies do not reduce their level of financial support when federal support is increased.
Finally, the Commission recommends that Congress remove barriers to allow state and local governments the ability to toll and/or implement congestion pricing on new or existing capacity on the Interstate system. The Commission also recommends that Congress encourage the use of public-private partnerships, including concessions, for highways and other surface modes. In both these areas, however, the Commission recommends that Congress should put in place an approval process with strict criteria to protect the public interest.
 
|
