TDA Fly-in participants landed in DC just as federal transportation issues were taking off. On the House side, another continuing resolution was passed setting the stage for a conference committee on the surface transportation reauthorization bill and the Senate Appropriations Committee was working on transportation appropriations for fiscal year 2013.

Surface Transportation Reauthorization
On the first day of the Fly-in, April 18th, the House of Representatives passed H.R. 4348, a short-term extension of surface transportation programs through September 30th (with a few other items, such as the Keystone XL pipeline, added in) that is basically a shell designed to facilitate a House-Senate conference committee on a larger surface transportation bill.

During the debate on H.R. 4348, the following three amendments were approved:

• An amendment from Rep. Reid Ribble (R-WI) that essentially adds the transportation project environmental review and approval process reforms from the five-year reauthorization bill that passed the House Transportation & Infrastructure Committee earlier this year (passed 255 to 165);
• An amendment from Rep. David McKinley (R-WV) allowing states to regulate coal fly ash (possibly for use in construction aggregates) as opposed to having the Environmental Protection Agency regulate it as hazardous waste (passed by voice vote); and
• An amendment from Rep. Charles Boustany (R-LA) declaring annual spending on port and waterway improvements would equal that year’s Harbor Maintenance Trust Fund receipts (passed by voice vote).

The House and Senate conferees have been named and the first meeting was held this week. TDA, along with many of the organizations that participated in the TDA Fly-in, sent a letter to the Wisconsin delegation reiterating many of the reauthorization positions included in the Fly-in issue papers.

Senate Majority Leader Harry Reid (D-NV) appointed 14 senators, including eight Democrats and six Republicans. House Speaker John Boehner (R-OH) appointed 33 representatives – 20 Republicans, including Representative Reid Ribble from Wisconsin's 8th Congressional District, and 13 Democrats. See lists below:

Senate Conferees
Democrats: Boxer (CA), Baucus (MT), Rockefeller (WV), Durbin (IL), Johnson (SD), Schumer (NY), Nelson (FL) Menendez (NJ)

Republicans: Inhofe (OK), Vitter (LA), Hatch (UT), Shelby (AL), Hutchinson (TX), Hoeven (ND)

House Conferees
For all but certain Ways & Means (W&M) provisions –
Republicans: Mica (FL), Young (AK), Duncan (TN), Shuster (PA), Capito (WV), Crawford (AR), Beutler (WA), Bucshon (IN), Hanna (NY), Southerland (FL), Lankford (OK), Ribble (WI)

Democrats: Rahall (WV), Costello (IL), DeFazio (OR), Norton (DC), Nadler (NY), Brown (FL), Cummings (MD), Boswell (IA), Bishop (NY)

Members for W&M provisions: Camp (R-MI), Tiberi (R-OH), Blumenauer (D-OR)

Additional members for Energy and Commerce provisions: Upton (R-MI), Whitfield (R-KY), Waxman (D-CA)

Additional members for Natural Resources provisions (oil drilling, Keystone): Hastings (R-WA), Bishop (R-UT), Markey (D-MA)

Additional members for Science, Space and Technology provisions: Hall (R-TX), Cravaack (R-MN), E.B. Johnson (D-TX)

Appropriations
The full Senate Appropriations Committee on April 19th approved transportation spending levels for fiscal year 2013. The bill (S. 2322) provides $52.10 billion in obligation authority on contract authority from transportation trust funds and $18.24 billion in discretionary funding. These amounts are roughly equal to 2012 levels.

The committee doesn’t presuppose what, if any, legislation will be enacted through the authorization process and assumes that the underlying surface transportation program structure will be the same in FY 2013 as it was under SAFETEA-LU.

A summary of major U.S. Department of Transportation appropriation accounts is below.



 
A provision of particular interest to Wisconsin is the addition of an amendment by Senators Kohl and Johnson granting an exemption from federal truck size and weight restrictions for portions of U.S. 41 in Wisconsin. The bill also includes a requirement that DOT produce a comprehensive truck size and weight study, the first since 2000.

The House Appropriations Committee allocations for the 12 subcommittees, in keeping with the House budget, are in the aggregate lower than the total amount divvied up in the Senate and lower than the annual discretionary limits agreed to last August with the enactment of the Budget Control Act.

The House allocation for Transportation - Housing and Urban Development is $51.6 billion in net new discretionary budget authority. This is $3.9 billion below FY 2012 enacted levels and $1.8 billion below the Senate FY 2013 allocation.

“The levels provided for each of the 12 Appropriations bills will continue to demonstrate how seriously this House takes its charge to rein in extraneous and unnecessary spending, encourage economic competitiveness and job growth, help strengthen the nation’s infrastructure and ensure a strong national security for the protection of all Americans, “ House Appropriations Chairman Hal Rogers (R-KY) said.

The White House issued a veto threat over the lower House funding levels.

Craig Thompson, TDA Executive Director

Since my last update, the commission has met three times.  The meetings were held in Madison, Milwaukee and Appleton.  The Milwaukee and Appleton meetings both had public hearings following the meetings.  Prior to the public hearings, local elected officials were invited to provide testimony.  Among those providing input were Milwaukee Mayor Tom Barrett, Milwaukee County Executive Chris Abele, Milwaukee Public Works Director Frank Busalacchi, Appleton Mayor Tim Hannah, Fond du Lac County Executive Alan Buechel and Winnebago County Executive Mark Harris. 

The commission continues to seek out ideas and information from around the state and across the country. National experts provided information on innovative financing approaches other states are employing to meet their transportation needs.  WisDOT presented a ten year needs analysis across all modes as well as four scenarios for funding those needs.   Freight initiatives that are being undertaken in Wisconsin and the region were also discussed.

To see the full list of invited speakers and their testimony and other presentations, click here and choose a meeting date.

Members of the commission began prioritizing the scope of what should be included for consideration in the final report.  This action by the commission is in the very early stages, and there will be much more discussion regarding priorities at the upcoming meetings.

The next meeting is in Eau Claire on May 31st.  This meeting will also be followed by the fourth and final public hearing.  During the daytime meeting, commissioners are going to discuss local road and bridge aids, state highway maintenance and transit.

If you have any questions or input you would like to provide regarding the activities of the commission please do not hesitate to contact me. 

Proposed fuel economy standards could result in a significant drop in gas tax revenue that funds federal transportation programs, says the Congressional Budget Office (CBO).

New CAFE standards (or corporate average fuel economy standards), proposed by the National Highway Traffic Safety Administration and the Environmental Protection Agency in 2011, would tighten fuel economy standards for light-duty vehicles – including cars, sport utility vehicles, pickup trucks, minivans and crossover utility vehicles – manufactured from 2017 to 2025.

By 2025, the proposed standards are expected to raise the average fuel economy of the new vehicle fleet from 34.1 mpg – the average anticipated for 2016 and beyond under current standards – to 49.6 mpg. The proposed rule also would require gradual reductions in greenhouse gas emissions from light-duty vehicles, which would be accomplished primarily through reduced fuel consumption.

In the report, How Would Proposed Fuel Economy Standards Affect the Highway Trust Fund?, the CBO estimates that the proposed CAFE standards would gradually lower gasoline tax revenues, eventually causing them to fall 21% by 2040.

As an illustration of the eventual effect of the standards, the CBO examined how such a decrease would alter the current projections for the trust fund, covering the period from 2012 to 2022. The result would be a $57 billion drop in revenues credited to the Highway Trust Fund over the 11 years. The full 21% reduction in gas tax revenues, however, would not occur for about 30 years.

It is important to note that the trust fund has not taken in enough money to cover outlays for much of the past decade. In recent years, the trust fund shortfall has been covered with transfers from the general fund. The CBO’s most recent baseline projections, which assume continuing 2012 tax and spending policies through 2022, indicate receipts credited to the fund will be $147 billion less than the outlays over the period. Of the total shortfall, $93 billion will be related to highway outlays with the remaining $54 billion due to mass transit.

The CBO goes on to point out the options that lawmakers could consider in order to avoid adding to a shortfall in the Highway Trust Fund, including: spending reductions, transfers from the general fund and increases in the gas tax or in other revenue sources dedicated to the trust fund.

An increase of about 5 cents per gallon in the federal gas tax would be necessary to make up for the additional shortfall in revenue projected as a result of the proposed CAFE standards. The federal gas tax was last increased in 1993. 

On Sunday, April 29th, an “innovation” in regional public transit 12 years in the making headed out of Janesville on its first run.  The Janesville-Milton-Whitewater Innovation Express is sponsored by Generac Power Systems, Inc. and the City of Whitewater and operated by the Janesville Transit Systems (JTS).  The goal of the program is to connect Rock County residents with job opportunities at Generac and other employers in the Whitewater University Technology Park.

The Innovation Express will provide three round-trips each week day as well as Sunday evening trips.  The bus will pick up and drop off passengers at marked bus stops along a route in Janesville, as well as designated locations in Milton and Whitewater.

While the service is a direct outgrowth of the success of Generac Power Systems, a major regional employer, and is intended to help it attract workers to achieve its production goals, the service is open to all, including employees of other businesses along the route and UW-Whitewater students.

"We're just thrilled that after a lot of work in the background over time that Generac and the City of Whitewater have stepped forward and agreed to fund the sponsor share of the service so we actually get to try this," said Janesville Transit Director Dave Mumma. "We hope that people show interest in the service by riding the bus. If we see signs of success, we can build additional support. We would ultimately like to add more runs." 

The New York Times: May 7, 2012 – “Freight train late? Blame Chicago”

The Economist: April 28, 2012 – “The transport bill: Just the ten extensions – How not to fund infrastructure”

TOLLROADSnews: April 23, 2012 – “‘No more large projects are possible without tolls’ – VA sec transport Sean Connaughton”

The Sacramento Bee: April 17, 2012 – “Tolls may be answer to fix interstate”

Transportation Issues Daily: April 16, 2012 – “The fantasy solution of an infrastructure bank”

National Journal Transportation Experts Blog: April 16, 2012 – “The driving tax”

Selling Transportation – All the experts agree. The U.S. needs to invest more in its roads, bridges, transit …the entire U.S. transportation system. But how do we sell the public on the need for these investments? The report, Are we there yet? Selling America on Transportation, is based on the Miller Center’s David R. Goode National Transportation Policy Conference held last fall, and co-chaired by former U.S. Transportation Secretaries Samuel Skinner and Norman Mineta. More than 60 transportation experts – including five former U.S. transportation secretaries – participated in the conference, which focused on how to highlight the nation’s transportation challenges in a compelling way.

The report draws on what was discussed at the conference and outlines the following four key elements:

• A positive, forward-looking tone that frames the transportation debate around issues of economic growth, jobs, U.S. competitiveness, combined with quality of life.
• A well-defined but flexible campaign plan that is keyed to the rhythms of an election year and to important events in the transportation calendar.
• A focus on building broader engagement through effective, targeted use of traditional media and social media.
• A concerted effort to link local transportation investment opportunities and benefits to national-level policy decisions.

“There is a lack of confidence and trust in the ability of policymakers to make good decisions in transportation policy and planning. And without a mandate from a broader public, most policymakers don’t want to risk reforming the current system in a political landscape fraught with many other challenges and competing demands,” said Mineta and Skinner.

European High-Speed Rail – A new chapter in Europe’s rail travel commenced when the first privately owned high-speed rail service began operations in Italy. The new company, called NTV, or Nuovo Trasporto Viaggiatori, seeks to compete against state-run service with an emphasis on style and luxury. NTV offers service between Rome and eight other Italian cities and will eventually have 25 trains – a new type of locomotive – free rolling stock that has an engine under each car to increase capacity.

The company’s president is Luca Cordero di Montezemolo, the chairman of Ferrari.

This is seen as a test case for Europe. Since 2004, European legislation has liberalized international and domestic rail travel for freight and passengers, but there is still no requirement in European Union law that domestic service be opened to market competition, like Italy did.

"We have brought an end to one of the longest monopolies in the history of our country. Finally, Italian travelers and tourists can choose," said Cordero di Montezemolo.

The Opportunities in Change

Change is both being driven from within the transportation industry as well as thrust upon it. As we find ourselves in the midst of such dramatic change, sometimes we need to pause and take stock of the changes that have occurred, are occurring and are likely to occur in the near future.

The 2012 TDA Drive-in seeks to do just that.

Don't miss this opportunity to join your colleagues in Madison and participate in an interactive session on ways to bring about positive change for Wisconsin.

This event is open to online registration. Or click here for a registration form. Please register by May 18th.

TDA Events

• TDA Annual Meeting: Thursday, November 1st

Other Great Events in the Next Couple Months

• May 14-18 – National/Wisconsin Bike to Work Week
• Tuesday, May 22 – DOT East-West Golf Outing