Surface Transportation Reauthorization 

Since September 2009, the bill has been extended several times. The latest extension expires in March 2012.  While some in Congress have discussed the possibility of producing transportation legislation in 2012, it is unlikely that such legislation will be comprehensive and long term, nor will it include a new approach to freight policy. 

Earlier this year, the Obama Administration included their version of surface transportation reauthorization principles in the fiscal year 2012 budget proposal, but did not include a funding guideline. Shortly thereafter, the Administration floated (and then quickly distanced themselves from) a controversial new surface transportation draft bill which most notably included a six year pilot for vehicle-miles-traveled (VMT) tax.  The draft proposal was not received well by many on the Hill, especially when considering our nation’s current economic state.

Most recently in November, the Senate Environment and Public Works (EPW) Committee approved a bipartisan two-year highway reauthorization bill by a unanimous vote of 18-0.  The legislation --- entitled Moving Ahead for Progress in the 21st Century or better known as “MAP21” --- is comprised of various freight components, including some of the following initiatives: a National Freight Network Program that provides formula funds to states for projects to improve the movement of freight on highways, including freight intermodal connectors;  a Transportation Mobility Program that replaces the current Surface Transportation Program but retains the same structure, goals, and flexibility to allow states and metropolitan areas to invest in projects fitting their needs and priorities; and the Projects of National and Regional Significance Program, which authorizes a program to fund major projects of national and regional significance which meet rigorous criteria and eligibility requirements, and authorizes $1 billion for appropriation in Fiscal Year 2013.  The legislation still seeks the Finance Committee’s approval on a funding scheme to pay for the $109 billion proposal.

With regards to developments in the House, House Speaker John Boehner (R-OH) and House Transportation and Infrastructure Committee Chairman John Mica (R-FL) said they will introduce a measure in coming weeks that will compete with the two-year plan passed by the Senate EPW Committee.  Labeled the American Energy Infrastructure Jobs Act, the legislation will focus on a five-six year plan and its main purpose will be to spur job creation.  As such, the House Natural Resources Committee recently disclosed its contentious proposal to open portions of the Alaska National Wildlife Refuge to oil and gas drilling and use the revenue to help fund surface transportation investment, which will be tied in with Speaker Boehner’s overall jobs plan. Developments are still forthcoming as the House and Senate continue to deliberate on their proposals. 

With the House and Senate considering different financing mechanisms, expect extensions to continue as it is likely that there will not be enough fervor to pass the bill without the administration’s support of a central focus, such as a gas tax increase.  This has already become a longer and lengthier process than what took place in 2005 with SAFETEA-LU (2 years and 12 extensions).  With the 2012 elections beginning to come into view, it is very likely that the administration and Congressional leadership will not have an appetite to pass the bill in the 112th session of Congress. 

Two additional pieces of legislation that deserve to be noted are of the Focusing Resources, Economic Investment, and Guidance to Help Transportation (FREIGHT) Act of 2011 introduced by Commerce Subcommittee Chairman Lautenberg (D-NJ) and Senators Patty Murray (D-WA) and Maria Cantwell’s (D-WA) reintroduction and the Freight is the Future Of Commerce in the United States Act of 2011 (Freight FOCUS Act) (H.R. 6291) introduced by Congresswoman Laura Richardson’s (D-CA). The FREIGHT Act was designed to establish a national freight transportation strategy and to dedicate funds to freight transportation projects, while adding notable sustainability goals.  Richardson’s Freight FOCUS Act, which was endorsed by RILA, arranges for public and private sector involvement in the process, prioritizes key freight corridors, and provides funding to mitigate the effects of goods movement on the environment and public health by increasing the diesel tax.  Even though this legislation has been reintroduced, it must be noted that it will not move as a stand-alone bill.