With the current surface transportation reauthorization legislation expiring on September 30, 2009, Congress has begun to consider a new six-year reauthorization. Part of that consideration process entails a discussion on what role a national freight policy might play in transportation over the next several years. RILA members are committed to working with federal, state and local governments to help shape this discussion and influence the legislation.
In May 2009, Senate Commerce Committee Chairman Jay Rockefeller (D-WV) and Subcommittee Chairman Frank Lautenberg (D-NJ) introduced legislation to persuade the policy discussions aimed at creating a 21st century approach to our transportation system. The legislation, entitled the Federal Surface Transportation Policy and Planning Act of 2009, seeks to reduce 10 percent of freight transport by trucks by 2020 and plans to offer incentives to increase non-truck transport of goods. The measure also targets reducing per-capita motor vehicle miles traveled on an annual basis, reducing motor vehicle-related fatalities 50 percent by 2030 and reducing surface transportation-generated carbon dioxide levels 40 percent by 2030.
While it appears that their goal was to influence the product put forward by the House Transportation and Infrastructure Committee, it is also important to note that there has been a long-standing jurisdictional battle between the Senate Environment and Public Works (EPW) Committee and the Senate Commerce Committee. Currently, the Senate Commerce Committee has jurisdiction over the safety issues within the reauthorization bill, whileEPW is the bill’s main author. If a national freight policy were to be included in the new reauthorization legislation, the Commerce Committee would then oversee its creation and which would expand its authority over the bill. With the EPW Committee currently focused on climate change legislation, it appears that with the introduction of the Rockefeller/Lautenberg legislation, the Commerce Committee has sent a clear message that it intends to do more than focus on the safety issues in the next reauthorization.
In June 2009, House Transportation and Infrastructure (T&I) Committee Chairman James Oberstar (D-MN) unveiled the first draft of a new transportation spending bill and marked up the bill in a subcommittee hearing. Oberstar has estimated the cost of reauthorizing the six-year plan to be roughly $450 billion. The 775-page Surface Transportation Authorization Act proposes a restructuring of the Department of Transportation, consolidates sources of funding and creates a national transportation strategic plan. Other listed priorities include congestion reduction, safety and improved intermodal planning. Currently, his legislation refrains from including any funding mechanisms.
The week before Chairman Oberstar unveiled his legislation, Secretary of Transportation Ray LaHood indicated that the Obama administration preferred an 18-month extension of current law with only a few changes. Sen. Barbara Boxer (D-CA), who chairs the Senate Environment and Public Works Committee, quickly followed suit stating that she also favors an 18-month extension. The reasoning for this approach is largely based on the need to focus on shoring up the Highway Trust Fund, the heavy legislative schedule facing both chambers of Congress, and the fiscal concerns of how to pay for the next bill. Even though the Obama Administration and the Senate have been advocating for an 18-month extension, House T&I Chairman Oberstar has campaigned strongly for quick passage of the full bill. With discussions looming throughout most of the year, the expiration date of SAFETEA-LU has come and passed with no end in sight on the timing of the next reauthorization. Since September, the bill has been surviving on 2009 funding levels through a series of continuing resolutions; the most recent one expires on December 18th.
Much is still up for debate on the surface transportation reauthorization bill. Congressional talks have currently focused on moving a “creating jobs” bill in the next couple of months, bearing in mind unemployment has moved above the ten percent mark. Some of these discussions have highlighted adding funding for infrastructure projects or possibly passing the surface transportation reauthorization and frontloading it. If either of these situations take place, it is likely the current policy structure of the bill will stand as it is and the potential for including additional measures focused on freight movement will be deminished. If not, and an extension continues to carry the reauthorization through next spring, then the bill will most assuredly be punted and the true debate will occur in the 112th Congress, conveniently following the midterm elections.
RILA is continuing to monitor the developments on the legislation. RILA will also engage Congress and the Department of Transportation to focus on effectively implementing new transportation policies that specifically address goods movement. RILA will continue to work with key partners to educate Congress on why a federal freight program is needed and, more specifically, why it is important for it to be funded in the next surface transportation reauthorization.
Congress is expected to reauthorize legislation for surface transportation (highways, transit, etc.) projects sometime in the near future. The Transportation Equity Act for the 21st Century was reauthorized in August 2005 as the Safe, Accountable, Flexible, Efficient Transportation Equity Act – A Legacy for Users (SAFETEA-LU) and expired on September 30, 2009. The two issues that will affect RILA members most directly are the sources of funding for the legislation and the possible inclusion of a national freight policy.
The Highway Trust Fund (HTF) is the primary source of funding for the programs in the bill. The HTF is composed of the Highway Account, which funds highway and intermodal programs, and the Transit Account. Federal motor fuel taxes have been the major source of income into the HTF. Under current law, the funds are released to the states by a mathematical formula that attempts to match the scope and usage of each state's surface transportation system with payments received from the federal government.
The HTF fund is unsustainably and expected to go into deficit in the near future. In 2008, Congress infused $8 billion to keep the fund from reaching a zero balance this year and infused another $7 billion in July 2009. Many discussions are taking place on how to fund the HTF as Congress is reluctant to raise the federal fuel tax on motorists and truckers, as many argue the viability and sustainability of the gas tax, so Congress is focusing on finding alternative funding methods. In addition, Congress would like to significantly increase the funding for the next reauthorization bill. The 2005 reauthorization allocated $286 billion toward the Act’s programs --- that amount is expected to double in the next reauthorization.
The consideration of the last reauthorization (SAFETEA-LU) included much debate over how to construct a national freight policy. With congestion issues increasing and a new majority in place to craft the legislation, the new reauthorization will likely include a freight congestion/goods movement program.
For more information, please contact Kelly Kolb, vice president of global supply chain policy, at kelly.kolb@rila.org.