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A Nationally-Recognized Resource in
Infrastructure Financing |
September 28, 2009 |
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The House Steps Up on SAFETEA-LU Extension |
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With SAFETEA-LU’s September 30 expiration date fast approaching, the heat is on Congress to extend federal transportation funding until a multi-year law reauthorizing these programs can be developed. The House passed Rep. Jim Oberstar’s (D-Minn.) three-month extension plan by a 335-85 vote on September 23. The Surface Transportation Extension Act of 2009 (H.R. 3617) maintains the current programs and funding levels through December 31. Unfortunately, the bill does not repeal the impending $8.7 billion rescission that is vital to state transportation projects. Although the Senate has now received the House-version of the bill, the Senate Committee on Environment and Public Works approved a different bill (S. 1498) with an eighteen-month extension of SAFETEA-LU expiring in March of 2011, which would delay the debate over transportation funding until after the 2010 election cycle. However, it remains unclear whether the Senate will reach a vote on its own bill prior to the September 30 deadline.
Importantly, the House has also passed a continuing resolution to keep federal programs from grinding to a halt at the end of the fiscal year, which would also extend funding for the Surface Transportation Program. Following in line with the House-version of the extension plan, the continuing resolution fails to repeal the rescission. If the Senate is unable to vote on an extension plan, it could attempt to repeal the rescission through the continuing resolution. Such a change would require a conference with the House, and very little time remains for the Senate to accomplish this task and sign on to the continuing resolution before the end of the government’s fiscal year on September 30.
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Freight Traffic Concerns Reported in National Journal |
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Christine Vineis is a Senior Advisor to The Coalition for America’s Gateways and Trade Corridors (CAGTA), which was recently featured in Lisa Caruso’s article “The Coming of Freight Fright” in the National Journal. In her article, Caruso observes that the U.S. is “unprepared for an expected explosion in freight activity.” According to the Association of American Railroads, freight rail movement is expected to grow 88 percent by 2035, and the American Trucking Association predicts a 31 percent increase in tonnage hauled by the trucking industry. In light of these figures, the next surface transportation bill is of vital importance to the investment of funds in an infrastructure that can support such dramatic increases. However, previous legislation has lacked any freight-specific funding, and legislators must overcome several obstacles to addressing the intermodal nature of freight shipment.
CAGTA has acknowledged that while cost is the main obstacle, the goods-movement is willing to bring some funding to the bargaining table. Many transportation groups want a separate freight fund. CAGTA recommends the creation of a freight-only fund supported by revenues from all users of the freight system that ultimately uses a merit system for the allocation of project dollars. Another obstacle facing comprehensive freight funding is the historic rivalry between freight rail and trucking. Policy-makers must surmount this rivalry in addition to costs in order to fully address America’s freight needs in the 21st Century.
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