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President Obama releases robust final budget; summary included

Today, the White House released President Obama’s fiscal year 2017 (FY17) budget proposal, the final of his presidency. This budget adheres to the $1.07 trillion spending cap that resulted from the bipartisan two-year budget deal agreed to last November. The President’s budget proposal either falls in line with or exceeds FAST Act funding levels, increases transit and rail funding, and funds TIGER (the FAST Act does not authorize the program), among other programs. The budget also calls for the creation of a 21st Century Regions program, a clean communities competitive grant program and funds the President’s 21st Century Clean Transportation Plan.

Speaker Ryan (R-WI) has asked congressman to maintain the funding levels agreed to last November, though there are signals that some may seek additional cuts.

Read a more detailed analysis here.

The 1 thing you need to know about President Obama’s clean transportation plan

On February 4, the White House released President Obama’s 21st Century Clean Transportation System plan to be included in his FY2017 budget proposal expected out on February 9. The President asserts that his budget proposal will strengthen the nation’s transportation fund through one-time revenues from business tax reform and a $10 per barrel fee on oil, and make large investments in transit and improve funding for local and regional governments.

“This is a new vision. We’re realistic about near-term prospects in Congress, but we think this can change the debate,” one senior administration official said.

The announcement comes two months after the passage of the 5 year surface transportation bill known as the FAST Act. However, Congressional leaders have not expressed willingness to consider the proposal.

House Majority Whip Steve Scalise (R-LA) made this point clear. “President Obama’s proposed $10 per barrel tax on oil is dead on arrival in the House.”

What the plan proposes

The plan includes a wide range of innovative solutions. It would refocus federal investments to reduce congestion, reform the existing transportation formula programs, and invest in competitive programs, including the popular Transportation Investment Generating Economic Recovery (TIGER) program. It would also increase investments in mass transit funding by $20 billion annually, provide $2 billion for an autonomous and low-emission vehicle pilot, and add $10 billion per year to reform local and regional transportation programs. The latter would include new discretionary grant programs for regions that lower emissions and better link land use decisions with transportation investments.

To pay for these investments, revenues from a $10 per barrel fee paid by oil companies would be phased in over 5 years. During the development of the FAST Act, Congress was unwilling to even hold a floor vote on increasing transportation user-fees, which hasn’t been raised in over 23 years.

Day 1 Wrap Up: Congressional Conference Committee Action

This morning the conference committee for the surface transportation authorization bill met for the first time. The first order of business was appointing Representative Bill Shuster (R-PA) – chair of the House Transportation & Infrastructure Committee – as the conference chair and Senator Jim Inhofe (R-OK) – chair of the Senate Environment & Public Works Committee -as the vice-chair.

Possibly the most revealing item covered during this first official meeting was an early statement from Chairman Shuster (R-PA) that the conference plans to work diligently through the Thanksgiving recess that starts this Thursday, November 19th, to meet a self-imposed deadline of Monday, November 30. The proposed timeline will allow the House and Senate to vote on final passage for the conference agreement before MAP-21 expires on Friday, December 4th (MAP-21 expires this Friday, November 20th, but the House has already passed a bill to extend the authorization to December 4 and the Senate is expected to follow suit today or tomorrow).

There are still a few sticking points that need to be resolved and came up today during each conferee’s opportunity to speak today. Many hold differing positions on the low funding levels for this authorization as well as the non-transportation generated revenue used to pay for the bill. Those in the Northeast took issue with a House provision to remove transit funding dedicated to high-growth states in the northeast and place it in a national competitive bus and bus facilities program. And others, while not objecting to including passenger rail authorization in the surface authorization for the first time ever as expected by this bill, wanted to include greater reform at Amtrak.
We do not expect any further public meetings until the Members of Congress return on November 30, at which time the conference is expected to have finalized this bill. This means that much of the work on the conference report will happen out of view and behind closed doors. If interested, we advise that you contact your member over the Thanksgiving recess and visit them in person if you can about items of importance for you and your community.
Senate Conference Members
Environment & Public Works Committee
Republicans
Jim Inhofe (R-OK)
John Barrasso (R-WY)
Deb Fischer (R-NE) – also a Commerce Committee member
Democrats
Barbara Boxer (D-CA)
Commerce Committee
Republicans
John Thune (R-SD) – also a Finance Committee member
Democrats
Bill Nelson (D-FL) – also a Finance Committee member
Banking Committee
Democrats
Sherrod Brown (D-OH) – also a Finance Committee member
Finance Committee
Republicans
Orrin Hatch (R-UT)
John Cornyn (R-TX)
Democrats
Ron Wyden (D-OR)
Chuck Schumer (D-NY)
Other Conferees
Republicans
Sen. Lisa Murkowski (R-AK)
Democrats
Dick Durbin (D-IL) – Democratic Whip
House Conference Members 
Transportation & Infrastructure Committee
Republicans
Bill Shuster (R-PA)
Reps. John J. Duncan, Jr. (R-TN)
Sam Graves (R-MO)
Candice Miller (R-MI)
Rick Crawford (R-AR)
Lou Barletta (R-PA)
Blake Farenthold (R-TX)
Bob Gibbs (R-OH)
Jeff Denham (R-CA)
Reid Ribble (R-WI)
Scott Perry (R-PA)
Rob Woodall (R-GA)
John Katko (R-NY)
Brian Babin (R-TX)
Cresent Hardy (R-NV)
Garret Graves (R-LA)
John Mica (R-FL)
Barbara Comstock (R-VA)
 
Democrats 
Peter DeFazio (D-OR)
Eleanor Holmes Norton (D-DC)
Jerrold Nadler (D-NY)
Corrine Brown (D-FL)
Eddie Bernice Johnson (D-TX)
Elijah Cummings (D-MD)
Rick Larsen (D-WA)
Michael Capuano (D-MA)
Grace Napolitano (D-CA)
Daniel Lipinski (D-IL)
Steve Cohen (D-TN)
Albio Sires (D-NJ)
Donna Edwards (D-MD)
 
Ways & Means Committee
Republicans
Kevin Brady (R-TX)
Dave Reichert (R-WA)
Democrats
Sander Levin (D-MI)
Energy & Commerce Committee
Republicans
Fred Upton (R-MI)
Markwayne Mullin (R-OK)
Democrats
Frank Palone (D-NJ)
Financial Services Committee
Republicans
Jeb Hensarling (R-TX)
Randy Neugebauer (R-TX)
Democrats
Maxine Waters (D-CA)
Other Committees
Republicans
Mac Thornberry (R-TX)
Mike Rogers (R-AL)
Bob Goodlatte (R-VA)
Tom Marino (R-PA)
Darin LaHood (R-IL)
Glenn Thomson (R-PA)
Will Hurd (R-TX)
Lamar Smith (R-TX)
Democrats
Loretta Sanchez (D-CA)
Zoe Lofgren (D-CA)
Raúl Grijalva (D-AZ)
Gerry Connolly (D-VA)

House Committee passes a multi-year surface transportation bill

On October 23rd, the US House Transportation & Infrastructure Committee passed out of committee a long-term surface authorization. The bill, the Surface Transportation Reauthorization and Reform Act (HR 3763), authorizes the federal surface transportation program for six years, and recommends flat line funding plus inflation over the life of the bill.

Transportation for America (T4A) published a summary of the bill (pre-mark-up) for members, click HERE to download it.

Ultimately, the big-four agreement – a bipartisan agreement determining which amendments would be allowed, accepted or rejected that exists between the Chairmen and Ranking Members of the full- and subcommittees – proved to hold firm during yesterday’s nearly six-hour meeting.

Of the 160 plus amendments offered during the mark-up by members of the committee, the Chairman agreed to only three:

  • adding tourism to state and MPO planning scopes,
  • exempting weight limits for emergency vehicles, and
  • including a performance metric on urban highway state of good repair.

Only two received votes and both failed by large margins. In return for assurances by Chairman Shuster (R-PA) that the Members’ concerns would be taken care of before the bill reaches the House floor, nearly all Members offered and withdrew their amendments.

Of importance, Representatives Davis (R-IL) and Titus (D-NV) offered an amendment to increase the amount of funding directed to metro regions by $9 billion over the life of the bill and improve the transparency and project selection process for regions under 200,000 in population. Download the Davis-Titus summary memo HERE.

Though Rep. Davis (R-IL) had the votes yesterday to pass this amendment, he offered and withdrew the amendment after it gained the largest number of bipartisan statements of support during the markup (those came from Reps. Davis, Titus, Frankel (D-FL), Edwards (D-MD), Rouzer (R-NC)).  Chairman Shuster signaled that he is open to working with the bipartisan group to make improvements to this area of the bill as it moves forward in the process.

There were also a number of non-controversial amendments included in the manager’s amendment prior to the start of the meeting. Notable amendments include:

  • Sires (D-NJ) and Costello (R-PA) – amends the planning section to encourage MPOS to develop congestion management plans that develop strategies and projects that improve transportation access during peak hour travel and would include employers and representatives of low-income households.
  • Curbelo (R-FL) and Titus (D-NV) – amends the safe streets language to encourage reporting on the development and implementation of safe streets at the state level.

Despite a number of statements of support from various organizations, T4A finds that this bill doesn’t meet the forward-looking federal policies needed to strengthen the economic and social prosperity of our nation’s communities. We will continue to work to ensure the House STRR Act and the Senate DRIVE Act move in our direction and I thank you for your support.

US Senate Transportation Authorization – T4A Update

The US Senate continues to debate the federal surface transportation bill this week, with a series of votes taken last night by the full Senate. Individual senators filed over 200 amendments and T4America continues to track the latest developments on those amendments. We have compiled a brief update on where things stand and provide information on three amendments that we know would spur innovation, access and local control. 

**It is rumored that another manager’s amendment package will be offered in the near future. T4A will update this information as needed.

Transportation Funding Timeline Update: Transportation funding expires this Friday and the House announced this morning that they intend to pass a 3-month extension to match the Senate’s; setting up a new October 29 transportation funding deadline.

Last week, Majority Leader McConnell (R-KY) introduced what is expected to be the first of potentially two or more manager’s amendment packages. Manager’s packages serve as legislative vehicles to modify a piece of legislation in committee or on the floor, wholesale. This first manager’s package makes a number of changes, including maintaining the historic 80/20 highway and transit funding split; increases funding for the FTA High Intensity/Fixed Guideway State of Good Repair Formula program by $100 million (paid for by cutting TIFIA and the Assistance for Major Projects by $50 million each) and requires 50% of the off-system bridge set-aside funding in the STP program to be used on bridges that are not on the federal-aid highway system.

Last Sunday, the Senate dispatched a couple of non-germane amendments, but voted to allow Senators to vote on whether or not to tie the Ex-Im Bank authorization to the highway authorization. Late last night, the Senate voted and approved that plan (64-39).

Under this new modified manager’s package, T4A believes that it is unlikely that few if any of the 200+ plus amendments filed by Senators will be considered or voted on. However, we do anticipate the introduction of a third manager’s amendment which will reflect additional changes. T4A continues to work to increase local control, innovation and access to jobs and opportunity through three primary amendments. They include the following:

  1. Wicker-Booker STP local control amendment (corresponding fact sheet by USCM on changes to metro level funding)
  2. Murray TIGER authorization amendment
  3. Donnelly Job Access planning amendment (search for S. Amdt 2434, 2435 and 2436; this one is messy, our apologies)

Update: 5 Issues to Watch (for more information, please refer to T4A’s Member post on 7/23/15):

Pay-fors – Since the last post on 7/23/15, a number of items have shifted. A few provisions, considered poison pills, were removed, including the $2.3 billion that came from denying those with felony warrants social security benefits and $1.7 billion that came from rescinding unused funds for TARP’s Hardest Hit Fund. These rescissions leave the authorization with $43.7 billion, all of which are generated outside of the traditional transportation-user fee system. The measure would provide enough additional HTF revenues to provide the first three years of highway and transit investment, but Congress would be required to raise additional resources before October 2018 to be able to fund the final three years of the DRIVE Act’s authorized spending.

Transit funding – Changes in the manager’s package increased the levels of transit funding to be 24% of the authorized levels overall and 24% of any new funding generated annually.

Freight –The DRIVE Act creates a robust freight planning process that directs states to examine efficient goods movement and identify projects needed to improve multimodal freight movement. However, despite instituting a multi-modal freight planning process, the new National Highway Freight Program would require 90% of the funding go to highway-only projects rather than to multimodal projects using a performance-based system. What impact will this have?

Take, for example, the non-highway freight needs in the State of California. Ten percent of California’s funding would be only $9.3 million in 2016, growing to $23 million in 2021. Comparitively, one multimodal project at the Port of Long Beach in California to remove a railroad bottleneck and build more on-dock rail capacity cost the Port $84 million. T4A views this policy as a missed opportunity and not consistent with T4A’s freight policy.

Overall, due to removal of the TARP Hardest Hit Fund, the bill’s overall investment levels needed to be reduced. Under the first manager’s package, the freight program was set to receive $1.5 billion in FY2016 growing to $2 billion in FY2018. The program would now receive $991.5 million in FY2016 and increase to 1.9 billion in Fy2018.

Passenger Rail – No changes to note from the last update on 7/23/15.

Assistance for Major Projects (AMP) – Funding decreased by $50 million per year to increase funds for FTA’s High Intensity/Fixed Guideway State of Good Repair Formula program. AMP would now be authorized at $250 million in FY16 and rise to $400 million in FY2021.

*NEW* TIFIA – The initial manager’s package introduced early last week would cut TIFIA funding from $1 billion to $500 million per year. Removing the TARP Hardest Hit Fund and other payfors required additional cuts, which senate authorizers took out of the TIFIA program. Those cuts, plus the increase to the FTA’s High Intensity/Fixed Guideway State of Good Repair program, result in an overall authorized funding level for TIFIA at just $300 million per year over the life of the bill.

Senate Passes Cloture; 5 Things We’re Watching

***Please note, at 10:00am T4A received McConnell’s substitute amendment, which means that a number of these items may have changed. We’ll keep you updated as it proceeds.**

Last night, the US Senate passed a procedural vote called cloture. Like a starting pistol in a race, this means that they can now start debating, amending and eventually pass a federal surface transportation bill out of the Senate. While many things can, and will, happen over the next few days, there are a number of topics that Transportation for America is watching.

Want to know how your Senator voted on cloture? Click HERE.

1.Payfors – DC parlance for real and imaginary ways to pay for this bill.

At this time, there appears to be a wide-ranging list of payfors that run as small as $172 million up to $16 billion. Some of these include items like such as rescinding unused TARP funds or extending fees for TSA. There do not seem to be many that keep the traditional tie between users of the system and payments into the system.

The mass transit account appears to be running out of funding well before the highway trust fund. Initial T4A analysis seems to indicate that the legislation pulls in all 10 years of the proposed funding to pay for 3 years of the highway trust fund and 1.5 years of the mass transit account.

APTA transit run

APTA transit funding table in current Senate transportation legislation

The legislation also appears to sell 101 million barrels out of the 693.7 million barrels of the Strategic Petroleum Reserve (SPR) between 2018 and 2025 to bring in $9B over 10 years. Critics of this funding scheme assert that we are selling the oil when prices are at record lows, making it a foolish idea. Sen. Murkowski (R-AK) is reportedly one of those critics.

Originally, this legislation withheld Social Security payments from recipients that are subjects of a felony arrest warrant and for whom the state has given notice that they intend to pursue the warrant, raising $2.3 billion over 10 years. T4A has heard that Senate negotiators have removed this provision due to the advocacy of a number of social equity and civil rights groups.

2. Transit
T4A and the larger transportation community have several concerns about this title, the main ones are:

banking transit

US Banking Democrats chart on modal share under currently proposed Senate legislation

First, the DRIVE Act fails to provide public transportation with 20% of the new revenue dedicated to growth, which is a historical guarantee dating back to President Reagan’s agreement in 1982. Public transportation receives only 6% of the revenue derived from the future funding growth (see Senate Banking Democrats chart). U.S. DOT estimates that the Mass Transit Account ends the third year of the bill (FY 2018) with a negative balance of $180 million. Senator Boxer is reportedly negotiating a fix with Senate Republicans that will increase that percentage.

Second, projects with private funds get to “skip the line” for federal money, providing a major incentive for privatized service. The existence of a new expedited process could entice cities to pursue transit privatization on a large scale by using P3s to operate transit service. The labor community has expressed strong opposition and may oppose the entire bill if this provision isn’t removed.

Third, this legislation forces the Federal Transit Administration (FTA) to wait 6 months before increasing oversight of at-risk projects. Sec. 21015 requires the FTA to wait for a project to fail 2 consecutive quarterly reviews before providing more oversight to a project that is going over budget or falling behind schedule.

3. The Freight program

This legislation includes all modes of freight, including pipelines for the first time. It also requires the establishment of a new multi-modal freight network within 1 year of enactment, the establishment of which appears to be similar to the creation of the existing freight network (as well as a re designation of the existing highway freight network). It does, however, define economic competitiveness by the amount of traffic moved and not economic outcomes and will fund projects that reduce congestion, improve reliability, boost productivity, improve safety or state of good repair, use advanced technology or protect the environment on the national highway freight network.

You’ll recall that T4A sent out an action alert to keep the TIGER program multimodal and not let the US Senate Commerce Committee use it for freight-exclusive purposes. We’re happy to report that effort was successful, though the TIGER program is still not authorized or funded in the transportation bill.

4. Passenger Rail
This legislation authorizes passenger rail funding for the first time ever in a federal surface transportation reauthorization. The legislation calls for $1.44B in 2016 and growing to $1.9B in 2019. It maintains a national system and provides for clear cost accounting among the 4 business lines of Amtrak of the corridor, state-supported and long-distance trains. Provides for up to 6 new passenger rail routes on a competitive basis and for the first time makes operational costs eligible for grants.

5. AMP – Assistance for Major Projects
This is a new project for highway or transit projects that cost at least $350M or 25% percent of state highway apportionment (10% in a rural state). Applications should be reviewed based on consistency with federal goals, improvement to the performance of the system, is consistent with the statewide plan, can’t be completed without federal help and will achieve one or more of the following:

  • generate national economic benefits outweigh cost,
  • reduce congestion,
  • improve the reliability of movement of people and freight, or
  • improve safety

Grants under AMP must be at least $50M, with a rural guarantee of 20%. Eligible applicants for AMP include states, local governments (or group of locals), tribal governments, transit agencies, port authorities, public authorities with transportation function and federal land management agencies. It is not yet clear if this language is specific enough to include MPOs.

Amendments to be offered: T4A staff is monitoring a number of potential amendments. One of which (offered by Senators Wicker (R-MS) and Booker (D-NJ)) would increase the ability of communities to fund projects through the Surface Transportation Program. We strongly urge you to call your Senator and tell them to co-sponsor that amendment.

UPDATED: Senate reaches preliminary agreement on a long-term transportation bill

A group of key Senate leaders announced yesterday that they’d reached agreement on a bipartisan six-year transportation bill with three years of guaranteed funding. While it’s encouraging to see this agreement ten days before MAP-21 expires on July 31, forthcoming negotiations over the actual details of the bill will be crucial as most Senators have not yet seen the policy or funding language.

Senator McCcnnell announcing deal 2015-07-21 Senator Boxer announcing deal 2015-07-21

UPDATED Thursday 9:30 a.m.: Late Wednesday, the Senate reached cloture on the transportation reauthorization bill. It got just the required number of votes to pass, 60-38. We’ll move on to discussing and debating the bill today.

UPDATED Wednesday 5:30 p.m.: Yesterday (Tuesday) afternoon, a few hours after this bill was announced on the Senate floor, the Senate failed to pass a “cloture” vote to begin debate of the bill. Senate Democrats were unwilling to begin considering and debating a bill they’d had less than a few hours to read, and a few Republicans voted against cloture as well because of objections to particular funding mechanisms.

Senators McConnell, Boxer and the others assembling the funding mechanisms were only able to find sufficient funding for three years, using a mix of funding offsets that included selling oil from the nation’s strategic reserves, lowering the dividend paid to banks that join the Federal Reserve, and tinkering with fees from the TSA.  You can read the full text of the bill here (pdf), a summary of the provisions from the EPW majority, and a summary of the funding mechanisms.

Stay tuned as we watch the Senate for more. Though a vote was mentioned to reporters as a possibility today by numerous Senators, the Senate recessed this afternoon at 4:30 p.m. (Wednesday) without any movement on the bill. There’s still a possibility they could return tonight for a vote, but the more likely option is Thursday.

Original post: Speaking on the Senate floor yesterday, Senators McConnell (R-KY), Reid (D-NV), Boxer (D-CA) and Inhofe (R-OK) announced their agreement on a long-term transportation bill that cobbles together sufficient revenue to carry the policy forward for three years.

The four Senators (and especially Senators McConnell and Boxer) had been “hammering out the details” over the last few days according to an article in The Hill this morning, and today Senator McConnell announced the deal on a “six year highway authorization that will allow for planning for important projects around the country…a long-term bill that’s in the best interests of our country.” (Note: Sen. McConnell repeatedly called the bill a six-year authorization with only three years of guaranteed funding.)

What’s next?

While an agreement has been reached in principle and procedural vote will be taken this afternoon at 4 p.m to consider debate on the bill, it’s far from a done deal at this point, and Senate Democrats will especially be curious to see the details of a bill that the rank and file (and possibly some of the leadership and relevant committee chairs) have not read at all yet.

It’s also notable that the Banking Committee and Finance Committees haven’t independently passed their portions of the full bill yet, so those committee members will be especially interested to see what the bill contains for their areas of jurisdiction.

After Sen. McConnell spoke, the two key Democratic negotiators in the Senate got up and made it clear that while the agreement is a step forward, they need to know more about what’s in the bill before they can proceed.

“We can’t go forward on a bill until we’ve read it and studied it,” said Senator Reid, one of the two main Democratic negotiators on the deal. “We need to look at this document,” he said. The other key negotiator in Democratic leadership, Senator Boxer, urged her colleagues to get the text posted as soon as possible. “We want to see the text — get the text up,” she said.

The vote coming today at 4 p.m. (originally scheduled earlier in the day but moved back during this time) will be a procedural vote to bring the bill to the floor and begin debate. That doesn’t mean there will be a vote on the final bill anytime soon — especially considering that all of the Senate Democrats who spoke made it clear that there’s still work to be done and that they need to carefully study the bill first.

We’ll be watching the vote this afternoon, so stay tuned, and follow us on Twitter to stay regularly updated.

ICYMI: T4A and SGA Host Federal Policy Webinar; Materials Inside

Yesterday, Smart Growth America and Transportation for America hosted a webinar to review congressional action on the federal surface transportation authorization. If you were able to attend, you will recall that we mentioned how the US Senate is poised to consider the authorization before the full Senate next Tuesday. That continues to be the current timeframe for Senate consideration.

webinar image

Access the webinar powerpoint here.

As a T4A member, you can access the webinar anytime through this page.

Two action items stemming from that conversation include:

  • It is highly likely that T4A will be issuing a number of action alerts next week. While we don’t have legislative language on a number of potential amendments, we anticipate movement on issues of local control, freight, TAP, transit funding and TIGER. Member support would be greatly appreciated.
  • The National Complete Streets Coalition is requesting support to tell FHWA to make more inclusive streets that are designed to be more livable. You can register your comments here: bit.ly/NHSdesign (this weblink is case-sensitive).

Three changes could dramatically improve the Senate’s draft transportation bill

Ahead of the looming July 31 deadline to pass a new bill (or extend the current law), the Senate Environment and Public Works Committee in late June introduced and marked up a full six-year transportation bill. While we think it’s a good starting point, there are some promising amendments that could improve the bill dramatically as it goes forward in the Senate.

Mayors and other local elected leaders are the ones who face the music from citizens when bridges need repair, when mounting congestion makes commutes unpredictable, and when families can’t safely walk their kids to school — yet those same leaders are too often left out of the discussions over what gets built and where.

Giving local communities of all sizes the resources they need to realize their ambitious plans to stay economically competitive should be a primary goal of this bill, and several Senators have prepared several amendments to help change that.

Several of these were discussed or offered and withdrawn during the markup, and will hopefully be debated on the floor of the Senate.

First, Senators Wicker (R-MS) and Booker (D-NJ) are offering their Innovation in Surface Transportation Act as an amendment, to create a competitive grant program in each state to give local communities more access to federal funds — but only for the smartest, most innovative projects judged on their merits. A second amendment from Senators Booker and Wicker would increase the amount of flexible transportation dollars directly provided to local communities by ten percent of the program’s share.

Lastly, an amendment from Senator Cardin (D-MD) would increase funding for the program that cities, towns and regions use to invest in projects to make biking and walking safer — restoring the Transportation Alternatives Program to its previous funding level before being slashed in the last reauthorization in 2012.

Can you urge your Senators to support these amendments that will help give local communities like yours more access to and control over transportation dollars?

With a new competitive grant program for local projects in each state, more communities could find success like Normal, IL, found with its Uptown Station. Normal used a grant from the competitive national TIGER program to complete the funding picture for a multimodal station and central plaza that brought new life and economic activity to its town’s core. But the TIGER program is one of the only ways local communities can directly access federal funds, and it’s wildly oversubscribed.

Though the bill has cleared committee, it will still have to be considered in the full Senate, so we need all Senators to hear your support for these amendments. Don’t delay — send a message to your Senators and urge them to support these key amendments to improve this bill.

Logged-in members can read our full summary of the EPW bill below.

[member_content]Feature graphic - epw drive actJune 24, 2015 — The Senate Environment and Public Works Committee (EPW) released its six-year MAP-21 reauthorization proposal on June 22, 2015. The DRIVE Act is a start, but needs much more work to reform — and reinvigorate — the federal transportation program in ways that will boost today’s economy and ensure future prosperity. This memo provides an overview of the key provisions included in the proposal, as well as funding levels for key programs.

Read the full members-only memo here.[/member_content]

Exclusive Member Summary – 6/18/15 Senate Finance Highway Funding Hearing

June 18, 2015 — US Senate Finance Committee — “Dead End, No Turn Around, Danger Ahead: Challenges to the Future of Highway Funding”

Witnesses

Dr. Joseph Kile – Assisant Director for Microeconomic Studies Division, Congressional Budget Office

The Honorable Ray LaHood – Senior Policy Advisor, DLA Piper

Mr. Stephen Moore – Distinguished Visiting Fellow, The Heritage Foundation

At this hearing, Chairman Hatch (R-UT) looked to explore every possible option to address the long-term fiscal challenges of the Highway Trust Fund. However, at the hearing he mentioned that he does not see any large-scale gas tax increase as politically possible. That said, Hatch pressed the need remove the “highway cliff” by finding funding to do a multi-year authorization.

Senator Carper (D-DE) called upon Senator Hatch to ensure no options like the gas tax are taken off the table, and referred to T4A analysis that showed state legislators who vote for a gas tax increase were not punished. Carper mentioned that at a minimum we should be able to index the gasoline and diesel tax and then come up with other creative sources to fund infrastructure.

Witness Stephen Moore with Heritage Foundation floated the idea of devolution, but the proposal was very unpopular for a majority of committee members and was shot down by former Secretary Ray LaHood as an irresponsible notion. Senators Thune (R-SD), Heller (R-NV) and Menendez (D-NJ) all voiced devolving the program. Transit came under attack for receiving gas tax dollars, but Senator Thune mentioned kicking transit out of the program is a political non-starter after it failed in the House during debate for MAP-21, and Senator Menendez and former Secretary Ray LaHood both stood up strongly for the need for more robust transit investment, not less.

Senator Thune (R-SD) mentioned that we should be treating general fund transfers as adding debt to an already debt-burdened country, since those funds ultimately do account for part of the deficit. He said it is time we stop the easy solution of general fund transfers and find a way pay for it. Senator Hatch agreed that long-term action is absolutely needed, and mentioned it will be difficult, but that the Committee will be working to look at all the different options to come up with a solution that stops the country from kicking the can down the road.

House proposes a trust fund Band-aid through May, 2015, with key differences from Senate

House Ways and Means Committee Dave Camp (R-MI)

House Ways and Means Committee Dave Camp (R-MI)

A House proposal to shore up the transportation trust fund through May, 2015, is a good news, not-so-good news proposition.

Late yesterday, House Ways and Means Chairman Dave Camp (R-MI) proposed a $10.8 billion infusion to cover a looming deficit in the Highway Trust Fund. The money for the next few months would come mostly from an accounting maneuver called “pension smoothing” over the next 10 years. The remainder comes from extending some customs fees and transferring $1 billion from the fund for leaking underground storage tanks.

The good news is that both Houses are now moving to take seriously the increasingly urgent warnings of insolvency coming from the Congressional Budget Office and the U.S. Department of Transportation. Absent action to transfer money to the trust fund, the flow of dollars to the states will be curtailed as much as 28 percent after Aug. 1.

The not-so-good news is that the recent hope for a speedy, bicameral solution seems lost for the moment. The House is taking a different tack from the Senate, whose Finance Committee had delayed its own proposal in hopes of negotiation a bipartisan compromise within both chambers. The Camp proposal covers a different time period – through May 31 versus Dec. 31 in the Senate – and uses different “pay-fors”. The differences mean it will be that much harder to reach a solution before the long August recess.

The other less-than-good news is that the proposal to extend into May of next year would reduce the urgency to address a long-term solution, such as the bipartisan Murphy-Corker proposal to raise the gas tax and index it to inflation. By extending only through the end of this year, the Senate deadline raised the possibility that Congress might move immediately after the election, in a lame-duck session where members feel less political pressure.

“While it doesn’t provide as much funding as I would like – enough to get through the end of next year – it does give Congress and the tax-writing Committees ample time to consider a more long-term solution to the Highway Trust Fund,” Camp said in a statement. However, Camp also indicated he is opposed to tapping the most readily available revenue source, the federal gas tax, calling it “just about the worst tax increase Congress could hit hardworking Americans with.”

The House Ways and Means Committee is scheduled to consider the legislation Thursday at 10:00 a.m.

U.S. DOT offers great proposals, but the program needs more money to make them real

The Obama Administration last week unveiled its bid to save the federal transportation program with only months to spare before most states and metro areas lose the majority of their funding to maintain and improve transportation networks – unless Congress acts.

While the Administration foreshadowed its priorities in its March budget request, the proposal – dubbed GROW AMERICA – marks the first time since the mid-2000’s that an Administration has submitted a full reauthorization bill to Congress. [See our summary of the provisions here.] While it stops short in some respects, the Administration bill is an important acknowledgement that we need not only to shore up the funding, but also to update the program goals and structure to support today’s economy.

In one sense, the $302 billion, four-year GROW AMERICA Act was drawn up by the people most intimately familiar with what is working, or not, in the current program – the DOT leaders who must interact with communities every day as they work to implement it.

Reading between the lines, they found that rigid adherence to funding silos for each mode does not work for today’s needs. They learned from the TIGER program that there were countless projects that could solve multiple problems for communities, businesses and freight handlers, but that existing, single-mode programs did not allow them to happen.

The first, critical, change the U.S. DOT suggests is to put all dollars for transportation infrastructure into a unified trust fund and shield it from budget fights such as the recent sequestration. During that budgetary debacle, some transportation programs – such as transit construction – were slashed while others were unhurt. Communities that are investing to preserve and improve the infrastructure our economy depends on deserve to know that all their promised funding is safe, not just some of it.

The GROW AMERICA Act would begin to infuse the federal transportation program with the promising ideas of competition and incentive-based funding.  While most funding under MAP-21 is distributed automatically by formula, the GROW AMERICA Act would establish several new  competitive and incentive grant programs.  One, modeled after the highly successful TIGER program but more than twice as large, would provide $5 billion over four years for competitive grants to fund projects with a mix of modes, including highways, bridges, transit, passenger and freight rail, and ports.

Another program – Fixing and Accelerating Surface Transportation, or FAST – is modeled after the Department of Education’s Race to the Top. It would allocate $4 billion to support incentive grants to states or metropolitan planning organizations (MPOs) that adopt innovative strategies and best practices in transportation, such as creating their own multimodal trust funds or giving local governments more latitude to raise their resources.

The biggest problems with the bill come down to money. The Administration proposes $87 billion to rescue the highway trust fund and provide new resources, but has said only that the money would come from unspecified corporate tax reforms. While that one-time infusion would be welcome, it does not address the ongoing shortfall resulting from declining gas tax revenue. Worse, without the additional increment of funding, very little about the current program would change, because the most exciting proposals are layered on top of the basic structure of MAP-21. Meanwhile, the bill makes no provisions even to study or pilot future revenue sources, such as vehicle miles traveled fees.

These are just a few highlights of the GROW AMERICA bill. Read our summary for more details, and watch this space over the next couple of weeks as we take a closer look at some of the individual proposals in the bill.

EPW Committee approves transportation bill by voice vote, moves it out of committee

The Senate Environment and Public Works Committee approved its two-year highway reauthorization bill this morning and moved it out of committee by a bipartisan, unanimous 18-0 vote. (Read our statement here.)

The committee markup was short, as compared to a typical markup of such a large bill, but that was a testament to the work done behind the scenes by Senators Boxer, Inhofe, Baucus and Vitter to get consensus among the four of them on the major policy points.

At the markup, a single package of amendments, known as a manager’s amendment, agreed to ahead of time by the four key Senators, was approved by a unanimous voice vote. No other amendments were voted on, though many others were filed.

After that amendment package was approved, Senators took turns talking about other amendments that they had drafted but weren’t formally proposing, in order to preserve the bipartisan vote and also because the four committee leaders made it clear they would oppose any other amendments, effectively ensuring no amendments would pass — a process known as “offer and withdraw.”

Senators talk about their amendment, offer it, and then note that they’re not calling for a vote and withdraw the amendment. The idea behind this is to indicate the Senator’s desire to continue to push an issue and work with the Committee to find ways to incorporate concepts into the final bill as it moves to the floor.

There were a few smart, notable amendments offered in that way, and a handful of others that were not offered. Sen. Gillibrand talked at length about a program that would help train low-income workers, but we’ll be talking more about those amendments in the days and weeks to come as the bill moves forward.

Here’s a summary list of the amendments that were approved in the manager’s package. Some other small changes to the bill were made in an amendment written and approved by the four committee leaders, but that text is not yet available. Additional explanatory notes from T4 America are in italics.

(Amendment data derived in part from Transportation Weekly and Jeff Davis.)

Senator, Amendment # Description
Barasso #2 as modified National Freight Program flexibility for rural roads
Barrasso #4 as modified Limits the number of performance measures, directing the Secretary to study and establish only the “most effective” performance measures.
Boozman #1 as modified CMAQ accountability study. Co-written with Sen. Carper.
Cardin #4 as modified FHWA to FTA flex used to enhance level of service. This amendment will make it easier to use funds from the new National Highway Performance Program (generally dollars for interstate and national highway system funds) on transit projects. This amendment lowered some of the hurdles that made it hard to flex that money, as MAP-21 was written.
Carper #3 as modified Clarify off-road diesel PM2.5 rules and funding
Crapo #2 as modified Directs states to “consult” rather than “cooperate/coordinate” on transportation planning with rural areas and small urban areas under 200,000.
Crapo #3 as modified State DOTs that have a current statewide long-range transportation plan will be exempt from having to do performance planning for four years. States that developed policy plans can keep using those plans for 4 years, without having to write a new long-range plan. Does not cover MPO planning, only states.
Gillibrand #1 as modified Freight rail improvement within 5 miles of Mexico, Canada borders
Johanns #2 State comment process on DOT standards for National Highway Performance Program
Johanns #3 Require DOT to give tech support to states for data modeling
Johanns #5 Narrow scope of fines in sec. 2210 of bill
Merkley #3 as modified Require MPO alternate scenarios to be fiscally constrained
Sanders #1 as modified Increase ER fed share to 100 percent in certain circumstances
Sanders #3 DOT report on potential electric car charging network
Udall #1 as modified Define border roads as within 10 miles of border
Udall #2 Use of crash rate as a safety analysis/planning factor. This provision ensures that rural roads with high crash rates receive equal attention under the Highway Safety Improvement Program. Rural roads may have few crashes relative to busier roads, but far less traffic, resulting in a higher rate. Using crash rate as a planning factor should help dangerous rural roads see increased safety funding.
Udall #3 Eligibility for alternate roads along a corridor when its more cost effective than improving primary route.

Transportation for America Response to Senate EPW Reauthorization Bill

After the Senate Environment and Public Works Committee moved their draft transportation bill (MAP-21) out of committee with a successful bipartisan vote this morning, T4 America Director James Corless offered this statement:

“The bipartisan passage of the MAP-21 bill in the Senate EPW Committee this morning provides a significant opportunity to move forward on a long overdue authorization of federal transportation policy with full funding to ensure we invest in America’s infrastructure. Key reforms in the bill would place a stronger emphasis on repairing and rebuilding our roads and bridges, while instituting performance measures that will help hold agencies accountable for the maintenance and operations of our transportation network.

“We will work with Chairman Boxer and Ranking Member Inhofe and the rest of the Committee to ensure that there is dedicated funding that prioritizes bicycle and pedestrian projects, strong workforce development provisions and smart transportation planning reforms. We are eager to address these issues so we can put the full strength and weight of our coalition behind the bill as it moves forward in order to make the most of our federal transportation dollars, put people back to work and deliver the transportation system that Americans need.”

Summary of the Senate MAP-21 transportation bill proposal

The Senate Environment and Public Works Committee released a draft of the transportation bill late last Friday. The EPW committee’s portion of the bill covers what’s known as the “highway” title. (The Banking Committee is responsible for writing the “transit” title and the Commerce Committee covers rail and safety. Those sections of the bill have not been released yet.)

We’ve prepared a short few pages on what MAP-21 means for the federal transportation program. This top-line analysis is a bit on the wonky side, but hopefully it’ll be helpful if you’ve been trying to summarize the 600 pages of bill text.

One of the most visible changes MAP-21 makes is to restructure seven core highway programs and 13+ formula programs into just five core highway programs. This graphic below illustrates those changes. Read on for the full summary, which you can also download here. (pdf)


Click to enlarge the graphic.

MAP-21 consolidates numerous FHWA programs into five core programs. The new program structure is as follows.

National Highway Performance Program (NHPP): ~$20.6 billion

This new program focuses on repairing and improving an expanded National Highway System (NHS). The NHS is expanded from ~160,000 miles to ~220,000 miles. States are required to develop asset management plans and as a part of these plans establish performance targets for the condition of roads and bridges and the performance of the system. In addition, the program includes provisions to hold states accountable for the repair of Interstate pavement and NHS bridges by requiring that they spend a certain amount of funding on the repair of those facilities if they fall below minimum standards established by USDOT.

Transportation Mobility Program (TMP): ~$10.4 billion

TMP replaces the existing Surface Transportation Program (STP) and allows states and regions to invest flexible dollars in a broad set of highways, transit projects, freight rail projects, and bicycle and pedestrian projects, as well as other activities like travel demand management. Fifty percent of these funds are suballocated to areas in the state based on their population. While this percentage is lower than the current 62.5 percent, the absolute amount of funding to be suballocated will remain the same due to an increase in program size.

Highway Safety Improvement Program (HSIP): – $2.5 billion

Funding is provided to states to improve safety for all road users on all public roads. A road user is defined as both motorists and non-motorized users. States are required to collect extensive data on crashes and create a database containing information on safety issues for all public roads including identification of hazard locations. (8% of all funds in this program are set-aside for data collection.) States must also develop a strategic highway safety plan using the data collected. If states do not develop a strategic highway safety plan within a year using a process approved by USDOT, they are required to spend additional funding on safety projects. States are also required to develop performance targets on fatalities and serious injuries.

Congestion Mitigation Air Quality Program (CMAQ): ~$3.3 billion

In the CMAQ program there are two pots of funding – one that funds typical CMAQ projects and another “reserved” fund.

CMAQ pot. Funds are provided to states and tier I Metropolitan Planning Organizations (MPOs) to address the impacts of the transportation system on national ambient air quality standards. In states with non-attainment or maintenance areas, 50 percent of the funds are suballocated to tier I MPOs based on the area’s status with national ambient air quality standards. Funds cannot be used to construct new travel lanes except for HOV or HOT lanes. USDOT is required to develop performance measures for air quality and congestion reduction. Tier I MPOs that receive funds under this program are required to develop a performance plan that outlines baseline conditions, targets for each of the performance measures developed by USDOT, and a description of projects to be funded, including how those projects will help meet the targets.

“Reserved” pot. This pot of funding is equal to the amount of funds provided for the Transportation Enhancements set-aside in FY09. Eligible activities under this pot include the following: transportation enhancements, safe routes to school, recreational trails, environmental mitigation, and certain types of road projects (including street redesigns and HOV lanes). States are allowed to use these funds for CMAQ projects (the first pot) if they build up an unspent balance of year and a half worth of funds.

National Freight Program: ~$2 billion

USDOT is directed to establish a primary freight network consisting of 27,000 miles of key freight corridors. States can use funds for highway projects that improve freight movement with a focus on the primary freight network and key rural freight corridors. A state may use up to 5 percent of funds for rail or maritime projects subject to certain conditions. USDOT must also develop a National Freight Strategic Plan, which will analyze performance and conditions on the primary freight network, identify bottlenecks, estimate future freight volumes and identify best practices for mitigating impacts of freight movement on communities. USDOT shall publish a Freight Condition and Performance Report on a biennial basis. States must establish performance targets and report on progress every two years.

Other key components

TIFIA program – $1 billion. MAP-21 expands the TIFIA program from $122 million to $1 billion and modifies the program from a competitive application process to a rolling application process. Provisions have been added that allow for applicants to enter into master credit agreements to provide funding for a suite of projects at once. In addition, there are modifications that make it easier for public transportation agencies with dedicated revenue sources to apply for TIFIA loans.

Planning and Performance. MAP-21 creates performance measures for conditions on the National Highway System (NHS), NHS performance, safety, freight, congestion mitigation and air quality. As part of the development of the plan, states and large MPOs shall analyze the baseline conditions for the performance measures and establish performance targets for each performance measure. The plan must include the future performance of their transportation system with regards to these performance measures including whether or not they will achieve their performance targets. Large MPOs may undertake scenario planning as a part of the development of their long-range plans. Smaller MPOs are required to develop long-range plans and USDOT will establish rules that provide for the standards they must meet regarding the performance measures required for the larger MPOs.

Statewide transportation improvement programs (STIPs) and metropolitan transportation improvement programs (TIPs) must include performance measures and targets used in assessing the existing and future performance of the transportation system. A system performance report must include progress toward achieving state performance targets.

Project Delivery. MAP-21 includes numerous provisions intended to accelerate project delivery. Most of these provisions relate to administrative actions to be taken by USDOT. There are also provisions that relate to expanding the types of projects that can be undertaken through a categorical exclusion (a more limited environmental review). In addition, it allows for the earlier acquisition of right-of-way.

Senate EPW Committee releases their bill text

The Senate Environment and Public Works Committee released text of their portion of the transportation bill late last Friday evening. Our staff is still chewing through the details of the 600 pages and we hope to have some sort of analysis and statement ready later today.

It’s a good time to remember that this committee is responsible only for what’s known as the “highway” title of the bill. While it does contain a funding amount, proper details on revenue and revenue sources are the jurisdiction of the Finance Committee, and any information about rail or transit will come from what the Banking Committee, when they write that title. So this is just one part of the full bill — albeit the part that sets policy for spending the majority of the money.

Check back later today for more information, or follow us on twitter. This bill is scheduled for a markup in committee in two days, on Wednesday, November 9th.

Here’s what the the EPW committee pulled out as highlights in their bill summary document.

Moving Ahead for Progress in the 21st Century (MAP-21) reauthorizes the Federal-aid highway program at the Congressional Budget Office’s baseline level—equal to current funding levels plus inflation—for two fiscal years.

MAP-21 consolidates the number of Federal programs by two-thirds, from about 90 programs down to less than 30, to focus resources on key national goals and reduce duplicative programs.

Eliminates earmarks.

Expedites project delivery while protecting the environment.

Creates a new title called “America Fast Forward,” which strengthens the Transportation Infrastructure Finance and Innovation Program (TIFIA) program to leverage federal dollars further than they have been stretched before.

Consolidates certain programs into a focused freight program to improve the movement of goods

700 days since expiration of last transportation bill, Congress urged to pass an extension

P1010043President Obama gave a short speech in the Rose Garden this morning calling on Congress to come together quickly to pass a “clean” extension of the federal transportation bill to ensure that there’s no interruption in federal funding for transportation projects while they debate a longer-term reauthorization.

At the end of September, if Congress doesn’t act, the transportation bill will expire. This bill provides funding for highway construction, bridge repair, mass transit systems and other essential projects that keep our people and our commerce moving quickly and safely. And for construction workers and their families across the country, it represents the difference between making ends meet or not making ends meet.

If we allow the transportation bill to expire, over 4,000 workers will be immediately furloughed without pay. If it’s delayed for just 10 days, it will lose nearly $1 billion in highway funding — that’s money we can never get back. And if it’s delayed even longer, almost one million workers could lose their jobs over the course of the next year.

As a refresher, we’re currently on the 7th extension of the 2005 transportation bill (which incidentally expired exactly 700 days ago today in September of 2009.) The current extension of federal law expires at the end of September, leaving only a narrow window of time for the House and Senate — currently far apart on policy and funding levels — to come together on a new long-term transportation bill.

A “clean” extension would mean extending the old policy without making policy changes or tweaks — changes that don’t have time to be properly considered or debated. T4 America Director James Corless said in our statement earlier today:

Extending the gas tax and the current law that allocates transportation funds ought to be the bipartisan no-brainer it has been historically. To play politics with the extension would deliver a gratuitous shock to a struggling economy and to families relying on infrastructure-related paychecks.

Extending the old policy is urgently needed, but it’s still a band-aid. The bigger need will still remain: passing a robust, long-term transportation bill with updated policy and purpose that matches the needs of the 21st century in America. Corless continued:

Beyond that, the President is right to urge Congress to break the gridlock and adopt a fully funded, long-term authorization that will protect and create jobs while supporting a full-fledged economic recovery. To be most effective, the updated transportation bill needs to ensure timely project approvals, as the President noted; but more importantly, it needs to set clear priorities to avoid misspending our precious dollars. Those priorities should include holding states and localities accountable for smart investment strategies and for repairing and updating existing infrastructure, while expanding the network to provide more convenient, safe and affordable travel options for all Americans.

Rep. John Mica, the chair of the House committee responsible for writing the bill, released his own statement expressing his support for passing an extension, in which he said, “I will agree to one additional highway program extension,” seemingly acknowledging the reality that it will extremely difficult to pass a full six year bill in the short month of September.

The bigger questions still lingering from all of this news today are whether or not the extension will be “clean” — without policy riders of any kind — and what impact this will have on the long-term transportation bill being considered by each chamber. The House draft bill has already been released, and rumor has it that the Senate is planning to release theirs in just a few weeks. But the two versions are far apart on funding and length for certain, and possibly with regard to policy.

Stay tuned, September will be a busy month. The legislative calendar will get rolling when Congress gets back in session on the day after Labor Day.

DOT poised to move on a long-term transportation bill in 2011?

When President Obama made his announcement on Labor Day about investing in infrastructure, most media outlets focused in directly on the $50 billion amount that would be spent up front to jumpstart infrastructure investment — something we already noted last week. But he also talked about the need for a reformed long-term transportation reauthorization, the full six-year bill that would provide certainty for job creation and the economy.

Here’s a quote from the release that accompanied the President’s speech:

The President proposes to pair this with a long-term framework to reform and expand our nation’s investment in transportation infrastructure. Since the end of last year, when the last long-term surface transportation legislation expired, these investments have been continued on a temporary basis, even as the trust fund to finance them has fallen into insolvency. If we are to enjoy the benefits that come from a world-class transportation system, Congress must enact a long-term reauthorization that expands and reforms our infrastructure investments and returns the transportation trust fund to solvency.

So the million dollar question has been, when will we see this bill? With Congress unlikely to pass anything of substance between now and the election and an already full docket for the likely lame duck session to follow, what is the administration or USDOT saying about moving a bill forward?

As much progress as has been made by the House transportation committee thus far, introducing a full bill proposal all the way back in July of 2009, both chambers have been waiting for the White House to declare the transportation bill a priority and to put their significant weight behind it. Now it sounds like that day could be just a few months away.

In a meeting with advocates this week, Secretary LaHood said that they have the go-ahead from the White House to move a six year bill in 2011, with a full proposal accompanying the President’s budget request for FY12 in February, according to USDOT sources.

The question remains as to whether or not that will be a full bill, or merely the administration’s principles for a bill, but in either case, this is at least a glimmer of light at the end of the tunnel for our long wait for a transformational transportation bill. Which, we remind you, expired one year ago in just a few days. (See the clock above on our web site.)

Administration releases their principles for an 18-month transportation bill

When DOT Secretary LaHood was on Capitol Hill a few weeks ago discussing the Obama Administration’s plan for a transitional transportation bill, he mentioned that their plan for an 18-month extension would “enact critical reforms” while stopping short of a fundamental overhaul of the program — leaving that for the full six-year bill.

A lot of transportation advocates were left wondering what sort of reforms the administration would propose. Today we got a first look at their general proposal (via Transportation Weekly.)  Update: Elana Schor @ Streetsblog has the details on the National Infrastructure Bank.

As you may remember, Chairman James Oberstar and his House Transportation and Infrastructure Committee are at odds over the timing of the authorization bill. Oberstar and company want to pass a full six-year authorization bill by September, while the Administration favors an 18-month transitional bill to patch the soon-to-be insolvent Highway Trust Fund.

At the forefront of the administration proposal is a $20 billion transfer from the general fund to keep the Highway and Mass Transit Accounts in the Highway Trust Fund from going bankrupt, keeping them solvent until March 2011. They propose to return the money to the general fund over 10 years.

In a section titled “Downpayment on Reform,” the administration outlines three proposals, including $310 million to help states and metropolitan planning organizations (MPOs) voluntarily improve their project evaluation process, helping them choose worthy projects based on data , preparing them “for improved accountability standards and merit criteria in the long-term reauthorization.”

The second proposal would provide $10 million for “USDOT to develop performance goals and establish guidelines for states and localities on project evaluation.” And in language that sounds similar to the stimulus spending, the third proposal aims to improve the transparency and accountability in transportation spending, to “lay the groundwork for further accountability reforms in the long-term reauthorization.”

Lastly is a section on livable communities and improving regional access:

Livability: developing guidelines for community plans and providing funding for approved projects with special emphasis on convenience of transportation options, reductions in travel times, smart growth, preservation of open space, and more integrated responses to land use and transportation needs.

Chairman Oberstar is still opposed to any extension and it’s worth noting that any 18-month proposal would have to pass through his committee in the House. Read the full memo to Congress below. (more…)

Sec. LaHood proposes 18-month extension of current transportation bill

This morning on Capitol Hill, DOT Secretary Ray LaHood proposed an 18-month extension of the current SAFETEA-LU transportation authorization bill. Beyond simply extending the current bill, LaHood indicated that he wants to include some reforms in the 18-month extension — including a focus on metro areas, extensive cost-benefit analysis, and a commitment to “livable communities” — but was short on other specifics.

No word yet on how this will affect the proposed transportation bill outline to be released by Rep. James Oberstar tomorrow morning. Be sure to check back over the next few days for the latest.

From the DOT press room:

“This morning, I went to Capitol Hill to brief members of Congress on the situation with the Highway Trust Fund. I am proposing an immediate 18-month highway reauthorization that will replenish the Highway Trust Fund. If this step is not taken the trust fund will run out of money as soon as late August and states will be in danger of losing the vital transportation funding they need and expect.

“As part of this, I am proposing that we enact critical reforms to help us make better investment decisions with cost-benefit analysis, focus on more investments in metropolitan areas and promote the concept of livability to more closely link home and work. The Administration opposes a gas tax increase during this challenging, recessionary period, which has hit consumers and businesses hard across our country.

“I recognize that there will be concerns raised about this approach. However, with the reality of our fiscal environment and the critical demand to address our infrastructure investments in a smarter, more focused approach, we should not rush legislation. We should work together on a full reauthorization that best meets the demands of the country. The first step is making sure that the Highway Trust Fund is solvent. The next step is addressing our transportation priorities over the long term.”

UPDATE: The Wall Street Journal has a story up covering LaHood’s proposal, and includes a quote from Rep. Oberstar, responding to the idea of an extension:

In a meeting with reporters Wednesday, Mr. Oberstar was adamant that Congress must pass a new law before the current one expires.

“Extension of current law is unacceptable,” Mr. Oberstar said. “Now is the time to move.”

UPDATE 2: Michael Cooper of the New York Times covers the proposed extension, and gets a statement from Jim Berard, spokesman for Rep. Oberstar. “The chairman is not too pleased with the administration’s proposal,” he said.