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House panel to examine infrastructure investment (10/27/2008)

The House Transportation and Infrastructure Committee will meet this week to discuss financing options for the nation's crumbling infrastructure.

The hearing comes as Washington lawmakers and state officials have expressed concerns about short- and long-term funding for transportation construction and maintenance. Last month, lawmakers were forced to scramble to address the looming shortfall in the portion of the Highway Trust Fund that finances most roadwork. Congress approved an $8 billion injection into the fund as a short-term fix to keep the account solvent through the end of fiscal 2009 (E&E Daily, Sept. 8).

In the longer-term, Congress is also ramping up debate on the reauthorization of the current national surface transportation law -- the "Safe, Accountable, Flexible, Efficient Transportation Equity Act: a Legacy for Users," or SAFETEA-LU -- which expires in September of next year.

SAFETEA-LU guaranteed roughly $250 billion for the nation's roads, railways and public transit, and its reauthorization is expected to provide drastically more. State transportation officials last week asked Congress for $545 billion over the six-year duration of the reauthorization (E&ENews PM, Oct. 21).

The bulk of the nation's surface transportation infrastructure has long been funded by federal taxes on gasoline and diesel. But increased auto fuel efficiency, coupled with a decrease in miles traveled by American drivers, has left fuel tax revenues unable to keep pace with spending guaranteed in the current law.

Raising the gas tax has proven politically unpopular and, as expected, both presidential candidates Republican Sen. John McCain and Democratic Sen. Barack Obama have said they are against any plan that would raise the tax.

Other options that are being discussed include a variety of pricing schemes and user fees, as well as attempts to harness private investment through public-private partnerships.

Schedule: The hearing is Wednesday, Oct. 29, at 9:30 a.m. in 2167 Rayburn.

Witnesses: Doug Black, CEO of Oldcastle Materials Inc.; William Buechner, vice president of economics and research at the American Road and Transportation Builders Association; Brian Burgett, representing the Associated General Contractors of America; William Crosbie, chief operating officer of Amtrak; William Decota, director of aviation for the Port Authority of New York and New Jersey; Manuel Diaz, mayor of Miami, Fla., and president of the U.S. Conference of Mayors; Terry Dillon, National Utility Contractors Association president; Peter Drakos, president of Coastal Connect LLC; Judith Enck, New York deputy secretary for the environment; former Michigan Gov. John Engler, president of the National Association of Manufactures; Gary Gallegos, representing the National Association of Regional Councils; John Irons, research and policy director of the Economic Policy Institute; Tom Leyden, representing the Solar Energy Industries Association; Terence O'Sullivan, representing the International Union of North America; Maryland Secretary of Transportation John Porcari, representing the American Association of State Highway and Transportation Officials; and Beverly Scott, American Public Transportation Association chairman.