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August 28, 2015

Posts in "Toll Roads"

March 16, 2015

Here’s The Need, Where’s The Money?

Sen. Kelly Ayotte, R-N.H., will chair a hearing on the TSA budget for FY 2016 Tuesday. (Photo By Chris Maddaloni/CQ Roll Call)

Sen. Kelly Ayotte, R-N.H., will chair a hearing on the TSA budget for FY 2016 Tuesday. (Photo By Chris Maddaloni/CQ Roll Call)

Congress is another week closer to the May deadline for re-authorizing highway and mass transit spending.

What that means: if lawmakers don’t pass an authorization bill before May ends, then the Highway Trust Fund would be paying out money to the states at a much slower pace than normal, which would hinder or halt projects during the spring and summer construction season.

This week most of the Obama administration’s transportation officials will be testifying on Capitol Hill at appropriations hearings.

Tuesday the Senate Commerce, Science and Transportation Subcommittee on Aviation Operations, Safety and Security hears from Melvin Carraway, acting administrator of the Transportation Security Administration about the Obama administration’s Fiscal Year 2016 TSA budget request and issues such as the effectiveness of the TSA’s Pre-Check program for trusted travelers.

The chairwoman of the panel is Sen. Kelly Ayotte, R- N.H., who is up for re-election in 2016.

Meanwhile the Federal Aviation Administration chief Michael Huerta will testify to the House appropriations subcommittee on Commerce, Justice, Science, and Related Agencies.

Also Tuesday, the House Transportation and Infrastructure Committee gets the state and local perspective from North Carolina Gov. Pat McCrory, Salt Lake City Mayor Ralph Becker, and  Wyoming Department of Transportation director John Cox.

On Wednesday, Transportation Secretary Anthony Foxx testifies before the Senate Appropriations Subcommittee on Transportation.

Finally on Thursday, the House Appropriations Subcommittee on Transportation hears from Gregory Nadeau, acting head of the Federal Highway Administration, Therese McMillan, acting head of the Federal Transit Administration, National Highway Traffic Safety Administration chief Mark Rosekind, and Maritime Administration chief Paul Jaenichen.

The administration witnesses are sure to make the case for budget certainty and for a long-term infrastructure funding solution. The latter is looking less and less likely in 2015.

February 25, 2015

How Oregon’s Pioneering Road Usage Fee Will Work

Mount Hood in Oregon (Photo by Craig Mitchelldyer/Getty Images)

Mount Hood in Oregon (Photo by Craig Mitchelldyer/Getty Images)

Jim Whitty is the evangelist for Oregon’s pioneering road user fee pilot program which begins on July 1.

Other states are watching how Whitty and Oregon conduct a 5,000-vehicle pilot program in which volunteers will pay a road usage charge of 1.5 cents per mile for the number of miles they drive, instead of the fuel tax. Drivers will get a credit on their bill to offset the fuel tax they pay.

Whitty, manager of the Office of Innovative Partnerships & Alternative Funding for Oregon’s Department of Transportation, is a wry, self-deprecating salesman for the program.

Full story

February 24, 2015

Vendors Look To Reap Revenues From User Fee System

Traffic in Los Angeles: a future revenue source for data vendors? (Photo: Gabriel Bouys/AFP/Getty Images)

Traffic in Los Angeles: a future revenue source for data vendors? (Photo: Gabriel Bouys/AFP/Getty Images)

The shift from the gasoline tax to mileage-based user fees which Oregon is launching this year, which California will be testing in 2017, and which other states may follow isn’t just a way for states to pay for transportation infrastructure, it’s a business opportunity for vendors such as Verizon Telematics and Sanef.

Telematics, data collection, and information technology companies envision a world in which, if drivers agree to turn over their driving data to the vendor, they get the benefits of:

  • usage-based insurance (which could give more precise evidence of one’s safety as a driver than current insurance systems);
  • remote vehicle diagnostics;
  • emissions reporting (without having to go into a state emissions station for onsite testing);
  • monitoring of teenage drivers in your family to make sure they aren’t going 95 miles per hour down the interstate highway.

Oregon’s pilot program involves only 5,000 vehicles and has three vendors running it. The state now is subsidizing those vendors.

Full story

Blumenauer: Replace Gas Tax With Road Usage Charge

Rep. Earl Blumenauer, D- Ore. (Photo By Tom Williams/Roll Call)

Rep. Earl Blumenauer, D- Ore. (Photo By Tom Williams/Roll Call)

Speaking to the second annual conference of the Mileage-Based User Fee Alliance on Tuesday, Rep. Earl Blumenauer, D – Ore., pitched the idea of pairing an increase in the gasoline tax with a pilot program to support state experiments in taxing drivers by how many miles they drive.

Oregon is launching a voluntary mileage-based fee program in July.

Blumenauer proposes a gas tax increase of 15 cents a gallon, phased in over three years and indexed to the Consumer Price Index. This “can be the last time Congress ever has to act to raise the gas tax. And then I want to get rid of the gas tax, because it doesn’t work over the long haul.”

Alluding to Oregon being the first state to impose a tax on gasoline in 1919 and the state’s current experiment with a mileage-based fee (also known as a vehicle-miles-traveled tax, or a road usage charge), Blumenauer added, “for ten years the state that gave you the gas tax has been piloting projects to show how you can get rid of it.”

Full story

February 23, 2015

Week Ahead: Tolling, Flight Tracking, Energy Shipping

Sen. James Inhofe, R- Okla., and Rep. Bill Shuster, R- Pa., will both address the AASHTO conference this week. (Photo By Bill Clark/CQ Roll Call)

Sen. James Inhofe, R- Okla., and Rep. Bill Shuster, R- Pa., will both address the AASHTO conference this week. (Photo By Bill Clark/CQ Roll Call)

It will be a busy week in Washington for transportation policy, with hearings, speeches, and panel discussions on everything from better tracking of airline flights to tolling on interstates.

Tuesday

The Mileage Based User Fee Alliance holds its second annual conference in Washington.

The Alliance includes state departments of transportation and contractors in the tolling business. Panelists will discuss such topics as California’s Road Usage Charge Pilot Program.

Full story

February 2, 2015

Obama Budget Plan Fills In Infrastructure Details

Crews work on a freeway overpass in Novato, Calif. (Photo by Justin Sullivan/Getty Images)

Crews work on a freeway overpass in Novato, Calif. (Photo by Justin Sullivan/Getty Images)

Last year President Obama said in his budget proposal that he wanted to use revenue raised from overhauling taxes on corporations to pay for infrastructure.

This year’s budget proposal will fill in the details of how Obama proposes to do that.

Essentially, according to administration officials, he seeks to impose a tax on foreign earnings that U.S. companies have earnings stashed overseas, ending the deferral that they now use to postpone paying taxes on that money.

We won’t know for months what, if anything, of this proposal will emerge from Congress. But momentum does seem to be growing to use overseas profits to help pay for highways and other infrastructure.

Full story

January 29, 2015

Governors Float Plan To Replace Notorious Bridge

President Obama speaks to a crowd in front of the aging Brent Spence Bridge over the Ohio River  in 2011 as part of his campaign for a job creation bill. (Photo by Matt Sullivan/Getty Images)

President Obama speaks to a crowd in front of the aging Brent Spence Bridge over the Ohio River in 2011 as part of his campaign for a job creation bill. (Photo by Matt Sullivan/Getty Images)

When a politician’s theme of the day is “aging infrastructure,” the default backdrop for the photo op is often the obsolete and overcrowded Brent Spence Bridge which connects Covington, Ky. and Cincinnati, Ohio.

On Wednesday Gov. Steve Beshear of Kentucky, a Democrat, and Gov. John Kasich of Ohio, a Republican, offered a plan to revamp the existing bridge, build a new bridge, and improve interstate approaches to the spans which cross the Ohio River.

The plan calls for:

  • Using a public-private partnership to design, build, maintain, and finance the project.
  • Splitting costs and toll revenues evenly between Ohio and Kentucky.
  • Providing a 50 percent discount in toll rates for frequent commuters.

According to governors’ statement, inflation is driving up the project’s cost (currently $2.6 billion) by $7 million every month.

Full story

January 28, 2015

Blizzard Economics Creates Winners And Losers

Snow covers a car in Cambridge, Mass. on Tuesday. (Photo by Maddie Meyer/Getty Images)

Snow covers a car in Cambridge, Mass. on Tuesday. (Photo by Maddie Meyer/Getty Images)

The blizzard that hit parts of the Northeast Tuesday may have been a bit of bust for New York City (9.8 inches in Central Park) and led to charges that Gov. Andrew Cuomo over-reached by ordering roads and mass transit to be shut down at 11pm Monday.

But the nor’easter dumped a lot of snow on places such as Southampton, N.Y. (29 inches) and Groton, Conn. (24 inches).

And according to the U.S. Travel Association, the cancelled flights cost the economy $230 million in passengers’ lost activity.

Each cancelled domestic flight costs the economy $31,600, according to a formula U.S. Travel researchers developed. The estimate is based on airline traffic and on-time data, air traveler behavior and other data collected through surveys, and U.S. Travel proprietary economic models.

The figure accounts for the passengers on more than 7,000 cancelled flights and the spending they would otherwise inject into the economy, but it does not calculate the impact on the airline industry.

Then again, storms such as Tuesday’s do create value for some people and some sectors of the economy.

In cities and towns from New Jersey to Maine there are tens of thousands of dollars spent on plowing and salting the roads. In one part of Massachusetts, hired contract plowers are paid $75 to $140 an hour. Full story

Left Versus Right On How To Build Infrastructure

Traffic on Interstate Highway 110 through downtown Los Angeles. (Photo: Joe Klamar/AFP/Getty Images)

Traffic on Interstate Highway 110 through downtown Los Angeles. (Photo: Joe Klamar/AFP/Getty Images)

Two sharply contrasting views of transportation policy were on display in Washington Tuesday.

Sen. Bernard Sanders, I- Vt., announced his Rebuild America Act, a $1 trillion, five-year plan to repair and build transit systems, bridges, highways, railroads, ports, the national electric power grid, and national parks.

He did not include financing proposals in the bill.

“What I wanted to do was focus on the need to build the infrastructure and not start the debate right away on how we fund it. There are many ways to fund it and honest people can have honest differences of opinion,” Sanders told reporters.

Sanders serves on the Environment and Public Works Committee which will be working on a highway reauthorization bill this year. He was skeptical about proposals to use repatriated profits of U.S. corporations now held overseas to pay for infrastructure.

He also said Sen. Barbara Mikulski, D- Md., the ranking member of the Appropriations Committee, is a co-sponsor of his bill.

Meanwhile, the limited-government, free-enterprise think tank, the Competitive Enterprise Institute, issued its 2015 legislative agenda.

Full story

January 27, 2015

CBO Reminder To Congress: Infrastructure Funding 101

House Speaker John A. Boehner has repeatedly rebuffed the idea of a fuels tax increase (Photo By Bill Clark/CQ Roll Call)

House Speaker John A. Boehner has repeatedly rebuffed the idea of a fuels tax increase (Photo By Bill Clark/CQ Roll Call)

In its annual budget and economic forecast Monday the Congressional Budget Office reminded members of Congress of some of the basics that set the bounds of the infrastructure debate:

  • While federal spending on highways and mass transit has been running at about $53 billion a year in recent years, “annual receipts from highway taxes, which are largely dedicated to the Highway Trust Fund, are projected to stay at $38 billion or $39 billion each year between 2015 and 2025….” Thus the shortfall is about $14 billion a year.
  • CBO predicts that over the long term gasoline consumption will decline, as vehicles’ fuel economy improves. This will “more than offset increases in the number of miles that people drive stemming from both population increases and real income gains per person.”
  • But just for this year, the drop in gasoline prices (down nearly 40 percent from this same point last year) will cause drivers to drive more miles, so CBO projects that “gasoline use and tax revenues will be roughly in line with last year’s figures….”
  • CBO predicts that oil prices will rise again later this year – a forecast which some private-sector economists and investors don’t agree with at all.

Full story

January 21, 2015

Infrastructure Funding Deal Not Yet Clear

President Obama arrives in the House chamber to deliver his State of the Union address on Tuesday night. (Photo By Bill Clark/CQ Roll Call)

President Obama arrives in the House chamber to deliver his State of the Union address on Tuesday night. (Photo By Bill Clark/CQ Roll Call)

What was not made clear in President Obama’s State of the Union speech Tuesday night was whether he’d be willing to sign a stand-alone bill to use profits of U.S. corporations now held overseas to pay for infrastructure.

Would he instead insist on a bill that included some of the tax increases that the White House sketched out over the weekend such as higher tax rates on dividends and capital gains?

Obama said Tuesday night that Congress must “close loopholes so we stop rewarding companies that keep profits abroad, and reward those that invest in America.”

The idea of using an overhaul of corporate taxes to come up with revenue for infrastructure was an element of his $302 billion Grow America Act unveiled last April.

But it’s an open question whether the president would sign a bill along the lines of the Partnership to Build America Act sponsored by Rep. John Delaney, D-Md. and Rep. Mike Fitzpatrick, R- Pa.

Sen. Roy Blunt, R-Mo., and Rep. Michael Bennet, D- Colo. have introduced a companion bill in the Senate.

The measure would let U.S. companies repatriate some of their overseas profits tax free if they invested them in infrastructure bonds.

Despite later in the speech lamenting the use of “gotcha” moments in politics, Obama took an opportunity to ding the proponents of the Keystone XL oil pipeline by saying “let’s set our sights higher than a single oil pipeline; let’s pass a bipartisan infrastructure plan that could create more than 30 times as many jobs per year” as the Keystone XL project.

Absent from Obama’s speech was any mention of the simplest, but politically unpalatable, expedient of raising the gasoline tax to pay for a new infrastructure bill. Obama did not join the chorus of those saying, ‘why not raise gasoline taxes since the price at the pump is now so low?’

As infrastructure advocates wait for the repatriation-for-infrastructure details to be worked out, their goals haven’t changed.

As American Road & Transportation Builders Association president Pete Ruane said Tuesday night, what they seek is “a long-term revenue stream to ensure state governments have the reliable federal partner they need to make overdue improvements to America’s roads, bridges and transit systems.”

And Patrick Jones, CEO of the International Bridge, Tunnel and Turnpike Association, said Obama and Congress ought to give states “greater flexibility to meet their individual transportation funding needs—including the right to use tolling on their existing Interstate highways for the purpose of reconstruction.”

January 19, 2015

Week Ahead: Obama Agenda Setter And New Governors

Maryland Governor-elect Larry Hogan, at the microphone, flanked by other newly elected governors outside the White House after meeting with President Obama on Dec. 5, 2014.  (Photo by Chip Somodevilla/Getty Images)

Maryland Governor-elect Larry Hogan, at the microphone, flanked by other newly elected governors outside the White House after meeting with President Obama on Dec. 5, 2014. (Photo by Chip Somodevilla/Getty Images)

This week features the president’s attempt to steer the agenda with his State of the Union address, as well as a focus in Washington on unmanned aerial vehicles. That industry and members of Congress impatiently await a proposed rule on commercial drone use from the Federal Aviation Administration.

Tuesday

At the National Press Club in Washington, the Small UAV Coalition holds a discussion and drone demonstration with industry representatives including Jesse Kallman, head of business development and regulatory affairs at the flight control software maker Airware and Lucas van Oostrum, co-founder and chief technology officer at Dutch drone manufacturer Aerialtronics.

Full story

January 16, 2015

A Look Back At Our Week: It’s Just Congestion All Over

Traffic jam in Mill Valley, Calif., this one caused by rain and flooding. (Photo by Justin Sullivan/Getty Images)

Traffic jam in Mill Valley, Calif., this one caused by rain and flooding. (Photo by Justin Sullivan/Getty Images)

Congestion. Transportation planners spend their lives analyzing it and trying to devise ways to relieve it.

Especially with lots of transportation wonks in Washington this week for the 94th annual meeting of the Transportation Research Board, we heard much expert discussion about congestion on the highways, in our cities, and at our seaports.

On the highways, HNTB’s congestion pricing guru Matthew Click gave us his thoughts on why the San Francisco Bay area is the most interesting place in country in 2015 to watch for development of toll lanes.

Once you exit the highway and arrive in the big city, you may face the question: where can I find a place to park?

We heard from urban planners at the TRB meeting who find that, in fact, parking is much over-supplied in many cities. Maybe not in midtown Manhattan at high noon on a weekday, but in small and mid-sized cities.

Full story

Gasoline Tax Increase Not Gaining Momentum

House Ways and Means Chairman Paul Ryan, right, with Speaker John A. Boehner, before the 114th Congress was sworn in on the House floor, Jan. 6, 2015. (Photo By Tom Williams/CQ Roll Call)

House Ways and Means Chairman Paul Ryan, right, with Speaker John A. Boehner, before the 114th Congress was sworn in on the House floor, Jan. 6, 2015. (Photo By Tom Williams/CQ Roll Call)

“We won’t pass a gas tax increase,” House Ways and Means Committee chairman Rep. Paul Ryan told reporters Thursday at the Republican retreat in Hershey, Pa.

That was almost immediately after he said, “We would like to have a long-term highway bill, but we’ve got to see how we can for pay it.”

Ryan left the door open to a corporate tax overhaul that might raise revenue for infrastructure, an idea which last year he said has merit.

So, for the major players on the Republican side, here’s an updated scorecard on their recent comments on infrastructure financing:

Full story

January 15, 2015

Tolling Expert Sees Bay Area as Place to Watch in 2015

This week we asked Matthew Click, vice president and director of priced managed lanes for HNTB, an infrastructure design and construction management company, what he thinks will be the most interesting place in country in 2015 to watch for development of toll lanes and congestion pricing.

Click’s choice: the San Francisco Bay area.

Here are the points he made: Full story

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