U.S. House Committee on Transportation and Infrastructure
U.S. Rep. Don Young, Chairman

Contact:  Steve Hansen (Director of Communications)  (202) 225-7749
 Email: Steve.Hansen@mail.house.gov
     Justin Harclerode (Deputy Director of Communications)  (202) 226-8767
  Email: Justin.Harclerod@mail.house.gov

To:  National Desk/Transportation Reporter
September 19, 2002

Strengths Of TEA 21 Must Be Built Upon For Reauthorization, Say Transportation Stakeholders;
Streamlining Project Delivery, Recapturing Funds Lost To Ethanol Included In Reauthorization Proposals

        Washington, D.C. – During a Congressional subcommittee hearing today, a number of transportation stakeholders presented their proposals and priorities for reauthorizing the federal highway and transit aid programs, which expire in 2003.

        The House Highways and Transit Subcommittee conducted its 14th hearing of the year on the topic of reauthorizing the Transportation Equity Act for the 21st Century (TEA 21).

“Every Group Here Today Plays An Important Role In National Transportation Policy” – Chairman Petri

        “Every group that is represented here today, along with many who are not here, plays an important role in forming or implementing national transportation policy,” said U.S. Rep. Tom Petri (R-WI), Chairman of the Subcommittee.

        “Also, each of these national organizations has developed a comprehensive proposal for reauthorization of the highway, transit, and safety programs that were authorized in TEA 21, which expires on September 30, 2003.  We commend these groups for being ready for reauthorization and not lagging behind the curve.”

“TEA 21 Works”

        Witnesses at today’s hearing included representatives of state and local governments, the transit and road construction industries and their users, business, and labor unions.  Priorities for reauthorization varied, but the general consensus of the panels of witnesses was that the current law has proved to be effective transportation policy.

        “TEA 21 works,” said Bill Millar, President of the American Public Transportation Association.  It has “effectively improved the industry’s ability to meet demands for capital investment and service.”

        Witnesses agreed that the strengths of TEA 21 should be kept in place as the Subcommittee prepares new the legislation over the next year.  Guaranteed funding levels that keep pace with the nation’s growing transportation needs, strong local and state roles in transportation decision-making, and flexibility in the use of funds to allow decision makers to meet the various demands particular to their regions were some of TEA 21’s principles that were highlighted.

        Witnesses also discussed the necessity for a timely reauthorization.  “It is vital that a replacement bill be enacted by September 30, 2003 so that the spending authority does not lapse and jobs are not jeopardized,” said Paul Diedrich of Associated General Contractors of America.

Witnesses Propose Transportation Programs’ Growth

        Some proponents of growing the highway and transit programs offered suggestions for how this could be done.  The American Association of State Highway and Transportation Officials proposed a private Transportation Finance Corporation that would be authorized to issue tax credit bonds in order to meet their goal of increasing the highway program to $41 billion, and the transit program to $10 billion, annually by 2009.

        The American Road and Transportation Builders Association (ARTBA) proposed annual increases of up to two cents in the federal motor fuels excise to make up for a predicted shortfall in highway spending by 2009.  “Our proposal is a logical evolution of the concept embraced by Congress in TEA 21 of directly linking annual highway investment to the user fee revenue stream,” said ARTBA 2002 Chairman Tom Hill.

        A number of witnesses also highlighted the need to recapture Highway Trust Fund receipts lost in ethanol fuels subsidies and transfers to the General Fund.  Losses to the Trust Fund due to ethanol’s tax treatment are estimated to be $4 billion per year by 2012.

Suggested Improvements For TEA 21 Reauthorization

        Expediting transportation programs and project delivery was a common theme among witnesses’ testimony today.  “All the money in the world will not help if we are not efficient in the planning and approval for much-needed improvement projects,” said Rolf Lundberg of the U.S. Chamber of Commerce.

        The safety, economic and environmental costs of congestion were also explored at today’s hearing.  The American Highway Users Alliance and the National Association of Counties (NACo) spoke of the need for increased roadway safety, especially on rural roads.  “Focusing on the roadways themselves may be the one area where there is the most room for improvement in highway safety,” said Highway Users President Bill Fay.

        Local government groups – NACo, the National League of Cities, the Association of Metropolitan Planning Organizations, the Surface Transportation Policy Project – advocated a stronger local role in the transportation planning process.

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