Capitol Agenda for the Week of March 7: Fuel Tax Pitch
The business community will tell Senate funding leaders on March 8 to raise taxes on fuel as a way to fund big-ticket infrastructure projects. Transport Topics spoke recently with the U.S. Chamber of Commerce’s director of transportation, Ed Mortimer, to help set the stage for the highly anticipated appropriations hearing in the Upper House.
Mortimer/U.S. Chamber of Commerce “The chamber has been a longtime supporter of increasing the gasoline tax. That’s not going to change,” Mortimer said. “Obviously, we haven’t raised it since 1993, so I doubt if we have every member saying, 'We’re ready to go on that,’ ” he said. “I don’t think we’re going to get that one. … Again, we’ve had two national commissions. We had more studies [than] known to man. If there’s a better way to do it, somebody would’ve already come up with it.” The chamber would consider other options besides increasing taxes on diesel and gas, as long as they provide long-term and sustainable funding for roadways, tunnels, bridges, pipelines and waterways. But, as Mortimer noted, “We haven’t found one yet that matches the ability of the gasoline tax to raise revenue for people that use the system.”
Senate transportation funding leaders heard from President Trump last week, who told them to pass a $1 trillion bill that would consist of public and private dollars. Sens. Susan Collins (R-Maine) and Jack Reed (D-R.I.) scheduled the hearing to commence the structuring of a $1 trillion infrastructure bill. Republican leaders have yet to endorse public-private partnerships, a nationwide fee on vehicle miles traveled or an increase in the gas and diesel tax. Democrats in the Senate, on the other hand, offered a blueprint for a $1 trillion infrastructure bill that would not rely strongly on private capital. Despite calls from the chamber, the trucking industry, and myriad freight stakeholders, Congress has refused to raise federal taxes on fuel dating to the Clinton administration. The taxes stand at 24.4 cents per gallon for diesel and 18.4 cents for gasoline. Improved fuel economy in recent years has cut into the revenue fuel taxes generate, leading Congress to supplement the trust fund. The American Society of Civil Engineers in 2013 indicated the country’s infrastructure had garnered a near-failing grade. The report card is published every four years, and the engineers will unveil the 2017 version March 9.
HOW P3s CAN WORK EVEN IN RURAL AREAS
While some lawmakers have expressed concerns about P3s being a solution in rural areas, Sarah Kline of the Bipartisan Policy Center discusses how they can and do work as a way to pay for infrastructure needs. Here's her discussion.
THE WEEK AHEAD (all times EST):
March 8, 9 a.m.: The Washington Post hosts a transportation and infrastructure workshop, featuring Sen. Sheldon Whitehouse (D-R.I.), Delaware Transportation Secretary Jennifer Cohan; acting Federal Energy Regulatory Commission Chairman Cheryl LaFleur; former Secretary of Transportation Ray LaHood; president of the American Association of Port Authorities Kurt Nagle; and David Strickland, a partner at Venable.
McConnell/Bloomberg News March 8, 10 a.m.: Transportation, Housing and Urban Development, and Related Agencies Subcommittee meets for a review of transportation infrastructure needs with Ed Mortimer of the U.S. Chamber of Commerce and Jim Tymon of the American Association of State Highway and Transportation Officials. (Watch Live)
March 8, 10 a.m.: House Subcommittee on Aviation meets to review concerns in air travel.
March 8, 12 p.m.: Cato Institute spotlights infrastructure priorities with former Virginia Transportation Secretary Shirley Ybarra; Michael Sargent, research associate at the Heritage Foundation; Alan Pisarki, independent writer and consultant; Peter Russo, director of congressional affairs at Cato; and Randal O'Toole, senior fellow at Cato.
March 9, 8 a.m.: Politico hosts an interview with Senate Majority Leader Mitch McConnell (R-Ky.).
March 9, 9 a.m.: The American Society of Civil Engineers unveils its 2017 infrastructure report card at the Newseum.
March 9, 10 a.m.: The House Subcommittee on Water Resources and Environment holds a hearing on water infrastructure.
IN CASE YOU MISSED IT:
NO 2018: Shortly after addressing state transportation directors March 1, House Transportation Committee Chairman Bill Shuster (R-Pa.) said he is hopeful Congress would take up an infrastructure funding measure this year, and not 2018.
GOVERNORS: A toolkit of options for financing big-ticket infrastructure projects is required to compensate for lack of federal funding, governors noted in a policy outline for 2017.
Great piece from @ASoergel @usnews With @realDonaldTrump infrastructure plan, the devil is in the details. https://t.co/d44YFjX7tX — Main Street Alliance (@mainstreetweets) March 2, 2017
WHAT WE’RE READING:
U.S. News & World Report’s Andrew Soergel analyzes Trump’s wish for infrastructure funds. As the writer put it, “the devil of these infrastructure plans is in the details, and lawmakers for decades have been unable to agree on exactly how to go about funding such projects.”
BUZZ:
About that list of 428 infrastructure projects governors recently sent to the White House... A firm involved in helping companies advance construction projects had been circulating a similar list before the governors’ list entered the picture. Both lists came up last week during a closed meeting on infrastructure at the White House.
FAVORITE QUOTE:
“We need more effective and efficient rail traffic, and we need better roads and a more effective truck transportation situation.”
— Rep. Bruce Westerman (R-Ark.) at the unveiling of an American Chemistry Council report on infrastructure March 1.
FAVORITE VIDEO:
Public-private partnerships is a topic Secretary Elaine Chao is familiar with. After Trump’s address to Congress, she explained P3s to Fox News talk show host Sean Hannity.
FAVORITE TWEET:
Come in and let’s dish about infrastructure. House Minority Whip Steny Hoyer (D-Md.) went over infrastructure concerns during a meeting with mayors last week.
Today I met with @usmayors to discuss the impact of #ACA repeal & investments in #infrastructure that are needed in cities across the U.S. pic.twitter.com/PCOeL4xcp3 — Steny Hoyer (@WhipHoyer) March 2, 2017
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