ARTBA Continues Push to Oppose Diversion of Transportation Revenues in Climate Legislation

May 24, 2010

ARTBA participated in a group press call today (5-19-10) with over a dozen different media representatives to explain the reaction of the transportation sector to the American Power Act (APA), which would divert transportation system revenues from the federal Highway Trust Fund (HTF).  The APA, introduced May 12 by Senators John Kerry (D-Mass) and Joe Lieberman (I-Conn), would generate substantial revenue from the transportation sector by imposing a requirement on oil companies to purchase emissions credits.  Of the revenue generated from the transportation sector, less than one-third, or a maximum of $6.25 billion annually, will actually return to transportation infrastructure investment with only a maximum of $2.5 billion annually going into the HTF.

ARTBA President and CEO Pete Ruane stated the APA was funding a lot of the APA’s goals “on the backs of transportation users” and stressed further that all revenues generated from fees on transportation system use should be put back into the HTF. Ruane also informed reporters that, “this is just the very beginning, no punches have been thrown, but make no mistake, we are in this fight for the long haul.”  Also on the call were representatives from the American Association of State Highway and Transportation Officials, the American Public Transportation Association and the Associated General Contractors.

ARTBA, along with 27 other transportation sector associations sent a letter to Senators Kerry and Lieberman May 18 explaining the APA’s proposed diversion of transportation-generated fees away from infrastructure reinvestment would severely hamper efforts to build and maintain our nation’s roads, bridges and transit systems. Specifically, the letter warned the APA “significantly undermines the user fee principle for financing federal transportation improvements that has served our nation and our economy well for more than 50 years.”  Further, the letter noted “a proposal that diverts user fees from motor fuels while our roads, bridges and transit systems are neglected is not sound policy.” The vast majority transportation-generated revenues would be used for a variety of non-transportation purposes, including: federal government debt relief; discounts for certain heating oil and electricity consumers; reforestation; subsidies for the energy manufacturing industry; and incentives for nuclear energy.

ARTBA continues to work with a diverse group of stakeholders to urge that any revenues generated from transportation users as part of the APA be exclusively dedicated to infrastructure improvements. ARTBA and our partners have met with nearly 40 Senate offices to deliver this message and supported these lobbying activities with print advertising in key Capitol Hill publications and will keep you apprised of developments as they occur.