TIME TO GET IT RIGHT: REAUTHORIZATION OF THE 2009 HIGHWAY BILL AND EXTENSION BIODIESEL TAX CREDIT

While many segments of the transportation industry would have preferred to see the 2009 Highway Reauthorization Bill completed and passed by its September 30, 2009 deadline date, it is not without reason that other significant and urgent national priorities, such as the national economy, health care, climate change, the economy and others have dominated the Washington legislature calendar.

However, there are several stark realities that Congress must consider when dealing with the highway reauthorization legislation, whatever the timeframe that is agreed upon between the White House and the Congress.

1. Congress, through its oversight process, must ensure that stimulus money being distributed for infrastructure projects is made available in a timely manner, that projects are expedited so work and jobs can be generated quickly, and that the funds are indeed being used for the transportation infrastructure projects for which they were allocated.
    
2. Congress must examine all the multitudes of facts that have been generated, studies and reports gathered in preparation for the enactment of the 2009 Federal Highway Reauthorization Bill. As Senator Boxer stated, "This must be a transformational bill." No longer can America rely on the tax on gasoline, diesel fuel and sale of trucks to fund the voluminous, urgent and critical needs of the Nation's antiquated and inadequate transportation infrastructure. The time is now for the Congress to understand, evaluate and come to consensus on the future funding mechanisms for improvement, maintenance and innovation in assuring that in future years America's transportation infrastructure can and will meet the needs of industry and consumers at home, and keep the United States competitive in world trade. A tax is a tax, is a tax. Congress should take the time, now, to explore other viable methods for financing transportation infrastructure and not kick the can down the road again.
    
3. Allow time for planning and implementation of the proposed National Transportation Infrastructure Bank. This is an important concept as the tax revenues from taxes on fossil fuels will decline in the years ahead as alternative fuels become more prevalent and available, and technology allows for the development of both more efficient cars and trucks. The commitment of Wall Street and Main Street to understand and invest in the National Transportation Infrastructure Bank is critical. This was one of the thoughtful and innovative components of the highway reauthorization bill already presented by the House Transportation and Infrastructure Committee when they released their "blueprint" in June 2009.
    
4. Due to the current state of the United States economy, the Congress could enact "emergency" short- term legislation to implement a modest surcharge on each barrel of oil imported into the United States and dedicate such funds to cover any future short falls in the federal highway trust fund, and help maintain bridges until a new highway reauthorization bill is enacted. This legislation would be sunsetted upon enactment of a new Highway Bill, containing new and innovative funding mechanisms for the nation's transpiration infrastructure system.
    
5. Require all federal government agencies to immediately evaluate the use and allocation of all fossil fuel burning vehicles owned and operated by such federal agencies to immediately and effectively adopt "transportation fuel reduction plans "that would reduce gasoline and diesel consumption. The savings from implementation of these plans would also be allocated to the dedicated fund to cover shortfalls in the federal highway trust fund and bridge maintenance until a new six-year highway reauthorization bill is enacted by Congress.
    
6. Congress must provide for tax incentives for the installation of new technology required legislatively or by regulation, on trucks for safety and productivity enhancement. The industry trucking is willing to make (often expensive) equipment changes and additions, but receives no incentives to ensure that both safety and productivity will occur without additional costs that negatively affect already thin profit margins in the trucking industry. This is an important legislative initiative as trucks transport over 70% of the freight moved in America every day, with 80 percent of America's dependent of truck transportation. These movements include over 90 percent of all produce transported daily in the United States.
    
7. Renew the $1.00 per gallon tax credit on renewable fuels - it is a significant investment in their continued development and will prevent the loss of jobs to an important and already successful growth industry.

All of these proposals would do virtually no harm to increase taxes on Americans who consume gasoline and diesel fuel.

Congress needs to realize that new methods of financing infrastructure, development and deployment of new and existing technology and the political will of the American people must be the hallmarks of any new highway reauthorization bill. The need to deal with this key component of America's economy has arrived, both by statutory requirement and critical necessity. Within a reasonable and wisely used time frame, it is time for Congress and the administration to act.

I sincerely hope that you all have a happy, safe and prosperous new year. I intend to continue to share my thoughts with you, several times during the year, on the Grammer website. If you have comments or observations about Grammer Industries or the trucking industry, please send them to me at shorty@grammerindustries.com

Be careful out there.

Shorty Whittington