Showing posts with label Peter DeFazio. Show all posts
Showing posts with label Peter DeFazio. Show all posts

Thursday, July 16, 2009

Why Is Obama Scared Of The Transportation Bill?

NOTE: We've moved! Visit us at the California High Speed Rail Blog.

by Robert Cruickshank

During the debate over the stimulus, it became clear that the Obama Administration planned to use the transportation bill reauthorization to offer the long-term changes in funding and modal priorities they had been promising. Unfortunately, the administration is getting cold feet on pushing the transportation bill this year, setting up a battle with two of the House's leading mass transit advocates, James Oberstar of Wisconsin and Peter DeFazio of Oregon (both are Democrats), as Streetsblog SF reports:

It's no secret that key leaders of the House transportation panel and the White House economic team don't get along -- from quips about shovel skills to a stimulus "shouting match," committee chairman Jim Oberstar (D-MN) and his top lieutenant, Rep. Pete DeFazio (D-OR), have become two of their party's leading Obama administration skeptics.

But the committee is now fighting a two-front battle, against an administration determined to put off a new six-year transport bill and a Senate that yesterday approved a "clean" 18-month extension of existing law.

Undaunted, Oberstar and DeFazio today pressed U.S. DOT undersecretary Roy Kienitz to clear one thing up: If the administration wants policy changes added to the 18-month stopgap, and if Kienitz agrees that the House bill's "goals are very similar" to the White House's, should the Senate be allowed to press on with its "clean" bill?

Kienitz answered carefully: "I don't think it's my place to try to make policy on that." A nonplussed DeFazio then wondered who would make policy on the transportation extension, if not senior DOT officials.

"I'm coming to learn that's a bit complicated," Kienitz said.

The problem is that the administration is skittish about the tax increases that would be necessary to fund the $500 billion bill Oberstar has worked out. Senator Barbara Boxer has offered support for indexing the gas tax to inflation, and DeFazio has proposed a 0.01 percent tax on oil speculators, but both are unpalatable to an administration looking at a major battle over taxes to fund the health care reform plan currently dominating the Congressional agenda.

Instead, Obama wants to extend the existing transportation bill for 18 months - kicking it into 2011, past the November 2010 elections. It's not exactly an act of leadership, but then this administration is making a mark for itself as being fundamentally reactive on virtually every major policy issue it is confronted with. Setting the agenda and systematically building support for it and selling it to lawmakers and the public - in other words, doing the stuff that every president has done since at least FDR - does not come naturally to the Obama Administration.

Oberstar is livid about the delay, but anger crosses party lines, with Ohio Republican Senator George Voinovich calling for at most a 12-month extension but would like Obama to get serious about the transportation bill itself. As Streetsblog's Elana Schor noted that the US Chamber of Commerce wants a new transportation bill and is willing to lobby to get it.

Another factor in the complicated fight is the fact that the highway trust fund is quickly becoming insolvent. This is not a new situation - it has been in trouble for nearly a decade owing to anti-tax sentiment - but it is another reason why an extension of the existing bill isn't itself a simple solution.

Ultimately the Obama Administration is going to have to resolve its budding identity crisis. Is it really an agent of change, as the inclusion of $8 billion for HSR in the stimulus indicated? Or is it dedicated to preserving the status quo, just without the insane misanthropy of the Bush-Cheney years? The transportation bill is one area where the administration is going to have to choose, and soon.

Saturday, June 20, 2009

The Next Federal Surface Transportation Program

NOTE: We've moved! Visit us at the California High Speed Rail Blog.






Rep. James Oberstar (D-MN)


Rep. John Mica (R-FL)


Rep. Peter DeFazio (D-OR)


Rep. John Duncan Jr. (R-TN)
On Friday, chairman Rep. James Oberstar (D-MN) and ranking member Rep. John Mica (R-FL) of the House Committee on Transportation and Infrastructure issued a press release and held a news conference on their blueprint for the next federal surface transportation program, described in a new committee report. They were joined by chairman Rep. Peter DeFazio (D-OR) and ranking member John Duncan Jr. (R-TN) of the subcommittee on Highways and Transit.

The event represents the kick-off for drafting the next iteration of the surface transportation bill, which typically sets priorities and secures funding for public works projects for a period of 5-6 years. Traditionally, it has also been a vehicle for members of Congress to "bring home the bacon" to their districts. This time, Oberstar and his colleagues want to use the opportunity to move away from prescribing specific projects (aka earmark pork) and toward a meritocratic system in which USDOT is instructed to evaluate competing grant applications. Those will have to be integrated into six-year strategic plans developed by the department and its counterparts at the state level, with annual performance metrics for each major project or program of smaller ones. It remains to be seen if members of the full House and Senate will be prepared to support this new philosophy.

In the hope that they will, the report details substantial reorganization objectives for USDOT such that it can execute evaluate programs and award grants according to legally binding procedures. For example, it calls for a new infrastructure bank within USDOT endowed with at least $50 billion for the six-year period that the new bill is supposed to cover. This money would be used to support strategic, sustainable investments in transportation systems, specifically High Speed Rail and (connecting) local transit. This would segregate public transportation funding from that reserved for highways, at least at the federal level. This new mechanism could essentially solve the federal component of funding California's HSR project. In addition, there would be a new Office of Project Expediting and also an Office of Livability, presumably charged with enforcing appropriate environmental mitigation for affected residents.

Secr. of Transportation Ray LaHood would like to focus his department on executing oversight of stimulus-related projects. He therefore asked Rep. Oberstar to extend current arrangements for 18 months by plugging a growing hole of at least $13 billion in the Highway Trust fund. However, Oberstar and his colleagues are unwilling to wait because they have concluded that the current system is broken.

The report's authors claim that over the past 30 years, many states simply haven't stepped up to the plate to fund their 20% of highway projects, never mind the 50% required until recently for rail and transit projects. As a result, available federal funds were not fully utilized. Perhaps the unspoken fear is that with the 2010 midterms approaching and the 2012 presidential election after that, any delay would make it even more difficult to pass legislation for a root-and-branch reorganization of USDOT. Of course, much the same is true of health care reform, financial re-regulation etc. The President's domestic agenda is already full, yet transportation infrastructure is a high priority in Congress.

The committee report calls for a total spending volume of $500 billion through 2015, of which 10% would go into the aforementioned infrastructure bank. Federal and state governments combined currently spend around $85 billion a year on transportation infrastructure, a sum the committee says is too small to maintain and expand the nation's aging systems and structures. It would like to see the number ramped up to $225 billion and then held at that level for the next 50 years. To fund the federal portion of this substantial expansion, the report calls for both federal and state gas taxes to be roughly doubled. Republicans in particular will presumably resist legislative efforts to implement that, though they may soon face a filibuster-proof Democratic majority in the US Senate.

Note that raising gas taxes to help fund rail and transit infrastructure construction is reasonable in that it reduces the pressure to keep adding lane-miles highways which are more expensive per passenger-mile of capacity, require far more land and lock in the country's arguably excessive dependence on oil.


by Rafael