Pit & Quarry, September 2012

HIGHWAY B ILL MAP 21 A By Loretta SorenSen fter 33 months of deliberation Congress approved and President Obama signed into law the new surface transportation bill Moving Ahead for Progress in the 21st Century Map 21 on July 6 Essentially the new bill reauthorized current funding levels with inflationary increases to total 105 billion for fiscal year 2013 and 2014 MAP 21 extends the current law through Sept 30 2012 The new law goes into full effect Oct 1 2012 and authorizes programs through Sept 30 2014 In a July 17 summary of the new bill The U S Department of Transportation Federal Highway Administration described the bill as streamlined performance based and multimodal noting that the bill will address U S transportation challenges that include improving safety maintaining infrastructure condition reducing traffic congestion improving efficiency of the system and freight movement protecting the environment and reducing delays Among the criticisms of MAP 21 is the fact that the current 184 cents per gallon federal gas tax doesnt provide enough funds for current highway program needs in project delivery While the new bill is far from revolutionary it restructures the highway program around core highway formula programs Activities carried out under some existing formula programs the National Highway System Program the Interstate Maintenance Program the Highway Bridge Program and the Appalachian Development Highway System Program are incorporated into the following new core formula program structure National Highway Performance Program NHPP Surface Transportation Program STP Congestion Mitigation and Air Quality Improvement Program CMAQ Highway Safety Improvement Program HSIP Railway Highway Crossings set aside from HSIP Metropolitan Planning four core programs MAP 21 consolidated the number of federal programs from about 90 to less than 30 in an effort to focus resources on key national goals and reduce duplication of programs The new bill also provides for expediting project delivery while Some say the new legislation is a temporary patch for a transportation infrastructure program loaded with potholes protecting the environment A new title called America Fast Forward strengthens the Transportation Infrastructure Finance and Innovation Program TIFIA to leverage federal dollars further than they have been stretched before A focused freight program in the new bill is intended to improve movement of goods Highway Trust Fund history The Highway Trust Fund HTF has been the source for funding most highway programs since it was established in 1956 The HTF funds highways and transit The 1956 Highway Revenue Act mandated a tax of 3 cents per gallon The tax increased to 4 cents in the 1950s 9 cents in 1983 14 cents in 1990 and 184 cents in 1993 Discussion regarding increasing the gas tax has occurred during debate of the past two authorizations of the bill That discussion is expected to continue In 1986 Congress created the Leaking Underground Storage Tank LUST Trust Fund to address releases from federally regulated underground storage tanks USTs The trust fund is financed by a 01 cent tax on each gallon of motor fuel sold nationwide Some of those funds have been diverted to the HTF to cover revenue shortfalls Critics of MAP 21 Among the criticisms of MAP 21 is the fact that the current 184 cents per gallon federal gas tax doesnt provide enough funds for current highway program needs Rather than cut spending totals Congress has made changes to pension rules in addition to using money from the LUST Trust Fund to make up for shortfalls When MAP 21 expires in 27 months Congress will again face the question of how to deal with the funding shortage When it comes to gasoline prices the U S Energy Information Administration reports that about 76 percent of current gas costs come from oil purchases The refining process adds another 6 percent to the cost Distribution and marketing puts an additional 6 percent cost on a gallon of gas The remaining 58 PIT QUARRY September 2012 www pitandquarry com ISTockPHoTo coM evA SeRRABASSA