Letter to House-Senate Conference Committee for TEA-21 Reauthorization

June 13, 2005

TO HOUSE-SENATE TEA-21 REAUTHORIZATION CONFEREES: The U.S. Chamber of Commerce, the world's largest business federation representing more than three million companies and organizations of every size, sector and region, has formulated policy principles for the conference committee to consider during reauthorization of the Transportation Equity Act for the 21st Century (TEA-21). The Chamber believes that this legislation is critical for economic growth, safety, and quality of life and must be completed promptly at maximum funding levels.

The attached statement of principles is strongly supported by the U.S. Chamber, and I ask that conferees consider these ten principles that highlight the importance of surface transportation to the business community and the need to build on the success of TEA-21.

A top priority for the U.S. Chamber is ensuring the utilization of all highway user generated revenues for highway and public transportation investment. We believe the Senate-approved funding level of $295 billion meets that objective.

TEA-21 established new budgetary rules to create a "firewall" or funding guarantee to ensure that highway user taxes are fully invested for their intended purpose of improving our nation's surface transportation infrastructure. This landmark policy change must be maintained as well as the historical highways and public transportation revenue split.

A second priority area that the U.S. Chamber would like addressed in TEA-21 reauthorization is accelerating transportation project delivery. In response to frustration with the lengthy permitting process for delivering transportation projects, TEA-21's Section 1309, Environmental Streamlining, established a coordinated review process for the Department of Transportation to work with other federal agencies (and state agencies where applicable) to ensure that transportation projects are advanced according to cooperatively determined time frames. Unfortunately, the intent of Congress has not been followed and needs to be further addressed in the conference committee.

A third priority area that needs to be addressed is intermodal freight projects. The reauthorization provides an opportunity to meaningfully address system congestion, capacity, and productivity issues. To compete in the global marketplace and provide our citizens the mobility they demand, TEA-21 reauthorization must include provisions that will allow for the improvement of connections among all transportation modes. This increased emphasis on intermodalism will build on programs that highlight intermodal freight projects for improved funding in TEA-21.

The conference report must provide for regulatory flexibility on issues such as the Hours-of-Service regulations for the short-haul industry, as well as address conformity issues.

Finally, the U.S. Chamber strongly urges conferees not to include a House-passed provision that would mandate a fuel surcharge in the trucking industry, as well as "pay-to-play" language that would contradict federal transportation procurement regulations.

The U.S. Chamber is prepared to work with you to ensure a reauthorization measure that is completed quickly, provides adequate funding to meet the nation's growing transportation needs, and includes provisions that allow the transportation planning and approval process to operate in a more efficient manner. Please let me know if I can be of any assistance as the reauthorization debate moves forward.

Sincerely,

Thomas J. Donohue

Enclosure

RECOMMENDATIONS TO CONFEREES ON TEA-21 REAUTHORIZATION

All highway user fees must be deposited into the Highway Trust Fund and spent exclusively on authorized transportation purposes. Congress must maintain the current guaranteed budget firewalls as well as the historical highways and public transportation revenue split. We support maximum funding levels in the conference report.

In order to meet surface transportation needs, the federal government must streamline the project review and approval process to ensure the completion of transportation infrastructure improvements in a timely and environmentally sound manner.

Transportation capital needs far exceed available public funding. Therefore, support for initiatives that foster public-private partnerships should be expanded to finance, build, and manage transportation projects, where feasible and equitable. Examples include the Senate Private-Activity Bond and Build America Corporation provisions.

States should not be allowed to interject in federal contracting practices for highway and public transportation projects. For example, we oppose "pay-to-play" language in the House version of H.R. 3.

Conformity and other environmental rules and regulations should use sound science, involve a more streamlined process, and provide common sense flexibility and limits on frivolous lawsuits. The conference report should also provide incentives for communities to move out of non-attainment.

The federal government should continue to allow the free market to determine fuel surcharges in the trucking industry. We oppose Section 4139 in the House version of H.R. 3.

We support the Administration's proposal to codify the current Hours-of-Service rule. We also support an adjustment for short-haul drivers that recognizes their unique type of driving.

We support new programs for freight projects, including Freight Gateways, the Freight Intermodal Connectors Program, and Projects of Regional and National Significance. Also, we support increased funding for grade crossings.

We support using new technologies to assist with a strengthened fuel fraud program.

We support a House-passed provision that would create a national standard to clearly exclude non-negligent vehicle renting and leasing companies from liability for the actions of a customer operating a safe vehicle.