Dedicated Revenue Mechanisms for Freight Transportation Investment (2012) / Chapter Skim
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Pages 114-143
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A-1 Introduction The study team reviewed existing literature and domestic and international experience to facilitate the preparation of an annotated list of potential freight funding and financing mechanisms to be considered. The literature review is organized into five sections: • Infrastructure Funding and Program Needs • Existing Revenue Sources and Proposed Changes • Major Financing Sources • Specific Revenue Proposals • Public-Private Partnerships Infrastructure Funding and Program Needs To provide some perspective on the deficiencies in real investments in highways overall, it is useful to refer to the facts presented in a U.S.
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A-2 Questions such as how much money is needed and what is the believed magnitude of funding shortfalls compared to the physical capacity needed to move future traffic flows expeditiously are addressed by various studies, and their main findings in this regard are summarized in Figure A-1 from the National Surface Transportation Financing Commission Report (2009)
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A-3 Highway Fee Structure and Revenues Table A-1, from FHWA, summarizes the existing federal user fee (tax) structure for fuels, tires, sales, and use taxes (FHWA, Mar.
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A-4 addition to tax rate stagnation. The four categories below have direct relevance to changes that the ATRI study suggests in the Highway Trust Fund as well as the choice of alternative revenue options for freight infrastructure (ATRI, 2007)
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A-5 • Consolidation of numerous programs to focus resources on key national goals and reduce duplicative and wasteful programs. • Consolidation of numerous programs into a more focused freight program that will improve the movement of goods.
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A-6 (National Surface Transportation Policy and Revenue Study Commission, Jan.
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A-7 the most tolling agreements (18) , with Texas at 11 and California with 5.
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A-8 vehicles willing to pay a fee and that the implementation of TOT lanes could provide potentially significant congestion reduction in the region. The report also identified some difficulties implementing TOT lanes, including possible difficulties with construction and challenges with public perception, particularly for the scenarios where HOV lanes are converted to TOT lanes.
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A-9 Container Entry Fees Although widely discussed, there are no container fees in place to generate infrastructure revenue. Port authorities and the marine terminals that operate under their jurisdiction assess a mixture of tariff-based and negotiated fees for handling marine cargo.
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A-10 funding issues and concerns for the future have come from AASHTO and the U.S. Chamber of Commerce, via its affiliated publishing entity, the National Chamber Foundation (NCF)
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A-11 retroactively capture the increase in fuel costs since 1993 is the most remunerative revenue option. The revenue estimates are different in the two reports, primarily due to the differences in the time period considered for revenue generation and slightly different assumptions underlying the estimates.
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A-12 (see Table A-6) based on an evaluation using weighted criteria (see Table A-7)
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A-13 ways, and almost two-thirds said the same about reducing accidents and improving safety. By contrast, not quite half of respondents placed a high priority on reducing traffic congestion or expanding public transit service.
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A-14 The National Surface Transportation Policy and Revenue Study Commission, in Transportation for Tomorrow (Dec.
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A-15 • Importers and the White House Office of Management and Budget continue be opposed to customs carve-out" (CALMITSAC, 2006, p.
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A-16 • Equity means that a tax should be structured so as not to unduly discriminate among segments of the industry, large and small carriers, interstate and intrastate operations, or modes of transportation. A relatively objective test for the equity of a proposed tax, however, is whether it discriminates against a part of the industry in favor of another part, or against trucking as opposed, say, to rail.
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A-17 and loaded vehicle miles, the differences between actual vehicle tire weight and vehicle weight class, the treatment of government and service vehicles, or the carriage of lading that is not weighted. Furthermore, a freight ton-mile tax raises significant modal equity questions that are not addressed by the current literature in any detail.
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A-18 between the carrier and the receiver; the carriers have great difficulties passing toll costs to receivers; and, in the few cases where toll costs could be passed, the pricing signal reaching receivers is of no consequence compared to receivers' incremental costs of off-hour deliveries" (Holguin-Veras and Silas, 2008, p.
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A-19 • VMT fee on all roads or only on Interstates and NHS routes. • VMT fees with or without congestion pricing or other Traffic Demand Management (TDM)
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A-20 an annual VMT fee based on the estimated mileage for the vehicle class (e.g., passenger vehicles vs. commercial trucks)
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A-21 During 2006 and 2007, the Oregon Department of Transportation (ODOT) conducted a pilot project in the Portland area, funded by the state, of the first of the three types of VMT fees (mileage metering based on fuel consumption)
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A-22 13% to support investments in clean energy and energy efficiency; and 10% for domestic adaptation, worker assistance and training, prevention of deforestation, and international adaptation. The remainder (3% of allowances)
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A-23 Tolls One of the most detailed discussion of tolls in the surveyed literature is also the most negative in its implications for congestion, pollution, and accidents (ATRI, 2007)
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A-24 legislation to allow private investments in highway projects. In 1987, Congress approved a pilot program authorizing (approximately)
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A-25 build contracts, design-build-operate-maintain contracts, costplus-time bidding, construction manager-general contractor, and construction-manager-at-risk (Fishman, 2009)
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A-26 Advantages of PPPs The motivation for use of PPPs has consistently been a desire to benefit from the efficiencies from private-sector competition and to enlarge the funding for increasing the supply of public infrastructure. Also, where technology permits, PPPs allow a fee-for-service mechanism to make users pay for this infrastructure as they use it in the form of tolls (partially or fully privatizing public infrastructure)
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A-27 of Missouri's Safe and Sound Bridge Improvement Program. Charging for services is now more feasible for roads than it has ever been historically, particularly with technologies for vehicle tracking and automated billing, including fees tied to VMT, type of vehicle, type of roadway, and time of use (Hillestad et al., 2009)
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A-28 tax bracket)
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A-29 California Association of Councils of Governments (CALCOG) , Letter to Susan Binder, September 7, 2007.
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A-30 Parsons, Brinckerhoff, Quade, & Douglas, Inc., Truck Only Toll Facilities: Potential for Implementation in the Atlanta Region, 2005. Perez, Benjamin G., and James W
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