Tuesday, September 7, 2010



MISSION
The International Bridge, Tunnel and Turnpike Association (IBTTA) is the worldwide alliance of toll operators and associated industries that provides a forum for sharing knowledge and ideas to promote and enhance toll-financed transportation services.

Advocacy

IBTTA Contact:  Neil Gray, 202.659.4620, x14. 

Congress Approves Short-term Highway Trust Fund Fix
Recent Congressional activity has been strongly driven by the calendar, with the House adjourning on July 31 for a month-long recess while the Senate remains in session for one more week before taking the rest of the month off. With many pressing and high profile issues needing attention, the earlier adjournment of the House created a difficult situation for the Senate, which would be in a position to either accept various House approved positions or accept the blame for issues, which would have to be deferred until the House’s return at the end of the month.
 
The imminent financial collapse of the Highway Trust Fund (HTF) has been one of the well-known hanging issues, with public announcements from the federal Highway Administration that reimbursements to the States for funds the states have already expended would be cut back by mid-August unless additional funds are added to the pot. This issue is completely independent from the highway program authorization, though the urgent need for a financial “fix” has been used to bolster arguments to move a renewed highway program sooner than later.

On July 29th the House of Representatives approved HR 3357 which provides $7 billion from the general fund for the Highway Trust Fund, as well as extending the Unemployment Trust Fund and increasing authority for the Federal Housing Administration’s main mortgage assistance programs.

The administration has been promoting a $20 billion infusion to the trust fund, which would defer the pressing need for a highway bill for 18 months or so, after the mid-term elections next year. The Senate was largely supportive of this plan.
The House Transportation & Infrastructure (T&I) Committee had initially strongly opposed any funding extensions, hoping that anxiety would drive an earlier renewal of the highway bill. This view changed during the course of the week reflecting several truths:

  • it has become clear that the authorization package won’t move quickly; 
  • the imminent cut-back in FHWA funding generated enormous consternation among the State DOTs; 
  • and funding cutbacks threaten to derail earlier stimulus funded transportation projects (which have already proved slower to generate jobs than many hoped or expected)   

Chairman of the House T&I Committee James Oberstar first agreed to a $3 billion bailout, then $5 billion (the first level would have kept the HTF solvent only until the end of August, the second would be enough for solvency through the end of the Fiscal year (Sept. 30). Ultimately the Senate made it clear they would only consider an extension funded at $7 billion (possibly enough to carry through to the end of the calendar year) so the House agreed to this level before approving the package last Wednesday.

The House debate and approval occurred under special rules which limited debate and ignored points of order about budget violations but the Senate has a harder time restraining debate on these issues and a special set of rules was crafted to move the package while the House was still in session (a needed hedge in case the Senate couldn’t clear the $7 billion package). Several unsuccessful Senate amendments were offered seeking to pay for the bail-out from as-yet unspent stimulus funds before the Senate approved the bill on a 79-17 vote.

This action avoids a mid-vacation shut-down of the highway program but leaves open the greater question of how quickly a renewed highway program can and should be enacted. The House T&I Committee continues to press for such an approval this year though the Administration and Senate have been favoring a short-term extension of the current SAFTEA-LU program until the fall of 2010 (after the mid-term elections). The largest sticking point is how to pay for even the current program (which was purposely overfunded compared to anticipated revenues) without significantly increasing fuel taxes – generally viewed as a political non-starter for everyone involved.
 
California “Cool Cars” Regulations May Impact ETC Use
 
The California Air Resources Board (ARB) issued regulations last month that would require 2012 model year vehicles to reduce solar heat passing through the vehicle windows (front, sides and rear) by 40 to 50%. Though the regulations don’t specify how this is achieved, the 2012 model year vehicles will begin their manufacturing cycle starting next year and the quickest way to achieve solar heat reduction will be through the use of metalicized window films.
There is a known history of issues with the use of window mounted electronic toll collection devices and metalicized window films.  It also turns out that these regulations will have serious repercussions for cell phones, PDA’s (Blackberries), personal navigation devices (GPS), vehicle mounted devices that use RFID (tire pressure sensors, etc), electronic manacles, etc.
Clear areas can be established in window films (deletion areas) that would allow clearer reception for RFID devices and typically they are placed by the rear view mirror mounting but there is no required standard for manufacturers to observe and there will be economic impacts for the manufacturers since the creation of a deletion zone adds to cost and would also increase the solar load on the vehicle, possibly requiring heavier shielding on the rest of the windows.
The regulations would require a 60% reduction in solar load for vehicles in the 2016 model year.

While this is a California-only issue at the moment – one has to be concerned about the tendency of other states to adopt California environmental standards as well as the potential that the size of the California automotive market might force decisions on the vehicle manufacturers to either offer or simply install similar treatments on vehicles in other regions of the country.

A Cool Cars Coalition has been established in California consisting of GPS, cell phone, automobile manufacturers and others who are working to establish just how disruptive window films may be for the various impacted devices and services with the intent of providing as much input as possible to the ARB staff who are now focused on implementing the regulations. There may be an opportunity to offer testimony/comments on potential amendments to the regulation but the base language has been adopted and apparently the ARB rarely if ever backs away from their decisions.

Members of the coalition are working on getting samples of the metalicized films and or windows so that they can test and document the impacts on various devices. There is interest in testing ETC devices as well and I would recommend that ETC device manufacturers and integrators may want to become active with these California efforts.

The main point of contact for the coalition is:
Carol Livingstone
Greenberg Traurig, LLP
Phone: 916-442-1111, ext. 3021
Email: LivingstonC@gtlaw.com

ARB will hold a workshop on Sept. 17, 2009 in El Monte, California to “inform interested parties about the “Cool Cars” regulatory requirements, solicit input from affected parties as to the most effective way to craft the performance-based option and associated procedures, and discuss related issues.” Additional background materials and a workshop agenda will be available at the workshop and on ARB’s cool cars website.

For more information, please contact Neil Gray at 202-659-4620, ext. 14.