The Surface Transportation Authorization Act of 2009: A Blueprint for Investment and Reform.

House Transportation and Infrastructure Chairman James Oberstar unveiled the “Surface Transportation Authorization Act of 2009: A Blueprint for Investment and Reform” in June and declared that it would bring transformational change. 

Included in the bill is a plan to reorganize the US Department of Transportation, including consolidation of multiple programs and offices and focus on a more efficient transport network for freight and transit.  Also included in the legislation is the establishment of an infrastructure bank as well as a new undersecretary for intermodal programs responsible for policy and cooperation across several transportation modes under DOT’s purview. 

The bill is the result of three years of bipartisan work in the committee and would call for approximately $500 billion in transportation spending over the next six years, while leaving the detail work of developing a funding formula to the Ways & Means Committee.

Oberstar is quick to point out that because of under investment in transportation the total cost of logistics for U.S. companies has increased from 8.8% of gross domestic product in 2004 to 10.1% in 2008 – a $412 billion increase in four short years.          

“States need to include freight delivery systems in their transportation networks and in their transportation plans,” Oberstar said.

The Surface Transportation Authorization Act of 2009 was quickly dealt a major roadblock. Transportation Secretary Ray LaHood delivered the news to Capitol Hill in late July that the Obama Administration supports an 18-month delay in consideration of a Transportation Authorization Bill.  At that same time, the Administration wants to stabilize the Highway Trust Fund with a $20 billion infusion of funds before the current authorization expires September 30. The Senate subsequently approved a $7 billion short-term rescue for the Highway Trust Fund.     

While Oberstar’s legislation has bipartisan support, indeed Ranking Member John Mica appeared with the Chairman at the press conference announcing the bill’s rollout, it is a different story on the Senate side.  Two key Senators; Barbara Boxer of California, Chair of the Senate Environment and Public Works Committee and Max Baucus of Montana and Chair of the Finance Committee announced their support for the Administration’s proposed 18-month delay.

At this point, it seems unlikely that Congress will substantively address Highway Reauthorization prior to the Congressional mid-term elections of 2010.