David Heymsfeld, staff director for the House Transportation and Infrastructure Committee, described the six-year, $500 billion bill now pending before the committee. Heymsfeld said that its key objectives are to:

• simplify the programs;
• provide for performance standards and accountability;
• accelerate project delivery; and
• create new discretionary programs for freight delivery.

The problem with moving forward, he said, is that current revenue to the Highway Trust Fund is $60 billion to $70 billion short of even continuing the current program over six years, much less increasing funding to the levels recommended by AASHTO and two congressionally chartered commissions that have studied surface transportation investment needs. Heymsfeld noted that there are an "infinite number" of options from a gas-tax increase to new revenue ideas such as a tax on oil imports.

Heymsfeld also said that the Obama administration has yet to put its authorization ideas on the table. If that does not occur until after the November midterm election, it will be difficult to enact a bill this year, he said.

Tom Lynch, legislative assistant to Senate Finance Committee Chairman Max Baucus, D-MT, said some work has been done on a long-term authorization, although the committee has not publicly unveiled a draft. He said the Senate has not put out a bill because it foresaw the problem with not being able to pay for it. He noted that since current revenue can't even support the current program, there appear to be two options: painful program cuts or "growing the revenue to meet the goals" of a new program.

Lynch said he doubts there are sufficient votes in the Senate right now to increase the fuel tax that brings in the vast majority of Highway Trust Fund revenue.

There needs to be some thinking about the kind of infrastructure system America really wants, he said, noting there have been dramatic changes in trade and travel since the completion of the Interstate Highway System.

"We're not talking about the challenges," Lynch said. "If we could do that, we could recognize the national scope of the program, the shared contribution and shared receipts."

Lynch said it is possible for the Senate to be ready with a bill for action after the November election, and that such action would be preferable to carrying over the bill into the next Congress. Senate Majority Leader Harry Reid, D-NV, recently guaranteed Sen. George Voinovich, R-OH, that the chamber will vote on a long-term surface transportation authorization measure this year. (see Feb. 26 AASHTO Journal story)

Dan Tangherlini, assistant U.S. treasury secretary for management, said the Obama administration is willing to support an extension of the surface transportation programs through this calendar year. (The House approved such an extension Thursday -- see related story.) He also discussed the Build America Bonds program, a financing option that is providing funding for infrastructure investment including transportation.

Tangherlini noted the bonds program was approved last year as part of the American Recovery and Reinvestment Act. It has provided $71 billion in bonds, a total of 19 percent of the municipal bond market in the last year. He noted that the president had proposed an extension of the program as part of his budget request, with a change from the current 35 percent subsidy rate to a 28 percent subsidy rate. (The House bill approved Thursday also includes a provision to expand federal subsidies for Build America Bonds -- see related story.)