Oberstar Eyes Ways to Ease Congestion, Confer 'Special' Issuing Abilities

ARLINGTON, Va. - Rep. James L. Oberstar, chairman of the House Transportation and Infrastructure Committee, said yesterday that he hopes to launch a program to create 30 "mega-projects" to ease congestion in urban areas that will give issuers or borrowers "special ability" to issue tax-credit bonds, tax-exempt bonds, and Garvees.

Speaking to the American Association of Highway and Transportation Officials, Oberstar said the program also would establish a public utilities authority to make sure the money for these mega-projects goes where it should.

The Minnesota Democrat's remarks to the group pertained to long-term infrastructure financing laws, running the gamut from airports to water and sewer sectors. He detailed some of his intentions for the upcoming surface transportation reauthorization bill, although did not say whether legislation setting up the mega-projects would be part of that bill, nor did he go into detail about the special ability for bond financing for the projects.

The country is in the midst of its biggest opportunity since the mid-1950s - when the interstate system and gasoline tax were created - to fix its infrastructure funding crisis, according to Oberstar. He added that how state governments spend their forthcoming stimulus funds "is a dress rehearsal for the next six years," or the expected duration of the next transportation funding reauthorization bill.

Earlier in the conference, Oberstar and the committee's ranking minority member, John Mica, R-Fla., admonished the White House for its statement that a mileage tax is not among financing options in President Obama's transportation policy. The White House remarks came after Transportation Secretary Ray LaHood said Friday that he believed the administration should consider a tax on vehicle miles traveled.

"Don't let him get slapped down by know-nothings," Oberstar said, encouraging AASHTO members to support LaHood's statement on a possible VMT charge. "Transportation policy is not going to be written in the White House" press office; it will be drafted in the House transportation committee, he said.

"In the long term, we're really probably going to have to go to VMT" charges, Mica said.

Mica also said he hopes for an expansion of two financing tools that encourage public-private partnerships.

He told reporters he would be looking to expand and make "more workable" access to private-activity bonds and financing through the Transportation Infrastructure Finance and Innovation Act. Private-activity bonds for transportation are currently capped nationally at $15 billion and are not included in state PAB caps.

The TIFIA program offers low-interest credit assistance to public entities and private investors for transportation projects and has recently been vastly oversubscribed. Its current annual budget authority is about $110 million.

Mica said he wants to allow "as much leeway and flexibility as possible" for public-private partnerships.

Earlier, Rep. John W. Olver, D-Mass., who chairs the House Appropriations Committee's transportation panel, said he expects the House to pass a 2009 omnibus bill very soon that, when combined with stimulus funding, will provide a sum total of about $70 billion of funding for highways.

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