Sen. Kay Bailey Hutchison has introduced a bill that would prohibit states, private parties and others from adding tolls on existing toll-free federal highways, bridges and tunnels built with federal funding.
The Texan, who's the top Republican on the Senate Commerce, Science and Transportation Committee, has consistently opposed efforts to toll federally funded roads, arguing that this amounts to a double penalty on motorists who are already paying for the roads through taxes.
"I believe taxing Americans twice for the same asset is fundamentally unfair, and I oppose any effort to place tolls on existing highways," she said in a statement released Thursday. "As we work to meet our transportation needs, we must think broadly and avoid band-aid solutions, like tolling, that will ultimately exacerbate congestion and divert traffic into residential neighborhoods and onto smaller, less safe roads."
The bill is a broader version of an amendment Hutchison persuaded Congress to add in 2007 to a fiscal 2008 appropriations bill that prohibits tolling of existing federal highways built with taxpayer dollars in Texas. That provision does not expire until after Sept. 30, 2009.
Hutchison's bills can thwart public-private partnerships, under which a state or local government typically contracts with a private company or consortium to build, renovate, operate, maintain and/or manage a road or other infrastructure project. Typically the government will enter into a long-term lease with the private party and receive an up-front payment.
In 2006, Indiana leased the Indiana Toll Road for 75 years to a private consortium in exchange for $3.8 billion. In 2005, Chicago leased its 7.8-mile Chicago Skyway in a 99-year deal for $1.83 billion. In each deal the private partner is responsible for operating and maintaining the roads over the life of the lease in exchange for collecting the tolls over the same period.
Bush administration officials pushed P3s as an ideal way for cash-strapped states to finance infrastructure development and improvements. But some lawmakers and market participants have been critical of P3 arrangements, claiming they often are based on overly optimistic projections and can benefit the private parties more than the government.
"The debate on tolling illuminates the broader need to reform the federal highway program," Hutchison said. "Its antiquated funding formula, which has made Texas a donor state, is no longer serving the best interests of each state and its motorists. Our national transportation mission should evolve to maintaining and improving infrastructure."
Last month, Hutchison introduced a bill that would allow states to opt out of the federal highway program, which doles out funding on a revenue-sharing basis. States opting out would receive a rebate on federal fuel taxes collected in their states. The bill is designed to ensure a dollar-for-dollar return on gas tax revenue generated by a state.
