Climate bill to offer some money for transportation improvements

May 12, 2010
The Senate Climate Bill, which was introduced on May 12 by Sens. John Kerry (D-Mass.) and Joe Lieberman (I-Conn.), received some praises by those in the transportation industry, while others raised concerns.

Transportation is expected to receive more than $6 billion of the revenue produced by selling carbon emissions to fuel providers. The money will be divided three ways:

* One-third will go to the Highway Trust Fund, but the money must be used towards projects that will reduce greenhouse-gas emissions;

The Senate Climate Bill, which was introduced on May 12 by Sens. John Kerry (D-Mass.) and Joe Lieberman (I-Conn.), received some praises by those in the transportation industry, while others raised concerns.

Transportation is expected to receive more than $6 billion of the revenue produced by selling carbon emissions to fuel providers. The money will be divided three ways:

* One-third will go to the Highway Trust Fund, but the money must be used towards projects that will reduce greenhouse-gas emissions;

* One-third will go towards federal grants like the Transportation Investments Generating Economic Recovery (TIGER) program; and

* One-third will be used for CLEAN TEA planning.

The climate bill also calls for the U.S. DOT and the Environmental Protection Agency to propose national transportation-related greenhouse-gas goals within one year. Standards for local and city areas also must be established. State and local planners would have an additional two years to formulate emission-reduction strategies. Those who do not come up with the required framework will not be eligible for CLEAN TEA funding.

“The authors deserve high praise for ensuring that revenues generated from the transportation sector go in part toward meeting the growing demand for more, better and cleaner travel options,” Geoff Anderson, co-chairman of Transportation for America, said in a statement.

The American Association of State Highway & Transportation Officials, however, believe all the money generated from a “pollution tax” should go into the Highway Trust Fund.

“The Highway Trust Fund has been a reliable source of revenue for more than 50 years,” said John Horsley, AASHTO executive director, in a statement. “Today, however, the Highway Trust Fund is in trouble. Three transfers from the general fund have had to be made to the Highway Trust Fund over the past 18 months to keep it solvent. Meanwhile, the need for additional revenues to maintain and modernize our nation’s highways, bridges and transit systems keeps growing.

“The evidence is clear; Congress can ill afford to consider any legislation that preempts funding from the Highway Trust Fund which supports the vital transportation systems every American relies on.”

Many in Congress do not believe the bill, in it’s current form, has a chance of reaching the President’s desk. Senate Majority Leader Harry Reid (D-Nev.) doubts the measure will reach a vote in his chamber before the year is out.

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