POLICY & ADVOCACY

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>>> Federal Legislation and Regulation

Highway Funding Mechanisms

Today, federal motor fuels tax revenue deposited into the Highway Trust Fund (HTF) pays for expansion and repair of the nation's interstate highway system as well as federal aid to other important pieces of transportation infrastructure, such as bridges and tunnels. By 2009, the HTF is scheduled to fall into deficit as revenues will not be able to cover simple maintenance and existing federal transportation program costs.

As part of the current federal transportation funding bill, signed into law in 2005, Congress created the Surface Transportation Policy and Revenue Commission to make policy recommendations to improve federal aid to transportation programs. Proposals have been forwarded to rely on non-gasoline tax revenues to meet these needs. The Waterfront Coalition opposes efforts to earmark Customs duties and place a fee on international shipping containers to help pay for transportation infrastructure

  • The Waterfront Coalition's testimony before the Surface Transportation Policy and Revenue Commission
  • The Waterfront Coalition's testimony on the use of non-traditional sources of transportation revenue

"Projects of National and Regional Significance"

The current surface transportation funding bill, known as SAFETEA-LU, outlines federal aid to the nation's interstate highways as well as other important infrastructure projects such as bridges, tunnels and mass transit programs. Historically, projects designed to promote mass transit have received the majority of funding leaving few funds to promote freight mobility.

The current transportation funding bill includes a provision called the "Projects of National and Regional Significance" designed to channel federal funds to transportation projects that promote cross-border and other international freight according to strict criteria. In January 2007, the Department of Transportation issued a rulemaking changing the criteria used to identify projects by granting the Transportation Secretary the ability to rank projects based on need and economic significance.

"Freight Rail Infrastructure and Expansion Act"

The need to move freight of all kinds, everything from coal, grain, automobiles and intermodal containers, has grown steadily while freight infrastructure has remained unchanged. The enormous capital costs of freight rail infrastructure hinders the ability of rail providers to expand network capacity. The Waterfront Coalition supports legislation granting a twenty-five percent federal tax credit to freight rail infrastructure investors as an incentive to expand network capacity for all freight rail users.

Federal Re-Regulation of Freight Rail Service
A group of freight rail users that have access to only a single Class I rail provider ("captive" shippers) support legislation that would cap rates and establish minimum levels of service. This could force rail providers to raise rates and reduce service for non-captive shippers, such as intermodal customers, just to meet the demands for captive shippers. The Waterfront Coalition opposes re-regulation.

"Framework for National Freight Policy"

On January 17, 2006, the Office of the Undersecretary for Policy at the Department of Transportation issued its "Framework for a National Freight Policy". The document calls for a greatly expanded role for the private sector, including cargo owners, to help identify important goods movement projects. The Framework also calls for more non-federal funding, including the use of toll roads and other "public private partnerships", to pay for these projects. Finally, the Framework supports collaborative efforts among private sector stakeholders to make more efficient use of existing infrastructure.

The Waterfront Coalition supports the "Framework" and continues to work with the Department of Transportation on goods movement funding priorities and with the cargo community to identify best practices to promote freight mobility.

Food and Drug Import Restrictions

On September 30th, House Energy and Commerce Committee Chairman John Dingell introduced the Food and Drug Import Safety Act (HR 3610) in response to continued media coverage of food import concerns. The bill contains provisions that would force food and agriculture importers to pay a user fee to fund Food and Drug Administration inspections and eliminate major ports-of-entry for food and agricultural items. The Waterfront Coalition opposes these provisions


>>> State Legislation and Regulation

Opposition to Broad-Based Container Fees

The Waterfront Coalition opposes efforts to place taxes and fees on containers to pay for undefined transportation projects or other public policies. Legislation introduced in the California legislature recently would impose a $60 container fee levied on cargo owners to pay for undefined transportation projects as well as many clean air initiatives.

"Goods Movement Action Plan"

On May 19, 2006 California voters approved a ballot initiative that allows the governor to raise over $3 billion in bond revenue to pay for transportation infrastructure to promote the movement of international commerce through the state. According to the "Goods movement Action Plan", $1 billion of this total must be earmarked for clean air projects. The Waterfront Coalition supports greater public spending on goods movement projects.

>>> Local and Regional Issues

"Clean Air Action Plan"

In November 2006, the ports of Los Angeles and Long Beach jointly issued its "Clean Air Action Plan" that lists all available policies to reduce emissions at the port by ocean vessels, trucks, trains and yard equipment. In April 2007, the ports issued their first policy to reduce truck emissions by creating a concession for licensed motor carriers. According to the published plan, only those motor carriers that maintain a fleet of at least 40 clean burning trucks and use employee drivers in place of contract drivers may receive a license to move cargo through the port. As of December 2007, both ports also jointly issued their "Clean Truck Fee" that would impose a $70 container fee on beneficial cargo owners to pay for a fleet of clean trucks.

The Waterfront Coalition opposes this concession system for regulating truck emissions and the Clean Truck Fee to pay for a fleet of clean trucks. The Waterfront Coalition, along with other industry groups, issued a White Paper supporting stricter statewide truck emission standards as an efficient means to reducing truck borne emissions at the ports of Los Angeles and Long Beach.

Port of Los Angeles Rail Policy

In April 2004 the Los Angeles Port of Harbor Commissioners passed a resolution endorsing the need to promote more use of rail services to move freight through marine terminals as a means to alleviate road congestion and reduce truck emissions. The policy specifically calls for efforts to promote more on-dock services and develop more near-dock rail yards. The Waterfront Coalition supports the Rail Policy and promotes efforts on the part of industry stakeholders to make better use of rail services.