The National Surface Transportation Policy and Revenue Study Commission met on Oct.18-19 in Washington, DC to hear presentations on the economics and federal policy implications of congestion pricing, and the growing role of public-private partnerships (PPPs) in addressing future transportation infrastructure and financing needs. Presenters included economists; transportation policy analysts; federal state and local government officials; and an environmental advocate, investment consultant and representative of a global transportation infrastructure construction firm.

Congestion Pricing: Congestion pricing is the use of variable financing mechanisms and highway use restrictions to moderate demand for highway use during peak periods, thereby reducing congestion. Examples of congestion pricing options include High Occupancy Vehicle (HOV) lanes, High Occupancy Toll (HOT) lanes, imposing new or increasing existing tolls during peak periods, and area-wide pricing for metropolitan regions.

Presenters argued that gasoline taxes price fuel use, not highway use and, therefore, do not influence drivers' decisions about how and when to use roads or send clear market signals to guide capital investment in system improvements. According to one speaker, highway capacity will always be inadequate as long as highway use is perceived to be free. Congestion pricing, he said, can be compared to peak load pricing used by electric utilities. Moderating power demand during peak usage times reduces the likelihood of brown-outs for consumers. Similarly, moderating highway demand during rush hours will reduce congestion without necessarily requiring expanded infrastructure.

The public's view of gasoline taxes as a user fee has diminished and the political liabilities associated with raising them is beginning to outweigh the advantages. How we pay for our transportation systems affects how we use them, which in turn clearly dictates the needs of those systems with respect to operation, maintenance and improvements. In the absence of such clear signals, investment in transportation infrastructure has become increasingly ad hoc as, one presenter noted, is evidenced by the mushrooming of earmarked projects in federal transportation legislation.

The commissioners asked numerous questions regarding the economic impacts of congestion pricing on low-income users and businesses, its adequacy as a revenue-raising tool, available technology, and issues raised by the inevitable diversion of traffic onto non-priced alternate routes. They also discussed how increased reliance on congestion pricing - largely state or locally managed - would affect funding of the current federal transportation funding program which has a redistributive element (i.e., donor/donee states).

Public-Private Partnerships (PPPs): Representatives of several governmental entities explained the history, mechanics and economics of their transportation partnerships with the private sector. While the speakers agreed that PPPs are not suitable for all projects and governments, each argued the wisdom and success of their specific endeavor. In particular, they argued that entering into the partnership allowed the governmental entity to receive upfront a large infusion of cash that would enable them to reduce debt and invest in economic development.

The commissioners expressed skepticism about "getting money out of thin air." They questioned the speakers extensively on a wide range of issues including the long-term economic implications of PPPs and their role in a national transportation system. They also wanted to know why the public sector could not manage their transportation systems as effectively and profitably as the private sector.

The next meeting of the Commission is a field hearing in New York City Nov. 15-16. The hearing is sponsored by the Americans for Transportation Mobility (ATM) and the Transportation Construction Coalition (TCC), both coalitions to which NSSGA contributes, as well as the Council of Northeast Governors. NSSGA members and staff continue to work with its SAFETEA-LU task force chaired by NSSGA Second Vice Chairman Mike Stanczak to develop recommendations with our ATM and TCC coalition partners on a plan for SAFETEA-LU reauthorization.

ROCKPAC TRUSTEES MAP ROAD AHEAD

The ROCKPAC Board of Trustees met on Oct. 30 in Northern Virginia to map out its strategy for the 2007 ROCKPAC fundraiser, as well as for the remainder of the decade. The trustees have set a goal of raising $1 million over a two-year election cycle starting with the 2010 elections. In addition to growing the number of companies that authorize ROCKPAC to solicit contributions from their employees, the trustees focused on increasing the recognition given to ROCKPAC donors within the association, additional events at other NSSGA meetings throughout the year as well as creating new tiers for participation. If you are a company's official representative who has not yet granted prior approval to NSSGA, please contact the Government Affairs Division to find out how you can participate.

ROCKPAC was featured in the Oct. 30 issue of Engineering News-Record (ENR) as being one of the country's top construction industry players in the current election cycle.

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ELECTION DAY IS JUST A WEEK AWAY! THERE IS NO GOOD EXCUSE NOT TO VOTE!

Next Tuesday, Nov. 7, is Election Day when control of both houses of Congress is up for grabs. Many of these races will be decided by a number of votes smaller than the number of employees working at NSSGA member companies in those states. Your vote and those of your colleagues can make the difference - literally!

NSSGA's political program is your "one-stop" place for everything you need to vote. Just access the NSSGA Election '06 "Vote for Aggregates Business" web site via the Government Affairs Division section at www.nssga.org. There you can register to vote, request an absentee ballot, learn who the candidates are and how they have voted on business issues in the past, locate your polling place, and much more.

More than ever, it is crucial for business to play a key role in electing those who will govern us. NSSGA's "Vote for Aggregates Business" project has made this easier than ever before.Just click on the logo below to get started today and don't forget to spread the word to your coworkers to register and vote!

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THERE IS LESS THAN TWO WEEKS UNTIL THE GOVERNMENT AFFAIRS/COMMUNITY RELATIONS FORUM! HAVE YOU REGISTERED YET?

Register today for the Government Affairs/Community Relations Forum, Nov. 12-14 at the Radisson Plaza Lord Baltimore hotel in downtown Baltimore, Md. NSSGA's Government Affairs/Communications & Community Relations Forum is tailored to meet the needs of aggregates industry professionals who represent their operations before the public, the media, elected officials and community leaders.

NSSGA has extended its special room block rate of $125.00 until this Friday, Nov. 3 at 5:00 p.m. EST. Register on-line or call 1-800-333-3333 to make your reservations.

The forum will provide new and advanced tools to produce more effective communications and has been designed specifically for the employee who wears more than one hat in his or her organization. In addition to the communications tools, there'll be sessions dealing directly with issues that predominate in the aggregates industry, including permitting; local, state and federal government relations; land use and your local government.

Well known and respected authorities such as crisis communications consultant Janine Reid, permitting guru Mike Saint and grassroots specialist Amy Showalter will walk you through state-of-the art strategies for dealing with the everyday challenges you face. Through these expert-led sessions, seasoned communications and government affairs professionals as well as beginners can learn about the newest techniques.

The Forum will also offer a VIP "Behind the Scenes Tour " of The Rocks Gallery at the Smithsonian's National Museum of Natural History. This exclusive tour will take you into the research halls of the Smithsonian Institution to learn and view first-hand some of the "rocks" that have had a beneficial impact on mankind's quality of life.

Contact Patricia Maeder with any questions at 703-526-1078 or visit our website at http://www.nssga.org/calendar/CCR-GA-1106.

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