Committee Meeting Information

May 30-31, 2007

Room 302, State Capitol

Cheyenne, Wyoming

 

Committee Members Present

Senator Michael Von Flatern, Co-Chairman

Representative Dave Edwards, Co-Chairman

Senator Gerry Geis

Senator John Hastert

Senator Wayne Johnson

Senator Michael Von Flatern

Representative Stan Blake

Representative Floyd Esquibel (May 30^th)

Representative Timothy Hallinan

Representative Debbie Hammons

Representative Mike Madden

Representative Jim Slater

Representative Kevin White

Representative Dave Zwonitzer

 

Committee Members Absent

Representative Floyd Esquibel (May 31^st)

 

Legislative Service Office Staff

Gerald W. Laska, Staff Attorney

Matthew D. Obrecht, Staff Attorney

 

Others Present at Meeting

Please refer to Appendix 1 to review the Committee Sign-in Sheet
for a list of other individuals who attended the meeting.

Executive summary

The Committee met for two days in Cheyenne, Wyoming. The committee heard testimony on the first day regarding Department of Transportation issues, with the primary focus being on Interstate-80 funding. No legislation was requested to be drafted or voted upon.

 

The Committee continued hearing testimony regarding Interstate-80 issues on the second day. Drafting requests were proposed for bills on the following topics:

                        - A bill to allow WyDoT to let contracts for design build.

                        - Limit the number of hours a school district bus driver can drive.

                        -Tolling on Interstate-80

                        - Creation of a fuel sales-tax

                        - Fuel tax increase of 10 cents a gallon

                        - Increase of driver's licenses fee to $30

                       

                       

 

Call To Order (Wednesday, May 30, 2007)

Co-Chairman Edwards called the meeting to order at 8:35 a.m..  The following sections summarize the Committee proceedings by presenter.  Please refer to Appendix 2 to review the Committee Meeting Agenda.

 

Emerson Scott III, Chairman Wyoming Transportation Commission

 

Mr. Scott and Del McOmie, Chief Engineer WyDoT, presented a DVD presentation to the Committee concerning truck and passenger vehicle usage on I-80 which outlined the expected rate of growth of truck traffic and expected $3.8 billion funding shortfall for I-80.

 

Mr. Scott stated that he was pleased the committee invited representatives from Nebraska, Utah, the federal government, the American Trucking Association, and the Union Pacific Railroad to the meeting and appreciated the fact that the committee recognized that funding for I-80 was a national problem. Mr. Scott discussed possible funding sources for I-80 including tolling,  moving more freight traffic back onto the railroads, raising the caps placed on WyDoT's share of mineral royalties, raising the fuel tax and raising the cost of administrative fees (driver's licenses) to cover the true cost of those items. Mr. Scott finished his presentation by stressing that WyDoT has been hit with what he termed "the perfect storm" to create a funding crisis: a decrease in state and federal revenues appropriated to highway construction, at a time of significant inflation in the price of construction materials. Mr. Scott thanked the legislature for $100 million additional appropriation while indicating the need for a long-term funding solution.

 

John Cox, Director, Wyoming Department of Transportation

Director Cox applauded the legislature for its commitment to transportation funding, as evidenced through the additional appropriation for fiscal year 2007-08.  Director Cox believes the state would not have met the ten percent federal funding requirement without the additional appropriation.  Director Cox outlined the evolution of WyDoT's funding stream since 1991 and emphasized that the department and the legislature have been slow to adapt to the change in funding. Now WyDoT is not looking to expand highways, but is merely attempting to maintain existing highways. There is a debate occurring on the national level as to what role the federal government should continue to play in highway funding. Director Cox believes that all states, including Wyoming, will have to become more engaged in the funding of their highways. The projected cost of maintaining I-80 in the next thirty years will be at least $6.4 billion with a high of $8.8 billion if a third lane of concrete is added. The federal contribution for the entire state highway system over the next thirty years is expected to total only $6.2 billion. Director Cox emphasized that the department, the Governor's office and the legislature must all come together to ensure the federal government continues to fund I-80 and that, at the state level, WyDoT has a continuing, reliable funding stream.

 

Director Cox listed the options the state has to toll I-80 and distributed a letter from the United States House of Representatives Committee on Transportation and Infrastructure (Appendix 3) cautioning the states not to enter into any public/private partnership (PPPs) agreements that are not in the "public interest".

 

Committee members generally discussed with Director Cox the discrepancy in fuel costs in Wyoming as compared to other states with higher fuel taxes, the advantages and disadvantages of a fuel tax as a percentage of the total sale cost as compared to set tax per gallon, to better reflect an increase in inflation and the cost to drive a tractor-trailer across Wyoming.

 

Rep. Hammons moved that the committee draft a letter to Wyoming's Congressional delegation and a bill for a resolution to Congress to continue and increase federal funding for highways. The motion passed unanimously on voice vote.

 

Del McOmie, Chief Engineer, Wyoming Department of Transportation

 

Mr. McOmie began his presentation by distributing two memoranda (Appendices 4 and 5) concerning the I-80 Phase Two Study and three funding alternatives for I-80. The I-80 Phase Two Study is being proposed to The Federal Highway Administration by the I-80 States from California east to Illinois, the Port of Oakland, the American Trucking Association and the Union Pacific Railroad. If approved, the study will attempt to outline funding alternatives as well as modal shift possibilities for the I-80 corridor. The three funding alternatives contained in the second memoranda are: 1) U.S. 30 Bypass Route, 2) Alternative Route (construction of a 4 lane highway across a large portion of the state, and 3) I-80 tolling. The bulk of the memo is devoted to tolling.

 

Mr. McOmie displayed a PowerPoint presentation entitled "Strategic Analysis for I-80" (Appendix 6).  The presentation showed that freight traffic from four west coast ports converges onto I-80 in Utah, creating a "bottleneck" of freight through Wyoming. Mr. McOmie related his belief that discussions between the UP, various states and the FHWA may result in more freight being shifted from trucks to rails.  These discussions may represent a shift in the Union Pacific's position and a realization that increased intermodal business may increase profits. A twenty percent decrease in truck traffic would avert 31,000 crashes and 800 deaths along the I-80 corridor from Oakland to Chicago over a 30 year period.  Mr. McOmie discussed the bonding, tolling and payback options for I-80 through Wyoming (a bond issue of $200 million would accrue $39 million on a six year payback or $14 million a year on a 20 year payback cycle). Mr. McOmie has been approached by three private companies, two of those foreign corporations, inquiring about Wyoming's interest in selling I-80 to be operated on a toll basis, similar to the Indiana Tollway.

 

Committee members asked Mr. McOmie about tolling options, the possible location of a UP intermodal center, and general questions regarding I-80.

 

Shelley Reams, Administrator, Wyoming Department of Transportation Aeronautics Division 

 

Ms. Reams gave an overview of the "Fly Wyoming" campaign and showed the committee television commercials promoting the campaign.

 

The committee asked Ms. Reams about air service in Worland, the number of Essential Air Service (EAS) airports in Wyoming, and the cost of airfares from Wyoming airports.

 

Kevin Hibbard, Budget Officer, Wyoming Department of Transportation 

 

Mr. Hibbard distributed the "Operating Budget Presentation, October 1, 2006-September 30, 2007" (Appendix 7). Mr. Hibbard stated that WyDoT's expected revenues for fiscal year 2007 are $605,288,129. Anticipated revenues by source:

 

·         Federal government – 45%

·         General fund – 19%

·         Fuel taxes – 12%

·         Royalties/Severance Taxes – 12%

·         Vehicle registration and fees – 10%

·         Miscellaneous – 2%

 

The revenues will be allocated as follows:

 

·         Highway improvement – 58%

·         Maintenance/Operations – 19%

·         Aeronautics – 7%

·         Law enforcement – 6%

·         Regulatory/Admin expenditures – 2%

·         Other expenditures –8%

 

There is a total of $82, 245,989 in highway funding available to cities, towns and counties.  Mr. Hibbard discussed the increased cost in maintenance when projects are delayed and the disparity between fuel taxes assessed in Wyoming and in neighboring states.

 

Co-Chairman Edwards introduced an overview of the Union Pacific's Intermodal Services (Appendix 8), submitted by Dick Hartman, who was unable to attend the meeting.

 

Sharon Gostovich, Fuel Tax Program Manager, Wyoming Department of Transportation 

 

Ms. Gostovich presented a PowerPoint to the committee outlining the fuel tax accountability program (Appendix 9).  Ms. Gostovich spoke about the statutory changes made to fuel tax collection and thanked the committee for their hard work getting those bills passed. She explained to the committee that a fuel tax is imposed at each transfer starting "at the rack" and continuing through each broker.

 

 

Meeting Recess

The Committee recessed at 4:35 p.m.

 

Call To Order (Wednesday, May 30, 2007)

Co-Chairman Barrasso called the meeting to order at 8:00 a.m.  The following sections summarize the Committee proceedings by presenter.  Please refer to Appendix 2 to review the Committee Meeting Agenda.

Tim Lynch, Senior Vice President, Federal Relations and Strategic Planning, American Trucking Association

 

Mr. Lynch distributed to the committee a document titled "Defining the Legacy for Users: Understanding Strategies and Implications for Highway Funding" (Appendix 10). Mr. Lynch stated that highway funding was at a crossroads, with the issues to be resolved including: 1) What is the proper role of federal, state and local partnership, and 2) How will the system be financed. The American Trucking Association (ATA) continues to believe that the primary highway funding mechanism should be the fuel tax, but acknowledges that there must be alternatives. Mr. Lynch related to the committee that:

 

·         Trucks haul 89% of freight volume nationally

·         The freight hauled by trucks is 84% of freight by revenue (that figure does not include "in-house" haulers.

·         Tonnage shipped by truck is expected to increase by 31% in the next 10 years.

·         Intermodal rail will increase 71% by 2017, but will still only account for 2% of total tonnage shipped.

 

Mr. Lynch stated that the trucking industry was against tolling, believing it disproportionately  impacts small trucking companies and that the funds collected do not benefit the highway system as a whole. He related various recent tolling projects in the Midwest and their impact.

 

Committee members asked Mr. Lynch about tolling if a "truck only" lane was provided, speed limit differentials for passenger vehicles and trucks and triple trailers. Mr. Lynch told the committee that ATA favored an 68 mile per hour governor being placed on all new semis produced, but Sheila Foertsch from the Wyoming Trucking Association (WTA) stated that WTA opposes differentiated speed limits.

 

Jim Reed, Transportation Program Director, National Conference of State Legislatures

 

Mr. Reed displayed a PowerPoint presentation titled "Transportation Funding: Options for Wyoming" (Appendix 11).  He stated that Wyoming would need to triple its fuel tax to keep up with inflation. Mr. Reed discussed the four types of public-private partnerships (PPPs) and the benefits and obstacles to each one. He also stated that Wyoming was one of only eight states that does not issue bonds to finance highway construction. Mr. Reed listed other highway funding options that states are implementing.

 

Committee members asked Mr. Reed about local funding, whether E-470 in Colorado was paying for itself and design build.

 

John Craig, Director, Nebraska Department of Roads

 

Director Craig distributed  a portfolio of materials to the committee concerning highway funding in Nebraska (Appendix 12).  Director Craig reported that Nebraska's highway system had $9.2 billion in identified needs while only $6.2 billion in revenues available. Nebraska Department of Roads revenues are primarily from state and federal taxes. Nebraska is usually in the top 10 or 15 in the amount of fuel tax assessed. Historically, Nebraska had received approximately 1/3 of its highway funds from the federal government, but federal funding now accounts for 45% of total Department of Roads (DOR) funding. Declining revenues, coupled with a rising inflation for construction has resulted in a decline in the number of projects authorized by DOR.  Nebraska has explored the use of tolling and PPPs but they have not passed a cost/benefit analysis to date. Director Craig explained the difference in terminology as used by DOR between "maintenance" and "preservation", with "preservation" being defined as maintenance plus replacing worn-out structures. Director Craig believes this distinction allows for a greater retention of current net asset values.

 

Other Business

Co-Chairman Barrasso asked the committee for bill drafting ideas. Sen. Von Flatern requested LSO staff to draft bills to allow WyDoT to let contracts using design build principles and to enact tolling along I-80. Rep. Hammons requested a bill that creates a fuel sales tax.  Sen. Johnson requested a bill that limits the number of hours a school bus driver may operate a bus. Co-Chairman Barrasso expressed his belief that such a bill would be outside of the committee's approved interim topics, though Sen. Johnson was confident Management Council would approve that topic.  Rep. Hallinan and Senator Geis requested various research documents concerning highway funding.  Rep. Madden requested a bill to increase the fuel tax ten cent per gallon over a three year period.  Rep. White requested a bill to increase driver's license fees to $30.

 

 

Upon adjournment, committee members toured Wyoming Highway Patrol Dispatch and a few members participated in a ride-along with troopers from the Wyoming Highway Patrol.

 

 

Meeting Adjournment

There being no further business, Co-Chairman Barrasso adjourned the meeting at 12:30 p.m..

 

 

 

Respectfully submitted,

 

 

 

 

 

Representative Dave Edwards, Co-Chairman

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Appendix		Appendix Topic		Appendix Description		Appendix Provider
1		Committee Sign-In Sheet		Lists meeting attendees		Legislative Service Office
2		Committee Meeting Agenda		Provides an outline of the topics the Committee planned to address at meeting		Legislative Service Office
3		States use of public-private partnership agreements		Letter from U.S. House of Representatives, Committee on Transportation and Infrastructure to WyDoT Director John Cox discouraging Wyoming from entering into PPPs that do not serve "the public interest".		WyDoT/ Cox
4		Memoranda on I-80 Phase Two Study		Describes the process being undertaken to have the FHWA conduct a study of the I-80 corridor between Oakland and Chicago		WyDoT/McOmie
5		Memoranda on I-80 alternatives		Describes the pros and cons of various alternatives for I-80		WyDoT/McOmie
6		Strategic Analysis for I-80		Overview of freight traffic on I-80 through Wyoming, projections of freight traffic in the future, and options for I-80 funding.		WyDoT/ McOmie
7		WyDoT Operating Budget, Fiscal Year 2007		Describes WyDoT revenues and allocations for fiscal year 2007.		WyDoT/Hibbard
8		Union Pacific Intermodal Service		Provides an overview of the Union Pacific's current and expected intermodal freight service.		Union Pacific/Hartman
9		Fuel Tax Accountability Program		PowerPoint of fuel tax accountability program		WyDoT/Gostovich
10		Defining the Legacy for Users: Understanding Strategies and Implications for Highway Funding		American Trucking Association's highway funding executive summary		ATA/Lynch
11		Transportation Funding: Options for Wyoming		Describes various options utilized by other states to fund highway projects		NCSL/Reed
12		Funding and Projects of Nebraska DOR		Portfolio containing various publications of the Nebraska DOR		Nebraska DOR/Craig