DOT's FY 2012 Budget Request Would Fund Infrastructure, Mexican Truck Resolution, Set Hazmat Fees

$50M to Support U.S.-Mexico Trucking, Inspections, Improve Border Facilities

The budget requests $50.4 million to support cross-border inspections and resolution of U.S.-Mexico cross border long-haul trucking commitments. $5 million of the requested funds would be dedicated to initiate a multi-year strategy for improving facilities along the U.S. - Mexico border.

(In January 2011, DOT proposed a solution to end the U.S.-Mexico cross-border trucking dispute, following Mexico’s imposition of retaliatory tariffs² due to U.S. termination of the U.S.-Mexico Cross Border Trucking Pilot in March 2009. DOT said it expected to issue a formal proposal in the coming months. See ITT’s Online Archives or 01/07/11 news, 11010715, for BP summary of DOT’s proposed solution.)

Would Reauthorize Surface Transportation Programs for 6 Years, Boost Funding

A key element of DOT’s request is the inclusion of a $556 billion six-year surface transportation reauthorization proposal to improve U.S. highways, transit, and rail infrastructure and to ensure that these systems are safe. In an effort to jump-start this reauthorization, the request includes a $50 billion “up-front” economic boost that is also meant to foster job creation. Highlights of the proposal include:

Improve land ports of entry, highways, etc. The “up-front” $50 billion economic boost would include $25B for critical highway infrastructure, $2.2B to improve the condition of Land Port of Entry facilities that link directly to the transportation infrastructure at border crossing locations; $3B for rail network development, $3B for grants-in-aid for airports; etc.

Rebuild roads and bridges. The request includes a 48% increase over the previous authorization -- to $336 billion over six years -- in funding for road and bridge improvements and construction. It would also simplify the highway program structure, accelerate project delivery, and realize the benefits of highway and bridge investments to the public sooner.

Create national high-speed rail network. The request proposes $53 billion over six years to continue construction of a national high-speed rail network, including funding for both Amtrak and new “core express,” “regional,” and “emerging” corridors; and keep the U.S. on track toward a system that gives 80% of Americans access to a passenger rail system featuring high-speed service within 25 years.

(The budget proposal also includes the establishment of a National Infrastructure Bank to finance projects of national or regional significance, consolidation of 55 highway programs into 5, and “PAYGO” provisions.)

$606M Requested for FMCSA to Improve Motor Carrier Safety, Enforcement

For the Federal Motor Carrier Safety Administration, DOT is requesting $606 million for FY 2012 to improve motor carrier safety. This represents the first-year of a six-year, $4.9 billion proposal. The increase is intended to improve the safety and security of commercial motor vehicles and buses. The budget proposal states that the funding would enable FMCSA to improve safety and reduce severe and fatal commercial motor vehicles crashes by:

• Raising the bar of entry and preventing repeat offenders from reentering the Commercial Motor Vehicle industry;
• Requiring operators to maintain high compliance standards to remain in the industry; and,
• Removing high-risk carriers, vehicles, drivers, and service providers from operating trucks and buses.

DOT Budget Would Add New User Fees

The DOT budget request also proposes the following user fees:

• Hazardous materials - a user fee from companies and individuals involved in the transport of hazardous materials seeking special permits and approvals from the Hazardous Materials Regulations.
• Railroad safety -- a Federal Railroad Administration railroad safety user fee to offset the costs associated with railroad safety inspectors and their activities.
• Pipelines - two new Pipeline and Hazardous Materials Safety Administration user fees, one for new pipeline construction and the other for special permits;

¹The government is currently operating under a continuing resolution at FY 2010 levels, as FY 2011 funding has yet to be approved. (See ITT’s Online Archives or 01/06/11 news, 11010622, for BP summary of the President signing a short-term bill to continue Federal Government funding at FY 2010 levels through March 4, 2011.)

²NAFTA requires the U.S. to liberalize cross border trucking. Since termination of the U.S.-Mexico Cross Border Trucking Pilot in March 2009, Mexico imposed higher tariffs on 89 U.S. origin products starting on March 19, 2009. The tariffs were estimated to cost U.S. businesses $2.6 billion per year in lost sales. The list of products was modified in August 2010 to generally strengthen the sanctions.