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Phyllis Harden

Legislative & Special Projects, Pine Bluff Sand & Gravel
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Industry Priorities

Additional Financing Sources

Support Supplemental Revenue Sources Such as an Infrastructure Bank, Increased Tolling, Private Investment, Bonding, Sales Tax, Registration Fee, Various Freight Fees, and Distance-Based User Fees

Background:

  • To meet growing transportation demands, a menu of revenue options to supplement the revenue generated by the motor fuels user fees is needed. The following revenue options are recommended as the way to fund our transportation investment needs:

AGC Message:

  • Allow States to Use Tolling On Interstate Routes. Tolling is a viable and lucrative method for collecting user fees particularly in urban and heavy traffic volume areas. States should be granted the option to use tolls on all Interstate and National Highway System (NHS) routes.
  • Encourage Private Sector Investment. Additional incentives should be created to encourage states to partner with the private sector to improve and operate Interstate and NHS routes. Revenues realized by public entities through the sale of concessions to operate existing systems must be reinvested in transportation infrastructure programs.
  • Bonding. Reauthorize the Build America Bonds program as a financing option and/or include Transportation and Regional Infrastructure Projects Bonds as part of the next authorization. Lift the volume cap on Private Activity Bonds for highway and intermodal projects.
  • Create a Transportation Infrastructure Bank. The infrastructure bank should be capitalized with general fund revenue to assist individual or groups of states with an additional source of financing, particularly for mega projects. Infrastructure bank financing should be available as low interest loans to help states finance projects or to assist in leveraging private funds.
  • Expand Current Financing Options. Reauthorize the Transportation Infrastructure Financing Investment Act (TIFIA) loan program with a larger volume capacity and increase the project eligibility for TIFIA financing
  • Create New Freight Fees for Infrastructure Investment. New fees on freight movement should be developed and dedicated to improvement of bottlenecks on freight corridors and port accessibility.
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