However, Lisa Mullings, president and CEO of the National Association of Truck Stop Operators (NATSO), objected to a provision in the DRIVE Act that would make it easier for states to place tolls on existing interstate highways and divert toll revenue to non-highway projects.
“Tolls divert highway traffic off of the interstates and onto secondary roads, which can create unsafe driving conditions in our communities,” Ms. Mullings said. “Furthermore, tolls are an inefficient double tax on interstate travelers.”
The Tire Industry Association (TIA) has not issued a specific comment on the DRIVE Act. However, TIA opposes new highway tolls, as well as many other suggested highway funding mechanisms including reinstatement of former federal excise taxes on tires or increases on existing ones.
In testimony submitted to House Ways and Means June 17 and Senate Finance June 18, TIA made its position plain, according to TIA Executive Vice President Roy Littlefield.
“While we support a long-term bill, we are opposed to many proposals being circulated,” Mr. Littlefield said in the June 22 issue of TIA's Weekly Legislative Update.
Asked about the EPW transportation bill, Mr. Littlefield said he found it very encouraging.
“We like that there's no tire registration proposal in it,” he told Tire Business. A provision in the Obama administration's reauthorization package — which would pave the way for a return to mandatory registration and severe penalties for noncompliant tire dealers — is a particular sore point with TIA.
“We're happy that it's a six-year bill, and we're happy that it's bipartisan,” Mr. Littlefield said. “But we also see that the funding mechanisms aren't in place. It's a great step forward, but there's still a long way to go.”
TIA has said it favors the proposal of Rep. John Delaney, D-Md., to create a $50 billion federal transportation fund. That fund would be bankrolled from bonds purchased by U.S. corporations seeking a tax break on money earned abroad and brought back to the U.S.
The Bowie, Md.-based trade group also wants to see an end to diversion of money intended for the Highway Trust Fund. “We are approaching 30 percent of the funds collected for the Highway Trust Fund diverted for non-highway purposes,” Mr. Littlefield said.
Congress has until July 31 to pass a transportation funding bill. On June 24, the National Governors Association (NGA) wrote the congressional leadership urging them to act quickly to pass long-term reauthorization.
“Strengthening our nation's infrastructure is vital for governors to advance economic growth and global competitiveness, create jobs and improve overall quality of life,” the NGA said.
“Federal Highway Trust Fund reimbursements to state cover the federal share of contracted work already completed,” it said. “Delaying congressional action on a long-term reauthorization and allowing the HTF to become exhausted will not change the fact that states must pay those bills.”
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