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Transportation News July 30, 2010

Change Your E-Mail Address For KBT!
Effective today, Friday, July 30, KBT has new e-mail addresses, so please make a change in your computer contact list to reflect that change!

KBT President Stan Lampe can now be contacted at stan@kbtnet.org The old e-mail address, which should be discarded was stankbt@msn.com KBT’s new Executive Assistant, Pam Helton, can be reached at pam@kbtnet.org

The KBT website address remains unchanged. It is: www.kbtnet.org


Thousands of State Legislators Come To Louisville
Literally thousands of state legislators, from all 50 states and Puerto Rico, came to Louisville this week to attend the National Council on State Legislatures (NCSL) “Legislative Summit”. The Summit is an annual event attended by elected state legislators to hear from national and international speakers. NCSL staff also work to develop model state legislation on emerging issues, which many legislators then take back to their State Capitol for consideration and enactment.

This year, Kentucky Senate President David Williams is the volunteer Chairman of NCSL.

In the three-day Summit, there were literally dozens of break-out sessions on topics ranging from tazer guns to safeguarding digital information.

KBT was encouraged that there were a number of transportation-related sessions, including a generic discussion of investing in all modes of transportation, from light rail to PPPs, which are increasingly referred to as Design-Build-Finance (DBF) projects. Moreover, in these sessions the rooms were filled and even overflowing with legislators…and Kentucky legislators attended.

Former Colorado Governor Bill Owens (1999-2007) spoke at the initial “Investing in Infrastructure” session, and made a strong point that all modes of transportation are in need of long-term investment, not just short-term spurts of capital. “Infrastructure isn’t as popular as immediate consumption. With elected officials serving 2 year, or 4 year or 6 year terms, voting in favor of infrastructure may mean that you don’t see the results in our own term.” Owens, who served as a Colorado legislator before being elected Governor, is a strong proponent of a Design-Build-Finance (DBF) approach to mega-projects. “We don’t have the resources do to infrastructure only with public funds,” he concluded.

Martin Wachs, the director of transportation at the Rand Corporation, a not-for-profit “think tank” located in California, discussed the beginning signs of failure from the federal and state revenue stream for transportation programs. Wachs noted that the current “cents per gallon” approach is now unable to fund standard maintenance in most states, and that alternate fuel vehicles, including all-electric, hydrogen and compressed natural gas, will likely penetrate the marketplace much more quickly than currently anticipated. “The transition period that we are now entering may be quicker than we think,” he said.

Wachs believes the 112th Congress should include much larger pilot or experimental project funding for vehicle miles traveled (VMT) projects, “because the VMT option seems to be the most promising approach to solve our revenue stream shortage.” He promoted the idea of having a VMT pilot program for commercial trucks included in the 6-year Surface Transportation Reauthorization bill, saying “testing the viability of VMT is not a trivial undertaking. With more than 240 million vehicles in America, any change to VMT must be successful, and the risks of failure are enormous,” Wachs commented. He pointed to a recent VMT trial in Oregon, which he graded as a success, but noted that only 600 vehicles participated in the VMT experiment.

Wachs concluded his comments noting that it was politically unrealistic to expect the Congress to increase the Federal motor fuel excise fee. “The fastest way to evacuate a committee room on Capitol Hill is to say that there’s going to be a discussion of increasing the gas tax in it,” Wachs quipped. But he noted that even President Ronald Reagan, an ardent opponent of tax increases, supported an increase in the Federal motor fuel excise fee, believing that it is not a tax, but rather a user fee.




Lexington Blue Grass Airport Gets New Executive Terminal
This week, on Wednesday, TAC Air opened a new 12,000 sq.ft. executive terminal at Lexington’s Blue Grass Airport. The new investment is valued at $11 million, and will be ready for anticipated private air traffic in conjunction with the 2010 Alltech FEI World Equestrian Games which open on Saturday, September 25 for 16 days.

TAC Air has also opened 45,000 sq.ft. of hangar space in time for the FEI games. TAC Air has been named the preferred fixed-base-operations provider for the FEI games.


Nation's Aging Public Transit Price Tag Is $77.7 Billion
While public transit systems in metropolitan areas are carrying more riders, the aging transit systems
and inadequate revenue were reduced to a “price tag” last week.

It would take $77.7 billion just to get the country’s public transit systems into shape, according to a report released last week by the Federal Transit Administration. By comparison, the report stated, the entire amount spent on rehabilitating and reinvesting in public transit nationwide in 2008 was $12 billion to $13 billion.

In June, 900 riders on a train from Washington, D.C. to their homes in Maryland got stuck just minutes after pulling out of Union Station. Because of the extended heat wave that the entire nation is experiencing this summer, temperatures in this particular train reached 110 degrees quickly, and passengers on the train debated whether they would be arrested for removing windows, in order to let in cooler air. “When the temperature reached 110 degrees, our consensus was that jail systems were air conditioned, and so breaking out the windows was a better option than staying on the train,” one commenter wrote on a web site.

While the 2009 economic stimulus bill devoted $8 billion to the development of high-speed rail, it was widely criticized for devoting little money for rebuilding and repairing existing transit systems.

U.S. Senator Christopher Dodd (Connecticut) introduced a bill in May that would provide $2 billion in emergency funds to close gaps in operating costs for public transit systems around the country. For the most part the bill would not apply to capital investment, and its prospects for passage are dim with many Congressional members already skittish about the growing budget deficit.




Interim Transportation Committee to Meet Aug. 10, not Aug.3
While the Joint Interim Transportation Committee would normally meet on the first Tuesday of the month in Frankfort, the meeting will be held on second Tuesday, August 10, instead.

The meeting will convene at 10:00 a.m. in Room 154 of the Capitol Annex Building in Frankfort. The Capitol Annex is located directly behind the State Capitol.

There are four interesting items on the Interim Committee agenda. There will be an update on the Road Fund bonding program, followed by a discussion of the removal of ice storm debris from 2009. Then the UK Transportation Center will make a presentation on their current activities, and the final agenda item will be a Revenue Cabinet presentation on how the $25 million trade-in credit allowance program will be concluded when it hits the “cap” of $25 million.

KBT members are encouraged to attend these important Interim Committee meetings.



111th Congress Takes August Recess
The 111th Congress is expected to recess today, Friday, July 30 for its routine August recess. They return on Tuesday, September 7, following Labor Day, and are expected to be adjourn for the year on October 8, although it is referred to as a “target” adjournment date, and can slip.

So what does this mean for you as a KBT member? It means that your Congressman is back home in their district for the entire month of August. Go visit him. Better yet, invite him to your business and discuss with him how the current economic slowdown in impacting your workforce. Have an employee group meeting and let him speak to your employees and let your employees ask him questions. If you are uncomfortable with a business setting, invite him to a hamburger and hot dog cook-out in your backyard and invite your neighbors.

More than 200 years ago, the Congressional calendar was designed for members of Congress to have time listening and interacting with their constituents. So, do your part, this August!


Transportation News July 23, 2010

Beshear to Name 7-Member Water Transportation Board
Governor Steve Beshear will name the 7-member Water Transportation Advisory Board members later today, Friday afternoon, July 23.


The new Water Transportation Advisory Board has been formed by the passage of HB 28, a measure sponsored by Rep. Will Coursey (Benton) and supported broadly by legislators in all regions of the state.


HB 28 called for the Governor to appoint 7 members to the new Advisory Board. The members are charged with the responsibility of advising both the Legislative branch and Executive branch of government on ways for Kentucky to take economic advantage of its many riverports and hundreds of miles of rivers. The 7 members serve without compensation and are not reimbursed for expenses incurred with attending meetings. Four members come from public riverport authorities. Two members are “at-large” individuals who have knowledge and professional involvement with the waterways. The final appointment was a representative from Kentuckians for Better Transportation (KBT).

According to an Executive Order filed with the Secretary of State’s office, the Governor will appoint:

•Kenneth Lanham, of Owensboro, who operates a public riverport,
•Steve Alley, of Northern Kentucky, who works for Ingram Barge,
•William “Norb” Whitlock, of Prospect, who represents Kentuckians for Better Transportation,
•Greg Pritchett, of Henderson, who serves as the Henderson Port Director,
•James “Jay” Hunt, of Grand Rivers, who operates marine cranes,
•Ken Canter, of Paducah, who serves as the Paducah-McCracken Co. Port Director, and
•Valerie “Nicki” Smith, of Rush, who serves as the Boyd –Green County Port Director.

The 7 members initially serve terms of different lengths, so that future members don’t all rotate off the Board at the same time. Steve Alley and Greg Pritchett serve until September 30, 2011. James “Jay” Hunt serves until September 30, 2012. Ken Canter serves until September 30, 2013. Finally, Ken Lanham and Valerie “Nicki” Smith serve until September 30, 2014.

KBT was very supportive of HB 28 during the 2010 Regular Session, and recently, was pleased to work with the Office of Boards & Commission, and its Executive Director Geoffrey Dunn to recommend three names for its statutory appointment. KBT congratulates all of these individuals, and commends them for their willingness to serve and improve waterways commerce in Kentucky!



Congressmen Chandler and Yarmuth Support KBT Rail Position
Kentucky U.S. Congressmen John Yarmuth (Louisville) and Ben Chandler (Lexington) have contacted KBT this week to voice their support for H.R. 1806, the Freight Rail Infrastructure Capacity Expansion Act of 2009. If enacted, H.R. 1806 would provide a tax incentive for railroad companies to make improvements to freight rail lines, and certain qualified equipment.

KBT’s Board of Directors adopted a position favoring H.R. 1806 at its June Board meeting. In taking that position, the Board also urged the Kentucky Congressional delegation to sign-on as co-sponsors to the legislation. Two of Kentucky’s six Congressmen, Congressman Whitfield and Congressman Yarmuth, had already signed on as co-sponsors before KBT took its Board action.

“I am a proud cosponsor of H.R. 1806, the Freight Rail Infrastructure Capacity Extension Act, which will provide a 25 percent tax credit to incentivize businesses to expand freight rail operations, create jobs immediately, and reduce air pollution in Louisville and nationwide,” said Congressman Yarmuth to KBT.

Congressman Chandler just signed on as a co-sponsor within the last week. “I am proud to join Kentuckians for Better Transportation in support of this legislation,” Congressman Chandler said. “This bill will improve the ability of our farms, mines and factories to move their goods to market, reduce highway congestion and pollution, and create local jobs for Kentuckians, updating our infrastructure for the future. Railroad freight volume is on the rise in the Commonwealth, and our rail infrastructure is not prepared for such rapid growth.”

Similar rail legislation, H.R. 272, has been supported by Congressmen Rodgers, Guthrie, and Davis.
With limited time left in the waning days of the 111th Congress, this issue isn’t expected to be considered in the House- Ways & Means Committee until 2011, when the new 112th Congress convenes.

And so, for the record, all six of Kentucky’s House members are supportive of accelerated investment in freight rail infrastructure!



Helton Joins KBT Staff as Executive Assistant
KBT welcomes Pamela S. Helton (Pam) to the KBT staff, this week. Pam joins KBT after a successful career in Kentucky State Government, where she served as a respected executive staff policy advisor in the Department of Alcohol Beverage Control (ABC) for more than 17 years. Pam has extensive experience in dealing with many of the state legislators, as well as administrative experience in budget, monthly finance, personnel, policy advice, and facilities management.

“I am delighted that KBT has been able to attract someone of the caliber and knowledge-base as Pam Helton,” said KBT President Stan Lampe. “Without a doubt, Pam will hit the ground running and add more energy to our broad array of activities.”

Prior to her work at ABC, Pam was involved in interior design at a commercial firm in Louisville, and the University of Louisville.

She is a native of Marshall County in Western Kentucky, and a graduate of the University of Kentucky. She and her husband, Mike, reside in Louisville with their three dogs, Tye, Maggie, and Mickie. They have two adult children.

Helton replaces KBT Office Manager Paula Abell, who left KBT in mid-April. Please welcome Pam to KBT. Her new e-mail will be pam@kbtnet.org or you may phone her at the KBT office 502 491 5600.



Governor Beshear Names Hancock Secretary of Transportation
On Tuesday of this week, July 20, Governor Steve Beshear elevated Acting Secretary of the Transportation Cabinet Mike Hancock to officially serve as the Secretary of the Transportation Cabinet.

Hancock had served as Acting Secretary since August 2009, when he replaced former Secretary Joe Prather.

In a press statement, Hancock said, “I have spent my career in the Transportation Cabinet, and I am humbled by Governor Beshear’s decision to name me as Secretary. I am eager to continue the work before us and am grateful for the opportunity to serve the citizens of this state.”

In a letter to Governor Beshear, KBT commended the Governor on his action. In part, the letter said, “we write to commend you on your decision to elevate Mike Hancock’s position to permanent Secretary of the Transportation Cabinet.”

Secretary Hancock is responsible for more than 4,500 state employees in the Transportation Cabinet. He is a resident of Frankfort, and is a native of Princeton, Ky.


State Ends Fiscal Year with Lowest Tax Collections in 5 Years
Yesterday, Thursday, July 22, State Budget Director Mary Lassiter testified before the Interim Joint Committee on Appropriations and Revenue, to discuss the “close out” of the State’s fiscal year. Some of financial highlights were both shocking and sobering.

While the state ended FY 10 with a surplus of $27.9 million, revenues in the General Fund declined by 2.4% overall, and this was the first time since World War II that receipts declined two years in a row.

Kentucky’s budget reserve account, frequently called the “Rainy Day Fund” has a balance of $0.

Kentucky has reduced its budget seven times over the past 2 ½ years, and is in the process of cutting again – an eighth time.

For FY 10, individual income taxes were down by 4.9%; corporate income taxes were down by 11.2%. Coal severance taxes were down by 7.1%, with the only increase coming from cigarette taxes, where receipts increased by a whopping 37.1%, from $203 million in FY 09 to $278 million in FY 10.

Actual road fund receipts of $1.206 billion in FY 10 were remarkably close to the estimate of $1,199.1 billion, a difference of 0.6%. Even more remarkable, the motor fuel receipt estimate of $655.6 million, was less than 1/ 1,000 of 1% off the actual receipts of $655.8 million.

At fiscal year end, there was a $41 million surplus in the Road Fund, and state law requires that it be deposited into the State Construction Account.

Budget Director Lassiter ended her comments on the Road Fund with a sobering fact. The Road Fund is not expected to reach $1.265 billion in revenues until FY 12. Why is $1.265 billion an important number? That was the peak of Road Fund receipts…..in FY 08.



Electric Cars: GM Improves Volt Warranty
If you really look for it, there is news about all-electric or “plug-in” cars nearly every week. Last week, General Motors announced that it will guarantee the battery on its new Chevrolet Volt electric car for eight years, or 100,000 miles, in an effort to inspire confidence in the new battery technology.

The guarantee is impressive because it is better than warranties on GM’s conventional car engines and transmissions, which are five years or 100,000 miles. The longer warranty will help GM as it tries to convince people to adopt the new lithium-ion battery technology. So what’s the concern? Replacement of a lithium-ion battery can be as much as $10,000 to $12,000!

The Volt is due in showrooms this November. The vehicle can travel 40 miles on battery power before a small gasoline engine takes over to generate power, so the car can go longer distances. The Volt’s price is expected to be around $35,000, before Federal tax credits.

Recently, the U.S. EPA announced its estimated city and highway mileage for the Volt. While the number is still in dispute, the EPA said that Volt is expected to achieve 256 miles per gallon, in city driving.


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