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Transportation News February 3, 2012

Class I Railroads Set To Invest $13 Billion in 2012
In a positive sign for the U.S. economy, the major, Class I railroads will invest a record $13 billion in various infrastructure upgrades in 2012, including vital freight corridors that will link the West Coast seaports to Texas and the Southwest.

That encouraging news comes from the Class I industry group, The Association of American Railroads, (AAR) located in Washington, D.C. The AAR also said the railroads would hire 15,000 workers, to replace retiring workers, but also expanding employment by creating new positions.

While not an operator in Kentucky, Omaha, Nebraska-based Union Pacific recently told investors and a group of Wall Street analysts that their capital budget for 2012 would be about $3.6 billion.

A key component of these investments is so-called double tracking. Double tracking allows freight cargo to move much faster than a single-track route. On a single track route, one train has to shift to a siding to allow the other train to pass. Double tracks allows both trains to continue, unimpeded and without delay.

Railroad employment can be very lucrative, to say the least. The AAR said that the nation's 175,000 railway employees enjoy an average salary of about $100,000 a year, "with jobs ranging from engineers to dispatchers, to law enforcement, to information technology and industrial development." The AAR says that one in five new hires, or 20%, are military veterans.

Contact Your Frankfort Senator: SB 89

This weekend, KBT encourages ALL of its members to contact your State Senator while they are home from Frankfort for the weekend.

The message: urge your State Senator to co-sponsor Senate Bill 89, a bill supported by KBT, that will expand Kentucky's primary seat belt law to include both 12-passenger vans and 15-passenger vans. The bill is sponsored by Senator Ernie Harris (Crestwood). In addition to being the Chairman of the Senate - Transportation Committee, Chairman Harris' full-time vocation is a UPS pilot. Said another way: Senator Harris understands, first-hand, the value of being "buckled in". He's always buckled in when he flies, or when he drives.

The reason that SB 89 needs to become law is simple: the current Kentucky statute only requires passengers to wear seat belts if the vehicles holds ten (10) passengers, or less. So the passage of SB 89 will require passengers in all sizes of vans must be wearing a restraint. Of course, we all remember the tragic accident on I-65 in Hart County that occurred in March 2010. Ten adult passengers of a 15-passenger van, a Mennonite family, were fatally injured, and none of the adults were wearing seat belts. They used terribly poor judgment, but they were not breaking the law.

If you are unable to speak with your State Senator over the weekend while they are home, call their Frankfort office on Monday, at 502 564 8100, and then ask to be connected to your State Senator. Leave a message with a secretary or assistant if your Senator isn't immediately available.



Long-Awaited Multi-Year Aviation Bill To Become Law?

This week, on late Wednesday evening in Washington, D.C., House and Senate negotiators reached an agreement to reconcile the different House and Senate versions of legislation to reauthorize the multi-year operating authority of the Federal Aviation Administration (FAA).

At the risk of sounding skeptical, KBT notes that the multi-year authorization for the FAA last expired on September 30, 2007. Since that time FAA programs have been operating under a series of 23 short-term extensions. (The current, 23rd extension, will expire on February 17, if this agreement were to fall apart).

Earlier failed attempts on multi-year legislation have been stymied by a nasty and divisive labor issue being included in the bill. The House and Senate compromise wisely doesn't include that provision.

The agreed-to compromise, the FAA Modernization and Reform Act of 2012, is a four-year bill, authorizing just shy of $16 billion each year to operate and improve the national civil aviation system. The measure would authorize the Airport Improvement Program (AIP) which is the discretionary grant program for airport capital projects, at the current FY 2012 level of $3.35 billion through FY 2015. Technically, this level is $165 million less per year than was provided in the program from 2006 through 2011.

At this writing, there are indications the House of Representatives will take up the compromise FAA bill as early as today, Friday, February 3, and that the U.S. Senate will follow with their vote shortly thereafter. Keep your fingers crossed!



DOT Announces 2012 Tiger Grant Funds and Dates

(We're grateful to Leader Mitch McConnell and his staff this week, because they shared a "hot tip" with KBT this week, and in a very timely fashion).

On Tuesday, January 31, the U.S. DOT announced the availability of $500 million for TIGER projects having significant impact on the nation's transportation network, regardless of whether it is located in an urban or rural setting. As in prior rounds of funding, the 2012 TIGER grants are for capital investments in surface transportation infrastructure and are to be awarded on a competitive basis. Projects will be evaluated on the primary criteria including: safety, economic competiveness, livability, environmental sustainability, state of repair and short-term job creation.

The 2012 TIGER grant pre-application system will open on or before February 13. The deadline for pre-applications is February 20. The deadline for final applications is March 19. Applicants are encouraged to coordinate their applications with the Kentucky Transportation Cabinet, and submit their applications in advance of the application deadlines.

The official notice is http://www.gpo.gov//fdsys/pkg/FR-2012-01-31/pdf/2012-1996.pdf.

GOOD LUCK !



House Repubs Unveil SAFETEA-LU Proposal

Hope springs eternal. Maybe something is finally moving on SAFETEA-LU in the U.S. House of Representatives.

On Tuesday this week, January 31, House - Transportation & Infrastructure Committee Chairman John Mica (Florida) and other Republican members of the Committee announced the introduction of a 5-year surface and public transit reauthorization proposal dubbed "The American Energy and Infrastructure Jobs Act of 2012". The bill is numbered H.R. 7. Sadly, no House Democratic members participated in the rollout of the bill. At the Tuesday news conference, House Transportation leaders did not offer details on where the money for their proposal would come from. But House leaders have previously proposed deriving new revenues from domestic energy production, which would then be deposited in the Highway Trust Fund.

The measure would authorize approximately $260 billion in highway, public transit and safety investments from FY 2012 through FY 2016.

H.R. 7 Core Transportation Program Authorizations

FY 2011*

FY 2012

FY 2013

FY 2014

FY 2015

FY 2016

Highways

$41.1

$39.1

$40.1

$40.3

$40.4

$40.7

Transit

$10.1

$10.4

$10.5

$10.5

$10.5

$10.5

Safety

$1.2

$1.2

$1.2

$1.2

$1.2

$1.2

Total

$52.4

$50.7

$51.8

$52

$52.1

$52.4

*FY 2011 not included in H.R. 7, but provided for comparison Source: ARTBA

If approved by the House and Senate, H.R. 7 would be the first multi-year long-term transportation bill passed in Congress since 2005. The current highway funding bill, SAFETEA-LU, expired on September 30, 2009, and has been extended eight (8) times since its multi-year authorization expired. The current eighth short-term extension expires on March 31.

If enacted, H.R. 7 would provide six (6) major changes from the current SAFETEA-LU law. They include:

1. Consolidate the existing Interstate Maintenance Program into an expanded National Highway System Program. This new program would receive roughly one-half of the bill's highway funding authorization.

2. Continue the Highway Safety Improvement and Surface Transportation Programs (STP), but would eliminate the current requirement that states use 10% of their STP funds for "transportation enhancements". In general, "transportation enhancements" support alternative transportation and environmental initiatives.

3. House Ways & Means Committee would create a new "Alternative Transportation Account" which would be within the Highway Trust Fund (HTF). The new Alternative Transportation Account would support public transportation, Congestion Mitigation and Air Quality Improvement (CMAQ) and research programs as well as other small initiatives. Under H.R. 7, funds in this new account would have the same budgetary protections as funds from the HTF.

4. A provision that would allow states to use CMAQ funds for new, single-occupancy vehicle highway capacity, as long as the project either reduced congestion or improved air quality.

5. Increase from $122 million to $1 billion the funds allocated for the Transportation Infrastructure Finance and Innovation Act (TIFIA). H.R. 7 would also authorize $750 million annually to capitalize state infrastructure banks. Both of these items are intended to increase the financial leverage of limited federal funds with added financial investment from the private sector.

6. Finally, H.R. 7 offers a number of serious and significant reforms to the tedious environmental review process of any project, including: (a) strengthening the role of the USDOT to act as the lead agency in the review and approval of transportation projects; (b) setting a total "cap" of 270 days for the completion of the environmental review process and (c) reducing the deadline under which project opponents can file a lawsuit from 180 days down to just 90 days.

The U.S. Senate is also considering a different 2-year highway surface and public transportation program, dubbed "MAP -21". That bill's author, Senator Barbara Boxer (California) hopes to see a Senate floor vote in February. This measure offers transportation advocates increased funding over the House proposal, as its "price tag" is $56 billion each year.



CORRECTION: Water Transportation Advisory Board on Tuesday, Feb. 7

Last week's KBT Transportation News was mistaken when we said that the 7-member Kentucky Water Transportation Advisory Board will meet in Frankfort on Wednesday, February 7, 2012 beginning at 2:00 p.m. in Frankfort.

We should have said Tuesday, February 7, 2012. The meeting will be held in Room C 106 in the Kentucky Transportation Cabinet Building at 200 Mero Street. Greg Pritchett (Henderson Riverport Authority) chairs the all-volunteer panel.

Agenda items include presentations by Mark Locker of the Ohio Dept of Transportation. Locker will discuss the ODOT Maritime and Freight Program. Chuck Knowles of the Kentucky Transportation Center at UK will discuss waterways research efforts at KTC. KBT President Stan Lampe will brief the Advisory Board on pending legislation in the 2012 Session that has implications for waterways commerce.

The Water Transportation Advisory Board meetings are public meetings, and KBT members with interest in waterways commerce are encouraged to attend.



Our Readers Write .......
KBT ---

Great conference...even though I was able to attend only one day!

With my limited ciphering ability, I have some information for those who say, "I don't want to pay tolls on something that I already have!"

Assuming that the present fuel tax has been around for 55 years and I have driven 15,000 miles for each year that I have driven. Also assume that I have driven a vehicle that has averaged 20 miles per gallon fuel efficiency.

Without further assumption, the average cost of reconstruction of our highways, including new drainage, stone base, minor widening, with complete resurfacing is $575,000 per lane mile.

Using the current tax rate of $0.367 per gallon and driving 15,000 miles per year at 20 mpg, I will consume 750 gallons of gasoline this year. This results in a whopping fuel tax of $275.25 per year.

A lane mile of reconstruction is $575,000, which is $109 per lane foot.

Bottom line, I will pay, over my 55-years of driving, $15,138.75 in fuel taxes. This will reconstruct 69.4 feet of the two-lane road in front of my house!

Gilbert Newman

MAC Construction Company


Weekly Intermodal Traffic Rises 3%

U.S. freight carload traffic in early 2012 rose again, up 1.6% for the week ending January 21. But U.S. intermodal volume moved up even more, rising 3.0% for the week of January 16 - January 21, against the comparable week in 2011.

Of the 20 carload commodity groups, 14 of them posted increases compared with the same week in 2011. Leading the category increases were: metallic ores, which were up 50.8%; petroleum products, which were up 26.8% and motor vehicles and equipment, which were up 16.7%. Declining groups included grain and other farm products which exclude grain.

Railroad volumes are considered a fundamental economic indicator. Intermodal traffic, which tends to be higher-value goods and merchandise compared to bulk commodities, uses trains for the long haul and trucks for the shorter distance at either end of the trip.



Let Us Pray......From 34th Ky. Transportation Conference

It is NOT a rare instance for us to hear from our KBT members. In fact, in now occurs every day. But what was rare...last week... that we heard from about 15 of you, and you were all asking for the very same thing.

Henderson Riverport's Greg Pritchett delivered the Invocation on Friday, January 20, at the 34th Annual Kentucky Transportation Conference Closing Luncheon. It was a special moment, and we wanted to share it with those of you requested that we reprint it here in the KBT Transportation News.

Let Us Pray:
The stories of our faith remind us that it was You, who put us into motion.
You transported the Israelites from Egypt to the Promised Land.
You engineered the parting of the Red Sea and the dry road.
You provided the navigation star for the three Kings.
You created the Wind and Water to carry us.
You gave us the capacity to convert natural resources and construct our modern paths and transport vehicles.
You entrusted us with the opportunity and resources to enhance your Kingdom.
Give us the wisdom, grace, compassion and confidence to move forward with your plan and transport us towards your perfect design.
In your name we pray. Amen.



Bill Summary for 2012 Ky. General Assembly
Selected State Transportation Legislation
Selected State Transportation Legislation for KBT Members
(as of Thursday, February 2, 2012)
(Updated status of bills available at www.lrc.ky.gov)

Administrative

Airports

HB 124 (Rep. Wayne) Allow a planning unit to incorporate airport noise overlay districts within its zoning texts and maps; allow the planning unit to incorporate guidelines on building techniques and materials that are designed to provide acoustical insulation benefits. KBT Position: Monitor. To House - Local Government on 1/3.

Auto Dealerships

Bidding and State Contracting Practices

Building Materials, including Stone, Sand Gravel

DUI Legislation

Energy Conservation; Energy Standards

HB 167 (Rep. Marzian) Encourage greater energy efficiency, conservation, and the use of renewable energy resources in order to promote energy independence and energy security; established targeted low-income weatherization programs; other provisions. KBT Position: Monitor. To House - Tourism Development & Energy on 1/4.

HB 246 (Rep. Adkins)(28 co-sponsors). Relating to the promotion of alternative energy, expand the types of alternative and renewable energy eligible for incentives. KBT Position: Monitor. To Tourism Development and Energy Committee on 1/12; passed favorably from Committee on 1/26; to House Floor on 1/27.

Fuels, Including All Transportation Fuels

HB 245 (Rep. Hall) Establish a tax credit for individuals who convert or retrofit vehicles to run on LNG or CNG; also establish tax credit for individuals who purchase new vehicles that do so. KBT Position: Monitor. To House - Transportation Committee on 1/11.

Highways, Streets & Bridges

SB 128 (Sen. P. Clark; Sen. Harper-Angel) Prohibit the imposition of tolls or user fees on a federal interstate highway currently in existence. KBT Position: Opposed. Introduced 1/31. Committee not yet assigned.

HB 333 (Rep.DeCesare, Rep. Dossett) Increase the speed limit on US Route 68 and Kentucky Route 80 West of the Natcher Parkway to 60 miles per hour; require violator of the speed limits to be subject to fine and other related penalties. KBT Position: Support. To House - Transportation Committee on 1/30.

HJR 77 (Rep. Overly; Rep. Rand, and 5 others) Provide that the General Assembly shall adopt the last four years of the six-year Road Plan as a joint resolution. KBT Position: Support. Introduced 1/17. To House - Appropriations & Revenue on 1/18.

Leases and Leasing Practices

SB 65 (Sen. Jensen) Provide that leases of motor vehicles or trailers which contain a terminal rental clause do not become or convert into sales contracts. KBT Position: Monitor. To Senate - Transportation on 1/4 .

License Plates, Operator's Licenses and Vehicle Registrations

SB 46 (Sen. Schickel) Permit a veteran to request, at the time of application, that a personal identification card or operator's license bear a designation denoting the applicant's status as a veteran. KBT Position: Monitor. To Senate- Transportation on 1/3.

SB 53 (Sen. Palmer) Direct KYTC to establish special NASCAR themed license plates; allow KYTC to enter into licensing agreement with NASCAR; direct that EF fees for NASCAR plates to be distributed to local health departments, in accordance with the number of plates issued in each county; set state fee for plate at $32 and EF fee at $10. KBT Position: Monitor. To Senate - Transportation on 1/3.

SB 124 (Sen. Buford) Provide that motor vehicle instruction permit holders are not required to be accompanied by a person who is at least 21 years of age in the seat beside them when being supervised by a driver training instructor. KBT Position: Oppose. Introduced on 1/30. Not yet assigned to Committee.

HB 95 (Rep. Steele) Permit a veteran to request, at the time of application, that a personal identification card or operator's license bear a designation denoting the applicant is a veteran. KBT Position: Monitor. To House - Veterans, Military Affairs & Public Safety on 1/3.

HB 105 (Rep. Butler) Require the design of the Purple Heart license plate include a picture of the Purple Heart medal and the words "Combat Wounded". KBT Position: Monitor. To House - Veterans, Military Affairs and Public Safety.

HB 194 (Rep. S. Lee) Permit a veteran, at the time of application or renewal, to request an operator's license bear a designation that the applicant is a veteran. KBT Position: Monitor. To House - Veterans, Military Affairs and Public Safety on 1/5

HB 195 (Rep. S. Lee) Require that an applicant for initial title and registration of a motor vehicle present a valid Kentucky operator's license or other proof of U.S. citizenship. KBT Position: Monitor. To House - Transportation on 1/5.

HB 197 (Rep. Pullin) Establish a new effective date for the I Support Veterans special license plate; require manufacturing to being no later than June 12, 2012. KBT Position: Monitor. To House - Veterans, Military Affairs and Public Safety on 1/5. Passed favorably out of Committee on 1/11; To House Floor. Passed House floor 99-0 on 1/18; To Senate - Transportation on 1/24.

HB 221 (Rep. Nelson) (42 co-sponsors) Permit a veteran, at the time of application or renewal, that a personal identification card or license may denote applicant's status as a veteran. KBT Position: Monitor. To House - Veterans, Military Affairs and Public Safety on 1/9. Passed favorably out of Committee on 1/24; To House Floor. Passed House floor vote 96-0 on 1/26. To Senate. To Senate - Transportation Committee on 1/31.

HB 327 (Rep. Osborne) Allow renewal of an operator's license by mail for a license holder residing temporarily out of state while enrolled in full-time postsecondary educational institution. KBT Position: Monitor. Introduced on 1/26; not yet assigned to a Committee.

Motor Vehicles

HB 347 (Rep Collins) Regarding defective new motor vehicles, amend the time limits to repair new defective motor vehicles to provide reasonable cases for extensions in cases where parts or supplies are unavailable due to civil unrest or natural disaster. KBT Position: Support. In House - on 1/31; not assigned to Committee yet.

Public Transit

Rail and Railroads

HR 14 (Rep. Nelson) Urge CSX officials to require the maintenance of all CSX railroad crossings located in the Commonwealth. KBT Position: Opposed. To House - Transportation on 1/3.

HR 85 (Rep. Nelson) Urge corporate railroad officials to require the maintenance of all railroad crossings located in the Commonwealth. KBT Position: Monitor. To House - Transportation Committee on 1/20; passed favorably out Committee on 1/24; To Consent Calendar To House Floor; passed 98-0 on 1/31.

Safety

SB 75 (Sen. Winters)(7 co-sponsors) Allow slow-moving, motor-less vehicles operating at night to use markings of reflective tape, rather than using the slow-moving vehicle emblem. KBT Position: Monitor. To Senate - Transportation on 1/5. Passed favorably out of Committee on 1/25; To Rules Committee, add amendment to declare an emergency;

HB 30 (Rep. Mills) (8 co-sponsors) Allow local school boards to sell advertising on school buses; prohibit certain types of advertising; require annual reporting. KBT Position: Opposed. To House - Education on 1/3; Posted in Committee on 1/5; Voted Favorably out of Committee on 1/10 to House floor. Passed House 67 to 29 on 1/18; to Senate; to Senate- Education Committee on 1/24.

HB 64 (Rep. Keene) Expand instances to allow ignition interlock devices be installed, including driving the wrong way on a four-lane highway; establish an ignition interlock assistance fund operated by KYTC for indigent offenders. KBT Position: Monitor. To House - Judiciary on 1/3.

HB 86 (Rep. Embry) Add "mini-trucks" to the definition of motor vehicles; permit mini-trucks on public roadways with a posted speed limit of 45 MPH or less; require operators/owners of mini-trucks to comply with insurance, title and registration and useage tax requirements as motor vehicle. KBT Position: Opposed. To House - Transportation on 1/3.

HB 114 (Rep. Crimm) Provide alternate lighting system for slow-moving, motor-less vehicles operated at night; provide for marking motor-less vehicles with reflective tape rather than using the slow-moving emblem. KBT Position: Monitor. To House - Transportation on 1/3.

HB 133 (Rep. Bell) Provide for a means of marking motor-less slow-moving vehicles with reflective tape rather than using the slow-moving vehicle emblem. KBT Position: Monitor. To House - Transportation on 1/3. Posted for consideration in Committee on 1/19.

HB 165 (Rep. Denham) Require motorists to illuminate headlights during any period of precipitation that necessitates the use of their windshield wipers. KBT Position: Monitor. To House - Transportation on 1/4. Passed favorably out of Committee on 1/24; To House floor; potentially vote on Monday, 1/30.

HB 184 (Rep. Meeks) Require that KYTC forward a copy of all uniform traffic citations issued to drivers under 18 years of age to the parent or guardian. KBT Position: Monitor. To House - Transportation on 1/4.

HB 199 (Rep. Butler) Require that information contained on a diabled parking placard be written on a tamper-evident sticker that is color coded based on the year in which the placard expires. KBT Position: Monitor. To House - Transportation on 1/5.

HB 283 (Rep. Harmon) relating to driving under the influence; restructure current four-tiered penalty structure to a three-tier penalty structure; expand the five-year look back window for prior offenses to a ten-year look back. KBT Position: Support. To House- Judiciary Committee on 1/20.

HB 328 (Rep. R. Adams) Allow person who has received an intermediate operator's license to apply for a motorcycle instruction permit; make motorcycle instruction permit good for 1 year with ability to renew the permit one time; allow person with expired motorcycle instruction permit to apply for motorcycle operators license if the person can present proof of successful completion of motorcycle safety education course. KBT Position: Support. Introduced on 1/26; To House - Transportation Committee on 1/30;

State Tax Code / Transportation Budget Bills/ Road Fund

HB 46 (Rep. Nemes) Allow for local option election for expanded gaming, not held on primary and regular election days; establish commission for as agency to solicit bids for casino gaming; establish procedure for evaluating bids for full casinos. KBT Position: Support. To House - Licensing & Occupations on 1/3.

HB 120 (Rep. Farmer) Make trade-in allowance permanent for motor vehicles purchased on or after 10/1/2012; amend tax code to expand sales and use tax to include selected services; lower sales and use tax rate; tax all pass-through entities at a flat rate of 2.5%; modify the tax rates for llc entities; decrease wholesale alcohol tax to 5.5 % from current rate of 11%. KBT Position: Monitor. To House - Appropriations & Revenue on 1/3.

HB 140 (Rep. Keene) Create a new section of KRS 154A to require that local option elections for the approval of casino gaming in counties with population greater than 90,000 or in cities of the fourth class or greater; specify license fees and stipulate requirements for licensing. KBT Position: Support. To House - Licensing & Occupations on 1/3.

HB 266 (Rep. Rand) Provide appropriations and financing for the operators, maintenance, support and functioning of the Kentucky Transportation Cabinet. KBT Position: Monitor. To House- Appropriations & Revenue Committee on 1/18;

HB 267 (Rep. Rand) (5 co-sponsors) Establish the fiscal year 2012-2014 Biennial Highway Construction Plan; declare an emergency (bill becomes law upon the signature of the Governor) KBT Position: Monitor; To House - Appropriations & Revenue Committee on 1/18.

HB 277 (Rep. J. Richards) Require the Secretary of State to create a standard form, to be used by all local tax districts for the filing of returns of net profits, gross receipts and occupational license taxes. KBT Position: Monitor. To House - Local Government Committee on 1/20.

Waterway

SB 83 (Sen. Palmer) Create a water vessel removal assistance fund to be administered by the Kentucky River Authority; require the Kentucky River Authority to establish criteria for when removal of abandoned water vessel is necessary. KBT Position: Monitor. To Senate - Transportation on 1/9.

HB 93 (Rep. Gregory) Clarify that the Rules of the Road for personal watercraft are part of the Inland Navigation Rules and provide specific citation for those rules. KBT Position: Monitor. To House - Transportation on 1/3.

HB 154 (Rep. Bell) Allow for an alternative apportionment method to tax commercial watercraft if the statutory method does not adequately reflect the use of watercraft by a company in this state. KBT Position: Support. To House - Appropriations & Revenue on 1/3.

SB 112 (Sen. McGaha) Relating to boating while under the influence; establish a new penalty scheme for boating while intoxicated; amend current statute to allow for arrest based on probable cause for boating while intoxicated. KBT Position: Monitor. To Senate - Judiciary on 1/24.

Transportation News January 27, 2012

Monty Boyd Elected KBT Chairman for 2012

Monty L. Boydwas elected 2012 KBT Chairman on Thursday, January 19, 2012 by the KBT Board of Directors. Boyd is the President, CEO and Chairman of Whayne Supply, one of the nation's oldest and largest Catepillar dealerships. With its headquarters in Louisville and nine district offices across the Commonwealth, Boyd and Whayne Supply are looking forward to 2013, as it marks a century of service since the company was founded in 1913.

Serving with Boyd on the KBT Executive Committee are: David Haydon (Nally & Haydon) as KBT First Vice Chair, Greg Hensley (Hinkle Contracting) as KBT Second Vice-Chair; Richard Sutherland (Stantec) as KBT Secretary; Crissy Fiscus (Dean Dorton Allen Ford) as KBT Treasurer; Clint Goodin (Vaughn & Melton) as KBT Director-At-Large, and Mark Willis (Stantec) as KBT Immediate Past Chair.

Joining the KBT Board of Directors in 2012 will be five directors, who are: Ted Smith, Director of Innovation for Metro Louisville Government; Bryce Walker of Walker Construction; Jeff Houchin of Intech Contracting LLC; Mike Carter, CEO of Lynn Imaging and John McCarty of Strong-McCarty Global.

Immediate Past Chair Mark Willis, who served as KBT Chairman in 2011, said, "I am very proud of our accomplishments over the last year. First, KBT has experienced record-breaking growth in the number of new members. Secondly, KBT relocated its offices and established an inviting "home" for KBT staff and for KBT members to work and visit. Thirdly, KBT has made many small changes in its structures and practices that, when taken in whole, have energized and streamlined KBT," Willis stated. "Lastly, KBT commissioned the $60,000 "Four Modes Study", a study undertaken to determine how other states fund their public transit, airports, rail and waterways agencies within their state governments. All combined, it was a busy and productive year, and I have no doubt that Monty Boyd will continue this growth in 2012," Willis concluded.



KBT New Member: City of Frankfort

KBT welcomes the City of Frankfort as our newest KBT member!

The town of Frankfort likely received its name from an event that took place in the early 1780s. Native American Indians attacked a group of British-American pioneers while they were making salt at a ford in the Kentucky River. After the pioneer Stephen Frank was killed, the settlers began to refer to that river crossing as "Frank's Ford". The name was later shortened to Frankfort.

The City of Frankfort was founded in 1786 and officially incorporated on February 28, 1835. Of course, it's the Capital City of Kentucky and the county seat for Franklin County. The City of Frankfort has a population of approximately 28,000 residents, but the daily population increases to approximately 50,000 based on the workforce in Franklin County, or commutes into the City from neighboring counties.

The City of Frankfort is governed by the Mayor H. Gippy Graham, the City Commissioners and administered by the City Manager.

Mayor Graham was elected Mayor in 2008 and began serving on January 1, 2009. Previously he served as a State Representative in the Kentucky General Assembly, and also served as an Administrative Assistant to the Commissioner of the Kentucky Department of Highways. Mayor Graham has served as a public school teacher, as well as teaching at the college level, where he was an assistant professor and department chair.

You may reach Mayor Graham at ggraham@frankfort.ky.gov or at 502-875-8500. His address at City Hall is 315 West Second Street, Frankfort, Kentucky 40601.

Welcome to KBT, City of Frankfort !



34th Transportation Conference Has Record Number of Speakers and Attendance

Nearly 400 transportation advocates gathered in Lexington on January 19 and 20 to hear some 41 speakers addressing 29 cutting-edge transportation topics.

The two-day Conference was held at the Lexington Hyatt Regency, with meals and a reception being held in the adjacent Lexington Center, due to space considerations. Also, for a first time, 20 exhibitors joined the KBT Conference. In all, conference attendees were able to choose from 19 breakout session topics and attend five breakout sessions of at least 45 minutes, each.

On Thursday morning, State Highway Engineer Steve Waddle attracted an audience over 130 for his topic, "What the 2012 Construction Season Will Look Like".

At the Thursday Governor's Luncheon, Kentucky Governor Steve Beshsear told the audience, " we have achieved a lot, together." Beshear spoke of the need of all five modes operating in harmony to expand Kentucky's job market and workforce. He was interrupted several times by applause from the KBT crowd.

The Thursday afternoon General Session speakers included NTSB Chair Deborah Hersman, General Electric's Bradford Swann, and AASHTO's Jack Basso.

Chair Hersman challenged KBT transportation advocates to increase legislative support to improve distracted and drunk driving laws in Kentucky, and enact administrative license revocation, along with strengthened seat belt and child booster seat laws. "You guys know what needs to be done," Hersman told the audience. "Now is the time to put on a full court press. Now is the time to take a stand. How can we change people? How can we change behavior?" she asked.

Bradford Swann of GE presented a compelling PowerPoint presentation on the efforts of Greenville, South Carolina to accelerate the adoption of Electric Vehicles (EV) there. Thanks to the efforts of a wide variety of governments, employers and civic leaders, Greenville has more than 40 "quick charge" sites to encourage EV purchases.

AASHTO's Jack Basso, an experienced transportation policy maker in Washington, D.C was the third national speaker. "I went to work in 1964, and until 2008 the HTF always had money in it. But we are falling behind every year now, and the funding gap will continue to grow. If Congress fails to extend SAFETEA-LU, the HTF loses $110 million per day, if it is just shut down for one day!" So, what did Basso's crystal ball predict in the coming months? "Budget cuts are the order of the day, and the road ahead is, at best, unclear. In the end, the month of February will be very, very interesting," he concluded.

On Thursday evening, Speaker Greg Stumbo and Senate President David Williams shared speaking duties to the KBT crowd.

"We need a workable 6-year Road Plan, not one that's over programmed. It's all well and good to have your project in the 6-year Road Plan, but if it's not going to be funded and built, it shouldn't be in there," Speaker Stumbo said.

"Everyone should be interested in the Louisville Bridges Project as it is a daunting task, especially when considering the Brent Spence Bridge needs in Northern Kentucky," said Senate President Williams. "These are the most important logistical challenges in our state. Let me add that there is no need to criticize; instead we need to review and scrutinize. We need to think about maintenance costs, but everyone should be interested in these projects." In conclusion, President Williams said "we are going to do an orderly Road Plan. That you can count on. The General Assembly is in session, and we will start focusing on important issues at hand."

One of the more colorful conference comments was uttered by economist Ron Crouch, Director of Research & Statistics for the Kentucky Education & Workforce Development Cabinet in Frankfort. Crouch's topic was entitled, "What the 2010 Census Tells Us about Transportation Trends." While discussing the impact of China's economy on global consumption patterns, Crouch said, "the average Chinese home has four grandparents, two parents and one working adult son or daughter." His point: China's workforce is not sustainable, long-term.

Friday's Closing Luncheon speaker was Peter Rahn, Senior Vice President for HNTB. Rahn, the former leading state transportation official in both Missouri and New Mexico, urged transportation advocates to be more bold on funding issues. "Demand it," Rahn

House and Senate Transportation Committees Meet

This week, the House- Transportation Committee, chaired by Rep. Hubert Collins (Wittensville) and the Senate - Transportation Committee, chaired by Sen. Ernie Harris (Crestwood) met for the first time, each.

Three bills passed out of the House-Transportation Committee on Tuesday at 12:00 noon. HB 165, sponsored by Rep. Mike Denham (Maysville) requires that motorists have their headlights on if it is misting and raining to the extent that windshield wipers are needed. The penalty carries no fine and no court cost with the first offense. HB 221, sponsored by Rep. Rick Nelson (Middlesboro) will allow veterans to have a designation on their driver's license stating that they are a veteran at their first application, or when renewed.
Finally, HR 85, sponsored by Rep. Rick Nelson (Middlesboro) urges all corporate railroad officials in Kentucky to require that proper maintenance be conducted at all railroad crossings located in the Commonwealth. Both HB322 and HR85 passed with no dissenting votes and will go to the House floor.
The House Transportation Committee discussed, but took no action, on bills that would require slow-moving horse-drawn carriages to use special reflective tape and lanterns to better illuminate the carriages, because they are a serious safety hazard.

On Wednesday, January 25, the Senate Transportation Committee met for the first time and favorably considered SB 75, a measure which also deals with slow-moving horse-drawn carriages, sponsored by Sen. Ken Winters (Murray). Winters bill will go to the Senate floor in the coming days, and will likely be the bill which moves this issue through the 2012 General Assembly. At issue is a religious belief by the Amish sect in Western Kentucky that forbids them from displaying a bright orange slow-moving vehicle sign on the back of their buggies. Currently, a law suit on this issue is heading for the Ky. Supreme Court and expected to be heard this Spring.

KBT also wishes to commend Sen. Ernie Harris (Crestwood) for introducing SB 89, a bill which would expand Kentucky's seat belt requirement to apply to 12-passenger and 15-passenger vans. This issue was designated as one of five safety priorities by the KBT Board of Directors in September and November.



Natural Gas Truck Stops Are Expanding....

The United States is blessed with record supplies of natural gas and plenty of reasons to promote natural gas cars, but so far, individual consumers, manufacturers and fuel suppliers haven't shown much interest.

But that may be ready to change.

According to the international trade association Natural Gas Vehicles Global, there are 12.7 million natural gas vehicles in the world, but just 112,000 of them in the U.S. Most in the U.S. are fleets.

Lots of natural gas is available. In just a few years, domestic natural gas supply has increased by trillions of cubic feet, through shale finds. In fact, the increase in supply is making some natural gas producers consider plans to export U.S. natural gas in an effort to find new markets for the overflow.

The growth of natural gas vehicles in the United States, so far, has been dominated by public transit buses, taxis and garbage haulers. Only one car company, Honda, is commercially producing a natural gas fueled car, it's the Honda Civic NG. According to Honda, they have sold about 13,000 units, but it has been available for 13 years!

The reason for lackluster sales of natural gas vehicles are straight-forward: the fuel is only available at a handful of public stations. In fact, there are no public natural gas fueling stations in Kentucky, an issue Kentucky State Representative Steve Riggs (Louisville) brought to the attention of KBT, recently, when he placed a phone call to the KBT office. Another issue with natural gas vehicles is the fact that they can carry a higher purchase price or list price. Even though the pump price for natural gas can run $1 to $2 less per gallon for gasoline, natural gas engines. In most natural gas pumping stations, natural gas is priced in "gge" or gallon gasoline equivalent. Currently, public natural gas stations in Indiana, Ohio and Illinois are selling natural gas for $1.40 per gge to $1.85 per gge. WOW! What a savings!

The focus for the natural gas vehicle industry in the United States has been fuel-guzzlers: commercial vehicles, especially tractor-trailer rigs. Kentucky, it would seem, would be perfectly located for natural gas truck stops ---along I-75, I-64, I-71, I-65, I-24 and I-69. Watch this spot. It's going to change, and change fast.



Water Transportation Advisory Board: Feb. 7

The 7-member Kentucky Water Transportation Advisory Board will meet in Frankfort on Wednesday, February 7, 2012 beginning at 2:00 p.m. in Frankfort. The meeting will be held in Room C 106 in the Kentucky Transportation Cabinet Building at 200 Mero Street. Greg Pritchett (Henderson Riverport Authority) chairs the all-volunteer panel.

Agenda items include presentations by Mark Locker of the Ohio Department of Transportation. Locker will discuss the ODOT Maritime and Freight Program. Chuck Knowles of the Kentucky Transportation Center at UK will discuss waterways research efforts at KTC. KBT President Stan Lampe will brief the Advisory Board on pending legislation in the 2012 Session that has implications for waterways commerce.

The Water Transportation Advisory Board meetings are public meetings, and KBT members with interest in waterways commerce are encouraged to attend.



Our Readers Write .......

Two weeks ago, January 13, the KBT newsletter called on President Obama and the 112 th Congress to link their supportive words about transportation funding with real action as the 112th Congress reconvenes in Washington, D.C. following the Christmas holiday break. That article drew this response:

KBT ---

Right on the problems of the economy! Wish the "Stimulus" could have concentrated more on "Highway Engineering" and less on "Social Engineering". Keep up the good work!

Fletcher Gabbard

UK Professor of Physics (retired)

McKee, Kentucky

Louisville TV Editorial Hits The Bull's Eye !

WAVE TV-3, the NBC affiliate in Louisville, and Kentucky's first television station back in the 1950's has a new General Manager, Ken Salvaggi, who has been running hard-hitting editorials on a wide variety of subjects since coming to Louisville last summer. Yesterday, Thursday, January 26, the televised editorial said:

"Left unsaid among the tax talk during the President's State of the Union address, this week, was the archaic way we pay for our transportation network in this country. The cost of roads is up, more cars drive on them, and more miles are being driven. Yet, fuel tax revenue has dropped 20% over the past ten years. In the first three months of the year 2000, a total of $68 billion was collected in fuel taxes on the federal, state and local level. In the first three months of the year 2010, a total of $55 billion was collected. The reason is simple. The gas tax is on the fuel we buy and we are buying less because we are driving more fuel-efficient cars. And some of us are not buying gas at all to drive. The next generation of vehicles, powered by electricity, natural gas, hydrogen and compressed air are or will be driving on our roads for free. A user fee could be the answer but something must be done to address this issue before our roads join our bridges as crumbling infrastructure. And an economy struggling to move forward gets stalled again. We are seeing, firsthand, now how bridge closings can impact our economy. We don't want road closing to follow."

Thanks, WAVETV-3

Legislative Summary

Selected State Transportation Legislation

Selected State Transportation Legislation for KBT Members

(as of Thursday, January 26, 2012)

(Updated status of bills available at www.lrc.ky.gov)

Administrative

Airports

HB 124 (Rep. Wayne) Allow a planning unit to incorporate airport noise overlay districts within its zoning texts and maps; allow the planning unit to incorporate guidelines on building techniques and materials that are designed to provide acoustical insulation benefits. KBT Position: Monitor. To House - Local Government on 1/3.

Auto Dealerships

Bidding and State Contracting Practices

Building Materials, including Stone, Sand Gravel

DUI Legislation

Energy Conservation; Energy Standards

HB 167 (Rep. Marzian) Encourage greater energy efficiency, conservation, and the use of renewable energy resources in order to promote energy independence and energy security; established targeted low-income weatherization programs; other provisions. KBT Position: Monitor. To House - Tourism Development & Energy on 1/4.

HB 246 (Rep. Adkins)(28 co-sponsors). Relating to the promotion of alternative energy, expand the types of alternative and renewable energy eligible for incentives. KBT Position: Monitor. To Tourism Development and Energy Committee on 1/12; passed favorably from Committee on 1/26; to House Floor.

Fuels, Including All Transportation Fuels

HB 245 (Rep. Hall) Establish a tax credit for individuals who convert or retrofit vehicles to run on LNG or CNG; also establish tax credit for individuals who purchase new vehicles that do so. KBT Position: Monitor. To House - Approp. & Revenue on 1/11.

Highways, Streets & Bridges

Leases and Leasing Practices

SB 65 (Sen. Jensen) Provide that leases of motor vehicles or trailers which contain a terminal rental clause do not become or convert into sales contracts. KBT Position: Monitor. To Senate - Transportation on 1/4

License Plates, Operator's Licenses and Vehicle Registrations

SB 46 (Sen. Schickel) Permit a veteran to request, at the time of application, that a personal identification card or operator's license bear a designation denoting the applicant's status as a veteran. KBT Position: Monitor. To Senate- Transportation on 1/3.

SB 53 (Sen. Palmer) Direct KYTC to establish special NASCAR themed license plates; allow KYTC to enter into licensing agreement with NASCAR; direct that EF fees for NASCAR plates to be distributed to local health departments, in accordance with the number of plates issued in each county; set state fee for plate at $32 and EF fee at $10. KBT Position: Monitor. To Senate - Transportation on 1/3.

HB 95 (Rep. Steele) Permit a veteran to request, at the time of application, that a personal identification card or operator's license bear a designation denoting the applicant is a veteran.KBT Position: Monitor. To House - Veterans, Military Affairs & Public Safety on 1/3.

HB 105 (Rep. Butler) Require the design of the Purple Heart license plate include a picture of the Purple Heart medal and the words "Combat Wounded". KBT Position: Monitor. To House - Veterans, Military Affairs and Public Safety.

HB 194 (Rep. S. Lee) Permit a veteran, at the time of application or renewal, to request an operator's license bear a designation that the applicant is a veteran. KBT Position: Monitor. To House - Veterans, Military Affairs and Public Safety on 1/5

HB 195 (Rep. S. Lee) Require that an applicant for initial title and registration of a motor vehicle present a valid Kentucky operator's license or other proof of U.S. citizenship. KBT Position: Monitor. To House - Transportation on 1/5.

HB 197 (Rep. Pullin) Establish a new effective date for the I Support Veterans special license plate; require manufacturing to being no later than June 12, 2012. KBT Position: Monitor. To House - Veterans, Military Affairs and Public Safety on 1/5. Passed favorably out of Committee on 1/11; To House Floor. Passed House floor 99-0 on 1/18; To Senate - Transportation on 1/24.

HB 221 (Rep. Nelson) (42 co-sponsors) Permit a veteran, at the time of application or renewal, that a personal identification card or license may denote applicant's status as a veteran. KBT Position: Monitor. To House - Veterans, Military Affairs and Public Safety on 1/9. Passed favorably out of Committee on 1/24; To House Floor. Passed House floor vote 96-0 on 1/26.

HB 327 (Rep. Osborne) Allow renewal of an operator's license by mail for a license holder residing temporarily out of state while enrolled in full-time postsecondary educational institution. KBT Position: Monitor. Introduced on 1/26; not yet assigned to a Committee.

Public Transit

Rail and Railroads

HR 14 (Rep. Nelson) Urge CSX officials to require the maintenance of all CSX railroad crossings located in the Commonwealth. KBT Position: Opposed. To House - Transportation on 1/3.

HR 85 (Rep. Nelson) Urge corporate railroad officials to require the maintenance of all railroad crossings located in the Commonwealth. KBT Position: Monitor. To House - Transportation Committee on 1/20; passed favorably out Committee on 1/24; To Consent Calendar To House Floor; potentially posted for passage on Tuesday, January 31.

Safety

SB 75 (Sen. Winters)(7 co-sponsors) Allow slow-moving, motor-less vehicles operating at night to use markings of reflective tape, rather than using the slow-moving vehicle emblem. KBT Position: Monitor. To Senate - Transportation on 1/5. Passed favorably out of Committee on 1/25; To Rules Committee, add amendment to declare an emergency;

HB 30 (Rep. Mills) (8 co-sponsors) Allow local school boards to sell advertising on school buses; prohibit certain types of advertising; require annual reporting. KBT Position: Opposed. To House - Education on 1/3; Posted in Committee on 1/5; Voted Favorably out of Committee on 1/10 to House floor. Passed House 67 to 29 on 1/18; to Senate; to Senate- Education Committee on 1/24.

HB 64 (Rep. Keene) Expand instances to allow ignition interlock devices be installed, including driving the wrong way on a four-lane highway; establish an ignition interlock assistance fund operated by KYTC for indigent offenders. KBT Position: Monitor. To House - Judiciary on 1/3.

HB 86 (Rep. Embry) Add "mini-trucks" to the definition of motor vehicles; permit mini-trucks on public roadways with a posted speed limit of 45 MPH or less; require operators/owners of mini-trucks to comply with insurance, title and registration and useage tax requirements as motor vehicle. KBT Position: Opposed. To House - Transportation on 1/3.

HB 114 (Rep. Crimm) Provide alternate lighting system for slow-moving, motor-less vehicles operated at night; provide for marking motor-less vehicles with reflective tape rather than using the slow-moving emblem. KBT Position: Monitor. To House - Transportation on 1/3.

HB 133 (Rep. Bell) Provide for a means of marking motor-less slow-moving vehicles with reflective tape rather than using the slow-moving vehicle emblem. KBT Position: Monitor. To House - Transportation on 1/3.

HB 165 (Rep. Denham) Require motorists to illuminate headlights during any period of precipitation that necessitates the use of their windshield wipers. KBT Position: Monitor. To House - Transportation on 1/4. Passed favorably out of Committee on 1/24; To House floor; potentially vote on Monday, 1/30.

HB 184 (Rep. Meeks) Require that KYTC forward a copy of all uniform traffic citations issued to drivers under 18 years of age to the parent or guardian. KBT Position: Monitor. To House - Transportation on 1/4.

HB 199 (Rep. Butler) Require that information contained on a diabled parking placard be written on a tamper-evident sticker that is color coded based on the year in which the placard expires. KBT Position: Monitor. To House - Transportation on 1/5.

HB 283 (Rep. Harmon) relating to driving under the influence; restructure current four-tiered penalty structure to a three-tier penalty structure; expand the five-year look back window for prior offenses to a ten-year look back. KBT Position: Support. To House- Judiciary Committee on 1/20.

HB 328 (Rep. R. Adams) Allow person who has received an intermediate operator's license to apply for a motorcycle instruction permit; make motorcycle instruction permit good for 1 year with ability to renew the permit one time; allow person with expired motorcycle instruction permit to apply for motorcycle operators license if the person can present proof of successful completion of motorcycle safety education course. KBT Position: Support. Introduced on 1/26; not yet assigned to a Committee.

State Tax Code / Transportation Budget Bills/ Road Fund

HB 46 (Rep. Nemes) Allow for local option election for expanded gaming, not held on primary and regular election days; establish commission for as agency to solicit bids for casino gaming; establish procedure for evaluating bids for full casinos. KBT Position: Support. To House - Licensing & Occupations on 1/3.

HB 120 (Rep. Farmer) Make trade-in allowance permanent for motor vehicles purchased on or after 10/1/2012; amend tax code to expand sales and use tax to include selected services; lower sales and use tax rate; tax all pass-through entities at a flat rate of 2.5%; modify the tax rates for llc entities; decrease wholesale alcohol tax to 5.5 % from current rate of 11%. KBT Position: Monitor. To House - Appropriations & Revenue on 1/3.

HB 140 (Rep. Keene) Create a new section of KRS 154A to require that local option elections for the approval of casino gaming in counties with population greater than 90,000 or in cities of the fourth class or greater; specify license fees and stipulate requirements for licensing. KBT Position: Support. To House - Licensing & Occupations on 1/3.

HB 266 (Rep. Rand) Provide appropriations and financing for the operators, maintenance, support and functioning of the Kentucky Transportation Cabinet. KBT Position: Monitor. To House- Appropriations & Revenue Committee on 1/18;

HB 267 (Rep. Rand) (5 co-sponsors) Establish the fiscal year 2012-2014 Biennial Highway Construction Plan; declare an emergency (bill becomes law upon the signature of the Governor)KBT Position: Monitor; To House - Appropriations & Revenue Committee on 1/18.

HB 277 (Rep. J. Richards) Require the Secretary of State to create a standard form, to be used by all local tax districts for the filing of returns of net profits, gross receipts and occupational license taxes. KBT Position: Monitor. To House - Local Government Committee on 1/20.

Waterway

SB 83 (Sen. Palmer) Create a water vessel removal assistance fund to be administered by the Kentucky River Authority; require the Kentucky River Authority to establish criteria for when removal of abandoned water vessel is necessary. KBT Position: Monitor. To Senate - Transportation on 1/9.

HB 93 (Rep. Gregory) Clarify that the Rules of the Road for personal watercraft are part of the Inland Navigation Rules and provide specific citation for those rules. KBT Position: Monitor. To House - Transportation on 1/3.

HB 154 (Rep. Bell) Allow for an alternative apportionment method to tax commercial watercraft if the statutory method does not adequately reflect the use of watercraft by a company in this state. KBT Position: Support. To House - Appropriations & Revenue on 1/3.

SB 112 (Sen. McGaha) Relating to boating while under the influence; establish a new penalty scheme for boating while intoxicated; amend current statute to allow for arrest based on probable cause for boating while intoxicated. KBT Position: Monitor. To Senate - Judiciary on 1/24.



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