In This Issue

	Pennsylvania Turnpike gets $12.8B Bid
	Missouri Lawmakers OK Truck Lane Restrictions
	Ohio Gov. Wants Turnpike Revenue
	Gov. Issues Executive Order to Ease I-5 Construction Congestion
	Bond Issue Decision Due in Oklahoma

Pennsylvania Turnpike gets $12.8B Bid

HARRISBURG, Penn. - A $12.8 billion bid is the winner of an auction for a 75-year lease of the Pennsylvania Turnpike, Gov. Ed Rendell reported this week. A consortium of U.S.-based Citibank and Spanish toll-road operator Abertis Infraestructuras was the highest of the three bidders, which will also implement a capital investment plan in excess of $5.5 billion for the turnpike.

The second-highest bid of $12.1 billion came from New York’s Goldman Sachs Group and Transurban Group, Australia’s second-largest toll-road operator. A bid of $8.1 billion was submitted by Sydney’s Macquarie Infrastructure Group and Cintra, of Madrid. Since their offer was not within 10 percent of the highest bid, the partners were not allowed to make a best and final offer at the end of the week, Rendell said.

The $12.8 billion lease payment would be dedicated to road and bridge repair and support 73 public transit agencies across the state. By investing the money for the long term, the lease plan would generate annual payouts for transportation over the life of the 75-year lease. The private investor would be guaranteed a 25-percent toll increase in 2009, and could increase tolls by 2.5 percent each year, with all increases indexed for inflation.

Gov. Rendell wants to lease the 537-mile turnpike for 75 years if the federal government rejects the state’s application to toll I-80. The lease would help cover the $1.7 billion funding gap in the state’s transportation funding. Rendell said he is confident the General Assembly will pass enabling legislation by the time it recesses for the summer on June 30.

“Leasing the turnpike will deliver more per year than the I-80 tolling plan,” Gov. Rendell said. “Pennsylvania will get more and pay less, and that’s a good deal as far as I’m concerned. I hope the legislature will give this proposal the serious consideration it deserves so all Pennsylvanians can begin benefiting from the additional funding.”

Missouri Lawmakers OK Truck Lane Restrictions

Missouri - In the final hours of the legislative session in Missouri, Senate and House legislators came to an agreement on an extensive bill that includes provisions prohibiting trucks from driving in the far left lane on specific roads in the metro areas of St. Louis and Kansas City. Advocates for the bill say keeping trucks over 48,000 pounds out of the far left lane of “urbanized” roadways that have a minimum of three lanes of traffic in each direction makes the roads safer for all travelers.

The Missouri-based truckers group, Owner-Operator Independent Drivers Association, says that theory is far from the truth. “Adopting lane restrictions is an ill-advised step to take,” said OOIDA Executive Vice President Todd Spencer, adding that the group opposes lane restrictions for any class of vehicle. “Such restrictions invariably cause more problems than they fix. When you start restricting vehicles to certain lanes, you end up with more vehicles tailgating and making unsafe passing maneuvers in all lanes. This isn’t good for congestion or highway safety.”

A similar law was approved last year, which prohibits trucks heavier than 24,000 pounds from driving in the left-most lane of Interstate 70 within three miles of the state Route 370 intersection in St. Charles County. The new bill also contains provisions that would allow local enforcement of truck rules, and an incentive to reduce idling. The new bill now goes to Gov. Matt Blunt’s desk for his signature.

Ohio Gov. Wants Turnpike Revenue

TOLEDO, OH – Gov. Ted Strickland wants to use $200 million in Ohio Turnpike profits over the next ten years to help fund his $1.87 billion economic stimulus package. State law currently requires Ohio Turnpike profits to be spent within a one mile radius of the toll road, but city and state officials say the governor is vying for a new way to allocate the revenue.

Critics of the plan say the money should stay in northern Ohio, where the turnpike is located, instead of being used statewide, as the governor’s plan would allow. In the past, toll revenue from the turnpike was used for infrastructure improvements on the turnpike or connecting roadways, according to Senator Mark Wagner, who is opposed to the governor’s idea. He says if the allocation of the revenue is changed, it should still be used within twenty miles of the turnpike, because northern Ohio residents are the ones who use the tollway most.

Toledo Mayor Carty Finkbeiner and other northern Ohio mayors have already sent letters to the governor, challenging his proposal. The legislature has until Monday to suggest amendments to the governor’s plan.

This is an interesting policy question: Where should excess funds be spent that are generated through tolling? If you toll an interstate, current regulations require excess funds to be spent solely on that facility. In the Ohio situation, they must be spent adjacent to the facility unless the Governor changes those rules. In Indiana and other areas, the money is more flexible. Should tolls in a congested urban corridor pay for roadway improvements in rural parts of a state? Does one region subsidize another? Does the viability of the Ohio Turnpike result in good things for rural Ohio? I am personally a fan of following the normal programming process for allocating these dollars based on the best thinking of people who know what the needs are. TW

Gov. Issues Executive Order to Ease I-5 Construction Congestion

California - The governor of California issued an executive order this week to help ease congestion during the Fix I-5 project. Gov. Arnold Schwarzenegger’s order encourages state workers in the Sacramento area to take on alternative work schedules and transportation options. I-5 carries 200,000 workers each day, and state workers represent one of the largest commuter groups in the Sacramento area, with 75,000 workers in and around downtown.

“Fixing our freeways and ensuring the efficient movement of goods and people throughout our state is important to keeping our economic engine strong,” Gov. Schwarzenegger said. “To create a faster and safer commute here in Sacramento during construction, I’m encouraging all state agencies to promote creative options for state workers. By getting more cars off the road, we can help relieve traffic headaches while also cutting down on air pollution from idling cars.”

Highlights of the executive order include direction to agency secretaries and department directors to encourage telecommuting programs, alternative work schedules, public transit, teleconferencing, and requests participation from private companies as well. The order also directs the Department of Personnel Administration to issue operating guidelines and provide assistance to state departments and agencies to ensure smooth implementation.

A growing number of public/private partnerships support the effort to promote work and traffic alternatives during the I-5 closure, including Chevron, Environmental Defense, HP, Comcast Cable and others. The state’s partners will also help fund and offer technical support for a final report on the executive order’s effectiveness. Work on the $27 million Fix I-5 project is set to begin May 30.

Bond Issue Decision Due in Oklahoma

Oklahoma - Legislators in Oklahoma are nearing the end of the 2008 session this week, and with it comes the time to make a decision on a multimillion-dollar bond issue. House Speaker Chris Benge, R-Tulsa, said there was a 50-50 chance the bond would be decided by the session’s end at 5 p.m. on Friday,

The bond was introduced after lawmakers realized that the tight budget for 2009 left no money for certain needs including transportation. While some legislators want the bond for highways only, while others want it to cover much more. Numbers as high as $1.7 billion have been discussed, although lower amounts are more likely to advance.

Rep. Guy Liebmann, R-Oklahoma City, is pushing for $256 million in bonds to fund the department of transportation’s highway and bridge improvement and construction plans over the next eight years. Counties are hoping for $100 million - $75 million immediately to pay for repairs to roads and bridges, particularly those damaged by floods, tornadoes and ice storms in the last few years, and $25 million to create a revolving fund to pay for other road projects.

For those looking to become familiar with climate change and the transportation impacts associated with it you should get a copy of the just published AASHTO piece entitled: “Primer on Transportation and Climate Change.” It won’t qualify you to produce any movies but will be a good start for understanding what is going on and the possible impacts it will have on transportation policy and operations. TW