Rep. Calvert Hails National Transportation Commission's Call for a Federal Freight Fee to Fund Transportation Projects

Press Release

Rep. Calvert Hails National Transportation Commission's Call for a Federal Freight Fee to Fund Transportation Projects

Today, the National Surface Transportation Policy and Revenue Study Commission released its report to Congress, "Transportation for Tomorrow," addressing our national surface transportation system. The report outlines the Commission's assessment of the current condition of our surface transportation system, determines future needs and possible financing mechanisms to fund improvements to the system.

"I commend the Commission for appropriately placing such a strong emphasis on the need to address our freight infrastructure," said Rep. Calvert. "The only way we are ever going to get a leg up on addressing our transportation needs is by dedicating funds toward our most critical projects. In the greater southern California region that means we have to find dedicated funding streams to help move goods through our region so they are not blocking traffic for parents driving their kids to school and workers commuting to work."

In the report the Commission "recommends that a Federal freight fee help finance freight-related improvements as part of an overall freight program" (Volume I, 42). Additionally, the report calls on Congress to "consider whether to implement a freight fee (e.g., a container charge, freight waybill surcharge, or other equitable fee) to fund projects that remediate chokepoints and increase throughput" (Volume II, 5-23). The Commission's complete report can be found at www.transportationfortomorrow.org .

"Many of the Commission's recommendations mirror the policy outlined in the ON TIME Act legislation that I have been working on for the past year," continued Rep. Calvert. "I will work with members of the Commission and my colleagues in Congress to ensure my freight fee legislation is part of any transportation policy enacted into law. Southern California must come together behind a Federal freight fee policy that will help fund critical improvements in our region to keep our goods and our commuters moving."

Rep. Calvert's ON TIME Act will fund the construction of high priority transportation projects which alleviate congestion in our nation's trade gateway corridors through a dedicated trade-based funding stream.

The ON TIME Act:

-Directs DOT to define National Trade Gateway Corridors extending out up to 300 miles from every U.S. port of entry (sea, land, and air)

-Empowers state transportation agencies to prioritize and select eligible projects located in the National Trade Gateway Corridors

-Sets forth a .075 % fee (capped at $500) on the value of freight moving in and out of our nation's ports of entry

-100% of the fee is dedicated to transportation projects in the Corridor in which it is collected

- Requires projects to have a 80% federal, 20% non-federal match cost share

- Sunsets in 10 years

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