Dear Highway Users:

In a June 18 press release, USDOT Secretary Mary Peters reported that Americans drove 1.4 billion fewer miles on highways in April of 2008 than in April of 2007. Furthermore, that number is also 400 million less than March of this year! When looking at the miles traveled on all public roads vs. only highways, Secretary Peters pointed out that an astounding 30 billion miles less had been driven between November of 2007 and April versus the comparable time period a year ago.

The press release also referred to the rapid decline in the purchase of SUVs and the new rise of purchasing more fuel-efficient vehicles.

To see the full press release, please visit:
http://www.dot.gov/affairs/dot8408.htm

As if that does not ring enough alarm bells, new numbers concerning the revenues going into the state Highway Fund are proving pretty dire as well.

A weak economy combined with record gas and diesel prices are causing the expected revenues being collected over the current biennium to fall $85.7 million short of the projections used to build NDOT and DMV budgets. For the new fiscal year that began last week, expectations are that there will be a $57.7 million shortfall (11.5%) compared to estimates.

For more information, please visit:
http://www.nevadaappeal.com/article/
20080708/NEWS/819417028/-1/rss02

The challenges of high gas prices are being acutely felt and will dramatically impact our state’s highways. And this at the same time Nevada already faced a looming transportation funding shortfall.

Sincerely,

Nevada Highway Users Alliance

Last Transportation Issues Meeting Moved from August 26 to August 5

August 5, 2008 at 1:30pm
Grant Sawyer State Office Building - Rm 4401
555 E. Washington Ave.
Las Vegas, NV

Videoconference to:
Legislative Building - Rm 3138
401 S. Carson St.
Carson City, NV
For more information,
please visit:
http://www.leg.state.nv.us/74th/
Interim/Scheduler/committeeIndex.cfm?ID=10174

Virginia Senate OKs fuel tax increase
Meeting in a special session to work on hammering out a deal for transportation funding, the Virginia Senate approved a bill that would increase the state’s fuel tax to 23.5 cents per gallon.

The Democratic-led Senate voted 21-16 to advance a bill that would increase the per-gallon tax on diesel and gas by 6 cents during the next six years. The measure – SB6009 – is awaiting consideration on the House floor as lawmakers reconvene this week.

However, it is expected that the bill will fail in its current form because of a lack of support for a fuel tax increase in the Republican-controlled House.

For more information, please visit:
http://www.landlinemag.com/todays_news/Daily/
2008/Jul08/070708/070708-03.htm

West Virginia Legislature OKs fuel tax freeze and Other State Actions
For the second time in three years, West Virginia Gov. Joe Manchin has stepped in to prevent an automatic state gas tax increase by signing a bill passed by the House and Senate during a special session on Wednesday, June 25. The measure stops an increase in the state’s 32.2-cent-per-gallon fuel tax rate scheduled for Jan. 1, 2009.

In other states similar actions have also been taken as the pain at the pump has been increasing. These actions have taken place in Georgia and Connecticut and efforts are also currently underway in North Carolina.

For more information, please visit:
http://www.landlinemag.com/todays_news/Daily/2008/
Jun08/062308/062608-02.htm

Proposed fuel tax holidays a no-go in Louisiana
Meanwhile, despite the efforts in many states to freeze gas tax rates, multiple attempts in the Louisiana House have not moved forward.

One resolution sought to offer people fueling with gas or diesel a four-month break on fuel taxes while another effort called for a respite during the Fourth of July holiday weekend. One would have cost the state $152 million, the other $4 million. That money is earmarked for the state transportation fund.

For more information, please visit:
http://www.landlinemag.com/todays_news/Daily/2008/
Jul08/063008/070308-04.htm

Senators call for Highway Trust Fund to be fixed – now
Sixty-seven U.S. senators have signed a letter calling on Senate leadership to approve legislation to fix the Highway Trust Fund. In the letter dated Friday, June 20, the senators get right to the point, stating that the purchasing power of the Highway Trust Fund continues to decline in hard times and without new revenue.

If left unaddressed, the trust fund will likely go broke sometime in 2009, Boxer and Inhofe wrote. “We urge you to support fixing this looming crisis this fiscal year,” the senators stated in the letter addressed to Senate Majority Leader Harry Reid, D-NV; Senate Minority Leader Mitch McConnell, R-KY; Finance Committee Chairman Max Baucus, D-MT; and Chuck Grassley, R-IA, the ranking Republican on the Finance Committee.

For more information, please visit:
http://www.landlinemag.com/todays_news/Daily/2008/
Jun08/062308/062508-01.htm

Senator asks if nation's drivers should slow down
An influential Republican senator suggested last week that Congress might want to consider reimposing a national speed limit to save gasoline and possibly ease fuel prices.

Sen. John Warner, R-Va., asked Energy Secretary Samuel Bodman to look into what speed limit would provide optimum gasoline efficiency given current technology. He said he wants to know if the administration would support efforts in Congress to require a lower speed limit.

In 1974, Congress set a national speed limit of 55 mph because of energy shortages caused by the Arab oil embargo. The speed limit was repealed in 1995 when crude oil dipped to $17 a barrel and gasoline cost $1.10 a gallon.

For more information, please visit:
http://ap.google.com/article/

Federal Gas Tax Holiday Would Cost Nevada’s Highways $20 Million/Month if Law is Amended
As reported to you in the April 30 edition of this newsletter, NRS 365.185 allows our state to assess an additional gas tax if the federal gas tax were reduced or discontinued. This situation would arise if a federal gas tax “holiday” were declared as has been suggested by several presidential candidates over the past few months.

During the special session held on June 27, Senator Dina Titus proposed an amendment to one of the bills being considered that would have eliminated this assessment in the event a temporary suspension of the federal gas tax occurs. NDOT estimated that the negative impact to the state’s Highway Fund would be $20 million per month in lost revenue.

The amendment was not considered by the Committee of the Whole in the Senate.

Project would need exemption from law banning such lanes
The Nevada Transportation Board approved concept for a 19-mile toll lane through Las Vegas has received further consideration from a Legislative Commission subcommittee studying transportation issues. The subcommittee will continue to study the proposed project at an August workshop. The panel will then decide whether to recommend the project.

Whether a recommendation comes from the subcommittee or not, legislation on toll lanes probably will be drafted by the governor's office and brought before lawmakers, a transportation official said. But the proposal needs to overcome a major hurdle: Toll roads are now not permitted in Nevada and will require a specific exemption in current law.

The demonstration project toll lanes would remain free for emergency vehicles, transit buses and for cars with three or more passengers. A fee would be charged for vehicles with one or two persons. The amount of the fee has not been decided, but state officials have speculated that it could be as little as 10 cents per mile during off-peak travel times and as much as $1 per mile during peak travel times. The plan calls for flyover lanes connecting I-15 and U.S. 95, and motorists using the toll lanes could avoid onramps and offramps at the Spaghetti Bowl.

Private investment would cover nearly all of the costs of the project, about $1.4 billion, and the annual $1 million maintenance fee.

A subsequent editorial in the Las Vegas Review Journal expresses both a desire for caution in pursuing this type of project, but acknowledged that such private partnerships could be useful under certain circumstances.

For more, please visit:
http://www.lvrj.com/news/22854509.html

Part of Property Tax in Clark and Washoe County Moving to NDOT to Help Local Projects
Almost 20 new laws that were approved by the Legislature last year took effect this week. Of particular interest to those watching transportation issues is AB 595 (2007 Session) which requires Clark and Washoe counties to transfer a portion of the proceeds from a 5 cent property tax for capital projects to the state. The percentage going to the state increases each year until a full 3 cents is reached in FY 2012-13. The funds will go into a separate account in the Highway Fund and be used for projects in the county in which the tax was collected.

For more info on other laws, please visit:
http://www.lasvegassun.com/news/2008/jul/
02/new-laws-affect-millions-nevada/

Efforts to divert room taxes, alter vote requirement killed
Initiative petitions seeking to divert room taxes from the Las Vegas convention authority to state needs, including transportation and education, will not be on the November ballot, a Carson City district judge recently ruled.

A third petition, requiring a two-thirds vote to approve ballot measures that would raise taxes, was disqualified too.

All three were disqualified by Judge James Todd Russell because of problems with affidavits signed by the signature gatherers. A decision has not yet been made on whether to appeal to the Nevada Supreme Court.

For more information, please visit:
http://www.lvrj.com/news/22854484.html

2009 Legislative Session Bill Updates
As we approach the 2009 legislative session, the Coalition plans to keep everyone aware of legislation that can be expected to be introduced, especially those bills that would have a direct impact on transportation funding. While the following bills are now in the process of being drafted, and are not fully available for analysis, several appear to be worth close monitoring.

Bill Draft Request (BDR) 7 by Senator Amodei
Joint Requester: Senator Care
Enacts various changes pertaining to generation of revenue for transportation projects.

BDR 36 by Senator Washington
Revises the provisions governing the composition of regional transportation commissions in larger counties to include Legislators.

BDR 40 by Assemblyman Ohrenschall
Authorizes the operation of certain fuel-efficient hybrid electric vehicles in lanes reserved for HOV, regardless of the # of passengers.

BDR 55 by Assembly Committee on Transportation
Provides for a study of the feasibility of mass transportation in Nevada.

BDR 92 by Senate Committee on Transportation and Homeland Security
Makes various changes regarding state and local coordination of transportation projects.