NATIONAL INFRASTRUCTURE BANK: MORE BUREAUCRACY AND MORE RED TAPE pptx

U . S . GOVERNMENT PRINTING OFFICE WASHINGTON : For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 70–681 PDF 2012 NATIONAL INFRASTRUCTURE BANK: MORE BUREAUCRACY AND MORE RED TAPE (112–55) HEARING BEFORE THE SUBCOMMITTEE ON HIGHWAYS AND TRANSIT OF THE COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE HOUSE OF REPRESENTATIVES ONE HUNDRED TWELFTH CONGRESS FIRST SESSION OCTOBER 12, 2011 Printed for the use of the Committee on Transportation and Infrastructure ( Available online at: http://www.gpo.gov/fdsys/browse/ committee.action?chamber=house&committee=transportation VerDate Aug 31 2005 09:59 Apr 25, 2012 Jkt 000000 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 P:\HEARINGS\112\HT\2011\10-12-~1\70681.TXT JEAN COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE JOHN L. MICA, Florida, Chairman DON YOUNG, Alaska THOMAS E. PETRI, Wisconsin HOWARD COBLE, North Carolina JOHN J. DUNCAN, J R ., Tennessee FRANK A. L O BIONDO, New Jersey GARY G. MILLER, California TIMOTHY V. JOHNSON, Illinois SAM GRAVES, Missouri BILL SHUSTER, Pennsylvania SHELLEY MOORE CAPITO, West Virginia JEAN SCHMIDT, Ohio CANDICE S. MILLER, Michigan DUNCAN HUNTER, California ANDY HARRIS, Maryland ERIC A. ‘‘RICK’’ CRAWFORD, Arkansas JAIME HERRERA BEUTLER, Washington FRANK C. GUINTA, New Hampshire RANDY HULTGREN, Illinois LOU BARLETTA, Pennsylvania CHIP CRAVAACK, Minnesota BLAKE FARENTHOLD, Texas LARRY BUCSHON, Indiana BILLY LONG, Missouri BOB GIBBS, Ohio PATRICK MEEHAN, Pennsylvania RICHARD L. HANNA, New York JEFFREY M. LANDRY, Louisiana STEVE SOUTHERLAND II, Florida JEFF DENHAM, California JAMES LANKFORD, Oklahoma REID J. RIBBLE, Wisconsin CHARLES J. ‘‘CHUCK’’ FLEISCHMANN, Tennessee NICK J. RAHALL II, West Virginia PETER A. D E FAZIO, Oregon JERRY F. COSTELLO, Illinois ELEANOR HOLMES NORTON, District of Columbia JERROLD NADLER, New York CORRINE BROWN, Florida BOB FILNER, California EDDIE BERNICE JOHNSON, Texas ELIJAH E. CUMMINGS, Maryland LEONARD L. BOSWELL, Iowa TIM HOLDEN, Pennsylvania RICK LARSEN, Washington MICHAEL E. CAPUANO, Massachusetts TIMOTHY H. BISHOP, New York MICHAEL H. MICHAUD, Maine RUSS CARNAHAN, Missouri GRACE F. NAPOLITANO, California DANIEL LIPINSKI, Illinois MAZIE K. HIRONO, Hawaii JASON ALTMIRE, Pennsylvania TIMOTHY J. WALZ, Minnesota HEATH SHULER, North Carolina STEVE COHEN, Tennessee LAURA RICHARDSON, California ALBIO SIRES, New Jersey DONNA F. EDWARDS, Maryland ( II ) VerDate Aug 31 2005 09:59 Apr 25, 2012 Jkt 000000 PO 00000 Frm 00002 Fmt 0486 Sfmt 0486 P:\HEARINGS\112\HT\2011\10-12-~1\70681.TXT JEAN S UBCOMMITTEE ON H IGHWAYS AND T RANSIT JOHN J. DUNCAN, J R ., Tennessee, Chairman DON YOUNG, Alaska THOMAS E. PETRI, Wisconsin HOWARD COBLE, North Carolina FRANK A. L O BIONDO, New Jersey GARY G. MILLER, California TIMOTHY V. JOHNSON, Illinois SAM GRAVES, Missouri BILL SHUSTER, Pennsylvania SHELLEY MOORE CAPITO, West Virginia JEAN SCHMIDT, Ohio CANDICE S. MILLER, Michigan ANDY HARRIS, Maryland ERIC A. ‘‘RICK’’ CRAWFORD, Arkansas JAIME HERRERA BEUTLER, Washington FRANK C. GUINTA, New Hampshire LOU BARLETTA, Pennsylvania BLAKE FARENTHOLD, Texas LARRY BUCSHON, Indiana BILLY LONG, Missouri BOB GIBBS, Ohio RICHARD L. HANNA, New York, Vice Chair STEVE SOUTHERLAND II, Florida JOHN L. MICA, Florida (Ex Officio) PETER A. D E FAZIO, Oregon JERROLD NADLER, New York BOB FILNER, California LEONARD L. BOSWELL, Iowa TIM HOLDEN, Pennsylvania MICHAEL E. CAPUANO, Massachusetts MICHAEL H. MICHAUD, Maine GRACE F. NAPOLITANO, California MAZIE K. HIRONO, Hawaii JASON ALTMIRE, Pennsylvania TIMOTHY J. WALZ, Minnesota HEATH SHULER, North Carolina STEVE COHEN, Tennessee LAURA RICHARDSON, California ALBIO SIRES, New Jersey DONNA F. EDWARDS, Maryland EDDIE BERNICE JOHNSON, Texas ELIJAH E. CUMMINGS, Maryland NICK J. RAHALL II, West Virginia (Ex Officio) ( III ) VerDate Aug 31 2005 09:59 Apr 25, 2012 Jkt 000000 PO 00000 Frm 00003 Fmt 0486 Sfmt 0486 P:\HEARINGS\112\HT\2011\10-12-~1\70681.TXT JEAN VerDate Aug 31 2005 09:59 Apr 25, 2012 Jkt 000000 PO 00000 Frm 00004 Fmt 0486 Sfmt 0486 P:\HEARINGS\112\HT\2011\10-12-~1\70681.TXT JEAN (V) CONTENTS Page Summary of Subject Matter vi TESTIMONY Ridley, Hon. Gary, Secretary of Transportation, Oklahoma Department of Transportation 11 Roth, Gabriel, Civil Engineer and Transport Economist, The Independent Institute 11 Thomasson, Scott, Economic and Domestic Policy Director, Progressive Policy Institute 11 Utt, Ronald D., Ph.D., Herbert and Joyce Morgan Senior Research Fellow, The Heritage Foundation 11 Yarema, Geoffrey S., Chair, Infrastructure Practice Group, Nossaman LLP 11 PREPARED STATEMENTS SUBMITTED BY MEMBERS OF CONGRESS Johnson, Hon. Eddie Bernice, of Texas 47 PREPARED STATEMENTS SUBMITTED BY WITNESSES Ridley, Hon. Gary 50 Roth, Gabriel 59 Thomasson, Scott 67 Utt, Ronald D., Ph.D. 79 Yarema, Geoffrey S. 90 SUBMISSIONS FOR THE RECORD Ridley, Hon. Gary, Secretary of Transportation, Oklahoma Department of Transportation responses to questions from Hon. John J. Duncan, Jr., a Representative in Congress from the State of Tennessee, and Hon. Mazie K. Hirono, a Representative in Congress from the State of Hawaii 55 Roth, Gabriel, Civil Engineer and Transport Economist, The Independent Institute: Supplementary remarks submitted for the record 38, 41 Responses to questions from Hon. John J. Duncan, Jr., a Representa- tive in Congress from the State of Tennessee, and Hon. Mazie K. Hirono, a Representative in Congress from the State of Hawaii . 65 Utt, Ronald D., Ph.D., Herbert and Joyce Morgan Senior Research Fellow, The Heritage Foundation, responses to questions from Hon. John J. Dun- can, Jr., a Representative in Congress from the State of Tennessee, and Hon. Mazie K. Hirono, a Representative in Congress from the State of Hawaii 87 Yarema, Geoffrey S., Chair, Infrastructure Practice Group, Nossaman LLP: Supplementary remarks submitted for the record 39 Responses to questions from Hon. Mazie K. Hirono, a Representative in Congress from the State of Hawaii, and Hon. Laura Richardson, a Representative in Congress from the State of California 97 ADDITIONS TO THE RECORD American Society of Civil Engineers, written statement 100 Hutchison, Hon. Kay Bailey, a U.S. Senator from the State of Texas, letter to Hon. John L. Mica, a Representative in Congress from the State of Florida, October 12, 2011 105 VerDate Aug 31 2005 09:59 Apr 25, 2012 Jkt 000000 PO 00000 Frm 00005 Fmt 5904 Sfmt 5904 P:\HEARINGS\112\HT\2011\10-12-~1\70681.TXT JEAN vi VerDate Aug 31 2005 09:59 Apr 25, 2012 Jkt 000000 PO 00000 Frm 00006 Fmt 6602 Sfmt 6602 P:\HEARINGS\112\HT\2011\10-12-~1\70681.TXT JEAN Insert offset folio 1 here 70681.001 vii VerDate Aug 31 2005 09:59 Apr 25, 2012 Jkt 000000 PO 00000 Frm 00007 Fmt 6602 Sfmt 6602 P:\HEARINGS\112\HT\2011\10-12-~1\70681.TXT JEAN Insert offset folio 2 here 70681.002 viii VerDate Aug 31 2005 09:59 Apr 25, 2012 Jkt 000000 PO 00000 Frm 00008 Fmt 6602 Sfmt 6602 P:\HEARINGS\112\HT\2011\10-12-~1\70681.TXT JEAN Insert offset folio 3 here 70681.003 ix VerDate Aug 31 2005 09:59 Apr 25, 2012 Jkt 000000 PO 00000 Frm 00009 Fmt 6602 Sfmt 6602 P:\HEARINGS\112\HT\2011\10-12-~1\70681.TXT JEAN Insert offset folio 4 here 70681.004 VerDate Aug 31 2005 09:59 Apr 25, 2012 Jkt 000000 PO 00000 Frm 00010 Fmt 6602 Sfmt 6602 P:\HEARINGS\112\HT\2011\10-12-~1\70681.TXT JEAN [...]... ‘ National Infrastructure Bank: More Bureaucracy and More Red Tape. ’’ This is certainly a prematurely formed opinion on this matter, and I hope that the majority will keep an open mind on the proposal of a national infrastructure development bank, moving ahead The creation of the national infrastructure development bank to leverage private and public capital to finance nationally and regionally significant infrastructure. . .NATIONAL INFRASTRUCTURE BANK: MORE BUREAUCRACY AND MORE RED TAPE WEDNESDAY, OCTOBER 12, 2011 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON HIGHWAYS AND TRANSIT, COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE, Washington, DC The subcommittee met, pursuant to notice, at 10:00 a.m in Room 2167, Rayburn... does set the standard for planning and long-term research, and looking out on the horizon to see what is coming up on things I am glad that we are taking the time to discuss the issue of the national infrastructure bank, as well, before we get in a hurry to do something, and end up creating another labyrinth of red tape and another Federal program to solve the previous labyrinth of red tape and the previous... Transportation Infrastructure Finance and Innovation Act program While the TIFIA program focuses on helping fund traditional surface transportation projects with Federal credit assistance, the AIFA would expand eligibility, eligible infrastructure projects, to include not only highways and bridges, but also transit projects: airports, inland waterways, and rail systems, and water infrastructures, dams and levees,... certainly right—we can create hundreds of thousands of badly needed jobs and build critically important infrastructure with a federally supported bank What is ironic, however, is that we already have a national infrastructure bank for transportation And as you have heard today, it is called TIFIA And Congressman Johnson has been one of the longest standing supporters of TIFIA, and we can’t thank you enough... Mr THOMASSON There are And I think if you have a more adequately staffed and professionally run national infrastructure bank with project finance experience on those big types of projects, we as a country will be better able to handle them We are not very good at those large projects, currently You also see the national infrastructure bank as a platform for credit expertise and for the Federal Government—could... levees, as well as energy infrastructure and others These national programs would work with State infrastructure banks to enhance our country’s aging infrastructure system They are regional proposals to improve the financing expensive infrastructure projects and enjoy the support of Democrats, Republicans, and Independents So, I look forward to hearing the witnesses today, and I thank you very much... the jobs bill The bipartisan infrastructure bank will not be a sprawling Federal bureaucracy that entangles States and regulations in red tape It will be an optional financing tool that is available to empower States and local governments to invest in transportation, energy, and water projects, and it will be staffed by financial professionals, not bureaucrats The bipartisan infrastructure bank will also... trillion backlog of infrastructure that we have to make We are investing about 1.5 percent of GDP and infrastructure annually China is something like 6 or 7 percent Our infrastructure, as we all know, is falling behind our international competitors It makes our economy less competitive, as well as making daily life more stressful and more expensive We have got to start investing a lot more The country... on a very important topic And I think the administration’s proposal for a national infrastructure bank deserves our review and consideration I have been a strong proponent of creative and innovative financing methods, especially in a time when we have limited Federal resources, and States are scrambling to provide adequate financing for infrastructure projects, that we take and use every mechanism VerDate . 2012 NATIONAL INFRASTRUCTURE BANK: MORE BUREAUCRACY AND MORE RED TAPE (112–55) HEARING BEFORE THE SUBCOMMITTEE ON HIGHWAYS AND TRANSIT OF THE COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE. P:HEARINGS112HT201110-12-~170681.TXT JEAN (1) NATIONAL INFRASTRUCTURE BANK: MORE BUREAUCRACY AND MORE RED TAPE WEDNESDAY, OCTOBER 12, 2011 H OUSE OF R EPRESENTATIVES , S UBCOMMITTEE ON H IGHWAYS AND T RANSIT , C OMMITTEE. topic by entitling the hearing, ‘ National Infrastructure Bank: More Bureaucracy and More Red Tape. ’’ This is certainly a prematurely formed opinion on this matter, and I hope that the majority