New transportation law paves road for growth

Gov. Rick Perry recently signed into law a statewide transportation bill which ensures Texas will continue to build needed roads and expands the powers of local transportation authorities to develop toll projects.

“I am proud to sign this legislation because it will help Texas build the roads we need to manage our state’s tremendous population growth,” Perry said. “Under this legislation, every planned road construction project will move forward as scheduled, local leaders will have more authority to build new toll roads and all toll revenue will be used for transportation projects in the area it was raised.”

Key provisions in SB 792 will:

• Ensure that local toll authorities have the first option to build new toll projects and may use state rights of way as needed.

• Require local toll authorities and the Texas Department of Transportation (TxDOT) to agree to certain business terms, such as toll rates, when a project is first proposed and to perform a Market Valuation Study based on those terms to determine a road’s total value.

• Allow local toll authorities to propose that needed state roads be built as toll roads; currently, only TxDOT can initiate such a proposal.

This provision will allow more needed toll roads to be built sooner.

• Modify comprehensive development agreements (CDAs) by limiting CDAs to 50 years; mandating that the state’s future buyback cost be stipulated in the CDA; clarifying that competing tax roads cannot be built within four miles on either side of a CDA toll road; and requiring CDA revenue be used only for other projects in the region in which it is generated.

• Place a two year moratorium on some CDAs. Virtually all CDAs planned to be executed over the next two years were exempted from the moratorium by their local lawmakers.

• Allows TxDOT to issue $3 billion in bonds to borrow against future gas tax revenue. This provision will allow TxDOT to use these bonds as toll equity for state toll roads.

“What this bill really does is two things,” said Marc Shepherd, public information officer for TxDOT in Beaumont. “It puts a moratorium on private ownership, which will let TxDOT take a look and see if the new road is in the best interest of everyone.

“Secondly, it gives local entities more control and ownership of the toll roads,” he said.

Shepherd said all current projects already under construction will not be affected by the new bill’s moratorium or waiting period, but it will place a two year hold on some new construction.

“Traditionally, you have to wait for funding to be approved before you start construction,” Shepherd said. “But with toll roads, you can borrow funds and begin repaying once the toll road is in use.”

Shepherd recently spoke at a meeting of the Kiwanis Club in Orange. He gave the club members an update on the road systems in Texas.

“Over the next 25 years, the population is anticipated to increase 64 percent in Texas,” Shepherd said. “But our road systems will only increase by 6 percent. Tolling is one issue TxDOT will use to help fund new construction. If you do not have a strong road system, then transportation cannot grow and your economy cannot grow.”

Senate Bill 792 is a compromise bill lawmakers developed after the governor expressed concerns about House Bill 1892, a similar transportation measure Perry later vetoed. The new bill is effective immediately.
Source :http://www.orangeleader.com