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WASHINGTON, D.C. – The Senate Environment and Public Works (EPW) Committee held a hearing to discuss the development of the Surface Transportation Reauthorization Bill.

U.S. Senator Kevin Cramer (R-ND), Chair of the EPW Transportation and Infrastructure Subcommittee, introduced the first witness, North Dakota Governor Kelly Armstrong (R-ND).

“What’s interesting to me about Governor Armstrong is he's not naturally a politician at all,” said Cramer. “In fact, he’s quite naturally the opposite. […] But Governor Armstrong brings that perspective, and as I look forward to hearing from the mayor, I think for all of us up here, it’s really, really important to remember that there’s probably no better illustration of the juxtaposition of the relationship between the federal government, local and state governments than in infrastructure.

“Kelly brings that very important perspective from a rural state that produces a lot of things that we don’t consume in our own state, or at least we don’t consume nearly in the supply that we provide to a hungry world and a growing economy,” continued Cramer. “Whether it’s energy or food or how you get durum wheat to turn into semolina flour to get it to a pasta plant, to get it to the restaurant in New York. He understands it all, and he understands the relationship. I’m really grateful he’s here.”

Cramer first mentioned the importance of providing highway funds to states through a set formula, an approach he worked to maintain under the Infrastructure Investment and Jobs Act. This approach ensures states have consistent funding and flexibility to meet their constituents needs. 

Cramer then began his questioning by addressing the broader challenge of funding the nation’s transportation infrastructure. He discussed how the highway system is built on a user-pays model, with drivers contributing to the Highway Trust Fund (HTF) through the federal gas tax paid at the pump.  However, he noted current revenue is not adequate to meet national needs, and electric and hybrid vehicles use the roads and bridges but pay less into the system.

He asked witnesses to weigh in with solutions for increasing HTF revenue and ensuring all drivers contribute fairly. Cramer noted many states, including North Dakota, charge registration fees for electric vehicles (EVs) and hybrids so they are paying into the system. While gas taxes are paid at both the state and federal level, there is no mechanism at the federal level accounting for EVs’ use of roads and bridges.

“Every car, combustion or otherwise, is driving a lot more on that 18.3 cents that is being taken in,” said Armstrong. “And I think as you get more and more other vehicles on the road, there is going to be a disparity there. […] I think whatever four-tired vehicle that ends up on the road is going to utilize that road and is going to require maintenance and upkeep and all of those things.”

“It's important to me that we adequately fund the National Highway Trust Fund,” said Kate Gallego, Mayor of the City of Phoenix. “We would like to make sure it’s adequate funding, we want to protect privacy, any new solution, we think technology needs to be ready to go on day one. This is so essential we have to get it right.”

Cramer concluded by asking witnesses if they have closing recommendations for accelerating the delivery of infrastructure projects.

“You know, this is a really complicated topic, but I actually think the solutions are pretty simple,” said Austin Ramirez, President and CEO of Husco, an engineering and manufacturing company. “We need deadlines in the regulatory process that are enforceable, and we need limited expedited judicial review. I think if we do those two things, we'll actually get infrastructure dollars from being approved and allocated to actually being spent and invested in new projects.”

“I think you all have a unique opportunity, because a lot of the fights that are associated with infrastructure reform don’t apply to roads, but try getting a bridge permitted across the federal waterway,” responded Armstrong. “And we’re not building new ones, we’re replacing the existing one. But every one of our constituents wants this kind of infrastructure and you don’t get into some of the ideological fights that exist in transmission or pipelines.”