The committee held the second in a series of informational hearings on Moving PA Forward by investing in roads, bridges, and transit on August 28, at the Central Pennsylvania Institute of Science and Technology Auditorium, in Pleasant Gap, PA.

Minority Chairman Kerry Benninghoff (R-Centre) welcomed the committee to central Pennsylvania, emphasizing the importance of fact-finding missions and the participation of various industries and the transit authority. He emphasized the challenges of construction in the state due to its geography and weather but affirmed the commitment to maintaining safe and efficient transportation with minimal congestion.

Chairman Ed Neilson (D-Philadelphia) discussed the decline in fuel tax revenue due to increased fuel efficiency and alternative fuel vehicles, highlighting Pennsylvania's significant infrastructure and an annual budget shortfall of $9.4 billion for the Department of Transportation (PennDOT). He emphasized that transportation discussions encompass more than just roads and bridges, touching on public transit, airports and the economic impact, including the employment of over 39,000 people and generating $5.4 billion annually in Pennsylvania.

Michael Carroll, secretary of transportation, PennDOT, discussed the need for additional funding for transit, roads and bridges in Pennsylvania, highlighting a $280 million request for transit funds to be secured by a carve-out of the state sales tax. He acknowledged an $80 million allocation in this year's budget for transit and local roads but pointed out a remaining $200 million funding gap. Sec. Carroll advocated for continued decoupling of PennDOT funds from Pennsylvania State Police (PSP) funding, emphasizing the need for a comprehensive approach to address the state's transportation funding challenges.

Chairman Neilson mentioned Act 89 from 2013, which addressed roads and bridges but not public transit, and highlighted the current shortfall in public transit funding. Sec. Carroll specified that Act 89 included funding for transit alongside highways and bridges and discussed the reduction in the transfer from PennDOT's Motor License Fund to PSP, which was decreased to $250 million in the budget passed in July. He mentioned plans to further reduce this transfer by $125 million next year and the following year, aiming to eliminate it by year four, highlighting that at its peak, PennDOT was transferring over $800 million annually to PSP. He thanked the House and Senate for their work in accelerating this reduction.
Chairman Neilson asked if any numbers show how much the state invests in the roads and the infrastructure and what the benefit for Pennsylvanians is for every dollar invested. Sec. Carroll replied that he does not have the exact math for the calculations. Neilson asked for a “guestimate” of what the benefit looks like. Sec. Carroll focused on PSP and discussed reallocating $50 million initially intended for PSP to PennDOT, with $25 million in the first year and an additional $25 million in the second year to enhance PennDOT's fleet and address needs arising from COVID-19 financial strains. He explained that this investment aimed to replace outdated equipment in county maintenance offices, with the remaining funds allocated to maintenance and construction projects across Pennsylvania, representing a positive step forward for the $3 billion road and bridge project budget without additional taxes for commonwealth residents.

Chairman Benninghoff inquired about the reallocation of funds historically used for state police now being directed to PennDOT for roads and bridges, seeking clarification on whether these funds are exclusively for road and bridge projects rather than transit. Sec. Carroll explained that money from the Motor License Fund was diverted to PSP, significantly impacting road and bridge projects across the state. He acknowledged the reasons for the decision but emphasized its substantial effect on infrastructure.

Chairman Benninghoff highlighted the ongoing maintenance needs and costs associated with Pennsylvania's infrastructure, emphasizing the importance of recognizing infrastructure maintenance as a continuous necessity and the challenge of securing votes for infrastructure enhancements. Sec. Carroll highlighted the presence of transit services in every county, stressing the importance of shared ride services, especially in rural areas.

Chairman Benninghoff inquired about Pennsylvania's unique dedication of liquid fuels dollars to transportation funding and if other states have similar systems worth considering. Sec. Carroll noted that the Motor License Fund in Pennsylvania is constitutionally protected, which he believes is unique. He explained that the Pennsylvania Constitution mandates motor fuel tax revenue to be used exclusively for road, bridge, and state police purposes, excluding transit funding, and mentioned Acts 44 and 89 as legislative efforts to address both transit and infrastructure needs simultaneously.

Chairman Benninghoff inquired about the historical accuracy of Pennsylvania having relatively low vehicle registration fees to make car ownership more affordable. Sec. Carroll confirmed that Pennsylvania has among the lowest registration fees in the nation, noting that driver license fees are also modest compared to other states and acknowledged the financial challenges some people face in affording the $45 annual registration fee.

Rep. James Struzzi (R-Indiana) asked about the long-term viability of allocating 1.7 percent of the sales and use tax to transit funding and whether this would prevent the need for continuous revisiting of transit funding issues. Sec. Carroll discussed the challenges of predicting long-term transit funding solutions, mentioning the impact of COVID-19 on transit ridership and budgets, and the difficulty in forecasting the future of transit. He emphasized the importance of transit funding to Pennsylvania's economy and warned of the economic consequences of declining transit services.

Chairman Neilson asked for clarification on the difference between “posted” and “closed” roads. Sec. Carroll explained the weight limits for bridges and the impact of posted and closed bridges, especially in rural areas.

Chairman Neilson discussed the significant impact of road closures, sharing an example from northeastern Pennsylvania and praised the efforts of PennDOT and the work of PennDOT employees and contractors, particularly highlighting the rapid response to the I-95 project in Philadelphia. Sec. Carroll expressed pride in the work done by PennDOT on Cotton Avenue in northeast Philadelphia and stated that a similar response would be expected across all counties in the state.

David Rishel, executive director and CEO, Centre Area Transportation Authority (CATA), discussed CATA's services, benefits and financial challenges. He highlighted CATA’s creation in 1974, its contribution to job creation, the local economy and environmental benefits, as well as the financial challenges it faces, including anticipated wage increases, driver shortages and the need for additional funding to expand services. He detailed the impact of cyber-attacks and the need for updated fare collection systems, and outlined CATA's revenue-generating initiatives, noting the limited impact of potential fare increases due to the prevalence of contracted passes. He mentioned the financial challenges facing CATA, including a $1.8 million deficit and the potential end of services in areas like Bellefonte and Benner Township by next July without additional funding. He highlighted CATA's efficiency and the need for state support due to financial constraints and driver shortages.

Greg Scott, president, Chamber of Business and Industry Centre County, emphasized the importance of transit in economic development and praised CATA's work. He acknowledged state support for projects that have driven economic growth in Centre County and shared that the community is finalizing an economic development strategic plan focusing on transportation and site development. Scott mentioned the potential for development around the State College Regional Airport and the upcoming casino in College Township as opportunities for growth.

Chairman Neilson discussed the importance of including airports in the comprehensive transit bill and praised the committee's bipartisan efforts supported by Gov. Josh Shapiro. He expressed interest in local funding options for transit and questioned the impact of fee increases on ridership. Rishel explained that CATA renegotiates fees annually with Penn State, leading to a nine percent increase in fees this year. He mentioned that the base fare has remained at $2.20 since 2021 but anticipated a fare increase in the coming year. Rishel noted that fare increases are not expected to significantly boost revenue due to the prevalence of pass usage.

Chairman Benninghoff appreciated Rishel's openness about fare adjustments and highlighted the challenges of convincing constituents about the need for fare increases. He commended CATA's efficiency and encouraged efforts to consolidate transportation services in Centre County. He emphasized the unique collaboration with The Pennsylvania State University (Penn State) beyond typical hours and discussed the potential for revenue generation from the influx of visitors during football weekends. Rishel explained that the football shuttle service is a source of revenue and that CATA plans to potentially double the fare to break even, while being mindful of not competing against private sector shuttle services.

Chairman Benninghoff inquired about the importation of goods via air, the impact on road congestion, and the efficiency of rail transport. Scott discussed the current state of air freight, the potential for increased air freight with infrastructure improvements, and the challenges and opportunities for passenger service expansion at the State College Regional Airport. He expressed optimism about the demand for air services and the community's ability to provide incentives for airlines.

Chairman Benninghoff asked about the timeline and investment required for creating a connector to the airport. Scott explained that he could not provide specific numbers, deferring to a colleague for detailed estimates.

Chairman Neilson shared his experience with a local airport project that cost $500 million and created 1,200 jobs, suggesting that similar investments today would likely cost around a billion dollars.

Chairman Benninghoff expressed curiosity about a timeframe for improving transportation infrastructure to accommodate online purchases and international commerce, humorously referring to discussing the Commonwealth's financial participation as compiling a "Christmas wish list." Scott answered that it is his desire to see developments around the airport completed within five years, estimating the project might cost around $100 million, primarily due to the construction of a significant bridge over an environmentally sensitive area.

Rep. Paul Takac (D-Centre) highlighted the importance of the rural intercity bus system and the lack of passenger rail service in his area, asking for comments on their potential. Scott discussed the potential for passenger rail in the center region, mentioning current rail access points and the benefits of expanding services. He also emphasized the importance of regional transit opportunities and the role of transportation in addressing affordable housing issues. Rishel listed the challenges and aspirations of expanding transportation services in the Centre region, including the need for more bus operators and additional funds. He also underscored the bus operator shortage and the high cost of living in the area.

Rep. Joe McAndrew (D-Allegheny) asked Rishel about service cuts in Bellefonte and Benner Township, questioning if these were due to lack of state funding or local issues, and inquired about the concept of micro transit. Rishel explained the adjustments made in the Bellefonte, Benner and Spring Township areas, noting the loss of about $ 1 million a year and the introduction of the B line, a new demand-response service. He described micro transit as a new, efficient mode of public transportation that utilizes a handheld app, highlighting its cost-effectiveness and potential for expansion. Rishel detailed CATA's implementation of micro transit, marking it as a pioneering and growing service in the state.

Robert Latham, executive vice president, Associated Pennsylvania Constructors, appreciated the committee's support, especially for the automated work zone speed enforcement program and electric vehicle highway user fee legislation, emphasizing their importance for safety and fairness.

Scott Rocuskie, president of construction, New Enterprise Stone and Lime Company, celebrated his company's centennial and its role in Pennsylvania's construction industry, stressing the need for increased transportation funding due to rising costs and the economic impact on over 2100 households. He shared an example of emergency work near Harrisburg to illustrate the immediate infrastructure funding needs. Chairman Neilson acknowledged Rocuskie's testimony and the significance of construction work, highlighting the importance of predictable transit funding and its impact on families. He asked Rocuskie to estimate the cost of building a mile of road to illustrate the financial challenges of road construction and maintenance. Rocuskie named a Harrisburg project costing $154 million for less than two miles, showcasing the high costs involved in road construction, including expanding roads and building overhead bridges.

Chairman Neilson discussed the complexity of road construction costs and the potential benefits of HB1833, which could expedite projects by allowing quicker starts through federal funds without waiting for detailed designs. Latham explained the low bid system for awarding construction contracts and endorsed a procurement method combining design and construction into one contract to save time and money. He mentioned legislation aimed at making project delivery more efficient and promised to present further discussions on improving efficiency and cost-effectiveness with PennDOT and other partners.

Chairman Benninghoff praised the advancements in on-site crushing technology in road construction and asked whether there are enough large companies capable of undertaking significant infrastructure projects without financial constraints. Rocuskie confirmed the presence of enough qualified companies in Pennsylvania and surrounding areas for necessary construction work, provided funding is available, and highlighted the industry's capacity for growth and the appeal of construction as a viable career path. Latham explained that with a reasonable increase in funding, the construction industry could meet the demands for infrastructure projects and detailed initiatives to support smaller, especially minority-owned, companies in entering the market through outreach meetings and the establishment of a DBE academy. Rocuskie expressed concerns about the availability of a qualified workforce in the construction industry and the impact of project labor agreements and responsible contract ordinances, noting the presence of both union and non-union contractors.

Chairman Benninghoff inquired about the use of rail to transport precast structures for projects. Rocuskie explained the limitations of using rail for transporting construction materials due to their size and the need to navigate curves and underpasses, necessitating the use of trucks.

Chairman Benninghoff highlighted the complexity of infrastructure projects and the public's preference for construction to occur during off-hours.

Chairman Neilson addressed questions about roadwork schedules, expressing a preference for daytime work hours for construction workers, and announced the next meeting in Harrisburg, advising to check the committee website for details.

The third hearing was held on August 29 at the Capitol in Harrisburg.

Chairman Ed Neilson (D-Philadelphia) opened the third informational meeting by emphasizing the importance of diverse community input for legislative action. He cited the transportation funding challenges that lie in declining gas tax revenues. He noted the current $9.4 billion annual budget shortfall for Pennsylvania Department of Transportation (PennDOT) operations. He recognized the need for increased public transit funding.

PennDOT Sec. Michael Carroll discussed the urgent need for transportation funding. He highlighted Gov. Josh Shapiro’s proposal for $280 million in transit funding and recognized the financial challenges faced by transit agencies like the Southeastern Pennsylvania Transportation Authority (SEPTA). He appreciated the General Assembly’s decision to decouple Pennsylvania State Police (PSP) funding from the Motor License Fund. He said the action frees up $250 million for PennDOT projects. He mentioned an electric vehicle registration fee bill as another positive step. He emphasized the importance of continued funding for all transportation modes. He urged funding discussions to amend the critical state of local bridges.

Chairman Neilson shared personal experiences related to infrastructure issues, highlighting the significance of the Northeast Airport and local bridges in his district. He emphasized the impact of infrastructure concerns on local communities. Sec. Carroll expressed hope for additional funding for local roads, bridges and transit, to be discussed in fall session.

Minority Chairman Kerry Benninghoff (R-Centre) expressed general support for user taxes and discussed the challenge of redirecting 1.7 percent of the sales tax for transportation. He questioned how to compensate for the financial gap such a move may create. He highlighted the need for discussions to ensure sales tax revenue growth. He recognized concerns about current winter road treatments, mentioning the potential benefits of a less erosive chemical called BeetHeet. He asked for Sec. Carroll’s thoughts on the chemical, which is used by other states. Sec. Carroll appreciated the benefits of using a less erosive chemical on public roads but admitted he does not have enough information today to comment more extensively.

Rep. Mary Isaacson (D-Philadelphia) emphasized the importance of SEPTA and the I-95 highway rebuild project in her district. She highlighted their significance for workers and the tourism industry but emphasized the need for reconstruction due to aging infrastructure. She considered infrastructural needs for bike riders and paths. Sec. Carroll outlined upcoming I-95 projects in Philadelphia and acknowledged the necessity of hundreds of millions of dollars to address safety concerns. Rep. Isaacson stressed the importance of the I-95 rebuild project complying with new federal laws. Sec. Carroll explained the I-95 project is in early planning, with construction years away. He said the project will involve widening shoulders for safety, with all widening on the east side to avoid impacting residential areas. He claimed the project is expected to be completed in the late 2030s.

Chairman Neilson reiterated the importance of making I-95 safer by widening the shoulders.

 

Rep. Perry Warren (D-Bucks) asked for clarification on the term “closed” as it pertains to bridges. Sec. Carroll explained that “closed” means no traffic is allowed until a bridge is repaired, replaced or removed. He mentioned the governor’s recent announcement of PennDOT multimodal grants, which will fund the replacement or repair of 15 local bridges across Pennsylvania.

 

Rep. Joe Hohenstein (D-Philadelphia) commended the work of PennDOT District Six on the I-95 construction in his district. He discussed the importance of funding for roads, bridges and mass transit. He asked about the relationship between state, local and federal funding and the implications of the General Assembly’s action or inaction. Sec. Carroll detailed the severe negative effects of not utilizing the funds from the federal Infrastructure Investment and Jobs Act (IIJA), also known as the Bipartisan Infrastructure Law (BIL), or Pennsylvanian Transit. He considered potential service cuts and fare increases by SEPTA, which may harm the economy of southeastern Pennsylvania and similarly affect other areas. He stressed the importance of transit for many Pennsylvanians, especially in rural areas for essential activities such as medical appointments and employment.

 

Chairman Neilson highlighted the successful management of significant funding into Pennsylvania under the leadership of Sec. Carroll and Governor Shapiro. Sec. Carroll thanked his partners for their collaboration in delivering transportation services across Pennsylvania, acknowledging the challenges of serving 13 million people daily. He commended PennDOT’s performance.

 

Chairman Neilson asked about the capital projects that cannot be undertaken due to limitations in proposed funding. Farr mentioned collaborations with PennDOT on a new facility in Harrisburg that is 120 years old. Chairman Neilson explained certain bills, such as HB 1914 and SB 597, may not provide new funding for capital projects. He emphasized the importance of securing necessary funding but noted the challenge of matching the large sums required. Farr described the typical bus rider as a female earning $25,000 a year or less who finds the service inadequate for commuting to work. He shared a story of a woman who walked four miles to their office because her 11-ride pass wouldn’t work. He highlighted the critical role of public transportation in the lives of those striving for economic prosperity.

 

Chairman Neilson discussed the importance of including aviation in Harrisburg’s transportation conversation and encouraged Pennsylvanians to obtain their REAL identification card for air travel.

 

Chairman Neilson emphasized the importance of communication between federal, state and local levels and announced the committee’s next meeting on Wednesday, September 4, at the Transportation Authority in Wilkes-Barre.

HB2535 RE: Right to Repair Electronics (by Rep. Kyle J. Mullins, et al)

The Right-to-Repair Act requires manufacturers of digital electronic equipment to make available to owners and independent repair providers, on fair and reasonable terms, documentation, parts and tools used to diagnose, maintain and repair digital electronic equipment; and imposing a penalty. Provides definitions. Establishes provisions for equipment and parts for the equipment that are sold or used in this commonwealth. Asserts that a person who violates a provision of this act shall be subject to a civil penalty between $1,000 and $10,000 for each violation, stipulating a penalty imposed under this section shall be paid to the commonwealth. Allows the attorney general to institute a proceeding to recover the civil penalty against any person liable to the commonwealth for the penalty. Outlines the limitations of this act, provides exclusions under this act and details what nothing in this act shall be construed to require or alter. Effective in 180 days.

Referred to House Commerce Committee, 8/15/2024