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Illinois Transportation-Boosting Bill Signed by Pritzker

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“Illinois is the transportation hub of North America,” said Omer Osman, Illinois Transportation Secretary. “With the distinction comes a huge responsibility that we are investing resources equitably, fairly, and in locations where they make the most sense and do the most good.”

To further stretch taxpayer dollars and to bring much-needed boosts to state transportation infrastructure, Illinois Governor Jay Pritzker has signed into law a new bill.

“Thanks to Governor Pritzker’s vision and the support of the General Assembly, we are making historic improvements in our transportation system with Rebuild Illinois,” Osman continued. “Now, we will have even more tools that will strengthen our project-selection process and make it more transparent.”

The Illinois Department of Transportation will need to implement a new transportation program through the new legislation as a way to increase Illinois’ transportation network capability and efficiency. Additionally, the agency will be required to establish a highway system asset management plan for the entire state, and will also need to develop a project selection process that is performance-based and will make the best use of taxpayer money to keep state infrastructure in top shape.

“As new construction projects pop up around the community, Illinois taxpayers deserve to know the decision behind those projects and the impact it will have on their daily commute, local economy, and overall safety,” explained bill sponsor, Senator Ram Villivalam of Chicago. “By implementing a transparent, equitable, and data-driven system, people can have the peace of mind that their tax dollars are going toward positive change for the area.”

At the top of next year, a multitude of factors will be considered during the project selection process by IDOT through its multi-year plan. These items include accessibility, congestion mitigation, economic development, environmental impact, overall safety, and traffic operation improvement–some of these factors may be considered more strongly than others depending on project details or location.

Additionally, the legislation notes that the department should request opinions and input from members of local communities and the general public, labor and business representatives, metropolitan planning groups, and transportation and transit experts.

IDOT will also be required to create an asset management plan that is need-based and that will work to boost and maintain capital transit facilities and associated infrastructure as efficiently as possible–a plan that will also need to be publicly accessible on the department’s website. This asset management plan will need to include details regarding state facilities, infrastructure, equipment, and state-supported vehicles.

“All plan and program development based on the project selection process described in this subsection shall include consideration of regional balance,” the bill explained.

Because of any given potential project’s ability to help challenges related to environmental impacts and to boost multimodal connections, the bill states that the project prioritization process is considered to be fully in the public interest. Therefore, there will no longer be any capacity projects added to the new, multi-year transportation plan–after April 1st, 2022–that fail to undergo evaluation through the newly-outlined selection process.

The Rebuild Illinois plan, implemented by Pritzker in 2019, has worked to bring support to a variety of transportation and infrastructure projects and further investment into the state’s transit, education, roads, bridges, state parks, clean water infrastructure, and historic sites. It has also brought further funding to local truck route project initiatives and local marine transportation systems.

“I’m proud that Illinois is a supply chain hub for the nation and this administration is committed to investing in our infrastructure to ensure we maintain that vital role,” said Pritzker. “Through the Rebuild Illinois Capital plan–the largest infrastructure investment in Illinois’ history–we’re fixing roads and bridges across the state [and] creating jobs and opportunities in our communities.”

To help fund Rebuild Illinois projects, state fuel tax rates initially doubled in 2019 and have continued to rise since then.

“This legislation will empower the hardworking team at IDOT to ensure those investments go as far as possible,” Pritzker continued. “And by establishing a performance-based selection process, the administration is doubling-down on our commitment to being responsible stewards of taxpayer dollars.”

Road Extension Project in the Works to Boost Illinois Freight Movement

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The Houbolt Road Extension project is finally under way in Illinois as freight movement and traffic flow improvement efforts become a main area of focus for state officials.

Joliet, a large intermodal hub based 45 miles southwest of Chicago, will house the 1.5-mile extension of Houbolt Road through its public-private partnership. The extension includes a Des Plaines River-spanning tolled bridge and would offer a highly-needed connection in the form of two lanes of traffic running between a variety of intermodal facilities and Interstate 80. These lanes, which would run in each direction, would aid the heavily-used freight route along I-80 reaching from San Francisco to Teaneck, New Jersey.

Because there is more of an ease to the truck traffic and a closer proximity to I-80 in Will County than in downtown Chicago, Joliet has become a common destination for intermodal traffic in recent years, explained Matt Hart, the Executive Director of the Illinois Trucking Association. The trucks that would utilize the bridge linking the Houbolt Road route would be able to easily reach State Route 53 or Arsenal Road via Interstate 55 through this extension.

“We have been encouraging additional capacity there for a long time,” explained Hart. “This will add to the capacity. It will allow trucks better access to this area. That being said, it’s also a bridge that is going to be paid for by tolls on trucks. So, it will provide more capacity, but it’s going to come at a price.”

The city of Joliet will monitor the state-committed $32 million that has been dedicated to the project and will collaborate in these expansion efforts alongside the Illinois Department of Transportation. Industrial real estate firm CenterPoint Properties has been commissioned to construct and operate the new bridge.

“Today we joined CenterPoint Properties, Will County, and the city of Joliet to break ground on the Houbolt Road Extension,” said the Illinois Department of Transportation in a tweet last week. “The P3 efforts leverages a $32 million state contribution for an overall improvement of nearly $200 million, furthering Governor Pritzker’s vision to fix and modernize I-80.”

The bridge’s toll rates have yet to be decided upon; many trucking firms will likely pass costs for the tolls down to their customers, although they may initially want to try and avoid the toll bridge itself.

“I think that every trucking company is going to do their best to avoid the toll, just because that makes economic sense,” said Hart. “At the end of the day, every truck that’s on the highway is there because consumers need something or want something, and the consumers and the marketplace will require that it be delivered at the most cost-effective means possible.” 

Because the Houbolt extension project is bringing boosted capacity, ITA, which typically opposes tolls implemented into existing highways, has decided to remain neutral in this circumstance (which it often does in regards to tolls helping to increase capacity). Still, ITA believes that the most effective way to increase infrastructure capabilities is through traditional user fees like a fuel tax. These administrative costs are usually lower than tolling fees, Hart added.

“I think, in the long term, you will see more trucking companies use that bridge and they will build the price off that toll into the cost of goods,” he said.

Construction for the project, which is scheduled to be finished by the year 2023, will help to reconfigure the interchange between Houbolt Road and Interstate 80. The investment into these efforts comes from Governor Jay Pritzker’s Rebuild Illinois plan, which has been in place for the last couple of years and aims to help boost investment into bridge, transit, road, state park, education, historic state, and clean water infrastructure projects throughout the state.

“This project is just one of several major upgrades of I-80 in the coming years, thanks to the governor’s vision,” said Omer Osman, Secretary for Illinois Transportation. “The new bridge will link I-80 and the intermodal facilities in Will County, alleviate traffic congestion, make travel safer along a critical national corridor, and further strengthen the state’s economy.”

CenterPoint Intermodal Center is based in Joliet and its neighboring town of Elwood, and houses a large inland port and a main office space. According to Hart, many freight distribution centers and hubs have been making their homes throughout this Chicagoland location.

Governor Pritzker Announces $15 Million to be Allocated to Illinois Manufacturing Training

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$15 million will be invested in the construction of two downstate Illinois manufacturing training academies, as announced recently by Illinois Governor J.B. Pritzker.

This funding comes as a boost to the state’s manufacturing workforce, and will aim to help Illinois locals gain easier opportunities within advanced manufacturing careers and have boosted access in regards to developing the skills necessary for such employment.

“I’m proud to announce the winning projects of a $15 million Rebuild Illinois investment to establish two new downstate manufacturing training academies, [Southwestern Illinois College] in the Metro East and Heartland CC and Rivian here in Normal,” tweeted Pritzker.

The two academies–which will be located at Southwestern Illinois College in Belleville and Heartland Community College in Normal– will start enrolling new students as soon as this year, announced Pritzker, along with the Illinois Department of Commerce and Economic Opportunity.

Jumping into these career possibilities as soon as possible is key for these students, explained the Illinois Department of Commerce and Economic Opportunity’s acting director, Sylvia Garcia. 

“As the electric vehicle industry and other advanced manufacturing roles see increasing demand in Illinois, we are preparing to seize those jobs with investments made across our communities and to maintain our state as a top destination for companies to grow and invest,” she said.

$7.5 million of this funding will be allocated to Heartland Community College to aid the development of its Electric Vehicle/Energy Storage Manufacturing Training Academy. These efforts are in collaboration with Rivian, an electric vehicle manufacturer, and the college will match state funds up to $1.5 million for the development of an electric vehicle manufacturing training-based auto shop–an effort set to bring in around 1,600 jobs by 2023.

“HCC will be the home of the Electric Vehicle/Energy Storage Systems (EVES) Manufacturing Training Academy,” said Heartland Community College in a tweet. “HCC received a grant from the Illinois DCEO and a commitment in private funding from regional partners, including Rivian.”

The future of clean energy possibilities relies on programs like these, which offer students the opportunities and training they need to be ready for the industry upon graduation, explained Rivian’s vice president of public policy and chief regulatory counsel, James Chen. 

“This project will help prepare local workers for the well-paid technical jobs that the clean energy transition requires,” he said.

Chen also noted that these efforts align strongly with his company’s goals to help this industry reach its full potential, which starts at the hands of educated, forward-thinking individuals.

“This project also reflects Rivian’s core values of community empowerment, innovation, and a strong foundation for the continued growth and success of the electric vehicle industry,” he added.

The remaining funding will be funneled into a manufacturing-focused education hub to be implemented at Southwestern Illinois College, which will break ground as soon as this year and open to students by 2022. The Advanced Manufacturing Center will also include career training services for students, with opportunities within welding manufacturing and the industrial electricity industry. Additionally, the college’s program will bring about boosted efforts to recruit women and other minorities in order to adequately address industry equity concerns.

“One of Southwestern Illinois College’s primary goals is to train students for well-paying, highly-skilled, in-demand career fields, and the construction of a manufacturing training academy will bolster these efforts,” explained Nick Mance, President of Southwestern Illinois College. 

Mance added that these funds will bring direct positive impact to the state of Illinois’ economic development–including to the boost that it has needed following challenges brought about from the COVID-19 pandemic. 

“In light of the unemployment rate and economic distress in the area, it is more crucial than ever that students embark on a viable career pathway that leads directly to steady employment paying a living wage or better,” he said.

This funding comes from Pritzker’s Rebuild Illinois plan, which was approved in 2019 as an effort to improve overall state infrastructure and allocate funds to projects working to rebuild, repair, or boost state parks, historic sites, roads, bridges, education, clean water infrastructure, and transit. For the funding of Rebuild Illinois, Illinois saw doubled fuel tax rates in 2019, which continued to rise in 2020.

$250 Million to Fund Illinois Infrastructure, Including a Port in Cairo, Says Pritzker

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Governor J.B. Pritzker, along with the Illinois Department of Transportation, has announced the second of a total of six $250 million grants for local transportation projects.

The Rebuild Illinois capital plan–the largest infrastructure program in Illinois and the first one in almost a decade–will have funds allocated toward counties, townships, and municipalities with important transportation needs. The grant will boost investment into the state’s transit systems and bring safer overall infrastructure.

$40 million of the funds will help build a port in Cairo, which is considered a helpful location in regards to the movement of goods, as it is situated at the confluence of the Mississippi and Ohio rivers.

This particular funding, which was announced this month, will add to a public-private partnership working to create a new inland port. $4 million was released immediately to the Alexander-Cairo Port District to fund site preparation work, in addition to permitting and engineering costs.

“For too long, Illinois has relied on legacy infrastructure investments without tending to them properly to maintain our status as a transportation hub for the nation,” said Pritzker. “Rather than build on our storied history and strong foundation, our critical infrastructure has been allowed to deteriorate. Thanks to dedicated funding in the bipartisan Rebuild Illinois plan, we’re investing in our roads and bridges and cementing our leadership position as a global transportation powerhouse.”

The American Road and Transportation Builders Association notes that 9% of Illinois’ bridges are currently considered to be structurally deficient.

These funds are part of a $1.5 billion grant spread out over the course of three years to support statewide projects. Some of these projects include bridge and road improvements, storm sewer and bike path installations, upgrades to traffic signals, and sidewalk replacements.

All projects are chosen and managed with local IDOT supervision and guidance.

“In Illinois, we don’t have just state or local roads and bridges, but one system of transportation that stretches across all modes and involves multiple partners working together,” said Omer Osman, Acting Transportation Secretary. “This funding through Rebuild Illinois means our cities, neighborhoods, and rural areas have the resources they need during this uncertain time, but also enhances quality of life, encourages additional investment, and improves safety for years to come.”

The Cairo port-funding investment, as well as the local infrastructure grants, come from the $45 billion Rebuild Illinois infrastructure improvement effort initiated in 2019, which plans to fund upgrades and improvements to state roads, bridges, parks, education, transit, historic sites, and clean water infrastructure.

The program is also meant to bring more job opportunities to the state as well as boost overall economic growth.

IDOT is also investing $21.3 billion into road and bridge improvement projects over the next six years through the FY2021-26 Proposed Highway Improvement Program. This is the second multiyear plan that will have as prominent an impact as Rebuild Illinois. $4.7 billion of those funds will be dedicated to local transportation system improvements.

The Proposed Highway Improvement program has outlined an effort that will improve 3,356 miles of roadway throughout the state and 8.4 million square feet of bridge deck.

In May of this year, Rebuild Illinois secured funding for Fast-Track Public Infrastructure Grants, which will work to reboot important public works projects that were paused or abandoned due to insufficient funding. These grants will also help experienced workers return to these projects and begin working once again.

Through this program, Pritzker and the Illinois Department of Commerce and Economic Opportunity announced that $25 million would be allocated to support these projects.

“We recognize the unique challenge and burdens that COVID-19 is placing on us all, and we are taking steps to provide relief to businesses and communities,” said Department of Commerce and Economic Opportunity director, Erin Guthrie. “Through the Fast-Track Public Infrastructure Grants program, the administration will provide a much-needed boost for workers across the state as well as the critical infrastructure projects our state depends on.”

State DOTs Request Relief Funding as Transportation Revenue Faces Major Losses

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As we continue to see the coronavirus pandemic’s impact across the country, many state departments of transportation have begun reporting losses of revenue while more Americans adhere to stay-at-home orders.

In an effort to fight these losses, the American Association of State Highway and Transportation Officials (AASHTO) asked Congress to provide $50 billion in emergency relief, as well as a six-year, $800 billion surface transportation reauthorization bill, earlier this month.

This revenue request will aim to avoid any disruptions in state DOTs’ operations, and will also work to keep transportation systems operating as usual during COVID-19.

Transportation analytics group Inrix Inc. has recently released data showing that overall personal travel across the country dropped by 20% during the week of March 14th, and 42% by March 21st.

“That’s going to directly translate into a lot fewer gas tax dollars for states–and sometimes for local governments, too–to repair and expand their infrastructure networks with,” said Institute on Taxation and Economic Policy research director, Carl Davis. “This is all happening so fast. We don’t have a lot of hard data yet, but the early indications are already clear, and it’s going to be ugly.”

Inrix’s data also indicated that truck travel has had large drops as well, with figures showing long-haul truck traveling down 20% in the week ending March 27th, and commercial travel down 16% in the same week

“We expect it has to do with retailers [that] still need their inventory, [and] pharmacies [that] still need medicine,” said senior policy analyst at the Tax Foundation, Ulrik Boesen.

Toll revenue will also see major losses with fewer drivers out on the road–according to Boesen, there is currently little incentive for people to pay for express lanes with so many fewer vehicles sharing the highway.

“It’s almost hard to imagine an area of state and local tax that isn’t getting pummeled right now by what’s happening in the economy,” said Davis. “All these revenue sources are going to be dropping, and dropping very sharply.”

Right now, state DOTs are estimated to lose around 30% of their transportation revenues over the next 18 months. AASHTO’s $50 billion request is based on the revenue collecting methods of state DOTs, which, according to 2018 numbers, included 43% in highway user fees and tools, ($78.4 billion), 23% in federal grants ($42 billion), 18% in other state funding ($33.6 billion), 13% in bond issuance (23.8 billion), and 3% in local governments’ payments ($4.7 billion). With a total of around $112 billion in state DOT revenue, a 30% reduction would mean falling short by almost $50 billion.

“AASHTO is very concerned about the situation, and we see a phase 4 stimulus as a way of helping to provide immediate funding to prevent major cuts in the near-term for projects across the country,” said Tony Dorsey, AASHTO spokesman. “Our big concern is that if we don’t get this immediate backstop, as we’re calling it, we’re going to see possible project delays and a ripple effect throughout the entire economy.”

In addition to the $50 billion in emergency relief funds, AASHTO requested a six-year, $800 billion surface transportation reauthorization bill, which would work to eradicate the current investment backlog by 2030–while supporting overall economic recovery. AASHTO cites a $786 billion backlog in highway needs and a $116 billion backlog in transit needs under the US DOT Conditions and Performance Report.

Approval of these efforts will eliminate the longstanding backlog while addressing current condition and performance needs, which would support long-term economic growth–although the request calls for double the amount of federal funding within the FAST Act.

America’s road and bridge needs are also currently underfunded, with a $836 billion backlog of highway and bridge capital needs. Of the backlog, $420 billion is in repairing present highways, $123 billion is in bridge repair, $167 billion is in system expansion, and $126 is in system enhancement. Transit systems have also been extremely underfunded, bringing a $90 billion backlog in their rehabilitations. These numbers are likely to worsen as the pandemic continues.

On March 27th, President Trump signed the Congress-approved stimulus of $2.2 trillion. Now, lawmakers are working to decide upon the next phase of their COVID-19 response legislation.

Elaine Chao Details DOT’s Methods of Helping Truckers During COVID-19 Crisis

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Transportation Secretary Elaine Chao says she is planning to amp up the Department of Transportation’s efforts in supporting truckers throughout the country during this pandemic. 

According to Chao, the federal government will soon begin working on new methods of improving national infrastructure, possibly by using funds from the COVID-19 relief package of $2.2 trillion. Chao also emphasized the importance of recognizing the efforts of truckers who are working harder than ever to meet the demands of this challenging time.

“I don’t think many Americans think about the supply chain much during ordinary times,” she said, “But now that phrase–the supply chain–is being talked about everywhere. So many more people now understand that it’s due to truckers and trucking companies that food shelves in a supermarket get stocked, or that gasoline stations are able to sell gasoline.”

So far, the DOT has temporarily waived of the hours-of-service requirements that were amended in mid-March by the Federal Motor Carrier Safety Administration, provided temporary enforcement discretion for drivers transporting hazardous cargo (such as lithium batteries and gasoline, and highly-sought-after goods like hand sanitizers), and has given hazmat drivers a 90-day relief period from taking hazardous material refresher courses that are typically required every three years.

Chao said the reasoning behind these decisions is that efficient delivery of these materials, as well as household goods, food, water, and medical supplies, is especially important right now.

“All these products don’t appear by magic,” she explained. “We are able to live and take care of our families during this very special time because of the hard work of truckers throughout the country.”

The FMCSA has also granted certain exceptions until at least June 30th for some expired commercial driver licenses and learner’s permit medical certifications, and has also restructured current guidance around drug and alcohol testing requirement compliance.

Chao also praised the efforts of the interim chief of the FMCSA and his work with individual states to keep rest areas open.

“We’ve heard from a lot of people in the industry about concerns that some states may close rest areas,” she said. “So, I’ve had FMCSA acting Administrator Jim Mullen reach out and work with the state departments of transportation and other relevant entities to keep this critical infrastructure open, so that more carrier drivers have a safe place to rest.”

In addition to these regulation relaxations, the CARES (Coronavirus Aid, Relief, and Economic Security) Act is providing small business loans and a Paycheck Protection Program to many small trucking companies.

“After an initial sharp rise in demand to restock shelves and deliver supplies, the decline in economic activity has had negative consequences for the industry with decreases in freight volumes and rates since their peak during the public health emergency in the 3rd week of March,” said Chao in a DOT blog post. “Certain sectors of the industry have been hit harder than others, and the emergency affects trucking companies of all sizes. Many independent drivers and smaller trucking firms, which employ 90 percent of all truck drivers, are struggling to survive.”

Chao also mentioned that trucking firms can utilize loan opportunities from the Small Business Administration, which has made additional funds available during this crisis.

“We hope that truckers and others can see that the U.S. Department of Transportation is looking out for their interests and helping the country regain our economic vitality and vibrancy,” said Chao.

The allocations from the CARES Act could also potentially go into infrastructure, according to Chao.

“The monies have not gone out yet,” she explained. “Let’s see how that will help people. We hope it will help a lot. The Department of Transportation has a mandate to get out transit grant dollars, and we are hard at work. We’re going to meet the deadline to get that money out.”

Chao also wanted to offer her gratitude to the truckers erving the country at this time.

“I know that it has not been easy, but the whole country is just cheering on America’s truckers,” Chao said. “I want the families and the loved ones [of] trucker drivers to know that we’re thinking about them as well. We appreciate so much their support for their loves ones–the truck drivers–so that they can perform an essential service for our country during this critical time.”