Transportation: Latest upgrades
contained in budget

(June 26, 2007) After two years of approving substantial investments to upgrade Connecticut’s transportation infrastructure — including $1.3 billion in 2005 and $2.3 billion in 2006 — lawmakers this year considered more modest proposals to keep the momentum going.

Originally contained in HB-6366, the most significant provisions were included in the new state budget. They will implement the next phase of transportation improvements mostly based on the recommendations of the state’s Transportation Strategy Board.

Specifically, there will be further upgrades to the New Haven, Shore Line East and branch commuter rail lines, the purchase of new rail cars for use on those lines, and funding for a new parking garage at the Stamford Transportation Center.

What’s more, there will be an additional $500 million to $600 million for a variety of initiatives that include new commuter rail stations in Orange and West Haven, significant investments in road and bridge repair, and improved bus connectivity and service in the state.

Other transportation-related bills this year included:

Diesel fuel tax
Many Connecticut manufacturers, distributors and contractors that rely on diesel fuel as a key component of their operations have been paying multiple taxes on their diesel-fueled operations. Meanwhile, competitors who might have to travel through Connecticut are either driving around the state or fueling up before going through it to avoid one of the taxes.

In an effort to remedy that situation, lawmakers approved SB-1392 (Public Act 07-199), which will simplify the diesel fuel tax structure and remove the competitive disadvantage Connecticut companies face. As of July 1, taxes associated with the use of diesel fuel by commercial vehicles in Connecticut will be the same for all users.

Vanpool loans from DOT
HB-7367 (Public Act 07-232) includes a variety of relatively minor changes to the administration of the Department of Transportation. It also authorizes the DOT to make loans to individuals, businesses, or organizations in order to finance the acquisition of vanpool vehicles.

For more information, contact CBIA’s Eric Brown at 860-244-1926 or browne@cbia.com.

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