The ChamberPost

Let's Rebuild America's Energy Infrastructure

by Matt Letourneau

The Chamber’s Let’s Rebuild America initiative and the National Chamber Foundation today held the third in a five part series of forums examining the concept of a national infrastructure bank. Today’s event focused on a clean energy bank, and was cosponsored by the Chamber’s Institute for 21st Century Energy.

Among the panelists at the forum was Karen Harbert, the Energy Institute’s president and CEO.  In Congressional testimony as well as in articles and speeches, Harbert has long advocated for a clean energy bank that would bring capital to new energy technologies without increasing burdens on taxpayers. In fact, the Energy Institute included the development of such a bank in our 88 policy recommendations that were delivered to President Obama and Congress. 

A clean energy bank would be a federally-backed entity with the authority to issue loans, loan guarantees, lines of credit, insurance, and other financial products to help support the deployment of advanced clean energy technologies. Aside from start-up costs, the bank would be entirely self- financing through fees and interest collected, similar to the Export-Import bank.

Addressing clean energy technology without spending more taxpayer money is particularly attractive in today’s budget climate.  The Congressional Budget Office forecasts an increase in the public debt from $7.5 trillion at the end of 2009 to $20.3 trillion at the end of 2020 if the President’s FY2011 budget is adopted. 

In Congress, one clean energy bank proposal has taken hold in the form of new Clean Energy Deployment Administration (CEDA), which would be part of the executive branch but operate in a similar way.  That proposal was included in a bill that passed the Senate Energy and Natural Resources Committee last year, though no further action has been taken in Congress.

Regardless of the exact form it takes, Harbert said that it is clear that we must increase the rate of capital formation in the clean energy sector through new, innovative financing to support large-scale adaption of clean energy quickly.  While some energy and climate issues have the potential to divide, we believe that there should be broad, bipartisan support for the concept.  The Energy Institute will continue to work to see a clean energy bank adopted.

Driven to Distraction - X the TXT

by Janet Kavinoky

When it comes to transportation policy, you usually hear the Chamber talking about the fixed infrastructure in the U.S. – roads, rails, runways – or about smoothing the bumps in supply chains by creating more reliable, dependable transportation networks or minimizing regulatory costs to the truck drivers or airlines that get people and goods to their final destinations.

But today I want to focus on commending and encouraging the efforts by Secretary of Transportation Ray LaHood, and our friends at Allstate, to “X the TXT” and attack the problem of distracted driving that is sweeping the general public, and especially teenagers.

First, a confession.  I have tried to hold my Blackberry, read, respond, and drive at the same time.  It’s hard to put the device away and simply focus on the road when I’m wondering who needs something from me *right now* or what critical (or not so critical) message I might be missing.  But I also know that those seconds that I’m not focused on driving could be the ones in which my actions kill someone or injure them for life -- and so does the U.S. Chamber.  That’s why this organization banned use of electronic devices when driving.  [A side benefit -- I have to admit a sense of relief knowing that I actually have a sanctuary from the incessant buzzing of the BlackBerry.]

I hope you’ll take a few minutes and visit the "X the TXT" website or Facebook page and sign the Allstate Family Texting Pledge, whether you have kids or not. 

It’s good business sense – and common sense – to stay safe on the road.

The U.S. Broadband Market is Flourishing

by Jason Goldman

Yesterday, Federal Communications Commission (FCC) Chairman Julius Genachowski testified before the Senate Commerce, Science, and Transportation Committee at a hearing on the National Broadband Plan.

The Chamber urges Congress and the FCC to recognize that the U.S. broadband market is flourishing.  Cable operators, phone companies, wireless carriers, and others are all vying to provide broadband service to consumers. New broadband-enabled applications, services, and devices are being released daily.  It will take up to $350 billion to make broadband universally available in the United States, according to the FCC’s Broadband Task Force. The vast majority of this spending will come from the private-sector.  Therefore, to ensure that all Americans fully benefit from broadband, federal policies should foster private-sector investment and minimize regulatory uncertainty.

According to the National Broadband Plan:

• The number of Americans who have broadband at home has grown from eight million in 2000 to nearly 200 million last year.
• Home broadband use has increased from roughly 1 hour per month in 1995, to more than 15 hours per month in 2000, to almost 29 hours per month today, as consumers find more valuable applications and content online.
• Today, 290 million Americans—95% of the U.S. population—live in housing units with access to terrestrial, fixed broadband infrastructure capable of supporting actual download speeds of at least 4 Mbps. Of those, more than 80% live in markets with more than one provider capable of offering actual download speeds of at least 4 Mbps. Meanwhile, 14 million people in the United States living in 7 million housing units do not have access to terrestrial broadband infrastructure capable of this speed.
• Businesses and community anchor institutions are often served by broadband. 96% of all business locations have access to Digital Subscriber Line (DSL) service, and 92% have access to cable broadband service.
• Typical advertised broadband speeds that consumers purchase have grown approximately 20% each year. This growth has been driven by a shift in consumer preferences to faster, more advanced technologies, improved performance of different technologies and large investments by service providers in network upgrades.
• Both telephone and cable companies continue to upgrade their networks to offer higher speeds and greater capacities. If the targets in public announcements by industry are met, at least 50 million homes will be able to receive peak download speeds of 18 Mbps or more from their telephone company within the next 2 years.
• Cable companies have also announced that over the next 2–3 years they will upgrade their networks to DOCSIS 3.0 technology, which is capable of maximum download speeds of more than 50 Mbps. One analyst predicts that by 2013, leading cable companies will cover 100% of the homes they pass with DOCSIS 3.0. The top five cable companies currently pass 103 million housing units, or about 80% of the country’s homes
• Cable and telephone companies invested about $48 billion in capital expenditures (capex) in 2008 and about $40 billion in 2009....[A] review of analyst reports at Columbia Institute for Tele-Information (CITI) suggests that of this total, wireline broadband capital expenditures were about $20 billion in 2008 and expected to be about $18 billion in 2009.
• [T]he CITI report indicates that total capital expenditures by major wireless firms were about $21 billion in 2008, of which about $10 billion was for broadband. In 2009 wireless companies were expected to have incurred about $20 billion in capital expenditures, $12 billion of which was for broadband services. While projections should be viewed cautiously, wireless broadband capital expenditures are expected to be about $12 billion in 2010 and increase steadily to $15 billion in 2015 as service providers roll out their 4G services.
• According to Cisco, North American wireless networks carried approximately 17 petabytes per month in 2009, an amount of data equivalent to 1,700 Libraries of Congress. By 2014, Cisco projects wireless networks in North America will carry some 740 petabytes per month, a greater than 40-fold increase. This growth in aggregate traffic is due to increased adoption of Internet-connected mobile computing devices and increased data consumption per device.

Yet, even where broadband is available, individuals do not subscribe to broadband for a variety of reasons.  Approximately, one-third of American adults have not adopted broadband at home. When prompted for the main reason they do not have broadband, non-adopters cite cost (36%), digital literacy (22%), and relevance (19%).  Thus, we must address broadband adoption as well as broadband deployment.  This is why the Chamber supports public-private partnerships, such as Connected Nation, and has published papers on the importance of broadband to seniors, people with disabilities, and telemedicine.

The Chamber urges policymakers to reject calls for the imposition of a new, burdensome regulatory regime on broadband service providers that would create regulatory uncertainty. Given these turbulent economic times and the enormous cost of building out broadband infrastructure, the United States cannot afford policies that would hinder private-sector investment in this critical technology.  Instead, attention should be focused on promoting policies that foster broadband deployment in unserved areas, encourage investment and innovation, and spur broadband adoption.

Innovation, Infrastructure and India

by JP Fielder

Some reports from Tom Donohue's visit to India:

The US Chamber of Commerce Tuesday pitched for greater US-India partnership in technology innovation, infrastructure development and production of cleaner energy. 'Let's collaborate on innovation. Let's partner on infrastructure. Let's jointly develop clean, plentiful and diverse supplies of energy and bring efficiencies and productivity,' Thomas J. Donohue said, addressing the US-India Business Council (USIBC) meeting here. (IANS)

[US Chamber of Commerce President and CEO Thomas] Donohue said, “There has never been a better time or opportunity to lift US-India trade and investment relations to a whole new level.” He urged the governments of both he countries to “catch up to the private sector and put in place the right policy environment so that our companies can create a surge of new joint ventures, increase investment flows in both directions, expand our trade, create millions of new jobs, and yes, generate new tax revenues that can help address deficits in both Washington and New Delhi.” (expressbuzz.com)

[Donohue said India's innovative] IT industry and US`s strength in the retailing, logistics, education sectors can complement each other. He called for bringing the most talented people from both the sides to invent and apply technologies that can address the food, water, health, environmental and security needs of the people. (myiris)

Donohue told SME Times, "There has to be interdependence between small, medium and large sized enterprises whether they are connected to any segment of the economy such as technology, healthcare, agriculture, transportation, etc," He added that India-US has to look for having potential relationships between the countries and find out ways and means where large, small and medium sized companies come together and collaborate in business decisions. (SME Times)

Thomas J Donohue today argued that the United States government must desist from pursuing some ''wrongheaded ideas'' like protectionism and imposing further restrictions on immigration adding that the cobwebs need to be cleared relating to the Indo-US civil nuclear deal so that commercial business can start. (newKerala.com)

Leading the Charge for Commerce

by Tom Collamore

The Journal of Commerce on leadership and their efforts to recognize it:

What is The Journal of Commerce Leadership Roll? Very simply, it’s a list of individuals who in the opinion of the JOC editorial staff are deserving of recognition for being innovators, contrarians, voices of reason. In short, it recognizes those who, through their actions and records, exhibit unmistakable traits of leadership…Because leadership matters — now more than at perhaps any time in recent history as international trade and global supply chains recover from the worst trade and economic recession in decades. In the international trade and supply chain arena, where change can be slow and painful, it is those who push the envelope who ultimately determine how well the system adjusts to the volatile nature of the global economy.

This year, alongside such luminaries as Warren Buffett and Michael Duke, the Chamber's own Janet Kavinoky made the list. As the JOC writes:

As director of the chamber’s Let’s Rebuild America coalition, Kavinoky is prominent among stakeholders who are pushing Congress to give goods movement a prominent place in a new multiyear surface transportation bill. Kavinoky joined the chamber in February 2006, after staff work at the Department of Transportation, a master’s degree from Stanford University and four years at the American Association of State Highway and Transportation Officials. "We were heavily involved in policy development for what became SAFETEA-LU," said Jack Basso, director of budget and programs. "Where I thought we’d get a year or two before she moved on, Janet was here over four years. She’s absolutely one of the best people I’ve had here."

He said there are three reasons Kavinoky is good at what she does: "Knowledge is what attracts you to people. Secondly she has very dry sense of humor, and a certain amount of chutzpah, which you need in this business. Third, she’s not afraid to deal with an issue."

Congratulations and thanks to Janet for the work she does for the Chamber and, quite frankly, for America.  And thanks to the Journal of Commerce for recognizing her expertise and success.

Transportation Investment on the Anniversary of ARRA

by James Sneeringer

Today is the anniversary of the American Recovery and Reinvestment Act (ARRA), and the Americans for Transportation Mobility (ATM) Coalition is highlighting the successes of transportation and infrastructure investment. Executive Director Janet Kavinoky had this to say:

A year after its passage, ARRA funding for highways and public transportation created, supported, and saved transportation jobs and is leaving a legacy of economy-enhancing investments. Those jobs are at risk if Congress does not act by February 28th to extend SAFETEA-LU at FY 2009 levels along with providing resources for the Highway Trust Fund, and then turn to passing a long-term surface transportation authorization bill.

According to the House Transportation & Infrastructure Committee, as of December 31, 2009, ARRA investments resulted in more than 280,000 direct, on-project jobs & 890,000 direct, indirect, and induced jobs.

Among the 9,241 highway and transit projects underway are improvements needed to meet the demands of a diverse economy and a growing population, and that contribute to economic growth and global competitiveness:

• San Bernardino, California is using $128 million from ARRA to complete bridge replacement and road widening that will help revitalize one of America's most economically distressed communities and ease congestion along a route expected to grow from an estimated 83,000 drivers daily to 130,000 in the next 20 years.
• In Southeast Ohio, $138 million from ARRA is busting a time- and-money draining truck bottleneck by accelerating a project on US 33, which currently carries more than 1,700 trucks per day between Columbus, Ohio and Charleston, West Virginia, making it one of the busiest truck routes in Ohio. Without ARRA, the project's second and third phases wouldn't have started until 2012 and 2015.
• The Transit Authority of River City (TARC), Kentucky will get people to work reliably by using $17.7 million in ARRA funds to replace ten 40-foot, low-floor buses that are four years beyond their useful life. In addition, TARC will build a new maintenance and training facility at Union Station in Louisville and thoroughly renovate the Broadway Division bus storage building.

Kavinoky summed up:

Now it is time to build on those successes and make sure that jobs don't disappear. First, Congress must act expeditiously to restore certainty to existing federal transportation programs. By February 28th, Congress should extend SAFETEA-LU at 2009 levels through the end of calendar year 2010 and provide the associated resources to ensure Highway Trust Fund Solvency. Then, both houses must make passing a long-term highway and transit authorization bill a priority for the 2010 legislative agenda.

Cape Winds of Change

by Brad Peck

The Washington Post opines:

Last month, the Energy Department released a study concluding that wind turbines could power 20 percent of the eastern electric grid by 2024. But if the nearly decade-long fight over a relatively small wind farm off Cape Cod is any indication, a big obstacle will be extreme not-in-my-back-yard-ism. For nine years, the developers behind the Cape Wind project have jumped through regulatory hoops in hopes of erecting 130 turbines in Nantucket Sound, a near-ideal location -- shallow, protected from large waves, close to a large number of electricity consumers and blessed with plentiful wind. At every step, a group of nearby residents -- including environmentalists in the Kennedy family who maintain their complex on the shore of the sound -- have fought to keep the turbines out and their ocean views unobstructed.

...No matter where you build in the eastern United States, you are likely to mar someone's view or disturb land that some group considers valuable. In this case, the plan's potential benefits outweigh the drawbacks. The wind farm's developers aim to provide 75 percent of the electricity for the Cape and nearby islands. And the project would be an early test of wind power's feasibility, taking advantage of the area's rare natural setting to push costs down.

This one is just common sense right?  Philip Howard looks at that theme (sub req):

"[We] can put Americans to work today building the infrastructure of tomorrow," the president claimed. "From the first railroads to the Interstate Highway System, our nation has always been built to compete. There's no reason Europe or China should have the fastest trains..."

But America can't build new infrastructure because no one has the authority to say "go." Nearly endless environmental review, followed by years of litigation by anyone who doesn't want the project, will make it impossible to put a shovel in the ground for a new project for years.

Too much law always causes paralysis.  Environmentalists wanted legal power to stop bad projects, and now find themselves unable to build good projects.  Real people must have responsibility to make these decisions -- that's what government is for.  Cut the environmental review process to a year or two at most.

Shorter: Build, Baby, Build.

 

The State of American Business - Jobs and Infrastructure

by Tom Donohue

Our economic platform is running out of capacity and it is dangerously declining in quality and safety. To meet our infrastructure needs, we need to boost public investments while working to ensure that the money is spent wisely in areas of genuine need. Reauthorization of the nation’s core highway bill is essential.

But it is the private sector that can be the main driver of new, innovative projects in transportation, power generation and transmission, water systems, and communications. One study estimates that $180 billion in private capital is available to build infrastructure projects. Put this money to work in conjunction with public dollars, and it could support more than 1.5 million jobs over 10 years. To unleash this capital, governments must clear away regulatory impediments and legal uncertainties -- and provide incentives so that public agencies include private sector participation in their efforts.

It takes too long to build anything substantial in this country—and everyone knows it. For example, the Federal Highway Administration found that it takes about 13 years for major projects to go from initiation to completion. The Chamber is prepared to work with governments at all levels to remove unnecessary barriers. We can then put Americans back to work with private infrastructure investments that add long-term value to our economy and boost our global competitiveness.

Jobs Summit - Creating Jobs through the Rebuilding of America’s Infrastructure

by Janet Kavinoky

We need to create jobs and we need to modernize our infrastructure, there is an obvious harmony between these two needs and an obvious question -- How do we pay for it? Recently, the President called for innovative approaches to infrastructure investment. He is correct that the government can’t meet the tremendous needs to maintain, modernize and expand infrastructure on its own. The good news: there is approximately $180 billion in private capital available for investment in American infrastructure, particularly in transportation (roads, public transportation, airports, ports, waterways and rail) and drinking and wastewater systems.

How do we put this capital to use in public infrastructure? By giving public project sponsors the incentive to structure their procurement laws and specific projects to take advantage of private investment and to invite the innovation that comes with private sector involvement.

The Federal government can expand the pie by providing incentives for direct private investment in infrastructure and rewarding states and communities that seek out private investment to complement traditional public funding. What kind of provisions could work? Prioritizing discretionary grant applications for projects that have already sought direct private investment, and rewarding, for example through additional grant money, state and local procurement laws that open infrastructure projects to direct private investment.

The bottom line is that historically, states and communities have had little incentive to seek anything other than 100% government funding for public infrastructure projects, but with ever-growing needs and always-limited resources, it’s time to open up approaches to funding and financing the physical platform of our economy.

America's Ten Best Transportation Projects Unveiled

by Murphie Barrett

Yesterday the AAA, American Association of State Highway and Transportation Officials (AASHTO), and U.S. Chamber announced the top ten finalists in the 2009 America's Transportation Awards competition. Now the competition beings anew: America's Transportation Awards' Grand Prize will be determined by independent judging and will be presented at the AASHTO Annual Meeting on October 25, in Palm Desert, California. The top ten projects will also compete for the People's Choice Award, which will decided by popular vote. On-line voting is now underway at the competition's official website through Oct. 23, 2009.

The Top 10 Nominated Projects by category are:

On Time: Accelerated Delivery

• Dial An Engineer: Maryland Department of Transportation, MD 32 at Burntwoods Road Project.
• Corridor Updated in Half the Time: Delaware Department of Transportation, I-95 Mainline Widening Project.
• Smart Bridge Technology: The Minnesota Department of Transportation (MNDOT), I-35W Minneapolis Bridge Replacement Project.
• Preserving History: Louisiana Department of Transportation and Development (LADOT), Front Street Natchitoches Restoration Project.
• Trimming 30 Minutes from Commute: North Carolina Department of Transportation (NCDOT), Clayton Bypass Project.

On Budget: Enhancing Value

• Improving International Connections: New York State Department of Transportation, I-86 Interchange Project.
• Website Eases 3.8 Million Detours: California Department of Transportation (Caltrans), Fix I-5 Sacramento Project.
• Two States Trim Time and Costs on New Bridge: Nebraska Department of Roads (NDOR), Yankton Bridge Project.

Innovative Management

• Safety First: The Michigan Department of Transportation (MIDOT), M-115 Clare County Improvement Project.
• Technology Aids Urban Decongestion: Florida Department of Transportation (FDOT), 95 Express Miami Project.

Learn more about the projects and vote today at www.americastransportationaward.org