Impact of HB-1481 on Indiana's highway revenue generation, asset degradation, modal distribution, and economic development and competitiveness.
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2014-12-01
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Abstract:The Indiana House Enrolled Act 1481 (HEA‐1481) requires that the Indiana Department of Transportation (INDOT) delivers the HEA‐1481 study by ; December 31, 2014. This will precede the adoption of final rules for the issuance, fee structure, and enforcement of permits for overweight ; divisible loads; a fee structure of permits for loads on extra heavy duty highways; and a fee structure of permits for overweight loads. On ; December 26, 2013, INDOT adopted the Emergency Rules regarding these items, as required by HEA‐1481, which became effective January 1, ; 2014. HEA‐1481 requires INDOT to use the results of this impact study to inform the setting of the final rules. Three different fee structures were ; considered: Pre‐HEA‐1481 fee structures that were in place prior to HEA‐1481; Interim Policy fee structures that were in place between June 1, ; 2013 and December 31, 2013; and the Emergency Rules that took effect January 1, 2014 and superseded the above two fee structures. INDOT ; commissioned this study to evaluate the impacts of overweight divisible load permits on revenue, asset consumption, alternative transportation ; modes, and Indiana’s economic development and economic competitiveness relative to other Midwestern states. ; The results of the analysis indicate that overall, the overweight commodities divisible permit structure arising from HEA‐1481 is not expected ; to dramatically change the consumption of Indiana’s pavement and bridge assets, but it will lead to a slight increase in the revenue collected per ; permit and a slight decrease in the gap between consumption and revenue. However, the gap between revenue and consumption is still ; significant: for the pre‐HEA‐1481 and the Emergency Rule periods, the consumption‐revenue gaps were estimated as approximately $33 million ; and $30 million, respectively. From an operations standpoint of mobility and safety, it was estimated that HEA‐1481 will have an ambiguous ; impact due to the twin but opposing effects of traffic impairment and trips reduction associated with overweight vehicles; the net effect depends ; on the prevailing characteristics of the traffic stream and extent of overweight loading. Also, using FHWA’s Intermodal Transportation and ; Inventory Cost (ITIC) analysis tool, it was found that HEA‐1481 will lead to little or no shift in the modal share across truck and rail but a significant ; shift across the specific configurations of vehicles used in trucking operations. HEA‐1481 is expected to increase the economic competitiveness of ; trucking operations in Indiana compared to the pre‐HEA 1481 era, and in some cases, compared to other Midwestern states. Finally, HEA‐1481 is ; expected to increase economic development at least in the long term by reducing the cost of transporting commodities by highways, an essential ; expenditure item of many major businesses in Indiana. ; Overall, HEA‐1481 is expected to help protect the highway bridge and pavement infrastructure by providing incentives for less‐damaging ; loading behavior, reduce the gap between revenue and consumption, increase the economic competitiveness of trucking operations relative to ; other states, and provide a more industry‐friendly environment for increased economic development in the state of Indiana.
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Main Document Checksum:urn:sha256:d6ae811f37e9110cf6b44c6e24dfd3bb29c0411fb49fa161b61eb17c5aaa8805