Van Pools Blog

By Jon Martz, Vice President, Government Relations, VPSI

Yesterday, The Private Investment in Commuter Vanpooling Act of 2011 was introduced in the House of Representatives by Rep. Mike Rogers (R-MI), Rep. Russ  Carnahan (D-MO) and Rep. Don Young (R-AK).  The bill, H.R. 596, will make it easier for communities to offer commuter services by removing a barrier which prevents local governments from fully utilizing federal transit dollars to leverage private capital investment in the provision of vanpool services.

This unique type of public-private partnership is a public transit financing option which has not gotten a lot of notice in these daunting economic times. H.R. 596 encourages the expansion of working public-private partnerships for the commuting general public. Privately–financed, public-service vanpool programs have been around for thirty years, but never has the need been stronger for expansion of this type of public service. This bill will give communities a new choice at a time when local tax dollars are limited or not available for continued, new or expanded transit services and lower the cost to the consumer. The burden can be carried by a willing and able private sector.

Unlike other more traditional public transportation options, commuter vanpool programs can be financed with at-risk, private capital. Today, our private investment in these types of programs is approximately $100 million per year.  I believe passage of this bill will stimulate private capital investment of more than $1 billion in this type of public transportation over a six year period.