The Indiana House toll road bill was amended and approved by the Senate Homeland Security and Transportation committee Tuesday, but the language for establishing toll roads remains in the bill as it advances to the Senate Appropriations committee.

“I think we’re in at least a better place than we were headed,” said committee chairman Sen. Michael Crider, R-Greenfield. “We will continue to have this discussion with appropriations but we definitely appreciate the conversations we’ve had.”

House Bill 1461, authored by state Rep. Jim Pressel, R-Rolling Prairie, would allow the state to charge tolls on all Indiana interstate highways, including Interstate 80/94 and Interstate 65.

Specifically, the bill would allow the Indiana Department of Transportation to submit a request to the Federal Highway Administration for a waiver to toll lanes on interstate highways. If the waiver is granted, the legislature would not have to enact a statute for the Indiana Finance Authority to take action on tolling.

“Some have said this is a tolling bill. This is not a tolling bill. The governor has the authority to do tolling today on his own,” Pressel previously said. “This just gives him more flexibility to do what we need to do going into the future.”

Pressel testified in committee last week that the state has seen a decrease in road funding dollars, which come from the gas tax, BMV registration and the excise tax, as cars become more fuel efficient and people purchase less gas.

“When your road funding revenue is based on gallons sold … we are having the conversation: How do we fund roads into the future? Should it come out of the general fund? I don’t believe that to be true. I think we should have user fees. You pay for what you use,” Pressel said.

By 2030, the state will have to fund $1.2 billion and local governments will have to fund between $900 million to $2.5 billion in road projects because of inflation costs and the reduction in drivers purchasing gas, Pressel said.

Along with tollways, House Bill 1461 allows for a wheel tax, addresses bridge construction funding, and allows excess distributions from the state’s Community Crossings matching grant program to be distributed to all communities based on lane miles instead of road miles, along with other elements.

Pressel proposed amendments to the bill Tuesday, which included an amendment to the Community Crossings community population threshold from 50,000 residents to 55,000 residents.

Sen. Ed Charbonneau, R-Valparaiso, asked how many more communities would be captured by the amendment. Pressel said likely two communities.

“But if we can help one, Senator, I think it’s worth doing,” Pressel said.

For Community Crossings fund transfers, the bill was amended to state that beginning in 2027, certain local governments can’t receive a grant from the fund if the local unit receives a set amount as determined by the Indiana Department of Transportation from a provision transferring money from the fund.

It would also remove the wheel tax requirement for local units to receive a full grant.

“There’s still $250 million in Community Crossings, it’s just you’re not going to have to spend money to get it,” Pressel said.

Ryan Hoff, the director of government affairs for the Association of Indiana Counties, said the association supports the amendment, but it would like to continue working on the wheel tax portion.

Amy Craig, with Accelerate Indiana Municipalities, said the organization appreciates that the Community Crossings program will be maintained under the bill.

The bill was further amended to include a railroad tax credit for qualified infrastructure investment. Pressel said the amendment incorporates language from a bill the Senate passed in the first half of the session.

Sen. Blake Doriot, R-Goshen, said the amendment would give the state’s 39 short line railroads a $10 million tax credit for new rail infrastructure expenditures and $9.5 million for qualified railroad expenditures.

The bill was amended to state that beginning July 1, a township must adopt a capital improvement plan, and that a township must transfer 30% of the amount to the balance of all unrestricted funds that exceed the township’s budget for the following year to the township roads and infrastructure fund.

Under two technical corrections, the bill was amended to state that municipal leaders and county executives may cover the cost of construction to “small structures and culverts” and change the date of bridge inspections.

The committee voted 7-0 to advance the bill to the Senate Appropriations Committee.

akukulka@post-trib.com