Here's the latest installment of State Capitol Roundup courtesy of state Rep. Bob Mensch, R-147:

Feds Deny State's Application to Toll I-80

The U.S. Department of Transportation has rejected the Pennsylvania Turnpike Commission's application to toll Interstate 80. According to U.S. Secretary of Transportation Mary Peters, the application to implement tolls along the I-80 corridor was denied because it did not meet the technical and statutory requirements set forth by the federal act. Business owners and residents living along the I-80 corridor voiced their concerns to legislators, noting the likelihood that traffic would be diverted onto local, non-toll roads, leading to increased maintenance costs for secondary roads; and the crushing impact tolling would have had on local economies. According to the Rendell administration, it is highly unlikely that the application will be resubmitted. For the latest legislative news, visit PAHouseGOP.com

House Committee Examines Options for Looming Rate Cap Expirations

The House Environmental Resources and Energy Committee met this week to discuss ongoing efforts to protect consumers from drastic price swings following the expiration of electricity rate caps that are already taking place. Customers of the Pennsylvania Power Company saw their bills increase by as much as 30 percent following the expiration of the northwestern Pennsylvania utility's rate caps last year, but many fear increases could be as high as 60 percent in some areas. Proposals to phase in price hikes as a means to minimize the impact on consumers were promoted during the hearing by some lawmakers. Others are calling for an extension of the rate caps, a proposal that several lawmakers have expressed a willingness to support if no other means of protecting consumers can be agreed upon.

House Transportation Committee Focuses on Public-Private Partnerships

The House Transportation Committee held a public hearing early this week to gather testimony on a wide range of topics, though the use of public-private partnerships (P3s) to capitalize a drastically underfunded transportation budget quickly became the focus. A P3 is a contractual arrangement between a public agency and a private-sector entity to deliver a public service. Currently, 23 states have authorized the use of P3s to provide an infusion of private-sector capital to accelerate the maintenance, improvement and expansion of roads, bridges and other infrastructure. A proposal for a 30-year lease of the Pennsylvania Turnpike that is expected to generate as much as $1.1 billion is also pending approval and is being considered in light of the recently denied plan to toll I-80. For the latest legislative news, visit PAHouseGOP.com

Republican Policy Committee Turns Attention to Economic Competitiveness

The House Republican Policy Committee heard testimony from numerous small businesses and statewide industrial organizations this week, in its ongoing effort to craft policy that would increase Pennsylvania's economic competitiveness. The hearing focused on three major policy initiatives that would make the state more friendly to employers-implementation of a single-sales factor apportionment formula, reducing the Corporate Net Income Tax rate and removing the cap on net operating loss carry-forwards. High business taxes have repeatedly been indicated as key factors that lower the Commonwealth's economic competitiveness. Regulatory obstacles, such as the high costs of energy and health insurance and skilled workforce shortages, were also highlighted as economic concerns during the hearing.