HARRISBURG — Sen. John Gordner, R-27th, introduced legislation Wednesday which would provide state transportation money without tolling Interstate 80.

The plan, officially called Senate Bill 1280, would repeal Act 44, which makes I-80 tolling possible, and eliminate the Turnpike Commission. It would also eliminate the need for the 10 percent poured-drink tax in Allegheny County.

"This proposal will provide $750 million or more annually for road and bridge projects throughout the Commonwealth, as well as provide $250 million annually for funding for mass transit," said Gordner in a statement released Wednesday.

Gordner's proposal allows the Turnpike to be divided into three sections for public-private partnership agreements. The State Transportation Commission would then oversee the 50-year agreements with U.S.-based and owned companies in return for an up- front payment to the state.

The commission would be required to transfer $1 billion to PennDOT every year through 2010, at which time the payments would increase by 2.5 percent.

"By dividing the Turnpike into three sections, there should be greater competition among a larger pool of companies who would wish to bid on the public-private partnership agreements," stated Gordner.

A private Turnpike lease has seemed more and more likely since December, when the Federal Highway Administration returned Pennsylvania's tolling application. The letter stated the application did not sufficiently describe the planned reconstruction and rehabilitation of I-80.

"The concept is one that I much prefer over the tolling of I-80. My hope is a fair share of the money would come back to the rural areas of Pennsylvania, and (Senate Bill 1280) would not be structured as Act 44 is," said Rep. Dick Stevenson, R-8th.

He said he was concerned that dividing the Turnpike might scare off some companies who have expressed interest in leasing the whole highway.

Lawmakers have opposed I-80 tolling on the grounds it does not fulfill the three criteria required by the federal government to institute tolls on interstate highways: traffic congestion relief, reduction of vehicle emissions or the need to construct additional road infrastructure.

Business owners and city officials in the I-80 corridor have said they fear the economic impacts of tolling.

In Gov. Ed Rendell's 2008-09 budget address proposed Tuesday, he said he would not attempt to repeal Act 44 unless the funds generated by the proposed tolling could be replaced.

"Senate Bill 1280 does that. I look forward to working with the governor ... to formulate a funding solution that is fair to all Pennsylvanians," Gordner said.

The bill also would provide the $30 million annually now supplied by Allegheny County's 10 percent poured-drink tax.

"(The bill) provides a predictable revenue source. I'm encouraged by the governor's willingness to take a look at the idea," said Stevenson.

Additionally, the bill requires performance audits for mass transit agencies receiving money, an accountability measure not found in Act 44.

Rep. Rick Geist, Republican chairman of the House Transportation Committee, has introduced House Bill 555, which would enable the state to enter into a public-private partnership.

"That's a step that must be taken for any of these public-private partnerships to move forward," said Stevenson.