<p>This week, AGC <a href="http://newsmanager.commpartners.com/agcleg/downloads/2016-04-26%20Senate%20Flake%20Amdt%20USACE%20Funding.pdf"><u>successfully blocked</u></a> legislation that would cut millions of dollars from the Army Corps of Engineers civil works construction program in fiscal year 2017. Sen. Jeff Flake introduced the amendment to the USACE annual funding bill that failed on an <a href="http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=114&session=2&vote=00063"><u>84-12</u></a> vote. The Senate continues to consider the USACE funding bill as of publication.</p>

As reported last week, the Senate was working towards finalizing an AGC-supported reauthorization of the Federal Aviation Administration (FAA) programs for fiscal years 2016 and 2017. This week they passed the bill with an overwhelmingly bipartisan vote of 95-3.

The Federal Highway Administration (FHWA) issued a notice of proposed rulemaking this week detailing performance measurements for congestion, freight, and on-road mobile source emissions for the National Highway System which it was required to do in the 2013 “Moving Ahead for Progress in the 21st Century” (MAP-21) reauthorization law. Under the proposal, states would be required to monitor, report, and set targets for improving performance by measuring travel reliability, peak-hour congestion, freight movements, and on-road emissions of pollutants like ozone. The performance measures would then be used to manage investment of federal-aid highway funds to achieve these state performance goals, which ultimately would help make progress towards meeting national goals. Generally, the measurements are considered an improvement in managing the program and in demonstrating to the public the benefits achieved from federal investments in highways. One of the national commissions set up in earlier SAFETEA-LU legislation called for the establishment of performance measures.

The Senate Transportation Appropriations Committee unanimously approved the fiscal year 2017 budget for the U.S. Department of Transportation (US DOT), which included a key provision AGC requested that would set certain conditions on a US DOT pilot program that enables the state or local grant recipients to utilize local or geographical, economic-based, and veterans hiring preferences on federal-aid highway and federal transit projects. The language is identical to a provision that AGC was successful in getting included in last year’s omnibus appropriations bill. The provision requires a grant recipient to certify that a local hire requirement will not force the layoff of a company’s employees, will not significantly increase the cost of the project and that they will not impose local hire requirements unless they can certify that there is an available, trained workforce in the local area.

The Senate is moving towards a final bill reauthorizing Federal Aviation Administration (FAA) programs. AGC supports the bill and sent a letter to the Senate highlighting the bill’s increased funding levels for the Airport Infrastructure Program (AIP), provisions related to drones and the creation of one size standard for businesses participating in the FAA’s Disadvantaged Business Enterprise (DBE) program. Unfortunately, the bill does not include an AGC priority – increasing the Passenger Facility Charge – which would result in more airport infrastructure funding. The current FAA authorization is operating under an extension until July 15. As the legislative process plays out, AGC will work to ensure the final FAA bill addresses the construction industry’s priorities.

The Senate Committee on Environment & Public Works held a hearing today concerning “the Federal Role in Keeping Water/Wastewater Infrastructure Affordable.” AGC’s testimony emphasized several financing tools that would help contractors and their local government partners build the nation’s water/wastewater infrastructure. AGC also called for increased appropriations to the Clean Water and Drinking Water State Revolving Loan Funds (SRFs), enacting a long-term dedicated revenue stream for water/wastewater infrastructure (like a water trust fund), resurrecting the Build America bonds program, funding the new WIFIA program of direct federal loans and loan guarantees, and unlocking private capital by making private activity bonds for water and sewer exempt from the PAB volume cap. AGC and its coalition partners in the Water Infrastructure Network will continue to advocate for every method of increasing funding and financing for water/wastewater infrastructure.

The U.S. Department of Justice has launched a new hard-hitting enforcement initiative to crack down on violations of worker safety and environmental laws. AGC members are urged to take note that the federal government seeks to investigate and enforce alleged safety violations in conjunction with environmental crimes, which carry much harsher fines and significant jail time. In its announcement, the Department stated its belief that environmental offenses often occur in conjunction with worker safety violations. Given the government’s coordinated response and potential ramifications for industry, AGC members may want to consider the benefits of pursing an integrated health, safety and environmental program

The Federal Highway Administration (FHWA) announced this week the eleven technologies and practices that are being promoted as part of the fourth-round of Every Day Counts (EDC) for 2017-2018. EDC is FHWA’s state-based initiative to deploy proven innovations to shorten and enhance project delivery. FHWA will offer technical assistance, training and resources to help transportation agencies and stakeholders adopt the innovations in 2017 and 2018.

AGC held a WebEd this week to inform members and chapters about developments in the use of mileage based user fees to fund transportation infrastructure investments at the federal and state levels in the future. Participants heard from Jack Basso, former DOT Budget Director and Chairman of the Mileage Based Use Fee Alliance (MBUFA), who discussed the current depleted status of the Highway Trust Fund and the need to find alternative revenue sources to supplement and possibly replace the gas tax. Bob Arnold, Director of DOT’s Office of Transportation Management reported on provisions in the FAST Act which provided $95 million in grant funding to support states in implementing pilot programs to test various alternative user fee initiatives for purposes of maintaining the future long-term solvency of the Federal Highway Trust Fund. Finally, Malcolm Dougherty, Director of CalTrans, reported on California’s road charge pilot program.

AGC and its industry coalition partners in the Water Infrastructure Network havebeen working for a number of months to get significant water infrastructure provisions included in the 2016 Water Resources Development Act (WRDA) in the Senate. We were successful in getting many important provisions approved by the Committee. The bill creates a longtime AGC priority, a Clean Water Trust Fund, and, while this bill itself does not carry additional funding, it authorizes voluntary contributions to the trust fund. Creation of a trust fund dedicated to water infrastructure opens many new possibilities for future dedicated revenue prospects.