The House Transportation & Infrastructure (T&I) Committee held its first hearing on surface transportation reauthorization and announced the creation of a special panel on public-private partnerships (P3s). The hearing titled, “Building the Foundation for Surface Transportation Reauthorization” marked the formal kickoff of the committee’s reauthorization process. With MAP-21 expiring on Sept. 30, 2014, Chairman Bill Shuster (R-PA) said he hopes to get the reauthorization done on time and plans to spend the coming months holding more hearings and roundtable discussions to give stakeholders an opportunity to share their policy priorities and concerns.  He went on to say the Committee hope to take action on the reauthorization in the late spring or early summer with the goal to be on the House floor before the August recess.  In terms of what the next bill may focus on, Chairman Shuster highlighted a few key principles – the bill needs to be fiscally responsible, build on the reform in MAP-21, continue to reduce regulatory burdens and provide more flexibility to states and localities.

One of the hallmarks of the MAP-21 legislation were the many reforms intended to speed up the time it takes to start and complete construction of transportation projects. Much of the focus was on the environmental review process. FHWA and the Federal Transit Administration (FTA) have jointly released a new rule the significantly reduces the environmental review process necessary for projects that are within an existing right-of-way and projects that receive less than $5 million of total federal funding or projects costing less than $30 million where federal funds account for less than 15 percent of total project cost.

The Federal Highway Administration (FHWA) and US DOT continue to produce regulations and guidance in response to directives and changes that were contained in the MAP-21 transportation reauthorization legislation. The latest from FHWA is guidance for implementation of changes made in the Congestion Mitigation and Air Quality (CMAQ) program which is a special category of highway funding to be used for transportation projects that improve air quality in areas that are not in compliance with air standards. AGC was successful in MAP-21 in expanding the eligibility for the use of CMAQ funds to assist contractors in retrofitting their off road construction equipment in air non-attainment areas when required by the contract and addressed this issue in comments to FHWA on the proposed guidance.

While the omnibus appropriations legislation fully funds the highway and transit programs at their MAP-21 authorized levels, congress is likely to need to take additional action to ensure that these funding levels are fulfilled. US DOT warns that its latest Highway Trust Fund estimates show that the Highway Account will encounter a shortfall before the end of FY 2014. DOT points out that the Highway Account began FY 2014 with approximately $1.6 billion in cash. While MAP-21 provided for a $10.4 billion transfer from the General Fund to the Highway Account to provide sufficient revenue through the end of the FY 14, the $10.4 billion authorized was reduced to $9.7 billion by sequestration. In addition, outlays for the highway program continue at a greater pace than in coming receipts.

The House and Senate this week gave final approval to the Fiscal Year 2014 omnibus appropriations legislation and President Obama said he will sign it.  The bill comes after Congress failed to pass any of the 12 appropriations bills for FY 2014.  AGC advocated for the passage of the bill to ensure predictability for FY 2014 federal construction programs.

AGC is cooperating with the Federal Highway Administration in promoting a series of webinars on the use of 3D models in transportation construction. The webinars are offered free of charge, but you must register in advance.

AGC submitted supplemental comments to the U.S. Department of Transportation (DOT) on its Sept. 6, 2012, proposal to make significant changes in the administration of its Disadvantaged Business Enterprise (DBE) program. The original comment period closed in 2012, but because of the outpouring of negative criticism from the industry, DOT decided to hold a listening session in early December and extend the comment period.  Moreover, the agency has chosen to seek specific comments on the costs associated with the proposed changes.  Along with AGC of America, many chapters and individual members also submitted comments and participated in the listening session.

AGC, along with a broad-based diesel coalition, sent a letter to the Office of Management and Budget encouraging them to include funding in the fiscal year 2015 budget for grants, loans, and rebates made possible by the Diesel Emission Reduction Act (DERA). 

This week, the House approved - by a vote of of 332-94 - a two-year budget agreement that was negotiated by House Budget Committee Chairman Paul Ryan (R.-Wis.) and Senate Budget Chairman Patty Murray (D-Wash.). The agreement sets overall levels for discretionary spending for fiscal years 2014 and 2015 and also partially mitigates the impact of the across-the-board sequestration cuts for both years.  The Senate is expected to vote on the deal next week before adjourning. Specifically, the budget deal sets spending caps for 2014 and 2015 at $1.012 and $1.014 trillion, respectively. 

AGC of America has joined with the National Association of Manufacturers, the American Society of Civil Engineers, the American Council of Engineering Companies and several other trade associations in filing a friend-of-the-court (amicus) brief in the U.S. Supreme Court in support of Mingo Logan Coal Company’s lawsuit against the U.S. Environmental Protection Agency (EPA). Mingo’s suit challenges whether EPA has broad discretion to withdraw disposal sites from a Section 404 (wetlands) permit long after the U.S. Army Corp of the Engineers issued it, or whether the Corp is the only federal agency with the authority to modify its existing permit.