The Wyoming House today passed legislation by a vote of 35-24 to increase the state’s motor fuels tax by ten cents, from 14 to 24 cents per gallon. The increase would provide the Wyoming Department of Transportation and local governments an annual revenue increase of $71 million. The initiative was proposed and pushed by Gov. Matt Mead (R) who said that, “though $71 million won't entirely cover the $134 million annual funding gap for Wyoming's roads, it is a good start.” The Wyoming Senate is expected to take up the legislation next week. The last time Wyoming raised its motor fuels tax was 1998.

MAP-21, the surface transportation reauthorization legislation included a provision directing the US Department of Transportation to standard transaction model contracts for Public Private Partnerships (P3s) that could serve as a base template to guide States and other public transportation providers in developing their own P3 contracts, including model documents for development, financing, construction, and operation of transportation facilities. AGC was invited by FHWA to participate in a Listening Session on February 16 to provide industry input as to what should be included in these model documents.

In addition to the Department of Labor, the Transportation Department (DOT) and Environmental Protection Agency (EPA) have released their top regulatory priorities for 2012.  Below is a list of regulations from these two agencies that have the potential to impact the construction industry, if finalized.

The recently enacted MAP-21 legislation requires FHWA to develop standard public-private partnership (P3) transaction model contracts for the development, financing, construction, and operation of transportation facilities. AGC has been invited by FHWA to participate in a listening session to present the construction industry’s perspective before it initiates development of these contracts. FHWA has asked for input on: a) the design of the model contract template; b) the scope of the model contracts; c) the specific provisions included in the model contracts; and d) the model contracts that should be delivered first.

The Federal Highway Administration (FHWA) sent a Memorandum to its Division offices clarifying the application of Buy America requirements to manufactured products used on Federal-aid highway contracts. Since 1982, Buy America requirements have applied to all steel and iron products used on projects with FHWA funding.  At that time, FHWA waived the application of these requirements to manufactured products that are not predominantly steel products. When Congress enacted the American Recovery and Reinvestment Act (ARRA), stimulus legislation, it instituted Buy America requirements for projects funded under this legislation. The new law created a great deal of uncertainty as to what is and is not covered under Buy America and many states were applying these requirements more broadly than intended.

AGC of America submitted a comprehensive assessment of proposed changes to the Department of Transportation’s (DOT) Disadvantaged Business Enterprise (DBE) regulations. In addition, 15 AGC chapters submitted their own unique comments on the proposal and 125 members commented through AGC’s Legislative Action Center website. Additional AGC member comments were submitted directly to DOT. The comment period closed on December 24, 2012.

Comments are due by Dec. 24, 2012, on the U.S. Department of Transportation’s (DOT) proposal to make significant changes in its Disadvantaged Business Enterprise (DBE) rules. The Notice of Proposed Rulemaking (NPRM), issued on September 6, 2012, suggests a series of changes in the bidding process, including requiring contractors to submit a list of DBEs that will be used on a project with their bid.

While acknowledging that there is no time left in the 112th Congress to address new legislation, Rep. Earl Blumenauer (D- Ore.), nevertheless, offered legislation last week that would examine a new way to provide revenue for the Highway Trust Fund. The bill directs the Treasury Department to study the viability of mileage-based user fee to replace the federal motor fuels tax.

Comments are due by Dec. 24, 2012 on the U.S. Department of Transportation’s (DOT) proposal to make significant changes in its Disadvantaged Business Enterprise (DBE) rules. The Notice of Proposed Rulemaking (NPRM), issued on Sept. 6, 2012, suggests a series of changes in the bidding process, including requiring contractors to submit a list of DBEs that will be used on a project with their bid. In addition, contractors that do not achieve this goal must submit documentation of good faith efforts with their bids. The proposed rule would also tighten down on the certification process that determines whether or not a firm qualifies as a DBE. For a summary of the proposed changes, please click here. AGC of America will be submitting detailed comments on the proposal. A draft version of AGCA’s comments has been shared with chapters to assist them in submitting their own comments on the NPRM.

Overall Agency Supports Many of AGC’s Positions In response to a court ordered deadline, on Dec. 14 the U.S. Environmental Protection Agency (EPA) finalized a rule to require a 20 percent reduction in the amount of fine particulate matter (PM2.5) allowed in outdoor air through the entire country. The current standard has been in place since 1997. Reduction in the emission of fine particulate matter is expected to come chiefly from diesel engines and coal-fired power generation plants. States must meet the standard by 2020 or face penalties. The standard will make it harder for some industries to expand operations without strict pollution controls.