The California Air Resources Board (CARB) announced that it has postponed the implementation of its off-road equipment rule which was scheduled to go into effect on March 1, 2010 because it has not yet received approval from the US Environmental Protection Agency (EPA) to move ahead with enforcement. In making the announcement, however, CARB agreed with AGC's request to hold a public hearing on the question of whether the off-road regulations should be further modified to account for the down economy and subsequent emissions reductions. AGC has presented CARB with substantial empirical data demonstrating that the downturn in California's economic conditions and the resulting drop in construction activity have made the rule unnecessary. AGC has pointed out that California's own inventory data makes clear that off-road equipment operators will be well under the state's aggressive diesel emissions limits for years to come without this rule. Mike Kennedy, AGC's general counsel, said the following about CARB's action: "AGC appreciates the opportunity to publicly air our concerns and expect Board officials will ultimately agree to significant changes to their off-road diesel rule.  However, yesterday's decision to 'delay' enforcement of the rule until a federal waiver is issued is as legally meaningless as it is economically damaging.  By committing to begin enforcement as soon as the federal government allows, the Board is only acknowledging legal reality, not providing relief."  Unless blocked, the CARB rule will require California's contractors to retrofit, repower, retire and/or replace much of their off-road equipment. The Federal Clean Air Act prohibits other states from implementing their own off road diesel emissions rule but allows them to adopt the California rule.  A study conducted by AGC shows that 32 states, including Arizona, Georgia, Illinois, Maryland, New York, Pennsylvania and Texas, are poised to use the California requirements. Because of the impact on contractor's nationwide, AGC joined with the AGC of California and San Diego AGC Chapter in a collective effort to stop the rule or significantly modify it.

President Obama released his Administration's Fiscal year 2011 budget proposal today. For the Federal-aid highway program the budget requests $41.363 billion just slightly more (.6 percent) than the current $41.07billion level. The Administration notes that the highway program expired on September 30, 2009 and repeats its request that authorization be extended through March 2011 to allow time for Congress and the Administration to work on new legislation stating that "surface transportation programs and the system for paying for them must be fundamentally reformed." The budget documents also point out that Highway Trust Fund revenue is insufficient to fund the program at this level and assumes that $20 billion will be transferred from the general fund to cover the revenue short fall.Continuing the Administration's year long emphasis for "livability and sustainability", the budget calls for an allocation of $527 for its multi-agency Partnership for Sustainable Communities, including a request to transfer $200 million in highway program funding for this initiative. The budget requests the creation of an Office of Livable Communities within the Department of Transportation to coordinate efforts between Dot and the Environmental Protection Agency and Department of Housing and Urban Development.  The budget requests $600 million in discretionary funds for grants to state and local governments and transit agencies for projects of National, metropolitan or regional significance.The budget also requests $4 billion to create within the DOT a new National Infrastructure Innovation and Finance Fund. It is proposed that the office will provide grants and credit assistance for a variety of surface transportation projects, including: highway, tunnel, bridge transit, commuter rail, passenger and freight intermodal facilities, passenger rail, Amtrak, airports and ports. The projects are to be of National or regional significance and be valued at $25 million or more. Projects of less than $25 million can be approved in areas with smaller populations. An additional criterion for funds under this proposed program is that the projects increase the environmental sustainability of the transportation network in the region.  Included in the budget is a request for an additional $1 billion in funding for high speed rail. This is to supplement the $8 billion in funds provided (with grant awards announced this week) in the American Recovery and Reinvestment Act (ARRA).For the Federal Transit Administration, the budget requests $10.8 billion in grant funding, also a .06 percent increase over FY 2009. The budget makes several proposals for altering the transit program's structure.Funding for the Federal Aviation Administration's Airport Improvement Program is proposed to be continued at the FY 2009 level of $3.515 billion.

The Congressional Budget Office (CBO) released its January 2010 economic forecast this week, which includes estimates on Highway Trust Fund revenue and balances for the coming year, as well as projections for the next ten years.  CBO estimates that the Highway Account of the Trust Fund will have an end of year balance of about $3 billion -less than one month's spending during summer months.  An end of the year balance this low would mean the Highway Account will be unable to meet obligations in a timely manner again this year without a transfer of funds from the general fund or other revenue source.   CBO estimates that the Mass Transit Account will have an end of year balance of $2.9 billion.   CBO estimates that without further action, the Mass Transit Account will likely have cash flow problems similar to the Highway Account during fiscal year 2011.    If the Highway Trust Fund's balance gets low enough, spending on highway and transit programs would be slowed.  Department of Transportation has indicated that if the fund reached this level, it would reimburse states at a prorated amount in order to maintain a positive balance in the fund. Congress in the past year has made two transfers of revenue to the HTF totaling $15 billion to keep payments to states flowing in a timely fashion.

Highway and Transportation Division Vice Chair Dean Word participated in a rally organized by the Association of Equipment Manufacturers (AEM) and Associated Equipment Distributors (AED) to bring attention to the need for enactment of long term highway authorization legislation with increased funding levels to address national transportation needs and depression-like economic conditions in the construction industry. AEM and AED have held other "Start Us Up" rallies around the country, which included a parade of construction equipment intended to get media coverage. Word talked about the unprecedented high unemployment levels in the construction industry and AGC's most recent economic survey showing few contractors expect a construction turnaround in 2010.  Indeed, 88 percent of construction firms don't expect overall business conditions to improve until at least 2011.

Federal Highway Administrator Victor Mendez has started an initiative called "Every Day Counts" within the Federal Highway Administration (FHWA) to identify ways to shorten the amount of time it typically takes to deliver highway construction projects from conception to completion, which now takes 13 years on average. AGC has been asked to have members participate on one of the panels created to develop recommendations. The Accelerated Project Delivery task force is looking at impediments to project completion following the official "record of decision" point, which happens at the conclusion of the environmental review, public comment and planning stage. Bob Lanham (Williams Brothers Construction), Scott Williams (Hamilton Construction) and Brian Kaub (Granite Construction) represent AGC on the task force and participated in the initial meetings on January 14-15. The group identified a variety of issues that impact design and construction and will formulate recommendations for improvement. A separate task force will look at steps in the environmental/planning phase that can be taken to reduce time for project approval.Highway and Transportation Division Chair Don Weaver (Weaver-Bailey Constructors) represented AGC at a meeting on January 26 of an FHWA Accelerating Technology Deployment team. The team, also part of the Every Day Counts initiative, identified a list of promising technologies that have the potential for improving highway project delivery or functioning. The group looked at a list of 14 technologies and rated the top five to receive emphasis from FHWA to expedite deployment. The five highly rated technologies are: green paving technologies, accelerated bridge construction, adaptive traffic signal control technology, roadway departure prevention and asset management tools.

Contractors nationwide are becoming increasingly concerned about possible layoffs next year if Congress does not act on a six-year surface transportation bill, which AGC predicts would reduce federal highway and transit funding by more than $15 billion, or 20 percent.

The AGC co-chaired Transportation Construction Coalition today launched a new ad campaign and issued a press release to coincide with the White House Jobs Summit, calling on Congress and the Obama Administration to create jobs now by passing a highway and transit bill.

In our ongoing effort to keep the pressure on Congress to enact a six year transportation reauthorization bill with significantly increased funding levels, the Transportation Construction Coalition (TCC) has scheduled December 10, 2009 as "Phone-In to Congress" Day. While Congress is embroiled in other high profile issues Senators and Representatives must be reminded about the need to address the expired highway and transit program authorization. In our visits on Capitol Hill Senators and Representatives report they are not hearing from people at home. They need to hear from you.TCC would like to bombard Congressional offices with calls from constituents. To do this the following toll free number has been set up to allow you to call directly to the offices of your Senators and Representative: 1-888-448-2782. While email and letters are helpful, phone calls require an individual to answer and to make note of why you are calling.Please plan to call on December 10 and ask your employees to call as well and make the following points: (Our state) has huge transportation needs that are not being met including deficient bridges, deteriorating pavements, congested roads and safety hazards.In addition, the construction industry has an unemployment rate of over 18 percent.Without the certainty of a long term authorization bill, with increased funding levels, construction companies and material suppliers in our state will be forced to lay off additional workers.Businesses will not invest in new equipment when there is so much uncertainty about the on- going and future construction market.Congress must do its job and delay no longer. Pass a six year transportation authorization bill now and provide the revenue necessary to increase funding to address (our state's) short term need for jobs and long term economic growth.

House Transportation and Infrastructure Committee Chairman James Oberstar (D-Minn) and Senate Environment and Public Works Committee Chairman Barbara Boxer (D-Calif) held separate news conferences today to call for the inclusion of increased highway and transit funding as part of jobs legislation currently being discussed in both the House and Senate. The news conferences also included the release of an AASHTO survey of state DOTs that identified 7,497 highway projects valued at $47 billion and 2,091 transit, port, rail and other transportation projects valued at $22 billion that are "ready to go" and could be approved for award within 120 days. The American Public Transportation Association also indicated that its members identified additional projects above the AASHTO transit numbers. Senator Boxer said she is co-chairing a Senate leadership group that is putting together jobs legislation and will push for inclusion of funding at this level. Both Chairman Boxer and Chairman Oberstar quoted AGC's statistics on the dire employment situation in the construction industry with now stands at 18.7 percent with 1.6 million construction jobs lost since January 2008. President Obama will hold a "Jobs Summit" at the White House tomorrow. Former AGC President Doug Pitcock will represent the association and present information about the state of the construction economy and call for infrastructure investment as the best way to quickly create new jobs. Both Chairs also indicated that this jobs funding is being discussed separately from addressing the need to pass legislation to reauthorize surface transportation programs and provide new Highway Trust Fund revenue to support long term increased funding levels.