Following House and Senate passage of legislation transferring $7 billion of general fund revenue to the Highway Trust Fund, President Obama signed the bill into law (Public Law: 111-046) on August 7, 2009.  The $7 billion dollar transfer allows state transportation departments to receive full reimbursements for federal-aid highway projects through the end of fiscal year 2009 (September 30).When Congress returns in September, they must take action to reauthorize federal highway and transit programs past the September 30 expiration date of SAFETEA-LU.  Congressman Jim Oberstar (D-Minn.), the Chairman of the House Committee on Transportation and Infrastructure, is committed to bringing a six-year surface transportation reauthorization bill to the House floor for a vote prior to the expiration of SAFETEA-LU, while the Senate Environment and Public Works Committee leaders - with the exception of Senator George Voinovich (R-Ohio) - support an 18-month extension of the current authorization.For more information, contact Brian Deery at (703) 837-5319 or deeryb@agc.org.

By a vote of 79-17 the Senate passed legislation to transfer $7 billion of general fund revenue to the Highway Trust Fund to provide enough revenue to ensure state transportation departments will continue receiving full reimbursements for federal-aid highway projects through September, the end of the current federal fiscal year. The House approved the measure on Wednesday by a vote of 363-68. The bill now goes to the President who is expected to sign it. In the Senate several amendments to the bill were defeated. Most significantly, an amendment offered by Senator Kit Bond (R-MO) that would have repealed a provision in the SAFETEA-LU law, which requires an $8.708 billion rescission of contract authority from the federal-aid highway program, effective on September 30, 2009. The provision is significant in that it will limit the ability of state DOTs to transfer federal funds between program categories and in some states would actually result in loss of federal funds. Senate Environment and Public Works Committee Chairman Barbara Boxer (D-Cal) voiced her support for the Bond amendment but said it should not be included as part of this short term fix. She pledged to include it in authorization legislation later this year. Congress must still take action to extend spending authorization beyond September 30 when SAFETEA-LU expires. That issue will have to be addressed in September following the Congressional recess.

Congress must take action by the end of the week to avert a slowdown in reimbursements to states for on-going highway construction projects. The FHWA has announced a slowdown will happen as soon as the second week of August if additional revenue is not transferred into the Highway Trust Fund. The Administration has projected that the trust fund needs an infusion of $5-7 billion to pay bills through the end of the fiscal year (September 30, 2009) and an additional $10 billion to keep highway and transit funding in FY 2010 at its current level. In addition, spending authorization expires on September 30 and Congress must act on this as well. The Administration proposes an eighteen month extension of spending authority along with a general fund transfer of $20 billion to ensure that the necessary revenue is provided.The House will adjourn for its summer recess on Friday and no legislative proposal has yet been introduced to provide the short term fix. House Transportation and Infrastructure Committee Chairman Jim Oberstar (D-Minn.) suggested at a hearing last week before a House Ways and Means Subcommittee that only $3 billion be transferred to the trust fund now and that Congress continue to work on a six-year reauthorization bill that solves the short- and long-term funding issues. He believes an 18-month extension will undermine those efforts. The Ways and Means Committee is responsible for finding the revenue to fix the funding shortfall. In the Senate, legislation has begun to move to address the FY 2009 funding problem and a continuation of the program into fiscal year 2010. The Senate Banking and Commerce Committees have joined the Environment and Public Works Committee in approving legislation to extend highway and transit program spending authorization through March 2011. Still to act is the Finance Committee, which must provide the revenue needed to keep the Highway Trust Fund solvent for the next eighteen months. Finance Committee Chairman Max Baucus (D-Mont.) has introduced legislation that would transfer nearly $27 billion from the general fund to the Highway Trust Fund. That legislation, once approved by the committee, will be consolidated with the 18-month authorization provisions and considered by the Senate sometime before its summer recess, which is expected to begin on August 7.

AGC Highway and Transportation Division Chairman Don Weaver, Weaver Bailey Contractors (El Paso, Ark.), presented testimony before the House Ways and Means Committee asking for action to ensure that the Highway Trust Fund has sufficient revenue to reimburse states for on-going construction contracts through the end of fiscal year 2009 and into 2010. Weaver also pointed out the need to enact a six-year transportation reauthorization measure and to provide sufficient revenue to address the nation's growing transportation infrastructure deficit. Weaver's testimony recommended that the federal highway user fee be increased by 18 cents to return the purchasing power that has been lost due to inflation in construction materials since the fee last increased in 1993. AGC's testimony also called for creation of a federal commission to set and raise highway user fee rates in the future and called for increased use of tolling, private funding and other revenue sources to supplement user fees. "Our highways are crowded and crumbling while our country is growing and demanding," he said, "Increased investment is necessary."At the hearing, the U.S. Chamber of Commerce, American Trucking Association and American Automobile Association also testified in support of a federal motor fuels tax increase to address the nation's growing transportation problems. The bipartisan leadership of the House Transportation and Infrastructure Committee also called for increased revenue to meet these needs.

The Transportation Construction Coalition (TCC), a group of nearly 30 transportation organizations, placed an advertisement in four Capitol Hill publications. The ad, developed by AGC and its TCC co-chair, the American Road & Transportation Builders Association, calls on Congress to pass a six-year surface transportation investment bill immediately.

The premier national event for contractors and related businesses involved in every aspect of highway and utility construction has been scheduled for November 12-14, 2009 at the PGA National Resort in Palm Gardens, Florida. Attendees will hear about and discuss issues and trends in these markets and receive  updates on legislation and legal decisions that affect the highway and utility markets, including the re-authorization of SAFETEA-LU and the creation of a Clean Water Trust Fund. Updates on the Recovery Act and pending regulatory action are also on the agenda. New to this conference, this year we will be offering separate Utility and Highway tracks that will converge with issues that affect both types of contractors. Contractors interested in virtual construction and its growing place in the market will learn how horizontal BIM works and how to integrate it with construction equipment. In addition, attendees will also receive a briefing on the California Air resources Board (CARB) rule and other diesel retrofit requirements and opportunities. Contractors interested in the opportunities presented by the increased interest by the Administration on High-Speed Rail will also find something. The hotel is rate in only $179.00/night, which includes the resort fee and meeting registration is $200. The cutoff date for hotel reservation is Monday, October 19, so don't miss out on your chance to attend. Details will be posted to www.agc.org.

AGC and Zurich have teamed up to create a cutting edge comprehensive training program that focuses on the leading causes of fatalities and injuries for highway workers. The Highway Worker Safety Program (HWSP) can be used by both the large general contractor as well as smaller contrators and sub or specialty contractors. The material is designed to assist in mitigating highway worker safety exposures by increasing awareness of the hazards and appropriate control measures. Specific focus is given to safety concerns related to asphalt paving, concrete paving, bridge work, demolition work, traffic control, earthwork and grading operations, short-term and mobile operations, and utility and drainage work. The program includes: DVD with interactive video components, DVD ROM with editable PowerPoint program, Instructor Guide, Participant's Manual and resource page with links to other web pages and retails for $367.50. For more details or to order visit: www.agc.org/bookstore

AGC Highway and Transportation Division Chairman Don Weaver, Weaver Bailey Contractors (El Paso, Ark.), testified before the House Ways and Means Committee asking for action to ensure that the Highway Trust Fund has sufficient revenue to reimburse states for on-going construction contracts through the end of fiscal year 2009 and into 2010.

By an 18-1 vote the Senate Environment and Public Works (EPW) Committee approved an 18 month extension of spending authority for the federal highway program through March 31, 2011. The legislation authorizes the program in FY 2010 at FY 2009 funding level of $41 billion and provides $20.5 billion in authority for the first six months of FY 2011. The Senate Banking Committee must also pass an extension of the transit program and the Commerce Committee must take up safety programs. In addition, the Finance Committee is expected to include a $20 billion transfer of funds from the general fund to the Highway Trust Fund to ensure that there is sufficient revenue to reimburse states for on-going construction projects for the remainder of FY 2009 and FY 2010. The bill is a "clean" extension which does not include any policy provisions. In an effort to keep pressure on Congress to enact a six year transportation authorization measure, Senator George Voinovich (R-OH) attempted to amend the extension to 12 months but that effort was defeated on an 11-8 vote.The highway and transit programs face two related but separate problems. SAFTEA-LU expires on September 30, 2009. New authorization is needed to keep the program operating beyond that date. In addition, there is an insufficient balance in the Highway Trust Fund to pay for on-going construction through the end of the fiscal year. Also, incoming HTF revenue would only support FY 2010 funding of about $20 billion. House Transportation and Infrastructure Committee Chairman Jim Oberstar (D-MN) is working to pass a six year authorization bill and does not support the extension although he is proposing legislation to transfer $7 billion in general fund revenue to the HTF to keep it solvent through the end of this fiscal year. The Obama Administration would prefer to put off the long term extension of authorization and has proposed instead an 18 month extension with a $20 billion transfer of general fund revenue to keep the programs operating through FY 2010. The Administration would also like to include some policy initiatives in the 18 month extension. Today's action by the EPW Committee would solve the short term funding problem and keep the program operating beyond the end of the authorization expiration. EPW Committee Chairman Barbara Boxer (D-CA) said she intends to have her committee continue to work on a six year authorization but took today's action to ensure there is no interruption in the program.AGC's top priority is to ensure that there is no disruption in payments to contractors for ongoing projects both in the short term and long term. AGC also is pressing for a long term reauthorization of the program that provides sufficient new revenue to address the backlog and growing national transportation needs.

Last week, U.S. DOT sent Congressional committees its proposal for an 18 month extension of authorization for federal surface transportation programs. Calling the proposal "Stage I Reauthorization," the administration asked for a $20 billion general fund transfer to keep both the federal-aid highway program and the federal transit program solvent through March 31, 2011.  The administration's proposal also calls for a series of policy changes that would begin to implement changes in the way these programs are administered.Senate Environment and Public Works Committee Chair Barbara Boxer (D-Calif.), Ranking Republican Jim Inhofe (R-Okla.) and several other committee members expressed support for providing the necessary funds and authorization to keep the programs operating for the next eighteen months, but opposed adopting any policy changes at this time. Members of the House Transportation and Infrastructure Committee, led by its bipartisan leadership, spoke out strongly against an 18 month extension, preferring to continue its effort to enact a full six year reauthorization measure. Consideration of the short term extension may be brought up as part of the DOT appropriations bill, which will be considered by the Senate Appropriations Committee when Congress returns next week.The Highway Trust Fund will be short of cash needed to reimburse states for ongoing construction projects as early as the first week of August and will have insufficient revenue in FY 2010 (beginning October 1, 2009) to maintain the program at its current funding level. The administration originally said that the general fund transfer necessary to solve this problem had to be offset with other spending cuts or tax increases. However, in today's proposal, the administration calls for the transfer to be paid for over ten years through a variety of options, including an international tax enforcement proposal.The policy recommendations are focused on beginning to implement the administration's objective of using transportation investment to create more "livable communities." Today's proposal calls for funding to allow states and localities to collect comprehensive transportation data to be used for making future transportation choices, develop standards for comparing different transportation modes and create stronger reporting and tracking requirements for  transportation investments.The administration's proposal also gives details on its proposal for a National infrastructure Bank to support regionally and nationally significant, high value transportation projects. The administration requests $2 billion in funding to initially capitalize the bank, which would provide financing assistance for relatively large and transformative projects that are currently underfunded. These could include freight and passenger rail, highway projects that consider land use and economic development and bridge construction that includes a rail line and harbor dredging.For more information, contact Brian Deery at (703) 837-5319 or deeryb@agc.org.