US DOT issued rules that will apply to the newly created discretionary grant program that was created in the economic recovery act. The "Transportation Investment Generating Economic Recovery (TIGER) Discretionary Grants" program is provides $1.5 billion in discretionary grants that are to be awarded through a competitive procedure. Surface transportation capital projects costing between $20 and $300 million are eligible. Selection criteria for projects includes potential long term outcomes including: improving conditions on existing facilities, economic competitiveness, livability, sustainability, safety. Job creation and economic stimulus will also be selection factors. Secondary criteria include innovation and partnership.  Up to $200 million of the grant funds can be allocated for the existing Transportation Infrastructure Financing and Innovation Program (TIFIA).

Senate Commerce Committee Chairman John D. Rockefeller (D-WVA) and Surface Transportation Subcommittee Chairman Frank Lautenberg (D-NJ) today introduced, "The Federal Surface Transportation Policy and Planning Act of 2009", legislation to establish a strategic, comprehensive national transportation policy.  The major goals of the bill are to:Reduce national per capita motor vehicle miles traveled on an annual basis;Reduce national motor vehicle-related fatalities by 50 percent by 2030;Reduce national surface transportation-generated carbon dioxide levels by 40 percent by 2030;Reduce national surface transportation delays per capita on an annual basis;Increase the percentage of system-critical surface transportation assets that are in a state of good repair by 20 percent by 2030;Increase the total usage of public transportation, intercity passenger rail services, and non-motorized transportation on an annual basis;Increase the proportion of national freight transportation provided by non-highway or multimodal services by 10 percent by 2020; andReduce passenger and freight transportation delays and congestion at international points of entry on an annual basis.A  SAFETEA-LU reauthorization bill has not yet been introduced in the Senate and is currently being drafted by Environment and Public Works Committee staff. The Senate Commerce Committee has jurisdiction over the safety issues in the reauthorization bill and therefore will have some influence over the final legislation and these provisions will be considered as part of the debate. In addition, Senator Lautenberg serves on the EPW Committee.

Fifteen AGC chapters from around the country applied to the U.S. Environmental Protection Agency (EPA) for more than $31 million in federal grant funds to help finance the cost of retrofitting off road diesel equipment to reduce air quality emissions. It is estimated that this funding would help to pay the cost of retrofitting approximately 1,000 diesel powered machines that are currently in use on AGC-members' jobsites.  These AGC Chapters - representing 9 out of 10 EPA Regions - have leveraged an additional $20 million plus in matching funds and "in-kind" contributions by pulling together an array of project partners.  This current grant competition resulted from funds included in the American Recovery and Reinvestment Act (ARRA) of 2009.  Approximately $156 million in ARRA funding is available for retrofits through EPA's National Clean Diesel Funding Assistance Program. These funds were not available directly to construction companies but were made available through "eligible entities" which included AGC chapters. EPA is currently reviewing the proposals and will announce "winners" over the next 30 days. EPA will hold another grant competition in August 2009 (EPA fiscal year 2009 appropriations), although for less money - around $60M. AGC has joined with other organizations urging President Obama and Congress to provide additional retrofit grants by fully funding the 2010 national diesel grant competition at $200 million.AGC Chapters Competing in Current EPA Diesel Retrofit Grant Competition: AGC of California, AGC of East Tennessee, AGC of Greater Milwaukee, AGC of Kentucky, AGC of New Hampshire, AGC of New Jersey, AGC of New York State, Associated Contractors of New Mexico, Associated General Contractors New Mexico Building Branch, Association of Oklahoma General Contractors, Colorado Contractors Association, Constructors Association of Western Pennsylvania, Inland Northwest Chapter-AGC, Las Vegas Chapter AGC, and Louisiana Associated General Contractors.

President Obama today released further details of his proposed budget for FY 2010. For the highway program, however, there is little new information. The budget requests $41.1 billion, just slightly higher than the $40.7 billion provided in FY 2009. This is the same amount that was included in the President's much briefer budget proposal released in February. (These figures do not include any of the transportation funding that resulted from the economic recovery act.) The detailed information that accompanies the request indicates that the Highway Trust Fund (HTF) will only be able to support a $5 billion funding level in 2010 under current conditions. The budget requests $36.1 billion in general fund money to ensure positive cash flow so that the program is able to continue functioning. The request also allows for the possibility that other legislation (presumably SAFETEA-LU reauthorization) could be enacted to positively impact the cash balance in the HTF.The Administration indicates that it is developing a comprehensive approach to transportation reauthorization and therefore no policy recommendations are included with the request. The background detail also points out that this funding level does not represent the Administration's recommended funding levels or a budgeting approach for the upcoming reauthorization. This approach is similar to how Congress handled the HTF situation in the budget resolution that was recently approved. The Congressional budget resolution assumes funding at the current baseline and allows for the possibility that new legislation will be enacted that will provide revenue necessary to increase the FY 2010 funding level.

House Transportation and Infrastructure Committee Chairman James Oberstar (D-MN) has announced that the bipartisan leadership of the committee has agreed on broad principles for SAFETEA-LU reauthorization legislation and that the highway subcommittee could begin marking up the legislation as soon as the week of May 18th.  The agreement covers concepts for restructuring the surface transportation programs but does not include funding levels or revenue sources. Program reforms would include consolidating many existing programs into four with several smaller programs left to stand alone. The plan also includes the creation within the US Department of Transportation of an Office of Intermodalism to develop a National Transportation Strategic Plan and to coordinate efforts by the different transportation modes to carry it out. Within the Federal Highway Administration a new Office for Expedited Project Delivery and an Office of Livability would be created.

House and Senate conferees came to a formal agreement on the FY 2010 Congressional budget resolution yesterday after negotiating a number of contentious provisions. The agreement adopts the more favorable House projections on available budgetary baseline for the highway and transit programs. This is an important initial step in the SAFETEA-LU reauthorization effort. The budget resolution sets the parameters governing spending decisions by Congress this year. It has particular impact on the highway and transit programs because SAFETEA-LU expires on September 30, 2009 and the amount of funding that can be included in the SAFETEA-LU reauthorization legislation is impacted by the budget resolution. Other provisions in the resolution are favorable to transportation as well, including a reserve fund provision allowing for additional highway and transit funding above the amount set in the resolution if new legislation is enacted that provides additional revenue. A proposal from the Obama Administration to use the resolution to change the budget treatment of the Highway Trust Fund was rejected. Final action on the compromise resolution is expected in both the House and Senate by the end of the week. AGC and our coalition partners - the Transportation Construction Coalition (TCC) and Americans for Transportation Mobility (ATM) -were in contact with House and Senate budget Committee members as well as other Senators and Representatives urging support of the House language.

Conferees are expected to meet on Monday to negotiate final compromises on the differences between the House and Senate versions of the Fiscal Year 2010 Congressional budget resolution. House and Senate consideration of the final measure is expected as early as Wednesday. The budget resolution sets the parameters governing spending decisions by Congress this year. It has particular impact on the highway and transit programs because SAFETEA-LU, the authorization for these programs, expires on September 30, 2009. The amount of funding that can be included in the SAFETEA-LU reauthorization legislation is impacted by the budget resolution.  The Senate version contains an artificially and substantially lower spending level for highway programs than the House and, if included in the compromise, will significantly undermine the ability of Congress to enact reauthorization legislation at an increased level.House Transportation and Infrastructure Committee Chairman Jim Oberstar (D-MN) and Highway Subcommittee Chairman Peter DeFazio (D-OR) called on AGC and other transportation groups to unite in supporting the House version of the budget resolution. Both called this action, "The beginning of the fight for a well funded transportation authorization bill," and pointed out that, "The game is over if we lose this battle."  AGC and our coalition partners - Transportation Construction Coalition (TCC) and Americans for Transportation Mobility (ATM) - have written to and are contacting House and Senate budget Committee members as well as other Senators and Representatives in support of the House language.Other provisions in the resolution are favorable to transportation, including a reserve fund provision allowing for additional highway and transit funding if new legislation is enacted that provides additional revenue. A proposal from the Obama Administration to use the resolution to change the budget treatment of the Highway Trust Fund was rejected.

AASHTO today released its "Bottom Line" report which spells out highway and transit investment requirements over the next six years. The report says that by 2015, governments at all levels will need to more than double their spending on highways and bridges to keep up with increased traffic, freight congestion, the demands of aging highways and bridges, and the growth of the nation's population. Transit spending would need to quadruple to serve increased ridership.The report points out that federal, state and local governments spent $79 billion on highways and bridges in 2006 and that investment of $166 billion per year is required if the number of miles driven increases at an expected rate of 1.4 percent a year. If transit ridership grows annually by its current 3.5 percent rate, the report indicates an annual investment of $59 billion will be necessary compared to the $13.3 billion investment level in 2006.House Transportation and Infrastructure (T&I) Committee Chairman Jim Oberstar participated in the release of the report. He said that drafting of a new reauthorization bill is moving along and that he fully intends to have the bill reported out of the T&I Committee by the end of May. He indicated that floor time has been set aside the first week in June to consider the bill. The chairman said he does not support temporary extensions of the program past the September 30 deadline.

AGC member company Pike Industries Inc., will begin work on Route 101 in New Hampshire next month, reported WMUR.  Company president Christian Zimmermann was prevented from laying off workers thanks to the project, which will be the first state highway project funded by the stimulus.

At a news conference at US Department of Transportation headquarters today President Obama, joined by Vice President Joe Biden and Transportation Secretary Ray LaHood announced that funding has been obligated for  2000 transportation projects, totaling over $6 billion with money provided in the American Recovery and Reinvestment Act (ARRA) economic stimulus legislation. "Just 41 days ago we announced funding for the first transportation project under ARRA and today we're approving the 2,000th project," said President Obama.  "I am proud to utter the two rarest phrases in the English language - projects are being approved ahead of schedule, and they are coming in under budget." State departments of transportation around the country have reported to FHWA intense competition by contractors for ARRA projects.  Bids have been roughly 15 to 20 percent lower on average, and as much as 30 percent below the engineers estimate in some cases. Only seven states have not obligated funds at this point.The ARRA legislation requires states to obligate 50 percent of these transportation funds within 120 days of apportionment, which occurred on March 2, 2009. States that do not obligate 50 percent of their transportation funds by June 30 will lose those funds to states that have met the deadline.  The over $6 billion obligated thus far is approximately 60 percent of the amount covered in this first deadline.