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.

The US DOT has issued a series of proposed rule changes to its disadvantaged business enterprise (DBE) regulations. The proposed changes are the result of meetings initiated by AGC to discuss DBE program implementation. The proposed rules deal with: concerns counting items obtained by a DBE subcontractor from its prime contractor, "unbundling" of contracts, improvements to DBE application form, program oversight, DBE certification in multiple states, discretion of prime to terminate DBE participation, setting goals every three years instead of annually. Comments on the proposed rule are due by July 7, 2009.  AGC will have its comments available for your review in time to submit your own comments on the proposed rules.

" width="300" height="200" />Workers at DC National Work Zone Awareness Week event

The 10th annual Work Zone Awareness Week began this week, and includes events around the country to raise awareness of the importance of highway work zone safety.  An event outside Washington, D.C., featured a tour of an AGC member project site led by Michael Hart, Cianbro Construction Corp.

May 19-20, Washington, D.C.The Transportation Construction Coalition (TCC) will hold a Fly-In May 19-20 in Washington, D.C.  Under the theme "Transportation Builds Our Economy," the coalition will meet with members of Congress to discuss the importance of transportation infrastructure investment.Congress and the Administration have less than nine months to draft and approve legislation to reauthorize critical highway, bridge, transit and aviation construction programs.  Join the coalition to ensure these issues are front and center in the 111th Congress.For more information, click here or contact Brian Deery at (703) 837-5319 or deeryb@agc.org.