In a letter to the full House of Representatives this week, Transportation & Infrastructure Committee Chairman James Oberstar (D-Minn.) and Highways & Transit Subcommittee Chairman Peter DeFazio (D-OR) warned that the Highway Trust Fund is facing a severe revenue shortfall and Congress needs to act quickly to enact new transportation authorization legislation to avoid a dramatic downturn in highway construction. The letter pointed out that, "Without taking steps to avoid this situation, the Highway Trust Fund will only support a highway investment level of approximately $20.5 billion in FY 2010, one-half of the amount that we are investing this year.  The Federal transit program would also face a significant cut in FY 2010."  The letter further warned that, "These cuts would unquestionably cause construction to halt on many critical projects throughout the nation and would negate the simulative effect of the American Recovery and Reinvestment Act of 2009." Included with the letter was a state by state chart showing the dramatic cuts that will occur if this situation is not fixed.The letter was intended as a wake-up call pointing out that the current authorization bill, SAFETEA-LU, expires on September 30, 2009 and that Congress needs to ensure that there will be no disruption in highway and transit program funding. Chairman Oberstar has stated on numerous occasions his intent of having new authorization legislation enacted before the expiation deadline arrives. This letter once again makes that point saying that states need a reliable funding source to avoid the pull back in investments in highway construction projects that occurred in the last reauthorization when 12 extensions were necessary to keep the program running while a new bill was negotiated.

" width="300" height="200" />AGC Highway and Transportation Division Chair Don Weaver, right, with Rep. Earl Blumenauer (D-OR) at Select Committee on Energy Independence and Global Warming hearing

The National Partnership for Highway Quality (NPHQ) program is in its 17th year and continues to be the only national program that unites public transportation agencies and members of the private highway industry in an effort to promote continuous improvement in the quality of delivered highways in the United States. AGC has served as the Co-Chair of the NPHQ since its inception. This year NPHQ is refocusing its program to identify and more directly promote best practices to assure the quality of delivered highway projects. To more accurately focus its future program, NPHQ is seeking input from those who are on the front line of delivering America's roadways.A short, easily-answered survey is attached for you to share your thoughts. Please take a few minutes of your time and provide your support to this endeavor by answering a few questions. Your participation will be invaluable to NPHQ and the quality agenda.

April 6-10 marks the 10th anniversary of National Work Zone Awareness Week.  The national campaign is conducted every year at the start of the construction season to raise public awareness about the dangers to workers and motorists when safe driving practices are not followed in construction work zones. Each year, approximately 1,000 people are killed in roadway work zones. A National event is planned for Tuesday, April 7 in the Washington, D.C metropolitan area. This year's theme is "Drive To Survive - Our Future Is Riding On It." AGC of America serves on the planning committee and participates in the National event and AGC chapters around the country work with their state DOTs to plan awareness events at the state and local level.

The House Transportation and Infrastructure Committee has approved reauthorization legislation for the Federal Aviation Administration (FAA) extending program funding and taxing authority through September 30, 2012. FAA authorization originally expired on September 30, 2007 but several short term extensions have kept the programs in operation. The current short term extension ends on March 31. The House Ways and Means must take action on the part of the tax portions of the legislation. The bill would increase Airport Improvement Program (AIP) grants to $4 billion in FY 2010, $4.1 billion in FY 2011, and $4.2 billion in FY 2012.  AIP program funding has been set at $3.5 billion for the past two fiscal years. The legislation also raises the cap on Passenger Facility Charges (PFC) from $4.50 per head to $7.00. Airports are allowed to set their own PFC level up to the cap and use these funds for airport infrastructure improvements.

The Senate has completed action of the fiscal year 2009 omnibus appropriations bill which President Obama is expected to sign before the current continuing resolution expires at Midnight March 11, 2009. The legislation was necessary because the 110th Congress failed to finalize action on most of the appropriations bills before adjourning last year. At that time, a short term extension of funding at FY 2008 levels was approved through March 6, 2009 which was subsequently extended further through March 11. Transportation programs are included in the legislation. The Federal-aid Highway program is fully funded at the SAFETEA-LU authorized level of $40.7 billion. This is slightly less than FY 2008 because there was an additional $1 billion added to last year's funding level for emergency bridge repair. The transit program is increased to $10 billion, the authorized funding level, which is a 7 percent increase over 2008. The Airport Improvement Program remains at $3.515 billion, the same as 2008.

The bipartisan National Surface Transportation Infrastructure Financing Commission released its final report today, unanimously recommending the gradual phase-out of federal motor fuel taxes to be replaced by a distance fee based on "vehicle miles traveled" (VMT). The finance commission is the second of two commissions established in SAFETEA-LU charged with making recommendations about the future direction of the federal surface transportation programs and how they should be funded. The finance commission evaluated a wide range of financing options and concluded that the fuel based user fee system is no longer a viable way to pay for future transportation improvements. It recommended instead a gradual ten year transition to a distance based user fee. To fund transportation needs while this transition is underway, the finance commission also recommends increasing the federal gasoline tax by 10 cents per gallon and increasing the federal diesel fuel tax by 15 cents per gallon. The report also calls for increased use of public-private partnerships, expanded use of tolling, and congestion pricing. Last week Transportation Secretary Ray LaHood made news when he was misquoted by the national media as saying that the Obama Administration was recommending implementation of the VMT user fee. The White House press secretary responded quickly and said the VMT "is not and will not be" the policy of the Obama Administration.

The House this week approved an omnibus appropriation bill to fund government programs through the remainder of FY 2009. The 110th Congress was unable to complete action last year on most of the FY 2009 appropriations bills and instead passed a stopgap continuing resolution funding programs at 2008 levels through March 6, 2009. The omnibus bill funds the highway program at $40.7 billion the SAFETEA-LU authorized level. This is slightly less than FY 2008 because there was an additional $1 billion provided last year to address emergency bridge repairs. The transit program is increased to $10 billion, the authorized funding level, which is a 7 percent increase over 2008. The Airport Improvement grants remain at $3.515 billion, the same as 2008. 

President Obama has released his proposed federal budget "framework" for fiscal years 2010 and beyond.  The document is not a detailed line item budget proposal but rather, in many areas, presents aggregate funding levels and some policy initiatives and priorities. The detailed budget is expected to be released in April.The overall US DOT funding level requested is $72.5 billion about $1.8 billion more than the $70.7 billion appropriated in FY 2009, an increase of 2.5 percent. Highway and transit funding levels are not specified. The document points out that the current framework for financing and allocating surface transportation investments is not financially sustainable and pledges to work to correct this situation and will emphasize the use of economic analysis and performance measurement in transportation planning. A key point of concern, however, is a proposal to change the budget treatment of the Highway Trust Fund that would change project funding from a multi-year authorization to an annual appropriation. This would be very disruptive to the program and a policy change that will be opposed by the transportation community.The budget also highlights high speed rail as a top Administration transportation priority. The document proposes a five-year $5 billion high speed rail state grant program. This is in addition to the $8 billion included in the recently enacted economic stimulus legislation.

The Highway and Utilities Contractors Issues Meeting took place Feb 6 and 7. Over 120 contractors came to La Quinta, Calif., for discussion of the issues that affect their particular markets and to hear presentations from some of the leading experts in the field.Topics included materials prices and availability for asphalt and steel, the national implications of the California Air Resources Board's Off-Road Diesel Emissions limits and the political outlook for the economic stimulus package, SAFETEA-LU reauthorization and the Water Trust Fund. Scott Williams and Don Weaver, chair and vice-chair respectively of the Highway & Transportation Division, presided over the first day of activities, which included sessions on worker visibility standards and public works financing troubles. Brad Barringer and Art Daniels, Municipal & Utilities Division Chair and Vice Chair, presided over the second day, which included sessions on ethics and compliance programs, Florida's success with dispute resolutions boards, and OSHA's crane operator standard.For more information, contact Scott Berry at (703) 837-5368 or berrys@agc.org.