Following an historic 18 hour markup session that ended at 2:45 am eastern time, the House Transportation and Infrastructure Committee approved, by a vote of 29-24, H.R. 7, the American Infrastructure and Infrastructure Act of 2012. The committee considered over 100 amendments and adopted 33. The House Ways and Means Committee today passed the revenue title to the bill and the Natural Resources Committee approved its portion of the legislation on Wednesday. The three titles will now be bundled together into one bill and is likely to be addressed by the full house as early as the week of February 13.
Key Provisions of HR 7
Funding: Provides an average of $41.1 billion per year for highways and $10.5 billion for transit for FY 2013-16; this is approximately the same level of funding that was appropriated in FY 2012. However, this is below the level of funding that was provided in FY 2011 (approximately $2 billion was cut from highway funding in FY 2012). Alternative Transportation Account: Eliminates the Mass Transit Account in the Highway Trust Fund and replaces it with a new “Alternative Transportation Account” which would fund the transit program, Congestion Mitigation and Air Quality Improvement (CMAQ) program, research programs and territorial and Puerto Rican highway programs. Redirects the 2.86 cents per gallon of the federal gasoline and diesel fuel taxes that are currently deposited in the Mass Transit Account and directs them to the Highway Account of the Highway Trust Fund, including any FY 2012 taxes that have already been collected and credited to the Mass Transit Account. The new “Alternative Transportation Account” would be supported by a transfer of $40 billion from the general fund. There is no indication how the $40 billion transfer will be offset. Oil and Gas Leasing: Expands leasing opportunities in parts of the Arctic National Wildlife Refuge and in the Gulf of Mexico and promotes oil shale oil production on public lands. Revenue from this expanded leasing to be directed to the Highway Trust Fund. No estimates of the amount that would be collected or the timing has been distributed. Consolidation: Eliminates 40 different program funding categories. NHS Consolidation: Consolidates the existing Interstate Maintenance Program into an expanded National Highway System (NHS) Program which will receive roughly half of the bill’s highway funding. STP Program: The Surface Transportation Program is expanded to include the Appalachian Development Highway System program (STP), replacement of off-system bridges and tunnels, and construction of new bridges and tunnels at new locations. Enhancements: Eliminates the transportation enhancements set-aside that required funding for certain non-transportation projects but maintains funding eligibility. However, historic and scenic highways, preservation of railroad corridors and transportation museums would no longer be eligible for federal funding. Congestion Mitigation and Air Quality (CMAQ): Amends the program to allow these funds to be used for projects that or programs that are likely to contribute to the mitigation of congestion, including funding for new capacity for single occupant vehicles. State Infrastructure Banks: Authorizes $750 million annually for states to capitalize State Infrastructure Banks. Transportation Innovative Financing and Investment Act (TIFIA): Expands the TIFIA program to $1 billion per year from its current $122 million annual level. Public Private Partnerships(PPPs): Requires US DOT to publish best practices for the use of PPPs and to develop standard model PPP contracts. Tolling: Provides states with authority to toll new lanes constructed on the Interstate Highway System, but maintains the prohibition from tolling existing interstate lanes. Environmental Reform/Streamlining: Reduces planning and environmental timetables for highway and transit project delivery and makes other significant reforms to the environmental review process, including:- Designates U.S. DOT as the lead agency for the review and approval of transportation projects;
- Allows DOT to set hard deadlines for actions by other federal agencies;
- Sets a 270 day cap for completion of the environmental review process for any project;
- Reduces the deadline for filing legal challenges to transportation projects from the current 180 days to 90 days;
- Limits Federal NEPA review requirements for projects that are less than $10 million or where Federal funds are less than 10 percent of the project funding.
- Expands the category of projects that are automatically excluded from the Federal environmental review process.
- Provides expedited procedures for approval of projects with minimal environmental impact.
- Allows for the purchase of right of way and for design to begin prior to final environmental clearance.
Action Needed
While both the House and Senate Committees are currently working to get the transportation reauthorization bills to their respective floors, the work to pass a bill into law is far from over. Getting a highway and transit authorization bill passed in Congress and signed into law prior to March 31, 2012, will not be easy. It is vital that AGC members engage business associates (suppliers, subcontractors, insurance, bonding, financial services, etc.), labor organizations and other non-construction businesses in this effort. Please join AGC’s campaign to Make Transportation JOB #1, and help continue to build momentum for passage of a reauthorization bill. For more information, please contact Brian Deery at (703) 837-5319 or deeryb@agc.org.