The Water Resources Development Act of 2010 was introduced July 28, 2010 by Rep. James L. Oberstar (D-Minn.), Chairman of the Committee on Transportation and Infrastructure, and Rep. Eddie Bernice Johnson (D-Texas), Chairwoman of the Subcommittee on Water Resources and Environment. The legislation authorizes approximately $6 billion for critical navigation, flood damage reduction, and environmental restoration projects, as well as studies carried out by the Army Corps of Engineers.

Among the projects included in the legislation are three concerning storm mitigation and ecosystem restoration, 31 for aquatic ecosystem restoration, 31 small flood damage reduction projects and 160 studies for potential future water projects, according to a news release.

The package is much smaller than the WRDA 2007 legislation, which totaled $23 billion, however that bill was nearly eight years late. Another factor impacting the total authorized amount is the fact that the package does not include Republican project designations at this time. Other language in the bill would clarify the way expenditures are credited, increase transparency of reviews and improve mitigation of environmental impacts associated with Army Corps projects. 

AGC notes three provisions in the bill. The first, which causes some concern, would classify Operations and Maintenance work as "inherently governmental." This could put this type of work, which is normally done by contractors, in-house within the Corps. A second provision that will require further examination would increase opportunities for the Corps to facilitate watershed planning and carry out watershed and river basin assessments.

Another provision, one that AGC strongly advocated for, would create a "firewall" to ensure all funds contributed to the Harbor Maintenance Trust Fund will be spent out on an annual basis. This will ensure as much as a 50 percent increase in funding for projects financed by the Fund.

AGC was a key leader in getting the WRDA 2007 bill passed and we are working to provide a full analysis of the complete bill as soon as possible.

To view a copy of the bill, click here. To view a summary of the bill click here. To view a copy of Chairman Oberstar's statement of introduction, click here. To view AGC's policy on WRDA 2010 passage, click here.

As reported in The Hill, AGC has repeatedly urged Congress and the Administration to act on a range of infrastructure bills, given that the stimulus is running out but private sector demand has yet to pick up. 

Several key pieces of infrastructure legislation remain is Congressional limbo, including authorizations for the surface transportation program, airport construction, and the drinking water and wastewater SRFs. All are in various states of completion, but given the relatively few remaining legislative days, action now is critical to the long-term health of the construction industry and the economy.

Read more in the article from The Hill.

Following months of AGC and other transportation construction stakeholders successfully lobbying Congress and the administration to restore $8.7 billion of rescinded highway contract authority, the House of Representatives is poised to take $2 billion of that unobligated money away to offset a $10 billion appropriation to preserve teachers' jobs included in the House supplemental appropriations bill.  This provision will not impact overall spending but may have an impact on what types of projects states can fund in the future.

The intent of the bill is to provide funding for U.S. troops; however, the House Appropriations Committee added additional funding that required an offset of $11.7 billion.  As co-chair of the Transportation Construction Coalition, AGC sent a letter to Congress opposing the House supplemental proposal, and argued that the rescission creates further uncertainty in an already-suffering transportation construction marketplace. AGC also argued that it raises questions about future federal transportation investment commitments.  A copy of the letter can be found here.

For more information, contact Sean O'Neill at (202) 547-8892 or oneills@agc.org.

Movement on a top AGC priority occurred this week as Senate Environment and Public Works Chairwoman Barbara Boxer (D-Calif.) held a hearing a new Water Resources Development Act (WRDA) on May 6, 2011. AGC Past Federal and Heavy Construction Division Chairman Mitch White of Manson Construction Co. in Long Beach, California, called on Congress to pass a new WRDA bill on schedule to meet the nation's economic, safety and transportation needs.

WRDA reaffirms the government's pledge to authorize, modify, and improve projects, programs, and policies protecting the nation from floods and keeping our waterways open to navigation. Regular authorizations of water resources development projects fulfill these important missions. AGC's testimony stressed that waterways programs foster economic development, facilitate trade and commerce, aid international competitiveness, stimulate employment, provide water recreation opportunities, enhance agricultural and industrial productivity, and augment our national defense. In addition, a new WRDA bill would serve as a key component of turning around the severe unemployment in the construction industry, which is currently hovering at 25 percent.

AGC is continuing to work with water resources and infrastructure investment champions in Congress to support passage of the legislation in the 111th Congress.  House Transportation and Infrastructure Committee Chairman James Oberstar (D-Minn.) has also stated his commitment to passing this important water infrastructure authorization in a timely manner.

President Obama today signed the "jobs" legislation, which the Senate approved yesterday thanks to AGC's continued advocacy and an effective grassroots lobbying effort. The bill, known as the "HIRE Act," includes the following provisions of importance to the highway construction industry:

• Extends highway program authorization through December 31, 2010 at current funding levels.
• Provides additional revenue to keep the Highway Trust Fund solvent through the first quarter of 2011 by restoring $19.5 billion in interest payments foregone on the HTF's previous cash balances.
• Restores $12 billion in highway spending authority that was cut on September 30, 2009 due to an $8.7 billion budget rescission in SAFETEA-LU and a subsequent rescission of $3.2 billion.
• Authorizes payment of interest on future HTF balances.
• Alters the way in which long-standing fuel tax exemptions provided to state and local governments are accounted for, which are projected to increase HTF balances by about $1.7 billion annually, for a total of $9.8 billion over six years.
• Provides $4.6 billion in additional authority for Build America Bonds which have been used extensively by state and local governments to fund infrastructure projects, including highway and bridge projects.
• Extends section 179 expensing thresholds so that taxpayers may elect to write-off up to $250,000 of certain capital expenditures in 2010 in lieu of depreciating those costs over time.

For more information, contact Brian Deery at (703) 837-5319 or deeryb@agc.org.

In a week that saw the temporary shutdown of the Federal Highway Program and the president signing into law a 30-day extension of SAFETEA-LU, the House today passed by a vote of 217-201 an amended version of the Senate "jobs" bill, which among other things would extend SAFETEA-LU  through 2010 and provide a $19.5 billion transfer from the General Fund of the U.S. Treasury to the Highway Trust Fund. 

The other provisions in the Senate bill can be found here.  The House bill was amended to make it deficit-neutral and to address concerns of minority-owned business in order for Democratic leadership to have enough support to pass the bill.

The fate of the bill, the year-long extension and the Highway Trust Fund transfer once again rests in the hands of the Senate, which passed their bill by a vote of 70-28 on February 24.  Due to the Senate schedule it is not clear when the amended House bill will be taken up for consideration by the Senate.  In the absence of a multi-year surface transportation reauthorization bill, AGC will once again work with Senate leadership to ensure passage of the long term extension and the Highway Trust Fund transfer in order to provide continuity in the programs and certainty for our members through the end of the year.

The House Transportation and Infrastructure Committee held a hearing on March 3, 2010, to review how well the U.S. Army Corps of Engineers has succeeded in its implementation of the Water Resources Development Act of 2007 (WRDA). Some of the reforms in that legislation were designed to revise how U.S. Army Corps of Engineers would address environmental mitigation, external review of controversial projects and project selection criteria that account for sustainable development practices.  

Testimony offered by the AGC-led Water Resources Coalition reported several key findings, including the following:

• While USACE has made progress implementing the act, the process has been slow and not transparent;
• The current draft Principles and Guidelines, originally tasked to USACE, but later transferred to the Council for Environmental Quality, failed to meet Congressional mandate and needs to be reworked;
• The Water Resources Coalition recommended that Congress should enact legislation to establish a national levee safety program; and
• Federal legislation defining the goals and standards for watershed managers should permit flexibility and accommodate regional needs.

AGC strongly believes that enacting a new bill is necessary to address these important issues and continue to provide the nation with a comprehensive and modernized water resources program.

To view a copy of the Committee's report, click here.

The Senate yesterday passed Majority Leader Reid's version of an initial jobs bill by a vote of 70 to 28.  Earlier in the week, an important cloture vote was approved when five Republican senators joined 57 Democrats to allow consideration of the legislation to move forward.

The Senate bill contains the following provisions:

• Extends highway program authorization through December 31, 2010 at current funding levels.
• Provides additional revenue to keep the Highway Trust Fund solvent through the first quarter of 2011.
• Restores highway spending authority that was cut on September 30, 2009 due to a budget rescission in SAFETEA-LU.
• Allows public bodies to convert tax credit bonds to Build America Bonds.
• Exempts workers hired in 2010 that have been unemployed for at least 60 days from Social Security payroll taxes.
• Extends 2008 and 2009 section 179 expensing thresholds so that taxpayers may elect to write-off up to $250,000 of certain capital expenditures in 2010 in lieu of depreciating those costs over time.

Action on the bill now moves to the House. The fiscally conservative Blue Dog Democrats have raised concerns that other elements of the bill violate the House statutory PAYGO budget rules which require an offset for any additional spending. In addition, House Transportation and Infrastructure Committee Chairman Jim Oberstar (D-Minn.) has objected to the formulas used in the Senate bill to distribute the highway funding. While these issues are of concern to the House leadership, there is recognition that highway program authorization expires on Sunday, February 28, and some form of extension is needed. Therefore, they are considering a two to four week stop gap extension of the highway and transit programs packaged with an extension of unemployment insurance and COBRA subsidies.

In addition, the House leadership is concerned that changing the bill will require additional Senate action, which is not assured. After action is completed on this legislation, Majority Leader Reid intends to press for additional jobs related legislation, including additional funding for various infrastructure programs. The original House jobs bill included increased infrastructure funding.

Senate Majority Leader Harry Reid (D-Nev.) Wednesday proposed legislative language for a new package of tax extenders and long-term extensions of expiring laws as part of the Senate Democratic leadership's jobs creation agenda.  The "American Workers, State, and Business Relief Act" would extend nearly $30 billion in expired tax provisions through 2010, including several that could benefit the construction industry, such as the 15-year shortened cost recovery period for leasehold, retail, and restaurant improvements and restaurant new construction.  The measure would also include long sought after funding relief for multiemployer pension plans that would allow plans a longer 30-year amortization of investment losses incurred in 2008 and/or 2009. 

Senator Reid plans to take up the bill as early as next week.

Next Monday, the Senate will hold a cloture vote on whether to allow debate to proceed on the Reid substitute for the so-called "jobs" legislation. Senate Majority Leader Harry Reid (D-Nev.) decided to abandon a bipartisan "jobs" package negotiated by Senators Max Baucus (D-Mont.) and Chuck Grassley (R-Iowa).

Instead, Reid has put forward a scaled back version that would:

• Extend highway program authorization through December 31, 2010 at current funding levels.
• Provide additional revenue to keep the Highway Trust Fund solvent through the first quarter of 2011.
• Restore highway spending authority that was cut on September 30, 2009, due to a budget rescission in SAFETEA-LU.
• Exempt workers hired in 2010 that have been unemployed for at least 60 days from Social Security payroll taxes.
• Allow public bodies to convert tax credit bonds to Build America Bonds.
• Extend 2008 and 2009 section 179 expensing thresholds so that taxpayers may elect to write-off up to $250,000 of certain capital expenditures in 2010 in lieu of depreciating those costs over time.

Unlike the House "jobs" legislation, neither Senate versions contain additional infrastructure funding, although there have been discussions about moving additional "Jobs" legislation in the future.   AGC has been visiting Senate offices urging support for cloture and for final passage of the bill. If you have not yet done so, please call your Senators and tell them the following:

• Please vote for cloture to allow consideration of the "jobs" bill to proceed and vote in favor of final passage of the bill.
• Failure to approve this legislation by February 28 could result in our state losing millions in highway funding, undermine our state's ability to reimburse contractors for ongoing contracts, stall future contract lettings and undermine the outlook for reauthorization of the federal aid highway program.
• Build America Bonds have allowed states and local governments to pay for vital infrastructure like schools, water projects, port expansions  and transportation projects that also create jobs.
• With the unemployment rate in the construction industry at nearly 25 percent, a disruption in highway and other infrastructure funding and will make this situation worse. This legislation is necessary to save construction jobs and will lead to more hiring.

On Wednesday, AGC pushed for infrastructure funding during a media call with Senator Barbara Boxer (D-Calif.).  Read more here.