Amy Hall, president of Ebony Construction in Sylvania, Ohio presented testified on the need for clarity in implementing regulations for the US DOT's disadvantaged business enterprise program and the work AGC has done to develop industry standard guidance documents over the last three years.  The hearing was held in conjunction with the Transportation & Infrastructure Committee's reauthorization of highway, transit and aviation programs. In response to Ms. Hall's testimony T&I Committee Chairman Jim Oberstar (D-MN) said: "I want to thank AGC for their very active, assertive involvement in the DBE program and the very significant contributions AGC has made. It is very much to their credit to have you as their articulate witness."

Hall participated in a Highway and Transportation Division taskforce that developed a guidance document on which AGC is seeking federal and state input and approval. AGC also recommended continued dialogue with the agency and interested parties on critical issues impacting the program. The hearing featured testimony from AGC members Katherine Cloonen, President of JK Steel Erectors in Bonfield, Ill., and Anthony Thompson, President and CEO of Kwame Building Group in St. Louis, Mo.

House and Senate Budget Committees this week passed their respective budget resolutions providing a non-binding blueprint for FY 2010 federal spending and tax policy.  The House and Senate will consider the resolutions next week, with final passage votes expected by the weekend. Both resolutions provide for level funding for surface transportation programs, but provide room for more spending if sufficient resources are made available in subsequent legislation. SAFETEA-LU expires at the end of FY 2009 and without an authorization in place the funding levels for the highway and transit programs are uncertain.

The House budget resolution includes a "reserve fund" for surface transportation reauthorization that allows Congress to revise spending for surface transportation programs upward if Congress writes legislation that "establishes or maintains a solvent Highway Trust Fund over the period of fiscal years 2009 through 2015."  The provision leaves open the option of a transfer of general fund revenues to the Highway Trust Fund, "as long as the transfer of Federal funds is fully offset."

The Senate budget resolution includes a reserve fund for a broader array of infrastructure projects, including energy, water, and public housing.  It also allows for more spending on surface transportation if the "solvency of the Highway Trust Fund will be maintained for the length of the surface transportation authorization." 

Both resolutions reject the Administration's proposal to change the budgetary treatment of Highway Trust Fund which would have eliminated the mechanism that allows the federal government to provide states with muti-year budget authority for their highway and transit programs and would have instead treated surface transportation programs like other federal programs which receive single year appropriations. AGC wrote to both House and Senate Budget committees opposing this provision, pointing out how this would undermine states' ability to plan their long term transportation construction programs.

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.

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

Highway and Transportation Division Chairman Don Weaver presented AGC testimony to the House Select Committee on Energy Independence and Global Warming this week on the topic of "Constructing a Green Transportation Policy." Weaver used the opportunity to point out that studies show that improving highway infrastructure to allow vehicles to move more freely through existing bottlenecks will significantly reduce Green House Gas (GHG) emissions. He also said that improving existing transit systems or building new ones in congested urban areas will also reduce GHG emissions. AGC was specifically asked about steps that could be taken in the construction of transportation projects to reduce GHG emissions. Noting that, according to EPA,  construction accounts for only 0.86 percent of U.S. GHG emissions, Weaver said "this industry has a long history of developing construction techniques and practices that enhance our environment."  He recommended that "the federal government can assist in these practices by offering appropriate incentives."

AGC's testimony also called for the creation of a federal investment tax credit for contractors to replace their existing diesel powered equipment with more energy efficient new models. He added that the tax credit would also aid the construction equipment manufacturers who have been reducing their work forces because of the drop in equipment purchases.

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.