AGC wrote to the Federal Highway Administration (FHWA) this week expressing opposition to the use of government mandated Project Labor Agreements (PLAs). The letter was instigated by guidance sent by FHWA to state DOTs pointing out that PLAs would be approved on federal-aid highway projects if states meet certain conditions which were spelled out in the document. FHWA took this action in response to President Obama's Executive Order directing Federal agencies to look at using PLAs on federally funded construction projects. FHWA reported that it has approved PLAs on six projects thus far, 5 in Illinois and 1 in New York.

Since President Obama's surprise announcement on Labor Day calling for $50 billion in transportation investment AGC has been attempting to get further details. In meetings this week with top DOT officials and discussions with key Congressional staff there remains a great deal of uncertainty. Congress will be returning from its summer recess next week and will presumably meet with Administration officials to decide if the time to move forward is now or later. AGC will continue to meet with key senators and representatives to discuss this proposal and to press the need to move forward now with a six year bill.

At a Labor Day event in Milwaukee, Wisconsin, President Obama announced his plan to request $50 billion in immediate stimulus investment for transportation infrastructure. Below is the fact sheet that was provided to AGC by the Federal Highway Administration about the proposal. At this point there are few specific details. Some key points worth mentioning are as follows:

• A significant portion of the $50 billion will apparently be available in the first year for investments in highways, transit, airports and rail. It appears these funds are supplemental to funds that would already have been provided for these programs in FY 2011 (beginning October 1, 2010) but this is unclear. The amount allocated to each program is also not specified.
• The President indicated that this increased funding will be paired with the Administration's vision for reforming existing transportation programs over the next six years. It appears that the proposal will include the long awaited "principles" for reauthorization of SAFETEA-LU the Administration has been expected to deliver.

As further details become available AGC will provide them to you.

The 2010 Highway and Utilities Contractors Issues Meeting is scheduled for November 11-14, 2010 at the Arizona Biltmore hotel in Phoenix. Named one of the top 50 US Hotels by Conde Nast Traveler, the legendary Arizona Biltmore is considered the "Jewel of the Desert," with Frank Lloyd Wright-influenced architecture and endless flowering gardens. 

This year's Issues Meeting will again address all of the top issues that impact contractors working in the highway, transportation and utilities market. Among the Issues that will be addressed:

-           Election 2010: How will the midterm election results impact your market, taxes and business operations.

-           Outlook for transportation reauthorization legislation.

-           Transportation and water funding initiatives.

-           Selling your company or your project by using social media.

-           New OSHA Regulations on Cranes and Derricks.

-           Case Studies Using BIM on Transportation and Utility Projects.

-           CM at Risk- Transportation Agencies are Starting to use this Alternative Project Delivery System- Learn What works and What Doesn't.  

-           Increasing efficiency in joint highway and utilities projects.

-           Open Mike Sessions to Dialogue with Your Fellow Contractors.

-          Separate tracks are scheduled address Issues unique to these two market sectors.

Back by popular demand the Ritchie Brothers Issues Meeting Golf Tournament.

Meeting Schedule:

Thursday November 11, 2010

 12:30- 5:00 PM      Ritchie Brothers Golf Tournament

5:30- 7:00 PM        Golf Tournament Reception

Friday November 12, 2010

7:00 AM - 4:30 PM Highway and Utilities Contractor Issues Meeting Session I

6:00- 7:00 PM Issues Meeting Reception

Saturday November 13, 2010

 7:00 AM - Noon  Highway and Utilities Contractor Issues Meeting Session II

 Online registration, hotel information and other meeting details are available at the attached site.

This week the California Air Resources Board (CARB) abandoned the original estimates of off-road diesel emissions that it used to establish goals for emissions reduction from off-road construction equipment. In doing so CARB essentially conceded that the "off-road rule" is not needed to meet these ambitious goals.  According to new estimates that the agency staff developed over the summer, off road fleets of diesel equipment will be far under the state's emission goals for many years to come.  CARB's action was taken in direct response to AGC's questioning of the data used in establishing the goals. If AGC gets the rule stopped in California, other states won't be able to adopt it locally. 

AGC of SD President Dave Gustafson speaking at the Rapid City event while the state's DOT Secretary Darin Bergquist looks on.

As part of the Transportation Construction Coalition and Americans for Transportation Mobility, AGC launched a new national effort to push for passage of the long-delayed bill that provides federal funds to fix aging roads and unsafe bridges. In conjunction with AGC of South Dakota, the campaign began with the unveiling of a new billboard, and radio and print advertisements in Rapid City.

The effort, which will cover dozens of states during the coming weeks, is designed to educate the public about why passing a federal transportation bill is essential to improving road conditions in states like South Dakota.

Read more here.

On July 29 the House approved the FY 2011 transportation appropriations bill. Included in the bill is $45.2 billion for federal-aid highway program, an increase of $4.1 billion (10 percent) over the 2010 funding level of $41.1 billion. The transit program is funded at $11.3 billion, an increase of $575 million over this year’s level of $10.7 billion. The Airport Improvement Program remains at this year’s level of $3.5 billion. High speed and intercity passenger rail is funded at $1.4 billion, a cut of $1.1 billion below the FY 2010’s level.

An amendment offered by Rep. Peter DeFazio (D-Ore.) was approved eliminating the transfer of $200 million from the highway program to a new “Livable Communities” grant program administered by DOT linking transportation and land use planning. The Obama Administration asked for this funding as part of its budget request. Rep. DeFazio argued that this new program should be addressed as part of an overall reauthorization bill and not be considered as part of an appropriations bill. AGC and the Transportation Construction Coalition contacted House members in support of the DeFazio amendment.

The appropriations bill is an important part of the annual funding process; however, it does not solve the underlying problem of not having authorization legislation in place, and it does not address the revenue shortage in the Highway Trust Fund. The highway and transit programs are currently operating under a short term authorization that expires on December 30, 2010. If a long term reauthorization measure is not enacted by that date, Congress must again approve a short term extension to avoid a shutdown in highway and transit funding. Highway Trust Fund revenue is insufficient to support the funding level that was approved by the House. In March 2010, $20 billion was transferred from the general fund to ensure that the Highway Trust Fund could meet its obligations. That funding is projected to support the current funding levels through August 2011. Congress will have to take action to further shore up the Highway Trust Fund to support the increased funding levels in the House bill.   

The Senate Appropriations Committee last week passed its version of the FY2011 transportation funding bill.  Funding for the transportation programs in the Senate bill is at much lower levels than the House bill, as follows: highway program $41.9 million, transit program $10.6 billion, airport Improvement program $3.5 billion and high speed rail $1 billion. The Senate is not scheduled to take up the measure until after the Congressional summer recess.

The outlook for getting a highway authorization bill passed in this Congress is cloudy. The bottom line is that we have an uphill battle and therefore a strong grassroots initiative is vital over the August recess to focus the attention of Congress on the need to get the bill done. Your Senators and representative need to hear from you. You can send a letter by going to AGC's Legislative Action Center by clicking here.

In conjunction with our coalition partners, the Transportation Construction Coalition (TCC) and American for Transportation Mobility (ATM), AGC has developed grass roots tools to assist members and chapters in getting the message out such as:

- Op-Ed pieces
- Social Media Tactics
- Reauthorization Fact Sheet
- Sample letters to the editor on specific topics
- Tips for Contacting Members of Congress
- How to request a Meeting with a Member of Congress
- What Congestion Means to Your Town
- Suggestions for Holding a successful media event
- Sample Advertisements

All can be accessed here.

AGC and our coalition partners have also developed some advertisements which can be used on billboards, in local publications, on websites and in other key areas. AGC, ATM and TCC will be running these ads in key locations.

By a vote of 251-167, the House today approved the FY 2011 transportation appropriations bill. Included in the bill is $45.2 billion for the federal-aid highway program, an increase of $4.1 billion (10 percent) over the 2010 funding level of $41.1 billion. The transit program is funded at $11.3 billion, an increase of $575 million over this year's level of $10.7 billion. The Airport Improvement Program remains at this year's level of $3.5 billion. High speed and intercity passenger rail is funded at $1.4 billion, a cut of $1.1 billion below the FY 2010 level.

An amendment offered by Rep. Peter DeFazio (D-Ore.) was approved eliminating the transfer of $200 million from the highway program to a new "Livable Communities" grant program administered by DOT linking transportation and land use planning. The Obama Administration asked for this funding as part of its budget request. Rep. DeFazio argued that this new program should be addressed as part of an overall reauthorization bill and not be considered as part of an appropriations bill. AGC and the Transportation Construction Coalition contacted House members in support of the DeFazio amendment.

The appropriations bill is an important part of the annual funding process; however, it does not solve the underlying problem of not having authorization legislation in place, and it does not address the revenue shortage in the Highway Trust Fund. The highway and transit programs are currently operating under a short term authorization that expires on December 30, 2010. If a long term reauthorization measure is not enacted by that date, Congress must again approve a short term extension to avoid a shutdown in highway and transit funding. Highway Trust Fund revenue is insufficient to support the funding level that was approved by the House. In March 2010, $20 billion was transferred from the general fund to ensure that the Highway Trust Fund could meet its obligations. That funding is projected to support the current funding levels through August 2011. Congress will have to take action to further shore up the Highway Trust Fund to support the increased funding levels in the House bill.

The Senate Appropriations Committee last week passed its version of the FY2011 transportation funding bill. Funding for the transportation programs in the Senate bill is at much lower levels than the House bill, as follows: highway program $41.9 million, transit program $10.6 billion, airport Improvement program $3.5 billion and high speed rail $1 billion. The Senate is not scheduled to take up the measure until after the Congressional summer recess.

AGC participated in a town hall-style meeting with U.S. Department of Transportation's top leaders who addressed the next long-term transportation bill. This meeting was the final event in the Department's series of "listening tours" leading up to release of its principles the surface transportation reauthorization.

The senior DOT officials provided very few specifics about their current thoughts regarding various aspects of a surface transportation bill and provided no answer when asked when they will release their principles. DOT officials did however pledge their support for a long-term funding authorization and expressed the need to expedite the process of approving and finishing construction projects.

The Congressional Democratic leadership met with President Obama at the White House this week to discuss the legislative agenda for the remaining weeks before the Congressional summer recess. While vowing to continue to emphasize job creation and economic recovery, not included in the discussions were passing additional stimulus legislation with transportation funding or moving the long-stalled multiyear surface transportation reauthorization legislation.

AGC's CEO Steve Sandherr participated in a town hall meeting called by House republican leadership with the leaders of the business community to discuss steps that can be taken to create jobs. Sandherr reminded the participants about the depressed state of the construction industry and made the following points:
• Infrastructure investment must be a national priority so that free trade is not restricted by transportation delays.
• Private investment finances 70% of construction projects and maintaining the tax cuts enacted during the Bush Administration is necessary to provide needed capital for investment.
• A moratorium on new federal regulations should be implemented to remove uncertainty, cost of compliance, and increased business costs.