Deliver the Message at the TCC Fly-In The Transportation Construction Coalition’s (TCC) 2016 Legislative Fly-In is scheduled for May 10-11, 2016. While the FAST provides a steady source of funding over the next five years for highway and transit programs, the legislation did not solve the long-term Highway Trust Fund revenue problem. At the expiration of the FAST Act in FY 2020, significant new revenue will be needed just to maintain current funding levels. Your Senators and Representative need to understand that they need to get started on fixing the transportation infrastructure investment shortfall we are facing now and into the future.

House Budget Committee approved the week of March 14 a fiscal year 2017 budget resolution by a 20-16 vote. Republicans on the Budget Committee say their $3.9 trillion plan would reduce deficits by $7 trillion over 10 years, without increasing taxes, by cutting $6.5 trillion in government spending. The budget maintains the $1.07 trillion cap for discretionary spending in fiscal year 2017 that was set in last year’s bipartisan budget agreement – a level opposed by members of the House Freedom Caucus who want greater reductions in discretionary spending. Interestingly the Freedom Caucus opposition may lead to a continuing resolution that will result in a defense spending cut of more than $2 billion.

The week of March 14, the Senate Commerce Committee passed the Federal Aviation Administration (FAA) Reauthorization Act of 2016. The nearly two-year authorization provides a $400 million increase in 2017 for the Airport Improvement Program (AIP) but does not lift the volume cap on the Passenger Facility Charge (PFC) program. The AIP and PFC are the main funding and financing mechanisms for airport and runway infrastructure projects. Prior to the committee’s consideration, AGC sent a letter supporting the increase in the AIP and asking for the Senate to consider an increase in the PFC as the legislative process moves forward.

The Federal Highway Administration (FHWA) this week extended for one year a pilot program allowing state DOTs to include a geographic-based (local) hiring preference as a contract requirement on federally-assisted highway construction projects. The pilot was originally set to expire on March 6, 2015. When first proposed US DOT simultaneously proposed a new rule allowing the use of local hire requirements on a permanent basis. Thus far eight states have asked for and received permission to use local hire requirements as part of the FHWA pilot program. US DOT has indicated that it intends to approve and evaluate the results of these projects under the pilot program before deciding how to proceed with its proposed rule.

House Ways and Means Committee Chairman Kevin Brady (R-TX) addressed AGC’s Highway and Transportation Division today during AGC’s 97th Annual Convention in San Antonio, Texas. Chairman Brady’s committee is responsible for tax issues in the House including Highway Trust Fund motor fuel tax revenue. He said he was pleased that Congress was able to find sufficient revenue last year to fund the FAST Act for the next five years but he believes we need to get back to a user fee based revenue source. He reported that transportation committee chairman Bill Shuster (R-PA) is organizing a summit of the key House members and outside stakeholders to discuss the best route to a long term sustainable solution..

This week, Senate Commerce Committee Chairman John Thune (R-S.D.) indicated that he and House Transportation and Infrastructure Committee Chairman Bill Shuster (R-PA.) are close to agreement on a three-month extension of Federal Aviation Administration (FAA) programs. This extension will be necessary to allow for the House and Senate to work through the legislative process. The current authorization expires on March 31.

Register at www.agc.org/tcc_fly-in Although Congress’ recently-passed highway and transit bill, the FAST Act, temporarily stabilizes highway and transportation programs, legislators have so far failed to address the root cause of the funding shortfalls that have plagued the Highway Trust Fund since 2008. Additionally, a short-term extension of federal aviation programs expires at the end of March, and Congress is working on a multi-year bill to fund those programs.

Talks of Extension Begin Talk about passing a short-term extension of the Aviation Innovation Reform and Reauthorization (AIRR) Act swirled around Capitol Hill this week. Although the Act passed out of committee in early February, the House has not made plans to consider the bill on the floor prior to its expiration on March 31.

This week, AGC of America President and CEO, Steve Sandherr joined other transportation leaders in a panel discussion at the Association of American State Highway and Transportation Officials (AASHTO) Washington Briefing to discuss the passage of the surface transportation reauthorization, the FAST Act.

AGC joined with nine other construction industry groups in a letter to Federal Highway Administrator Greg Nadeau asking the agency to complete action on a proposed rule clarifying the applicability of Buy America requirements for manufactured products that may contain steel elements and for incidental products such as nuts, bolts and washers. In December 2012, the agency issued guidance to its division offices clarifying that: