The U.S. House of Representatives Thursday passed H.R. 915, a bill to reauthorize the Federal Aviation Administration (FAA) funding and safety oversight programs for four years with a total authorized spending level of $70 billion.  The bill includes a total of $16.2 billion for the Airport Improvement Program (AIP), the primary source of federal funding for airport capital projects.  The bill also increases the Passenger Facility Charge (PFC) on airline flights from $4.50 to $7.00, which is estimated to generate $1 billion per year in additional revenue.  These fees may be levied by airports to fund airport infrastructure investment.  AGC supported the PFC increase and will work to ensure that the provision is in the final bill.The most recent multi-year authorization of the FAA expired on September 30, 2007.  The programs have been operating under a series of short-term extensions since that time.  The Senate has not yet acted on reauthorization legislation this year. For more information, contact Brian Deery at deeryb@agc.org.

Transportation Secretary Ray LaHood invited a group of AGC contractors this week to meet with him to get a progress report on the impact of stimulus funding for transportation projects. The contractors have been awarded contracts for recovery act funded projects and reported that, as a result, they have been able to retain or hire workers. The contractors pointed out that prior to receiving stimulus funds their state DOTs were cutting back significantly on the number of projects going out to bid. AGC thanked Secretary LaHood for his leadership in getting transportation funds in the stimulus package but also pointed that major investments by contractors in new equipment and work force training is contingent on having a reliable long term market and urged the Administration to support increased revenue in a multi-year transportation reauthorization bill. The AGC members were in Washington as part of the Transportation Construction Coalition (TCC) Fly-In delivering the same message with their Senators and Representatives. In a nationally televised event at the National Press Club Secretary LaHood reported on his meeting with the AGC contractors. As an example of stimulus success LaHood included in the event AGC member Jim Andoga (Austin Bridge& Road) and one of his foreman Willie Fort whose job was retained due to the recovery act funds.

Over 450 highway contractors, suppliers and other interested parties participated in this week's Transportation Construction Coalition's (TCC) Fly-In urging Congress to enact a well funded, multi-year surface transportation authorization bill as quickly as possible.  The participants visited hundreds of congressional offices to lobby on the transportation reauthorization, the status of the highway trust fund, passage of the FAA authorization and reauthorization of the waste water and drinking water state revolving funds. Many AGC members also lobbied against the Employee Free Choice Act (or "card check") and the 3% withholding requirement.Transportation and Infrastructure Chairman Jim Oberstar (D-MN) addressed the group and reported that he intended to move a reauthorization bill in June with the intent of having a bill passed in the House before the summer recess. T&I Ranking Republican John Mica (FL) and House Resources Committee Chairman Nick Rahall (D-WVA) also addressed the TCC and pointed out their priorities in the legislation. All three leading decision makers addressed the reauthorization process and talked about a bill that could top $400 billion, focus on economic growth, congestion reduction and increased safety. The bill will likely also include comprehensive transportation planning and changes designed to speed up project delivery.

The House this week passed H.R. 915, a bill to reauthorize the Federal Aviation Administration (FAA) funding and safety oversight programs for four years with a total authorized spending level of $70 billion.  The bill includes a total of $16.2 billion for the Airport Improvement Program (AIP), the primary source of federal funding for airport capital projects.  The bill also allows airports to increase the Passenger Facility Charge (PFC) on airline flights from $4.50 to $7.00, which is estimated to generate $1billion per year in additional revenue for airport infrastructure investment. The most recent multi-year authorization of the FAA expired on September 30,2007.  The programs have been operating under a series of short-term extensions since that time.  The Senate has not yet acted on reauthorization legislation this year.

US DOT issued rules that will apply to the newly created discretionary grant program that was created in the economic recovery act. The "Transportation Investment Generating Economic Recovery (TIGER) Discretionary Grants" program is provides $1.5 billion in discretionary grants that are to be awarded through a competitive procedure. Surface transportation capital projects costing between $20 and $300 million are eligible. Selection criteria for projects includes potential long term outcomes including: improving conditions on existing facilities, economic competitiveness, livability, sustainability, safety. Job creation and economic stimulus will also be selection factors. Secondary criteria include innovation and partnership.  Up to $200 million of the grant funds can be allocated for the existing Transportation Infrastructure Financing and Innovation Program (TIFIA).

Senate Commerce Committee Chairman John D. Rockefeller (D-WVA) and Surface Transportation Subcommittee Chairman Frank Lautenberg (D-NJ) today introduced, "The Federal Surface Transportation Policy and Planning Act of 2009", legislation to establish a strategic, comprehensive national transportation policy.  The major goals of the bill are to:Reduce national per capita motor vehicle miles traveled on an annual basis;Reduce national motor vehicle-related fatalities by 50 percent by 2030;Reduce national surface transportation-generated carbon dioxide levels by 40 percent by 2030;Reduce national surface transportation delays per capita on an annual basis;Increase the percentage of system-critical surface transportation assets that are in a state of good repair by 20 percent by 2030;Increase the total usage of public transportation, intercity passenger rail services, and non-motorized transportation on an annual basis;Increase the proportion of national freight transportation provided by non-highway or multimodal services by 10 percent by 2020; andReduce passenger and freight transportation delays and congestion at international points of entry on an annual basis.A  SAFETEA-LU reauthorization bill has not yet been introduced in the Senate and is currently being drafted by Environment and Public Works Committee staff. The Senate Commerce Committee has jurisdiction over the safety issues in the reauthorization bill and therefore will have some influence over the final legislation and these provisions will be considered as part of the debate. In addition, Senator Lautenberg serves on the EPW Committee.

Fifteen AGC chapters from around the country applied to the U.S. Environmental Protection Agency (EPA) for more than $31 million in federal grant funds to help finance the cost of retrofitting off road diesel equipment to reduce air quality emissions. It is estimated that this funding would help to pay the cost of retrofitting approximately 1,000 diesel powered machines that are currently in use on AGC-members' jobsites.  These AGC Chapters - representing 9 out of 10 EPA Regions - have leveraged an additional $20 million plus in matching funds and "in-kind" contributions by pulling together an array of project partners.  This current grant competition resulted from funds included in the American Recovery and Reinvestment Act (ARRA) of 2009.  Approximately $156 million in ARRA funding is available for retrofits through EPA's National Clean Diesel Funding Assistance Program. These funds were not available directly to construction companies but were made available through "eligible entities" which included AGC chapters. EPA is currently reviewing the proposals and will announce "winners" over the next 30 days. EPA will hold another grant competition in August 2009 (EPA fiscal year 2009 appropriations), although for less money - around $60M. AGC has joined with other organizations urging President Obama and Congress to provide additional retrofit grants by fully funding the 2010 national diesel grant competition at $200 million.AGC Chapters Competing in Current EPA Diesel Retrofit Grant Competition: AGC of California, AGC of East Tennessee, AGC of Greater Milwaukee, AGC of Kentucky, AGC of New Hampshire, AGC of New Jersey, AGC of New York State, Associated Contractors of New Mexico, Associated General Contractors New Mexico Building Branch, Association of Oklahoma General Contractors, Colorado Contractors Association, Constructors Association of Western Pennsylvania, Inland Northwest Chapter-AGC, Las Vegas Chapter AGC, and Louisiana Associated General Contractors.

President Obama today released further details of his proposed budget for FY 2010. For the highway program, however, there is little new information. The budget requests $41.1 billion, just slightly higher than the $40.7 billion provided in FY 2009. This is the same amount that was included in the President's much briefer budget proposal released in February. (These figures do not include any of the transportation funding that resulted from the economic recovery act.) The detailed information that accompanies the request indicates that the Highway Trust Fund (HTF) will only be able to support a $5 billion funding level in 2010 under current conditions. The budget requests $36.1 billion in general fund money to ensure positive cash flow so that the program is able to continue functioning. The request also allows for the possibility that other legislation (presumably SAFETEA-LU reauthorization) could be enacted to positively impact the cash balance in the HTF.The Administration indicates that it is developing a comprehensive approach to transportation reauthorization and therefore no policy recommendations are included with the request. The background detail also points out that this funding level does not represent the Administration's recommended funding levels or a budgeting approach for the upcoming reauthorization. This approach is similar to how Congress handled the HTF situation in the budget resolution that was recently approved. The Congressional budget resolution assumes funding at the current baseline and allows for the possibility that new legislation will be enacted that will provide revenue necessary to increase the FY 2010 funding level.

House Transportation and Infrastructure Committee Chairman James Oberstar (D-MN) has announced that the bipartisan leadership of the committee has agreed on broad principles for SAFETEA-LU reauthorization legislation and that the highway subcommittee could begin marking up the legislation as soon as the week of May 18th.  The agreement covers concepts for restructuring the surface transportation programs but does not include funding levels or revenue sources. Program reforms would include consolidating many existing programs into four with several smaller programs left to stand alone. The plan also includes the creation within the US Department of Transportation of an Office of Intermodalism to develop a National Transportation Strategic Plan and to coordinate efforts by the different transportation modes to carry it out. Within the Federal Highway Administration a new Office for Expedited Project Delivery and an Office of Livability would be created.

House and Senate conferees came to a formal agreement on the FY 2010 Congressional budget resolution yesterday after negotiating a number of contentious provisions. The agreement adopts the more favorable House projections on available budgetary baseline for the highway and transit programs. This is an important initial step in the SAFETEA-LU reauthorization effort. The budget resolution sets the parameters governing spending decisions by Congress this year. It has particular impact on the highway and transit programs because SAFETEA-LU expires on September 30, 2009 and the amount of funding that can be included in the SAFETEA-LU reauthorization legislation is impacted by the budget resolution. Other provisions in the resolution are favorable to transportation as well, including a reserve fund provision allowing for additional highway and transit funding above the amount set in the resolution if new legislation is enacted that provides additional revenue. A proposal from the Obama Administration to use the resolution to change the budget treatment of the Highway Trust Fund was rejected. Final action on the compromise resolution is expected in both the House and Senate by the end of the week. AGC and our coalition partners - the Transportation Construction Coalition (TCC) and Americans for Transportation Mobility (ATM) -were in contact with House and Senate budget Committee members as well as other Senators and Representatives urging support of the House language.