AGC Brings Reauthorization Recommendations to House T&I Committee

Vice President Paul Diederich represented AGC at a hearing of the House Transportation and Infrastructure Subcommittee which is soliciting ideas to include in the highway and transit authorization legislation. Diederich told the committee of the need for certainty in funding so that states can make decisions about long term highway and bridge improvements and contractors can have confidence in maintaining their work force and investing in new equipment. The testimony pointed out the need for increased revenue by making an analogy between postage stamps and the highway user fee. Diederich offered the following example: “When President Eisenhower signed the first highway bill in 1956, the user fee was 3 cents-per-gallon, and a first-class postage stamp was the same. Today the user fee stands at 18.4 cents-per-gallon, six times the rate in 1956. On the other hand, a first class stamp costs 44 cents, more than 14 times the rate in 1956. It is absolutely critical that we continue to invest in our nation’s infrastructure in order to maintain the integrity of what we have, as well as to improve in areas of need.” AGC’s testimony also pointed out that without increased revenue the highway program will have to be significantly reduced identifying programs and funding categories that will need to be cut if this becomes the new reality. Among the reforms to the program that were suggested to expedite project delivery were the following: delegation of environmental reviews to the states, concurrent decision making, and new authority over utilities to have their facilities moved in a timely fashion and quicker right of way acquisition. AGC also suggested some supplemental financing options that should be considered to help close the funding gap but cautioned that public private partnerships (PPPs), which have a place in financing transportation infrastructure projects are not a panacea and are a viable option on only a small percent of projects. Photo, above: AGC Vice President Paul Diederich discusses highway authorization legislation with Rep. Richard Hanna (R-N.Y.), Vice Chairman of the House T&I Subcommittee on Highways and Transit. Rep. Hanna was in the highway construction business before being elected to Congress last year.