The House rules package adopted this week for the 112th Congress includes a provision that has the potential to dramatically alter the process Congress uses to provide funding for highway and transit programs.

The House Republican Conference met Tuesday to consider a rules package that will govern how issues can be addressed in the 112th Congress.

The House Republican Conference will meet today at 4:00 p.m. to consider a rules package that will govern how issues can be addressed in the 112th Congress. Among the proposed rules is a repeal of the guaranteed funding requirement for annual federal highway investment and the House point of order that enforces the guarantee. These guaranteed investment levels are based on user fee revenue flowing into the Highway Trust Fund.

Ranking Member on the House Transportation and Infrastructure Committee John Mica (R-Fla.) released a report this week titled Sitting on Our Assets.  According to Ranking Member Mica, the purpose of the report is to "outline and analyze the failure of certain federal agencies to properly utilize or manage assets under their respective control." The report, which focuses on agencies and departments within the jurisdiction of the House Transportation and Infrastructure Committee, also provides recommendation on how cost savings can be achieved in the respective departments and agencies.  A copy of the report is available here.The report recommends a better utilization of highway assets by giving states and local governments maximum flexibility to develop "innovative solutions" to funding transportation infrastructure. In addition, Ranking Member Mica calls for inclusion of a "437-Day Plan" for transportation projects, modeled after the expedited replacement of the I-35W Bridge, with the hope of dramatically lowering costs.  Other areas in the report of interest to AGC members include: expediting and streamlining the U.S. Army Corps of Engineers (USACE) wetlands permitting process; increasing funding for the Corps to ensure efficient delivery of critical waterways infrastructure projects to the nation; and encouraging GSA to use its statutory authority to take the necessary steps to modernize and update its real estate portfolio.

The Water Resources Development Act of 2010 was introduced July 28, 2010 by Rep. James L. Oberstar (D-Minn.), Chairman of the Committee on Transportation and Infrastructure, and Rep. Eddie Bernice Johnson (D-Texas), Chairwoman of the Subcommittee on Water Resources and Environment. The legislation authorizes approximately $6 billion for critical navigation, flood damage reduction, and environmental restoration projects, as well as studies carried out by the Army Corps of Engineers.Among the projects included in the legislation are three concerning storm mitigation and ecosystem restoration, 31 for aquatic ecosystem restoration, 31 small flood damage reduction projects and 160 studies for potential future water projects, according to a news release.The package is much smaller than the WRDA 2007 legislation, which totaled $23 billion, however that bill was nearly eight years late. Another factor impacting the total authorized amount is the fact that the package does not include Republican project designations at this time. Other language in the bill would clarify the way expenditures are credited, increase transparency of reviews and improve mitigation of environmental impacts associated with Army Corps projects. AGC notes three provisions in the bill. The first, which causes some concern, would classify Operations and Maintenance work as "inherently governmental." This could put this type of work, which is normally done by contractors, in-house within the Corps. A second provision that will require further examination would increase opportunities for the Corps to facilitate watershed planning and carry out watershed and river basin assessments.Another provision, one that AGC strongly advocated for, would create a "firewall" to ensure all funds contributed to the Harbor Maintenance Trust Fund will be spent out on an annual basis. This will ensure as much as a 50 percent increase in funding for projects financed by the Fund.AGC was a key leader in getting the WRDA 2007 bill passed and we are working to provide a full analysis of the complete bill as soon as possible.To view a copy of the bill, click here. To view a summary of the bill click here. To view a copy of Chairman Oberstar's statement of introduction, click here. To view AGC's policy on WRDA 2010 passage, click here.

As reported in The Hill, AGC has repeatedly urged Congress and the Administration to act on a range of infrastructure bills, given that the stimulus is running out but private sector demand has yet to pick up. Several key pieces of infrastructure legislation remain is Congressional limbo, including authorizations for the surface transportation program, airport construction, and the drinking water and wastewater SRFs. All are in various states of completion, but given the relatively few remaining legislative days, action now is critical to the long-term health of the construction industry and the economy.Read more in the article from The Hill.

Following months of AGC and other transportation construction stakeholders successfully lobbying Congress and the administration to restore $8.7 billion of rescinded highway contract authority, the House of Representatives is poised to take $2 billion of that unobligated money away to offset a $10 billion appropriation to preserve teachers' jobs included in the House supplemental appropriations bill.  This provision will not impact overall spending but may have an impact on what types of projects states can fund in the future.The intent of the bill is to provide funding for U.S. troops; however, the House Appropriations Committee added additional funding that required an offset of $11.7 billion.  As co-chair of the Transportation Construction Coalition, AGC sent a letter to Congress opposing the House supplemental proposal, and argued that the rescission creates further uncertainty in an already-suffering transportation construction marketplace. AGC also argued that it raises questions about future federal transportation investment commitments.  A copy of the letter can be found here.For more information, contact Sean O'Neill at (202) 547-8892 or oneills@agc.org.

Movement on a top AGC priority occurred this week as Senate Environment and Public Works Chairwoman Barbara Boxer (D-Calif.) held a hearing a new Water Resources Development Act (WRDA) on May 6, 2011. AGC Past Federal and Heavy Construction Division Chairman Mitch White of Manson Construction Co. in Long Beach, California, called on Congress to pass a new WRDA bill on schedule to meet the nation's economic, safety and transportation needs.WRDA reaffirms the government's pledge to authorize, modify, and improve projects, programs, and policies protecting the nation from floods and keeping our waterways open to navigation. Regular authorizations of water resources development projects fulfill these important missions. AGC's testimony stressed that waterways programs foster economic development, facilitate trade and commerce, aid international competitiveness, stimulate employment, provide water recreation opportunities, enhance agricultural and industrial productivity, and augment our national defense. In addition, a new WRDA bill would serve as a key component of turning around the severe unemployment in the construction industry, which is currently hovering at 25 percent.AGC is continuing to work with water resources and infrastructure investment champions in Congress to support passage of the legislation in the 111th Congress.  House Transportation and Infrastructure Committee Chairman James Oberstar (D-Minn.) has also stated his commitment to passing this important water infrastructure authorization in a timely manner.

President Obama today signed the "jobs" legislation, which the Senate approved yesterday thanks to AGC's continued advocacy and an effective grassroots lobbying effort. The bill, known as the "HIRE Act," includes the following provisions of importance to the highway construction industry: Extends highway program authorization through December 31, 2010 at current funding levels. Provides additional revenue to keep the Highway Trust Fund solvent through the first quarter of 2011 by restoring $19.5 billion in interest payments foregone on the HTF's previous cash balances. Restores $12 billion in highway spending authority that was cut on September 30, 2009 due to an $8.7 billion budget rescission in SAFETEA-LU and a subsequent rescission of $3.2 billion. Authorizes payment of interest on future HTF balances. Alters the way in which long-standing fuel tax exemptions provided to state and local governments are accounted for, which are projected to increase HTF balances by about $1.7 billion annually, for a total of $9.8 billion over six years. Provides $4.6 billion in additional authority for Build America Bonds which have been used extensively by state and local governments to fund infrastructure projects, including highway and bridge projects. Extends section 179 expensing thresholds so that taxpayers may elect to write-off up to $250,000 of certain capital expenditures in 2010 in lieu of depreciating those costs over time.For more information, contact Brian Deery at (703) 837-5319 or deeryb@agc.org.

In a week that saw the temporary shutdown of the Federal Highway Program and the president signing into law a 30-day extension of SAFETEA-LU, the House today passed by a vote of 217-201 an amended version of the Senate "jobs" bill, which among other things would extend SAFETEA-LU  through 2010 and provide a $19.5 billion transfer from the General Fund of the U.S. Treasury to the Highway Trust Fund. The other provisions in the Senate bill can be found here.  The House bill was amended to make it deficit-neutral and to address concerns of minority-owned business in order for Democratic leadership to have enough support to pass the bill.The fate of the bill, the year-long extension and the Highway Trust Fund transfer once again rests in the hands of the Senate, which passed their bill by a vote of 70-28 on February 24.  Due to the Senate schedule it is not clear when the amended House bill will be taken up for consideration by the Senate.  In the absence of a multi-year surface transportation reauthorization bill, AGC will once again work with Senate leadership to ensure passage of the long term extension and the Highway Trust Fund transfer in order to provide continuity in the programs and certainty for our members through the end of the year.