#InfrastructureMatters Hits the Hill
May 18th, 2016 | By: Becky Moylan
The message that #InfrastructureMatters made its way to Capitol Hill today, as American business, labor, citizen groups, and more met with members of Congress and their staffs. Mid-day, the group took a break from Infrastructure Week Advocacy Day meetings to come together at a congressional briefing. Building America’s Future Co-Chair Gov. Ed Rendell (D-PA) started the day by pointing out the high percentage of state initiatives to improve infrastructure that are approved by voters. The briefing included remarks from all four of Infrastructure Week’s Congressional Co-Chairs: Sen. Ben Cardin (D-MD), Sen. Shelly Moore Capito (R-WV), Rep. Garett Graves (R-LA), and Rep. Sean Patrick Maloney (D-NY). Each Member of Congress took a few minutes to talk about why #InfrastructureMatters and highlighted the important work Infrastructure Week and its participants are doing. Sen. Cardin talked about the importance of the issue, and shared his personal experience of the commute from Baltimore to D.C. being far longer than it should be—typically over 2 hours, rather than 45 minutes. Sen. Capito talked about a successful grassroots campaign in her state launched by a local radio personality, known as #FTDR—fix the (censored) roads. Rep. Graves trumpeted how preventative investment is more cost effective than emergency repairs, both from a safety and economic standpoint. And Rep. Maloney shared the policy idea of increasing our investment in infrastructure to align with 5% of our nation’s GDP. After Rep. Maloney set the stage well, ASCE’s Casey Dinges presented the new Failure to Act study, highlighting that poor infrastructure is costing every American household for $9 a day, and posing the question (and solution) “Would you be willing to pay $3 a day per family for better infrastructure?,” as we could close the investment gap in 10 years if we invested $3 more a day per family. Members from the business and labor communities, including Liuna, Case, and AECOM, also shared perspectives on the importance on infrastructure investment. A wide variety of interests were represented in the room, but as Infrastructure Week more broadly showcases, all these voices strongly agree on the need to rebuild and renew our infrastructure because it matters to our economy and quality of life.White House Summit on Resilience
May 12th, 2016 | By: Infrastructure Report Card
An important aspect of rebuilding the nation’s infrastructure is resiliency. While Congress has been hit or miss on infrastructure issues this Congress, yes on Surface Transportation, not so much on resilience and building sciences, the White House has recently begun to place more emphasis on resiliency. Highlights of the White House emphasis include a February 2nd White House Summit on Earthquake Resilience and the related Executive Order entitled Establishing a Federal Earthquake Risk Management Standard for Federal buildings; the Presidential Proclamation establishing May as Building Safety Month; and this week’s Conference on Resilient Building Codes. While these efforts will not have the impact of a major new initiative or Congressional approved programs, and comes with no real additional funding, these events do serve to use the White House’s “bully pulpit” to highlight the increasing natural hazards risks and the importance of resilience and buildings codes in mitigating these risk. The development of standards, model building codes, and the local and state adoption as the building code are largely outside of Federal authority. The Federal government does have a role, as funder of research, as coordinator of technology transfer and knowledge dissemination, and as a cheerleader in rallying the many players involved. The American Society of Civil Engineers is supportive of the White House effort and played a major role this week’s conference, which focused on the critical role codes and standards play in achieving a resilient nation. ASCE joined with other groups representing standard developers, code officials, scientist, insurers, local governments, federal agencies and industries, to share insights, recent successes in developing resilient building codes, and perhaps more challenging, encourage their adoption nationwide. The Society had two representatives at this week’s event: Richard Wright, Ph.D, NAE, Dist.M.ASCE, Chair of the ASCE Committee on Adaption to a Changing Climate, who participated in a panel addressing Climate Change and the Implications for Buildings and James Rossberg, PE, F.SEI, M.ASCE, ASCE’s Managing Director of Engineering Programs, who joined a panel on Resilience in the Codes and Standards Community. Watch the video of the conference here. In the absence of Congressional action on such pending issues as the reauthorization of the National Earthquake Hazards Reduction Program (NEHRP), reauthorization of the Federal Emergency Management Agency (FEMA) and the passage the National Mitigation Investment Act, cheerleading from the White House is, at least, trying to push the nation in the right direction.Senate Takes Turn Preparing for New Water Resources Bill
February 11th, 2016 | By: Whitford Remer
Just a week after the House held a discussion on what a new Water Resources Develop Act (WRDA) should look like, the Senate Committee on Environment and Public Works held a hearing Wednesday to kick off that chambers work on the legislation. Opting for a more formal setting than the House roundtable approach, the Senate held a full Committee hearing, giving stakeholders an opportunity to express requests for the bill on the record. Norma Jean Mattei, President-Elect of the American Society of Civil Engineers provided testimony on the state of the nation’s water infrastructure, using the 2013 Report Card for America’s Infrastructure. Representatives from the Port of Tusla, Marathon Petroleum Corporation, Nucor Corporation, and North Central States Regional Council of Carpenters also testified. Dr. Mattei testified that the Report Card grades for water resources were so bad that failing to address problem could cost 800,000 American jobs by 2020. The grades (Inland Waters Ways D-, Dams D, Levees D-, and Ports C) were so bad that Senator Barbra Boxer (D-CA) asked to enter the entire report card into the Congressional record. Nearly every Senator on the Committee referenced the Report Card grades, with Senator Kristen Gillibrand (D-NY) even noting her state’s own report card, Report Card for New York’s Infrastructure, released in 2015 didn’t fare much better. Airing out the poor grades teed up a more serious conversation on how to address the nation’s aging infrastructure. Nothing was left off the table: aging locks causing multimillion dollar delays at ports, the drinking water crisis in Flint, Michigan, and high hazard deficient dams across the country were all brought up as possible issues to address in the new bill. Lawmakers have promised to get a bill through this Congress, retuning the legislation to its previous two year cycle. All the witnesses agreed that a two-year cycle provides certainty to project sponsors, keeps the price of the bill manageable and helps reduce the backlog of Army Corps projects. Keeping the bill bipartisan and getting enough momentum in an election year will be the challenge moving forward. The Committee will be on a tight deadline to mark-up and pass a bill with dwindling Congressional calendar work days.Infrastructure in the News: Big Week for Aviation and Water
February 5th, 2016 | By: Olivia Wolfertz
This week improving our nation’s aviation and water infrastructure were the focus of conversation on Capitol Hill. With a new aviation reform bill, the Aviation Innovation, Reform and Reauthorization (AIRR) Act, proposed to Congress, the nation’s aviation needs are receiving some attention that’s long overdue. According to the bill’s author, Rep. Bill Shuster, two-thirds of our 20 largest airport hubs experience delays, and the economic costs of congestion and delays, including the impacts on passengers, top $30 billion per year. The AIRR Act would reauthorize the nation’s civil aviation programs, including air traffic control and infrastructure funding. Of most interest to ASCE, the bill increases authorized funding for the Airport Improvement Program (AIP) to $3.8 billion by 2022. This would be the first funding growth for the AIP in over a decade, which is much needed to improve the country’s “D” grade for aviation. On a different front, Representatives Earl Blumenauer (D-OR), John Duncan (R-TN) and Richard Hanna (R-NY) introduced the bipartisan Water Investment Trust Fund Act, which would provide funding to replace, repair and rehabilitate critical wastewater and drinking water infrastructure. ASCE will be working with member of Congress to advance this legislation. As our infrastructure ages, we need to continue to invest in it. Therefore, it is critical that elected leaders at the federal, state and local levels continue to prioritize investment into the backbone of our economy.FAST Act Summary Part Four: Rail
December 16th, 2015 | By: America's Infrastructure Report Card
This is the fourth and final in a series of summaries posted over the past two weeks on the contents of the newly-passed five-year federal surface transportation authorization law, Fixing America’s Surface Transportation (FAST) Act. The first part explored the law’s funding and the future fiscal health of the Highway Trust Fund. The second part described the highway program elements of the law. The third summary described public transportation or transit policy and this final section focuses on the funding and policy changes to federal passenger rail programs. FUNDING The FAST Act provides $305 billion for highway, transit and railway programs. For rail, it would continue to provide much-needed capital investment for the nation’s passenger rail network while implementing bipartisan reforms aimed at increasing performance and accountability of the nation’s rail operator for intercity passenger service, Amtrak. The law authorizes $10.4 billion for passenger rail programs over the next five years. This authorization does not guarantee funding as this investment must actually be provided annually by Congress via the traditional appropriations process. Amtrak would receive modest annual funding increases of, on average, $90 million which amounts to a total funding level of $8.1 billion over five years. However, a key change in Amtrak budgeting is that funding will be separated between investments that can be spent on the (profitable) Northeast Corridor (NEC) and the (unprofitable) remaining National Network (NN). Over the life of the bill, $2.6 billion will be spent on the NEC while $5.5 billion will be spent on the NN. Remaining Federal Railroad Administration (FRA) grant programs would receive $2.2 billion over the next five years. POLICY PROVISIONS The FAST Act also:- Requires Amtrak to submit profit and loss statements for both the NEC and NN accounts. This will help ensure that adequate investment is being provided for capital infrastructure on the NEC and further seek to end the NEC “cross-subsidy” of long distance, state-supported routes;
- Improves the Railroad Rehabilitation and Improvement Financing (RRIF) program, which provides long-term, low-interest loans for railroad-related improvements, by adding process improvements like approval deadlines to add clarity and reliability for potential borrowers;
- Requires infrastructure owners like Amtrak and states to annually produce five-year asset management plans and business line plans based on current authorization levels. There shall be four business line plans: NEC; state-supported routes; long-distance routes; and ancillary services;
- Provides further instruction to the NEC Operating and Advisory Commission and the Amtrak board of directors to produce a more sustainable, long-term investment and operating plan for both the NEC and the national network; and
- Establishes an independent study of methodologies for determining the cost-benefit and value of routes and services which will be an important process for determining the future scope of the national route network and the offering of intercity passenger rail service. This report will be provided to Congress in 2016 and the Amtrak board of directors will consider the recommendations within 90 days of its release.
FAST Act Summary Part Three: Transit
December 14th, 2015 | By: America's Infrastructure Report Card
This is the third in a series of summaries over the next few weeks on the contents of the newly-passed five-year federal surface transportation authorization law, Fixing America’s Surface Transportation (FAST) Act. The first part explored the law’s funding and the future fiscal health of the Highway Trust Fund. The second part described the highway program elements of the law. The final forthcoming section will focus on the policy changes to federal passenger rail programs. The FAST Act provides $305 billion for highway, transit and railway programs. Of that, $60 billion is for transit, which represents an 18% increase in public transportation funding over the law’s five-year duration. Most of the percentage bump in transit investment will occur in the first year with the program seeing an immediate nine percent increase. Here is what the transit investment levels look like over the life of the bill:- (Pre-FAST Act) Fiscal Year (FY) 2015: $10.7 billion
- (Post-FAST Act) FY16: $11.8 billion
- FY17: $12 billion
- FY18: $12.2 billion
- FY19: $12.4 billion
- FY20: $12.6 billion
- Creates a new Bus and Bus Facility Discretionary grant program to address capital investment. This program is funded at $268 million in the first year, rising to $344 million in the last year. The program also includes a 10 percent rural set-aside and a cap that no more than 10 percent of all grant funds can be given to a single grantee;
- Creates an expedited project delivery pilot program in the Capital Investment Grant program for projects with less than 25 percent federal funding and those which are supported through public-private partnerships;
- Focuses on the need to address resilience in state and local planning by urging a reduction on the natural disaster vulnerability of existing transportation infrastructure;
- Directs USDOT to review the safety standards and protocols used in public transportation. The Secretary will then evaluate the need to establish additional federal minimum public transit safety standards; and
- Makes $199 million available to assist in funding the installation of Positive Train Control (PTC) safety technology.
FAST Act Summary Part Two: Highways
December 9th, 2015 | By: America's Infrastructure Report Card
This is the second in a series of summaries over the next few weeks on the contents of the newly-passed five-year federal surface transportation authorization law, Fixing America’s Surface Transportation (FAST) Act. The first part explored the law’s funding and the future fiscal health of the Highway Trust Fund. The next sections will focus on the policy changes to transit and federal passenger rail programs. The FAST Act provides $305 billion for highway, transit and railway programs. Of that, $233 billion is for highways, which represents a 15% increase in road and bridge funding over the law’s five-year duration. Most of the percentage bump in highway investment will occur in the first year with the program seeing an immediate five-percent increase. Below are the highway investment funding levels over the life of the bill:- (Pre-FAST Act) Fiscal Year (FY) 2015: $40.3 billion
- (Post-FAST Act) FY16: $42.4 billion
- FY17: $43.3 billion
- FY18: $44.2 billion
- FY19: $45.3 billion
- FY20: $46.4 billion
FAST Act Summary Part One: The Funding
December 6th, 2015 | By: America's Infrastructure Report Card
This is the first in a series of summaries over the next few weeks on the contents of the newly-passed five-year federal surface transportation authorization law, Fixing America’s Surface Transportation (FAST) Act. The next sections will focus on the policy changes to highways, transit and federal passenger rail programs. The backbone of federal transportation funding is the motor fuels tax, and those revenues are deposited in the protected Highway Trust Fund (HTF). Taxes on gasoline and diesel fuels for cars, trucks and motorcycles, have been levied for many decades, however the last time that the tax rate was raised was in 1993 — over 20 years ago. Since that time, federal spending on highways and transit programs has risen and the purchasing power of those dollars, as a result of rising construction and materials costs, has gone down. While the newly-passed five-year federal surface transportation authorization law, Fixing America’s Surface Transportation (FAST) Act, increased investment, it did not pay for these funding increases through a gas tax hike. Instead, the law relied on a variety of items unrelated to transportation, specifically two large offsets dealing with the Federal Reserve (Fed). OFFSETS The first Fed offset is one that was heavily opposed by banks. The provision would reduce what was a six percent annual dividend paid to banks on Fed stock that they bought when becoming members of the Federal Reserve system. The reduction would impact banks with over $10 billion in assets and cut the stock dividend pay-out to match the interest rate of the highest-yield 10-year Treasury note, which would likely be around two percent. This provision raises nearly $6 billion for the FAST Act. The second Fed-related offset is the largest one contained in the FAST Act and applies to the Feds capital surplus accounts. The Fed regional banks maintain various amounts of surplus cash, which added together amounts to $29 billion. The FAST Act takes $19 billion from this account and leaves a $10 billion surplus cushion at the Fed. However, due to Congressional budget scoring procedures the amount of money actually raised for FAST Act by doing this $19 billion draw-down is about $53 billion because Congress adds up all of the money that would have been in the account over a ten-year budget horizon. Added together, these and other offsets amount to around $70 billion in new money for the HTF over the five-year life of the FAST Act. This means that at the end of the FAST Act the HTF will have received over $140 billion in general fund transfer since it began experiencing fiscal trouble in 2008. This also means that by the end of the FAST Act gas taxes and other transportation-related revenues will only be providing half of the dollars necessary to support investment levels, which could complicate the policy process in numerous untold ways. For example, members of Congress may then ask: “Why should this program only fund roads and transit systems (which has historically been the case) if roads users and transit riders are no longer the funding basis of a large amount of the program’s revenues?” FUNDING LEVELS The FAST Act provides $305 billion for highway, transit and railway programs. Of that, $233 billion is for highways, $49 billion is for transit and $10 billion is dedicated to federal passenger rail. By the end of the bill’s five-year duration, highway investment would rise by 15%, transit funding would grow by nearly 18%, and federal passenger rail investment would remain flat. Most of the percentage bump in investment will increase immediately with highways seeing a five percent jump and transit receiving a nine percent jump in the first year. The funding then sees relatively flat, two percent annual growth. The bill actually provides higher levels of funding than the Senate-passed DRIVE Act would have, by over $680 million cumulative over the life of the bill. The bill also contains a HTF contract authority rescission of $7.5 billion at the end of the bill (September 30, 2020). This rescission would mean that states will have to return a certain amount of unobligated highway contract authority to FHWA. It is likely that states will soon plan their programs accordingly to be able to minimize the impact of this final-year budget cut. Rescissions have become common in surface transportation authorization bills as a way to bring down spending levels at the end of the law, which helps reduce the overall cost of the program for Congressional budget scoring purposes. There will likely be an effort in 2020 to eliminate or delay the implementation of the rescission. The last rescission to take effect was for $8.7 billion in 2009. Here are some funding highlights for highway and transit programs: HIGHWAYS- National Highway Performance Program: annual increases of nearly $500 million;
- Surface Transportation Program: first-year increase of $1 billion and nearly $200 million on top of that annually thereafter;
- Highway Safety Improvement Program: slight increase of $50 million annually;
- Congestion Mitigation & Air Quality Program: $50 million increase in the first-year and slight increase thereafter;
- TIFIA Program: heavy annual reduction from $1 billion per year to $275 million – $300 million annually throughout the bill;
- Highway Research & Development Program: slight increase, however new eligibilities added:
- $15 million annual Surface Transportation Funding Alternatives Studies program; and
- $10 million annual Performance Management Data Support program.
- (NEW) National Highway Freight Program: approximately $1.2 billion annually; and
- (NEW) Nationally-Significant Freight & Highways Projects Program: approximately $900 million annually.
- Formula and Bus Grants: $800 million increase in the first year and $200 million on top of that annually thereafter. Within that:
- $90 million annual increase for Urbanized Area Formula Grants;
- (NEW) $28 million for Research & Development Demonstration and Deployment grant (existing FTA R&D program reduced by $50 million annually);
- State of Good Repair: first-year $350 million increase and $40 million on top of that annual increase thereafter;
- (NEW) Bus and Bus Facility Discretionary program: approximately $300 million annually; and
- (NEW) Fast Growth and High Density program: approximately $550 million annually.
- Capital Investment Grants: Initial $400 million funding increase which sustains for life of the bill; and
- Positive Train Control Grants: $200 million provided in fiscal year 2017.
Infrastructure in the News: Infrastructure on the FAST track to improvement
December 4th, 2015 | By: Olivia Wolfertz
The bipartisan Congressional approval of the FAST Act (Fixing America’s Surface Transportation) and the release of Hilary Clinton’s infrastructure proposal make this week a busy one indeed. After numerous short-term transportation bill patches and long hours of negotiating, Congress has finally approved a five-year, $305 billion highway, transit and railway authorization bill that President Obama is expected to sign today. The FAST Act reaches beyond funding highways, as it also provides for our nation’s bridges, transit, rail lines, freight and ports. The bill also includes the first grant program guaranteeing financing for large-scale freight projects that could help loosen a freight bottleneck in Chicago or construct a rail-freight tunnel in New York Harbor. American Association of Port Authorities (AAPA) President and CEO Kurt Nangle said he is pleased by “the broad eligibility of seaports for infrastructure grants and other financing in this bill,” and was encouraged that the FAST Act recognizes the importance of seaports and freight network to the nation’s economy, job creation and international competitiveness. “For the first time we have dedicated funding for multimodal freight projects,” said Nangle. Many states are expressing their excitement to be able to start funding projects with the FAST Act’s provision. Pennsylvania is planning to fund much-needed bridge repairs, counties in Florida are planning to complete numerous road projects, and Nebraska will now be able to tend to hundreds of bridges and roads that need repairs. In addition to the FAST Act, Hilary Clinton also released her proposal for infrastructure spending, calling for $275 billion in new spending on roads, bridges, rails, airports and other sectors. Because our nation’s infrastructure investment needs are so high, the Clinton proposal is a promising step in the right direction. ASCE is pleased that Congress has agreed on a long-term surface transportation bill that will provide our nation with the increased funding we need to invest in our infrastructure.
