Congress Looks to Learn Lessons from Canada’s P3 Experience
April 10th, 2014 | By: Infrastructure Report Card
This week the House Transportation and Infrastructure Committee looked to our northern neighbor Canada for advice on the federal role for public-private partnerships (P3) holding a panel hearing on the International Experience with Public-Private Partnerships, chaired by U.S. Rep. John Duncan (R-TN). Experts from the Canadian financing market were brought in to share their perspective on how their 200+ P3 projects have gone and what they consider to be the best practices of their federal and state framework. Kicking off the discussion, however, was Rep. John Delaney (MD-06) who is sponsoring a bipartisan bill that is gaining support – The Partnership to Build America Act (H.R. 2084) relating directly to P3s. The Partnership to Build America Act would create an infrastructure fund using repatriated corporate earnings and then utilize financing tools like public-private partnerships. The bill has gained the support of 60 House co-sponsors (30 Republicans and 30 Democrats) in the House and a companion, bipartisan Senate bill by Senators Michael Bennet (D-CO) and Roy Blunt (R-MO). If this were passed, it’s estimated that at least 25% of the projects financed with the new fund would use a P3 model. The panel of expert witnesses had many suggestions for what made the Canadian model successful for structuring P3s. However, it was Dr. Larry Blain, Chairman of the Board of Directors, Partnerships British Columbia, who suggested the following four benefits of performance-based infrastructure that should inform the U.S. structure:- Planning discipline and preparation. Performance-based infrastructure projects require comprehensive and long-term definition, costing and risk assessment. Many pitfalls are avoided before a shovel hits the ground.
- Certainty. Projects are on or under budget, and on or ahead of schedule, and key risks are assumed by the private partners. This is a key benefit of performance-based, financially-motivated contracting.
- Life-cycle asset management. In a performance-based approach the private partners have to maintain and rehabilitate the asset over 15-30 years, and they have to leave the asset in the required condition or face financial penalties.
- Efficiencies and innovation. Competition and the profit motive can lead to startling results, where the winning proposal provides solutions that the public owner never contemplated.
Tags: Canada, congress, Delaney, hearing, House, infrastructure, P3, public-private partnership
No Comments »
Half of States Have a Gas Tax Policy That's a Decade Old
April 3rd, 2014 | By: Infrastructure Report Card
The Institute on Taxation and Economic Policy (ITEP) released a new chart this week clearly showing how long it’s been since many states have changed their gas tax policy. In about half the states, it has been a decade or more since they’ve changed their gas tax policy in spite of the changing costs for materials, machines, or projects overall. While a minor policy like indexing or switching to a “variable-rate” tax may seem small, consider what we all learned from the hit movie Office Space – even a fraction of a penny can add up to a lot over time. If we’re going to keep up with America’s growth, we need to start counting our pennies a bit differently.
Here’s a few of the other key findings from this chart:
• Twenty-four states have gone a decade or more without an increase in their gas tax rate.
• Sixteen states have gone two decades or more without a gas tax increase.
• Seven states have not seen an increase in their gas tax rate since the 1980’s or earlier: Alaska, Virginia, Oklahoma, Iowa, Mississippi, South Carolina, and Tennessee.
• Among the thirty-two states levying a “fixed-rate” gas tax, the average length of time since the last gas tax increase is 17.2 years.
• Most states levying a more sustainable “variable-rate” gas tax, by contrast, have seen their gas tax rate rise some time in the last twelve months
Read the full ITEP report here.
Tags: infrastructure, policy, state, tax, transportation
No Comments »
New Report Card for Illinois' Infrastructure Shows Progress
April 2nd, 2014 | By: Infrastructure Report Card
The 2014 Report Card for Illinois’ Infrastructure was released today by the Illinois Sections of the American Society of Civil Engineers (ASCE) at the Illinois Statehouse.
A panel of professional civil engineers throughout the state graded each infrastructure category according to the following eight criteria: capacity, condition, funding, future need, operation and maintenance, public safety, resilience, and innovation. In 2010, the infrastructure grade for Illinois was a D+, reflecting delayed maintenance and underinvestment across most categories. In the 2014 Report Card for Illinois’ Infrastructure, the state’s infrastructure G.P.A. jumped to a C- showing the progress made with leadership and solid infrastructure programs.
Over the past four years since the 2010 Report Card for Illinois’ Infrastructure, leaders at the state level and in Illinois’ cities—large and small—have started to make some steps to rebuild their aging infrastructure. Programs such as CREATE have started unclogging rail and traffic bottlenecks and the Illinois Jobs Now! effort by the state provided $31B to start fixing Illinois’ biggest infrastructure problems. These efforts have paid off and both the Rail and Drinking Water grades have gone up since the last Report Card. Plans like Chicago’s commitment to replace and repair aging water pipes shows how “thinking big” can create even bigger results.
But while some of the grades have gone up, Illinois’ infrastructure isn’t a B student yet. Aging infrastructure and delayed maintenance have taken their toll. Illinois’s average bridge is 40 years old which is close to retirement age for a bridge, Chicago has been replacing water pipes put in when Ulysses Grant was President, and more and more people and goods spend time stuck in traffic on Illinois’ roads and rails.
Let’s Raise the Grades
Illinois’s infrastructure touches almost every aspect of citizens’ daily life—from your neighborhood roads, to your phone, to the community school, to the new south suburban airport. In 2014, we need to be visionary but realistic about our infrastructure. We need to continue replace our oldest infrastructure but also begin to think of our infrastructure as an entire system in need of sustainable funding. We have to make collaborative and smart decisions, while assuring that safety remains our top priority.
We can continue to tackle Illinois’ infrastructure needs by asking our leaders to take on these 3 Key Solutions that would help and raise Illinois’s grades:
1. State and local governments should work together to create smart, efficient transportation systems that meet the changing needs of Illinois’s communities. We cannot just repair the investments of the past, but we need to build systems for a 21st century Illinois.
2. Create sustainable funding to maintain all new and planned investments in Illinois’s water systems. Simply replacing old pipes with limited or no plans for operation and maintenance will only lead to similar problems for future generations.
3. Invest in networks that will lessen the costs of doing business in Illinois, including inland waterways, rail, and airports. As the economy continues to expand, Illinois needs world-class infrastructure to compete with other states for new businesses and manufacturing.
Read the full 2014 Report Card for Illinois’ Infrastructure here.
Tags: Illinois, infrastructure, report card, solutions, transit, transportation, vision, water
No Comments »
DOT Secretary Foxx Calls for New, Long-term Thinking on Infrastructure Investment at ASCE Legislative Fly-In
March 19th, 2014 | By: America's Infrastructure Report Card
Today, Department of Transportation Secretary Anthony Foxx spoke in front of over 200 civil engineers outside of Washington, D.C. Secretary Foxx spent his time urging ASCE members to tell their Members of Congress about America’s infrastructure needs and how the impending insolvency of the Highway Trust Fund will hurt our nation’s economy and global competitiveness. Secretary Foxx thanked the civil engineers for their work, saying “you are the ones that do the work in helping America’s infrastructure.” As part of ASCE’s ongoing efforts to advocate for sustainable, long-term infrastructure investment, the ASCE Legislative Fly-in allows civil engineers from across to country to come together and make their voice heard in Congress. Of note, the Secretary focused his time explaining the consequences of America’s infrastructure deficit. The Secretary mentioned that “there is massive uncertainty…about how we’re going to meet the growing needs of our country.” As ASCE members know all too well, this uncertainty hurts our ability to plan in the long-term and fix our pressing infrastructure needs. To conclude his remarks, the Secretary said that projects are already being put on hold due to the dwindling Highway Trust Fund. He argued that Congress must get off of its “extension addiction,” and create a long-term solution to boost our economy and leave future generations a better country. As ASCE members head to Capitol Hill, we are excited to have the Secretary as an ally in advocating for a long-term, sustainable solution to closing America’s infrastructure deficit.Tags: Anthony Foxx, highway trust fund, infrastructure
No Comments »
New Report Estimates $200B Needed to Fix America’s Schools
March 7th, 2014 | By: Infrastructure Report Card
After more than a decade, this week the National Center for Education Statistics (NCES) released an update to the Condition of America’s Public School Facilities report highlighting the condition of America’s school facilities. This report echoed the school facilities findings of the 2013 Report Card for America’s Infrastructure and showed the estimated need to bring school facilities into good repair was almost $200 billion. The report also estimates that on average about $4.5 million will need to be spent per school needing repairs. While the needs are significant, the findings also highlighted some positive changes – 60% of the sampled schools reported to have long-range educational facilities plans and 39% of schools have major renovations and modernization work planned in the next two years. While the study represents only a sample of America’s schools, it is encouraging to see the U.S. Department of Education release this much needed data on America’s schools.
Read the new report here.
Tags: condition, infrastructure, school facilities, schools
1 Comment »
Aging Hudson Symbolizes America’s Infrastructure
February 14th, 2014 | By: America's Infrastructure Report Card
Winding up the final leg of his cross country Dire States tour, Dan McNichol made a stop at ASCE headquarters in his vintage Hudson today. Dan’s been on the road since last October sharing the message of America’s aging infrastructure. His 1949 Hudson (nicknamed Mrs. Martin after the original owner) is the perfect metaphor to get the message across. Structurally solid, yet with rust and fading green paint along the edges showcasing years of neglect, you understand that this car has outlived its useful life. It’s functionally obsolete like many of the bridges and roads it’s traveled upon. “The people in Detroit, they get it. They’ve seen the decline.” Dan shared stories of some of the memorable moments along the way with the ASCE staff that came out to meet him. He told us of a small town in Black River Falls, Wisconsin, struggling with a dam that was leaking, driving the water level seriously low. “The town took responsibility for that dam. They taxed themselves and raised the $10 million they needed for the repair.” During his tour, Dan spoke with officials of state departments of transportation, chambers of commerce and many college and university community members. He quoted statistics from ASCE’s Report Card for America’s Infrastructure to help inform his audiences. Dan was inspired by the creativity and enthusiasm of the students, and touched to hear the memories of the old-timers who reminisced about the glory days of America’s infrastructure. He felt strong support to rebuild our infrastructure from everyone he met. Dan’s story is a great way to help promote the impact of civil engineering in our communities. To learn more about the lessons Dan learned along the way, watch his interview below. It’s the first segment in our new 12-part video series, ASCE Interchange. Watch for a new episode each month — see them at asce.org/interchange. ASCE Interchange is brought to you by Contech Engineered Solutions, a leading provider of site solutions for the civil engineering industry. Contech’s portfolio includes bridges, drainage erosion control, retaining wall, sanitary, stormwater and wastewater treatment products. For more info, visit www.ContechES.com or call 800-338-1122 For more tips promoting the Report Card, view the online outreach toolkit. Interested in doing more with the Report Card but want to speak with someone from the Infrastructure Initiatives team before you get started? Email ASCE or call 202-789-7850. Have you tapped into the collective memory in your community? Are there local events where you can help share the story of why we need to come together to restore our nation’s infrastructure? Is there a good symbol in your community you can build the story around?Tags: ASCE Interchange, Dire States, infrastructure, Report Card for America's Infrastructure
1 Comment »
This Week in Infrastructure: The Need for Funding
February 14th, 2014 | By: America's Infrastructure Report Card
Several states are responding to the impending reality that this fall the Highway Trust Fund “will have insufficient revenues to meet obligations” unless a sustainable revenue source is found. Among those voicing concerns is Tennessee. As a precaution, TDOT prepared two 2015 budgets: one with federal funding, budgeting $1.8 billion and another without, budgeting $900 million. Minnesota also grappled with the transportation funding gap through a hearing that included testimony from ASCE’s own Brian Pallasch, who spoke on the consequences of underinvestment. Delaware Gov. Markell proposed an increase to the gas tax that would be tied to inflation. Though it was met with criticism from the state legislature, this editorial aptly points out highways don’t pay for themselves. Idaho’s Transportation Department’s Scott Stokes warned that the state relies heavily on federal funding for its department’s budget. Stokes predicted “At current funding levels [bridges] will have to last 120 years, two to three times their expected life,” given the current funding trajectory. Michigan is facing a more immediate funding crisis, due to the frequent snowfall. To put it into perspective, snowplows were needed on the southwest part of the state’s roads for 67 straight days, a doubly costly endeavor because money is needed to fund the plowing and to repair the roads afterward. The Daily Iowan called to raise the state’s gas tax in an editorial, explaining the “tax would generate $230 million annually, money that can be used to substantially upgrade Iowa’s roadways and would close the state’s $215 million annual shortfall in road funds.” On the federal level, Ohio Reps. Tim Ryan and Dave Joyce, called upon their colleagues to revitalize infrastructure and create jobs in the process. The U.S. Senate Environment and Public Works Committee held a hearing Wednesday to consider the best funding options for the Highway Trust Fund. Sen. Boxer said her goal is to have a “five- or six-year bill.” This week demonstrates the need for a sustainable funding source is gaining attention. Now the next step is finding a solution and taking action.Tags: highway trust fund, Idaho, infrastructure, Iowa, Minnesota, Ohio, surface transportation, Tennessee, transportation
No Comments »
This Week in Infrastructure: What is the State of Our Union, Really?
February 2nd, 2014 | By: America's Infrastructure Report Card
The Super Bowl (or the first mass-transit bowl as we like to call it) wasn’t the only required TV viewing this week . The State of the Union drew more than 33 million viewers listening to President Obama’s agenda for the country. Here at ASCE, we were pleased that President Obama laid out goals of “rebuilding our roads, upgrading our ports, unclogging our commutes” and hope that Congress responds by finalizing WRRDA and passing a transportation bill. ENR has an excellent overview of the response from the major players of infrastructure. Looking locally, the Detroit Free Press chimed in with ways that a focus on infrastructure could help Michigan. Prior to his speech, our friend Rep. Blumenauer authored his thoughts Monday on how “If we do not act now to maintain and repair our infrastructure, we will face much higher costs in the future, not just for the country, but for families on a daily basis,” echoing ASCE’s concerns from our Failure to Act studies. It seems infrastructure investment was on everyone’s lips this week. The call for investing in infrastructure is timely for many reasons: First:
Beyond that, the recent chemical contamination of West Virginia’s water has led to a larger conversation about water quality and the infrastructure that delivers it and disposes of it.
Also this week, there was also some talk of the power grid’s vulnerabilities (which received a D+ in the 2013 Report Card for America’s Infrastructure). Even MetLife Stadium is taking precautions to ensure last year’s blackout is not repeated this Sunday.
Finally, we are going to keep praying for all of our friends in Atlanta. Certainly this was a horrific situation, and hopefully all of us can learn how to avoid such a thing in future.
So, what is the State of Our Union’s Infrastructure, really? I guess you could say we’re working on it.
Tags: congress, infrastructure, President Obama, Super Bowl, wastewater
No Comments »
Georgia's C Infrastructure
January 13th, 2014 | By: Infrastructure Report Card
Georgia’s infrastructure has failed to improve over the last five years. In a new report, titled the 2014 Report Card for Georgia’s Infrastructure, the Georgia Section of the American Society of Civil Engineers (ASCE) awarded the state’s infrastructure a “C,” a grade unchanged from their 2009 Report Card. The lowest grade awarded was a “D-”, which went to the state’s dams and transit systems. The Report Card’s highest grade, a “B,” was given to Georgia’s energy and rail systems. Georgia’s growing population combined with cutbacks in infrastructure funding resulted in many of the low grades.
Specifically, the Report Card finds that Georgia is lagging in sustainable investment, including:
- Georgia ranks 49th in the nation in per capita transportation funding.
- Georgia is among the lowest in the country in transit spending per resident. According to the American Public Transportation Association’s 2010 Survey of State Funding for Public Transportation, Georgia spent just $0.63 per person in 2008. In comparison, New Jersey spent $119.52, Illinois spent $40.43, and North Carolina spent $7.94 per person in the same year.
- Georgia’s Safe Dams Program has faced over a 50% cut in staff since 2003, with each safety official now expected to oversee over 1,000 dams, or five times the national average.
- MARTA is the largest transit agency in the country to not receive state funding support for operations
- Georgia’s state motor fuel excise tax—which funds surface transportation projects—is one of the lowest in the United States
Tags: dams, grades, infrastructure, report card, state, transit, transportation, water
1 Comment »
Georgia's Infrastructure Is On Our Mind
January 8th, 2014 | By: Infrastructure Report Card
The 2014 Report Card for Georgia’s Infrastructure will be released next Monday, January 13th, in the South Wing of the State Capitol on the very first day day of Georgia’s legislative session. Highlighting the infrastructure needs across the state, the Report Card will provide a new GPA for Georgia’s infrastructure as well as new grades for specific areas — Aviation, Bridges, Dams, Drinking Water, Energy, Parks and Recreation, Ports (new), Rail (new), Roads, School Facilities, Solid Waste, Stormwater, Transit, and Wastewater.
Check back here on the 13th to find out what grades Georgia earned in the 2014 Report Card for Georgia’s Infrastructure! If you’re a supporter of Georgia’s infrastructure and in the Atlanta area, we invite you to join us for the Report Card release event:
WHAT: News conference for the release of the 2014 Report Card for Georgia’s Infrastructure
WHO: American Society of Civil Engineers, Georgia Section
Speakers: Georgia State Representative Ed Setzler
Kat Gurd, President of the Georgia Section of ASCE
Daniel Agramonte, Co-Chair of Report Card Committee
WHEN: Monday, January 13, 2014, 11:30 AM
WHERE: State Capitol South Wing
Georgia State Capitol Building
206 Washington St SW
Atlanta, Georgia 30334
WHY: Infrastructure has a direct impact on our lives every day—from the water we drink, to the schools our children attend and to the roads and rails we travel. Infrastructure is vital to our economy, security, recreation and safety. Will Georgia’s infrastructure systems make the grade?
Tags: aviation, dams, Georgia, infrastructure, ports, roads, state, state report card, transit, water
No Comments »
