Alabama’s Infrastructure Grades Are In
December 10th, 2015 | By: Becky Moylan
The inaugural Report Card for Alabama’s Infrastructure, released today, reveals that Alabama’s aging infrastructure needs attention, especially its dams. As the only state without a dam safety program, Alabama does not have a complete inventory of all the dams in the state. Without this, Alabama is unaware of its dam safety risk. At the last survey in the 1980s, 147 high hazard dams were found and do not have Emergency Action Plans. Because of the unknowns surrounding Alabama’s dams, the Report Card graded it an “Incomplete,” signified by a question mark to demonstrate the uncertainty caused by of a lack of inventory and dam safety program.
With a cumulative grade point average of “C-,”Alabama’s infrastructure is only as strong as its weakest link. All of the highest grades are linked to the lowest grades in the report, as infrastructure works as a system. Plans and funding to address the state’s aging infrastructure assets fall significantly short of needs. Of note:
- Only an estimated 2% of all known dams in Alabama are being inspected for safety, maintained, and have emergency action plans in place for use in the case of an incident or failure. Without a dam safety program, communities that live under dams may not be aware of their risk, and emergency action plans for high hazard dams may not be in place to mitigate property damage and save lives in the case of a breach or failure.
- The majority of the state’s drinking water infrastructure was installed from the 1960s to the 1980s and operating beyond their useful design life.
- 1 in 3 wastewater utility providers statewide report having inadequate rate structures to cover normal operating expenses.
- Septic systems are commonly used in more rural parts of Alabama; 25% of the estimated 850,000 on-site septic systems are in failing or failed condition and could be polluting the community’s groundwater.
- Alabama has 1,388 structurally deficient bridges, ranking 15th most in the country, with many of these being bridges funded and maintained locally.
- Nearly 50% of interstate and state highways are in fair, poor, or very poor condition. Driving on rough and congested roads costs the average Alabama driver at least $300 a year in extra vehicle repairs.
- Much of the inland waterway lock and dam infrastructure within the state is breaking down and has passed the 50 year design service life or is approaching it. As an example, Coffeeville Lock and Dam has a throughput of 10 million tons in spite of vessel delay rates and durations in excess of 90% and 150 hours.
- Finish the dams inventory and pass legislation to create a dam safety program, establish emergency action plans, and use periodic safety inspections to keep communities safe.
- Prioritize routine maintenance to save money and prevent emergency repairs across all infrastructure types.
- Increase replacement of structurally deficient bridges, which are mostly owned and operated locally.
- Create state funding strategies that recognize the importance of functional drinking water, stormwater, and sewer infrastructure to support the economic development of Alabama.
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.
Obama Set to Sign 5 Year, $305 Billion Transportation Bill
December 4th, 2015 | By: America's Infrastructure Report Card
Yesterday, the U.S. House of Representatives and U.S. Senate both approved a five-year, $305 billion highway, transit and railway authorization bill. The overwhelming, bipartisan vote was 359-65 in the House and 83-16 in the Senate. President Obama is expected to sign the bill into law later on today. Thank you, infrastructure supporters, for contacting your members of Congress, which certainly helped secure this victory!
In the run-up to the vote, ASCE leadership urged adoption of the legislation known as the Fixing America’s Surface Transportation (FAST) Act. The FAST Act provides nearly $233 billion for highways, $49 billion for transit and $10 billion federal passenger rail. By the end of the bill’s five-year duration, highway investment would rise by 15% and transit spending would grow by nearly 18%. The FAST Act is the longest surface transportation authorization bill since the enactment of a previous five-year bill in 2005.
The bill includes:
- Creation of a dedicated $1.25 billion freight program to help ensure federal investments are targeted at improving U.S. economic competitiveness;
- Providing $900 million per year for large-scale projects under a new, nationally-significant freight and highways program;
- Cutting the TIFIA program from $1 billion annually to around $300 million per year. TIFIA helps leverage billions of dollars in private sector capital for investment in our nation’s infrastructure;
- Innovation initiatives, such as establishing a national program to explore surface transportation funding alternatives to the fuels tax; and
- Investment in transit by creating a new research and deployment program, increasing funds for fixed guideways, and establishing a new bus facility program.
Tell Congress to Go Big on Transportation
November 17th, 2015 | By: America's Infrastructure Report Card
The House and Senate are currently meeting to decide a big question when it comes to the future of the nation’s surface transportation program: Should funding levels be increased in order to improve and modernize the nation’s roads, bridges and transit system, or should funding levels stay flat for the next six years while the conditions of our aging infrastructure only further deteriorate? ASCE’s answer is pretty clear in a letter we sent to Capitol Hill today: Congress has the means and capability to increase funding levels and they should not squander this opportunity.
While we disagree with his hesitancy to hold a vote in the House on increasing the federal motor fuels tax – the correct way to fund the current highway and transit bill – credit goes to House Speaker Paul Ryan (R-WI) for working to include a provision in the House bill that provides an additional $40 billion to the program. ASCE, along with other groups like the U.S. Chamber of Commerce, believes that the additional money should go towards crafting a five-year program that includes significant funding increases, rather than a six-year bill that only maintains the status quo.
Status quo funding:
• Is what results in our nation’s roads and transit systems receiving a “D” grade and our bridges receiving a “C+”;
• Costs the average American family $1,060 per year each year until at least 2020 due to inadequate roads, bridges and transit systems; and
• Will cost the American economy more than 876,000 jobs, and suppress the growth of the country’s Gross Domestic Product (GDP) by $897 billion in 2020.
Funding increases would allow the House and Senate to produce a bill that would:
• Maintain a strong TIFIA program that can help leverage billions of dollars in private sector capital for investment in our nation’s infrastructure;
• Create a dedicated freight program to help ensure federal investments are targeted at improving U.S. economic competitiveness;
• Improve innovation, which is vital to extending the life cycle of infrastructure assets and making our transportation infrastructure more efficient; and
• Deliver some of the major infrastructure projects that have currently been sitting on the sidelines due to a lack of funding.
The time is now to send a message to Congress regarding the need for increased investment. Call your House member and Senators, and use the hashtag #FixTheTrustFund on social media to urge them to increase funding for transportation in the coming days.
Five Year Highway & Transit Bill with Funding Increases Better Option
November 16th, 2015 | By: America's Infrastructure Report Card
Last week, transportation stakeholders sent a letter to the House and Senate surface transportation conference committee in support of a robust five year highway and transit bill that would increase investment levels. The House-passed bill includes a $40 billion offset which could help increase investment levels if the duration of the bill were reduced from six years to five. A budget analysis conducted by the Eno Center for Transportation estimates that if the money is evenly distributed between highway and transit programs, that a five year bill with a seven percent funding increase in fiscal year 2016 and a three percent annual funding increase thereafter would be the result. On Monday, ASCE along with a larger coalition sent a letter to conferees in support of increase funding for the federal TIFIA program. The TIFIA program provides federal credit assistance in the form of direct loans, loan guarantees, and standby lines of credit to finance surface transportation projects of national and regional significance. The Federal Highway Administration’s Office of Innovative Program Delivery notes that for every dollar in federal investment through TIFIA, the program can deliver ten dollars in credit assistance which can be leveraged into thirty dollars in overall transportation infrastructure investment. The House and Senate have named most of their conferees, with the remaining House members likely to be named by the time the first public conference committee meeting takes place this week. Monday, the House unveiled a two week extension of the current law until December 4 to allow the conference committee time to complete their work. Until the conference committee produces a final bill, ASCE remains engaged in a targeted advocacy push to educate member of the committee on ASCE’s key positions. Please continue to check this blog regularly for issue updates over the coming days.House Unveils Surface Transportation Bill
October 19th, 2015 | By: America's Infrastructure Report Card
On Friday, the U.S. House of Representatives’ Transportation & Infrastructure Committee unveiled a six-year surface transportation reauthorization bill. The bipartisan legislation, titled, the Surface Transportation Re-authorization and Reform Act (STRRA) of 2015, contains three years of flat-level funding for highway and transit programs and will be marked-up by the committee this Thursday. In rolling out their bill, legislative sponsors have stated the importance of its provisions to reform existing programs, refocus those programs on national priorities, provide more flexibility and certainty for state and local partners, and emphasis on transportation innovation.
ASCE believes that status quo funding levels for surface transportation, as is provided in STRRA, are inadequate. Currently this underinvestment costs the average American family about $1,000 from their budget each year from now until 2020 due to the current road, bridge and transit conditions. ASCE believes that members of the House should utilize every available opportunity to attempt to increase funding levels for highway and transit programs beyond where they currently exist in STRRA.
Despite the inadequate funding levels, STRRA does contain policy items that ASCE supports, including:
- Multi-year program certainty that will help states and localities better plan and deliver projects;
- Accelerated project delivery reforms aimed to improve collaboration between agencies and create deadlines for agency action(s);
- Providing grants to states for continued and expanded pilot testing of future road user fee collection systems;
- A new competitive grant to address bus and bus facility needs;
- Increased focus on funding for roadway safety infrastructure and on the safety needs of rural roads; and
- An option for localities to bundle small projects such as bridges to increase efficiency.
New York Infrastructure Receives C- Report Card
September 29th, 2015 | By: America's Infrastructure Report Card
In the inaugural 2015 Report Card for New York’s Infrastructure released today, the state received an overall grade of “C-” from the New York Council of the American Society of Civil Engineers. Assessing nine categories, the report finds that the state’s roads and bridges are among the categories most in need of repair, receiving grades of “D-” and “D+” respectively because of their state of deterioration and lack of adequate funding to improve conditions. In addition, wastewater received a low grade of “D.” The category of parks and solid waste both earned the highest grade of “B-.”
New York’s infrastructure faces several challenges and, in its current condition, the infrastructure system is a drag on the state’s economy. These challenges are highlighted in the Report Card:
- The three airports servicing New York City account for a majority of the nation’s airport delays. By the year 2030, JFK is expected to exceed its current traveler capacity by 30%, and ten other commercial service airports in New York will also exceed 60% of the current capacities.
- Of New York’s more than 17,000 bridges, the majority were built in the 20th century, with over 50% of bridges over 75 years old. Nationally, the average age of a bridge is 42 years.
- The average New York City area commuter, which accounts for half the state’s population, wastes 53 hours per year sitting in traffic.
- Poor road conditions and traffic congestion cost motorists a total of $6.3 billion statewide—an average of $477 per Syracuse motorists.
- The State of New York is only spending 20% of what is needed to modernize the wastewater system.
- One in every four of New York’s wastewater facilities are operating beyond their 30-year useful life expectancy.
- Create a prioritization program to assess the state’s transportation infrastructure needs starting from existing bridge asset management programs and based on accepted standards.
- Develop more consistent funding sources of funding for dams and support the creation of dam rehabilitation funding legislation at the federal and state levels for public and private owners of high hazard and intermediate hazard dams.
- As infrastructure is being rebuilt, make it more resilient and sustainable.
View the full report here.
Founded in 1852, the American Society of Civil Engineers represents more than 145,000 civil engineers worldwide and is America’s oldest national engineering society. ASCE’s 2013 Report Card for America’s Infrastructure, graded America’s cumulative GPA for infrastructure at a D+. The Report Card app for Apple and Android devices includes videos, interactive maps and info-graphics that tell the story behind the grades, as well as key facts for all 50 states.Highway Fund in Trouble by November 20th
September 23rd, 2015 | By: America's Infrastructure Report Card
GRAPH: Cash balance estimates of the Highway Account of the federal Highway Trust Fund; courtesy of the Federal Highway Administration
- October 29, which, following a July extension, is the new date to pass a renewal of the HTF authorization; and
- November 20, which is the projected date when federal funding will slow and be reduced to states.
Despite Senate Transportation Action, House Stymies Progress
July 30th, 2015 | By: America's Infrastructure Report Card
Sens. Inhofe (R-OK) and Boxer (D-CA) led Senate efforts on approving the DRIVE Act
