As the President’s repeated in his address to Congress his pledge to dramatically increase infrastructure spending to the tune of $1 trillion, various Congressional Committees have been holding hearings to explore the need. While the hearings reflect broad and even growing support on Capitol Hill for infrastructure spending, they also illustrate major hurdles, chief among them and one that has bedeviled infrastructure advocates for a very long time, how to pay for it.
On the House side, the Transportation and Infrastructure Committee has begun a series of hearings to highlight the need among specific infrastructure categories. Using the title “Building a 21st Century for America,” the hearings explore the federal role in several infrastructure categories. On March 1st, the Committee’s Aviation Subcommittee looked at the state of the nation’s airports, with a panel of airport executives including Dallas/Fort Worth International Airport and the Greater Asheville (NC) Regional Airport Authority.
The executives noted different challenges faced by different sized airports and the need for flexibility, both in how they are able to spend grant money received through the Airports Improvement Program (AIP) and the ability to set the appropriate level for the Passenger Facility Charges (PFCs) that airports can charge, which has been capped by Congress at $4.50. During the hearing, full Committee Ranking Democrat Peter DeFazio (D-OR) announced he had joined with Rep. Thomas Massie (R-KY) in offering legislation to remove the cap on PFCs and permitting airports to set the level as they see fit. The panel also noted that under the new pricing policies instituted by airlines, while the ticket tax that funds the AIP is applied to the basic ticket, additional charges such as baggage fees are not subject to the tax, costing the program millions of dollars.
Finally, both members of the Committee and the panelist agreed that the recent pattern of short-term authorizations of the Federal Aviation Administration (FAA) and its programs has made it hard to make long-term plans and have increased the cost of the capital projects. ASCE strongly agrees with the airport executives and supports increasing funding for the AIP, removing the cap from the PFCs and longer-term authorization for the FAA.
Meanwhile in the Senate, the Environment and Public Works (EPW) Committee held a hearing titled “Flood Control Infrastructure: Safety Questions Raised by Current Events.” The hearing was prompted in large part by the recent spillway deteriorations and ensuing evacuations around California’s Oroville Dam, the tallest dam in the nation. Among the witnesses were Lieutenant General Todd T. Semonite, Commanding General and Chief of Engineers U.S. Army Corps of Engineers and Larry Larson, Director Emeritus & Senior Policy Advisor for Association of State Floodplain Manager. General Seminote talked about his agency’s role in providing flood protection infrastructure across the country. Sens. John Barrasso (R-WY) and Joni Ernst (R-IA) pressed the General on the Agency’s benefit-cost analysis formula for selecting projects, which relies, in-part, on property value. Sen. Barrassso, the new Chairman of the Committee emphasized this type of formula pitted urban project against more rural projects in his home state of Wyoming.
Larry Larson and several Senators also raised the important point that there are flood control programs authorized by Congress in the Water Resources Reform and Development Act of 2014 and Water Resources Development Act of 2016 that have not received any federal funding. Larry Larson also told the panel that private funding will not cover the full cost for dam and levee repair. "Our experience shows that financial incentives are very difficult to apply to these projects," adding that that federal funding would be needed.
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