Highway Trust Fund
The Senate voted 79-17 Thursday evening to pass a bill that would deposit $7 billion into the Highway Trust Fund from the federal government's General Fund.
Rescissions
An effort to repeal an $8.7 billion rescission of federal highway program contract authority scheduled to take effect Sept. 30 failed in the Senate on Thursday, but is expected to be brought up again in September after Congress' summer recess.
Appropriations
The Senate Appropriations Committee unanimously approved Thursday a $75.8 billion transportation spending bill for Fiscal Year 2010.
Climate Change
A new website launched this week by AASHTO highlights strategies to reduce greenhouse-gas emissions from the transportation sector.
Driver's Licenses
The Senate came one step closer this week to implementing new standards for state driver's licenses when an alternative to the 2005 REAL ID law was approved Wednesday by committee.
Economy Recovery
New employment figures from state and local highway contractors show American Recovery and Reinvestment Act work in Washington state doubled from May to June.
The House Transportation and Infrastructure Committee met today to examine progress made by federal agencies and states in implementing the American Recovery and Reinvestment Act.
Automobile Sales
A new federal program to stimulate auto sales has used up its $1 billion budget in its first week of existence, and the House might expedite legislation today to add $2 billion to continue the program.
People
The Senate last week voted to confirm two of President Barack Obama's nominees for federal transportation positions.
The Senate Commerce, Science, and Transportation Committee held a confirmation hearing Wednesday for four transportation nominations submitted by President Barack Obama. The committee scheduled a follow-up meeting for next Wednesday, Aug. 5, to vote on the nominations.
Wendy Gagnier joined the AASHTO staff this week as a project manager in the AASHTOWare Project Office, which is part of the association's Engineering and Technical Services Department. AASHTOWare develops computer software for the transportation industry.
Transportation Funding
Gov. Ted Kulongoski this week signed legislation approving an annual $300 million Oregon highway improvement program funded by a six-cent fuel-tax increase and higher vehicle fees.
Congestion Pricing
The Los Angeles County Metropolitan Transportation Authority board last week approved opening carpool lanes on Interstates 10 and 110 to solo drivers willing to pay a toll.
Budget Woes
The Virginia Department of Transportation on Monday began telling some 600 workers that they will be out of a job within the coming months as the agency cuts its payroll to counter a $2.6 billion revenue shortfall.
Public/Private Partnerships
Gov. Jan Brewer earlier this month signed legislation that allows the Arizona Department of Transportation to enter into public/private partnerships for construction, financing, operation, and maintenance of transportation projects such as toll roads.
Note to Readers
Today marks the last issue of the AASHTO Journal in its current format. The Journal will debut its new website and weekly HTML e-mail newsletter next Friday, Aug. 7. More information regarding the format change will be sent in an e-mail to subscribers next week. The Journal will continue to be published every Friday afternoon and will remain free of charge.
Senate Approval Sends $7 Billion Highway Trust Fund Transfer to President
The Senate voted 79-17 Thursday evening to pass a bill that would deposit $7 billion into the Highway Trust Fund from the federal government's General Fund to ensure state transportation departments will continue receiving full reimbursements for federal-aid highway projects through September, the end of the current federal fiscal year.
The Highway Trust Fund is facing a cash shortfall as soon as next month due to tax revenue coming in below levels projected in the 2005 transportation law known as "SAFETEA-LU" as a result of Americans driving less during the economic recession and thus paying less in gasoline, diesel, and heavy-truck taxes.
Senators rejected four amendments proposed by Republicans, instead approving the same bill cleared Wednesday by the House of Representatives on a vote of 363-68. The bill, HR 3357, heads to President Barack Obama's desk. The president is expected to sign the bill despite the administration's prior request to obtain $20 billion for the Highway Trust Fund in combination with an 18-month temporary extension of authorization for federal surface transportation programs.
House Transportation and Infrastructure Committee Chairman James Oberstar, D-MN, met with U.S. Transportation Department officials Monday to gain their support for the House bill. Oberstar originally proposed a $3 billion infusion for the Highway Trust Fund but the number was later upped to $5 billion and then to $7 billion to ensure the fund remains solvent through the end of this fiscal year.
"We're looking forward to President Obama adding his signature to this critical piece of legislation," said John Horsley, executive director of the American Association of State Highway and Transportation Officials. "It gives our member states some breathing room as they continue to deliver jobs to revive our economy."
As approved by the House and Senate, the legislation contains no extension of authority for federal surface transportation programs, which is scheduled to lapse Sept. 30 at the end of this fiscal year. While House leaders have been pushing a full six-year authorization measure worth $500 billion sponsored by Oberstar, the Obama administration and the Senate have favored a temporary extension of current funding levels for 18 months. Thursday's Senate vote means Congress will have to face the authorization question in September.
"While we are pleased that Congress acted before its August recess on a short-term fix, we must get serious about finding a long-term funding solution or the nation's highway and transit programs will continue to face crises," Horsley said.
Oberstar and Rep. Peter DeFazio, D-OR and chairman of the House Highways and Transit Subcommittee, issued a statement praising congressional action on the Highway Trust Fund crisis and urging support for enacting a six-year authorization bill soon.
"Though these funds were necessary to get us to the end of September, we must next pass our comprehensive surface transportation authorization bill this year so that we can permanently address the solvency of the Highway Trust Fund, build a transportation system for the 21st century, and provide an additional 1 million jobs per year," DeFazio said.
FHWA Had Warned States That Highway Payments Would Be Rationed
Prior to congressional action, Federal Highway Administrator Victor Mendez held a conference call Tuesday with state transportation officials to brief them on what to expect if the Highway Trust Fund were to run short on cash next month. Mendez warned that states would be paid less frequently for highway and bridge repairs. Daily payments to states would be changed to weekly or semimonthly, Mendez said, depending on the availability of funds. Assuming Obama signs the $7 billion transfer bill, such measures will not be necessary through the end of this fiscal year. The trust fund also faces a projected deficit for Fiscal Year 2010, however.
During House and Senate debate Wednesday and Thursday, supporters of the $7 billion transfer to shore up the Highway Trust Fund argued the fund needs additional money immediately to prevent a payment slowdown to states, which could cause states to then curtail their road construction activity. Opponents contended the transfer is not paid for by any new revenue source and that Congress needs to stop using general tax revenue to support the Highway Trust Fund. Congress transferred to the trust fund $8 billion of general revenue last September when a similar funding crisis developed.
The bill Congress approved this week also includes two provisions unrelated to transportation. It would add money to the Unemployment Trust Fund and the Federal Housing Administration capital fund as well as increase the amount that Ginnie Mae may guarantee on mortgage-backed securities.
Senate Debate Centered on Effectiveness of Economic Recovery Act
Debate on the Senate floor stretched for several hours Thursday, with much of the time consumed by Republicans urging approval for three amendments that would have paid for the bill by taking unobligated money from the $787 billion American Recovery and Reinvestment Act. Republicans, led by amendment sponsors Sen. David Vitter of Louisiana and Sen. John Ensign of Nevada, decried the slow spending pace of the recovery act and argued its unused funds would be better spent on infrastructure such as highways and bridges as well as to help states who have run short on funds to pay unemployment benefits.
Vitter's amendment proposed to take $7 billion in unspent recovery funds and place them in the Highway Trust Fund to cover the infusion, rather than taking the money from the General Fund.
Taking money from the General Fund and moving it to the Highway Trust Fund "is racking up more debt, pure and simple," Vitter said. He complained that only $27.5 billion, 3.5 percent of the recovery act, was allocated for highway and bridge improvements.
"Americans favor infrastructure spending as the centerpiece of the stimulus," he said. "Let's do real, concrete, shovel-ready projects – roads, highways, and bridges are the best example of a true, concrete, shovel-ready infrastructure project. I strongly support that element of spending as a way ... to help revive our economy."
Democrats countered that it was inappropriate to take the $7 billion for the Highway Trust Fund from unspent recovery act funds given that the act has only been in place for five months and is intended to last for two years.
"This is not the time to throw a dagger into the heart of job creation, which is what this amendment would do," said Senate Environment and Public Works Committee Chairwoman Barbara Boxer, D-CA. "Let's wait until the end of the stimulus program. If there is funding at that time that has not been obligated, that has been left on the table, then we can take those funds and add those funds to the Highway Trust Fund."
Vitter's amendment was rejected 55-42. Ensign's amendment dealt with paying for unemployment funds from unspent recovery dollars; it went down by a vote of 56-41. Sen. Jeff Sessions, R-AL, offered a third amendment that would have paid for the bill's housing programs by taking money from unspent recovery act funds. It failed 57-40.
A fourth amendment, which also failed, sought to repeal an $8.7 billion highway contract authority rescission scheduled for Sept. 30. (see related story)
House Acted Rapidly to Pass Trust Fund Transfer
Thursday's Senate action came only a day after the House of Representatives approved the legislation sponsored by House Ways and Means Committee Chairman Charles Rangel, D-NY, and House Appropriations Committee Chairman David Obey, D-WI.
Rangel and Obey introduced the measure Tuesday. It was expedited to the House floor the next day using a procedure known as suspension of the rules, whereby noncontroversial measures can be debated without amendment and passed with a two-thirds vote.
During the 40 minutes of House floor debate Wednesday afternoon, Oberstar said he regrets Congress must take action to shore up the Highway Trust Fund. But the drop in vehicle miles traveled experienced over the past year and a half has left the trust fund short of its revenue projections, necessitating an infusion, he said.
Oberstar's six-year, $500 billion authorization measure has been approved by subcommittee but has not been brought up before the full Transportation and Infrastructure Committee yet because there is no agreement with the House Ways and Means Committee on how to raise the extra revenue needed to pay for it. Oberstar vowed he will bring the bill to the House floor in September.
"We are not standing for the wish of the other body or the administration for an extension of time," Oberstar said. "We are not going to let that happen."
Rep. Richard Neal, D-MA and chairman of the House Ways and Means Committee's Subcommittee on Select Revenue Measures, said Congress needs to find a way to pay for highway repairs so the trust fund doesn't need future bailouts. He reiterated his support for coming up with the extra revenue necessary to fund Oberstar's $500 billion authorization bill.
"Whatever politically feasible way we can find, we must find a way forward," Neal said. "Kicking the can down the road on infrastructure needs will not work. Our highways, airports, bridges, and railroads all are in need of an infusion of public support. We all ought to be able to agree on that basic responsibility."
Rep. Earl Blumenauer, D-OR and a member of the Ways and Means Committee, pointed out that the federal gasoline tax of 18.4 cents per gallon hasn't been increased since 1993. Had Congress increased the gas tax to keep up with inflation over the years, a General Fund transfer to support highway programs wouldn't be needed, he pointed out.
"There aren't the resources available to meet the transportation needs we are seeing in every community across the country," Blumenauer said. "What we are going to have to do sometime this decade is increase the gas tax for inflation. ... This is one area where I hope we can get past the partisan bickering."
Rescissions Repeal Defeated for Now, But Boxer Vows to Pass Provision in September
An effort to repeal an $8.7 billion rescission of federal highway program contract authority scheduled to take effect Sept. 30 failed in the Senate on Thursday, but is expected to be brought up again in September after Congress' summer recess.
An amendment offered by Sen. Kit Bond, R-MO, to a Highway Trust Fund bill (HR 3357) would have repealed the scheduled rescission. AASHTO had sent a letter to members of Congress last week noting that failure to repeal the provision would lead to devastating consequences in the states as they reduce highway contracts to comply with the spending cutback. The amendment failed when, by a vote of 63-34, the Senate sustained a budget point of order raised by Majority Whip Richard Durbin, D-IL, contending Bond's amendment was not paid for.
Bond said states will "be dealt a heavy blow" if the highway rescission is not repealed. Bond said all 50 states face "drastic cuts" to their highway programs in late September as a result of the "dangerous" rescission, which could lead to 250,000 job losses in the construction industry. He noted the Missouri Department of Transportation stands to lose $200 million in project funding.
"If we fail to repeal the rescission, we will be taking the shovels out of the hands of workers ready to go to work on 'shovel-ready' projects," Bond said. "That's not something I want to go home and explain to the people of my state."
Bond argued that the Sept. 30 rescission of $8.7 billion will effectively negate the action Congress took this week to place an additional $7 billion in the Highway Trust Fund.
"We should not be giving money to states for infrastructure jobs and economic growth with one hand and then on Sept. 30 taking that money away," Bond said. "This contradictory action just doesn't make sense."
Senate Environment and Public Works Committee Chairwoman Barbara Boxer, D-CA, told Bond she supports his amendment but favors passing it in September as part of legislation to extend authorization for federal surface transportation programs. Boxer said she wanted to fend off any amendments to the House's Highway Trust Fund bill so the Senate could pass it and send it straight to the president. The House is scheduled to begin its summer recess today, leaving the chamber little time to act if the Senate were to return an amended bill requiring another vote.
Amending the House bill "would be playing Russian roulette with the Highway Trust Fund," Boxer said.
"We'll take care of this problem, these rescissions, but we don't have to take care of it now. What we must take care of today is the Highway Trust Fund because it is running out of money," she said. Bond "is entirely correct. We must deal with this rescission. We have to repeal it. We are going to repeal it. I will work with him to do it."
With the Senate's rejection of the Bond amendment Thursday, the rescissions issue will return for further debate following Congress' return to Washington after Labor Day.
John Horsley, AASHTO executive director, praised Bond for his leadership on this important issue and thanked Boxer for her assurance that the rescissions repeal will be considered in the Senate prior to the Sept. 30 effective date.
"Congress must act to remove the $8.7 billion rescission included in the last highway and transit authorizing act that might force states to cut ongoing projects," Horsley said.
The House of Representatives did not debate the rescissions question this week because the Highway Trust Fund bill moved through that chamber using an expedited procedure that barred discussion of any amendments.
North Carolina Among States Highlighting the Consequences the Rescission Will Have
Earlier this week, North Carolina's top transportation official warned that the state would lose $249 million – about one-fourth of its federal highway allocation for the fiscal year that ends Sept. 30 – unless Congress cancels the planned rescission of previously granted contract authority.
Transportation Secretary Gene Conti said if implemented, the $8.7 billion nationwide rescission of highway contract authority could hurt all states very hard. Conti noted most of the funds have already been allocated to specific projects and states including North Carolina would have to trim road-building contracts to compensate for the loss of federal reimbursement guarantees, The News & Observer reported.
"It could impact our ability to claim reimbursement on projects where the work is done and the contractors are expecting to be paid," Conti said. "So we would have to find other cash to pay them with if the feds pull back our ability to bill them for that work."
Other states including Colorado and Nevada have recently warned of similar devastating consequences if the rescissions take effect. AASHTO has posted a table of rescissions slated for each state at tinyurl.com/rescissionstable.
The North Carolina Department of Transportation has already reduced roadwork based on projections that state and federal gas-tax and other highway revenues will fall $300 million below budget this year. A federal rescission of $249 million would nearly double that drop in North Carolina's transportation spending, Conti said.
Senate Appropriations Committee Proposes FY 2010 Transportation Funding
The Senate Appropriations Committee unanimously approved Thursday a $75.8 billion transportation spending bill for Fiscal Year 2010, including $42.5 billion for highways and $11.1 billion for transit.
A subcommittee reported out the transportation funding bill Wednesday and it was marked up by the full Appropriations Committee on Thursday. At full committee, the only modification was a manager's amendment that made minor changes to the bill.
The highway spending level in the Senate bill is $1.4 billion higher than that proposed by the House bill. The Senate version includes an obligation limitation of $41.107 billion for highways and bridges. It includes funding of $900 million from the General Fund to boost highway formula spending as well as $500 million from the General Fund to expand the TIFIA credit assistance program, which loans money to states for development of tollways and other transportation infrastructure. General Fund monies are also included to cover some $165 million in highway project earmarks.
Transit funding in the Senate bill would increase $600 million over the House level of $10.5 billion. That would include $8.343 billion for formula and bus grants, $2.307 billion for New Starts and Small Starts capital grants, $100 million to assist transit agencies in reducing greenhouse-gas emissions, and $150 million for the Washington Metrorail system. The House bill also contains the $150 million for the capital's Metrorail for the replacement of aging subway cars.
Funding for the Airport Improvement Grants program is continued at $3.5 billion in the Senate measure, the same level as provided by the House.
The Senate bill includes a new category of funding for "Significant Transportation Projects" at $1.1 billion. This money is apparently intended to support competitive grants for highways, bridges, public transportation, passenger and freight rail, and port infrastructure. The bill provides that no less than $250 million of that allocation be directed by the secretary of transportation to rural communities. This program appears to continue the competitive grant program of $1.5 billion that was included at the behest of Sen. Patty Murray, D-WA, chairwoman of the transportation subcommittee, in the economic recovery act passed in February.
Intercity and high-speed rail grants would be funded at $1.2 billion in the Senate version "to build on" the $8 billion provided by the recovery act. The House has proposed funding of $4 billion for such rail grants, with a provision that $2 billion would be transferred to start a national infrastructure bank should it be authorized by Congress. The Senate bill contains no funding for the proposed infrastructure bank. The Senate bill also provides a total of $1.55 billion in grants to Amtrak.
Funding for highway traffic safety grants is proposed by the Senate at the House level of $619.5 million. Federal motor carrier safety grants are proposed at $310 million for the next fiscal year, which begins Oct. 1.
New AASHTO Website Addresses Transportation Solutions to Greenhouse-Gas Emissions
A new website launched this week by the American Association of State Highway and Transportation Officials highlights strategies to reduce greenhouse-gas emissions from the transportation sector.
The "Real Transportation Solutions for Greenhouse-Gas Emissions" website – available at www.transportation1.org/RealSolutions – includes best practices, state examples, research findings, and links to other climate-change information sites.
"State departments of transportation are committed to doing our share to reach a goal of reducing greenhouse gases in the United States 80 percent by 2050 compared to 2005 levels," said AASHTO Executive Director John Horsley. "When you consider that autos and light-duty trucks contribute 16.5 percent of the greenhouse gases in the United States, it's obvious to us that transportation must play a significant role in the solution. The key is to invest in realistic and livable solutions that can help us meet our GHG reduction goals."
AASHTO's new website provides information on four strategies:
- Smarter Driving: Reducing the annual growth in driving
- Better Fuels: Shifting to fuels that produce low or zero carbon dioxide
- Better Cars: Increasing vehicle fuel efficiency
- Optimizing the System: Improving the efficiency and operation of the transportation system
Accomplishing these goals will require holding growth in vehicle miles traveled in the United States to 1 percent annually and initiating attainable land-use strategies, which include increasing transit usage, carpooling, vanpooling, telecommuting, bicycling, and walking.
Further greenhouse-gas reductions could be achieved through effective management of available road capacity and by reducing congestion delays through the use of intelligent transportation systems. These high-tech tools will maximize efficiency by giving motorists real-time travel information about bottlenecks, traffic mishaps, and road hazards.
Major reductions in greenhouse-gas emissions will depend to a large extent on cleaner cars and cleaner fuels, according to AASHTO. Technological advances have been responsible for dramatic reductions in air pollution and will be the predominant answer to reducing transportation's contribution to global warming.
The website also highlights the wide spectrum of research that is underway or planned to further evaluate the effectiveness of greenhouse-gas emission-reduction strategies.
"This is a critical issue as the nation implements efforts to reduce emissions," Horsley said. "Both the House climate-change bill and the House Transportation and Infrastructure Committee surface transportation authorization bill draft propose that as a part of the transportation planning process, states and their metropolitan planning organizations must establish greenhouse-gas emission-reduction targets and strategies to meet those targets."
Horsley noted reducing greenhouse gases by 2050 is a four-decade mission "but every day counts. The stakes are too high to get this wrong and that's why we're hoping policymakers, journalists, and the general public will turn to this website for realistic solutions that will help us reach our goal."
PASS ID Advanced by Senate as Realistic Alternative to REAL ID Standard
The Senate came one step closer this week to implementing new standards for state driver's licenses when an alternative to the 2005 REAL ID law was approved Wednesday by Senate Homeland Security and Governmental Affairs Committee.
The measure, S 1261, is called "PASS ID" for "Providing for Additional Security in States' Information." It was approved by the panel after several amendments were adopted, Congressional Quarterly reported.
An amendment by Sens. Joseph Lieberman, I-CT, and Susan Collins, R-ME, would require electronic verification of birth certificates by states. A second amendment offered by Sen. Jon Tester, D-MT, would require the Department of Homeland Security to send annual reports on the implementation of PASS ID to Congress.
The Obama administration supports the legislation, sponsored by Sen. Daniel Akaka, D-HI, to replace the REAL ID standard, which has been criticized by states for being an unfunded federal mandate.
After the bill was introduced last month, the American Association of Motor Vehicle Administrators issued a statement concerning the proposal.
"The introduction of PASS ID in the U.S. Senate illustrates that lawmakers recognize the implementation challenges with the current law and are open to workable solutions," according to AAMVA. "This is a significant and positive step toward enabling states to comply with federal standards for secure driver's licenses while maintaining state flexibility and reducing the costs for implementation. Motor-vehicle agencies have a demonstrated history of improving the integrity and security of driver's licenses and identification cards and AAMVA looks forward to working with both Congress and the administration to help state motor-vehicle agencies implement a practical solution."
Homeland Security Secretary Janet Napolitano has stated that the bill is a realistic alternative to REAL ID and was created with input from the state governors.
"PASS ID is critical national security legislation that will break a long-standing stalemate with state governments that has prevented the implementation of a critical 9/11 [commission] recommendation to establish national standards for state driver's licenses," said Sara Kuban, Department of Homeland Security spokeswoman. "Rather than a continuing stalemate with the states, PASS ID provides crucial security gains now by establishing common security standards for driver's licenses and a path forward for ensuring that states can electronically verify source documents, including birth certificates."
Under the proposal, all license holders would need to be re-enrolled by the states, and implementation would require wide-sweeping changes. The bill sets federal security standards for state licenses and requires them to feature a digital photo of the holder and be machine readable. States are also required to check birth records for validity and must create birth certificate databases within six years of the bill's approval.
These databases would be accessible on a national level, but users would receive a "yes" or "no" answer on the compliance of a particular individual and would not be able to retrieve biographical information from the system.
The measure requires that state motor-vehicle agencies create a central database for sharing information, a condition that has been met with opposition from the states. The creation of state databases would be funded through federal grants.
Under the bill, the Transportation Security Administration would be allowed to determine whether or not passengers need a PASS ID to board a commercial airliner. Passengers without one would be allowed to board after security screening. PASS ID holders would not be fast-tracked through security and would be subjected to screening procedures.
ECONOMIC RECOVERY
Employment Data for Recovery Projects in Washington State Show Surge in June
New employment figures from state and local highway contractors show American Recovery and Reinvestment Act work in Washington state doubled from May to June as more projects got awarded and underway. Work to deliver the state's recovery act highway projects is shifting into high gear, as $492 million in federal funding makes its way off the balance sheet and into highway projects.
With more state and local recovery projects now under construction, contractors have increased their hours worked. Payroll and labor hours doubled from May to June, according to the Washington State Department of Transportation. The employment data shows workers on recovery act-funded projects logged nearly 58,000 labor hours in June, compared to just under 29,000 hours in May. At an average salary of $38 per hour, workers are continuing to support their families and the economy.
"The number of orange cones and barrels on the highways is a good indicator that we are delivering on the promise to get our projects moving quickly to get people working this summer," said Paula Hammond, Washington state transportation secretary.
As of Wednesday, three recovery highway projects in Washington state are substantially complete. The Interstate 90 Yakima River to West Ellensburg paving project finished ahead of schedule and on budget. Paving projects in the city of Conconully and in Garfield County are also complete. Washington state currently has 106 projects that have been awarded to contractors or currently under construction. A total of 159 projects have been advertised to date.
As a whole, WSDOT has obligated 71 percent of its recovery highway funds: $245 million of $345 million. The Federal Highway Administration provided Washington state with a total of $492 million for state and local highway projects, advancing projects and jobs to address high-priority highway preservation needs and fund low-cost, high-benefit transportation system improvements.
Washington state will deliver more highway projects with federal recovery funds than first envisioned, thanks to the recent trend toward lower construction bids. Between July 1, 2008, and June 30, 2009, WSDOT awarded 172 contracts, 150 of which came in less than the engineers' estimate. The average amount below the estimate for these 172 contracts was 17 percent. Recovery projects recently put to bid have come in under the engineer's estimate by 20 percent.
House T&I Committee Holds Another Hearing to Examine Recovery Spending
The House Transportation and Infrastructure Committee met this morning to examine progress made by federal agencies and states in implementing the American Recovery and Reinvestment Act.
Today's hearing focused on spending for non-transportation programs such as those involving inland waterways and public buildings, but the committee also touched on the status of the recovery act's highway program.
Congress provided $27.5 billion in recovery funds for highways and bridges. Of that amount, $26.8 billion was sent to states for federal-aid highway investments. As of July 17, according to a report released by the committee Thursday, all of the states as well as the District of Columbia, Puerto Rico, American Samoa, and Guam have received approval for 5,808 projects funded under that highway formula program. Those projects represent $17 billion, or approximately 62 percent, of the funds provided for the program. There remains about $10 billion in recovery highway funds that have not yet been obligated.
The committee's report highlighted that all 50 states met the recovery act's requirement that at least half of the funds allocated to the states be obligated within 120 days of the day of apportionment. That deadline was June 30.
Further details of the hearing will be provided in next week's AASHTO Journal.
NATION
House Moves to Triple Funding for Cash for Clunkers Program
A new federal program to stimulate auto sales has used up its $1 billion budget in its first week of existence, and the House might expedite legislation today to add $2 billion to continue the program.
Cash for Clunkers was launched four days ago and proved extremely popular with new-car shoppers. House Appropriations Committee Chairman David Obey, D-WI, today introduced a supplemental appropriations bill (HR 3435) to authorize the transfer of $2 billion in funds from the Innovative Technology Loan Guarantee Program in the American Recovery and Reinvestment Act to boost the amount available for Cash for Clunkers vouchers. As the clock ticks down to the House's summer recess starting this evening, efforts were underway to consider the bill under "unanimous consent" to speed it to the Senate, which remains in session next week.
The White House says the program has not been suspended and deals made under its terms will be honored. The administration is looking for ways to extend the new program, despite the financial shortfall, the Detroit Free Press reported. The program provides vouchers of $3,500 or $4,500 to motorists who trade in an old, fuel-inefficient vehicle for a new model that gets better gas mileage. Old cars must be scrapped to remove them from operation.
"If you were planning on going to buy a car this weekend using this program, the program continues to run," said White House spokesman Robert Gibbs, "If you meet the requirements of the program, the certificates will be honored."
Michigan lawmakers are pushing for an emergency infusion of cash today, before the House begins its summer recess, to maintain the program's solvency. Issues arose with the program Thursday when car dealers reported that they had lost track of the number of trade-ins. It's estimated that car sellers may have already processed 250,000 trade-ins – more than the program was expected to deliver.
Senate Confirms Trottenberg and Hersman for Transportation Positions
The Senate last week voted to confirm two of President Barack Obama's nominees for federal transportation positions.
Polly Trottenberg was confirmed to serve as assistant secretary of transportation for policy. She has served as executive director of Building America's Future, a nonpartisan coalition of state and local officials that promotes greater investment in the country's infrastructure.
Deborah Hersman was confirmed to serve as chairwoman of the National Transportation Safety Board. Hersman has been a member of the board, which investigates transportation incidents, since 2004.
Committee Holds Hearing for 4 Transportation Nominees; Votes Scheduled for Next Week
The Senate Commerce, Science, and Transportation Committee held a confirmation hearing Wednesday for four transportation nominations submitted by President Barack Obama. The committee scheduled a follow-up meeting for next Wednesday, Aug. 5, to vote on the nominations.
Those nominations pending a vote next week are:
- Christopher Bertram to be assistant secretary for budget and programs as well as the chief financial officer at the U.S. Department of Transportation
- Susan Kurland to be assistant secretary for aviation and international affairs at U.S. DOT
- Christopher Hart to be a member of the National Transportation Safety Board
- Daniel Elliott III to be a member of the Surface Transportation Board
STATES
Oregon Governor Signs Transportation Package That Includes 6-Cent Gas-Tax Increase
Gov. Ted Kulongoski this week signed legislation approving an annual $300 million Oregon highway improvement program funded by a six-cent fuel-tax increase and higher vehicle fees.
Because of the current recession, the gas tax will not take effect until after two consecutive quarters of employment growth or January 2011, whichever comes first. The motor-vehicle fees will increase this fall with the two-year vehicle registration fee, now $54, increasing to $86. The vehicle title fee will go up from $55 to $77. The cost of license plates will increase from $5 a pair to $20.
While the primary employment boost from the new funding package will kick in next construction season, transportation officials estimate that some 4,000 jobs will be created by the new funding.
HOT Lanes Coming to Los Angeles
The Los Angeles County Metropolitan Transportation Authority board last week approved opening carpool lanes on Interstates 10 and 110 to solo drivers willing to pay a toll.
Charges will range from 25 cents per mile when traffic is light to $1.40 per mile during peak hours. Congestion pricing will be set to keep the lanes flowing at a minimum speed of 45 mph, the Los Angeles Times reported.
California is receiving $211 million federal grant to implement the High Occupancy Toll lanes on these two interstates – the largest federal congestion-reduction grant to date. The California Department of Transportation and the MTA will convert 14 miles of existing carpool lanes on I-10 and 11 miles of I-110, and a second HOT lane will be added in both directions on I-10. Plans call for automated toll plazas, road improvements, and additional transit services in the two corridors. Construction should be completed by December 2010.
The project is considered a demonstration by the U.S. Department of Transportation. Caltrans and MTA will have to evaluate whether congestion was reduced as a result of their efforts using the federal grant money.
Virginia DOT Employees Learning of Layoffs
The Virginia Department of Transportation on Monday began telling some 600 workers that they will be out of a job within the coming months as the agency cuts its payroll to counter a $2.6 billion revenue shortfall.
VDOT Commissioner David Ekern said he expects more than half of the affected employees will be placed in other department or state positions, The Examiner reported. The announcement of fall layoffs comes after the department's termination of 450 part-time workers last month and ahead of a third round of staff cuts scheduled for the winter.
In all, VDOT is shedding 1,450 full- and part-time positions to save about $391 million over the next six years. The payroll reductions come as the department plans to cut $2 billion in road construction during that six-year period and as the department is closing down rest areas across the state to reduce operating expenses by $9 million annually.
Arizona to Expand Use of PPPs for Transportation Projects
Gov. Jan Brewer earlier this month signed legislation that allows the Arizona Department of Transportation to enter into public/private partnerships for construction, financing, operation, and maintenance of transportation projects such as toll roads.
The measure, HB 2396, revises an existing law that some critics claimed was too restrictive on the types of public/private partnerships allowed in the transportation sector. The new law applies to new roads; it prohibits current highways from being converted into privately owned tollways.
A 2008 report from the Arizona Investment Council noted the state must invest upwards of $250 billion during the next 25 years just to maintain its transportation infrastructure at current performance levels. ADOT spokesman Timothy Tait said declining state revenue forced the department to cut some $600 million worth of projects in its five-year transportation plan.
Supporters said the revised PPP law will enable a greater role for private investment in Arizona's infrastructure especially as public investment levels drop due to lower government revenue resulting from the nation's economic recession.
AASHTO
New Employee Joins Engineering and Technical Services Department
Wendy Gagnier joined the AASHTO staff this week as a project manager in the AASHTOWare Project Office, which is part of the association's Engineering and Technical Services Department. AASHTOWare develops computer software for the transportation industry.
Gagnier brings 21 years of engineering experience to her new position at AASHTO. She's had increasing levels of management responsibilities including research, design, production, and management of all aspects of transportation improvement projects. Most recently she served as the senior consultant under PBS&J's National Management Solutions Division, providing leadership on initiating, developing, and implementing integrated systems for new and existing clients. She has previously held positions with the San Diego Association of Governments, Florida's Turnpike Enterprise, the Miami-Dade Expressway Authority, and the Rhode Island Department of Transportation.
She holds Bachelor of Science and Master of Science degrees in civil engineering from the University of Rhode Island and is a registered professional engineer.
Her responsibilities at AASHTO include providing primary staff support to the SDMS Task Force, assisting in supporting the Trns*port Task Force, and offering secondary support to the BRIDGEWare Task Force. She can be reached at wgagnier AT aashto.org or 202-624-3610.
NOTE TO READERS
New AASHTO Journal Website & E-Mail Newsletter Launches Next Week
Today marks the last issue of the AASHTO Journal in its current format. The Journal will debut its new website and weekly HTML e-mail newsletter next Friday, Aug. 7. More information regarding the format change will be sent in an e-mail to subscribers next week. The Journal will continue to be published every Friday afternoon and will remain free of charge.
AASHTO staff have been working over the past several months to develop a new Journal website and accompanying newsletter that will greatly enhance the publication. Readers will be able to view individual articles and will have the options of printing, e-mailing, and sharing stories of interest. We look forward to your feedback regarding the new format.
