Update on National Infrastructure Legislation

Senator Tom Carper (D-Del.), along with co-sponsors Senators Norm Coleman (R-Mn.), George Voinovich (R-Ohio) and Hillary Rodham Clinton (D-N.Y.), on Tuesday re-introduced the National Infrastructure Improvement Act of 2007 (S. 775).

The legislation establishes a national commission on the infrastructure of the United States to ensure that it meets current and future demand and facilitates economic growth.

Similar legislation was introduced in both Houses of the 109th Congress. The bill requires the Commission to study the state of U.S. infrastructure, including such matters as:
... (1) the capacity of infrastructure improvements to sustain economic development and competitiveness;
... (2) the age and condition of public infrastructure;
... (3) the methods used to finance the construction, acquisition, rehabilitation, and maintenance of public works improvements;
... (4) investment requirements needed to maintain and to improve facilities and the projected share of investment requirements and expenditures on infrastructure facility improvements by federal, state, and local governments; and
... (5) estimates of the return to the economy from public works investment.

Their report would be due by February 2010.

Contact John Sullivan, Robert Sullivan, or David Hubbard.

House Passes Water Infrastructure Bills

This week, the House passed two water infrastructure bills recently reported by the the U.S. House Transportation and Infrastructure (T&I) Committee.

The two bills, H.R. 569, relating to sewer overflow control grants, and H.R. 700, which extends a pilot program for alternative water source projects, both passed with large majorities on Wednesday and Thursday, respectively.

Today, the House will take up and likely pass a third bill, H.R. 720, that would reauthorize the Clean Water State Revolving Fund (SRF) program. In its current form, the bill allots $14 billion for the SRF over the next four years.

H.R. 720 has attracted a lot of scrutiny because it extends coverage under the Davis-Bacon Act (prevailing federal wage on construction projects) for SRF funded projects even after the original federal money is out of the system.

Late last night, the House Rules Committee finished work on a structured rule that allows only certain limited amendments to be offered, including one that would strike Davis-Bacon entirely. It is expected that this amendment will fail.

Last week, the T&I Committee brought H.R. 720 back up and amended it to meet the "pay as you go," or PAYGO rule requirements.

The PAYGO rule compels new spending or tax changes to not add to the federal deficit. New proposals must either be "budget neutral" or offset with savings derived from existing funds. In this case, it is proposed that by the PAYGO rules would be met by cutting the overall length of the authorization from five years to four years and by increasing per-ton duties levied on vessels using U.S. ports. The port duties have nothing to do with the SRF program but simply serve as a PAYGO expedient.

Contact Robert Sullivan or David Hubbard.

Republicans Named to New House Climate Change Panel

U.S. House Minority Leader John Boehner (R-Ohio) announced today the Republican appointments to the Select Committee on Climate Change which was authorized by the House of Representatives last night, by a vote of 269 to 150, as part of a funding resolution.

Boehner named Rep. James Sensenbrenner (R-Wisc.) as the Ranking Republican on the panel. Other GOP members include Representatives John Shadegg (R-Ariz.), Greg Walden (R-Ore.), Candice Miller
(R-Mich.), John Sullivan (R-Okla.), and Marsha Blackburn (R-Tenn.).

The panel will be chaired by Representative Edward Markey (D-Mass.).

Contact David Hubbard or John Shaw.

Railroad Antitrust Bill Introduced in the Senate

Senator Herb Kohl (D-WI) this week introduced legislation (S. 772) aimed at eliminating the current antitrust exemptions for freight railroads.

Current law protects a wide range of railroad industry conduct from scrutiny by antitrust enforcers. Railroad mergers and acquisitions are exempt from antitrust law and are reviewed only by the three-member Surface Transportation Board. Railroads that engage in collective ratemaking are also exempt from antitrust law.

The bill eliminates these antitrust exemptions by allowing the federal government, state attorneys general and private parties to file suit to enjoin anti-competitive mergers and acquisitions.

Sen. Kohl held a hearing this week of his Judiciary Subcommittee on Antitrust, Competition Policy and Consumer Rights to address general antitrust and anti-competitive practices.

NACA partner Portland Cement Association is monitoring this legislation, as it likely to be tied to legislation addressing railroad competition, which the association supports.

S. 772 is cosponsored by Senators Russ Feingold (D-Wisc.), John D. "Jay" Rockefeller IV (D-W.V.), Norm Coleman (R-Mn.), and David Vitter (R-La.).

Contact David Hubbard.

Report Provides Direction for Highway, Transit Spending

The cost to improve U.S. highways and bridges to the levels needed this year is $155.5 billion.

This was one of the key findings reported this week by John Horsley, Executive Director, of the American Association of State Highway and Transportation Officials (AASHTO). NACA partner ACPA participated in a briefing this week to present a detailed view of some of the most critical challenges and pressing opportunities roadbuilders and agencies face.

The briefing was a overview of a comprehensive report that was the product of policy research conducted by AASHTO and a range of other stakeholders.

Other relevant findings:
....• To restore the transportation program's purchasing power, federal highway assistance will have to increase from $43 billion in FY 2009 to $73 billion in FY 2015; transit likewise will have to increase from $10.3 billion to $17.3 billion.
....• U.S. population, which between 1955 and 2005, grew by 130 million to 295 million, is expected to increase to 435 million within the next 50 years.
....• In 1955, U.S. Highways carried 65 million vehicles. Today, essentially the same roadways carry 246 million vehicles; the figure is expected to reach almost 400 million by 2055.

The report is intended to provide information and policy recommendations for the National Surface Transportation Policy and Revenue Study Commission, created by Congress to examine future surface transportation needs, demographic trends that will shape traffic demand and a host of other topics related to transportation construction, maintenance, and financing.

This report is the first of six developed by state transportation officials to provide information and policy recommendations to the Commission. Click here to obtain a copy.

Contact Leif Wathne.

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