Senate Clears Transportation Appropriations, Adds $1 Billion for Bridge Repairs

The U.S. Senate this week approved its FY 2008 spending bill for the U.S. Department of Transportation, adding an additional $1 billion to the Federal bridge replacement and repair program.

The legislation (H.R. 3074) cleared the Senate by a vote of 88-7.  The extra bridge funds were approved by a vote of 60-33.  Also included in the funding package is an emergency appropriation of up to $195 million to replace the 1-35W bridge, which collapsed in Minneapolis on August 1.

The Senate-passed measure appropriates $42.190 billion for the federal-aid highway program which includes the additional $1 billion and the emergency funding.  This represents an increase of $1.592 billion over the FY 2007 level. 

Also under the measure, the Airport Improvement Program is level funded at $3.515 billion, which is $765 million over the Administration's budget request.

In a statement issued on Wednesday, the Administration threatened to veto the bill if the total appropriations in the bill are not reduced by $3.1 billion.  The Administration also objected to funding levels for Amtrak, language concerning Mexican trucks coming into the United States, and the $631 million in revenue-aligned budget authority, or RABA, funding.

Of additional interest to NACA members, the bill includes an amendment, offered by Senator Olympia Snowe (R-Maine), to allow the Transportation Department to study the use of non-hazardous recycled aggregates and other materials.  This would include reuse of concrete and asphalt in highway projects with the aim of encouraging use of recycled materials.

Contact  David Hubbard, Robert Sullivan, or Leif Wathne.

The Senate Finance Committee is expected to consider a plan next week to ensure sufficient Highway Account revenues are available to fulfill the commitments made in the 2005 surface transportation program, SAFETEA-LU. 

As reported in last week's NACA WASHINGTON BRIEFING, the Congressional Budget Office (CBO) revised its projections for the Highway Trust Fund. CBO is now predicting a $5.1 billion cash deficit in the Highway account by the expiration of SAFETEA-LU.  The new CBO calculations increase those of the White House's Office of Management and Budget (OMB) from mid-July, which estimated a $4.3 billion cash deficit. 

Under the CBO and OMB forecasts, Highway account revenues would only be able to support a $27.3 billion highway program in FY 2009, nearly $16 billion below the amount guaranteed under SAFETEA-LU.

SAFETEA-LU guaranteed at least $223 billion for federal highway program investments through FY 2009.  This investment level was predicted on a forecast of anticipated revenues collected for the Highway Trust Fund's Highway Account over the life of SAFETEA-LU.

Senators Max Baucus (D-Mt.) and Charles Grassley (R-Iowa), respectively the Chairman and Ranking Member of the Senate Finance Committee, plan to offer an amendment to the Federal Aviation Administration (FAA) reauthorization tax package on Wednesday to address the shortfall.

The Grassley-Baucus proposal would:

• Credit the Highway Trust Fund for emergency expenditures paid out of the fund since 1998. 
• Restructure current fuel tax exemptions/refunds provided to state and local governments to be General
• Fund supported activities, instead of costs borne by the Highway Account. 
• Implement additional mechanisms to further crack down on fuel tax evasion.   
• Transfer revenues generated from the "gas guzzler tax" from the General Fund to the Highway Trust Fund. 

Contact  David Hubbard or Robert Sullivan.

Further to the story above, NACA is urging industry to contact members of the Senate Finance Committee and ask them to support the Baucus-Grassley amendment at Wednesday's markup.  Please refer to the attached discussion points.

For your convenience, hyperlinks below will lead to the Senators' web pages, which contact complete contact information. NACA is urging companies to ask personnel in all offices to weigh in on this key issue.

In addition to Senators Baucus and Grassley, members of the Finance Committee include Senators Rockefeller (D-W.V.), Conrad (D-N.D.), Bingaman (D-N.M.), Kerry (D-Mass.), Lincoln (D-Ark.), and Wyden (D-Ore).  Also, on the committee are Senators Schumer (D-N.Y.), Stabenow (D-Mich.), Cantwell (D-Wash.), Salazar (D-Colo.), Hatch (R-Utah), Lott (R-Miss.), and Snowe (R-Maine). Also, Senators Kyl (R-Ariz.), Smith (R-Ore.), Bunning (R-Ky.), Crapo (R-Idaho), Roberts (R-Kan.), and Ensign (R-Nev.).

Contact  David Hubbard or Robert Sullivan.

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