ARTBA Washington Newsline SEPTEMBER 3, 2012 Newsline Washington CBO Confirms Trust Fund Solvency Through FY 2014 Continued on page 3 Continued on page 2 Follow ARTBA: Project Delivery Focus of Sept. 26 Webinar Register for ARTBA’s 24 th P3 in Transportation Conference, October 10-12 The Republican National Committee (RNC) August 28 officially approved a policy platform that recognizes the importance of an effective infrastructure network to the nation’s economy and the clear federal responsibility to make investments in this area. The document calls for a renewed state-federal partnership and the increased use of public- private partnerships to deliver ADVERTISEMENT improvements. While the platform acknowledges the fiscal challenges facing the Highway Trust Fund, it does not provide recommendations for how to address shrinking federal user fee receipts. The GOP platform follows many policy recommendations made by ARTBA President & CEO Pete Ruane during a July 30 meeting with the RNC platform committee. ARTBA also submitted recommendations to the Democratic National Committee (DNC) which will adopt their official party platform during their convention September 4-6 in Charlotte, N.C. The DNC has not yet circulated a draft of their platform. We will keep you apprised of developments as they occur. GOP Platform Recognizes Infrastructure’s Importance The increased use of alternative project delivery methods such as Design-Build (DB) and Construction Manager/ General Contractor (CMGC) by state and local transportation agencies requires contractors to beef-up their firms’ proposal and presentation development skills. MAP-21 encourages the use of “innovative project delivery methods,” and provides incentives and wider discretion The Congressional Budget Office (CBO) released an updated forecast last week of the Highway Trust Fund’s revenue and expenditure outlook under the new two- year surface transportation program reauthorization, MAP-21. According to CBO, the trust fund’s Highway Account will begin FY 2013, MAP-21’s first year, with an $8.7 billion surplus and will end FY 2014 with a $4.1 billion balance. Similarly, the trust fund’s Mass Transit Account will begin FY Register for LoTrans 2012, Local Transportation Management Virtual Conference and Innovation Showcase featuring Best Practices in Work Zone Safety. September 18-20 at your computer. LoTrans ™ 2012
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ARTBA Washington Newsline
S E P T E M B E R 3 , 2 0 1 2
NewslineWashington
CBO Confirms Trust Fund Solvency Through FY 2014
Continued on page 3
Continued on page 2
Follow ARTBA:
Project Delivery Focus of Sept. 26 Webinar
Register for ARTBA’s 24th P3 in Transportation Conference, October 10-12
The Republican National Committee (RNC) August 28 officially approved a policy platform that recognizes the importance of an effective infrastructure network to the nation’s economy and the clear federal responsibility to make investments in this area. The document calls for a renewed state-federal partnership and the increased use of public-private partnerships to deliver
A D V E R T I S E M E N T
improvements. While the platform acknowledges the fiscal challenges facing the Highway Trust Fund, it does not provide recommendations for how to address shrinking federal user fee receipts.
The GOP platform follows many policy recommendations made by ARTBA President & CEO Pete Ruane during a July 30 meeting with the RNC platform committee.
ARTBA also submitted recommendations to the Democratic National Committee (DNC) which will adopt their official party platform during their convention September 4-6 in Charlotte, N.C. The DNC has not yet circulated a draft of their platform. We will keep you apprised of developments as they occur.
GOP Platform Recognizes Infrastructure’s Importance
The increased use of alternative project delivery methods such as Design-Build (DB) and Construction Manager/General Contractor (CMGC) by state and local transportation agencies requires contractors to beef-up their firms’ proposal and presentation development skills. MAP-21 encourages the use of “innovative project delivery methods,” and provides incentives and wider discretion
The Congressional Budget Office (CBO) released an updated forecast last week of the Highway Trust Fund’s revenue and expenditure outlook under the new two-year surface transportation program reauthorization, MAP-21. According to CBO, the trust fund’s Highway Account will begin FY 2013, MAP-21’s first year, with an $8.7 billion surplus and will end FY 2014 with a $4.1 billion balance. Similarly, the trust fund’s Mass Transit Account will begin FY
Register for LoTrans 2012, Local Transportation Management Virtual Conference and Innovation Showcase featuring Best Practices in Work Zone Safety. September 18-20 at your computer. LoTrans™ 2012
2 ARTBA Washington Newsline
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2012
The U.S. DOT and EPA Aug. 28 published a rule that will increase the Corporate Average Fuel Economy (CAFÉ) standards for cars and light trucks from 34.1 miles per gallon in 2016 to a fleet-wide average just under 50 mpg by 2025. The table above shows the potential $71B+ impact of these and earlier increases in CAFÉ standards on Highway Trust Fund (HTF) revenues through 2025.
New CAFÉ Standards Will Cost Highway Trust Fund
Fiscal Year
Estimated Annual HTF
Revenue loss
Revenue Loss as
Percent of Proj. HTF Revenues
Estimated Highway Account Revenue
loss
Estimated Transit
Account Revenue
loss2010 $343.4 0.9% $291.9 $51.52011 $550.3 1.4% $467.8 $82.62012 $885.9 2.2% $753.0 $132.92013 $1,279.2 3.1% $1,087.3 $191.92014 $1,711.5 4.1% $1,454.8 $256.72015 $2,213.4 5.2% $1,881.4 $332.02016 $2,787.4 6.5% $2,369.2 $418.12017 $3,406.5 7.9% $2,895.5 $511.02018 $4,062.5 9.4% $3,453.1 $609.42019 $4,729.3 10.9% $4,019.9 $709.42020 $5,543.0 12.6% $4,711.5 $831.42021 $6,462.1 14.5% $5,492.8 $969.32022 $7,638.6 16.9% $6,492.8 $1,145.82023 $8,790.1 19.2% $7,471.6 $1,318.52024 $10,054.4 21.6% $8,546.3 $1,508.22025 $11,438.7 24.3% $9,722.9 $1,715.8
Total $71,896.4 $61,111.9 $10,784.5
Table 1 - Impact of All CAFÉ Changes Enacted Since 2004(Millions of dollars)
CBO Confirms HTF Solvency Continued from page 1
2013 with $4.7 billion in reserves and will end FY 2014 with $500 million. As ARTBA has widely reported, however, CBO also found MAP-21’s short-term revenue package will run dry after FY 2014, and the trust fund will not be able to meet spending obligations for both the highway and mass transit programs at some time in FY 2015.
The CBO report emphasizes two key points: the Highway Trust Fund and federal surface transportation investment have been stabilized for the next two years; and the fund’s revenue picture must be addressed to prevent a repeat of the last reauthorization battle with threats of devastating cuts in highway and public transportation investment in FY 2015.
3ARTBA Washington Newsline
Products & Services
Continued from page 1
Connect with Industry Leaders: Advertise in ARTBA’s Digital Buyers Guide
Promote your firm’s products and services before a wide audience of material suppliers, manufacturers, design firms and contractors.
Contact ARTBA’s Peter Embrey for more information.
for the states to move forward with these types of projects.
ARTBA September 26 webinar, from 1- 4 p.m., Eastern, will cover the core skills needed to write winning CMGC and DB proposals. Participants will learn:• The fundamentals of proposal writing
and development of presentation materials;
• Tips and tricks to improve chances of winning these types of projects; and
• The “seven mortal sins of proposals” that decrease the chance of success.
Led by Dr. Douglas D. Gransberg, a nationally-recognized engineer and Iowa
Share your company or agency’s best photos!
The editorial staff of ARTBA’s “Transportation Builder” magazine is plan-ning its annual special section in the September/October issue featuring outstanding photos of transportation infrastructure projects from across the nation.
Send photos to ARTBA’s Jenny Ragone by Thursday, September 13. Here are the entry guidelines:
• Maximum two photos per member company.• At least 300 dpi as a TIF or JPG file. Do not send images over 10 MB.• Include captions, location, photographers name, and submitting
company.
9th Annual “Through the Lens” Transportation Design & Construction in Pictures
State University professor with over 35 years of experience in transportation infrastructure delivery, the information will be presented from the perspective of the project owner’s proposal evaluation team.
Dr. Gransberg literally helped write the book on alternative contracting methods. He is currently leading the effort to develop the “AASHTO Guidelines for CMGC Project Delivery” and “Guidebook for Alternative Quality Management.” He is also co-author of the “AASHTO Guide for Design-Build Contracting.”
For a more comprehensive overview of DB and CMGC delivery methods, ARTBA’s “Transportation Builder Institute” will host a Project Delivery Academy from November 12-14 in Washington, D.C. This interactive
academy will provide a fundamental level of understanding about both delivery methods, and will include Dr. Gransberg and officials from the Federal Highway Administration. Contractors and other industry professionals who have “real-world” experience with these kinds of projects will also be on hand. Additional details on the program will be forthcoming soon.
Webinar registration is $300 for ARTBA members and $425 for non-members.
Contact ARTBA’s Brie Johnson for more information.
Project Delivery Webinar
4 ARTBA Washington Newsline
deemed to be in compliance with the Clean Air Actwhenfirstundertaken could be thrown out of compliance if new standards are approved, exposing project owners to costly, time-consuming litigation. View ARTBA’S comments.
Federal-Aid Roads Program Turns 100 President William Taft (R-Ohio) signed the Post Office Appropriations Act on August 24, 1912, which included $500,000 to assist states with improving post roads. Adjusted for inflation, $500,000 in 1912 dollars would equal about $11.5 million in 2012. The legislation paved the way for future bills, including the Federal-Aid Road Act of 1916, signed by President Woodrow Wilson (D-N.J.), which provided $75 million in federal funds for roads, or about $1.5 billion in today’s money.
Founded in 1902, ARTBA has been part of every major federal surface transportation bill in U.S. history and welcomes the federal aid highway program into the centenarian club!
Overheard“ ”
TRB Newsletter: Aug. 28 Highlighting new research, technologies, industry best practices and information resources available to the transportation design and construction industry.
A service of ARTBA’s multi-modal councils, it features current transportation developments making news across all modes and regions. Contact: Sara Jones to become a subscriber or visit www.artbamultimodal.org.
Fostering Innovation
MultimodalNews
Legislative & Regulatory News
“I’m still on a holy jihad to try to get Amtrak’s operations under control.”
House Transportation & Infrastructure Committee Chairman John Mica (R-Fla.) August 28.
“The Republican presidential candidate, Mitt Romney, has promised that, if elected, he would cut Amtrak’s $1.5 billion annual federal subsidy. That is no way to run a railroad, especially one whose popular East Coast route is vital to the region’s economic prosperity and, of course, to the state Mr. Romney served as governor. Mr. Romney, Mr. Christie and their Republican colleagues in Washington should be doing everything in their power to improve train service, not stand in the way.”
August 26 New York Times editorial, “The Amtrak Option.”
“So moving forward, what I want to make sure the American people understand is that investments in education, investments in basic science and research, an all-of-the-above American energy strategy, in making college more affordable, in rebuilding our infrastructure, our roads and our bridges and our ports and our airports — all those things that help make us grow are compatible with fiscal discipline as long as everybody is doing their fair share.”
President Barack Obama, September 10 issue of “Time” magazine
Industry News
Obama Administration Proposes New Fuel Economy StandardsThe EPA and the National Highway Traffic Safety Administration (NHTSA) August 28 released their final rule to increase the average fuel efficiency of cars and light duty trucks to 54.5 miles per gallon (mpg) by 2025. The proposal builds on prior fuel economy standards issued by the Obama Administration in November 2011. ARTBA has consistently urged the agencies to augment their regulations to compensate the Highway Trust Fund (HTF) for any projected dilution of motor fuel tax revenues resulting from decreased purchases. ARTBA’s analysis of the new regulation indicates the new standards could lead to the loss of more than $71 billion in HTF revenues over the next 15 years due to declining motor fuel purchases.
View ARTBA’s comments in their entirety.
ARTBA Cautions EPA on Environmental Justice Permitting StrategyARTBA urged the U.S. EPA August 27 to avoid increasing delays for transportation improvements when implementing a proposed strategy to include environmental justice considerations in permitting decisions. Specifically,EPA proposes to increase opportunities for public participation during the review process for applications, including permits for transportation projects. Instead of adding new requirements which could lengthen the review process, ARTBA urged the agency
to take note of the various public participation opportunities already provided in law. ARTBA also noted its recommendation is consistent with the principles of the recently-enacted MAP-21 surface transportation law which seeks to reduce project delivery timesthroughamoreefficientenvironmental review process. View ARTBA’s comments.
Don’t Impose Stricter Soot Standards, ARTBA says ARTBA submitted comments August 31 urging the EPA not pursue a recommendation to tighten federal Clean Air Act (CAA) for particulate matter (PM) or soot, as states and localities that do not meet the new standards could potentially lose federal highway funds as provided in the CAA. ARTBA explained EPA’s proposed regulation “creates a counterproductive cycle where new standards delay needed improvements to the nation’s highway and bridge network, which has already reached ‘critical mass’ in terms of being able to serve the needs of our citizens and economy.” ARTBA also said that existing projects
5ARTBA Washington Newsline
ARTBA Joins White House Discussion on Health and TransportationARTBA participated in an August 29 White House discussion on the impacts of transportation choices on public health. The roundtable, which included representatives of all modal administrations, focused on safety issues with a particular emphasis on pedestrian and cycling interests. Specifically, the topics centered around how transportation choices, such as biking and walking, can impact public health trends and how transportation policy can have an impact on how such choices are made.
ARTBA cautioned that biking and walking decisions are mainly local in nature and federal policies should focus on national priorities. Also, ARTBA noted that any discussion of new or alternative transportation should occur after Congress has developed a long-term solution to the Highway Trust Fund’s revenue challenges.
ARTBA will continue to be involved in this issue on behalf of the transportation design and
construction industry.
ARTBA News
Download a PDF copy of the digital “Washington Newsline.”
October 10 -12, 2012Renaissance Downtown Washington, D.C. Hotel
The ARTBA P3 Conference is the private infrastructure investment community’s premier opportunity to connect with hundreds of key decision makers, project sponsors, private sector finance execu-tives, consortium leaders and officials from all levels of government.
For more information, contact ARTBA P3 Division Manager Hank Webster at [email protected] or 202.289.4434.
24th Annual P3s in Transportation Conference
Re g i s te r : w w w. a r t b a p 3 . o rg
Other session topics:• Environmentalcompliance• Laborlaw• DBEcompliance• Insurancecoverage&alternative
projectdelivery• Riskmanagement&public-private
partnerships
These top construction law attorneys will be making presentations:• WilliamPenny,member,StitesHarbison• JamesM.Auslander,associate,Beveridge
&Diamond• LorraineD’Angelo,seniorvicepresident-ethics
andcompliance,DragadosUSA• MattDeVries,attorney,Stites&Harbison• NealSweeney,partner,KilpatrickTownsend• ChrisAnzidei,LawOfficesofChristopher
Anzidei,PLLC
Past attendees: $495 • ARTBA Members: $595 • Non-Members: $795
Up to 7.25 Professional Development Hours are available.
To register or for more information, contact ARTBA’s Sara Jones at 202.289.4434, ext. 211
October 24-25
Washington, D.C.
4th Annual Transportation Construction Law & Regulatory Forum
Thehistoricpolicyreforms,programconsolidationandenvironmentalimprovementsinthenewhighwayandtransitlaw—MAP-21—willresultinamyriadoflegalandregulatorychallengesrelatingtothedeliveryoftransportationimprovements.
ARTBA’s4th Annual Transportation Construction Law & Regulatory Forum,scheduledforOctober24-25attheassociation’sheadquarters,willincludespeakerswhowillhelpmakesureindustryprofessionalsarepreparedtomeetthesechallenges.FHWAChiefCounselFredR.Wagnerisconfirmedasthekeynotespeaker.
Special Focus on MAP-21
ARTBA is not liable for any information provided by instructors or attorneys during the forum. This forum is intended for general informational purposes only, and not as a substitute for particular advice from a qualified professional. No warranty is made regarding the forum.
(12-1:30 p.m., Eastern) Sept. 18 MAP-21: Impacts on city and county transportation agencies
FREE
R e g i s t r a t i o n : w w w . l o t r a n s v i r t u a l c o n f e r e n c e . o r g
Featuring
Best Practices in Work Zone Safety
Local Transportation Management Virtual Conference & Innovation Showcase
LoTrans™ 2012�
September 18-20 at your computer
Transportation Management• Bridgepreservation• Pavementinnovation• Tortliability&riskmanagement• FHWA’s“EveryDayCounts”• NegotiatingcontractswithA/Efirms• Environmentallegalissuesoverview• Utilityre-location• Maximizinglocalresourcesforsuccessfulfederal-aidprojects• Crisiscommunicationspreparation
Work Zone Safety• Speedmanagementinworkzones• Preventingrunoversandbackovers• Theartofmakingworkers&trafficcontroldevicesvisible• Towardszerodeaths—fromconcepttoreality:anoverview
ofeffortsfromaroundtheworld• “InternalTrafficControl”inworkzones• Makingworkers&equipmentvisible• Safetystrategiesforlocalandruralroads• BestpracticesfromleadingU.S.contractors
For more information, contact Carolyn Kramer at [email protected] or 202.289.4434
LIVE OPENING SESSION:
Other key sessions:
Other session topics:• Environmentalcompliance• Laborlaw• DBEcompliance• Insurancecoverage&alternative
projectdelivery• Riskmanagement&public-private
partnerships
These top construction law attorneys will be making presentations:• WilliamPenny,member,StitesHarbison• JamesM.Auslander,associate,Beveridge
&Diamond• LorraineD’Angelo,seniorvicepresident-ethics
andcompliance,DragadosUSA• MattDeVries,attorney,Stites&Harbison• NealSweeney,partner,KilpatrickTownsend• ChrisAnzidei,LawOfficesofChristopher
Anzidei,PLLC
Past attendees: $495 • ARTBA Members: $595 • Non-Members: $795
Up to 7.25 Professional Development Hours are available.
To register or for more information, contact ARTBA’s Sara Jones at 202.289.4434, ext. 211
October 24-25
Washington, D.C.
4th Annual Transportation Construction Law & Regulatory Forum
Thehistoricpolicyreforms,programconsolidationandenvironmentalimprovementsinthenewhighwayandtransitlaw—MAP-21—willresultinamyriadoflegalandregulatorychallengesrelatingtothedeliveryoftransportationimprovements.
ARTBA’s4th Annual Transportation Construction Law & Regulatory Forum,scheduledforOctober24-25attheassociation’sheadquarters,willincludespeakerswhowillhelpmakesureindustryprofessionalsarepreparedtomeetthesechallenges.FHWAChiefCounselFredR.Wagnerisconfirmedasthekeynotespeaker.
Special Focus on MAP-21
ARTBA is not liable for any information provided by instructors or attorneys during the forum. This forum is intended for general informational purposes only, and not as a substitute for particular advice from a qualified professional. No warranty is made regarding the forum.