House Approves Additional $521 Million in Federal Highway Funds

The House of Representatives recently passed legislation to provide an additional $521 million in highway funding, which if passed by the Senate, would increase allocations for 37 states. The “hold harmless” funding is included as highway formula funds in the tax-extenders bill, HR 4213 - the American Jobs & Closing Tax Loopholes Act, to ensure no state loses highway funding as a result of a provision in the bill that amends the distribution formula for two highway categories, as required by the Hiring Incentives to Restore Employment (HIRE) Act, enacted in March. States that did not receive money from the two programs under the HIRE Act would receive additional funding. In addition, the bill includes an extension of the Build America Bonds, created by the American Recovery & Reinvestment Act of 2009, which subsidizes interest costs for bonds paid by state/local governments to finance infrastructure projects.

House Transportation & Infrastructure Committee Chairman James Oberstar, D- Minnesota, has been working for months to amend the way the HIRE Act distributes nearly $1 billion in funding for SAFETEA-LU’s Projects of National and Regional Significance and National Corridor Infrastructure Improvement Programs. This act mandates the distribution of the two programs’ Fiscal Year 2010 funding to 29 states that received discretionary funds under “SAFETEA-LU.”

The provisions in HR 4213 revise the distribution of funding so that every state receives a share of funds available under the programs. In addition, Oberstar said the highway funding provided in HR 4213 will provide thousands of jobs across the states in the construction sector.

The act also includes expansion of the Build America Bonds for two years, through 2012. The bonds extension is expected to cost the federal government $4 billion in interest subsidies over ten years.

The Senate is expected to consider the bill the week of June 7th.

New Congressional Report Concludes Implementation of Recovery Act’s Transportation and Infrastructure Programs Has Been Successful

A new report from the House Transportation and Infrastructure Committee finds that as of April 16, 2010, Federal, State and local agencies administering programs within the Committee’s jurisdiction have announced19,121 transportation and other infrastructure projects totaling nearly 98 percent of the infrastructure funding allocated by the $787 billion American Recovery and Reinvestment Act.

The 71-page report titled, The American Recovery and Reinvestment Act of 2009 Transportation and Infrastructure Provisions Implementation Status as of April 16, 2010, states that of the $64 billion provided for transportation and infrastructure programs under the Recovery Act, the Federal, State and local agencies administering programs within the Committee's jurisdiction have announced transportation and other infrastructure projects totaling almost $63 billion. Of the $38 billion available for highway, transit, and wastewater infrastructure formula program projects, $34.4 billion, or 91 percent, has been put out to bid on 17, 472 projects as of March 31, 2010. In addition, across the nation work has already begun on 13,796 projects totaling $28.5 billion, or 75 percent.

The report also points out that during the first year of implementation, Recovery Act projects created or sustained nearly 350,000 direct, on-project jobs. Furthermore, every Recovery Act dollar available under the Clean Water program is now under contract.

The Recovery Act was signed into law February 17, 2009.

To view the entire report, please go to tinyurl.com/HTIC050510.

Transportation Extension Enacted

President Obama March 18 signed into law legislation extending federal surface transportation programs through December 31, 2010. The Hiring Incentives to Restore Employment (HIRE) Act, HR 2847, whose centerpiece includes tax relief for businesses hiring new employees, also transfers $19.5 billion from the general fund to the Federal Highway Trust Fund to maintain its solvency through 2011. The Act repeals a rescission of unobligated highway program contract authority that was part of SAFETEA-LU and includes an expansion of the Build America Bonds program for state and local infrastructure.

The transportation extension is needed to allow Congress more time to complete work on a new authorization to succeed SAFETEA-LU, which expired on September 30, 2009.

Senate Approves Jobs Bill Extending SAFETEA-LU through December 31, 2010; President Expected to Sign Legislation into Law

The Senate March 17th gave final approval to a House-passed jobs bill that includes an extension of federal surface transportation programs through December 31, 2010. The President is expected to sign the legislation into law. The vote was 68-29.

The Hiring Incentives to Restore Employment (HIRE) Act, HR 2847, includes tax relief for businesses hiring new employees. It also transfers $19.5 billion from the general fund to the Federal Highway Trust Fund, projected to become insolvent in a few months, to repay interest foregone since 1998. Prior to that year, the Trust Fund earned interest on its balance. The legislation also repeals the rescission of unobligated highway program contract authority that was part of SAFETEA-LU and includes an expansion of the Build America Bonds program for state and local infrastructure.

The transportation extension is needed to allow Congress more time to complete work on a new authorization to succeed SAFETEA-LU, which expired on September 30, 2009. The latest extension ends March 28.

House Approves Jobs Bill Extending SAFETEA-LU Through December 2010

The House of Representatives March 4 approved a modified version of a Senate-passed jobs bill that includes an extension of federal surface transportation programs through December 31, 2010. The House approved the Hiring Incentives to Restore Employment (HIRE) Act, HR 2847, 217-201 after amending it to offset its cost. The vote sends the bill back to the Senate.

The legislation includes tax relief for businesses hiring new employees. For transportation programs, the bill transfers $19.5 billion from the general fund to the Federal Highway Trust Fund, projected to become insolvent in a few months, to repay interest foregone since 1998. Prior to that year, the Trust Fund earned interest on its balance. The legislation also repeals the rescission of unobligated highway program contract authority that was part of SAFETEA-LU and includes an expansion of the Build America Bonds program for state and local infrastructure.

The transportation extension is needed to allow Congress more time to complete work on a new authorization to succeed SAFETEA-LU, which expired on September 30, 2009. The latest extension ends March 28.

USDOT Announces TIGER Grants

The US Department of Transportation has announced the award of $1.5 billion in grants for 51 transportation projects under the TIGER (Transportation Investment Generating Economic Recovery) Discretionary Grant Program, authorized under the American Recovery and Reinvestment Act.

The TIGER Program was included in the Recovery Act to spur a national competition for innovative, multi-modal and multi-jurisdictional transportation projects that promise significant economic and environmental benefits to an entire metropolitan area, a region or the nation. Projects funded with the $1.5 billion allocated include improvements to roads, bridges, rail, ports, transit and intermodal facilities.

USDOT received proposals for more than 1400 projects totaling nearly $60 billion. A list of recipients is available at: http://www.dot.gov/documents/finaltigergrantinfo.pdf.

President Obama Unveils $3.8 Trillion Budget Proposal

The Obama Administration released a $3.8 trillion Fiscal Year (FY) 2011 budget proposal to Congress February 1. The plan includes $1.415 trillion in discretionary spending and projects an FY10 deficit of 1.56 trillion. It also includes policies to achieve $1.2 trillion deficit reduction over 10 years (excluding war savings), more than $300 billion in tax cuts over 10 years and $100 billion for immediate job-creating investments in infrastructure, clean energy and small business tax cuts.

Discretionary spending is broken into two categories: security and non-security spending. Security spending would increase by 5.2 percent to $719.2 billion, while non-security spending would drop by $5 billion, or 1.1 percent to $441.3 billion.

Congress has begun hearings on the proposed budget. Following is an overview of the budget’s proposals for various public works and infrastructure programs.

Transportation

The proposed budget includes $79 billion for the US Department of Transportation (DOT) and its programs, about a $2 billion increase over the current year.

· Recommends extending the current SAFETEA-LU authorization through March 2011. SAFETEA-LU, the federal surface transportation law, expired September 30, 2009. The budget states that during this extension period the Administration will work with Congress to reform surface transportation programs and put the system on a viable financing path. A temporary extension expires February 28.

· Proposes $4 billion to create an infrastructure bank. The National Infrastructure Innovation and Finance Fund would invest in projects of regional or national significance. Established as a new operational unit within DOT, the fund would provide resources for projects through, grants, loans or a blend of both and will leverage non-federal resources, including private capital.

· Proposes establishing a new $30 million Transit Safety Program. The Administration late last year proposed legislation to establish nationwide safety standards and for federal enforcement of those standards.

· Proposes $527 million for livable communities. As part of the Partnership for Sustainable Communities’ multi-agency initiative with the Environmental Protection Agency (EPA) and the Department of Housing and Urban Development (HUD), the funding will assist state and local governments to invest in transportation that helps advance sustainable development.

· Proposes $1 billion to sustain large-scale multi-year support for high-speed rail. The economic recovery act provided $8 billion for high speed rail.

· Proposes small increases for highway and transit funding. Highway funding would increase by about $200 million from $41.1 billion in FY10 to $41.3 billion in FY11. The funding includes $200 million for a competitive Livable Communities grant program. Transit funding would increase by about $70 million, from $10.73 billion in FY10 to $10.8 billion in FY11.

· Proposes $20 million to establish an Office of Livable Communities in the Office of the Secretary. The office would coordinate multimodal and interagency (HUD and EPA) livability efforts and lead DOT’s investment decisions that focus on livable communities.

· Proposes $1.14 billion, more than a 30 percent increase from 2010, for the Next Generation Air Transportation System, the Federal Aviation Administration’s long-term effort to improve safety, efficiency and capacity of the aviation system.

Environment

Environmental Protection Agency
The President proposed a budget of $10 billion for the Environmental Protection Agency, a three percent cut from FY 2010 enacted levels. The proposal trims the agency’s operating budget, water infrastructure loan programs and Superfund programs.

· Proposes $1.3 billion for the Superfund program to clean up contaminated sites.

· Proposes $215 million for the Brownfields program to clean up abandoned commercial and industrial sites.

· Proposes $27 million for the Healthy Communities initiative to address community water priorities, promote clean, green and healthy schools; improve air toxics monitoring in at risk communities and encourage sustainability by helping to ensure that policies and spending at the national level do not adversely affect the environment and public health or disproportionally harm disadvantaged communities.

· Proposes $43 million for efforts to address climate change and work toward a clean energy future, including implementing the greenhouse gas reporting rule; provide technical assistance to ensure that any permitting under the Clean Air Act will be manageable; perform regulatory work for the largest stationary sources of Greenhouse Gas (GHG) emissions; develop standards for mobile sources such as cars and trucks and continue research of carbon capture and sequestration technologies.

· Proposes $3.3 billion for water and wastewater infrastructure programs, down from $3.5 billion in FY 2010.

· Proposes $1.3 billion or a 14 percent increase in State Tribal Assistance Grants for clean air and water grants to states and tribes.

U.S. Army Corps of Engineers
The President’s budget proposal recommends a 10 percent cut to the Army Corps of Engineers’ budget for FY 2011. The Army Corps would receive $4.9 billion, down $5.4 billion from FY 2010.

· Proposes $2.4 billion for operating and maintaining existing projects.

· Proposes $15 million to expand a national database of federal levees.

· Proposes $10 million for a program to assess the effects of climate change on civil works projects.

· Proposes $1.7 billion for the construction budget.

· Proposes $30 million in funding for flood control and coastal emergencies.

· Proposes $193 million for agency regulatory program.

Homeland Security

The proposed budget includes $56.34 billion for the US Department of Homeland Security and its programs, which is a $1.13 billion or 2.68 percent increase.

· Proposes $2.36 billion for the National Protection and Programs Directorate, an increase of $402.7 million. The National Protection and Programs Directorate leads the protection and risk reduction for the Nation’s physical and virtual critical infrastructure and key resources from man-caused disasters, natural disasters and other catastrophic incidents.

· Proposes $10.5 billion, an increase of $48.7 million, for the Federal Emergency Management Agency.

· Proposes $1.95 billion for the Disaster Relief Fund, an increase of $0.35 billion. The Disaster Relief Fund provides a portion of the total federal response to victims in declared major disasters and emergencies.

· Proposes $4 billion for State and Local Programs, an increase of $985.3 million compared to FY 2010. These grants provide training, exercises and technical assistance to improve emergency planning, response and recovery efforts. Specific state and local grant programs received the following allocations:

o State Homeland Security Grants – $1.05 billion, an increase of $100 million.
o Regional Catastrophic Planning Grants – $35 million, an increase of $1 million.
o Emergency Management Performance Grants - $345 million, an increase of $5 million.
o Urban Area Security Initiative – $1.1 billion, an increase of $248 million.
o Transportation and Infrastructure Protection Grants – $600 million, an increase of $12 million.
o Citizen Corps, Interoperable Emergency Communications and Emergency Operations Centers did not receive and funding for FY 2011.

· Proposes $100 million for Pre-Disaster Mitigation Grants, a decrease of $135 million. Pre-Disaster Mitigation Grants provide program support and technical assistance to state, local and tribal governments to reduce the risks associated with disasters, support the national grant competition, and provide the required $500,000 per state allocation. Funds will support the development and enhancement of hazard mitigation plans and the implementation of pre-disaster mitigation projects.

· Proposes $169 million for the National Flood Insurance Fund, an increase of $23 million. The National Flood Insurance Fund provides necessary resources to operate the National Flood Insurance Program.

· Proposes $194 million for Flood Map Modernization, a decrease of $26 million. Flood Map Modernization funding will support the review and update of flood hazard data and maps to accurately reflect flood hazards and monitor the validity of published flood hazard information. This funding will support the review and update of flood hazard data and maps.