Senate Committee Begins to Set Stage on Transportation Bill, WSW Issues Detailed Alert to Clients

The Senate Environment and Public Works Committee (EPW) has released preliminary information on its blueprint for a two year, $109 billion reauthorization of SAFETEA-LU legislation that would fund highway, bridge, road and rail initiatives at current levels.  However, the bill would require the infusion of $12 billion from other sources outside the federal gas tax that have yet to be identified, raising questions about its near-term prospects.

Entitled “Moving Ahead for Progress in the 21st Century� (MAP-21), the bill attempts to give states some longer-term assurance of funding that would enable medium-term planning to occur without reducing funding from current levels.  The bill does not include funding for Member requested projects.  EPW will hold a hearing on the bill on Thursday to attempt to showcase support for the legislation, which business groups, such as the Chamber of Commerce, as well as highway construction and labor organizations are expected to embrace in order to avoid spending reductions for transportation.  A summary of the preliminary information on the bill is included below.

MAP-21 differs starkly from the House Transportation and Infrastructure (T&I) Committee’s blueprint, which provided a six year bill that was fully funded through gas tax revenue – albeit at declining levels due to lower receipts from the gas tax.  House T&I Committee Chairman John Mica (R-FL) has promoted his legislation as a realistic path forward given current and future budget constraints and criticized the Senate EPW Committee’s approach as failing to provide the long-term stability to states and the transportation structure that is needed to make good decisions about investment for the long run.

Outlook

The EPW bill is being advanced on a bipartisan basis by EPW Chairwoman Barbara Boxer (D-CA) and Ranking Member James Inhofe (R-OK) which could provide it a leg up as it winds its way through the legislative process.  However, given the $12 billion funding shortfall, progress on the bill is contingent on the Finance Committee finding additional funding as well as the Banking Committee acting on the transit title of the legislation, actions which are not expected to occur for the foreseeable future.

Beyond the fate of the Senate EPW bill, it is notable that since its announcement, the House T&I bill released by Chairman Mica has been criticized by T&I Democrats over low funding levels – a break from the bipartisan support the legislation has traditionally enjoyed.  This rift within the T&I Committee and between the House and Senate approaches indicates how difficult it may be to gain agreement on the legislation in the coming months.

WSW will be closely monitoring the Senate EPW hearing on MAP-21 tomorrow and tracking developments in the House and Senate in the weeks ahead to advise you on any opportunities that may arise as the bills move forward.

Preliminary Highlights of the Senate MAP-21 Bill

• 2-year, $109 billion bill
• Consolidates 87 programs under SAFETEA-LU to less than 30 programs
• Consolidates 7 highway programs into 5 programs as follows:
  1. National Highway Performance Program, which would encompass the current Interstate Maintenance program, National Highway System program, and part of the Highway Bridge program while providing new flexibility to states in the use of funds if they adequately maintain their Interstate highways and bridges.  Focuses funding on outcomes such as reduced fatalities, improving bridges, fixing roads and reducing congestion.
  2. Transportation Mobility Program, which combines existing programs on federal-aid highways and all bridges and tunnels, including a sub-allocation to metropolitan areas based on population.
  3. National Freight Program, which provides formula funding to states for projects to move freight on highways, including freight intermodal connectors.
  4. Congestion Mitigation and Air Quality Improvement Program, which provides funding for initiatives that reduce ozone, carbon monoxide, and particulate matter.
  5. Highway Safety Improvement Program, which would fund improvements on all public roads that reduce traffic fatalities and serious injuries.
• Creates the America Fast Forward program, which expands upon the Transportation Infrastructure Finance and Innovation Act (TIFIA) program that gives states expanded resources through federal credit assistance, particularly for projects financed through new tolling authority or other revenue streams.  Increases funding for the program from $121 million in SAFETEA-LU to $1 billion.
• Seeks to reduce project delivery time and costs by allowing for new contracting methods, alternative dispute resolution, early right-of-way acquisition, expedited procedures for projects with no significant environmental impact, and early coordination of multiple agencies to avoid delays with reviews later in the process.

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