Recently, the members of the Congressional Transportation
Conference Committee agreed on a bicameral long term transportation
reauthorization bill. House GOP leaders now have until
Saturday at midnight to approve the bill prior to the expiration of
the current financing measure. The two year bill, which would
provide $8.4 billion in funding each year, is similar in structure
to a bipartisan bill passed by the Senate earlier this
year. Industry leaders have been particularly vocal in
encouraging the passage of a multi-year bill as another short-term
extension would leave many projects around the country in
jeopardy. Additionally, the transportation legislation will
include a one-year freeze for government subsidized student loan
rates. Off the hill, the TSA allows an additional airport to
hire private screeners and states continue to look for alternative
solutions to meet infrastructure needs in a difficult economic
climate.
On the Hill
Early this morning the conference committee released a new long
term surface transportation bill. The bill (H.R. 4348) represents the first agreement on
long-term transportation funding legislation since 2005.
Transportation Committee Chairman John Mica (R-Fla.) said that this
"tentative agreement establishes federal
highway, transit and highway safety policy and keeps programs at
current funding levels through the end of fiscal year 2014. Unlike
the last transportation bill, which contained over 6,300 earmarks,
this bill doesn't include any earmarks. This bill also does not
increase taxes." Funding has been extended nine times
over an almost four-year period since the expiration of the last
federal highway bill. The agreement came together when
Republicans agreed to drop controversial provisions from the
legislation, such as approval for the Keystone XL pipeline and the
blocking of government regulation of coal ash. In return, Democrats gave up on $1.4 billion for conservation
and agreed to allow states more leeway in how they use money that
was once mandated for landscaping, bike improvements and pedestrian
walkways.
Capping off a particularly productive week for Congress, Senator
Kyl (R-Ariz.) has said legislators agreed to put a one-year freeze
on government subsidized student loan rates. It is believed the transportation and student loan
bills may combined and presented and voted on as a
package. If an agreement was not reached, federal
Stafford student loans would have doubled on July 1.
Elsewhere, the House is continuing work on the fiscal 2013
Transportation, Housing and Urban Development and Related Agencies
appropriations bill. A vote on the final bill is expected by
the end of the week. It is possible that certain levels in
the appropriations bill will change based on the authorization bill
being worked out by the conference committee.
According to Greg DiLoreto, the president-elect of the American
Society of Civil Engineers (ASCE), U.S. infrastructure projects will probably keep
their near-failing grade with the ASCE issues its next report
on U.S. public facilities in 2013. The current grade for our
country's infrastructure from the ASCE is a
"D".
At the Agencies
On June 22, Transportation Secretary LaHood announced that 47 transportation projects in 34 states and D.C.
will receive a total of almost $500 million from the U.S.
Department of Transportation's TIGER (Transportation Investment
Generating Economic Recovery) 2012 program. Applications for
this most recent round of grants totaled $10.2 billion, far
exceeding the $500 million set aside for the program.
On June 21 the Senate Commerce Committee questioned acting
Federal Aviation Administration (FAA) Administrator, Michael
Huerta, who was nominated to the position by President
Obama. The hearing included many questions regarding
FAA's delayed safety rules and overwhelming number of
whistleblower complaints. Unlike other high-level U.S. political
appointees, who serve only as long as the president who nominated
them is in office, the FAA job has a five-year term.
The Transportation Security Administration (TSA) has approved private airport security screeners
for Orlando's Sanford International Airport. A
program allowing for airports to hire private security screeners
was included in the $59 billion FAA Authorization bill approved
earlier this year.
Earlier this month, U.S. Transportation Secretary Ray LaHood
awarded $37.5 million to the King County Department of
Transportation to build new bus rapid transit lines as part of
greater-Seattle's new six corridor rapid transit system.
The new funding comes from the Federal Transit
Administration's Bus and Bus Facilities Grant
Program.
In the States
Florida: On June 14 Florida Governor Rick Scott held a ceremonial bill signing at the Port of Miamifor a package of transportation bills totaling more than $450
million and enabling the bonding of another $450 million.
Florida's 14 seaports handled nearly $149 billion worth of
goods in 2011 – 50.4 percent of which came from South and
Central American – and it is expected that this number
will rise as a result of the widening of the Panama Canal.
$60 million is slated to go directly toward improving the ports
while the majority of the funding is to improve Florida's
roadways.
New Jersey:
Although Christie's original transportation plan called for
a reduction in borrowing, due to budget shortfalls –
partly caused by a recently instituted tax cut – New
Jersey is planning on borrowing even more in 2013 than it did in
2012. Assembly Democrats believe it is fiscally irresponsible
to borrow money to pay for a tax cut the state might not be able to
afford. Even if the bill is ultimately passed, it would put
more pressure on the state's Transportation Trust Fund, which
has not been able to cover yearly payments on its existing
debt.
New Jersey/Pennsylvania: New Jersey Transit has approved a rapid-transit
bus route to connect heavily traveled southern New Jersey roads
with downtown Philadelphia. The $46 million project would
let buses travel on highway shoulder lanes and the median for part
of the trip. The route could be in service as soon as
2020.
New York:
Governor Andrew Cuomo announced that $4.4 million
has been awarded to 10 companies, municipalities, and other
entities to enable more than 325 new electric-vehicle (EV) charging
stations to be installed across New York State. New York
State's electric-vehicle charging stations are supported by a
joint effort by the New York State Energy Research and Development
Authority's Electric Vehicle Supply Equipment Demonstration
Program and the U.S. Department of Energy. New York's
transportation sector has considerable potential for energy
efficiency. Transportation makes up about three-fourths of the
state's oil consumption, and nearly 40 percent of the
state's greenhouse gas emissions.
Last week New York City's Department of Transportation announced a plan to open bidding for the
management of 80,800 parking spots across all five boroughs.
While some critics are already drawing parallels to
the disastrous sale of Chicago's parking meters in 2008, New
York City intends to retain the power to set rates and enforce
penalties. Further differentiating the plan from the Chicago
plan is that NYC's objective is not to structure an upfront
payment. In Chicago, it is estimated that motorists may pay a
Morgan Stanley-led partnership at least $11.6
billion to park at city meters over the next 75 years, 10 times
what former Mayor Richard Daley got when he leased the system in
2008. NYCDOT's request for qualifications is open
through July 31.
Texas: Texas State Highway 130, which is currently
under construction and will run between San Antonio and Austin, may become the first U.S. road to post a speed
limit of 85-mph. Texas passed a law last year allowing
speed limits of up to 85 mph on newly constructed highways deemed
safe enough for such high speeds. Texas and Utah are the only
states that even allow speed limits of 80-mph.
Virginia: Governor Bob McDonnell has recently recommitted to a series of
public-private partnership projects, including the Hampton
Roads Bridge-Tunnel, Interstate 64 on the Peninsula, Interstate 95,
and possibly the Port of Virginia. McDonnell's decision
to rely so heavily on the private sector stems from frustration
with the state's legislature. The governor of Virginia
has the power to circumvent the legislature pursuant to the Public-Private Transportation Act of 1995,
which allows private entities to enter into agreements to
construct, improve, maintain and operate transportation facilities.
All in all, there are eight projects that are designated with
"candidate" status for public-private partnerships and an
additional 14 in the "conceptual" phase. Virginia is currently seeking public comment on
these P3 projects.
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