Highway & Bridge Construction Market

UpdateAlison Premo Black, PhD

ARTBA Senior VP & Chief Economist

ARTBA Federal Issues ProgramMay 9, 2016

ARTBA Federal Legislative and

Regulatory UpdateNick Goldstein Vice President,

Regulatory and Legal Issues

November 7, 2019

Federal Agenda

• Appropriations

• Surface Reauthorization Bill

• Infrastructure Package

FY 2020 Appropriations

• Continuing Resolution at FY 2019 Levels through Nov. 21

• House Passed Highway Funding - $48.1 Billion– $1.75 billion above FAST Act Authorized Levels– $400 million less than FY 2019

• Senate Passed Highway Funding - $49.05• $2.7 billion above FAST Act Authorized Levels• $550 million above FY 2019

Federal Highway Program Obligation Limitation Under FAST Act, Annual Appropriations and Senate ATIA Proposal

$48.3 $49.4 $49.1 to $50.1

$40.3 $42.4 $43.3 $44.2 $45.3 $46.4

$54.4 $55.5 $56.7 $57.9 $59.1

$0

$10

$20

$30

$40

$50

$60

$70

FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 25

In b

illion

s $

Additional Funding Through Appropriations Short-Term Extensions and Funding

Source: FHWA final notices for annual highway program obligations.

Reauthorization & FAST Act

Senate ATIA Proposal

Source: ARTBA analysis of FHWA Highway Statistics data, total ten year average 2006-2015 from tables SF-1 and SF-2. The percent is the ratio of federal aid reimbursements to the state and total state capital outlays and is indicative of the importance of the federal aid program to state capital spending for highways and bridges. Does not include local capital spending. Federal highway reimbursements are primarily used for capital outlays, including construction, right of way and engineering, but are also used for debt service for GARVEE bonds.

* States that have issued GARVEE bonds before 2014.

81%*

34%

52%

63%*

68%*

91%*

72%

58%

61%*

74%*

86%*

61%*

70%

42%

49%

57%*

34%

65%

56%

71%

51%

39%

42%

63%

42%*

68%

65%*

71%*

58%*

49%

44%

71%

47%*

71%*

36%

49%*

60%*

60%*

43%

HI80%

78%

VT80%

CT67%

RI97%*

DE48%*

NJ28%*

MD41%*

DC54%*

NH52%*

50 to 69% of state highway & bridge capital outlays

MA41%

51%

Over 69% of state highway & bridge capital outlays

28 to 49% of state highway & bridge capital outlays

Federal funds, on average, provide 51% of annual State DOT capital outlays for highway & bridge projects

ARTBA Reauthorization Task Force

Senate Environment & Public Works Committee

America’s Transportation Infrastructure Act (ATIA)

Federal Highway Program Obligation Limitation Under FAST Act, Annual Appropriations and Senate ATIA Proposal

$48.3 $49.4 $49.1 to $50.1

$40.3 $42.4 $43.3 $44.2 $45.3 $46.4

$54.4 $55.5 $56.7 $57.9 $59.1

$0

$10

$20

$30

$40

$50

$60

$70

FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 25

In b

illion

s $

Additional Funding Through Appropriations Short-Term Extensions and Funding

Source: FHWA final notices for annual highway program obligations.

Reauthorization & FAST Act

Senate ATIA Proposal

$52.0 $53.0 $55.0 $56.0 $57.0 $59.0 $59.0 $60.0 $62.0 $63.0 $64.0

$41.0 $41.0$44.0 $44.0 $42.0 $42.0 $42.0 $42.0 $42.0 $42.0 $41.0

$15.0$18.0 $20.0 $21.0 $23.0

$0

$10

$20

$30

$40

$50

$60

$70

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Billi

ons o

f dol

lars

Total HTF outlays Proj. HTF revenues Shortfall after FAST Act transfers spent

Source: Congressional Budget Office Highway Trust Fund baseline, May 2019

Total may not add up due to rounding.

The Highway Trust Fund Revenue Crisis Will Return

Senate Finance Committee

• Oversees tax title of all transportation legislation

• Staff currently working on potential revenue solutions now

Reauthorization or Infrastructure Package?

• House Transportation & Infrastructure Committee

• House Ways & Means Committee

• Trump Administration

• Recission

Regulatory Update

Regulatory Reform Moves Ahead

• Revisions of major regulations

• New executive orders

• Must get done now to avoid CRA and defend in court

• Multiple ARTBA priorities addressed

Proprietary Products Rule Repealed

• Major regulatory victory

• Rule enacted in 1912, repealed in 2019

• Good for market, safety, and innovation

• Not done – ARTBA Task Force, MUTCD

WOTUS Rule Repealed

• Fulfills campaign promise made by President Trump

• Long-time ARTBA regulatory goal

• Replacement rule is on the way (expected by end of Dec.)

• Still ongoing litigation

Endangered Species Act Reforms

• Revised “critical habitat” process

• Differentiates between where species is and might be

• Fixes problems highlighted by long-eared bat saga

• ARTBA reauthorization task force priority

Hours of Service Rules

• Short haul exemption expanded from 100 to 150 air miles

• Nod driving activities can satisfy rest break requirement

• Workplace reporting issue could be addressed

• Comment period closed October 21, rule being finalized

More Work on the Silica Rule

• OSHA Information Request on “Table 1”

• Inclusion on “Table 1” makes compliance easier

• “Table 1” lists specific activities, what is needed for compliance

• ARTBA, industry allies recommended expanding “Table 1”

DOT-Specific Reforms

• Guidance review – ARTBA comments highlighted DBE, Buy America and fiscal constraint (which was addressed in ATIA)

• Page limits on EIS, EA

• Moving ahead on “One Federal Decision”

What Happens in California…

• SAFE rule would put CA out of compliance with Clean Air Act

• Overdue SIPs lead to threatened highway finding

• ARTBA working for a CA “grace period”

• Transportation conformity needs to be reformed!

Other Issues

• EEOC reconsidering increased salary data requirements

• Major NEPA reforms from CEQ (at OMB now)

• MUTCD to be reopened

• Expect more agency activity in 2020

Questions?

Nick Goldsteinngoldstein@artba.org

(202) 683-1005