April 1, 2012
For daily news updates and Web-exclusive news items, visit the “AggBeat Online” section of our Web site at www.aggman.com
A federal transportation bill in place will provide some stability, but spending levels and timing are critical.
Despite the Feb. 23 decision by House Republicans to abandon their proposed change to delink transit funding from highway user fees, Speaker John Boehner (R-Ohio) publicly announced on March 8 that he plans to take up the Senate’s $109 bipartisan highway bill once it clears the upper chamber, according to a report in The Hill transportation blog (http://www.bit.ly/y8AB1b).
This decision came after his efforts to save a measure by his own party failed. “As I told the members [March 7], the current plan is to see what the Senate can produce and to bring their bill up,” Boehner said in a March 8 news conference.
The House had introduced H.R. 7 as a five-year bill, but it would be shortened since reclaiming highway user fees from mass transit was a major funding source for the bill.
The proposed funding source for mass transit, a change in the funding of federal pensions, was partially used to extend the payroll tax holiday leaving a gaping hole in the bill, according to the National Stone, Sand & Gravel Association (NSSGA).
Boehner favors a $260 billion multiyear bill that would be funded by revenue from oil and gas drilling, but his fellow GOP members disapprove of the funding level and are concerned about an estimate from the Congressional Budget Office that drilling revenues will produce finances less than Boehner hopes, according to The Hill.
At Aggregates Manager press time, the new length of the House bill is still unclear. However, rank-and-file House Republicans weren’t keen on passing a long-term transportation bill, and they aren’t much more supportive of a shorter-term measure, an 18-month extension that party leaders had suggested instead. This opposition took Boehner back to square one.
Boehner had put off House debate on the surface-transportation bill in late February when some Republicans called it too expensive and others opposed the ending of guaranteed funding for mass transit.
Until a federal transportation bill is passed, the transportation construction industry will most likely remain on life support. Despite pockets of activity and a handful of states with growing transportation programs — New Jersey, Texas, and North Carolina — the industry will most likely remain status quo, the American Road and Transportation Builders Chief Economist Alison Premo Black told Aggregates Manager in a private economic briefing. Even the states that have seen modest growth will level off, Black says.
Having a federal bill in place will provide some stability — even at lower spending levels — but it probably won’t move the market forward very much, Black says. “As general construction recovers, it will help,” she says. “The passage of a federal bill will have a psychological effect on progress, but we won’t see a market boost until the second year [after it has been passed].”
According to an NSSGA report, Boehner said on March 1 that a five-year highway bill “is the right way to go,” noting, “We ought to do this the right way. We’ve had five-year, six-year reauthorizations of the highway bill. I think it’s important for the states and for those who want to invest in this arena to have a broad horizon so they know where they’re going. And a five-year bill’s the best way to get there.”
Making Transportation Job No. 1
The NSSGA says that ads will appear in Washington, D.C., key states, and districts around the country telling Congress to “Make Transportation Job #1” and pass a highway and transit bill now.
The campaign kicked off with television ads running during the Sunday talk shows and will continue running for three weeks with cable, radio, and online components. Ads can be viewed at www.fasterbettersafer.org/home/ad-campaigns.html.
The ads were timed to run before the March 31 expiration of the latest extension of the current surface transportation bill — Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU).
“While there are significant differences between the packages, there is strong bipartisan momentum driving these efforts,” the NSSGA says in its legislative update, noting that the organization and its coalition partners will continue pushing the Senate and House to pass reauthorization bills and send it to a conference committee that will reconcile the differences.
The first official stop of “The Road Connection” kicked off in Washington, D.C., during the 2012 Associated Equipment Distributors (AED) Summit as part of a year-long national tour designed to bring about positive change in America’s transportation system.
The Road Connection is a campaign driven by KPI-JCI and Astec Mobile Screens and supported by industry organizations designed to spotlight the need for infrastructure funding and increase pressure on government to fund road construction.
Throughout 2012, KPI-JCI and Astec Mobile Screens plan to travel the highways and interstates to all corners of the nation and host and attend dealer stops, demo days, open houses, and industry tradeshows. The Road Connection truck was slated to first be on display at the AGG1 Aggregates Forum & Expo which was held in mid-March in Charlotte, N.C.
All nine justices on the U.S. Supreme Court have refused to widen the scope of the federal Clean Water Act (CWA).
In PPL Montana, LLC v. Montana, the Court unanimously declined to expand the definition of what is considered “navigable” under federal law, according to the American Road & Transportation Builders Association (ARTBA). The ruling removes a roadblock that could-have needlessly delayed transportation improvements.
ARTBA joined with eight other industry associations in filing a brief, urging the Court to overturn a lower-court holding that the entire span of three rivers in Montana was “navigable” because certain remote sections are used for recreational purposes.
For purposes of transportation development, once something is considered “navigable,” it is under federal control and subject to the permitting authority of the U.S. Environmental Protection Agency (EPA) and the Army Corps of Engineers (Corps).
An expanded definition of “navigability” could have resulted in a scenario where the EPA and Corps would have the option of exerting jurisdiction over roadside ditches, potentially adding years to an already expansive review and approval process for transportation infrastructure projects that are needed for increased mobility and improved safety.
The full text of the association’s brief can be found in the “current advocacy efforts” section of www.artba.org.
To get daily news updates, enter http://www.gettag.mobi into your smart phone browser and download the free app. Then scan this tag to access AggBeat Online and keep up-to-date on what’s happening in the aggregates industry.