TEA 21 REAUTHORIZATION
A September 30, 2003 expiration date is looming
for TEA 21 and Congress is faced with the reality that a short-term
extension will be necessary to avoid disruptions in the flow of federal
transportation dollars to the states. Conference
attendees heard from key staff persons representing both the House
Transportation and Infrastructure and the Senate Environment and Public
Works Committees that legislation proposing a 5 month extension of TEA 21
will be marked up by the respective bodies the latter half of the week of
September 15, 2003. The
short-term extension will then proceed to the floor of the House and Senate
sometime during the week of September 22, 2003.
The House is expected to pass a “clean” short-term
extension bill that makes no changes in the way the program is currently
operated and will distribute funding according to current formulas.
The Senate may consider changes that affect the current gasohol user
fees that would result in a gallon of gasohol providing the same amount of
revenue to the HTF as a gallon of gasoline.
The change would increase revenue to the Highway Trust Fund by about
$1.2 billion per year. If these provisions are included in the Senate bill, a
conference committee will be necessary to resolve differences posing a
significant threat to continuation of the highway construction program
beyond September 30, 2003.
The five month extension will allow Congress additional
time to hammer out major differences on issues standing in the way of
passing the massive six year reauthorization bill.
Congressional Staff informed attendees that much of the technical
program language has already been drafted.
Both bodies are expected to include significant streamlining
provisions to the highway title affecting environmental and other program
reviews that cause delay and increase project costs.
The greatest obstacle to overcome in the
reauthorization debate will be resolving differences in total spending.
Current TEA 21 spending levels equal $218 billion over six years with
$165 billion dedicated to highways. House
Chairman Don Young (R-AK) has put forth a six year proposal calling for
spending totaling $375 billion with roughly $300 billion earmarked to fund
highways. The Senate’s bill totals $311 billion with some $255
billion for highways. On the
low end of the spectrum is the Bush Administration’s SAFETEA bill
proposing total spending of $247 billion including $208 billion for
highways.
Conference attendees heard from a number of national
association experts that current Highway Trust Fund (HTF) revenues sustain
spending of only $204 billion for highways and $46 billion for transit.
Given this reality, the only way possible for the House and Senate to
achieve their proposed spending levels is to consider increases in user
fees. Options currently being
discussed include: 1) Increasing the federal gas tax (5 cents in the House
proposal); 2) Indexing the federal gas tax; 3) Changing the gasohol tax and
the ethanol production tax credit; and 4) Bonding/ leveraged financing.
All of these options will likely force a showdown with the White
House come early 2004 when the expected five month extension expires.
AGC members are strongly encouraged to register support for higher
TEA 21 funding levels with the Bush Administration.
ENVIRONMENTAL STREAMLINING
Significant streamlining of environmental
processes and regulations are being proposed for TEA 21 reauthorization.
Representatives of the Federal Highway Administration told conference
attendees the goal of the Bush Administration is to shrink the amount of
time it takes to complete a major project environmental impact statement (EIS)
from the current six years to three. Among
the many changes being proposed in the Administration’s SAFETEA
legislation are changes that would: 1) Limit lawsuits following the issuance
of a record of decision on an environmental impact statement to a 90 day
statute of limitations; 2) Give states more authority to advance acquire
right of way; 3) allow Governors to implement a dispute resolution process
when certain environmental impasses occur; and 4) Fund a federal
environmental research program so there is less chance environmental science
will be successfully challenged in court actions.
Graham Hill, General Counsel to the House
Transportation and Infrastructure Committee told attendees about the
specifics of Chairman Don Young’s (R-AK) Highway Streamlining Act (HR
5455). The bill proposes a host of significant changes to the
environmental review processes and regulations affecting highway projects.
The intent of the legislation is to streamline existing processes and
introduce more planning thereby limiting the ability of project opponents to
successfully use the courts to tie up projects. Many of these provisions are
expected to be included in the pending House TEA 21 reauthorization bill.
MINNESOTA
CONGRESSIONAL DELEGATION VISITS
Dave and Tim Worke took time to visit with members of
Minnesota’s Congressional Delegation and staff. AGC Minnesota members Brent and Harold Theisen, (Gridor
Constr., Inc. Plymouth) and Richard Thomas (Ames Construction Inc.,
Burnsville) joined them in several meetings.
The AGC delegation held meetings with Congressman John
Klein, Congressman James Oberstar, and Senator Mark Dayton.
Additional meetings were held with staff representatives of
Congressman Mark Kennedy and Senator Norm Coleman.
A full day was spent on the hill in discussions supporting the need
to enact a short-term extension of TEA 21 by September 30, 2003, and on the
need to quickly enact and fund at the highest levels the multi-year
successor legislation to TEA 21. Strong
support for significant funding increases over existing TEA 21 levels was
registered by Congressman James Oberstar and Senator Mark Dayton.
A meeting with Congressman Mark Kennedy’s staff
focused on his proposed FAST Act legislation – a bill that proposes to
allow tolls to be collected on new lane construction on Interstate Highways.
It has not yet been determined if the FAST proposal will be included
in the TEA 21 reauthorization.
Support for funding the Waste Water and Safe Drinking
Water Acts at the highest levels possible was also discussed with all
Congressmen and staff members.
Future meetings with Minnesota’s Congressional
Delegation are being planned to help elevate the profile and strengthen and
improve communications between AGC Minnesota member contractors, AGC
Minnesota staff, and our Washington representatives.
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