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ORC Blog
Update on Transportation Bill
Written by Catherine Colan Muth, CEO
After more than 9 short term extensions and 31 months since the last transportation law expired, House and Senate conferees are meeting to begin working out differences between their two reauthorization bills. The Senate passed a two-year $109-billion bill in March. The House brings a three-month bill it cleared April 18, which has some significant non-highway/transit provisions attached, most notably a provision to speed approval of the Keystone XL oil pipeline. That isn't in the Senate version. The Senate version includes some changes to the Uniform Act that are intended to streamline the right of way process. Boxer said that the conferees need to strike a deal by early June if the hoped-for compromise bill is to be enacted by June 30, when the current stopgap authorization runs out.
The House passed a three month extension of the transportation bill through September 30, 2012. Now that both the House and Senate have a bill passed, the way is open for negotiations between the House and Senate for a long term bill. The House version contains language that would use the BP spill payments for five states. The Senate version includes language that would approve the Keystone XL Pipeline. It seems there is more interest in oil than highways in both bills. The Senate version also includes revisions to the Uniform Act intended to streamline the right of way process. An earlier House version, which did not pass, also included this language which would change the way relocation benefits are paid when land acquisition is required for a federally funded public works project.
TransCanada has submitted a new route for the Keystone XL Pipeline. The original route was over an aquifer in Nebraska that provides water to eight states. President Obama supports a fast track plan for the segment from Oklahoma to Texas, but had blocked the approval of the route over the aquifer in Nebraska.
The article reports that the American Society of Civil Engineers in its well-known Report Card for America’s Infrastructure gives the U.S. an overall grade of D and says there is a $2.2 trillion deficit -- the amount of money it would take in five years to bring the country’s public works up to acceptable levels. Much of this estimate is for simple maintenance.
Congress Extends Road Funds by 90 Days
Written by Catherine Colan Muth, CEO
Today Congress passed a 90 day extension of SAFETEA-LU, the ninth extension since September of 2009. Not what we hoped for, but better than it could have been . . .
ROW Streamlining Clauses in Proposed Transportation Bills
Written by Catherine Colan Muth, CEO
At the Federal Agency Update (FAU) in DC last week, FHWA announced that the Senate version of the transportation bill contains the following amendments to the Uniform Act and the House version contains similar language:
Increase RE expenses to $25,000
Increase Fixed payment to $40,000
180 day ownership reduced to 90 days
Owner-occupant max payment is $31,000
Tenant max payment is $7,200
Lead agency can make adjustments based on inflation, cost of living to these payments.
Business Relocation Retrospective Study
Written by Catherine Colan Muth, CEO
ORC assisted FHWA with a Business Relocation Expense Retrospective Study recently. These studies are used to make recommendations for changes to the law and regulations. The final study is posted on the FHWA website here
Senate Sends Transportation Bill to the House
Written by Catherine Colan Muth, CEO
The Senate passed a two year transportation bill today. Now we will have to wait and see what the House does.
Comparison of House and Senate Transportation Bills
Written by Catherine Colan Muth, CEO
In the February edition of Public Works Financing, Robert Poole compares the House and Senate version of a transportation re-authorization bill and points out many similarities. Both bills would let states make more choices about how to spend federal funds; both bills would no longer require a set proportion of a major highway program to be spent on “enhancements” line bike paths; neither bill provides funding for high speed rail; both would expand the TIFIA program; neither bill would create a national infrastructure bank; and neither is fully paid for.
He points out that the House’s proposal to fund the shortfall with revenue from oil and gas drilling would “violate the Budget Control Act provision that protects user-tax-supported trust funds from across-the-board federal spending cuts only if user-tax revenue constitutes at least 90% of a trust fund’s revenue.”
House Considers 30 Amendments
Written by Catherine Colan Muth, CEO
The 8th extension of SAFETEA-LU will expire March 31. The House is now considering some 30 proposed amendments, some of which are not related to transportation. Sadly, our elected officials represent only the special interests who fund their campaigns. They no longer consider or vote for what is good for the country.
Mayors Urge Adoption of Final Bipartisan Legislation
Written by Catherine Colan Muth, CEO
Two hundred US Mayors have signed a letter encouraging the passage of a long term transportation bill before the end of March. The letter states “If Congress does not address these challenges, the consequences for the nation could be devastating. . . . As mayors, we urge adoption of final bipartisan legislation that provides adequate funding, at least at current levels with an adjustment for inflation to help us invest in needed transportation infrastructure and preserves the fundamental elements of current law. As such, this explains why we so strongly oppose the pending House proposal to redirect existing federal gas tax commitments away from public transportation, undermining years of bipartisan support in Congress for balanced investment in our nation's highway and transit systems. . . .”
It looks like both the House and the Senate are now proposing a transportation bill that would be for just two years and include funding for transit. There are still many other issues to be worked out to reach agreement before the 8th extension of SAFETEA-LU expires on March 30.
Finally, a Bipartisan group of lawmakers has come up with a new idea for funding the shortfall in transportation funding: PoliticalNews.me reports on a proposed legislation known as Transportation Regional Infrastructure Project (TRIP) bonds. TRIP bonds would provide private investors a federal tax credit in lieu of interest to incentivize an investment of $50 billion over six years.
By leveraging readily available private capital, public transportation projects can go forward at a fraction of the cost to the federal government, the sponsors say. The plan, which is fully paid for within the Highway Funding bill, would provide each state with $1 billion to be used at local discretion for key infrastructure projects. The States would decide which projects would best serve their infrastructure needs.
Just days before the extension of FAA funding expires on February 17, the House and Senate have agreed on a 4-Year FAA bill. The bill will keep PFCs at the current $4.50 level. It is reported that AIP authorizations would total $13.5 billion over four years, or $3.35 billion a year which equals the 2012 AIR appropriation level.
House Speaker John Boehner (R-Ohio) is sponsoring the American Energy & Infrastructure Jobs Act, set to be H.R. 7 and promises to have it pass the House before the end of 2012. The bill proposes to fund infrastructure with fees on new oil revenues and would lift the ban on offshore areas and allow drilling in the Artic National Wildlife Refuge. In response to this plan, a report from the NRDC entitled the Energy Fact Sheet states “ If congressional Republicans are really serious about forcing the oil and gas industry to help foot America’s transportation bill they should favor cutting federal fossil fuel subsidies—and redirect the savings to invest in infrastructure. After all, tax breaks and loopholes for Big Oil will cost the federal treasury tens of billions over the next decade.”
An article in Progressive Railroading reports that Secretary of Transportation Ray LaHood has rolled out a plan for a streamlined process that would allow the FTA to focus more on economic development and other local needs when evaluating New Starts projects; and the American Public Transportation Association (APTA) President, Michael Melaniphy announced that APTA was one of more than 1000 businesses and labor groups that signed a letter asking Congress to make passing a long-term surface transportation bill its top priority this year. The letter states “Maintaining – and ideally increasing – federal funding for road, bridge, public transportation and safety investments can sustain and create jobs and economic activity in the short-term, and improve America’s export and travel infrastructure, offer new economic growth opportunities, and make the nation more competitive over the long-term.”
Written by Ted Pluta, VP, O. R. Colan Associates / ORC Training, LLC - NHI Instructor of Excellence Award Winner
Topic: This article will discuss the claiming of reestablishment expenses by a business owner for modifications and improvements to a replacement building he or she already owns.
The “DFW Connector” project (also known as the Tarrant County Funnel) extends for 14.4 miles through a highly developed metropolitan area. The current 8 mile segment will rebuild portions of 4 highways, 2 interchanges, and 5 bridges. The project is publicly funded, including $250 million subsidization from the American Recovery and Reinvestment Act (stimulus), so adherence to the project schedule is crucial. This project was the largest ARRA funded project in the United States.
ORC was hired by design-build consultant NorthGate Constructors (joint venture between Kiewit Texas Construction & Zachry Construction) to provide turnkey right-of-way services for the DFW Connector Project, located in the Dallas-Fort Worth area.
Written by Bob Merryman, Sr. VP, O. R. Colan Associates/ ORC Training, LLC
American Airlines sent me a card that says I have flown three million miles! I am not sure how that is possible, but I suppose they track it. So after spending too much time on lots of planes, sometimes it’s nice to drive to a project.
ORC does a substantial amount of work in the State of Illinois, which is just across the river from my hometown of St. Louis. Even the far ends of the State are easy to get to via a pleasant drive. The main route running through Illinois is Interstate 55 which crosses the Mississippi at St. Louis and then runs north to its terminus in Chicago. It is an easy, flat, enjoyable drive with lots to see along the way.
NHI has just published the 2012 “NHI Training in Action – Improving the Performance of the Transportation Industry Through Training” which contains an article on ORC Training's Ted Pluta as a four time winner of the Instructor of Excellence Award. Lisa Barnes and Bob Merryman were also award winners!
