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MN/DOT—ACEC/MN Annual Conference: Partnering for the Future of Transportation

MN/DOT—ACEC/MN Annual Conference: Partnering for the Future of Transportation. March 2, 2010 111 th Congress-Federal Update Dennis McGrann, Federal Transportation and Infrastructure Group, Washington, DC. “Laws are like sausages, it is better not to see them being made” -Otto von Bismarck .

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MN/DOT—ACEC/MN Annual Conference: Partnering for the Future of Transportation

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  1. MN/DOT—ACEC/MN Annual Conference: Partnering for the Future of Transportation March 2, 2010 111thCongress-Federal Update Dennis McGrann, Federal Transportation and Infrastructure Group, Washington, DC

  2. “Laws are like sausages, it is better not to see them being made” -Otto von Bismarck

  3. United States Congress • Senate: 57 Democrats, 41 Republicans, 2 Independents • House of Representatives: 255 Democrats, 178 Republicans, 2 vacancies (FL-19CD & PA-12CD) • 16 Democrats up for re-election in November 2010 • 18 Republicans up for re-election in November 2010

  4. Minnesota Congressional Delegation: Committee Assignments

  5. Senator Klobuchar’s Committees“Senate Committee on Commerce, Science and Transportation”

  6. Senator Klobuchar’s Committees “Committee on Environment and Public Works”

  7. Minnesota Congressional Delegation: Committee Assignments

  8. Congressman Walz’s Committee “Transportation and Infrastructure”

  9. Minnesota Congressional Delegation: Committee Assignments

  10. Congresswoman McCollum Committee“Appropriations”

  11. Minnesota Congressional Delegation: Committee Assignments

  12. Congressman Oberstar’s Committee“House Transportation and Infrastructure Committee”

  13. Current Federal Funding Streams

  14. Sources of Federal Transportation Funding • Annual Appropriations Legislation • Authorization Legislation • Transportation (SAFETEA-LU) • Federal Aviation Administration (FAA) • Federal Railroad Administration (FRA) • Water Resources Development Act (WRDA ) • President’s Budget • JOBS Legislation

  15. Appropriations Legislation • All twelve FY 2010 Spending Bills were passed • Transportation Housing & Urban Development (THUD), Commerce-Justice-Science, Financial Services, Labor Health & Human Services, Military Construction, Veterans Affairs, and State & Foreign Operations were passed in a consolidated measure, also known as the Omnibus • Passed into Law, December 16, 2009 • The FY 2011Appropriations process has begun. • House Committee deadline March 19th • Senate Pending

  16. Appropriations The legislative path of an appropriations bill in either the House or Senate generally looks like this: 1. Hearings The subcommittee listens to constituent concerns and the Administration’s priorities 2. Introduction-The “Mark” The subcommittee chair writes the bill and introduces it to Congress 3. The “Mark-up” Subcommittee members work on the bill to make it reflect their priorities. They also draft report language, which accompanies the appropriations bill, explaining priorities and giving direction to federal agencies 4. Committee votes The subcommittee votes on the final proposal, and passes it to the full committee. The full committee can also make changes before voting and passing the bill for action on the House or Senate floor 5. Floor vote The bill is considered on the floor of the House or Senate 6. Conference House and Senate members are appointed to aconference committee to iron out differences between theHouse and Senate versions of the bill 7. Final passage The House and Senate take action on the final bill coming out of conference 8. Presidential signature The bill is presented to the President. If he signs it, it becomes law. If he vetoes it, a two-thirds vote of the House and Senate is needed to override the veto. Otherwise, Congress must address the President’s concerns

  17. Appropriations: FY 2010 TRANSPORTATION, HOUSINGAND URBAN DEVELOPMENT APPROPRIATIONS Priorities in the bill are focused on five major goals: • Investing in our nation’s transportation infrastructure • Providing assistance to vulnerable populations • Revitalizing local communities by making sustainable investments • Addressing the transportation and housing needs of rural communities • Minimizing the number of people who lose their lives or are injured in their travels. Bill Overview: $122.1 billion- Budgetary Resources for Programs $977.4 million below President’s request $13.4 billion above the 2009 level (excluding the Recovery Act funding)

  18. Appropriations:FY 2010 TRANSPORTATION, HOUSINGAND URBAN DEVELOPMENT APPROPRIATIONS KEY INVESTMENTS TRANSPORTATION INFRASTRUCTURE • Highway Infrastructure: $41.8 billion • National Infrastructure Investment: $600 million • Federal Transit Administration: $10.73 billion, $397 million above the request and $602 million above 2009 • New Construction: $2 billion, $172.7 million above the request and $190.8 million above 2009 • Transit Formula Grants: $8.34 billion, matching the request and $82.6 million above 2009 • Capital and Preventive Maintenance Grants for WMATA: $150 million in new funding for grants to • Energy Efficiency and Greenhouse Gas Reduction Grants: $75 million • High Speed/Intercity Passenger Rail Grants: $2.5 billion, $1.5 billion above the request and $2.4 billion • above 2009 • Amtrak: $1.6 billion, $81.7 million above the request and $74.6 million above 2009 • Airport Modernization, Safety and Efficiency Grants: $3.5 billion • Modernizing Air Traffic Control: $2.9 billion, $11 million above the request and $194 million above 2009 • Essential Air Service (EAS): $200 million, $25 million above the request and $63.8 million above 2009 • Maritime Guaranteed Loan (Title XI) Program: $5 • Assistance to Small Shipyards: $15

  19. Appropriations:FY 2010 TRANSPORTATION, HOUSINGAND URBAN DEVELOPMENT APPROPRIATIONS KEY INVESTMENTS TRANSPORTATION SAFETY • National Transportation Safety Board (NTSB) Investigators: $98.1 million, $2.7 million above the request and $7.1 million above 2009, to • Highway Safety Programs: $872.8 million , $5.5 million above the request and $16.8 million above 2009 • Positive Train Control: $50 million • Aviation Safety Programs: $1.2 billion, $17.7 million above the request and $69.5 million above 2009 • Pipeline Safety: $105.2 million, matching the request and $12 million above 2009

  20. President’s Proposed Changes in Appropriations Process • “Earmarks” : President Obama announced his call to reduce Congressionally directed spending • Program Elimination: Obama’s fiscal 2011 budget proposal recommends terminating the Surface Transportation Priorities and the Rail Line Relocation Grant programs. • Under both programs, virtually all the funds are directed by individual lawmakers for specific projects. The administration contends that both programs duplicate other merit-based programs that distribute transportation funding. • For the current fiscal year, lawmakers distributed more than $293 million to fund 353 projects through the Surface Transportation Priorities program. Congress funded 27 projects costing almost $25 million through the Rail Line Relocation Grant program. • President Obama may face difficulty in removing the programs from the budget, as while both were proposed for termination in the president’s fiscal 2010 budget, lawmakers actually provide the funding

  21. The President’s Budget Projected budget timeline • Feb. 1, 2010: President Obama submits his fiscal 2011 budget request to Congress. • Feb. 2: Congressional committees begin hearings on president’s budget request. • April 15: Statutory deadline (though frequently missed) for Congress to complete its annual budget resolution. The resolution sets a limit on discretionary spending and may include instructions for a reconciliation bill. • May 15: The date after which the House may consider fiscal 2011 spending bills even if a final budget resolution has not been adopted. • July 3: Beginning of Congress’s Independence Day recess. This is the informal deadline that House leaders set for passing all 12 regular appropriations bills. • July 15: President submits his mid-session review of the budget to Congress, which includes revised deficit estimates. • Aug. 7: Beginning of the Senate’s summer recess. This is the Senate’s informal deadline for passing all 12 spending bills. • Mid-August: Congressional Budget Office issues updated budget projections. • Sept. 13: House and Senate return from summer recess with 18 days to negotiate their differences and clear ll appropriations bills before the new fiscal year begins. • Oct. 1: Fiscal 2011 begins. A continuing resolution would now be required to finance any agency whose appropriations bill has not been enacted.

  22. The President’s BudgetFY 2011 Transportation Budget • FY2011 Request: $78.8 billionFY2010 Enacted: $77.0 billion • $4 billion to create a National Infrastructure Innovation and Finance Fund • $530 million as part of the President’s Partnership for Sustainable Communities • $1.14 billion for the Next Generation Air Transportation System, a more than 30 percent increase from 2010 • $30 million to establish a Federal Transit Safety program • $1 billion for high-speed rail

  23. The President’s BudgetFY 2011 High-Priority Performance Goals • Reduce the rate of highway fatalities to 1.13 - 1.16 per 100 million vehicle miles traveled by the end of 2011 • Reduce the risk of accidents • Improve Rail Transit Industry Focus on Safety Vulnerabilities: • Improve State Safety Oversight programs’ compliance with existing requirements by the end of the third quarter of 2010. • Form a compliance advisory committee, in accordance with the Federal Advisory Committee Act, to provide input on potential future regulation by the end of 2010. • Complete at least three workshops and training on transit asset management, including a focus on safety critical assets by the end of 2010.

  24. President’s Transportation Budget in Minnesota Invest the Foundation of the Economy: Highways, Airports, and Infrastructure Key Budget Highlights: • Roads , highways, and airports improvements: $802.9 million • Modernize and expand clean, safe drinking water: $57.1 million • Create a National Infrastructure Investment Fund: $4 billion • Build America Bonds initiative,make permanent • Restoration work along the Upper Mississippi River: $21 million • Expand broadband deployment : $7.2 billion • Modernize the nation’s air traffic system: $1 billion • High-speed rail: $1 billion

  25. Transportation Authorization • Reauthorization of highway, transit, and safety programs under the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) expired September 30, 2009 • House and Senate passed two additional Continuing Resolutions (“CR”), which currently extend federal transportation programs through February 28, 2010.

  26. Transportation Authorization • House: $500 billion, six-year reauthorization bill (The Surface Transportation Extension Act (H.R. 3617 )- Oberstar’s Plan) • June 24th2009- the Subcommittee on Highways and Transit reported a Committee Print of this legislation to the full Committee on Transportation and Infrastructure. • Senate: 18-month extension of existing law (The Public Transportation Extension Act of 2009-President Obama Supports) • Progress: Passed in Environment of Public Works, Banking , Housing and Urban Affairs, and Commerce, Science and Transportation Committee • Original allocation expired Sept. 30, 2009 • Current CR expires February 28, 2010 • Next CR expires ____

  27. JOBS Legislation: JOBS FOR MAIN STREET ACT OF 2010 (H.R.2847) The House bill, HR2847 aims to support workers and the communities by stabilizing jobs through infrastructure and job investments. The bill redirects $75 billion in Troubled Asset Relief Program (TARP) savings from Wall Street to Main Street on December 16, 2009. Infrastructure Investment ($48.3 billion) • $27.5 billion for highway infrastructure investments. • $8.4 billion for public transportation, including $6.2 billion for urban and rural grants and $1.8 billion for repairs to subway, light rail and commuter rail systems. • $800 million for capital grants to Amtrak to repair and acquire equipment. • $2 billion for state and local clean-water programs. • $1 billion to build and rehabilitate low-income rental housing. • $1 billion to build and rehabilitate public housing Surface Transportation Extension • An extension through Sept. 30, 2010, of the authorization for highway, transit and other surface transportation programs. The bill would also put $20 billion into the Highway Trust Fund.

  28. JOBS Legislation: Hiring Incentives to Restore Employment (HIRE) Act – Draft Senate Companion The Senate Jobs Proposal is an $82.5 billion dollar proposal that plans on acquiring its funds through redirecting $75 billion dollars from the Troubled Asset Relief Program (TARP) and taking $7.5 billion dollars out of the Pension Funding Relief. The breakdown of where that money is going is shown below: Creating Jobs that Strengthen Infrastructure - $29 billion · Highways - $14 billion · Transit - $7.5 billion · Intercity Rail - $2.5 billion · Airports - $2 billion · Schools - $3 billion Highway Trust Fund. Extends through the end of FY 2010 and transfer $19.5 billion from the general fund to the highway fund. Senate Majority Leader Harry Reid (D-NEV) rejected the plan Feb. 11, 2010

  29. Jobs Legislation: Majority Leader Reid’s Jobs package • Key Provisions: • Highway Trust Fund Extension: extends existing highway programs, investing in infrastructure throughout the nation saving an estimated one million jobs • Schumer-Hatch Jobs Payroll Tax Exemption: offers an exemption from social security payroll taxes for every worker hired in 2010 that has been unemployed for at least 60 days.  There would also be an additional $1,000 income tax credit for every new employee retained for 52 weeks to be taken on the employer’s 2011 income tax return.   • Section 179 Expensing: helps small businesses grow by allowing them to write off more of their expenditures • Expanding Build America Bonds: allows state and local governments to borrow at lower costs to finance more infrastructure projects and put people to work. • The Senate passed a procedural motion on Feb. 22ndthat would get debate started and clear the way for the Senate to vote to approve the measure (the House-passed jobs bill (HR 2847) will serve as the vehicle for Reid’s package).

  30. The Future of Federal Transportation Policy

  31. Federal Transit AdministrationPolicy Change • Wednesday, January 13th Transportation Secretary Ray Lahood announced that the Federal Transit Administration will abolish the current practice of using the “Cost Effectiveness Index” as the major factor used when evaluating the validity of proposed transit projects across the country. Criteria include: • Environmental benefits • Economic development effects • Mobility increases • Land use plans • Cost and ridership estimates.

  32. Federal Transit Administration Policy Change Federal Transit Administrator Peter Rogoff recently mentioned the Central Corridor as a project that will likely be positively impacted by the policy Change: “He (Peter Rogoff) said he is troubled "from a civil rights perspective" that the Minnesota project may not include stations in black and Asian neighborhoods of St. Paul because doing so would mean the line wouldn't meet the cost-effectiveness index. The new policy "will allow that [train] service to do a better job of serving those communities.” -Minneapolis Star Tribune January 14, 2010

  33. The Livable Communities Act (S. 1619) Introduced by Senator Chris Dodd (D-CT) August 8, 2009 Intended to help communities plan for and create better and more affordable places to live, in part by promoting new transportation policies: Increase access to and utilization of sidewalks, bike paths, public transit as alternatives to cars. Preserve and enhance unique community characteristics Link land use and housing development with transportation policy

  34. Provisions of the Livable Communities Act Incentives to Plan for Livable Communities $400 million in competitive grants over four years for comprehensive regional planning. Funding to Implement Sustainable Development Projects $3.75 billion in competitive grants over three years for projects in regional plans. Partnering with Local Communities Ensures that the federal government is a supportive partner for communities’ planning and sustainable development efforts. Office of Sustainable Housing and Communities Establishes an office under HUD to coordinate federal policies that foster sustainable development.

  35. Future of High-speed Rail in America • Projected Total Investment: $62 Billion • ARRA: $8 billion • Transportation Appropriations Bill (HR 3288): $4 Billion • Oberstar’s Plan: $50 billion (Over six-years) • Remarks from Chairman Jim Oberstar (MN-08) • In the past 50 years, the federal government has invested nearly $1.3 trillion in our nation’s highways and over $473 billion in aviation, however since 1970 (creation of Amtrak) we have only invested $53 billion in passenger rail. • U.S. lags significantly behind the rest of the world when it comes to high speed rail • “This is an historic opportunity to create jobs, develop a domestic manufacturing base and provide an environmentally friendly and competitive transportation alternative to the traveling public”.

  36. Chairman Oberstar’s Transportation Plan Funding Summary: • $500 billion, six-year reauthorization bill • $337.4 billion highway program • $99.8 billion for public transit • $12.6 billion for highway and motor carrier safety • $50 billion for high speed rail

  37. Oberstar’s Plan Would… Policy Summary: • Simpler, More Streamlined Programs. Consolidates the current 108 programs, eliminating or combining 75 of them. • Dedicated Monies to Repairing Aging Roads and Bridges. Creates a substantial, dedicated funding stream for maintaining roads and bridges – the Critical Asset Investment Program – and would require transit agencies to show how they are maintaining their systems in a state of good repair. • Greater Local Control. More money to the metropolitan areas that have the thorniest transportation problems. • A Stronger Rural Voice. Rural areas get a bigger say in state-level transportation decision-making. • Transit New Starts Program. Eliminates the “cost effectiveness” index that makes reduced travel time the overriding criterion, streamlines project delivery. • Promotes Intermodal Planning. Gives substantial responsibility to a new Office of Intermodalism, which would integrate investments in multiple modes (promoting, for instance, simultaneous investment in a bus rapid transit route along a repaired highway.)

  38. Possible Transportation Funding Sources • Congestion Pricing • Infrastructure Bank • Increase Gas Tax • Private Activity Bonds • Tolls • Tax Credit Bonds • Public/Private Partnerships • Alternative Fuel Tax • Others

  39. St. Paul’s Union DepotA study of federal and local investment partnerships To date…. Chairman Oberstar secured $50 million for the Depot in the 2003 SAFETEA-LU Ramsey County has spent $36 in local Regional Rail levy The State has provided $4 million bonding Union Depot was selected by the USDOT to receive $35 million in Transportation Investment Generating Economic Recovery (TIGER Grants)

  40. Virginia “Hot Lanes” • Four new lanes (two in each direction) onI-495 from the Springfield Interchange to just north of the Dulles Toll Road – 14 miles • Tolls could be as high as $1.60/mile at peak hours ($22.40 total for one direction) • $2 billion in public-private partnership investment to remedy the 3rd worst congested metro area in the United States (After Los Angeles and Honolulu)

  41. Federal Advocacy StrategiesHow to Compete at a National Level for Funding Partnership building Build Congressional Relationships Build Coalitions Communication Congressional Meetings

  42. Federal Advocacy Strategies Building Congressional Relationships… • Communicate frequently with Member Offices • Be an accessible information source for your Member and Staff • Provide accurate, reliable and timely information and response to inquiries • Understand what motivates Members and Staff • Votes • Federal funding in their district • Do not under estimate the importance of your relationship and communication with Congressional Staff • Staff is your direct line to your Member • Your Member office can advocate on your behalf to Federal Agencies such as the FAA

  43. Federal Advocacy Strategies Coalition Building… Working with other groups and organization can leverage and strengthen your position to affect the appropriations process and federal policy • Work with national coalitions to network and build broad support for your cause and others like yours • Educate a broad range of people on goals and benefits of project • Work with all levels of municipal government, (ie; county, state legislature, governor) • Work with traditional and non-traditional allies towards a common goal

  44. Federal Advocacy Strategies Provide written communication on the requested project including: • General Background • State and local involvement • Previous funding • Clear explanation of the federal need/jurisdiction 5. Write YOUR Member, with copies to pertinent staff; relevant subcommittee chairs; local and collaborative stakeholders

  45. Federal Advocacy Strategies Congressional Meetings and Follow-up Frequent communication and follow-up with Members and staff is key to insuring your project remains on their list of priorities. • Follow up your written communications with phone call to confirm receipt • Schedule meetings in Member’s district offices to meet staff face-to-face • Make the effort to travel to Washington and visit your Members. Your time and investment will be noted

  46. Questions??? Federal Transportation & Infrastructure Group Washington, DC Dennis McGrann, Director of Federal Affairs (202) 544-9840

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