IQ Spring 2012: The Conference Issue - (Page 6)

LegIsLatIve update// Surface Transportation Legislation Hits Congressional Traffic Jam By richard thomas the feder aL re authorIz atIoN of t he U.S. surface transportation program is the most important piece of legislation in the transportation world. It provides critical funding for all surface transportation programs and direction in carrying the programs out. Historically, the reauthorization bills spanned six years, enabling state and local governments to make long-term financial and planning decisions. The reauthorization bills were typically free of partisan politics because every reauthorization bill increased funding over its predecessor and contained new policy initiatives giving state departments of transportation more tools to deliver their projects. But, like its predecessor SAFETEA-LU, which expired Sept. 30, 2009, the bill is two years late. Partisan bickering has made getting any legislation passed extremely difficult, while the lack of funding increase has tempered the enthusiasm of many members of Congress. The Senate bill, Moving Ahead for Progress in the 21st Century (MAP-21), reauthorizes the federal aid program at the Congressional Budget Office’s baseline level equal to current funding levels, plus inflation for two fiscal years. It consolidates 90 programs into less than 30, eliminates earmarks, expedites project delivery and strengthens the Transportation Infrastructure Finance and Innovation Act (TIFIA). The House does not have a bill yet, only a proposal. Chairman John L. Mica, (R-Fla.), prefers a six-year bill to the Senate’s two-year plan, but has been unable to get his House colleagues to agree. There seems to be common ground between the Senate and House proposals: Both believe it is important to expedite transportation projects and find new ways to finance them. Historically, every reauthorization bill has expanded authority for the use of innovative project-delivery methods like design-build and public-private partnerships (P3s). Design-build originally started as an experimental program, limited to projects greater than $50 million. Now design-build is fully authorized, subject to limitations at the state level. P3 authority has expanded with each reauthorization bill. According to a 2012 Congressional Budget Office report, between 30 percent and 40 percent of all new limited-access highways built between 1996 and 2006 will be delivered using P3s and design-build. DBIA made expansion of innovative project delivery methods like design-build in the reauthorization bill a top legislative priority. The association was successful in the Senate. The Senate bill provides incentives for states to use innovative project delivery methods like design-build and construction manager-general contractor. The bill also dramatically increases TIFIA funds that are often the seed money for these projects. House leadership has also said it is committed to expanding innovative project delivery, but has yet to mark up its bill. Congress appears to be committed to more integration in the delivery of transportation projects. The real question is Congress’ commitment to delivering legislation. Transportation leaders in both the House and Senate believe they have the answer to delivering high-quality projects faster and more efficiently—the question is whether Congressional leadership will let them. rIcharD thoMaS IS vIcE prESIDEnt of aDvocacY anD EXtErnaL affaIrS at DBIa, WhErE hE ManaGES thE orGanIzatIon’S LoBBYInG anD aDvocacY EffortS. hE haS contrIBUtED to thE DESIGn-BUILD ManUaL of pr actIcE a nD thE a MErIca n WatEr WorK S aSSocIatIon’S nEWLY rELEaSED DESIGn-BUILD for WatEr-WaStEWatEr. 6 spring//2012 the quarterly publication of the design-build institute of america

Table of Contents for the Digital Edition of IQ Spring 2012: The Conference Issue

IQ Spring 2012: The Conference Issue