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

March 2, 2010

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th

Congress-Federal Update

Dennis McGrann, Federal Transportation and Infrastructure Group, Washington, DC

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

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United States Congress

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Senate: 57 Democrats, 41 Republicans, 2 Independents House of Representatives: 255 Democrats, 178 Republicans, 2 vacancies (FL-19CD & PA-12CD)

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16 Democrats up for re-election in November 2010 18 Republicans up for re-election in November 2010

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Minnesota Congressional Delegation: Committee Assignments Senator Amy Klobuchar (D-MN)

•Committee on Commerce, Science and

Transportation

•Committee on Environment and Public

Works

•Committee on Agriculture, Nutrition and Forestry •Committee on Judiciary •Joint Economic Committee

Senator Al Franken (D-MN)

• Committee on Health, Education, Labor and Pensions • Committee on Indian Affairs • Committee on Judiciary • Special Committee on Aging 4

Senator Klobuchar’s Committees

“Senate Committee on Commerce, Science and Transportation” Committee Leadership • Senator John “Jay” Rockefeller IV (D-WV), Chairman • Senator Kathryn Ann Bailey “Kay” Hutchison (R-TX), Ranking Minority Member Committee Jurisdiction • Highway safety • Interstate Commerce • Regulations of interstate common carriers, including railroads, buses, trucks, vessels, pipelines, and civil aviations • Science, Engineering, and technology research and development and policy • Transportation • And similar subjects Klobuchar’s Subcommittee Membership •Competitiveness, Innovation, and Export Promotion, Chairman •Aviation Operations, Safety, and Security •Communications, Technology, and the Internet •Consumer Protection, Product Safety, and Insurance 5

Senator Klobuchar’s Committees “

Committee on Environment and Public Works” Committee Leadership • Senator Barbara Boxer (D-CA), Chairman • Senator James Inhofe (R-OK), Ranking Minority Member Committee Jurisdiction • Construction and maintenance of highways • Noise Pollution • Public works, bridges, and dams • Regional economic development • And similar subjects Klobuchar’s Subcommittee Membership • Children’s Health, Chairman • Superfund, Toxics and Environmental Health • Transportation and Infrastructure 6

Minnesota Congressional Delegation: Committee Assignments Congressman Tim Walz (D-MN-01) Congressman John Kline (R-MN-02)

• Committee on Transportation and

Infrastructure

• Committee on Agriculture • Committee on Veterans’ Affairs • Committee on Armed Services • Committee on Education and Labor, Ranking Minority Member

Congressman Erik Paulsen (R-MN-03)

• Committee of Financial Services 7

Congressman Walz’s Committee “

Transportation and Infrastructure”

Walz’s Subcommittee Membership

• Railroads, Pipelines, and Hazardous Materials, Vice Chair • Highways and Transit • Economic Development, Public Buildings and Emergency Management 8

Minnesota Congressional Delegation: Committee Assignments

Congresswoman Betty McCollum (D-MN-04) • Committee on Appropriations • Committee on Budget Congressman Keith Ellison (D-MN-05) • Committee on Financial Services • Committee on Foreign Affairs Congresswoman Michele Bachmann (R-MN-06) • Committee on Financial Services 9

Congresswoman McCollum Committee “ Appropriations”

Committee Leadership • Congressman David “Dave” Obey (D-WI), Chairman • Congressman Charles Jeremy “Jerry” Lewis, Ranking Minority Member Committee Jurisdiction • Appropriation of the revenue for the support of Government • Rescissions of appropriations contained in appropriations Acts • Transfer of unexpended balances • Bills and joint resolutions reported by other committees that provide new entitlement authority as defined by the Congressional Budget Act of1974 McCollum’s Subcommittee Membership • Labor, Health and Human Services, Education and Related Agencies • Legislative Branch • State, Foreign Operations, and Related Programs 10

Minnesota Congressional Delegation: Committee Assignments Congressman Collin Peterson (D-MN-07) • Committee on Agriculture, Chairman Congressman James Oberstar (D MN-08) • Committee on

Transportation and Infrastructure, Chairman

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Congressman Oberstar’s Committee

“House Transportation and Infrastructure Committee” Leadership • Congressman James “Jim” Oberstar (D-MN-08), Chairman • Congressman John Mica (R-FL), Ranking Minority Member Committee Jurisdiction • The construction or maintenance of roads and post roads • Related transportation and regulatory agencies except the transportation security administration • Roads and the safety thereof • Transportation including, civil aviation, railroads, water transportation, transportation safety, transportation infrastructure, transportation labor, and railroad retirement and unemployment • And similar subjects Oberstar’s Subcommittee Membership • Aviation, Ex Officio, Voting • Coast Guard and Maritime Transportation, Ex Officio, Voting • Economic Development, Public Buildings and Emergency Management, Ex Officio, Voting • Highways and Transit, Ex Officio, Voting • Railroads, Pipelines, and Hazardous Material, Ex Officio, Voting • Water Resources and Environment, Ex Officio, Voting 12

Current Federal Funding Streams

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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

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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 19 Senate Pending th 15

looks like this:

Appropriations

The legislative path of an appropriations bill in either the House or Senate generally

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

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 a conference committee to iron out differences between the House 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 concerns 16

Appropriations:

FY 2010 TRANSPORTATION, HOUSING AND URBAN DEVELOPMENT APPROPRIATIONS

Priorities in the bill are focused on five major goals: 1.

2.

3.

Investing in our nation’s transportation infrastructure Providing assistance to vulnerable populations Revitalizing local communities by making sustainable investments 4.

5.

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) 17

Appropriations:

FY 2010 TRANSPORTATION, HOUSING AND 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 18

Appropriations:

FY 2010 TRANSPORTATION, HOUSING AND 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 19

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 20

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.

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The President’s Budget FY 2011

Transportation Budget

      FY2011 Request: $78.8 billion FY2010 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 22

The President’s Budget FY 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. 23

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 24

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.

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Transportation Authorization

 House: $500 billion, six-year reauthorization bill ( The Surface Transportation Extension Act (H.R. 3617 )- Oberstar’s Plan) ◦ June 24 th 2009- 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 ____ 26

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.

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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 28

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. 22 serve as the vehicle for Reid’s package).

nd that 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 29

The Future of Federal Transportation Policy

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Federal Transit Administration Policy 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.

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 32

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

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.

 

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”.

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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 36

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.) 37

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 38

St. Paul’s Union Depot

A 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)

Virginia “Hot Lanes”

 Four new lanes (two in each direction) on I-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 3 rd worst congested metro area in the United States (After Los Angeles and Honolulu) 40

Federal Advocacy Strategies

How to Compete at a National Level for Funding

Partnership building

Build Congressional Relationships Build Coalitions Communication Congressional Meetings 41

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 42

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

1. Work with national coalitions to network and build broad support for your cause and others like yours 2. Educate a broad range of people on goals and benefits of project 3. Work with all levels of municipal government, (ie; county, state legislature, governor) 4. Work with traditional and non-traditional allies towards a common goal 43

Federal Advocacy Strategies

Provide written communication on the requested project including:

1. General Background 2. State and local involvement 3. Previous funding 4. Clear explanation of the federal need/jurisdiction 5. Write YOUR Member, with copies to pertinent staff; relevant subcommittee chairs; local and collaborative stakeholders 44

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

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1.

Follow up your written communications with phone call to confirm receipt 2.

Schedule meetings in Member’s district offices to meet staff face-to-face 3.

Make the effort to travel to Washington and visit your Members. Your time and investment will be noted 45

Questions???

Federal Transportation & Infrastructure Group Washington, DC

Dennis McGrann, Director of Federal Affairs

(202) 544-9840 46