New
‘SAFETEA-LU’ plus 2004 funding brings $286.5 billion in guaranteed
aid through 2009
8/8/2005
...payments. "Were
not talking about philosophy here," says Boehlert. "Were
talking about trench warfare."
What opened the door to a deal
was adding $9 billion in highway authority to the pot. Although
the $9 billion is not guaranteed obligations, it counts in
rate-of-return calculations. In the end, it was enough to
give donors 91.5% in 2007 and their 92% goal in 2008 and 2009.
At the same time, donees won assurance of at least a 19% hike
in annual average highway funds over their TEA-21 totals (see
map).
"The bill probably wouldnt
have been passed had we held their toes to the fire about
getting our rate up to 95%," says Marsh Johnson, director
of Florida DOTs office of financial development. When
the donor-donee issue was settled, "thats when
the bill really started to move," says ARTBAs Bauer.
Sealing the deal were hundreds
of earmarked projects requested by hundreds of legislators.
SAFETEA-LUs highway title has 25 Projects of National
and Regional Significance, 33 National Corridor Infrastructure
Improvement Projects, 465 Transportation Improvements and
5,130 High Priority Projects. Keith Ashdown, vice president
with advocacy group Taxpayers for Common Sense, says funding
for all projects and other earmarks exceeds $23 billion. "This
bill is a bipartisan porkfest with both sides feeding equally
from the taxpayer trough," Ashdown says.
Alaska did particularly well. Ashdown
counts 119 earmarks, totaling $941 million, trailing California,
Illinois and New York. Alaskas biggest items are $181
million for the Knik Arm Bridge near Anchorage and $175 million
for a planned bridge linking Ketchikan with sparsely populated
Gravina Island. Criticism hardly registered in Congress: The
Senate passed the bill 91-4 and the House 412-8.
Although the bills focus
was money, industry officials say there are important policy
changes. Some focus on "streamlining" of projects
environmental reviews, to speed construction. For example,
it says legal challenges to federal highway and transit approvals
must be filed within 180 days, instead of six years now. Californias
DOT will be included in a pilot program to expedite permitting.
"Anything we can add to the quiver of tools for local
control can only help," says Ken De Crecenzo, Caltrans
federal relations representative.
Tina Shaw, Texas DOTs federal
affairs manager, points to provisions dealing with project
delivery, including greater discretion in authority to charge
tolls on Interstates, and more flexibility in using design-build
contracting.
A provision authorizing $15 billion
in tax-exempt, private transportation bonds will spark more
private investment in highway and intermodal projects, says
Karen Hedlund, a partner in Arlington, Va., with the law firm
Nossaman Guthner Knox Elliott LLP. Hedlund says it "essentially
levels the playing field between private and public investments
in infrastructure." To qualify, the projects also must
be receiving federal funding and be subject to Buy America,
prevailing-wage and other requirements.
Looking ahead, some road and transit
warriors who survived this bill say its successor will be
radically different. The legislation "definitely sets
the stage for the next reauthorization where hopefully we
can increase the revenue going into the trust fund one way
or another," says Jeffrey D. Shoaf, Associated General
Contractors senior executive director for governmental
and public affairs.
The new law establishes a National
Surface Transportation Policy and Revenue Study Commission
to look at system needs, short-term trust fund revenue sources
and long-range alternatives to the fuel tax. Says HNTBs
Riley: "I honestly think this will be the last fully
gas-tax-funded highway bill. By the time we get to the next
one, it will be based on user fees and alternative financing."
Largest Highway
Projects in SAFETEA-LU
Project
State
Funding
Authorized
Centennial Corridor Loop, Bakersfield
Calif.
330
Mississippi River bridge, related
roads
Ill., Mo.
239*
Alaska Way Viaduct and sea
wall, replacement
Wash.
220*
Knik Arm Bridge
Alaska
181*
Ketchikan-Gravina bridge
Alaska
175*
I-5 Bridge repair, replacement,
related work
Ore.
160
I-80 to I-88 North-south connector,
construction
Ill.
152
I-49 segment: Ark. state line
to I-220 in Shreveport
La.
150
Bakersfield beltway system
Calif.
140
OHare Airport
BypassElgin-OHare Extension
Ill.
140
*Total of two or
more earmarks in bill. SOURCE: Conference Report, H.R.3
(SAFETEA-LU), ENR
Gives readers a glimpse of who is planning and constructing some of the largest projects throughout the U.S. Much information for pulse is derived from McGraw-Hill Construction Dodge.
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Information is provided on construction projects in following stages in each issue of ENR: Planning, Contracts/Bids/Proposals and Bid/Proposal Dates.