**ARTBA Report to AASHTO**

**Standing Committee on Construction**

## August 3, 2001

**TRANSPORTATION CONSTRUCTION FUNDING ISSUES:**

Congress is nearing completion of its work on the FY 2002 transportation
appropriations bill and is expected to again approve [record
funding]{.underline} for highway, mass transit and airport construction
programs. The point of contention in the House and Senate bills
surrounds separate provisions on Mexican trucks entering the U.S. --
restrictions which the Bush Administration contends violates the North
American Free Trade Agreement (NAFTA). President Bush has threatened to
veto the funding bill over this issue. Without resolution, timely
enactment of the FY2002 funding bill could be in jeopardy.

Earlier this year, the Bush energy plan was dominated by concerns over
rising gas prices and three bills (Sensenbrenner/Pombo/Smith) have been
proposed to date to repeal all or part of the federal gas tax. ARTBA
anticipated these efforts and immediately launched counter battery fire
(including an "inside-the-beltway" advertising campaign and media
appearances) that has been widely covered in the press and duly noted by
all key parties (White House, U.S. DOT, Congress, other groups).

In addition, ARTBA has been working closely with Senate Finance
Committee Chairman Max Baucus (D-Mont.) this year to achieve some relief
for the federal Highway Trust Fund from gasohol fuels tax diversion. On
August 2, Chairman Baucus introduced the Highway Trust Fund Recovery Act
(S. 1306), with substantial bipartisan support, that would increase
federal Highway Trust Fund revenues by approximately \$400 million
annually. The measure would redirect 2.5-cents-per-gallon of the federal
excise on gasohol sales from the General Fund to the Highway Trust Fund.
The measure would ensure that all federal highway user fee revenues are
invested in surface transportation infrastructure improvements and help
mitigate the impact of the preferential tax treatment provided to
ethanol fuels, which costs the Highway Trust Fund over \$1 billion per
year in foregone user fee revenues. ARTBA President Pete Ruane testified
before the Senate Finance Committee July 10 on alternative fuels and
urged the committee to redirect the revenue stream from the 2.5 cents
gasohol tax to the Highway Trust Fund. ARTBA has drafted a letter to all
senators that will be sent with signatures from the highway and ethanol
communities, including AASHTO, to demonstrate the broad-based support
for S. 1306. ARTBA provided testimony to the Senate Environment and
Public Works Committee and House Ways and Means Committee in 2000 urging
redirection of the 2.5-cents revenue stream to the Highway Trust Fund.
It is important to realize the 2.5-cents would be an important first
step, but ARTBA is committed to resolving the entire ethanol tax issue.

# TEA-21 REAUTHORIZATION:

Following final board approval on March 30, ARTBA publicly announced its
plans for TEA-21 reauthorization. The plan calls for a minimum \$50
billion per year federal program beginning in FY2004 just to maintain
current conditions and performance of the nation's roadways. The plan
gives several alternatives to meet the goal, including a 10-cent per
gallon increase in the federal motor fuels excise. ARTBA has briefed
several associations and labor groups on its game plan, including
AASHTO's reauthorization committee and the National League of Cities.
ARTBA will be briefing APTA's reauthorization group in September. The
report has already been distributed to every member of Congress,
Administration officials, and key media contacts.

On June 26, the U.S. Chamber of Commerce announced the formation of a
broad-based coalition dedicated to improving the safety and efficiency
of the nation\'s transportation network. "Americans for Transportation
Mobility" will work to educate the American public, elected officials
and other opinion leaders about the value of transportation
infrastructure to the nation\'s economy and quality of life. The
coalition will rally the general business community around the need of
increased investment in the nation's infrastructure and a "streamlined"
project planning process. ARTBA President Pete Ruane approached Chamber
President Tom Donohue last November about forming this coalition and is
playing a key leadership role in the coalition.

**ENVIRONMENTAL:**

ARTBA continues to press for environmental streamlining for all modes of
transportation construction. In March, ARTBA testified before Congress
that streamlining is needed to improve airport runway construction
delays. On August 2, the Senate Commerce Committee approved legislation,
S. 633, that would require coordinated concurrent review and establish
specific deadlines for the completion of review. ARTBA also served on
the Bush-Cheney Transition Advisory Group for Transportation and
submitted a 37-page report specific to environmental reforms that could
improve transportation planning. ARTBA continues to meet with AASHTO and
other groups on a monthly basis to develop a long-term solution to the
transportation project delivery process.

ARTBA also continues to be the leader in protecting the industry in the
environmental arena through the courts. ARTBA has also been very active
in wetland litigation (challenging the new [Tulloch]{.underline} rules
and changes to the Nationwide Permit), a challenge to so-called
\"environmental justice\" lawsuits, and successfully defeated a morning
ban on the use of off-road diesel engines in Texas. The ARTBA-led
Advocated for Safe and Efficient Transportation (which also includes
American Concrete Pavement Association, Associated Equipment
Distributors, Construction Industry Manufacturers Association, Equipment
Manufacturers Institute, Laborers-Employers Cooperation and Education
Trust, National Asphalt Pavement Association, National Association of
Home Builders, and National Stone, Sand and Gravel Association), is
actively involved in clean air conformity lawsuits in Salt Lake City,
Utah; Baltimore, Maryland; Sacramento, California; and Atlanta, Georgia.
The Sacramento case has been a resounding success with the court
dismissing the "citizen's lawsuit" filed by the Sierra Club, which would
have entitled them to attorney fees.

**WORK ZONE SAFETY:**

ARTBA testified before Congress in July about many of the activities the
industry is undertaking to minimize work zone accidents and offered
recommendations for action generated at two separate conferences ARTBA
held on the topic in the past year. ARTBA conducted the first-ever
conference to draw attention to roadway work zone safety issues in 1985.
The association\'s foundation manages the National Work Zone Safety
Information Clearinghouse, which is housed at the Texas Transportation
Institute in College Station, Texas. The facility has the most
comprehensive collection of data base searchable information on the
topic in the world. It is handling more than 24,000 information requests
per year. The Clearinghouse Internet site can be accessed at
http://wzsafety.tamu.edu/. The facility, which received start-up funds
from the Federal Highway Administration, is now financially supported by
ARTBA, TTI, the AASHTO, the Laborers\' International Union of North
America, the CNA Commercial Insurance Company, the National Association
of County Engineers and the International Municipal Signal Association.
ARTBA also released this year a new OSHA-10 Hour Training course
developed in conjunction with the National Safety Council targeted
specifically at the transportation construction industry.

**100^TH^ ANNIVERSARY CELEBRATION:**

Founded in 1902, ARTBA is the nation's oldest construction association,
and will be celebrating its 100^th^ Anniversary in 2002. ARTBA has
several special events for the celebration planned across the U.S.,
including a gala dinner in Washington, D.C. in the Spring. As part of
the 100^th^ Anniversary, ARTBA and the National Asphalt Pavement
Association have teamed up to pledge a combined \$2 million to support a
state-of-the-art permanent exhibition called \"America on the Move\" at
the Smithsonian\'s National Museum of American History, in Washington,
D.C. The exhibition, scheduled to open in Fall 2003, will provide an
educational experience on the importance of transportation and its
underlying infrastructure to the nation\'s history and economy. ARTBA is
also creating a "Hall of Fame" of the top two projects and top two
individuals from each state that have had a profound impact on
transportation in the last 100 years. To compile this list, ARTBA has
sent out surveys to thousands of historians, public officials,
journalists, etc. Lastly, ARTBA is publishing a book on the history of
transportation construction and the impact it has had on our country.