Federal Transportation Update

RPO America Annual Business MeetingJune 13, 2016

Presentation Overview

FAST Act Overview FAST Act & MAP-21 Implementation FY2017 Transportation Appropriations

Update FAA Reauthorization Congressional Outlook

FAST Act Overview

5-year bill (FY2016-2020) with $281 billion in total Highway Trust Fund obligation authority

Total HTF obligation authority would rise from $50.8 billion in FY2015 to $58.7 billion in FY2020

Paid for by an $8 billion general fund bailout in August 2015, a $70 million bailout in the FAST Act itself, and an estimated $208 billion in HTF excise tax receipts over five years

The $78 billion in general fund bailouts represents about 27% of the estimated total HTF deposits needed to support the FAST Act

FAST Act Overview

The immediate $70 billion general fund transfer was offset by a variety of provisions estimated at the time to bring in an equivalent amount of savings over the FY2016-2025 period

New spending commitments from the HTF will increase by an average of 3.1% per year; appropriators expected to honor

FAST Act also authorized general fund appropriations that may be difficult for Congress to meet: $2.4 billion per year for mass transit $1.7 to $2.5 billion per year for Amtrak

and passenger rail grants

FAST Act Overview

Conversion of STP to a “block grant” program – very few actual changes

Increase in STP suballocation to local governments from 50 to 55 percent

Transportation Alternatives Program rolled into STP; allows 50 percent of certain TAP funding suballocated to local areas to be used on any STP-eligible project

Reinstates competitive grant program for bus and bus facilities funds with a 10 percent set-aside for rural projects

70% cut in TIFIA

FAST Act Overview

New freight formula program – mostly a redirect of NHPP money with a slightly bigger emphasis on freight projects

Modifies the National Freight Network created by MAP-21 and requires re-designation every 5 years

Nationally Significant Freight and Highway Projects (NSFHP), large new discretionary program for highway/freight projects $759 million this year Minimum grant size of $25 million

Increased emphasis on rail and intermodal funding out of Highway Account programs; up to 10 percent of freight formula program and up to $500 million over 5 years from NSFHP

FAST Act and MAP-21 Implementat

ion Freight Corridor Designation

Guidance (April 2016) Truck Size and Weight Study (April

2016) Transportation Performance

Management Safety-related performance measures

(March 2016) Highway Safety Improvement Program

(March 2016) Statewide and Metropolitan Planning;

Non-Metropolitan Planning (May 2016) Pavement and Bridge Conditions (Fall

2016) Highway Asset Management Plan (Fall

2016) System Performance Measures (TBD)

FY2017 Transportation Appropriations

House has moved FY2017 Transportation-HUD bill through the Appropriations Committee, Senate has passed their version

Both House and Senate bills honor FAST Act’s funding levels for highway and transit

TIGER: $525m in Senate bill; $450m in House bill Senate bill includes a $2.2 billion rescission in

unobligated highway contract authority apportionments

FAA Reauthorization

Current extension expires July 15

House bill includes air traffic control reforms; has not garnered enough support to secure a vote on the House floor

Senate has passed its version with widespread support

House opposed to a short-term extension and taking up the Senate version

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Congressio

nal Outlook

House and Senate will take a seven-week break in mid-July

Possible action on Water Resources Development Act

Talk of tax reform as an avenue to address Highway Trust Fund solvency in the next Congress

QUESTIONS

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