05 jay hansen
DESCRIPTION
Presentation on federal funding and policy issues delivered by Jay Hansen of NAPA at the California Asphalt Pavement Association Spring Conference April 25, 2013 in Ontario, CA.TRANSCRIPT
WASHINGTON VIEWJay Hansen
Executive Vice President
National Asphalt Pavement Association
Government Affairs Team
• Jay Hansen – Executive Vice President• Michele Stanley – Director of Gov.
Affairs• Ester Magorka – Director of NAPA PAC • Van Scoyoc Associates• Whitmer & Worrall
Presentation Overview
• Industry Facts• MAP-21 Overview• 113th Congress• Plan Going Forward
Tons of Asphalt Pavement Produced in U.S.
million tons
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
537516
550 533 521470
402362 360 345 338
Tons of Asphalt Pavement Produced in the U.S. (million tons)
MAP-21
• 6yr Bill on Policy• 2yr Bill on Funding• Most pavement
centric bill since ISTEA (1991).
Annual Federal Highway Investment
SAFETEA-LU EXTENSIONS MAP-21
FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 150
5
10
15
20
25
30
35
40
45
$39.1 $40.2 $40.7 $41.1 $41.1 $39.1 $39.7 $40.3
Status of Highway Trust Fund
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
39.8 40.4 41.8 41.8 42.8 43.6 44.6 45.6
37.6 39.3 43.733.9 34.7 35.4 35.6 35.6
9.75.3 4.3
-6.8
-17.3
-27.5
-38
-48.8
In Billions
Highway Funding Highway Trust Fund ReceiptsEnd-of-Year Balance
Status of Highway Trust Fund
2013 Funding Issues• Sequestration - Highway Trust Fund
spending not impacted.–General Fund transfers are impacted.
• Continuing Resolution –House bill did not fund MAP-21 increase.–Senate bill fully funds MAP-21.–Senate bill signed into Public Law.– Federal highway funding this construction season for California at $3.5 billion or 2.5% increase.
2014 Funding Issues• House Budget – Fully funds MAP-21.
–Highway spending craters in 2015.
• Senate Budget – Fully funds MAP-21.–Includes “Reserve Fund” in 2015 and beyond.
• President’s Budget – Aligned with Senate’s.
• Bottom-line – For 2014, fully expect MAP-21 funding levels.–California – $3.4 billion in 2014
• Problem – What happens in 2015?
Annual Federal Highway Investment
SAFETEA-LU EXTENSIONS MAP-21 CLIFF
FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 150
5
10
15
20
25
30
35
40
45
$39.1 $40.2 $40.7 $41.1 $41.1 $39.1 $39.7 $40.3
$4.2
MAP-21 Implementation Issues
• Measure Pavement Performance on Interstate Highway System.–What’s the metric?
• Accelerated Implementation and Deployment of Pavement Technologies Program–Deployment of new cost-effective designs, materials, and practices.–$12 million for asphalt to deploy high RAP, RAS, WMA, Perpetual Pavements, and clearinghouse.
Pavement Issues in 112th Congress
• Geosynthetic Materials–GAO Report/Transportation Appropriations Bill
• Fibers–Former Ohio Rep. Dennis Eckert Lobbying–Says increases pavement life
• Steel Slag–MAP-21 Amendment
• Crumb Rubber–Hired lobbyist to push
Pavement Economic Issues
• New Federal LCCA Process• Require Alternate-Design/Alternate-Bid• MEPDG Mandate• NAPA defeated mandates
–GAO preparing report on LCCA best practices–Report due in June
• Material-Specific Discount Rates– OMB Circular A-94
Outlook for 113th Congress
• Funding – Needs to address 2015• Competition Issues
–Pavement Economics•LCCA•Price Adjustment Clauses
–Pavement Sustainability•Urban Heat Island•LCA/PVI as Pavement Selection Tool
• All these issues are at state level too!
Dates to Know
2013 Apr Jun Aug Oct Dec Feb2014 Apr Jun Aug 2014
Today
MAP-21 Funding Expires9/30/2014NAPA Asphalt
Fly-In9/11/2013
US Debt Limit Reached5/19/2013
FY2014 Congressional Budget Due4/15/2013
MAP-21 Task Force
Grassroots
Congress Decides2015 Market
Grassroots Target List
Gary Miller (R) – T&I Com., Highway Sub., Cement Caucus Member Kevin McCarthy (R) – Maj. Whip, Cement Kiln
Senator Boxer (D) – EPW Chair
Battle Plan
• DC Meeting • District Meeting• Plant Tour• NAPA PAC Fundraiser• DC Follow-up Meeting• Asphalt Fly-In
More Information
NAPA Legislative CommitteeNAPA Political Action Committee
MAP-21 Reauthorization Task ForceNAPA-SAPA Legislative Task Group
www.AsphaltPavement.org/GovAffairsMidyear Meeting, Boston, July 15-17,
2013Asphalt Fly-In September 11-12, 2013