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Newsline Washington
Highway Trust Fund Faces Own Fiscal Challenges While the implications of the deal on tax rates struck between President Obama and Congress last week has been widely reported, this process produced little to stabilize future federal transportation investments. The most immediate consequence of the agreement is a two-month delay in the automatic spending cuts that were scheduled to go into effect January 2. These cuts of eight to 10 percent in defense and non-defense spending are the result of a failure by members of Congress from both parties
JANUARY 7, 2013
“Fiscal Cliff” Deal Contains Multiple Tax Implications for Transportation Construction Industry
Continued on page 3
FHWA Follows ARTBA Buy America Recommendations In two recent actions, the Federal Highway Administration (FHWA) clarified its interpretation of the Buy America law’s application to federal-aid highway projects. The law, which dates to 1982, generally requires that projects’ steel and iron components be manufactured in the United States. In a December 21 memo, FHWA Associate Administrator for Infrastructure John Baxter stated that “miscellaneous Continued on page 4 Follow ARTBA:
A bipartisan settlement, the “American Taxpayer Relief Act,” was reached over the New Year’s holiday to temporarily delay the so-called fiscal cliff—a combination of mandatory tax increases and spending cuts that were scheduled to take effect January 1. The legislation also included a number of tax-related provisions directly impacting the transportation construction industry. First, the new law extends the current 50 percent bonus
depreciation tax incentive for companies who make new capital investments in things like equipment, software and plant infrastructure through 2013. Companies choosing to take advantage of the provision can claim additional depreciation deductions on purchases—effectively lowering the cost of such investments. Second, the law maintains at $500,000 the amount a company can choose to write off in the year of purchase
for investments of up to $2 million in capital assets, such as equipment and machinery, as opposed to depreciating the investment over a number of years. If no action had been taken, the amount allowable as a one-year write-off would have fallen to $25,000, and the cap on the amount of equipment to which it could be applied would have decreased to $200,000. ARTBA supported the preservation of both the Continued on page 2
Check out the ARTBA Transportation Makes America Work Report on pages 5-7.
ARTBA Washington Newsline
“Fiscal Cliff” Implications Continued from page 1
depreciation bonus and expensing incentives. Finally, the legislation also makes alterations to the estate tax, which concerns how the wealth a person leaves to their heirs is taxed. The amount which can be passed on without being taxed is kept at $5.12 million, where it had been set in 2010. Any amount above the limit is now taxed at 40 percent, up from 35 percent. Please consult a tax professional for more information on taking advantage of these and other tax code provisions.
ARTBA Foundation Now Accepting Applications for the Young Executive Development Program Join the next generation of industry leaders at ARTBA’s four-day “boot camp” on federal legislative and regulatory processes. The June 3-6 Young Executive Development Program (YEDP), now in its 18th year, teaches young executives how they can play a leadership role in helping grow the transportation construction market now and in the future. The program also includes sessions on highway/ transit financing, economics, environmental issues, public-private partnerships, and industry innovation. The program is held conjunction with ARTBA’s annual Federal Issues Program (FIP) and Transportation Construction Coalition (TCC) Fly-In so that participants can meet with their congressional delegation about pending transportation issues. Admission is competitive. Nominations due by March 15. View the application or contact Sara Jones at 202.289.4434 with any questions.
Upcoming Events
2013
Visit our Events Page for more information. Project Management Academy February 4-6 Washington, D.C. [Add to Calendar]
July 25-26 Washington, D.C. [Add to Calendar]
P6 Scheduling Academy
ARTBA National Convention
Federal Issues Program & TCC Fly-In
Dr. J. Don Brock TransOvationTM Workshop & Awards Program
February 6-8 Washington, D.C. [Add to Calendar]
June 3-5 Washington, D.C. [Add to Calendar]
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25th Annual ARTBA P3 Conference
ART BA Washington Newsline
September 8-10 Milwaukee, Wis. [Add to Calendar]
October
Local Transportation Management Virtual Conference & Innovation Showcase (LoTransTM 2013) October
5th Annual Transportation Construction Law & Regulatory Forum October Washington, D.C.
Transportation Programs & The Fiscal Cliff Continued from page 1
to reach an agreement on how to reduce the deficit by more than $1 trillion as required by 2011 legislation authorizing an increase in the U.S. Treasury’s borrowing limit. While most core federal transportation programs would be exempt from these cuts as currently structured, the transit capital program and aviation operation activities would be impacted. It should be noted, however, elected officials of both parties are working to mitigate the impacts of the cuts and there is no guarantee alternative approaches would protect transportation investment. Members of Congress and President Obama have signaled they will continue to
pursue deficit reduction through further reforms to the U.S. tax code. The fiscal cliff negotiations, which were largely about the year-end confluence of spending cuts and expiring tax rates, were not a realistic opportunity to enact a longterm stabilization of the Highway Trust Fund’s revenue situation. However, a comprehensive tax reform debate is a more appropriate vehicle for such a solution as failing to act would require adding $140 billion to the deficit over the next 10 years to prevent devastating cuts in highway and transit investment. ARTBA President & CEO Pete Ruane made this point in a January 4 letter to President Obama and urged him to make addressing the trust
fund’s own ‘fiscal cliff’ a priority in any tax reform debate. Finally, Congress must still complete the FY 2013 appropriations process to fund federal government operations, including the transportation programs, for the remainder of the year. Congress approved a six-month interim measure that kept all programs at their FY 2012 funding levels last fall. In so doing, the measure delayed the $600 million highway investment increase provided by the MAP21 reauthorization bill. The short-term bill expires March 27. ARTBA will be urging all members of Congress to ensure the final bill provides the fully paid for MAP-21 highway and public transportation investment levels.
The 2012 ARTBA Annual Report is Now Available
Products & Services 2013 ARTBA Media Kit Available
builder®
July-August 2012
Special Report: ARTBA Analysis MAP-21
TransportationBuilder
July-August 2012
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TRANSPORTATION DESIGN & CONSTRUCTION LEADERSHIP DIRECTORY & BUYERS' GUIDE
2012 ADVERTISEMENT
2013 MEDIA KIT “Transportation Builder” magazine Leadership Directory & Buyers’ Guide Web & Digital Advertising Opportunities
Newsline Washington
AUGUST 6, 2012
ARTBA Continues Push for Transportation in Party Platforms Both the House and Senate adjourned last week for a recess that will carry through both parties’ political conventions (August 27-30 in Tampa, Fla., for the GOP and September 3-6 in Charlotte, N.C., for Democrats) and last until September 10. As such, both parties are developing their political message for the last few months of campaigning before November and are
Room Discount for ARTBA National Convention Ends This Week
Continued on page 3
Senate Introduces Bipartisan Coal Ash Legislation A bipartisan group of 12 Republican and 12 Democratic senators introduced August 2 the “Coal Ash Recycling and Oversight Act” to prevent the U.S. Environmental Protection Agency (EPA) from regulating coal ash—used extensively in transportation construction projects—as a “hazardous substance.” The legislation, introduced by Senators John Hoeven (R-N.D.), Kent Conrad (D-N.D.) and Max Baucus (D-Mont.) builds upon a Continued on page 2 Follow ARTBA:
The deadline for receiving the discounted $192 hotel room rate at the 2012 ARTBA National Convention in Memphis, Tenn. ends Aug. 10. The Peabody Memphis Hotel is a magnificent Forbes FourStar, AAA Four-Diamond, historic property, which has been described as “legendary, charming, elegant and grand.” In addition to top-notch speakers and networking opportunities, this year’s convention features a spectacular program of
events for spouses of ARTBA members. Spouses will have the opportunity to tour “Blues City,” learn about its past, and visit important cultural landmarks, such as the Memphis Brooks Museum of Art, Memphis Rock ‘n’ Soul Museum, and Sun Studio and Stax Museum, where legends such as Elvis Presley, B.B. King and Tom Petty made music history. The program also includes a historical tour along the Mississippi River aboard the newly-refurbished Island Queen.
Attendees and their spouses will also have the opportunity to visit Graceland, the home of Elvis. The full program is available at www. artbanationalconvention.org. Contact ARTBA’s Ed Tarrant for information, or call the Peabody Memphis Hotel at 901.529.4000 to book your room. Reservations made after August 10 will be on a spaceavailable basis.
August 10 Deadline: Contractor Safety & Roadway Work Zone Safety Awards ARTBA Washington Newsline
2013 Media Kit
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View the 2013 ARTBA Media Kit online for the full range of advertising and other opportunities in our “Transportation Builder” magazine, “Leadership Directory & Buyers’ Guide,” and the “Washington Newsline.” For more information on advertising, contact Peter Embrey at 202.289.4434. ARTBA Washington Newsline
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Overheard “Putting together a funding package for any public project is like juggling bowling balls on a tightrope.” Jan. 1 story, “Decaying D.C. bridge reflects state of thousands of such structures nationwide,” by “Washington Post” transportation reporter Ashley Halsey.
“Part of it is also making sure that we’re investing, for example, in rebuilding our infrastructure, which is broken. And if we are putting people back to work rebuilding our roads, our bridges, our schools, in part paying for it by some of these broader long-term deficit reduction measures that need to take place that will grow the economy at the same time as we’re also setting our path for long-term fiscal stability.” President Barack Obama in a Dec. 30 “Meet the Press” interview.
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ART BA Washington Newsline
Legislative & Regulatory News Buy America Clarified Continued from page 1
steel or iron components, subcomponents and hardware” are generally not subject to Buy America. This appears to alleviate serious concerns raised by ARTBA, its affiliated chapter the Michigan Infrastructure & Transportation Association, and other industry groups about extreme interpretation of Buy America requirements in some states. At the ARTBA Contractors Division meeting during the 2012 Federal Issues Program, attendees met with Mr. Baxter and noted that requiring certification for every nut, bolt, and tie wire on a project would add costs and delays while doing little to further the Buy America law’s objectives. Mr. Baxter’s new memo agrees that this reading of the law “is not costeffective to administer.” FHWA also revised its Buy America guidance to accommodate a provision in MAP-21. The provision requires that Buy America apply to an entire federal-aid highway or bridge project as long as any component or contract includes federal funding. It is intended to prevent “segmenting” of a project by a state transportation agency in an effort to avoid application of Buy America to exclusively statefunded portions. The revised FHWA guidance states that, “if Federal funds are used for any activity within the scope of a [National Environmental Policy Act (NEPA)] decision, then Buy America applies to the entire project. There is no limitation in the statute that the federal funds be used only in construction contracts.” The guidance further states that related work done
by a railroad or utility is also subject to Buy America, provided – in the case of railroads – the work is eligible for federal-aid highway funding, or – in the case of utilities – state law allows reimbursement of the utilities for the relocation work. Map-21’s Buy America revision took effect on October 1, 2012, and applies to contracts executed on or after that date. For more information, contact ARTBA’s Rich Juliano.
evaluating projects. The changes were initiated by an Executive Order from President Obama in January 2011 calling on federal agencies to “modify, streamline, expand, or repeal” rules that may be “outmoded, ineffective, insufficient, or excessively burdensome.” While the FTA took this Executive Order to heart, it is unclear if other transportation agencies will follow suit. MAP-21 has mandated similar changes at FHWA.
DOT Reforms Transit Capital Program The Federal Transit Administration (FTA) finalized various changes to the New Starts/Small Starts transit capital programs December 27 in hopes of saving taxpayer money and speeding up the project delivery process. The changes include: a new approach to measuring a project’s cost-effectiveness; expansion of the range of environmental benefits used to evaluate projects; new economic development factors in the ratings process; and reduced regulations and red tape when
Industry News Hurricane Sandy Recovery Funding On Hold The 112th Congress adjourned January 2 without passing legislation that would provide federal funds to aid in the cleanup and rebuilding from damage caused by Hurricane Sandy in October 2012. The Senate passed legislation December 28 that would appropriate $60 billion for the areas affected by the storm. The House did not
Multimodal News
Fostering Innovation
A service of ARTBA’s multimodal councils, it features current transportation developments making news across all modes and regions. Contact Sara Jones to become a subscriber or visit www.artbamultimodal.org.
TRB Newsletter: Jan 2
Highlighting new research, technologies, industry best practices and information resources available to the transportation design and construction industry.
take up a bill before adjourning, causing strong push-back from legislators from both parties. House Speaker John Boehner (R-Ohio) has announced the aid package will be the first piece of legislation dealt with when the House comes back to work the week of January 14. Because a new Congress has begun, the Senate must again take up and pass the legislation before it can go to the President. The Senate-passed bill included, at least, $12 billion for Department of Transportation programs to restore and protect transportation facilities.
Highway and Bridge Employment Drops Employment in highway and bridge construction fell 6.9 percent in November 2012 compared to November 2011, according to the latest data from the U.S. Bureau of Labor Statistics. Overall construction employment actually increased in December adding 30,000 jobs from November, ending 18,000 jobs ahead of the figures from December 2011. The overall construction sector’s unemployment rate was 13.5 percent in December (highway and bridge specific figures are always delayed by one month). The number of jobs on private and public payrolls grew by 155,000 in December, as the national unemployment rate remained at 7.8 percent, according to the Labor Department’s monthly jobs report.
Special Thanks to the Following Industry Firms & Organizations that have been Stalwart Supporters of ARTBA’s Transportation Makes America Work Campaign
• Adams Construction Co. • AECOM • AGC of Texas • Aldridge Electric, Inc. • American Infrastructure, Inc. • Arbor Green, Inc. • Associated Pennsylvania Constructors • Beaver Excavating Co. • C.W. Roberts Contracting, Inc. • Carolinas AGC • Caterpillar Inc. • CH2M HILL • Citnalta Construction • Colas, Inc. • Connecticut Road Builders Association • Corman Construction, Inc. • Mr. Daniel Israel • D’Annunzio & Sons, Inc. • David A. Bramble, Inc. • Earl Dudley, Inc. • Earle Asphalt Co. • Ellis-McGinnis Construction Co. • Florida Transporation Builders’ Association • G.A. & F.C. Wagman, Inc. • Gannett Fleming, Inc. • General Contractors Association of New York • George Harms Construction Co., Inc. • Gerken Paving • Ghilotti Brothers, Inc. • Granite Construction, Inc. • Gray & Son, Inc. • H.W. Lochner, Inc. • Heritage Construction & Materials • Hinkle Contracting Company • HNTB Corporation • Hoffman Brothers, Inc. • IEW Construction Group • Illinois Road & Transportation Builders Association • J.H. Reid General Contractor
• John S. Lane & Sons, Inc. • Judlau Contracting • Kentucky Association of Highway Contractors • Kleinfelder • Lanford Brothers Company, Inc. • Martin Marietta Materials, Inc. • Massman Construction Company • Michigan CAT • Midasco, LLC • Moretrench Inc. • National Utility Contractors Association • Ohio Contractors Association • Oldcastle Materials, Inc. • Oxford Construction Company • Pandolf-Perkins • Parsons Brinckerhoff • Paul J. Rach, Inc. • Permatile Concrete Products Co. • Phend & Brown Inc. • Randolph Peters Co. • Rock Road Companies, Inc. • Rogers Group • Scituate Concrete Pipe Corp. • Stacy & Witbeck, Inc. • Summers-Taylor, Inc. • Superior Construction Company • Tennessee Road Builders Association • Terex Corporation • The Edw. C. Levy Co. • The Lane Construction Corp. • The Ruhlin Company • UTCA of New Jersey • Vecellio Group, Inc. • Virginia Transportation Construction Alliance • Volvo Road Machinery • Vulcan Materials • Williams Brothers Construction Co., Inc. • Wilson & Associates Engineering & Survey PC • Wisconsin Transportation Builders Association • Wright Brothers Construction, Inc. • York County Community Foundation
Download a PDF copy of the digital “Washington Newsline.” ARTBA Washington Newsline
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2009-2012 KEY ACCOMPLISHMENTS The ARTBA “Transportation Makes America Work” (TMAW) grassroots lobbying and advocacy communications campaign played a key role in the final passage of MAP-21 in summer 2012. Over the past few years, no other organization devoted more time, energy and financial resources to reauthorization than ARTBA! TMAW was supported by more than 75 industry firms and organizations. Below are some highlights of key TMAW accomplishments from 2009-2012. ECONOMICS & RESEARCH: ARTBA initiated two groundbreaking reports—and then partnered with industry allies for widespread congressional and media distribution—that quantified the economic impacts of traffic congestion on public health, and deficient roadway conditions. The 2012 U.S. Transportation Construction Industry Profile
ARTBA also produced a landmark economic profile on the U.S. transportation construction industry, and several publications that illustrated how transportation projects are helping improve the environment. The association also published a study on the role of P3s on transportation projects and commissioned a PriceWaterhouseCoopers report containing new proposals for creation of new freight-related user fees to help finance construction of “Critical Commerce Corridors.”
November 2012
IC OUTPUT JOBS • ECONOM
• FEDERAL & STATE
TAX REVENUES Photo Courtesy: UDOT
TELEVISION, PRINT & RADIO ADS: ARTBA and its industry allies spent several million dollars on advertising aimed at building political support for passage of a new highway/transit bill, including the multi-award winning television and radio spot featuring former Presidents Reagan & Clinton.
JOBS ture network ation infrastruc . The transport of our economy is the backbone in American jobs ation Nearly 80 million uring, transport tourism, manufact e and forestry, ing, agricultur and warehous retailing and ion, mining, general construct , bridges and rely on highways wholesaling every day. rail systems
more than s contribute their employee and federal annually in state $233 billion payroll taxes. working sense to get So it makes highway/ of the overdue on passage working t bill. A lot of transit investmen g on it. are dependin Americans
industries payroll. These That’s one big trillion and payroll of $2.8 provide a total
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Ash Association • American Coal and Steel Institute of America (co-chair) American Iron Association General Contractors Companies • Manufacturers (co-chair) • Associated• American Council of Engineering • Asphalt Emulsion Steel Institute Association Builders Association Pipe Association • Concrete Reinforcing Safety Services & Transportation Manufacturers • American Concrete • American Traffic American Road Workers of Equipment s Association Reinforcing Iron Pavement Association • Association Ornamental and of North America American Concrete Engineers • American SubcontractorEquipment Distributors Bridge, Structural, Laborers’ International Union of Civil Associated Association of Association Trust • Association • American Society International Mixed Concrete and Education & Reclaiming Institute Association • National Ready essed Concrete Asphalt Recycling loyers Cooperation Slurry Surfacing Producers • Precast/Prestr International of Surety Bond Association • Engineers • Laborers-Emp Union of Operating • National Association Association • Portland Cement America International and Joiners of Pavement Association Contractors Carpenters Utility Asphalt of National National Brotherhood Association • Program • United Sand and Gravel The Road Information National Stone,
NO “GOVERNMENT OTHER SPENDING” PRO
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DOES AL
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COALITIONS: In addition to the nearly $500,000 invested to support activities of the U.S. Chamber of Commerce, Americans for Transportation Mobility (ATM) coalition, Transportation Construction Coalition (TCC), and The Road Information Program, ARTBA provided unique management and intellectual capital to these efforts.
1219 28th St. N.W. Washington, D.C. 20007 | (t) 202.289.4434 | (f) 202.289.4435 | www.artba.org
2009-2012 KEY ACCOMPLISHMENTS
MEDIA RELATIONS: Opinion pieces by ARTBA President Pete Ruane and 2012 ARTBA Chairman Paul Yarossi urging action on a highway/transit bill appeared in key Washington, D.C. media outlets and the hometown newspapers of congressional transportation leaders.
SPEECHES & PRESENTATIONS: ARTBA President Pete Ruane, several ARTBA chairmen, and senior staff delivered more than 300 presentations around the country on reauthorizationrelated issues.
VIDEO & SOCIAL MEDIA: ARTBA deployed new media to reach congressional audiences and the press through the creation of short videos highlighting the industry’s role in times of national emergency and national disaster, and spotlighting the success story of new projects like the Hoover Bridge and Woodrow Wilson Bridge.
Moving Ahead for Progress in the 21st Century Act A Comprehensive Analysis
Twitter, FaceBook and LinkedIn were also used to mobilize grassroots and deliver messages during key times in the reauthorization debate.
MAP-21 ANALYSIS & TIMELINE: A comprehensive 44-page analysis of MAP-21 and a timeline of ARTBA’s leadership activities on the “road to reauthorization” was sent to the ARTBA membership, all congressional offices and news media in August 2012.
July 2012
1219 28th St. N.W. Washington, D.C. 20007 | (t) 202.289.4434 | (f) 202.289.4435 | www.artba.org
One Outstanding Week 3 Professional Development Opportunities Save $1,000
Project Management Academy FEB. 4-6, 2013
MONDAY, FEB. 4 11 a.m. Lunch/Welcome
Up to 20 ARTBA Professional Development Hours available.
12 p.m.
Client Relations: Christopher Fronheiser, associate vice president of transportation, AECOM
1 p.m.
Ethics: Aaron Brotman & Don Tobin, Peckar & Abramson, P.C.
2 p.m.
Construction Documentation: Chris Anzidei, partner, Law Offices of Christopher Anzidei, PLLC
6 p.m.
Economics of Safety: Brad Sant , senior vice president of safety & education (dinner presentation), ARTBA
TUESDAY, FEB. 5 7:30 a.m. Breakfast 8 a.m.
Management & Leadership: Dr. Jim Gellat, professor, University Maryland University College.
12 p.m
Lunch
1 p.m.
Resource Management: Dr. Jim Gellat
WEDNESDAY, FEB. 6 7:30 a.m. Breakfast 8 a.m.
Planning & Scheduling: Dr. Jay Newitt, professor, Brigham Young University
12 p.m.
Lunch
ARTBA Headquarters, Washington, D.C.
1 p.m.
Planning & Scheduling: Dr. Jay Newitt
Provides in-depth instruction on Primavera Project Planner (P6®) software and other “tricks of the trade” to help efficiently track key aspects of transportation projects, such as people, materials, operational benchmarks and payment schedules. The academy will be led by acclaimed construction management expert Dr. Jay Newitt of Brigham Young University.
THURSDAY, FEB. 7 7:30 a.m. Breakfast
Up to 23 ARTBA Professional Development Hours available.
8 a.m.
P6® Scheduling Academy FEB. 6-8, 2013
8 a.m.
Planning & Scheduling: Dr. Jay Newitt
12 p.m.
Lunch
1 p.m.
Scheduling: Dr. Jay Newitt
FRIDAY, FEB.8 7:30 a.m. Breakfast Scheduling: Dr. Jay Newitt
PROJECT MANAGEMENT ACADEMY:
ARTBA MEMBERS: $2000
NON-MEMBERS: $2700
P6 SCHEDULING ACADEMY
ARTBA MEMBERS: $1700
NON-MEMBERS: $2100
REGISTRATION FOR BOTH
ARTBA MEMBERS: $2700
NON-MEMBERS: $3400
To register, please complete the form on the back of this brochure or contact ARTBA’s Holly DiGangi at 202.289.4434, ext. 304.
1219 28th Street N.W. | Washington, D.C. 20007 | T: 202.289.4434 | F: 202.289.4435 www.artba.org | www.transportationbuilderinstitute.org
Scheduling Academy
Provides transportation construction professionals with the next generation of tools and skills needed to stay on top of the constantly evolving field of project management. Content-intensive, the course is perfect for both new and experienced project managers because it teaches the latest technologies, innovations and techniques in seven core subjects: • Construction Documentation • Resource Management • Planning and Scheduling • Economics of Safety • Industry Ethics • Client Relations • Management and Leadership
Project Management Academy (PMA)
ARTBA Headquarters, Washington, D.C.