Reauthorization Where Are We Now

1. ReauthorizationWhere Are We Now Presented by: Peter Loughlin September 23, 2010

2. THE PAST YEAR • September 30, 2009 Program Expired • Short Term Extensions – GF Transfers $8b in 08, $7b in 09, $21b in 10, $36.5b in ARRA • Draft House Bill – No Recent Action • Senate Currently Drafting • Administration Plan Released Sept. 6th

3. Why The Delay • No Available Funding to Increase Programs and Gain Support • Highway Trust Fund Revenues Dropping • No Support to Raise the Gas Tax • Increased Focus on Federal Deficit • No Perceived Crisis

4. Administration Plan • $50 Billion Up-Front Down Payment • Combines Roads, Transit, Railways, Airports • Includes High Speed Rail in Surface Transportation Program • Establishes Infrastructure Bank to Fund Projects of National and Regional Significance • Consolidates Programs within Surface Transportation Program

5. Oberstar Bill • 6-Year Bill -- $450 B Proposed – No Way to Fund It • Focus on Performance Measures • Shifts $ and Control Over Resources to MPOs from DOTs • Increased Share of Revenue to Transit • Emphasis on Livability • Establishes Freight Improvement Program • Projects of National Significance • Creates Office of Public Benefit in FHWA

6. Critical Asset Investment Program (CAI) • Bill Requires DOT to Set Performance Measures and Targets • CAI Program – Measures Reductions in the Number and Square Footage of Deficient Bridges and % Reduction of Road Lane Miles Rated as Fair or Poor • States Must Make Reports to DOT on Their Progress Meeting These Targets • Unclear What Happens if States Don’t Meet the Target

7. Office of Public Benefit • Protect Public Interest in Toll and PPP Projects • Administer and Approve Toll Agreements and Rates • Monitor PPP Compliance • Imposes Minimum Requirements on all PPPs That Have a Federal Funding Element • The Office Must Approve PPP Agreements • Eliminates Non-Compete Agreements • Restrictions on What States Can and Can’t Do Re: Tolling and Toll Revenue • Key Terms of Agreements Must Be Made Public Before Awarding Contract

8. Definition of PPP Public-Private Partnership Agreement The term “public-private partnership agreement” means a contractual relationship formed between a State or other public entity to operate and maintain a highway facility in exchange for a financial return. Such a return may or may not include the authority to collect and retain toll revenues paid by users of the highway facility.

9. Livability • Oberstar Bill Creates Office of Livability • DOT Priority • TIGER Grant Criteria • DOT Requests $527 Million FY 2010 to Promote Livability • Unclear What Livability Is

10. Senate Situation • Drafting Bill • Democrat and Republican Staff Working Together • Interested in Tying $ to Meeting Performance Criteria • Interested in Asset Management • More Favorable than House on PPPs

11. TIFIA • TIFIA is Now Oversubscribed – Picking Winners and Losers • Administration Focused on Livability and Sustainability • TIGER Grants Included Livability Focus • Congress Needs to Increase Size of TIFIA Program to Fund More Projects • How Does National Infrastructure Bank Idea Impact TIFIA?

12. Conclusion • No Clear Path • Could Reduce Bill from 6 Years to 3 Years • Crisis Could Emerge • November Elections Could Yield New Majority Party in Congress