According to a newly-released business plan, the cost of California’s high-speed train between San Francisco and Los Angeles has increased by 20 percent – from $64 billion to $77 billion – and will open in 2033, four years later than anticipated. The connection from San Francisco to the Central Valley is projected to open in 2029, also four years later than initial projections.
Transportation
2018 Legislative Priorities & Updated Member Call Info
Members: Take a look at NARC’s policies and priorities for 2018 below. Additionally, NARC will host a member call to review these policies and priorities, explain how NARC staff are working toward achieving these objectives, and share best practices and tips for educating and influencing Congress.
NARC Member Call! NARC’s Policies and Priorities for 2018
March 14, 3:30 – 4:30 PM ET, Please note the new call time!
Dial: (571) 317-3122 / Access code: 304-259-525
Contact Neil Bomberg (neil@narc.org) or Maci Morin (maci.morin@narc.org) with questions.
Infrastructure Package
NARC urges the federal government to increase direct funding to expand and maintain the nation’s infrastructure, and provide incentives to attract private financing for the subset of projects that can be supported in this manner. The new infrastructure package should resolve the Highway Trust Fund’s funding shortfall, fund regional planning organizations, support multimodal investments, provide flexibility in the projects it supports, and fund existing grant channels.
Broadband
NARC urges Congress to acknowledge that local governments are a key player creating and incentivizing broadband deployment, recognize local authority over rights of way and other public infrastructure assets, encourage public-private partnerships, establish new grant programs to fund broadband deployment, and increase funding for programs targeted at unserved and underserved communities.
Disaster Recovery
NARC urges Congress to immediately reauthorize the National Flood Insurance Program. In addition, Congress should solicit input and guidance from locally elected officials and regional councils on federal emergency preparedness and disaster recovery programs and initiatives. Congress should allocate emergency preparedness, response, and recovery funding directly to regions and localities that know the immediate needs of their communities best.
Farm Bill
NARC urges Congress to support sustained funding for all twelve titles of the Farm Bill to strengthen rural infrastructure (including broadband, water, and wastewater systems), protect our nation’s food supply, increase access to healthy food, and promote environmental stewardship and conservation. Congress should reauthorize the USDA rural development programs that offer critical investments in our nation’s most underserved communities, including the Strategic Economic and Community Program that promotes regional collaboration.
Protect Local Programs
NARC urges Congress to maintain support for federal programs such as the Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), Low Income Home Energy Assistance Program (LIHEAP), the Economic Development Administration, water infrastructure investment and maintenance, funding for senior programs, and the Workforce Innovation and Opportunity Act (WIOA) that ensure municipalities, counties, and regions meet the needs of their communities.
Funding for the 2020 Census
NARC urges Congress to increase Census funding by no less than $300 million above the current funding level, so that the Census Bureau can adequately prepare for the 2020 Decennial Census and support efforts to accurately count historically hard-to-reach populations.
Budget/Appropriations
NARC urges Congress to support parity between defense and non-defense discretionary spending for fiscal years 2018 and 2019.
Substance Abuse Crisis
NARC supports federal efforts to partner with local and state officials to help address the addiction and misuse of opioids, including prescription pain relievers, heroin, fentanyl, and other substances. NARC also urges Congress to provide emergency supplemental funding to local governments for medicine-assisted treatment programs, expanded drug abuse prevention and education efforts, naloxone, and drug take-back programs.
Brownfields
NARC urges Congress to reauthorize the Brownfields Reauthorization Act of 2017 (HR 1758), which would increase cleanup grant amounts, create a multi-purpose grant, allow for administrative costs, and clarify liability issues for local governments. NARC also urges Congress to at least maintain level funding for fiscal years 2018 and 2019.
Trump’s Infrastructure Plan Timing Highly Uncertain
Yesterday House T&I Chairman Shuster said that it will be difficult to implement the president’s infrastructure plan this year. Shuster hopes to pass a bill before August recess, but Congress may need to vote after the election in a lame-duck session. His comments follow doubts expressed by both Senators John Cornyn (R-TX) and John Thune about Congress’ ability to pass a bill this year. Transportation Secretary Elaine Chao has focused her remarks on the efforts to eliminate regulations and streamline permitting, and has not spoken to a timeline for implementing the administrations’ full proposal.
Shuster Drops Proposal to Privatize ATC
House Transportation and Infrastructure Committee (T&I) Chairman Bill Shuster (R-PA) announced today that he will end efforts to privatize the nation’s air traffic control system. Shuster, who is not running for reelection, acknowledged that the reform principles did not reach the level of support needed to pass Congress and that he will work with Senator John Thune (R-SD) to reauthorize the Federal Aviation Administration (FAA). Senator Thune has said that FAA programs will likely be extended through the summer. Current FAA authorization runs through March 31.
Legislative Outline for Rebuilding Infrastructure in America
Washington, D.C. (February 12, 2018): The White House today released its long-anticipated “infrastructure package” that contains funding for a wide array of infrastructure projects with significant reliance on contributions from state, local, and private sources to achieve its overall investment goals.
The outline proposes a total federal funding level of $200 billion. By requiring significant local and state shares and encouraging private investment through expansion of existing financing mechanisms, the administration projects the resulting total infrastructure investment would be $1.5 trillion. Despite the call from a wide variety of organizations, associations, and others, the bill does not specifically contain any funding to help preserve the long-term solvency of the Highway Trust Fund, which will run short of funding starting sometime in 2020. Nor does the proposal contain a specific offset for the administration’s proposed funding.
The proposed funding is distributed through several new programs:
- $100 billion for the Infrastructure Incentives Program, with funding distributed by USDOT, EPA, and the U.S. Army Corps of Engineers. Local and state share of funding would be at least 80%, with additional credit given to projects with a higher non-federal share and from state or local funding sources that were raised most recently.
- $50 billion for the Rural Infrastructure Project, $40 billion of which would be distributed as block grants by formula to states based on total mileage of rural roads and rural population. The remaining $10 billion would fund “rural performance grants” for states that have prepared comprehensive reports of rural infrastructure.
- $20 billion for Transformative Projects Fund to support innovative projects that would otherwise have a hard time attracting private capital. Would support three tracks of projects: demonstration projects (30% federal share), planning (50% federal share), and capital construction (80% federal share).
- $20 billion for Infrastructure Financing Programs, including $14B for existing financing programs (TIFIA, WIFIA, RRIF) and $6B for expansion of PABs.
- $10 billion for Federal Capital Financing Fund, a funding mechanism to address current issues with real property acquisition by federal agencies.
- Establishes the Interior Maintenance Fund, up to $18 billion to pay for capital and maintenance needs of public lands infrastructure. Funding is not included in $200 billion total, because it is drawn from additional revenues from mineral and energy development on federal lands and waters.
Other interesting policy changes proposed include:
- Removing restrictions on tolling existing Interstates.
- Raising the cost threshold for designation of “major project” from $500 million to $1 billion.
- Allowing utility relocation in advance of NEPA review completion.
- Requires use of “value capture” for transit projects under New Starts.
- Applying FAST Act streamlining provisions to rail projects.
- Additional provisions regarding water infrastructure, VA facilities, brownfields rehabilitation, and Superfund cleanup.
- An extensive array of streamlining provisions intended to achieve the administration’s goal of reducing the length of time it takes for federal agencies to review and approve infrastructure projects, with a goal of two years.
More to come as we complete a more thorough review of the proposal.
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National Association of Regional Councils
660 North Capitol Street NW Suite 440, Washington, D.C. 20001
202.618.5697 | www.NARC.org| @NARCregions
Press Release: NARC Responds To Trump’s Infrastructure Proposal
FOR IMMEDIATE RELEASE
NARC Contact: Anna Rosenbaum / anna@narc.org
Transportation Contact: Erich Zimmermann / erich@narc.org
NARC Responds To Trump’s Infrastructure Proposal
Washington, D.C. (February 12, 2018) – With today’s release of the Trump administration’s Infrastructure Plan, the National Association of Regional Councils (NARC) appreciates the national conversation regarding the important role the federal government plays in supporting the significant investment local governments make in the nation’s infrastructure. The federal government is crucial in the unique federal-state-local partnership that forms the cornerstone of the nation’s infrastructure investments.
“The release of today’s proposal is an important first step in the process of developing a bipartisan proposal that can help bolster local efforts to create and maintain our country’s world-class infrastructure,” said Bob Dallari, NARC President and Seminole County, Florida Commissioner. “We now look to Congress to continue the momentum and craft legislation that can help ensure stable and robust federal spending to support the infrastructure investments local governments across the nation are making.”
NARC has outlined several key points that will help ensure a final infrastructure investment plan that is responsive to local and regional priorities:
- Resolve the funding shortfall in the Highway Trust Fund to ensure financial resources are available to support, at a minimum, existing funding levels beyond expiration of the current FAST Act authorization.
- Increase direct funding for the nation’s infrastructure, with incentives provided for the subset of projects that will generate revenue and therefore are appropriate for private or other financing.
- Ensure a portion of new funding flows directly to local areas via their regional planning organizations, and through existing channels of distribution such as the Surface Transportation Block Grant Program (STBGP).
- Support multimodal investments and ensure that new funding provides flexibility in the types of projects it supports, and explicitly recognize that transit, rail, bike and pedestrian, and other similar projects are important federal priorities. Increased federal funding through existing channels for TIGER, STBGP, New Starts, FASTLANE and Transportation Alternatives will support multimodal investments.
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Drivers May Pay $11.52 to Enter Manhattan’s Congested Areas
A new proposal from a panel created by Governor Andrew Cuomo would require drivers coming into central Manhattan to pay a $11.52 daily fee. Vehicles entering the central business district between 6 AM and 8 PM would pay, with a higher fee for trucks and a lower fee for taxis and ride share. The plan would raise an estimated $180 million and reduce traffic by 13 percent. Revenue would fund transit improvements on the city’s decaying subway system. New York would be the first city in the U.S. to implement congestion-zone fees, following in the footsteps of London, Stockholm, and Singapore, which have experienced increased average speeds, greater mass transit use, and improved air quality. Read more about it in this Bloomberg article.
What the White House Infrastructure Proposal May Contain
A document was leaked yesterday that contains an outline of what might be contained in a long-promised White House infrastructure proposal. Heavy caveats are required, as we do not know who prepared this document, who leaked it, or whether it reflects the administration’s thinking. When asked about the document, a White House spokesperson declined to comment on a leaked source. She did not, however, indicate the document was fabricated.
The document contains two major sections: “Funding Principles” and “Principles for Infrastructure Improvements.” The document does not contain principles as much as a set of policy ideas and proposed regulatory changes, with varying degrees of detail. The draft outline leaves much to be answered. There is no proposed funding amount, just percentages of the total that would be committed to the proposed programs. Since no funding level is proposed, nothing indicates how the bill would ultimately be paid for.
The changes proposed appear to be separate from the current transportation authorization, which relies mostly on fuel tax revenues to fund projects primarily through discretionary, formula-based programs. The program outlined in the leaked document would do a little of that (for dollars to rural areas), but primarily relies upon grant awards through a competitive process controlled by federal agencies.
The portions described in this document are the most impactful for NARC’s members.
Will Electric Vehicles Have Their Year in 2018?
Alternative fuel vehicles (AFVs) became mainstays in the news in 2017, with several big stories focusing predominantly on electric vehicles (EVs). This, combined with several other factors, could mean a big year in 2018 for EVs and a real shift towards an electric, autonomous, and connected vehicle future.
Electric Vehicle Tax Credit
The electric vehicle tax credit ranges from $2,500 to $7,500 for new EVs purchased depending on the size of the vehicle. This tax credit is available until 200,000 qualified vehicles have been sold in the U.S. by each vehicle manufacturer. As a side note, this threshold has yet to be met by any manufacturer.
The threat of elimination of the electric vehicle tax credit in the federal tax overhaul was one of the biggest EV news stories in 2017. The House version of the bill originally eliminated the $7,500 EV tax credit, while the Senate version did not.
Once the EV tax credit was up for elimination, support came rolling in to save it. Even local leaders jumped into the fray, producing a letter signed by 22 mayors that urged Congress to preserve the EV tax credit. The letter cited jobs created in the U.S. automobile industry and the financial savings afforded to American families through owning an EV as direct benefits of this tax credit.
The House and the Senate were ultimately able to reach a deal on the EV tax credit, protecting it from elimination in the final version of the tax bill. While it is not clear what pushed Congress to save the credit, there is little doubt that it will help the EV market grow beyond 2018.
Transportation as a U.S. Greenhouse Gas Pollutant
Another overarching factor contributing to a potential EV boom in 2018 is the designation of transportation as the biggest source of U.S. greenhouse gas pollution. This is the first time in 40 years that power plants have not been recognized as the largest polluters.
While electricity use has not declined, its production has become much cleaner compared to the transportation sector. Wind, solar, and natural gas have replaced a sizable portion of coal-produced electricity, reversing negative trends of power plant emissions. This shift may help make the case for implementing policies or other mechanisms to increase EV adoption in states and localities.
EV Volkswagen Settlement Funds
The release of Volkswagen (VW) settlement funds will be another big variable for the 2018 EV market. As a part of the VW emissions settlement, $4.7 billion will be used for zero emission vehicle (ZEV) investments and Environmental Mitigation Trust funds for states.
The $2 billion ZEV investment will install more than 2,500 EV chargers during the first national ZEV investment cycle, according to Electrify America, with more plans to come.
The plans for the $2.7 billion for Environmental Mitigation Trust funds vary from state to state, but a portion can be invested directly in EV infrastructure. Vermont, for example, plans to spend 15% of its $18.7 million settlement on electric vehicle charging infrastructure. The state is polling the public on how the rest should be spent. Other states are following suit to build up their EV infrastructure as well.
While beneficiaries have several years to implement plans, the initial investments may push consumers to consider buying an electric vehicle as early as this year.
Improvement of EV Options
The surge in affordable and reliable electric vehicle options in the market may also lead to increased adoption in 2018. The three options below show that EVs are beginning to achieve long-range trips at an affordable price – two of the biggest concerns with EV technology:
- Chevrolet Bolt EV:
- 2018 will be the first full year this very popular vehicle is available.
- Range: 238 miles
- Price: Starts at $37,495
- Tesla Model 3:
- The Tesla Model 3 may become more widely available in 2018 following production challenges in 2017.
- Range: 220 miles
- Price: Starts at $35,000
- Nissan LEAF:
- Range: 107 miles
- Price: Starts at $30,680
How Regions Can Participate in the 2018 EV Opportunity
The convening of these factors in 2018 marks an exciting year for AFVs. As EVs become more affordable and can travel longer distances, we are likely to see a growing shift in their use.
To help make these options available to public fleets, NARC’s Fleets for the Future project has been working to consolidate bulk purchases for public fleets nationwide. The project team is also closely following the tides of AFV procurement, looking for ways regions can capitalize on the EV movement. For example, many regions will be looking to invest in many emission-reducing vehicles, ranging from EV sedans to propane school buses over the next year. Fleets for the Future will play an important role in reducing costs on these vehicles to help more public agencies transition to AFVs in 2018.
How Does This Impact Regional Planning?
The need for planning for charging stations and AFV corridors will certainly create demand for metropolitan planning organizations (MPOs), regional councils, and their members. This shift will impact gas tax revenues for states and will also increase the need for pilot programs on user fees and vehicle miles traveled (VMT) tax to help solve funding issues at the regional, state, and federal levels.
These regional impacts may also depend on the Trump administration’s infrastructure plan. While there are not many details available, the package may change the market and could have specific provisions that dictate how much the EV market expands.
NARC and its Fleets for the Future project team will keep you updated on these factors converging in the new year. We will be watching with anticipation to see if 2018 is the year of the EV.
Why Do We Need Infrastructure Week?
As we approach Infrastructure Week (May 15 through 19) – a week of education and advocacy designed to draw attention to the importance of infrastructure to our nation’s economy, jobs, and communities – we should stop for a moment and ask why? Why must we have an Infrastructure Week? Shouldn’t the wealthiest nation on the planet have the best infrastructure in the world? We should, but sadly, we don’t.
Of course, anyone:
- trying to get safe, clean water in Flint, Michigan,
- driving on the roads of many cities that are bursting with potholes,
- using mass transit in a city like Washington, DC where investment in the subway system is insufficient, and
- enjoying public parks in Kansas where the difference between what is spent and what is needed is believed to be quite large
…knows that something is not right.
But we also know in a more informed way from many experts on infrastructure, including the American Society of Civil Engineers, the Brookings Institution, academic researchers, the Heritage Foundation, and the U.S. Transportation Department, that our nation’s infrastructure is in need of significant repair and increased investments in maintenance.
What Does This Mean?
It means that our aviation, bridges, tunnels, highways, ports, rail, mass transit, dams and levees, energy systems, drinking water, inland waterways, hazardous waste disposal, solid waste disposal, wastewater treatment facilities, parks, and schools are in need of repair and maintenance.
What Do We Need To Do?
Clearly, we need to begin investing in our infrastructure right now. It is unlikely that we will instantly find all of the funds we need to repair and maintain our infrastructure when America’s debt is almost $20 trillion, but we cannot afford to do nothing. The reason goes beyond our deficient infrastructure – it speaks to our global competitiveness. America desperately needs ports and airports that can handle greater capacity; roads and bridges that can accommodate an increasing number of vehicles; mass transit systems that can move people from home to work efficiently and safely; and drinking water that is clean and safe. The resources to address these needs must be made available as soon as possible.
Experts seem to agree on several steps to make infrastructure investments possible, including:
- Increasing our annual investments in infrastructure by one percent of GDP;
- Maintaining existing and creating new dedicated public funding sources for infrastructure needs at the federal, state, and local levels that are consistently and sufficiently funded;
- Raising the motor fuel tax and considering new ways to tax road use, including miles traveled;
- Authorizing programs and funds to improve specific categories of infrastructure; and
- Establishing standards that require consumers to pay for the true cost of using, maintaining, and improving infrastructure, including water, waste, transportation, and energy services.
There is also substantial disagreement concerning which investment strategy would work best, which strategy would promote economic growth and grow jobs, and what role the federal government should play in infrastructure.
Whether a consensus around infrastructure investments can be reached will largely be left to the politicians – and they have to make their decisions based on evidence. For years there has been a lack of political will to move legislation designed to repair, maintain, and improve our infrastructure, and this hasn’t changed since the last national election. Even the current proposals from the president and Senate Democrats to invest more than $1 trillion in infrastructure spending over the next ten years have been met with little enthusiasm.
So why do we need Infrastructure Week? I guess the answer is a pretty straightforward one. Until the U.S. finds a plan for repairing and properly maintaining our infrastructure – not to mention investing in new infrastructure – Infrastructure Week will be necessary. This is our reality.
Next: The Economic Impact of Not Doing Enough to Improve Our Infrastructure