Tag: Infrastructure

The critical need for investing in modern and sustainable infrastructure was the focus of a Feb. 11 White House meeting between President Joe Biden, Vice President Kamala Harris, Transportation Secretary Pete Buttigieg, and a bipartisan group of senators from the Environment and Public Works (EPW) Committee.

• The Senate EPW committee was represented by Chairman Thomas Carper (D-DE), Transportation Subcommittee Chairman Ben Cardin (D-MD), Ranking Member Shelley Moore Capito (R-WV), and former Chairman James Inhofe (R-OK).
• Biden stated at the meeting that the EPW Committee “is central to everything that’s going to happen” on infrastructure. (White House Remarks and meeting video, Feb. 11). White House Press Secretary Jen Psaki remarked that the meeting “was a reflection of how important it is [for Biden] to meet with bipartisan leaders and have a discussion about what’s required in states and communities.” (White House press conference video, Feb. 11) 
• The president noted the importance of investing in infrastructure to maintain Americas’s international competitiveness, referring to China’s advancements in high-speed rail and automobiles by stating, “if we don’t get moving, they’re going to eat our lunch.” (Washington Post, Feb. 11)
• Sen. Cardin said after the meeting that “it’s going to be a challenge to… have adequate revenues to fund transportation moving forward.” Congressional focus on an infrastructure package is widely expected to take place after the legislature acts on the next round of COVID-19 relief. (Politico, Feb. 11). 
• Sens. Cardin and Carper led a Feb. 9 letter from nearly 50 Democrats from both the House and Senate to Secretary Buttigieg, regarding the need for federal transportation policies to create jobs while also reducing carbon pollution, with an emphasis on reducing vehicle tailpipe emissions.
• In a December 16, 2020 letter, The Roundtable and 12 national real estate organizations provided detailed recommendationsto then President-elect Biden and Vice President-elect Harris that included infrastructure funding and modernization as engines to drive recovery and job growth from the economic fallout of the COVID-19 pandemic. 
• The December industry letter stated, “A strong national infrastructure is vital to the health of the nation’s real estate, and vice versa. Roads, bridges and mass transit enhance the values of nearby properties, which in turn generate greater tax revenues to fund even more infrastructure assets.”
• The Roundtable is also part of Build by the 4^th coalition led by U.S. Chamber of Commerce, which encourages the Biden Administration and the new Congress to pass a comprehensive infrastructure deal by Independence Day 2021.

The Biden Administration is expected to reveal its infrastructure package soon as part of its “Build Back Better” agenda to spur economic recovery from the repercussions of the pandemic.

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House Democrats on July 1 passed a sprawling $1.5 trillion infrastructure package (the Moving Forward Act, H.R. 2) largely along party lines (233-188). The bill would reauthorize spending for the nation’s roads, bridges and mass transit transportation – and also addresses housing, water, broadband, renewable energy, electric grid, and education infrastructure.  (Wall Street Journal and Washington Post, July 1) 

• The broad Democratic package reflects the party’s blueprint for infrastructure priorities in the lead-up to the November elections. (Politico, July 1) H.R. 2 includes climate-related provisions that would require states to measure and reduce emissions from transportation systems, which account for the nation’s single largest source of greenhouse gases. (U.S. Energy Information Administration) 
• H.R. 2 would also support mass transit and other low-emissions transportation modes with more money, and spur greater electrification of vehicle fleets.
• H.R.. 2 faces steep GOP opposition. (E&E News, June 29) Senate Majority Leader Mitch McConnell (R-KY) said the measure is “not going anywhere in the Senate” due to its price tag and focus away from highways and more traditional surface transportation funding. (The Hill, July 1)
• The White House threatened to veto H.R. 2 because it includes “‘Green New Deal’ initiatives” and “fails to tackle the issue of unnecessary permitting delays, which are one of the most significant impediments to improving our infrastructure.”  (Statement of Administrative Policy, June 29) The Trump administration is reportedly preparing its own $1 trillion infrastructure proposal. (Reuters, June 15)
• A core component of the House-passed legislation is a $494 billion surface transportation bill – the INVEST in America Act – that would reauthorize funding for the Highway Trust Fund, which is scheduled to expire on September 30. Action on the Highway Trust Fund has been considered a “must-do” policy item before the November elections (Roundtable Weekly, June 19 and June 26)
• A National League of Cities survey shows that coronavirus-related expenses have forced more than 700 U.S. cities to suspend or terminate plans to upgrade critical infrastructure. (Washington Post, June 23)

Job-creating infrastructure legislation could become a major focus for lawmakers in the second half of 2020 as high unemployment levels linger amid increasing uncertainty about business reopenings during the pandemic.

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House Democrats on June 22 released details of a $1.5 trillion infrastructure package – the Moving Forward Act  (H.R. 2) – that they plan to bring to a vote before July 4, although the measure’s prospects in the GOP-controlled Senate are uncertain. (Bill Text | Section-by-Section | Fact Sheet)

• The comprehensive Democratic infrastructure package, totaling about $1 trillion, has been combined with a $494 billion surface transportation bill – the INVEST in America Act – that would fund roads, bridges, and mass transit before current finding for the Highway Trust Fund expires on September 30.   (House Transportation and Infrastructure Committee news release, June 22)

• The broad Moving Forward Act also addresses the nation’s housing, water, broadband, clean energy, and education systems.  More than 300 amendments to the package are expected to be considered on Monday by the House Rules Committee before it is advanced to the House floor.  (Miller & Chevalier, June 25)

• About two-thirds of the infrastructure package does not appear to have specifics for funding, although some financing measures are listed for elements of the bill.  (CQ, June 22). 

• The House Transportation and Infrastructure (T&I) Committee issued an excerpt of the 2,309-page bill containing the revenue provisions. 

• Rep. Richard Neal, (D-MA), chair of the House Ways and Means Committee, floated the idea of reinstating “Build America” government bonds that could help spur private investment, as well as “a massive expansion of the Low Income Housing Tax Credit”. (Ways & Means news release, June 18) 

• Rep. Sam Graves (R-Mo.), T&I’s Ranking Member, last week announced an alternative bill for surface transportation programs and on June 23 stated, “Now the bill has been completely swallowed up … and turned into a colossal $1.5 trillion wish list for the Majority.”

• The Trump administration is reportedly preparing a nearly $1 trillion infrastructure package proposal focused on transportation projects. (Reuters, June 15)

• The critical need for infrastructure improvements was supported this week by a National League of Cities survey, which showed that coronavirus-related expenses have forced more than 700 U.S. cities to suspend or terminate plans to upgrade critical infrastructure.  (Washington Post, June 23)

“The survey found that 65% of cities are being forced to delay or completely cancel capital expenditures and infrastructure projects, which will not only stifle job growth and slow local economic activity, but further jeopardize economic recovery efforts in communities across the nation,” said Clarence Anthony, CEO and Executive Director, National League of Cities. “Without congressional action now, the forced delay or cancellation of infrastructure projects will create an economic ripple effect throughout the nation not felt in decades.” (National League of Cities, June 23)

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House Speaker Nancy Pelosi (D-CA) and several Democratic chairs are using a surface transportation bill as a base for a broader $1.5 trillion infrastructure plan they announced yesterday, to also invest in the nation’s housing, water, broadband, clean energy, and education systems.  (POLITICO, June 18 – see also Pelosi remarks and Youtube video, June 18).

• Action on transportation infrastructure is considered a “must-do” item in Congress before the November elections because the nation’s main source to fund roads, bridges, and mass transit – the Highway Trust Fund – expires on September 30.  (New York Times, June 17)
• The Democratic surface transportation piece – the INVEST in America Act – would authorize $494 billion in spending over five years. Key elements of this bill align with Roundtable policies, such as state/local cost share allocations that would help finance significant projects like the Northeast Corridor Gateway Program. (Roundtable Weekly, June 5 and Bill text | Factsheet | Bill Summary | Section-by-Section)
• Meanwhile, the Ranking Member on the House Transportation and Infrastructure Committee, Sam Graves (R-MO), announced an alternative bill for surface transportation programs. The Republicans’ STARTER Act (section-by-section summary) would bolster permit streamlining and the “One Federal Decision” framework, measures long-supported by The Roundtable.  (Roundtable Weekly, August 2, 2019)  
• Pelosi said yesterday that the comprehensive Democratic infrastructure package – the Moving Forward Act – would “make real the promise of building infrastructure in a green and resilient way,” and that “[i]t’s job-creating in its essence, but also commerce-promoting.”  (The Hill, June 18). A framework for the omnibus measure was released in January.  (Roundtable Weekly,  January 31)
• The critical issue with any infrastructure proposal is how to pay for it. House Ways and Means (W&M) Committee Chairman Richard Neal (D-MA) yesterday outlined several tax provisions to be included in the Democratic leadership’s measure.
• Neal stated, “We leaned on our tax code and will reinstate Build America Bonds, to not only provide financing to state and local governments but also spur investment in the private sector,” according to a W&M Committee press release. “There is a desperate need for modernizing low-income housing, and the Committee proposed a massive expansion of the Low Income Housing Tax Credit to get us there.” A W&M fact sheet outlines other provisions.  
• The Senate is expected to focus on infrastructure in the coming weeks after the House acts. Last summer, the Senate Environment and Public Works Committee (EPW) unanimously approved a five-year, $287 billion surface transportation plan. (Roundtable Weekly, August 2, 2019).

The Trump Administration has long stated that infrastructure is one of its top priorities. It is reportedly preparing another $1 trillion plan that it may present to Congress next month.  (Bloomberg, June 16) Pelosi said yesterday she anticipates the Democratic Moving Forward Act will come to a House vote before Congress breaks for the July 4^th recess and urged the Administration to begin negotiations about funding it.

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A five-year, $494 billion surface transportation bill unveiled June 3 by House Transportation and Infrastructure Committee Democrats would authorize highway, railroad, and transit programs to replace the current $226 billion Highway Trust Fund that expires on Sept. 30.  (The Investing in a New Vision for the Environment and Surface Transportation in America – INVEST in America Act – Bill text | Factsheet | Bill Summary | Section-by-Section)

• Rep. Peter DeFazio (D-OR), chairman of the Transportation and Infrastructure (T&I) Committee, said, “We are in multiple crises at the moment …  But we have to move forward with our very important reauthorization of surface transportation.  (BGov, June 3)

• The INVEST in America Act is part of a $760 billion “Moving Forward Framework” rolled out in January by House Speaker Nancy Pelosi (D-CA) with the chairs of three House committees to address national infrastructure investment.  (Roundtable Weekly, Jan. 31, 2020)

• A plan on how to pay for the new bill has not yet been determined by the House Ways and Means Committee.  The Roundtable submitted extensive comments on infrastructure policy to both committees last year.  (March 20, 2019 W&M comments; April 29, 2019 T&I comments.)

This week’s T&I bill contains elements that align with Roundtable policies including:

• Improve the Transportation Infrastructure Finance Innovation Act (TIFIA) loan program to encourage more public-private partnerships for infrastructure projects;

• Encourage high-density, transit-oriented development by incorporating the Build More Housing Near Transit Act (H.R. 4307), which would require localities applying for Federal Transit Administration grants to assess feasibility of affordable housing construction along mass transit routes (Up for Growth Action’s 1-page summary);

• Authorize a Vehicles Miles Travelled (VMT) pilot program as a potential, more sustainable funding source for the Highway Trust Fund as opposed to the controversial federal “pay-at-the-pump” gas tax;
• Revise current Capital Investment Grant (CIG) and TIFIA program state/local “cost share” commitments to allow funding for major projects (like the New York-New Jersey Gateway Program along the Amtrak Northeast Corridor); and
• Prioritize use of Highway Trust Funds with a “fix it first” strategy to focuses on repair and rehabilitation of decaying infrastructure.

• The House bill also includes measures on climate resiliency and Amtrak that are expected to face opposition by the Republican majority in the Senate.  For example, the measure would require the U.S. Department of Transportation (DOT) to establish new greenhouse gas performance measures, and authorize a new DOT program to support carbon pollution reduction.

• The Democratic T&I committee bill is considered the first salvo in the transportation funding debate to reauthorize the Highway Trust Fund before it expires on September 30, 2020.  Additional committees from both the House and Senate need to produce other portions of the final legislation.

• The T&I committee is scheduled to consider the INVEST in America Act on June 17 – and a vote on the House floor is could occur at the beginning of July. (BGov, June 3)

• The need for infrastructure investment to help restart the economy and encourage long-term  growth was also the focus of a June 3 meeting between President Trump and New York Gov. Andrew Cuomo at the White House.  (Wall Street Journal and New York Times, June 3)

• Gov. Cuomo said, “It was about: How do we supercharge the reopening?  It was a good conversation.”  The two policymakers discussed obstacles to federal funding and expedited approvals for significant New York transportation initiatives such as the Gateway Project, which would require new rail tunnels under the Hudson river.  (WSJ, April 18, 2019)

• President Trump on June 4 signed an executive order that cites an economic emergency to waive laws for expediting federal approval for highways, pipelines and other projects.  The Washington Post cites a senior administration official stating that the action will help the economy recover from novel coronavirus losses.  (Washington Post, June 4)

The Real Estate Roundtable will host an infrastructure discussion with Gov. Cuomo on June 11 during the organization’s first Virtual Annual Meeting.

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The Trump Administration – in a continuing effort to streamline government approvals of major infrastructure projects such as highways, airports, tunnels and pipelines – yesterday proposed the most significant changes in over four decades to federal-level environmental review requirements.  (Watch White House news conference video) . 

• The proposal by the White House’s Council on Environmental Quality (CEQ) would affect implementation of the National Environmental Policy Act (NEPA).  Comments on the proposal are due by March 10, 2020.
• ”[W]e want to build new roads, bridges, tunnels, highways bigger, better, faster, and we want to build them at less cost.  That is why, for the first time in over 40 years, we are issuing a proposed new rule … completely overhaul the dysfunctional bureaucratic system that has created these massive obstructions,” President Trump said yesterday at a news conference unveiling the proposal.
• He added, “In the past, many of America’s most critical infrastructure projects have been tied up and bogged down by an outrageously slow and burdensome federal approval process. The builders are not happy.  Nobody is happy.  These endless delays waste money, keep projects from breaking ground, and deny jobs to our nation’s incredible workers.”  (White House remarks, Jan. 9)
• According to CEQ, U.S. federal agencies prepare approximately 170 Environmental Impact Statement per year, which average 600 pages in length and take 4.5 years to conclude.  (Reuters, Jan. 9)
• White House Council on Environmental Quality Chairwoman ,Mary Neumayr, stated at yesterday’s event, “It’s important to note that the proposal would reform the process of gathering information on environmental effects, but would not change any substantive environmental law or regulation, such as the Clean Air Act, the Clean Water Act, and the Endangered Species Act.”
• Transportation Secretary Elaine Chao also noted during the news conference, “We all care about the environment.  What we are talking about are cumbersome, unnecessary, overly burdensome, duplicative, and outdated regulations.  Many of these regulations have not been updated, modernized, in decades.  What we’re seeking is commonsense solutions.” (White House remarks, Jan. 9)
• The Administration’s proposal to streamline the infrastructure approval process complements similar, bipartisan efforts passed by the Senate Public Works Committee in July to speed-up delivery for infrastructure projects.  (Roundtable Weekly, Aug. 2, 2019)
• Secretary Chao has addressed the need to streamline the government approval process affecting infrastructure projects for years, including at The Roundtable’s Spring 2017 Meeting in Washington, DC.
• The Roundtable has been a long-standing advocate of increased national infrastructure investment to benefit the economy, job creation and local communities.  In June 2017, Roundtable President and CEO Jeffrey D. DeBoer addressed the infrastructure permitting issue on CNBC’s Squawk Box.  “We need to streamline and make a lot more efficient the permitting process in a lot of these infrastructure projects.  That’s something the President wants to do and it’s hard to argue against it.”  DeBoer added, “Permitting is a key part of lowering the costs, lowering the timeframe and reducing the amount of money that is needed for these projects.”  (DeBoer on Squawk Box) 

It is unlikely that the Administration’s proposal will be finalized before the 2020 general election so that federal agencies can begin applying the updated review criteria.  A core issue regarding the proposed changes is whether the government must incorporate climate change concerns as it analyzes an infrastructure project for approval. 

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