Summit Participants Kick Off and Advance New EFB Measure 

Last month's Washington Summit proved to be timelier than any in recent memory. The Federal Issues Conference kicked off the event, consisting of three panels of experts discussing issues related to infrastructure financing in the private water market and through public-private partnerships; the status of traditional infrastructure financing; reauthorization of America's surface transportation system; and other hot industry topics. The next day, Summit participants stormed Capitol Hill and visited hundreds of Congressional offices. The agenda was targeted to these issues: put the industry back to work through passing legislation to allow more private investment in the water infrastructure market; restore needed funding to the Clean Water and Drinking Water SRF programs; and oppose pending cuts in highway funding and pass a multiyear surface transportation reauthorization bill. NUCA also pushed for passage of legislation to remove the harmful government withholding provision from the tax code.The same day NUCA was on the Hill, legislation was introduced in the House and Senate that would lift the state volume cap on tax exempt facility bonds that fund water and wastewater infrastructure projects, an idea that has the potential to generate up to $5 billion in private capital for the market at low cost to government. The Senate bill was introduced by Sens. Mike Crapo (R-Idaho) and Bob Menendez (D-NJ); the House legislation (HR 1802) introduced by Reps. Geoff Davis (R-Ky) and Bill Pascrell (D-NJ). Because of the timely introduction of the legislation, Washington Summit participants were able to hit the ground running and received considerable positive feedback on the bills, including some firm commitments for co-sponsorship - a goal of the day's work. On Monday, May 16th, Rep. Pascrell and Sen. Menendez held a press conference in Clifton, NJ to announce the introduction of the bill. As always, Rep. Pascrell made good use of NUCA's "prop" - a tuberculated water main encased in Lucite -- to underscore the point that water infrastructure is crumbling everywhere and must be repaired and rebuilt. Allowing more private investment i n   w a t e r   i n f r a s t r u c t u r e would go a long way toward addressing the problem, and put countless people to work while doing so. The event was a hit and NUCA thanks both these fine New Jersey lawmakers for continuing to work with us by championing this important legislation. Acting as their foot soldiers in the halls of Congress, NUCA continues to chair the Clean Water Council and  serve as   co- chai r  of t h e   S u s t a i n a b l e   W a t e r Infrastructure Investment Coalition- the two lead national industry coalitions working on this legislation.

New Pipeline Safety Bill Flies through Senate Committee

The Senate Commerce, Science, and Transportation Committee recently unanimously approved the Pipeline Transportation Safety Improvement Act of 2011. This latest pipeline safety reauthorization measure, introduced earlier this year by Sen. Frank Lautenberg (D-NJ), includes provisions to subject any person found to have committed a major consequence violation of a pipeline marking or excavation notification requirement, or other pipeline safety regulation to a civil penalty of $250,000. It also authorizes civil penalties for those who obstruct or prevent an inspection or investigation of a gas pipeline or hazardous liquid pipeline. Importantly, it prohibits a state onecall notification program from exempting municipalities, state agencies, or their contractors from its one-call notification system requirements. The bill would also authorize continuing federal assistance to the Common Ground Alliance, the nation's leading damage prevention organization dedicated to shared responsibility in prevention of underground facility damage by all stakeholders. NUCA continues to promote balanced enforcement of one-call and damage prevention law, and we believe the latest pipeline safety legislation provides big steps in that direction. By upping the enforcement ante on pipeline operators to meet their locating and marking responsibilities, inclusion of the provision in this bill reflects another successful NUCA initiative to ensure balanced enforcement of federal damage prevention law. 

 Senate Panel Takes Hard Look at Highway Funding

Last week, a Senate Finance Committee hearing examined numerous proposals to increase federal revenue for transportation projects. Unsurprisingly, no consensus appears to be in sight from committee members. Committee Chairman Max Baucus (D-Mont.) said in his remarks that the Highway Trust Fund (HTF) faces significant challenges and relies on fuel taxes for 90% of its revenue, but high gas prices and fuel-efficient vehicles have reduced consumption and excise taxes collected. "To get our budget in order, we will have to make a lot of difficult choices," Chairman Baucus said, "but we also need to look for ways to be creative. Because the longer we wait to address our aging infrastructure, the more it will cost in the long run. Every failed bridge and broken levee has a significant cost in terms of dollars and cents. More importantly, these tragedies can cost lives." Witnesses discussed several financing options for future surface transportation projects. One of the alternatives most discussed was a "vehicle miles tax," (VMT) an idea that has generated considerable controversy. Senators were told that a tax on vehicle miles traveled would help increase revenue to the Highway Trust Fund, which is presently spending more money than it receives and is expected to run short of cash in the Highway Account by the summer or fall of next year-meaning the federal government would have to delay reimbursements to state transportation departments for projects built using federal grants. Cost of implementation of equipment to monitor vehicle miles as well as considerable concerns regarding privacy issues continue to hamper efforts by VMT proponents. Other funding options discussed were to simply maintain current capital spending, adjusted for inflation; spend just enough to maintain the current performance of the highway system; fund projects whose benefits exceed their costs; and allow tax-credit bonds to be issued through an independent transportation finance corporation. Needless to say, the debate over long-term transportation funding is far from over. NUCA remains an active member of the Transportation Construction Coalition, and we remind NUCA members that highway investment is hugely important to the underground utility construction and excavation industry, recognizing that upwards of 20 percent of these dollars goes toward the work performed by NUCA members.