C&D News

AGC CALLS FOR TEA-21 BOOST

Paul Diederich, president of Industrial Builders Inc. of Fargo, N.D., and chairman of the Highway Division of the Associated General Contractors of America (AGC), has urged the House Transportation & Infrastructure Subcommittee on Highways and Bridges to address "a huge and growing infrastructure investment gap" facing the U.S.

His recommendations were given as Congress considers the reauthorization of the TEA-21 transportation bill, which expires in 2003.

"TEA-21 has been a huge success," Diederich noted. "Despite the accomplishments of TEA-21, the nation still faces a huge and growing infrastructure investment gap. Based on current estimates, an annual federal investment of at least $50 billion is needed just to maintain current road conditions and performance."

Current spending levels are $31 billion annually, while one proposal calls for $27 billion in TEA-21 annual spending.

Additionally, Diederich urged the Committee to index several federal highway funding mechanisms to the Consumer Price Index, so that taxes collected on gasoline and tires will rise along with the general inflation rate.

EXECUTIVE ORDER CUTS RED TAPE

President Bush has signed an executive order that could quicken the pace of some highway improvement projects.

The executive order on "Environmental Stewardship and Transportation Infrastructure Project Reviews" will change the permitting process, putting the U.S. and state transportation departments in charge of the process, rather than environmental protection agencies.

"This is a solid step towards meaningful statutory improvement that will address the long process of planning, designing, environmental review permitting and right-of-way acquisition to be completed before the first shovel of dirt is turned," says Stephen E. Sandherr, CEO of the Associated General Contractors of America (AGC), Alexandria, Va.

Transportation agencies now have the authority to establish deadlines, purpose and need for permits, possibly putting highway projects on a faster track.

 

December 2002
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