Washington update by the National Asphalt Pavement Association for delivery at the California Asphalt Pavement Association Fall Asphalt Pavement Conference Nov. 6, 2019 in Sacramento, Calif.

1. Washington Update
Jay Hansen
Executive Vice President - Advocacy
jhansen@asphaltpavement.org
Fall Asphalt
Pavement Conference

2. Asphalt Pavement Market
Commercial
Residential
Publicly-Funded
Highways
(State)
Publicly-
Funded
Highways
(Federal)
Federal funds, on
average, provide
51% of annual State
DOT capital outlays
for highway & Bridge
Projects

3. Federal funds, on average, provide 51% of annual
State DOT capital outlays for highway & bridge projects
* States that have issued GARVEE bonds before
2014.
Source: American Road & Transportation Builders Association

4. U.S. Asphalt Pavement Tons Produced Annually*
362
360 359 360
351 352
365
375
379
387
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
* Source: National Asphalt Pavement Association
Inmilliontons

6. Federal-aid Highway (FAH) Funding Process
▪ FAH funding is a two-step process.
1. Enactment of a “authorization” measure that creates or continues an agency,
program or activity
▪ The FAST Act is an authorization measure
▪ Five years in length
▪ Expires September 30, 2020
2. Enactment of “appropriations” to provide funds for authorized agency, program or
activity.
▪ The Transportation, Housing and Urban Development Appropriations Act is an appropriations
measure
▪ One year in length
▪ Fiscal Year 2020 starts October 1, 2019

7. APPROPRIATIONS

8. ▪ Two-year budget deal (2018‒2019)
▪ $20B added to infrastructure
▪ “programs related to rural water and wastewater, drinking
water, rural broadband, energy, innovative capital projects,
and surface transportation.”
▪ The FY18 and FY19 Appropriations bill determined how much
for highways
FY’18 – FY’19 Budget Agreement

9. Federal Support for ’18,’19 Construction Season
as determined by Appropriations
FY 2017 FY 2018 FY 2019
Core Highway Program $43.3 billion $44.23 billion $45.27 billion
Supplemental Highway Investment
(GF)
• Surface Transportation Block
Program
$1.98 billion $2.73 billion
Total Highway Investment $43.3 billion $46.76 billion $48.52 billion
Airport Improvement Program (AIP) $3.35 billion $3.35 billion $3.35 billion
Supplemental AIP (GF) $1.0 billion $500 million
Total AIP Investment $3.35 billion $4.35 billion $3.85 billion

10. Federal-Aid Highway Funding For California
FY2017 – FY 2019 (in millions)
Since 2017, Federal support for California’s
highway program has grown 17 percent
under Appropriation bills. ($592,000,000)
$3,390 $3,430 $3,500
$185 $256
2017 2018 2019
Highway Trust Fund General Fund
$3,756$3,616$3,390

11. TIGER – BUILD – INFRA Grants
Awarded to California in 2017-2019
▪ “Above-the-line” grants awarded by the U.S. DOT
▪ $9m – Route 132 Gateway Express
▪ $15m – Better Market Street
▪ $20m – Calexico East Port of Entry Bridge Expansion
▪ $20m – North County Corrido Project
▪ $17.5m – State Route 46 Widening Segment 4B
▪ $50m – I-15/French Valley Parkway Improvements
▪ U.S. DOT has provided an additional $132 million in
Federal highway grants to California since 2017

12. Cumulative Federal Support
California’s Highway Program
2017 - 2019
FAST ACT (Highway Trust Fund) $10.3 billion
General Fund Appropriations $441 million
U.S. DOT Grants $132 million
TOTAL $10.9 billion!

13. FY’20-FY’21 Budget Agreement
▪ Approved by Congress and signed
into Public Law
▪ Increases discretionary funding
limits for 2020 and 2021; and
▪ Suspends the debt limit for two
years
▪ The FY20 and FY21 Appropriations
bill determined how much for
highways

14. Proposed Federal Support for 2020 Construction
Season
FY 2018
Enacted
FY 2019
Enacted
FY 2020
House
Passed
FY 2020
Senate
Passed
Core Highway Program $44.23b $45.27b $46.4b $46.4b
Supplemental Highway Investment
(GF)
• Surface Transportation
Block Program
$1.98b $2.73b $1.5b $1.25b
• Bridge Program $225m $475m 0 $1.25b
Total Highway Investment $46.8b $48.5b $48.1b $49.05b
Airport Improvement Program
(AIP)
$3.35 billion $3.35 billion $3.35 billion $3.35b
Supplemental AIP (GF) $1.0 billion $500 million $500 million $450m
Total AIP Investment $4.35b $3.85b $3.85b $3.8b

15. Pavement Issues In FY20 THUD Appropriations
▪ Provides $3 million for airfield asphalt pavement research
▪ NO PAVEMENT DESIGN OR TYPE SELECTION MANDATES!
▪ FHWA directed to:
▪ Issue reports on how FHWA ensures competitive bidding
▪ Improve data sharing
▪ Apply “Buy American” to aggregates and polymers
▪ Study impacts of AVs on pavement service life
▪ Encourage composite materials
▪ TRB directed to develop resiliency metrics

16. FY’20 THUD Appropriations Bill Status
▪ House passed its version
▪ Senate passed its version
▪ FY 2020 began on October 1, 2019
▪ Congress approved a continuing resolution (temporary spending
bill) that extends FY’19 appropriations through November 21.
▪ Lawmakers from both parties, both houses must meet to resolve
differences before November 21.
▪ Key Message: Congress do your job!
▪ Otherwise, temporary funding which adds uncertainty.

17. Authorization
2015
2012
MAP-21
“Performance
Measures”
FAST Act
“Freight”
SAFETEA-LU
“Bridge to
Nowhere”
1998
1991
TEA-21
“Spend down the HTF”
ISTEA
“Intermodal”
2005

18. The Looming Crisis
How will
Congress solve?

19. The Highway Trust Fund Cliff

20. Revenue Options

21. America’s Transportation Infrastructure Act
▪ Approved by Senate Environment and Public Works Committee
▪ Authorizes Federal aid Highway Program 2021 – 2025
▪ $37.9 billion increase above existing levels of highway investment plus inflation
▪ No financing provisions
▪ Reauthorizes AID-PT (asphalt) research and deployment program.
▪ Emphasize on resiliency
▪ No “pavement design” or “pavement-type selection” mandates
▪ Status and Outlook
9/30/19, 11:24 AM
CNBC: Is infrastructure dead?
Leader McConnell: "No. We will do a transportation bill. It will be more along the
size of a traditional every four- or five-year transportation bill.”

22. Pavement Issues Under Serious Consideration
by Authorizing Committees
NAPA Has Position
▪ Mandate Life-Cycle Cost Analysis
▪ Reauthorize AID-PT Program
▪ Plastics in Asphalt
▪ Work Zone Safety Contingency Funds
▪ CO2 Emission Reduction
NAPA Working On
▪ Resiliency
▪ Open Competition
▪ Graphene in Asphalt
▪ Autonomous Vehicle Impacts on Pavements
▪ Apply “Buy American” to Aggregates and Polymers
NAPA solves the issues you cannot do on your own.

23. Highway Funding Cut – July 1, 2020
▪ 19.2% highway funding cut mandated by FAST Act
▪ $7.6 billion cut of unobligated Federal-aid highway program contract authority
▪ Per FHWA, California cut will be $280 million
▪ Congress can repeal the cut but if they don’t:
▪ Lowers the baseline for future highway funding
▪ Impacts Caltrans programs
▪ States may be forced to de-obligate funding on existing projects

24. What You Can Do!
▪ Download this document
www.AsphaltPavement.org/Grassroots
▪ Go to NAPA website to get messages
▪ Conduct in-district meetings
▪ Hold plant tours
▪ Support NAPA PAC

25. Next Steps and Messages
▪ Urge Congress to approve FY 2020 Appropriations this year
▪ Press for a repeal of the $7.6 billion rescission in highway funding
▪ Tell Congress to do their job: enact a 5-year reauthorization
▪ Fix Highway Trust Fund
▪ Increase highway investments
▪ Protect the asphalt pavement market
▪ Oppose pavement mandates
▪ Help us secure funding for asphalt pavement research