The Fixing America's Surface Transportation Act (FAST Act) Summary ...

The Fixing America’s Surface Transportation Act (FAST Act) Summary of Provisions

The “Fixing America’s Surface Transportation Act,” or FAST Act, would grow annual federal highway investments by 15.1 percent from the current $40.3 billion to $46.4 billion by FY 2020. The legislation also provides five years of predictable funding for the asphalt pavement industry. The FAST Act uses a variety of onetime cost savings and non-transportation resources to supplement incoming trust fund revenue to support its investment levels over the next five years.

FAST Act Highway Funding Levels (billions) 2015* 40,900 (current) 2016

42, 361

2017

43, 266

2018 44, 234 The table shows annual spending levels for the highway program. 2019 45, 269 There will be an immediate and significant boost to highway spending in 2016, $2.1 billion (5.1 percent) above 2015 levels. 2020 46, 365 Congress still needs to pass an FY 2016 Transportation Appropriations Bill to confirm the funding levels specified in the FAST Act. Highway spending would then grow by 2.1 to 2.4 percent per year after 2016. Asphalt pavement tonnages in the future will correlate closely with the growth rates established in the conference report and grow as states increase their own spending on highway and road projects now that they know what the Federal commitment will be over the next five years. The FAST Act will be remembered for its freight provisions. The final conference agreement calls for expanding the National Highway Freight Network (NHFN) to include NAPA’s supported Critical Commerce Corridors (CCC). Furthermore, legislation combines freight provisions from both the House and Senate bills that creates a new core freight program as part of each states formula allocation, and replaces the old TIGER Grant program with a new freight discretionary grant program. Both programs are described below. States will be able to use the new formula-based National Highway Freight Program for projects on the National Highway Freight Network (NHFN). Larger states (any state which has over 2 percent of the US total mileage on the NHFN) would be required to spend their annual freight apportionment on projects on the primary highway freight system, critical rural freight corridors, or critical urban freight. States with less than 2 percent of the total NHFN miles would be able to spend their money on projects on any part of the NHFN within that state. The spend out rates for this program will be slow given the type of project and the fact that states may not have projects ready to go in this category. FY 2016 $1.15 billion

FY 2017 $1.1 billion




The new Nationally Significant Freight & Highway Projects Program will allow the Secretary of Transportation to award grants for large-scale, multi-modal transportation infrastructure projects, including freight “rail” projects. The minimum federal grant size is $25 million. Congress must be notified 60 days prior to awarding the grant, at which time the Congress may vote to disapprove the project. The US DOT will need to promulgate regulations for this program. Given the complexity of the projects, the rate of spending from this program will be slow. FY 2016 $800 million

FY 2017 $850 million



FY 2020 $1 billion

The FAST Act converts the Surface Transportation Program (STP) into a new Surface Transportation Block Grant Program (STBGP). Funds under this program may be used to fund highways, bridges, tunnels, ferries, transit capital, intelligent transportation systems, truck parking facilities, border infrastructure, recreational trails, and other types of projects as listed in the bill. The funding is divided between the state transportation departments and municipalities (ST/MUN) as indicated. See chart below. The STBGP is a core highway program which has the most flexibility on project eligibility. States tend to spend their funding on highways while mayors and local governments tend to invest in transit and enhancement-type projects. The FAST Act sends a clear signal that Congress wants local government to have more say in how Federal highway dollars are spent. FY 2016 $835 million 49/51

FY 2017 $835 million 48/52

FY 2018 $850 million 47/53

FY 2019 $850 million 46/54

FY 2020 $850 million 45/55

The FAST Act cuts the Transportation Infrastructure Finance and Innovation credit assistance (TIFIA) program from the current level of $1 billion to $275 million in FY 2016 (growing to $300 million in FY 2019 and 2020). TIFIA helps spur public-private partnership (PPP’s) type projects; however, the US DOT had difficulty implementing the program resulting in a slow spend-out rate. The funding levels in the FAST Act are more in line with actual TIFIA spending. The FAST Act includes the NAPA supported provision to expand the current exemption to the hours of service rule for drivers of construction vehicles, allowing those operating within a 75-mile radius to restart their work week after 24 hours of rest. This will provide some relief from the onerous hours of Service regulations for NAPA members. The Fast Act reauthorizes the Accelerated Implementation & Deployment of Pavement Technologies Program. The AID-PT program provides $12 million annually ($6 million asphalt, $6 million concrete) to utilize innovative pavement technologies in the field. This was a NAPA top priority. NAPA worked to establish the program under MAP-21 which led to the very successful and ongoing FHWA-NAPA Cooperative Agreement.

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Other Pavement Issues The FAST Act adds to the list of examples of innovative contracting methods “alternative bidding” in Section 120 of USC 23. This section encourages the use of innovative materials, contracting methods and construction practices. FHWA must agree that the method is truly “innovative” and is not bound by the legislation, and in fact has declared Warm-Mix Asphalt (WMA) as innovative despite WMA not being listed as an example in the statute. The FAST Act makes eligible for a higher federal share a pavement technology that has the following three attributes: a 75-year lifecycle, manufactured in a low greenhouse gas producing manner, and cures rapidly. FHWA has discretion whether to support the technology. A copy of the provision can be found here. The FAST Act authorizes the Assistant Secretary of Transportation for Research and Technology to examine the impact of pavement durability and sustainability on vehicle fuel consumption, vehicle wear and tear, road conditions, and road repairs and issue a report within 360 days. The study is not mandated, and no funds were authorized to conduct the study, which has already been done and released by FHWA in January 2015. NAPA strongly opposed the provision as drafted and succeeded in removing the original mandate requiring the Secretary to conduct the study. NAPA’s letter can be found here.

For more information contact Ashley Jackson or Jay Hansen.

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