ACECVA SMPS Economic Stimulus: What Does It Mean for the AEC Industry

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ACEC/VA -- SMPSEconomic Stimulus What Does It
Mean for the AEC Industry?

• Steve Hall
• Vice President, Government Affairs

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HR 1, the American Recovery and Reinvestment Act

• ACEC met early with President Obamas transition
  team to discuss industry priorities.
  
• An economic stimulus package was at the top of
  the list.
  
• ACEC stressed the importance of focusing stimulus
  dollars on substantive infrastructure
  improvements.
  
• ACEC also stressed additional initiatives
  SAFETEA LU reauthorization, water infrastructure,
  FAA reauthorization as part of a stimulus
  agenda.

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Economic Stimulus -- Transportation

• 27 billion for Roads and Bridges.
• States must obligate (enter into contracts) at
  least 50 of the funds within 120 days (from
  March 2nd), the remainder within one year.
  
• 30 of the funds sub-allocated to metropolitan
  areas.
  
• VAs share overall -- 694 million.
• Metropolitan area set-aside -- 117.8 million,
  divided among Richmond (24 million), Virginia
  Beach (41 million), and DC metro (52.6 million).

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Economic Stimulus -- Transportation

• For more information
• Department of Transportation economic recovery
  implementation website
  
• http//www.dot.gov/recovery/
• Federal Highway Administration implementation
  guidance
  
• http//www.fhwa.dot.gov/economicrecovery/guidance.
  htm
  
• Federal Highway Administration apportionment of
  highway infrastructure investment funds
  
• http//www.fhwa.dot.gov/legsregs/directives/notice
  s/n4510705.pdf

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Economic Stimulus -- Transportation

• 8.4 billion for Transit projects, 50 of the
  funding to be obligated within 180 days, balance
  one year.
  
• 6.9 billion for capitol projects, distributed by
  formula.
  
• 750 million for heavy rail modernization,
  distributed by formula.
  
• 750 million for New Starts discretionary
  grants.
  
• FTA finalized distribution to the states on March
  5th, starting the 180 clock.
  
• VAs share -- 111.9 million for transit capitol
  grants, 4.2 million for transit fixed guideway
  modernization (repairs to existing rail transit).

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Economic Stimulus -- Transportation

• For more information
• Federal Transit Administration economic stimulus
  information
  
• http//www.fta.dot.gov/index_9118.html
• Federal Transit Administration state-by-state
  funding table
  
• http//www.fta.dot.gov/index_9289.html

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Economic Stimulus -- Transportation

• 1.3 billion for Aviation 1.1 billion for
  airport improvement projects, 200 million for
  FAA facilities and equipment.
  
• Priority consideration given to those projects
  that can be awarded within 120 days (June 17,
  2009) and that can be completed within two years
  of the date of enactment of the Act (February 16,
  2011).
• Priority project pool has been identified (but
  not made public).
  
• Federal Aviation Administration implementation
  guidance
  
• http//www.faa.gov/airports_airtraffic/airports/ai
  p/media/FY09_aip_arra_guidance.pdf
  

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Economic Stimulus -- Transportation

• 9.3 billion for Passenger Rail.
• Includes 8 billion for grants for intercity and
  high-speed rail.
  
• 850 million for Amtrak capitol improvements.
• 450 million for Amtrak security improvements.

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Economic Stimulus -- Environmental

• 4 billion for Wastewater projects, distributed
  under existing Clean Water Act State Revolving
  Fund (SRF) formula.
  
• VAs share -- 81 million.
• Funds must be obligated within 1 year.
• 50 of the funds must be used for loan
  forgiveness, negative interest loans, and
  grants.
  
• 20 set aside for green infrastructure (EPA
  guidance includes examples).
  
• Emphasis on projects included on the state
  priority list (Intended Use Plan or IUP).
  
• More information www.epa.gov/recovery

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Economic Stimulus -- Environmental

• 2 billion for Drinking water projects, to be
  distributed under the existing Safe Drinking
  Water Act State Revolving Fund (SRF) formula.
  
• VAs share -- 20.8 million.
• Funds must be obligated within 1 year.
• 50 of the funds must be used for loan
  forgiveness, negative interest loans, and
  grants.
  
• 20 set aside for green infrastructure.
• Emphasis on projects included on the state
  priority list (Intended Use Plan or IUP).

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Economic Stimulus -- Environmental

• 4.6 billion for Corps of Engineers construction,
  operation and maintenance projects.
  
• Funding to be incorporated into existing
  multi-year program (no timelines specified).
  
• More information -- www.recovery.gov

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Economic Stimulus -- Energy

• 3.2 billion for Energy Efficiency and
  Conservation Block Grants.
  
• 6 billion for DOE environmental clean-up at
  former nuclear weapons facilities.
  
• 4.5 billion to modernize the electrical grid.
• 20 billion in renewable and alternative energy
  tax incentives.
  
• More information -- www.recovery.gov

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Economic Stimulus Buildings

• 7.12 billion for DoD construction projects
• 4.2 billion for facilities sustainment,
  restoration and modernization to be obligated by
  9/30/2010 2.9 billion in MilCon construction
  (mostly health care facilities) to be obligated
  by 9/30/2013.
• 1 billion for VA construction projects, to be
  obligated by 9/30/2010.

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Economic Stimulus Buildings

• 5.5 billion for GSA federal buildings.
• 5 billion to be obligated by 9/30/2010, the
  balance by 9/30/2011.
  
• 4.5 billion of the total to be set aside for
  green buildings projects.
  
• Approximately 7 billion for school construction,
  out of a 53.6 billion State Fiscal Stabilization
  Fund guidance to be issued soon.
  
• More information -- www.recovery.gov

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Economic Stimulus Tax Provisions

• One year delay of 3 withholding mandate (to
  2012).
  
• Bonus Depreciation.
• 5-year carry back of net operating losses.
• Extension on enhanced small business expensing.

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Economic Stimulus Learn More

• Go to ACECs website www.acec.org
• Click on the Economic Stimulus Resource Center
  link for summaries, updates, implementation
  guidance, and other resources.
  
• March 26th (next Thursday) ACEC will offer the
  latest in a series of stimulus webinars, this
  time focusing on transportation go to ACEC
  website to register.

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Government Affairs StaffSteve HallVice
President, Government Affairs

• Mark Steiner, PE
• Senior Policy Director,
• Federal International Programs
• Matt Reiffer
• Director, Transportation
• Vivian Moeglein
• Senior Policy Advisor, Transportation
• Melissa Thompson
• Government Affairs Manager

• Greg Knopp, CAE
• Executive Director, Political Affairs
• Elizabeth Coit
• Director, ACEC/PAC
• Diane Shea
• Director, Environmental and
• Energy Programs
• Katharine Mottley
• Director, Tax and Regulatory Affairs
• Lauren Bailey
• Director, State Legislative Programs