MAP-21 The Good, The Bad, and the Ugly

Election Implications for Asphalt ContractorsNAPA WebinarNovember 15, 20121PresentersJay Hansen, Executive Vice President, NAPASteve Palmer, Vice President, Van Scoyoc Associates

2Webinar Overview2012 Election ResultsChangesAdministrationHouseSenateMAP-21 Implementation and Reauthorization113th Congress Legislative AgendaQuestions3Overview

235200As the dust settles following last weeks nationwide balloting that re-elected the incumbent Democratic president, strengthened Democratic control of the Senate, and only slightly weakened Republican control of the House. Here are unofficial election results and projections, still subject to slight changes, especially pending a handful of still-unresolved House races:The Nov. 6 Congressional elections will bring in 11 new Senators and 83 new House members. 4NAPA PACNAPAs PAC provides financial contributions to members of Congress which support investment in transportation infrastructure.Develops key relationships with Congressional leaders.In 2012, NAPA PAC supported 48 members of Congress.92% of those supported in 2012 will be apart of the 113th Congress.5AdministrationWho will stay and who will go?US DOT Ray LaHoodEPA Lisa JacksonDepartment of Energy Steven Chu

Presidents Cabinet: Whether Transportation Secretary Ray LaHood will stay or go remains uncertain. While he announced earlier in the year he would leave after the election, he has given less certain signals in recent weeks. The growing speculation now is that he will likely stay for the second term.

Democrats close to the Obama administration say Environmental Protection Agency Administrator Lisa Jackson, Energy Secretary Steven Chu could all step down during Obamas second term, though the timing is far from certain.

Possible Chu replacements include Duke CEO Jim Rogers, who gained favor in Democratic circles for helping host the Democratic National Convention in Charlotte, N.C.; Center for American Progress chair and former Clinton White House chief of staff John Podesta; former Michigan Gov. Jennifer Granholm. Others have suggested that Transportation Secretary Ray LaHood could become Energy secretary.

Replacements for Jackson include EPA Deputy Administrator Bob Perciasepe; Gina McCarthy, EPAs top air official; former Pennsylvania state environmental official Kathleen McGinty, who also served as a Clinton-era environmental adviser; California Air Resources Board Chairwoman Mary Nichols; 6New Faces of the 113th Congress

The 113th Congress will be more representative of the United States from race to religion, and from gender to sexual orientation.

4 new African American representatives, 10 new Latinos, 5 new Asian Americans and 24 women in the House or Senate.

First two Hindu congress people, the first Buddhist senator, and the first atheist to openly acknowledge her belief prior to getting elected.

4 new openly gay congress people or senators, including the first openly bisexual congresswoman and the first openly gay congressman of color.

And it will be younger, with four new congressmen born in the 1980s.

The Democratic caucus, will for the first time in history, be comprised with a majority of members being women and minorities.7House235 Republicans 200 DemocratsGOP/Dem Leadership SteadyCommittees Transportation & Infrastructure Committee Transportation Appropriations (Subcommittee) Ways & Means BudgetThe make-up of the House of Representatives greatly advantages the majority party. Although Republicans lost a few seats, they will still enjoy control of the chamber and will be able to dictate the Houses legislative agenda in the new Congress.

House Transportation & Infrastructure Committee: Chairman John Mica (R-Fla.) is term-limited out of his leadership position, but may seek a waiver to stay on as chairman. Meanwhile, Rep. Bill Shuster (R-Pa.) announced his candidacy to succeed Mica as chairman. It is widely expected that Shuster will be the new chairman. The Ranking Member of the committee will continue to be Nick Rahall (D-WV) who saw Republican challenges, but easily retained his seat.

12 of the 58 current members of the committee will not be a part of the next House of Representatives. Reps. Leonard Boswell (R-IA), Laura Richardson (D-CA), and Chip Cravaack (R-MN) were defeated in their reelection bids. Reps. Jean Schmidt (R-OH), Tim Holden (D-PA), Russ Carnahan (D-MO), and Jason Altmire (D-PA) were defeated earlier in primary elections, while Reps. Tim Johnson (R-IL), Jerry Costello (D-IL), Bob Filner (D-CA) and Heath Shuler (D-NC) are retiring. Frank Guinta (R-N.H.) left the committee during the 112th Congress only to lose his re-election bid.

House Transportation Appropriations Subcommittee: Chairman Tom Latham (R-Iowa) won a member vs. member battle against T&I committee member Leonard Boswell (D-Iowa). He is expected to maintain that position, unless he opts to chair another subcommittee. Rep. Ed Pastor (D-AZ) will likely become ranking member, succeeding Rep. John Olver (D-MA) who is retiring.

House Ways & Means Committee: No changes are expected at the top of the Ways and Means Committee, leaving current Chairman Dave Camp (R-Mich.) and Ranking Member Sandy Levin (D-Mich.) as the leaders of the tax-writing committee.

House Budget Committee: Paul Ryan (R-Wis.) will get a waiver to continue as chairman.8Senate55 Democrats/Ind. 45 RepublicansDemocratic Leadership SteadyChanges on Republican SideCommittees Environment & Public Works Banking & Urban Affairs Commerce, Science & Transportation Finance Transportation Appropriations (Subcommittee)The Democrats pick-up in the Senate are marginal and will not necessarily change how it is governed for the next two years.

Senator-elect Angus King (I-Maine) has officially announced that he will caucus with the majority. He replaces long-servicing moderate Republican Olympia Snowe.

Senate Environment & Public Works Committee: Chairman Barbara Boxer (D-Calif.) is expected to retain the gavel on the Committee for the Democrats. Sen. David Vitter (R-La.) likely becomes ranking member, replacing Sen. James Inhofe (R-Okla.), who is term-limited out of his leadership position. Inhofe will stay on as a member of the committee.

Senate Banking & Urban Affairs Committee: Sen. Michael Crapo (R-Idaho) likely becomes ranking member, replacing Sen. Richard Shelby (R-Ala.), who is term-limited out. Shelby will stay on as a member of the committee. The Committee will likely continue to be led on the Democratic side by Senator Tim Johnson (D-S.D.).

Senate Commerce, Science & Transportation Committee: Sen. Jim DeMint (R-S.C.) likely becomes ranking member, replacing Sen. Kay Bailey Hutchison (R-TX), who is retiring. The Committee will likely continue to be led on the Democratic side by Senator Jay Rockefeller (D-W.V.).

Senate Finance Committee: No major changes in leadership. The committee will continue to be chaired by Sen. Max Baucus (D-MT) with Ranking Member Orrin Hatch (R-UT) holding the Republican leadership position.

Senate Transportation Appropriations Subcommittee: On the THUD Subcommittee, it would appear Senator Patty Murray (D-Wash.) will retain the gavel for the Democrats, unless she chooses to chair another subcommittee. Senator Susan Collins (R-Maine) also is likely to retain her Republican leadership role on the subcommittee.Lame Duck Post-Election SessionCongress returned this weekSession will last no more than five weeksVery full agenda. Fiscal Cliff Tax/SequestrationFY 2013 Omnibus Appropriations billCybersecurity legislationDefense AuthorizationFarm bill

Fiscal CliffWhat is it?Tax issues: Bush tax cuts, payroll tax cut, tax extendersSequester: $109 billion across-the-board cuts(Highway Trust Fund is exempt)Why does it matter?CBO estimates reduction in GDP of 3 percentIncrease in unemployment from 7.9 to 9.1 percent

NAPA Issues in 113th CongressMAP-21 Implementation Highway Funding in 2013 & 2014 Pavement Condition Performance Measures Pavement Technology Deployment Program GAO LCCA ReportMAP-21 Reauthorization Long-term funding solution for Highway Trust Fund Pavement Economic IssuesCR and FY 2014 Appropriations

Pavement Condition Regulations

12Highway Trust Fund Projections

Based on CBO Score of MAP-21 (June 2012)13Estimation of Federal Highway Obligations Through 2022(Assuming minimum prudent balance of $4 billion in Highway Account.)$ billions14

Federal investment constitutes almost half of all U.S. highway and bridge capital improvements. As such, the individuals elected November 6 will be making decisions that directly impact the transportation construction industry and its marketplace for years to come. The reauthorization of MAP-21 is less than two years away. At the end of 2014, the Highway Trust Fund will again be facing a insolvency crisis and members of Congress will be forced to find ways to supplement current trust fund revenues to prevent devastating cuts in highway and transit investment.

We cannot wait to begin educating members of Congress, particularly those that are newly elected, about the need to find a long-term Highway Trust Fund revenue solution to preserve and grow federal surface transportation investment. With the elections completed, now is a perfect time to reach out to your Representatives and Senators to engage them about the value of transportation improvements in your community and the need for action to stabilize the Highway Trust Fund.

15More Informationjhansen@asphaltpavement.org

www.asphaltpavement.org/govaffairs

NAPA Asphalt Fly-In September 11-12, 201316