December 16, 2009

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DOT Announces $280 Million for New Livability Initiative
FUNDING FOR STREETCAR, NEIGHBORHOOD PROJECTS

On December 1, Transportation Secretary Ray LaHood announced the availability of funding through the new Interagency Partnership on Sustainable Communities of the Department of Transportation, Department of Housing and Urban Development, and Environmental Protection Agency. The funding will be used to create a Federal Transit Administration bus livability grant program and an urban circulator livability program.

Applications for the new grants programs are due by February 8, 2010, and DOT anticipates making formal grant announcements by the end of March. Complete details on eligibility and application requirements are available at http://edocket.access.gpo.gov/2009/E9-29245.htm (urban circulator) or http://edocket.access.gpo.gov/2009/E9-29242.htm (bus livability).

Funding for the new program comes from unallocated discretionary funds for the New Starts/Small Starts Bus and Bus Facility programs. DOT is using $280 million in previously unobligated funds for the program. Approximately $130 million will be available for the circulator program largely aimed at funding streetcar, circulator, and other local transit and mobility projects. Grants will be limited to a maximum of $25 million per project. According to the agency, eligible projects will promote walkable, mixed-use development. $150 million will be available for projects that focus on linking buses and bus facilities and improving job access or neighborhood redevelopment. Key evaluation criteria include the promotion of livability and sustainability, and addressing the six livability principles previously outlined by the interagency partnership.

In this issue:

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DOT Announces $280 Million for New Livability Initiative

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Congress Reaches Agreement on Transportation and Housing Appropriations

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Congress and Administration Consider Major Jobs Bill

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Transportation Authorization Faces Another Extension

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"Active Communities" Bill Encourages Biking and Walking

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FCC Issues New Ruling on Siting

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Water Infrastructure May Get Boost in Jobs Bill

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Volunteers Needed for Rebuilding America

Previous issues

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Congress Reaches Agreement on Transportation and Housing Appropriations
$150 MILLION PROVIDED FOR NEW SUSTAINABILITY GRANT PROGRAM

House and Senate conferees reached an agreement on provisions of the FY 2010 Transportation, Housing and Urban Development (THUD) Appropriations conference report. Funding for five additional agencies was added to the THUD language as Congress races to wrap up the FY 2010 funding bills before the current continuing resolution expires on December 18. Included in the so-called "minibus" package will be funding for Commerce, Justice, Science, and Related Agencies; Financial Services and General Government; Labor, Health and Human Services, Education, and Related Agencies; Military Construction, Veterans Affairs, and Related Agencies; and State, Foreign Operations, and Related Programs. Combined, the six bills total $446.8 billion in discretionary budget authority.

The THUD provisions totaled $122.1 billion, including $67.9 billion in discretionary funds, a $13.4 billion increase over the fiscal 2009 level. Following the lines of the administration's request, the transportation package includes $41 billion for federal highways, $10.7 billion for the Federal Transit Administration, and $1.6 billion for Amtrak. The agreement includes $2.5 billion for high-speed rail, which is $1.5 billion more than the White House had requested. This final agreement also left out language regarding the National Infrastructure Bank because the bank has not yet been legislatively authorized.

The spending package includes $4.45 billion for Community Development Block Grants, including $150 million for the Sustainable Communities Initiative. The sustainability funding includes $100 million for planning grants. Details on the grant program, including eligible uses and the application process, will be released in early 2010.

The package includes a key funding change for HOPE VI and Choice Neighborhoods: It appropriates $200 million for HOPE VI and $65 million for Choice Neighborhoods. The Obama administration has proposed overhauling and expanding the scope of HOPE VI by establishing the Choice Neighborhoods program. Congress has yet to authorize the new program, although draft language is now circulating. The Senate allocated $250 million for Choice Neighborhoods, with the intention of replacing HOPE VI. The House allocated $250 million for the existing HOPE VI program with the understanding that the funds would be transferred to Choice Neighborhoods upon the program's authorization.

The agreement also resolved a difference over funding for HUD's brownfield and economic development initiative (BEDI). Both the Obama administration and the Senate proposed eliminating funding for the program while the House allocated $35 million. The compromise includes $17.5 million for BEDI. Also included are $25 million for the Rural Innovation Fund, $50 million for the Energy Innovation Fund, and $8.5 million for Section 8 Project-Based Vouchers. Congress is expected to adopt the appropriations package before the holiday recess.

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Congress and Administration Consider Major Jobs Bill
INFRASTRUCTURE FUNDING COULD BE INCLUDED

Congressional leaders and the Obama administration are now considering legislation to address lingering high rates of unemployment. President Obama convened a special White House summit on job creation and signaled his intent to promote legislation aimed at promoting job creation. Leaders on Capitol Hill are considering tapping unspent and repaid balances in the TARP account to fund a new spending package. Among the key ideas under consideration is an infusion of new investment in infrastructure projects, particularly transportation projects.

Any legislation is likely to be considered next year because the Senate is currently focused on health care reform and the need to clear year-end appropriations bills. However, the FY 2010 defense spending bill is being held back from the omnibus package in order to be used as a vehicle for must-pass bills that have yet to move on their own this year. Job support provisions, such as an extension of unemployment insurance and health benefits, are expected to be added to this legislation. Congressional leaders may consider adding some infrastructure funding to this bill before doing a larger jobs bill with as much as $150 billion in funding.

President Obama outlined his jobs proposal on December 8 and included a request for up to $50 billion in funding for transportation in the immediate future. As part of his plan, project selection would be based on merit, and investment would be leveraged with both grants and loans.

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Transportation Authorization Faces Another Extension
SEVERAL SCENARIOS UNDER CONSIDERATION

Federal transportation spending is currently set to expire along with the continuing resolution on December 18. Another extension is all but certain, but the length and amount of the extension remain unclear. Since SAFETEA-LU expired on September 30, congressional leaders have extended transportation programs along with other federal spending under the continuing resolution.

Transportation programs for FY 2010 will be enacted under the conference agreement reached for Transportation and HUD programs (see related story above). This does not resolve the future of the long-term authorization. House Transportation Committee Chairman James Oberstar (D-Minn.), who has resolutely pushed for a full authorization, has indicated that he will agree to another extension only if he receives assurances that a multi-year transportation bill is a priority for the legislative agenda in 2010.

Some on Capitol Hill have floated the idea of combining spending on jobs legislation with a mid-range extension of transportation programs of up to two years. Proponents argue that the length of this extension would give states the ability to plan for longer-term projects and the next construction season. By using general treasury revenue for this period of time, the gas tax would be temporarily unused. This would allow revenue to build up, eliminating the need for the financing debate that was expected to take place before the next authorization. Congress would be able to pass a four-year authorization with increased funding using gas tax revenue alone.

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"Active Communities" Bill Encourages Biking and Walking
BILL PROVIDES GRANTS TO COMMUNITIES

Rep. Earl Blumenauer (D-Ore.) has drafted language for legislation establishing an Active Transportation Investment Program. The program would award $2 billion in competitive, discretionary grants to communities to "encourage a mode shift to active transportation within selected communities by providing safe and convenient options to bicycle and walk for routine travel." The program would be administered by the Department of Transportation.

The program is intended to provide concentrated funding for communities to create active transportation networks that provide safe and convenient access for pedestrians and bicyclists. Local governments and regional organizations are eligible to receive funding. Grant recipients will be selected based on walking and bicycling infrastructure plans. Grants can be used to create, restore, or upgrade active transportation infrastructure. Communities must have strategic goals in place to facilitate active transportation between neighborhoods and popular work, school, and other destinations within the community. The bill is expected to be formally introduced when Congress returns from the end-of-the-year recess.

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FCC Issues New Ruling on Siting
"SHOT CLOCK" ESTABLISHED FOR APPLICATION REVIEW

The trade group representing the wireless technology industry petitioned the Federal Communication Commission last year to establish new guidelines and requirements for the review and disposition of siting applications. Last month the FCC issued its response and established a "shot clock" for local and state governments in approving wireless industry applications for construction and installation of new facilities.

The new deadline for co-locating facilities on existing towers will be 90 days, and 150 days for new tower sites. Once the deadline passes, applications are not presumed to be approved, and wireless companies will have the ability to go to court and force a decision.

APA previously filed comments with the FCC opposing the petition for changes. Local government groups and other stakeholders opposed to the petition are considering various administrative and legislative options to safeguard local authority in siting review.

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Water Infrastructure May Get Boost in Jobs Bill
FUNDING GAP REMAINS DESPITE STIMULUS SPENDING

A coalition of clean water groups is pressing Congress to include $20 billion for sewers and treatment plants in the jobs bill lawmakers may take up this month or early next year. The group's lobbying efforts had been largely focused on reauthorizing the Clean Water State Revolving Fund — the primary financing mechanism for state water projects — but the emergence of a job package that addresses infrastructure investment has led to efforts to include water projects.

Rep. James Oberstar (D-Minn.), who chairs the Transportation and Infrastructure Committee, has been a vocal backer of increasing funding for the nation's deteriorating water infrastructure and is a likely supporter of the funds. EPA estimates the nation faces a potential funding gap of between $150 billion and $400 billion for clean water infrastructure over the next decade, based on current funding levels. According to the Water Infrastructure Network — a coalition of construction, engineering, conservation, labor, and manufacturing groups — there are $35 billion in federally approved, shovel-ready water projects in just eight states, and $1 billion of federal investment in water infrastructure can generate between 20,000 and 26,000 jobs.

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Volunteers Needed for Rebuilding America
EXPERTS NEEDED TO HELP WITH TASK FORCE RECOMMENDATIONS

Through the National Infrastructure Investment Task Force and its initiative, Rebuilding America, APA is working to engage members, APA components, and its allies and partners in a national conversation about how to address our infrastructure crisis and increase investment in building communities of lasting value. The mission of the task force is to evaluate current conditions and challenges affecting the nation's vital infrastructure; develop a new vision for the nation's infrastructure; and identify specific recommendations for changes in public policy, funding, and planning practice needed to meet the infrastructure needs of the 21st century. This work will lay out a blueprint for action needed to increase and improve performance, competitiveness, community quality of life, citizen choice, equity, and efficiency.

The task force is led by the three co-chairs: APA President Bruce Knight, FAICP; APA Immediate Past-President Robert Hunter, FAICP; and APA Past President David Siegel, FAICP. In addition, eight planning experts were recently appointed to chair six infrastructure sub-categories:

  • Transportation: Robert A. Leiter, FAICP, and Diana C. Mendes, AICP
  • Water and Wastewater: Kelli Sertich, AICP, and Joseph A. Scorcio, AICP
  • Energy: Ingrid N. Kelly
  • Technology and Telecommunications: Kathleen McMahon, AICP
  • Public Facilities: Paul S. Tischler
  • Green Infrastructure: Karen S. Walz, FAICP

The task force is now looking for volunteers to begin work on each of the subcommittees in drafting and reviewing a preliminary report, which will debut at the 2010 National Planning Conference in New Orleans. For more information and to join a subcommittee, please contact govtaffairs@planning.org.