Congress passes eight-month TEA-21 extension

Pit & Quarry, Nov, 2004

After lawmakers were unable to reach agreement on a funding level for a six-year TEA-21 reauthorization bill, Congress passed an eight-month extension, and President Bush signed it into law. Bush has threatened to veto any reauthorization proposal of more that $256 billion.

Under the extension, reports the National Stone, Sand and Gravel Association, the Federal Highway Administration will receive about $24.5 billion in contract authority for the eight-month period, while the Federal Transit Administration will receive about $5.2 billion for the same period. The extension includes language that will change the law for one year to ensure the recapture for the Highway Trust Fund (HTF) of the 2.5 cents per gallon of the user fee on ethanol that now goes to the General Fund. This is equivalent to approximately $1 billion in transferred funds to the HTF.

Further, the extension ensures that all states continue to receive their 90.5 percent minimum guaranteed rate of return on fuel taxes sent to the Highway Trust Fund. Revised estimates have shown that some states dropped below that level in FY 2004. Part of the money for this will come from the release of the final $2 billion in FY 2004 highway funds, which was withheld during the previous extension. That money will be distributed through the current highway formula in lieu of earmarked projects. Also, the bill extends for one year the budgetary firewalls that tie gas user fee revenues to highway and transit programs.

Finally, the bill includes language allowing a Federal Motor Carrier Safety Administration policy regarding hours of service for commercial drivers to stay in effect until the end of FY 2005, or until administration officials complete a new rule as required by a federal appeals court.