When Americans think of infrastructure, fundamental systems such as roads and bridges immediately come to mind. It’s not that airport runways, electric power grids, dams and levees, seaports, pipelines, wastewater treatment systems and other forms of infrastructure are unimportant. Rather, the nation’s vast road and bridge network is top of mind because it is used in virtually every industry that supports our way of life.

The facts speak for themselves. The U.S. boasts more than 612,000 bridges and approximately 4 million miles of roads – including a nearly 48,000-mile Interstate Highway System carrying 75 percent of the country’s heavy truck traffic, reports the American Road and Transportation Builders Association (ARTBA). 

In ARTBA’s annual economic forecast released last month, experts predicted 4.2 percent growth in this year’s U.S. transportation infrastructure market. Increased transportation investments by federal, state, and local governments will help to drive growth across all modes, says ARTBA Chief Economist Dr. Alison Premo Black. Total domestic transportation construction and related-market activity is projected to reach $278.1 billion – up from 2018’s $266.9 billion – after adjusting for project costs and inflation.

The transportation construction market also grew by 4.2 percent in 2018 compared to 2017, driven largely by gains in airport terminal and runway construction, which increased by $5.8 billion, or 33 percent. Spending on public highway and street construction rose by $2.7 billion in 2018.

One wild card in the forecast, Black says, is the outlook for the scheduled 2020 reauthorization of the Fixing America’s Surface Transportation (FAST) Act and the ability of Congress to find additional revenues to support the Highway Trust Fund. “If states start delaying transportation improvement projects in response to uncertainty over the future of the federal program, it will temper 2019 market growth,” she adds.

Although the overall U.S. transportation infrastructure market will see growth next year, highway construction market activity is expected to increase in only about half of the states. Market risks include uncertainty over material prices, increased labor costs and potential labor shortages in some regional markets. 

 

Clearing the Way to a Long-Term Infrastructure Package

It is no secret that infrastructure everywhere is deteriorating – including Texas, which contains roughly 313,000 miles of roadway (including 80,000 centerline miles) and 53,000 bridges. What’s unclear is how and when transportation agencies will find the long-term funding solutions necessary to perform maintenance and upgrades consistently.

Both President Donald Trump and Democratic Leader Nancy Pelosi, who was Speaker-designate at the time of reporting, agree that building infrastructure for America will create good-paying jobs and generate economic growth. With the Democrats recently retaking control of the U.S. House of Representatives, it will be interesting to see whether this political shift will clear the way to reaching a bipartisan agreement on a sustainable federal infrastructure package.

Tony Dorsey with the American Association of State Highway & Transportation Officials (AASHTO) believes transportation is one of those key issues that lawmakers can agree on no matter their political affiliation. This ideology makes AASHTO optimistic about progress being made as the 116th Congress convenes this month in Washington, D.C. 

“State lawmakers are choosing to invest more in transportation because they understand that business and industry cannot be successful unless America repairs, replaces and maintains its deteriorating highways, bridges, ports, transit systems and other critical infrastructure,” Dorsey says. “We know there is bipartisan awareness and support in Congress for transportation, [which] keeps us hopeful that, like lawmakers on the state level, Congress can find that bipartisan solution needed to keep America moving safely and efficiently into the future.”

Despite having a Republican-controlled Congress at the beginning of his term in office, President Trump’s conservative-led agenda for a major transportation package has not made significant headway. Politicians on both sides of the aisle expressed objections to the proposal he released last year, which relies heavily on states and local governments to increase spending for a relatively small federal match. 

Even without a new program surface transportation spending will likely become an issue under the new Democratically-led House, because the FAST Act, a five-year infrastructure spending bill, is set to expire in 2020.

The FAST Act became the first long-term surface transportation reauthorization bill in a decade when President Barack Obama signed it into law in 2015. This program’s chief source of funding comes from the Highway Trust Fund (HTF), which went bankrupt in 2008 and has been sustained again and again through federal government bailouts. Several months ago, the Congressional Budget Office projected the HTF would be depleted again by mid-2021. 

Originally, the HTF was supported by revenues collected through excise taxes on the sale of motor fuels, trucks and trailers, and truck tires; taxes on the use of certain kinds of vehicles; and interest. However, several taxes credited to the fund are scheduled to expire in September 2022, including taxes on certain heavy vehicles and tires and all but 4.3 cents of the federal tax on motor fuels. 

Dorsey adds, “The Federal Gas Tax hasn’t been raised in more than 25 years and it’s not indexed for inflation – putting the Highway Trust Fund on a path to bankruptcy when the FAST Act expires in 2020.” For the HTF to stay afloat, current spending levels would require an average of $20 billion per year in additional bailouts or revenue increases – indefinitely.

 

The President’s $1.5 Trillion Infrastructure Plan

Last February, President Trump submitted his 2019 budget proposal to Congress. In it, he recommended shifting $200 billion from other federal programs over the next decade to fund the modernization of roads, bridges, waterways, railways and more. When combined with state, local and private funds, he believes this move would help spur at least $1.5 trillion in infrastructure investments across America and could potentially create jobs for up to 414,000 infrastructure workers. 

The President’s plan contains several objectives, including eliminating regulatory barriers and streamlining federal permitting. Such changes are concerning to many  – including Kyle Shelton, Director of Strategic Partnerships at Rice University’s Kinder Institute for Urban Research.

“Under the Administration’s ‘one agency, one decision,’ dictum, environmental oversight for infrastructure projects would be reduced in order to streamline the regulatory process,” wrote Shelton in a February 2018 opinion piece titled, “What Trump’s Infrastructure Plan Missed About the Review Process.” He explains that current processes help ensure projects do not cause major harm to vulnerable populations or sensitive landscapes, and also facilitate meaningful participation from local decision makers as well as the public. 

“Undoubtedly, there are ways to improve the processes used to plan, design, and build our major infrastructural systems,” he added. “But we must carefully consider the tradeoffs we make by streamlining the regulatory process, especially if it means destabilizing decades of slow progress toward more meaningful public input.”

Recently, the U.S. Department of Transportation announced a new rule aimed at streamlining National Environmental Policy Act (NEPA) review requirements and adjust other key environmental rules to speed up and ensure “greater consistency” in the permitting of surface transportation projects. The new rule, effective November 28, 2018, implements changes made by Congress in the Moving Ahead for Progress in the 21st Century (MAP-21) Act and the FAST Act.

Specifically, modifications to 23 CFR parts 771 and 774 allow the Federal Railroad Administration to adopt the same procedures and coordinates environmental reviews with the Federal Transit Administration. The revisions will ensure that state agencies are allowed to produce a single environmental document, as well as combine a final Environmental Impact Statement with a Record of Decision document for any project. Another key provision allows projects that are within the highway right-of-way to use the far less onerous and cumbersome categorical exclusion provisions for the environmental review.

 

Texas Voters Make Transportation a Top Priority

Voting results last year show citizens are serious about getting the ball rolling on infrastructure improvements. In November, all 18 transportation measures totaling $1.27 billion in Texas passed, according to findings by the ARTBA Transportation Investment Advocacy Center (ARTBA-TIAC). One key victory occurred in Collin County, where citizens approved $740 million in bonds to fund the construction of frontage roads and non-tolled, high-speed highways and freeways.

And in Central Texas, Austin voters approved seven bond propositions totaling $925 million, including $160 million to enhance existing transportation infrastructure. From $66.5 million in street reconstruction projects, to $50 million in bridge/structure rehabilitation or replacement work, to $20 million dedicated to recuperating high-priority sidewalks – improvements to areas facilitating motorist and pedestrian mobility will bolster safety and connectedness in the community. 

This May, citizens in New Braunfels will decide on whether to approve a $146.4 million 2019 bond program consisting of various projects around the city. The proposed projects include upgrades to city streets and sidewalks, improvements to drainage areas around Woodland Road/Landa Street, the replacement of two fire stations and the expansion of a community center.

 

What’s Ahead for Texas

Over the next decade, Texas is planning to invest $75 billion in infrastructure improvements that address strategic goals in the areas of safety, preservation, congestion relief, and connectivity. 

More than 13,000 projects in rural, urban, and metropolitan areas statewide have been identified in the 2019 Unified Transportation Program (UTP), a mid-range planning tool used by the Texas Department of Transportation (TxDOT) to guide construction, development and planning activities for projects involving highways, public transportation, aviation, freight movement, state and coastal waterways, and rail. 

Of the 12 project categories outlined in FY 2019-2028, preventative maintenance and rehabilitation work is receiving the most funding at nearly $13.8 billion. Other top-funded categories include strategic priority projects ($13.3 billion), metropolitan and urban area corridor projects ($12.6 billion), and statewide connectivity corridor projects ($12.1 billion).

“Consistent with direction from Governor Greg Abbott, we are allocating some $24 billion of this to address our most critical congestion improvement needs in the state’s five major metropolitan areas,” noted Texas Transportation Commission Chairman J. Bruce Bugg, Jr. in the 2019 UTP report.

The energy sector is one area of priority in the latest UTP. With $2.1 billion allocated to the energy program in FY 2019-2028, TxDOT districts will address specifically-identified roadways impacted by traffic in the Permian Basin, Anadarko Basin, Eagle Ford, Barnett Shale, and Haynesville-Bossier energy play areas. The Amarillo district, for example, is using funds to preserve and protect roadways around U.S. 60 – a vital link to and within the Anadarko Basin. Increasing traffic in the Eagle Ford Shale is driving up maintenance needs in Corpus Christi, making the recent addition of passing lanes on SH-72 one instance demonstrating safety and capacity improvements in this area. And Loredo, located at the confluence of three major freight corridors, is funding energy-sector projects in several major oil- and gas-producing counties, including the counties of La Salle and Webb where an estimated $400 million in widening, resurfacing and bridge replacement work will help to improve the I-35 corridor.

 

Innovation: Great for Advancing Project Goals and Careers

In a public statement issued last September, newly-elected AASHTO President Carlos Braceras commented on how state DOTs are facing new challenges on multiple fronts. “As technology develops rapidly, we as owners need to adapt proactively to operate safer, more effective transportation systems,” he said. He also noted that the current robustness of our national economy, combined with low unemployment rates, is making it difficult for state agencies to compete with the private sector for engineers, technicians and information technology professionals. 

One way for DOTs to attract quality workers is to stimulate their minds, drawing them in with prospects of being leaders in their chosen fields of expertise. Fortunately, there is sky-high potential for innovation in every field of architecture, engineering and construction. TxDOT, for instance, regularly participates in cutting-edge initiatives that help to advance the future of transportation in new, exciting ways. If you browse through the online TxDOT Research Library, you’ll find information on plenty of ongoing and proposed research projects – ,from implementing unmanned aerial systems to inspect roadway infrastructure, to enhancing work zone traffic engineering strategies, to using state-of-the-art tools and systems to accelerate construction processes. These topics and others are sure to pique the interest of incoming professionals, making their jobs more meaningful by giving them a seat at the table of progress. 

Circling back to Braceras’ thoughts from earlier, it is indeed necessary to push the envelope to advance our nation’s sophisticated transportation network. This call-to-action will be easier to respond to if DOTs provide the appropriate intrinsic motivation necessary to support a confident, driven, inspired workforce.

 

---

FY 2019–2028 UTP Funding by Category

1.     Preventive Maintenance and Rehabilitation: $13,787,540,000 

2.     Metropolitan and Urban Area Corridor Projects: $12,639,370,000 

3.     Non-Traditionally Funded Transportation Project: $5,394,760,000 

4.     Statewide Connectivity Corridor Projects: $12,105,420,000 

5.     Congestion Mitigation and Air Quality Improvement: $2,220,410,000 

6.     Structures Replacement and Rehabilitation: $3,489,560,000 

7.     Metropolitan Mobility and Rehabilitation: $4,506,150,000 

8.     Safety: $3,349,350,000 

9.     Transportation Alternatives: $880,500,000 

10.  Supplemental Transportation Projects: $536,490,000 

11.  District Discretionary: $3,141,920,000

12.  Strategic Priority: $13,308,000,000 

 

Total UTP Funding: $75,359,470,000

 

---

Federal Grants Continue to Fuel Capital Investments

Investments in major grant programs have made it easier for transportation agencies to address infrastructure needs in rural communities and streamline project delivery, among other things. These grant programs include Infrastructure for Rebuilding America (INFRA), the Airport Improvement Program (AIP) and Better Utilizing Investments to Leverage Development (BUILD, formerly known as TIGER). 

Another example is the Capital Investment Grants (CIG) Program administered by the Federal Transit Administration (FTA). By the end of November, the FTA had allocated $1.86 billion of the $2.62 billion in FY 2018 CIG funds appropriated for projects by Congress.

Two months ago, the FTA awarded $281 million in new FY 2018 federal funding to five transit projects – including the $128.7 million Dallas Area Rapid Transit (DART) Red and Blue Line Platform Extensions Project in Texas. Transportation officials on this project are working to extend and modify platforms along the existing Red and Blue Lines to accommodate three-car trains with level boarding. Just over $60 million was requested through the CIG Program. Upon final FTA approval of a construction grant agreement, the project will receive $2 million in FY 2018 CIG funds to complete the CIG funding request.

 

---

TxDOT’s FY 2018 Letting Volume by Project Type  

 

Project Type	Sum of Funding Amount
Statewide	5,692,985,381.00
Local Let	256,884,390.00
Design Build	1,126,984,110.00
Non Let	197,372,863.00
Transfers	41,207,549.00
Grand Total	7,315,434,293.00

 

TxDOT’s FY 2019 Letting Volume by Project Type 

 

Row Labels	Sum of Funding Amount
Statewide	6,487,924,350.00
Local Let	420,547,642.00
Design Build	1,476,900,002.00
Non-Let	303,699,127.00
Transfer	20,754,000.00
Grand Total	8,709,825,121.00

 

---

 

TxDOT’s List of Top Highway Construction Projects

 

Project/Location:I-635 LBJ East, Dallas County

Estimated Cost:$1.6 billion

Project Delivery Method: Design-Build

Estimated Construction Start: Late 2019

Project Description:I-635 LBJ (East Section) will consist of full re-construction and widening of I-635 from U.S. 75 to I-30, including the I-30 interchange, at a length of approximately 11 miles. The general purpose lanes will be widened from 8 to 10 lanes and the existing tolled managed lanes will be rebuilt. Once rebuilt, they will continue to be operated as managed lanes. When complete, there will be a total of 10 general purpose lanes and 2 toll-managed lanes. The project also will feature construction of continuous frontage roads and numerous intersection improvements.

 

Project/Location:SH 288 Toll Lanes Project, Harris County

Estimated Cost:$820 million

Project Delivery Method: Design-Build Concessionaire

Project Duration:March 2016 to November 2019

Project Description:A vital route for commuters, freight and commercial trucking, as well as emergency hurricane evacuation, the SH 288 Toll Lanes Project will accommodate additional traffic and improve access to the Texas Medical Center and downtown Houston, while improving efficiency of SH-288. It includes construction of two major interchanges and more than 10 miles of toll lanes within the existing SH-288 median, from U.S. 59 south of downtown Houston to the Brazoria county line. 

 

Project/Location:IH-610 at IH-69, Harris County

Estimated Cost:$258.7 million

Project Delivery Method: Design-Bid-Build

Project Duration: 2017 to 2023

Project Description:This is a reconstruction project on the IH-610 West Loop, which is a major interchange and includes the IH-610 over IH-69 mainlanes over IH-69 as well as the direct connectors to and from IH-610 and IH-69. The project is located in the cities of Houston and Bellaire. Planned improvements include reconstructing one-lane connectors to two-lane connectors, upgrading the interchange to current design standards, adding shoulders on the I-610W mainlane bridge, and adding detention ponds.

 

Project/Location:U.S. 75, Grayson County

Estimated Cost:$161.7 million

Project Delivery Method: Design-Bid-Build

Anticipated Construction Bid Date:September 2019 

Project Description:This U.S. 75 project in Grayson County will improve safety, provide congestion relief and enhance traffic operations, as well as address roadway and ramp deficiencies and flooding issues along 12.7 miles spanning between the cities of Sherman and Denison. This project will also bring the interchange at U.S. 75 and U.S. 82 up to current design standards. The initial phase consists of improvements to the U.S. 75/U.S. 82 interchange, and widening of the U.S. 75 mainlanes from four to six lanes from approximately FM 1417 to SH-91.

 

Project/Location:IH-2 and I-69C, Hidalgo County

Estimated Cost:$150 million

Project Delivery Method: Design-Build

Project Duration: 2020 to 2023

Project Description:Interchange improvements at IH-2 at I-69C. Project limits on IH-2 are from 2nd Street in McAllen to FM 2557 (Stewart Road) in San Juan and on I-69C from Nolana Loop to IH-2 in Pharr. Proposed project will provide two-lane direct connectors; reconfigure on and off ramps to optimize mobility; prioritize operational improvements to mainlanes; and remove the Sugar Road/Polk Road Overpass. 

 

Project/Location: Diboll Relief Route Project, U.S. 59, Angelina County

Estimated Cost: $142 million

Project Delivery Method: Design-Bid-Build

Anticipated Construction Bid Date:Summer 2020; construction timeline is approximately 3.5 years 

Project Description:This project is dedicated to improving safety and mobility on U.S. 59 near the city of Diboll. The Diboll Relief Route will: enhance safety by providing a freeway that will serve as a relief route for U.S. 59 (future IH-69); relieve congestion and delays at the three signalized intersections within Diboll; improve mobility along the U.S. 59 corridor; and provide a more efficient hurricane evacuation route. Recent changes to the original schematics include lengthening several ramps to provide access to landlocked parcels, reconfiguring the south interchange to a more conventional diamond interchange and providing a city street connection from Old Diboll Highway to the FM 2108 interchange.

 

Project/Location:IH-45, Galveston County 

Estimated Cost:$142 million

Project Delivery Method: Design-Bid-Build

Anticipated Construction Bid Date:August 2019; construction estimated to take four years 

Project Description:This reconstruction project will widen the freeway to eight mainlanes and two, two-lane frontage roads. The project covers 3.4 miles, from south of FM 1764 to north of FM 519. This section of the freeway serves as a boundary between the city of La Marque, to the west, and Texas City, to the east.

 

Project/Location:U.S. 83, Hidalgo County 

Estimated Cost:$126 million

Project Delivery Method: Design-Bid-Build

Project Duration:September 2019 to February 2022

Project Description:This project falls within the cities of La Joya and Peñitas in Hidalgo County. Referred as to the U.S. 83 La Joya/Peñitas Relief Route, this project is intended to address traffic congestion, mobility, and safety. The project consists of constructing a new controlled access expressway facility consisting of frontage roads, mainlanes, ramps, retaining walls, bridges, connectors, and overpasses within proposed right of way, which varies from being 350 feet to 450 feet wide. Frontage roads and mainlanes will be constructed to bypass existing U.S. 83, which will become a business route. The project length is approximately 5.15 miles from FM 2221 (Jara Chinas Road) to 0.28 miles west of Showers Road. 

 

Project/Location:IH-35E, Hill County 

Estimated Cost:$92.9 million

Project Delivery Method: Design-Bid-Build

Anticipated Construction Bid Date: May 2019; construction estimated to take four years

Project Description:Designed to improve safety, enhance traffic operations, address roadway deficiencies and improve system linkage. The project will cover approximately 8 miles from the IH-35E/IH-35W split north of the Ellis County line. The project is the last remaining link in providing a minimum of three lanes in each direction along the IH-35 corridor from Austin to Dallas.