Market Outlook AGC Sees 2012 Funds Up for Education, Down for Highway Construction contractors see a mixed picture for 2012, says a Jan. 23 Associated General Contractors survey of 1,300 members. About 34% of respondents foresee more demand for higher-education-related construction, but 40% say highway funding will fall and 38% say the dollar volume of public-buildings work will decline. Even so, 32% of firms say they plan to add jobs in 2012, and only 9% foresee layoffs. Last year, 37% said they cut payroll. AGC says the number of new positions "are likely to be modest at best." Most firms

Related Links: First Phase of California High-Speed Rail Project Ready to Take Off Engineers Will Finally Be Paid For California High-Speed Rail Work The resignations in January of the California High-Speed Rail Authority's chief executive officer, Roelof van Ark, and its chairman, Thomas Umberg, several months before construction is scheduled to begin the first leg of high-speed-rail construction in the Central Valley, puts the alternative transportation initiative under renewed scrutiny. During Van Ark's 20-month tenure, costs were revised. Estimates more than doubled, to $98.5-billion. That huge dollar amount further erodes public support for the project and undermines its funding.Gov. Jerry

After two previous reports that were highly critical of Pacific Gas & Electric's natural-gas pipeline operations in the fatal 2010 San Bruno blast, its pipeline network and its record-keeping, the utility received another report that may turn out to be the most critical and the most costly of all.The California Public Utility Commission's Consumer Protection and Safety Division (CPSD) released its incident investigation report on Jan. 12. It alleged PG&E violated the Public Utilities Code and federal and state pipeline safety regulations and failed to follow accepted industry standards.On Sept. 9, 2010, a 30-in.-dia PG&E natural-gas transmission pipeline ruptured and

Related Links: No FAA Bill Deal Yet, Another Extension Likely FAA Contractors Resume Work After Stopgap Extension Passes Aviation Bill Fight Shuts Down Airport Grants Senate and House leaders have reached agreement on a thorny labor issue, clearing the way for a final deal on a multiyear Federal Aviation Administration authorization, which is more than four years overdue.FAA programs, including the agency's airport construction grants, have been operating under a long series of stopgap measures since September 2007, when the last long-term aviation bill expired. The latest stopgap, the 22rd in that series, lapses on Jan. 31.The agreement, between Senate

The U.S. District Court for the District of Columbia has reinstated the original compliance date for the boiler maximum achievable control technology (MACT) and solid-waste incinerator rules that the Environmental Protection Agency published in March 2011.In May, EPA had asked for a stay of the rules to give the agency more time to incorporate information from industry that it had not been able to include in the March 2011 rules. EPA issued a revised proposal in December 2011.But district court Judge Paul L. Friedman said in a Jan. 9 ruling that EPA's request for a delay of the rules was

The latest in a long line of stopgap authorizations for Federal Aviation Administration programs is due to expire on Jan. 31. With Congress in session for only a few days before that date and no deal yet on a multiyear measure, it looks as if at least one more extension is in the cards.For construction, the key issue is how much will be authorized—and when—for FAA's Airport Improvement Program (AIP) grants, which finance work on runways, taxiways and other infrastructure.The current stopgap is the 23rd since September 2007, when the last long-term aviation bill lapsed. Jane Calderwood, Airports Council International-North

President Obama has asked Congress to reinstate his authority to reorganize and consolidate numerous federal agencies. But while some lawmakers in Congress support the idea, others—even some leading Democrats—have reservations.In announcing his proposal on Jan. 13, Obama said that having the reorganization authority would allow him to streamline duplicative agencies and create a government that "works better." He said he would first use the power to consolidate six agencies that focus on business and trade. Those agencies include the Small Business Administration, the Office of the U.S. Trade Representative (USTR) and parts of the Commerce Dept.Senate Finance Committee Chairman Max

Related Links: Text of the legislation NTSB San Bruno Explosion Report Centers on Pipeline Seam Welds PG&E Faces Blast Aftermath Under a newly enacted pipeline safety bill, oil and gas pipeline companies could face additional safety requirements, and pipeline operators that violate federal rules will have to pay stiffer fines. But the legislation’s impact on safety and industry won’t be clear for many months because its implementation deadlines for key regulations are not until 2013 or 2014. Further, the law gives the U.S. Dept. of Transportation substantial leeway to consider the economic impact of the new rules.Other provisions call for federal

When Congress begins its new session in earnest later in January, construction industry officials and renewable-energy advocates want to see legislators extend key tax breaks that were allowed to expire on Dec. 31. Among them are the production tax credit (PTC) for solar, wind and other renewable-power sources. But some observers are pessimistic about prospects for such extensions any time soon.The House and Senate are slated to take up a further continuation of one break—the payroll-tax cut, which on Dec. 23 was extended through February. Some congressional leaders say they are ready to work on a long-term fix for the

Related Links: Business Groups Challenge New NLRB Rule NLRB Members Vote in Favor of Streamlining Union Election Process President Obama has sparked a wave of controversy by using recess appointments to fill three slots on the National Labor Relations Board.Labor union officials praised Obama's Jan. 4 announcement naming two Democrats and one Republican to the NLRB. But leading congressional Republicans and business organizations are outraged. When the three appointees were sworn in as board members on Jan. 9, it brought the panel up to its full, five-member complement and allowed the NLRB to make major decisions, something it was unable to