The House and Senate approved a six-month extension to the Federal Aviation Administration authorization on March 18. The current authorization would have expired on March 31. The bill provides a total of $3.9 billion for the airport improvement program for fiscal 2009 and also extends the aviation excise taxes, which support the Airport and Airway Trust Fund, through Sept. 30. Lawmakers on the House Transportation and Infrastructure Committee say they hope the seven-month extension gives them the time they need to work for passage of a new four-year, $70-billion authorization bill for the agency. As a first step, the Transportation

Construction industry groups say they welcome the Obama administration’s plans announced on March 16 to free up credit markets for small businesses by temporarily increasing federal guarantees on Small Business Administration (SBA) loans to 90%, eliminating fees on 7(a) and 504 loan applications and purchasing securities backed by those loans. But they say an even more beneficial change for construction firms is the less-heralded expansion of SBA’s surety bond program. As part of the administration’s Financial Stability Plan announced by Treasury Secretary Timothy Geithner in February, the maximum amount for construction contracts that qualify for SBAguaranteed surety bonds is being

Michael L. Connor, a top Senate Energy and Natural Resources Committee staffer, is President Obama's choice to lead the Interior Dept.'s Bureau of Reclamation, the White House announced on March 18. Connor has been counsel to the energy committee since May 2001 and worked on water, Indian lands and energy issues. Interior Secretary Ken Salazar served on the Energy and Natural Resources Committee during his term in the Senate. Connor worked at Interior from 1993 to 2001 as deputy director and director of the secretary's Indian water rights office. Connor's nomination as Commissioner of Reclamation is subject to Senate confirmation.

Construction industry groups are hopeful the House’s swift passage of a multiyear authorization for wastewater funding bodes well for final congressional approval this year. The measure, which the House approved on March 5 by a 317-101 vote, would authorize $19.4 billion for wastewater infrastructure over the next five years. Of the total, $13.8 billion would go for Clean Water state revolving funds (SRFs), the principal financing source for wastewater projects. Funding would start at $2.4 billion in fiscal 2010, rise to $2.7 billion in 2011, then climb $100 million a year after that, to $3 billion in 2014. Clean Water

Short-term stopgap spending bills have become commonplace on Capitol Hill, making planning difficult for those who manage federal construction programs and companies that pursue those projects. But government and industry officials now know how much funding they will have to deal with through the end of fiscal 2009, thanks to a newly enacted $410-billion omnibus spending bill. With critics highlighting the package’s estimated $7.7 billion in earmarked funds for specific projects, House Democrats have put in place new requirements on earmarking. The legislation, which President Obama signed on March 11, merges the nine uncompleted 2009 appropriations bills and funds most

Although there has been action in the House on a four-year Federal Aviation Administration reauthorization bill, it is likely that Congress instead will approve another in a series of extensions when the current stopgap FAA measure lapses on March 31. Source: Airports Council International-North America House Transportation and Infrastructure Committee Chairman James Oberstar (D-Minn.) says it appears a six-month extension is needed to give the Senate time to work on the bill, says transportation panel spokesman Jim Berard. Such a bill would keep FAA running and its Airport Improvement Program construction grants flowing through Sept. 30, when fiscal 2009 ends.

The White House will have to keep searching for a deputy secretary for the Dept. of Transportation. Jane Garvey, the Federal Aviation Administration chief and acting head of the Federal Highway Administration during the Clinton presidency, was seen as the top choice for the No. 2 DOT post. But Garvey has declined the appointment, says a spokesperson at JPMorgan, which Garvey joined last year.

President Obama has asked the Office of Management and Budget to develop by Sept. 30 more stringent procurement guidelines to limit the use of sole-source and cost-plus contracts on federal projects. In a March 4 memo, Obama said use of sole-source and cost-plus contracts increased dramatically between 2001 and 2008. He contended that reliance on those contracts led to cost overruns and wasteful spending on federal projects during the Bush presidency, particularly in Iraq. The memo also says federal agencies should use sole-source contracts only in limited circumstances and rely more on fixed-price contracts. The White House estimates the changes

President Obama has asked federal agencies to reconsider an eleventh-hour Bush administration rule that allows agencies, in some cases, to let construction projects move forward without consulting scientists about the projects’ impact on endangered species. In a March 3 memo, Obama requested that agencies go back to the previous policy until the Bush administration rule can be reviewed. At issue is a regulation that the Interior and Commerce departments issued on Dec. 11. It gave agencies broader authority to clear projects without checking with federal scientists about how the projects would affect wildlife. The agencies said the change would make

Contractors are not pinning their hopes on the Obama administration’s stimulus efforts to completely pull them from an economic riptide that threatens not only profitability, but solvency. But they do see the $787-billion stimulus package’s $130 billion of construction spending as a life preserver that will allow them to at least tread water over the next year or two. Photo: John J. Kosowatz / ENR Shear outlined NAVFAC efforts. “It is absolutely necessary for our industry...but this is not an infrastructure panacea,” said Stephen Sandherr, chief executive of the Associated General Contractors of America, to hundreds of attendees at AGC’s