Company Logo. [COMPANY NAME] impact in [STATE]

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2 Company Logo Since its inception in [YEAR], [COMPANY NAME] has made quality construction an operational priority. Currently [COMPANY NAME] operates [XX] asphalt plants, with operations in [STATES]. [COMPANY NAME] is the #1 transportation contractor in the Mid-Atlantic region according to Engineering News- Record Magazine. The company is led by [PRESIDENT/CEO NAME] who joined the company in [YEAR]. The [COMPANY NAME] Plant's material has been used in many [STATE DOT], local airports, and commercial projects throughout [COUNTIES]. The facility can produce [XXX tons] of asphalt mix per hour and has [XXX tons] of storage capacity. [COMPANY NAME] Plant also produces quality Warm Mix pavement. The [COMPANY NAME] Plant is approved for use by [XXX DOT], the PA Turnpike, and has a AMRLcertified lab. It also enjoys FAA certification and has received the Diamond Achievement Commendations. Direct Jobs xxx Pennsylvania resident employees xxx million in Pennsylvania annual sales xxx tons asphalt produced annually xxx tons of Aggregate Produced annually xxx [COMPANY NAME] impact in [STATE] Nearly 1,000 Other Jobs Supported by Company Name Independent Truckers Engineering Firms Subcontractors Equipment Dealers & Service Local Retailers Tire Suppliers Equipment Suppliers Electrical Contractors Parts Suppliers Fuel Suppliers Aggregate Suppliers (sand and stone) Liquid Asphalt Suppliers [STATE] Taxes PAID by Company Name in 2015 Payroll (state)taxes Unemployment Tax Fed Income Tax Social Security Medicare [Company] creates or supports nearly [00000] jobs annually in the region, contributes more than [$XX million] each year to personal income and averages [$XX million] to total sales revenue in [STATE]. These are very impressive numbers for a family-owned business.

3 NAPA Talking Points Critical Highway Funding Issues Pending Before the 115 th Congress 1. IMPLEMENT: Sustainable, Long-Term Funding for Transportation Investment Talking Point: A permanent Highway Trust Fund solution should be part of any tax reform plan and that all options should be on the table to rectify this situation once and for all. Background: Even though Congress enacted the FAST Act, their job is not done. The Highway Trust Fund still needs a long-term guaranteed revenue source. If Congress does not act, the Highway Trust Fund will face annual revenue shortfalls of $18 billion once the FAST Act expires in Stabilizing and growing federal surface transportation investment must be a component of any pro-growth tax-reform proposal. The Ask: Implement a sustainable, long-term revenue source for the Highway Trust Fund. 2. SUPPORT: Increased Federal Transportation Investment Talking Point: Now is the time for making real investments in infrastructure that includes providing the funding needed to ensure the U.S. economy is able to thrive and that benefits everyone across the country. Background: Each year, America's highways support more than 3 trillion vehicle miles of travel. Highway funds should support the repair and rehabilitation of existing facilities as well as targeted expansion to reduce congestion, improve air quality, and enable growth. The 115th Congress should pass a robust jobs and infrastructure bill that provides an additional $1 trillion over the next five years to create jobs, raise real wages, and build the infrastructure that the country needs to thrive for decades to come. The need for federal investment in physical capital is enormous. According to the American Society of Civil Engineers, the United States needs to invest trillions of dollars on infrastructure maintenance and expansion projects. For too long, policymakers have ignored the growing backlog of maintenance projects, instead relying on a reactive approach that struggles to respond when critical systems fail and has not kept up with population growth. The Ask: Pass a robust jobs and infrastructure bill that provides an additional $1 trillion over the next five years to create jobs, raise real wages, and build the infrastructure that the country needs to thrive for decades to come. 3. HONOR: Authorized Funding Levels in Appropriations Process Talking Point: Congress must complete action on a fiscal year 2018 appropriations bill that funds highway programs at FAST Act levels. Background: Congress must pass legislation that funds the U.S. Department of Transportation for fiscal year In addition to ensuring the continuity of the federal highway program for FY 2018, the measure would deliver critical investments to help upgrade the nation s transportation infrastructure network. Delivering certainty and resources to state departments of transportation will help minimize disruptions to the 2018 construction season. This action is particularly important for the many states that rely on federal funds to support the majority of their annual highway and bridge capital improvements. The Ask: Honor the funding levels authorized in the FAST Act during the FY 2018 appropriation process.

4 CONGRESS NEEDS TO ENACT A LONG-TERM REVENUE SOLUTION FOR THE HIGHWAY TRUST FUND The FAST Act s authorization of $305 billion for federal highway and other transportation programs from 2016 to 2020 was an important step in investing in our multimodal transportation infrastructure, but still falls far, far short in investing the necessary funds to bring the nation s highway network up to a state of good repair. Under the FAST Act, the Highway Trust Fund (HTF) continues to remain at a crossroads. The HTF has provided stable, reliable, and substantial highway funding for decades since its inception in 1956, but this is no longer the case. Since 2008, the HTF has been sustained through a series of General Fund transfers now amounting to $140 billion. According to the January 2017 baseline of the Congressional Budget Office, HTF spending is estimated to exceed receipts by about $17 billion in FY 2021, growing to about $24 billion by FY Furthermore, the HTF is expected to experience a significant cash shortfall in FY 2021, since it cannot incur a negative balance. Framing this HTF cliff in terms of federal highway obligations, the American Association of State Highway and Transportation Officials (ASSHTO) estimates that states may see a 40 percent drop from FY 2020 to the following year from $46.2 billion to $27.7 billion in FY In the past, such similar shortfall situations have led to the possibility of reduction in federal reimbursements to states on existing obligations, leading to serious cash flow problems for states and resulting project delays. This is a devastating scenario that Congress must address. ESTIMATED FEDERAL HIGHWAY AND TRANSIT OBLIGATIONS BEYOND FY 2020 WITH NO ADDITIONAL REVENUES TO THE HIGHWAY TRUST FUND Estimated Federal Highway Trust Fund Obligations in billions

5 ANY NEW INFRASTRUCTURE PACKAGE MUST BUILD ON THE FAST ACT NAPA recognizes a special opportunity this year to enact a major infrastructure investment initiative. The Trump Administration has pledged full support in bringing US infrastructure up to standard and there is strong bipartisan support in Congress to stand by President s Trump s pledge. As the President considers the outlines of this package for transportation infrastructure, NAPA offers the following recommendations. Utilize the Existing Formula-based Funding Structure For over one hundred years and as exemplified by the FAST Act we as a nation have enjoyed the benefits of the federal government s highly successful partnership with state DOTs to build and maintain the nation s surface transportation system. From the Federal-aid Road Act of 1916 establishing the foundation of a federally-funded, state-administered highway program that has been well-suited to a growing and geographically diverse nation, federal investment in the highway system have allowed states and their local partners to fund a wide range of projects that serve the interest of the nation as a whole. Thanks to the Federal Highway Administration (FHWA) cooperative partnership approach with the state transportation agencies that defers material-type selection, project selection, and investment decisionmaking to state and local governments, diverse communities in rural, suburban, and urban areas of the country have all been able to help people get to and from work, and help goods get access to a larger market than ever before in a way that best meet their unique needs. Based on the federal surface transportation program s long track record of efficiency and flexibility, NAPA recommends that any increase in federal funds should flow through the existing FAST Act programs. Putting the program framework that built the Interstate Highway System and the National Highway System the backbone of our national network of roads and bridges that drive the national economy into work again to deploy additional federal resources represent the optimal approach to serve each and every corner of our country, improving mobility and quality of life in urban, suburban, and rural areas. Direct Funding Instead of Financing Tools Beyond fixing the HTF, we believe any major transportation infrastructure package must focus on direct funding rather than on federal financing support. This is because financing tools that leverage existing revenue streams such as user fees and taxes are typically not viable for most transportation projects in the United States. It should be said that many transportation agencies already access capital markets to help speed up the delivery of much-needed transportation improvements, and many states already rely on various forms of financing and procurement ranging from bonding, TIFIA credit assistance, state infrastructure banks, and public-private partnerships. However, there are limitations to the use of such financing tools. The fact is that most transportation projects simply cannot generate a sufficient revenue stream through tolls, fares, or other user fees to service debt or provide return on investment to private-sector equity holders. In 2014, such non-direct funding sources amounted to less than 18 percent of total capital outlays. The evidence is clear, our nation needs a highway network overhaul. In its 2017 report card, the American Society of Civil Engineers graded America s roads a D and said more than two out of every five miles of the nation s urban interstates are congested. One out of every five miles of highway pavement is in poor condition and our roads have a significant and increasing backlog of rehabilitation needs. After years of decline, traffic fatalities increased by 7% from 2014 to 2015, with 35,092 people dying on America s roads.

6 Congress has been underfunding the Federal-aid Highway system for years bringing America s infrastructure closer to third-world status and resulting in a $836 billion backlog of highway and bridge capital needs. The bulk of the backlog ($420 billion) is in repairing existing highways, while $123 billion is needed for bridge repair, $167 billion for system expansion, and $126 for system enhancement (which includes safety enhancements, operational improvements, and environmental projects). Congress must increase Federal-aid highway funding to tackle the massive backlog of highway needs. The current user fee of 18.4 cents per gallon on gasoline and 24.4 cents per gallon on diesel should be raised and tied to inflation to restore its purchasing power, fill the funding deficit, and ensure reliable funding for the future. According to FHWA, each dollar spent on road, highway and bridge improvements results in an average benefit of $5.20 in the form of reduced vehicle maintenance costs, reduced delays, reduced fuel consumption, improved safety, reduced road and bridge maintenance costs, and reduced emissions as a result of improved traffic flow. NAPA POSITION STATEMENT NAPA recognizes that America s economic vitality and ability to compete in the global marketplace depends on an integrated national, intermodal surface transportation network that reliably moves goods and people to maximize global competitiveness, quality of life, and economic prosperity for all citizens. To realize this economic prosperity and global competitiveness, our nation must invest in highway infrastructure systems that not only keeps pace with today s businesses and industries, but will also allow for healthy expansion in the future. This requires a robust and sustainable funding mechanism for the HTF. NAPA urges Congress to coalesce around the common goal of enacting a long-term, robust and sustainable funding mechanism that addresses the Highway Trust Fund (HTF) shortfall with solutions that both stabilize and increase critical highway investments to position America s economy for future success. We recognize that for Congress to make this significant step forward, new revenues for the HTF must be instituted and we believe the best opportunity to do so will be through tax reform.

7 KEY FACTS ABOUT PENNSYLVANIA S SURFACE TRANSPORTATION SYSTEM AND FEDERAL FUNDING May 2017 Roads and highways are the backbone of the U.S. transportation system, allowing Americans to travel more than 2 trillion miles annually. But conditions on the system are deteriorating, as the need for transportation improvements far outpaces the amount of state and federal funding available. As Pennsylvania and the nation continue to rebound from the recession, making needed improvements to roads, bridges and public transit could provide a significant boost to the state s economy by creating jobs and stimulating long-term economic growth as a result of enhanced mobility and access. In December 2015 President Obama signed into law a long-term federal surface transportation program that includes modest funding increases and allows state and local governments to plan and finance projects with greater certainty through The Fixing America s Surface Transportation Act (FAST Act) provides approximately $305 billion for surface transportation with highway and transit funding slated to increase by approximately 15 and 18 percent, respectively, over the five-year duration of the program. While the modest funding increase and certainty provided by the FAST Act are a step in the right direction, the funding falls far short of the level needed to improve conditions and meet the nation s mobility needs and fails to deliver a sustainable, long-term source of revenue for the federal Highway Trust Fund. When the FAST Act expires at the end of FY 2020, the Congressional Budget Office projects the average annual shortfall to the federal Highway Trust Fund will grow to $18 billion. Federal Funding for Our Nation s Surface Transportation System Generates Jobs; Making Needed Highway Improvements Assures Economic Recovery and Growth Enhancing critical transportation assets will boost the economy in the short-term by creating jobs in construction and related fields. In the long-term these improvements will enhance economic competitiveness and improve the quality of life for the state s residents and visitors by reducing travel delays and transportation costs, improving access and mobility, improving safety, and stimulating sustained job growth. The 2015 AASHTO Transportation Bottom Line Report found that annual investment in the nation s roads, highways and bridges needs to increase from $88 billion to $120 billion and from $17 billion to $43 billion in the nation s public transit systems, to improve conditions and meet the nation s mobility needs. The report also found that the current backlog in needed road, highway and bridge improvements is $740 billion. The Federal Highway Administration estimates that each dollar spent on road, highway and bridge improvements results in an average benefit of $5.20 in the form of reduced vehicle maintenance costs, reduced delays, reduced fuel consumption, improved safety, reduced road and bridge maintenance costs and reduced emissions as a result of improved traffic flow. A 2015 survey of corporate executives by Area Development Magazine listed highway accessibility as the number two site selection factor, behind only the availability of skilled labor. Seventy-nine percent of the $1.1 trillion worth of commodities shipped to and from sites in Pennsylvania is transported by trucks on the state s highways. An additional 14 percent is delivered by parcel, U.S. Postal Service or courier, which use multiple modes, including highways Connecticut Avenue, NW, Suite 208 Washington, DC Phone: (202) tripnet.org

8 Current Road and Bridge Conditions, Travel Trends and Traffic Congestion Fifty-six percent of Pennsylvania s major roads are in poor or mediocre condition. Driving on roads in need of repair costs Pennsylvania motorists $5.4 billion a year in extra vehicle repairs and operating costs $606 per motorist. Twenty percent of Pennsylvania s bridges are structurally deficient. Nineteen percent of Pennsylvania s urban Interstates experience congestion during peak hours. Traffic congestion costs American motorists $121 billion a year in wasted time and fuel costs. Vehicle travel on Pennsylvania s highways remained the same from 2000 to Pennsylvania s population grew by four percent between 2000 and Americans rely almost exclusively on motor vehicles for mobility. Travel in private vehicles accounts for 88 percent of all person miles of travel. Air travel accounts for eight percent of all person miles of travel, while transit (including buses and trains) accounts for one percent. Vehicle travel on America s highways increased by 17 percent from 2000 to 2016, while new road mileage increased by only five percent. The nation s population grew by 15 percent from 2000 to Roadway Improvements Can Save Lives and Reduce Traffic Crashes It is estimated that roadway features are likely a contributing factor in approximately one-third of traffic fatalities. There were 1,200 traffic fatalities in 2015 in Pennsylvania. A total of 6,199 people died on Pennsylvania s highways from 2011 through Pennsylvania s traffic fatality rate of 1.19 fatalities per 100 million vehicle miles of travel is higher than the national average of The fatality rate on the state s rural non-interstate roads is disproportionately higher than that on all other roads in the state (2.33 fatalities per 100 million miles of travel vs. 0.83). Motor vehicle crashes in which roadway design was likely a contributing factor cost Pennsylvania motorists $1.9 billion per year in medical costs, lost productivity, travel delays, workplace costs, insurance costs and legal costs. Where appropriate, highway improvements such as removing or shielding obstacles, adding or improving medians, widening lanes and shoulders, upgrading roads from two lanes to four lanes, and improving road markings and traffic signals can reduce traffic fatalities and accidents and improve traffic flow to help relieve congestion. According to a study conducted by the Federal Highway Administration, $100 million spent on highway safety improvements will save 145 lives over a 10-year period. Data from the U.S Census, the U.S. Department of Transportation, the Federal Highway Administration, the Bureau of Transportation Statistics, the National Highway Traffic Safety Administration, the Congressional Budget Office, AASHTO and the Texas Transportation Institute was compiled and analyzed by TRIP, a nonprofit transportation research group based in Washington, D.C. Information is the latest available Connecticut Avenue, NW, Suite 208 Washington, DC Phone: (202) tripnet.org

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