This document summarizes information presented by Jay Hansen of the National Asphalt Pavement Association (NAPA) on asphalt industry trends and policy issues. It provides an overview of asphalt production levels in the US from 2002-2012, outlines provisions and funding levels under the MAP-21 transportation bill, and discusses challenges around long-term funding and implementation of MAP-21, including pavement performance metrics and promotion of new technologies. It also identifies grassroots advocacy targets in Congress and outlines NAPA's battle plan for engagement.

1. WASHINGTON
VIEW
Jay Hansen
Executive Vice President
National Asphalt Pavement Association

2. Government Affairs Team
• Jay Hansen – Executive Vice President
• Michele Stanley – Director of Gov. Affairs
• Ester Magorka – Director of NAPA PAC
• Van Scoyoc Associates
• Whitmer & Worrall

3. Presentation Overview
• Industry Facts
• MAP-21 Overview
• 113th Congress
• Plan Going Forward

4. Tons of Asphalt Pavement
Produced in U.S.
million tons
537
516
550 533 521
470
402
362 360 345 338
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Tons of Asphalt Pavement
Produced in the U.S. (million tons)

5. MAP-21
• 6yr Bill on Policy
• 2yr Bill on Funding
• Most pavement centric
bill since ISTEA (1991).

6. Annual Federal Highway
Investment
SAFETEA-LU EXTENSIONS MAP-21
$39.1 $40.2 $40.7 $41.1 $41.1
$39.1 $39.7 $40.3
0
5
10
15
20
25
30
35
40
45
FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15

7. Status of Highway Trust
Fund
39.8 40.4 41.8 41.8 42.8 43.6 44.6 45.6
37.6 39.3 43.7
33.9 34.7 35.4 35.6 35.6
9.7
5.3 4.3
-6.8
-17.3
-27.5
-38
-48.8
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
In Billions
Highway Funding Highway Trust Fund Receipts End-of-Year Balance
Status of Highway Trust Fund

8. 2013 Funding Issues
• Sequestration - Highway Trust Fund spending
not impacted.
–General Fund transfers are impacted.
• Continuing Resolution
–House bill did not fund MAP-21 increase.
–Senate bill fully funds MAP-21.
–Senate bill signed into Public Law.
– Federal highway funding this construction season
for California at $3.5 billion or 2.5% increase.

9. 2014 Funding Issues
• House Budget – Fully funds MAP-21.
–Highway spending craters in 2015.
• Senate Budget – Fully funds MAP-21.
–Includes “Reserve Fund” in 2015 and beyond.
• President’s Budget – Aligned with Senate’s.
• Bottom-line – For 2014, fully expect MAP-21
funding levels.
–California – $3.4 billion in 2014
• Problem – What happens in 2015?

10. Annual Federal Highway
Investment
SAFETEA-LU EXTENSIONS MAP-21 CLIFF
$39.1 $40.2 $40.7 $41.1 $41.1
$39.1 $39.7 $40.3
$4.2
0
5
10
15
20
25
30
35
40
45
FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15

11. MAP-21 Implementation
Issues
• Measure Pavement Performance on Interstate
Highway System.
–What’s the metric?
• Accelerated Implementation and Deployment
of Pavement Technologies Program
–Deployment of new cost-effective
designs, materials, and practices.
–$12 million for asphalt to deploy high
RAP, RAS, WMA, Perpetual Pavements, and
clearinghouse.

12. Pavement Issues in 112th
Congress
• Geosynthetic Materials
–GAO Report/Transportation Appropriations Bill
• Fibers
–Former Ohio Rep. Dennis Eckert Lobbying
–Says increases pavement life
• Steel Slag
–MAP-21 Amendment
• Crumb Rubber
–Hired lobbyist to push

13. Pavement Economic Issues
• New Federal LCCA Process
• Require Alternate-Design/Alternate-Bid
• MEPDG Mandate
• NAPA defeated mandates
–GAO preparing report on LCCA best practices
–Report due in June
• Material-Specific Discount Rates
– OMB Circular A-94

14. Outlook for 113th Congress
• Funding – Needs to address 2015
• Competition Issues
–Pavement Economics
•LCCA
•Price Adjustment Clauses
–Pavement Sustainability
•Urban Heat Island
•LCA/PVI as Pavement Selection Tool
• All these issues are at state level too!

15. Dates to Know
2013 Apr Jun Aug Oct Dec
Feb
2014
Apr Jun Aug 2014
Today
MAP-21
Funding
Expires
9/30/2014NAPA Asphalt
Fly-In
9/11/2013
US Debt Limit
Reached
5/19/2013
FY2014
Congressional
Budget Due
4/15/2013
MAP-21 Task Force
Grassroots
Congress Decides
2015 Market

16. Grassroots Target List
Gary Miller (R) – T&I Com., Highway
Sub., Cement Caucus Member
Kevin McCarthy (R) – Maj. Whip, Cement Kiln
Senator Boxer (D) – EPW Chair

17. Battle Plan
• DC Meeting
• District Meeting
• Plant Tour
• NAPA PAC Fundraiser
• DC Follow-up Meeting
• Asphalt Fly-In

20. More Information
NAPA Legislative Committee
NAPA Political Action Committee
MAP-21 Reauthorization Task Force
NAPA-SAPA Legislative Task Group
www.AsphaltPavement.org/GovAffairs
Midyear Meeting, Boston, July 15-17, 2013
Asphalt Fly-In September 11-12, 2013
JHansen@AsphaltPavement.org