Infrastructure Alert - August 9, 2012

After failing to pass the Cybersecurity Act of 2012, Congress began its August recess on Friday with members of the House and Senate out of town until the second week of September. At the state level, Georgia voters shot down a one cent state sales tax that would have helped fund infrastructure improvements across the state.

On the Hill

On August 2, the Cybersecurity Act of 2012 failed to survive a cloture vote. The bill would have imposed stricter networking standards on American utilities to prevent fraudulent access or cyber-terrorism. Although the stricter measures on critical infrastructure such as railroads, water treatment facilities, and power plants were loosened from mandatory to voluntary, the bill's critics cited privacy concerns and new costs to businesses in their opposition. President Obama had penned a rare op-ed stressing the necessity of the bill.

On July 25, Congress passed the Sequestration Transparency Act, which would require the Obama Administration to detail specifically the $1.2 trillion in budget cuts that are scheduled to take place on January 2, 2013. If President Obama signs the bill, the Office of Management and Budget (OMB) would have 30 days to report its future sequester cuts to Congress. While most federal programs will experience mandatory cuts, the Highway Trust Fund may be exempt depending on the OMB's interpretation of the Budget Control Act of 2011.

Sen. Jim DeMint (R-SC) has blocked the nomination of Michael Huerta to Administrator of the Federal Aviation Administration, and indicated that he may object to approval of any nominations until next year. Huerta has been Acting Administrator of the FAA since last year. Sen. DeMint cited his desire to hold the vote after the election, as the nomination is to a five-year term.

In the seven months leading up to the August recess, Congress has considered a number of bills that impact infrastructure development, but only passed the Moving Ahead for Progress in the 21st Century Act, which reauthorizes surface transportation programs, leaving several infrastructure-related legislative priorities unresolved. While the House has passed H.R. 5972, the Transportation, Housing and Urban Development, and Related Agencies Appropriations Act, and H.R. 5325, the Energy and Water Development and Related Agencies Appropriations Act, the Senate has yet to vote on the equivalents. Additionally, neither body has acted on bills to reauthorize Coast Guard activities (H.R...