ROCKVILLE, MD–(Marketwire – Dec 17, 2012) – There is a growing disconnect on both the federal and state levels between the amount of money being generated from fees paid by users of the U.S. road system and the amount of money required to maintain and expand that system. High gas prices exacerbate the problem, as well as pressure to move towards more fuel-efficient cars and alternative energy vehicles, creating a reduction in fuel use that has the effect of also reducing the amount of gas tax revenue.
Capital spending for roadways has averaged a 6% per 10-year CAGR since 1950. However, a new forecast anticipates the CAGR of spending during the next decade to be just 4.8% between 2013 and 2022. According to The U.S. Road, Bridge & Tunnel Construction Market, a new study from energy market research publisher SBI Energy, as long as both state and federal governments refuse to increase their respective gas taxes or implement other user-based funding schemes, long-term market prospects remain bleak.
“While the pay-as-you-go system has worked reasonably well for decades, it is no longer able to pay for all of the roadway construction required to maintain the U.S. road network at its current performance level,” according to Norman Deschamps, SBI Energy analyst and author of The U.S. Road, Bridge & Tunnel Construction Market.
The Federal Highway Trust Fund (HTF) is the primary vehicle through which the federal government collects and transfers money to the states to fund roadway construction. The HTF operates as a pay-as-you-go system, largely funded through taxes on gas and diesel fuel, with the collected funds then transferred to the states through multi-year transportation bills.
“Almost half of the states have less than 60% of their transportation spending come from user-based taxes and fees. The pay-as-you-go system is failing at the federal level as well,” Deschamps continues. “Since 2008, the federal government has had to inject $ 32.1 billion dollars to maintain solvency of the HTF, and the Moving Ahead for Progress in the 21st Century Act (MAP-21), passed midyear 2012, transfers an additional $ 18.8 billion into the HTF through FY2013 and FY2014. Unfortunately, MAP-21 also does not address the growing discrepancy between the amount of money collected through user-based fees by the HTF and how much money state and local governments are spending to maintain and improve the nation’s roadway infrastructure.”
Unfortunately for the road, bridge and tunnel construction market, the availability of public funding has been, and continues to be, a serious constraint on the market. This lack of funding shows in the growing discrepancy between fees collected for the HTF and the amount of money needed to maintain those same assets, and in growing debts at all levels of government.
The U.S. Road, Bridge & Tunnel Construction Market by SBI Energy provides key insight into current and future construction trends for the nation’s road infrastructure, with a particular emphasis on bridge and tunnel construction segments and an analysis of key states. The analysis includes definitions, current product offerings and market detail on the following segments:
- Road construction, including lane widening, resurfacing and rehabilitation
- Bridge construction and rehabilitation
- Tunnel & wall construction
The report also studies the key elements driving new road construction, analyzing local, state and federal financing strategies that provide construction funding in the U.S., and the impact these projects have on employment.
About SBI Energy
SBI Energy, a division of MarketResearch.com, publishes research reports in the industrial, energy, building/construction, and automotive/transportation markets. SBI Energy also offers a full range of custom research services. To learn more, visit www.sbireports.com


EPA Encourages the Public to Comment on Plan for Cleanup at Evor Phillips Superfund Site in Old Bridge, New Jersey (NJ)
(New York, N.Y.) The U.S. Environmental Protection Agency has proposed a plan to clean up contaminated ground water at the Evor Phillips Leasing Company Superfund site. The six-acre vacant site is in an industrial area of Old Bridge Township, New Jersey. Past industrial activities contaminated the ground water with volatile organic compounds, which can have serious health effects. The proposed plan calls for the ground water to be treated to break down the contaminants to protect people’s health and the environment.
The EPA will hold a public meeting on June 19, 2012 to explain the proposed plan and is encouraging public comments. The meeting will be held at 6:00 p.m. at the Old Bridge Central Library, 1 Old Bridge Plaza, Municipal Center, Old Bridge, New Jersey. Comments will be accepted until July 9, 2012.
Some volatile organic compounds can cause cancer. The extent and nature of potential health effects depend on many factors, including the level and length of exposure to the pollution.
“The chemicals in the ground water at the Evor Phillips Superfund site pose health risks,” said EPA Regional Administrator Judith A. Enck. “Removing them is the best way to protect the health of people who live and work in the area. The EPA encourages the public to attend the June 19 meeting and share their views on the proposed plan.”
From the early 1970s to 1986, the Evor Phillips site was used for industrial waste treatment and metal recovery operations. Liquid waste was treated on site and two waste disposal areas were used to neutralize acidic and caustic wastewater. The site also contained 19 small furnaces for incinerating photographic film and printed circuit boards to recover silver and other precious metals. The New Jersey Department of Environmental Protection closed down the liquid waste treatment operations in1975 after the operators failed to comply with state environmental requirements. All operations at the site stopped in 1986 with the shutdown of the metal recovery furnaces.
The Evor Phillips site was listed on the EPA’s Superfund list of the nation’s most hazardous waste sites in 1983. Because of the nature and complexity of the contamination at the site, the cleanup is being conducted in three phases. The first phase, conducted by NJDEP, involved the removal of approximately 40 buried drums and soil contaminated by metals, and the construction of a ground water treatment system to prevent the contaminated ground water from moving off site. In 2002, several companies responsible for the contamination began operating the ground water treatment system, with NJDEP oversight. The companies also demolished office buildings and furnaces, and removed buried drums, contaminated soil and underground storage tanks.
The EPA took the lead in overseeing the cleanup in 2008. The removal of contaminated soil, which will begin this summer, is the second phase of the cleanup. The third phase, which is currently proposed by the EPA, is the long-term treatment of the ground water using a process known as chemical oxidation. Chemical oxidation uses chemicals to destroy pollution in soil and ground water, breaking down the harmful chemicals into water and carbon dioxide. The oxidants are pumped into the ground water at different depths in the polluted area. Each injection is followed by monitoring to evaluate the effectiveness of the treatment. Samples of the ground water would be collected and analyzed to ensure that the technology is effective. The ground water will be monitored for several years after the cleanup goals have been met to demonstrate that the ground water is no longer a source of contamination.
The Superfund program operates on the principle that polluters should pay for the cleanups, rather than passing the costs to taxpayers. After sites are placed on the Superfund list of the most contaminated waste sites, the EPA searches for parties responsible for the contamination and holds them accountable for the costs of investigations and cleanups. The cleanup of the Evor Phillips site is being conducted and paid for by the responsible parties with oversight by the EPA.
Written comments may be mailed or emailed to:
Rich Puvogel, Remedial Project Manager
U.S. Environmental Protection Agency – Region 2
290 Broadway – 19th Floor
New York, N.Y. 10007-1866
(212) 637-4410
[email protected]
For more information on the Evor Phillips Leasing Company Superfund site, go to: http://www.epa.gov/region02/superfund/npl/evorphillips/.
For a Google Earth aerial view of the Evor Phillips Leasing Company Superfund site, go to: http://www.epa.gov/region02/kml/evor_phillips_leasing.kml. (You must have Google Earth installed on your computer to view the map. To download Google Earth, visit http://earth.google.com/download-earth.html).
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U.S. EPA News