U.S. Infrastructure Projects Cost Way More Than They Should, Explained

The Atlantic Cities magazine published a condensed analysis of seven main reasons that explain why U.S infrastructure project cost more than elsewhere. They are:

 1. Davis-Bacon Laws: Passed in 1931, the Davis-Bacon Act mandates that laborers for federal public works projects receive local prevailing wages. (+22%)

2. Project Labor Agreements: In 2009, President Obama signed an executive order mandating that contractors for federal projects exceeding $25 million sign Project Labor Agreements, which guarantee the hiring of union workers. (+13~15%)

3. 'Buy America' Provision: For decades, this provision has discouraged projects from being built with manufactured goods made outside the U.S. Obama strengthened it in the 2009 stimulus package to include projects besides just highways. (+10~500%)*

4. Lengthy Environmental Reviews. (+10~25%)*

5. Transportation Alternatives Program: Everyone can agree that walking trails, complete streets, historic renovations, landscaping, and bike lanes are public goods, but should they be paid for with highway fund money? This is the current policy of the FHWA. (+5~20%)*

6. Administrative Costs: Currently, U.S. transportation revenue is like a boomerang, going from the states to Washington and back. Naturally, this process adds bureaucratic costs. (+10%)*

7. Toll Bans: Although tolls exist along some stretches of interstate, they are generally not permitted by the federal government. This has stripped the government of a key revenue source that could be used for repairs, and for cheaper borrowing. (+10~50%)*

Note: (*) Author's estimates.
SOURCE: 7 Reasons U.S. Infrastructure Projects Cost Way More Than They Should

2010-2013 U.S. Metropolitan Area Changes

This domestic migration three year snapshot indicates that Americans are moving out of Democrat, cold and mismanaged cities with expensive transit systems to Republican, warm and business-friendly cities with small or medium transit systems.  Smart!

See more in New Geography: Special Report: 2013 Metropolitan Area Population Estimates

Hawaii's Electric Company Suffers National Humiliation (Forbes)

On September 6, 2013 Hawaiian Electric Company or HECO changed the rules for connecting solar systems. Based on DBEDT data, the number of residential permits in December 2012 were 2,452.  With the new rules in effect, the number of residential permits in December 2013 were 1,218, a 50.3% reduction.

FORBES:  A Hawaiian utility has tried to slow the growth of solar. In December, Hawaiian Electric Company shut down rooftop solar installations, citing “grid stability.”

“That’s another bullshit argument,” said Chu, a Nobel Prize winning physicist who served as energy secretary from 2009 to April, 2013. Solar installations don’t threaten grid stability until they approach 20% of the customer base, Chu said. In Hawaii solar is at 2%.

(Hawaiian Electric disputes Chu’s 2% figure, and spokeswoman Lynn Unemori says the company has not halted solar installations, but has adopted “a more cautious approach to applications for new PV systems on circuits with a large amount of PV already installed, solely for reasons of safety and reliability.” ) END QUOTE

But Roy Skaggs of Alternate Energy, Inc. won't let Lynn's "word-smithed" response stand:

Lynne,

To quote Mr. Chu above, that’s a bullshit response. The only thing I agree with you on, is that rooftop solar has exceeded 2%. The rest of your canned response is the same vomit regurgitated by Scott Seu and sadly what we have been sometimes even seeing from the PUC. HECO has blocked many people, including ones who you were supposed to grandfather. This “approving new installations daily” statement is so exaggerated that you would have to work for HECO to believe it. But hey, I guess if you approve 1 installation a day and block 20, then you can get away with that line!

How can you say HECO “strongly supports” PV? Since September, the entire industry has been cast away by HECO. How many hundreds of lost jobs and millions of dollars does it take before HECO admits they do not support anything but their own profit margins? You have hundreds of customers stuck in limbo for months who signed contracts and committed to PV before Sept 6th, and HECO has still not resolved those poor families troubles. Many are paying bank loans AND HECO!

And let’s talk for a second about this “grid saturation” that HECO holds onto and tries to pass off as truth. Scott Seu admitted in front of Senators and Representatives in October that there are grids over 200% DML. Where are the voltage spikes of record? Surely, with such “unsafe” levels, HECO would have examples to provide, right? The newest delay HECO is pushing is something already in place. The inverters being used by most, if not every single company, have protection in place from the bogus claims of “voltage spikes” that HECO has been spewing. These fast trip invereters are there and have been there. So why are solar companies just now getting word to provide proof that the inverters do indeed have this in place? We have been telling you they do for months.

What is HECO’s next delay tactic? The jig is up. More and more news outlets and industry professionals, like Mr. Chu, are calling you on your bullshit. If HECO doesn’t work with solar and the customers who want it, you will soon go the way of the land line.

How can a monopoly tell hard working Americans that they cannot capture the free sun on their own rooftops? You can’t. This is a losing battle for HECO. Innovate or go extinct.

Roy Skaggs

PS--Also recall that HEI president Connie Lau lead Move Oahu Forward... the big bucks lobby that is inflicting heavy rail on Oahu.