Full Depth Reclamation with Cement Opportunity Assessment

March 2014

PCA Market Intelligence Ed Sullivan Dave Zwicke

Chief Economist & Group Vice President Director, Sr. Regional Economist 847.972.9006 esulluivan@cement.org 847.972.9192 dzwicke@cement.org

FDR with Cement Opportunity Assessment Key Findings

• FDR in an untapped market. Based on currently activity estimates, roughly 930,000 metric tons of cement was accrued to FDR applications in 2013. PCA estimates that cement tonnage accrued to FDR applications will reach 2.9 million metric tons by 2030.

• Paving activity is likely to accelerate. During the harsh economic downturn overall paving activity was depressed and maintenance spending was concentrated on more highly travelled roads. Maintenance on local roadways, was reduced. Pent-up demand for pavement resurfacing is expected to be released as fiscal strength among states returns.

• Most of this paving activity is expected to come in the form of asphalt repaving. Based on past activity, PCA estimates that roughly 85% of asphalt pavement maintenance consists of overlays and other surface maintenance projects, 10% are full depth reclamation (using any binder, concrete or otherwise), and 5% are complete reconstruction with virgin materials.

• Deteriorating roads are a constant problem for cities and counties and public works officials are increasingly turning to a process called full-depth reclamation (FDR). This process rebuilds worn out asphalt pavements by recycling the existing roadway that is often mixed with a stabilizer and compacted to produce a strong, durable base for either an asphalt or concrete surface.

• Road deterioration among lesser travelled local roads likely resulted during the economic downturn. The road quality declines, in some instances, have occurred to such an extent that it requires rehabilitation. In these cases, full depth reclamation (FDR) remediation could be a practical solution. PCA expects that the FDR share of paving activity will grow from 10% to 15% by 2020.

• FDR is not solely a cement-based solution. Base stabilization practices can consist of mechanical and/or chemical stabilization processes. Based on a PCA survey analysis, cement has nearly a 30% share of the entire FDR market, no stabilizer is used in roughly one quarter of all FDR processes, asphalt emulsion and foamed asphalt have roughly a 20% market share, lime, fly ash and other processes account for the remaining 30% of the FDR market.

• The FDR is an appealing option to decision makers given its cost savings and sustainable

nature. Reclamation of existing roadways is up to 50% cheaper per lane mile than traditional reconstruction through recycling of existing roadway material. An increase in 5% of FDR activity vs. traditional resurfacing would result in an estimated $335 million savings per year.

• FDR can be constructed and put into service quickly. FDR can be done in a fraction of the time of traditional removal and replacement reconstruction methods. In addition, FDR can usually be constructed under traffic, further reducing the inconvenience to motorist.

• FDR provides a unique regional solution to shale oil exploration activity. Untreated gravel

roads are inadequate for the large truck traffic involved in many shale oil plays. Soil stabilization nature of FDR with cement, even on gravel roads can provide a significant regional opportunity.

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FDR with Cement Opportunity Assessment Overview

Deteriorating roads are a constant problem for cities and counties. As a result, engineers and public works officials are increasingly turning to a process called full-depth reclamation (FDR). This process rebuilds worn out asphalt pavements by recycling the existing roadway. The old asphalt and base materials are pulverized, mixed with cement and water, and compacted to produce a strong, durable base for either an asphalt or concrete surface. The full-depth reclamation process uses the old asphalt and base material for the new road; therefore, there’s no need to haul in aggregate or haul out old material for disposal. Truck traffic is reduced, and there is little or no waste.

This report assists the Portland Cement Association (PCA) and industry stakeholders in an evaluation of possible promotion opportunities. Specifically, the analysis calculates the existing and future cement consumption potential of the United States’ full depth reclamation market. This report is divided into three sections. The first section estimates the size of total annual paving activity. The second section estimates FDR cement potential through 2030 while the final section identifies states with the strongest opportunity. Section 1: Introduction To measure the size of the annual FDR market, it is important to consider the size of the overall paving market. Paving activity results from one of two actions: the need to expand roadways or the need to rehabilitate existing roadways. Road systems are classified by surface type. They are also classified as urban or rural. Roads that are also classified their existing condition and need of repair. Based on the international roughness index (IRI) roads are classified as in “good”, “fair” or “poor” condition. Roads that are rated as in “good” condition are excluded due to their perceived lack of needed maintenance. The remaining road system provides an estimate of the total cement potential in the U.S. on systems that would be relevant FDR applications. Size of the existing paving market The United States’ road system is large. Not all roads, however, are candidates for repaving in a given year. The maximum annual potential, cement or otherwise, is estimated in a three step process, nationally and by state. The first step is to identify the size of the stock of roads, in terms of lane miles. In the second step, roads identified as in “good” condition are excluded from the analysis since they are not in need of immediate repair. In the final step, stock of roads that are to be rehabilitated are converted into annual paving activity and further distilled by reclamation activity. This represents the maximum market potential of which FDR with cement market changes can be assessed against.

Northeast 39,152 45,114 67,818 122,857 473,662 748,603South 95,733 187,508 194,204 445,151 1,330,443 2,253,038Midwest 65,081 136,879 164,689 440,875 726,650 1,534,174West 67,286 106,142 111,079 268,070 488,695 1,041,271

National 267,251 475,643 537,790 1,276,952 3,019,450 5,577,086Source: FHWA --Tables HM-60, PCA

Paved Lane Miles (2010)Census Region Interstate Major Arterial Minor Arterial Collector Local Total

Road System by Class

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According to the Federal Highway Administration’s (FHWA) data on lane miles by surface type, 5.3% of all paved roads employ a concrete surface. While concrete is used to surface 29% of the total primary road system in the United States, it captures less than 3% of the secondary road system (these are largely local roads). The secondary road system is responsible for the lion’s share of paved lane miles, which totals nearly 4.3 million, while the total primary road system equals to roughly 1.3 million lane miles. For the purpose of this study, roads which are already paved in concrete are excluded from the analysis. The rigid nature of concrete and/or pavement depth is not appropriate for full depth reclamation. Composite surfaces are a mix of hot mix asphalt (HMA) and portland cement concrete (PCC). Occasionally the pavements are initially constructed using a mix of both materials, but through industry consultation it is safe to assume this category represents original PCC pavement which has been rehabilitated with a HMA. For analysis purposes, all composite lane miles are also excluded from FDR with cement potentials.

Northeast 5% 6% 9% 16% 63% 100%South 4% 8% 9% 20% 59% 100%Midwest 4% 9% 11% 29% 47% 100%West 6% 10% 11% 26% 47% 100%

National 5% 9% 10% 23% 54% 100%Source: FHWA --Tables HM-60, PCA

Share of Network (2010)

Local TotalCensus Region Interstate Major Arterial Minor Arterial Collector

Road System by Class

Concrete Composite Asphalt Concrete Composite Asphalt Concrete Composite AsphaltNortheast 7,714 64,068 78,784 5,716 95,701 489,295 13,430 159,769 568,079South 43,485 60,025 365,701 31,439 93,975 1,619,950 74,925 154,000 1,985,651Midwest 60,659 112,410 189,617 62,775 140,612 953,535 123,434 253,023 1,143,151West 24,056 14,152 240,971 6,110 8,265 728,019 30,166 22,417 968,990

National 135,914 250,656 875,073 106,041 338,553 3,790,798 241,955 589,209 4,665,871Source: FHWA --Tables HM-60, HM-51, (2008 Figures) PCA Analysis

Concrete Composite Asphalt Concrete Composite Asphalt Concrete Composite AsphaltNortheast 5% 43% 52% 1% 16% 83% 2% 22% 77%South 9% 13% 78% 2% 5% 93% 3% 7% 90%Midwest 17% 31% 52% 5% 12% 82% 8% 17% 75%West 9% 5% 86% 1% 1% 98% 3% 2% 95%

National 11% 20% 69% 3% 8% 90% 4% 11% 85%Source: FHWA --Tables HM-60, HM-51, (2008 Figures) PCA Analysis

Paving Shares

Paved Lane MilesCensus Region

Census Region

Total Primary Roads Total Secondary Roads Total Road System

Total Primary Roads Total Secondary Roads Total Road System

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Following the omission of concrete and composite surfaces, the remaining asphalt pavements can be identified by class. Unsurprising, 92% of the stock of local roads are FDR candidates given their prevalent asphalt paving market shares while interstates are much less feasible. FDR is traditionally considered a rural application; however, existing pavement types suggest 84% of urban roadways are FDR candidates. Cement slurries and dust mitigation techniques are ideal for city environments provided underground utility lines are not shallow. During urban applications, base material may need to be added/removed for curb alignment which could partially reduce the cost savings of FDR over conventional reconstruction; therefore, a quarter of urban stock was removed for analysis purposes. Roads not considered for FDR in a given year. Moving beyond pavement types, not all roads are candidates for reclamation in a given year. Roads that have recently been paved or are in good condition are typically not candidates for maintenance. These roads are excluded. PCA used the International Roughness Index (IRI) data from the FHWA as a proxy for road quality. The IRI is a universal measurement used to evaluate the smoothness of a road.

InterstateOther Principal ArterialMinor Arterial CollectorLocal

TotalSource: FHWA --Tables HM-60, PCA Analysis

50%

91%

FDR Application by ClassShare of roads available for FDR based on existing pavement type

Classes of Road

86%

89% 84% 87%

93%

Rural UrbanOverall Road

Systems

92%

46%71%82%90%92%

85%75%

43%66%78%

Not <60 toLikely 94

95 to Possible 194

195 to220>

TotalSource: FHWA --Tables HM-64, PCA Analysis

IRI Cohort

Poor Condition 1,778 707,491 709,270

1,280,684 4,296,402 5,577,086

Ideal

Good Condition 952,758 677,477 1,630,235

Fair Condition 326,147 2,911,434 3,237,581

FDR Candidate

Road ConditionsPaved Lane Miles

Road Quality

Primary Roads Secondary Roads Total Road System2010 2010 2010

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PCA divides the IRI data into eight cohorts measuring road quality1. Low IRI measurements imply good road quality. PCA excludes roads in the two lowest IRI cohorts and are referred in the above table as “Good Condition”. High IRI measurements imply poor road quality and in many cases symptomatic of reflection cracking and/or base failures. All road condition categories other than those rated ‘good’ are considered candidates for paving. On road condition alone, 71% of all paved lane miles qualify as potential FDR candidates in the event of rehabilitation. Of the primary road system, about 26% of lane miles are candidates for resurfacing or reconstruction, while approximately 84% of the secondary road system (Local and Collectors) fall into this rehabilitation category. The two excluded IRI cohorts (<60, 60-94) represent 29% of all lane miles in the U.S. PCA’s analysis assumes no need for maintenance among these IRI cohorts during a given year due to their lack of rehabilitation need. Converting the stock of roads into annual paving activity. In an ideal world, transportation agencies would rehabilitate all roads that deteriorate beyond a predetermined point. Budget constraints, however, force DOT’s to prioritize paving initiatives and only repair a small portion of their road stock in a given year. This impacts annual paving activity. PCA’s estimates for rehab activity are based on analysis of Oman data. Complete and easily accessible Oman paving data was limited in many states for repaving activity. PCA assessed pavement maintenance activity for five states where the Oman database was considered most complete and easily accessible. These five states were combined using a weighted average and assessed against the total stock of DOT responsibilities to determine share of lane miles rehabilitated annually. According to this analysis, roughly 6% of the stock of roads that are candidates for rehabilitation actually get serviced in a given year.

1 IRI units are grouped into eight cohorts: <60, 60-94, 94-119, 120-144, 145-170, 171-194, 195-220, and >220. Roads with a low IRI value are smoother and in better condition, requiring less maintenance. These grades can be appraised as “<60” being the best conditioned roads, likely the newest, with the lowest priority of maintenance to “>220” being the most need of repair/reconstruction. From FHWA’s Highway Statistics table HM-64: Length by measured pavement roughness, all systems, PCA was able to distribute paved lane miles into the 8 IRI divisions. The limitation here was that there was only data for the primary road system and therefore did not include local or collector roadways. To find distributions for the secondary road system, PCA used averages derived from five individual state reports that focused on road conditions. It is also noted that IRI allowable tolerances can vary between road classes with interstates having a higher tolerance. For analysis purposes, all systems are assumed to be bound in the same IRI rating in regards to identifying resurfacing candidates. Given interstates’ minor overall share, it is not expected to have a material impact on the analysis.

Not <60 toLikely 94

95 to Possible 194

195 to220>

Source: FHWA --Tables HM-64, PCA AnalysisIdeal

Poor Condition 0.1% 16.5% 12.7%

IRI CohortGood

Condition 74.4% 15.8% 29.2%

Fair Condition 25.5% 67.8% 58.1%

Road ConditionsPaved Lane Miles (%)

Road Conditions

Primary Roads Secondary Roads Total Road System2010 2010 2010

FDR Candidate

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Maintenance schedules are likely to vary depending upon the roads’ usage. PCA applied different rehabilitation schedules to different road types. Rehabilitation assumptions among different road types were based on the overall average of 6% of stock. Higher traffic roads need to be serviced more frequently. Local roads that are used less or carry much lighter loads, do not receive the same level of attention and repaving is more likely allowed to be postponed in lieu of higher priorities. PCA, as a result, assumes nearly 4% of local and collector roads need to get repaved annually. In contrast, higher use roadways, such as interstate roadways, need repaving more often. PCA assumes 7% of these roads are rehabilitated annually. Following similar logic, other principle arterial and minor arterial are assumed to be repaved at a rate of roughly 6% and 5%, respectively. These assessments are based on a rather small sample of state paving activity. PCA, as a result, performed two cross-checks on these results. Both cross-checks generally validate the conclusions reached using the Oman sample. For the total stock of roads, using the Oman data, PCA’s analysis implies repaving occurs every 23 years – 18 years for primary roads and 26 years for secondary roads.

Section 2: FDR with Cement Potential A simple approach toward estimating FDR with cement potential. To convert lane miles into potential cement volumes, the amount of cement used in reclamation must be assessed. To this end, PCA conducted a survey of concrete paving engineers and regional promotion executives. Based on the survey results, and further discussion with concrete paving experts, FDR with cement volume assumptions were determined. Model assumptions are based upon 6” depth, and 12-foot lane width. Based on the assumption of a 5% cement addition rate (5% cement content, 95% reclaimed materials), 86.2 metric tons of cement per lane mile is assumed to be used in the following analysis. Given annual repaving levels, PCA estimates the potential volume of cement that could be used if FDR was applied to the qualified roadways. Two market potentials for FDR are offered based on market penetration assumptions. The annual maximum potential estimate of nearly 20.2 million metric tons by 2020 assumes all roads in the FDR with cement Candidates subcategory are reclaimed. If 10% of the resurfacing market were to use FDR with cement it would imply nearly 2.0 million metric tons annually by 2020, and 2.2 million metric tons by 2030. Stated alternatively, every one percent increase in FDR of overall activity translates into more than 200,000 metric tons of cement consumption.

2000 2010 2020 2000 2010 2020 2000 2010 2020Lane Miles 65,276 71,464 76,752 156,656 166,390 178,130 221,932 237,855 254,881Percent of System Repaved Annually 5.6% 5.6% 5.6% 3.9% 3.9% 3.9% 4.3% 4.3% 4.3%Source: PCA

Total Primary Roads

Total System Repaving Activity

Total RoadsEstimated Lane Miles Repaved Annually

Total Secondary Roads

2010 2020 2030 2010 2020 2030 2010 2020 2030Overall Market 835,438 907,711 980,046 17,996,457 19,319,470 20,591,434 18,831,894 20,227,180 21,571,481Source: PCA

Overall FDR with Cement PotentialEstimated FDR with Cement (Metric Tons) Volume Potential By Market

United StatesTotal Primary Roads Total Secondary Roads Total Road System

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Keep in mind, this potential is an estimated maximum for FDR in a given year based on current road maintenance activity trends. However, not all roads are fully reclaimed. The subsequent estimates consider the realistically achievable, or promotable, potential of FDR with cement. The above overall market potential offers one simple conclusion – the FDR with cement market potential is immense. FDR is not applicable for the entire pavement rehabilitation market. Full depth reclamation is a possible solution to most pavement repairs. It is, however, often a last resort for a deteriorated roadway and usually reserved for roads with granular bases. Minor rehabilitation of asphalt pavements is often performed through partial milling of the pavement followed by an overlay that uses the existing surface as a base. Data regarding the actual usage of FDR by road system does not exist. As a result, PCA must estimate history. To do this, PCA relied upon industry consultation and Oman bid lettings data. Using Oman data in a relatively small sample of states, PCA identified projects with cold asphalt reclamation. Cold asphalt reclamation is a process performed without the use of heat. Two to five inches of the current road surface are pulverized down to a specific aggregate size, mixed with a rejuvenating asphalt emulsion, and then reused to pave that same road. Projects with cold asphalt reclamation indicate a potential for full or partial depth reclamation. Based on this approach, full-depth reclamation is occurs in 15% of all flexible pavement projects. Unfortunately, the Oman data base survey is limited and was based on results from only five states. Compared to some states where very little activity occurs, the sampling employed may have a tendency to overestimate FDR usage. PCA discounts the Oman survey results and assumes full-depth reclamation occurs in 10% of all flexible pavement projects. Compared against total paving activity, PCA estimates the portion of reclamation to share of overall resurfacing activity. PCA assumes that 85% of asphalt pavement maintenance consists of overlays and other surface maintenance projects that do not account for base material maintenance, 10% are full depth reclamation (using any binder, cement or otherwise), and 5% are complete reconstruction with virgin materials.

Based on these assumptions, the FDR applicable market is much smaller than the entire surface maintenance market. PCA estimates the total 2010 resurfacing market comprised of 238 thousand lane miles. FDR only competes for roughly 101 thousand lane miles. Based on this logic, the maximum FDR with cement potential at 100% penetration is slightly more than 10.9 million metric tons in 2020, compared to 20.2 million metric tons for the total FDR market (which includes all processes, cement based and non-cement based). Cement’s FDR processes compete against other processes. Full depth reclamation is not unique to cement. Base stabilization practices can consist of mechanical and/or chemical stabilization processes. For chemical stabilization, various subgrade modifications in the place of cement such as asphalt emulsion, foamed asphalt, lime, flyash and other proprietary agents can be utilized in the reclamation process. Based on a PCA survey analysis, cement has nearly a 30% share of the entire FDR market, no stabilizer is used in roughly one quarter of all FDR processes, asphalt emulsion and foamed asphalt have roughly a 20% market share, lime, fly ash and other processes

2010 2020 2030 2010 2020 2030 2010 2020 2030Overall Market 431,724 469,820 508,120 9,750,700 10,475,031 11,168,079 10,182,423 10,944,851 11,676,199

Promotable FDR-C PotentialEstimated FDR with Cement (Metric Tons) Volume Based on 50% Reclamation Assumption (less 25% urban)

United StatesTotal Primary Roads Total Secondary Roads Total Road System

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account for the remaining 30% of the FDR market. Based on road quality, reconstruction activity and cement market share, it is estimated that FDR with cement represents as much as 930,000 metric tons of cement consumption currently. Of this, PCA estimates that nearly all of the opportunities exist among secondary roadways (95%). FDR with cement potential may be helped by an improving competitive position Nearly 96% of all paved roads in the United States contain some form of asphalt paving. Asphalt pavements have been shown to have shorter functional lifespan than rigid pavements and incur higher routine maintenance costs2. Historic initial bid price advantages have greatly assisted asphalt pavements in achieving such a high market share. Cost dynamics are changing as concrete paving gains competitive initial costs; however, the fundamental fact remains that the vast majority of pavements are asphalt. FDR with cement allows for a paving opportunity that removes the zero sum game of competing paving materials. In the most fiscally responsible sense, reconstructed roads reclaimed using FDR would be overlaid in concrete. But the simple fact remains that despite concrete market share gains, the vast majority of paving activity remains asphalt. A fact finding study performed by the Virginia Transportation Research Council (VTRC)3 found that asphalt roads overlaid upon a treated FDR base require much less maintenance. Based on VTRC LCCA assumptions, a traditional four inch asphalt overlay will need to be resurfaced six times in a 50 year service life. The same road with a FDR treated base would require four resurfaces. PCA reaffirms these assumptions based on 2005 research report spanning 20 years which found roads reconstructed with the FDR with cement process have a life expectancy up to three times of non-treated highways. Based on VTRC’s LCCA analysis, a road with FDR base offers a 16.3% cost savings over the life of the project. It should be pointed out this analysis assumed 3% materials cost inflation rate for asphalt—likely low given the changing energy price landscape. VDOT acknowledges their assumptions are conservative pointing out industry reports that place FDR LCCA cost savings as high as 50%4 over traditional projects.

2 The New Paving Realities: The Impact of Asphalt Cost Escalator Clause on State Finance found a significant correlation between highway maintenance costs and oil prices through the large stock of asphalt roads http://www2.cement.org/econ/pdf/escalator_report_2-27-12.pdf 3 Analysis of Full-Depth Reclamation Trial Sections in Virginia assessed three trial sections from the 2008 construction season. Analysis included various stabilizing agents and application methods. Hypothetical LCCA analysis was conducted to measure cost impacts. Published 2011. http://www.virginiadot.org/vtrc/main/online_reports/pdf/11-r23.pdf 4 42% cost savings - Georgia's Use of Cement-Stabilized Reclaimed Base in Full-Depth Reclamation, National Research Council; and up to 50% Full-Depth Reclamation: Recycling Roads Saves Money and Natural Resources, SR995, PCA, 2005

Estimated Stabilizer Shares in Recycling Projects

Asphalt Emulsion,

15%

Foamed Asphalt, 5%

Cement, 28%

Fly Ash, 6%

Lime, 18%

No Stabilizer,

23%

other, 6%

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To place this cost savings into context, an estimated 237,000 lane miles maintained in a given year in the United States, of which 166,000 are secondary and largely existing asphalt surface. Of these roads receiving maintenance, an assumed 70% are asphalt resurfacing projects at an estimated cost of $301,312 per lane mile. If 5% of these projects were to be reclaimed using FDR with cement, it would provide state, county and local officials a combined $408 million savings over their project lives.5 Similarly, it is estimated 10% of the 237,000 roads maintained each year require reconstruction. If FDR were to be applied to half of these which already need reconstruction, paving agencies would save an estimated $335 million per year. If repurposed, this savings could be used to resurface an additional 1,100 lane miles annually. Keep in mind, these estimates are based on an assumed 20% cost savings. Compared to similar analysis’ FDR cost reductions of up to 50%, PCA feels these estimates are conservative. Increasingly fiscal pressures will build on states to provide entitlement services to an aging population. Currently, states’ Medicaid spending exceeds education spending and according to the National Association of State Budget Officers could account for on third of all state spending within 20 years. At the same time, demands to expand and maintain roadways will increase. State DOTs are likely to intensify their search a for spending efficiency. Not only does the Virginia study point to FDR with cement as one candidate for new spending efficiency practices, the savings are likely to be even greater in the future. Indeed, PCA expects market share gains in cement based FDR may occur in the coming years due to improving relative cost competitive position. This assumes the continuance of promotion education and advocacy successes that have been achieved in recent years and allows for changes in the relative price of cement versus bitumen additives. The feedstock for asphalt (oil) plays the dominant role in determining its price. Correlation analysis between annual percent changes in oil prices and the six month lagged annual percent change in asphalt prices suggest asphalt prices rose 7% for every 10% increase in oil prices during the past 10 years. Currently, oil prices are high by historical standards and are expected to rise further as global demand increases. Oil prices are expected to experience a long term-rise because the global economy is undergoing structural change. Emerging and lesser developed economies account for a greater proportion of global GDP growth, and as a result, are placing greater demand on commodities. The Energy Information Agency (EIA) agrees with this scenario for world growth and the resulting impact on world oil prices. According to the EIA’s base case scenario, oil prices are expected to rise to $132 per barrel by 2025 and nearly $190 per barrel by 20356. PCA estimates that a 1% reduction in bitumen additive market share would result in 44,000 additional tons of cement demand in FDR projects. This assumes that cement based additives realize a full market replacement gain. In actuality, lime, fly ash or lack of a stabilizing additive would also fill the void. If cement were to obtain half of the market share shift, a 5% reduction of petroleum based additives would translate to 110,000 metric ton increase to cement demand. Alternative FDR applications PCA’s foregoing estimates are based on analysis of the rehabilitation of existing paved roads. Up to this point, unpaved roads have been excluded from the analysis. These roads offer opportunity for FDR applications and must be included for a comprehensive assessment of the market.

5 Analysis based on VRTC’s life cycle cost assumptions. 6Annual Energy Outlook 2014 Early Release, DOE/EIA, April, 2014.

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Over 2.8 million lane miles in the U.S. are unpaved, or 34% of the total network. Nearly 96% of these roads are rural and 87% have a local designation. FDR with cement can be applied to existing unpaved roads as a means of soil stabilization or as base treatment for future paving. Over the last eight years the net change in unpaved lane miles has been an annual average decline of 4,000 lane miles. This decline is in the context of an annual net increase of 33,000 in paved lane miles. Again, data is very limited but PCA assumes a large portion of reduced unpaved lane miles is due to road improvements to paved surfaces. If half of the lost unpaved lane miles were improved using FDR with cement techniques, it would result in an annual increase of nearly 170,000 metric tons of cement. Most unpaved lane miles are not paved for a reason. Inclusion of paved miles to a road network is a commitment to increased future maintenance costs. However, with the recent rise of shale oil & gas exploration, PCA believes it creates a unique opportunity for FDR with cement of rural unpaved roads.

Shale field exploration often times is located in remote locations only accessible by roads that are graveled or thinly paved routes never designed to handle the number of vehicles and the large-scale heavy hauling they are now subject to. As a specific example, a report released by the Upper Great Plains Transportation Institute (UGPTI)7 outlines the future need in the amount of $7 billion for road repairs in North Dakota, of which unpaved roads contribute to 72% of the expected cost. Specially, oil exploration counties are expected to account for 53% of these funds despite representing only 17 sparsely populated counties of North Dakota’s 53 counties. Much of the increase in costs is due to overuse of under-designed roads. A typical gravel road has a gravel cycle of five years and blade interval of once per month according to the UGPTI. Roads impacted by shale drilling are instead found to have their gravel cycle shortened to two to three years and require a blade interval of twice a month. This rise in need effectively doubles the cost of the state’s unpaved roads. Increased oil exploration is typically followed by a tax windfall from impact fee and/or royalties. Therefore, as the need placed on infrastructure increases, so does the financial means to address it. FDR with cement and similar soil stabilization applications provide a unique solution for counties and state agencies with dedicated infrastructure funds. Base treatment and soil stabilization applications could reduce and help restore the shortened gravel and blade cycles of unpaved roads.

7 An Assessment of County and Local Road Infrastructure Needs in North Dakota—report discusses an expected future need of $7 billion to maintain the State’s road network in response to increased energy exploration truck traffic. http://www.ugpti.org/downloads/2012_road_investment_needs_final_report.pdf

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North Dakota is not unique. Marcellus and Eagle Ford shale fields have also had a profound impact on local counties through economic windfalls and increased needs. Nontraditional plays continue to be found in regions throughout much of the continental U.S. As global economies recover and energy prices rise, it will become increasingly economical to explore future non-traditional shale oil plays. Tax windfalls and unique needs make shale field exploration an ideal candidate for FDR with cement promotion efforts. To put the opportunity into perspective, PCA estimates 32% of unpaved roads lie in oil basins. If only 10% of these roads were to be considered FDR with cement candidates it would add an additional 3.9 MMT of cement potential. FDR with cement market projection to 2030 PCA estimates current applications of FDR with cement at roughly 930,000 metric tons. Keep in mind this amount relies on multiple assumptions given the lack of existing data on activity and market share of additives. In fact, PCA’s Survey of Portland Cement Consumption by User Group reports only show 150,000 metric tons of cement is used in FDR with cement applications annually. It is widely understood hat the survey results understate the market but does highlight the nature of the error risk. In light of this data gap, it is difficult to make forecasts with any reasonable measure of confidence. Given this caveat, PCA’s forecasting approach incorporates several key elements and assumptions regarding the rehabilitation of existing roadways with FDR as well as for the unpaved market. Consider the following key assessments used to formulate PCA’s projections. For paved roadways, FDR usage will accelerate: For existing roadways PCA assumes that overall FDR paving activity will accelerate. During the harsh economic downturn overall paving activity was depressed. Prior to the recession, for example, state governments spent roughly 2.4% of discretionary budget on construction activity. During the recession this figure dipped to 1.7%. ARRA funding supported some paving activity during the downturn, but this spending seems to have been concentrated on more highly travelled roads. Maintenance on roadways, particularly local roadways, was reduced. Two phenomenon were generated from the reduction road spending. First, pent-up demand for all roadwork was generated. Second, reduced spending led to a focus on maintenance among highly travelled roads. Road deterioration among lesser travelled local roads likely resulted in road quality declines– perhaps to the extent requiring rehabilitation where an FDR remediation could be a practical solution. As a result, PCA’s forecast assumes an acceleration in overall paving activity and a slightly higher share in FDR usage. Using longer-term state discretionary spending on construction, PCA assumes a local roadway repaving schedule of roughly 5% rather than the 4% experienced during the downturn. In addition, Market research indicates that roughly 10% of all repaving activity employs FDR. Due to the likely deterioration of local roadways caused by fiscal neglect, it is likely that FDR’s share will grow. PCA assumes that the FDR share of paving activity will grow from 10% to 15% by 2020. For paved roadways, cement share of FDR will increase: Based on a PCA survey analysis, cement has nearly a 30% share of the entire FDR market, no stabilizer is used in roughly one quarter of all FDR processes, asphalt emulsion and foamed asphalt have roughly a 20% market share. Lime, fly ash and other processes account for the remaining 30% of the FDR market. PCA expects market share gains in cement based FDR may occur in the coming years due to improving relative cost competitive position. Correlation analysis between annual percent changes in oil prices and the six month lagged annual percent change in asphalt prices suggest asphalt prices rose 7% for every 10% increase in oil prices during the past 10 years. Based on this analysis and EIA’s oil price projections, asphalt product prices could be expected to rise roughly 19% by 2025 and 58% by 2035.

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With these rising asphalt prices, concrete’s market share should grow. Using Oman data, PCA estimated that concrete’s market share for overlays increases 0.14% for every 1% rise in relative asphalt prices. While the overlay and FDR markets are different, state and local governments’ sensitivity to relative price changes may not be all that different. Lacking enough historical FDR data to conduct relative price sensitivity, PCA assumes the FDR market’s sensitivity is equal to the overlay market. PCA believes this is a conservative assumption.

PCA assumes concrete prices rise in-line with inflation – or 2% annually. Our calculations also take into consideration the impact of NESHAP on cement and concrete prices by introducing a one-time increase in 2015 reflecting cement plant compliance costs. PCA uses this correlation equation and projects expected market share gains for the overlay market. These market share gains are then applied to promotable FDR paving activity. However, a decline in petroleum based additive use will likely not lead to a direct gain in cement market share as items such as lime or flyash will likely also gain share, or decision makers may opt for no chemical stabilization. Given this, PCA estimates that the cement share of FDR will increase from 28% in 2012 to 31% in 2020 and 36% in 2030. Keep in mind, this analysis only assesses potential relative price impacts of rising energy prices on market share. Cement is widely available and not subject to potential supply constraints such as flyash in the event of a reduction in coal powered electrical generation. Cement has also been viewed as a superior stabilizer over competing agents on a performance basis8. If cement can gain a technological advantage, more substantial market share gains can be expected. For paved roadways, FDR with cement tonnage is expected to triple by 2030. PCA expects local road paving activity will accelerate. Due to past neglect, the FDR share of that paving activity is expected to increase. Furthermore, concrete’s relative price advantages are expected to continue and translate into share gains of the FDR market. Based on these key assessments, PCA expects FDR with cement will grow from roughly 930,000 metric tons currently to more than 2.9 million tons annually. For unpaved roadways, shale oil & gas exploration is expected increase FDR cement tonnage. Through the recent rise of shale oil & gas exploration, PCA believes it creates a unique opportunity for FDR with cement and rural unpaved roads. Over 2.8 million lane miles in the U.S. are unpaved. PCA estimates 32% of unpaved roads lie in oil basins, or roughly 900,000 lane miles. Not all energy basins, however, will be developed by fracking technology, particularly in light of concerns by environmentalists. Currently, the Bakken, Marcellus and Eagle Ford formations are estimated to represent 5% of the unpaved roads. By the end of the forecast horizon PCA assumes the share of unpaved oil field will likely double to 10% of all unpaved roads as exploration and production expands to nontraditional fields. PCA assumes 20% of these roads can be considered FDR candidates. Given this assumption, shale oil & gas exploration is expected to add 527,000 metric tons of cement by 2020, and 765,421 by 2030. FDR with cement tonnage outlook. The FDR cement market potential is immense. Through conservative assumptions, paving activity, FDR adoption, and FDR cement market share gains, PCA estimates the FDR market targeting existing paved roadways could reach 1.9 million metric tons of cement by 2020, 2.3 million by 2025 and 2.9 million by 2030. Based on assumptions regarding the impact of shale oil and gas exploration, PCA estimates an additional 526,000 tons of FDR cement may

8 The University of Texas at San Antonio was tasked to evaluate premature pavement failure of past FDR projects in which used asphaltic emulsions. Their findings recommended using portland cement as the alternative stabilizing agent. UTSA Report No. 010-003

12

materialize by 2020, 644,000 by 2025 and 765,000 by 2035. Combining estimates regarding the existing paved and unpaved roadways yields total FDR cement growth projections of roughly 930,000 metric tons currently to 2.4 million metric tons by 2020, 2.9 million metric tons by 2025 and 3.7 million metric tons by 2030. Based on this analysis, PCA estimates only 7.5% of the FDR market is currently captured suggesting tremendous growth potential Section 3: State Rankings of FDR with Cement Potential PCA performed a four step state-by-state ranking process that included both quantitative and qualitative factors to assist in regional promotion guidance. Using proxies, PCA ranked states by the repaving market size, unpaved lanes miles, oil field exposure, and ability to spend. Variable weights were assigned to each category by relative importance. FDR with cement promotable market size (Weight: 30%) Ranking for the FDR market size was determined based on the stock of miles and road quality. Total lane miles in need of repaving were based on target FDR cohorts. This proxy captures relative market size and advances states with large FDR with cement opportunity in terms of high stock of lane miles with reconstruction needs in the full depth reclamation arena.

Unpaved market size (Weight: 20%) Unpaved lane miles provide a unique opportunity for FDR as existing gravel aggregate can be mixed with cement for base stabilization. With the strengthened base, many agencies looking towards road improvement have saved money by opting for chip seal treatment rather than an asphalt layer9. Given the large recurring maintenance requirements of graveled roads through blading and aggregate replenishment, states with large volumes of unpaved lane miles provide an enhanced opportunity for FDR with cement promotion efforts.

9 County Uses of FDR with Cement shown to save 36% on cost when using chip seal rather than 2in HMA surface. http://www.roadrecycling.org/PL621.PDF

StateMetric Tons

StateMetric Tons

1 Texas 1,273,653 11 Tennessee 324,2372 California 708,027 12 Washington 294,2333 Florida 553,625 13 Kentucky 289,3514 North Carolina 494,158 14 Alabama 288,1485 Georgia 440,059 15 Indiana 285,2256 Pennsylvania 430,042 16 New York 282,3857 Ohio 374,606 17 Virginia 278,3208 Wisconsin 359,554 18 Missouri 264,5689 Minnesota 325,312 19 South Carolina 246,715

10 Il l inois 324,763 20 Arizona 237,100Source: PCA

Paved FDR-C Promotable Market Size - Top States (2020)

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Energy basin lane miles (Weight: 20%) Unpaved lane miles in oil fields pose a substantial opportunity for FDR promotion. PCA estimates nearly 3.9 MMT of promotable potential could exist in these markets. However, the opportunity is very much localized. Through a process of overlaying lane miles with EIA oil basin maps PCA estimated rural unpaved lane miles with energy exposure.

Ability to spend (Weight: 30%) Ranking for states’ ability to spend was a two-fold process. First, states were ranked by their overall fiscal health. Second, states were ranked by the level of commitment toward spending on transportation. PCA assigned equal weights to each estimate to form an overall “ability-to-spend” ranking.

State Lane Miles State Lane Miles1 Texas 356,557 11 Colorado 110,7302 Kansas 206,693 12 Montana 101,9563 Minnesota 176,027 13 New Mexico 97,1194 Missouri 157,781 14 Michigan 95,0275 Oklahoma 151,462 15 Il l inois 76,1276 North Dakota 143,211 16 Georgia 75,5157 Nebraska 128,926 17 Washington 74,7818 South Dakota 127,251 18 Arizona 69,7359 Arkansas 124,529 19 Alabama 62,502

10 Iowa 123,537 20 Idaho 60,257Source: PCA

Unpaved Market Size - Top States (2020)

State Lane Miles State Lane Miles1 Texas 173,068 11 Louisiana 30,3312 Oklahoma 107,186 12 Montana 28,3463 North Dakota 85,275 13 Il l inois 28,2384 Michigan 69,726 14 West Virginia 26,8825 Colorado 47,778 15 Nebraska 18,4886 Alabama 39,717 16 Ohio 18,0887 Kansas 38,699 17 Utah 15,2098 Missouri 36,374 18 New York 14,9149 Iowa 36,155 19 Kentucky 13,915

10 Indiana 34,500 20 Wyoming 13,062Source: PCA

Unpaved Oil Basin Market Size - Top States (2020)

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State fiscal health rankings are based on tax revenues, capital expenditures, government employment trends, and unfunded pension liabilities. The components were combined to create a fiscal health metric which allows for state comparisons. The proxy serves as a guide for states that run the risk of future transportation budget cuts. State commitment to transportation spending was ranked based on average transportation funding dollars per lane mile. Using National Association of State Budget Officers’ Expenditures Report,10 spending volumes were assessed based on general funds, federal funds, gas taxes, bonds, and ARRA funding sources. These expenditures were then overlaid with Florida DOT highway construction cost estimates11 to determine agency funding by lane mile. The proxy serves to show relative transportation funding commitments to identify states that prioritize highway funding. FDR rehabilitation processes’ cost savings may be more receptive to states in poor fiscal condition. However, states were ranked based from strongest relative ability rather weakness to identify regions which have the means to warrant a stronger ROI of promotion efforts. With that said, even in the strongest of state economies there are local agencies with tight budgets.

Potential promotion risks Survey results revealed potential risks to PCA estimates of FDR with cement volumes. It should be pointed out the survey is not directly representative government officials. Rather, the survey was conducted of industry promotion leaders and their experiences with various government agencies. Attitudes of government decision makers towards FDR with cement are believed to be the most favorable at the local level and subsequently become less favorable through each higher level of government. Up

10 State Expenditure Report – NASBO. Table 38 http://www.nasbo.org/publications-data/state-expenditure-report. Expenditure series compiled from 2000-2012 reports. 11 Florida DoT Highway Generic Construction Cost Model. ftp://ftp.dot.state.fl.us/LTS/CO/Estimates/CPM/summary.pdf

Overall Rank

State Fiscal RankTransportation Funding Rank

Overall Rank

State Fiscal RankTransportation Funding Rank

1 Massachusetts 6 1 10 Virginia 22 32 West Virginia 1 12 11 Florida 20 83 Rhode Island 8 5 12 Montana 1 374 North Dakota 1 19 13 Vermont 25 25 Michigan 4 18 14 Kansas 11 245 Utah 10 9 15 Colorado 7 326 Texas 1 27 15 Delaware 1 417 Maryland 16 7 16 Idaho 4 388 Indiana 1 31 17 Missouri 13 259 Wyoming 1 33 18 Connecticut 26 6

Note: States with similar paving dynamics will share same rankSource: PCA

Ability To SpendRanks Based on States With Most Favorable Fiscal and Transportation Funding Positions

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to 30% local governments are implied to have a favorable attitude perform FDR with cement. Overall, most agencies have a neutral stance while state agencies have the largest implied unfavorable rating towards FDR with cement. The more favorable opinions held by County and Local governments are encouraging given their large inventory of roads that are strong FDR candidates.

Lack of awareness was cited as the primary reason for the prevailing neutral opinion. There was a clear theme of survey responses that open houses and demonstrations have proved very successful for agency buy-in. It is also believed that local governments have a more favorable opinion due to successes of past promotion efforts. In terms of regional variance, the South and West appear to have the most favorable perceptions of FDR with cement.

When asked of future expectations of FDR with cement adoption respondents were overwhelmingly optimistic with 82% expecting growth in the number of FDR with cement projects in the next five years while only 9% expected a decline. Posing this kind of question among industry promotion leaders runs the obvious risk of viewing FDR cement potential through rose colored glasses; however, it does point out industry support of promotion efforts and perceived opportunity for success. State rankings conclusions PCA combines its assessments on the paved and unpaved market size as well as ability to spend, to form its state-by-state rankings. The top 10 suggested states represent 35% of the promotable market and the top 20 represent 63%.

Agency Favorable Neutral UnfavorableState 16% 42% 42%County 26% 53% 21%Local 30% 60% 10%

Source: PCA Survey

Attitude of FDR-C AdoptionBy Level of Government

Agency

Strong Growth (>11%)

Growth (2% to 10%) No Change

Decline (-2 to -10%)

Strong Decline (<-

11%)State 27% 55% 9% 9% 0%

Source: PCA Survey

Five-Year FDR with Cement TrendsExpected Change in FDR-C project volume

16

1 Texas 1 1 16 1 1,273,6532 Minnesota 11 3 7 34 325,3123 Pennsylvania 6 41 4 25 430,0424 California 2 38 7 30 708,0275 Washington 12 17 24 34 294,2336 Oklahoma 24 5 37 2 219,9827 Illinois 9 15 22 13 324,7638 New York 13 33 1 18 282,3859 North Dakota 39 6 6 3 108,84010 Iowa 30 10 12 9 150,67611 North Carolina 4 40 21 34 494,15812 Wisconsin 8 27 17 28 359,55413 Arkansas 23 9 17 22 225,83314 Florida 3 28 20 31 553,62515 Ohio 7 32 36 16 374,60616 Virginia 16 29 10 34 278,32017 Michigan 21 14 28 4 232,44718 Colorado 22 11 25 5 224,47019 Kansas 25 2 34 7 215,82420 Tennessee 10 26 26 24 324,237

Source: PCA

Potential Volume

Composite Market Ranking

Overall RankVolume

RankUnpaved

RankAbility Rank

Oil Field Rank

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Appendix

State 2010 2020 2030 2010 2020 2030 2010 2020 2030Alabama 22,628 23,221 23,741 501,624 514,842 526,404 524,252 538,062 550,146Arizona 21,081 26,032 32,712 266,593 328,953 413,403 287,675 354,986 446,115Arkansas 15,383 16,235 17,051 344,205 363,420 381,769 359,588 379,655 398,820California 71,276 78,491 85,678 1,092,812 1,203,433 1,313,623 1,164,088 1,281,924 1,399,301Colorado 21,944 24,099 26,230 314,422 345,567 376,125 336,366 369,666 402,355Connecticut 4,315 4,401 4,381 125,437 127,912 127,331 129,752 132,313 131,712Delaware 306 331 346 31,199 33,793 35,242 31,505 34,125 35,588Florida 44,190 52,761 64,140 710,580 848,364 1,031,337 754,771 901,125 1,095,477Georgia 35,038 39,216 43,112 654,725 732,762 805,635 689,764 771,978 848,746Idaho 11,380 12,827 14,392 177,465 199,984 224,414 188,845 212,811 238,806Illinois 4,222 4,294 4,323 598,700 608,923 613,010 602,922 613,217 617,333Indiana 10,662 10,996 11,208 510,534 526,536 536,754 521,197 537,532 547,962Iowa 4,949 4,968 4,822 249,907 251,241 243,963 254,857 256,209 248,785Kansas 19,944 20,507 20,690 310,208 319,588 322,616 330,152 340,095 343,307Kentucky 15,260 15,749 16,083 525,154 541,998 553,505 540,414 557,746 569,588Louisiana 7,106 7,288 7,357 285,033 292,469 295,258 292,139 299,756 302,615Maine 5,897 6,039 6,001 112,142 114,828 114,120 118,039 120,867 120,121Maryland 13,494 14,725 15,786 211,075 230,330 246,922 224,569 245,055 262,708Massachusetts 14,048 14,502 14,713 187,152 193,212 196,031 201,200 207,714 210,745Michigan 16,813 17,052 16,912 407,288 412,980 409,678 424,101 430,032 426,590Minnesota 22,404 24,148 25,599 483,099 520,602 552,038 505,503 544,750 577,638Mississippi 14,319 14,592 14,701 349,451 356,164 358,842 363,770 370,756 373,543Missouri 22,549 23,364 24,037 410,049 425,021 437,336 432,598 448,385 461,372Montana 17,009 17,897 18,138 195,350 205,684 208,610 212,359 223,581 226,749Nebraska 10,103 10,346 10,363 214,920 220,528 220,969 225,024 230,874 231,331Nevada 9,322 11,537 14,195 121,912 150,578 185,370 131,234 162,115 199,565New Hampshire 3,972 4,275 4,580 85,522 92,045 98,599 89,494 96,320 103,179New Jersey 9,545 9,931 10,206 208,796 217,244 223,255 218,341 227,175 233,461New Mexico 17,460 18,239 18,226 181,461 189,969 190,077 198,921 208,207 208,303New York 15,456 15,590 15,386 540,953 545,697 538,564 556,409 561,287 553,950North Carolina 26,185 29,641 33,571 740,396 838,109 949,237 766,582 867,750 982,808North Dakota 11,824 12,093 11,547 146,723 151,106 144,540 158,547 163,199 156,087Ohio 21,894 21,881 21,530 728,802 728,358 716,702 750,697 750,239 738,232Oklahoma 16,004 16,694 17,347 330,158 344,698 358,190 346,162 361,392 375,537Oregon 14,538 16,159 18,187 268,594 298,471 335,931 283,131 314,630 354,118Pennsylvania 15,238 15,414 15,270 805,105 814,332 806,648 820,343 829,746 821,919Rhode Island 1,772 1,803 1,787 34,942 35,554 35,228 36,714 37,357 37,015South Carolina 17,669 19,095 20,222 401,292 433,734 459,349 418,960 452,829 479,571South Dakota 9,945 10,247 10,146 141,156 146,015 144,674 151,101 156,262 154,820Tennessee 22,202 24,015 25,929 517,558 559,821 604,458 539,760 583,836 630,386Texas 81,027 93,924 108,412 1,422,079 1,648,407 1,902,678 1,503,106 1,742,331 2,011,090Utah 11,984 13,756 15,905 190,178 218,375 252,497 202,162 232,130 268,402Vermont 3,872 4,028 4,118 52,879 55,001 56,252 56,750 59,029 60,371Virginia 25,542 28,230 30,853 422,907 467,458 510,905 448,448 495,688 541,758Washington 19,506 22,042 25,373 410,336 463,637 533,691 429,842 485,679 559,064West Virginia 6,284 6,167 5,842 185,978 182,590 172,998 192,262 188,757 178,840Wisconsin 17,110 17,772 18,057 648,067 673,155 683,986 665,176 690,927 702,043Wyoming 10,765 11,098 10,843 141,539 145,983 142,668 152,303 157,081 153,511United States 835,438 907,711 980,046 17,996,457 19,319,470 20,591,434 18,831,894 20,227,180 21,571,481Source: PCA

Annual Poential: FDR-C Volume By StateBased on qualifying lane miles (Metric Tons)

Primary Roads Secondary Roads Total Network

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State 2010 2020 2030 2010 2020 2030 2010 2020 2030Alabama 11,325 11,621 11,882 263,216 270,190 276,267 274,540 281,811 288,148Arizona 10,637 13,134 16,504 142,351 175,514 220,597 152,988 188,648 237,100Arkansas 7,759 8,188 8,600 195,760 206,761 217,232 203,519 214,949 225,833California 36,119 39,776 43,419 552,880 608,850 664,608 588,999 648,625 708,027Colorado 11,061 12,148 13,222 176,479 194,085 211,248 187,540 206,233 224,470Connecticut 2,178 2,221 2,211 63,018 64,263 63,972 65,196 66,483 66,182Delaware 153 166 173 15,640 16,941 17,667 15,793 17,107 17,840Florida 22,250 26,564 32,293 359,225 428,837 521,332 381,475 455,401 553,625Georgia 17,535 19,626 21,576 340,077 380,596 418,484 357,612 400,222 440,059Idaho 5,700 6,425 7,209 98,941 111,477 125,110 104,642 117,902 132,319Illinois 2,209 2,247 2,262 314,923 320,330 322,501 317,133 322,578 324,763Indiana 5,334 5,501 5,607 265,925 274,281 279,618 271,259 279,781 285,225Iowa 2,484 2,493 2,420 151,664 152,624 148,256 154,148 155,117 150,676Kansas 9,979 10,261 10,352 197,285 203,480 205,471 207,264 213,741 215,824Kentucky 7,630 7,874 8,041 266,879 275,457 281,310 274,509 283,331 289,351Louisiana 3,553 3,644 3,678 149,216 153,177 154,645 152,769 156,820 158,323Maine 3,040 3,112 3,093 58,891 60,293 59,932 61,931 63,406 63,025Maryland 6,747 7,363 7,893 105,921 115,584 123,911 112,668 122,946 131,804Massachusetts 7,043 7,271 7,377 94,380 97,439 98,862 101,422 104,710 106,239Michigan 8,613 8,735 8,664 222,489 225,543 223,783 231,102 234,278 232,447Minnesota 11,251 12,126 12,855 273,421 294,599 312,457 284,672 306,726 325,312Mississippi 7,223 7,361 7,416 185,311 188,892 190,325 192,534 196,254 197,741Missouri 11,287 11,695 12,032 236,686 245,392 252,536 247,973 257,087 264,568Montana 8,586 9,035 9,157 117,895 124,189 126,020 126,481 133,223 135,177Nebraska 5,079 5,201 5,209 134,075 137,746 138,053 139,153 142,946 143,263Nevada 4,661 5,768 7,097 68,410 84,367 103,906 73,071 90,135 111,003New Hampshire 2,048 2,204 2,361 44,277 47,642 51,038 46,325 49,846 53,399New Jersey 4,773 4,966 5,103 104,466 108,692 111,700 109,238 113,658 116,803New Mexico 8,807 9,201 9,195 109,848 115,168 115,333 118,655 124,369 124,528New York 7,728 7,795 7,693 275,875 278,322 274,692 283,603 286,117 282,385North Carolina 13,117 14,848 16,817 372,322 421,455 477,341 385,440 436,304 494,158North Dakota 5,937 6,072 5,799 104,227 107,646 103,041 110,164 113,718 108,840Ohio 10,947 10,940 10,765 369,967 369,749 363,841 380,914 380,689 374,606Oklahoma 8,466 8,835 9,180 194,117 202,853 210,801 202,583 211,688 219,982Oregon 7,277 8,089 9,104 143,489 159,412 179,425 150,767 167,501 188,528Pennsylvania 8,272 8,370 8,293 420,844 425,722 421,748 429,116 434,092 430,042Rhode Island 886 902 893 17,505 17,811 17,648 18,391 18,713 18,542South Carolina 8,836 9,549 10,112 206,668 223,396 236,602 215,503 232,945 246,715South Dakota 5,047 5,201 5,150 96,930 100,455 99,564 101,977 105,656 104,715Tennessee 11,104 12,011 12,968 266,513 288,277 311,269 277,617 300,287 324,237Texas 51,455 59,675 68,884 899,964 1,043,717 1,204,769 951,419 1,103,392 1,273,653Utah 5,992 6,878 7,952 103,463 118,843 137,414 109,455 125,721 145,366Vermont 1,950 2,028 2,074 29,599 30,780 31,491 31,549 32,809 33,564Virginia 12,789 14,136 15,449 217,569 240,507 262,870 230,359 254,643 278,320Washington 9,762 11,031 12,698 216,488 244,584 281,535 226,250 255,615 294,233West Virginia 3,143 3,085 2,922 98,664 96,902 91,831 101,807 99,987 94,753Wisconsin 8,555 8,886 9,028 332,094 344,954 350,525 340,649 353,840 359,554Wyoming 5,395 5,562 5,435 74,853 77,236 75,498 80,248 82,798 80,933United States 431,724 469,820 508,120 9,750,700 10,475,031 11,168,079 10,182,423 10,944,851 11,676,199Source: PCA

Annual Promotable Poential: FDR-C Volume By StateBased on estimated maintenance activity (Metric Tons)

Primary Roads Secondary Roads Total Network

19