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On Friday, August 1, Congress adjourned for a five week recess. Both the U.S. Senate and House of Representatives are scheduled to return on Monday, September 8, for an additional three to four weeks to attempt to wrap up any outstanding business before adjourning for the year in October. In the last week of July, most legislation under consideration, including several bills affecting public transportation, were postponed until September. Although Congress will return to continue to work on many of these items, it is uncertain whether it will be able to successfully enact any of the outstanding measures until next year.

U.S. Senate Debates Energy Package - Public Transportation Measures Under Consideration

Congress' top priority for the remainder of the year will be to enact a legislative package that addresses the high price of energy. Attempts prior to recess to enact a bill that would ease gas prices by curtailing speculation in oil markets and allowing for new domestic drilling were defeated. However, both the U.S. Senate and House of Representatives are expected to continue to push for an energy package upon their return in September.

Several Senators are seeking to add provisions to the energy package that would benefit public transportation. On Friday, August 1, Senator Hillary Clinton (D-NY) introduced the Saving Energy through Public Transportation Act of 2008 (S. 3380). This bill is a companion to H.R. 6052, introduced in the House of Representatives by James Oberstar (D-MN), Chairman of the House Transportation and Infrastructure Committee and John Mica (R-FL), Ranking Member of the Committee that passed in June by a vote of 322-98. The legislation authorizes $850 million for both Fiscal Year (FY) 2008 and 2009 to help transit systems cope with rising fuel costs and to promote public transportation ridership as a means to reduce domestic fuel consumption.

Of the amounts authorized in the bill, $750 million would be distributed through the urbanized area formula program and $100 million would be added to the rural transit formula program each year. It is important to note that these funds would be authorized only - subsequent Congressional appropriations would be required for funds to flow to transit agencies. The funds could be used by transit agencies for operating or capital costs to expand service or reduce fares, to avoid fare increases or service cuts that would otherwise result from increased costs for fuel, or to meet additional transportation-related equipment or facility maintenance expenses caused by increased ridership. The bill would also extend commuter pre-tax benefits to federal employees outside of the Washington, D.C. metropolitan area. Although H.R. 6052 passed the House as a stand-alone bill, the difficulty of obtaining Senate floor time indicates that for the Senate version to pass, it will have to be added to a larger energy package.

In mid-July, during debate on an energy package sponsored by Senate Majority Leader Harry Reid (D-NV), Senator Jeff Bingaman (D-NM), Chairman of the Senate Energy and Natural Resources Committee, offered an alternative proposal that included a supplemental appropriation of $1.3 billion for transit investment in FY 2008 and an authorization for $400 million of transit investment in each of FYs 2009 through 2011. Future iterations of a Senate energy package could include transit investment similar to the Bingaman amendment or the investment proposed by the "Saving Energy through Public Transportation Act of 2008" (S. 3380).

APTA is working closely with members of Congress and staff throughout the Congressional recess to promote the addition of measures to increase investment in public transportation as part of the energy bill.

Contact Homer Carlisle of APTA's Government Affairs Department at (202) 496-4810 or email hcarlisle@apta.com for additional information.

Congress Revives Economic Stimulus Package - Infrastructure Investment Considered

Another item due for consideration in September is a supplemental appropriations bill, which is being referred to as a second economic stimulus bill. The Senate Appropriations Committee is scheduled to consider the legislation in September, which will include a substantial amount of funds for "ready-to-go" transportation infrastructure projects. It is unclear whether funds will be included specifically for public transportation, however. The stimulus package is being advanced by Speaker of the House Nancy Pelosi (D-CA) and Senate Appropriations Committee Chairman Robert Byrd (D-WV). However, President Bush and several Republican Senators have questioned the need for such a bill, and have threatened to take action to prevent its passage.

APTA has worked closely with the Senate Banking and House Transportation & Infrastructure Committees to ensure that if a stimulus package is passed that includes investment for transportation infrastructure, that funds for public transportation projects are included.

Contact Homer Carlisle of APTA's Government Affairs Department at (202) 496-4810 or email hcarlisle@apta.com for additional information.

No Further Action On Thud, Homeland Security Appropriations Bills

As expected, Congress has ended further consideration of the FY 2009 funding bills, including the Transportation and Housing and Urban Development (THUD) Appropriations Act and the Homeland Security Appropriations Act. Congress is not expected to enact these bills until after the Congressional elections in November, either in a "lame duck" session in December, or after the beginning of the new Congress next year.

The Senate Appropriations Committee, approved the FY 2009 THUD appropriations bill in July. Included was $10.225 billion for transit, an increase of $838 million (8 percent) over the FY 2008 appropriated level, yet still $113 million short of the level authorized and guaranteed by SAFETEA-LU. The level funded for the Bus and Bus Facilities program accounts for approximately $100 million of the shortfall, while the remainder is from research programs and administration funding. Also included in the bill was an $8 billion transfer from the general fund to the Highway Trust Fund to postpone the projected insolvency of the Highway Trust Fund and allow for highway projects to be funded at the level authorized in SAFETEA-LU for FY 2009.

The House Appropriations Subcommittee on Transportation and Housing and Urban Development approved the FY 2009 THUD Appropriations bill at the end of June, providing $10.3 billion for the federal transit program, the full level authorized and guaranteed by SAFETEA-LU.

On June 24, the House Committee on Appropriations approved the FY 2009 Department of Homeland Security Appropriations bill. The legislation includes $400 million for transit and rail security grants, the same level of funding as last year. This amount is $225 million more than the Administration requested in its budget, but $350 million short of the level authorized in H.R.1, the "9/11 Commission Recommendations Act of 2007." In addition, the legislation includes language recommended by APTA to prohibit a local match requirement by the Department of Homeland Security (DHS). It also directs DHS to distribute the grants directly to transit authorities instead of through the states.

On June 19, the Senate Committee on Appropriations approved its version of the bill which also provides $400 million in funding for transit and rail security grants. The bill also would prohibit a local match by DHS, but does not direct DHS to distribute the grants directly to the transit authorities. As with the THUD bill, further consideration of these bills is not expected prior to the fall elections.

For more information on FY 2009 appropriations process, please contact Tom Yedinak of APTA's Government Affairs Department at (202) 496-4865 or email tyedinak@apta.com.

Further Consideration Of Amtrak Reauthorization Legislation Postponed

Congress continues to work to advance the "Passenger Rail Investment and Improvement Act of 2008," better known as the Amtrak Reauthorization bill. Senate and House sponsors are hoping to convene a conference committee in September to develop a compromise version of the legislation for final passage. The House bill was enacted in July by a vote of 311-104. The bill authorizes $14.4 billion for Amtrak over a five year period. The bill would significantly increase both Amtrak operating and capital grant funding. In addition, it would:

• create a state capital grant program for intercity passenger rail projects;

• help Amtrak to reduce its debt;

• authorize funding for grants to states and/or Amtrak to finance the construction and equipment for high-speed rail corridors;

• direct the Secretary of Transportation to issue a request for proposals for high-speed rail projects operating between Washington, D.C. and New York City; and

• establish a forum at the Surface Transportation Board to help mediate disputes between commuter rail providers and freight railroads over the use of freight rail tracks or rights-of-way.

The bill also would authorize the Secretary of Transportation to provide $1.5 billion in grants over the next 10 years to the Washington Metropolitan Area Transit Authority (WMATA) for infrastructure maintenance and expansion. The funds would require that Virginia, Maryland, and the District of Columbia enact dedicated funding of $1.5 billion over the same period and meet a 50/50 local match requirement for the funding.

The Senate version of the Amtrak reauthorization contains $11.4 billion over six years, and does not include a number of policy provisions included in the House version. APTA has expressed its support for the inclusion of the policy provisions contained in the House bill in the final conference report and has urged Congress to complete the bill this fall.

For more information on Amtrak reauthorization, please contact Tom Yedinak of APTA's Government Affairs Department at (202) 496-4865 or email tyedinak@apta.com.

House Passes Highway Trust Fund Fix Legislation

On Wednesday, July 23, the U.S. House of Representatives voted 387-37 to pass H.R. 6532, a bi-partisan bill to transfer $8 billion from the General Fund to the Highway Trust Fund (HTF) to fix the projected shortfall in FY 2009. This stand-alone legislation, sponsored by Ways and Means Committee Chairman Charles B. Rangel (D-NY), Transportation & Infrastructure (T&I) Committee Chairman James L. Oberstar (D-MN), and T&I Committee Ranking Member John Mica (R-FL), is the latest in a series of attempts to address the projected shortfall. The President has threatened to veto the legislation, but there would likely be sufficient votes in the House and Senate to override such a move. This is a similar provision to the HTF fix that was added to the Senate THUD Appropriations Bill, as noted above.

However, since the Senate THUD bill is not expected to advance, the Senate proponents will have to find some other legislative vehicle to carry the piece prior to adjournment in October. APTA has been working with Congressional leaders to advance this legislation as a preferable alternative to borrowing from the Mass Transit Account of the HTF to fix the shortfall, as proposed by the Administration.

Contact Homer Carlisle of APTA's Government Affairs Department at (202) 496-4810 or email hcarlisle@apta.com for additional information.

Senate Passes Rail Safety Enhancement Act

On August 1, the U.S. Senate passed by unanimous consent, H.R. 2095 the Rail Safety Enhancement Act. Although the Senate agreed to take up the legislation as passed by the House, prior to final passage, the Senate replaced the House language with its own version of the bill. The Senate version of the bill incorporates many of the modifications sought by APTA commuter rail operators that would give commuter and intercity rail operators three years to work with the Federal Railroad Administration to develop an alternative hours of service regime. Commuter and intercity rail operators would continue to operate under the old rules, until new regulations are issued specific to passenger carriers. The House of Representatives passed rail safety legislation last year that did not contain these accommodations. Since the Senate considered an amended version of the bill passed by the House of Representatives last year, the new package will have to be passed again by the full House. Congressional sponsors hope to have a final version of the bill completed for the President' signature by October.

Contact Homer Carlisle of APTA's Government Affairs Department at (202) 496-4810 or email hcarlisle@apta.com for additional information.

Congress Pursuing Multiple Strategies To Address Climate Change

Following the Senate's consideration of the Lieberman-Warner Climate Security Act (S. 3036) in early June, neither the House nor Senate is expected to hold floor debate on climate change legislation during the remainder of 2008. Instead, House and Senate committees will hold hearings this fall to explore options for climate bills that would be introduced when the 111th Congress convenes next January. The House Energy and Commerce Committee, the primary committee of jurisdiction in the House, is expected to continue to develop "white papers" on climate subjects and hold further hearings on how a "cap-and-trade" system could be introduced. In addition, the House Ways and Means Committee and the House Select Committee on Global Warming and Energy Independence are both expected to hold several important climate change meetings. Several recent climate proposals, including the Lieberman-Warner bill, the "Climate MATTERS Act of 2008" (H.R. 6316), and the "Investing in Climate Action and Protection Act" (H.R. 6186), have included significant transit investment, and future iterations could yield even higher levels of funding for public transportation.

APTA will continue to work with House and Senate committees to increase public transportation investment in climate change bills.

Contact Homer Carlisle of APTA's Government Affairs Department at (202) 496-4810 or email hcarlisle@apta.com for additional information regarding climate change matters.