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On Friday, October 30, the U.S. Senate passed a Continuing Resolution (CR) to extend the Safe, Accountable, Flexible and Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) and provide appropriations for transit programs through December 18. The President signed the bill into law on October 31, just prior to the expiration of the existing CR. The legislation, which was enacted as part of the Fiscal Year (FY) 2010 Interior, Environment and Related Agencies Appropriations Bill (H.R. 2996), extends funding for transportation programs at FY 2009 levels.  This is the second CR that has been required to authorize short-term funding for the federal transportation program, as Congressional negotiators have not been able to enact a full six-year authorization bill, nor pass the FY 2010 Transportation and Housing and Urban Development (THUD) Appropriations Bill, H.R. 3288.  Attempts to enact a multi-month extension that gives states and transit systems funding in the current fiscal year and Congress the time it needs to craft a six-year bill have also fallen short.

Both the House and Senate have passed different versions of the FY 2010 THUD Appropriations Bill.  However, the legislation still has not been sent to a House-Senate conference committee. It is likely that Congress will need to combine the remaining appropriations bills into a large omnibus package prior to the end of the calendar year. Congressional leaders have indicated that they will try to complete the remaining appropriations bills prior to Thanksgiving.

For a detailed discussion of the contents of the House and Senate THUD Appropriations Bill, click here.

Prior to the passage of the CR, attempts to enact a six-month extension of SAFETEA-LU stalled. Members of the Senate Committee on Environment and Public Works (EPW) appear more willing to reject  the Obama administration’s request for an 18-month extension of federal surface transportation law, and instead seek a $39.5 billion extension that would authorize transportation programs through April 30, 2010 at FY 2009 levels. Attempts to bring the six-month extension legislation to the Senate floor under rules that would have allowed for expedited consideration were thwarted over objections by several Senate Republicans.  Senate leaders, however, have vowed to continue their efforts to enact a six-month extension, which would supersede the existing CR if it becomes law prior to December 18. Even if the Senate is successful in enacting the legislation, it must gain approval in the House of Representatives which has passed its own three-month extension legislation (H.R. 3617). Chairman James Oberstar (D-MN) of the House Committee on Transportation and Infrastructure has been adamant about keeping pressure on Congress to pass a long-term authorization and has not indicated whether he would support any extension legislation longer than three months. 

In addition to the length of any short-term extension of authorizing law, there are other substantive disagreements between the House and Senate that would need to be reconciled. The Senate six-month extension would have restored the $8.7 billion in highway contract authority to states that was rescinded just prior to the expiration of SAFETEA-LU. While the three-month extension passed by the House did not address this issue, it remains important for state transportation departments and for establishing a baseline for highway programs in the next authorization bill. In addition, the Senate short-term extension proposed to take highway funds which were earmarked in FY 2009 and distribute those funds under highway formula programs. The short-term House proposal proposed to allocate those funds to the U.S. Department of Transportation for distribution under a competitive grant program.

While it is not clear whether the House and Senate will agree on the six month extension of authorizing law, or on an 18-month extension there is growing pressure on Congressional leaders to enact an extension that provides infrastructure investment to create jobs and stimulate the economy. Moreover, Congress can pass a six or seven month extension that does not require new funding for programs supported by the Highway Account of the Highway Trust Fund, while an 18-month extension of surface transportation authorizing law would require more funding than current fuel tax revenues to fund highway programs at even current levels. While estimates for the Mass Transit Account of the Highway Trust Fund, plus existing general fund support indicate that transit programs could be funded at current levels for the 18 months, an additional transfer of revenue would be required to accommodate growth in the transit program over the 18-month period.

Senator Boxer Releases New Draft of Climate Legislation:
New Bill Provides Significant Increase in Funding For Public Transportation

On October 23, Chairman Barbara Boxer (D-CA) released her “chairman’s mark,” which will serve as the base bill for the Environment and Public Works Committee’s consideration of climate change legislation. S. 1733, the “Clean Energy Jobs and American Power Act,” is sponsored by Senate Foreign Relations Committee Chairman John Kerry (D-MA) and Chairman Boxer.

Of interest to public transportation, the chairman's mark specifies the distribution of revenues from the auction of emissions allowances.  Emission allowances are permits for the release of carbon dioxide and other greenhouse gases under a cap-and-trade program. The bill specifies that roughly 2.5 percent of allowances will be auctioned for transportation investment. Half of the revenue would be distributed directly to public transportation providers through the Section 5307/5340 and 5311 formula programs. The other half would be allocated to a competitive multi-modal program for projects, including transit investments, in new regional and state emission reduction plans.

The Environmental Protection Agency (EPA) has made preliminary estimates of the value of emission allowances. Based on these estimates, the set-aside for transportation investment would be valued between $1.4 billion and $3 billion annually. The level of allowances dedicated to transportation fluctuates each year under the Kerry-Boxer bill, and the market price of emission allowances would set the final value. Trading of allowances would begin in 2012.

To increase funding for transit and transportation, funding for other energy efficiency and climate adaptation investments in the Kerry-Boxer bill were slightly reduced or held constant. APTA members need to continue advocacy efforts related to climate legislation to maintain or increase funding in future versions of the bill. As a point of comparison, climate legislation passed by the House of Representatives earlier this year made less than 1 percent of allowances, about $600 million, eligible for transportation investment by states, and no funding was guaranteed for transit investment.

EPW Committee hearings and markup and the Senate floor

Last week, the Senate EPW Committee began hearings on the Kerry-Boxer bill (S.1733). Transportation Secretary Ray LaHood, APTA President Bill Millar and numerous other witnesses testified during a three-day set of hearings. To see Bill Millar’s testimony, click here.

This week, Chairman Boxer hopes to complete a markup session and report the bill out of her committee. If that occurs, other committees with partial jurisdiction, including the Senate Committee on Finance, will likely hold a markup later this year, and Democratic leaders could bring the bill to the Senate floor in early 2010.

Department of Homeland Security (DHS) Appropriations for FY 2010 Sent to the President

Last week, the U.S. Senate passed the House-Senate Conference Report to accompany H.R. 2892, the FY 2010 DHS Appropriations Bill. The House had passed the Conference Report on October 15, 2009. The bill provides funding for the Department and agencies such as the Transportation Security Administration (TSA) and the Federal Emergency Management Agency (FEMA), which are instrumental in carrying out programs to advance public transportation and rail security plans, projects, and research. The bill has been presented to President Obama and awaits his signature.

The Conference Report provides a total of $300 million for Rail and Public Transportation Security grants -- $50 million more than the budget request and the House level, and $56 million less than the Senate level.  A minimum level of $20 million in funding is set aside for Amtrak security improvements.  The bill also continues a legislative provision requiring DHS to provide grants directly to public transportation agencies. The conferees did include non-binding report language recognizing the state role in “coordinating regional interests in regard to transit security” and they “direct FEMA to allow transit agencies to permit states to act as sub-grantees to better facilitate regional planning and programs.”

The Conference Report also makes note of the fact that 90 percent of funds appropriated in FY 2006 for rail and transit security remain unexpended, and they direct FEMA and TSA to report by December 15, 2009 on their progress working with public transportation agencies to expend grant funds for FY 2006, 2007, and 2008.