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As time runs out on the current Congressional session, negotiations continue on legislation to provide appropriations for FY 2010, extend or modify existing surface transportation authorization law, and provide new funds for transportation infrastructure as part of a “jobs” bill to further stimulate the economy.
Momentum has been building for Congress to enact a “jobs bill” in response to the October unemployment numbers of 10.2 percent. President Barack Obama held a jobs summit on December 3, hosting representatives from small businesses, academia, and major corporations. House Democrats returned from the Thanksgiving holiday to formulate proposals for tax incentives, infrastructure, and construction projects to spur employment. Democrats also want to extend the long-term unemployment benefits that were passed under the American Recovery and Reinvestment Act (ARRA) which are set to expire at the end of December.
In advance of the White House Summit later this week, APTA President Bill Millar participated in a press conference with House Transportation and Infrastructure Committee Chairman James Oberstar (D-MN), Highways and Transit Subcommittee Chairman Peter DeFazio (D-OR), new committee member Representative John Garamendi (D-CA), and AASHTO Executive Director John Horsely to announce the results of an APTA survey that identified more than $15 billion in “ready-to-go” projects for consideration in the jobs package. Simultaneously, APTA’s Vice President of Policy, Art Guzzetti, joined Jack Basso, COO of AASHTO at a similar event with Environment and Public Works Committee Chairwoman Barbara Boxer (D-CA). APTA thanks all its members for participating in this survey.
In the meantime, Congress must enact legislation prior to December 18 to provide appropriations for FY 2010 and further extend the Safe, Accountable, Flexible and Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU). The Continuing Resolution (CR) passed on October 30 extended (SAFETEA-LU) and provided appropriations funding for transit programs at FY 2009 levels through December 18. The legislation was signed into law as part of the Fiscal Year (FY) 2010 Interior, Environment, and Related Agencies Appropriations Bill (H.R. 2996).
This CR is the second that has been required to extend transportation appropriations and authorize short-term funding for the federal transportation program, as Congressional committees have not been able to craft and agree on a full six-year authorization bill, nor pass the FY 2010 Transportation and Housing and Urban Development (THUD) Appropriations Bill (H.R. 3288). Congress may combine the remaining appropriations bills into an omnibus package prior to the end of the calendar year. It is likely that another short-term extension of surface transportation law will be included in that same package. The omnibus package may also include the “jobs” bill described above.
Leaders of several committees in the U.S. Senate have urged that chamber’s leadership to enact a six month authorization extension. However, considering the Senate’s focus on health care legislation, it is unlikely that any proposed extension of authorizing legislation will be considered as a stand-alone measure. 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. However, a longer extension, such as the 18-month bill supported by the Administration, would require more funding than current fuel tax revenues generate to fund highway programs at even current levels.
House Transportation and Infrastructure Chairman James Oberstar (D-MN) and House Appropriations Chairman David Obey (D-WI) have reportedly been working on a new proposal to provide more than $100 billion from the general fund of the Treasury to finance highways and transit programs for the next two years. However, with the Senate still debating healthcare reform legislation, it currently appears unlikely that a bill could pass both chambers before early 2010.
Administration Proposes Federal Legislation for Increased Transit Safety Oversight
The U.S. Department of Transportation (DOT) is preparing a legislative proposal, entitled the “Public Transportation Safety Program Act of 2009,” to establish and enforce minimum safety standards for rail and bus transit safety, giving the Federal Transit Administration (FTA) new powers to oversee and regulate the safety and operations of local transit systems that are not already regulated by the Federal Railroad Administration (FRA).
Reportedly, a safety certification program would be established under the bill, in which states that choose to participate in the program would be eligible for federal transit assistance to implement an approved safety oversight program. States would be given the choice to serve as the federal enforcement authority through State Safety Oversight (SSO) bodies, or can “opt out” of enforcing the new safety standards and turn over enforcement to the FTA. The FTA would seek the authority to take over regulation if the state safety regulator is found to be not performing adequately.
APTA President Bill Millar is scheduled to testify, along with DOT Secretary Ray LaHood and FTA Administrator Peter Rogoff, before both the House Transportation and Infrastructure Committee and the Senate Banking Committee next week to outline the transit industry’s position on federal safety regulation and the Administration’s proposal.
Kerry-Boxer Climate Change Bill Reported Out of Committee; No Action Before Copenhagen Climate Summit
Further action on climate change legislation is not expected before the end of the year. In November, the Clean Energy Jobs and American Power Act (S. 1733) was approved by the Senate Environment and Public Works Committee (EPW) by a vote of 11-1, after all seven of the Republicans on the committee boycotted the hearing. Senator Max Baucus (D-MT) was the lone Democrat to vote against the bill. Senator George Voinovich (R-OH) did attend the hearing briefly to make a statement calling for further study of the bill’s impacts.
The next procedural step is for other committees with partial jurisdiction to hold markups, including the Senate Finance Committee. However, it is unlikely that this would occur before early 2010, after which Democratic leaders could bring the bill to the Senate floor.
In regard to public transportation, the bill specifies that roughly 2.5 percent of emissions 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 planning activities and a competitive multi-modal program for projects, including transit investments, in the 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.
Senators John Kerry (D-MA), Lindsey Graham (R-SC), and Joe Lieberman (I-CT) have also been working on a bipartisan compromise proposal, though details may not be ready until early next year. The United Nations climate negotiations in Copenhagen, Denmark begin on December 7 and had been an original deadline for legislation, but on November 15, President Barack Obama conceded that there was no longer time left to secure a binding climate deal in time for the scheduled negotiations. Instead, Obama pledged that the U.S. will reduce emissions 17 percent from 2005 levels by 2020 so long as Congress acts. It is now expected that a 2010 deadline for a new global treaty to succeed the expiring Kyoto Protocol will be agreed to at Copenhagen.
US DOT Announces First $280M in Funds for Rail/Bus/Bus Facility Grants
On December 1, Ray LaHood, U.S. Secretary of Transportation, announced the availability of $280 million for urban circulator projects such as streetcars, buses, and bus facilities as the first round of competitive grant funding for the Obama Administration’s Livability Initiative, a partnership among DOT, EPA, and the Department of Housing and Urban Development (HUD). A Notice of Funding Availability (NOFA) will be published in the Federal Register within the next week and grant announcements will be made in early 2010.
Out of the $130 million in unallocated discretionary New Starts/Small Starts Program funds, a maximum of $25 million per project will be made available. Projects that promote the redevelopment of communities into walkable, higher-density neighborhoods that provide connections between destinations. Projects that are eligible for funding include streetcars and other urban circulator systems.
The $150 million in unallocated Bus and Bus Facility funds will be directed towards projects that promote the preservation and growth of urban and rural communities by providing new mobility choices which provide access to job and educational centers, as well as healthcare facilities.
Extension of Alternative Fuels Tax Credit Under Consideration
Also under consideration in Congress is legislation to extend the alternative fuels tax credit for compressed natural gas (CNG) and liquefied natural gas (LNG). The current tax credit expires at the end of this year. Public transportation operators who currently utilize compressed natural gas (CNG) and liquid natural gas (LNG) are eligible for a 50 cent per gallon equivalent tax credit. The funds made available under these tax credits have provided public transportation agencies with a significant source of offsetting revenues to agencies’ fuel budgets. APTA has estimated the 50 cent/gallon credit was worth about $53 million for agencies in 2008. The tax credits have supported the industry goals of enhancing our nation’s long-term strategy for energy security and its contribution to the reduction of greenhouse gas emissions.
APTA has been informed that the House Ways and Means Committee and the Senate Finance Committee are considering including the extension of these tax credits within a larger package of what are known as “tax extenders” – a long list of tax provisions that also expire at the end of the calendar year. APTA has written to the chairmen and members of both committees urging their support of the extension. If you have not done so, please contact your elected representatives in the U.S. House and Senate to hear from APTA members expressing support for the extension of these important provisions of the federal tax code before Congress completes its work for 2009. For more information, please see our Special Legislative Alert on this issue from November 6 here.
For additional information on any of these issues, please contact Paul Dean of APTA’s Government Affairs Department at (202) 496-4887 or email pdean@apta.com.