Update on TEA 21 reauthorization and other
issues
May 12, 2004
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TEA 21 Reauthorization Remains Stalled
Negotiations between Congress and Administration Falter
With House and Senate passed TEA 21 reauthorization bills in place, over
the past two weeks White House staff and Congressional Republican leadership
tried but failed to reach agreement on funding levels for a six-year TEA 21
reauthorization bill. Republican leaders in both the House and Senate want
to go to conference on the two bills without an agreement on funding, but
Senate Minority Leader Daschle (D-SD) to date has not agreed to appoint conferees
until several pre-conference agreements have been reached. Democrats, the
minority party in both houses of Congress, have felt shut out of the conference
process on several other issues and continue to seek a pre-conference agreement
on their role and the bill's overall funding level.
Short-term Extension Passed
Separately, the President signed into law another two-month extension of
the TEA 21 law that authorizes funding for federal surface transportation
programs at FY 2004 levels. The temporary extension will expire on June 30,
providing both additional FY 2004 funds to be made available by FTA and more
time for negotiations on the reauthorization bill to continue.
For more information on the TEA 21 reauthorization process, please contact
Rob Healy in the Government Affairs Department at (202) 496-4811 or rhealy@apta.com.
Legislation Focuses on Transit and Rail Security; APTA Releases
Security Survey
Because of concerns about transit and rail security, heightened by the terrorist
bombing of the rail system in Madrid in March, Congress has held several recent
hearings and introduced legislation focusing on this issue. APTA members and
staff have provided oral and written testimony at these hearings and worked
with Congressional staff on several of the bills. Separately, APTA released
a survey of public transportation security needs which identified more than
$6 billion in needs, and communicated the results of the survey to Congress
and the Administration. Visit the Services and Programs section of the APTA
website at www.apta.com to review the survey.
Senate Banking Committee Marks Up Security Legislation
On May 6, the Senate Banking Committee, which has jurisdiction over the federal
transit program, unanimously approved the 'Public Transportation Terrorism
Prevention Act of 2004', which would authorize $5.2 billion to enhance public
transportation security. The bill would allocate funds to public transit systems
on the basis of FTA's transit agency security assessments, as well as on the
basis of security assessments DHS would conduct at bus-only and rural transit
systems.
The bill would authorize Security Assistance Grants under two programs. The
Capital Security Assistance Program is authorized at $3.5 billion in FY 2005,
to be available until expended; activities eligible for funding include tunnel
protection systems, perimeter protection systems, surveillance equipment,
communications and redundant critical operations control systems, global positioning
control systems, fire suppression and decontamination equipment, equipment
for the detection of biological, chemical, radiological or explosives, evacuation
improvements, and other capital security improvement needs. The Operational
Security Assistance Program is authorized at $800 million in FY 2005, $500
million in FY 2006, and $200 million FY 2007. Eligible expenses include workforce
training, live and tabletop drills, public awareness campaigns, canine patrols,
and overtime reimbursement for enhanced security personnel during significant
public events. In addition, $200 million would be available for research in
the area of transit security, including testing and evaluation of new technologies.
The bill would require recipient agencies to: identify a security coordinator
to coordinate security improvements; develop a comprehensive security plan;
and report annually to DHS on the use of security funds. The public transportation
ISAC would be funded by DHS. DHS and DOT would be required to enter into a
Memorandum of Understanding to define and clarify the transit security roles
of the respective agencies. A sunset provision would end all programs and
requirements under the bill on October 1, 2007. For a copy of the bill, which
is expected to be posted in the next few days, please visit the Library of
Congress' legislative information website at http://thomas.loc.gov.
Senate Commerce Committee Marks Up Rail Security
The Senate Commerce Committee, with jurisdiction over intercity passenger
and freight rail, on March 23, held a hearing on rail security. APTA President
William Millar testified at the hearing on the security actions taken by public
transportation and commuter rail systems since September 11, 2001, and identified
further steps needed to enhance security, including transit security funding
needs of more than $6 billion. Mr. Millar's testimony is available on the
Government Affairs section of the APTA website at www.apta.com. Subsequently
the Commerce Committee approved S. 2273, the 'Rail Security Act of 2004'.
The bill would authorize $1.3 billion in funding to improve security on passenger
and freight rail systems. The bill primarily benefits freight rail and Amtrak,
but would produce secondary benefits to public transportation and commuter
rail systems that share tracks and facilities.
Among other things, the measure would direct the Department of Homeland Security
to complete a $5 million vulnerability assessment of the rail transportation
system, including commuter rail, and make recommendations for addressing security
weaknesses. The bill would also create a pilot program to screen passengers
and baggage on passenger rail. It authorizes $670 million for FY 2005 to FY
2009 to improve the condition of three heavily-used tunnels in New York, Baltimore,
and Washington, D.C. The bill would also authorize $62.5 million for system-wide
security improvements for Amtrak in FY 2005, for upgrades in stations, more
security personnel, and other purposes. The bill would also authorize another
$250 million in FY 2005 for security upgrades for freight rail, Amtrak, and
other passenger rail carriers. Finally, amendments to the bill approved at
markup would require a study on the impact of blocked grade crossings on the
ability of emergency workers to respond to an attack; and would prohibit railroads
from discharging or disciplining an employee for raising security issues.
For a copy of the bill, please visit the Library of Congress' legislative
information website at http://thomas.loc.gov.
Next Steps
The Commerce Committee and Senate Banking Committee security bills are expected
to be joined and brought to a vote on the Senate floor, although it is not
yet clear when.
APTA Members and Staff Testify Before House Subcommittee on Railroads
On May 5, James Dermody, President of the Long Island Rail Road, Rick Tidwell,
Deputy Executive Director
of the Metra, and APTA Vice President of Government Affairs Dan Duff, testified
before the House Transportation and Infrastructure Committee's Subcommittee
on Railroads on passenger rail security needs. A copy of APTA's testimony
is available on the Government Affairs section of the APTA website at www.apta.com.
Other Meetings and Legislation
On April 6, Senator Jeff Sessions (R-AL) introduced S. 2289, the 'Railroad
Carriers and Mass Transportation Protection Act of 2004.' The bill would combine
two laws regarding attacks on public transportation and passenger rail systems
and provide federal penalties similar to those required for aviation crimes.
On April 21, the House Select Committee Homeland Security Subcommittees on
Infrastructure and Border Security, and on Cybersecurity, Science, Research
and Development held a joint hearing on issues related to critical infrastructure.
The Committee's Emergency Preparedness and Response Subcommittee on April
28 held an oversight hearing on first responder assistance programs in the
Office of Domestic Preparedness (ODP), which administers security grants to
transit agencies. As a result of these hearings, Ranking Member Jim Turner
(D-TX) is expected to introduce several bills this week, including a bill
on rail security.
APTA has submitted testimony to the Appropriations Subcommittees on Homeland
Security in the House and Senate in connection with the FY 2005 budget for
the Department of Homeland Security. The testimony cites APTA's security survey
and urges the Committees to make available $2 billion in transit security
funding in FY 2005 directly to public transportation systems. The testimony
may be viewed on the Government Affairs section of the APTA website at www.apta.com.
APTA staff continue to meet with congressional and DHS staff to make the case
for increased transit security funding.
For more information on security issues, please contact Tom Yedinak at (202)
496-4865 or tyedinak@apta.com.
Fiscal Year 2005 Appropriations Process Update
With the House and Senate unable to reach agreement on the FY 2005 Budget
Resolution, appropriations committees have not yet made allocations to the
13 appropriations subcommittees in each house, the first step in writing FY
2005 appropriations bills. APTA has provided written testimony for the record
to appropriations subcommittees on transportation in both Houses of Congress;
it requests no less than the $8.65 billion authorized for FY 2005 in the Senate's
TEA 21 reauthorization bill. APTA also made it clear that the Administration's
proposal to freeze funding at the FY 2004 level of $7.266 billion is inadequate.
On March 25, APTA President William Millar testified before the Senate Banking
Committee on federal transit investment for FY 2005, emphasizing the need
for the FY 2005 funding level of $8.65 billion in the Senate's SAFETEA bill.
Copies of the testimony to Senate Banking and the Appropriations Subcommittees
are available on the Government Affairs section of the APTA website at www.apta.com.
On April 29, FTA Administrator Jennifer Dorn testified before the House Appropriations
Subcommittee on Transportation, Treasury, and Independent Agencies on the
Administration's FY 2005 request for funding for the federal transit program.
Much of the hearing focused on issues relating to the New Starts program.
For more information on the FY 2005 appropriations process, please contact
Rob Healy in the Government Affairs Department at (202) 496-4811 or rhealy@apta.com.
Legislation Affecting Leasing Transactions Considered in the
Senate
The Senate on May 11 passed trade legislation (S. 1637) that includes a provision
to retroactively, as of November 18, 2003, prohibit tax-advantaged sale-in,
lease-out (SILO) transactions. The House version of the bill (H.R. 3967) contains
similar language that would be effective on February 10, 2004, except for
a provision that would grandfather the fifteen tax-advantaged transactions
pending at FTA. APTA opposes these provisions; many transit agencies have
utilized tax-advantaged leasing transactions to generate additional revenues.
Reports indicate the House will now consider its version of the bill, starting
with a markup in the Ways and Means Committee, which has not yet been scheduled.
On May 4, a coalition of interest groups in support of tax-advantaged leasing
transactions - the Big-Ticket Leasing Coalition - announced a proposal to
revise the SILO-related language in the House version to make the provision
more acceptable to those who contend the existing transactions are abusive.
The Coalition hopes to find a sponsor for its proposal and incorporate it
into an amendment to H.R. 3967 when it is marked up or debated on the floor.
The Administration already has indicated its opposition to the proposal.
For more information on legislation affecting SILO transactions, please contact
Demaune Millard at (202) 496-4887 or dmillard@apta.com.
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