APTA: Legislative Update

House T&I Leaders Introduce TEA LU Bill

February 17, 2005

On February 9, the leadership of the House Transportation and Infrastructure (T&I) Committee introduced the Transportation Equity Act: A Legacy For Users (TEA LU; H.R. 3). The bill was jointly introduced by T&I Committee Chairman Don Young (R-AK); Ranking Democrat James Oberstar (D-MN); Highway, Transit, and Pipelines Subcommittee Chairman Tom Petri (R-WI); and Subcommittee Ranking Democrat Peter DeFazio (D-OR). The bill would authorize $283.9 billion in funding for transit and highway programs over six years (Fiscal Years 2004 - 2009), with $52.35 billion in guaranteed funding authorized for public transportation. Funding for the federal transit program would rise from $7.65 billion in the current year, to $10.28 billion in FY 2009.

Summary of TEA LU Transit Funding

Program	FY 2004	FY 2005	FY 2006	FY 2007	FY 2008	FY 2009	Six-Year Total
	(Millions)	(Millions)	(Millions)	(Millions)	(Millions)	(Millions)	(Millions)
Total All Programs	7,266.0	7,646.3	8,482.0	9,042.0	9,639.0	10,277.0	52,352.3
Formula Total	3,915.4	4,133.5	4,592.0	4,898.0	5,223.0	5,570.0	28,331.9
§ 5307 UZA	3,333.4	3,383.5	3,736.5	3,982.7	4,260.1	4,560.8	23,257.0
§ 5311 Rural Area	298.0	302.4	334.0	356.0	380.8	407.7	2,078.8
§ 5310 Elderly and Disabled	93.1	94.5	104.4	111.2	119.0	127.4	649.6
Job Access and Reverse Commute	125.0	150.0	175.0	200.0	200.0	200.0	1,050.0
New Freedom Program	0.0	95.0	100.0	105.0	115.0	125.0	540.0
Clean Fuels Formula	50.0	75.0	100.0	100.0	100.0	100.0	525.0
Transit in the Parks Pilot	0.0	8.0	16.0	16.0	16.0	16.0	72.0
Nonmotorized Pilot	0.0	4.0	4.0	4.0	8.0	8.0	28.0
Alaska Railroad	4.8	10.0	11.0	12.0	13.0	14.0	64.8
Section 5318 Bus Testing	3.1	3.1	3.1	3.1	3.1	3.1	18.6
§ 3038 Over-the Road Bus	8.0	8.0	8.0	8.0	8.0	8.0	48.0
§ 5309 Capital Investment Total	3,124.4	3,275.4	3,641.7	3,884.3	4,144.5	4,423.1	22,493.4
Small Starts	0.0	135.0	175.0	200.0	200.0	225.0	935.0
New Starts	1,249.8	1,256.2	1,386.7	1,473.7	1,577.8	1,679.3	8,623.4
Fixed-Guideway Modernization	1,249.8	1,256.2	1,386.7	1,473.7	1,577.8	1,679.3	8,623.4
Bus and Bus Facilities	624.9	628.1	693.3	736.9	788.9	839.6	4,311.7
Planning	90.8	96.9	103.3	110.2	117.5	125.4	644.1
Research	52.4	54.5	57.0	59.5	62.0	64.5	349.9
§ 5505 University Centers	8.0	8.0	8.0	8.0	8.0	8.0	48.0
FTA Operations	75.1	78.0	80.0	82.0	84.0	86.0	485.1

Committee Chairman Don Young has stated his intention to markup the bill during the first week of March and move the bill to the House Floor during the week of March 7, which is the week of APTA Legislative Conference. The introduced bill does not yet include a dollar amount for contract authority, and does not yet include language dictating a minimum percentage of gas tax resources that must be returned to states under the highway program. Current law provides for a 90.5% minimum return of gas tax resources to the states; advocates for an increase in the minimum guarantee are seeking a 95% rate of return.

In general, the introduced bill is essentially the same as last year's House-passed bill (H.R. 3550), with slightly increased funding levels. While the bill does not yet include funding guarantees, it includes language stating that they will be added to the bill. Before the bill moves to the House Floor, the Ways and Means Committee will need to approve a tax title, the Energy and Commerce Committee must approve a title on safety issues, and the Budget Committee will need to approve its title on the budget guarantees.

New Programs

As in last year's bill, the following new transit programs would be created:

A new program for transit intensive urbanized areas under 200,000 in population would grow from $38 million in FY 2005 to $50 million in FY 2009. It would be funded through a set aside from the formula program and is nearly identical to APTA's reauthorization proposal.

A New Freedom Initiative program would provide funding for activities beyond those required by ADA. It would grow from $95 million in FY 2005 to $125 million in FY 2009. The New Freedom Initiative would be allocated using a formula based on the disabled population in a state, with 60% of the funds allocated to urbanized areas with populations larger than 200,000, 20% to states for use in urbanized areas of less than 200,000, and 20% to states for use in rural areas. The program contains language mandating coordination of transportation services with other federal human service programs.

A new Small Starts program would be created, funded by a take down from the capital investment program. It would provide funding for smaller projects with a federal New Starts share of between $25 million and $75 million, including streetcar, trolley, bus rapid transit (BRT) (if a majority of the project includes a dedicated alignment for exclusive use by public transportation vehicles for at least part of the day), and commuter rail projects. Funding for Small Starts would be $135 million in FY 2005 and rise to $225 million annually by FY 2009.

The bill would also create a Transit in the Parks pilot program, designed to develop transit in National Parks with the goal of improving mobility and reducing congestion and pollution. It would be funded at $8 million in FY 2005 and $16 million annually in subsequent years.

Other Provisions

The bill does not change the New Starts federal share of 80%. It would significantly increase funding for the rural program from 6.5% to 8% of the transit formula program. Intercity bus facilities would be eligible as capital projects if the facility serves as a connector to public transportation. Security and emergency preparedness projects, including training and drill expenses, would be eligible for capital funding.

New criteria are added to the formula of the Clean Fuels Grant program. The bill would require coordination between private, non-profit, and public transportation providers and other federal programs in the Job Access and Reverse Commute (JARC) program, the New Freedoms Initiative, and the Elderly and Disabled program. The bill would add "safety and security management" to project management and oversight review requirements and grant the secretary some ability to permit transit systems complying with more than one DOT drug and alcohol testing to simplify the varying requirements. The bill also contains a provision that would allow transit agencies in urban areas reclassified as being larger than 200,000 in population after the 2000 census to continue to use formula funds for operating expenses in FY's 2003 through 2005 at the same level as 2002. The bill would change all references in transit law from "transit" to "public transportation."

The bill would not change the Fixed-guideway Modernization formula to add an 8th tier as recommended in APTA's reauthorization proposal, but would distribute all additional funding under the existing 7th tier. It would also strike language in the existing Fixed-guideway Modernization program that excludes rail lines in service after 1997; which means all rail lines in operation more than 7 years would be counted in the formula.

The bill does not include provisions added after the bill was introduced last year on tolling and Buy America, but these may be added to the bill during markup. It does repeat Buy America language included in the original bill last year that would require a detailed written justification of any public interest waivers approved by the Federal Transit Administration (FTA), and also provides for judicial review of FTA Buy America decisions. Similarly, the bill continues language on charter and school bus included in last year's bill that would give the secretary authority to withhold a portion of a recipient's grant funds in the event of a pattern of violations of the charter or school bus regulations.

The bill extends the current exemption from axle-weight limitations for transit buses through FY 2009, but does not expand the exemption to inter-city buses. The bill would generally preserve the existing structure of the highway program and would not change flexible funding provisions that permit certain highway funds to be used for transit projects.

Senate Action on Reauthorization

Although no bill to reauthorize transit or highway programs has yet been introduced in the Senate, leaders of the Banking, Housing and Urban Affairs Committee, the Environment and Public Works Committee, and the Senate Finance Committee have been involved in discussions on a bill. Environment and Public Works Committee Chairman Jim Inhofe (R-OK) has indicated that he will mark up a bill that would conform with the Administration's proposal for a six-year, $284 billion bill. It is anticipated that there would be amendments offered on the Senate Floor to increase funding. Banking Committee Chairman Richard Shelby (R-AL), Environment and Public Works Committee Chairman Jim Inhofe, and Finance Committee Chairman Charles Grassley (R-IA) and 21 other Republican Senators recently signed a letter to President Bush stating their support for the $318 billion bill approved by the Senate last year. The letter said: "This level of investment is necessary in order to address the various needs of importance to our states: an equitable distribution of federal transportation funds among both donor and donee states, needed safety improvements, transit improvements, and job creation."

Build America Bonds

Separately, a draft version of the Build America Bonds proposal, which is similar to a bill introduced last year by Senators Jim Talent (R-MO) and Ron Wyden (D-OR), was being circulated last week. It would create a Transportation Finance Corporation that would be authorized to issue 30-year bonds of $30 billion for infrastructure investment, plus up to $9 billion in bonds for the repayment of the principal on such bonds at maturity. Investment under the bonds would be distributed 80% for highway projects, and 20% for public transportation, including intercity passenger rail.

For more information, please contact Rob Healy of APTA's Government Affairs Department at (202) 496-4811 or email rhealy@apta.com; or visit the Government Affairs Section of the APTA web site at www.apta.com.

House Appropriations Subcommittees Restructured

The House Appropriations Committee, led by its new Chairman Jerry Lewis (R-CA), approved a reorganization of its subcommittee structure that reduces the number of subcommittees from 13 to 10. The new subcommittee structure would modify the jurisdiction of the former Appropriations Subcommittee on Transportation, Treasury, and Independent Agencies, which has had jurisdiction over the federal transit program. Under the new subcommittee structure, transit funding would be under a new Subcommittee on Transportation, Treasury, and Housing, chaired by Rep. Joe Knollenberg (R-MI), who had chaired the Military Construction Subcommittee in the last Congress. Rep. Ernest Istook, the previous chairman of the Subcommittee on Transportation, Treasury, and Independent Agencies, lost his chairmanship in the shuffle.

At press time, the Senate Appropriations Committee appeared to be leaning against making similar changes to its subcommittee structure. Senate appropriators are reportedly opposed to the House proposal, but Senate Appropriations Chairman Thad Cochran recently said that no final decision had been made.

APTA Legislative Conference

Be sure to attend APTA's Legislative Conference, March 6 - 8, 2005 in Washington, D.C. This is your opportunity to participate in what could be the final push to reauthorize TEA 21 in Congress before the existing law expires on May 31. The bill could be on the House Floor the week of APTA's Legislative Conference. The APTA Legislative Committee will meet on Sunday, March 6, at 9:30 a.m., to review the political landscape and strategize on how to make the best case for transit funding on Capitol Hill. On Monday morning, U.S. DOT Secretary Norman Mineta will give the keynote speech at the opening general session. Monday afternoon key congressional staff will be on hand with the latest information. On Tuesday morning, House Transportation and Infrastructure (T&I) Committee Chairman Don Young, T&I Highways, Transit and Pipelines Subcommittee Chairman Tom Petri, T&I Railroad Subcommittee Chairman Steven LaTourette (R-OH), Senate Housing and Transportation Subcommittee Chairman Wayne Allard (R-CO), Senate Banking Committee Ranking Member Paul Sarbanes (D-MD), and Senator Norm Coleman (R-MN) are all scheduled to be with us to talk about transit issues in the U.S. Congress.

Don't miss this exciting conference. Make sure your voice is heard on Capitol Hill!

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