SAFETEA-LU Implementation
September 22, 2005
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The Safe, Accountable, Flexible, Efficient Transportation
Equity Act: A Legacy for Users (SAFETEA-LU) was signed by President Bush on
August 10 (Public Law 109-59). Implementation of the new law will involve numerous
regulatory rulemakings, policy guidance and funding through the annual appropriations
process. In that connection, APTA has created a SAFETEA-LU Resource Center on
its web site. It includes an APTA Guide to SAFETEA-LU, the text of the legislation,
the conference report which includes the manager's statement explaining changes
in the law, a compilation of SAFETEA-LU changes to federal transportation law,
links to FTA estimates of formula allocations by year and UZA, and a number
of other resources. To view the Resource Center, visit the Government Affairs
section of the APTA web site at http://www.apta.com/government_affairs/safetea_lu/.
APTA will be conducting a number of other activities related to SAEFETEA-LU
implementation. The first of several webinars on the law was held September
14 with participation by Federal Transit Administration and key congressional
staff. The APTA Annual Meeting will have a forum on the new law, with more activities
at future conferences. Stay tuned for upcoming activities!
For additional information on any of the provisions of the bill contact Dan
Duff or Rob Healy of APTA's Government Affairs Department at (202) 496-4860
or email dduff@apta.com; or (202) 496-4811 or email rhealy@apta.com, respectively.
Action on FY 2006 Transportation Appropriations Bill
The House passed its version of the Fiscal Year (FY) 2006 Transportation,
Treasury, the Judiciary and Housing and Urban Development appropriations bill
(H.R. 3058) on June 30. The Senate Appropriations Committee reported its version
of the bill (S. Report 109-109) on July 26. The House bill provides $8.482 billion
for the federal transit program in FY 2006, while the Senate bill approved by
the Appropriations Committee provides $8.208 billion for transit. Neither bill
now sets transit funding at the $8.622 billion level authorized and guaranteed
under SAFETEA-LU.
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ACTION CALL! Contact your Senators and ask them to contact the leadership of the Senate
Appropriations Committee with the following message. Explain that because
the FY 2006 Transportation Appropriations bill was developed before SAFETEA-LU
was completed, it does not fund new transit programs authorized under
SAFETEA-LU, make important policy changes required by the new law, or
provide the same overall level of funding authorized and guaranteed under
SAFETEA-LU. Ask them to urge Appropriations leaders to reconcile the FY
2006 Transportation Appropriations bill with SAFETEA-LU and to fully fund
the bill when it moves to the Senate floor. |
While the Senate could consider its version of the bill later next week, Senate consideration of the bill may also be delayed until after the vote on the Supreme Court Chief Justice nominee. In either case, it is unlikely that the measure will clear the Senate and get through a House/Senate conference committee before the start of the new fiscal year on October 1. Thus, it is likely that transportation programs, including transit, as well as programs funded under this appropriations bill will be funded under a continuing resolution for some period. Additionally, Congress has approved two FY 2005 Supplemental Appropriations bills providing emergency appropriations in response to damage caused by Hurricane Katrina, and it is expected that at least one more supplemental appropriations bill will be considered due to the hurricane.
APTA has sent a letter to members of the Senate Appropriations Committee, urging them to fund transit programs at the level authorized by SAFETEA-LU when the bill moves to the Senate floor. To view the letter, visit http://www.apta.com/government_affairs/letters/050920bond.cfm. The following table compares FY 2006 authorized transit funding to the FY 2006 Transportation Appropriations bills moving through the House and Senate:
Comparison of FY 2006 Authorized Transit Funding Levels to FY 2006 Appropriations Bills
| Program | FY 2006 SAFETEA-LU Authorization
(Millions of Dollars) |
FY 2006
House Passed Appropriation
(Millions of Dollars) | FY 2006 Senate Committee Passed Appropriation
(Millions of Dollars) |
Total All Programs |
8,622.93 |
8,482.00 |
8,208.64 |
Formula Total |
4,533.68 |
4,417.00 |
4,354.19 |
UZA Formula |
3,466.68 |
3,973.25 |
3,713.39 |
Growing and
High Density States |
388.00 |
--- |
--- |
Rural Formula |
388.00 |
277.43 |
449.61 |
Elderly and
Disabled |
112.00 |
104.52 |
178.29 |
New Freedom |
78.00 |
--- |
--- |
Clean Fuels |
43.00 |
50.00 |
0.00 |
Alaska Railroad |
--- |
4.85 |
5.47 |
Rural Transportation
Accessibility |
7.50 |
6.95 |
7.43 |
Alternative
Transportation in Parks |
22.00 |
--- |
--- |
Reports and
Audits |
3.50 |
--- |
--- |
Alternatives
Analysis |
25.00 |
--- |
--- |
Capital Investment |
3,716.25 |
3,641.68 |
3,490.97 |
New Starts |
1,503.00 |
1,561.67 |
1,386.52 |
Fixed-Guideway
Modernization |
1,391.00 |
1,386.67 |
1,307.47 |
Bus and Bus
Facilities |
822.25 |
693.34 |
796.98 |
Planning and Research |
153.00 |
160.33 |
156.28 |
Job Access and Reverse
Commute |
138.00 |
175.00 |
121.83 |
University Centers |
In Planning |
8.00 |
5.82 |
| FTA Operations
|
82.00 |
80.00 |
79.54 |
For more information on the FY 2006 appropriations bill, please contact Rob Healy of APTA's Government Affairs Department at (202) 496-4811 or email rhealy@apta.com.
Homeland Security Issues
FY 2006 Homeland Security Appropriations
The FY 2006 Appropriations bill for the Department of Homeland Security, including transit security funding, faces a predicament similar to the Transportation Appropriations bill. The FY 2006 Homeland Security Appropriations bill (H.R. 2360) has been approved by both the House and Senate, but House conferees have not yet been appointed and a conference committee to reconcile differences between the two bills has not yet begun. The House-passed bill provides $150 million for transit, passenger and freight rail security funding. The Senate-passed bill provides $100 million for the same program. In FY 2005, the program was funded at $150 million. When the bill was considered in the Senate, an amendment was offered to increase funding for the program to $1.2 billion, but the motion to waive points of order against the bill for violating the budget act received only 53 of the 60 votes needed to waive the budget act and approve the increase.
House Security Committee Gets New Chair
The House Republican Steering Committee on September 14 selected Representative Peter King (R-NY) as chairman of the House Committee on Homeland Security, the post left vacant by former-Rep. Chris Cox (R-CA) who resigned to become chairman of the Securities and Exchange Commission.
APTA President Testifies on Transit Security
APTA President William Millar on September 7 testified before the House Homeland Security Committee's Subcommittee on Economic Security, Infrastructure Protection and Cybersecurity. Mr. Millar discussed the transit industry's work to improve security following the terrorist attacks in New York, Madrid and London, and he highlighted the failure of the federal government to adequately invest in the security of public transportation systems. To read Mr. Millar's testimony, visit the Government Affairs section of the APTA web site at www.apta.com.
For more information on transit security issues, please contact Tom Yedinak of APTA's Government Affairs Department at (202) 496-4865 or email tyedinak@apta.com.
Energy Bill Enacted
The Energy Policy Act of 2005 (PL 109-58), signed into law by the President on August 8, 2005, includes some important new programs beneficial to public transportation.
Alternative Motor Vehicle Credit (§ 1341)
The new law creates an incentive program that amends the Tax Code to allow tax credits for "alternative motor vehicle[s]." The program targets fuel cell vehicles ($40,000 for anything with a GVR over 26,000 pounds), advanced lean burn technology vehicles (limited to passenger vehicles), hybrid vehicles (up to $12,000 per vehicle), and alternate fuel (including LNG and CNG) vehicles (up to $32,000 per vehicle). Mixed fuel vehicles get partial credit. The credits will phase out as production tops 60,000 vehicles per manufacturer. The most interesting part of this provision is that for vehicles purchased and used by transit agencies or other government entities (not under a lease), the seller of the vehicle can take the credit if the seller "clearly discloses to [the agency] in a document the amount of any credit allowable." The credits are good through 2014 (for fuel cell vehicles), 2009 (for hybrids), and 2010 (for alternate fuel vehicles), and apply to vehicles delivered after December 31, 2005.
Fuel Cell Transit Bus Demonstration (§ 731)
The law establishes a fuel cell transit bus demonstration that will allow competitive, merit based awards for five-year projects to demonstrate fuel cell buses in five locations. The total number of buses in the program is limited to 25, but infrastructure costs at the demonstration locations will be included. The Secretary of Energy is directed to favor locations "most likely to mitigate congestion and improve air quality." The authorized amount for the program is $10M per year through 2010.
Pilot Program (§ 721)
The law establishes a pilot program for up to 30 grants to states, local governments, or metropolitan transportation authorities to buy alternative fuel, fuel cell, hybrid, or ultra low sulfur diesel vehicles, infrastructure to support alternate fuel, fuel cell, or hybrids, and to maintain the vehicles and infrastructure. This program is diverse, and includes school buses, delivery vehicles, and airport ground support vehicles. The vehicles can be anything from buses to motorized bicycles for law enforcement. No grantee will be eligible for more than $15M under this pilot program, there is a 50 percent local share requirement, and no pilot project can be funded for more than five years. The Secretary of Energy is required to publish a request for applications within 90 days of enactment of the legislation. There is no fixed authorization amount or time limit for the overall program.
Each of these programs will require implementing guidance and information from the Department of Energy and the Treasury Department in the case of the tax credits. For more information, please contact Assistant Chief Counsel Jim LaRusch of APTA's Government Affairs Department at (202) 496-4808 or email jlarusch@apta.com.
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