House Passes FY 2008 Transportation Appropriations Conference Report
—$9.68 Billion for Transit—
Bill Remains On Hold in Senate Chamber
November 20, 2007
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House and Senate conferees approved the conference agreement on the fiscal year (FY) 2008 Transportation, Housing and Urban Development, and Related Agencies (THUD) Appropriations bill (H.R. 3074), on Thursday, November 8, 2007. The House then passed the Conference Report (H.Rept. 110-446) on November 14, 2007 by a vote of 270-147, eight votes short of a two-thirds majority needed to override an expected veto by President Bush. The President has threatened to veto the THUD legislation in its current form because its total spending level exceeds his budget request by more than $3 billion.
The Senate did not vote on the bill prior to adjourning for a two-week Thanksgiving recess. When Congress reconvenes on December 3, the Senate will either vote on the conference measure approved by the House and send it to the President as a "stand-alone" bill or House and Senate leaders could decide to combine the THUD bill with other unfinished appropriations bills in a year-end "omnibus" appropriations bill that funds all federal programs under appropriations bills not yet passed by Congress. Of the 12 annual appropriations bills, only two have been sent to the President. One of those bills, the Labor-HHS spending bill was vetoed and the House failed to override the presidential veto. The other measure, which appropriates funds for the Department of Defense, was signed into law. Federal programs under the remaining 11 unfinished FY 2008 appropriations bills are currently being funded under a continuing resolution (CR) which funds those programs at the FY 2007 level through December 14.
With Congress and the President unable to reach agreements on any of the remaining individual FY 2008 appropriations bills, including the transportation appropriations bill, Democratic leaders have indicated that Congress is likely to combine all of them into a single omnibus appropriations bill. Under that scenario, all agencies and departments, including the Department of Transportation (DOT), could be subject to an across-the-board funding cut as a part of the negotiations between Congress and the White House.
Details on FY 2008 Transit Program
The THUD conference agreement provides $9.68 billion for public transportation programs in FY 2008, a 7.8 percent increase over the level enacted in FY 2007. The amount appropriated in the bill is $53.2 million less than the amount authorized and guaranteed by the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) and provided in the House-passed version of the bill. The shortfall occurs because the legislation provides only $1.65 billion for the New Starts and Small Starts program, $50 million less than the authorized level, and $3.2 million below the authorized level for Federal Transit Administration (FTA) administrative costs.
Program |
FY 2007 Enacted |
FY 2008 Authorization |
FY 2008 House-Passed Conference |
FY 2008 House-Passed Conference Compared to FY 2007 Enacted |
(Millions) |
(Millions) |
(Millions) |
(Millions) |
(Percent) |
Total All Programs |
8,974.8 |
9,730.9 |
9,677.6 |
702.8 |
7.8% |
Formula Programs Total |
7,262.8 |
7,872.9 |
7,872.9 |
610.1 |
8.4% |
§ 5307 Urbanized Area |
3,947.1 |
4,280.3 |
4,280.3 |
333.2 |
8.4% |
§ 5311 Rural Area |
467.0 |
506.5 |
506.5 |
39.5 |
8.5% |
§ 5310 Elderly and Disabled |
117.0 |
127.0 |
127.0 |
10.0 |
8.5% |
§ 5317 New Freedom |
81.0 |
87.5 |
87.5 |
6.5 |
8.0% |
§ 5308 Clean Fuels Formula (a) |
45.0 |
49.0 |
73.0 |
28.0 |
62.2% |
§ 3038 Over-the Road Bus |
7.6 |
8.3 |
8.3 |
0.7 |
9.2% |
§ 5309 Fixed-Guideway Modernization |
1,448.0 |
1,570.0 |
1,570.0 |
122.0 |
8.4% |
§ 5309 Bus and Bus Facilities |
855.5 |
927.8 |
903.8 |
48.3 |
5.6% |
§ 5305 Planning |
99.0 |
107.0 |
107.0 |
8.0 |
8.1% |
§ 5316 Job Access and Reverse Commute |
144.0 |
156.0 |
156.0 |
12.0 |
8.3% |
§ 5320 Alternative Transportation in Parks |
23.0 |
25.0 |
25.0 |
2.0 |
8.7% |
§ 5335 National Transit Database |
3.5 |
3.5 |
3.5 |
0.0 |
0.0% |
§ 5339 Alternatives Analysis |
25.0 |
25.0 |
25.0 |
0.0 |
0.0% |
§ 5309 Capital Investment Programs Total |
1,566.0 |
1,700.0 |
1,650.0 |
84.0 |
5.4% |
Research and University Centers |
61.0 |
65.5 |
65.5 |
4.5 |
7.4% |
FTA Operations |
85.0 |
92.5 |
89.2 |
4.2 |
4.9% |
|
(a) Includes $24.0 million transferred from Bus and Bus Facilities to Clean Fuels Formula in FY 2008 Conference.
Two amendments approved as part of the Senate version of the THUD appropriations bill of particular interest to public transportation were included in the conference version as well. The first, an amendment, offered by Senate Banking Committee Chairman Christopher Dodd (D-CT) and THUD Appropriations Subcommittee Chairman Patty Murray (D-WA), prohibits the FTA from implementing a final rule for the New Starts and Small Starts program. During conference, the language was modified to allow the FTA to continue to review the comments received on the proposed rule, but not to issue a final rule.
The second amendment, offered by Senate Banking Committee Ranking Member Richard Shelby (R-AL) and THUD Appropriations Subcommittee Ranking Member Kit Bond (R-MO), limits the amount of Bus and Bus Facilities funds that the FTA can spend on its Urban Partnership Congestion Initiative (UPCI) to 10 percent of those bus funds not already earmarked by SAFETEA-LU and the THUD Conference Report. Within the Conference Report, $249 million (52.5 percent) of the nearly $475 million unallocated by SAFETEA-LU was earmarked. The remaining $225 million becomes discretionary funds to be distributed by the FTA. Despite the inclusion of this limitation in the legislation, however, there is concern that the funds could be reallocated to the congestion reduction program because the U.S. DOT changed the name of the initiative in an effort presumed to circumvent the Senate amendment. A more detailed explanation is provided below.
Bus and Bus Facilities; New Starts and Small Starts Earmarks
As previously mentioned, the THUD Conference Report earmarked only 52.5 percent of the Bus and Bus Facility funds which were not otherwise earmarked under SAFETEA-LU, thus leaving nearly $225 million to be distributed on a discretionary basis by the FTA. On November 13, the same day the FY 2008 THUD appropriations Conference Report was filed, FTA published a notice in the "Federal Register" soliciting applications for funding for a newly named "Congestion-Reduction Demonstration Initiative" program. In the request for proposals, the FTA stated that the new program would be funded with unallocated funds from the FTA's Bus and Bus Facilities program, Small Starts Program, Alternatives Analysis Program, and several FHWA programs. This program is essentially the same as last year's Urban Partnership Congestion Initiative (UPCI), but with a different name. APTA has opposed the use of Bus and Bus Facilities funds to finance the UPCI program and has urged Congress to ensure that the Administration does not circumvent the intention of the provision that limits the amount of Bus and Bus Facilities funds that can be used to fund the UPCI program under the newly named initiative. APTA currently is working with appropriations leaders from both political parties to modify the prohibition so that it ensures that Bus and Bus Facilities funds and Small Starts and New Starts funds are used to meet needs under those programs and not other new programs. While the various congestion reduction programs may have worthwhile objectives, they should not be funded at the expense of FTA programs that are already authorized and designed to address important existing investment needs.
Further, nearly $88 million of the $1.65 billion (5.3 percent) allocated for the New Starts and Small Starts Program was not earmarked. This money may also be used by the FTA to fund congestion reduction initiatives. APTA is working with Congress to extend the limitation on spending for congestion initiatives to unallocated funds from the New Starts and Small Starts Program as well.
Other Provisions
Under the Federal Railroad Administration (FRA) budget, $75 million is provided for grants for intercity passenger rail infrastructure improvements. The FRA is to use the funds to leverage a 50-50 shared cost agreement with states for capital projects to improve existing intercity passenger rail or provide new service. Priority will be placed on projects that improve the safety and reliability of intercity service, involve a commitment by the freight railroads to improve on-time performance, improve or extend service on a route that requires minimal federal operating assistance, and involve a financial commitment by states to improve highway or rail grade crossings.
Another provision in the THUD appropriations bill allows for a 90 percent federal share for biodiesel buses and for the net capital cost of factory-installed or retrofitted hybrid electric buses. Transit systems are required to finance only 10 percent of these costs as an incentive to reduce energy comsumption and air pollution.
For more information on the FY 2008 THUD Appropriations bill, please contact Paul Dean of APTA's Government Affairs Department at (202) 496-4887 or email pdean@apta.com.
Action Call!
The House and Senate will continue work on the final FY 2008 Transportation, Housing and Urban Development, and Related Agencies Appropriations bill (H.R. 3074) bill in the coming weeks. Please contact your Senators, Representatives, and their staff members with the following messages:
Ask Senators and Representatives to pass a THUD appropriations bill that provides no less funding than approved in the Conference Report (H.Rept. 110-446).
Request support for language limiting the level of Bus and Bus Facilities and New Starts and Small Starts money that the FTA can use for its Congestion-Reduction Demonstration Initiative. Urge them to support language preventing the implementation of a final rule on the New Starts and Small Starts program. |
Climate Change Bill Advances in the Senate Committee; Negotiations on Energy Bill Resume
On November 1, a subcommittee of the Senate Environment and Public Works Committee (EPW) held a markup for the first major piece of climate change legislation to be introduced this year, the America's Climate Security Act of 2007 (S. 2191), sponsored by Sen. Joseph Lieberman (I-CT) and Sen. John Warner (R-VA). The bill would introduce an economy-wide cap and trade system to reduce the emission of carbon dioxide and other greenhouse gases. EPW plans to hold a full committee markup for the bill on December 5. APTA staff have met with Senate staff and key stakeholders in the environmental community to educate them about how public transportation is a net saver of carbon dioxide emissions. The current version of the Lieberman-Warner bill would make transit agencies eligible to receive funding from state revenues derived from the sale of carbon allowances, but future versions of the bill could designate specific funding for public transportation and other investments in transportation that reduce greenhouse gas emissions. In the House, two committees are developing climate change legislation, the Energy and Commerce Committee and the Select Committee on Energy Independence and Global Warming. Both Committees are expected to introduce bills next year.
Energy legislation that utilizes transit to promote energy conservation is also advancing in Congress. Pre-conference negotiations to reconcile the House and Senate-passed energy bills resumed this past week. Both versions include provisions that would promote public transit use as a means to reduce energy consumption and decrease the nation's dependence on imported oil. APTA staff is working closely with Congress to retain those provisions in the final legislation. A reconciled bill could be considered by Congress as early as December.
For more information on Climate Change or Energy legislation, contact Homer Carlisle of APTA's Government Affairs Department at 202-496-4810 or hcarlisle@apta.com.
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