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August 20, 2008
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APTA > Government Affairs > Washington Reports & Alerts  

Legislative Alert

Senate Banking Committee Marks Up Transit Bill

February 4, 2004

(Download in Adobe PDF format)

The Senate Banking Committee today marked up the transit title of reauthorization legislation. Because Senate office buildings remain closed due to the discovery of the deadly toxic ricin in the Dirksen office building, the mark up was held in the Capitol and was closed to the public.

As expected, the bill reported by the Committee provides $56.5 billion over six years for the federal transit program up from the $36 billion guaranteed under the recently expired TEA 21 legislation. As we reported yesterday in a Legislative Update, on Monday the Senate Finance Committee marked up the revenue title of the bill; that title would provide $47 billion for transit from the Mass Transit Account of the Highway Trust Fund with the remaining amount - $9.5 billion - coming from the General Fund. The Senate Banking bill will now be added to the highway bill - S. 1072 - on the floor of the Senate. The Senate Banking Committee and Senate Environment and Public Works Committee will also be offering an amendment to add the guarantees and firewalls for both highways and transit during floor debate on the bill. Funding by year and program is shown on Table 1. This may take place as early as tomorrow.

Action Call!

Ask your Senators to support the highway/transit bill, S.1072, which is now being debated in the Senate. Urge them to support the Banking and Environment and Public Works Committees amendment that would guarantee and firewall the highway and transit funding levels.

And don't forget to register for APTA's Legislative Conference, March 7-9. It's just a month away!


While we have not seen the final bill as marked up, we include below a brief summary of the key provisions in the Senate Banking Committee bill on the basis of staff discussions and draft bill language. A more complete summary will be made available soon.

The Federal Public Transportation Act of 2004

Program Structure. The bill would generally retain the current federal transit program structure. The funding ratios for the discretionary capital program, currently 40% new starts, 40% rail modernization, and 20% bus, would be revised to approximately 40 %/37 %/23 %, respectively, after protracted negotiations. Approximately 7% of the urban formula program each year would be allocated via a new tier based on projected population growth/state population density, and a similar percentage of rural formula funds would be allocated under this formula.

Table 1: Senate Banking Committee Funding Levels for Transit by Program and Year

 

FY 2004 (Millions)

FY 2005 (Millions)

FY 2006 (Millions)

FY 2007 (Millions)

FY 2008 (Millions)

FY 2009 (Millions)

Six Years (Millions)

Total All Programs

7,265.9

8,650.0

9,085.1

9,600.0

10,490.0

11,430.0

56,521.0

Formula Total

3,766.6

4,562.4

4,793.2

5,066.1

5,538.1

6,036.6

29,763.1

S.5307 UZA [Excluding S.5336(a), S.5340]

3,425.6

3,543.1

3,724.4

3,938.7

4,309.4

4,701.0

23,642.3

S.5336(a) High Intensity Small UZA

---

35.0

35.0

35.0

35.0

35.0

175.0

S.5040 Growing States, High Density States

---

391.4

411.1

434.4

474.7

517.2

2,228.8

S.5311 Rural Area [Excluding S.5340]

239.2

391.4

411.1

434.4

474.7

517.2

2,468.0

S.5310 Elderly and Disabled

90.1

187.9

197.3

208.5

227.8

248.3

1,159.9

Alaska Railroad

4.8

5.8

6.1

6.4

7.0

7.6

37.6

S.3038 Over-the-Road Bus

6.9

7.8

8.2

8.7

9.5

10.3

51.5

S.5309 Capital Total

3,188.6

3,678.7

3,863.7

4,082.7

4,461.2

4,861.0

24,135.8

New Starts

1,316.0

1,461.1

1,534.6

1,621.5

1,771.9

1,930.6

9,635.6

Fixed-Guideway Modernization

1,199.4

1,377.8

1,447.1

1,529.1

1,670.8

1,820.6

9,044.7

Bus and Bus Facilities

673.2

839.8

882.1

932.1

1,018.5

1,109.7

5,455.4

Planning

72.6

109.6

115.1

121.6

132.9

144.8

696.6

Research [Including University Centers]

58.7

55.7

58.5

61.9

67.6

73.6

376.0

S.5316 Alternative Transportation in Parks

---

25.0

25.0

25.0

25.0

25.0

125.0

S.5335 Reports and Audits

---

3.7

3.9

4.2

4.6

5.0

21.4

Job Access and Reverse Commute

104.4

128.4

134.8

142.5

155.7

169.6

835.4

FTA Operations

75.1

86.5

90.9

96.0

104.9

114.3

567.6


Federal Share.
The federal share for transit capital remains eighty percent, and under the rural and elderly and disabled programs the sliding scale for higher federal match comparable to the FHWA federal lands approach applies to capital (both programs) and operating assistance (rural program). If new start projects stay within original ridership and cost estimates, projects could get a higher federal share.

New Starts. The bill would change the new starts reporting schedule and the contents of the report; it would describe only those projects the Administration is recommending for funding over the next three years. The projects would be constrained by the amount of funding anticipated to be available for new projects. Projects would be rated on five-point scale: high, medium-high, medium, medium-low, or low.

Only fixed guideway projects remain eligible for funding under the new starts program.

A new pilot program is authorized to demonstrate the advantages of public/private partnerships for new start projects.

DOT to report every year on consistency and accuracy of cost and ridership estimates. The GAO to conduct annual review of the procedures for evaluating and rating projects.

DOT to report on the suitability of allowing transit contractors to receive performance incentive awards if project is completed below original estimated cost.

Each time FTA makes significant changes to the new starts project review and evaluation and criteria, FTA shall publish policy guidance for comment before making final.

Small Starts. A project seeking less than $75 million may be funded within existing new starts program. Projects must be cost effective but FTA given discretion to develop project evaluation criteria. Non-fixed guideway bus rapid transit projects would be eligible under this program.

Planning. A new Metropolitan Capacity Building Program is included at $5 million a year.

The bill would eliminate TIP as a stand-alone document; the first five years of the transportation plan would serve function of TIP.

Alternatives analysis would not be eligible under section 5309, but $20 million annually would be set aside under the planning program for such costs.

Two new planning factors added: promote consistency between transportation improvements and state and local land use planning and economic development patterns, and enhance integration and connectivity of the transportation system, across and between modes for people and freight.

Small Transit Intensive Cities. Essentially the same as APTA's proposed transit intensive program.

Private Enterprise Participation. Under the joint development part of the statute, the intercity bus portion of an intermodal facility would be eligible for funding; $75 million annually under the bus/bus facilities program for intermodal facilities.

There is a new "subrecipient" concept whereby private entities that now contract with public bodies would become "subrecipients" with presumably greater rights under the law. A rulemaking would be required to carry this out.

MPO compliance with private sector requirements would be on basis of local procedures.

The bill reflects APTA/ABA charter bus language.

Procurement. Contract requirements reworded: "Recipients to conduct all procurement transactions in a manner that provides full and open competition as determined by the Secretary."

Pre-award and post-delivery audits. Not to apply to grantees serving UZA of less than 1 million population.

Operating Assistance Phase Out. Areas going over 200,000 in population under latest Census can use 50% of previous operating assistance in FY 05, 25% in FY 06.

13(c). Modifies labor protection severance pay current requirement of six years to four years; clarifies that change in contractors would not produce 13c obligations; and codifies 13c warranty for rural and introduces warranty for JARC program.

Elderly and Disabled program. Clarifies that funds can be used for medical access needs.

JARC program. Clarifies that change in JARC eligibility does not restrict the program to TANF recipients.

Data Collection - Rural Program. Adds data collection requirements for rural systems.

Study on Incentives in Urban Formula Program. DOT is to conduct a study on the feasibility and appropriateness of developing and implementing an incentive funding system.

Right of Way Acquisition. Transit authorities would be able to make advance ROW acquisitions, including railroad ROW, before NEPA finalized, but property cannot be developed until NEPA finalized.

New Freedom Program. Retitling and adding of New Freedom language to existing elderly and disabled program.

National Transit Institute. Maintains NTI at Rutgers University; adds intermodal planning to curriculum.

Bus Testing Facility. Provision would be repealed.

Bus Dealer Requirements. No State law requiring buses to be purchased through in-state dealers shall apply to vehicles purchased with a grant under the federal transit program.

Drug and Alcohol Testing. Permits Secretary to decide that transit agencies may be subject to only one DOT agency drug and alcohol testing program.

Transit in Parks Program. The bill would establish a new program to support development of transit in national parks.

Statutory Clean Up. Following the Administration's SAFETEA proposal, the bill would revise and clean up the statute in a number of places. These are generally non-substantive changes. Like the House bill, the bill would change "mass transportation" to "public transportation". The definition of "public transportation" has been revised to provide that it "…does not include school bus, charter bus, intercity passenger rail, or sightseeing transportation." (Italicized portion new.) A new term, "mobility management", is defined and is eligible for capital funding; it means a short-range planning or management activity that does not include operating public transit services and improves coordination; addresses customer needs; and manages transit demand. Generally adds "security" for grant eligibility and FTA oversight purposes.

For further information, please contact APTA's Rob Healy at (202) 496-4811 or email rhealy@apta.com.

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