House Committee Approves Amended TEA LU Bill
March 29, 2004
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On March 24, the House Transportation and Infrastructure
(T&I) Committee marked up an amended version of its TEA 21 reauthorization
bill, The Transportation Equity Act: A Legacy For Users (TEA LU) (H.R. 3550).
The bill would authorize $275 billion in funding for transit and highway programs
through FY 2009, including $51.5 billion for public transportation. In contrast,
the Senate's SAFETEA bill (S. 1072), passed February 12, authorizes $318 billion
for surface transportation programs, including $56.5 billion for transit.
The bill is expected to go to the House floor next week.
Summary of TEA LU Funding Levels and Transit Provisions
|
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
|
7,750.0
|
8,266.0
|
8,816.0
|
9,403.0
|
10,029.0
|
51,530.0
|
|
Formula Total
|
3,915.4
|
4,181.1
|
4,464.3
|
4,766.4
|
5,089.2
|
5,433.7
|
27,850.1
|
|
S. 5307 UZA
|
3,277.9
|
3,426.1
|
3,622.2
|
3,864.9
|
4,140.3
|
4,438.8
|
22,770.2
|
|
S. 5311 Rural Area
|
293.0
|
306.2
|
323.8
|
345.5
|
370.1
|
396.8
|
2,035.3
|
|
S. 5310 Elderly and Disabled
|
91.6
|
95.7
|
101.2
|
108.0
|
115.7
|
124.0
|
636.0
|
|
Job Access and Reverse Commute
|
125.0
|
150.0
|
175.0
|
200.0
|
200.0
|
200.0
|
1,050.0
|
|
New Freedom Program
|
50.0
|
95.0
|
100.0
|
105.0
|
115.0
|
125.0
|
590.0
|
|
Clean Fuels Formula
|
50.0
|
75.0
|
100.0
|
100.0
|
100.0
|
100.0
|
525.0
|
|
Transit in the Parks Pilot
|
8.0
|
8.0
|
16.0
|
16.0
|
16.0
|
16.0
|
80.0
|
|
Nonmotorized Pilot
|
4.0
|
4.0
|
4.0
|
4.0
|
8.0
|
8.0
|
32.0
|
|
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
|
|
S. 3038 Over-the Road Bus
|
8.0
|
8.0
|
8.0
|
8.0
|
8.0
|
8.0
|
48.0
|
|
S. 5309 Capital Investment
|
3,124.4
|
3,332.5
|
3,554.4
|
3,790.9
|
4,043.3
|
4,312.5
|
22,157.9
|
|
Small Starts
|
85.0
|
135.0
|
175.0
|
200.0
|
200.0
|
225.0
|
1,020.0
|
|
New Starts
|
1,215.8
|
1,279.0
|
1,351.8
|
1,436.4
|
1,537.3
|
1,635.0
|
8,455.2
|
|
Fixed-Guideway Modernization
|
1,215.8
|
1,279.0
|
1,351.8
|
1,436.4
|
1,537.3
|
1,635.0
|
8,455.2
|
|
Bus and Bus Facilities
|
607.9
|
639.5
|
675.9
|
718.2
|
768.7
|
817.5
|
4,227.6
|
|
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
|
|
Transit Cooperative Research
|
8.9
|
9.0
|
9.5
|
10.0
|
10.5
|
11.0
|
58.9
|
|
S. 5505 University Centers
|
8.0
|
8.0
|
8.0
|
8.0
|
8.0
|
8.0
|
48.0
|
|
FTA Operations
|
75.1
|
77.0
|
79.0
|
81.0
|
83.0
|
85.0
|
480.1
|
The bill has 193 New Starts earmarks, including 23 with FFGAs
that include specific dollar amounts, 41 that are authorized for final design,
and 139 that are authorized for preliminary engineering and alternatives analysis.
The funding levels and transit provisions of the bill are summarized below;
the bill language and earmarks are available for review in PDF format on the
House T&I Committee's website at http://www.house.gov/transportation/highway/hr3550.pdf.
Because of strong, bipartisan support in the T&I Committee for higher
transportation funding beyond the $275 billion amount, the bill includes a
"reopener" provision that would require Congress to amend the legislation
in the future, thereby providing another opportunity to increase funding levels.
Specifically, funding to all apportioned highway programs and congressionally
designated high priority projects would be terminated on September 30, 2005,
unless new legislation has been enacted assuring that every state reaches
a 95 percent minimum allocation of highway funding by FY 2009. To underline
this point, the T&I Committee also approved the original TEA LU bill (redesignated
H.R. 3994) with the six-year, $375 billion funding level, but that bill will
not be reported out of Committee.
New Programs
The bill would create new transit programs:
A new program for transit intensive urbanized areas under 200,000 in population
would grow from $35 million a year to $50 million a year. 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 people with
disabilities for activities beyond those required by ADA. It would grow
from $100 million in FY 2004 to $175 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 more than half
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 would double over the life of the bill from $150 million
to $300 million annually.
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 $10 million
annually in FY 2004 and 2005 and $20 million annually in subsequent years.
Other Provisions
The bill would retain the New Starts federal share of 80%.
The bill 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 JARC, the New Freedoms Initiative, and the Individuals
with Special Needs/Disabilities 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 2003 and
2004 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, which
allocates funds on a 50-50 basis between "old" and "new"
cities. APTA had recommended that new funds be distributed on a 60-40 basis
between "old" and "new" cities. The bill 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 extends the current
exemption from axle-weight limitations for transit buses through FY 2009,
but does not expand the current exemption to inter-city buses. The bill would
preserve the existing structure of the highway program and would not change
flexible funding provisions that permit highway funds to be used for transit
projects. Finally, the bill includes a charter bus provision that would authorize
the FTA to impose penalties when violations of the charter bus regulations
occur; staff indicate that this provision is included as a "placekeeper"
to assure that the House has jurisdiction to negotiate in conference with
the Senate on charter bus issues.
Outlook
The bill is scheduled to be considered on the House floor Wednesday, March
31. There will be limited time for the House to consider the measure before
its recess April 5 to April 16. Few amendments are expected to be permitted
during debate on the floor, and it is likely that the bill will be revised
by T&I Committee staff before it is considered on the House floor to accommodate
several members who would otherwise offer amendments. Rep. John Mica (R-FL)
has an amendment that would include "projects of national significance",
which are currently excluded, when determining the minimum allocation percentage
of highway funds allocated to the states. This may be a contentious issue
because Representatives from many states are demanding that the bill provide
a 95 percent rate of return in the highway program, which T&I Committee
Chairman Young has said is not possible with the $275 billion funding level.
Reports are that this is being worked out to avoid a floor fight in the House;
the "reopener" provision helps such efforts because it means more
funding could be added to the bill next year.
Any House-passed measure must then go to conference on the Senate SAFETEA
bill, which already provides the 95 percent rate of return to states by Fiscal
Year 2009. Added to this situation is the Administration's position that it
will consider a veto of any bill that authorizes more than $256 billion over
six years. The current short-term TEA 21 extension expires on April 30.
For more information, please contact Rob Healy at (202) 496-4811 or at rhealy@apta.com;
or visit the Government Affairs Section of the APTA website at www.apta.com.
FY 2005 Budget Update
On March 12, the Senate passed its version of the Fiscal Year 2005 budget
resolution, which provides a budgetary blueprint for the upcoming year. The
bill authorizes $814 billion in domestic discretionary spending, an increase
of only 3.3 percent over the FY 2004 level. Most of this increase is allocated
to defense and homeland security programs, with most other programs receiving
little or no increase or cuts in funding. Budget authority for function 400
programs, which include the federal transit and highway programs, the FAA,
and NASA, would be $70 billion in FY 2005, an increase of $800 million over
FY 2004.
On March 25, the House passed its FY 2005 budget resolution, which authorizes
$818.7 billion in domestic discretionary spending. As in the Senate's version,
the budget resolution would provide for increases in funding for defense and
homeland security and little or no increase, or cuts, in most domestic discretionary
programs. The final bill is not yet available for review, but in the version
approved by the House Budget Committee, budget authority for function 400
programs (transportation) would be $62 billion in FY 2005, a cut of $4.2 billion
from FY 2004.
Banking Committee Hearing on the FY 2005 Administration Budget; Appropriations
Testimony
On March 25, APTA President Bill Millar testified before the Senate Banking,
Housing, and Urban Affairs Committee on the Administration's FY 2005 budget
proposal for transit, calling the Administration's proposal to freeze transit
funding in FY 2005 "a disappointment" and stressing the need for
increased federal investment to provide jobs, improve the economy, and meet
the nationwide demand for new and enhanced transit service. That testimony
can be viewed on the Government Affairs section of the APTA website at www.apta.com.
On March 19, APTA submitted written testimony for the record on the FY 2005
transportation budget to the House Appropriations Subcommittee on Transportation,
Treasury, and Independent Agencies. The testimony describes the needs faced
by transit systems across the country and promotes the job creation and other
benefits to the economy that federal investment in transit provides. Similar
written testimony will be provided to the Senate Subcommittee in May. Copies
of all submitted testimony are available for review on the Government Affairs
section of the APTA website at www.apta.com.
For more information on the FY 2005 budget process, please contact Josh Fudge
at (202) 496-4810 or at jfudge@apta.com;
or visit the Government Affairs section of the APTA website at www.apta.com.
Legislation Affecting Transit Leasing Transactions Stalls
Provisions to end the use of sale-lease back transactions by tax-exempt entities
remain in the Jumpstart Our Business Strength Act (JOBS Act), S. 1637, as
debated by the full Senate this week. On Tuesday, the Senate approved an amendment
offered by Finance Committee Chairman Charles Grassley (R-IA) to make the
effective dates of the provisions retroactive to November 18, 2003. On March
24, the Senate did not reach cloture on the debate of this corporate tax package,
so it remains unclear when this measure will be considered again by the Senate.
In the House, Ways and Means Committee Chairman Thomas has drafted a measure
that closely resembles the Senate version, except for a provision that would
grandfather the fifteen tax-advantaged leasing proposals now pending before
the Federal Transit Administration. But the bill is being delayed for a variety
of reasons, so it is not clear whether the bill will be moved in the House
this year. A Treasury Department official was quoted as saying that this legislation
may not get done this year.
For more information on the leasing provisions included in these bills, please
contact Demaune Millard at (202) 496-4887 or at dmillard@apta.com;
or visit the Government Affairs section of the APTA website at www.apta.com.
APTA Meets with Administration Officials and Testifies before
Congress on Public Transportation Security
On March 23, APTA testified before the Senate Commerce,
Science and Transportation Committee on rail and public transportation security.
APTA testified that since 9/11 the transit industry has invested some $1.7
billion in enhanced security measures building on the industry's efforts already
in place. As a result of a 2004 survey, APTA identified public transportation
security needs of more than $6 billion in additional capital, operating, and
research and development costs. APTA presented the Committee with a list of
priorities that transit systems identified which require additional federal
investment for security needs. APTA pointed out that there is no line item
for transit security in the President's FY 2005 budget and requested that
the Administration amend its FY 2005 budget to include a specific line item
for transit systems, and that the funds be provided directly to transit systems
rather than through the states as is currently the situation. A copy of that
testimony may be viewed at the Government Affairs section of the APTA website
at www.apta.com.
On March 22, APTA First Vice Chair Dick White (WMATA) and
President Bill Millar and staff met with Department of Homeland Security (DHS)
Secretary Ridge to discuss public transportation security and met the next
day with DHS Under Secretary for Border and Transportation Security Asa Hutchinson.
APTA in these meetings stressed the same points as in its testimony: the significant
security needs in the transit industry; the need for a line-item in the President's
DHS budget for transit security; and the need for those funds to go directly
to transit systems rather than through the states.
For more information contact Tom Yedinak at (202) 496-4865
or at tyedinak@apta.com; or to view
the testimony visit the Government Affairs section of www.apta.com.
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