Click here to skip navigation American Public Transportation Association Visit the APTA Bookstore
My APTA
What's New
About APTA
For Members
Committees
Conferences & Calendar
Services & Programs
Government Affairs
Industry Information
APTA Standards Program
Media Center
e-Business
Passenger Transport
Book Store
Links
Contact Us
Site Map
Home
Rail and Bus LinksThe Rail Station
September 05, 2008
APTA    Search: Click here to search
APTA > Government Affairs > Washington Reports & Alerts  

Washington Report

TEA 21 Reauthorization Bill Passed And Sent To President!

Congress Also Passes 12th Short-term Extension of TEA 21

August 3, 2005

(Download in Adobe PDF format)

SAFETEA-LU Authorization Bill Guarantees $52.6 Billion for Transit!

On Friday, July 29, the conference agreement on the Safe, Accountable, Flexible, and Efficient Transportation Equity Act - A Legacy for Users (H.R. 3) (SAFETEA-LU) was overwhelmingly approved by the House (412-8) and Senate (91-4). Separately that same day, Congress passed a 12th short-term TEA 21 extension through August 15 which the President signed into law July 30. That extension does not provide new funding authority but keeps transit and highway programs running until the President signs the new long-term bill into law. A Presidential bill-signing ceremony is expected to be held August 10.

The bill provides $286.4 billion in guaranteed funding for federal surface transportation programs over six years through FY 2009, including $52.6 billion for federal transit programs - a 46% increase over transit funding guaranteed in TEA 21. For the transit program the bill provides $8.6 billion in FY 2006; $9.0 billion in FY 2007; $9.7 billion in FY 2008; and $10.3 billion in FY 2009.

Summary of SAFETEA-LU Transit Provisions and Funding

The chart below shows the bill's funding levels. Also below is a summary of the transit title of the bill, title III - the Federal Public Transportation Act of 2005 - and its accompanying Conference Report (H. Rept. 109-203). The bill and Conference Report are available for review at www.house.gov/rules. While this summary reflects a six-year transit authorization program, the bill technically authorizes funding for FY 2005 through FY 2009. FY 2004 funding was authorized under the Surface Transportation Extension Act of 2004, Part IV (PL 108-290).

APTA will be developing more materials and information on SAFETEA-LU, and will be scheduling a webinar to review its details soon.

New Programs

The following new transit programs are created under the bill:

Growing States and High Density States Program (§ 3009) distributes funds to the urbanized area formula and rural formula programs under new factors. Half of the funds are made available under a formula based on population forecasts for 15 years beyond the most recent Census; amounts apportioned for each state are then distributed between urbanized areas and rural areas based on the ratio of urban/rural population within each state. The High Density States program distributes the other half of the funds to states with population densities in excess of 370 persons per square mile. These funds are apportioned only to urbanized areas within those states.

                              SAFETEA-LU Funding Levels

Program FY 2004
(Millions)
FY 2005
(Millions)
FY 2006
(Millions)
FY 2007
(Millions)
FY 2008
(Millions)
FY 2009
(Millions)
Six-Year Total
(Millions)
Total All Programs7,309.0 7,646.3 8,622.9 8,974.8 9,730.9 10,338.1 52,622.0
Formula Programs Total3,964.0 4,123.9 4,671.7 4,860.3 5,268.1 5,596.6 28,484.6
5307 Urbanized Area3,445.9 3,593.2 3,466.7 3,606.2 3,910.8 4,160.4 22,183.2
5340 Growing/High Density States------388.0 404.0 438.0 465.0 1,695.0
5311 Rural Area240.6 250.9 388.0 404.0 438.0 465.0 2,186.5
5310 Elderly and Disabled90.7 94.5 112.0 117.0 127.0 133.5 674.7
5317 New Freedom------78.0 81.0 87.5 92.5 339.0
5338(a)(2)(C) Alaska Railroad4.8 4.8 ------------10
5308 Clean Fuels Formula50.0 49.6 43.0 45.0 49.0 51.5 288.1
3038 Over-the Road Bus7.0 6.9 7.5 7.6 8.3 8.8 46.0
5316 Job Access/Reverse Commute125.0 124.0 138.0 144.0 156.0 164.5 851.5
5320 Alternative Transp. in Parks------22.0 23.0 25.0 26.9 96.9
5335 Reports and Audits------3.5 3.5 3.5 3.5 14.0
5339 Alternatives Analysis------25.0 25.0 25.0 25.0 100.0
5309 Capital Investment Total3,137.5 3,312.1 3,716.3 3,869.5 4,197.8 4,459.8 22,692.9
Fixed-Guideway Modernization1,206.5 1,204.7 1,391.0 1,448.0 1,570.0 1,666.5 8,486.7
New Starts Total1,323.8 1,437.8 1,503.0 1,566.0 1,700.0 1,809.3 9,339.9
New Starts Less Than $75 Million

---

---

---

200.0

200.0

200.0

600.0

New Starts $75 Million or More

---

---

---

1,366.0

1,500.0

1,609.3

4,475.3

Bus and Bus Facilities607.2 669.6 822.3 855.5 927.8 984.0 4,866.3
Planning Total73.0 72.4 95.0 99.0 107.0 113.5 559.9
5303 Metropolitan Planning60.4 59.9 78.6 81.9 88.5 93.9 463.2
5313 State Planning12.6 12.5 16.4 17.1 18.5 19.6 96.8
Research Total59.0 60.6 58.0 61.0 65.5 69.8 373.8
5311(b)(2) RTAP5.3 5.2

---

---

---

---

10.5
5313(a) TCRP8.3 8.2 9.0 9.3 9.6 10.0 54.3
5315 National Transit Inst.4.0 4.0 4.3 4.3 4.3 4.3 25.2
5314 National Research35.5 37.2 37.7 40.4 44.6 48.5 243.9
5506 University Centers6.0 6.0 7.0 7.0 7.0 7.0 40.0
FTA Operations75.5 77.4 82.0 85.0 92.5 98.5 510.9


Small Starts Program (§ 3011)
is funded by take down from the capital investment program. It would provide funding for smaller projects with a federal New Starts share below $75 million, including streetcar, trolley, bus rapid transit (if a substantial portion of the project operates in a separate right of way in a defined corridor dedicated for public transit use during peak hours or it has other characteristics of a fixed guideway system), and commuter rail projects. Small Starts projects could not total more than $250 million. Simplified procedures and criteria apply to the program.

Alternatives Analysis Program (§ 3037) provides $25 million each fiscal year from FY 2006 through FY 2009 for alternatives analysis for New Starts projects. Earmarked projects are specified for FY 2006 and FY 2007.

New Freedom Program (§ 3019) would provide formula funding for new transportation services and public transportation alternatives beyond those required by ADA to assist persons with disabilities. The New Freedom Program 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 funds would be made available to transit systems and the states. The program contains language mandating coordination of transportation services with other federal human service programs. The labor protection provisions at § 5333 (formerly known as section 13(c)) do not apply to this new program.

Alternative Transportation in Parks and Public Lands Program (§ 3021) designed to develop public transportation in National Parks, with the goal of improving mobility and reducing congestion and pollution. The Departments of Transportation and Interior will work cooperatively to develop and select capital projects. The labor protection provisions at § 5333 (formerly known as section 13(c)) do not apply to this new program.

Other Programs & Provisions

Metropolitan Transportation Planning (§ 3005)

The bill maintains a strong metropolitan planning program with increased funding. The bill consolidates all provisions for metropolitan planning under section 5303 of title 49. It maintains the requirement for separate transportation plans and transportation improvement programs (TIP) and requires certification and updating of the metropolitan plan and TIP every four years. The current law provisions regarding the scope of the planning process are amended to provide more detail on how protection of the environment is to be considered and adds a reference to planned growth patterns. A new public participation plan is established to afford parties who participate in the metropolitan planning process a specific opportunity to comment on the plan and TIP before its approval. A new provision is added that requires the Secretary to issue rules regarding the publication of the projects in the transportation improvement program for which funds have actually been obligated.

Urbanized Area Formula Program (§ 3009)

Consistent with APTA's recommendation, the bill establishes a new tier for transit intensive urbanized areas with less than 200,000 in population that will grow from $35 million in FY 2006 to $42 million in FY 2009 funded through a set aside from the formula program. Transit agencies in urban areas reclassified as being larger than 200,000 in population under the 2000 Census may continue to use formula funds for operating expenses in FY 2006 at 50% of their current limits, and 25% in FY 2007. The transit enhancement program will be administered by certification, and a grantee must submit an annual report of such projects to the FTA.

New Starts Program (§ 3011)

The bill does not change the New Starts federal share of 80%. The bill includes a number of earmarks (see § 3043). As noted previously, a new Small Starts Program is created for smaller projects with a federal share of less than $75 million. The current three-level rating system for New Starts is replaced by a five-level system - High, Medium High, Medium, Medium-Low, Low. Economic development/land use is explicitly added to the project justification criteria. A grantee will be allowed to keep a portion of the cost savings when projects are completed under budget. A higher than requested federal share can be provided for projects which keep cost and ridership estimates within ten percent of the forecasts used as basis for establishing locally preferred alternative. FTA is to implement New Start Program changes by a rulemaking. There is a pilot program to demonstrate the benefits of public private partnerships. The FTA annually is to issue a contractor performance assessment report to analyze the consistency and accuracy of cost and ridership estimates made by contractors developing major capital investments. The FTA may take into consideration extenuating factors outside the control of a contractor in making its evaluations.

Fixed Guideway Modernization (§ 3011)

The bill does not change the Fixed Guideway Modernization program or distribution formula.

Discretionary Bus (§ 3011)

The bill makes few changes in the program, but provides significant increases in funding. Some 600 earmarks are included in this section with approximately $10 million for ferryboats and related facilities; these earmarks cover about half of the discretionary bus program resource in each fiscal year through FY 2009. The bus earmarks may be viewed at www.house.gov/rules. A new intermodal facilities progam is established with a $35 million annual set aside from the discretionary bus program. The intercity portion of intermodal terminals is eligible for funding under this program if the facility serves as a connector to public transportation.

Rural Program (§ 3013)

The bill significantly increases funding for the rural program of the transit formula program. A new formula tier based on land area is established to address the needs of low-density states; 20% of section 5311 funds are distributed through this tier. Indian tribes are added as eligible recipients, and a portion of funding is set aside each year for Indian tribes - $8 million in FY 2006 and rising to $15 million by FY 2009. Rural transit systems receiving formula funds will be required to report data to the National Transit Database; report language states that the reporting requirements should be tailored to the smaller size of most rural agencies. The sliding scale federal match available under the federal highway program for states with a high percentage of federal lands is now available as well under the section 5311 program. The bill codifies current practice by requiring the Secretary of Labor to use a special warranty for § 5333 requirements (formerly known as section 13(c)). The rural transportation assistance program is funded with a 2% set aside of the rural formula program rather than from the Research program as under current law. Up to 15% of such funds can be used by FTA to carry out national projects.

Formula Grants for Special Needs of Elderly Individuals and Individuals with Disabilities (§ 3012)

The conference agreement maintains the current program for special needs of elderly individuals and individuals with disabilities. Because of strong interest in extending the authority to use section 5310 grant funds for operating assistance, a new seven-state pilot program is established for fiscal years 2006 through 2009 to determine whether this expanded authority improves services to elderly individuals and individuals with disabilities.

Job Access and Reverse Commute (JARC) Formula Grants (§ 3018)

The JARC program is changed to become a formula program rather than the existing competitive discretionary grants program. The formula is based on ratios involving the number of eligible low-income and welfare recipients in each urbanized area, with 60% of funds going to urban areas with more than 200,000 population, 20% for urban areas with less than 200,000 population, and 20% to rural areas. The bill contains report language expecting the FTA to continue its practice of providing maximum flexibility to job access projects designed to meet the needs of individuals who are not effectively served by public transportation. The bill requires coordination between private, non-profit, and public transportation providers and other federal programs in the JARC program, the New Freedom Program, and the Elderly and Disabled program.

Clean Fuels Grant Program (§ 3010)

The bill reauthorizes the Clean Fuels grant program with some modifications. Grants would be provided for the purchase clean fuels buses, including clean diesel vehicles (up to 25% of grants annually), in certain non-attainment areas and areas trying to maintain compliance with clean air standards. Grants would be made by the Secretary.


Research Programs (§ 3014)

The research programs are generally unchanged. The Transit Cooperative Research Program would grow from its current fixed amount of $8.2 million a year to $10 million in FY 2009. A number of studies and entities are funded: a National Academy of Sciences study of 38 transit systems ability to accommodate evacuation in times of emergency; Center for Transit Oriented Development at $1 million a year; transportation equity research program to assess transportation impacts on transit dependent at $1million a year; transit career ladder training program at $1 million a year; pilot program for remote infrared audible signs $500,000 per year; hydrogen fuel cell shuttle deployment demonstration project at $800,000 each year for two years; human services transportation coordination at $1.6 million per year; Portland streetcar prototype deployment at $1 million per year; public transportation participation pilot program at $1 million a year; transportation infrastructure and logistics research at $500,000 a year for University of Alabama at Huntsville; National Bus Rapid Transit Institute at $1.75 million a year for University of South Florida; ITS application at $400,000 for Northern Kentucky University; ITS pilot project at $465,000 for Ohio State; regional public safety training center at $500,000 a year for Lehigh-Carbon Community College; transit security training facility at $750,000 for Chester Community College; Small Urban and Rural Transit Center $800,000 per year at North Dakota State University; advanced technology BRT at $500,000 per year for Connecticut project; New Haven fuel cell-powered bus research at approximately $500,000 a year; Center for Advanced Transportation Initiatives at approximately $500,000 a year at Rutgers; New Jersey Institute of Technology TELUS program at approximately $500,000 a year; Southern California regional transit training consortium pilot program at $540,000 a year.

Transit Commute Benefit (§ 3049)

The bill does not increase the transit commute benefit. The bill does provide that all qualified federal employees in the National Capital Region will receive the tax-free transit benefit to cover their commuting costs up to the maximum allowed by law. In addition, a federal agency may provide shuttle service to a transit facility, a previously restricted activity.

Buy America (§ 3023 (i))

The bill includes language requiring FTA to conduct a rulemaking on the Buy America program to clarify that the microprocessor waiver is limited to computers and similar devices; define end product to ensure that major systems procurements are not used to circumvent Buy America, and that such definition include a list of representative items subject to the Buy America requirements; provide for non-availability waivers after contract award; and clarify that it is the certification submitted with a final offer that applies to a negotiated procurement. The issues outlined for the rulemaking are consistent with the principles developed by APTA's Buy America Task Force.

Charter Bus (§ 3023 (d))

The bill permits the partial withholding of federal funds by the FTA in the case of a continuing pattern of violations of the charter or school bus law and regulations. Report language accompanying the bill calls for a negotiated rulemaking by the FTA to consider ways to improve the charter bus complaint and appeals process; improve the administration and enforcement of the charter bus regulation, including use of the internet to help communications; and to consider whether there are potential limited conditions under which public transit agencies can provide community-based charter services directly to local governments and private non-profit agencies that would not otherwise be served in a cost-effective manner by private operators. Under a negotiated rulemaking, a balanced group of public and private providers would meet with a representative of the FTA as part of a federally chartered advisory committee to negotiate the text of a proposed rule. Meetings are announced in the Federal Register and are open to the general public. If the group cannot agree on the text of a proposed rule, FTA would draft it.

Changes to § 5333 Labor Protection Provisions (§ 3031)

The bill does not apply "13(c)" labor protection provisions to two new programs created under the bill, the New Freedom and Alternative Transportation in Parks and Public Lands Programs. The bill codifies the Department of Labor Las Vegas decision relating to contractor-to-contractor issues in cases involving buses. Further, the administrative special warranty for section 5311 programs is now codified in law. Finally, grants for purchase of like-kind equipment do not have to be referred by DOL prior to certification.

Bus Dealer Requirements (§ 3025 (i))

The bill provides that 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.

 

The bill extends the current exemption from axle-weight limitations for transit buses and over-the-road buses through FY 2009.

General Provisions

  • Certain bond proceeds may be used as local matching funds. Section 5307 funds may be deposited in a debt service reserve under a pilot program for ten eligible recipients.

  • Security and emergency preparedness projects, including training and drill expenses, are eligible for capital funding.

  • A transit system may allow the incidental use of federally funded alternative fueling facilities and equipment by nontransit public entities and private entities so long as funds earned are used for transit purposes.

  • The bill would increase the take down for project management oversight as follows: 0.5% of 5305 funds; 0.75% of 5307 funds; 1% of 5309 funds; 0.5% of 5310 funds; 0.5% of 5311 funds; 0.5% of 5320 funds - and add "safety and security management" to project management and oversight review requirements.

  • The bill provides flexibility to permit transit systems complying with more than one DOT drug and alcohol testing to simplify the varying requirements.

  • The bill would change all references in transit law from "transit" to "public transportation."

Federal Highway Programs

The federal highway program essentially continues existing programs affecting transit. The highway portion of the bill includes new opportunities to use tolling programs to reduce traffic, increase capacity of the overall transportation system and help fund improved transit services. In addition, eligibility is broadened under the Congestion Mitigation Air Quality largely to support diesel retrofit programs, electronic plug-ins for trucks, and traffic flow/operational improvements with clean air benefits.

For Further Information

For further information on the funding chart, contact APTA's John Neff at jneff@apta.com or (202) 496.4812, and for information on any of the provisions of the bill contact Dan Duff at dduff@apta.com or (202) 496.4860, or Rob Healy at rhealy@apta.com or (202) 496.4811.

Some of these pages may include links to documents in the Adobe PDF format. Please download the Adobe PDF reader if you have not already done so.