Congress Adjourns After Enacting $555 billion Omnibus Spending Bill
- $9.492 Billion Approved for Public Transportation
December 27, 2007
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End of the Year Legislative Update
Congress completed the first session of the 110th Congress after approving several important pieces of legislation that will have a significant impact on public transportation. Prior to adjourning for the year, Congress approved an omnibus appropriations bill that includes fiscal year (FY) 2008 funding for the federal transit program and transit security, enacted an energy package, and advanced climate change legislation. Rail safety legislation and SAFETEA-LU Corrections were among the proposed bills that did not gain final approval this year. APTA is pleased to report that industry advocacy efforts resulted in continued growth in transit funding and positioned public transportation as a key player in legislation to reduce emissions of greenhouse gases and dependence on foreign oil.
Appropriations
After operating under a series of continuing resolutions for the past two months, last week Congress passed a long-awaited omnibus appropriations bill. The President signed the bill into law on December 26. The legislation includes funding for public transportation programs in FY 2008, which began on October 1. The “Consolidated Appropriations Act, 2008” (H.R. 2764) is the result of a compromise reached earlier this month between Congress and the White House on overall spending limits for the year. The massive $555 billion legislation, which provides appropriations for domestic federal programs and funding for the war effort, includes $9.492 billion in new budget authority for public transportation — a $517 million increase over last year’s level. The funding provided this year is an all time high for transit, and while falling $240 million short of the levels authorized in SAFETEA-LU, represents a 5.8 percent increase from FY 2007.
The transit title of the omnibus bill closely resembles the conference report for the FY 2008 Transportation, Housing and Urban Development, and Related Agencies (THUD) Appropriations bill, approved by the Appropriations Committee and passed by the House last month, with some modifications. Most transit programs grew by more than 8 percent. The exceptions are the Bus and Bus Facilities and the New Starts/Small Starts programs. The Bus and Bus Facilities Program was cut and the New Starts/Small Starts Program received only a slight increase, as funding for both programs were reduced in final budget negotiations. The legislation preserves the earmarks for the New Starts/Small Starts, Alternatives Analysis, and Bus and Bus Facilities programs, subject to a 2 percent across-the-board cut. A more detailed description of the omnibus’ treatment of these programs is listed below.
The following chart represents the distribution of funds among the various transit programs for FY 2008.
Program |
FY 2007 Enacted |
FY 2008 Author-ization |
FY 2008 Enacted |
FY 2008 Enacted Compared to FY 2007 Enacted |
(Millions) |
(Millions) |
(Millions) |
(Millions) |
(Percent) |
Total New Budget Authority All Programs |
8,974.8 |
9,730.9 |
9,491.6 |
516.9 |
5.8% |
Formula Programs Total |
7,262.8 |
7,872.9 |
7,767.9 |
505.1 |
7.0% |
§ 5307 Urbanized Area (a) |
3,947.1 |
4,280.3 |
4,280.3 |
333.2 |
8.4% |
§ 5311 Rural Area (b) |
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 |
45.0 |
49.0 |
49.0 |
4.0 |
8.9% |
§ 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 |
823.1 |
-32.4 |
-3.8% |
§ 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 |
24.7 |
-0.3 |
-1.2% |
§ 5309 Capital Investment Programs Total |
1,566.0 |
1,700.0 |
1,569.1 |
3.1 |
0.2% |
Research and University Centers |
61.0 |
65.5 |
65.4 |
4.4 |
7.2% |
| FTA Operations |
85.0 |
92.5 |
89.3 |
4.3 |
5.1% |
| Rescissions of Prior Appropriations |
--- |
--- |
28.7 |
--- |
--- |
| Total Net Budget Authority |
--- |
--- |
9,463.0 |
--- |
--- |
(a) Includes 84.35 percent of 5340 funds
(b) Includes 15.65 percent of 5340 funds
Bus and Bus Facilities Program Funding. The omnibus spending bill provides $823 million for the Bus and Bus Facilities Program. This is a $32.4 million decrease from the FY 2007 level and $104.7 million below the level authorized in SAFETEA-LU. The decrease was part of a series of reductions that Congress imposed to reach an overall spending level in the omnibus that would meet the President’s budgetary baseline. Of the total amount provided, $475 million was earmarked in SAFETEA-LU and another $220 million was earmarked in the omnibus. As part of the budget negotiations, the earmarks provided in the omnibus bill were reduced by 2 percent. This “across-the-board cut” does not apply to SAFETEA-LU earmarks. The remaining unallocated Bus and Bus Facilities funds, which total approximately $128 million, will be distributed by the Federal Transit Administration (FTA). APTA expects FTA to solicit competitive grant applications to distribute the majority of unallocated funds to transit agencies to meet bus and bus facility capital needs, in accordance with the traditional bus program. The omnibus includes a provision that prohibits FTA from spending more than 10 percent of unallocated Bus and Bus Facilities Program funds on any U.S. Department of Transportation (U.S. DOT) congestion reduction initiative. This provision was strongly supported by APTA and added in response to Congressional and industry dissatisfaction over U.S. DOT’s decision to divert all unallocated FY 2007 Bus and Bus Facilities funds to its congestion reduction initiatives earlier this year. The language was amended in the omnibus to extend the limitation to any new congestion-related programs created by U.S. DOT, including the recently announced “Congestion-Reduction Demonstration Initiatives.” This provision effectively limits FTA to transferring only $12.8 million into congestion reduction initiatives, leaving $115.2 million over the amounts earmarked for the traditional bus program.
New Starts/Small Starts Program funds. The New Starts/Small Starts Capital Investment Program receives $1.57 billion in the omnibus bill, a $3.1 million increase over last year’s level. This number represents a 0.2 percent increase over the amount provided in FY 2007 but is $131 million below the SAFETEA-LU authorized level. Of the total provided, $1.53 billion was earmarked in the omnibus bill. These earmarks were then subjected to the 2 percent across-the-board cut. The remaining unallocated portion will be transferred to FTA for distribution under its discretion. The omnibus also maintains a provision from the THUD conference report that prevents FTA from implementing the final rule on the New Starts/Small Starts Program. FTA is allowed to review comments received on the proposed rule.
Other provisions. The omnibus also includes language that allows for up to a 90 percent federal share for grants for biodiesel buses and for the net capital cost of factory-installed or retrofitted hybrid electric buses under the Bus and Bus Facilities Program (as opposed to the standard 80 percent). Additionally, FTA has been directed to review the condition of the nation’s commuter rail system infrastructure to determine what resources would be necessary to bring these rail systems to a “state of good repair”.
The omnibus does not include a proposal to allow transit agencies in urban areas that transitioned from under 200,000 to over 200,000 people in the 2000 census to utilize a portion of their formula funds for operational expenses. This language has been included in the SAFETEA-LU Technical Corrections bill (see below) that was passed by the House in August. The House Transportation and Infrastructure Committee has indicated that it will attempt to enact this provision as part of a SAFETEA-LU Corrections bill early next year.
For more information on the FY 2008 Consolidated Appropriations Act, please contact Paul Dean of APTA’s Government Affairs Department at (202) 496-4887 or email pdean@apta.com.
Transit Security
The omnibus spending legislation provides $400 million for public transportation and rail security assistance. Language in the bill requires that at least $25 million of that total will be allocated for Amtrak security. This was the same funding level as passed by both the House and the Senate earlier this summer. The funding provided is an increase of $125 million over the $275 million funding level provided for transit and rail security for FY 2007. The Department of Homeland Security will determine which transit agencies will receive the funds.
For more information on Transit Security legislation, contact Tom Yedinak of APTA’s Government Affairs Department at (202) 496-4865 or email tyedinak@apta.com.
Energy and Climate Change Legislation
On December 5, the Senate Committee on Environment and Public Works approved S. 2191, the Lieberman-Warner Climate Security Act of 2007. APTA staff worked with the Committee to include a provision to send a portion of the revenues generated from a “cap-and-trade system” to public transportation. Chairman Barbara Boxer (D-CA) added language proposed by Senator Benjamin Cardin (D-MD) that dedicates 1 percent of revenues generated from the legislation to support growth in transit system capacity. A separate proposal by Senator Thomas Carper (D-DE) that seeks additional revenues and expands the list of eligible expenditures could be considered at a later date. Under the Lieberman-Warner bill, certain large-scale emitters of carbon dioxide and other greenhouse gases, like utility companies and manufacturers, would be required to submit emission allowances. Transit agencies would not be required to submit allowances. Instead, transit agencies would receive a portion of the revenues generated from the sale of allowances to large-scale emitters.
Investment in public transportation with revenues from climate changes legislation rewards transit for its contributions to reducing greenhouse gas emissions. In September, Science Applications International Corporation (SAIC) released a study which found that public transportation prevented the emission of 6.9 million metric tonnes of carbon dioxide in 2005. The SAIC report analyzed direct emission savings from transit, the savings from transit riders not driving and related congestion reductions. In fact, the emission savings from transit are even greater when the benefits of efficient land-use associated with public transportation are considered. These findings will be highlighted in the coming months as APTA sponsors more research in preparation for consideration of the Lieberman-Warner legislation on the Senate floor this spring.
In separate news, on December 19, President Bush signed the Energy Independence and Security Act of 2007 into law. One of the new law’s most important policy changes is an increase in Corporate Average Fuel Economy (CAFE) standards for automobiles and light trucks. Of interest to public transportation, the legislation creates a new “Energy Efficiency and Conservation Grants Program,” which if funded by Congress in subsequent Appropriations bills, would provide block grants to state and local governments to invest in energy efficient activities. Among the eligible uses of these grants is investment in local public transportation infrastructure.
The new energy bill also requires states to distribute rescissions of contract authority proportionately across individual Federal Highway Administration programs. The intent of this provision is to eliminate past practices by State Departments of Transportation of returning a larger, disproportional share of rescinded funds to the federal government from certain programs, including programs used to flex funds into public transportation projects, such as the Congestion Mitigation and Air Quality Improvement Program (CMAQ). The law also includes a sense of Congress statement that supports the use of complete streets design principles in public projects.
The Senate and House passed separate energy bills in June and July respectively, but development of a compromise package stalled for much of the fall as disputes relating to CAFE standards and other issues unrelated to transit were resolved. During final House-Senate negotiations this month some of the transit-related proposals from the House-passed legislation were dropped, including direct transit grants to promote ridership and service expansion and rail access provisions to establish a mediation process between commuter railroads or transit systems and freight railroads. Those provisions, authored by Chairman James L. Oberstar (D-MN) of the House Transportation and Infrastructure Committee could be addressed in subsequent legislation.
For more information on Climate Change or Energy Legislation, contact Homer Carlisle of APTA’s Government Affairs Department at (202) 496-4810 or email hcarlisle@apta.com.
Rail Safety Legislation
Congress adjourned for the year without enacting proposed legislation to improve rail safety. On October 17, the House passed the Federal Railroad Safety and Improvement Act of 2007 (H.R. 2095) by a vote of 377-38. The Senate Committee on Commerce, Science, and Transportation reported similar legislation, the Railroad Safety Enhancement Act of 2007 (S. 1889), in September. The Congressional Committees of jurisdiction have indicated that they expect that rail safety legislation will be considered on the Senate floor early in 2008.
Both the House and Senate versions of the bill would change federal laws regarding hours of service for commuter rail under the authority of the Federal Railroad Administration, including the reduction of allowable “limbo time” – time spent waiting for deadhead transportation at the end of shifts. Also, the bills would mandate implementation of positive train control (PTC) systems, address grade crossing safety, require the development of rail safety plans by DOT, and make numerous other changes to current rail safety laws. APTA continues to work with Congressional Committees to help produce bills that reflect the interests and concerns of operators of commuter and intercity passenger rail service.
SAFETEA-LU Technical Corrections
Congress also failed to pass a proposed SAFETEA-LU Corrections bill prior to adjournment. The proposed legislation (H.R. 3248), which the House passed in July, consists of minor correction to SAFETEA-LU, mostly to specific project descriptions, but would not alter overall funding levels or make significant changes to transit programs. The current bill does not include the provision to allow transit systems in urban areas that transitioned from under 200,000 to over 200,000 people in the 2000 census to continue to use a portion of their formula funds for operational expenses. Some of the proposed provisions in the legislation were included in the Omnibus Appropriations bill, while others still await Congressional action. As previously indicated, the Congressional Committees of jurisdiction hope to advance a corrections bill early next year.
For more information on Rail Safety or SAEFTEA-LU Technical Corrections legislation, please contact Paul Dean of APTA’s Government Affairs Department at (202) 496-4887 or email pdean@apta.com.
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