Legislative Update

Congress Sends SAFETEA-LU Technical Corrections To The President --
Senate Postpones Vote On Highway Trust Fund Fix --
APTA Responds To Proposals For Gas Tax Holiday --
APTA Releases Policy Paper On Climate Change Legislation --
Amtrak Bill Unveiled In The House Of Representatives

May 10 , 2008

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SAFETEA-LU TECHNICAL CORRECTIONS SENT TO PRESIDENT

Congress passed the long awaited SAFETEA-LU technical corrections bill (H.R. 1195) and has sent the bill to the President.  On April 17, the Senate overwhelmingly approved the legislation by a vote of 88-2.  The House followed suit on April 30 by a vote of 358-51, clearing the bill for the President’s signature.  The legislation includes a number of technical corrections for transit projects that were included in the original SAFETEA-LU, and makes a number of other technical amendments.  It also contains the following policy provisions, which were supported by APTA:

• The bill allows transit systems serving urbanized areas whose population went from under 200,000 to over 200,000 in population in the 2000 census to use a portion of their Fiscal Year (FY) 2008 and 2009 urbanized area formula grants for operating costs.  Transit systems in these areas can use an amount equal to 50 percent of the urbanized area formula grants received in FY 2002. 

• The bill also mandates that the Federal Transit Administration (FTA) “give comparable, but not necessarily equal, numerical weight to each project justification criteria in calculating the overall project rating” for New Starts projects.  This provision would require the FTA to give greater consideration to land use and economic development benefits measurements in the New Starts selection process. 

The bill is expected to be signed by President Bush in the coming days.

For more information on the SAFETEA-LU Technical Corrections bill or specific earmarks that were included, please contact Paul Dean of APTA’s Government Affairs Department at (202) 496-4887 or email pdean@apta.com.

FIX FOR HIGHWAY TRUST FUND STALLS

The Senate failed to approve the Federal Aviation Administration reauthorization bill (H.R. 2881) this week that included a provision to transfer general funds into the Highway Trust Fund (HTF) to fix a projected shortfall in the Highway Account in FY 2009.  On Tuesday, May 6, the Senate rejected a procedural motion that would have allowed a final vote on the legislation, due to Republican opposition of unrelated provisions.  The bill now has been set aside, but it is expected to be brought back to the floor in the near future for reconsideration after a “cooling off” period. 

The measure is intended to address a situation where the revenues coming into the Highway Account of the HTF are short of the amount needed to fund the federal highway program at the authorized level in FY 2009.  The trust fund fix was introduced by the leadership of the Senate Finance Committee and introduced on the Senate floor as a substitute amendment offered by Senator Rockefeller (D-WV) to the tax title of the FAA bill.  It would avert the shortfall by depositing $3.3 billion in general funds into the HTF, to repay previous year spending from the HTF for costs associated with emergency spending related to damage from hurricanes and terrorist attacks.  The proposal to fix the HTF shortfall also includes a temporary suspension of transfer payments from the HTF to the general fund to cover the cost of fuel tax exemptions provided to transit agencies and state and local governments, but does so in a way that preserves the exemptions.

APTA supports inclusion of the Rockefeller proposal to fix the Highway Trust Fund shortfall in the FAA Reauthorization bill because it would preclude the need to consider other ways to address the shortfall in the Highway Trust Fund, such as the Administration’s proposal to borrow funds from the Mass Transit Account.  In addition, the Rockefeller amendment also authorizes the issuance of tax credit bonds to promote new investment in high speed rail.  Senate Finance Committee Chairman Max Baucus (D-MT) has predicted that the version of the bill that re-emerges will include the trust fund fix.

For more information on the status of FAA Reauthorization, please contact Paul Dean of APTA’s Government Affairs Department at (202) 496-4887 or email pdean@apta.com.

GAS TAX HOLIDAY

There has been much discussion recently of proposals to suspend the federal motor fuels tax from Memorial Day to Labor Day.  One proposal by Senator John McCain (R-AZ), the presumptive Republican Presidential nominee, would suspend the gas tax and compensate for lost revenues to the HTF with transfers from the General Fund.  Another, offered by Senator Hillary Clinton (D-NY), would tax the “windfall profits” of oil companies to pay for any reduction in revenue deposited in the HTF.  Most economists predict insignificant savings to Americans as a result of a gas tax suspension.  They estimate that a 3-month suspension would reduce revenues which would otherwise be deposited in the HTF by $9 billion.  APTA sent letters to the Senate leadership expressing its opposition to any legislation that would suspend the federal motor fuels tax. (Click here for link.)  APTA also co-signed a letter sent by the Americans for Transportation Mobility (ATM) coalition to all members of Congress expressing similar sentiments. 

Congressional advocates of the gas tax holiday have indicated that they will continue the effort to move a bill in the coming weeks.  However, Democratic leaders in both the House and Senate remain opposed to any suspension of the gas tax, and are trying to develop an alternative proposal that would provide relief from gas prices without impacting the HTF.

For more information on APTA’s position on the proposals to suspend the federal motor fuels tax, please contact Paul Dean of APTA’s Government Affairs Department at (202) 496-4887 or email pdean@apta.com.

CLIMATE CHANGE LEGISLATION

APTA continues to work with the Senate to increase transit investment under the Lieberman-Warner Climate Security Act (S. 2191).  The full Senate could consider the committee-approved bill as early as June.  One-third of carbon dioxide (CO2) emissions in the U.S. are produced in the transportation sector, but the current version of Lieberman-Warner dedicates only 1 percent of “cap-and-trade” revenue to public transportation investment.  Senators Ben Cardin (D-MD), Tom Carper (D-DE) and Frank Lautenberg (D-NJ) have begun negotiations with Senate Environment and Public Works Committee Chairman Barbara Boxer (D-CA) to direct additional funding to efforts that address transportation-related emissions.   APTA has recommended that Lieberman-Warner direct no less than 6 percent of its revenue for investment in transit, and no less than 4 percent to local, regional and state efforts to curb growth in vehicle travel. APTA's letter can be found here.

Approximately 85 percent of transportation sector emissions in the U.S. are related to surface transportation, and future growth in private vehicle travel could negate emission savings from improved vehicle fuel economy and low carbon fuel requirements.  If that occurs, the burden of emission reductions will fall more heavily on other sectors of our economy.  Public transportation use already reduces the emission of more than 37 million metric tonnes of CO2 every year by reducing travel and congestion on roadways and supporting more efficient land use patterns.   The current emission reductions from public transportation are important, but much more can and should be done to reduce greenhouse gas emissions from the transportation sector.

This week, APTA released a policy paper that provides background information and recommendations on how the Lieberman-Warner legislation could utilize public transportation to better reduce emissions from the transportation sector.  To view the paper, click here.  In the U.S. House of Representatives, the Energy and Commerce Committee, which has primary jurisdiction over climate change issues, is still evaluating options to address global climate change and has not yet introduced legislation.  Several members of the House, including Speaker Nancy Pelosi (D-CA), have expressed support for increasing investment in public transportation to address climate change, and APTA is working with numerous offices to promote transit investment when climate change legislation advances in the House. 

Contact Homer Carlisle of APTA’s Government Affairs Department at (202) 496-4810 or hcarlisle@apta.com for additional information regarding climate change legislation.

TRANSIT SECURITY

As previously reported, Congress appropriated $400 million in the FY 2008 Department of Homeland Security Appropriations bill for transit, passenger and freight rail security grants.  On February 1, 2008, the Department of Homeland Security (DHS) released guidance for the FY 2008 Transit Security Grant Program, which allocates $348 million for transit, $25 million for passenger rail, and $15 million for freight rail security grants.  Despite Congressional guidance to the contrary, the DHS grants distribution process will remain essentially the same as it was in FY 2007.  Of particular note:

• H.R.1, the 9/11 Commission Recommendation Act of 2007 that was signed into law on August 3, 2007, included conference report language that instructs DHS to distribute grants directly to transit authorities.  However, new DHS guidance allows the states to continue to administer the program and retain 3 percent in management and administrative costs.

• The new DHS guidance also requires a local cost share.  For operating costs, the law limits the maximum federal share to 66 percent of total project cost, while the DHS guidance limits the federal share of operating costs to 50 percent.  The guidance also requires a 25 percent local match for the purchase of equipment, management and administration activities.  There is no local cost share requirement for capital spending under in H.R.1.

• The new DHS grants guidance specifically prohibits funding for costs, such as chemical-biological detection, and redundant Operational Control Centers.  While H.R.1 provided DHS with the flexibility to consider funding such costs, DHS ignored this legislative language and has restricted the use of federal funds in its program guidance. 

On February 8, 2008, APTA wrote to Chairman Bennie Thompson of the House Homeland Security Committee expressing concern about these issues.  APTA’s letter can be found at the following link:  http://www.apta.com/government_affairs/letters/080208_thompson.cfm

On March 27, 2008, APTA submitted written testimony to the House Subcommittee on Homeland Security Appropriations.  APTA requested $750 million for transit security grant funding in FY 2009 from DHS, which is the level authorized in H.R. 1. The Bush Administration’s FY 2009 budget proposes to fund transit security at only $175 million--$225 million less than the $400 million that Congress appropriated for transit security for FY 2008.  APTA also requested $600,000 to maintain and operate the Public Transit Information Sharing Analysis Center (ISAC) which was authorized under the 9/11 Commission bill under Section 1410 (d).  In addition, APTA requested $500,000 for DHS grant funding for development of a transit security standards program.  APTA’s testimony can be found at the following link:  http://www.apta.com/government_affairs/aptatest/testimony080327.cfm

For more information on transit security, please contact Tom Yedinak of APTA’s Government Affairs Department at (202) 496-4865 or email tyedinak@apta.com.

AMTRAK BILL INTRODUCED—HIGH-SPEED RAIL LEGISLATION ATTACHED

On May 8, 2008, House Transportation and Infrastructure Committee leaders unveiled “The Passenger Rail Investment and Improvement Act”—a plan to reauthorize Amtrak.  The $14.4 billion dollar proposal would boost federal spending for Amtrak and high-speed rail service by providing $6.7 billion in capital grants and $3 billion for operating grants over the five-year span of the bill.  The legislation also creates a new program to provide $2.5 billion for intercity rail grants, as well as a provision for states or Amtrak to receive grants for the establishment of 11 high-speed rail corridors. 

The Amtrak reauthorization plan includes the core provisions of a bill that was introduced in March by Representative John Mica (R-FL), ranking member of the House Transportation and Infrastructure Committee to provide for competitive development and operation of high-speed rail corridor projects.  The legislation would provide for the solicitation of proposals for projects for the financing, design, construction, and operation of an initial high-speed rail system between Washington, DC and New York City.  The proposal also would establish a commission for reviewing the plans as well as requiring the Secretary of Transportation to provide Congress with the results of an economic development study of Amtrak’s Northeast Corridor service between Washington, DC and New York City. 

The bill will be introduced formally within the next week, and a hearing on the legislation is scheduled for May 14.

For more information on high-speed rail legislation, please contact Tom Yedinak of APTA’s Government Affairs Department at (202) 496-4865 or email tyedinak@apta.com.

RAIL SAFETY

Leadership of the Senate Commerce Committee have indicated that they will attempt to gain approval of the Railroad Safety Enhancement Act of 2007 (S. 1889) by unanimous consent in the coming weeks.  A manager’s amendment will be offered that incorporates many of the modifications sought by APTA commuter rail operators that would give commuter and intercity rail operators three years to work with the Federal Railroad Administration to develop an alternative hours of service regime.  Commuter and intercity rail operators would continue to operate under the old rules, until new regulations are issued specific to passenger carriers.  The House of Representatives passed rail safety legislation last year that did not contain these accommodations.  Should the Senate pass the legislation, a House-Senate conference will be needed to work out the differences is the chambers’ two versions.

For more information on the status of Rail Safety, please contact Paul Dean of APTA’s Government Affairs Department at (202) 496-4887 or email pdean@apta.com.

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