Congressional Update: The Budget and Beyond

Legislative Update

May 23, 2002

Transportation Appropriations Outlook

Up Ahead: Movement on the Fiscal Year (FY) 2003 Department of Transportation (DOT) Appropriations Bill has been delayed until after the Memorial Day recess. Progress on the bill has been slowed due to consideration of the emergency funding supplemental appropriations bill and other factors. Congress is not likely to consider the DOT appropriations bill until early July.

The President's Budget proposal includes $7.2 billion for transit, the guaranteed level under the Transportation Equity Act for the 21st Century (TEA 21). Both the House and Senate budget resolutions would fund the federal transit program at the guaranteed level, and the Senate version passed by the Budget Committee and awaiting full Senate consideration would provide an additional $100 million for new start projects. APTA will keep members apprised of developments through the summer.

Highway Funding Restoration: Authorizers and Appropriators Strike a Deal

In response to the Administration's FY 2003 highway funding budget request that would have reduced funding to $23 billion because of RABA (see below), the Highway Funding Restoration Act (H. R. 3694) was passed overwhelmingly by the House last week. H. R. 3694 sets highway funding at $27.7 billion, the authorized amount for FY 2003 under TEA 21. The Senate version (S. 1917) awaits consideration by the Environment & Public Works Committee, where amendments to increase funding beyond $27.7 billion may be considered.

The Revenue Aligned Budget Authority (RABA) mechanism requires highway funding to be adjusted each year to reflect the most recent estimates of revenue collections. For FY 2003, the RABA mechanism would have resulted in a reduction of $4.4 billion below the authorized baseline level.

Action Call

With the reauthorization of TEA 21 coming up, APTA members should invite U. S. Senators and Representatives to their properties to see the results of TEA 21 investments. It is an election year, and Members of Congress will be at home for breaks the weeks of Memorial Day and Independence Day, as well as during the month of August. Help Members of Congress get media exposure in connection with their projects!

The RABA deal: House Appropriators and Transportation & Infrastructure Committee authorizers negotiated an agreement on the restoration bill, in conjunction with the FY 2002 supplemental appropriations bill. The bill mandates that the RABA adjustment for next year "shall be deemed to be zero," language favored by the T& I Committee. In return, the T& I Committee agreed to a list of 49 highway project earmarks that were rejected in last year's Transportation Appropriations Bill. The agreement preserves a higher FHWA baseline, which will be used as the starting point in the upcoming reauthorization debate, and it prevents the elimination of the RABA mechanism in the final year of TEA 21.

2002 Emergency Supplemental Spending Bill

Last week the House Appropriations Committee passed the Fiscal Year 2002 supplemental appropriations bill. The bill would provide $29.4 billion, $1 billion above the President's request. The vast majority of the funds go to defense and military projects, many set in forward motion by the September 11 attacks. The appropriators would fund the Transportation Security Administration at $3.85 billion$ 550 million less than the Administration's request. The bill also includes $1.8 billion in transit capital investment grants to replace and rebuild public transportation facilities affected by the terrorist attacks in New York City. Senate Appropriations Committee Chairman Robert Byrd (D-WV) will not take up the bill in the Senate until the full House has passed it. It is unclear when the House will bring the supplemental to the floor, but it will certainly not come before the Memorial Day recess, which was the President's target date for passage.

Conference-bound: The Energy Bill

>On April 25, the Senate passed the Energy Policy Act of 2002, which now goes to House-Senate conference. H. R. 4 is the vehicle for the legislation, though it includes portions of six other related bills. The Senate appointed its conferees on May 1. Once the House chooses its conferees, the legislation will proceed toward conference. The differences between the two bills are significant and it is not clear that the legislation will be approved this year.

Some provisions of particular interest would:

Transfer 2.5 cents of the gasohol tax, which currently goes to deficit reduction, into the Highway Trust Fund. The measure would not affect the amount of the gasohol tax which now goes into the Mass Transit Account. The provision is included in the Senate-passed version, but not the House-passed version.
Direct the Secretary of DOT to establish an alternative fuel vehicle competitive grant pilot program for up to 15 state and local governments and metropolitan transportation authorities.
Direct DOT to launch a fuel cell bus demonstration program to address hydrogen production, storage, and use in transit bus application.
Direct DOT to establish a public private research partnership for the development and demonstration of locomotive technologies that increase fuel economy, reduce emissions, improve safety, and reduce costs.

New Legislation for Bus Security

On May 16, the House T& I's Highways & Transit Subcommittee amended and passed the Over-the-Road Bus Security and Safety Act (H. R. 3429). The bill would authorize funding for increased security measures
and facilities for "over-the-road" buses, defined as those having an "elevated passenger deck located over a baggage compartment." While the bill as introduced contained language that would have established a $0.25
fee on all intercity bus passenger tickets of more than $5 to fund the bill, that language was eliminated by the Subcommittee. As amended, the measure simply authorizes funding for the program at $200 million in each
of the fiscal years 2002 through 2004.

Passenger Rail Update

House Railroads Subcommittee Marks-Up Amtrak and High Speed Rail Bills, But Action Delayed at Full T& I Committee

On May 8 the House Railroads Subcommittee forwarded to the full Transportation and Infrastructure Committee H. R. 4545, the Amtrak Reauthorization Act of 2002, and H. R. 2950, the "Railroad Infrastructure Development Act for the 21st Century". However, a dispute raised by freight railroads over the possible broad reach of a proposed extension of certain railroad labor laws caused the Committee to postpone consideration of H. R. 2950 at its May 22 markup before the Full Transportation and Infrastructure Committee. Committee Chairman Don Young decided to delay consideration of H. R. 4545 as well.

APTA has had extensive discussions on the rail labor language, sending letters to Committee leadership on December 21, 2001 and May 2, 2002. Rail Labor is seeking language in any high-speed rail bill to assure that entities providing or under contract for any service in connection with high speed rail come under the coverage of rail labor laws. The final version of the bill put forward by labor before the May 22 markup includes language negotiated by APTA to clarify that commuter railroads and their contractors are not to be affected by any rail labor amendments intended to apply to high-speed rail.

Overall, H. R. 2950 would make funds available through three programs:

States could, upon authorization by U. S. DOT, issue special interest free bonds, in the aggregate amount of $1.2 billion per year, for the development of high-speed rail corridors. States would need pre-agreements from freight right-of-way owners, would need to eliminate hazardous grade crossings, and would be required to apply prevailing wage standards to construction projects.
High Speed Corridor development program grants pursuant to the Swift Rail Development Act would be reauthorized. An amount of $100 million per year in general funds would be authorized to be appropriated, with a shift in emphasis from technology development to corridor development. Funds could be used for acquisition of locomotives, roling stock, track and signal equipment.
The Federal Railroad Administration's Railroad Rehabilitation and Infrastructure Financing (RRIF) program would be increased from its current level of $3.5 billion to $35 billion. New provisions would prohibit FRA from requiring collateral, and would prohibit FRA's current "lender of last resort" requirements.

H. R. 4545 would authorize Amtrak through FY 2003 at about $2 billion, authorizing $800 million for capital expenditures, $200 million for operations, $775 million for safety and security upgrages, and a special line item to cover the costs of "excess railroad retirement contributions". Under the bill, Amtrak would have to submit their business plan and capital plans to Congress, and to DOT's Inspector General for review. All funding would be subject to appropriations.

Senate Commerce Committee Reports Omnibus Railroad Passenger Bill

On April 18, The Senate Commerce, Science and Transportation Committee reported S. 1991, a bill sponsored by Committee Chairman Earnest Hollings (D-SC) and titled the National Defense Rail Act. The $49.5 billion bill would authorize $850 million per year for Amtrak operating and capital subsidies; authorize $1.55 billion per year for high-speed rail corridor development; authorize $1.4 billion for Amtrak's immediate security and safety needs; and authorize $1.3 billion for Northeast Corridor capital improvements. The bill would also repeal Amtrak's self-sufficiency requirement, and would expand FRA's RRIF loan program to $35 billion. The Committee voted 20-3 in favor of the bill. The bill would also direct DOT to carry out a rail passenger cooperative research program and to take into account intercity rail services, research on commuter, regional, freight and other forms of rail transportation, and to give consideration to regional concerns.

In other actions that day, the Committee reported: the Railroad Track Modernization Act (S. 1220), which would authorize capital grants for Short Line Railroads; the Safe Rails Act of 2001 (S. 1871), which would autorizes funds to reimburse freight railroads for security measures taken in response to September 11; and the Over-the-Road Bus Security and Safety Act (S. 1739), which authorizes funds to reimburse bus companies for post September 11 security expenses (similar to H. R. 3429).

New Head at Amtrak

Amtrak's Board of Directors chose David L. Gunn to become Amtrak's new President and CEO, effective May 15. Gunn has previously served as President of the New York City Transit Agency from 1984 to 1990, and as Chief General Manager of the Toronto Transit Commission from 1995 to 1999. His new post brings him back to the capitol, where he served as General Manager of the Washington Metropolitan Area Transit Authority (WMATA) from 1991-1994.

For the Record: Recent APTA Testimony

House T& I Highways & Transit Subcommittee Relieving Highway Congestion

On May 21, the Highways & Transit Subcommittee heard from three panels of witnesses on the subject of improving highway capacity and congestion. Richard Ruddell, APTA's Vice Chair for Government Affairs, testified on behalf of APTA. He expressed APTA's active interest in improved surface transportation operations, as well as strong support for a well-funded intermodal surface transportation system.

House T& I Highways & Transit Subcommittee Benefits of Public Transportation

APTA President William W. Millar testified before the Highways & Transit Subcommittee on April 17 on the benefits of public transportation. Jeffrey A. Parker testified on the benefits of guaranteed funding for transit under TEA-21. Jerry Roper, President and CEO of the Chicagoland Chamber of Commerce, testified on the vital importance of transit to metropolitan centers and the national economy.

The Committees on Appropriations FY 2003 DOT Budget

APTA submitted written testimony in April regarding the FY 2003 U. S. Department of Transportation Appropriations bill. Though the Committees did not schedule public witnesses, the testimony was submitted April 5 to the House Appropriations Transportation Subcommittee and April 12 to the Senate Appropriations Transportation Subcommittee. The testimony focused on transit's growing ridership and the importance of TEA 21's federal funding in supporting and expanding the federal transit program as it continues to meet the nation's increased mobility and security needs.

Senate Banking Transit in the 21st Century: Successes and Challenges

On the heels of the 27 th Annual Legislative Conference, Bill Millar testified before the Senate Committee on Banking, Housing, and Urban Affairs as part of a series of hearings in preparation for next year's reauthorization of TEA 21. APTA's testimony illustrated the transit renaissance in America and the growing demand for public transportation. Dale Marsico, Executive Director of the Community Transportation Association of America, and John Inglish, General Manager of the Utah Transit Authority, demonstrated TEA 21's impact on mobility in communities and at the 2002 Winter Olympic Games.
APTA testimony referenced above may be found at the Government Affairs section of http://www.apta.com/.

Reauthorization: It's on Everyone's Lips

APTA's Reauthorization Task Force continues to meet and develop its recommendations for reauthorization. The Task Force will meet next on June 11 during the APTA Commuter Rail/ Rail Transit Conference. The reauthorization principles recommended by the Task Force and approved by the APTA Board of Directors can be viewed at www. apta. com. With the reauthorization of TEA 21 just ahead, a number of transportation industry groups and other organizations are developing proposals. While many of these proposals are still under development or in draft stages, here's a general summary them.

AASHTO	At an American Association of State Highway and Transportation Officials (AASHTO) meeting April 19, a number of proposals were considered and will be discussed over the summer and be voted on by the AASHTO board in the fall. One of AASHTO's key proposals would create a Transportation Finance Corporation that would provide increased investment resources through a financing mechanism that leverages existing governmental resources to increase investment in critical highway, transit and other surface transportation infrastructure. AASHTO also has a number of principles in support of transit: continue the guarantees; keep federal match at 80/ 20; continue the flex funds programs; General Fund support should be increased to the maximum extent possible. See www.aashto.org
AMPO	The Association of Metropolitan Planning Organizations (AMPO) has adopted a document that focuses on its planning positions; AMPO also has a one-page "Goals and Objectives For TEA 21 Reauthorization" that identifies three areas -focus the funding where the problems are; provide for new and existing transportation system efficiency; and streamline the project delivery and air quality conformity processes. See www. ampo. org
ARTBA	The American Road & Transportation Builders Association (ARTBA) has a proposal that calls for a 10-cent increase in the gas tax, with 2 cents for transit. It proposes that the federal highway program be funded at a minimum of $50 billion per year over the period 2004-2009. It also includes priorities for environmental streamlining, maintaining the link between highway fee revenues and surface transportation investment (including RABA), and new safety initiatives. See www.artba.org
CTAA	The Community Transportation Association of America (CTAA) has adopted a comprehensive reauthorization proposal calling for: greater federal investment for all community and public transportation programs; innovative investment strategies for community and public transportation programs for a total program level of $13.9 billion in FY 2004, ramping up to $25.5 billion in FY 2009; maintenance of the fiscal protections and guaranteed funding levels of TEA 21; and examination of regulatory burdens' necessity and efficiency. CTAA's proposal includes the innovative use of tax credits to finance mobility and expansion, as a third part of the general fund and trust fund elements of current funding. See www.ctaa.org
AAR	The Association of American Railroads (AAR) calls for increased funding for the Section 130 grade crossing program and for maintenance activities to be eligible for funding. Continued support for Operation Lifesaver. Increased funding and clarify rail freight eligibility for the Congestion Mitigation and Air Quality Improvement program (CMAQ). See www.aar.org
NACo	The National Association of Counties (NACo) is undertaking a multi-year legislative effort to reauthorize TEA 21 that generally supports the current structure and financing of TEA 21. NACo has also urged their members to contact their elected officials to communicate the importance of TEA 21 to improving county highway, bridge, and transit systems. See www.naco.org
COM	At their Winter Leadership Meeting, the U. S. Conference of Mayors focused extensively on TEA 21, especially as it relates to reauthorization of TEA-21 and the current $8.6 billion, or 27 percent, shortfall in the President's fiscal year 2003 budget for highway funding. The mayors also discussed an action plan for TEA 21 reauthorization which began with Boise Mayor H. Brent Coles testifying before the Senate Environment and Public Works Committee and continued on February 28, with Mayor Barr testifying before the Subcommittee on Highways and Transit of the House Committee on Transportation and Infrastructure. See www.usmayors.org
NLC	In 2002, the National League of Cities has testified on TEA 21 issues twice: On January 24 Mayor Clavelle testified before the Senate EPW Committee on Partners for America's Transportation Future, and on February 28 Mayors Greyson & Barr testified before the Highways & Transit Subcommittee on Perspectives of Governors & Local Elected Officials on the Reauthorization of TEA 21. The themes of funding, flexibility, and intermodalism support NLC's top concern: congestion. See www.nlc.org

Regulatory Update

APTA Comments on FCC Proposed Rulemaking

In response to an April 5 notice of proposed rulemaking (NPRM) by the Federal Communications Commission (FCC), APTA submitted comments on May 6, which may be viewed on APTA's web site under "What's New." The issue: proposals made by the National Association of Manufacturers and MRFAC, Inc. and Nextel Communications for alleviation of interference to public safety communications in the 800 MHz band. These proposals could result in reallocation of frequencies currently held by transit operators, from the 800 MHz band to the 900 MHz band or the 700 MHz band. APTA's comment details the substantial adverse financial and operational impacts this proposal would have on transit agencies, as well as critical safety and security functions that could be jeopardized. All comments to this proposed rulemaking may be viewed at www. fcc. gov, in its e-filing area. The docket number for the rulemaking is 02-55. Another round of comments may be submitted by APTA; if you have further comments, please submit them to APTA's Kristin O'Grady by May 30, 2002.

Review Legislation Online

For the full text or bill status of the legislation discussed in this report, go to http://thomas.loc.gov/. At the top of the page, note the box for searching by bill number. Type in the bill number (for example: "H. R. 3694" or "S. 1917") and hit the Search button. After the page loads, click on the link to the Bill Summary & Status file. From here, you can find the sponsor, lastest major action, title, and links to other related information.

Upcoming Meetings

APTA Commuter Rail/ Rail Transit Conference in Baltimore June 8-13

Just rounding the bend: The 2002 Commuter Rail/ Rail Transit Conference in Baltimore, Maryland. Please join rail transit system and commuter rail personnel, board members, policy makers, suppliers, consultants, and many others from June 8-13, at the Renaissance Harborplace Hotel & Hyatt Regency Baltimore. The conference has plenty to offer: forums, panels, and workshops addressing a broad range of subjects covering planning, design, and operations of rail transit and commuter rail systems. To register, call APTA's meetings department at 202 496-4838. For additional program information, contact Fran Hooper at 202 496-4876 or David Phelps at 202 496-4885.

State Public Transit Partnerships Conference July 8-10

Don't forget to register for the 2002 State Public Transit Partnerships Conference scheduled July 8-10 at the Portland Oregon Hilton. The conference is a joint effort of APTA, AASHTO, CTAA and ATSC. The annual event attracts state department of transportation officials, state transit association leaders, and transit system representatives interested in the important role states play in support of public transportation. June 17 is the deadline for early registration and hotel reservations. Register at http://www.transportation.org/. For additional information, contact Rich Weaver at 202 496-4809.

For further information about any issues in the APTA Washington Report, please contact Genesee C. Adkins at (202) 496-4810 or at gadkins@apta.com.