Safe, Accountable, Flexible, Efficient Transportation
Equity Act - A Legacy for Users
INTRODUCTION
This guide provides a brief summary of key transit
and related provisions of the Safe, Accountable, Flexible, Efficient
Transportation Equity Act - A Legacy for Users (SAFETEALU), which authorizes
federal transit and highway programs through Fiscal Year (FY)2009. The
bill was signed into law by President Bush on August 10, 2005 (Public
Law109-59).
SAFETEA-LU builds on the success of two previous surface
transportation authorization laws, the Intermodal Surface Transportation
Efficiency Act (ISTEA; P.L. 102-240) andthe Transportation Equity Act
for the 21st Century (TEA 21; P.L. 105-178). Under it, thefederal transit
program structure remains largely the same, retaining formula programs
that target federal investment to systems and communities based on need
and capital investment programs that address special needs and projects.
Nonetheless, as summarized in this guide, the new law makes a number
of changes to existing programs and adds new ones.
SAFETEA-LU represents a hard-fought victory for the public transportation
industry and is consistent with the key reauthorization goals adopted
by APTA46;s Board of Directors in 2002: grow the program; maintain
funding guarantees; and expedite program delivery.
The new bill meets these goals. It:
- Provides a record level of federal transit investment, $52.6 billion
over 6 years, an increase of 46 percent over the amount guaranteed
in TEA 21;
- Increases annual guaranteed transit funding from a level of $7.2
billion in FY 2003 (the last year of TEA 21) to $10.3 billion in FY
2009;
- Retains annual funding guarantees to ensure long-term funding stability;
and
- Improves program delivery.
This outcome was possible because APTA member organizations
worked together, and with other transportation interest groups, to make
it happen. With great leadership provided by the APTA Executive Committee,
Board of Directors and especially our legislative leadership 50;
the Big 5: Rick Bacigalupo (Orange County), Mike Townes (Hampton Roads),
Chris Boylan (New York), Dick Ruddell (Ft. Worth), and AlanWulkan (Parsons
Brinkerhoff) 50; coupled with APTA46;s Public Transportation
Partnershipfor Tomorrow (PT)2 resources we were able to carry that message
forward moreeffectively than ever before. The results are described
in this guide.
William W. Millar
President
American Public Transportation Association
September 2005
TABLE OF CONTENTS
- Summary and Overview
- Transit Provisions of SAFETEA-LU
- Planning
- Planning Programs
- Metropolitan Planning
- Statewide Planning
- Formula Programs
- Urbanized Area Formula Program
- Small Transit Intensive Cities Tier
- Operating Assistance for Small UZA
- Growing and High Density States Apportionment
Factors
- Rural Formula Program
- Transit on Indian Reservations
- Elderly Individuals and Individuals with Disabilities
Program
- New Freedom Program
- Job Access and Reverse Commute Program
- Capital Investment Programs
- New Starts Program
- Small Starts Program
- Alternatives Analysis
- Fixed Guideway Modernization Program
- Bus and Bus Facilities Program
- Research
- Other Programs
- Clean Fuels Program
- Alternative Transportation in Parks and Public
Lands Program
- Project Management Oversight
- Other Transit-Related Provisions
- Non-Regulatory Notice and Comment Period
- Charter Bus
- Employee Protective Arrangements
- Buy America
- Bus Dealership Requirement
- Controlled Substances and Alcohol Misuse Testing
- Eligible Capital Expenses
- Use of Advertising and Social Service Contract
Revenue Towards Local Match
- Transit Pass Commute Benefit
- Volumetric Excise Tax Credit for Alternative Fuels
- Selected Highway Provisions
- Congestion Mitigation and Air Quality Improvement
- Bus Axle Weight Exemption
- Ferry Boats and Terminals
- Tolling Provisions
- Transportation, Community, and System Preservation
Program
- National Surface Transportation Policy and Revenue
Study Commission
- National Surface Transportation Infrastructure
Financing Commission
- Funding Tables
SAFETEA-LU
Over two reauthorization cycles, federal public transportation investment
has more than doubled.

Summary and Overview
On July 29, 2005, the U.S. House of Representatives
and Senate approved by huge margins the Safe, Accountable, Flexible,
Efficient Transportation Equity Act - A Legacy for Users (SAFETEA-LU).
The bill provides $286.4 billion, including $52.6 billion for transit,
through Fiscal Year (FY) 2009. The President signed the bill into law
(Public Law (P.L.) 109-59) on August 10, 2005. The President's signature
completed a legislative process that began in 2003, spanned two Congresses,
and included two conferences and 12 extensions of TEA 21.
Transit Provisions of SAFETEA-LU
The provisions of SAFETEA-LU specifically fund the
authorization of transit and highway funds for FY 2005 through FY 2009;
funding for FY 2004 was authorized by the Surface Transportation Extension
Act of 2004, Part IV, (P.L. 108-280). All amounts in this document refer
to the entire SAFETEA-LU period and include FY 2004 funds authorized
by the Surface Transportation Extension Act of 2004, Part IV. Provisions
of SAFETEA-LU generally take effect at the beginningof FY 2006 (October
1, 2005), but the law incorporates FY 2005 funding provided in FY 2005
Appropriations law and extensions of authorizing law.
Before FY 2006, federal transit programs were funded
with a mix offunds from both the Highway Trust Fund and the General
Fund,which under congressional budgeting rules resulted in a fast 47;spend
down48; rate for Mass Transit Account funds. Beginning in FY 2006,
SAFETEA-LU funds the New Starts, Research and University ResearchCenters
programs and the Federal Transit Administration (FTA) Administrative
Expenses from the General Fund, and all other programs from the Mass
Transit Account of the Highway Trust Fund.As a result, Trust Fund spending
under the transit program for the first time will be scored in the same
way that spending is scored under the highway program, which has a significant
and positive impact on the amount of funds that were able to be made
availablefor the transit program under SAFETEA-LU.
Finally, the legislation provides guaranteed annual increases in investment
for all transit programs through the use of discretionary spending offsets
and language similar to that included in TEA 21.
PLANNING PROGRAMS, 49 U.S.C. 5305
A new section 5305 contains general provisions applicable
to planning programs and continues the current division of planning
authorization between Metropolitan Planning and Statewide Planning.
The law requires the Federal Transit Administration and Federal Highway
Administration to issue final planning regulations by August 10, 2006.
METROPOLITAN PLANNING, 49 U.S.C. 5303
All provisions for Metropolitan Planning are consolidated
in a new section 5303. The requirement for separate transportation plans
and transportation improvement programs is maintained. The Long Range
Transportation Plan and the Transportation Improvement Program are to
be updated every four years. Provisions regarding Transportation Management
Areas (TMAs) are included in the metropolitan transportation planning
section. Metropolitan Planning Organizations (MPOs) are encouraged to
consult or coordinate with planning officials responsible for other
types of planning activities affected by transportation. Safety and
security are factors to be included in metropolitan planning.
In developing a Long Range Transportation Plan, MPOs
will be required to include transit agencies in making funding estimates;
consult with state and local agencies responsible for land use management,
natural resources, environmental protection, conservation, and historic
preservation; and have a participation plan that provides reasonable
opportunities for all parties comments. TMAs must be certified every
four years. Program updates of state or MPO plans shall reflect these
changes by July 1, 2007.
STATEWIDE PLANNING, 49 U.S.C. 5304
SAFETEA-LU consolidates statewide planning requirements in a new section
5304. States are allowed to enter into agreements for the purpose of
planning cooperation and coordination for projects with multi-State
implications. States must consider the economic vitality for rural areas
as well as urbanized areas in statewide transportation planning. The
Statewide Transportation Improvement Program (STIP) is to be updated
every four years. Safety and security are factors to be included in
statewide planning.
Formula Programs
Formula programs are those under which funds are apportioned
by a formula specified in authorizing law. SAFETEA-LU moves several
programs from other categories into a new "Formula and Bus Capital"
category for authorization beginning in FY 2006. The new aggregation
of programs is intended to allow all formula programs and the Bus Capital
program to be funded from a single authorization from the Mass Transit
Account.
URBANIZED AREA FORMULA PROGRAM, 49 U.S.C. 5307
SAFETEA-LU preserves the existing formula program and
its distribution factors, but creates several new programs or tiers
to distribute a portion of the funds to urbanized areas (UZAs). It establishes
a new tier for transit intensive urbanized areas with fewer than 200,000
in population and extends the authority to use formula funds for operating
purposes in urbanized areas reclassified as being larger than 200,000
in population under the 2000 Census. These changes are described in
detail in the following sections. Urbanized Area Formula Program apportionments
will include funds apportioned under a new Growing States and High Density
States program described below. The transit enhancement program will
be administered by certification, and a grantee must submit an annual
report of such projects to the FTA.
SMALL TRANSIT INTENSIVE CITIES TIER, 49 U.S.C.
5336(j)
SAFETEA-LU includes APTA's proposal to create a tier
in the Urbanized Area Formula program that would distribute funds to
small UZAs with fewer than 200,000 population that provide transit service
above a certain level. The new tier will be funded at 1 percent of all
UZA formula funds annually beginning in FY 2006. The criteria are passenger
miles traveled per vehicle revenue mile; passenger miles traveled per
vehicle revenue hour; vehicle revenue miles per capita; vehicle revenue
hours per capita; passenger miles traveled per capita; and passengers
per capita.
OPERATING ASSISTANCE FOR SMALL UZAS, 49 U.S.C.
5307(b)(2)
Transit agencies in urbanized areas that grew from
fewer than 200,000 in population under the 1990 Census to more than
200,000 in population under the 2000 Census may continue to use formula
funds for operating expenses in FY 2005 at 100 percent of their FY 2002
apportionment, in FY 2006 at 50 percent of their FY 2002 apportionment,
and in FY 2007 at 25 percent of their FY 2002 apportionment.
GROWING AND HIGH DENSITY STATES FORMULA FACTORS,
49 U.S.C 5340
New Growing States and High Density States Formula
Factors distribute funds to the urbanized area formula and rural formula
programs under new factors. One-half of the funds are made available
under the Growing States factors and are apportioned by a formula based
on state 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 factors distribute 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.
RURAL FORMULA PROGRAM, 49 U.S.C. 5311
SAFETEA-LU 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 percent 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.
The sliding scale federal match under the federal highway program for
states with a high percentage of federal lands is applicable under the
section 5311 program. The current practice of requiring the Secretary
of Labor to use a special warranty for section 5333 employee protective
arrangements (formerly known as section 13(c)) is now codified in law.
The Rural Transportation Assistance Program (RTAP) is funded with a
2 percent set aside of the Rural Formula program rather than from the
Research program as under current law. Up to 15 percent of such funds
can be used by FTA to carry out national projects. Rural Formula program
apportionments will include funds apportioned from the Growing States
program.
TRANSIT ON INDIAN RESERVATIONS, 49 U.S.C.
5311(c)
Indian tribes are added as eligible recipients for rural formula funds,
and a portion of rural formula funding is set aside each year for Indian
tribes - $8 million in FY 2006 and rising to $15 million by FY 2009.
ELDERLY INDIVIDUALS AND INDIVIDUALS WITH DISABILITIES
PROGRAM, 49 U.S.C. 5310
SAFETEA-LU 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 expanded authority to use
up to 33 percent of the funds apportioned under section 5310 for operating
costs improves services to elderly individuals and individuals with
disabilities. Four of the states in the pilot program are specified
in law - Wisconsin, Alaska, Minnesota, and Oregon - along with three
other states to be selected by the Secretary.
NEW FREEDOM PROGRAM, 49 U.S.C. 5317
A new program called the New Freedom Program will 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 will be apportioned using a formula based on
the disabled population in a state, with 60 percent of the funds apportioned
to urbanized areas with populations larger than 200,000, 20 percent
to states for use in urbanized areas of fewer than 200,000, and 20 percent
to states for use in rural areas. Funds will 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 law's legislative history specifies that employee protective arrangements
under section 5333 (formerly known as section 13(c)) do not apply to
this new program.
JOB ACCESS AND REVERSE COMMUTE (JARC) PROGRAM,
49 U.S.C. 5316
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 lowincome
and welfare recipients with 60 percent of funds going to urban areas
with more than 200,000 population, 20 percent for urban areas with fewer
than 200,000 population, and 20 percent to rural areas. SAFETEA-LU contains
report language directing 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.
Coordination is required 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.
Capital Investment Programs
Capital Investment programs provide funds for transit
capital projects that meet specific criteria either by allocation where
the project is named or by apportionment under a formula. Capital Investment
Projects include the New Starts, Fixed Guideway Modernization, and Bus
and Bus Facilities programs. For authorization of amounts for SAFETEA-LU,
however, Fixed Guideway Modernization and Bus and Bus Capital programs
are included under authorizations for Formula and Bus Capital Programs
beginning in FY 2006.
NEW STARTS PROGRAM, 49 U.S.C. 5309
SAFETEA-LU does not change the basic New Starts program or the current
federal share of 80 percent. A new Small Starts Program is created for
smaller projects with a federal share of less than $75 million (see
below).
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 10 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 apilot 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 thecontrol
of a contractor in making its evaluations. The New Starts program is
identified as section 5309(m)(1)(A) in FY 2005 andsection 5309(m)(2)(A)
beginning in FY 2006. In prior years it had been identified as section
5309(m)(1)(B).
The law includes four categories of earmarks: specific annual funding
levels for projects that have Full Funding Grant Agreements; a listing
without any funding amounts for projects authorized forfinal design
and construction grants; a listing without any funding amounts for projects
authorized for preliminary engineering grants; and a listing with maximum
amounts during the SAFETEA-LU period for additional projects not categorized
by their status.
Also under the New Starts program, $20 million is made available annually
for ferry boats or related facilities for projects in Alaska and Hawaii.
SMALL STARTS PROGRAM, 49 U.S.C. 5309(e)
A new "Small Starts" (Capital Investment Grants Less
Than $75,000,000) program would provide funding for smaller projects
with a federal New Starts share of less than $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 may not total more than $250 million. Simplified procedures
and criteria apply to the program. The program will be funded with a
$200 million takedown from the New Starts apportionment annually beginning
in FY 2007.
ALTERNATIVES ANALYSIS, 49 U.S.C. 5339
A new Alternatives Analysis programs provides $25 million
annually beginning in FY 2006 for new fixed guideway investment alternatives
analyses. Earmarks are included for FY 2006 and FY 2007.
FIXED GUIDEWAY MODERNIZATION PROGRAM, 49 U.S.C.
5309
The Fixed Guideway Modernization program is unchanged.
It isclassified as a formula program for authorization in SAFETEA-LU
but remains in the section 5309 Capital Investment program and is identified
as section 5309(m)(1)(B) in FY 2005 and section5309(m)(2)(B) beginning
in FY 2006. In prior years it had been identified as section 5309(m)(1)(A).
Fixed Guideway Modernization apportionment factors in section 5337 are
not changed.
BUS AND BUS FACILITIES PROGRAM, 49 U.S.C.
5309
Bus and Bus Facilities is classified as a formula program
for authorization in SAFETEA-LU but remains in the section 5309 Capital
Investment program and is identified as section 5309(m)(1)(C) inFY 2005
and section 5309(m)(2)(C) beginning in FY 2006. SAFETEA-LU makes few
changes to the program, but provides significant increases in funding.
Some 600 earmarks are included in this section; these earmarks cover
about half of the Bus and Bus Facilities program resources in each fiscal
year through FY 2009. A new intermodal facilities program 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.
In addition, $10 million is now available annually under the Bus Program
for ferry boats or related terminals with the funds earmarked for specific
projects.
Research
The research programs are generally unchanged. The
Transit Cooperative Research Program grows 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 from the national research program: 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 $1 million 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.
Other Programs
CLEAN FUELS PROGRAM, 49 U.S.C. 5308
The Clean Fuels grant program is reauthorized with some modifications.
Grants would be provided for the purchase of clean fuels buses, including
clean diesel vehicles (up to 25 percent of grants annually), in certain
non-attainment areas and areas trying to maintain compliance with clean
air standards. Grants are discretionary.
ALTERNATIVE TRANSPORTATION IN PARKS AND PUBLIC
LANDS PROGRAM, 49 U.S.C. 5320
SAFETEA-LU establishes a new program to develop publictransportation
in National Parks, with the goal of improving mobilityand reducing congestion
and pollution. The Departments of Transportation and Interior will work
cooperatively to develop and select capital or planning projects. Employee
protective arrangements under section 5333 (formerly known as section13(c))
do not apply to this new program.
PROJECT MANAGEMENT OVERSIGHT (PMO), 49 U.S.C.
5327
The takedown for Project Management Oversight is increased
to 0.75 percent for section 5307 UZA Formula funds and to 1.0 percent
forsection 5309 Capital Investment programs. New 0.5 percent PMO takedowns
will apply to section 5305 Planning, section 5310 Elderly Persons and
Persons with Disabilities, and section 5320 Alternative Transportation
in Parks and Public Lands programs. The 0.5 percent PMO takedown for
section 5311 Rural funds remains the same.47;Safety and security
management48; are added to project management and oversight review
requirements.
Other Transit- Related Programs
NON-REGULATORY NOTICE AND COMMENT PERIOD,
49 U.S.C. 5334 (l)
The law adds a new section that requires FTA to subject non-regulatory
substantive policy statements that impose a binding obligation on recipients
to a 60-day public review notice and comment period.
CHARTER BUS, 49 U.S.C. 5323(d)
SAFETEA-LU 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 representing public and private interests 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 to
be 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.
EMPLOYEE PROTECTIVE ARRANGEMENTS, 49 U.S.C
5333 (FORMERLY KNOWN AS SECTION 13(c))
Employee protective arrangements, formerly known as
section "13(c)," do not apply 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 (DOL) "Las
Vegas" decision relating to contractor-to-contractor issues in cases
involving buses as embodied in DOL letters dated September 21 and November
7, 1994. Further, the administrative special warranty for section 5311
programs is now codified in law and grants for purchase of like-kind
equipment do not have to be referred to DOL prior to certification.
BUY AMERICA, 49 U.S.C. 5323(j)
Language is included in SAFETEA-LU requiring FTA to
conduct a rulemaking on the Buy America program to clarify that the
microprocessor waiver is limited to computers and similar devices; to
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 to clarify that
it is the certification submitted with a final offer that applies to
a negotiated procurement.
BUS DEALERSHIP REQUIREMENT, 49 U.S.C. 5325(i)
The law 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.
CONTROLLED SUBSTANCES AND ALCOHOL MISUSE TESTING,
49 U.S.C. 5331
The law provides flexibility to permit a transit system to comply
with one DOT modal drug and alcohol testing program rather than having
to comply separately with different DOT modal drug and alcohol testing
programs.
ELIGIBLE CAPITAL EXPENSES, 49 U.S.C. 5302(a)(1)
The definition of an eligible capital project for mass
transportation improvement is expanded by adding construction, renovation,
and improvement of intercity bus and intercity rail stations and terminals.
New eligible capital project categories are added: crime prevention
and security including security and emergency response plans, chemical
and biological agent detection, emergency response drills, and security
training for employees; establishing a debt service reserve; and mobility
management. Mobility management is described as "projects for improving
coordination among public transportation and other transportation service
providers", and could include, among other things, the employment of
personnel to coordinate the full array of transportation options through
a clearinghouse function. Further, 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.
USE OF ADVERTISING AND SOCIAL SERVICE CONTRACT
REVENUE TOWARDS LOCAL MATCH
The legislation allows additional funds to be used
for the local match. Advertising and concession revenues can be used
to match Urbanized Area Formula funds. Amounts appropriated or otherwise
made available to a department or agency of the Government (other than
the Department of Transportation) that are eligible to be expended for
transportation can be used to match Elderly and Disabled, Rural, JARC,
and New Freedom grants. Funds from section 403(a)(5)(C)(vii) of the
Social Security Act (42 U.S.C. 603(a)(5)(C)(vii)) can be used to match
Urbanized Area Formula, Elderly and Disabled, Rural, JARC, and New Freedom
grants. Amounts received under a service agreement with a state or local
social service agency or private social service organization can be
used to match Elderly and Disabled, Rural, JARC, and New Freedom grants.
Proceeds from the issuance of revenue bonds can be used to match Urbanized
Area Formula and Capital Investment grants for capital projects.
TRANSIT PASS COMMUTE BENEFIT, SECTION 3049
OF SAFETEA-LU
The law preserves the current limitation for qualified
transportation fringe benefits for transit and vanpools at $105 per
month (with indexing for inflation). It also codifies Executive Order
#13150 which requires federal agencies in the Washington, D.C. National
Capital Region to provide employees with tax-free transit benefits to
cover commuting costs up to the maximum allowed by law. It extends benefits,
beyond those provided in the Executive Order, to federal employees in
the National Capital Region who work for the legislative and judicial
branches or for independent agencies.
VOLUMETRIC EXCISE TAX CREDIT FOR ALTERNATIVE
FUELS, SECTION 11113 OF TITLE XI OF SAFETEA-LU
Two new excise tax credits are made available under
SAFTEA-LU's tax title for alternative fuels and alternative fuel mixtures
used in highway-use vehicles. The law provides a 50 cent per gallon
tax credit for alternative fuel or gasoline gallon equivalents for non
liquid alternative fuels. While this tax credit would be provided to
the producer of such fuels, some of the benefit of the credit may accrue
to the users, including transit and other municipal agencies that are
not taxpaying entities.
Selected Highway Provisions
The following selected sections of the highway provisions
are included because of their significance to the federal transit program
but represent only a small portion of the highway provisions in SAFETEA-LU.
CONGESTION MITIGATION AND AIR QUALITY IMPROVEMENT
(CMAQ), 23 U.S.C. 149
A new requirement is established that states and MPOs
give priority consideration to projects and programs for diesel retrofits,
other cost-effective emission reduction activities, and cost-effective
congestion mitigation activities that provide air quality benefits.
Also established is a requirement to evaluate and assess a representative
sample of CMAQ projects to determine the direct and indirect impact
of the projects on air quality and congestion levels; and ensure the
effective implementation of the program. The Environmental Protection
Agency (EPA) is to publish a list of approved diesel retrofit technologies
and the emission reduction effectiveness and cost-effectiveness of the
technologies.
BUS AXLE WEIGHT EXEMPTION, SECTION 1023(h)(1)
OF THE INTERMODAL SURFACE TRANSPORTATION EFFICIENCY ACT OF 1991
The current exemption from axle-weight limitations
for transit buses and over-the-road buses is extended through September
30, 2009.
FERRY BOATS AND TERMINALS,
23 U.S.C. 149
A new program for the construction of ferry boats and
terminals is established, funded at $38 million in FY 2005 and increasing
annually to $67 million by FY 2009. Additional sums as may be necessary
are provided. A national ferry database will be established. Included
in program priorities are ferries that carry the greatest number of
passengers in passenger-only service.
TOLLING PROVISIONS, SECTION 1604 OF SAFETEA-LU
AND 23 U.S.C. 166
An express lane demonstration program is established
which permits excess revenues to be used for transit purposes eligible
under Title 49. SAFETEA-LU gives states more flexibility to use road
pricing strategies as a congestion management and transportation finance
tool. States are given latitude in the operation of High Occupancy Toll
(HOT) lanes, allowing priority consideration for use of toll revenues
for alternatives (such as transit) to single occupant vehicles. In addition,
the Federal Highway Administration's Value Pricing Pilot Program is
continued and enhanced along with several other pilot and demonstration
programs to encourage congestion strategies aimed at air quality, energy
conservation and efficiency. New provisions allow state/local governments
expanded use of "toll credits" for local match for federal highway and
transit projects - revenues from toll facilities may be counted as local
matching funds regardless of whether or not federal funds were or are
used for the toll facility.
TRANSPORTATION, COMMUNITY, AND SYSTEM PRESERVATION
PROGRAM, SECTION 1117 OF SAFETEA-LU
Funding for the Federal Highway Administration Transportation,
Community, and System Preservation Program (TCSP) is increased from
the current $25 million annual amount to a new annual levelof $61 million.
Transit and highway projects that enhance transit oriented development
are eligible, along with other broad categories of projects that improve
the efficiency of thetransportation system and reduce its impacts on
the environment.
NATIONAL SURFACE TRANSPORTATION POLICY AND
REVENUE STUDY COMMISSION, SECTION 1909 OF TITLE I OF SAFETEA-LU
A new commission will be created to study and report
on thecurrent condition and future needs of the surface transportation
system, and potential funding to meet such needs. It specifically identifies
public transportation infrastructure and facilities as part of the surface
transportation system to be considered, and directs the commission to
consider needs related to emergency preparedness and evacuation using
the system and alternatives to address environmental concerns associated
with the system.
NATIONAL SURFACE TRANSPORTATION INFRASTRUCTURE
FINANCING COMMISSION, SECTION 1142 OF TITLE XI OF SAFETEA-LU
Another commission will be created to complete a study
of the Highway Trust Fund revenues and the impacts of these revenues
for future highway and transit needs. Among the considerations will
be alternative approaches to generating revenues for the Highway Trust
Fund.
VISION
Be the leading force in advancing public transportation.
MISSION
To strengthen and improve public transportation, APTA serves and leads
its diverse membership through advocacy, innovation, and information
sharing.
American Public Transportation Association
1666 K Street, NW
Suite 1100
Washington, DC 20006
www.apta.com
APTA EXECUTIVE COMMITTEE
| Richard A. White |
Chair |
| Ronald L. Barnes |
First Vice Chair |
| Paul P. Skoutelas |
Secretary-Treasurer |
| George F. Dixon III |
Immediate Past Chair |
| VICE CHAIRS |
| Richard J. Bacigalupo |
Government Affairs |
| Mattie P. Carter |
Transit Board Members |
| Michael P. DePallo |
Rail Transit |
| Nathaniel P. Ford, Sr. |
Management and Finance |
| Fred M. Gilliam |
Bus and Paratransit Operations |
| Kim R. Green |
Business Members |
| John M. Inglish |
Research and Technology |
| William D. Lochte |
Business Member-at-Large |
| Gary W. McNeil |
Canadian Members |
| Jeffrey A. Nelson |
Small Operations |
| Joshua W. Shaw |
State Affairs |
| David L. Turney |
Marketing |
| Kathryn D. Waters |
Commuter and Intercity Rail |
| Linda S. Watson |
Human Resources |