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The Source for Public Transportation News and Analysis March 9, 2012
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NEWS HEADLINES
House, Senate Produce Divergent Bills; Senate Vote Will Stretch Until Next Week
BY CHRISTIAN RICHARDS, APTA Legislative Analyst-Government Affairs

As members of the House returned to their districts for a  work period, Republican Leaders and the Transportation & Infrastructure Committee were working to bolster support for a modified version of their surface transportation authorization bill. The leadership and committee recently committed to restoring the motor fuels tax revenue currently dedicated to public transportation. That revised measure could be voted on by House members after they return March 19.

The Senate continues to move forward on a vote-a-thon focusing on a number of amendments to the $109 billion transportation authorization. Amendment votes are expected to continue on Tuesday,  March 13 before the bill moves to a final vote. While there have been a number of amendments that were considered non-germane to the bill, Senate Leadership reached an agreement that put them on a path toward a vote on final approval.

A Republican Conference met on March 7 and expressed its support for House Transportation and Infrastructure (T&I) Committee Chairman John L. Mica's (R-FL) long-term transportation bill.

“House leaders and I agree that the five-year transportation measure approved by the Committee in February is the best option for a job-creating bill to improve our infrastructure,” Mica said, calling the conference a “productive discussion.”

While the Republican Conference decided to stick with the five-year bill, it will be advanced with a “few changes, including the financing of public transit from the Highway Trust Fund.” No details were included in the brief press release issued after the meeting, on transit funding or other issues. This was the latest development as Passenger Transport went to press.

In the House
On Feb. 3, the House Transportation and Infrastructure (T&I) Committee reported out a marked-up version of H.R. 7, the American Energy and Infrastructure Jobs Act. This bill authorizes federal surface transportation programs and replaces SAFETEA-LU, the authorization bill that originally expired on Sept. 30, 2009, and its numerous extensions—the current one of which expires March 31.

Close examination of early drafts of the legislative text showed there would be major policy changes. While such issues as project streamlining and program consolidation were consistent with changes for which APTA had advocated, others—in particular the dismantling of the Mass Transit Account of the Highway Trust Fund and removal of dedicated revenues for public transit from the federal motor fuels excise taxes—were unexpected and shocking.

Since President Ronald Reagan’s first term in office, public transportation has received a portion of the motor fuels tax revenue per each gallon of fuel sold in the U.S. However, there is an inherent risk of a reduced revenue stream as Americans both drive less and drive more efficient vehicles (including electric cars), thus reducing the amount of overall taxes paid.

The details of H.R.7, the underlying legislative vehicle, became clearer on Feb. 9, when the House Ways and Means Committee reported out H.R. 3864, the American Energy and Infrastructure Jobs Financing Act.

H.R. 3864, which would be added to H.R.7 as the funding title, altered public transportation funding in two very significant ways. First, it eliminated the Mass Transit Account and directed the 2.86 cents per gallon currently dedicated to it into the Highway Account. Second, the bill provided a one-time appropriation to the new Alternative Transportation Account, intended to replace the dedicated and ongoing motor fuels tax revenue that now funds public transportation. With a variety of highway programs commingled with public transportation programs, it was clear that the one-time appropriation would be inadequate to meet the funding requirements of communities nationwide.

It is impossible to overstate the importance of dedicated and predictable funding for public transportation investment provided by the motor fuels excise taxes. APTA’s largest concern, on behalf of its members, is that funding for public transportation remains unclear after the one-time appropriation provided for in the bill expires. The ramifications could be widespread, resulting in skyrocketing bond rates for public transit projects and capital investments across the public transportation sector becoming prohibitively expensive.

In the Senate
On the Senate side, the Committee on Banking, Housing, and Urban Affairs, which has jurisdiction over public transportation programs, unanimously reported its title of the Senate’s surface transportation language on Feb. 2. Along with the bipartisan Environment and Public Works (EPW) Committee’s title, reported in December 2011, and the Finance Committee’s funding title, it looked as though the Senate’s bill was going to pass easily with bipartisan support, a hallmark of transportation legislation over the years.

That did not happen. The Senate bill, given to the open nature of the chamber’s rules, has experienced some delays related to both germane and non-germane amendments.

Late last week, Senate Majority Leader Harry Reid (D-NV) released a manager’s amendment that incorporated dozens of the proposed amendments—an attempt to make more progress on agreements and rein in the process. A cloture vote on Reid’s amendment failed March 6. It is now expected that Senate leaders will negotiate a package of amendments to vote on rather than attempting to vote on each amendment.

Even though the Senate has a reputation for moving very slowly, an agreement between Republican and Democratic leadership and committee chairs could see floor action on the bill develop quickly. Going forward, APTA will actively be addressing developments and issues.
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