By Kevin McCarty
May 19, 2008

A key House transportation panel approved new legislation to authorize additional federal transit funding to help increase transit services and combat rising transit fares, as transit providers throughout the nation struggle to sustain and expand transit services to meet surging transit use fueled by rising gasoline prices.

The legislation, “Saving Energy Through Public Transportation Act of 2008” (H.R. 6052), was approved May 15 by the House Transportation and Infrastructure Committee, led by Chairman James L. Oberstar (MN). Among other provisions, H.R. 6052 authorizes $1.7 billion over two years (FYs ‘08 and ’09) in supplemental formula grants to transit providers, increases the federal matching share for clean fuel and alternative fuel buses, and modifies existing rules applicable to commute benefits.

“As the price of gas approaches $4 a gallon, more and more commuters are choosing to ride the train or the bus to work rather than drive alone in their cars. It is a priority of this Committee to increase the use of public transportation by providing incentives for commuters to choose transit options. If more people utilize the various public transportation options that are available to them, we can reduce energy consumption and reliance on foreign oil, as well as decrease greenhouse gas emissions,” said Oberstar in comments on the legislation.

The bill’s increased funding authorizations for transit providers were adopted last year during action by the House of Representatives on the energy bill; these provisions were not incorporated into the final energy legislation, which became law in December. The Senate has yet to adopt any legislation raising funding commitments to transit providers in action on legislation during the 110th Congress.

One week earlier, a bipartisan group of panel leaders introduced new legislation (H.R. 6003) to expand federal funding commitments to the nation’s intercity passenger rail corporation or Amtrak, raising both operating and capital commitments to improve intercity rail services throughout the nation to meet growing demand for these services.

Overall, the legislation authorizes $14.3 billion over five fiscal years, including $3 billion in Amtrak operating funds and $6.7 billion in capital resources, a portion of which would support state-led intercity passenger rail projects. Specifically, the legislation would authorize a competitive grant program at $350 million annually, providing 80 percent federal funding to states seeking to develop higher-speed passenger rail services (at least 110 mph). The measure also provides about $1 billion to support Amtrak efforts to comply with the Americans with Disabilities Act.

A companion bill, “Rail Infrastructure Development and Expansion Act for the 21st Century” or RIDE-21 (H.R. 6004), authorizing bonding authority and tax credit-backed bonds for high-speed rail projects, was introduced as well. The RIDE-21 bill has been introduced in previous sessions of Congress.

The timing of the introduction of these measures was intended to commemorate the 38th anniversary of the beginning of Amtrak service as well as the 139th anniversary of the “golden spike” completing the transcontinental railroad, which was recognized May 10 through National Train Day, with The U.S. Conference of Mayors joining as a sponsoring organization.

The Senate ceased debate on legislation renewing programs and activities of the Federal Aviation Administration, after failing to muster the 60-vote majority needed to begin formal debate on the measure. Efforts to move forward with a modified version of an earlier Committee-approved bill, “Aviation Investment and Modernization Act,” failed on a 49-42 vote.

The Senate impasse essentially guarantees that a new President and Congress will have to decide the fate of a growing array of aviation challenges before the nation; for many local governments with airport facility needs, meeting growing capital needs through an increase in Passenger Facility Charges (PFCs) will be among the key issues in this future debate.

FAA’s programs are already operating under a short-term extension measure which expires next month. Congress will soon have to being work on legislation to continue FAA’s activities into next year, at which point new renewal bills will have to be developed and moved through the process. This extension measure is certain to mean reduced federal funding commitments to a range of aviation needs, including less grant funding under the Airport Improvement Program in support of airport capital projects.

Also included in the pending Senate bill were provisions addressing non-aviation issues that further complicated the debate and efforts to secure the necessary supermajority vote to limit debate and move toward final action on the legislation.