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US Senate Transportation Authorization – T4A Update

The US Senate continues to debate the federal surface transportation bill this week, with a series of votes taken last night by the full Senate. Individual senators filed over 200 amendments and T4America continues to track the latest developments on those amendments. We have compiled a brief update on where things stand and provide information on three amendments that we know would spur innovation, access and local control. 

**It is rumored that another manager’s amendment package will be offered in the near future. T4A will update this information as needed.

Transportation Funding Timeline Update: Transportation funding expires this Friday and the House announced this morning that they intend to pass a 3-month extension to match the Senate’s; setting up a new October 29 transportation funding deadline.

Last week, Majority Leader McConnell (R-KY) introduced what is expected to be the first of potentially two or more manager’s amendment packages. Manager’s packages serve as legislative vehicles to modify a piece of legislation in committee or on the floor, wholesale. This first manager’s package makes a number of changes, including maintaining the historic 80/20 highway and transit funding split; increases funding for the FTA High Intensity/Fixed Guideway State of Good Repair Formula program by $100 million (paid for by cutting TIFIA and the Assistance for Major Projects by $50 million each) and requires 50% of the off-system bridge set-aside funding in the STP program to be used on bridges that are not on the federal-aid highway system.

Last Sunday, the Senate dispatched a couple of non-germane amendments, but voted to allow Senators to vote on whether or not to tie the Ex-Im Bank authorization to the highway authorization. Late last night, the Senate voted and approved that plan (64-39).

Under this new modified manager’s package, T4A believes that it is unlikely that few if any of the 200+ plus amendments filed by Senators will be considered or voted on. However, we do anticipate the introduction of a third manager’s amendment which will reflect additional changes. T4A continues to work to increase local control, innovation and access to jobs and opportunity through three primary amendments. They include the following:

  1. Wicker-Booker STP local control amendment (corresponding fact sheet by USCM on changes to metro level funding)
  2. Murray TIGER authorization amendment
  3. Donnelly Job Access planning amendment (search for S. Amdt 2434, 2435 and 2436; this one is messy, our apologies)

Update: 5 Issues to Watch (for more information, please refer to T4A’s Member post on 7/23/15):

Pay-fors – Since the last post on 7/23/15, a number of items have shifted. A few provisions, considered poison pills, were removed, including the $2.3 billion that came from denying those with felony warrants social security benefits and $1.7 billion that came from rescinding unused funds for TARP’s Hardest Hit Fund. These rescissions leave the authorization with $43.7 billion, all of which are generated outside of the traditional transportation-user fee system. The measure would provide enough additional HTF revenues to provide the first three years of highway and transit investment, but Congress would be required to raise additional resources before October 2018 to be able to fund the final three years of the DRIVE Act’s authorized spending.

Transit funding – Changes in the manager’s package increased the levels of transit funding to be 24% of the authorized levels overall and 24% of any new funding generated annually.

Freight –The DRIVE Act creates a robust freight planning process that directs states to examine efficient goods movement and identify projects needed to improve multimodal freight movement. However, despite instituting a multi-modal freight planning process, the new National Highway Freight Program would require 90% of the funding go to highway-only projects rather than to multimodal projects using a performance-based system. What impact will this have?

Take, for example, the non-highway freight needs in the State of California. Ten percent of California’s funding would be only $9.3 million in 2016, growing to $23 million in 2021. Comparitively, one multimodal project at the Port of Long Beach in California to remove a railroad bottleneck and build more on-dock rail capacity cost the Port $84 million. T4A views this policy as a missed opportunity and not consistent with T4A’s freight policy.

Overall, due to removal of the TARP Hardest Hit Fund, the bill’s overall investment levels needed to be reduced. Under the first manager’s package, the freight program was set to receive $1.5 billion in FY2016 growing to $2 billion in FY2018. The program would now receive $991.5 million in FY2016 and increase to 1.9 billion in Fy2018.

Passenger Rail – No changes to note from the last update on 7/23/15.

Assistance for Major Projects (AMP) – Funding decreased by $50 million per year to increase funds for FTA’s High Intensity/Fixed Guideway State of Good Repair Formula program. AMP would now be authorized at $250 million in FY16 and rise to $400 million in FY2021.

*NEW* TIFIA – The initial manager’s package introduced early last week would cut TIFIA funding from $1 billion to $500 million per year. Removing the TARP Hardest Hit Fund and other payfors required additional cuts, which senate authorizers took out of the TIFIA program. Those cuts, plus the increase to the FTA’s High Intensity/Fixed Guideway State of Good Repair program, result in an overall authorized funding level for TIFIA at just $300 million per year over the life of the bill.

Senate committee passes transportation appropriations bill; negotiations with House on the horizon

The annual transportation (and housing) appropriations bill adopted Thursday by Senate appropriators contains some good news for transportation. But as in years past, it provides more money than the House’s version, setting the stage for contentious negotiations that could erase gains for key programs — especially competitive grants and new transit construction. Senate appropriators also noted that if the trust fund goes bankrupt, as it is projected to do as soon as next month, there won’t be any money to appropriate.

Senate Appropriations Chairman Patty Murray (D-WA) wasted no time noting that elephant in the room during yesterday’s proceedings.

“To deal with the uncertainty [of the highway trust fund], states are already bracing for a worst case scenario and some states like Arkansas are already putting projects on hold,” she said. (We also noted, the same fact about Arkansas that we called out in our recent report on the impacts of trust fund insolvency.)

“This crisis could hurt workers in the construction industry who depend on jobs repairing our roads and bridges, and if Congress does not act, a shortfall in the highway trust fund will put at risk the funding we have put forth in the THUD bill.”

Because the appropriators in the House and Senate aren’t responsible for finding a revenue solution – that rests with the Senate Finance and House Ways and Means Committees – they have to go ahead and set funding levels for this year expecting the looming crisis does not unfold. The senators showed confidence that their colleagues in the finance committees will, at minimum, find a short-term fix to keep the trust fund solvent.

“Because we had a reasonable allocation, we were able to avoid the painful cuts the House bill would make to housing programs, transit, and Amtrak, as well as TIGER,” said Senator Murray.

Not only does the Senate provide slightly more overall funding for transportation for the next fiscal year (FY15 begins this October), their funding level stands in contrast to the House’s version in a few key areas. (See full funding chart below.)

“Our bill continues to support the TIGER program, an effective initiative that helps to advance transportation infrastructure projects,” said Senator Susan Collins (R-ME), ranking member of the Senate Appropriations transportation subcommittee. The Senate bill which provides $550 million for another round of TIGER discretionary grants, including up to $35 million for TIGER transportation planning activities which Transportation for America and our coalition of elected, chambers of commerce and businesses support.

“I know that a lot of us have seen how the TIGER projects create jobs and support economic growth in our home states and I wish we could have funded it at a higher level,” she added. The TIGER program is wildly popular and scores of Republicans and Democrats alike have written numerous letters to USDOT supporting various applications in their districts.

“Once again, we’re encouraged to see the commitment to provide reliable funding for transportation each year from the appropriators in the Senate, and especially the leadership from Chairwoman Murray to ensure that we continue funding transformative programs like TIGER and new transit construction,” said T4 America Chair John Robert Smith. “Our cities and towns and metro areas are facing huge challenges of connecting people to jobs and vice versa, and ensuring that we fund a range of transportation options and innovative locally-driven projects that will help these places address those challenges head-on.”

Senator Mikulski noted that Senate leadership is “in conversation to bring a clustered appropriations bill to the floor during the week of June 16,” and after that the House and the Senate will attempt to reconcile these two bills. The largest stumbling block may be the that the Senate has $2.4 billion (4.6 percent) more in total discretionary spending than their House counterparts. Time will tell, but we are encouraged by the Senate’s approach and leadership shown by Senators Murray and Collins.

FY14

USDOT actual
GROW AMERICA Act for FY15 (President's 4-year proposal)HOUSE FY15 THUD Proposal ( & difference vs FY14 actual)SENATE FY15 THUD Proposal (& difference vs FY14 actual)DIFFERENCE between House & Senate FY15 proposals
Federal-Aid Highways$40.26B$48.062B$40.26B$40.3B (+$40M than FY14)+$40M in Senate proposal
Transit Formula Grants$8.6B$13.914B$8.6B$8.6B-
Transit 'New & 'Small Starts'$1.943B$2.5B$1.691B (-$252M than FY14)$2.163B (+$220M than FY14)+$472M in Senate proposal
TIGER$600M$1.25B$100M (-$500M than FY14)$550M -($50M than FY14)+$450M in Senate proposal
Amtrak Operating$340MProposes to roll passenger rail into two new programs that total $4.775 billion*$340M$340M-
Amtrak Capital$1.05Bsame as above$850M (-$200M than FY14)$1.04B (-$10M than FY14)+$190M in Senate proposal
High speed rail$0same as above$0$0-

*Up to $35 million is available for planning activities in the Senate FY15 THUD proposal.
**The FY15 Administration Budget (Grow America Act) consolidates existing rail programs into 2 new programs (Rail Service Improvement Program and Current Passenger Rail Service).

Key Senate committee recognizes the importance of passenger rail, TIGER, transit and repairing our nation’s bridges

Less than a week after the release of The Fix We’re In For — our report on the nation’s bridges showing that one in nine US bridges are structurally deficient — a key Senate committee passed a yearly funding bill that provides new money for repairing these deficient bridges across the country.

The Senate’s Transportation, Housing and Urban Development appropriations bill reported out of the Appropriations Committee this week specifically provides more money to invest in repairing bridges on key corridors.

The $500 million in the bill dedicated specifically to bridge repair is a step in the right direction toward prioritizing the repair of our more than 66,000 structurally deficient bridges.

Transportation for America commends Senator Patty Murray, Senator Susan Collins and the rest of the committee for recognizing the importance of investing in all of our bridges — not just a small segment of them. That’s a key difference between this $500 million and the policy created in last summer’s transportation bill (MAP-21.)

As we pointed out in last week’s report, 90 percent of the country’s structurally deficient bridges were left behind by MAP-21, which made tens of thousands of deficient bridges ineligible for receiving repair dollars from the largest highway program.

8 - Repair Program

For the $500 million for bridge repair in this appropriations bill, almost all highway bridges are eligible to receive dollars for repair, not just a small slice of our country’s bridges. The committee recognizes that the connections these other bridges make in our transportation network are often just as important as our biggest, busiest interstate bridges.

In addition, this money for bridge repair will be provided via a competitive grant program to ensure that it goes to the most vital needs on corridors that are crucial to moving goods and people, in urban and rural areas alike.

Yet new money for bridge repair is far from the only highlight in yesterday’s appropriations bill. There’s also $1.75 billion for rail programs, with $1.45 billion of that intended for Amtrak operations and capital investments – coming a year after Amtrak carried over 31 million passengers and grew their ridership more than 60 percent since 1998, according to the committee release, and another $100 million for passenger rail capital grants to improve service.

The competitive TIGER grant program also got another round of full funding to the tune of $550 million — grants for innovative transportation projects that often cross state lines and combine transit, freight, safety or other diverse uses, and are often hard to fund under older, rigid federal and state programs.

There is also almost $2 billion for investing in new or expanded public transportation across the country through the New Starts transit program.

This bill will head to the full Senate next, but there will be contentious negotiations ahead with the House, which has lower overall funding levels and drastically different ideas for some of these specific programs: No extra money for bridge repair, a significant cut for Amtrak, slightly less money for public transportation and zero dollars for the popular TIGER grant program.

What does the FREIGHT Act really mean for our freight and ports?

Port of Oakland originally uploaded by ingridtaylar

There were a few questions bouncing around via Twitter and elsewhere about the new FREIGHT Act introduced yesterday by Senators Lautenberg, Murray and Cantwell. We issued a joint press release with a few other groups, but it’s worth spelling out in plain language some of the benefits of the bill.

For context, it’s worth understanding how freight transportation policy currently works now to understand how much of an improvement this bill would provide.

Today, there is no national freight program or specific national policy. There’s no dedicated federal transportation money that states, regions or ports can spend to improve throughput or operations at ports, intermodal facilities and freight corridors. And among the traditional federal transportation programs, freight rail projects in particular (much like passenger rail) aren’t eligible projects.

So if a port is congested or wants to expand, there’s little available federal money to spend directly on rail or any other mode. Your choices are highways or highways. When a state or port does spend to improve operations, there is no accountability to make sure they’re actually reducing port/freight congestion, moving freight faster, or reducing air pollution in surrounding communities —  a significant issue of environmental justice.

Under this new bill, there would finally be a coordinated national policy for freight and ports across the country, and for the first time public health and air quality surrounding freight hubs and facilities become strong criteria for awarding dollars.

No matter what ports decide to spend money on to improve their operations, they’d have to consider air quality, greenhouse gas reductions, and noise and water pollution in the surrounding communities with future federal investments. On top of that, there would be a merit-based grant program for projects that do the best job of improving freight operations while using money most effectively and hitting the benchmarks laid out in the bill.

Benchmarks? The goals in the bill set a powerful framework for accountability, spelling out what they money should accomplish, so taxpayers can know that their money is being spent wisely.

  • Reduce delays of goods and commodities entering into and out of intermodal connectors that serve international points of entry on an annual basis.
  • Increase travel time reliability on major freight corridors that connect major population centers with freight generators and international gateways on an annual basis.
  • Reduce by 10 percent the number of freight transportation-related fatalities by 2015.
  • Reduce national freight transportation-related carbon dioxide levels by 40 percent by 2030.
  • Reduce freight transportation-related air, water, and noise pollution and impacts on ecosystems and communities on an annual basis.

For example, a port in a coastal city in California would have to consider the impacts on the health of those communities surrounding the port. Would investing in more freight rail capacity ease congestion, lower overall emissions, and reduce local air pollution? These are the kinds of questions that would have to be answered.

“A truly multimodal national freight program that is accountable to measurable performance targets and benchmarks is something the U.S. has needed for a long time,” said James Corless, director of Transportation for America in our press release.

“We applaud Senator Lautenberg for recognizing that our freight system can move our goods from coast to coast and power the economy while also being part of the solution for many of our most pressing problems: air quality, dangerous emissions, oil dependence, and congestion on our highways and interstates, to name just a few.”