[Senate Report 111-61] [From the U.S. Government Publishing Office] Calendar No. 132 111th Congress Report SENATE 1st Session 111-61 ====================================================================== PUBLIC TRANSPORTATION EXTENSION ACT OF 2009 _______ July 29, 2009.--Ordered to be printed _______ Mr. Dodd, from the Committee on Banking, Housing, and Urban Affairs, submitted the following R E P O R T [To accompany S. 1533] The Committee on Banking, Housing, and Urban Affairs, having had under consideration an original bill (S. 1533) to provide an extension of public transportation programs authorized under the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users having considered the same, reports favorably thereon and recommends that the bill do pass. I. INTRODUCTION On July 23, 2009, the Senate Committee on Banking, Housing, and Urban Affairs met in executive session and considered an original bill, entitled the ``Public Transportation Extension Act of 2009,'' a bill to extend public transportation programs authorized under the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (Pub. L. 109-59). The Committee voted by voice vote to favorably report the bill to the Senate. II. BACKGROUND The Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) expires on September 30, 2009. Without a reauthorization or extension of the current law, Congress cannot fund public transportation programs after September 30, 2009. This bill extends the current law through March 31, 2011. III. SECTION-BY-SECTION ANALYSIS Section 1: Short title This section provides the Short Title of the bill ``Public Transportation Extension Act of 2009''. Section 2: Allocation of funds for planning programs This section provides that the formula for allocating planning funds between metropolitan planning programs and State planning programs will continue through March 31, 2011. Section 3: Special rule for urbanized area formula grants This section extends until March 31, 2011, the special rule permitting some urbanized areas with populations over 200,000 to use funds for operating. Section 4: Allocating amounts for capital investment grants This section provides that the allocations for small starts, ferry boats, the fuel cell bus program, intermodal terminals and bus testing will continue at the 2009 authorized levels through March 31, 2011. Section 5: Apportionment of formula grants for other than urbanized areas This section provides that the apportionment for the tribal transit program will continue at the 2009 authorized level through March 31, 2011. Section 6: Apportionment based on fixed guideway factors This section provides that the apportionment for fixed guideway modernization will continue at the 2009 authorized levels through March 31, 2011. Section 7: Authorizations for public transportation This section provides that funding for the Metropolitan and Statewide Planning (section 5305); Urbanized Area Formula Program (section 5307); Clean Fuels Grant Program (section 5308); Fixed Guideway Modernization (section 5309(m)(2)(B)); Bus and Bus-Related Equipment and Facilities (section 5309(m)(2)(C)); Elderly Individuals and Individuals with Disabilities (section 5310); Other Than Urbanized Area Formula Program (section 5311); Job Access and Reverse Commute (section 5316); New Freedom (section 5317); Paul S. Sarbanes Transit in the Parks Program (section 5320); National Transit Database (section 5335); Alternatives Analysis (section 5339); Growing States and High Density States (section 5340); Over the Road Bus Accessibility Program (section 3038 of TEA-21); Capital Investment Grants (section 5309(m)(2)(A); Research Programs (section 5338(d)); and FTA Administration (section 5338(e)) will continue at the 2009 authorized levels through March 31, 2011. Section 8: Amendments to the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users This section extends until March 31, 2011, at the 2009 authorized levels, the following programs: Public-Private Partnership Pilot Program (section 3011); Elderly Individuals and Individuals with Disabilities Pilot Program (section 3012); Obligation Ceiling (section 3040); and Allocations for National Research and Technology Programs (section 3046). In addition, Project Authorizations for New Fixed Guideway Capital Projects entering preliminary engineering and final design (section 3043) are extended until March 31, 2011. IV. COMMITTEE CONSIDERATION The Committee on Banking, Housing and Urban Affairs met in executive session on July 23, 2009, and by a voice vote ordered the bill reported. V. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE Section 11(b) of the Standing Rules of the Senate, and Section 403 of the Congressional Budget Impoundment and Control Act, require that each committee report on a bill contain a statement estimating the costs of the proposed legislation. The Congressional Budget Office has provided the following cost estimate: S. 1533--Public Transportation Extension Act of 2009 Summary: The Public Transportation Extension Act of 2009 would extend through March 31, 2011, the federal transit programs authorized by the Safe, Accountable, Flexible, Efficient Transportation Equity Act (SAFETEA-LU; Public Law 109-59). The bill would set the amount of contract authority (the authority to incur obligations in advance of appropriations and a mandatory form of budget authority) at $8.4 billion for 2010 and at $4.2 billion for the period from October 1, 2010, through March 31, 2011. The bill also would authorize discretionary appropriations of $3.0 billion over the same period for several programs that do not receive contract authority. Consistent with the rules in the Balanced Budget and Emergency Deficit Control Act for constructing the baseline, CBO assumes that funding provided by the bill for the first six months of fiscal year 2011 would continue at the same rate through the rest of that year and in each of the following years. Hence, CBO estimates that enacting the bill would result in baseline contract authority totaling $84 billion over the 2010-2019 period. That funding level represents an increase of $1 billion ($100 million per year) above the amounts of contract authority for public transportation programs currently projected in CBO's baseline for the 2010-2019 period. CBO expects that most spending for public transportation programs will continue to be controlled by limits on annual obligations set in appropriation acts. Consequently, the changes in contract authority would not increase mandatory outlays. CBO estimates that, subject to the enactment of annual obligation limitations for the 18-month period of program extension, as well as the discretionary appropriations that would be authorized by the bill, implementing this legislation would increase discretionary spending by $15.4 billion over the 2010-2019 period. CBO estimates that enacting the bill would not affect revenues. The bill contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA) and would impose no costs on state, local, or tribal governments. Estimated cost to the Federal Government: The estimated budgetary impact of the legislation is summarized in the following table. The costs of this legislation fall within budget function 400 (transportation). -------------------------------------------------------------------------------------------------------------------------------------------------------- By fiscal year, in billions of dollars-- ------------------------------------------------------------------------------------------------------- 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010-2014 2010-2019 -------------------------------------------------------------------------------------------------------------------------------------------------------- CHANGES IN DIRECT SPENDING Budget Authority................................ 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.5 1.0 Estimated Outlays............................... 0 0 0 0 0 0 0 0 0 0 0 0 CHANGES IN SPENDING SUBJECT TO APPROPRIATION Trust Fund Spending for Transit Obligation Limitation....................... 8.4 4.2 0 0 0 0 0 0 0 0 12.6 12.6 Estimated Outlays........................... 1.3 3.1 2.9 2.1 1.6 1.1 0.3 0 0 0 11.0 12.4 Other Transit Programs...................... Authorization Level......................... 2.0 1.0 0 0 0 0 0 0 0 0 3.0 3.0 Estimated Outlays........................... 0.4 0.8 0.7 0.5 0.3 0.2 0.1 0 0 0 2.7 3.0 Total Changes............................... Authorization Level/Obligation.............. 10.4 5.2 0 0 0 0 0 0 0 0 15.6 15.6 Limitation.................................. Estimated Outlays........................... 1.7 3.9 3.6 2.6 1.9 1.3 0.4 0 0 0 13.7 15.4 -------------------------------------------------------------------------------------------------------------------------------------------------------- Estimated discretionary outlays reflect use of funds under the 2010 and part-year 2011 obligation limitations estimated by CBO. (Outlays stemming from additional contract authority shown in the table would be authorized in future legislation that covers the period after the 18-month program extension.) Basis of estimate: Direct spending The Public Transportation Extension Act of 2009 would extend through March 31, 2011, public transportation programs authorized by SAFETEA-LU, the current authorization for transportation programs. For transit programs funded by the Highway Trust Fund, the bill would set the amount of contract authority (the authority to incur obligations in advance of appropriations and a mandatory form of budget authority) at $8.4 billion for 2010 and at $4.2 billion for the period from October 1, 2010, to March 31, 2011. The bill would provide contract authority (from the transit account of the Highway Trust Fund) for transit programs at the same level authorized in SAFETEA-LU for 2009, notwithstanding any rescissions or cancellations of contract authority either in SAFETEA-LU or any other act. SAFETEA-LU provided $8.4 billion in contract authority for 2009. However, the 2009 Omnibus Appropriations Act (Public Law 111-8) contained rescissions of the 2009 program's contract authority that totaled $100 million. The Balanced Budget and Emergency Deficit Control Act specifies that the baseline projection for the cost of an expiring mandatory program with current-year outlays in excess of $50 million be assumed to continue at the program level in place when it is scheduled to expire. As a result, CBO has incorporated the rescission in contract authority in its baseline for transit programs over the 2010-2019 period. Combined with the rescissions contained in the 2009 Omnibus Appropriations Act, contract authority available for public transportation programs is $8.3 billion in 2009, and CBO projects that same amount in subsequent years. As a result, CBO estimates that the bill would add $100 million (the difference between $8.4 billion and $8.3 billion) of contract authority annually to the baseline over the 2010-2019 period. CBO expects that spending from contract authority available to public transportation programs will be controlled by limits on annual obligations set in appropriation acts. Consequently, the changes in contract authority would not increase mandatory outlays. Spending subject to appropriation CBO's estimate of discretionary spending under this legislation reflects the proposed limitation on obligations that would be provided under the bill and does not include projections of that authority beyond the time period covered in this legislation. The bill would extend the obligation limitations contained in SAFETEA-LU--$8.4 billion for 2010 and $4.2 billion for the first six months of 2011. CBO estimates outlays from those obligation limitations would be $12.4 billion over the 2010-2019 period. In addition, for fiscal year 2010 and the first six months of 2011, the bill would authorize the appropriation of $3.0 billion for other transit programs--capital investment grants and research and university research centers--as well as administrative costs of the Federal Transit Administration. Based on historical spending for those programs, and subject to appropriation of the specified amounts, CBO estimates that implementing those provisions would cost $3.0 billion over the 2010-2019 period. In total, CBO estimates that implementing the legislation would increase discretionary costs by $1.7 billion in 2010 and $15.4 billion over the 2010-2019 period. Intergovernmental and private-sector mandates: The bill contains no intergovernmental or private-sector mandates as defined in UMRA and would impose no costs on state, local, or tribal governments. Estimate prepared by: Federal Costs: Susan Willie; Impact on State, Local, and Tribal Governments: Ryan Miller; Impact on the Private Sector: Jacob Kuipers. Estimate approved by: Theresa Gullo, Deputy Assistant Director for Budget Analysis.