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107th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 107-644
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TRANSIT OPERATING FLEXIBILITY ACT
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September 5, 2002.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Young of Alaska, from the Committee on Transportation and
Infrastructure, submitted the following
R E P O R T
[To accompany H.R. 5157]
[Including cost estimate of the Congressional Budget Office]
The Committee on Transportation and Infrastructure, to whom
was referred the bill (H.R. 5157) to amend section 5307 of
title 49, United States Code, to allow transit systems in
urbanized areas that, for the first time, exceeded 200,000 in
population according to the 2000 census to retain flexibility
in the use of Federal transit formula grants in fiscal year
2003, and for other purposes, having considered the same,
report favorably thereon without amendment and recommend that
the bill do pass.
Background and Need
The Federal Transit Administration apportions formula funds
authorized in 49 United States Code, section 5307 to designated
recipients (State departments of transportation, responsible
local officials and publicly owned operators of mass
transportation) in urbanized areas with more than 50,000 in
population according to a formula developed in the Intermodal
Surface Transportation Efficiency Act (Public Law 102-240). For
urbanized areas between 50,000 and 200,000 in population, this
formula is based on population and population density. For
areas over 200,000 in population, this formula is based on
population, population density, and vehicle revenue miles as
reported to the National Transit Database. Section 5307(b) of
49 U.S.C. authorizes the Secretary of Transportation to make
grants of formula funds for transit-related operating expenses
in urbanized areas with a population of less than 200,000.
However, urbanized areas with populations greater than 200,000
can use formula funds for capital equipment, facilities, and
associated maintenance items only--not for operating expenses.
Urbanized area population designations are determined by
the decennial census. For purposes of programs administered by
the Federal Transit Administration, section 5302(a)(17) of 49
U.S.C. defines urbanized areas as encompassing an area so
designated by the Secretary of Commerce (through the U.S.
Bureau of the Census). The notice announcing qualifying
urbanized areas as determined by the 2000 Census of Population
and Housing for the United States, Puerto Rico, and the Island
Areas was published in the Federal Register on May 1, 2002.
Because of substantial changes in the criteria used by the
Bureau of the Census to identify urbanized areas between the
1990 and 2000 Census periods, there were an unusually high
number of significant urbanized area changes, including new
urbanized areas, areas formed by splits or mergers, name
changes, and areas with significant boundary changes. Among
these changes were a total of 52 communities that had been
classified as under 200,000 in population in the 1990 Census
that went to being classified as over 200,000 in the 2000
Census, either because the city grew, or was absorbed into a
larger nearby metropolitan area, or was combined with another
nearby small city. Many of the public officials and transit
providers in these 52 urbanized areas were unaware of their
change in status, and had not prepared for the loss of
flexibility in the use of their federal transit funds. For some
transit systems that were not anticipating this change, the
loss of operating flexibility will be devastating, perhaps even
shutting the doors of some of the agencies, thus causing an
immediate loss of public transportation services in the area.
H.R. 5157 will provide a one-year grace period for the
affected communities that, for the first time, exceeded 200,000
in population according to the 2000 Census. The bill allows the
Secretary of Transportation to make formula grants to transit
operators in these communities using the new urbanized
areapopulation designations and relevant vehicle revenue miles data
while permitting transit providers in the affected communities to use
up to the amount apportioned in fiscal year 2002 for operating
purposes. This continued flexibility gives these transit operators time
to adjust to their new urbanized area status and make any necessary
changes to capital and operating budgets for fiscal year 2004.
Summary of the Legislation
Section one amends section 5307 of title 49, United States
Code, to allow transit systems in urbanized areas that, for the
first time, exceeded 200,000 in population according to the
2000 Census to retain flexibility in the use of federal transit
formula grants in fiscal year 2003. The bill strikes the last
sentence of the paragraph in section 5307(b)(1), which refers
to operating flexibility for fiscal year 1998 funds. A new
section 5307(2) is inserted that creates a special rule for
fiscal year 2003, providing increased flexibility for urbanized
areas that are now more than 200,000 in population under the
2000 Census if (i) the urbanized area had a population of less
than 200,000 under the 1990 Census; (ii) a portion of the
urbanized area was a separate urbanized area of less than
200,000 under the 1990 Census; or (iii) the area was less than
50,000 under the 1990 Census. A maximum amount to be available
for operating purposes is set at a level of no more than the
total amount apportioned to the affected urbanized areas in
fiscal year 2002.
Legislative History and Committee Consideration
The issue of ``crossing 200,000'' in population according
to the 2000 Census urbanized area designations was discussed in
a hearing of the Highways and Transit Subcommittee of the
Committee on Transportation and Infrastructure on June 20, 2002
(Federal Transit Administration Capital Grants Programs). The
Honorable Jennifer Dorn, Administrator of the Federal Transit
Administration, was questioned regarding the impact of these
changes and the need for action before the beginning of fiscal
year 2003, when FTA is required to use the most recent census
data in the formula grant apportionment formulas. On June 28,
2002, Committee Chairman Don Young wrote to Administrator Dorn
to ask how the FTA would implement the language that was
subsequently introduced on July 18 as H.R. 5157, with 38
original cosponsors. Subcommittee action on the bill was
waived, and the Committee on Transportation and Infrastructure
met in open markup session on July 24, 2002 and approved H.R.
5157 without amendment, by voice vote.
Committee Oversight Findings
With respect to the requirements of clause 3(c)(1) of rule
XIII of the Rules of the House of Representatives, the
Committee's oversight findings and recommendations are
reflected in this report.
Cost of Legislation
Clause 3(c)(2) of rule XIII of the Rules of the House of
Representatives does not apply where a cost estimate and
comparison prepared by the Director of the Congressional Budget
Office under section 402 of the Congressional Budget Act of
1974 has been timely submitted prior to the filing of the
report and is included in the report. Such a cost estimate is
included in this report.
Compliance with House Rule XIII
1. With respect to the requirement of clause 3(c)(2) of
rule XIII of the Rules of the House of Representatives, and
308(a) of the Congressional Budget Act of 1974, the Committee
references the report of the Congressional Budget Office
included below.
2. With respect to the requirement of clause 3(c)(3) of
rule XIII of the Rules of the House of Representatives and
section 402 of the Congressional Budget Act of 1974, the
Committee has received the following cost estimate for H.R.
5157 from the Director of the Congressional Budget Office.
U.S. Congress,
Congressional Budget Office,
Washington, DC, July 30, 2002.
Hon. Don Young,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 5157, a bill to
amend section 5307 of title 49, United States Code, to allow
transit systems in urbanized areas that, for the first time,
exceeded 200,000 in population according to the 2000 census to
retain flexibility in the use of federal transit formula grants
in fiscal year 2003, and for other purposes.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Rachel
Milberg.
Sincerely,
Barry B. Anderson
(For Dan L. Crippen, Director).
Enclosure.
CONGRESSIONAL BUDGET OFFICE COST ESTIMATE
H.R. 5157--A bill to amend section 5307 of title 49, United States
Code, to allow transit systems in urbanized areas that, for the
first time, exceeded 200,000 in population according to the
2000 census to retain flexibility in the use of federal transit
formula grants in fiscal year 2003, and for other purposes
Summary: H.R. 5157 would allow certain communities to use
some of their grants from the Federal Transit Administration
(FTA) on operating expenses as well as capital projects.
Assuming appropriation of amounts authorized for those grants,
CBO expects that implementing the bill would increase how
quickly the communities spend their grants; however, CBO
expects that net spending from the grant program would not
change over the 2003-2007 period.
Under current law, FTA provides grants to urbanized areas
for capital projects under the Formula Grants program.
Communities with a population of less than 200,000 according to
the most recent census, can use some of their grants for
operating expenses. Information from the 2000 census changed
the status of certain communities that receive grants under
this program. For example, some communities that were under
this threshold before the 2000 census are now over it. Other
communities that were considered separate urbanized areas under
the threshold before the 2000 census are now considered part of
a larger urbanized area. H.R. 5157 would allow those
communities to continue using their grants for fiscal year 2003
for operating expenses.
H.R. 5157 would not affect direct spending or receipts;
therefore, pay-as-you-go procedures would not apply. H.R. 5157
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 H.R. 5157 is shown in the following table.
The costs of this legislation fall within budget function 400
(transportation).
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By fiscal year, in millions of dollars--
--------------------------------------------
2003 2004 2005 2006 2007
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SPENDING SUBJECT TO APPROPRIATION
Spending Under Current Law for FTA's Formula Grants Program:
Authorization Level 1.......................................... 3,989 0 0 0 0
Estimated Outlays.............................................. 3,215 2,805 1,820 1,223 762
Proposed Changes:
Authorization Level............................................ 0 0 0 0 0
Estimated Outlays.............................................. 10 2 -5 -4 -3
Spending Under H.R. 5157 for FTA's Formula Grants Program:
Authorization Level............................................ 3,989 0 0 0 0
Estimated Outlays.............................................. 3,225 2,807 1,815 1,219 759
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1 The 2003 authorization level is the amount authorized for the Formula Grants program under current law. The
authorization for that program expires after 2003.
Basis of estimate: For this estimate, CBO assumes that H.R.
5157 will be enacted near the end of fiscal year 2002 and that
the amount currently authorized for the FTA grant program will
be appropriated for 2003. Changes in estimated outlays are
based on historical spending patterns of the Formula Grants
program and information from FTA.
CBO estimates that about 50 communities would be eligible
to use their transit grants for operating expenses under H.R.
5157. Although several of those communities would use their
grants only for capital projects, CBO estimates that about half
of the communities would take advantage of the increased
flexibility under H.R. 5157. On average, communities could
receive about $1 million to cover their operating costs.
Because grants to cover operating expenses are expended more
quickly than grants for capital costs, CBO expects that
implementing H.R. 5157 would increase the overall rate of
spending from the FormulaGrants program; however, CBO expects
that net spending from the program would not change over the 2003-2007
period.
Pay-as-you-go considerations: None.
Intergovernmental and private-sector impact: H.R. 5157
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: Rachel Milberg; Impact
on State, Local, and Tribal Governments: Greg Waring; Impact on
the Private Sector: Cecil McPherson.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
Constitutional Authority Statement
Pursuant to clause (3)(d)(1) of rule XIII of the Rules of
the House of Representatives, committee reports on a bill or
joint resolution of a public character shall include a
statement citing the specific powers granted to the Congress in
the Constitution to enact the measure. The Committee on
Transportation and Infrastructure finds that Congress has the
authority to enact this measure pursuant to its powers granted
under article I, section 8 of the Constitution.
Federal Mandates Statement
The Committee adopts as its own the estimate of federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act. (Public Law 104-4).
Preemption Clarification
Section 423 of the Congressional Budget Act of 1994
requires the report of any Committee on a bill or joint
resolution to include a statement on the extent to which the
bill or joint resolution is intended to preempt state, local or
tribal law. The Committee states that H.R. 5157 does not
preempt any state, local, or tribal law.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act are created by this
legislation.
Applicability to the Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act. (Public Law
104-1).
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
SECTION 5307 OF TITLE 49, UNITED STATES CODE
Sec. 5307. Urbanized area formula grants
(a) * * *
(b) General Authority.--(1) The Secretary of Transportation
may make grants under this section for capital projects and to
finance the planning and improvement costs of equipment,
facilities, and associated capital maintenance items for use in
mass transportation, including the renovation and improvement
of historic transportation facilities with related private
investment. The Secretary may also make grants under this
section to finance the operating cost of equipment and
facilities for use in mass transportation in an urbanized area
with a population of less than 200,000. [The Secretary may make
grants under this section from funds made available for fiscal
year 1998 to finance the operating costs of equipment and
facilities for use in mass transportation in an urbanized area
with a population of at least 200,000.]
(2) Special rule for fiscal year 2003.--
(A) Increased flexibility.--The Secretary may make
grants under this section, from funds made available to
carry out this section for fiscal year 2003, to finance
the operating cost of equipment and facilities for use
in mass transportation in an urbanized area with a
population of at least 200,000 as determined under the
2000 decennial census of population if--
(i) the urbanized area had a population of
less than 200,000 as determined under the 1990
Federal decennial census of population;
(ii) a portion of the urbanized area was a
separate urbanized area with a population of
less than 200,000 as determined under the 1990
Federal decennial census of population; or
(iii) the area was not designated as a
urbanized area as determined under the 1990
Federal decennial census of population.
(B) Maximum amounts.--Amounts made available pursuant
to subparagraphs (A)(i) and (A)(ii) shall be no more
than the amount apportioned in fiscal year 2002 to the
urbanized area with a population of less than 200,000
as determined in the 1990 Federal decennial census of
population. Amounts made available pursuant to
subparagraph (A)(iii) shall be no more than the amount
apportioned under this section for fiscal year 2003.
[(2)] (3) In a transportation management area designated
under section 5305(a) of this title, amounts that cannot be
used to pay operating expenses under this section also are
available for a highway project if--
(A) * * *
* * * * * * *
(C) the metropolitan planning organization in
approving the use under subparagraph (A) determines
that the local transit needs are being addressed.
[(3)] (4) A project for the reconstruction of equipment and
material, each of which after reconstruction will have a fair
market value of at least .5 percent of the current fair market
value of rolling stock comparable to the rolling stock for
which the equipment and material will be used, is a capital
project for an associated capital maintenance item under this
section.
* * * * * * *
