STATEMENT OF

THE HONORABLE PETER M. ROGOFF,
ADMINISTRATOR
FEDERAL TRANSIT ADMINISTRATION

ON

THE CAPITAL INVESTMENT GRANTS (NEW STARTS) PROGRAM

BEFORE THE
SUBCOMMITTEE ON HIGHWAYS AND TRANSIT
U.S. HOUSE OF REPRESENTATIVES

DECEMBER 11, 2013

Chairman Petri, Ranking Member Holmes Norton, and Members of the Committee:

Thank you for the opportunity to highlight the success of the Federal Transit Administration’s (FTA) Fixed-Guideway Capital Investment Grants Program (commonly referred to as New Starts). I also want to thank this Committee for supporting authorizing legislation that has helped to strengthen and enhance the efficiency, integrity, and impact of this program over the years, including, most recently, through the Moving Ahead for Progress in the 21^st Century Act (MAP-21).

Since its inception nearly four decades ago, the New Starts program has grown into one of the Federal government’s most transformational investment partnerships, typically funding roughly half the cost of competitively selected new and extended light rail, commuter rail, heavy rail, and bus rapid transit (BRT) systems built in the United States. Working closely with state and local partners—in response to community-based demand for new and expanded transportation choices—FTA has signed 120 Full Funding Grant Agreements for New Starts projects over the course of the program’s history and 20 grant agreements for Small Starts projects since the separate inception of that program (for projects seeking $75 million or less) in 2005. Taken together, these investments support the construction of much needed capital transit systems that improve mobility and access to jobs for millions, while expanding the capacity of our transportation networks and contributing to cleaner, greener neighborhoods, and improving the quality of life for residents and local businesses.

The Administration strongly supports the New Starts program as an important ally in the effort to ensure that Americans willing to work hard in this country are offered a chance to succeed in the 21st century economy; to provide a safe and secure transportation safety net for senior citizens as they age in place; and to help revitalize cities and towns all across the nation that were hit hard by the deepest economic recession since the Great Depression. To achieve these objectives we must build efficient, modern, and connected transportation systems that offer citizens more and better ways to travel between work, home, school, medical care, and recreational activities that are the lifeblood of any community.

Looking toward the future, our nation will require more, not fewer, transportation choices to ensure we can grow and compete in the 21^st century and accommodate the nation’s changing demographics and preferences. The U.S. Census projects that the country will add roughly 120 million people between now and 2060—expanding the nation’s population by about a third. The number of people 65 and older will more than double over the next 50 years, and these aging citizens want to remain mobile and independent for as long as possible. Meanwhile, our nation’s most populous cities are continually choking on congestion.  The only way we will generate an economy that can create jobs for these additional citizens is by addressing this congestion to better move people and freight.  And the FTA New Starts program is part of that solution.

The Administration has sought to increase funding for the New Starts program in its budget proposals each of the last six fiscal years because the President recognizes that in the face of social changes like these, we cannot simply build our way out of our infrastructure crisis with roads alone. We need a balanced approach—an approach that is inclusive, where investments in roadways, bridges, and airports are complemented by flexible public transit options linking suburbs with cities, and rural counties with employment centers. FTA is also approached by communities that not only want to improve public transit options within their jurisdiction, but also to promote transit investments that connect one city with another city via regional public transit services, thereby linking major job centers. For example, the Central Corridor light rail system now under construction links downtown Minneapolis with St. Paul; and the initial Sun Rail line will link downtown Orlando with Seminole and Volusia counties in Florida, among others.

The New Starts program also has broad-based support among governors, mayors, local council leaders and their constituents across party lines in every region of the country because they have experienced first-hand what this program delivers. Indeed, New Starts is responsible for introducing major transit systems in cities where high-quality transit was virtually nonexistent a generation ago. In Dallas, for example, residents agreed to a small tax increase to fund alternatives to severe congestion. Today, Dallas operates more miles of light rail transit service than any city in North America—helping to transform one of the most auto-centric cities in the nation and unleash tremendous economic development.  The Dallas-based Green Line, funded in part with a $700 million New Starts construction grant agreement, has generated $5.6 billion in economic impact and 48,000 long-term jobs.

In fast-growing Charlotte, North Carolina, construction is under way to extend the LYNX Blue Line light rail service from downtown Charlotte to the city’s University of North Carolina campus—effectively doubling the length of the current line, which takes 16,000 riders a day to many of the Fortune 500 employers based in Charlotte, while providing an alternative to sitting in traffic on I-85.

Across the Wasatch Front in Utah, New Starts investments have contributed to the state’s ambitious and recently completed plan to build 70 miles of transit rail in seven years, resulting in four new light rail lines and a commuter rail service that have more than doubled the state’s transit capacity at a time when the population is growing more than twice as fast as most other states.

And in Arizona, the New Starts program contributes to the Valley Metro light rail system that connects two of Arizona’s fastest-growing metro regions, central Phoenix and the suburbs of Tempe and Mesa, spurring new residential and commercial development along the corridor while providing convenient, reliable access to Arizona State University and Sky Harbor International Airport.

FTA’s partners in the New Starts program—state transportation leaders and local transit providers— estimate that transit-related construction on capital projects funded over the last two years alone will generate more than 165,000 good local jobs, while opening the door to many more new permanent jobs generated by new housing, commercial, and retail development that occurs alongside transit corridors.

At the same time, in cities where demand for existing rail transit service has grown significantly in recent years, such as Boston, Chicago, New York, San Francisco, and Washington, D.C., New Starts investments have been critical to extending service and augmenting capacity. Maintaining a Federal commitment to the nation’s oldest rail transit systems in the most densely populated regions of the country is vitally important to keeping these major urban economies moving forward, in a sustainable way, in the 21^st century—which is why FTA has continually proposed boosting funding not just for the expansion of these systems but for critical investments to keep these essential systems in a state of good repair. 

In addition to the many successful rail transit projects funded through New Starts, communities increasingly turn to the program for help building BRT systems that, done right, provide expedited service to major employment centers, while helping to take more cars off local highways and provide a comfortable, convenient ride for commuters. The New Starts program has funded a growing number of BRT projects in cities such as El Paso; Grand Rapids; Cleveland; Seattle; Eugene, OR; Kansas City; Austin; and between Hartford and New Britain, Connecticut. In FY2010, FTA made history by committing Federal funds (through the companion Small Starts program) to the first rural BRT service in the nation, enabling thousands of workers from rural Colorado, near Roaring Fork, to save hundreds of dollars on gas each month and reduce wear-and-tear on commuters driving to jobs in Aspen—roughly 70 miles round-trip. The newly opened service attracted 64,000 riders in September 2013 alone, and has cut commuting times in half.

To preserve the integrity of the New Starts program as its impact grows around the nation, FTA has worked diligently to improve its capacity to oversee and manage the billions of dollars traditionally awarded annually to state and local transportation providers, and ensure that taxpayers’ transportation dollars are wisely spent.  The Administration has been committed to streamlining and consolidating core programs to improve efficiency and become even more responsive to local transportation priorities—while saving money along the way. Specifically, we recognize it is vitally important to strike the right balance between good stewardship and the need to advance capital transportation projects in a reasonable timeframe. We have never lost sight of the fact that the New Starts program brings taxpayer dollars back to communities to improve the quality of life in neighborhood after neighborhood, and all along Main Street. We must be responsible stewards of those dollars.

That is why, in recent years, FTA has taken additional steps to improve the New Starts program’s accountability, to streamline its administration, and to allocate resources to projects that truly make a difference. These efforts are greatly enhanced by provisions in MAP-21 that acknowledge the reality of operating in a highly resource-constrained environment. MAP-21 places new emphasis on improving the efficiency of grant program opera­tions through consolidation of some programs; streamlines some grant processes; and renews focus on improved public transportation access, operating condi­tions, and safety.

For example, managing project costs is a key area where FTA has made strides, both under the prior authorization, SAFETEA-LU, and under MAP-21. New Starts project sponsors are required to produce an annual Before and After Study that assesses the impact of their New Starts projects, compares predicted versus actual construction costs, service levels, project scope and ridership after projects have opened, and provides other performance-based metrics to FTA. These studies are enormously useful in generating “lessons learned” and informing FTA’s decisions on future proposed projects under MAP-21.  FTA is grateful to the Committee for supporting requirements like these studies, which contribute to the likelihood that New Starts projects will be started on time and finished on budget—without waste, fraud, or abuse of taxpayer dollars. In an effort to provide transparency, previous studies are posted on the FTA’s public website.

In a recent analysis of six New Starts projects, all but one generated higher than predicted ridership and completed construction on par with the estimates. These studies have been instrumental in helping FTA refine and implement a valuable new risk assessment approach that builds in unallocated contingency. The information in past and future studies will greatly aid FTA’s ability to determine appropriate levels of contingency funding for project budgets; whether predicted operations and maintenance costs fall within a reasonable range; and when, in the Capital Investment Grant lifecycle, it is most advantageous for FTA to conduct detailed reviews, including risk and financial capacity assessments.

The New Starts process has also been significantly improved as a result of streamlining efforts and a change in the way project benefits are evaluated. In January 2010, for instance, then-Transportation Secretary Ray LaHood sought to change how major transit projects were selected to receive Federal financial assistance from FTA. As part of this initiative, FTA rescinded restrictions issued in March of 2005, in order to place more emphasis on the full range of factors that would be considered when evaluating transit projects seeking Federal matching dollars. By giving greater emphasis to evaluation criteria concerning environmental benefits and local economic impact, we made it possible for FTA to consider a variety of projects that might better meet a community's needs, including streetcars and rapid bus services.

Congress has also called on FTA to reduce the time required to get capital transit projects constructed and reduce the administrative burden on project sponsors. We’ve taken numerous steps over the last five years to achieve these goals, laying a solid foundation for additional improvements under MAP-21. In January 2012, about nine months prior to the enactment of MAP-21, President Obama called on Federal agencies to cut red tape in construction projects. Accepting that challenge, then-Transportation Secretary Ray LaHood proposed to streamline the process and make funding decisions more responsive to local needs. FTA fully recognized that its process for selecting big capital projects, while historically successful, was generally more complicated than might be necessary. We therefore pursued a number of common-sense changes that will help local project sponsors potentially shave six months or more off the time that is now required to move major projects through the New Starts pipeline.

This streamlining effort marked the culmination of more than two years of public outreach to identify ways to cut red tape, reduce regulations for communities seeking Federal funds, and help get critical transit projects under construction more quickly without compromising a stringent project review process. The changes are estimated to save project sponsors almost $500,000 annually by requiring less time-consuming paperwork, eliminating the need for the sponsor to compare their project to a hypothetical baseline alternative that the community does not want, and allowing certain projects to pre-qualify for automatic ratings. Such changes will make a big difference to communities throughout the United States that need more mobility, and better access to jobs, sooner rather than later. And we anticipate additional efficiencies and the benefits of accelerated project delivery will be realized as a final rule implemented in January 2013 triggers additional improvements.

Since MAP-21 went into effect, FTA has continued to improve processes related to New Starts planning. For example, FTA recently rolled out a new tool to help project sponsors estimate transit trips on proposed projects. The new method, known as Transit STOPS, is expected to reduce the length of time needed to develop ridership forecasts from as much as two years to as little as two weeks—and save project sponsors as much as $1 million on consulting and administrative costs normally incurred during this process.

Another significant change in MAP-21 that will impact the New Starts program’s effectiveness is the greater emphasis placed on performance based planning. In brief, this effort to impose greater levels of accountability and discipline on the metropolitan planning process will require communities to prioritize and justify their commitments to projects competing for increasingly limited resources. Additionally, under MAP-21, states are expected to significantly strengthen the performance and financial rigor of their transportation plans and programs, and increase their collaboration with small urban areas (fewer than 200,000 in population), and non-metropolitan areas, whose transportation needs and priorities are incorporated as part of the statewide transportation planning process.

These areas of continuous improvement are coupled with a consistently rigorous application of oversight activities that include risk assessments, triennial reviews and financial management reviews of New Starts projects and project sponsors.  As a result, FTA has compiled an outstanding record as a responsible steward of Federal dollars.  Over the past 10 years, four of every five New Starts and Small Starts projects were completed well within their cost estimates and baseline schedules or are well on the way.  And a recent independent review of the FTA Capital Investment Grants Program by Deloitte Consulting found that FTA had zero improper payments in the billions of dollars of Federal grant funds awarded in the two years that were sampled, 2010 and 2012, meaning that virtually every Federal dollar committed to a New Starts project during that period was used in a responsible manner, for eligible purposes.

FTA’s ongoing efforts to scrutinize New Starts investments to ensure they are fiscally sound, and entail acceptable levels of risk, are especially important as local demand for these projects rises. In FY2011 and FY2012 combined, FTA signed more capital construction grant agreements for transit projects than in any two-year period in the agency’s history. And in FY2012 alone, FTA’s New Starts/Small Starts program provided more than $2 billion for capital projects to help build light rail, heavy rail, commuter rail, and BRT projects—a level of investment in keeping with prior years.

Unfortunately, recent budget cuts and spending reductions imposed by sequestration take a real toll on infrastructure construction—reducing construction-related job starts and imposing additional financial and social burdens on low-income families, seniors, and other transit-dependent populations that genuinely rely on transit as a life line to reach jobs, medical care, and other vital services.

In FY2013, FTA had more than 30 New Starts projects in the pipeline—backed by local project sponsors hoping to receive construction funding to support projected ridership levels exceeding half a million people daily. These proposed projects would collectively add more than 320 new miles of transit service to communities that need more robust transportation choices to address congestion, mobility, and the need for new economic growth. In Boston, for example, the proposed MBTA Green Line extension to the nearby city of Somerville would put 80 percent of Somerville residents within walking distance of a transit station—connecting thousands of residents to academia, jobs, and healthcare services.

But FTA was unable to make new funding commitments for any of these 30 projects—and for any new transit rail or BRT projects anywhere—for the first time in roughly 20 years. The final FY2013 appropriation for New Starts was $380 million below the President’s request. The reductions were partially attributed to the automatic spending reductions under sequestration. As a result, FTA reduced the FY2013 payout level of all existing construction grant agreements for major capital projects. Sequestration also adversely impacts local jurisdictions’ budgets as unanticipated finance charges accrue on major capital projects for which local governments must continue to build and pay invoices, while the Federal payments that local project sponsors had anticipated receiving are slowed down by late appropriations, and then reduced by sequestration. These delays in Federal payments often increase financing costs for state and local governments.

Current and future program cuts could also jeopardize Core Capacity projects. This new category of eligible projects—part of the Capital Investment Grants Program under MAP-21—must expand capacity by at least 10 percent in existing fixed-guideway transit corridors (such as subways and commuter rail) that are already at or above capacity today, or are expected to be at or above capacity within five years. There is tremendous pent-up demand for these targeted capacity expansions, but currently no additional funds have been provided for the program to help advance these projects. The need for these core capacity investments is demonstrated by the fact that four billion trips are made each year on transit systems in just six regions with rail service: New York; Washington, D.C.; Chicago; Boston; San Francisco; and Philadelphia.  These are not only the highest-demand transit systems; they are also among the oldest and most congested in the country. Improving these existing corridors to increase capacity to allow even a small increase of only three percent in transit trips would equate to more than 120 million trips annually. That gain in ridership would be equivalent to nearly half the ridership gains expected from New Starts projects in FTA’s pipeline today.

The Administration seeks to restore momentum to the Capital Investment Grants Program, and provide sufficient funding for the new Core Capacity eligibility under the program, in the proposed FY2014 budget. The President requests $19.91 billion in this budget to strengthen transit safety oversight, bring bus and rail transit infrastructure into a state of good repair, and provide new and expanded transit systems in communities nationwide. The President’s request highlights $9 billion for immediate transportation investments, including $500 million to fund the Core Capacity Program; $6 billion to address transit state-of-good-repair needs; and $2.5 billion for urban and rural transit programs. This budget request represents a strong commitment to effective implementation of MAP-21. In this proposed budget, FTA recommends funding 19 ongoing New Starts/Small Starts projects under construction in 10 states, completing the FTA funding commitment on five of these—some of which should have been completed in FY2013 but could not be because of the reduced appropriation.  The budget also recommends funding for eight new projects not yet under a construction grant agreement that were proposed for funding in prior years, but which did not receive funds under the reduced FY2013 appropriation. 

But these plans to restore progress on New Starts projects are far from certain in the current fiscally austere climate and in the face of additional, and potentially deeper, sequestration cuts. Therefore, the New Starts program is now at a crossroads. While the Administration remains committed to supporting the program, demand for these resources, coupled with reduced appropriations, continues to far exceed FTA’s ability to contribute on a predictable path. We have been proactive in allocating resources as judiciously as possible. We have reduced the Federal share of projects from 60 percent to 50 percent, on average, over the last 20 years. A Government Accountability Office report published  late last year found that for 25 New Starts projects examined between 2004 and 2012, state and local funding exceeded total Federal funding contributions, with the local share accounting for $18.6 billion, or more than half, of $33.8 billion in total project funding.

For the very largest projects (with total costs of $1 billion or more), the Federal share has fallen even further, to an average of about 33 percent per project. As a result, the Federal government is now leveraging nearly $3 billion annually in state and local funds for new fixed guideway projects and extensions—far more than the $300 million shouldered by local sponsors two decades ago. These investments reflect a willingness on the part of localities to fund important priorities. But it also raises questions about the ability of states with many competing financial priorities to continue doing so without additional Federal support.

In conclusion, our economy cannot continue to grow and compete without programs like New Starts. It has proven to be an effective catalyst for bringing taxpayer dollars back into communities for the infrastructure they need to attract new job-creating businesses, improve access to existing jobs, revitalize an aging downtown core, shorten commuting times for hard-working families, and give future generations a reason to settle down and build productive lives.

We look forward to working with Congress to obtain the funding levels needed to fully realize the potential of MAP-21, continue funding important major capital projects through our Capital Investment Grants Program, and ensure that millions of Americans have access to good transportation choices that create ladders of opportunity for our nation today and for generations to come.

STATEMENT OF

THE HONORABLE PETER ROGOFF
FEDERAL TRANSIT ADMINISTRATOR

BEFORE THE

COMMITTEE ON BANKING, HOUSING AND URBAN AFFAIRS
BANKING SUBCOMMITTEE ON
HOUSING, TRANSPORTATION, AND COMMUNITY DEVELOPMENT
U.S. SENATE

HEARING ON

HURRICANE SANDY

SEPTEMBER 18, 2013

Mr. Chairman, Ranking Member Moran, and Members of the Committee:

Thank you for inviting me to appear before you today to highlight the Federal Transit Administration’s (FTA) role in assisting communities devastated by Hurricane Sandy nearly one year ago. This historic storm triggered the worst public transit disaster in the history of the United States, disrupting more than half of our nation’s transit service at the height of the event, and impacting more than one-third of the nation’s ridership in the days following the storm.

The U.S. Department of Transportation (DOT) and FTA were highly proactive in addressing the challenges posed by the superstorm—and that posture made a tremendous difference in our ability to respond swiftly and responsibly, with the express goal of helping the region restore access to vital transit service to millions of riders who depend on it daily.

In the days preceding and immediately following the storm, FTA worked closely as part of the larger DOT effort to develop a rapid-response strategy to assist transit providers in the short-run, while laying the foundation for the responsible administration of federal-aid funds in the months ahead. DOT issued $59 million in quick-release emergency relief funds within weeks of the storm to get roads, bridges, and tunnels on the path toward recovery.  Working with the Federal Emergency Management Agency (FEMA), FTA executed two mission assignments to oversee and engage FTA staff and its project management oversight contractors to conduct continuing damage assessments and cost-validation work for both operating and capital costs associated with restoring and rebuilding transit capacity. Those mission assignments allowed FTA and FEMA to work side-by-side almost immediately after the storm to evaluate the situation on the ground and conduct preliminary damage assessments.

And we drew upon our regional staff to stand up a Regional Emergency Response Coordinator for the New England Region to support the DOT’s Emergency Support Function 1 under the National Response Framework. This provided daily on-the-ground monitoring and contact with the affected agencies to obtain a real-time view of challenges, needs, and progress. We also repositioned FTA staff to Joint Field Offices in New York and New Jersey to assist state and local governments and other infrastructure owners in the effort to restore transportation service. This level of response was accomplished even as FTA’s own New York-based regional office was taken completely off-line for two weeks as a direct result of the storm. 

These early joint efforts with FEMA and our experts on the ground allowed us to set responsible financial-aid goals, while also factoring in future insurance reimbursements the transit agencies would receive from their providers. Confident that help was on the way, the affected transit agencies did not hesitate to incur immediate expenses via in-house force accounts and third-party contracts so they could take necessary measures in the immediate aftermath of the storm to get the recovery effort started.

For example, within days of the storm, the New York Metropolitan Transportation Authority (MTA) and the Port Authority of New York/New Jersey began pumping over 65 million gallons of water from the New York City subway system and more than 125 million gallons of water from the World Trade Center site. By November 3, two of the East River tunnels on rail transit lines between Manhattan and Brooklyn, and Manhattan and Queens, were operational—contributing to the MTA’s ability to restore 80 percent of subway service very quickly.

FTA also assisted the Port Authority of New York/New Jersey in securing hard-to-find but essential equipment, like power circuit breakers, which were essential to reconnecting Port Authority Trans-Hudson (PATH) rail service between New Jersey and mid-town Manhattan, as well as the World Trade Center station in lower Manhattan, and the rest of the Northeast corridor. We worked directly with CTA in Chicago to obtain these parts and have them driven across the country to get those trains moving again.

And by May 30, 2013, the MTA had completed an extraordinary feat, restoring rail service for 35,000 riders who take the A Train from Long Island to Manhattan every weekday, thus reunifying Rockaway Peninsula with the rest of Queens. MTA was able to rebuild, test, and re-open several miles of rail in just seven months—an extraordinary feat, considering the complexity of the task.

On behalf of New Jersey Transit (NJT), FTA worked with FEMA through the General Services Administration’s Federal Acquisition service to procure 350 buses to temporarily replace lost rail service in New Jersey. This emergency service enabled commuters to access jobs in Hoboken, Weehawken, Jersey City, and Manhattan. Seventy of those buses were ready for service the first week of November 2012, just days after the storm hit.

We also supported efforts by NJT to restore service on major commuter rail lines, including the North Jersey Coast Line, the Gladstone Line, and the Morris Essex Line. And we encouraged NJT to contract extra ferry service to provide additional transportation service between New Jersey and New York. Special ferry service was put into place from the Hoboken Inter-Modal Transit terminal, which was severely damaged in the storm, to Pier 79 in midtown Manhattan; from Liberty State Park to World Financial Center in Lower Manhattan; and from Weehawken Terminal also to Pier 79.

FTA’s Emergency Response Program Strengthens Response Capabilities

None of these rapid, early accomplishments to restore service would have been possible if FTA did not have the proper mechanism in place to facilitate action. The Emergency Relief Program is that mechanism, and I commend the Committee for granting our request in the Moving Ahead for Progress in the 21^st Century Act (MAP-21) to establish this essential program. When we proposed this program in the President’s FY2012 budget, we envisioned it as an important mechanism for strengthening FTA’s authority, on par with the Federal Highway Administration, to provide timely disaster assistance to transit agencies whose assets are damaged or destroyed. The program has more than proved its purpose in the wake of Hurricane Sandy, and with your support, the FTA’s response stands as a model for federal disaster assistance and a powerful reminder of what our nation can accomplish when we all work together.

An important caution is in order, however. Hurricane season is once again upon us.  And, at present, the FTA has only those emergency relief funds that were made available exclusively for Hurricane Sandy.  The President’s FY 2013 and 2014 budget requests each sought $25 million to capitalize the Emergency Relief program for disasters throughout the country.  To date, Congress has not appropriated those funds.  I strongly encourage the Congress to appropriate those funds so, when the next disaster strikes and takes public transportation systems offline, FTA will be in a position to respond immediately.

For Hurricane Sandy, the Emergency Response Program, along with proactive efforts by DOT, FTA, FEMA and other partners, enabled us to work swiftly to put a responsible, streamlined relief effort in place. To date, FTA has succeeded in allocating to the region’s transit agencies a total of $5.7 billion for critical Sandy recovery and resiliency work in the span of approximately 16 weeks, beginning one week after President Obama signed the Disaster Relief Appropriations Act (Pub. L. 113-2) on January 29, 2013. That means FTA has already committed more than half—approximately 55 percent—of the available funds appropriated through the Disaster Relief Act (taking into account a $545 million sequestration cut to the original $10.9 billion amount) for relief and recovery to the hardest-hit transit agencies in New York and New Jersey, and several others also affected. We are grateful to this Committee for its support. Nearly one-third of the total funds allocated have been set aside by FTA to help the transit agencies begin investing in resiliency projects to help ensure that their assets – from trains and buses to stations and subway tunnels – are better able to withstand future disasters, such as major floods.

At this juncture, $577 million of the funds committed have been obligated, primarily to the MTA, PATH, NJT, and the New York City Department of Transportation. FTA also provided recovery funds to the Southeastern Pennsylvania Transportation Authority, Rhode Island Public Transit Authority, and Massachusetts Bay Transportation Authority. 

FTA has made an extraordinary effort to make emergency relief and recovery funding available as expeditiously as possible, to ensure that millions of riders have access to the transit services they depend on. We continue to work very closely with the affected transit agencies as they draw down available funds from FTA to implement these important recovery projects.

Funding for Recovery and Resiliency Projects

FTA’s first and highest priority for fostering resiliency among transit systems is to better protect existing transit facilities and equipment from the impact of the next disaster. Taxpayers should not be asked to pay for the restoration and recovery of public transportation assets a second or third time. And the transit riders of New York and New Jersey, in particular, should not have to put up with the stress, the cost, and the inconvenience of having the same transit facilities destroyed by one storm after another.

FTA is confident that the funds set aside for recovery, along with local matching funds and insurance proceeds, will be sufficient to meet all of the recovery and restoration needs of the region. We consider it prudent, however, to reserve $1.1 billion of the approximately $4.5 billion remaining to recovery projects, to ensure the impacted agencies will have all of their recovery needs met. This decision reflects concerns that latent damage not yet identified, as well as increased project costs, could impact the transit agencies’ ability to meet all of their recovery needs with the funds available.

The Disaster Relief Act appropriates up to $5.383 billion (less the sequester amount of $545 million) for projects related to reducing the risk of damage from future disasters in areas impacted by Hurricane Sandy. FTA has already allocated $1.3 billion for locally prioritized resiliency projects for transit agencies in the hard-hit New York-New Jersey metropolitan region.  Approximately $3 billion remains available for resiliency projects, which are projects designed and built to address future vulnerabilities to a public transportation facility or system due to future emergencies or major disasters that are likely to occur in the same geographic area or where there are projected changes in development patterns, demographics, or extreme weather or other climate patterns.

FTA will soon issue a notice of funding availability (NOFA) directed at capital projects that will reinforce critical infrastructure necessary to support public transportation systems in the region impacted by Hurricane Sandy. This funding will be available on a competitive basis. 

The cost of making all public transportation assets in the New York-New Jersey region even more immune to future disasters would be quite substantial and these costs are not fully known.  The remaining Disaster Relief Act funds that have yet to be allocated will not come close to meeting the contemplated resiliency needs of the public transportation systems  in the region affected by Hurricane Sandy.  Awarding funds for resiliency projects on a competitive basis allows project sponsors across the impacted region—any of whom could be affected by a future storm of unknown magnitude or location—to advance their best and most important projects to protect the region’s transit infrastructure. 

Coordination with Hurricane Sandy Rebuilding Task Force

As a result of the extreme devastation caused by Hurricane Sandy, President Obama convened the Hurricane Sandy Rebuilding Task Force, composed of the leaders of Federal agencies responsible for various aspects of the recovery.  Housing and Urban Development Secretary Shaun Donovan, who is testifying today, chaired the task force. The task force issued the Hurricane Sandy Rebuilding Strategy report in August 2013, laying out key principles for recovery, as well as related recommendations to guide the implementation of federally supported recovery efforts.  Those recommendations will certainly inform our direction as we develop our Notice of Funding Availability.  Specifically, the task force has recommended that Sandy-rebuilding infrastructure projects be designed to increase the resilience of the region and be regionally coordinated.  We will seek to incorporate the need for a comprehensive, science-based analysis; transparency in the decision making process; fiscal and environmental sustainability; performance standards; and targeted financial incentives.

Both scientific evidence and recent history indicate that weather and climate-related disasters are a continuing threat. According to the Hurricane Sandy Task Force, in the last year alone, there were 11 different weather and climate disaster events across the United States with estimated losses exceeding $1 billion each. Taken together, these 11 events resulted in more than $110 billion in estimated damages.

In recognition of this threat, we at FTA issued our own prescient report just before Hurricane Irene and more than a year before Hurricane Sandy, “Flooded Bus Barns and Buckled Rails: Public transportation and Climate Change adaptation,” that provides professionals with information and analysis relevant to making U.S. public transportation assets and services more resilient to climate change impacts.  The report provides examples of adaptation strategies and discusses how transit agencies might incorporate climate change adaptation into their organizational structures and existing activities such as asset management systems, planning, and emergency response.

Federal investment in the improved resilience of public transportation systems is intended to reduce the economic and social consequences of future disasters, including both the potential cost of rebuilding after the next storm and the social and economic consequences of suspended or inoperable transit service on the riding public.  In the New York-New Jersey region, it is particularly important to focus on regional investments that protect the larger transit network—a network that serves far more transit passengers than any other region of the country. Absent adequate regional coordination and planning, investments to protect one rail yard against rising waters might only serve to flood a neighboring rail yard that supports services to an even greater number of passengers.  As such, FTA will be particularly supportive of regional solutions that address the protection of the tri-state transit network on the whole.

Conclusion

FTA’s Public Transportation Emergency Relief Program and the funding appropriated through the Disaster Relief Appropriations Act have made a tremendous difference to millions of residents and especially commuters living and working in the regions impacted by Hurricane Sandy.  FTA will continue to work closely with the transit agencies hit hardest by Hurricane Sandy to ensure they can recover from this major disaster and emerge stronger than before. The millions of riders in New York and New Jersey deserve a robust public transportation network that can deliver the service they depend on every day. Investing in the protection of the region’s transit infrastructure now will help reduce the impact of travel delays, disruptions, and economic losses when the next big storm hits.

We look forward to continued efforts to make meaningful progress with our transit agency partners in New York and New Jersey as they propose essential public transportation projects to further expedite recovery from Hurricane Sandy and lay the foundation for a more resilient future. We stand ready to provide the funds appropriated for this purpose as expeditiously as possible, while maintaining stringent oversight of taxpayer dollars. And we call on Congress to continue funding FTA’s Emergency Relief Program, to ensure that communities around the country have a Federal partner willing and able to help restore public transportation service damaged by a catastrophic emergency.

Thank you and I am happy to answer any questions you may have.

STATEMENT OF

PETER M. ROGOFF
ADMINISTRATOR
FEDERAL TRANSIT ADMINISTRATION
UNITED STATED DEPARTMENT OF TRANSPORTATION

BEFORE THE

 COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS
UNITED STATES SENATE

SIOUX FALLS, SOUTH DAKOTA

March 28, 2013

Thank you, Chairman Johnson, for the opportunity to appear before you today to discuss how we can work together to improve access to good transportation choices in rural areas, tribal lands, and urbanized centers, including Sioux Falls and communities across South Dakota. 

The Administration recognizes that public transportation in rural areas functions not as a luxury but as a lifeline for low-income working families, seniors, veterans, individuals with disabilities, tribal residents, and others.   Many people living in rural and tribal communities can ill-afford to travel considerable distances to work and other destinations.  It is not surprising that, given these constraints, demand for public transportation in these areas has been rising over the last four years.   Between 2008 and 2012, the number of rural transit operators in the United States grew by nearly 6 percent, and 10 percent more trips are being provided, totaling 142 million trips last year.

The Department’s Federal Transit Administration (FTA) anticipates that demand for rural service will continue to rise, and we need legislative and policy solutions to deliver the transportation solutions that rural America needs.  On July 6, 2012, President Obama signed the Moving Ahead for Progress in the 21st Century Act (MAP-21) into law, reauthorizing public transportation and other surface transportation programs through fiscal year (FY) 2014.  MAP-21 enables us to implement many bold new policies to strengthen and streamline public transportation, including, importantly, bringing an additional $1.2 billion to rural communities and Indian reservations over the next two years.

I want to thank you, Mr. Chairman, for supporting the passage of MAP-21.  You, together with other members of the Senate Committee on Banking, Housing and Urban Affairs, worked toward bipartisan and bicameral agreement on this very important transportation bill because you understood that its enactment would improve access to public transportation and create and support jobs at a time when we need them most.

MAP-21

Enactment of MAP-21 signals an opportunity for us to work collectively to strengthen our transit systems and better serve the American public.  MAP-21, which took effect on October 1, 2012, authorizes $10.6 billion in FY 2013 and $10.7 billion in FY 2014 for public transportation.  The law furthers several important goals in the crucial areas of safety, state of good repair, emergency relief, program streamlining, and program efficiency.  

FTA has made a significant start toward implementation of MAP-21 within the law’s first six months by applying key provisions and providing guidance to states, metropolitan planning organizations, transit agencies, including rural providers, and Indian tribes. We have an active and engaged legislative implementation team and an aggressive timetable in place.

More specifically, FTA has published considerable information on its website that, among other things, address MAP-21 programs relevant to public transportation providers in small urbanized areas, rural areas and tribal lands.  On October 16, 2012 we published in the Federal Register, a “Notice of FTA Transit Program Changes, Authorized Funding Levels and Implementation of the Moving Ahead for Progress in the 21^st Century Act (MAP-21) and FTA Fiscal Year Apportionments, Allocations, Program Information and Interim Guidance.”  On November 9, 2012, we published a Federal Register Notice regarding the FY 2013 Public Transportation on Indian Reservations Program and we are currently considering comments received from interested parties. FTA is also working to implement MAP-21 through regulation where necessary and by updating guidance through its circulars.  FTA anticipates that it will have updated the circular for the enhanced mobility of seniors and individuals with disabilities as well as the rural area formula grants circular during this fiscal year.

I would like to highlight the MAP-21 changes that will benefit the rural areas and tribal lands like those in South Dakota, as well as urban centers such as Sioux Falls and Rapid City.

Formula Grants for Rural Areas (Section 5311)

MAP-21 increases rural area formula funds by 29 percent, from $465 million to $600 million.  (By comparison, under MAP-21, urbanized area formula funds increased by 6 percent.)  Funding increased for rural areas because we recognize that public transportation in these areas is urgently needed, especially for residents who do not have access to personal vehicles.  Public transportation is important for providing links between workers and rural area employers, and encouraging rural economic development.  Further, public transportation in rural areas can provide links to urban areas and provide access to opportunities found in those areas. 

As in prior authorizations, such as Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU), the Formula Grants for Rural Areas program continues to provide capital and operating assistance to support public transportation in rural areas, defined as areas with fewer than 50,000 residents, and on tribal lands.  In addition, MAP-21 now allows these program funds to be used for planning activities, as well as for Job Access and Reverse Commute program activities (JARC) for low-income individuals.  Consolidating JARC activities into the Rural Areas Formula program provides more funding flexibility at the local level.  Funding for the rural program is based on a formula that uses land area, population, including the number of low-income individuals residing in rural areas, and the provision of transit service.  MAP-21 provides total funding of $600 million in FY 2013 and $608 million in FY 2014.  Subject to appropriations, in FY 2013, the State of South Dakota can expect to receive an apportionment of $5.9 million for transit service provided in rural areas and on tribal lands.  This is 17 percent higher than the amount apportioned to the State under this program in the last fiscal year. 

A State may use up to 10 percent of the amount apportioned to it for purposes of administering the Rural Area Formula program and to provide technical assistance to rural and tribal grantees. Technical assistance includes project planning, program and management development, coordination of public transportation programs, and research the State considers appropriate to promote public transportation service.

In addition, the Rural Transit Assistance Program (RTAP) provides funds for technical assistance, training, and related support services tailored to meet the needs of transit operators in rural areas and on tribal lands. The program is funded with a 2 percent takedown from the amount available to carry out the Rural Areas Formula program.  From the amounts made available for RTAP, FTA may use up to 15 percent to carry out competitively-selected projects of a national scope with the remaining balance allocated to the States.  In addition to the eligible activities identified above, a State may use RTAP funds for special projects that support its planning program for rural areas and tribal lands.  Similarly, a State may use its statewide planning funds to support or supplement the technical assistance program it provides through RTAP. 

South Dakota will have $149,934 available for RTAP purposes in FY 2013, which is 37percent more than was available to the State for this program in FY 2012.

Tribal Program

The Administration understands that access to reliable, affordable transportation is a high priority for Indian Country.  We want to ensure that every American Indian or Alaskan native who needs a ride to earn a paycheck, attend school, see the doctor, visit sacred places, or buy groceries has that opportunity.  To that end, in December 2012, Secretary LaHood announced the American Indian and Alaska Native tribe projects that were competitively selected to receive $15.5 million in FTA’s Tribal Transit Program funds.  The Cheyenne River Sioux Tribe, one of 72 tribes selected to receive funds, was awarded $350,000 to continue to provide public transit service to the growing number of tribal members and the general public who use it to travel to employment, education, medical care and other services in Eagle Butte and surrounding rural areas.

MAP-21 doubles the funds available for the Tribal Transit program from $15 million in FY 2012 to $30 million in FY 2013 and FY 2014.  Under MAP-21, $25 million of the $30 million available for the program is distributed by formula.  The remaining $5 million is provided for a discretionary grant program, and we encourage Indian tribes to apply for this funding as well.  This resource will improve tribal public transportation in South Dakota and many other tribal areas throughout the United States.  Tribal Transit program funds may be awarded for capital, operating, planning, job access and reverse commute projects, and administrative assistance for rural and tribal public transit services and rural intercity bus service.

MAP-21 states that Indian tribes providing public transportation shall be apportioned funds consistent with formula factors that include vehicle revenue miles and the number of low-income individuals residing on tribal lands.  Funds apportioned pursuant to the formula will provide Indian tribes operating public transportation with a steady and predictable stream of funding.  FTA has actively reached out to tribal and rural stakeholders to discuss the impact of proposed program changes and funding priorities and is currently considering comments before finalizing a formula allocation methodology.  However, based on an illustrative formula, South Dakota tribes are to receive approximately $1.9 million in formula funds for FY 2013 compared to

FY 2012 when only $1.3 million in discretionary funds were available for allocation.  This represents a 29 percent increase in funds to the South Dakota tribes in FY 2013.  MAP-21 also provided FTA with the authority to determine the terms and conditions of grant awards under Tribal Transit programs.  As a result, FTA is also considering comments received from interested tribal officials and other stakeholders regarding grant requirements and building the technical capacity of tribal grantees.   A Federal Register notice will be issued soon to provide program structure and guidance, final formula allocations, and terms and conditions for the formula and discretionary programs.

In addition to the funds available to South Dakota residents and Cheyenne River Sioux Tribe for public transportation under MAP-21, the Department of Transportation (DOT) also awarded $1 million in National Infrastructure Investment funds to the Yankton Sioux Tribe in rural Marty to construct a new transit facility.  The award was made through the fourth round of DOT’s highly competitive Transportation Investment Generating Economic Recovery (TIGER) grant program. The facility will expand transportation options in this underserved and economically distressed Native American community.  FTA will continue to work with Yankton tribal representative to ensure the successful completion of this project.

Formula Grants for the Enhanced Mobility of Seniors and Individuals with Disabilities (Section 5310)

The Enhanced Mobility of Seniors and Individuals with Disabilities program provides formula funding to increase the mobility of seniors and persons with disabilities.  MAP-21 merges the former New Freedom program, which provided grants for services for individuals with disabilities that went above and beyond the requirements of the Americans with Disabilities Act (ADA), with this program.  Enhanced Mobility program funds are apportioned based on each State’s share of the respective target populations and are now apportioned to both States (for all areas under 200,000 in population) and large urbanized areas (with 200,000 or more in population).   Projects selected for funding must be included in a locally developed, coordinated public transit-human services transportation plan; and the competitive selection process, which was required under the former New Freedom program, is now optional.  At least 55 percent of program funds must be spent on capital public transportation projects planned, designed, and carried out to meet the access and functional needs of seniors and individuals with disabilities when public transportation is insufficient, inappropriate, or unavailable. The remaining funds may be used for public transportation projects that exceed the requirements of the ADA; public transportation projects that improve access to fixed-route service and decrease reliance by individuals with disabilities on complementary paratransit (a comparable service to public transportation required by the ADA for individuals with disabilities who are unable to use fixed route transportation systems); or, alternatives to public transportation that assist seniors and individuals with disabilities. 

The State of South Dakota can expect to receive $624,500 in FY 2013 to carry out this program.  This is 5.8 percent decrease in the amount of funds South Dakota received under the former Elderly Individuals and Individuals with Disabilities (E&D) program and New Freedom programs in FY 2012.  Under the former E&D program, each state was guaranteed a minimum of $125,000.  This is not the case under the MAP-21 formula, which distributes 60 percent of the program funds to large urbanized areas (over 200,000 in population), 20 percent to small urbanized areas, and 20 percent to rural areas.  South Dakota does not have any large urbanized areas.

Coordinated Transportation

The South Eastern Council of Governments and City of Sioux Falls prepared the “Sioux Falls MPO Area Coordinated Public Transit –Human Services Transportation Plan” that was published on September 25, 2008.  The plan, which is to be updated every five years, acknowledges that the transportation stakeholders in the Sioux Falls MPO region “have recognized the benefits of transportation coordination.”  Ten to 15 years prior to the development of the plan, several agencies met to develop strategies for making transportation services more efficient.  FTA applauds transportation entities that have long strived to serve seniors, individuals with disabilities and low-income individuals in the Sioux Falls area.  The plan also notes that transportation for these targeted populations is provided primarily within the city limits of Sioux Falls and, with minor exceptions, little transportation is available to the residents of the MPO region’s less populated areas.

Senior and medical transportation is vitally important to the nation’s growing senior population and citizens suffering debilitating illnesses and chronic diseases.  In South Dakota, 14.6 percent of the population is 65 or older and this segment of the population is projected to grow to 23.1 percent by 2030.  We need to support seniors who want to continue living in communities they call home.   This requires human services policies and programs that work for the traveling public, including seniors, individuals with disabilities, and all those seeking medical care.  Moreover, transportation services focused on these populations are often fragmented, underutilized, or difficult to navigate, and can be costly because of inconsistent, duplicative, and often restrictive Federal and state program rules and regulations. And, in some cases, narrowly focused programs leave service gaps and the available transportation services are simply not able to meet certain needs.  We are working to determine how best to integrate the full range of mobility needs, which include ADA paratransit, transportation for seniors, and medical transport programs, with public transportation operations and plans.  This means focusing on the customer and coordinating the best solutions with public and private operators and volunteer programs in the mix, was well as coordinating with other Federal agencies that fund transportation for these targeted populations. 

MAP-21 continues the requirement that, to the maximum extent feasible, FTA should coordinate activities funded under the Enhanced Mobility program with similar transportation activities provided by other Federal agencies.  In addition, and as recommended by United States Government Accountability Office last summer,  the Federal Interagency Coordinating Council on Access and Mobility (CCAM), chaired by the Secretary of Transportation and including representatives from 11 Federal agencies, has developed a Strategic Action Plan to promote human services programs.  The CCAM Strategic Plan builds on our progress to cooperatively improve mobility and community accessibility for seniors, individuals with disabilities, and low income persons and families.  The Plan encourages the creation and growth of coordinated transportation networks that provide simplified access to health and wellness, jobs, and community services.  One of the objectives of the Plan is to improve the health outcomes of Americans by enhancing transportation service coordination to improve access to health and wellness resources and reduce risks of institutionalization.  Another objective is to stimulate local business, economic and transportation organizational partnerships to help dislocated workers and others seeking to rejoin the workforce get the transportation options they need to reach job opportunities and training.  The CCAM centerpiece is the Veterans Transportation and Community Living Initiative, which complements the Obama Administration’s Joining Forces initiative led by First Lady Michelle Obama and Dr. Jill Biden. It addresses the Administration’s challenge to all Federal agencies to harness program resources and expertise to improve the quality of military family life and to help communities more effectively support military families.  The Veterans Transportation and Community Living Initiative is an innovative, federally coordinated partnership that will make it easier for U.S. veterans, active service members, military families, and others with disabilities to learn about and arrange for locally available transportation services that connect them with work, education, health care, and other vital services in their communities.  Through this initiative, FTA has made $63.6 million in discretionary funds available to local governmental agencies to finance the capital costs of implementing, expanding, or increasing access to, and coordination of, local transportation resources.  Of this amount, South Dakota received approximately $1.2 million over the last three years.

Meeting these objectives will help to ensure that the needs of disadvantaged individuals are addressed in current and future Federal programs.  In furtherance of this goal, the Department  and its partners at the U.S. Departments of Health and Human Services, Labor, and Education support a range of technical assistance initiatives for coordinating human service transportation.  Programs and centers are charged with providing training, resources, and direct assistance to communities and states interested in enhancing the mobility and transportation options for all citizens, including older adults, individuals with disabilities, and people with lower incomes.  

FTA will continue to work through interagency partnerships to coordinate transportation needs to help increase the quality of life for older citizens, individuals with disabilities and people with low-incomes.

Grantee Safety Plans (Section 5329)

Secretary LaHood has stated that “safety is our highest priority and we are committed to keeping transit one of the safest modes of transportation in the nation.” FTA is pleased that MAP-21 includes important safety provisions for rail and bus-only operators, and requires all recipients of FTA funding to develop agency safety plans. FTA will work to adapt its comprehensive safety approach to all modes of public transportation within its safety authority. Specifically, we will work to ensure that the bus segment of public transportation, upon which millions of riders depend every day, receives the resources, tools and technical assistance it too will need to ensure the safety of the riding public.  Also, because we recognize that one size does not fit for all transit operators, the safety plan for rural recipients and small public transportation providers or systems may be drafted or certified by the State.

FTA looks forward to implementing the new safety law in consultation with the transit industry and our Transit Rail Advisory Committee for Safety (TRACS), which has been working to help guide this effort since September 2010.

State of Good Repair Grants (Section 5337)

The Administration supports a groundbreaking commitment not only to expand transit options for Americans, but just as importantly, to maintain the Nation’s transit systems in a state of good repair.  For example, last September, Secretary LaHood and I, together with State and local officials, toured a significantly modernized and expanded River Cities Transit Facility, constructed in part with a $5 million grant from FTA.  River Cities Transit ridership grew more than six-fold between 2008 and 2012, making the upgrades to the system more important than ever before. This system has a service radius of 100 miles, and that means a service area of bus and transit vans covering more than 31,000 square miles, serving people living in 11 counties in central South Dakota, including seniors, people with disabilities, veterans and the Cheyenne River Sioux and Lower Brule Sioux tribes.

Through the American Recovery and Reinvestment Act, South Dakota received approximately $11.5 million in formula funds of which 70 percent were for rural areas in the state and were used for critical infrastructure replacement and expansion needs.  Recipients in South Dakota also received over $6 million from FTA’s FY 2011 and FY 2012 State of Good Repair Initiative.  River Cities Public Transit also received a total of $319,200 in FY 2011 and $369,200 in FY 2012 and Prairie Hills Transit received $213,680 through FTA’s Veterans Transportation and Community Living Initiative to improve transit scheduling and outreach to transit-dependent veterans. 

Consistent with the President’s request, MAP-21 establishes a new grant program to maintain public transportation fixed guideway and high intensity bus systems in a state of good repair.  According to the statute, once a final rule implementing the State of Good Repair program is issued, projects must be included in a transit asset management plan to receive funding allocations.  MAP-21 authorized $2.1 billion in FY 2013 and $2.2 billion in FY 2014 for this program.  Funds will be apportioned consistent with a new statutory formula program, which includes a new tier for high-intensity bus. 

Asset Management Provisions (Section 5326)

Asset management was a priority for FTA long before MAP-21.  The $78 billion repair and maintenance backlog that FTA’s research identified in 2008 has likely increased by as much as 10 percent in recent years. FTA recognizes that, while a sustained Federal contribution to our state of good repair needs is in the interest of our nation’s public transportation systems, this problem cannot be solved by Federal action alone. Tackling this problem requires a concerted effort by Federal, state, and local resources in a coordinated, strategic manner.   That is why FTA is establishing a national Transit Asset Management System. The new section 5326 Transit Asset Management program established under MAP-21 is vitally important to carrying out these infrastructure investments effectively and responsibly.  MAP-21 requires FTA to define the term “state of good repair” and create objective standards for measuring the condition of capital assets, including equipment, rolling stock, infrastructure, and facilities. Based on that definition, FTA must then develop performance measures under which all FTA grantees will be required to set targets. This innovative program requires all FTA funding recipients to adopt a structured approach for managing their capital assets and be accountable for leveraging all available resources to bring their systems into a state of good repair.  FTA will support this effort through technical assistance, including the development of an analytical process or decision support tool that allows recipients to estimate their capital investment needs.

FTA has reached out to stakeholders to determine ways in which transit asset management systems can be tailored to small operators that typically provide service in small urbanized and rural areas as well as on tribal lands, and we will continue to do so.  Most recently, FTA organized a focus group conference call with small operators in conjunction with the Community Transportation Association of America (CTAA).  We also hosted an online dialogue in which more than 700 stakeholders participated, contributing more than 200 ideas and comments, and providing nearly 1,500 feedback votes on the ideas and comments that were submitted.   The next step in our outreach efforts will be a rulemaking on Transit Asset Management.  FTA strongly encourages small transit operators to provide comments on the rule once it becomes available. 

Emergency Relief Program (Section 5324)

Nowhere has FTA made more aggressive progress in implementing the provisions of MAP-21 than in the area of emergency relief.  The President’s Budget first proposed in FY 2012 a new emergency relief program for the FTA to parallel a similar capability in the Federal Highway Administration. The Budget proposed this program to strengthen the agency’s authority to provide disaster assistance to transit agencies in the wake of major natural disasters and other emergencies, and the program was authorized by Congress in MAP-21. The authorization of this new program arrived just in time for Hurricane Sandy, which was the worst public transit disaster in the history of the United States.  Hurricane Sandy devastated transportation systems in the hardest-hit parts of New York and New Jersey—which together represent more than one-third of our nation’s transit ridership—and triggered a very rapid implementation path for the program.  More generally, however, this program helps states and public transportation systems pay for protecting, repairing, and/or replacing equipment and facilities that may suffer or have suffered serious damage as a result of an emergency, including natural disasters such as floods, hurricanes, and tornadoes.  It will be available to the Sioux Falls transit community should the need arise.

Urbanized Area Formula Grants (Section 5307)

The largest of FTA’s grant programs, this program provides grants to urbanized areas to support public transportation.  Funding is distributed by formula based on the level of transit service provision, population, and other factors.  MAP-21 provides total funding of $4.9 billion in FY2013 and $5 billion in FY 2014. The program remains largely unchanged with a few exceptions.  Job access and reverse commute activities providing services to low-income individuals to access jobs have been consolidated into this program and are now an eligible expense.  MAP-21 expanded eligibility for operating expenses for systems with 100 or fewer buses in urbanized areas with populations of 200,000 or more.  Operating assistance remains an eligible activity for small urbanized areas, such as Sioux Falls and Rapid City.  Based on the apportionment formula, South Dakota will receive approximately $3.6 million in urbanized area formula funds for allocation to its small urbanized areas in FY 2013.  This is a 16 percent increase over the amount apportioned to the State for those areas last fiscal year.

Bus and Bus Facilities Program (Section 5339)

MAP-21 followed the Administration’s request to fold the discretionary bus program into a formula program.  This capital program provides funding to replace, rehabilitate, and purchase buses and related equipment, and to construct bus-related facilities. MAP-21 authorized $422 million in FY 2013 and $428 million in FY 2014.   Each fiscal year, each state will be allocated $1.25 million and each territory (including D.C. and Puerto Rico) will receive $500,000.  The remaining funds will be distributed by formula.  Funds are available to eligible recipients that operate or allocate funding to fixed-route bus operators.  Eligible subrecipients include public agencies or private nonprofit organizations engaged in public transportation, including those providing services open to a segment of the general public, as defined by age, disability, or low income.

In FY 2013, South Dakota is projected to receive a statewide allocation of $1.25 million under this program. These funds can be used anywhere in the state, including for projects in rural areas and on tribal lands.  South Dakota’s urbanized areas are projected to receive $385,882 in bus funds. These funds are allocated to the State and the State can distribute them among the urbanized areas based on a locally determined process.

We at FTA look forward to working with our stakeholders to address the challenges laid out for us by Congress and the President in MAP-21.   I will be happy to answer questions.

STATEMENT OF

PETER M. ROGOFF
ADMINISTRATOR
FEDERAL TRANSIT ADMINISTRATION
U.S. DEPARTMENT OF TRANSPORTATION

BEFORE THE

COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE
SUBCOMMITTEE ON HIGHWAYS AND TRANSIT
U.S. HOUSE OF REPRESENTATIVES

MARCH 14, 2013

Mr. Chairman, Ranking Member DeFazio, and Members of the Committee:

Thank you for inviting me to appear before you today to highlight the Federal Transit Administration’s (FTA) progress toward implementing key provisions in the Moving Ahead for Progress in the 21^st Century Act, known as MAP-21. This two-year reauthorization codifies some of President Obama’s highest priorities for enhancing the safety of public transportation, strengthening our nation’s transportation infrastructure, and streamlining government to serve taxpayers’ needs more efficiently. I want to thank the Committee for its support in passing MAP-21, which offers an opportunity for us to work together to support transit systems across the country at a time when national ridership has grown by 154 million trips in 2012 to 10.5 billion trips, the second highest level since 1957.  This was the seventh year in a row that ridership has exceeded more than 10 billion trips.  These investments spur new economic development to help build strong communities in cities, suburbs, and rural areas alike.

MAP-21, which took effect on October 1, 2012, authorizes $10.6 billion in FY 2013 and $10.7 billion in FY 2014 for public transportation.  FTA has made a significant start toward implementation within the law’s first six months by implementing key provisions and providing guidance to states, metropolitan planning organizations and transit agencies. We have an active and engaged legislative implementation team and an aggressive timetable in place.

We recognize, however, that much work and many challenges lie ahead. Our ability to fully implement MAP-21 is significantly hampered by the funding constraints imposed by the current fiscal year continuing resolution as well as the budget cuts imposed by the Budget Control Act of 2011.  Nearly $5 million of cuts into our administrative budget will undoubtedly delay some aspects of MAP-21 implementation and reduce our ability to conduct outreach and training with stakeholders.  Every budget request under my stewardship has sought additional funding to allow for additional staffing at the FTA to better address our core responsibilities as well as our new safety responsibilities.  The Congress has yet to provide those resources.  Moreover, reductions in FTA’s capital investment program funding will mean few, if any, additional New Starts construction projects will be fundable in the near term.  Also, sponsors of ongoing major capital projects will experience increased borrowing costs as FTA will be required by sequestration to slow its pay-out schedule on projects to which it has already made financing commitments.  Nevertheless, FTA is committed to moving forward as quickly as possible to implement MAP-21 so that the American people may reap the benefits that come with investing in public transportation that improves transportation equity, provides access to jobs and services, reduces congestion, and stimulates our economic development in cities and communities throughout the nation.

Because MAP-21 closely reflects some key program and policy priorities well under way at FTA prior to its passage, our agency has been able to move ahead quickly in two important areas. First, FTA published in January 2013 a final rule for Major Capital Investment Projects—years in the making—that adopts a more straightforward approach for measuring a proposed transit project’s cost-effectiveness; expands the range of environmental benefits used to evaluate proposed projects; adds new economic development factors to its ratings process; and streamlines the project evaluation process. The revised ratings and evaluation criteria will better capture the full range of benefits that FTA’s transit investments provide through the New Starts/Small Starts program, while continuing an appropriate level of oversight of taxpayer dollars. These revisions align with major purposes of MAP-21, including improving the development and delivery of capital projects and moving us toward a more performance-driven system. We appreciate the Committee’s support for this important achievement.

Second, on February 7, 2013, FTA jointly with the Federal Highway Administration (FHWA) published an important final rule streamlining the environmental review process under the National Environmental Policy Act (NEPA) that a proposed transit project seeking Federal funds must undergo. The rule establishes ten new categorical exclusions (CEs) defined specifically for transit projects. CEs significantly expedite FTA’s environmental review of projects that have been shown to have little environmental impact while preserving critical community input on how planned transit projects affect the local environment.These NEPA revisions, like the New Starts changes, are closely aligned with the policy goals of MAP-21.

In addition to these significant rulemakings, FTA is making progress to implement MAP-21 on several fronts. For example, at the outset of FY 2013, FTA published interim guidance on all of our MAP-21 programs as part of our annual funding notice for the first half of the year under the continuing resolution. This guidance allowed FTA’s funding recipients to begin compiling their FY 2013 funding applications without delay, and laid the groundwork for future-year grants. FTA is making good progress on developing more detailed guidance on which we will seek comment in the near future.

Public Transportation Emergency Relief Program

Nowhere has FTA made more aggressive progress in implementing the provisions of MAP-21 than in the area of emergency relief.  The President’s Budget first proposed in FY 2012 a new emergency relief program for the FTA to parallel a similar capability in the Federal Highway Administration. The President proposed this program to strengthen the agency’s authority to provide disaster assistance to transit agencies in the wake of major natural disasters and other emergencies, and the program was authorized by Congress in MAP-21.

The authorization of this new program arrived just in time for Hurricane Sandy, which, based on the extent of storm damage, was the worst public transit disaster in the history of the United States.  Hurricane Sandy devastated transportation systems in the hardest-hit parts of New York and New Jersey—which together represent more than one-third of our nation’s transit ridership—and triggered a very rapid implementation path for the program. The Disaster Relief Appropriations Act of 2013 (Pub. L. 113-2) appropriated $10.9 billion to FTA to help transit agencies repair and replace damaged vehicles and equipment affected by this storm, as well as to undertake work to mitigate the impact of future floods and other disasters on transportation assets and systems both inside and outside of public transit.  Unfortunately, this amount was then reduced by $545 million as part of sequestration.

In accordance with the Disaster Relief Act, FTA announced on February 6, 2013, the availability of the first $2 billion in aid to reimburse FTA recipients for capital costs to repair, reconstruct, or replace equipment and public transportation systems facilities that suffered serious damage in the states impacted by Hurricane Sandy. To date, FTA has allocated more than $390 million to the New York Metropolitan Transit Authority (MTA), the Port Authority Trans-Hudson Corp. (PATH), and the Southeastern Pennsylvania Transportation Authority (SEPTA) for expenses incurred while preparing for and recovering from Hurricane Sandy. By the end of March, 2013, FTA intends to allocate the remainder of the initial $2 billion to impacted agencies that submit applications for assistance. We continue to accept applications from affected transit agencies on a rolling basis and expect to allocate funds to New Jersey Transit and others shortly.

The release of the remaining funds authorized in the Disaster Relief Appropriations Act is contingent on two activities. First, FTA and FEMA have signed a Memorandum of Agreement, which MAP-21 also stipulated, that clarifies coordination of roles and responsibilities of both agencies to ensure that assistance is delivered in a timely, responsible, and transparent manner. Second, FTA must publish an interim final rule for the Emergency Relief Program, laying out eligible activities and the criteria FTA will use to identify projects for future funding.  The interim final rule is under review within the Administration and will become effective immediately, once it is finalized.

Safety Authority

MAP-21 gives FTA long-sought authority to establish safety performance criteria for all modes of public transportation and establish minimum safety performance standards for public transportation. In addition, MAP-21 significantly strengthens FTA’s ability to oversee and enforce common-sense safety standards for rail fixed-guideway transit systems. The Administration first transmitted transit safety legislation to the Congress in December, 2009, and many of the provisions sought in the Administration’s bill were included in MAP-21. At the time the Administration’s bill was transmitted to Congress, Secretary LaHood also formally established the Department of Transportation’s Transit Rail Advisory Committee on Safety (TRACS).

While Congress has yet to appropriate additional administrative funds to carry out this new area of responsibility, FTA has proceeded to stand up a new safety office as expeditiously as possible using already strained existing resources. We are developing a roadmap for a comprehensive MAP-21 safety roll-out plan that is sensitive to stakeholder’s concerns about this new oversight initiative. FTA will build a 21st century regulatory program over a period of several years.

In the short term, FTA has tasked TRACS to provide strategic guidance on the forthcoming rulemaking framework. FTA has also articulated a strategic framework for safety oversight, predicated on a safety management systems approach that takes into account the differing characteristics among rail systems and operators. We will pursue an approach that is scalable— not a one-size-fits-all model. Our initial focus in the first few years is on establishing a safety oversight regime that is expressed through Federal rulemakings, and complemented by development assistance packages for state safety oversight organizations (SSOA) and agencies. We will administer grants to assist agencies in becoming eligible for state certification and devise strong safety training programs.

With respect to strengthening and adequately funding the SSOAs—a key provision of section 5329 under MAP-21—FTA has issued clear instructions to the governors in each of the 28 states that operate a rail fixed-guideway transit system (or where such a system is in engineering or construction) that is not already subject to regulation by the Federal Railroad Administration. Specifically, in August 2012, Secretary LaHood first informed every affected governor by letter that financial arrangements must be made to secure the matching funds necessary for receipt of FTA’s state safety oversight funds. Under MAP-21, a percentage of the section 5307 Urbanized Area formula funds are set aside to assist eligible states with their state safety oversight programs. FTA is currently developing a formula to make those funds available to eligible states. MAP-21 requires a 20 percent state match to help cover reasonable costs of a state safety oversight program. Every eligible state will be expected to use program funds to strengthen their SSOA and to position them to comply with the requirements of MAP-21.

Going forward, FTA will act as the leader, facilitator, and final regulatory authority setting minimum safety standards, and be held fundamentally accountable for the overall safety performance of the nation’s fixed-guideway rail transit systems.  To achieve these goals, FTA will concentrate on strengthening the capacity of SSOs to serve as effective day-to-day safety regulators capable of holding these transit systems accountable for safe operations at the local level and ensuring they comply with minimum safety standards.

Additionally, FTA will work to adapt its comprehensive safety approach to all modes of public transportation within its safety authority. Specifically, we will work to ensure that the bus segment of public transportation, upon which millions of riders depend every day, receives the resources, tools and technical assistance it too will need to ensure the safety of the riding public. 

However, we must sound an important note of caution. Regrettably, the House Continuing Resolution does  not provide FTA with sufficient funds to carry out the safety provisions in MAP-21 that are at the heart of our effort to greatly improve an oversight regime that has been inadequate for half a century. This allows the current inefficient safety oversight mechanisms to remain in place longer than they otherwise would.

State of Good Repair and Transit Asset Management

Since 2008, FTA has staked out a leadership role in highlighting the critical need to bring the nation’s aging transit assets into a state of good repair, especially in large urban areas—and to hold transit agencies accountable for implementing a more strategic approach to managing the lifecycle of their assets. The momentum we have initiated is real, but the gains that will truly benefit the American people require sustained investment. FTA obligated $1.9 billion—about one-fifth of our share of funds under the American Recovery and Reinvestment Act of 2009 for this very purpose, along with more than $2.2 billion in discretionary dollars over the last four years. Indeed, the Administration has made increased funding for a new State of Good Repair program the centerpiece of its annual budget requests for the FTA and a focal point of the President’s American Jobs Act proposal. Congress incorporated our proposal on this essential area into MAP-21 by creating a more needs-based state-of-good-repair formula program for rail, ferry, and busway systems, and by folding the discretionary bus program into two formula-based programs. This new program will help further address our state-of-good-repair needs, so both bus and fixed guideway agencies have a predictable two-year stream of Federal funds to help them address an enormous maintenance and repair backlog that exceeds $78 billion nationwide. We have already awarded two grants totaling $8.4 million under the MAP-21 section 5337 State of Good Repair Program. Once FTA receives a full year of FY 2013 funding, we expect to roll out the remaining program funds as quickly as possible.

FTA recognizes that while a sustained Federal contribution to our state-of-good-repair needs is in the interest to our nation’s public transportation system, this problem cannot be solved by Federal action alone. Tackling this problem requires a concerted effort by Federal, state, and local resources in a coordinated, strategic manner. That is why FTA is establishing a national Transit Asset Management System. The new section 5326 Transit Asset Management program established under MAP-21 is vitally important to carrying out these infrastructure investments effectively and responsibly. This innovative program requires all FTA funding recipients to adopt a strategic approach for managing their capital assets and be accountable for leveraging all available resources to bring their systems into a state of good repair. FTA has sponsored a successful public dialogue with over 700 stakeholders to obtain critical input on policy implementation. A rulemaking is expected to be issued soon. And FTA will shortly solicit comments in the Federal Register on ways to improve how asset inventories and asset conditions are reported to the National Transit Database—an important first step toward refining estimates of the nation’s transit-related state-of-good-repair backlog.   This is a very important initiative that will assist the FTA in ensuring that local transit investment financed with Federal dollars are being effectively targeted on each transit agency’s greatest needs.  It will also assist us in ensuring that Federal investments are being well managed and well utilized.

As part of our ongoing broader effort in this area, we are developing interim policy guidance to establish the agency’s first formal definition for “state of good repair,” which is important for setting funding criteria for the future. The new definition will also have a direct bearing on the implementation of two cross-cutting FTA programs under MAP-21, namely, the Core Capacity Improvement Program (which excludes state of good repair projects from eligibility) and the Pilot Program on Expedited Project Delivery (which requires grant applicants to certify that their existing systems are in a state of good repair).

Accelerated Project Delivery

Improving the development and delivery of capital transportation projects is a primary policy goal of the Administration. MAP-21 incorporates this effort to streamline and expedite infrastructure projects of regional and national significance. As cited above, FTA has already issued two significant rulemakings that streamline and in some cases accelerate the New Starts program and the NEPA process.

In addition, FTA and FHWA have jointly issued two other actions in February to improve project delivery. First, the two agencies jointly issued a regulation creating a categorical exclusion (CE) under NEPA for emergency actions pursuant to Section 1315 of MAP-21.  This CE applies to all transit facilities and covers emergency repairs undertaken as part of FTA’s Emergency Relief Program. And second, they jointly issued a notice of proposed rulemaking for CEs for projects within a rail transit system’s operational right-of-way and projects receiving limited Federal assistance. These types of actions effectively cut red tape for funding recipients, reduce the administrative burden on state and local governments, and expedite results for the American public.

Public-Private Partnerships

FTA also recognizes the value of public-private partnerships as a means of augmenting public investments in infrastructure. On March 7, 2013, FTA published a proposed circular on Joint Development that clearly explains how FTA funds and FTA-funded real property may be used for public transportation projects that are related to and often co-located with commercial, residential, or mixed-use development. The circular emphasizes the concept of “value capture,” which encourages FTA grantees to leverage Federal investments to capture revenue (such as the sale of publicly held land near transit facilities) that can in turn be used to offset capital and operating expenses.

Conclusion 

MAP-21 offers an important opportunity to recalibrate the way our government evaluates and invests in our federally funded public transportation infrastructure. From a transit perspective, the law’s major provisions enable FTA to focus limited resources on strategic investments that will result in a better riding experience for millions of Americans, while repairing and modernizing transit systems for generations to come.

Thank you and I am happy to answer any questions you may have.

STATEMENT OF

THERESE MCMILLAN,
ACTING ADMINISTRATOR
FEDERAL TRANSIT ADMINISTRATION
U.S. DEPARTMENT OF TRANSPORTATION

BEFORE THE

COMMITTEE ON BANKING, HOUSING AND URBAN AFFAIRS,
U.S. SENATE

April 21, 2015

Mr. Chairman, Ranking Member, and Members of the Committee:

Thank you for the invitation to appear before you today to report on the Federal Transit Administration’s (FTA) progress toward implementing the Moving Ahead for Progress in the 21st Century Act (MAP-21).  We are pleased for the opportunity to discuss the Administration’s surface transportation reauthorization proposal, the Generating Renewal, Opportunity, and Work with Accelerated Mobility, Efficiency, and Rebuilding of Infrastructure and Communities throughout America (GROW AMERICA) Act. It builds on the strong foundation MAP-21 provided for public transit, recognizing transit’s growing presence across the country.

In 2014, Americans took 10.8 billion trips on transit - the highest annual ridership number since 1957. Public transportation is a way of life in urban areas, a lifeline in many towns and rural areas, and a quality of life improvement for many fast growing communities. In addition, many working families, seniors, veterans, individuals with disabilities, tribal residents, and others rely on public transportation for their mobility needs. Transit is a driver of local and regional economic development, helps reduce highway congestion and greenhouse gas emissions, and provides people better access to job centers, schools, medical services and other vital daily activities.

Approximately half of all transit riders do not have access to a private vehicle, making public transit a primary means of connecting to their local community. FTA anticipates that demand for public transportation service will continue to rise. Now is the time to deliver the policy and funding solutions America needs to improve our national transportation network, invest in our collective future, and grow the economy.

MAP-21 took effect on October 1, 2012, and authorized $10.6 billion in FY 2013 and $10.7 billion in both FY 2014 and FY 2015 for public transportation. FTA is effectively and efficiently administering those federal dollars through its formula and discretionary grant programs. We also continue to make significant progress on an aggressive timetable towards implementing new safety authority through the rulemaking process and developing related guidance with input from affected stakeholders.

Last year, the Administration proposed the GROW AMERICA Act, which was a comprehensive four-year, $302 billion reauthorization proposal calling for substantial funding increases as well as critical policy reforms. Congress passed a short term extension with status-quo policies and flat funding, which did not address America’s infrastructure funding challenges. In March 2015, the Administration submitted to Congress an updated version of GROW AMERICA, consistent with the President’s FY 2016 Budget Request, which adds additional funding certainty by requesting a six-year, $478 billion multimodal proposal, including $115 billion to support our Nation’s public transportation systems. 

The GROW AMERICA Act continues the focus on FTA’s three key priorities: improving transit safety – FTA’s highest priority; addressing a transit asset maintenance backlog that’s more than $86 billion and growing; and building system capacity to meet growing ridership demand.

To that end, the President’s FY 2016 Budget Request seeks $18.4 billion to maintain existing transit systems in a state of good repair while expanding transportation options. The proposal increases average transit spending by nearly 76 percent above FY 2015 enacted levels, which will enable transit agencies to address immediate repair needs, enhance core capacity and plan for expansion to improve connectivity in suburbs, fast growing cities, small towns, and rural communities. GROW AMERICA also supports economic competitiveness by creating ladders of opportunity through workforce development initiatives and ensuring that manufactured products are produced in the United States. These transit investments will play a critical role in supporting communities around the country.

I. SAFETY

Public Transportation Safety (49 U.S.C. 5329; Section 3008 of GROW AMERICA)

MAP-21 amended 49 U.S.C. 5329 to give FTA authority for the first time to establish safety criteria for all modes of public transportation, and to establish minimum safety standards for public transportation vehicles used in revenue operations.

Keeping rail public transportation safe requires a partnership between FTA, transit agencies and those states that have state safety oversight (SSO) obligations. FTA will serve as a leader, facilitator, and final regulatory authority; transit agencies will be held responsible for the safe operation of their systems; and the SSOs will act as effective day-to-day safety oversight regulators capable of holding transit rail systems accountable and ensuring they comply with minimum state and federal safety standards.

Following the August 2013 publication of an ANPRM on safety, FTA published the SSO Program Notice of Proposed Rulemaking (NPRM) on February 27, 2015, outlining a program that will replace the existing outdated regulatory framework with one designed to better evaluate the effectiveness of a rail transit agency’s system safety program. This new framework will support the flexible, scalable principles of Safety Management Systems (SMS) to focus on organization-wide safety policy, proactive hazard identification and risk informed decision-making as part of risk management, safety assurance, and safety promotion.  Comments are requested on the SSO NPRM by April 28, 2015.  Relatedly, FTA intends to launch an SMS Implementation Pilot Program to assist transit agencies of all sizes and operations, including bus-only, in the development and maintenance of their Safety Management System.

FTA also recently published the Final Interim Safety Training Certification requirements designed to enhance the technical competencies and capabilities of individuals responsible for direct safety oversight of rail transit systems at agency, state and federal levels, and of individuals who conduct safety audits of these systems. These requirements become effective on May 28, 2015.

We intend to issue additional guidance and notices of proposed rulemaking in 2015, about such issues as the National Public Transportation Safety Plan, the Public Transportation Safety Program, the Transit Agency Safety Plan, the National Public Transportation Safety Certification Training Program and the Transit Asset Management Plan. Together, this framework will ensure safety standards are in place at each transit system across the country to protect the riding public and transit agency employees.

In the meantime, in order to better understand the strengths and weaknesses of public transit safety operations, FTA is utilizing its new safety authorities to collaborate with the Chicago Transit Authority to examine their safety program, and to conduct a Safety Management Inspection of the Washington Metropolitan Area Transit Authority, which began in early March 2015.

While MAP-21 gave FTA the authority to establish safety regulations, it did not provide FTA with expanded enforcement tools to ensure compliance with such regulations.  To that end, the GROW AMERICA Act bolsters FTA’s safety authority by allowing for the imposition of civil and criminal penalties and establishes emergency authority for FTA to restrict or prohibit unsafe transit practices.  It also includes data confidentiality for our grantees and an opt-out provision from the law’s SSO Oversight program. This will apply to states with fixed guideway public transportation systems, whether in operation, under construction, or in design, with fewer than one million combined actual and projected revenue miles per year, or which provide fewer than 10 million combined actual and projected unlinked passenger trips per year. FTA will oversee the safety of these exempted systems.  The GROW AMERICA Act would also provide resources to fully carry out the safety program, including providing an appropriate level of assistance to states and individual transit providers, while also enhancing safety data collection. 

II. TRANSIT ASSET MANAGEMENT

State of Good Repair (49 U.S.C. 5337 & 5339; Section 3010 of GROW AMERICA)

Returning transportation assets to a state of good repair is a strategic goal for the Department of Transportation (DOT) and a high priority for FTA.  Well-maintained infrastructure investments can have long-term economic benefits for the Nation, but those benefits are not fully realized because of years of underinvestment and neglect. This is evident in the DOT’s 2013 Conditions and Performance Report to Congress, which found an $86 billion maintenance backlog of rail and bus assets that are in marginal or poor condition. The backlog continues to grow at an estimated rate of $2.5 billion per year under current investment levels.

MAP-21 requires transit agencies to develop a Transit Asset Management plan to help them strike a better and more informed balance between preservation and expansion needs in the context of a safety-first performance culture. Strategic and targeted investments focused on replacing and rehabilitating aging transit infrastructure are needed to help bring our Nation’s bus and rail systems into a state of good repair. Having newer and more reliable track, signal systems, vehicles and stations will help ensure the safe, dependable and accessible transit service demanded by the American public.

FTA is actively working to implement this new National Transit Asset Management System through the rulemaking process, supplemented by technical assistance and outreach to grantees. Given the diversity of transit systems, from complex urban rail and bus networks, to demand response van systems in rural communities, a flexible approach will be paramount. FTA expects to issue a NPRM later this year, addressing the extensive comments received on the October 2013 Advanced NPRM, which aligned the transit asset management process with the need for strengthening transit safety. Additionally, on January 28, 2015, FTA published in the Federal Register final guidance to assist recipients applying for funding under the State of Good Repair Formula Grant Program.   

However, under MAP-21, our efforts still do not go far enough to address the backlog of maintenance. The current State of Good Repair Formula Grant Program focuses on rail and bus rapid transit (BRT) systems that are at least seven years old. The preservation needs of non-BRT bus services were severely impacted in MAP-21, with the decrease in funding for the Bus and Bus Facilities Formula Grant Program. The need for additional investments and innovative policies that address the backlog for all bus and rail maintenance still exists, and much more work remains to be done. To that end, the GROW AMERICA Act proposes a total of $7.6 billion in fiscal year 2016 to support FTA’s State of Good Repair efforts, and includes $5.7 billion for State of Good Repair Grants (49 U.S.C. 5337) and $1.9 billion for Bus and Bus Facilities Grants (49 U.S.C. 5339), with incremental increases in each fiscal year through the end of the authorization. 

All of these actions, taken together, reflect the U.S. Department of Transportation’s strategic commitment to address the infrastructure deficit in a holistic fashion—and to help the industry employ better metrics that enable them, in turn, to be better stewards of their assets.   

III. BUILDING SYSTEM CAPACITY

Core Formula Programs (49 U.S.C. 5307, 5310, 5311; Section 3003, 3004 of GROW AMERICA)

FTA’s formula grant programs provide the critical funding for the day to day business of transit agencies across America. MAP-21 retained the program structure for the formula programs with a few exceptions, which were implemented quickly in 2013. The Urbanized Area Formula Program (5307) provides critical capital funding to transit agencies for recapitalization needs. The Rural Formula program (5311) provides capital and operating funding to transit agencies serving in rural areas, tribal lands and Appalachian states. The Enhanced Mobility of Seniors & Individuals with Disabilities Formula Program (5310) provides funding for transit services that specifically target serving the elderly and disabled.

Since FY 2013, FTA has obligated more than $10.8 billion in funding for these three formula programs. GROW AMERICA builds on the baseline provided by MAP-21 by requesting a 2% increase for FY2016, with moderate increases thereafter for the life of the authorization.

Capital Investment Grants (49 U.S.C. 5309; Section 3002a of GROW AMERICA)

Not long after the enactment of MAP-21, FTA streamlined its New Starts and Small Starts Capital Investment Program through a final rule and accompanying guidance. The changes are helping local project sponsors shave up to six months off the time required to move major projects through the Capital Investment Grant (CIG) Program pipeline. Sponsors who choose to use the optional simplified travel model developed by FTA – a significant streamlining tool - may develop ridership forecasts in as little as two weeks, a dramatic timesaving from the two years it can take using traditional forecasting models, while saving as much as $1 million on related model forecast development costs. Additionally, FTA now has a more straightforward approach for measuring a proposed transit project’s cost-effectiveness, considers an expanded range of environmental benefits, and has simplified the administrative reporting process.

In April 2015, FTA requested comments from the industry on interim policy guidance that, when finalized, will continue to address MAP-21 provisions that govern the CIG program. The guidance provides a deeper level of detail about the methods for applying the project justification and local financial commitment criteria for rating and evaluating New Starts, Small Starts, and Core Capacity Improvement projects, and the procedures for getting through the steps in the process required by law. FTA is proposing to use simple eligibility parameters, simplified evaluation measures, and expanded “warrants” based on readily available, easily verifiable data to make the process less burdensome  and time consuming for project sponsors who qualify.

GROW AMERICA proposes to expand the CIG program by increasing the program funding level to match the growth in projects seeking funding. FTA has seen a steady rise in the demand for projects seeking Capital Investment Grant funding and a significant increase of projects requesting to enter project development since the passage of streamlined Capital Investment Grant program requirements in MAP-21. The FY 2016 CIG Annual Report includes many projects seeking construction grant agreements, and FTA has seen 44 new projects overall since MAP-21 took effect.

GROW AMERICA would also create a streamlined review process for simple, low-risk, cost-effective projects in smaller communities by adding a Very Small Starts category. Very Small Starts projects would be new corridor or regional-based bus services with premium features located in small urban or rural areas. 

Rapid Growth Area Transit Program (49 U.S.C. 5314; Section 3011 of GROW AMERICA)

GROW AMERICA proposes a new Rapid Growth Area Transit competitive program that will provide $500 million in capital funds in fiscal year 2016, with incremental increases each fiscal year through 2021, to help fast-growing communities introduce new BRT systems as part of their transportation mix.  BRT systems are a proven way to expand mobility relatively quickly and affordably, helping communities to get ahead of congestion and develop a transit-oriented culture as an integral part of their growth management strategy.

IV. ECONOMIC COMPETITIVENESS

Workforce Development (49 U.S.C. 5322; section 3005 of GROW AMERICA)

MAP-21 formally established the Innovative Transit Workforce Development Program under 49 U.S.C. 5322, which provides funding to transit agencies and partners with solutions to pressing workforce development issues. Program funds are used to address serious shortages in the skilled transit workforce—estimated to be 5,000 to 6,000 workers— by fostering job growth and a stronger workforce through ladders of opportunity initiatives that teach individuals technical skills to support the transit industry in the 21st century.

Rapidly changing technology and growing transit ridership along with plans to expand service has heightened the need for continued training in a variety of public transportation occupations. A new generation of workers must refine their skillsets to meet future demands and contribute to building our nation’s 21st Century transportation infrastructure.  GROW AMERICA will expand FTA’s workforce development efforts with a program that will fund and support innovative transit-focused training programs and apprenticeships, particularly at the regional and/or national level The Act will also establish a new Public Transit Institute to replace the current National Transit Institute (NTI), that allows FTA to expand training to cover blue-collar transit workforce training in addition to the management-level courses now offered by NTI. 

Local Hiring (49 U.S.C. 5325; Section 3007 of GROW AMERICA)

Currently, federal requirements prohibit the use of local-hiring preferences. It is important that we support local hiring as an effective tool to help men and women who are ready to work to obtain jobs, and job training, in their communities.  The GROW AMERICA Act allows the use of local hiring preferences in contracts using FTA funds for projects over $10 million when the work is in an area with a low per capita income or higher than average unemployment.  The local-hiring preferences are designed with flexibility and as such may not require the hiring of workers without the necessary skills, and the use of such preferences may not compromise the quality, timeliness, or cost of the project.

Emergency Relief (49 U.S.C. 5324; Section 3009 of GROW AMERICA)

A final rule establishing procedures governing the implementation of the Emergency Relief program became effective on November 6, 2014.  On February 4, 2015, FTA published its proposed “Emergency Relief Manual: A Reference Manual for States & Transit Agencies on Response and Recovery from Declared Disasters and FTA’s Emergency Relief Program”.  FTA sought public comment through April 6, 2015, and expects to finalize the guidance later this year.

While Congress appropriated $10.9 billion for Hurricane Sandy emergency relief efforts, these funds are only available for areas affected by Sandy. Congress did not appropriate funds for FTA's Emergency Relief program in FY 2013, FY 2014, or FY 2015, leaving the agency with no funds to immediately address any new disasters that that impact the transit industry. GROW AMERICA proposes that $25 million be appropriated in each fiscal year 2016 through 2021 to capitalize the program so that FTA stands ready to respond.

Buy America (49 U.S.C. 5323(j); Section 3006 of GROW AMERICA)

The Administration remains committed to preserving and creating home-grown jobs that support our domestic manufacturing industry and position the United States to take the lead in transportation-related innovation. Therefore, GROW AMERICA proposes to increase the domestic content requirement for manufacturing rolling stock components and subcomponents further than the current standard of 60 percent. With a phased increase, by 2020, 100 percent of the components and subcomponents for rolling stock, by cost, including rolling stock prototypes, will have to be produced in the United States. Final assembly in the United States remains a requirement, as under MAP-21.

Public-Private Partnerships (49 U.S.C. 5315)

FTA also recognizes the value of public-private partnerships as a means of augmenting public investments in infrastructure. On August 25, 2014, FTA published a final circular on Joint Development that clearly explains how FTA funds and FTA-funded property may be used for public transportation projects that are related to and often co-located with commercial, residential, or mixed-use development. The circular emphasizes the concept of “value capture,” which encourages FTA grantees to leverage Federal investments to capture revenue that can in turn be used to offset capital and operating expenses.

Additionally, FTA held an Online Dialogue with stakeholders on Public Private Partnerships in January 2015, and is using the information learned to develop a NPRM on Public Private Partnerships. We expect this rulemaking to address major barriers to utilizing this financing method, and propose methods to ease and encourage their use.

V. RESEARCH, PLANNING & ENVIRONMENT

Research (U.S.C. 5312; Section 3009 of GROW AMERICA)

GROW AMERICA includes $60 million in FY 2016 increasing to $70 million in FY 2021 to support research activities that improve public transportation systems by investing in the development, testing, and deployment of innovative technologies, materials, and processes. FTA partners with public institutions, transit agencies, non-profits, universities, and other entities, awarding funding for activities that improve safety, state of good repair, and help to advance transit vehicle and system technology.

Fixing and Accelerating Surface Transportation (FAST) (49 U.S.C. 5602; Section 1401 of GROW AMERICA)

GROW AMERICA includes a new $1 billion per fiscal year competitive grant program designed to spur major reform in the way States and metropolitan regions make transportation policy and investment decisions, and to encourage new and innovative solutions to transportation challenges. The FAST program will be jointly administered with the Federal Highway Administration (FHWA), each overseeing $500 million, to encourage the adoption of bold, innovative strategies and best practices in transportation that will have long-term impacts on all projects across the transportation programs. 

Performance-Based Planning & Accelerated Project Delivery

MAP-21 transformed the Federal-Aid Highway program and the Federal Transit program by requiring a transition to performance-driven, outcome-based approaches to key areas. With respect to planning, the statute introduced critical changes to the planning process by requiring States, MPOs, and providers of public transportation to link investment priorities to the achievement of performance targets for safety, infrastructure condition, congestion, system reliability, emissions, and freight movement.  FHWA and FTA jointly issued an NPRM on Metropolitan Transportation Planning, and Statewide and Nonmetropolitan Transportation Planning in June 2014, and are on target to issue a final planning rule later this year. The two agencies also jointly issued a final rule in October 2014 that creates five new categorical exclusions for transit projects, thereby shortening the environmental review process by requiring minimal analysis and documentation, where appropriate. These types of actions effectively cut red tape for funding recipients, reduce the administrative burden on state and local governments, and expedite results for the American public.

VI. CONCLUSION

The May 31^st expiration of the extension of MAP-21 offers an important opportunity to recalibrate the way our government evaluates and invests in our federally funded public transportation infrastructure. From a transit perspective, MAP-21 included provisions enabling FTA to focus limited resources on certain strategic investments and policies. The Administration’s comprehensive six-year reauthorization plan set forth in GROW AMERICA will provide FTA with the additional tools necessary to improve the riding experience for millions of Americans by repairing and modernizing transit systems and expanding capacity for generations to come.

I am committed to working together with this Committee to achieve our mutual goal of addressing America’s urgent need for investment in transit infrastructure. Thank you again for inviting me to testify on this important topic, and I will make myself and my staff available to answer your questions.