[Senate Hearing 117-735]
[From the U.S. Government Publishing Office]


                                                        S. Hrg. 117-735


ADVANCING PUBLIC TRANSPORTATION IN SMALL CITIES AND RURAL PLACES UNDER 
                   THE BIPARTISAN INFRASTRUCTURE LAW

=======================================================================

                                HEARING

                               BEFORE THE

                            SUBCOMMITTEE ON
           HOUSING, TRANSPORTATION, AND COMMUNITY DEVELOPMENT

                                 OF THE

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

                    ONE HUNDRED SEVENTEENTH CONGRESS

                             SECOND SESSION

                                   ON

EXAMINING PUBLIC TRANSPORTATION IN SMALL CITIES AND RURAL PLACES UNDER 
                   THE BIPARTISAN INFRASTRUCTURE LAW
                               __________

                             APRIL 6, 2022
                               __________

  Printed for the use of the Committee on Banking, Housing, and Urban 
                                Affairs


                  [GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
                  

                Available at: https://www.govinfo.gov/
                
                               __________

                    U.S. GOVERNMENT PUBLISHING OFFICE
                    
53-390 PDF                 WASHINGTON : 2023



            COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS

                     SHERROD BROWN, Ohio, Chairman

JACK REED, Rhode Island              PATRICK J. TOOMEY, Pennsylvania
ROBERT MENENDEZ, New Jersey          RICHARD C. SHELBY, Alabama
JON TESTER, Montana                  MIKE CRAPO, Idaho
MARK R. WARNER, Virginia             TIM SCOTT, South Carolina
ELIZABETH WARREN, Massachusetts      MIKE ROUNDS, South Dakota
CHRIS VAN HOLLEN, Maryland           THOM TILLIS, North Carolina
CATHERINE CORTEZ MASTO, Nevada       JOHN KENNEDY, Louisiana
TINA SMITH, Minnesota                BILL HAGERTY, Tennessee
KYRSTEN SINEMA, Arizona              CYNTHIA LUMMIS, Wyoming
JON OSSOFF, Georgia                  JERRY MORAN, Kansas
RAPHAEL WARNOCK, Georgia             KEVIN CRAMER, North Dakota
                                     STEVE DAINES, Montana

                     Laura Swanson, Staff Director

                 Brad Grantz, Republican Staff Director

                      Cameron Ricker, Chief Clerk

                      Shelvin Simmons, IT Director

                        Pat Lally, Hearing Clerk

                                 ______

   Subcommittee on Housing, Transportation, and Community Development

                      TINA SMITH, Minnesota, Chair

          MIKE ROUNDS, South Dakota, Ranking Republican Member

JACK REED, Rhode Island              RICHARD C. SHELBY, Alabama
ROBERT MENENDEZ, New Jersey          MIKE CRAPO, Idaho
JON TESTER, Montana                  BILL HAGERTY, Tennessee
CATHERINE CORTEZ MASTO, Nevada       CYNTHIA LUMMIS, Wyoming
CHRIS VAN HOLLEN, Maryland           JERRY MORAN, Kansas
JON OSSOFF, Georgia                  KEVIN CRAMER, North Dakota
RAPHAEL WARNOCK, Georgia             STEVE DAINES, Montana

                Tim Everett, Subcommittee Staff Director

         Kathleen Gayle, Republican Subcommittee Staff Director

                                  (ii)



                            C O N T E N T S

                              ----------                              

                        WEDNESDAY, APRIL 6, 2022

                                                                   Page

Opening statement of Chair Smith.................................     1
    Prepared statement...........................................    19

Opening statements, comments, or prepared statements of:
Senator Rounds...................................................     3
    Prepared statement...........................................    20

                               WITNESSES

Ryan Daniel, CEO, St. Cloud Metro Bus............................     5
    Prepared statement...........................................    21
Scott Bogren, Executive Director, Community Transportation 
  Association of America.........................................     7
    Prepared statement...........................................    23
    Responses to written questions of:
        Senator Tester...........................................    31
        Senator Warnock..........................................    33
Baruch Feigenbaum, Senior Managing Director, Transportation 
  Policy, Reason Foundation......................................     9
    Prepared statement...........................................    27

              Additional Material Supplied for the Record

Letter submitted by Joung Lee, Deputy Director--Chief Policy 
  Officer, AASHTO................................................    36

                                 (iii)

 
ADVANCING PUBLIC TRANSPORTATION IN SMALL CITIES AND RURAL PLACES UNDER 
                   THE BIPARTISAN INFRASTRUCTURE LAW

                              ----------                              


                        WEDNESDAY, APRIL 6, 2022

                               U.S. Senate,
  Committee on Banking, Housing, and Urban Affairs,
    Subcommittee on Housing, Transportation, and Community 
                                               Development,
                                                    Washington, DC.
    The Subcommittee met at 2:31 p.m., via Webex and in room 
538, Dirksen Senate Office Building, Hon. Tina Smith, 
Chairwoman of the Subcommittee, presiding.

             OPENING STATEMENT OF CHAIR TINA SMITH

    Chair Smith. Good afternoon. The Subcommittee on Housing, 
Transportation, and Community Development will come to order.
    The Infrastructure Investment and Jobs Act is about fixing 
the problems that Americans encounter every day. It represents 
the largest long-term investment in our Nation's infrastructure 
and competitiveness in a generation, and it is also going to 
create millions of good paying jobs with benefits. Just as 
important, it will make a direct and immediate impact on the 
lives of Americans. It is exactly the kind of thing that 
Washington ought to be spending time on and exactly the kind of 
thing that we came to the Senate to get done. So today's 
hearing will focus on how the Infrastructure and Jobs Act is 
supporting transit in small cities and rural areas and how we 
can make sure that it works.
    In June of 2021, this Subcommittee convened a bipartisan 
hearing to highlight the transit needs in rural communities, 
and we had excellent testimony from leaders from Minnesota, 
South Dakota, and Native communities as well. That hearing 
helped us to understand the issues facing rural transit 
providers, including how rural and tribal formula grant 
programs need funding boosts in order to meet the changing 
needs of their communities.
    We also held a hearing in Minnesota last summer to 
understand the transit needs in our State, my State, and I 
heard from cities like Rochester about their use of competitive 
transit grants to expand bus service and support projects like 
the Destination Medical Center.
    In August of this last year, the Senate passed the historic 
bipartisan infrastructure law, which boosted annual funding for 
rural transit. To give you an idea, this law is the largest 
investment in transit in a generation. In the first year of 
this new law, transit formula grants will jump 30 percent and 
continue to grow after that. This is an incredible opportunity 
for transit in small cities and rural places all over America.
    So now we turn to implementation. Our Committee's job is to 
provide oversight and to make sure that this historic 
investment is working as Congress intended. Already, the 
Federal Transit Administration has gone to work to cut through 
red tape and to get funding out to communities as quickly as 
possible. In fact, the FTA announced just today that this year 
my home State of Minnesota will receive $166 million in transit 
funds through the formula programs.
    The FTA also recently issued something called a NOFA, or 
Notice of Funding Availability, for two bus grant programs that 
simplified the paperwork transit agencies are required to fill 
out. Now this is important. This will make these grants more 
accessible for smaller operators who honestly do not have huge 
grant writing teams or even any grant writing teams on staff 
some of the time.
    The FTA has also held dozens of webinars and calls with 
transit agencies to provide technical support and to answer 
questions about the exciting opportunities that are available 
under this new law.
    So today, we want to hear from our panel about the impact 
the Infrastructure Investment and Jobs Act will have on transit 
in small cities and rural places. We want to know what 
implementation issues we should keep an eye on and how this 
Committee and the Federal Government can help support local 
creativity and innovation in rural transit.
    Here is just one example. During the pandemic, Minnesota 
transit systems innovated and served as a lifeline for 
families. Minnesota was one of the first States to use transit 
to bring vaccines home to people. Tri-CAP, which serves the 
five-county area around St. Cloud, provided reverse transit, 
bringing medications and other necessities to people, 
especially the elderly, who would not have been able to access 
them otherwise. This is the type of innovation that smaller 
transit operators can do, and we ought to be thinking about how 
we in Congress can support this kind of work.
    So rural and small city transit systems are leading the 
way, innovating with on-demand service, specialized routes, and 
routes that connect people to specific destinations. Today, we 
are going to have a chance to learn how this is going and how 
the Infrastructure Investment and Jobs Act can support this 
innovation. As we listen to the panel of rural transit leaders 
today, I ask you to keep in mind the veteran who needs to get 
to a VA clinic or the person who is trying to get back on their 
feet by completing job training or a senior who is looking 
forward to their weekly fresh produce delivery.
    Three years ago, Senator Rounds and I teamed up with 
Senator Fischbach from Nebraska and Senator Baldwin from 
Wisconsin to create the Rural Economy Working Group, and our 
goal was to highlight the strengths and assets in diverse rural 
communities and to learn from our rural leaders about how the 
Federal Government can be a better partner, a good partner, in 
supporting their leadership.
    We know that small cities and towns and rural places 
produce our food and energy and are hubs of manufacturing and 
entrepreneurship, education, health care, arts, culture, and we 
need these communities to work for everyone, and that means 
transportation has to work. And for transportation to work, we 
need to see viable, efficient, well-functioning transit 
systems, buses, paratransit, and on-demand services, to name a 
few.
    And now with the rising gas prices caused by this terrible 
and brutal invasion of Ukraine by Putin, we can see how 
important it is to move rapidly to clean energy and renewable 
fuels. When it comes to clean energy, the United States can 
lead or we can follow, and I want us to lead. I also want to 
see opportunities for electric vehicles and low-carbon 
renewables like ethanol and biodiesel, which is so important in 
Minnesota, to be available in Greater Minnesota and in rural 
places all over America.
    The fact is rural transit providers are full of great ideas 
for how to meet the needs of communities when it comes to 
mobility, and we need to listen. So I look forward to our 
witnesses today, from hearing about how the Federal Government 
could be a good partner in delivering on the promise of the 
bipartisan infrastructure bill in smaller cities and rural 
areas.
    And I want to thank Senator Rounds and his staff for 
working with us on this important hearing and for his 
partnership on all these issues.
    Thank you, Senator Rounds, and I recognize you now for an 
opening statement.

            OPENING STATEMENT OF SENATOR MIKE ROUNDS

    Senator Rounds. Thank you, Madam Chair, and most certainly 
we appreciate the opportunity to work with you in addressing 
rural issues. And, in particular, this is one that I think 
affects our States in the Midwest just as it does States 
throughout the country but very important that we address this 
and we make sure that the dollars are spent in an appropriate 
fashion.
    I want to begin by also thanking our witnesses for taking 
the time to attend today's hearing and to share their expertise 
with us.
    Last year, President Biden signed into law the 
Infrastructure Investment and Jobs Act which allocated an 
unprecedented amount of taxpayer dollars to transit systems 
across the country. This law provided a 67 percent increase in 
annual Federal funding for public transportation when compared 
to the annual amount provided in the previous authorization. 
This is not including the $69.5 billion for transit in the 
response to COVID-19 nor the $340 million provided through the 
Public Transportation Relief Program.
    Now of the $108 billion authorized and appropriated through 
the Infrastructure Investment and Jobs Act for public 
transportation, it is important to note that just $4.56 billion 
was allocated for the rural formula program all the while 
States like New York and California are estimated to receive 
$11 billion and $10 billion, respectively.
    With this investment comes a need for critical oversight to 
make certain that this money is spent on fixes that will make 
the most impact. Therefore, as we move to implement this 
legislation, it is important to discuss the challenges facing 
rural communities in offering safe, affordable, and reliable 
methods of transportation.
    Rural areas cover 97 percent of U.S. land area, and most 
rural residents still rely on their own vehicles as their main 
means of transportation. Overall, rural residents travel about 
33 percent more, rural workers travel 38 percent more, and 
lower-income rural workers, 59 percent more annual miles than 
those in urban areas. Rural residents spend more time and money 
on transportation and are more vulnerable to transportation 
problems like vehicle maintenance issues, they lose their 
ability to drive, or fuel prices spike as they have right now.
    Therefore, rural roads are heavily traveled and critical 
for maintaining the way of life in South Dakota and the rest of 
rural America. The frequency of travel on some of these rural 
roads has further increased over the past years as tourism has 
become a growing business in the rural U.S. Most of the 
country's national parks are located in rural regions, like Mt. 
Rushmore in South Dakota, which draws a large number of 
visitors each year.
    In addition, with agriculture dominating most rural 
communities, much of the Nation's food industry relies on the 
transportation of products over long distances on rural roads 
and highways. The safety and structural integrity of these 
roads is important to maintain an interconnected transportation 
system.
    With few communities in South Dakota having an actual fixed 
route bus system, a majority of rural transit offerings are 
modes of paratransit, which provide transportation for the 
elderly and/or persons with disabilities. Roughly 31 percent of 
the populations in rural communities are either elderly or 
disabled, and these two demographics within a community often 
need transportation services for doctor's appointments or to 
complete grocery shopping. Due to the need to travel long 
distances, driver shortages, and lower ridership, providing on 
demand rides in rural areas can be extremely expensive.
    As we implement the Infrastructure Investment and Jobs Act, 
I think we should explore ways to utilize public-private 
partnerships to make local, State, and Federal dollars go 
further. We should also be looking at new ways to use 
technology. Just as an example, in Sioux Falls, South Dakota, 
the Sioux Area Metro, known as SAM, is trying out a SAM On 
Demand phone app which allows riders to request rides on their 
smartphones to increase ridership and efficiency.
    During implementation of the infrastructure law, it is also 
critical to reduce the regulatory burden as much as possible 
for the truly small communities around the country. In South 
Dakota and in rural Minnesota, our rural transit agencies 
servicing small towns do not have the capacity to wade through 
endless red tape. Rural communities must have the freedom to 
use the funding in ways that serve them, not be forced into a 
one size fits all approach. To manage these issues, resources 
must be allocated to the most vital areas of the transport 
system, and I think our Subcommittee should remain focused on 
the oversight of those resources.
    I look forward to hearing from our witnesses today and 
learning more about ways rural America can best utilize the 
resources of the infrastructure law.
    And I would simply close by thanking our Chairman for 
having this meeting today. I think it is important that we 
start out on the right area and focus appropriately on the 
funding that is available and where it is going to. Thank you, 
Madam Chair.
    Chair Smith. Thank you, Senator Rounds.
    I am now going to introduce our witnesses. Thank you so 
much for being with us today. I will introduce all three of you 
and then turn to each of you in turn to make your opening 
statements.
    Ryan Daniel is the Chief Executive Officer of St. Cloud 
Metro Bus in St. Cloud, Minnesota. Mr. Daniel also serves as 
President of the Minnesota Public Transit Association.
    And I would like to note that he is accompanied today by 
St. Cloud Mayor Dave Kleis--it is good to see you, Mayor--and 
also Minnesota Valley Transit Authority, CEO, Luther Wynder. 
Thank you for being with us.
    Scott Bogren is the Executive Director of the Community 
Transportation Association of America. Thank you very much for 
being with us.
    And, Baruch Feigenbaum is the Senior Managing Director for 
Transportation Policy at the Reason Foundation.
    Welcome and thank you all for being with us today, and we 
look forward to your testimony.
    You may each begin--before you begin your opening 
statements, just a few reminders. For witnesses, you will have 
5 minutes for your opening statements. Your full written 
statement will be made part of the record. And for witnesses 
and Senators in the hearing room, the light in front of you, as 
you know, will turn yellow when you have 1 minute remaining and 
red when your time is up. I am sure we will be able to manage 
with our time constraints.
    Thank you very much, and I will turn now to our first 
witness.

       STATEMENT OF RYAN DANIEL, CEO, ST. CLOUD METRO BUS

    Mr. Daniel. Thank you, Madam Chair, for this opportunity to 
testify regarding the bipartisan Infrastructure Investment and 
Jobs Act and its impact on smaller transit systems. I am 
testifying today as Chief Executive Officer of St. Cloud Metro 
Bus and also as President of the Minnesota Public Transit 
Association, which includes transit systems throughout the 
State, urban, suburban, and rural.
    First, I would like to express our deep appreciation for 
the increased funding provided in the IIJA law. The 30 percent 
increase in formula funds, as well as for programs like the bus 
and bus facility program, will make a huge difference as 
transit systems continue to rebuild and serve a growing number 
of riders in the wake of the pandemic. The impact of this law 
for St. Cloud Metro Bus and other transit systems will be 
expanding higher quality transit service over the next 5 years. 
Knowing the level of funding we will have allows all transit 
systems to plan efficiently and allows us to provide stable bus 
service to our customers.
    I would also like to thank the Federal Transit 
Administration for its work in communicating with transit 
systems and working hard to get the money delivered as quickly 
as possible. Many of the transit system managers in Minnesota 
have participated in webinars and had questions answered by the 
detailed information provided by the FTA.
    The Notice of Funding Opportunity issued for the no-low 
emission bus program allows transit systems the opportunity to 
apply for funds that will expand their fleets while protecting 
the environment. Metro Bus has been transitioning our fleet to 
low-emissions CNG since 2014. We are proud to say we are now 90 
percent CNG. With additional funding opportunities such as the 
no-low emission program, in the next 5 years, our organization 
is planning to apply for funds to replace a large majority of 
our CNG bus fleet, which will reach its useful life in 2026.
    According to the American Public Transit Association's 
calculation, we will be getting additional formula funds. With 
this increase in funds, Metro Bus will be in a better position 
to attract safe, reliable transit operators, allowing us to 
maintain and possibly expand our service as well as keep up 
with technological advances in the industry and the overall 
workforce, moving into a new post-pandemic world.
    In rural areas of Minnesota, residents who ride our buses 
often have no other option for getting to important medical 
appointments, jobs, school, family events, and to access 
services. For example, Betty in Worthington uses Community 
Transit to get to medical appointments, the hair salon, and 
weekly shopping trips. Without this bus service, she would have 
a hard time living in her own home and would probably need to 
leave her community to live in a larger city that had transit 
service available.
    Unfortunately, Community Transit has limited service hours 
and capacity to meet all of the needs of residents in the nine 
county service area that it covers. We appreciate the focus of 
IIJA on providing resources to underserved areas. Smaller 
communities struggle to pay for weekend or evening service, but 
residents need to get to important destinations after 4 or 5 in 
the afternoon. As decisions are made about allocating 
discretionary dollars provided through the IIJA, we urge FTA to 
follow through on prioritizing areas that currently leave many 
people without the level of transit service they need.
    Rural communities also struggle to generate funding to meet 
local match requirements to access State and Federal funds. We 
applaud your work, Madam Chair, along with Senator Rounds, to 
pass the Investments in Rural Transit Act to reduce the need to 
charge local residents more in order to access additional 
transit resources in areas with lower densities and lower 
incomes. The new law's focus on modernizing the fleet is very 
important. Many of our systems in Minnesota find themselves 
running buses with over 250,000 miles due to difficulties in 
purchasing new buses. As systems struggle to keep older 
vehicles operating, the maintenance costs increase while 
dependability decreases. Any assistance that can be provided in 
helping systems purchase new vehicles will make a big 
difference in the impact that the IIJA in the short term 
improving transit service.
    Another important issue for smaller transit systems in the 
implementation of this law is the technical assistance. Rural 
systems, with a small number of staff, have a hard time dealing 
with new reporting or planning requirements and developing 
funding applications without some additional technical 
assistance. Some systems in Minnesota have been successful in 
securing competitive funding for new buses or facilities in the 
past, but most systems are stretched thin and do not have the 
capacity to careful track all funding opportunities and 
effectively compete for new funding. Any resources that can be 
provided to help smaller systems apply for a variety of funding 
sources will be greatly appreciated.
    The additional stable funding provided by the 
Infrastructure Investment and Jobs Act will allow smaller 
transit systems to plan and deliver more frequent, higher 
quality bus service to more residents and more communities. As 
the new law is implemented, we urge Federal agencies to focus 
on better service for communities with little to no service and 
to work closely with smaller transit systems to reduce the 
burden of regulations, reporting requirements, matching funding 
requirements, and the level of work needed to apply for 
discretionary Federal transportation funds. Investing in the 
mobility of rural residents will provide a strong return as 
people are able to remain in their own homes, living 
independent, productive lives and contributing to their local 
communities.
    Madam Chair, I thank you for your time.
    Chair Smith. Thank you very much. Mr. Bogren.

   STATEMENT OF SCOTT BOGREN, EXECUTIVE DIRECTOR, COMMUNITY 
             TRANSPORTATION ASSOCIATION OF AMERICA

    Mr. Bogren. Chair Smith and Ranking Member Rounds, really 
appreciate the chance to be here today to speak with you about 
rural, small urban, tribal, and specialized transportation.
    My organization, the Community Transportation Association, 
we have about 1,200 members around the country, and that is 
where they come from. And it is really great to hear that both 
of you really recognize what rural transit systems look like. 
They are not scaled-down versions of WMATA here or the L.A. 
Metro. They are unique systems that are serving very unique 
communities and oftentimes, I think as you have rightfully 
shown, working with an on-demand type of service.
    Our written testimony goes into a lot of, I think, 
opportunities when it comes to the bipartisan infrastructure 
law and things to kind of keep an eye on when we are looking at 
the implementation. I just want to cover a few here in my 
remarks.
    One thing is the non-Federal share. Our rural, tribal, 
small cities often use Federal formula funds to operate. They 
are allowed to do that, but that requires a 50-50 match between 
Federal and non-Federal. And coming out of a pandemic that has 
had pretty rough economic consequences in rural America, and 
then on top of that the increases in rural transit funding that 
we are grateful for, it puts a lot of pressure on these systems 
to be able to match these funds. I have even had some of my 
members talk about they are operating aging vehicles. They see 
the funding that is put in place now to put new fleets out, and 
they are not competing because they do not have the local match 
to compete.
    Another one is equitable access to the competitive grants 
that are there. The new law has a number of competitive grant 
programs. We are probably all--and you were mentioning the bus 
and low-no NOFA because kind of that is the first thing that 
has happened with the bipartisan infrastructure law. Small 
agencies need that set-aside. The bus and bus facilities 
program has a 15 percent set-aside for rural communities, and 
that is important because, as both of you are well aware, they 
do not have the capacity to compete with major metropolitan 
areas.
    A lot of CTA's members in the last months--the general 
manager I would try to call, and they would say, she is out 
driving today. You wear a lot of hats in rural systems. And so 
they need to be competing with other systems that are the same 
size, and that is really important. Overall, our members 
operate vehicles and buses. So to see the kind of investment we 
see in that NOFA for those types of vehicles, the workhorses of 
public transit around the country, was just wonderful to see.
    Also, within that NOFA, two things I wanted to point to. 
One was the Federal Transit Administration has done a great job 
of engaging with smaller agencies to make sure that though they 
may require fleet transition plans for systems as they move 
toward the low-and-no emission vehicles, though they may 
require that, they are understanding that a 6-bus system in 
Watertown, South Dakota, should have a different set and its 
plan should look different than an urban operator with 300 
buses. It was really great to see that, and that is really the 
kind of understanding and, I think, good partnership we need to 
see.
    Further, that NOFA included 25 percent of the low-and-no 
emission funds set aside for low-emission vehicles. Battery 
electric buses are great for urban spaces. They are really only 
available in very big sizes. Smaller agencies need to move in 
that direction. You have mentioned some of the fueling that 
works in Minnesota. A lot of our members are using CNG, 
propane. Let us keep working toward that.
    This law comes at an ideal time for our membership. It 
really allows them to have the kind of investment they need to 
design and redesign their operations so that they can be as 
relevant as possible to the communities they are serving. They 
can take advantage of technological innovations, and they can 
work with new partners, both public and private, to really meet 
the needs.
    The essential equation in public transit is sometimes lost 
in these discussions. It is the trip, and it is the people. 
Folks like Ryan, they are not in the business of operating 
buses; they move people. Every day, our members connect 
isolated, older adults with a healthy meal or a trip to the 
grocery store. We connect the patient three times a week with 
life-sustaining dialysis. We work with persons with 
disabilities to make sure they are getting essential job 
training. And, we even sometimes are working with parents to 
attend visitations with a child placed in foster care, reducing 
the time it takes for that parent to reunify with their child. 
That is just some of the work our members do.
    Thanks for allowing me to tell their stories today, and I 
look forward to answering any questions you may have.
    Senator Smith. Thank you. Mr. Feigenbaum.

   STATEMENT OF BARUCH FEIGENBAUM, SENIOR MANAGING DIRECTOR, 
            TRANSPORTATION POLICY, REASON FOUNDATION

    Mr. Feigenbaum. Chairman Smith, Ranking Member Rounds, and 
fellow Committee Members, thank you for the ability to testify 
today. My name is Baruch Feigenbaum. I am Senior Managing 
Director for Transportation Policy at Reason Foundation, a 
nonprofit think tank with offices in L.A. and D.C. For almost 
five decades, Reason's transportation experts have advised 
Federal, State, and local policymakers on market-based 
approaches to transportation.
    I am a graduate of the Georgia Institute of Technology, 
with degrees in public policy, transportation planning, and 
transportation engineering. Before working at Reason 
Foundation, I managed a van pool program in suburban Atlanta 
and handled transportation issues for former Representative 
Lynn Westmoreland.
    With Reason, I have offered research studies on policies 
that could improve urban and rural transit as well as the 
effectiveness of infrastructure financing and funding. I have 
worked with more a dozen States to implement transportation 
policy reform, and I serve on the Transportation Research 
Board, Bus Transit Systems, and Intelligent Transportation 
Systems Committee as well as chairing the Bus Rapid Transit 
Subcommittee. Finally, I am currently writing a book on how to 
create a 21st century transit system. My testimony today draws 
on these experiences.
    While much of the focus in the transit world is on 
providing mobility in urbanized areas, not enough attention is 
paid to rural areas. More than 60 million people live in rural 
areas, and some of them rely on transit services to reach their 
jobs, doctors, and grocery stores.
    In the transit world, we distinguish between transit 
dependent and transit-choice riders. Transit-dependent riders 
are those who do not have the means to access private vehicles. 
Transit-choice riders are those who do have the means but 
choose transit instead. Due to economic challenges in rural 
areas, a growing percentage of rural riders are transit 
dependent. Nationally, the average transit trip takes twice as 
long as driving, but in rural areas the multiple is even 
greater.
    Since most rural transit riders are dependent on transit, 
my testimony is going to focus on those transit dependent 
individuals. Obviously, transit service looks different in 
rural areas than in urban areas. While a heavy-rail subway line 
makes sense for New York City and a bus rapid transit line 
makes sense for Atlanta, fixed-route transit is seldom the best 
solution in rural areas. I have five recommendations for 
improving transit service to best serve rural populations.
    Recommendation number one, right-size transit vehicles to 
meet rural needs. While there may be some rural towns that can 
support a few fixed-route bus lines, the better solution for 
rural municipalities is flexible options like demand-response 
transit, where vehicles alter their services to meet riders' 
demands, and paratransit, which provides tailored services to 
people who are elderly or with disabilities.
    Several different types of vehicles are ideal for providing 
mobility in rural areas. The first vehicle type is a privately 
owned automobile such as a ride-hail vehicle or taxi. Many 
rural areas have operated dial-a-ride taxi or Uber-like service 
for years. The second type of vehicle is a van that seats 
between 7 and 15 people. These vans are often used for van 
pools in an urban area but can operate as flexible minibuses in 
rural areas.
    Recommendation two, contract out service or create a 
nonprofit to operate it. While the public service has been the 
traditional operator of transit services, my research has 
revealed that contracted transit services and services 
delivered by nonprofit agencies are better and cheaper than 
public service provision. With contracted services, the agency 
enters into a contract with an operator such as First Transit 
or TransDev. These contracts can specify specific metrics to 
ensure accountability and results. For example, contracts can 
detail the maximum number of minutes a rider can be made to 
wait before being picked up or the geographic locations of 
service that must be covered.
    Another possible model is having a nonprofit entity operate 
the service. Rural Transit Service, which operates in upstate 
New York, is a good model. In that case, the Transit Service, 
southwest of Buffalo, relies on a network of 130 volunteers to 
drive and maintain the vans as well as handle administrative 
services. Most riders contribute money to their trips, but no 
riders are denied service for inability to pay.
    Recommendation number three, reduce regulations. One of the 
challenges that rural transit agencies have is abiding by 
Federal regulations. Some small counties, such as Randolph 
County, Georgia, have chosen not to offer transit service 
because officials say they cannot afford the staff needed to 
comply with regulations.
    To help reduce the burden on these rural systems, the FTA 
and its National Transit Data base recording should allow 
systems below a certain size to provide agency-profiled data 
but not including the more rigorous data that is more time 
consuming to collect. Congress could also eliminate costly 
mandates, such as Buy America, that drive up costs for local 
governments. And finally, the Department of Transportation has 
proposed amending 2132-AB38 on charter service, regulation of 
buses and van pools, and 2132-AB40 on bus testing. It is not 
clear what changes those regulations would have, but I would 
urge the Committee Members to pay attention.
    Recommendation number four, try to improve efficiency. 
Rural transit services rarely typically struggle to cover a 
small share of their costs. My colleague and I found that most 
systems had a fare box recovery rate of 5 to 15 percent whereas 
urban systems have a fare box recovery rate of closer to 40 
percent. Clearly, rural transit systems are always going to 
need to be subsidized, but looking at things such as a 
computerized dispatch center and ensuring that union contracts 
have flexibility will help decrease costs.
    Finally, recommendation number five, focus more on local 
funding sources and less on Federal sources. Funding is often 
the biggest challenge for rural transit systems. The recently 
passed IIJA provides a 29 percent increase in guaranteed 
Federal transit funding to $91 billion over 5 years. There are 
also several grant programs, including a $2 billion rural 
transportation discretionary grant. However, my research finds 
local government funding is more important than Federal funding 
because local officials know their communities best. State and 
local funding also comes on top of Federal funding, providing a 
more robust resource share.
    Thank you for the opportunity to testify today on the need 
to improve rural transit services. I would be happy to answer 
any and all questions either orally or in writing.
    Senator Smith. Thank you very much to all of our guests 
today.
    We will now begin a round of 5-minute questions, and I will 
start and then hand it off to Senator Rounds. So each of you, 
in one way or another, have talked about how rural transit 
systems account for more than half of the Nation's overall 
transit systems. And we know how important they are to 
communities, and they often do not get near the attention that 
they deserve given how important they are.
    Let me turn to Mr. Daniel and Mr. Bogren. So the passage of 
the Infrastructure Investment and Jobs Act is going to help 
these transit systems to continue to serve. Can you both talk 
about what you see as the one or two most significant issues 
facing rural or small city transit systems right now and how 
the Infrastructure Investment and Jobs Act is going to assist? 
Mr. Daniel, you can start.
    Mr. Daniel. Well, rural systems throughout Minnesota need 
increased funding to make improvements to their services. 
Modernizing the bus fleet would be number one, and 
technological advances would be number two. We always have to 
look for ways to enhance the customer experience. With the use 
of technology, that would be one way that we could enhance that 
customer experience--the use of mobile ticketing, smart apps, 
smartcard systems, and also looking at modernizing the bus 
fleet or the vehicle fleet. If the buses are operating at the 
rate of 250,000 miles, 9 out of 10, that bus might be in the 
shop more than it is on the road.
    So those would be the two recommendations that I have, look 
to modernize the fleet and also look at the technological 
advances because you want to make providing transit to the 
public the process as seamless as possible.
    Chair Smith. Great.
    Mr. Daniel. And the use of technology will be very 
important in that aspect as well.
    Chair Smith. Thank you.
    Mr. Bogren. I think a lot of it was in the bill, the Rural 
Transit Act, that both of you put forward last year. We need 
help with the local match. That is critical. And the other 
thing you will not be surprised to hear, systems are having a 
really tough time finding drivers. Most of the operators that I 
talk to right now, were it not for the lack of having a full 
labor, they cannot get to their ridership levels prepandemic. 
They are hovering in the 60 to 70 percent recovered ridership, 
which is great, but they can do more and want to do more.
    So I would say it is those two issues right now. It is the 
local match, and it is the labor shortage.
    Chair Smith. Yep. I know that Senator Rounds and I both 
agree on the challenges around local match, and we tried hard 
to get that resolved in the bill, and we will keep working on 
that.
    Let me ask you whether--we are hearing a lot about 
challenges around supply chains, and I am wondering if either 
of you can address the needs, the issues, around supply chains 
and how that is affecting maybe amongst your members your 
ability to be able to put these dollars to work.
    Mr. Bogren. Well, I think that is an issue. We--I have been 
doing this for 33 years. I never thought I would see $1.5 
billion in bus funding put out in a single Notice of Funding 
Availability, and the irony is many of the smaller agencies are 
telling me they are expecting a 48-plus month, maybe even a 3 
year, wait period before that new vehicle can get there. The 
vehicles that smaller agencies operate are oftentimes built on 
kind of an OEM chassis, like a Ford chassis, and 
understandably, the competition for those limited chassis is 
very high. So, yeah, I am concerned that it is going to take a 
while before you really start to see the impact of this capital 
investment out there in the field with new vehicles.
    Chair Smith. You are seeing the same thing, Mr. Daniel?
    Mr. Daniel. That is correct.
    Chair Smith. Yeah.
    Mr. Daniel. I am seeing the same thing.
    Chair Smith. Now I know--I want to go to the question of 
workforce quickly. I know that small and rural transit 
providers in Minnesota tell me that the drivers' workforce 
issues are a really big deal. And it is not just drivers; it is 
also the dispatchers and office staff and all the people that 
are required to make a system work. One provider told me about 
that if just two people call in sick on any given day then they 
have to shut down the route. They do not--they cannot just move 
people around.
    And of course, many rural transit providers rely heavily on 
volunteer drivers, and there is a series of bureaucratic issues 
that have made retaining those volunteer drivers really 
difficult.
    So, Mr. Bogren, can you talk about that briefly and how can 
we in Congress help with that issue?
    Mr. Bogren. Again, it comes down to rightsizing. You know, 
there were movements in the development of the IIJA to move the 
threshold where you would need a CDL down to eight passengers. 
It is currently at 16 plus the driver. That would have just 
meant these smaller agencies would have had to go out and find 
more CDL-approved drivers. The FMCSA, in February, put out new 
rules on entry-level driving for CDL, getting that license. We 
need to make that simpler.
    The State of Minnesota is doing some really good work on 
that, by the way, in terms of training and developing regional 
approaches. We think that is going to be critical. That is one 
of the issues.
    And look, it is just we are in an era of a lot of 
competition. We are competing for drivers, even with these 
smaller vehicles, with UPS and Fedex and Amazon, and we have 
got to come up with ways--whether they are apprenticeship 
programs and working with community colleges in the area, we 
have got to come up with some new ways to develop our workforce 
and bring them into what we do.
    Chair Smith. Thank you.
    Senator Rounds.
    Senator Rounds. Thank you, Madam Chair.
    According to the American Public Transportation 
Association, there are approximately 1,159 rural transit 
systems nationwide, accounting for more than half of the 
Nation's transit systems. However, in most cases, rules and 
regulations are developed with a larger system in mind, 
creating compliance burdens for the truly small systems. I 
know, Mr. Daniel, you mentioned that in your opening statement, 
and Mr. Feigenbaum, you have made it pretty clear that you 
think there are some modifications that need to be made as 
well.
    In terms of the current regulatory burden that small, rural 
transit systems face and the importance of keeping that burden 
as low as possible as implement this Act, Mr. Feigenbaum, can 
you begin by just sharing with us a few more, specifically the 
regulations that you think would be most effective that we 
should be looking at modifying or at least taking a second look 
at?
    Mr. Feigenbaum. Sure. I believe that the most effective one 
would be the reporting in the National Transit Data base. And 
just to clarify that a little bit further, right now every 
transit agency has to report data on, I believe, something like 
15 different categories, which takes a ton of staff time. It is 
reasonable to expect a transit system in New York or Los 
Angeles to do that, but I do not think a small transit system 
can do that.
    Small transit systems should just be provided--allowed to 
provide the minimum amount of data that basically covers fare 
box recovery ratio, passengers, and the amount of funding they 
get in their budget each year. I think that would be plenty 
sufficient to ensure that the transit agencies are being a good 
steward of taxpayer dollars but not be overly onerous.
    I also think the Buy America situation is pretty important. 
It really increases capital costs for transit vehicles by a 
lot, anywhere from 30 to 50 percent. It also increases the 
amount of time to get those vehicles. So when a transit agency 
needs a vehicle, they are often relying on an older vehicle 
that has been mentioned may have 250,000 or miles and not in 
the best shape simply because it takes months and months and 
months to go through that. And there are some vehicles that are 
not even built in this country, and so the international 
company actually has to set up a factory in this country so 
they are compliant with Buy America.
    Finally, there is a lot of regulations that the Department 
of Transportation is proposing. The two that are pending right 
now, 2132-AB38 and 2132-AB40, on charter service, regulation of 
buses and van pools, and on bus testing, I do not know what is 
going to come out of them. They may be helpful. Generally, my 
opinion is that less is more in this type of situation. We 
should be focusing only on the regulations that are needed for 
safety and not on other purposes, whatever they might be.
    So those would be my top three.
    Senator Rounds. Thank you, sir.
    Mr. Daniel, I know in your opening statement you commented 
on some of these issues. Would you concur with what Mr. 
Feigenbaum is suggesting?
    Mr. Daniel. Yes, I concur.
    Senator Rounds. Thank you, sir.
    Mr. Bogren.
    Mr. Bogren. Yes. I think rightsizing regulations for the 
smaller agencies, it just makes a lot of sense. When we think 
about things like electrifying vehicles, smaller communities in 
South Dakota, they should be working with the schools; they 
should be working with the municipal vehicles, so they can 
increase their buying power and kind of work with these kind of 
regional approaches because when you buying two or three 
vehicles you do not have the same purchasing power.
    And it is just all the regulations just need to kind of be 
filtered through and understood that an agency with the budget 
size and the staff size that a lot of my members have needs 
just be right-sized.
    Senator Rounds. Thank you. The elderly or disabled make up 
almost a third of the population in rural communities and are 
often the two demographics within a community that need 
transportation services the most, whether to commute to a job 
or to get to a doctor's appointment or buy their groceries. 
They rely on paratransit services to get them safely to where 
they need to go.
    Mr. Bogren, could you discuss some of the unique transit 
challenges truly small, rural communities, like my own 
community of Pierre or Fort Pierre, South Dakota, face as they 
try to reach these individuals?
    Mr. Bogren. I learned a lot. I remember one time I was 
riding one of Barb Klein's [phonetic] buses out in the western 
part of South Dakota. You know, here in the East Coast, when we 
think about public transit, it is like how do we get this 
person to their destination as absolutely fast as possible. 
That is the point. And you ride on rural vehicles with an older 
adult, and that may be their whole socializing for the day, and 
they do not actually mind if they get an extra half an hour on 
the vehicle to catch up with their neighbors.
    And the passengers, they know the drivers and vice versa. 
If that is a different driver, you will get, oh, who is that? 
Where is Jerry, the person who is usually driving me?
    So--and that is a growing part of the population, and you 
know, there is nothing worse than the isolation that older 
adults face when they lose their mobility. I am dealing with 
that personally with my own family right now, and trying to 
take the car keys away from my father is really hard because he 
views it as a diminished quality of life. These services stand 
in that and make their years fruitful still and very valuable.
    Senator Rounds. I will just share with you my own father 
passed away in 2018, but a couple years before that one of the 
difficult decisions we had was suggesting to dad that it was 
time that he not drive. It just happened to have been based 
upon me getting a phone call from the local transit driver, who 
I knew, and he calls, Mike, your dad just tried to make a left 
turn out of Burger King onto the highway again that was not 
good. But once again, it is a case of where public transit is 
necessary in those small communities and they really do make a 
difference.
    Thank you. Thank you, Madam Chair.
    Chair Smith. Next, we will hear from Senator Ossoff, who is 
joining us remotely.
    Senator Ossoff. Thank you, Madam Chair, and thank you for 
hosting this hearing. Thank you to our panel.
    Mr. Bogren, in the last several years, communities across 
Georgia have embraced microtransit. Valdosta's new microtransit 
program is expected to average 170 riders, and this January 
completed close to 300 rides per day. The majority of these 
riders have a household income of $25,000 per year or less. And 
working with local leaders, I was recently able to secure an 
additional million dollars to expand the Valdosta On Demand 
microtransit fleet.
    With the increased funding through the bipartisan 
infrastructure law, Mr. Bogren, how do you see microtransit 
transforming transit service for small cities like Valdosta, 
Georgia, and rural communities over the next 5 years?
    Mr. Bogren. Well, what it will do is it will provide an 
entirely new way to serve areas. Typically, we kind of--a city 
the size of Valdosta would have had fixed-route service, maybe 
operating buses at an hour headway, and what the on-demand 
model is proving in Valdosta is it can increase service, serve 
more people and do it at a lower cost. And we view that as a 
very important model that we want to see all sorts of other 
communities investing in and trying, and it is a place where we 
can partner with the private sector and also where we can 
onboard the kind of technology that really makes the service 
more relevant to a passenger than what we have often done in 
communities that size, which is the bare minimum when it comes 
to a fixed-route service.
    Senator Ossoff. Thank you, Mr. Bogren. In Georgia, 36 of 
our 159 counties still have no access to any public 
transportation. In my view, this is an unacceptable lack of 
access to transportation.
    We just heard from my Republican colleague, Senator Rounds, 
there is bipartisan support for transit in rural communities. 
That is one of the reasons I offered the Local Transit Planning 
Support Act, which empowers the Federal Government to provide 
more help to low-density and low-income communities as they 
plan their transportation networks, and that legislation was 
signed into law by President Biden as part of the bipartisan 
infrastructure law.
    Mr. Bogren, how can communities without public 
transportation networks, like Harris County in the 
Chattahoochee River Valley, Newton County in metro Atlanta, or 
for example, Houston County in central Georgia, take advantage 
of the Local Transit Planning Support Act to begin planning and 
implementing transit services in their own communities?
    Mr. Bogren. Well, I think the planning is critical and, you 
know, rural areas are now more kind of economic regions than 
they are isolated, self-contained, little towns. And in the 
counties that are unserved in Georgia, we need to bring those 
counties together to look at what are the big trip generators 
and what are the big important destinations, health care, 
higher ed, obviously, work and others of those types of 
environments, and that kind of planning that you have built in 
there is exactly what needs to take place.
    And we also need to make sure, cognizant of what Senator 
Rounds said earlier, that--and we really believe that--people 
with disabilities and older adults need to be a part of that 
planning process. We need inclusive planning because the 
services are often targeting and built for them, and yet, we do 
not sometimes in the planning process involve them in that 
service.
    Senator Ossoff. Thank you, Mr. Bogren. We can look as well 
at rural areas with significant manufacturing presence, where 
workers need to be able to get to and from work, to and from 
the store, to and from the doctor, as building regional 
authorities who can engage in this planning together. We are 
looking at some possibilities for that in west Georgia.
    Mr. Daniel, I want to discuss paratransit with you. High 
quality public transportation means more than just regular 
buses and trains. It is an integral public service. Communities 
across Georgia are looking to improve their paratransit 
services. In Chatham County, for example, in coastal Georgia, 
there are plans to build a new paratransit maintenance 
facility, allowing Chatham area transit to provide ABA-
compliant transit services while increasing efficiency and 
reliability. How do you see the increased resources through the 
bipartisan infrastructure law serving the expansion and 
improvement of paratransit services, for example, in Chatham 
County and the broader ABA community, please?
    Mr. Daniel. With the use of the Federal funds in providing 
higher quality public transit service, we have to focus on the 
areas of technology, safety, security, delivering service, and 
new buses.
    With the technology, this includes real-time bus updates 
for our customers, mobile ticketing, mobile apps, and smart 
fare cards. This will help provide customers with convenient 
transportation and position public transit as a whole as a 
legitimate option for travel. These improvements enhance the 
customer experience and enable increased independence for 
community members who may otherwise be homebound or reliant on 
family and friends to get to work or medical appointments.
    In terms of safety, touchless fare payment reduces physical 
interaction between the bus operators and customers, thereby 
protecting both groups, especially during the flu and COVID 
seasons.
    In terms of security, comprehensive camera systems will 
help ensure customers and employees are confident that their 
ride----
    Senator Ossoff. OK, Mr. Daniel. I am sorry, my time is 
going to expire in a moment. I wanted to focus on paratransit 
there.
    But with the Chair's forgiveness, I am just going to ask 
one more question. Mr. Bogren, this bipartisan infrastructure 
law is a tremendous opportunity to invest in public 
transportation in fast-growing communities like Augusta, 
Georgia, home to Fort Gordon, the Cyber Center of Excellence, 
and Augusta University Medical Center. What opportunities do 
you see, Mr. Bogren, for cities like Augusta, who have, for 
example, that high tech and military footprint and are growing, 
to invest in forward leaning technologies that keep up with 
changing and growing demand?
    Mr. Bogren. Well, I think there is a lot of opportunities 
to do that. I cannot tell you how many of our members have 
military veterans in the operations environment because they 
are used to that environment and they are used to working with 
technology, and there is a lot of them coming on board right 
now.
    For instance, we have done a lot of talking here about on 
demand, but there is no reason that what we are learning in 
Valdosta cannot be applied in the Augusta part of your State 
and looked at. Granted, each community is unique, but some of 
the operational environments that are out there, the ability 
now to pay for technology, buy vehicles, and really pay for 
capital to make these happen, has never been greater, and we 
need to make that work.
    Chair Smith. Thank you, Senator.
    Senator Ossoff. Thank you, Mr. Bogren.
    Thank you, Madam Chair.
    Chair Smith. Thank you, Senator Ossoff.
    I believe that Senator Rounds does not have any additional 
questions. So I am just going to ask one final question 
directed to Mr. Bogren, and this has to do with tribal transit. 
I would love to just talk about that briefly. Senator Rounds 
and I both sit on the Indian Affairs Committee, and I know also 
that the Infrastructure Investment and Jobs Act provided 
massive increases in funding for FTA's Tribal Transit Program. 
And of course, transit in Indian Country is just as vital as it 
is in any other rural community, in some ways almost more so. 
So could you just comment briefly on what impact this will have 
on tribal transit and what we need to be keeping in mind on 
this Committee there?
    Mr. Bogren. Tribal communities are very unique communities. 
I have worked with them in both Minnesota and South Dakota. But 
you know, the need is there; it is desperate. And the growth 
that the bill provides is so, so needed.
    We were meeting with a bunch of tribes last week up in 
Alaska with some of my staff, and you know, what they can do 
now because there were so many tribes competing for a fixed 
amount through the FAST Act, this amount, great growth, and 
also it grows throughout the 5 years in this bill. We know this 
program is going to be oversubscribed. It always is, and that 
is because the tribes have health care needs, they have job and 
commute transportation needs, and they have to do it in often 
very isolated, rural communities, where if they do not 
transport their tribal members no one will.
    Chair Smith. Right. Thank you very much.
    Well, I want to just say thank you to all of our witnesses 
for being here today and for your testimony. I think we have 
heard a clear message about the importance of understanding the 
unique needs of small, rural transit providers. We heard great 
messages about how we need to rightsize our regulations, our 
vehicles, how we need to be thinking about using these dollars 
to help modernize systems, increase technology in these 
systems, and also, as we have said, address some of the 
challenges around drivers that we are seeing everywhere, not 
only in transit. So I want to thank you very much.
    I hope to work more with you, Senator Rounds, on these 
issues facing rural transit providers and operators, and to 
continue to push our Investments in Rural Transit Act, and I am 
sure that we will be able to find other ways to help out rural 
and small transit providers as we implement this legislation in 
a good bipartisan way.
    Before we adjourn, I would like to just enter into the 
record a letter from the American Association of State Highway 
and Transportation Officials with recommendations for 
implementation of the bipartisan infrastructure bill. Without 
objection, so ordered.
    Chair Smith. And for any Senator who wishes to submit 
questions for the record, those questions are due 1 week from 
today, which will be Wednesday, April 13th. For our witnesses, 
you have a 45-day period to respond to those questions for the 
record, and thank you again for participating.
    And with that, this hearing is adjourned.
    [Whereupon, at 3:27 p.m., the hearing was adjourned.]
    [Prepared statements, responses to written questions, and 
additional material supplied for the record follow:]
                 PREPARED STATEMENT OF CHAIR TINA SMITH
    Good afternoon. The Subcommittee on Housing, Transportation, and 
Community Development will come to order.
    The Infrastructure Investment and Jobs Act is about fixing the 
problems Americans encounter every day. It represents the largest long-
term investment in our Nation's infrastructure and competitiveness in a 
generation. It's also going to create millions of good paying jobs. 
With benefits.
    Just as important, it will make a direct and immediate impact in 
the lives of Americans. It's exactly the kind of thing Washington ought 
to spend more time working on--and exactly the kind of thing I came to 
the Senate to get done.
    Today's hearing will focus on how the Infrastructure Investment and 
Jobs Act is supporting transit in small cities and rural areas, and how 
we can make sure it works.
    In June 2021, this Subcommittee convened a bipartisan hearing to 
highlight the transit needs in rural communities, and we had excellent 
testimony from leaders from Minnesota, South Dakota, and Native 
communities in Northeast Oklahoma.
    That hearing helped us to understand the issues facing rural 
transit providers, including how rural and Tribal formula grant 
programs needed funding boosts to meet the changing needs of their 
communities.
    We also held a field hearing in Minnesota last summer to understand 
the transit needs of our State. I heard from cities like Rochester 
about their use of competitive transit grant to expand bus service and 
support the Destination Medical Center project.
    In August of last year, the Senate passed the historic, bipartisan 
infrastructure law, which boosted annual funding for rural transit. 
This law is the largest investment in transit in a generation. In the 
first year of this new law, transit formula grants will jump 30 percent 
and continue to grow after that. This is an incredible opportunity for 
transit in small cities and rural places.
    Now we turn to implementation. Our Committee's job is to provide 
oversight, and make sure this historic investment work as Congress 
intended.
    Already, the Federal Transit Administration (FTA) has gone to work 
to cut through red tape and get funding out to communities. In fact, 
the FTA announced just today that this year Minnesota will receive $166 
million in transit funds through formula programs. The FTA also 
recently issued a combined ``NoFo,'' or notice of funding availability, 
for two bus grant programs, that simplified the paperwork transit 
agencies are required to fill out. This will make these grants more 
accessible for smaller operators who don't have huge grant-writing 
teams.
    The FTA has also held dozens of webinars and calls with transit 
agencies to provide technical support and answer questions about the 
exciting opportunities available under the new law.
    Today, we want to hear from our panel about the impact the 
Infrastructure Investment and Jobs Act will have on transit in small 
cities and rural places. We want to know what implementation issues we 
should keep an eye on, and how this Committee and the Federal 
Government can help support local creativity and innovation in rural 
transit.
    Here's an example:
    During the Pandemic, Minnesota transit systems innovated, and 
served as a lifeline for families. Minnesota was one of the first 
States to use transit to bring vaccines to people at home. TriCap, 
which serves the five county area around St. Cloud, provided ``reverse 
transit,'' bringing medications and other necessities to people, 
especially the elderly, who couldn't access them. This is the type of 
innovation that smaller transit operators can do, and we ought to be 
thinking about how we in Congress can support this type of work.
    Rural and small city transit systems are leading the way, 
innovating with on demand service, specialized routes, and routes that 
connect people to specific destinations. Today we're going to have a 
chance to learn how this is going, and how the Infrastructure 
Investment and Jobs Act can support this innovation.
    As we listen to the panel of rural transit leaders today, I ask you 
to keep in mind the veteran who needs to get to a VA clinic, the person 
who's trying to get back on their feet by completing job training, or a 
senior who is looking forward to their weekly fresh produce delivery.
    Three years ago, Senator Rounds and I teamed up with Senator 
Fischer from Nebraska and Senator Baldwin from Wisconsin to create the 
Rural Economy Working Group.
    Our goal was to highlight the strengths and assets in diverse rural 
communities, and to learn from rural leaders about how the Federal 
Government can be a good partner--a better partner in supporting their 
leadership.
    Small cities and towns and rural places produce our food and energy 
and are hubs of manufacturing and entrepreneurship, education, health 
care, arts, and culture. We need these communities to work for 
everyone. And that means transportation has to work. And for 
transportation to work, there need to be viable, efficient, well-
functioning transit systems--busses, paratransit, on-demand services, 
and more.
    Now, with rising gas prices caused by the terrible, brutal invasion 
of Ukraine by Putin, we can see how important it is to move rapidly to 
clean energy and renewable fuels. When it comes to clean energy, the 
United States can lead or we can follow, and I want us to lead. And, I 
want the opportunities for electric vehicles and low carbon renewables 
like ethanol and biodiesel to be available in greater Minnesota, and in 
rural places all over America. The fact is, rural transit providers are 
full of great ideas for how to meet the needs of their communities when 
it comes to mobility, and we need to listen.
    I look forward to hearing from our witnesses today about how the 
Federal Government can be a good partner in delivering on the promise 
of the bipartisan infrastructure bill in smaller cities and rural 
areas.
    I want to thank Senator Rounds and his staff for working with us on 
this important hearing, and for his partnership on these issues. Sen. 
Rounds is recognized for his opening statement.
                                 ______
                                 
               PREPARED STATEMENT OF SENATOR MIKE ROUNDS
    Thank you, Madame Chair, and thank you to our witnesses for taking 
the time to attend today's hearing and share your expertise.
    Last year, President Biden signed into law the Infrastructure 
Investment and Jobs Act, which allocated an unprecedented amount of 
taxpayer dollars to transit systems across the country. This law 
provided a 67 percent increase in annual Federal funding for public 
transportation when compared with the annual amount provided in the 
previous authorization. This is not including the $69.5 billion for 
transit in response to COVID-19 nor the $340 million provided through 
the Public Transportation Relief Program. Of the $108 billion 
authorized and appropriated through the Infrastructure Investment and 
Jobs Act for public transportation, it is important to note that just 
$4.56 billion was allocated for the Rural Formula Program. All the 
while, States like New York and California are estimated to receive $11 
billion and $10 billion respectively.
    With this investment comes a need for critical oversight to make 
certain that this money is spent on fixes that will make the most 
impact. Therefore, as we move to implement this legislation, it is 
important to discuss the challenges facing rural communities in 
offering safe, affordable, and reliable methods of transportation.
    Rural areas cover 97 percent of U.S. land area and most rural 
residents still rely on their own vehicles as their main means of 
transportation. Overall, rural residents travel about 33 percent more, 
rural workers travel 38 percent more and lower-income rural workers 59 
percent more annual miles than those in urban areas. Rural residents 
spend more time and money on transportation and are more vulnerable to 
transportation problems like vehicle maintenance issues, they lose 
their ability to drive or fuel prices spike as they are now.
    Therefore rural roads are heavily traveled and critical for 
maintaining the way of life in South Dakota and the rest of rural 
America. The frequency of travel on some of these rural roads has 
further increased over the past years as tourism has become a growing 
business in the rural United States. Most of the country's national 
parks are located in rural regions, like Mount Rushmore in South 
Dakota, which draws a large number of visitors each year. In addition, 
with agriculture dominating most rural communities, much of the 
Nation's food industry relies on the transportation of products over 
long distances on rural roads and highways. The safety and structural 
integrity of these roads is important to maintain an interconnected 
transportation system.
    With few communities in South Dakota having an actual fixed-route 
bus system, a majority of rural transit offerings are modes of 
paratransit which provide transportation for the elderly and/or persons 
with disabilities. Roughly 31 percent of the populations in rural 
communities are either elderly or disabled and these two demographics 
within a community often need transportation services for doctor's 
appointments or to complete grocery shopping.
    Due to the need to travel long distances, driver shortages and 
lower ridership, providing on-demand rides in rural areas can be 
extremely expensive. As we implement the Infrastructure Investment and 
Jobs Act, I think we should explore ways to utilize public-private 
partnerships to make local, State, and Federal dollars go further. We 
should also be looking at new ways to use technology. For instance, in 
in Sioux Falls, South Dakota, the Sioux Area Metro, known as SAM, is 
trying out a ``SAM on-demand'' phone app--which allows riders to 
request rides on their smartphones to increase ridership and 
efficiency.
    During implementation of the infrastructure law, it is also 
critical to reduce the regulatory burden as much as possible for the 
truly small communities around the country. In South Dakota, our rural 
transit agencies servicing small towns do not have the capacity to wade 
through endless red tape. Rural communities must have the freedom to 
use the funding in ways that serve them, not be forced into a one-size-
fits-all approach.
    To manage these issues, resources must be allocated to the most 
vital areas of the transport system and I think our Subcommittee should 
remain focused on the oversight of those resources. I look forward to 
hearing from our witnesses today and learning more about ways rural 
America can best utilize the resources from the infrastructure law.
                                 ______
                                 
                   PREPARED STATEMENT OF RYAN DANIEL
                        CEO, St. Cloud Metro Bus
                             April 6, 2022
    Thank you Madam Chair for this opportunity to testify regarding the 
bipartisan Infrastructure Investment and Jobs Act and its impact on 
smaller transit systems.
    I am testifying today as Chief Executive Officer of St. Cloud Metro 
Bus and also as President of the Minnesota Public Transit Association 
which includes transit systems throughout the State--urban, suburban, 
and rural.
    First, I would like to express our deep appreciation for the 
increased funding provided in the IIJA law. The 30 percent increase in 
formula funds as well as for programs like the Bus and Bus Facilities 
program will make a huge difference as transit systems continue to 
rebuild and serve a growing number of riders in the wake of the 
pandemic. The impact of this law for St. Cloud Metro Bus and other 
transit systems will be expanding, higher-quality transit service over 
the next 5 years. Knowing the level of funding we will have, allows all 
transit systems to plan efficiently and allows us to provide stable bus 
service to our customers.
    I would also like to thank the Federal Transit Administration for 
its work in communicating with transit systems and working hard to get 
the money delivered as quickly as possible. Many of the transit system 
managers in Minnesota have participated in webinars and had questions 
answered by the detailed information provided by FTA. The NOFO already 
issued for the No-Low Emission Bus program allows transit systems the 
opportunity to apply for funds that will expand their fleets while 
protecting the environment. Metro Bus has been transitioning our fleet 
to low emissions CNG since 2014; we are proud to say we are now 90 
percent CNG. With additional funding opportunities, such as the No-Low 
Emission program, in the next 5 years, our organization is planning to 
apply for funds to replace a large majority of our CNG bus fleet, which 
will reach its useful life in 2026.
    According to American Public Transit Association's (APTA) 
calculation we will be getting additional 5307 formula funds. With this 
increase in funds, Metro Bus will be in better position to attract 
safe, reliable transit operators allowing us to maintain, and possibly 
expand, our service, as well as keep up with technological advances in 
the industry and the overall workforce moving into a new, post-pandemic 
world.
    In rural areas of Minnesota, residents who ride our buses often 
have no other option for getting to important medical appointments, 
jobs, school, family events, and to access services. For example, Betty 
in Worthington uses Community Transit to get to kidney dialysis, the 
hair salon, and weekly shopping trips. Without this bus service, she 
would have a hard time living in her own home and would probably need 
to leave her community to live in a larger city that had transit 
service available. Unfortunately, Community Transit has limited service 
hours and capacity to meet all of the needs of residents in the 9 
county service area that it covers.
    We appreciate the focus of IIJA on providing resources to 
underserved areas. Smaller communities struggle to pay for weekend or 
evening service but residents need to get to important destinations 
after 4 or 5 in the afternoon. As decisions are made about allocating 
discretionary dollars provided through the IIJA we urge the FTA to 
follow through on prioritizing areas that currently leave many people 
without the level of transit service they need.
    Rural communities also struggle to generate funding to meet local 
match requirements to access State and Federal funds. We applaud your 
work Madam Chair, along with Senator Rounds, to pass the Investments in 
Rural Transit Act to reduce the need to charge local residents more in 
order to access additional transit resources in areas with lower 
densities and lower incomes.
    The new law's focus on modernizing the fleet is very important. 
Many of our systems in Minnesota find themselves running buses with 
over 250,000 miles due to the difficulties in purchasing new buses. As 
systems struggle to keep older vehicles operating, the maintenance 
costs increase while dependability decreases. Any assistance that can 
be provided in helping systems purchase new vehicles would make a big 
difference in the impact that the IIJA will have in the short-term in 
improving transit service.
    Another important issue for smaller transit systems in the 
implementation of this law is technical assistance. Rural systems with 
a small number of staff have a hard time dealing with new reporting or 
planning requirements and developing funding applications without some 
additional technical assistance. Some systems in Minnesota have been 
successful in securing competitive funding for new buses or facilities 
in the past, but most systems are stretched thin and do not have the 
capacity to carefully track all funding opportunities and effectively 
compete for new funding.
    Any resources that can be provided to help smaller systems apply 
for a variety of funding sources would be greatly appreciated.
    The additional, stable funding provided by the Infrastructure 
Investment and Jobs Act will allow smaller transit systems to plan and 
deliver more frequent, higher-quality bus service to more residents and 
more communities. As the new law is implemented, we urge Federal 
agencies to focus on better service for communities with little no 
service and to work closely with smaller transit systems to reduce the 
burden of regulations, reporting requirements, matching funding 
requirements and the level of work needed to apply for discretionary 
Federal transportation funds. Investing in the mobility of rural 
residents will provide a strong return as people are able to remain in 
their own homes living independent, productive lives and contributing 
to their local communities.
Volunteer Drivers
    In Minnesota, volunteer drivers provide 168,000+ rides each year 
for older adults and other nondrivers, giving them access to health 
care and other essential community services and products. Organizations 
with volunteer driver programs serve more than 77,000 people each year 
and drivers cover more than 9.5 million miles. Volunteer driver 
programs provide critical transportation for people as well as 
transport for meals and other products, including donated organs. The 
IRS-approved mileage reimbursement rate of just 14 cents for volunteer 
drivers is a significant barrier to recruiting and retaining 
volunteers.
    MPTA urges you to increase the Federal reimbursement rate for 
volunteer drivers to match the rate set by the IRS for business 
mileage.
The Mobile Vaccination Bus Project
    Transit systems jumped into action when the COVID-19 pandemic hit 
to provide new services in their communities. In Minnesota, food 
delivery services using transit buses helped many families and seniors 
to receive food without having to travel to stores, keeping at-risk 
people safe.
    Another initiative was using buses to get more COVID vaccines to 
more people. During the duration of the Mobile Vaccination Bus Project, 
a partnership of organizations including the Minnesota Department of 
Health, the Minnesota Department of Transportation, and Metro Transit 
hosted 272 events and administered 7,082 vaccines to community members. 
Additionally, 94 percent of community partners who completed post-event 
surveys reported that the Mobile Vaccination Bus Project provided 
COVID-19 vaccines to people who otherwise would not have had access.
    The MDH Mobile Vaccine Bus Project was centered on bringing COVID-
19 vaccines to communities of focus, many of which have historically 
faced barriers to health care. Based on post event survey data, more 
than half of mobile clinics served African American and Latinx 
communities, and more than a third served Persons with Disabilities.
    Additionally, the Mobile Vaccination Bus Project was committed to 
reaching communities in all geographic settings in Minnesota, making 
stops in urban, suburban, and rural communities. In total, the buses 
visited 111 zip codes and 42 different counties in the State.
CDL Licensing for Transit Drivers
    Hiring and retaining bus operators remains a major challenge for 
many transit systems. One of the problems we have faced in Minnesota is 
the lack of facilities and staff to administer road tests for drivers 
to acquire a commercial drivers license. St. Cloud Metro Bus benefits 
from having access to CDL licensing services within our system. We are 
working to secure authority to provide this training and testing to 
other transit systems in Minnesota. Long wait times for CDL testing and 
the high demand for drivers with a CDL license has proved to be a big 
barrier to many transit systems in maintaining and expanded local 
service.
Customer Testimonials
    Minnesota Valley Transit Authority Customer Patrick is an elderly 
gentleman who no longer drives. His son was unable to continue to 
transport him to and from work at Walmart in Apple Valley due to 
scheduling conflicts. Patrick has expressed gratitude for our Connect 
service as he would not be able to get to his job without it.
    The Legends of Apple Valley is a senior living complex serviced by 
our Connect buses. Initially one resident reached out for 
transportation assistance for daily tasks such as doctor appointments 
or small shopping trips. She enjoyed the service so much that she 
spread the word to her neighbors in the apartment complex. Soon we were 
receiving a wide variety of calls from Legends of Apple Valley 
residents requesting assistance in setting up the app so they could 
schedule their own rides.
    Rochester, Minnesota, is home of the world-renowned Mayo Clinic, 
and also home to Rochester Public Transit (RPT)--a robust public 
transit service serving three key customer types: a large number of 
commuters into a dense urban core, a growing number of passionate 
``choice-riders,'' and a diverse group of transit-reliant customers 
from all walks of life. RPT operates 32 fixed routes 365 days a year, 
and a complimentary paratransit service for persons with disabilities. 
Rochester is also currently in the process of seeking Federal Small 
Starts funding to build the first bus rapid transit line in Greater 
Minnesota.
    Recently a local educator shared her perspective on the role 
Rochester Public Transit plays in supporting the Rochester Community. 
Karen Cook is the Outreach, Volunteers, and ESL Navigator for the Adult 
and Family Literacy Program in the Rochester Public School district.

        At the Hawthorne Education Center in Rochester, Minnesota, I 
        work with Adult Basic Education students who are seeking 
        education to better their lives through English as a Second 
        Language (ESL), General Educational Development (GED) classes 
        and testing, college preparation courses, Citizenship, and 
        more.

        The majority of these students have barriers and challenges 
        that have impacted their educational journey. By educating 
        students about how to use Rochester Public Transit, the local 
        bus service, I am helping them to overcome one of those 
        barriers.

        Students have shared with me the independence they now feel 
        after practice transfers, feeling confident in reading a route 
        schedule, and making to possible to live more independently by 
        navigating to school, work, and appointments.

        One such student is Amina, a new U.S. Citizen. She able to use 
        public transportation to go to work and school; she was no 
        longer dependent upon family members to take her where she 
        needs to go. She is enjoying her freedom as a new citizen as 
        well as independence to navigate the city.

        Marcus, who is working to complete his GED, is better able to 
        attend school while working because he is able to study while 
        riding the bus. He can make the most of his opportunities to 
        improve his life. His attendance is better in the classroom 
        because of this.

        Because they are students at Hawthorne, they are eligible to 
        purchase a student rate pass for a great reduction which adds 
        to the great benefit of public transit by making it more 
        affordable.
                                 ______
                                 
                   PREPARED STATEMENT OF SCOTT BOGREN
  Executive Director, Community Transportation Association of America
                             April 6, 2022
    Subcommittee Chair Smith, Ranking Member Rounds, and Members of the 
Subcommittee:
    My name is Scott Bogren and I have been the Executive Director of 
the Community Transportation Association of America, better known as 
CTAA, for 6 years. I have been with CTAA, in a variety of capacities, 
for a total of 33 years, working directly with smaller transit 
operators around the country.
    As the Executive Director of a national, nonprofit membership 
organization representing more than 1,200 rural, small-urban, tribal, 
specialized (i.e., agencies serving people with disabilities, older 
adults, veterans, etc.) and nonemergency medical transportation 
operators across the country, it is an honor to be selected to appear 
before you today regarding the equitable implementation of the 
Bipartisan Infrastructure Law (BIL) in rural and small-city America. 
For our members around the country, there is no more important topic.
    Public transportation is a national program, with operations in 
virtually every corner of the country today. The implementation of the 
landmark BIL, which commits unprecedented Federal investment in public 
transit, must accordingly benefit all transit operators. For CTAA 
members, the key Federal transit programs that I'll be referring to in 
this written testimony (as well as in my oral remarks) are the Section 
5311 Rural Public Transportation Formula Program, the Section 5310 
Enhanced Mobility of Seniors and Individuals with Disabilities Program, 
the Section 5307 Urban Public Transportation Formula Program (focusing 
on the small-urban portion targeting urbanized areas with populations 
of less than 200,000) and the Section 5339 Bus and Bus Facilities 
Dedicated Capital Program.
    Throughout the COVID-19 pandemic, the Federal Transit 
Administration (FTA) has been a valuable partner and asset to CTAA 
members around the country. The agency has worked quickly to apportion 
record amounts of Federal investment in public transportation while 
continuing to maintain an open dialogue with smaller operators to 
ensure a right-sized approach to competitive grant requirements.

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    Thank you for the opportunity to share CTAA's insights and thoughts 
on Advancing Public Transportation in Small Cities and Rural Places 
under the Bipartisan Infrastructure Law. Congressional support for 
rural, tribal, small-city and specialized transit operations has 
allowed these agencies to survive the COVID-19 pandemic largely intact, 
with the ability to continue to serve their communities and passengers. 
Our members all around the Nation thank you.
                                 ______
                                 
                PREPARED STATEMENT OF BARUCH FEIGENBAUM
   Senior Managing Director, Transportation Policy, Reason Foundation
                             April 6, 2022
    Chairman Smith, Ranking Member Rounds, and fellow Committee 
Members:
    My name is Baruch Feigenbaum. I am senior managing director for 
transportation policy at Reason Foundation, a nonprofit think tank with 
offices in Los Angeles and Washington, DC. For almost five decades 
Reason's transportation experts have advised Federal, State, and local 
policymakers on market-based approaches to transportation.
My Credentials on Today's Topic
    I am a graduate of the Georgia Institute of Technology with degrees 
in public policy, transportation planning, and transportation 
engineering. My master's thesis studied induced demand in growing areas 
and potential solutions. Before working with Reason Foundation, I 
managed a vanpool program in suburban Atlanta and handled 
transportation issues for former U.S. House Representative Lynn 
Westmoreland.
    With Reason, I have authored research studies on policies that 
could improve mobility, highway quality, highway congestion, urban and 
rural transit, and the effectiveness of infrastructure financing and 
funding. I have worked with more than a dozen States and numerous 
counties to implement transportation policy reforms. I currently serve 
on the Transportation Research Board of the National Academies of 
Sciences and Intelligent Transportation Systems Committee, as well as 
chairman of the Bus Rapid Transit Subcommittee. Finally, I am currently 
writing a book on how to create a 21st-century transit system. My 
testimony today draws on these experiences.
Overview of Testimony: The Differences Between Urban and Rural Areas 
        and Between Transit-Dependent and Transit-Choice Customers
    While much of the focus in the transit world is understandably on 
providing mobility in urbanized areas, not enough attention is paid to 
rural areas. More than 60 million people live in rural areas, and some 
of them rely on transit services to reach their jobs, doctors, and 
grocery stores.
    In the transit world we often distinguish between transit-dependent 
and transit-choice riders. Transit-dependent riders are those that do 
not have the means to access private vehicles. Transit-choice riders 
are those who do have the means to access private vehicles but choose 
transit services. Due to economic challenges in rural areas, a growing 
percentage of rural riders are transit-dependent today and existing 
transit service in many areas is inadequate. Nationally, the average 
transit trip takes twice as long as driving, but in rural areas the 
multiple is even greater. Since most rural transit riders are dependent 
on transit, my testimony is going to focus on serving these 
individuals.
    Obviously transit service looks different in rural areas than in 
urban areas. While a heavy-rail subway line makes sense for New York 
City, and a bus rapid transit line makes sense for Atlanta, fixed-route 
transit is seldom the best solution in rural areas. I have four 
recommendations for improving transit services to best serve rural 
populations, especially transit-dependent riders.
Recommendation Number 1: Right-Size Transit Vehicles To Meet Rural 
        Needs
    While there may be some rural towns that can support a few fixed-
route bus service lines, the better solution for these rural 
municipalities are going to be more flexible options like demand-
response transit, where vehicles alter their services to meet riders' 
demands, and paratransit, which provides tailored service to people 
with disabilities. Several different types of vehicles are ideal for 
providing mobility in rural areas. The first vehicle type is a 
privately owned automobile, such as a ride-hail vehicle or taxi. Many 
rural areas have operated dial-a-ride taxi- or Uber-like service for 
years. The second type of vehicle is a van that seats between seven and 
15 people. These vans are often used for vanpools in urban areas but 
can operate as flexible, mini-buses in rural areas. The vans can 
transport multiple passengers from residential areas to places like 
grocery stores and medical complexes. Taxis and ride-hail vehicles are 
operated by private operators, such as Yellow Cab and Uber. Vans can be 
operated by the public, private, or nonprofit sectors.
    For either option, there are two principal ways for citizens to 
schedule rides:

    By phone or by website a day before the trip, in which case 
        a vehicle arrives at a set time the next day;

    In real-time, in which case the vehicle arrives in a two-
        three hour window the same day.
Recommendation Number 2: Contract Out Service or Create a Nonprofit To 
        Operate Service
    While the public sector has been the traditional operator of 
transit services, my research has revealed that contracted transit 
services and services delivered by nonprofit agencies are better and 
cheaper than public-sector provision. With contracted services, the 
transit agency enters into a contract with a private operator, such as 
First Transit or TransDev. These contracts can specify specific metrics 
to ensure accountability and results. For example, contracts can detail 
the maximum number of minutes a rider can be made to wait before being 
picked up, the hours of day the service will operate, the geographic 
locations the service must include along with any restrictions on the 
service. Often, different geographic areas will be bundled together if 
one area requires higher subsidies for operating transit than another 
area.
    Successfully contracting out service requires both carrots and 
sticks. The transit operator must pay a penalty if it does not meet the 
contractual standards. However, the transit operator can also receive 
bonuses if it exceeds the standards and implements additional 
improvements. These contracts are open to competition and re-bid every 
3-to-7 years, with rigorous selection criteria, including the incumbent 
providers' performance, used by the transit agency evaluating the bids.
    Another possible rural transit model is having a nonprofit entity 
operate the service. Rural Transit Service, which operates in upstate 
New York, is a good model. In that case, the transit service southwest 
of Buffalo relies on a network of 130 volunteers to drive and maintain 
the vans, as well as handle administrative services. Most riders 
contribute money to their trips, but no riders are denied service for 
inability to pay. Community members also provide funding for the 
service.
    It is good public policy to subsidize a transit-dependent 
individual, who otherwise would not be able to get to work and would 
then need to rely on additional Government assistance. Absent transit 
subsidies, for example, fixed-income retirees may not be able to reach 
important medical appointments. It makes less sense to subsidize other 
transit-choice riders who have the means to pay for the full costs of 
their transit trips. In the U.S., it is clear that all transit systems 
require some level of subsidies to operate, but the goal should always 
be to minimize subsidies while providing quality transit services to 
those most in need of them.
Recommendation Number 3: Reduce Regulations
    One of the challenges that rural transit agencies have is abiding 
by certain onerous Federal regulations. Some small counties, such as 
Randolph County, Georgia, have actually chosen not to offer transit 
service because, in part, officials say that they cannot afford the 
staff needed to comply with regulations. To help reduce the burden on 
these rural systems on things like the Federal Transit Administration's 
National Transit Database reporting, the Federal Government could allow 
systems below a certain size threshold to report data for their transit 
agency profiles but make it optional for them to report full data for 
the nine categories in the database, such as monthly ridership. 
Congress could also eliminate costly mandates, such as Buy America, 
provisions that drive up costs for local governments. Many of the vans 
and innovative transit vehicles agencies use today are not made in the 
U.S., limiting the types of vehicles that transit operators can use. 
And because it limits competition, Buy America increases capital costs 
for transit vehicles built in the United States by an estimated 32 
percent. Federal officials should examine what existing laws can be 
modified. For example, the Department of Transportation has proposed 
amending 2132-AB38 on charter service regulations of buses and vanpools 
and 2132-AB40 on bus testing. It is not clear what changes the Biden 
administration would like to make at this time, but I would recommend 
allowing more diverse ownership of charter service buses and ensuring 
bus testing conforms to how buses operate in the real world.
Recommendation Number 4: Try To Improve Efficiency
    Rural transit services typically struggle to cover even a small 
share of their costs. My Reason Foundation colleague Marc Joffe and I 
examined the National Transit Database to determine the farebox 
recovery rate for rural systems. Most systems had a farebox recovery 
rate of 5 to 25 percent, which lags larger urban transit agencies that 
have farebox recovery rates of close to 40 percent. While several 
systems had farebox recovery ratios above 90 percent, some system had 
recovery rates below 1 percent. Transit systems with a farebox recovery 
rates below 1 percent should not charge fares, as the collection costs 
likely exceed the revenue collected. Rural transit services should set 
a goal for a farebox recovery rate of 20 percent. To meet that goal, 
reducing staff without reducing transit service by installing a 
computerized dispatch system and ensuring that union contracts allow 
flexibility in job duties can help. Leasing vehicles or transferring 
liability coverage to a business association or larger Government may 
help. Finally, determining exact business rules as to when a rider has 
to request service and what the drivers can and cannot do above and 
beyond the contract is critical.
Recommendation Number 5: Focus More on Local Funding Sources and Less 
        on Federal Funding
    Funding is often the biggest challenge for rural transit systems. 
The recently passed Infrastructure Investment and Jobs Act (IIJA) 
provides a 29 percent increase in guaranteed Federal transit funding to 
$91 billion over 5 years. Rural transit can often be funded by several 
different grant programs. There is a new $2 billion rural 
transportation discretionary grant program dedicated to rural areas. 
Infrastructure for Rebuilding America (INFRA) and Rebuilding American 
Infrastructure with Sustainability and Equity (RAISE) discretionary 
grants are required to award some funding to rural areas. However, my 
research finds local government funding is more important than Federal 
funding in prioritizing needed transit projects because local officials 
know their communities best and focus more on the quality of a system 
and less on getting the money out the door. The State and local funding 
comes on top of Federal funding providing a more robust revenue source. 
Further, State and local governments that provide a greater share of 
funding for a project are more likely to receive Federal grants.
    For example, North Carolina bundles Federal and State funds for all 
100 counties into its Rural Operating Assistance Program to maximize 
effectiveness and prioritize needed project and services. The State 
distribution amounts are based on a formula that includes population, 
geographic scope, and prior funding. In rural areas, this program has 
two components: The Elderly and Disabled Transportation Assistance 
Program and Rural General Public Transportation. The State also has a 
Home and Community Block Grant program that provides funding for the 
transportation of elderly residents. In addition, many local counties 
and/or cities provide their own funding. In some counties for every 
dollar of Federal funding, they receive three dollars of State and 
local funding.
    Thank you for the opportunity to testify today on the need to 
improve rural transit services to better serve transit-dependent 
riders. I would be happy to answer any and all questions, either orally 
or in writing.
        RESPONSES TO WRITTEN QUESTIONS OF SENATOR TESTER
                       FROM SCOTT BOGREN

Q.1. The large investment in transit in the Bipartisan 
Infrastructure Law will bring with it the need for more skilled 
workers, including drivers. Finding drivers is hard in Montana 
right now, for buses and trucks and everything else, and we 
learned during the hearing that this is true across the 
country. While the Biden administration is working to address 
the driver shortage, at the same time there are new driver 
training requirements for people trying to get their first 
commercial driver's license. This is making it harder for new 
drivers to get their CDL, and harder for transit agencies to 
find drivers.
    How are transit agencies across the country addressing the 
commercial driver shortage? How are they adapting to the new 
entry-level driver training requirements for CDLs? What can be 
done to make sure that smaller rural transit authorities will 
be able to find the workers they need going forward?

A.1. It is no secret or surprise that transit agencies are 
having a difficult time recruiting and retaining new drivers. 
Many transit systems are experiencing unprecedented levels of 
shortages due to drivers being exposed to COVID-19, along with 
other factors such as mass retirements.
    In terms of recruiting and retaining new drivers, CTAA has 
seen agencies implement a multitude of different methods. 
Sunset Empire Transportation District (a rural system in 
Oregon) and HIRTA (a rural system in Iowa) are working with 
local correctional facilities to educate nonviolent offenders 
on receiving their CDL. The Department of Corrections in Oregon 
will allow selected trainees to leave prison to get their 
behind-the-wheel experience before their sentences are up. If 
they are also able to get their final testing completed, there 
is the potential for trainees to walk out of prison with a CDL 
in their hands. We've also seen a number of our members 
institute competitive sign-on bonuses and increased wages.
    The Federal Motor Carrier Safety Administration's 
implementation of its ``Entry Level Driver Training'' 
requirement for persons seeking their first CDLs or first CDL 
passenger endorsements has presented a tremendous amount of 
upheaval among many rural and smaller urban transit systems. 
Even now, nearly 4 months into this new regulatory regime, 
there is a lot of confusion and uncertainty among transit 
agencies as to how, or whether, to incorporate CDL preparation 
in their new-hire driver training programs. CTAA's members are 
reporting many different approaches. Some have embraced the 
FMCSA ELDT requirement, have become FMCSA-registered training 
providers, and are proceeding down that path. Others have 
dropped CDL preparation from their new-hire training programs, 
and simply refer new hires to nearby CDL training entities that 
are registered with FMCSA. For those transit agencies that had 
not included CDL training prior to this FMCSA requirement, they 
obviously have not had to change their practices. For a number 
of our members, especially those in low-population rural areas 
or whose focus is in specialized transportation services, this 
FMCSA requirement, combined with the nationwide shortage of 
CDL-holding drivers in all transportation sectors, is forcing a 
reexamination of their fleets and driver credentialing 
requirements, as they look to see if their operations can be 
successfully and sustainably delivered through the use of 
smaller vehicles and non-CDL drivers. In any case, our members 
report that the timing of FMCSA's ELDT requirement could not 
have been worse, coming as it did during a time when driver 
shortages are at their most extreme in anyone's memory and when 
the combination of the COVID-19 pandemic and recently soaring 
inflation are driving up fuel, supplies, and other operating 
costs to levels beyond what many of our members can sustain 
with their current budgets and Federal transit funding 
allocations.
    It is imperative that every transit agency in the country 
remains flexible and updated on best practices in hiring new 
employees. While the driver shortage crisis may seem far from 
over, CTAA believes through increased peer-to-peer sharing and 
driver recruitment trainings, transit providers can tap into 
new resources and employment pools to find the employees they 
need.

Q.2. Transit agencies across the country are moving to low- and 
no-emission fleets for their buses. In some cases, smaller 
agencies are proving to be more nimble in making this 
transition than the bigger cities. For example, the Mountain 
Line in Missoula, Montana, has already converted 40 percent of 
its fixed-route bus fleet to battery-electric.
    This represents a real opportunity for the country to make 
a dent in its reliance on fossil fuels, if we manage the 
transition well. One challenge will be the new skills and 
expertise that we will expect from our transit workforce. 
Electric buses have different maintenance requirements, and the 
charging infrastructure needed for electric transit fleets are 
significant.
    Please discuss the experiences of your members in 
implementing these new technologies and what the key challenges 
are? How will the new Bipartisan Infrastructure Law make these 
transitions easier?

A.2. Our members have experienced wide ranging successes and 
challenges as it relates to transitioning towards low and no-
emission vehicles.
    Current experiences include:

    Mountain Line, in Missoula, Montana, have done a 
        fantastic job, as you noted, of experimenting with 
        different technologies. They have purchased a low-or-no 
        emission vehicle from each major vehicle vendor in this 
        space to see which technology best works for their 
        operations. Through their research, they have been on 
        the cutting-edge of information sharing for our 
        industry.

    Champaign-Urbana Mass Transit District (Illinois) 
        is building their own hydrogen plant, which will be 
        solar powered, to fuel their zero emission vehicles. 
        IndyGo (Indianapolis, Indiana) is also working to 
        create a hydrogen facility. Ohio is working towards 
        building statewide hydrogen facilities.

    Current challenges include:

    Lacking sustainable relationships with utility 
        providers. This has been noted specifically as it 
        relates to pricing. Some of our members are breaking 
        even financially (or paying more) when using power 
        companies compared to using traditional fuel, when the 
        longterm goal is to save money when working with 
        utility providers.

    Little to no infrastructure to support battery-
        electric charging along their routes and across their 
        service areas. This is particularly noteworthy for our 
        rural members who have long-distances to travel.

    Lack of industry knowledge as it relates to 
        maintenance best practices. Currently, most training is 
        done through the vendor of the vehicle.

    Lack of inventory. The supply chain crisis is 
        industrywide. We've heard from our members that even 
        when they are able to finally place an order for a low-
        or-no emission vehicle, the prices have risen 
        astronomically.

    The current regulations on spare ratio makes it 
        difficult to electrify. It is not a one-for-one 
        replacement due to the time needed to charge. It would 
        be helpful to have increased flexibility for mixed 
        fleets.

    In an effort to aid an agency's workforce as they move 
towards this transition, we applaud the Bipartisan 
Infrastructure Law for amending the statutory provisions for 
the Grants for Buses and Bus Facilities Competitive and the Low 
or No Emission Program to include a requirement that any 
application for projects related to zero-emission vehicles 
include a Zero-Emission Transition Plan. As part of the 
transition plan, an applicant must ``Examine the impact of the 
transition on the applicant's current workforce by identifying 
skill gaps, training needs, and retraining needs of the 
existing workers of the applicant to operate and maintain zero-
emission vehicles and related infrastructure and avoid 
displacement of the existing workforce.'' This will allow for 
enhanced workforce development as these transitions begin, 
potentially creating new jobs as the demand for as the demand 
for zero-emission vehicles grows.
                                ------                                


       RESPONSES TO WRITTEN QUESTIONS OF SENATOR WARNOCK
                       FROM SCOTT BOGREN

Q.1. Ensuring public transportation is accessible and able to 
safely and efficiently get Georgians where they need to go is a 
priority for me. However, in 2022 there are still communities 
throughout Georgia that have outdated transportation 
infrastructure or don't have any public transportation at all. 
In November 2021, President Biden signed the bipartisan 
infrastructure package into law, which increased funding for 
public transportation, including nearly $1.5 billion to support 
transit service throughout Georgia's rural, suburban, small 
urban, and metropolitan areas. As a result of this law, our 
transit agencies can expect a more than 30 percent bump in 
funding in the first year of the bipartisan infrastructure law.
    As funding from the bipartisan infrastructure law begins to 
flow, how can the Federal Government ensure State Departments 
of Transportation are working with rural transit operators to 
enable them to take advantage of this historic opportunity and 
deliver for rural communities?

A.1. We encourage all State Departments of Transportation to 
work closely with their rural subrecipients to keep them 
informed of funding and grant opportunities as they arise. I'd 
like to highlight the work done by the Washington State 
Department of Transportation as they work hand-in-hand with 
their rural partners.
    Washington has a total of 32 transit agencies, 24 are 
either small-urban or rural. During the pandemic, and beyond, 
they evolved their public transportation division to provide: 
funding flexibility, prompt grand awards, weekly messaging to 
partners and efficient agency coordination. The State DOT also 
released their 4-year ``Human Services Transportation Plan'', 
which identifies unmet transportation needs and develops 
strategies to address these needs. This plan ultimately creates 
a cohesive coordination public transit effort to identify 
regional priorities and ensure transportation needs are being 
met. Through regular communication with their subrecipients, 
rural providers are not only able to apply for grants as they 
are available, but they are regularly engaged in the State's 
transit deliberations.

Q.2. In the midst of a global pandemic and drastic cuts to 
household budgets, rural transit systems played a critical role 
in preserving public health and filling the gaps. Thanks to 
rural transit operators' efforts to coordinate with public 
health authorities, more Georgians were able to get vaccinated. 
When I'm traveling throughout Georgia, I'm hearing and seeing 
demand for more small urban and rural transit services to 
connect Georgians to medical services, jobs, grocery stores, 
recreational activities, and more.
    In addition to the funding provided by the Bipartisan 
Infrastructure Law, what steps can Congress take to assist 
smaller and more rural communities gain access to public 
transportation?

A.2. We applaud Congress for taking the important steps 
necessary to pass the Bipartisan Infrastructure Law. As noted 
in the question, this historic investment has the potential to 
provide life-changing transportation services to communities 
across the country.
    Throughout the pandemic and now entering our new normal, 
CTAA's rural providers are concerned that they will be unable 
to find the local match necessary to receive Federal funds. 
Currently, the Federal share is 80 percent for capital projects 
and 50 percent for operating assistance. By increasing the 50 
percent Federal share for operating assistance, rural transit 
providers would have increased local match flexibility. Last 
year, Sen. Tina Smith introduced legislation (S. 267) that 
would increase the Federal share for operating expenses in 
communities that meet certain economic conditions. We look 
forward to working with her office again in introducing similar 
legislation during this Congressional session.
    We also encourage Congress or the FTA to see that some of 
the transit workforce program funding at Section 5314 is used 
to identify and support industrywide strategies for examining 
job retention within the transit workforce. As the driver 
shortage continues to intensify across the country, identifying 
and recruiting new employees is critical in maintaining current 
service and providing new (or increased) service to underserved 
communities.
    As it relates to critical supply chain challenges, CTAA 
urges Congressional enactment of 1-year exceptions to aspects 
of statutory procurement requirements that can provide 
temporary relief until a more normal order begins to return to 
transit industry supply chains. Without vehicles or vehicle 
parts, transit providers are unable to procure new vehicles or 
replace aging fleets, which can ultimately lead to decreased 
service in vulnerable communities.
 LETTER SUBMITTED BY JOUNG LEE, DEPUTY DIRECTOR--CHIEF POLICY OFFICER, 
                                 AASHTO

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]