[Senate Hearing 117-739]
[From the U.S. Government Publishing Office]
S. Hrg. 117-739
ADVANCING PUBLIC TRANSPORTATION UNDER THE BIPARTISAN INFRASTRUCTURE
LAW: UPDATE FROM THE FEDERAL TRANSIT ADMINISTRATION
=======================================================================
HEARING
before the
COMMITTEE ON
BANKING,HOUSING,AND URBAN AFFAIRS
UNITED STATES SENATE
ONE HUNDRED SEVENTEENTH CONGRESS
SECOND SESSION
ON
EXAMINING THE UPDATE FROM THE FEDERAL TRANSIT ADMINISTRATION ON THE
BIPARTISAN INFRASTRUCTURE LAW
__________
JULY 12, 2022
__________
Printed for the use of the Committee on Banking, Housing, and Urban
Affairs
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Available at: https: //www.govinfo.gov/
_________
U.S. GOVERNMENT PUBLISHING OFFICE
53-494 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
Elisha Tuku, Chief Counsel
Dan Sullivan, Republican Chief Counsel
Cameron Ricker, Chief Clerk
Shelvin Simmons, IT Director
Pat Lally, Hearing Clerk
(ii)
C O N T E N T S
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TUESDAY, JULY 12, 2022
Page
Opening statement of Chairman Brown.............................. 1
Prepared statement....................................... 30
Opening statements, comments, or prepared statements of:
Senator Toomey............................................... 3
Prepared statement....................................... 31
WITNESS
Nuria Fernandez, Administrator, Federal Transit Administration... 5
Prepared statement........................................... 32
Responses to written questions of:
Chairman Brown........................................... 35
Senator Toomey........................................... 39
Senator Sinema........................................... 44
(iii)
ADVANCING PUBLIC TRANSPORTATION UNDER THE BIPARTISAN INFRASTRUCTURE
LAW: UPDATE FROM THE FEDERAL TRANSIT ADMINISTRATION
----------
TUESDAY, JULY 12, 2022
U.S. Senate,
Committee on Banking, Housing, and Urban Affairs,
Washington, DC.
The Committee met at 10:04 a.m., in room SD-538, Dirksen
Senate Office Building, Hon. Sherrod Brown, Chairman of the
Committee, presiding.
OPENING STATEMENT OF CHAIRMAN SHERROD BROWN
Chairman Brown. The Senate Committee on Banking, Housing,
and Urban Affairs will come to order. The hearing is in a
hybrid format. Our witness, Administrator Fernandez, is in
person. Members have the option as always to appear virtually
or in person. The Senator from Nevada, welcome, along with
Ranking Member Toomey.
Last Thursday, I invited our witness, FTA Administrator
Nuria Fernandez, to Columbus to see the excitement in the
community as they plan to build one of the best bus rapid
transit networks in the country.
Columbus is growing. If we pass the CHIPS Act, with Intel's
investment in semiconductor production in central Ohio, it will
grow even faster.
Investments from the infrastructure bill will help central
Ohio prepare for more people, expand service, and connect more
Ohioans with these exciting job opportunities with new bus
rapid transit.
We visited the Wall Street--I am sorry. Not the Wall
Street. We visited the West Broad Street--I know that. I have
been on that street. I used to live half a mile from there. We
visited the West Broad Street corridor with COTA's CEO Joanna
Pinkerton. We saw the tremendous opportunity for fast bus
service to downtown Columbus that will spur even more
development and new affordable housing along the route.
Columbus is not alone.
Cleveland RTA has entered the Capital Investment Grants
program for a new BRT route. Cincinnati is planning its own
large BRT network. Nearby communities Pittsburgh in Senator
Toomey's States and Indianapolis also have major BRT
investments moving forward with FTA support.
For too long, the United States has not invested in public
transit the way that we should. We have fallen far behind the
rest of the world in new transit technology.
But with the bipartisan infrastructure law we are finally
working to catch up.
The bipartisan infrastructure law included the largest
investment ever in public transit.
It is not, though, just about the numbers. It is about what
that investment will do, how this will matter in Ohioans'
lives, and for people across this country.
It will connect more communities. It will mean faster
service to more neighborhoods. It will open up new job
opportunities, so workers are not limited by a bus that does
not reach a job site or, as we have seen in this Committee with
testimony, does not run on Sunday.
Right now, families are continuing to feel the pain of high
gas prices because of Russia's attack on Ukraine.
But if there is a reliable bus or train nearby, workers
simply do not have to choose between paying for gas or making
rent.
It will make a difference, especially in so many
communities that have not had reliable transit.
It is the Black and Brown communities who have been
redlined, who have been cutoff from jobs by interstates that
walled off their neighborhoods. It is rural areas where walking
is not an option.
It is smaller cities and towns that have not been able to
afford big extensive transit networks like big cities. I grew
up in one of those small cities.
Alongside these opportunities, we know the transit industry
faces challenges. High fuel prices hurt diesel bus operations,
and like the private sector, transit agencies compete for
qualified workers.
We are lucky to have an exceptional leader at FTA working
to navigate these challenges and deliver on the promises in the
infrastructure bill. That is certainly where Ms. Fernandez
comes forward.
She has been in this job since last June. She is the first
Senate-confirmed woman of color and first Afro-Latina to lead
FTA.
She and her team have worked to deliver pandemic relief
funding efficiently and quickly.
In the wake of the pandemic, workers are still adjusting
their commutes. We need to preserve transit routes and help
transit agencies keep their highly skilled workers on the job.
Administrator Fernandez is now focused on an even larger
endeavor: implementing the most consequential investment in our
transit infrastructure in a generation.
FTA has moved quickly to help more communities get new,
state-of-the-art zero-emission buses on the roads.
It is important in our fight against climate change; it is
going to clean up the air in our communities; it is going to
mean new, modern buses for Americans to ride.
FTA has made it easier for agencies to apply by combining
the Low-No Bus application with the traditional bus program.
FTA has worked to get funding for transit construction out
the door under the Capital Investments Grants program and to
help our rural communities improve their options.
As long as I chair this Committee, workers will always have
a seat at the table. The Administrator has maintained that same
commitment. Thank you, Ms. Fernandez, for giving transit
workers a strong voice at FTA. She is working to ensure workers
have the training needed for the next generation of service.
Finally, FTA has continued its sharp focus on safety. On
this Committee, we have always strongly and bipartisanly
supported safety efforts. I have worked with Ranking Member
Toomey, I have worked with Chairman Crapo on safety issues,
including in the infrastructure bill.
Administrator Fernandez, I look forward to your testimony.
Senator Toomey.
OPENING STATEMENT OF SENATOR PATRICK J. TOOMEY
Senator Toomey. Thank you, Mr. Chairman. Administrator
Fernandez, welcome.
Today we will hear directly from the FTA on implementation
of last year's infrastructure law. As I have stated before, we
should not pay for an infrastructure package by borrowing
billions more dollars, but that is precisely what happened with
this law. It authorized so much new spending that $118 billion
had to be transferred from the Treasury's general fund to the
Highway Trust Fund, which is a specific account financed with
Federal gas tax revenue to cover mass transit and highway
construction costs.
President Biden would make this shortfall worse by
suspending the Federal gas tax for 3 months, reasoning that the
solution to high gas prices is not more supply but, rather,
more debt. I would suggest if we want to help commuters and
families suffering from inflation, we could start by reversing
the Administration's actions that keep up from using America's
own fossil energy.
But back to infrastructure. Federal spending certainly
should be driven by a reasoned assessment of our Nation's
needs. However, last year's infrastructure law seems in many
ways to have been driven more by Democratic political
imperatives.
The bill funneled billions to projects that the private
sector has been more than willing to fund, such as ferries and
electric vehicle charging stations. Transit was given $108.1
billion over a 5-year period.
Now, to put that number into perspective, it is almost
twice what transit got in the last surface transportation
reauthorization, and this staggering sum is on top of the
nearly $85 billion given to transit during just 1 year of the
COVID pandemic, the vast majority of that money characterized
as ``emergency spending'' to offset COVID losses. In fact, that
nearly $85 billion exceeded the combined annual operating and
capital costs of all transit agencies in the United States of
America combined.
Now, at the time Democrats tried to justify paying for more
than 100 percent of transit agency budgets by saying that
transit systems would collapse from declines in ridership and a
collapse in State and local tax revenues. Except that State and
local tax collections set an all-time new record in 2020, which
was then exceeded in 2021. And on top of this all-time record
tax revenue collected by State and local governments, Congress
gave States more than $850 billion to deal with COVID relief
issues.
But worse still, billions of dollars will go to transit
agencies that were facing systemic ridership declines well
before COVID. Since reaching a high of 10.7 billion trips in
2014, transit ridership has steadily fallen, fell by almost 8
percent in 2019 alone, before COVID. And the last 2 years saw
much steeper declines. Ridership fell at some agencies by over
70 percent. According to FTA, ridership now is only about 60
percent of prepandemic levels. Some estimates predict ridership
will never fully return to prepandemic levels. Agency leaders
in New York, Pittsburgh, and Washington have all said many of
their riders simply will not return. And even transit agencies
that are predicting ridership to return to prepandemic levels
do not expect that to happen this decade.
So why give away still more taxpayer money to agencies
serving far fewer riders?
Well, shockingly, the FTA is allowing transit agencies that
are seeking Federal funding for projects to expand transit
systems to use prepandemic ridership data from 2019. Transit
agencies' largest source for expansion projects is FTA's
Capital Investment Grants program, known as CIG.
Now, there are transit agencies seeking millions, even
billions of Federal taxpayer funding for CIG projects to expand
streetcars, commuter rail, light rail, bus rapid transit. And
to justify their funding request, FTA has been allowing these
transit agencies to use prepandemic data on ridership from 2019
and 2020. This boggles the mind. Transit ridership was already
in decline pre-COVID, and transit agencies are publicly
admitting that their ridership will not recover to prepandemic
levels for over a decade, if ever. So Federal taxpayers will
build out transit system expansions to serve ghost riders,
which, of course, will also have the effect of increasing long-
term maintenance backlogs.
I have no doubt that a few years after these projects are
completed, transit agencies will come back to Congress pleading
for still more subsidies to operate systems that have become
far too large for the demand.
Also concerning is FTA's willful disregard of an important
feature of last year's infrastructure law. The law requires
agencies to make progress on their deferred maintenance
backlogs in order to qualify for CIG grants. But FTA plans to
allow agencies to qualify for CIG grants even when they are
actually falling further behind on their overall deferred
maintenance targets. That is no way to protect taxpayers nor to
follow the law.
And speaking of protecting taxpayers, people should feel
safe while using transit. As I stated at our last transit
hearing, the rising rates of crime on transit systems are
deeply disturbing. Unfortunately, it does not appear that FTA
is taking this issue nearly seriously enough.
Let me conclude with this observation: I understand it is
certainly not entirely transit agencies' fault that some people
are choosing not to use their services. But that does not mean
that Congress should be throwing even more billions of Federal
taxpayer dollars at them to build out more services for riders
they do not have.
I look forward to discussing the future of mass transit
today. Thank you, Mr. Chairman.
Chairman Brown. Thank you, Senator Toomey.
The Chair recognizes for 5 minutes Administrator Fernandez.
Welcome back to our Committee. Thank you for your service.
STATEMENT OF NURIA FERNANDEZ, ADMINISTRATOR, FEDERAL TRANSIT
ADMINISTRATION
Ms. Fernandez. Thank you, Chairman, and good morning.
Chairman Brown, Ranking Member Toomey, and Members of the
Committee, it is really a pleasure to testify today on the
progress that the Federal Transit Administration has made in
implementing the bipartisan infrastructure law.
First, I want to express my gratitude to this Committee for
advancing my nomination as Administrator of the FTA. It is
really the privilege of a lifetime to lead FTA during such a
critical time for public transit.
Just over a year ago, COVID-19 was still ravaging transit
systems nationwide, impacting every aspect of the industry. And
we greatly appreciate Congress providing about $70 billion in
relief funding for communities nationwide in response to this
crisis. These funds made certain that Americans had the
lifeline they needed and were essential to our economy,
preserving hundreds of thousands of jobs at transit agencies
and along the extensive supply chain that manufactures and
maintains transit vehicles, facilities, and more. Transit
helped keep America open.
Now, ridership is about 60 percent of prepandemic levels
and it is climbing every day. Recognizing the importance of
transit to so many communities, Congress has entrusted FTA with
up to $108 billion in funding over the next 5 years. And we do
not take that responsibility lightly.
Today I will highlight FTA's progress in delivering on the
promise of the bipartisan infrastructure law and our plans for
the future.
On safety, Secretary Buttigieg has said, ``Safety is our
North Star,'' and every transit rider deserves a safe, secure,
and reliable trip, and every transit worker must be able to
conduct their duties without fear of assault or injury. And we
are doing everything in our power to improve safety throughout
the industry.
Many transit agencies are now required by law to establish
safety committees with equal representation of management and
frontline workers, and we expect those to be in place by July
31st. Then by the end of the year, all agencies in urbanized
areas must update their agency safety plans to comply with the
BIL requirements, including approval by the safety committee,
if applicable.
We are also expanding our data collection regarding
assaults on transit workers. These actions will give FTA more
information than ever before on the scale of transit safety
needs and more resources to address those needs.
On workforce development, worker safety is a particular
concern, so protecting and expanding the transit workforce is a
top priority of FTA. They just do not need safety throughout,
but also transit workers need help. They need more coworkers
and more apprentices.
Thanks to the dedicated funding from Congress, FTA
established a Transit Workforce Center last September. The
center has already reached thousands of people and several
hundred transit agencies with targeted technical assistance to
help recruit, train, and upscale their workforce.
On funding, another critical aspect to ensuring the safety
of our transit systems is to improve the state of good repair
of transit assets from rails in New York to wheels in
Cincinnati, and that is why FTA acted swiftly to make over $13
billion in fiscal year 2022 formula funding available shortly
after the 2022 Appropriations Act unlocked that funding. We are
delivering the remaining 2022 funding as quickly as possible
with Notices of Funding Opportunity already issued for seven
out of our ten competitive programs. And this summer we
anticipate NOFOs for the other competitive programs.
On equity and accessibility, regarding the All Stations
Accessibility Plan, I want to thank the Committee and Congress
for providing the resources to start making headway in the
backlog of nearly 900 transit rail systems that remain
inaccessible 32 years after the passage of the ADA. Our focus
on equity is not only with big cities, though. Far from it. FTA
has supported transit in rural and tribal areas for decades. It
is precisely in those areas where transit can make all the
difference for a senior citizen aging in place or a veteran who
needs care at the VA.
In closing, going forward, the transit industry will adapt
to meet the changing needs of our Nation, but I want to take
this opportunity to reiterate that, despite the challenges of
the pandemic, the core value of transit is unchanged. Over the
next 5 years and beyond, all of us at the FTA are excited to
continue working with this Committee and all the communities in
your States and across the Nation who rely on transit to invest
the historic funding from the bipartisan infrastructure law
effectively and equitably.
Thank you, and I will be happy to answer any questions.
Chairman Brown. Thank you, Administrator Fernandez. Thank
you for coming to Columbus last week and visiting the West
Broad Street corridor. I know we will see additional requests
for BRT funding from a number of Ohio communities in the coming
years.
The bipartisan infrastructure law provided $8 billion in
advance appropriations for the CIG program, including
significant funding for these BRT projects under the Small
Starts category. As you know, we do an 80 percent Federal share
for highway projects, yet the Federal Government rarely
contributes that much for transit projects.
Should FTA give a greater Federal share on CIG projects
where the law allows?
Ms. Fernandez. Mr. Chairman, under the leadership of this
Committee and the work of the bipartisan infrastructure law,
there was an increase of up to $23 billion in the funding for
transit capital investment over the next 5 years, so that is a
doubling. And with the sustained investment in the revisions to
the Small Starts eligibility, the past year alone we have seen
a 150 percent increase in the pipeline of projects, Small
Starts projects, entering the CIG together with the New Starts
projects, core capacity, and expedited project delivery.
Half of the current projects in the CIG are for Small
Starts, so I have heard from the project sponsors, especially
from smaller and mid-sized cities, that local match can present
a problem. And we are working very closely with them as the
applications become available and are complete to assist them
with identifying not only what their needs are from a financial
perspective, but what is the amount of Federal funds that will
be available and we can make available to them.
Chairman Brown. OK. Thank you. In your testimony you stated
this summer the FTA will be initiating the major competitive
programs established by the new infrastructure law, the All
Stations Accessibility Program and the Rail Vehicle Replacement
Program. The Greater Cleveland Regional Transit Authority has
made significant progress in making its rail stations
accessible to riders with disabilities, but the agency has 17
remaining stops and stations that are not ADA compliant. These
investments are long overdue. The Cleveland RTA is another very
pressing problem. The replacement of its--or problem and
project, the replacement of its entire rail car fleets.
Agencies like Cleveland and Philadelphia, the Ranking Member's
largest city in his State, have rail cars that date back to the
Carter and Reagan administrations. That means many rail cars
are in excess of 40 years old.
Is it possible for FTA to have awards out for these
programs later this calendar year?
Ms. Fernandez. Mr. Chairman, as a matter of fact, we are
going to be issuing a Notice of Funding Opportunity for the All
Stations Accessibility Program this summer and hope to have
selections announced by the end of this year.
Regarding the Rail Vehicle Replacement Program, as you
noted, the largest of the transit agencies, particularly the
legacy agencies, have vehicles that have exceeded their useful
life, and that affects the timely delivery of service and also
impacts schedule. We will be issuing a Notice of Funding
Opportunity for that program this fall and hope to make the
selection announcement early next year.
Chairman Brown. Thank you. My last question. I have heard
from two agencies in Ohio--SORTA in Cincinnati, Southwester
Ohio Regional Transit Authority, and Akron Metro--that they are
having issues on proposed projects. FTA over the years has
created more than one type of categorical exclusion under NEPA.
I am a strong supporter of the environment. I know you are. But
a categorical exclusion should be simple and easy to apply for,
particularly for transit projects that almost by definition
help the environment. These agencies face challenges with the
Uniform Relocation Act and appraisal requirements. These issues
are more challenging pretty obviously for small- and medium-
size agencies. Thank you for looking at these issues.
Can FTA please continue working to find solutions to help
these agencies and any other projects that face similar
challenges?
Ms. Fernandez. Yes, Mr. Chairman, we certainly can and have
made ourselves available through our regional offices to work
very closely with grantees as they are considering building new
systems, extending existing systems, and going through the NEPA
process.
We also offer free courses through the National Transit
Institute, but as you stated, there are a lot of challenges,
particularly for the small operators, and we will continue
through our regional offices to provide that service and make
ourselves available to guide them as they are going through the
process.
Chairman Brown. Thank you. I said that was my last
question, but I will ask another since your answers are shorter
than most witnesses' answers. When we were on the bus last
Thursday in Columbus, we talked about how agencies are
approaching the use of battery electric and hydrogen-powered
buses. As we discussed, the city of Canton, Ohio, is the
Nation's leader in hydrogen buses. What are you hearing from
the industry? And how is FTA helping agencies consider both
those technologies?
Ms. Fernandez. You know, it is exciting to hear that the
industry overall is making transitions. A lot of them have
already preemptively taken advantage of formula dollars to
start transitioning their fleets. And in the bipartisan
infrastructure law, as you may know, Mr. Chairman, the increase
in funding is also going to make available specific
percentages, 25 percent, for low-emission vehicles, and we are
seeing from members of the industry that they are pursuing the
type of technology that is going to reduce greenhouse gas with
a type of technology that can better address their needs in the
locations that they are.
Chairman Brown. Thank you.
Senator Toomey.
Senator Toomey. Thank you. Thank you, Mr. Chairman. And,
Administrator Fernandez, welcome. And just for the record, the
Chairman's observation that your answers tend to be shorter
than those of most witnesses is a very high compliment here in
the Senate.
In your written testimony, you highlight that Secretary
Buttigieg has said that ``safety is DOT's North Star.'' But
despite having far fewer riders, New York, L.A., Chicago, and
Philadelphia, among others, are all seeing spikes in transit
crime. Even New York City's mayor, a former cop, said he does
not feel safe on the subway.
Now, you mentioned that every transit rider deserves a
safe, secure, and reliable trip. Transit agencies, as I
mentioned during my opening comments, received staggering,
extraordinary amounts of Federal taxpayer funding recently,
including funding that can be used for security and to combat
crime.
So my question is: How much of all of this money that we
have recently delivered to transit agencies is actually being
used to reduce the spike in crime that is occurring on our
transit systems?
Ms. Fernandez. Senator Toomey, every transit agency is
committed to safety, as is the U.S. Department of
Transportation. And what we are experiencing, what transit
agencies are experiencing in this time is a result of many
factors. Given the pandemic, the effect that that has had on
loss of life and livelihood, we have received an increase----
Senator Toomey. I have got limited time. I understand there
are many factors contributing, but my question is: How much of
the resources, the huge amount of new resources we have
provided, is being used to address this spike in crime?
Ms. Fernandez. The transit agencies have access to their
formula dollars, and those dollars increased by 30 percent, and
they are applying those dollars toward all of their programs,
including safety. They are required--if you are looking for
specifics, I would be happy to provide you with a specific
number. I do not have a number in front of me.
Senator Toomey. I would appreciate it if you would. I would
like to know, first of all, that the FTA is, in fact, tracking
the amount of money that is being spent to make our dangerous
subway systems less dangerous and how much that is.
But it is also my understanding that in most cities fare
evasion is a crime, and experience has shown that cracking down
on fare evasion reduces the incidence of criminal activity in
the subway systems.
Does FTA collect data on fare evasion?
Ms. Fernandez. The National Transit Data base does not
collect information on fare evasion. It does collect the
information on how much of the fare ratio of the--the
collection of fares--I am sorry, not the collection of fares,
but what the operating budget for each of the agencies, what it
constitutes, how much is generated by fares and how much is----
Senator Toomey. OK. But you----
Ms. Fernandez. ----generated by other resources.
Senator Toomey. ----acknowledge that there is a
correlation, a high correlation between fare evasion and
criminal activity on subway systems?
Ms. Fernandez. There is a correlation between many factors
that affect----
Senator Toomey. Yeah, but this is an obvious one. People
are choosing not to pay their fare. They are breaking the law.
And then, not shockingly, some of them go on to break other
laws because they are, after all, lawbreakers. I just think
that fare evasion is an important violation of the law that the
FTA should be tracking. But you do not track it.
Ms. Fernandez. Senator Toomey, we do not track fare
evasion. Transit agencies, as you may know, some of them have
open fare; others have fare gates. So they all collect their
fares in a very different manner, and the information that is
provided to us really has to do with the resources--the sources
of funds that build their budgets.
Senator Toomey. OK. Let us go on to the topic of the
Capital Investment Grants. Last year's infrastructure law
requires that transit agencies make progress on their deferred
maintenance of their transit systems in order to be eligible to
receive a CIG grant. And the idea, obviously, is to help
protect Federal taxpayers and ensure that CIG funds are not
being spent on large capital projects for transit agencies who
are not even properly maintaining their existing systems.
My concern is that the new interim guidance that the FTA
has put out really makes a mockery of this requirement from the
statute. As you know, there are four categories of assets on
which there are deferred maintenance backlogs: rolling stock,
equipment, facilities, and infrastructure.
Your interim guidance allows a transit agency to make no
progress whatsoever--in fact, could go backwards--on three out
of the four. And then on the fourth, which is rolling stock,
there are 26 different types of rolling stock assets, and under
your interim guidance, an agency can be losing ground on
deferred maintenance on 25 of the 26, if they had that many. As
long as they are making some progress on one of them, then that
is deemed to qualify them for this progress requirement. This
does not seem like a faithful implementation of the law.
So could you explain, what is the justification for
ignoring 75 percent of the categories of assets when they
actually account for a very large portion of deferred
maintenance?
Ms. Fernandez. Senator Toomey, first of all, thank you and
this Committee and the Congress for including that requirement
in the bipartisan infrastructure law. I think it is very
important that all transit agencies have, in fact, a process
for identifying the state of their assets, the life cycle of
those assets and when they need to be replaced. The additional
requirement of a transit asset management and tying that
requirement to the Capital Investment Grant approvals is--we
put out guidance for that early this spring and received public
comments. We have taken those comments and, in particular, the
ones regarding the targets and how to--we will be publishing a
final implementation in the very near future that is more
specific.
Right now we continue to evaluate the various categories of
the assets and how they are being monitored or being rated
through their condition. And one of the things that we do know
is that transit agencies, when they are applying for a Capital
Investment Grant program, we do a thorough review of their
budgets; we do a thorough review of their capital programs; we
do a thorough review of their ability to continue operating the
systems that they have.
Senator Toomey. OK. Well, I am out of time, but I just want
to point out that it is impossible for me to understand how it
is a faithful implementation of the law to systematically
exclude the vast majority of deferred maintenance categories.
And I know that it is an interim guidance. I am certainly
hoping that the final guidance will address a much more
comprehensive category of deferred maintenance as is intended
by the statute.
Thank you, Mr. Chairman.
Chairman Brown. Thank you, Senator Toomey.
Senator Menendez of New Jersey is recognized.
Senator Menendez. Administrator Fernandez, welcome. You and
I have had multiple conversations about the Gateway program in
the past. Broadly, Gateway aims to modernize the rail
interference along a 10-mile segment of the Northeast Corridor
connecting New Jersey to New York Penn Station. This is a
critical stretch of track that carries over 200,000 daily
Amtrak and New Jersey transit passenger trips on approximately
450 trains and is the linchpin of the entire Northeast
Corridor, a region that accounts for over 20 percent of GDP of
the Nation.
The Federal Transit Administration's Capital Investment
Grants program is the primary Federal lending source for Phase
1 of the Gateway program, which includes building a new Portal
North Bridge, which ultimately is critical for going from
Boston all the way to Washington, and new rail tunnels under
the Hudson River. The existing century-old tunnels were badly
damaged by Superstorm Sandy and are in dire need of replacing.
Now, I appreciate the Biden administration's continued
support for the Portal North Bridge project, which has already
signed a Full Funding Agreement with FTA, and the work that has
been done to move the Hudson River Tunnel project toward an
FFGA as well. The FTA's annual funding recommendations report
released with the President's fiscal year 2023 budget
recommends for the first time that the Hudson River Tunnel
project receive $100 million in CIG funding in fiscal year
2023.
So, Administrator, can you speak for a moment about the
importance of the Hudson River Tunnel project and what went
into the determination that it should receive funding in fiscal
year 2023?
Ms. Fernandez. Yes, Senator Menendez. Last fall, the Hudson
Tunnel project partners made some significant improvements by
finalizing their first step, which was the financial plan, and
by updating that we were able to then rate the project medium
high onto the CIG program. And this rating is what resulted in
the recommendation in the President's budget for fiscal year
2023 for the funds that you noted.
This project is a project of regional significance, and it
is currently in the project development phase. There are still
several steps that need to be achieved in order for it to be
considered for a Full Funding Grant Agreement, but nonetheless,
just last week, the partners, the project partners--the State
of New York, New Jersey, and the port authorities--signed a
memorandum of understanding with the Gateway Development
Commission, which, in fact, outlines the payments that they are
going to be contributing toward the Portal North Bridge project
in addition to the Hudson Tunnel. And that is a good step in
the right direction. They have also hired an executive director
of the Gateway Development Commission, and that will then set
the stage to stand up the entity that will become the
designated recipient for Federal funds to deliver that project.
Senator Menendez. Yes, they have made significant progress.
Does the Hudson River Tunnel project remain on track to
eventually receive fiscal year 2023 funding?
Ms. Fernandez. There are several other steps following the
project development where they currently are. They need to then
request entry into engineering, and it is at that stage that
the Federal Government would lock in the Federal contribution
to the project.
Senator Menendez. Now, you said it was a project of
regional significance. It certainly is. I would say it is a
project of national significance. When you have 20 percent of
the entire Nation's GDP generated by the region and this is a
linchpin to mobility for businesses to get workers to work and
for people to go to hospitals and a whole host of other things,
I think it is a project of national significance.
Now, I understand--I heard Senator Toomey question the need
for strong Federal support for transit due to lower ridership
during the pandemic. The Regional Planning Association recently
released a report that confirms the continued need for the
Gateway project and found that trans-Hudson ridership would
return to or exceed prepandemic levels by the time the new
Hudson River Tunnels are built and would exceed prepandemic
levels by 15 to 32 percent by 2050.
So, yes, our transit agencies, like other industries, were
hard hit by the pandemic, but the fact remains that transit
will remain a vital and growing part of our transportation mix.
And I am proud of the much-needed investments that the
bipartisan infrastructure law makes in modernizing our transit
systems.
Let me turn to one other subject. I have long been an
advocate of transit-oriented development because I have seen
the transformative effect that it can have on communities,
going back to my time as mayor in Union City. When properly
planned and executed, it can bring significant new investment
to communities, providing new economic opportunities for
families and business owners while ensuring affordable housing
for residents.
The bipartisan infrastructure bill expanded a pilot program
that I helped create several years ago, and I appreciate the
FTA announced the availability of $13 million for the program
for fiscal year 2022.
Do you believe that further strengthening the linkages
between transit, affordable housing, and economic development
can help to create more livable, walkable, sustainable
communities?
Ms. Fernandez. Yes, I do, Senator Menendez. As a matter of
fact, public transportation is about people, and the models
that are used to determine where public transportation should
provide service are models that are driven by origin and
destination. So housing, affordable housing, to keep
individuals close to high-capacity transit centers with high-
quality transit service is definitely a need. And the transit-
related development, which encourages the public-private
partnership through joint development as well would see
investments along corridors where transit currently exists and
also create that density that is necessary, that in-filling
that is necessary to support the continued growth of
communities.
Senator Menendez. Thank you very much. Thank you for your
service.
Chairman Brown. Thanks.
Senator Cortez Masto of Nevada is recognized.
Senator Cortez Masto. Thank you. And, Administrator
Fernandez, thank you for being here as well.
Let me follow up on what my friend and colleague Senator
Menendez was talking about when it comes to this nexus between
transit and housing. Just recently, I sent a letter to DOT and
FTA about implementing my Better PLAN Act, which passed in the
infrastructure bill, and what the legislation really does, it
requires more consideration of housing in transportation
planning and establishes a voluntary housing coordination
process that MPOs and local governments can undertake to align
transportation investments with increased housing supply.
I guess my first question to you is: Can you confirm that
the Department is working on a response to my letter and the
implementation of my legislation within the bipartisan
infrastructure package?
Ms. Fernandez. Yes, we are, Senator Cortez Masto. As a
matter of fact, we are currently working with our partners at
the U.S. Department of Transportation to implement the housing
coordination plan provision. That is going to help Metropolitan
Planning Organizations put more emphasis on regional goals for
integrating housing, specifically affordable housing and
transportation into their economic development plans.
We also have a working group with the Department of Housing
and Urban Development all geared toward our Thriving
Communities effort, and that interagency group is going to be
focusing primarily on the housing--that intersection of housing
and transportation to help advance the needs of what we have
already deemed is one of the highest costs to a household,
transportation is, followed by housing. And if we can keep
affordable transportation and affordable housing in the same
corridors, I think that would help save a lot of dollars in
taxpayers' wallets.
Senator Cortez Masto. Thank you. I appreciate that.
I also want to highlight the aspects of the bipartisan
infrastructure bill that truly involve climate change. It
really is a climate bill, and we provided over $5.5 billion in
emission reduction transit investments for buses in this
country, which I can say is vital given the environmental
concerns we are tackling in Nevada from wildfires to severe
drought. And that is not even counting the billions for cleaner
school buses and the change I made or was able to get to
provide EV charging eligibility through transit formula
dollars.
I have seen firsthand the amazing impact that this money
has made in my State. I was just recently in Reno, Washoe
County, with the Regional Transportation Commission. They have
a fleet of over 70 buses. We waved goodbye to the last diesel-
fueled bus there. And what they have implemented and we were
celebrating was the complete retirement of their dirtier buses.
And they are 13 years ahead of schedule, and that is a benefit,
not just to that community but to the many families that live
and breathe the air within that community as well.
And so as you are implementing the bipartisan
infrastructure law, what do you see as the future prospects of
sufficient and expanding domestic manufacturing of cleaner
transportation technology such as electric buses and the
batteries powering them?
Ms. Fernandez. Senator, there have been some challenges
with the implementation and then the availability, but what we
are seeing is that manufacturing has stepped up. There is going
to be an increase in the number of manufacturers that are going
to be helping deliver electric vehicles, electric charging
stations, in addition to building up on that supply chain. We
have a long-term goal, and that long-term goal is to transition
all buses, all public transportation buses, to a cleaner,
greener technology. And the funding that was made available
through the bipartisan infrastructure law specifically for the
bus and low and no emissions, in addition to the formula
dollars available to transit agencies, is going to help us get
there. So we are highly encouraged. Yes, there have been some
supply chain challenges, but we see those as short term. But in
the long term, the plan is that transit agencies, like the ones
you have referenced, that have really stepped up and developed
plans, and we are also helping those who have not developed a
plan to create a transition plan for their fleets.
Senator Cortez Masto. Thank you. And then, finally, talk a
little bit about workforce measures, because you started that
conversation or you touched on it in your comments. Are we
building the necessary pipeline we need around workforce and
bringing the workforce along with us as part of this bipartisan
infrastructure package to create these opportunities in this
new innovation economy that we are seeing?
Ms. Fernandez. Yes, we are certainly targeting that,
because we recognize that really the workforce is the one that
is going to make the significant difference in not only
delivering service but maintaining, and then we also have the
manufacturing side of our industry that needs to be able to
generate the assets that are used for ferries, trolleys, buses,
and trains.
The Federal Transit Administration last year created the
Transit Workforce Center in recognition that the transit
industry is experiencing what is known as the ``Silver
Tsunami,'' and we have such a large percentage of transit
workers that could retire in the next 5 years. And recognizing
that we still need to continue providing service and that that
service is now going to take us into communities where we are
going to be closing transit deserts and we are going to be
trying to access and provide a higher-quality service, the
Transit Workforce Center is--will be focusing on the
recruitment, training, and retention in addition to upskilling
with the transition from combustion emissions engines to the
electric, and also with apprenticeships, creating
apprenticeship programs and working very closely identifying
opportunities with local community colleges and Job Corps and
others to start building that pipeline, because we have to
build it, and we have to build it quick.
Senator Cortez Masto. Thank you.
Chairman Brown. Thank you.
Senator Smith of Minnesota is recognized.
Senator Smith. Thank you, Mr. Chair. Administrator
Fernandez, it is so good to see you again. It was almost
exactly a year ago, I think, that you came to Minnesota for the
field hearing for the Housing Transit Subcommittee. Mr. Chair,
we had a really terrific field hearing talking about transit
issues in Minnesota. And I greatly appreciated you taking the
time to come and talk with our local leaders and community
leaders about our transit needs. So thank you so much for that
again.
I want to actually follow up on something that my good
friend and colleague from Nevada was just talking about. The
bipartisan infrastructure law has already put millions of
dollars into transit systems around the country for building
new lines, replacing buses, and improving transit
infrastructure. And these dollars are supporting transit
agencies that are pursuing clean energy through low- or no-
emissions vehicles. This is an issue close to my heart because
companies like New Flyer in Minnesota are working very hard to
meet this increasing demand for zero-emissions buses.
But like all bus manufacturers, there is a shortage of
microchips, which is making it hard to fill orders in a timely
way. This is something that I have been hearing about from
Minnesota transit agencies in advance of the subcommittee
hearing we had on this issue earlier this year.
So we have heard a lot of talk here in Washington about the
impacts of the chip shortage on the car market, but I think it
is important to pay attention to its impact on transit also. So
can you talk to me a little bit about this, Administrator
Fernandez? Is the FTA focusing on this? What is the impact of
the chip shortage on our capacity to implement the bipartisan
infrastructure law?
And then just as a follow-up, it seems to me, Mr. Chair,
that if we could enact USICA, the competitiveness bill, this
would be another benefit of that for transit in the United
States as well. But could you just talk to this chip shortage
and its impact on transit?
Ms. Fernandez. Yes, and, Senator, I am so glad you
referenced the field hearing, because it was really my distinct
pleasure to join you there and talk about the great things that
are happening in your State as well.
As we have all noted, the supply chain for manufacturing,
particularly around the metals and minerals needed for this
transition to zero emission, has been one that has been
highlighted, and DOT continues to be one of the lead agencies
on the White House Supply Chain Disruption Task Force.
Senator Smith. Right.
Ms. Fernandez. I am very encouraged by the progress that
has been made, and, you know, as I stated earlier, the focus on
how we get our systems operational, get the tools, get the
materials and equipment that is necessary, the components that
are necessary, is something that is of high attention, has
garnered high attention at the DOT. The American manufacturers
are all stepping up. As I noted, there is about $80 billion in
planned investments in semiconductor manufacturing and more
than $100 billion in announced investments in electric
vehicles. So those will help keep pace--once those investments
continue to be made, will keep pace with the applications that
transit agencies are submitting. We issued the Notice of
Funding Opportunity for bus bus facilities. It was a combined
NOFO that also included the low- and no-emission vehicle
procurement. And that closed at the end of May, and we will be
announcing the selections of those. That means that we will
have hundreds of new buses that are going to be manufactured,
and the industry is stepping up to meet that challenge.
Senator Smith. That is fantastic. We want these buses
manufactured in the United States, and the more that we can
have the components for these buses, including microchips, also
manufactured in the United States, I think we are going to be
much better off. And I think it goes to the importance of
passing USICA.
In just the couple seconds that I have left, I want to ask
you about something related to equity. Now, transit we know is
a vital tool for advancing equity in disadvantaged communities.
It is the way in which people get to their jobs, to their
educations, they get their groceries, they get their health
care. But we also know that transit can be harmful to
communities that are displaced--as the construction happens,
that there is displacement of economic and cultural corridors,
and it can be very hard on small businesses.
I am really proud of the work that the Met Council in
Minnesota and Hennepin County have done on the Bottineau
extension in Minnesota, which is they created an
antidisplacement work group that is organized to mitigate the
issues of displacement as transit is being constructed. I think
that bringing this kind of equity lens to transit is really
important, and I appreciated our conversations about this when
you were in Minnesota.
Could you just address this briefly, Administrator
Fernandez? What is the FTA doing to think about expanding
access to contracts, for example, and addressing the direct
needs that we have around small- and minority-owned businesses
impacted by transit and creating opportunities for them?
Ms. Fernandez. Yes, and thank you for that question,
because as you may know, equity is one of the highest priority
considerations. We want to make sure that transit in itself is
an equalizer and provides that opportunity and access to all.
As we think about development that happens in communities, and
particularly development that involves Federal investment in
land that is now going to be part of a transit-oriented
development or joint development project, the emphasis on the
relocation act, working closely with the community, the
outreach that transit agencies have to document for these
changes, and also what type of mitigations are going to be
included in the project, those are all part of the NEPA
process, but in addition to that, it is part of building that
partnership with the community where this new investment is
going to take place.
As it relates to the small and disadvantaged businesses, we
have our small and disadvantaged business programs following
the regulations that are in place. We will be updating those
because we want to see more small and disadvantaged businesses
be part of the great investment that the bipartisan
infrastructure law is bringing to transit agencies across the
Nation.
Senator Smith. Thank you very much.
Thank you, Mr. Chair.
Chairman Brown. Thank you, Senator Smith.
Senator Sinema from Arizona is recognized from her office.
Senator Sinema. Thank you, Chairman Brown, and thank you to
Administrator Fernandez for joining us today.
The bipartisan infrastructure law represents a historic
investment in our national transportation infrastructure needs
that will update and modernize our highways, bridges, airports,
railroads, and public transit systems. The law invested $176
million in public transit in Arizona just for 2022 with nearly
$100 million going to the Phoenix Mesa metro area and $23
million for the Tucson metro area.
The Federal Transit Administration has a crucial role to
play in disbursing these funds from the bipartisan
infrastructure law to make sure the money is distributed
equitably and consistent with the provisions of the law. I look
forward to working with you and with my colleagues on this
Committee to continue to advance implementation of the
bipartisan infrastructure law to help Arizona families and
small businesses get ahead.
Administrator Fernandez, thank you for your public service
in transportation, but I thank the FTA for the Full Funding
Grant Agreement awarded to Phoenix Valley metro system for the
Northwest extension light rail project earlier this year. This
extension of the metro light rail will expand the light rail
system across Interstate 17 and encouraged redevelopment at the
Metro Center site.
Looking forward, I am interested in hearing more about the
rollout of the low- and no-emissions bus program, particularly
in a challenging climate such as the Phoenix metro area. Valley
Metro in the city of Phoenix has prioritized fleet transition
planning, the purchase of zero-emission buses, and construction
of electric vehicle charging infrastructure, and I hope the FTA
will again partner with Valley Metro on this project.
Now, what advice would you offer to Valley Metro as it
pursues transitioning its bus fleet to electric power?
Ms. Fernandez. Senator, good day, and, yes, Valley Metro
has really done some terrific things in transforming the
corridors that they are providing service in.
As it relates to the transition to low- and no-emission
vehicles, one of the first things that our regional offices,
working very closely with all of our grant recipients, have
been doing is reminding them that in applying for the zero-
emission, that they are required to have a transition plan. And
we have provided a template for how that transition plan can be
developed. We are not prescriptive, but we certainly want to
provide a road map for the development of that plan. And in the
law, there were very specific six points that had to be
addressed, six areas that had to be addressed.
So my recommendation is that if the transition--if they are
in the process of developing a transition plan, our regional
office is available to provide technical assistance. If they
have a transition plan and tie that transition plan to their
capital programs so that it connects with the Notice of Funding
Opportunities that we would be putting out every year, and they
can buildupon that replacement and achieve their goals of
bringing cleaner vehicles to their community.
Senator Sinema. Well, thank you. On May 20th of this year,
the Tempe Streetcar opened to the public. The streetcar
received Federal grants, regional funding, and support from a
public-private partnership involving the city of Tempe, Arizona
State University, and local property owners. The Tempe
Streetcar supplements the existing Valley Metro light rail to
better enable local residents and ASU students to navigate and
reach destinations in downtown Tempe. A combination of local
businesses, office complexes, city parks, art facilities, and
sports venues are served by the light rail and streetcar.
How can the Tempe Streetcar serve as a model for other
cities looking to make their communities more adaptable for
residents' desire to work, live, and play in one location? And
how can the Federal Transit Administration assist communities
in these efforts?
Ms. Fernandez. Senator, the example of the Tempe Streetcar
is a great one because each community needs to identify the
type of mobility, the type of public transportation system that
best serves them. In some communities it would be the bus; in
others it would be a trolley; in others it would be on-demand
service. So this is a model of really listening to the
community, working with the community, and identifying what the
best solution for mobility that can be brought to that
community. So thanks for elevating the Tempe trolley.
Senator Sinema. Well, thank you. You know, the bipartisan
infrastructure law increased our Federal public transit
investment in communities of all sizes, and I am particularly
proud of a provision I worked on with Senator Moran to increase
funding to small transit-intensive cities. These are cities in
Arizona like Flagstaff and Yuma of 100,000 residents but high-
performing transit systems. For example, the Mountain Line in
Flagstaff provided over 1.1 million rides last year across its
ten bus routes. Meanwhile, Yuma's bus system took nearly
254,000 trips in the fourth quarter of 2021 alone.
Can you describe the importance of public transit
investment in these types of smaller and transit-intensive
cities?
Ms. Fernandez. Thank you for that question, Senator Sinema.
Public transportation really serves all communities, but the
smaller communities and cities that are separated by great
distances, there is an absolute need for public transportation.
We know that the services are not as frequent as in urbanized
areas, and, therefore, having sufficient access to, whether it
is on-demand paratransit services for individuals with
disabilities, on-demand services for seniors who have decided
to age in place, or veterans that need access to the VA clinic
or the community as a whole, is crucial. In so many of these
communities, public transportation, especially in rural areas,
is a lifeline. And just like we may own a vehicle and know that
it is there even if we do not use it every day, knowing that
there is a public transportation system that is a phone call
away or an app request away is really a comfort to many, many
people in this Nation.
Senator Sinema. Thank you. Thank you, Mr. Chair.
Chairman Brown. Thank you, Senator Sinema.
Senator Warner from Virginia is recognized from his office.
Senator Warner. Thank you, Mr. Chairman. I appreciate and
am glad you are having this very important hearing.
Administrator Fernandez, first of all, let me say how happy
I am that we have got an FTA Administrator who has actually
worked back in the 1990s for WMATA. As you know, our system
here serves the whole National Capital Region. Virtually every
member on this Committee has staff members that ride WMATA,
hopefully on almost a daily basis. But as you also know,
obviously coming out of COVID, WMATA, like almost all transit
systems around the country, is having some challenges on
getting ridership levels back up.
Can you comment on a generalized basis, and then I am going
to ask a follow-up question on the Silver Line to Dulles, but
on a generalized basis can you talk about FTA's working
relationship with WMATA and what FTA is doing to, again, take a
major system like WMATA and help it get back to pre-COVID
ridership and other levels?
Ms. Fernandez. Yes, Senator, thank you very much for that
question. Of course, because the Washington Metropolitan Area
Transit Authority is here in the Nation's capital and this is
where we are located as well, we see and live the WMATA service
experience. I use Metro all the time, and, therefore, I can
tell you that the ridership on the Metro System is continuing
to grow to some points that we have to sometimes wait for
another train.
But, nonetheless, our relationship, the Federal Transit
Administration's relationship with WMATA is a very good one. We
have a responsibility for providing safety oversight through
the Washington Metropolitan Safety Commission of the operations
of the Metro, and also working with WMATA and all transit
agencies across the country to assist them with transit renewal
and assist them with ideas, exchanges of information, and
collaboration on how they can not only build back ridership,
but also on the safety challenges that they have experienced
through peer-to-peer review and collaboration.
The leadership changes that have occurred recently with the
former general manager retiring and the incoming general
manager that is going to be joining on July 25th, Randy Clarke
from Austin, Texas, I think it is a great opportunity for WMATA
to continue focusing on all the things that matter, and that is
safety, ridership, and delivering the highest-quality service
to the people who live here, who work here, and those who
visit.
Senator Warner. Administrator, I appreciate that response.
I do want to zero in, in these last 2 minutes, though. As you
are aware, finishing Metro out to Dulles has been a long,
involved process, and we finally had the handover from the
Airports Authority, which did the construction, back over to
Metro. Obviously, FTA has a role on the safety assessment. My
hope is, since we have made that transference--and, obviously,
we have got to make sure Phase 2 is safe, but that we do that
safety assessment is as timely a manner as possible. We have
got to make sure that we get that Phase 2 open. We have got to
make sure it is opened in a safe way. We have been working
closely with the Safety Commission. But can you give us a
little bit of a sense? Do you feel with the new general manager
coming in--I think we have got a timeline of later in the year
to get this open to the public. Do you have any concerns about
us meeting those timelines?
Ms. Fernandez. Senator, from the information that I have
received through our regional office in Philadelphia that
oversees WMATA, the project is proceeding. It is in
commissioning. That means that they are doing testing, and that
is one of the reasons that now it is in WMATA's hands to ensure
that all of the systems that have been installed are going to
operate safely.
The decision then, once that testing is completed, would
be--the Federal Transit Administration would be one of the--
will be signing off on the next step, which would be the
identification or determination of a revenue service operation
date, and we would do so once we are fully satisfied that it is
safe to operate.
Senator Warner. And all I am asking, Administrator, is--
one, I look forward to working with you on this. Two, if there
are concerns, I hope that we hear sooner rather than later.
What we do not want to do is go through this whole process and
at the 11th hour hear there is a concern that has not been
addressed.
I look forward to working with you and, again, I appreciate
your prior experience working with Metro.
Thank you, Mr. Chairman.
Chairman Brown. Thank you, Senator Warner.
Senator Warren of Massachusetts is recognized.
Senator Warren. Thank you, Mr. Chairman. So I want to
discuss the Massachusetts Bay Transportation Authority, or the
MBTA, which has been plagued with maintenance issues,
shutdowns, and significant safety concerns after multiple
deaths last year alone. In a letter to the MBTA on April 14th,
the Federal Transit Administration, the agency that you run,
Administrator Fernandez, expressed extreme concern for riders'
safety. The letter also stated that the FTA was going to
``assume an increased safety oversight role of the MBTA
system'' and conduct inspections and obtain data to provide the
MBTA with a ``road map to building a robust safety culture.''
I share the FTA's concerns. After the FTA issued special
safety directives, however, the MBTA reacted by reducing
service frequency on many lines, and these service cuts and
long delays have negatively impacted all riders, many of whom
rely on public transportation to try to get to work or to
school.
So I have two intertwined questions. The first is: How did
we get to a point where people are literally dying on the T?
And, second, when will the FTA have a detailed road map to get
the T back on track?
Ms. Fernandez. Senator Warren, thank you so much for
highlighting the importance of safety in public transportation,
in particular in the rail system. As you noted, the letter that
was issued by our chief safety officer at the Federal Transit
Administration was a result of a series of events that had
occurred subsequent to a study of 2019 that identified a series
of issues that needed to be addressed, that the transit agency
was in line to address. And when we experienced ongoing safety
incidents that could have been averted, that is the reason that
we sent that letter.
Senator Warren. And I am glad you did. I am sorry. Let me
just--you talk about a series of issues. How is it--the
question I have is: How did we get to this place where people
die on the T? What went wrong?
Ms. Fernandez. That is the question. The situation here
is--safety is our number one priority, and when we see that
safety--that the focus on safety, whether it is culture,
whether it is decisionmaking or lack thereof, contributes to
incidents that result in death, that is when we raise the flag,
and we go beyond just raising the flag where we step in, and we
immediately sent personnel so that we could conduct a safety
management inspection. And it was throughout the inspection
that we identified additional issues, and that is the reason
that we issued a safety directive.
Senator Warren. And when do you expect to have a report so
we can get the T back on track, literally?
Ms. Fernandez. Well, we are going to be issuing a report in
August----
Senator Warren. August.
Ms. Fernandez. ----with the safety management inspection
findings. The Massachusetts Bay Transportation Authority needs
to continue, one, with the training; they need to hire
personnel; and that is one of the reasons, to your second
question that has to do with the impact on ridership, with the
impact on service. And that impact on service only occurs when
projects and maintenance have not been completed in a timely
manner that now need to be performed doing revenue service.
Senator Warren. I appreciate that. I think what you are
saying is the MBTA was not paying enough attention to the
maintenance and inspections to keep the system safe. I look
forward to the report in August. I am going to hold you to
that. But prioritizing safety and service should not be either/
or. It should be both/and.
I have one other thing I want to ask about, and that is
investment in electrification. I think it is a big part of the
answer when it comes to making the MBTA both safer and more
modern. Electrification would improve service, would reduce
long-term maintenance costs, would help us meet our climate
goals, and would solve issues across housing, affordability,
traffic, congestion, efficiency, and at the same time help
create new jobs and promote regional economic prosperity and
environmental justice. But under the Baker administration, the
MBTA is not prioritizing electrification.
Administrator Fernandez, while electrification would cost
more in up-front capital costs, would this be a way to make the
T safer, more reliable, greener, create jobs, and reduce costs
in the long run?
Ms. Fernandez. Senator Warren, it will achieve all of the
above, and as a matter of fact, we did issue a grant to MBTA
for the replacement of a bus facility. It is going to be a
combination--I believe there is a TIFIA loan involved--to
ensure that they have an adequate facility that can start to
accommodate electric vehicles.
Senator Warren. You know, electrifying commuter rail would
mean a faster, more reliable ride, and a cleaner environment,
and it is mystifying that the T has no tangible plans to get us
there. Transitioning to an electric system would be costly, but
right now the Commonwealth has a large budget surplus and is
set to receive record amounts of Federal funding from the
infrastructure bill. Rather than continuing to pour money into
dirty, unreliable technologies from the last century, we can
replace broken-down trains with electric ones and invest more
in electric buses. I know it is not going to be easy, but we
have to use every tool in the toolbox to avert these disasters
and give Massachusetts residents the first-class infrastructure
they deserve. Thank you.
Thank you, Mr. Chairman.
Chairman Brown. Thank you, Senator Warren.
Senator Reed of Rhode Island is recognized.
Senator Reed. Thank you very much, Mr. Chairman. Welcome,
Administrator. Thank you for your leadership in the department.
Fuel costs are on everybody's mind. In Rhode Island, RIPTA,
the Rhode Island Public Transit Authority, which is a statewide
transit system, was fortunate. They negotiated a contract for
gasoline and diesel, or whatever, at $2 per gallon. But that
contract expires, so they are now being thrown into a market
where the price is three or four times as much.
The situation is such that your agency does not allow
moving money from capital into gas subsidies, if you will, for
want of a better term. The House had introduced in their
appropriations bill language that would provide that
flexibility to a degree. Would FTA be sympathetic to allowing,
at least for a short period of time, the ability to move money
from some of these funds, like the capital fund, into gasoline?
Ms. Fernandez. Senator Reed, with the emergency relief
funds, one of the things that was made available to all transit
agencies, in particular those who had to use their formula
dollars specifically for capital and capital maintenance but
not for operations, was the ability to have access to operating
dollars, and although the majority of the relief funds have
been already obligated, many transit agencies continue to rely
on those dollars for operations. Should Congress adopt a
provision that allows for the use of capital funds toward
operations, we would follow through with the law.
Senator Reed. Thank you very much, Madam Administrator.
Senator Warren just finished discussing the promise of electric
vehicles, electric buses, et cetera. We are trying, with the
help of your agency, to create, we hope, a completely electric
system. We are scheduled to go totally electric on Aquidneck
Island where Newport, Middletown, and Portsmouth are located,
these communities. But one of the problems we discovered is
that these electric vehicles do not have the range of the
typical diesel, so they need more of them. But yet FTA has a
limit on the number of spare buses, the so-called spare ratio.
Again, I am wondering if you could discuss any flexibility that
FTA might offer agencies that are working to expand their
electric fleet and need more spares than is authorized
currently.
Ms. Fernandez. Yes, thank you, Senator Reed, for that
question, because with the transition to electric vehicles, we
have been receiving a lot of queries from transit agencies. It
is a priority to have transit vehicles be replaced when their
useful life has expired, and we are looking for that transition
to move toward a cleaner emission.
We have a number of flexibilities built into our existing
spare ratio policy, and we encourage all transit agencies that
are looking for flexibilities to work with the regional offices
so we can guide them through that process. In fact, this past
December, I issued a ``Dear Colleague'' letter detailing those
very specific flexibilities, and particularly as they relate to
transition to zero emission. Moreover, a specific example is
agencies that are introducing zero-emission vehicles into their
fleet are able to keep their existing vehicles that are past
useful life, and those will not count toward their spare ratio.
Senator Reed. Thank you. But, again, I think incentivizing
electrification is essential to getting it on the roads faster
and with all the benefits, of course, and we would not have
asked the first question if we were all electric. We would
still be paying around $2 or less for power per gallon.
Workforce development is absolutely critical every place. I
just came from a hearing of the Appropriations Committee,
Defense Committee, and defense industries are looking for
workers. Everyone is looking for workers. And just, again,
RIPTA is putting in a grant for a new bus and bus facilities
program to update its maintenance garage, but also include
within that training of maintenance personnel in cooperation
with the New England Institute of Technology, which is a not-
for-profit tech school with an excellent reputation. In fact,
they have done a lot of work with the electric boat. So I would
just ask you to look favorably on this application. It is very
worthwhile.
Thank you, Madam Administrator.
Ms. Fernandez. Thank you, Senator.
Chairman Brown. Thank you, Senator Reed.
Senator Ossoff from Georgia is recognized from his office.
Senator Ossoff. Thank you, Mr. Chairman. And thank you,
Administrator Fernandez, for joining us today. Thank you for
your service.
I want to begin by drawing your attention to a recent
earthquake that impacted Savannah, Georgia, and Chatham County,
Georgia, and did significant damage to the Chatham Area Transit
ferry system. Will you please commit to working with my office
to identify, if possible, FTA resources that could be brought
to bear to help Chatham County to repair that damage?
Ms. Fernandez. Yes, good day, Senator. Yes, our regional
office in Atlanta has been in contact with Chatham Transit and
working to provide them with technical assistance.
Senator Ossoff. Thank you. And just for clarity, Madam
Administrator, will you please commit that you and/or your team
will continue to work with my office to try to identify all
potential solutions FTA can offer to help Chatham County
recover from this natural disaster?
Ms. Fernandez. Yes, Senator, we will.
Senator Ossoff. Thank you, Madam Administrator. I would
like to, along the same lines, ask for your commitment to work
with my office more broadly to identify possible legislative
improvements or administrative improvements that could be made
to the Emergency Response Funding program that FTA administers
to make it more flexible and to give you and your team more
authority and potentially more resources to help transit
systems that are impacted by natural disasters and emergencies.
Will you engage your team with mine to identify possible
improvements to that program?
Ms. Fernandez. Senator, we are happy to work and provide
technical assistance with emergency relief or any other
programs that you all are interested in pursuing flexibilities.
Senator Ossoff. Thank you so much, Madam Administrator. I
want to raise a few Georgia-specific transit initiatives with
you. The bipartisan infrastructure law obviously provides a
historic opportunity for improvements, upgrades, and expansion
of critical transportation and transit infrastructure in the
State of Georgia--for example, in Metro Atlanta, bus rapid
transit along State Route 400 that has broad bipartisan local
support and a new transit line along Campbelltown Road, 6 miles
between the Oakland City Station and Greenbriar Mall. That is a
long-awaited critical piece of infrastructure for southwest
Atlanta.
Understanding these are competitive grant programs, will
you please commit to work with me and local stakeholders to
maximize the prospects for these projects and help us do
everything that we can as Georgia leaders to maximize the
chances of success?
Ms. Fernandez. Senator, yes, the Federal Transit
Administration's headquarters office, in addition to the
regional office, is available to provide technical assistance
and guidance to transit agencies as they are putting together
the applications to ensure that the requirements and the
applications, if there are any questions, that we can assist
them to better understand what the goal of the grant, the
intended program is. So, yes, the response to your question is
yes, we will continue providing that technical assistance and
guidance.
Senator Ossoff. Good. I am looking forward to working with
you to maximize the chances of success for those transit lines
along Georgia 400 and Campbelltown Road.
I would like to ask you more broadly as well if you will
please dedicate a member of your team to meet with a member of
my staff, a representative from the FRA, and folks in Metro
Atlanta who are interested in expanding commuter rail service
for a planning session to discuss how commuter rail service
might be brought online to serve Metro Atlanta and the role
that the FTA would play perhaps working with local transit
authorities and the FRA in helping make that real. Will you
please designate a staff member and engage with my office in
some planning work along the lines?
Ms. Fernandez. Yes, Senator, our regional office, and
particularly the regional administrator of the FTA, together
with her counterpart at FRA, that is exactly the type of
assistance that they provide, and they will be available to
support and participate in meetings that you and your team will
call regarding these projects.
Senator Ossoff. Thank you so much. No- or low-emission
buses present an opportunity for communities like Chatham
County and Chatham Area Transit or institutions like Georgia
State University to upgrade their bus fleets to electric and
no-emission buses. Both of those organizations, institutions,
are applying for Federal funding to do that. Will you please
provide to my office an update, working with your regional
office, on the progress of those grant applications and work
with me to try to see them through to success?
Ms. Fernandez. Yes, Senator, our Office of Congressional
Affairs will provide that information to your office.
Senator Ossoff. Thank you so much, Madam Administrator.
Thank you, Mr. Chairman.
Chairman Brown. Thank you, Senator Ossoff.
Senator Warnock from Georgia is recognized. Welcome.
Senator Warnock. Thank you so very much, Mr. Chairman. And
folks in Georgia are very much focused on public transit, and
like Senator Ossoff, it is certainly a concern of mine and a
high priority. Every day thousands of Georgians rely on public
transportation, from Atlanta commuters taking MARTA to work to
our veterans and our seniors who are living rural Georgia using
one of our 80 rural transit services to get to their doctors'
appointments. Eighty rural transit services. I think that is an
important point because often when you talk about public
transit, as you know, people assume urban. But the rural
communities very much rely on transit services in some ways
more.
Safely and efficiently getting Georgians where they need to
go is a priority of mine, and that is why I found to include
provisions from my Capital Investments Grant Improvement Act
and increased funding for the CIG program in the bipartisan
infrastructure law.
The provision I wrote to lift the Small Starts project size
cap is already enabling MARTA, Georgia's largest public
transportation service, to develop and improve its
transportation infrastructure to benefit millions of
passengers.
Administrator Fernandez, how will lifting the project size
cap for Small Starts create jobs, allow more communities to
benefit from the CIG program, and expand public transportation
service?
Ms. Fernandez. Senator, the Small Starts program is a very
important program, part of our Capital Investment Grant. And I
can say to you that there is a pipeline right now in our CIG of
over 60 projects; 50 percent of those are Small Starts. So we
are seeing more and more bus rapid transit projects come into
the fold, and the pipeline itself is, as I noted earlier, 150
percent greater than anything we have ever had vying for funds.
By lifting that cap, what we would do is give transit
agencies the opportunity to better bring their resources, their
local resources, and be able to maybe even accelerate some of
the projects that they have in their portfolio. And if it is a
single project that they are pursuing in a community or maybe
their first ever Small Starts project, it gives them the
opportunity to introduce that project sooner and to be able to
bring that high-quality service to the community and the
corridors that it will serve.
Senator Warnock. As I often say, if people cannot get to
where they are going, they cannot get to where they are going.
Or said more positively, we need to help people to get to where
they need to go through being able to move physically. So I
look forward to working with the FTA to ensure that the
bipartisan infrastructure law continues to expand access to
public transportation in Georgia in our rural and in our urban
communities.
During the height of the pandemic, rural transit systems
played a critical role in preserving public health and filling
the gaps, whether it was meal delivery or rides to
vaccinationsites. So I am not surprised that when I travel
across Georgia--I was down in Valdosta a couple weeks ago, Wake
Cross before that, Columbus--I hear and see demand for small
urban and rural transit services to connect Georgians to health
care services, to education, jobs, grocery stores, and so much
more.
Last year, I introduced the HOPE Act to help rural and
disadvantaged communities identify and address their
transportation needs. I am glad that this year's Government
funding bill provided $20 million for the HOPE Act, now known
as the Areas of Persistent Poverty Program, which will unlock
funding for rural transit projects in communities like Chatham
County, Savannah, Georgia, Valdosta, and will improve access to
jobs.
Administrator Fernandez, what has FTA learned in its early
implementation of the Areas of Persistent Poverty Program as it
works to make public transportation services more accessible?
Ms. Fernandez. Senator, it is a very important program, and
what we are learning is that there are communities where the
access to a minivan that can get an individual who recently had
surgery and needs to go for physical therapy and can no longer
drive or cannot drive throughout that period, it is their
connection to health improvement. It is their ability to
recover.
I was recently in Jackson, Mississippi, and had the
opportunity to talk to a woman who had experienced just that,
where she thought that public transportation was for other
people, and she realized that that ``other person'' was her,
and recognizing that she lived on a street that did not have a
name or an address, but the paratransit vehicle was still able
to reach to her location and get her to where she needed to go.
So we recognize and have always been very cognizant of the
significance of having good public transportation in rural
areas, and that is one of the reasons that through our
Coordinating Council on Access and Mobility, bringing together
all of the resources in Government that are available to--
whether it is human services and some of the other cabinet
departments and agencies, to encourage leveraging those dollars
so that service transportation, non-emergency transportation is
available to individuals no matter where they live.
Senator Warnock. I am out of time, but you talk about the
importance of this in the ordinary, everyday lives of
Georgians. Congress, as you know, funded the Areas of
Persistent Poverty Program in appropriations this year but has
not permanently authorized the program for future years. From
where you sit, can you talk about the importance of ongoing
funding of these programs for rural and low-income communities?
Ms. Fernandez. Yeah, these programs are very important. We
know that these areas are designated, when there is 20 percent
of poverty in the county, and that is how it is designated, and
recognize that many of these locations are distant from urban
centers, they are distant from trauma centers, and other
critical need and access points. So, clearly, having human
service transportation together with rural operators working
collaboratively to ensure that there is always access to
individuals, whether it is for routine or whether it is for
medical services, that public transportation can be there when
it is needed.
Chairman Brown. Thank you, Senator Warnock.
I would only add that both Senator Ossoff and Senator
Warnock have spoken to me many times about the importance of
public transit in Georgia, something that has been, frankly,
ignored for far too many years, and the investment that they
have demanded is really beginning to pay off, and as Chair of
the Committee with that jurisdiction, I know of my interest and
I know that you have that same interest, Administrator
Fernandez.
Senator Van Hollen of Maryland is recognized from his
office.
Senator Van Hollen. Thank you, Mr. Chairman. Administrator
Fernandez, thank you for all your good work.
I want to start by associating myself with the comments
made by Senator Warner with respect to the Washington Metro
system, WMATA, which, as you said, is important to the entire
region, and the Federal Government has an important stake in
the success of WMATA. We have some ongoing safety issues. Our
larger long-term challenge is bringing back ridership that was
lost during COVID. We have recovered much of that but have a
ways to go. So I look forward to your input and ideas on that
front.
We also have a lot of other important Maryland transit
projects that have been made possible by the bipartisan
infrastructure bill, including the Southern Maryland Rapid
Transit Project. I do not want to go into all the details, but
I just would ask you for a commitment that your office work
with us to identify the maximum possibilities to move that
project forward.
Ms. Fernandez. Yes, Senator, FTA is working with Charles
County to advance the Southern Maryland Transit Corridor
Project, and they are not a direct recipient yet, but the
regional office has been working very closely with them to
ensure that they comply with all the legal requirements.
Senator Van Hollen. Well, thank you. Thank you for being on
top of this issue. I appreciate it, and we look forward to
continuing to work with you and your team.
Of course, the infrastructure is an essential component,
but the other essential piece that makes everything run are the
workers, the transit workers. And I was very pleased that a
piece of legislation that I introduced to strengthen the safety
of transit workers, along with passengers, was passed, included
as part of the infrastructure bill. And you mentioned that in
your testimony, that transit authorities located in large urban
areas must establish their safety committees comprised of both
management and labor officials by the end of this month, and
that all transit agencies must complete their safety plans by
the end of the year.
My question is: As you monitor these deadlines, are you
confident that we will be on track in terms of getting those
safety committees up and running?
Ms. Fernandez. My expectation is that all transit agencies
are on track to get that up and running, Senator. When the
bipartisan infrastructure law was enacted in November of last
year, it was effective immediately, and the transit agencies
all understood, based on additional information that was put
out by my office, what was required of them. And those that had
existing safety committees, they made sure that there was equal
representation; those that had to create those safety
committees have had ample time to do so. I think that the
additional timing that has been allowed through July 31st from
the November 15th enactment is adequate for them to make the
changes, the requisite changes that are necessary in order to
update their public safety transportation agency safety plans
by the end of this year.
Senator Van Hollen. Well, thank you, and thank you for
holding people's feet to the fire in terms of the deadlines.
You know, when I talk to transit workers, you hear often
terrible stories about the kind of abuse that they have to
take. And so some of the changes that I expect to be made I
think will go a long ways to addressing some of those issues.
And that, of course, raises the larger issue of workforce. As
you well know, we are experiencing, you know, workforce demands
in many different sectors. And I know the transit workforce
situation is no different.
We did as part of the infrastructure bill, as you know,
include the efforts with respect to investment in workforce,
and I know that you are focused on the Transit Workforce
Center. Could you just speak briefly about your vision for the
program and how the funding is flowing for those purposes?
Ms. Fernandez. Yes, and such an excellent question given
where we are with all the demands of increased funding both on
the construction side through the Capital Investment Grant and
then the investment in rolling stock, upgrading and replacing
rail vehicles in addition to transitioning bus fleets.
The way that we envision this Transit Workforce Center
moving forward is to be able to serve transit agencies, provide
them with some very specific guidelines, provide them with
training modules, and also help them make connections at the
local level with community colleges so that they can create the
opportunities for not only recruiting but also training and
upskilling the existing workforce to work on the new vehicles,
to work on the new technology that is out there.
We, like all other industries, are in competition for
talent and for individuals who want to become whether it is a
bus operator, rail conductor, or maintenance frontline worker,
and, therefore, looking at beyond just the industry and
connecting with high schools--and that is one of the other
areas that they are going to be--the Transit Workforce Center
will assist with, is connecting with local schools in addition
to labor shops so that the apprenticeship programs can be
developed and those that are already existing can be opened and
made available so that that pipeline can continue to grow. We
do see attrition in the industry, and we want to make sure that
there is sufficient pipeline to backfill that attrition.
Chairman Brown. Thank you, Senator Van Hollen.
Senator Toomey has one last question.
Senator Toomey. Thank you very much, Mr. Chairman, and,
Madam Administrator, as you know, last year's infrastructure
law requires the Secretary of Transportation to establish a
program focused on the deployment of advanced digital
construction management systems under the FTA's Innovation
Program. Increasing and expanding the use of innovative
technologies for construction can help expedite timelines and
save Federal taxpayers money. These types of technologies are
also applied throughout the life cycle of transportation
infrastructure, including the maintenance phase.
During this Committee's last transit hearing in February,
the Central Ohio Transit Authority testified that they use
advanced technology systems to help with predictive maintenance
for state of good repair improvements.
So, Administrator Fernandez, could you briefly provide an
update on the timing for establishing this program?
Ms. Fernandez. Yes, Senator Toomey, and I really appreciate
that we are having the conversation about the advanced digital
construction management. I was trained in the construction
industry, and this is without a doubt one of the best
opportunities that the transit industry has to not only
establish a good program management program but also the
oversight of that program to ensure that with the use of
technology, we can predict, we can forecast the schedule,
budget, and keep projects on task. The legacy--the large
programs, the large projects have been using it, as was noted
by General Manager Joanna Pinkerton when she testified. What we
are seeing now with the increase in funding, the $23 billion in
the Capital Investment Grant program, that means that we are
going to have more transit agencies, many of them are small
operators that may not have familiarity. So this is clearly an
opportunity. We are in the process now of collecting
information so that we can not only identify what has been
used, what some of the entities that have applied advanced
technologies, what they have learned, where do we see the gaps.
And, you know, as I noted, with the increase in small operators
now taking on projects, construction projects, that there is
certainly an opportunity for them to connect, and what, if any,
additional research can be made available.
Senator Toomey. Right.
Ms. Fernandez. Our intent is to move posthaste with them.
Senator Toomey. Do you have an estimate for when the
program would be established?
Ms. Fernandez. We are going to be issuing the information
on the research aspect of this, because it came through our
research program, we will be issuing information on that, and
my expectation is that will be toward the end of this year.
Senator Toomey. OK. Thank you.
Thank you, Mr. Chairman.
Chairman Brown. Thank you, Senator Toomey.
Administrator Fernandez has shown the FTA is working on
many fronts to deliver the promised investment and important
program updates in the infrastructure laws. Thank you,
Administrator, for your testimony today.
For Senators who wish to submit questions for the hearing
record, these questions are due 1 week from today, on Tuesday,
July 19th. To the witnesses, please submit your responses to
the questions for the record 45 days from the day you receive
them.
With that, the hearing is adjourned. Thank you.
[Whereupon, at 11:38 a.m., the hearing was adjourned.]
[Prepared statements and responses to written questions
supplied for the record follow:]
PREPARED STATEMENT OF CHAIRMAN SHERROD BROWN
Last Thursday, I invited our witness, FTA Administrator Nuria
Fernandez, to Columbus to see the excitement in the community as they
plan to build one of the best bus rapid transit networks in the
country.
Columbus is growing--and if we pass the CHIPS Act, with Intel's
investment in semiconductor production in Central Ohio, it will grow
even faster.
Investments from the Infrastructure Bill will help Central Ohio
prepare for more people, expand service, and connect more Ohioans with
these exciting job opportunities with new Bus Rapid Transit.
We visited the West Broad street corridor with COTA's CEO Joanna
Pinkerton. We saw the tremendous opportunity for fast bus service to
downtown Columbus that will spur new development and new affordable
housing along the route.
Columbus is not alone.
Cleveland RTA has entered the Capital Investment Grants program for
a new BRT route and Cincinnati is planning its own large BRT network.
Nearby communities Pittsburgh and Indianapolis also have major BRT
investments moving forward with FTA support.
For too long, the United States hasn't invested in public transit
the way we should, and we've fallen far behind the rest of the world in
new transit technology.
But with the bipartisan infrastructure law we are finally working
to catch up.
The bipartisan infrastructure law included the largest investment
ever in public transit.
But it's not just about the numbers--it's about what that
investment will do, and how this will matter in Ohioans' lives, and for
people across this country.
It will connect more communities. It will mean faster service to
more neighborhoods. It will open up new job opportunities, so workers
aren't limited by a bus that doesn't reach a job site or doesn't run on
Sunday.
Right now, families are continuing to feel the pain of high gas
prices because of Russia's attack on Ukraine.
But if there's a reliable bus or train nearby, workers don't have
to choose between paying for gas or making rent.
This is going to make such a difference--especially in so many
communities that haven't had reliable transit.
It's the Black and Brown communities who have been redlined, who
have been cut off from jobs by interstates that walled off their
neighborhoods. It's rural areas where walking isn't an option.
It's smaller cities and towns, that haven't been able to afford big
extensive transit networks like big cities.
Alongside these opportunities, we know the transit industry faces
challenges. High fuel prices hurt diesel bus operations, and, like the
private sector, transit agencies must compete for talented workers.
We are lucky to have an exceptional leader at FTA working to
navigate these challenges, and deliver on the promises in the
infrastructure bill.
Administrator Fernandez has been on the job since last June,
becoming the first Senate-confirmed woman of color and first Afro-
Latina to lead FTA.
She and her team have worked to deliver pandemic relief funding
quickly and efficiently.
In the wake of the pandemic, workers are still adjusting their
commutes. We need to preserve transit routes and help transit agencies
keep their highly skilled workers on the job.
Administrator Fernandez is now focused on an even larger endeavor:
implementing the most consequential investment in our transit
infrastructure in a generation.
FTA has moved quickly to help more communities get new, state-of-
the-art zero-emission buses on the roads.
It's important progress in our fight against climate change, it's
going to clean up the air in our communities, and it's going to mean
new, modern buses for Americans to ride.
FTA has made it easier for agencies to apply by combining the Low-
No Bus application with the traditional bus program.
FTA has also worked to get funding for transit construction out the
door under the Capital Investments Grants program, and to help our
rural communities improve their transit options.
As long as I chair this Committee, workers will always have a seat
at the table. The Administrator has maintained that same commitment--
thank you Ms. Fernandez for giving transit workers a voice at FTA. She
is working to ensure workers have the training needed for the next
generation of service.
Finally, FTA has continued its sharp focus on safety. On this
Committee, we have always strongly and bipartisanly supported safety
efforts. I've worked with both Chairman Crapo and Ranking Member Toomey
on safety issues, including in the infrastructure bill.
Administrator Fernandez, I look forward to your testimony.
______
PREPARED STATEMENT OF SENATOR PATRICK J. TOOMEY
Thank you, Mr. Chairman.
Administrator Fernandez, welcome. Today, we'll hear directly from
the FTA on implementation of last year's infrastructure law.
As I've stated before, we should not pay for an infrastructure
package by borrowing billions more dollars. But that's precisely what
happened with this law. It authorized so much new spending that $118
billion had to be transferred from the Treasury's General Fund to the
Highway Trust Fund, which is a specific account financed with Federal
gas tax revenue to cover mass transit and highway construction costs.
President Biden would make this shortfall worse by suspending the
Federal gas tax for 3 months, reasoning that the solution to high gas
prices isn't more supply, but rather more debt. I'd suggest if we want
to help commuters and families suffering from inflation, we can start
by reversing the Administration's actions that keep us from using
America's own fossil energy. But back to infrastructure.
Federal spending should be driven by a reasoned assessment of our
Nation's needs. However, last year's infrastructure law seems to have
been driven more by Democratic political imperatives. The bill funneled
billions to projects that the private sector has been more than willing
to fund, such as ferries and electric vehicle charging stations.
Transit was given $108.1 billion over a 5-year period. To put that
number into perspective, it's almost twice what transit got in the last
surface transportation reauthorization. And this staggering sum will be
on top of the nearly $85 billion given to transit during one year of
the COVID pandemic, the vast majority of that money categorized as
``emergency'' spending to offset COVID losses. In fact, that nearly $85
billion exceeded the combined annual operating and capital costs of all
transit agencies in the United States.
At the time, Democrats tried to justify paying for more than 100
percent of transit agency budgets by saying that transit systems would
collapse from declines in ridership and State and local tax revenues.
Yet, State and local tax collections set a new record in 2020. And
Congress gave more than $850 billion to States and local governments
for COVID relief.
Worse, billions of dollars will go to transit agencies that were
facing ridership declines well before COVID. Since reaching a high of
10.7 billion trips in 2014, transit ridership has steadily fallen. It
fell by almost 8 percent in 2019. And the last 2 years saw even steeper
declines.
Ridership fell at some agencies by over 70 percent. According to
FTA, ridership now is only about 60 percent of prepandemic levels. Some
estimates predict ridership will never fully return to prepandemic
levels.
Agency leaders in New York, Pittsburgh, and Washington, D.C., have
all said their riders won't return. And even transit agencies that are
predicting ridership to return to prepandemic levels don't expect that
to happen this decade. For example, a nonpartisan think-tank--the Eno
Center for Transportation--recently reported that New Jersey Transit
does not expect its prepandemic rail ridership to return until the
early 2030s, and San Francisco's Bay Area Rapid Transit does not expect
its prepandemic ridership to return until after 2035.
So why give away more taxpayer money to agencies serving far fewer
riders? Shockingly, the FTA is allowing transit agencies that are
seeking Federal funding for projects to expand transit systems to use
prepandemic ridership data from 2019. Transit agencies largest source
for expansion projects is FTA's Capital Investment Grants program--
known as CIG.
There are transit agencies seeking millions and even billions of
Federal taxpayer funding for CIG projects to expand streetcars,
commuter rail, light rail, and bus rapid transit. To justify their
funding requests, FTA has been allowing transit agencies to use
prepandemic data on ridership from 2019 and 2020. That boggles the
mind.
Transit ridership was already in decline pre-COVID. And transit
agencies are publicly admitting that their ridership will not recover
to prepandemic levels for over a decade, if ever. So Federal taxpayers
will build out transit systems to serve ghost riders, increasing long-
term maintenance costs. I have no doubt that a few years after these
projects are completed, transit agencies will be before Congress
pleading for more subsidies to operate systems too large for demand.
Also concerning is FTA's willful disregard of an important feature
of last year's infrastructure law. The law requires agencies to make
progress on their deferred maintenance backlogs to qualify for CIG
grants. But FTA plans to allow agencies to qualify for CIG grants even
when they are falling further behind on their overall deferred
maintenance targets. That does not protect taxpayers.
Speaking of protecting taxpayers, people should feel safe while
using transit. As I stated at our last transit hearing, the rising
rates of crime on transit systems are deeply disturbing. Unfortunately,
it doesn't appear that FTA is taking this important issue seriously
enough.
Let me conclude with this observation. It may not entirely be
transit agencies' fault that people are choosing not to use their
services. But that doesn't mean Congress should be throwing ever more
billions of Federal taxpayer dollars at them to build out more services
for riders they don't have.
I look forward to discussing the future of mass transit today.
______
PREPARED STATEMENT OF NURIA FERNANDEZ
Administrator, Federal Transit Administration
July 12, 2022
Chairman Brown, Ranking Member Toomey, and Members of the
Committee, it is my pleasure to testify before you today on the
progress the Federal Transit Administration has made in implementing
the Infrastructure Investment and Jobs Act, or the Bipartisan
Infrastructure Law, and our continued work to improve America's
communities through public transportation.
First, I want to express my gratitude to this Committee for
advancing my nomination as Administrator of the FTA, and to the Senate
for confirming me last June. It is truly the privilege of a lifetime to
lead FTA during such a critical time for public transportation.
Just over a year ago, COVID-19 was still ravaging transit systems
nationwide, impacting every aspect of the industry. We greatly
appreciate Congress providing about $70 billion in COVID relief funding
for public transportation in response to this crisis.
These funds not only made sure that riders had the lifeline they
needed--they were also essential for the economy. The American Rescue
Plan alone is responsible for saving about 50,000 transit jobs, not to
mention the extensive supply chain that manufactures components for
buses, rail cars, and more. In short, transit helped keep America open.
Now, thanks to diligent efforts to win customers back, more demand
for in-person work as the economy grows, and increasing confidence from
the riding public, we have seen ridership return to about 60 percent of
prepandemic levels . . . and climbing.
The Bipartisan Infrastructure Law came at a pivotal time for public
transportation. Recognizing the importance of transit to so many
communities, Congress entrusted FTA with up to $108 billion dollars in
funding over the next 5 years.
Trust me when I say we do not take this responsibility lightly.
Since President Biden signed the Bipartisan Infrastructure Law last
November, FTA has been hard at work to deliver this record investment
to agencies nationwide--in areas large and small; urban, rural, and
Tribal; in every State and Territory in the Union.
In the next few minutes, I will highlight how FTA has delivered on
the promise of the Bipartisan Infrastructure Law, as well as discuss
our plans for the future.
Safety
As Secretary Buttigieg has said, safety is our North Star. In the
COVID-19 era, ``safety'' has taken on a new meaning, but the principle
is the same: every transit rider deserves a safe, secure, and reliable
trip, and every transit worker must be able to conduct his or her
duties without fear of assault or injury.
With that in mind, we are doing everything in our power to improve
safety throughout the industry. All transit operators that receive FTA
urbanized area funds must have Public Transportation Agency Safety
Plans in place to improve their safety processes and systems. To meet
the new requirements in the Bipartisan Infrastructure Law, transit
agencies in large urban areas must establish Safety Committees with
equal representation of management and labor by July 31, and all
agencies in urban areas must update their safety plans by December 31,
with approval by Safety Committees if applicable.
FTA also plans to expand our data collection efforts to require
that all transit worker assaults are reported through the National
Transit Database. Currently, only those assaults that result in serious
injury are required to be reported. In addition, FTA is strengthening
its State Safety Oversight program by giving State oversight bodies the
authority to conduct unannounced risk-based inspections. Taken
together, these actions will give FTA more information than ever before
on the scale of transit safety needs and how to address risks.
The Bipartisan Infrastructure Law's Historic Transit Funding
Another critical aspect to ensuring the safety of our transit
systems is to improve the state of repair of transit assets, from
subway tracks to bus wheels. Thanks to the Bipartisan Infrastructure
Law, we have resources to take on the estimated $105 billion backlog in
transit maintenance needs nationwide. To help transit agencies perform
needed repairs and modernize their equipment, right after the Fiscal
Year 2022 Appropriations Act in March, FTA acted swiftly to make the
full balance of over $13 billion in FY22 formula funding available
through the apportionment process.
We are also delivering funding through our competitive programs as
quickly as possible.
In February, we published a Notice of Funding Opportunity
(NOFO) for Tribal Transit, and in March, we published a
combined NOFO for the Low-No and Buses and Bus Facilities
programs, making over $1.7 billion available to replace and
modernize our Nation's bus fleets in rural and urban areas. In
May, we issued the NOFO for Transit-Oriented Development
planning as well.
The Low-No funding is unprecedented, more than six times
what it was in 2021. We are on track to meet the statutory
deadline to award these funds, which will make an enormous
difference in reducing emissions and improving air quality
nationwide.
Just last week, we published a NOFO making available nearly
$300 million for three ferry programs: the longstanding urban
ferry program, as well as the new Ferry Service for Rural
Communities and Electric or Low-Emitting Ferry Programs.
This summer, we anticipate issuing NOFOs for the other
competitive programs established by the infrastructure law,
including the All Stations Accessibility Program (ASAP) and the
Rail Vehicle Replacement Program. I will discuss ASAP in more
detail in a moment.
Workforce Development
Recruiting, training, and retaining the transit workforce continues
to be a top priority. Frontline workers--represented by the backbone of
the industry, transit labor--support riders in their communities, day
in and day out, and they need help. They need more coworkers to keep
people moving to jobs, schools, health care appointments, and
opportunities in communities across the country.
Thanks to dedicated funding from Congress, FTA established the
Transit Workforce Center last September to help transit agencies
recruit, train, and upskill their workforces and establish partnerships
between transit agency management and labor organizations. Since then,
the TWC has hit the ground running, providing recruitment and
management strategies as well as networking opportunities to transit
agencies nationwide.
Following direction in the Bipartisan Infrastructure Law,
applicants to the bus competitive grant programs who have proposed
projects related to zero-emission vehicles must adequately support
workforce development, including registered apprenticeships and
technology training, or use 5 percent of their awards to do so. FTA has
also worked with the Department of Labor and their Good Jobs Initiative
to embed incentives for equitable workforce development connected to
good jobs into other discretionary grant programs.
Equity and Accessibility
We are thankful to this Committee and Congress for the new All
Stations Accessibility Program (ASAP) included in the Bipartisan
Infrastructure Law. It has been 32 years since the passage of the
Americans with Disabilities Act, and while great strides have been made
to improve transit accessibility, we still have work to do.
There are over 900 rail stations that remain inaccessible.
Beginning to upgrade these stations will open new opportunities for
people with disabilities to independently use rail transit systems to
reach jobs, health care and other services, social activities, and all
life's opportunities.
In addition to improving quality of life for people with
disabilities, in keeping with the President's Executive order on
Advancing Racial Equity and Support for Underserved Communities, we are
advancing the Biden-Harris administration's commitment to address the
needs of communities that have been historically overburdened and
underserved by our Nation's transportation systems.
I want to be clear that public transportation does not just serve
big cities--far from it. FTA has supported transit in rural and Tribal
areas for decades, and we continue that important work every day. It is
those areas where a local bus, van, or paratransit service can make all
the difference for a senior citizen aging in place or a veteran who
needs care at the VA.
For example, I recently visited Jackson, Mississippi, to highlight
FTA funding that will allow the Claiborne County Human Resource Agency
and four partner organizations to collaborate to better connect rural
Mississippians with jobs, doctor's appointments, grocery stores, and
other essentials. I saw firsthand that rural transit is not just a bus
or a van, it is a pathway to health, wellness, and opportunity.
USDOT is committed to improving transportation infrastructure and
stewardship on Tribal lands. Recently, Deputy Secretary Polly
Trottenberg traveled to the Cherokee Nation in Oklahoma to sign the
first ever Tribal Transportation Self-Governance Compact. This historic
agreement means Cherokee Nation will have the opportunity to make more
decisions on how to use Federal funds to support transportation and
infrastructure projects that better connect both their residents and
those visiting tribal lands.
Conclusion
We know that transportation costs are one of the biggest burdens on
many family budgets. Transit is the great equalizer, making sure that
Americans always have an affordable option to get from where they live
to where they need to go. My staff and I come to work every day to
ensure the historic level of funding over the next 5 years is invested
equitably and effectively, taking on the climate challenge and making
the Nation's trains, buses, ferries, and paratransit better for all.
I look forward to continuing to work closely with this Committee as
we go about this important work.
Thank you, and I will be happy to answer any questions.
RESPONSES TO WRITTEN QUESTIONS OF CHAIRMAN BROWN
FROM NURIA FERNANDEZ
Q.1. Coordination of Federally Assisted Non-Emergency Medical
Transportation (NEMT)--Administrator Fernandez, in Ohio there
are 14 State agencies that invest at least $500 million
annually to transport their clients and customers to jobs,
medical care, and other destinations. After FTA, non-emergency
medical transportation under Medicaid is the next largest
Federal funding source for human services transportation, but
Medicaid rules create barriers that encourage duplication of
services--creating waste and preventing coordination between
public and private providers.
How would you assess the Federal Coordinating Council on
Access and Mobility's work to encourage changes to Medicaid
program rules that would help facilitate coordination?
A.1. The Coordinating Council on Access and Mobility (CCAM) has
made significant progress in the past 2 years engaging
stakeholders to identify existing challenges in the receipt of
needed transportation services and to facilitate coordination
with non-emergency medical transportation (NEMT) services in
the Medicaid program. The Medicaid program is a joint Federal
and State program that gives State Medicaid agencies
significant flexibility with respect to the design and
implementation of Medicaid services, including NEMT, within
certain Federal program rules.
Activities have included three CCAM stakeholder listening
sessions, and one joint FTA and Centers for Medicare & Medicaid
Services (CMS) public transportation stakeholder listening
session on NEMT, as well as a ``lessons learned'' assessment of
Mobility Ohio. These efforts helped FTA identify critical areas
where stakeholders are met with challenges and CCAM has shared
this valuable information with CMS. CCAM continues to work with
CMS to share stakeholder feedback to help inform CMS'
understanding of the challenges stakeholders face, and where
stakeholders may benefit from further clarification of the
statutory and regulatory parameters of Medicaid funding and the
flexibilities available to State Medicaid agencies in the
administration of their Medicaid programs.
Many of CCAM's efforts are ongoing. Under FTA's leadership,
a CCAM Strategic Plan (Plan) for the years 2023 to 2026 is
currently under development. CMS will lead a task in the Plan
to develop a Medicaid coordination fact sheet to help inform
transportation coordination partnership conversations between
State Medicaid Agencies and State Departments of
Transportation. CMS will also coordinate with FTA on the next
Notice of Funding Opportunity (NOFO) for the Pilot Program for
Innovative Coordinated Access and Mobility (Section 3006(b) of
the FAST Act (Pub. L. 114-94, Dec. 4, 2015)). A link will be
included in the NOFO to the anticipated CMS 2023 guidance to
help inform potential applicants about flexibilities within
Medicaid NEMT.
Q.2. What are the most significant obstacles to NEMT
coordination that result from Medicaid program rules?
A.2. Stakeholders have raised several areas where they believe
additional guidance would be helpful. These include:
1. Governmental Entities/State Departments of Transportation
(DOT) Acting as Medicaid NEMT Brokers
Stakeholders have asked for additional information
regarding a State DOT's ability to act as a broker of NEMT
service, which they have indicated will improve coordination
with existing public transportation infrastructure, leading to
improved access, efficiency, and affordability, especially for
rural beneficiaries.
2. Public Transit Systems and Self-Referral Prohibitions
Stakeholders have noted a desire for further clarity
around the Medicaid program's exceptions to the ``self-referral
prohibition''.
To prevent unethical financial benefits to providers,
CMS has a long-standing prohibition against self-referral in
the provision of medical services to Medicaid beneficiaries.
Self-referral occurs when one entity has investment or
ownership interest in the other, resulting in personal or
corporate financial gain to one or more of the parties when
patients are referred for services between the two entities.
State DOTs and public transit agencies have raised
concerns about how these rules may apply in circumstances such
as when a State DOT refers an NEMT trip to a public transit
provider. Though Medicaid regulations provide an exception for
Government entities to meet certain conditions, some
stakeholders have indicated that they would benefit from
further clarification of these rules.
3. Reimbursement for ADA Complementary Paratransit Services
for NEMT Medicaid Sponsored Rides
Some stakeholders have expressed concerns about the
Medicaid payment rate for NEMT services provided to Medicaid
beneficiaries in circumstances in which ADA complimentary
paratransit services are necessary, given the needs of the
beneficiary.
Generally, States have flexibility with respect to the
methodologies used to determine payment to Medicaid providers,
provided certain Federal statutory and regulatory requirements
are met. Stakeholders have indicated that it would be helpful
for brokers to be required or encouraged to establish payment
methodologies that reflect the cost of services in
circumstances in which ADA complimentary paratransit services
are necessary.
Q.3. Advancing Racial Equity and Supporting Underserved
Communities--In your testimony, you spoke about the FTA's
commitment towards addressing the needs of communities that
have been historically overburdened and underserved, in
alignment with the President's Executive order on Advancing
Racial Equity and Support for Underserved Communities.
Please share how FTA is working to achieve this commitment
and please note steps FTA plans to take in the remainder of
2022 and in 2023.
A.3. FTA is committed to addressing the needs of communities
that have historically been overburdened and underserved. This
commitment is reflected in the forthcoming FTA FY 2022-2026
Strategic Plan, which provides a roadmap for how FTA will
implement its mission to improve America's communities through
public transportation. In FTA's Strategic Plan, improving
equity is prioritized as a strategic goal, and one of FTA's
strategic objectives is to remove barriers to transit access
for underserved communities. In 2023, FTA will continue to
employ the resources and tools at its disposal--including
funding, policymaking, and intra/interagency coordination and
outreach toward that objective.
With respect to funding, FTA has elevated the consideration
of equity in its review and selection processes for Notices of
Funding Opportunities (NOFOs), including two recent notices. In
our FY 2022 All Stations Accessibility Program (ASAP) NOFO,
published on July 26, 2022, FTA stated that it will ``give
priority consideration to applications that advance racial
equity in two areas: (1) planning and policies related to
racial equity and overcoming barriers to opportunity; and (2)
project investments that either proactively address racial
equity and barriers to opportunity, including automobile
dependence as a form of barrier, or redress prior inequities
and barriers to opportunity.'' FTA has included the same
consideration in the FY 2022 Ferry Programs NOFO (Passenger
Ferry Program, Low-No Ferry Program, and Rural Ferry Program),
published on July 8, 2022.
In terms of policymaking, FTA is working diligently to
update existing guidance and supporting Departmental regulatory
efforts to advance equity and address the needs of historically
overburdened and underserved communities. In 2023, FTA expects
to publish proposed updates to its Title VI Circular, which
provides FTA recipients with direction on program-specific
issues and statutory and regulatory requirements. In alignment
with the Executive Order on Advancing Racial Equity and Support
for Underserved Communities, the updated Title VI Circular
would help remove barriers to transit access for underserved
communities by strengthening the requirements for public
participation and equity analyses. Improvements to the public
participation process would increase transparency and
accountability to underserved communities, and enhancements to
equity analyses can help ensure overburdened communities, such
as racial minorities and low-income communities, do not
experience disparate impacts or disproportionate burdens for
service changes, fare changes, or the construction of transit
facilities.
In support of intra/interagency coordination and outreach,
FTA will continue assisting the DOT Office of the Secretary in
its proposed improvements to the Disadvantaged Business
Enterprise (DBE) Program. The DBE Program is designed to remedy
ongoing discrimination and the continuing effects of past
discrimination in federally assisted transit, highway, and
airport contracting. DOT recently published a Notice of
Proposed Rulemaking (NPRM) to modernize the DBE program
regulations, which would help further level the playing field
for small, disadvantaged businesses--businesses owned and
controlled by individuals from historically overburdened and
underserved communities--seeking to compete for federally
assisted transportation contracts. The proposals would allow
more firms to become certified more quickly, ensure they are
paid on time, and help the Department enforce these important
rules. For FTA recipients, the proposals would reduce the
administrative burden on our smaller and rural recipients,
which would allow them to devote more resources to conducting
their DBE programs and awarding contracts to DBE firms. FTA
will continue to support this DOT effort by advising on transit
and transit-vehicle-specific DBE rulemaking matters.
In addition, FTA is working closely with the Office of the
Secretary to update the Department's accessibility standards
for buses and vans under the Americans with Disabilities Act
(ADA), consistent with the Final Rule issued by the U.S. Access
Board on December 14, 2016. The Access Board has the statutory
authority to develop and issue such standards, but it is
incumbent upon DOT to incorporate those standards into its ADA
regulations as enforceable standards. These changes would
ensure that buses and vans used in public and private
transportation systems are readily accessible to and usable by
people with disabilities, fulfilling the Department's goal of
spontaneous travel by wheelchair users. DOT anticipates issuing
a Notice of Proposed Rulemaking (NPRM) in 2023. This ADA bus
and van rulemaking will be followed by amendments to the DOT
ADA regulations governing the provision of transportation
services, and revisions to the standards for buildings and
facilities to achieve more equitable access.
In 2022 and 2023, FTA will also continue to support DOT's
Equity Action Plan and Justice40 Initiative work by deploying
policy, technical, and senior staff to engage and participate
in action teams and workgroups. For example, experts from FTA's
Offices of Budget & Policy, Civil Rights, and Planning &
Environment are actively participating in the action team to
update DOT's Public Involvement Guidelines, which has a renewed
focus on addressing the needs of historically overburdened and
underserved communities. Last updated in 2015, DOT plans to
publish the updated Public Involvement Guidelines by 2023.
Finally, FTA has been working with the Office of the
Secretary and other DOT modes to implement the Justice40
initiative. This initiative is working toward the goal that at
least 40 percent of the overall benefits of certain Federal
investments go to historically disadvantaged communities. FTA
is helping with the analysis of its historical benefit
distribution to inform future funding allocations and is
working with OMB to identify next steps in the implementation
of Justice40.
Q.4. How is the FTA working with the Minority Business
Development Agency (MBDA) to advance contracting opportunities
minority owned businesses?
A.4. The U.S. Department of Commerce's Minority Business
Development Agency (MBDA) is a valuable resource in FTA's
administration of the Disadvantaged Business Enterprise (DBE)
programs. The MBDA provides tools that help level the playing
field for women- and minority-owned small businesses competing
for transportation contracts. On September 20, 2022, the U.S.
Department of Transportation (DOT) signed an MOU with MBDA to
formalize an agreement between the two to promote data driven
policies and increase access to opportunities for diverse
businesses throughout the transportation sector.
While there are important differences between DBEs and
MBEs, firms that qualify as DBEs under USDOT's program are
often eligible to benefit from MBDA programs, and FTA staff
routinely recommend MBDA's resources. Some of the most
persistent barriers reported to FTA by DBEs include access to
capital and awareness of contracting opportunities. The MBDA
has resources and tools devoted to solving those problems. FTA
is especially encouraged by some of MBDA's recent announcements
that FTA believes will result in more DBEs working on transit
projects. For example, FTA is excited about the MBDA's funding
dedicated to hiring procurement support specialists in its
Business Centers. These specialists will focus on connecting
businesses to BIL-funded opportunities, many of which will be
transit projects.
FTA recognizes the need for more women- and minority-owned
small businesses competing for transportation contracts, and
that FTA needs to provide resources to those businesses so that
they are well-positioned to start working when the opportunity
arises. While FTA's biggest impact on advancing contracting
opportunities for women- and minority-owned small businesses is
through effectively administering and improving the DBE
program, in conjunction with our colleagues throughout the
Department, FTA will continue to promote the MBDA to our DBE
stakeholders as a valuable tool.
------
RESPONSES TO WRITTEN QUESTIONS OF SENATOR TOOMEY
FROM NURIA FERNANDEZ
Q.1. Capital Investment Grants (CIG) Program--The Federal
Transit Administration (FTA) is permitting transit agencies who
are seeking funding for expansion projects through the Capital
Investment Grants (CIG) program to use prepandemic ridership
data from 2019 or 2020 to make ridership projections. Ridership
data is an important criteria in qualifying a project for a CIG
grant. The U.S. is well past the depths of the pandemic from
2020, and transit agencies have ridership data from 2021 and
2022 on which they could base their ridership projections.
Yet, FTA is allowing transit agencies to use obsolete
prepandemic ridership data when FTA is aware that ridership is
currently only about 60 percent of prepandemic levels today and
multiple transit agencies project that ridership will not
return to prepandemic levels anytime soon, if ever.
Why is the FTA continuing to permit transit agencies to
knowingly use inflated ridership projections for the CIG
program?
When is FTA going to end the concerning practice of
allowing transit agencies to use inflated ridership projections
to justify requests for expansion projects?
A.1. In the spring of 2022, FTA gave direction to project
sponsors preparing submittals for the Fiscal Year (FY) 2024
Annual Report on Funding Recommendation for the CIG program
that ridership forecasts for proposed CIG projects may be
derived from transit service, fare policy, and ridership
information from before the COVID-19 pandemic (i.e., 2019
information reflecting prepandemic conditions rather than data
from 2020 or later). FTA's communication also notified project
sponsors that while FTA would rate and evaluate projects for
the FY24 Annual Report using this prepandemic information as
the basis for the ridership projections, there would be
continued monitoring of current ridership trends. FTA
encouraged project sponsors to review and submit their best-
available prepandemic data (from 2019 or early 2020), as well
as their latest ridership data for transit services currently
operating within the proposed CIG project corridor. This
guidance was developed because transit service and ridership
have been in--and remain in--flux since the start of the COVID-
19 pandemic in 2020.
Before making the announcement regarding the flexibilities
in ridership projections that would be accepted from CIG
project sponsors to inform the FY24 Annual Report to Congress,
FTA examined the monthly ridership data reported to the
National Transit Database (NTD) between mid-2021 and early
2022. That review revealed that the COVID public health
emergency has caused transit ridership to fluctuate
significantly since the spring of 2020 and that ridership
numbers by mode and transit agency varied significantly. At the
time of the analysis, ridership did not appear to have reached
a sustained, consistent level of ridership for 6 to 12 months
without a pandemic related event causing a reduction of travel
and in-person economic activity.
Until vaccines for COVID were widely available and
distributed in 2021, many businesses had not fully reopened,
which affected transit ridership. The period from Spring 2021
(as vaccines started being distributed) through Fall 2021 saw
very strong growth in transit ridership nationwide of
approximately 40 percent. The Omicron variant, which impacted
the period from late 2021 through early 2022, eroded ridership
gains. As the Omicron variant waned, ridership began to return.
The NTD data represents systemwide information and is not
specific to the proposed CIG project corridor. While this data
can inform overall trends in the system, the ridership levels
occurring on transit service within the proposed CIG project
corridor may be better or worse than the system trend. For this
reason, FTA has asked project sponsors to also provide their
most current ridership for their project corridor. This
information provides context to the prepandemic ridership
projections.
FTA is continuing to monitor trends based on NTD data as
well as gathering data from transit agencies around the country
to inform its decision-making. In Spring 2023, FTA will prepare
its updated set of instructions to CIG project sponsors for
reporting information for the FY25 Annual Report to Congress,
at which time FTA will provide specific guidance to project
sponsors on ridership projections.
Q.2. Advanced Digital Construction Management Systems--The
Advanced Digital Construction Management Systems is a new
program established under FTA's Innovation Program in the
Infrastructure Investment and Jobs Act. You testified that you
anticipate issuing information on this program towards the end
of this year.
Beyond the statutory criteria, can you explain your goals
for this program?
A.2. FTA's overarching goal is to provide information to
transit agencies on resources available for managing the
implementation of capital projects through Advanced Digital
Systems.
Q.3. Can you describe how you plan to implement this program
within the existing FTA research budget?
A.3. FTA is developing a demonstration program using FY 2022
and FY 2023 Public Transportation Innovation funding for a
fully integrated, construction lifecycle digital management
system in major infrastructure projects. Transit agencies,
private sector companies and consulting firms participating in
the program will deploy advanced digital construction
management systems, assess how well the implementation of the
integrated solution progresses, and then document the most
promising practices to help other agencies benefit from the
research. FTA's approach builds upon FHWA's management of its
Advanced Digital Construction Management Systems for project
delivery. As a first step, FTA will give a presentation on this
new program and gather input from FTA grant recipients that are
administering program management systems at its upcoming
Construction Workshop. Participants will be asked to share
their current experiences using digital construction management
systems to help inform the development of this new program.
Q.4. Will there be a special, designated program officer for
this program?
A.4. Yes.
Q.5. Throughout the Infrastructure Investment and Jobs Act,
there are references to ``innovative design'' and ``innovative
technology'' to be considered by Federal agencies to achieve
certain programmatic outcomes.
How do you plan to leverage digital technology in FTA's
discretionary grant programs?
A.5. Digital technology is an eligible expense in many of FTA's
discretionary grant programs. For example, FTA's Grants for
Buses and Bus Facilities Competitive Program allows for the
purchase of digital farebox equipment, signage and route
display technology for bus stops, and route optimization
software. FTA's All Stations Accessibility Program (ASAP),
which is a new competitive program authorized through the
Bipartisan Infrastructure Law, also allows for the
implementation of digital technology to ensure that pre-ADA,
legacy rail stations are accessible for all. FTA continues to
provide resources and technical assistance to the public
transportation industry on digital technology eligibilities
within all of FTA's formula and competitive programs and how
these technologies can support mobility for all. FTA's National
Center for Applied Transit Technology also provides technical
assistance and training to small urban, rural, and tribal
transit systems to help them understand the use of technology
tools.
Q.6. Safety and Security on Transit Systems--There is a
disturbing rise in crime that is affecting transit agencies
across the country. At the July 12th Banking Committee hearing,
you offered to provide me and my staff the specific amounts
that transit agencies have spent towards mitigating crime on
their systems. Please provide the following information from
fiscal year 2019 to the present:
The amount of Federal taxpayer dollars transit agencies
have spent on security, denoted by formula program and by
fiscal year.
Separately, provide the above amounts for Central Puget
Sound Regional Transit Authority, Chicago Transit Authority,
Los Angeles County Metropolitan Transportation Authority,
Southeastern Pennsylvania Transportation Authority,
Massachusetts Bay Transportation Authority, and the New York
Metropolitan Transportation Authority.
A.6. FTA is committed to ensuring safe and secure transit
systems for both transit riders and workers. While many FTA
funded investments include infrastructure upgrades or
enhancements as well as activities to protect transit riders
and workers, safety and security expenses are not delineated as
an expense category that transit agencies are required to
report separately to the National Transit Database or the grant
management system. In large urban areas, FTA formula grants are
used primarily for capital and planning projects. FTA grant
recipients would include security investments, such as cameras,
in their overall grant funded project costs. Federal grant
recipients in urbanized areas use their local or State funds to
procure law enforcement safety and security services and in
rural areas, Federal formula funds may be used for crime
prevention efforts.
As of 2022, the Infrastructure Investment and Jobs Act now
requires transit agencies that serve large Urbanized Areas and
receive section 5307 Urbanized Area Formula Grant funds to set
aside at least 0.75 percent of those funds for safety related
projects. Based on the FY22 formula split letters provided by
each Urbanized Area's Designated Recipient, the required
minimum set aside for safety related projects for the agencies
listed above are as follows:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
In addition, FTA's Urbanized Area Formula program requires
all recipients to spend at least one percent (1 percent) of
their apportionment on security projects, unless the recipient
certifies the expenditure for security projects has been
addressed through other program funds.
In addition to Urbanized Area Formula grants, FTA Formula
Grants for Rural Areas, FTA State of Good Repair Grants, and
FTA Grants for Buses and Bus Facilities can all be used to
support a range of crime prevention efforts and safety and
security projects. The set aside numbers in the table above
provide the baseline requirements for these transit agencies
receiving Federal assistance, but do not encompass all Federal
investment in transit agency safety expenditures for FY 2022.
Q.7. Within each formula program, if applicable, provide how
much was spent on capital versus operating for security
purposes.
A.7. As noted above, FTA does not directly track agency
expenditures for security purposes, so cannot currently provide
this breakdown of expenditures. However, FTA formula grants
primarily fund capital and planning projects, so most of the
spending for security purposes is in capital investments.
FTA's largest formula program, the Urbanized Area Formula
Grant Program (Section 5307), supports public transportation by
allowing for investment in crime prevention, safety, and
security equipment. This may include projects such as increased
lighting, increased camera surveillance, installation of
telephone lines, and new technologies or intelligent
transportation systems that improve public safety.
In addition, FTA Formula Grants for Rural Areas Program
(Section 5311) provides formula funding to States for areas
with a population of less than 50,000. Section 5311 can fund a
variety of planning, operating, and capital expenses, which can
be used to support the prevention of driver and passenger
assaults on rural public transportation systems.
Q.8. FTA launched the Enhanced Transit Safety and Crime
Prevention Initiative to help transit agencies mitigate crime
that is taking place on their systems. A Request for
Information (RFI) on Transit Safety Culture was posted to the
Federal Register on July 15, 2021, with comments to be
submitted by September 22, 2021.
To date, what has FTA done with the information that was
submitted to the RFI?
Are there any efforts by FTA to issue new guidance,
regulations, or distribute information via a Dear Colleague
using information gathered from the RFI?
A.8. FTA published two related Requests for Information (RFI)
in 2021. The first, published on July 15, 2021, captured
information from the industry on transit safety concerns that
FTA should evaluate for potential action at the Federal level.
The second, published on September 24, 2021, captured
information on safety topics that affect transit workers in two
areas: Rail Transit Roadway Worker Protection (RWP) and transit
worker assault prevention.
FTA has reviewed and categorized all responses to the RFIs
published in 2021. This information has helped inform FTA's
safety risk management (SRM) process and addressed the
prioritization of safety concerns in an SRM Action Plan.
Additionally, information from the two RFIs are informing
rulemaking and policy update activities currently underway,
including (1) a Notice of Proposed Rulemaking (NPRM) effort for
Public Transportation Agency Safety Plans, (2) a proposed
update to FTA's National Public Transportation Safety Plan, (3)
revisions to NTD safety data collection forms and definitions,
(4) additional data analysis related to transit worker assault
risk, and (5) a proposed rulemaking on Rail Transit Roadway
Worker Protection.
Information collected through the RFIs underscored the need
to continue to expand availability of Workforce safety-related
resources and training. FTA partnered with the National Transit
Institute to increase course offerings, and FTA expanded the
availability and promotion of training related to worker
safety, including ``Assault Awareness Prevention for Transit
Operators'' and ``Violence in the Transit Workplace''. FTA has
also increased communication regarding available Federal grant
funding to support rider and employee safety and to address
priorities identified in RFI responses.
Q.9. Public Transportation Agency Safety Plan--The
Infrastructure Investment and Jobs Act includes changes to the
public transportation agency safety plan (PTASP) requirements.
These changes require that, for large public transit agencies,
a Safety Committee be formed consisting of equal numbers of
management and frontline workers, who will be tasked with
approving the PTASP. The Safety Committee will have significant
authority. Moreover, FTA's Urbanized Area Formula Grants are
tied directly to an approved PTASP.
How will FTA ensure that the Safety Committees remain
focused exclusively on safety, and not serve as a forum for
collective bargaining or other issues?
A.9. FTA is preparing to issue a Notice of Proposed Rulemaking
(NPRM) updating the PTASP in response to the new requirements
established in the Bipartisan Infrastructure Law. The NPRM will
address the role of the safety committees. FTA will review
implementation of the PTASP requirements, including the role of
the Safety Committee in approving the Agency Safety Plan,
through its ongoing oversight activities, including Triennial
Reviews and State Management Reviews.
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RESPONSES TO WRITTEN QUESTIONS OF SENATOR SINEMA
FROM NURIA FERNANDEZ
Q.1. 1. What steps has the FTA taken to ensure that rural
transit is improved by the bipartisan infrastructure law and
what resources are available to rural areas looking to improve
their transit systems?
A.1. FTA is committed to improving America's communities
through public transit. The Bipartisan Infrastructure Law
continues the Formula Grants for Rural Areas Program,
increasing its funding approximately 23 percent from $728
million in FY21 to $896 million in FY22. FTA will continue
administering the Formula Grants for Rural Areas Program that
provides capital, planning, and operating assistance to States
and federally recognized Indian tribes to support public
transportation in rural areas with populations less than
50,000, where many residents often rely on transit to reach
their destinations. Five percent of Formula Grants for Rural
Areas funding is available for the Public Transportation on
Indian Reservations Program (approximately $44 million in
FY22).
The Bipartisan Infrastructure Law also provides funding for
State and national training and technical assistance through
the Rural Transportation Assistance Program (RTAP)
(approximately $17 million in FY22). FTA will continue
administering the RTAP which provides a source of funding to
assist in the design and implementation of training and
technical assistance projects and other support services
tailored to meet the needs of transit operators in nonurbanized
areas.
Additionally, the Bipartisan Infrastructure Law requires a
minimum of 15 percent of the amount awarded under the Buses and
Bus Facilities Competitive Program to be awarded to projects
located in rural areas. FTA exceeded that threshold in the most
recently announced FY22 round, providing approximately 23
percent of the funding to rural public transportation
providers.
The Bipartisan Infrastructure Law also established a Ferry
Service for Rural Communities Program (Rural Ferry Program)
that makes approximately $200 million in competitive grants
available annually to States to ensure basic essential ferry
service is provided to rural areas. FTA published a Notice of
Funding Opportunity (NOFO) for the Rural Ferry Program, along
with FTA's two other ferry programs, on July 8, 2022. FTA
conducted informational webinars for potential applicants,
including a webinar focused on the rural ferry program and the
Electric or Low Emitting Ferry Program on July 28, 2022. For
the Buses and Bus Facilities and Low or No Emission grant
programs, FTA conducted an informational webinar for rural and
tribal applicants on March 30, 2022. In FY 2022, FTA awarded
approximately $188M in funding to rural and tribal communities
through the Bus and Bus Facilities and Low or No Emissions
grant programs.
FTA is increasing and enhancing the technical assistance it
provides to rural and tribal transit providers. FTA's regional
offices and technical assistance centers work directly with
rural and tribal transit operators to help them address issues
and improve the efficiency of their transit systems. FTA's
technical assistance centers (TA Centers) also have created the
Transportation Technical Assistance Coordination Library
(TACL), which is an online library that helps rural transit
agencies coordinate among federally funded transit programs and
share resources across agencies to improve transit in their
communities.
FTA and its TA Centers and contractors work directly with
Tribes to ensure they understand FTA's requirements for grant
programs, and to provide targeted technical assistance to
address specific needs of Tribes throughout the country. Along
with these efforts, FTA plans to conduct consultations with
tribal grantees to enhance communication and Government-to-
Government relationships. FTA works with the Office of the
Secretary on the U.S. DOT's Rural Opportunities to Use
Transportation for Economic Success (ROUTES) initiative, which
helps rural communities address their transportation
challenges. Finally, FTA attends industry and tribal
conferences to provide technical assistance to rural and tribal
recipients.