    [House Report 110-727]
    [From the U.S. Government Publishing Office]

    110th Congress                                            Rept. 110-727
                            HOUSE OF REPRESENTATIVES
     2d Session                                                      Part 1

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

            SAVING ENERGY THROUGH PUBLIC TRANSPORTATION ACT OF 2008

                                    _______

                     June 20, 2008.--Ordered to be printed

                                    _______

    Mr. Oberstar, from the Committee on Transportation and Infrastructure,
                            submitted the following

                                  R E P O R T

                            [To accompany H.R. 6052]

          [Including cost estimate of the Congressional Budget Office]

      The Committee on Transportation and Infrastructure, to whom
    was referred the bill (H.R. 6052) to promote increased public
    transportation use, to promote increased use of alternative
    fuels in providing public transportation, and for other
    purposes, having considered the same, report favorably thereon
    without amendment and recommend that the bill do pass.

                           Purpose of the Legislation

        H.R. 6052, the ``Saving Energy Through Public
    Transportation Act of 2008'', promotes increased public
    transportation use and increased use of alternative fuels in
    providing public transportation, and for other purposes.

                      Background and Need for Legislation

        According to the U.S. Department of Energy (``DOE''), the
    transportation sector accounts for 68 percent of the total U.S.
    petroleum consumption, and Americans used almost 14 million
    barrels of oil each day for transportation purposes in 2006.
        In addition, the U.S. Environmental Protection Agency
    (``EPA'') estimates that 27.7 percent of the total greenhouse
    gas emissions produced by the United States come from the
    transportation sector, second only to electricity generation.
    DOE reports that the carbon dioxide emissions from the
    transportation sector grew 25.4 percent between 1990 and 2006,
    an average of 1.4 percent each year. The most recent DOE data
    show that transportation produces more metric tons of energy-
    related carbon dioxide than the residential and commercial
    sectors, and almost as much as the industrial sector. Nearly
    all of these transportation-related emissions come from the use
    of petroleum products.
        In response to these adverse energy and emissions effects
    of transportation, the Federal Government has implemented a
    wide array of initiatives, including support for public transit
    and nonmotorized transportation, alternative fuels research and
    implementation, programs to improve air quality and to reduce
    congestion, and programs to increase the number of Federal
    employees who use public transportation for their commute.
    While these initiatives assist Americans in reducing their
    transportation-related emissions, energy consumption, and
    reliance on foreign oil, improvements to these programs in
    addition to new Federal initiatives are needed in order to move
    the United States toward greater energy independence.
        Increasing public transportation use in America is one of
    the most promising ways to meet our energy and emissions
    reduction goals. As such, the primary objective of H.R. 6052,
    the ``Saving Energy Through Public Transportation Act of
    2008'', is to reduce the United States' dependence on foreign
    oil by encouraging more people to use public transportation. By
    increasing incentives for commuters to choose transit options,
    the Federal Government can strengthen its role in partnering
    with the American public in reducing our transportation-related
    energy consumption and reliance on foreign oil.
        The energy savings and emissions reductions generated by
    public transportation use in the United States are well
    documented. According to two recent studies, the direct
    petroleum savings attributable to current public transportation
    use in the United States is 1.4 billion gallons per year. When
    the secondary effects of transit availability on travel are
    also taken into account, public transportation saves the
    equivalent of 4.2 billion gallons of gasoline annually--more
    than 11 million gallons of gasoline per day. Moreover, if
    Americans used transit at the same rate as Europeans--for
    roughly 10 percent of their daily travel needs--the United
    States could reduce its dependence on imported oil by more than
    40 percent, nearly equal to the 550 million barrels of crude
    oil that we import from Saudi Arabia each year.
        Public transportation use is also estimated to reduce
    carbon dioxide emissions by 37 million metric tons annually.
    When a solo commuter switches from a single occupancy vehicle
    to a transit commute, this single mode shift can reduce carbon
    dioxide emissions by 20 pounds per day--more than 4,800 pounds
    in a year.
        To a great degree, public transportation use is already
    experiencing a renaissance in many American cities and towns.
    In 2007, Americans took over 10.3 billion trips on public
    transportation, the highest level in 50 years. Public
    transportation use is up 32 percent since 1995, a figure that
    is more than double the growth rate of the population and is
    substantially greater than the growth rate of vehicle miles
    traveled on our nation's highways for that same period. Around
    the country, voters continue to approve state and local ballot
    initiatives to support public transportation, even when it
    means local taxes will be raised or continued.
        As the average price of regular gasoline has reached $4 per
    gallon, even more commuters are choosing to ride the train or
    the bus to work rather than drive alone in their cars. Transit
    systems in metropolitan areas are currently reporting increases
    in ridership of five, ten, and even 15 percent over last year's
    figures. In the first quarter of 2008, commuters took more than
    2.6 billion trips on trains, subways, light rail, and buses
    nationwide, an increase of 3.3 percent over the first quarter
    of 2007. Light rail saw the greatest increase in ridership--
    light rail ridership increased 10 percent to 110 million trips
    in the first quarter of 2008. During the same timeframe,
    highway vehicle miles traveled declined by 2.3 percent. In
    Denver, for example, ridership was up eight percent in the
    first three months of 2008 compared with last year, while
    Minneapolis, Seattle, Dallas-Fort Worth and San Francisco all
    reported similar increases.
        Some of the largest increases in transit ridership are
    occurring in many areas in the South and West where new bus and
    light rail lines have been built in recent years. The Charlotte
    Area Transit System, which recently opened a new light rail
    line, has increased ridership more than 34 percent from
    February 2007 to February 2008. Caltrain, the commuter rail
    line that serves the San Francisco Peninsula and the Santa
    Clara Valley, set a record for average weekday ridership in
    February with a 9.3 percent increase over 2007. The South
    Florida Regional Transportation Authority, which operates a
    commuter rail system from Miami to Fort Lauderdale and West
    Palm Beach, posted a rise of more than 20 percent in ridership
    in March and April compared to the same time last year.
        Meeting this impressive demand for public transportation
    services is no small task for local transit agencies. The cost
    of fuel and power for public transportation has sharply
    increased in recent years. In 2005, approximately 911 million
    gallons of fossil fuels and six billion kilowatt-hours of
    electricity were used to move transit vehicles. These figures
    represent an increase of 50 million gallons of fuels and 400
    million kilowatt-hours during only a three-year period.
    Moreover, the slowing economy means less state and local
    funding is available to cover the costs of the increased fuel
    and electricity needed to maintain transit services. Some
    transit agencies are facing service cuts and fare increases as
    a result of the high cost of fuel, which may result in less--
    rather than more--Americans riding transit.
        In addition to increasing transit ridership, increasing the
    amount of alternative fuels and clean technologies that transit
    agencies use in providing public transportation can
    significantly further our energy and emissions reduction goals.
    By switching to non-petroleum-based or cleaner burning fuel,
    transit vehicles can reduce the amount of carbon-based
    pollutants they emit. On average, alternative fuels burn
    cleaner than traditional petroleum fuels, and in some cases
    burn up to 90 percent cleaner. Alternative fuels help reduce
    emissions of carbon monoxide, organic compounds, nitrogen
    oxide, sulfur and particulate matter. Cleaner fuels, along with
    better engineered engines, have helped reduce air pollution
    levels in most urban communities over the past 10 years,
    although widespread use of alternative fuels across all transit
    modes has yet to be achieved. In 2005, only 6.3 percent of
    paratransit vehicles and only 19.1 percent of buses used an
    alternative form of power, compared with 49.6 percent of
    commuter rail cars, 98.8 percent of light rail cars, and 100
    percent of heavy rail and streetcars.
        Currently, the Federal Government provides a Federal share
    of 90 percent for clean fuel and alternative fuel transit bus,
    ferry or locomotive-related equipment or facilities. However,
    given the way in which the Federal Transit Administration
    administers this provision, the average Federal share for these
    types of clean fuel projects is only 83 percent. As such, it is
    important to further increase the Federal share for clean and
    alternative fuel transit projects, thereby assisting transit
    agencies in reducing their transportation-related emissions and
    reliance on foreign oil.
        Another approach to meeting our energy and emissions
    reduction goals is to increase the number of transit commuters
    within the Federal workforce. For more than 20 years, laws have
    been in place to encourage Federal employees to commute by
    means other than single-occupancy vehicles in order to improve
    air quality and reduce congestion. The most commonly used
    program to achieve these goals at the Federal level has been
    the Federal Transit Benefits Program, but current law does not
    require that all Federal agencies implement the program.
    Rather, participation is only required in certain regions and
    by certain agencies, thereby limiting an otherwise successful
    initiative.
        Transit benefits programs create incentives for commuters
    to switch from driving alone to work to taking public
    transportation. These programs have reduced Federal employees'
    contribution to traffic congestion and air pollution and
    expanded their commuting alternatives. The Department of
    Transportation has called for the nationwide expansion of the
    Federal Transit Benefits Program, an action which will provide
    more Federal employees with the option to choose transit for
    their commute, thereby reducing their transportation-related
    energy consumption and reliance on foreign oil.
        As Congress begins to more fully address the negative
    consequences of energy dependence and climate change, the role
    that public transportation plays in lessening our carbon
    footprint should be rightfully recognized. The Federal
    Government should continue to provide incentives for commuters
    to choose transit options, especially those commuters within
    the Federal workforce, and encourage transit agencies to
    increase their use of clean and alternative fuels. Each of
    these initiatives will help increase public transportation use
    nationwide, thereby reducing the United States' transportation-
    related energy consumption and reliance on foreign oil and
    decreasing our greenhouse gas emissions. Providing more
    Americans with the opportunity to choose transit options over
    driving alone is one of the most promising ways to meet our
    energy and emissions reduction goals.
        H.R. 6052 authorizes $1.7 billion in immediate funding to
    increase public transportation use across the United States.
    Transit agencies may use these funds to reduce transit fares or
    expand transit services in order to provide incentives for
    commuters to choose transit options. These funds will allow
    transit agencies to provide incentives for commuters to choose
    transit options, thereby reducing their transportation-related
    energy consumption and reliance on foreign oil, as well as
    decreasing their greenhouse gas emissions.

                           Summary of the Legislation

    Sec. 1. Short title

        This section designates the short title of the Act as the
    ``Energy Savings Through Public Transportation Act of 2008''.

    Sec. 2. Findings

        This section details findings made by Congress regarding
    the ways in which public transportation use helps Americans
    reduce their transportation-related energy consumption and
    reliance on foreign oil, as well as decrease their greenhouse
    gas emissions.

    Sec. 3. Grants to improve public transportation services

        This section authorizes $1.7 billion in immediate funding
    to increase public transportation use across the United States.
    Transit agencies may use these funds to reduce transit fares or
    expand transit services in order to provide incentives for
    commuters to choose transit options. This section provides $850
    million for each of fiscal years 2008 and 2009 for these
    grants. The funds are distributed by the urbanized area formula
    (section 5307) and the rural formula (section 5311) of title
    49, United States Code. The funds are available to expand
    transit services and reduce transit fares. The funds are
    available for two years and have a 100 percent Federal share.
        These funds will allow transit agencies to provide
    incentives for commuters to choose transit options, thereby
    reducing their transportation-related energy consumption and
    reliance on foreign oil, as well as decreasing their greenhouse
    gas emissions.

    Sec. 4. Increased Federal share for clean air act compliance

        This section increases the Federal share for clean fuel and
    alternative fuel transit bus, ferry or locomotive-related
    equipment or facilities from 90 percent to 100 percent of the
    net project cost for fiscal years 2008 and 2009, unless the
    grant recipient requests a lower grant percentage.
        The increased Federal share creates incentives for transit
    agencies to purchase alternative fuel transit equipment.

    Sec. 5. Federal agency transit benefits

        This section establishes a nationwide Federal transit pass
    benefits program and requires all Federal agencies in the
    United States to offer transit passes to Federal employees
    working in urbanized areas with fixed route transit systems. It
    also requires that specific guidelines be followed in
    implementing the nationwide program to avoid the possibility of
    fraud and abuse.
        Section 3049 of P.L. 109-59, the ``Safe, Accountable,
    Flexible, Efficient Transportation Equity Act: A Legacy for
    Users'', currently requires that all Federal agencies within
    the National Capital Region implement a transit pass fringe
    benefits program and offer employees transit passes. This
    requirement originated from Executive Order 13150, signed by
    President Clinton on April 21, 2000. The Executive Order also
    required the Department of Transportation, the Environmental
    Protection Agency, and the Department of Energy to implement a
    nationwide three-year pilot transit pass benefit program for
    all qualified Federal employees of those agencies.
        The Department of Transportation (``DOT'') has determined
    that both the National Capital Region program and the
    nationwide pilot program are a success, and recommends that the
    transit pass benefits program be extended to all Federal
    employees nationwide.
        Data from the Washington Metropolitan Area Transportation
    Authority covering the first three years of the National
    Capital Region transit pass program show that more than 15,500
    automobiles were eliminated from roads in the Washington, D.C.,
    area as a result of Federal employees shifting their travel
    mode away from single occupancy vehicle (``SOV'') use to public
    transportation use for commuting to work. The Department of
    Transportation estimated that emissions and energy savings from
    this mode shift included the reduction of more than eight
    million gallons of gasoline, nearly 40,000 tons of carbon
    dioxide, and over 675 tons of carbon monoxide for each of the
    three years that they studied. DOT also studied the results of
    the nationwide pilot and found that, within the three covered
    agencies, 11 percent of the participants shifted their travel
    mode away from SOV use to public transportation use for
    commuting to work, again producing marked energy and emissions
    savings, reduced congestion and cleaner air.
        This program will allow Federal agencies nationwide to
    provide incentives for commuters to choose transit options,
    thereby reducing their transportation-related energy
    consumption and reliance on foreign oil, as well as decreasing
    their greenhouse gas emissions.

        FULL-TIME FEDERAL EMPLOYMENT IN 27 METROPOLITAN STATISTICAL AREAS
    ------------------------------------------------------------------------
                                                           Number of Federal
                      Metropolitan area                        employees
    ------------------------------------------------------------------------
    Washington-Baltimore, DC-MD-VA-WV....................            312,854
    New York-Northern New Jersey-Long Island.............             65,083
    Los Angeles-Riverside-Orange County, CA..............             46,432
    Philadelphia-Wilmington-Atlantic City, PA............             39,242
    Norfolk-Virginia Beach-Newport News, VA..............             38,630
    Seattle-Tacoma-Bremerton, WA.........................             34,432
    Atlanta, GA..........................................             31,798
    San Diego, CA........................................             29,212
    Boston-Worcester-Lawrence, MA-NH-ME-CT...............             29,015
    Chicago-Gary-Kenosha, IL-IN-WI.......................             28,687
    San Francisco-Oakland-San Jose, CA...................             27,652
    Dallas-Fort Worth, TX................................             24,411
    Salt Lake City-Ogden, UT.............................             23,088
    Oklahoma City, OK....................................             22,144
    Denver-Boulder-Greeley, CO...........................             21,240
    Kansas City, MO-KS...................................             19,868
    San Antonio, TX......................................             19,572
    Honolulu, HI.........................................             19,509
    Miami-Fort Lauderdale, FL............................             15,787
    Detroit-Ann Arbor-Flint, MI..........................             15,531
    Houston-Galveston-Brazoria, TX.......................             14,353
    Portland-Salem, OR-WA................................             12,442
    Cleveland-Akron-Lorain, OH...........................             11,077
    Cincinnati-Hamilton, OH-KY-IN........................             10,709
    San Juan-Caguas-Arecibo, PR..........................              8,967
    Sacramento-Yolo, CA..................................              7,033
    Milwaukee-Racine, WI.................................              4,855
        Total............................................            933,623
    ------------------------------------------------------------------------
    ------------------------------------------------------------------------
    Source: U.S. Office of Personnel Management, March 31, 2004

    Sec. 6. Capital cost of contracting vanpool pilot program

        This provision creates a pilot program to allow the amount
    expended by private providers of public transportation by
    vanpool for the acquisition of vans to be used as the non-
    Federal share for matching Federal transit funds in five
    communities. Under current law, only local public funds may be
    used as local match, and this pilot program allows private
    funds to be used in limited circumstances. This section
    requires the private providers of vanpool services to use
    revenues they receive in providing public transportation, in
    excess of its operating costs, for the purpose of acquiring
    vans, excluding any amounts the providers may have received in
    Federal, state, or local government assistance for such
    acquisition. The Department of Transportation will implement
    and oversee the vanpool pilot projects, and will report to
    Congress on the costs, benefits, and efficiencies of the
    vanpool projects.
        This program will encourage expanded partnering of local
    communities with private vanpool providers to provide commuters
    with additional transit options, thereby reducing their
    transportation-related energy consumption and reliance on
    foreign oil, as well as decreasing their greenhouse gas
    emissions.

    Sec. 7. Increased Federal share for end-of-line fixed guideway stations

        This provision increases the Federal share for right-of-way
    acquisition, design, engineering, and construction of
    additional parking facilities at end-of-line fixed guideway
    stations from 80 percent to 100 percent of the net project cost
    for fiscal years 2008 and 2009, unless the grant recipient
    requests a lower grant percentage. Suburban commuters are more
    likely to use transit options, such as commuter rail or heavy
    rail, if there is adequate parking at the station.
        This provision will increase the total number of transit
    commuters who have access to transit facilities, thereby
    reducing their transportation-related energy consumption and
    reliance on foreign oil, as well as decreasing their greenhouse
    gas emissions.

                Legislative History and Committee Consideration

        On June 20, 2007, the Committee on Transportation and
    Infrastructure ordered reported H.R. 2701, the ``Transportation
    Energy Security and Climate Change Mitigation Act of 2007,''
    favorably to the House. Section 201 and section 202 of H.R.
    2701 are the basis for sections 3 and 4 of H.R. 6052. H.R.
    2701, as ordered reported was incorporated into H.R. 3221, the
    ``New Direction for Energy Independence, National Security, and
    Consumer Protection Act.'' See sections 8201 and 8202 of H.R.
    3221. Section 6 of this bill was adopted as an amendment to
    H.R. 3221 during Floor consideration of the bill. On August 4,
    2007, the House passed H.R. 3221 by a recorded vote of 241-172.
    However, these provisions were not included in the final
    version of P.L. 110-140, the ``Energy Independence and Security
    Act of 2007.''
        On May 14, 2008, Chairman James L. Oberstar introduced H.R.
    6052, the ``Saving Energy Through Public Transportation Act of
    2008.''
        On May 15, 2008, the Committee on Transportation and
    Infrastructure met to consider H.R. 6052, and ordered the bill
    reported favorably to the House by voice vote with a quorum
    present.

                                  Record Votes

        Clause 3(b) of rule XIII of the House of Representatives
    requires each committee report to include the total number of
    votes cast for and against on each record vote on a motion to
    report and on any amendment offered to the measure or matter,
    and the names of those members voting for and against. There
    were no recorded votes taken in connection with consideration
    of H.R. 6052 or ordering it reported. A motion to order H.R.
    6052 reported favorably to the House was agreed to by voice
    vote with a quorum present.

                          Committee Oversight Findings

        With respect to the requirements of clause 3(c)(1) of rule
    XIII of the Rules of the House of Representatives, the
    Committee's oversight findings and recommendations are
    reflected in this report.

                              Cost of Legislation

        Clause 3(c)(2) of rule XIII of the Rules of the House of
    Representatives does not apply where a cost estimate and
    comparison prepared by the Director of the Congressional Budget
    Office under section 402 of the Congressional Budget Act of
    1974 has been timely submitted prior to the filing of the
    report and is included in the report. Such a cost estimate is
    included in this report.

                        Compliance With House Rule XIII

        1. With respect to the requirement of clause 3(c)(2) of
    rule XIII of the Rules of the House of Representatives, and
    308(a) of the Congressional Budget Act of 1974, the Committee
    references the report of the Congressional Budget Office
    included in the report.
        2. With respect to the requirement of clause 3(c)(4) of
    rule XIII of the Rules of the House of Representatives, the
    performance goals and objectives of this legislation are to
    promote increased public transportation use and increased use
    of alternative fuels in providing public transportation.
        3. With respect to the requirement of clause 3(c)(3) of
    rule XIII of the Rules of the House of Representatives and
    section 402 of the Congressional Budget Act of 1974, the
    Committee has received the enclosed cost estimate for H.R. 6052
    from the Director of the Congressional Budget Office:

                                         U.S. Congress,
                                   Congressional Budget Office,
                                         Washington, DC, June 13, 2008.
    Hon. James L. Oberstar, Chairman,
    Committee on Transportation, and Infrastructure,
    House of Representatives, Washington, DC.
        Dear Mr. Chairman: The Congressional Budget Office has
    prepared the enclosed cost estimate for H.R. 6052, the Saving
    Energy Through Public Transportation Act of 2008.
        If you wish further details on this estimate, we will be
    pleased to provide them. The CBO staff contact is Sarah Puro.
                Sincerely,
                                             Robert A. Sunshine
                                       (For Peter R. Orszag, Director).
        Enclosure.

    H.R. 6052--Saving Energy Through Public Transportation Act of 2008

        Summary: H.R. 6052 would authorize the appropriation of
    $850 million in 2009 for grants to public transportation
    authorities to reduce fares or expand services. The bill also
    would require all federal agencies in areas that meet certain
    criteria to offer their employees subsidies to take public
    transportation; however, almost all agencies currently offer
    such a benefit. CBO estimates that providing additional transit
    subsidies under this provision would cost about $5 million a
    year.
        CBO estimates that implementing H.R. 6052 would cost $806
    million over the 2009-2013 period, assuming the appropriation
    of the necessary funds. The legislation could also affect
    direct spending by agencies not funded through annual
    appropriations (such as the Tennessee Valley Authority). CBO
    estimates, however, that any net increase in spending by those
    agencies would not be significant.
        The bill contains no intergovernmental or private-sector
    mandates as defined in the Unfunded Mandates Reform Act (UMRA)
    and would impose no costs on state, local, or tribal
    governments.
        Estimated cost to the Federal Government: The estimated
    budgetary impact of H.R. 6052 is shown in the following table.
    The costs of this legislation fall within budget function 400
    (transportation).

    ----------------------------------------------------------------------------------------------------------------
                                                                    By fiscal year, in millions of dollars
                                                         -----------------------------------------------------------
                                                                                                              2009-
                                                            2009      2010      2011      2012      2013      2013
    ----------------------------------------------------------------------------------------------------------------
                                      CHANGES IN SPENDING SUBJECT TO APPROPRIATION

    Public Transportation Grants:
        Authorization Level.............................       850         0         0         0         0       850
        Estimated Outlays...............................       128       255       170       128       102       782
    Transit Benefits for Federal Employees:
        Estimated Authorization Level...................         5         5         5         5         5        25
        Estimated Outlays...............................         4         5         5         5         5        24
    Total Changes:
        Estimated Authorization Level...................       855         5         5         5         5       875
        Estimated Outlays...............................       132       260       175       132       107       806
    ----------------------------------------------------------------------------------------------------------------
    Note: Components may not sum to totals because of rounding.

        Basis of estimate: For this estimate, CBO assumes that H.R.
    6052 will be enacted near the start of fiscal year 2009 and
    that the authorized and necessary amounts will be appropriated
    each year beginning in fiscal year 2009. (H.R. 6052 also would
    authorize the appropriation of $850 million in 2008 for grants
    to public transportation authorities; however, those amounts
    are not included in this cost estimate because CBO assumes that
    no further appropriations will be provided in 2008 for such
    programs.) Estimates of spending are based on historical
    spending patterns of existing programs.

    Public transportation grants

        H.R. 6052 would direct the Department of Transportation to
    administer grants that would aid public transportation
    authorities to either reduce fares or to expand services, and
    it would authorize the appropriation of $850 million for fiscal
    year 2009. That amount includes $750 million for such programs
    in urban areas with populations over 50,000 and $100 million
    for areas with populations under 50,000. Based on spending
    patterns for similar programs, CBO estimates that implementing
    those grant programs would cost $782 million over the 2009-2013
    period.

    Transit benefits for Federal employees

        H.R. 6052 would require all federal agencies with employees
    in urbanized areas served by public transportation systems that
    operate on fixed routes to offer their employees passes to be
    used on such transportation so that they may commute to work.
    About 40 metropolitan statistical areas have such
    transportation systems. Under current law, all employees in the
    National Capital Area are offered such a benefit, and about 35
    percent of such employees currently take the benefit.
        Although not required by current law, according to the
    Department of Transportation, the Department of Health and
    Human Services, and the Environmental Protection Agency, almost
    all agencies with employees in urban areas outside of the
    National Capital Area offer their employees a subsidy to take
    public transportation as would be required by the provisions in
    H.R. 6052. Because most employees are already eligible for a
    subsidy, CBO estimates that no more than 5,000 additional
    employees would receive the subsidy under the bill. Nationwide,
    the average amount that employees receive for the transit
    benefit is a nearly $90 per month. Thus, CBO estimates that
    implementing this provision would cost about $5 million
    annually over the 2009-2013 period, assuming the availability
    of appropriated funds.
        Intergovernmental and private-sector impact: H.R. 6052
    contains no intergovernmental or private-sector mandates as
    defined in UMRA. The bill would benefit state, local, and
    tribal governments by authorizing grants for transportation
    projects.
        Previous CBO estimate: On July 18, 2007, CBO provided an
    estimate for H.R. 2701, the Transportation Energy Security
    Climate Change Mitigation Act of 2007, as ordered reported by
    the House Committee on Transportation and Infrastructure on
    June 20, 2007. That bill would also authorize grants to public
    transportation authorities to either reduce fares or to expand
    service. Because CBO now assumes that no further appropriations
    will be provided in 2008 for public transportation programs,
    the estimate for H.R. 2701 included more spending than our
    estimate for H.R. 6052. H.R. 2701 would not authorize transit
    benefits for additional federal employees, but it contains
    several other provisions with significant costs that are not
    contained in H.R. 6052. Neither bill contains intergovernmental
    or private-sector mandates.
        Estimate prepared by: Federal costs: Sarah Puro; Impact on
    state, local, and tribal governments: Elizabeth Cove; Impact on
    the private sector: Jacob Kuipers.
        Estimate approved by: Peter H. Fontaine, Assistant Director
    for Budget Analysis.

                         Compliance With House Rule XXI

        Pursuant to clause 9 of rule XXI of the Rules of the House
    of Representatives, H.R. 6052, does not contain any
    congressional earmarks, limited tax benefits, or limited tariff
    benefits as defined in clause 9(d), 9(e), or 9(f) of rule XXI
    of the Rules of the House of Representatives.

                       Constitutional Authority Statement

        Pursuant to clause (3)(d)(1) of rule XIII of the Rules of
    the House of Representatives, committee reports on a bill or
    joint resolution of a public character shall include a
    statement citing the specific powers granted to the Congress in
    the Constitution to enact the measure. The Committee on
    Transportation and Infrastructure finds that Congress has the
    authority to enact this measure pursuant to its powers granted
    under article I, section 8 of the Constitution.

                           Federal Mandates Statement

        The Committee adopts as its own the estimate of Federal
    mandates prepared by the Director of the Congressional Budget
    Office pursuant to section 423 of the Unfunded Mandates Reform
    Act (Public Law 104-4).

                            Preemption Clarification

        Section 423 of the Congressional Budget Act of 1974
    requires the report of any Committee on a bill or joint
    resolution to include a statement on the extent to which the
    bill or joint resolution is intended to preempt state, local,
    or tribal law. The Committee states that H.R. 6052 does not
    preempt any state, local, or tribal law.

                          Advisory Committee Statement

        No advisory committees within the meaning of section 5(b)
    of the Federal Advisory Committee Act are created by this
    legislation.

                    Applicability to the Legislative Branch

        Section 102(b)(3) of the Congressional Accountability Act
    (Public Law 104-1) requires the report of any Committee on a
    bill or joint resolution relating to terms and conditions of
    employment or access to public services or accommodations to
    describe the manner in which the bill or joint resolution
    applies to the legislative branch.
        Section 5 of H.R. 6052 establishes a nationwide Federal
    transit pass benefits program and requires all Federal agencies
    in the United States to offer transit passes to Federal
    employees working in urbanized areas with fixed route transit
    systems. It also requires that specific guidelines be followed
    in implementing the nationwide program to avoid the possibility
    of fraud and abuse.
        Pursuant to section 3049 of P.L. 109-59, the ``Safe,
    Accountable, Flexible, Efficient Transportation Equity Act: A
    Legacy for Users'', current law requires all Federal agencies
    within the National Capital Region to implement a transit pass
    fringe benefits program and offer employees transit passes. The
    legislative branch is considered an agency for purposes of this
    requirement. Pursuant to 5 U.S.C. 7905, the term ``agency''
    includes an entity of the legislative branch. An ``entity of
    the legislative branch'' means the House of Representatives,
    the Senate, the Office of the Architect of the Capitol
    (including the Botanic Garden), the Capitol Police, the
    Congressional Budget Office, the Copyright Royalty Tribunal,
    the Government Printing Office, and the Library of Congress.
    Therefore, under current law, the legislative branch is
    required to offer transit passes to employees in the National
    Capital Region. In addition, a legislative branch employee
    applying for the benefit must certify that the employee is
    eligible for the benefit, will use the benefit for his or her
    regular daily commute, will not transfer the benefit, and that
    the amount that the employee receives does not exceed the
    employee's average monthly commuting cost.
        Section 5 of H.R. 6052 extends this requirement to all
    legislative branch employees working in urbanized areas with
    fixed route transit systems. The Committee understands that
    transit pass benefits are currently widely available to
    legislative branch employees.

             Changes in Existing Law Made by the Bill, as Reported

      In compliance with clause 3(e) of rule XIII of the Rules of
    the House of Representatives, changes in existing law made by
    the bill, as reported, are shown as follows (existing law
    proposed to be omitted is enclosed in black brackets, new
    matter is printed in italic, existing law in which no change is
    proposed is shown in roman):

          SECTION 3049 OF THE SAFE, ACCOUNTABLE, FLEXIBLE, EFFICIENT
                 TRANSPORTATION EQUITY ACT: A LEGACY FOR USERS

    SEC. 3049. TRANSPORTATION FRINGE BENEFITS.

      (a) Transit Pass Transportation Fringe Benefits.--
              (1) In general.--[Effective as of the first day of
            the next fiscal year beginning after the date of the
            enactment of this Act, each covered agency] Each agency
            shall implement a program under which all qualified
            Federal employees serving in or under such agency at a
            location in an urbanized area of the United States that
            is served by fixed route public transportation shall be
            offered transit pass transportation fringe benefits, as
            described in paragraph (2).

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              (3) Definitions.--In this subsection--
                      [(A) the term ``covered agency'' means any
                    agency, to the extent of its facilities in the
                    National Capital Region;]
                      [(B)] (A) the term ``agency'' means any
                    agency (as defined by 7905(a)(2) of title 5,
                    United States Code), the Postal Rate
                    Commission, and the Smithsonian Institution;
                      [(C)] (B) the term ``National Capital
                    Region'' includes the District of Columbia and
                    every county or other geographic area covered
                    by section 2 of Executive Order No. 13150;
                      [(D)] (C) the term ``Executive Order No.
                    13150'' refers to Executive Order No. 13150 (5
                    U.S.C. 7905 note);
                      [(E)] (D) the term ``Federal agency'' is used
                    in the same way as under section 2 of Executive
                    Order No. 13150; and
                      [(F)] (E) any determination as to whether or
                    not one is a ``qualified Federal employee''
                    shall be made applying the same criteria as
                    would apply under section 2 of Executive Order
                    No. 13150.
              (4) Rule of construction.--Nothing in this subsection
            shall be considered to require that [a covered agency]
            an agency--
                      (A) * * *

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              (5) Guidance.--
                      (A) Issuance.--Not later than 60 days after
                    the date of enactment of this paragraph, the
                    Secretary of Transportation shall issue
                    guidance on nationwide implementation of the
                    transit pass transportation fringe benefits
                    program under this subsection.
                      (B) Uniform application.--
                              (i) In general.--The guidance to be
                            issued under subparagraph (A) shall
                            contain a uniform application for use
                            by all Federal employees applying for
                            benefits from an agency under the
                            program.
                              (ii) Required information.--As part
                            of such an application, an employee
                            shall provide, at a minimum, the
                            employee's home and work addresses, a
                            breakdown of the employee's commuting
                            costs, and a certification of the
                            employee's eligibility for benefits
                            under the program.
                              (iii) Warning against false
                            statements.--Such an application shall
                            contain a warning against making false
                            statements in the application.
                      (C) Independent verification requirements.--
                    The guidance to be issued under subparagraph
                    (A) shall contain independent verification
                    requirements to ensure that, with respect to an
                    employee of an agency--
                              (i) the eligibility of the employee
                            for benefits under the program is
                            verified by an official of the agency;
                              (ii) employee commuting costs are
                            verified by an official of the agency;
                            and
                              (iii) records of the agency are
                            checked to ensure that the employee is
                            not receiving parking benefits from the
                            agency.
                      (D) Program implementation requirements.--The
                    guidance to be issued under subparagraph (A)
                    shall contain program implementation
                    requirements applicable to each agency to
                    ensure that--
                              (i) benefits provided by the agency
                            under the program are adjusted in cases
                            of employee travel, leave, or change of
                            address;
                              (ii) removal from the program is
                            included in the procedures of the
                            agency relating to an employee
                            separating from employment with the
                            agency; and
                              (iii) benefits provided by the agency
                            under the program are made available
                            using an electronic format (rather than
                            using paper fare media) where such a
                            format is available for use.
                      (E) Enforcement and penalties.--The guidance
                    to be issued under subparagraph (A) shall
                    contain a uniform administrative policy on
                    enforcement and penalties. Such policy shall be
                    implemented by each agency to ensure compliance
                    with program requirements, to prevent fraud and
                    abuse, and, as appropriate, to penalize
                    employees who have abused or misused the
                    benefits provided under the program.
                      (F) Periodic reviews.--The guidance to be
                    issued under subparagraph (A) shall require
                    each agency, not later than September 1 of the
                    first fiscal year beginning after the date of
                    enactment of this paragraph, and every 3 years
                    thereafter, to develop and submit to the
                    Secretary a review of the agency's
                    implementation of the program. Each such review
                    shall contain, at a minimum, the following:
                              (i) An assessment of the agency's
                            implementation of the guidance,
                            including a summary of the audits and
                            investigations, if any, of the program
                            conducted by the Inspector General of
                            the agency.
                              (ii) Information on the total number
                            of employees of the agency that are
                            participating in the program.
                              (iii) Information on the total number
                            of single occupancy vehicles removed
                            from the roadway network as a result of
                            participation by employees of the
                            agency in the program.
                              (iv) Information on energy savings
                            and emissions reductions, including
                            reductions in greenhouse gas emissions,
                            resulting from reductions in single
                            occupancy vehicle use by employees of
                            the agency that are participating in
                            the program.
                              (v) Information on reduced congestion
                            and improved air quality resulting from
                            reductions in single occupancy vehicle
                            use by employees of the agency that are
                            participating in the program.
                              (vi) Recommendations to increase
                            program participation and thereby
                            reduce single occupancy vehicle use by
                            Federal employees nationwide.
              (6) Reporting requirements.--Not later than September
            30 of the first fiscal year beginning after the date of
            enactment of this paragraph, and every 3 years
            thereafter, the Secretary shall submit to the Committee
            on Transportation and Infrastructure and the Committee
            on Oversight and Government Reform of the House of
            Representatives and the Committee on Banking, Housing,
            and Urban Affairs of the Senate a report on nationwide
            implementation of the transit pass transportation
            fringe benefits program under this subsection,
            including a summary of the information submitted by
            agencies pursuant to paragraph (5)(F).

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