29–006 

108TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 108–673 

TRANSIT PASS TRANSPORTATION FRINGE BENEFITS FOR 

FEDERAL EMPLOYEES 

SEPTEMBER 9, 2004.—Committed to the Committee of the Whole House on the State 

of the Union and ordered to be printed 

Mr. TOM DAVIS of Virginia, from the Committee on Government 

Reform, submitted the following 

R E P O R T 

[To accompany H.R. 1151] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Government Reform, to whom was referred 

the bill (H.R. 1151) to provide that transit pass transportation 

fringe benefits be made available to all qualified Federal employees 

in the National Capital Region; to allow passenger carriers which 

are owned or leased by the Government to be used to transport 

Government employees between their place of employment and 

mass transit facilities, and for other purposes, having considered 

the same, report favorably thereon without amendment and recommend that the bill do pass. 

CONTENTS 

Page 

Committee Statement and Views ........................................................................... 2 

Section-by-Section .................................................................................................... 2 

Explanation of Amendments ................................................................................... 3 

Committee Consideration ........................................................................................ 3 

Rollcall Votes ............................................................................................................ 3 

Application of Law to the Legislative Branch ....................................................... 3 

Statement of Oversight Findings and Recommendations of the Committee ...... 3 

Statement of General Performance Goals and Objectives .................................... 3 

Constitutional Authority Statement ...................................................................... 3 

Unfunded Mandate Statement ............................................................................... 4 

Committee Estimate ................................................................................................ 4 

Budget Authority and Congressional Budget Office Cost Estimate .................... 4 

Changes in Existing Law Made by the Bill as Reported ...................................... 6 

2 

COMMITTEE STATEMENT AND VIEWS

PURPOSE AND SUMMARY

H.R. 1151 seeks to ensure that transit pass transportation fringe 

benefits be made available to all qualified Federal employees in the 

National Capital Region and to allow passenger carriers which are 

owned or leased by the Government to be used to transport Government employees between their place of employment and mass 

transit facilities. 

BACKGROUND AND NEED FOR LEGISLATION

The National Capital Region (NCR) has many buildings that 

house the executive, legislative, and judicial branches of the government, and is home to over 330,000 federal employees. The 

Washington region has grown exponentially in recent years, and is 

currently the second most congested in the nation behind Los Angeles. As the region’s largest employer, the federal government has 

a responsibility to its employees to expand commuting alternatives, 

and to the region to reduce federal employees’ contribution to traffic congestion and air pollution. 

In 2000, Executive Order 13150 required all Executive Branch 

agencies in the National Capital Region to offer transit benefits to 

their employees. According to the Washington Metropolitan Area 

Transit Authority (WMATA) and the U.S. Department of Transportation, nearly one-third of all federal employees in the NCR have 

joined the federal transit benefit program. H.R. 1151 seeks to codify and expand this program to ensure the choice for all federal employees in the NCR. 

LEGISLATIVE HISTORY

H.R. 1151 was introduced by Representative James Moran on 

March 6, 2003. The Subcommittee on Civil Service and Agency Organization reported the bill to the full committee on July 16, 2003. 

On September 25, 2003, the Committee met in open session, and 

by voice vote, ordered the bill favorably reported to the House of 

Representatives. 

SECTION-BY-SECTION

Section 1. Transit pass transportation fringe benefits 

Section 1 directs all executive branch agencies, including those 

not originally covered under Executive Order 13150, as well as the 

legislative and judicial branches, all independent federal agencies, 

the U.S. Postal Service and the Smithsonian Institution not originally covered by the executive order, to provide transit pass transportation fringe benefits in the amount equal to commuting costs 

and subject to the statutory maximum allowed under Title 26, 

United States Code, to qualified employees using qualified transit 

facilities in the National Capital Region. 

Section 2. Authority to use government vehicles to transport federal 

employees between their place of employment and transit facilities 

Section 2 amends Section 1344 of Title 31 to authorize federal 

agencies to use, from funds already made available, governmentVerDate Aug 04 2004 05:42 Sep 11, 2004 Jkt 029006 PO 00000 Frm 00002 Fmt 6659 Sfmt 6602 E:\HR\OC\HR673.XXX HR673
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owned or leased passenger carriers to transport employees between 

public transportation centers and their place of employment. The 

section authorizes the use of funds for the maintenance and repair 

of such vehicles. 

Section 2 would also require agencies to use alternative fuel vehicles when possible and coordinate with other agencies to avoid duplication. 

EXPLANATION OF AMENDMENTS

The Committee did not adopt any amendments. 

COMMITTEE CONSIDERATION

On September 25, 2003, the Committee met in open session, and 

by voice vote, ordered reported favorably the bill, H.R. 1151. 

ROLLCALL VOTES

No rollcall votes were held. 

APPLICATION OF LAW TO THE LEGISLATIVE BRANCH

Section 102(b)(3) of Public Law 104–1 requires a description of 

the application of this bill to the legislative branch where the bill 

relates to the terms and conditions of employment or access to public services and accommodations. This bill seeks to ensure that 

transit pass transportation fringe benefits be made available to all 

qualified Federal employees in the National Capital Region and to 

allow passenger carriers which are owned or leased by the Government to be used to transport Government employees between their 

place of employment and mass transit facilities. Legislative branch 

employees in the National Capital Region have equal access to the 

benefits of this bill. 

STATEMENT OF OVERSIGHT FINDINGS AND RECOMMENDATIONS OF

THE COMMITTEE

In compliance with clause 3(c)(1) of rule XIII and clause (2)(b)(1) 

of rule X of the Rules of the House of Representatives, the Committee’s oversight findings and recommendations are reflected in the 

descriptive portions of this report. 

STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

In accordance with clause 3(c)(4) of rule XIII of the Rules of the 

House of Representatives, the Committee’s performance goals and 

objectives are reflected in the descriptive portions of this report. 

CONSTITUTIONAL AUTHORITY STATEMENT

Under clause 3(d)(1) of rule XIII of the Rules of the House of 

Representatives, the Committee must include a statement citing 

the specific powers granted to Congress to enact the law proposed 

by H.R. 1151. Article I, Section 8, Clause 18 of the Constitution of 

the United States provide Congress the power to enact this law. 

4 

UNFUNDED MANDATE STATEMENT

Section 423 of the Congressional Budget and Impoundment Control Act (as amended by Section 101(a)(2) of the Unfunded Mandate 

Reform Act, P.L. 104–4) requires a statement whether the provisions of the reported include unfunded mandates. In compliance 

with this requirement the Committee has received a letter from the 

Congressional Budget Office included herein. 

COMMITTEE ESTIMATE

Clause 3(d)(2) of rule XIII of the Rules of the House of Representatives requires an estimate and a comparison by the Committee of the costs that would be incurred in carrying out H.R. 

1231. However, clause 3(d)(3)(B) of that rule provides that this requirement does not apply when the Committee has included in its 

report a timely submitted cost estimate of the bill prepared by the 

Director of the Congressional Budget Office under section 402 of 

the Congressional Budget Act. 

BUDGET AUTHORITY AND CONGRESSIONAL BUDGET OFFICE COST

ESTIMATE

With respect to the requirements of clause 3(c)(2) of rule XIII of 

the Rules of the House of Representatives and section 308(a) of the 

Congressional Budget Act of 1974 and with respect to requirements 

of clause (3)(c)(3) of rule XIII of the Rules of the House of Representatives and section 402 of the Congressional Budget Act of 

1974, the Committee has received the following cost estimate for 

H.R. 1231 from the Director of Congressional Budget Office: 

H.R. 1151—A bill to provide that transit pass transportation fringe 

benefits be made available to all qualified federal employees in 

the National Capital Region; to allow passenger carriers which 

are owned or leased by the government to be used to transport 

government employees between their place of employment and 

mass transit facilities, and for other purposes 

Summary: H.R. 1151 would codify and expand Executive Order 

13150 to provide a tax-free transportation benefit to federal employees in the National Capital Region, beginning in fiscal year 

2005. Issued in April 2000, Executive Order 13150 directed all executive branch agencies to provide employees in the National Capital Region who use public transportation to commute to work with 

free transit passes (known as METROcheks) with a value equal to 

actual commuting costs but not more than $100 per month. H.R. 

1151 would expand this program to include employees with the legislative and judicial branches, the Smithsonian Institution, and the 

U.S. Postal Service. In addition, the legislation would allow federal 

agencies to extend existing transit services to take employees between work sites and public transportation centers. 

CBO estimates that expanding the transportation benefit program to postal employees in the National Capital Region would increase direct spending by the U.S. Postal Service by about $12 million over the 2005–2006 period. (Postal Service spending is classified as off-budget.) CBO estimates that extending the program to 

other federal employees in the region would cost $3 million annually, beginning in fiscal year 2005, subject to the availability of apVerDate Aug 04 2004 05:42 Sep 11, 2004 Jkt 029006 PO 00000 Frm 00004 Fmt 6659 Sfmt 6602 E:\HR\OC\HR673.XXX HR673
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propriated funds. This legislation would codify existing agency 

practices and policies; therefore, this estimate excludes executive, 

legislative, and judicial branch employees who can currently participate in the transportation benefit program. 

H.R. 1151 contains no intergovernmental or private-sector mandates as defined by the Unfunded Mandates Reform Act (UMRA), 

and CBO estimates that the bill would have no significant impact 

on state, local, or tribal governments. 

Estimated cost to the Federal Government: The estimated budgetary impact of S. 606 is shown in the following table. The costs 

of this legislation fall within budget functions 372 (postal service), 

500 (education, training, employment, and social services) and 800 

(general government). 

By fiscal year, in millions of dollars— 

2004 2005 2006 2007 2008 

CHANGES IN DIRECT SPENDING 

Off-Budget Effects—Postal Service: 

Estimated Budget Authority ....................................................... 0 6 6 0 0 

Estimated Outlays ...................................................................... 0 6 6 0 0 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 

Commuting Benefit for Nonpostal Federal Employees: 

Estimated Budget Authority ....................................................... 0 3 3 3 3 

Estimated Outlays ...................................................................... 0 3 3 3 3 

Basis of estimate: For this estimate, CBO assumes that the legislation will be enacted by the start of fiscal year 2005, that the necessary amounts will be appropriated for each fiscal year, and that 

outlays will occur at historical patterns for similar programs. 

Direct spending 

According to the Washington Metropolitan Area Transportation 

Authority (WMATA) and the Department of Transportation, the average annual benefit provided to federal employees in the National 

Capital Region is $1,080. CBO estimates that 25 percent of the 

22,000 Postal Service employees in the National Capital Region 

would apply for the new benefit. That estimate is based on information by WMATA, which expects that Postal Service employees 

would use transportation benefits much less than other local federal employees because of their decentralized locations and varying 

office hours. About 40 percent of federal workers in the region currently use this transportation benefit. CBO estimates that enacting 

this legislation would cost the Postal Service about $6 million in 

each of the years 2005 and 2006. Beginning in fiscal year 2007, 

there would be no net cost from the provision because the Postal 

Service is required to set rates to cover its costs, and CBO expects 

that the next rate increase will occur in 2006. At that time, it is 

possible that the Postal Service would also seek to recover prior unanticipated costs and that this provision could have no net cost 

over several years. 

Spending subject to appropriation 

Transit Pass Transportation Fringe Benefits. To estimate the 

bill’s impact on nonpostal federal employees in the region, CBO reviewed the experiences of offices within the three branches of government that already provide transit benefits and estimates proVerDate Aug 04 2004 05:42 Sep 11, 2004 Jkt 029006 PO 00000 Frm 00005 Fmt 6659 Sfmt 6602 E:\HR\OC\HR673.XXX HR673
6 

vided by WMATA. Using that information, CBO found that in the 

National Capital Region, approximately 4,000 federal employees 

are not eligible to receive the tax-free transportation benefit, and 

most of those employees work for the Smithsonian Institution. 

Using estimates provided by WMATA and the experiences of agencies that are similar in size and location to the Smithsonian Institution, we estimate that 75 percent of those employees would participate in the program. That estimate is higher than the average 

for the area because of the limited parking and nearby METRO 

stations available to these employees. Hence, we estimate that providing the transportation benefit to other federal employees that 

are currently ineligible to participate would cost approximately $3 

million a year or $12 million over the 2005–2008 period, subject to 

appropriation of the necessary amounts. 

Use of Government Vehicles. Section 2 also would authorize federal agencies to use government-owned or leased passenger carriers 

to transport employees between their offices and public transportation centers. Under current law, the use of most government vehicles is only authorized for official purposes. If an agency chooses 

to provide additional transportation services under the bill, the legislation would require agencies to absorb the costs from funds already available; use alternative fueled vehicles if possible; and coordinate transportation routes with other federal agencies. 

For this estimate, CBO assumes that section 2 would affect only 

agencies in the National Capital Region because it would require 

agencies to consult with the National Planning Commission before 

offering expanded transportation services. CBO estimates that allowing federal agencies in the region to provide transportation from 

work places to public transportation centers would have no significant net impact on the federal budget. 

Under the bill, agencies could not provide employees with a combined monthly benefit from METROcheks and the use of government-provided transportation of greater than $100 per month. Consequently, we expect that the authority to use government vehicles 

to travel between public transportation centers and government 

work places would not be used extensively. 

Intergovernmental and private-sector impact: The bill contains 

no intergovernmental or private-sector mandates as defined by 

UMRA, and CBO estimates that the bill would have no significant 

impact on state, local, or tribal governments. 

Estimate prepared by: Federal Costs: Matthew Pickford and 

Mark Grabowicz; Impact on State, Local, and Tribal Governments: 

Sarah Puro; and Impact on the Private-Sector: Selena Caldera. 

Estimate approved by: Peter H. Fontaine, Deputy Assistant Director for Budget Analysis. 

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): 

7 

SECTION 1344 OF TITLE 31, UNITED STATES CODE 

§ 1344. Passenger carrier use 

(a)(1) * * * 

* * * * * * * 

(3) For purposes of paragraph (1)— 

(A) the transportation of an individual between such individual’s place of employment and a mass transit facility pursuant 

to subsection (g) is transportation for an official purpose; and 

(B) the term ‘‘Federal agency’’, as used in such paragraph, 

shall be considered to mean a Government agency (as defined 

by subsection (g)), to the extent that the passenger carriers involved are used in the provision of transportation services 

under such subsection. 

* * * * * * * 

(g)(1) A passenger carrier may be used to transport an officer or 

employee of a Government agency between the officer’s or employee’s 

place of employment and a mass transit facility (whether or not 

publicly owned) in accordance with succeeding provisions of this 

subsection. 

(2) A Government agency that provides transportation services 

under this subsection shall absorb the costs of such services using 

any funds available to such agency, whether by appropriation or 

otherwise. 

(3) In carrying out this subsection, a Government agency shall— 

(A) to the maximum extent practicable, use alternative fuel 

vehicles to provide transportation services; 

(B) to the extent consistent with the purposes of this subsection, provide transportation services in a manner that does 

not result in additional gross income for Federal income tax 

purposes; and 

(C) coordinate with other Government agencies to share, and 

otherwise avoid duplication of, transportation services provided 

under this subsection. 

(4) For purposes of any determination under chapter 81 of title 5, 

an individual shall not be considered to be in the ‘‘performance of 

duty’’ by virtue of the fact that such individual is receiving transportation services under this subsection. 

(5)(A) The Administrator of General Services, after consultation 

with the National Capital Planning Commission and other appropriate agencies, shall prescribe any regulations necessary to carry 

out this subsection. 

(B) Transportation services under this subsection shall be subject 

neither to the last sentence of subsection (d)(3) nor to any regulations under the last sentence of subsection (e)(1). 

(6) As used in this subsection— 

(A) the term ‘‘Government agency’’ means a Federal agency 

and the government of the District of Columbia; and 

(B) the term ‘‘passenger carrier’’ means a passenger motor vehicle, aircraft, boat, ship, or other similar means of transportation that is owned or leased by the United States Government 

or the government of the District of Columbia. 

ø(g)¿ (h) As used in this section— 

8 

(1) * * * 

* * * * * * * 

ø(h)¿ (i) Notwithstanding section 410(a) of title 39, this section 

applies to the United States Postal Service. 

Æ