99–006

107TH CONGRESS REPORT " HOUSE OF REPRESENTATIVES ! 2d Session 107–644

TRANSIT OPERATING FLEXIBILITY ACT

SEPTEMBER 5, 2002.—Committed to the Committee of the Whole House on the State 

of the Union and ordered to be printed 

Mr. YOUNG of Alaska, from the Committee on Transportation and 

Infrastructure, submitted the following 

R E P O R T 

[To accompany H.R. 5157] 

[Including cost estimate of the Congressional Budget Office]

The Committee on Transportation and Infrastructure, to whom 

was referred the bill (H.R. 5157) to amend section 5307 of title 49, 

United States Code, to allow transit systems in urbanized areas 

that, for the first time, exceeded 200,000 in population according to 

the 2000 census to retain flexibility in the use of Federal transit 

formula grants in fiscal year 2003, and for other purposes, having 

considered the same, report favorably thereon without amendment 

and recommend that the bill do pass.

BACKGROUND AND NEED

The Federal Transit Administration apportions formula funds 

authorized in 49 United States Code, section 5307 to designated recipients (State departments of transportation, responsible local officials and publicly owned operators of mass transportation) in urbanized areas with more than 50,000 in population according to a 

formula developed in the Intermodal Surface Transportation Efficiency Act (Public Law 102–240). For urbanized areas between 

50,000 and 200,000 in population, this formula is based on population and population density. For areas over 200,000 in population, this formula is based on population, population density, and 

vehicle revenue miles as reported to the National Transit Database. Section 5307(b) of 49 U.S.C. authorizes the Secretary of 

Transportation to make grants of formula funds for transit-related 

operating expenses in urbanized areas with a population of less 

than 200,000. However, urbanized areas with populations greater 

than 200,000 can use formula funds for capital equipment, faciliVerDate Sep 04 2002 04:58 Sep 07, 2002 Jkt 099006 PO 00000 Frm 00001 Fmt 6659 Sfmt 6602 E:\HR\OC\HR644.XXX HR644
2

ties, and associated maintenance items only—not for operating expenses. 

Urbanized area population designations are determined by the 

decennial census. For purposes of programs administered by the 

Federal Transit Administration, section 5302(a)(17) of 49 U.S.C. 

defines urbanized areas as encompassing an area so designated by 

the Secretary of Commerce (through the U.S. Bureau of the Census). The notice announcing qualifying urbanized areas as determined by the 2000 Census of Population and Housing for the 

United States, Puerto Rico, and the Island Areas was published in 

the Federal Register on May 1, 2002. Because of substantial 

changes in the criteria used by the Bureau of the Census to identify urbanized areas between the 1990 and 2000 Census periods, 

there were an unusually high number of significant urbanized area 

changes, including new urbanized areas, areas formed by splits or 

mergers, name changes, and areas with significant boundary 

changes. Among these changes were a total of 52 communities that 

had been classified as under 200,000 in population in the 1990 

Census that went to being classified as over 200,000 in the 2000 

Census, either because the city grew, or was absorbed into a larger 

nearby metropolitan area, or was combined with another nearby 

small city. Many of the public officials and transit providers in 

these 52 urbanized areas were unaware of their change in status, 

and had not prepared for the loss of flexibility in the use of their 

federal transit funds. For some transit systems that were not anticipating this change, the loss of operating flexibility will be devastating, perhaps even shutting the doors of some of the agencies, 

thus causing an immediate loss of public transportation services in 

the area. 

H.R. 5157 will provide a one-year grace period for the affected 

communities that, for the first time, exceeded 200,000 in population according to the 2000 Census. The bill allows the Secretary 

of Transportation to make formula grants to transit operators in 

these communities using the new urbanized area population designations and relevant vehicle revenue miles data while permitting 

transit providers in the affected communities to use up to the 

amount apportioned in fiscal year 2002 for operating purposes. 

This continued flexibility gives these transit operators time to adjust to their new urbanized area status and make any necessary 

changes to capital and operating budgets for fiscal year 2004. 

SUMMARY OF THE LEGISLATION

Section one amends section 5307 of title 49, United States Code, 

to allow transit systems in urbanized areas that, for the first time, 

exceeded 200,000 in population according to the 2000 Census to retain flexibility in the use of federal transit formula grants in fiscal 

year 2003. The bill strikes the last sentence of the paragraph in 

section 5307(b)(1), which refers to operating flexibility for fiscal 

year 1998 funds. A new section 5307(2) is inserted that creates a 

special rule for fiscal year 2003, providing increased flexibility for 

urbanized areas that are now more than 200,000 in population 

under the 2000 Census if (i) the urbanized area had a population 

of less than 200,000 under the 1990 Census; (ii) a portion of the 

urbanized area was a separate urbanized area of less than 200,000 

under the 1990 Census; or (iii) the area was less than 50,000 under 

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the 1990 Census. A maximum amount to be available for operating 

purposes is set at a level of no more than the total amount apportioned to the affected urbanized areas in fiscal year 2002. 

LEGISLATIVE HISTORY AND COMMITTEE CONSIDERATION

The issue of ‘‘crossing 200,000’’ in population according to the 

2000 Census urbanized area designations was discussed in a hearing of the Highways and Transit Subcommittee of the Committee 

on Transportation and Infrastructure on June 20, 2002 (Federal 

Transit Administration Capital Grants Programs). The Honorable 

Jennifer Dorn, Administrator of the Federal Transit Administration, was questioned regarding the impact of these changes and the 

need for action before the beginning of fiscal year 2003, when FTA 

is required to use the most recent census data in the formula grant 

apportionment formulas. On June 28, 2002, Committee Chairman 

Don Young wrote to Administrator Dorn to ask how the FTA would 

implement the language that was subsequently introduced on July 

18 as H.R. 5157, with 38 original cosponsors. Subcommittee action 

on the bill was waived, and the Committee on Transportation and 

Infrastructure met in open markup session on July 24, 2002 and 

approved H.R. 5157 without amendment, by voice vote. 

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 below. 

2. 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 

following cost estimate for H.R. 5157 from the Director of the Congressional Budget Office.

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U.S. CONGRESS, CONGRESSIONAL BUDGET OFFICE, Washington, DC, July 30, 2002. 

Hon. DON YOUNG, 

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. 5157, a bill to amend section 5307 of title 49, United States Code, to allow transit systems 

in urbanized areas that, for the first time, exceeded 200,000 in population according to the 2000 census to retain flexibility in the use 

of federal transit formula grants in fiscal year 2003, and for other 

purposes. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Rachel Milberg. 

Sincerely, 

BARRY B. ANDERSON

(For Dan L. Crippen, Director). 

Enclosure. 

CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

H.R. 5157—A bill to amend section 5307 of title 49, United States 

Code, to allow transit systems in urbanized areas that, for the 

first time, exceeded 200,000 in population according to the 2000 

census to retain flexibility in the use of federal transit formula 

grants in fiscal year 2003, and for other purposes 

Summary: H.R. 5157 would allow certain communities to use 

some of their grants from the Federal Transit Administration 

(FTA) on operating expenses as well as capital projects. Assuming 

appropriation of amounts authorized for those grants, CBO expects 

that implementing the bill would increase how quickly the communities spend their grants; however, CBO expects that net spending 

from the grant program would not change over the 2003–2007 period. 

Under current law, FTA provides grants to urbanized areas for 

capital projects under the Formula Grants program. Communities 

with a population of less than 200,000 according to the most recent 

census, can use some of their grants for operating expenses. Information from the 2000 census changed the status of certain communities that receive grants under this program. For example, some 

communities that were under this threshold before the 2000 census 

are now over it. Other communities that were considered separate 

urbanized areas under the threshold before the 2000 census are 

now considered part of a larger urbanized area. H.R. 5157 would 

allow those communities to continue using their grants for fiscal 

year 2003 for operating expenses. 

H.R. 5157 would not affect direct spending or receipts; therefore, 

pay-as-you-go procedures would not apply. H.R. 5157 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. 5157 is shown in the following table. The costs 

of this legislation fall within budget function 400 (transportation).

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By fiscal year, in millions of dollars—

2003 2004 2005 2006 2007

SPENDING SUBJECT TO APPROPRIATION

Spending Under Current Law for FTA’s Formula Grants Program: 

Authorization Level 1 ............................................................................ 3,989 0 0 0 0

Estimated Outlays ................................................................................ 3,215 2,805 1,820 1,223 762

Proposed Changes: 

Authorization Level ............................................................................... 0 0 0 0 0

Estimated Outlays ................................................................................ 10 2 ¥5 ¥4 ¥3

Spending Under H.R. 5157 for FTA’s Formula Grants Program: 

Authorization Level ............................................................................... 3,989 0 0 0 0

Estimated Outlays ................................................................................ 3,225 2,807 1,815 1,219 759

1 The 2003 authorization level is the amount authorized for the Formula Grants program under current law. The authorization for that program expires after 2003. 

Basis of estimate: For this estimate, CBO assumes that H.R. 

5157 will be enacted near the end of fiscal year 2002 and that the 

amount currently authorized for the FTA grant program will be appropriated for 2003. Changes in estimated outlays are based on historical spending patterns of the Formula Grants program and information from FTA. 

CBO estimates that about 50 communities would be eligible to 

use their transit grants for operating expenses under H.R. 5157. 

Although several of those communities would use their grants only 

for capital projects, CBO estimates that about half of the communities would take advantage of the increased flexibility under H.R. 

5157. On average, communities could receive about $1 million to 

cover their operating costs. Because grants to cover operating expenses are expended more quickly than grants for capital costs, 

CBO expects that implementing H.R. 5157 would increase the overall rate of spending from the Formula Grants program; however, 

CBO expects that net spending from the program would not change 

over the 2003–2007 period. 

Pay-as-you-go considerations: None. 

Intergovernmental and private-sector impact: H.R. 5157 contains 

no intergovernmental or private-sector mandates as defined in 

UMRA and would impose no costs on state, local, or tribal governments. 

Estimate prepared by: Federal Costs: Rachel Milberg; Impact on 

State, Local, and Tribal Governments: Greg Waring; Impact on the 

Private Sector: Cecil McPherson. 

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

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. 

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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 1994 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. 5157 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

The Committee finds that the legislation does not relate to the 

terms and conditions of employment or access to public services or 

accommodations within the meaning of section 102(b)(3) of the Congressional Accountability Act. (Public Law 104–1).

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 5307 OF TITLE 49, UNITED STATES CODE 

§ 5307. Urbanized area formula grants 

(a) * * *

(b) GENERAL AUTHORITY.—(1) The Secretary of Transportation 

may make grants under this section for capital projects and to finance the planning and improvement costs of equipment, facilities, 

and associated capital maintenance items for use in mass transportation, including the renovation and improvement of historic transportation facilities with related private investment. The Secretary 

may also make grants under this section to finance the operating 

cost of equipment and facilities for use in mass transportation in 

an urbanized area with a population of less than 200,000. øThe 

Secretary may make grants under this section from funds made 

available for fiscal year 1998 to finance the operating costs of 

equipment and facilities for use in mass transportation in an urbanized area with a population of at least 200,000.¿

(2) SPECIAL RULE FOR FISCAL YEAR 2003.—

(A) INCREASED FLEXIBILITY.—The Secretary may make grants 

under this section, from funds made available to carry out this 

section for fiscal year 2003, to finance the operating cost of 

equipment and facilities for use in mass transportation in an 

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urbanized area with a population of at least 200,000 as determined under the 2000 decennial census of population if— (i) the urbanized area had a population of less than 

200,000 as determined under the 1990 Federal decennial 

census of population; 

(ii) a portion of the urbanized area was a separate urbanized area with a population of less than 200,000 as determined under the 1990 Federal decennial census of population; or 

(iii) the area was not designated as a urbanized area as 

determined under the 1990 Federal decennial census of 

population. 

(B) MAXIMUM AMOUNTS.—Amounts made available pursuant 

to subparagraphs (A)(i) and (A)(ii) shall be no more than the 

amount apportioned in fiscal year 2002 to the urbanized area 

with a population of less than 200,000 as determined in the 

1990 Federal decennial census of population. Amounts made 

available pursuant to subparagraph (A)(iii) shall be no more 

than the amount apportioned under this section for fiscal year 

2003.

ø(2)¿ (3) In a transportation management area designated under 

section 5305(a) of this title, amounts that cannot be used to pay operating expenses under this section also are available for a highway project if— (A) * * *

* * * * * * *

(C) the metropolitan planning organization in approving the 

use under subparagraph (A) determines that the local transit 

needs are being addressed. 

ø(3)¿ (4) A project for the reconstruction of equipment and material, each of which after reconstruction will have a fair market 

value of at least .5 percent of the current fair market value of rolling stock comparable to the rolling stock for which the equipment 

and material will be used, is a capital project for an associated capital maintenance item under this section. 

* * * * * * *

Æ