Highway Bill is a Big Victory for the Private School Bus Industry

FOR RELEASE: Contact: Ann Henley
August 19, 2005 (703) 684-3200

The National School Transportation Association is pleased to announce the passage of the Safe, Accountable, Flexible, and Efficient Transportation Equity Act: A Legacy for Users, signed into law by President Bush on August 11th in Chicago, Illinois.

"This is a huge victory for the private school bus industry," says Becky Weber, NSTA Lobbyist, "This legislation helps level the playing field with public transit agencies and makes the transportation of schoolchildren safer."

The legislation contains several provisions that impact the industry including:

Charter Bus and School Bus Transportation Rules
The new law provides for flexible penalties when transit agencies violate either federal charter bus or school bus rules. The previous law allowed only for withholding of all of a transit agency's federal funding. The new law will allow withholding of a portion of a transit agency's formula apportionment. In addition, FTA is required to investigate complaints rather than having the discretion to investigate or not investigate.

This means that it is more likely that the Federal Transit Administration will investigate and penalize transit agencies that violate the charter bus or school bus rules.

In addition, the new law directs the DOT to begin a negotiated rulemaking process to determine what changes should be made to the charter bus rule. In a negotiated rulemaking process, all stakeholders are invited to be at the table with the agency and all parties must agree on the outcome. NSTA intends to be an active member of this process to ensure that beneficial changes to the charter rules can be enacted and to prevent any harmful incursions into charter bus work by public transit operators.

Private Enterprise Participation
This provision of federal transit law was modified to state that public transit authorities must encourage the participation of the private sector to the maximum extent feasible "as determined by local policies, criteria and decision-making."

This is a minor modification of the current law to restate that the private sector is permitted the opportunity to participate in the provision of public transportation services and continues to restate the policy that the private sector should be given the opportunity to provide public transportation service where appropriate.

Planning Provisions
Related to the Private Enterprise Participation provision, this change repeals section 5305(e) in the former law which said that the DOT could not withhold certification from a metropolitan planning organization for deciding the feasibility of private enterprise participation, therefore making the private enterprise participation provision essentially moot. The new law rewrites the entire planning section and removes 5305 (e) so mpo's must now prove that they have permitted maximum participation by the private sector in the planning process in order to be successfully certified. This means that mpo's will now be much more aware and apt to reach out to the private sector in their processes and will create more opportunities for school bus contractors to provide public transportation services where appropriate.

13c Labor Protection
The new law codifies a U.S. Department of Labor ruling which found that in a change of contractor situation, section 13c of federal labor law does not require the employees to be guaranteed jobs with the new contractor, or that their labor contract be carried over to the new contractor. That means the incoming contractor need not hire the workforce of the predecessor or honor its labor agreement.

The exception would be if there was an acquisition of a mass transit system, which is financed with federal funds.

Employees could still file 13c claims if layoffs occur in the transition from one contractor to another, but to prevail on the claims they need to show that their dismissal or displacement was caused by a federal project.

Two new transit programs, Transit in the Parks and New Freedom Imitative will not require 13c labor protection agreements - another victory for the private sector.


Passenger Van Safety
The new law requires the DOT to test 15 passenger vans as part of the rollover resistance program of NHTSA's new car assessment program. A "15 passenger van" is defined as a vehicle seating 10-14 passengers, not including the driver.

This section also includes a modified provision that was included in the Senate passed bill, entitled "Prohibition of Purchase, Rental, or Lease of Noncomplying 15-Passenger Vans for School Use", a modification of Section 30112(a) of current law. It now reads as follows:

"Except as provided in this section, Sections 30113 and 30114 of this title, and subchapter III of this chapter, a school or school system may not purchase or lease a new 15-passenger van if it will be used significantly by, or on behalf of, the school or school system to transport preprimary, primary, or secondary school students to or from school or an event related to school, unless the 15 passenger van complies with the motor vehicle standards prescribed for school buses and multifunction school activity buses under this title. This paragraph does not apply to the purchase or lease of a 15-passenger van under a contract executed before the date of enactment of this paragraph."

This provision puts the onus of the purchase or lease of 15-passenger vans on the school or school district instead of the dealer. It also puts schools and school districts on notice that they should not purchase these vans outright.

The maximum civil penalty is increased to $10,000 in the case of the manufacture, sale, offer for sale, introduction or delivery for introduction into interstate commerce, or importation of a school bus or school bus equipment in violation of the law. The maximum penalty under this paragraph for a related series of violations is $15,000,000. The penalty provision applies more broadly than to just schools or school systems, but also to manufacturers and dealers.

Clean School Bus
The bill includes language authorizing $55 million for fiscal years 2006 and 2007 and unspecified sums for 2008 and 2009 to carry out a program to help fund the purchase of new, lower emitting school buses, after-treatment emissions control equipment or biodiesel fuel. The language authorizes grants to public agencies, nonprofit trade associations and school bus contractors. Funds may be used for up to 25% of the cost of buses meeting specified emissions standards tougher than currently required by EPA or up to 50% for buses meeting even tougher standards specified in the law. In addition, the law allows grants for up to 100% for the purchase of biodiesel fuel and certain bus retrofit technologies like emissions catalysts and particulate traps.

Diesel Retrofit Funding Under CMAQ
The bill also includes expanded eligibility for use of Congestion Mitigation and Air Quality Improvement Program (CMAQ) funding to cover the cost of diesel retrofits in non-attainment areas. The CMAQ program provides approximately $8.5 billion over five years for the CMAQ program and these funds may now be used to fund diesel retrofits for motor vehicles and for any construction equipment used in highway construction projects. EPA is directed to develop guidelines on the effectiveness of diesel retrofit technologies and provide information and technical assistance to the owners and operators of diesel equipment and vehicles.

Financial Responsibility
Minimum financial responsibility standards are to be set for all private operators.

Private Sector Access to Funding
For the Transit in the Parks Program, private contractors can provide that service under normal contracting rules.

Transit Competition
The new law contains a provision designed to prevent transit agencies from linking together to perform regional intercity bus services.

 

© 2005 National School Transportation Association
113 South West Street, 4th Floor  •  Alexandria, VA 22314
Phone: (703) 684-3200  •  (800) 222-NSTA  •  Fax: (703) 684-3212