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The Private The Private Motorcoach and Bus Motorcoach and Bus

IndustryIndustryA Presentation by: Clyde Hart, A Presentation by: Clyde Hart,

Senior Vice President Senior Vice President

American Bus AssociationAmerican Bus Association

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American Bus AssociationAmerican Bus Association Trade association for the private intercity bus and charter and tour Trade association for the private intercity bus and charter and tour

industry.industry.

Approx. 1000 private bus operators.Approx. 1000 private bus operators.

40,000 motorcoaches (i.e., at least 35’ vehicle with an elevated 40,000 motorcoaches (i.e., at least 35’ vehicle with an elevated passenger deck located over a baggage compartment*).passenger deck located over a baggage compartment*).

Provide: intercity, charter and tour, commuter, airport shuttle Provide: intercity, charter and tour, commuter, airport shuttle services nationwide.services nationwide.

The motorcoach industry provides 762 million passenger trips The motorcoach industry provides 762 million passenger trips annually, which is more service in two weeks than Amtrak provides annually, which is more service in two weeks than Amtrak provides in the same year.in the same year.

* Section 3038 Public Law 105-178, 49 USC 5310 note.

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Private Bus industry works without Private Bus industry works without significant subsidysignificant subsidy

Private bus operators pay a reduced Private bus operators pay a reduced federal fuel tax (7.3 cents a gallon of a federal fuel tax (7.3 cents a gallon of a 24.4 cents a gallon tax).24.4 cents a gallon tax).

Publicly funded transit agencies and Publicly funded transit agencies and Amtrak pay no federal fuel tax.Amtrak pay no federal fuel tax.

Industry competes for $10 million annually Industry competes for $10 million annually in security grants.in security grants.

Industry competes for $7 million annually Industry competes for $7 million annually to put wheelchair lifts on motorcoaches.to put wheelchair lifts on motorcoaches.

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Summary Statistics for the Summary Statistics for the Motorcoach Industry in the U.S. Motorcoach Industry in the U.S.

and Canada, 2007-2008and Canada, 2007-2008 Key Statistics 2007 2008 Key Statistics 2007 2008

%Change%Change

Passenger Trips 751,000,000 762,000,000 1.5Passenger Trips 751,000,000 762,000,000 1.5

Passenger Miles 65,496,000,000 65,088,000,000 -0.6Passenger Miles 65,496,000,000 65,088,000,000 -0.6

Service Miles 1,798,000,000 1,827,000,000 1.6Service Miles 1,798,000,000 1,827,000,000 1.6

Number of MCs 33,536 35,217 5.0Number of MCs 33,536 35,217 5.0

Source: Nathan Associates, Inc.Source: Nathan Associates, Inc.

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Economic Impact of Private Economic Impact of Private Motorcoach Industry Motorcoach Industry

United StatesUnited States The motorcoach industry supports 1,056,800 jobs in the The motorcoach industry supports 1,056,800 jobs in the

country and creates $112,667,533,000 in economic activitycountry and creates $112,667,533,000 in economic activity

FloridaFlorida The motorcoach industry supports 23,400 in the state and The motorcoach industry supports 23,400 in the state and

creates $2,602,094,900 in economic activitycreates $2,602,094,900 in economic activity

Florida’s 8Florida’s 8thth Congressional District Congressional District The motorcoach industry supports 1,230 in FL-8 and creates The motorcoach industry supports 1,230 in FL-8 and creates

$136,995,690 in economic activity$136,995,690 in economic activity

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Environmental BenefitsEnvironmental Benefits

According to The Union Of Concerned According to The Union Of Concerned Scientists, motorcoaches produce less Scientists, motorcoaches produce less global warming pollution than planes, global warming pollution than planes, trains or automobiles. trains or automobiles.

Coaches also fight congestion, as each Coaches also fight congestion, as each coach has the capacity to take up to 55 coach has the capacity to take up to 55 cars off of the road at one time.cars off of the road at one time.

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Passenger Miles per Gallon of Fuel Passenger Miles per Gallon of Fuel by Mode of Transportation by Mode of Transportation

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Intercity ServiceIntercity Service

Numerous carriers provide intercity bus service Numerous carriers provide intercity bus service nationwide.nationwide.

Legacy carriers (e.g. Greyhound; Peter Pan; Jefferson Legacy carriers (e.g. Greyhound; Peter Pan; Jefferson Lines; Rimrock Stages; Northwest Stages).Lines; Rimrock Stages; Northwest Stages).

New Model carriers (e.g. Megabus, Bolt Bus, Vamoose New Model carriers (e.g. Megabus, Bolt Bus, Vamoose Bus, Jefferson Rocket Express, Fung Wah).Bus, Jefferson Rocket Express, Fung Wah).

Megabus alone moves over 4 million passengers a year Megabus alone moves over 4 million passengers a year serving 40 major cities.serving 40 major cities.

BoltBus has served over 3 million passengers, expected BoltBus has served over 3 million passengers, expected to reach 4 million by end of yearto reach 4 million by end of year

The Southwest Airlines model for the 2010s?The Southwest Airlines model for the 2010s?

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Today’s Intercity Bus Service Today’s Intercity Bus Service

1010

New Intercity Service TrendsNew Intercity Service Trends

Internet based reservations system.Internet based reservations system. Express service between city pairs.Express service between city pairs. Pick up and discharge in major urban Pick up and discharge in major urban

centers, connecting to other modes of centers, connecting to other modes of transportation.transportation.

Electronic amenities: Wi-Fi, satellite radio, Electronic amenities: Wi-Fi, satellite radio, movies, “plug-ins”.movies, “plug-ins”.

Luxury seating, food service, extra leg Luxury seating, food service, extra leg room, “classes of service”. room, “classes of service”.

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The Megabus NetworkThe Megabus Network

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ProblemsProblems

Cities view intercity bus service as a “cash Cities view intercity bus service as a “cash cow”.cow”.

Proposals to tax service for picking up on Proposals to tax service for picking up on city streets or forcing buses into terminals.city streets or forcing buses into terminals.

Bus terminals typically not close to other Bus terminals typically not close to other modes of transportation.modes of transportation.

Overzealous environmental regulationsOverzealous environmental regulations Increasing federal mandates Increasing federal mandates Lack of federal parity Lack of federal parity

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Charter Bus RegulationCharter Bus Regulation 1970s FTA rule prevents federally funded transit 1970s FTA rule prevents federally funded transit

agencies from performing charter work when agencies from performing charter work when there is a willing and able private operator there is a willing and able private operator available.available.

In D.C. alone WMATA admitted to doing $2 In D.C. alone WMATA admitted to doing $2 million in charter work in 2007.million in charter work in 2007.

In 2008 Congress mandated an FTA negotiated In 2008 Congress mandated an FTA negotiated rulemaking procedure to reform the charter bus rulemaking procedure to reform the charter bus rule.rule.

The rulemaking involved 21 representatives of The rulemaking involved 21 representatives of private and public transportation stakeholders private and public transportation stakeholders over 8 months.over 8 months.

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The Resultant RulemakingThe Resultant Rulemaking Centered the complaint process in FTA’s Chief Centered the complaint process in FTA’s Chief

Counsel’s Office.Counsel’s Office. Rationalized definition of “Charter”.Rationalized definition of “Charter”. Provided for penalties for repeated violations of Provided for penalties for repeated violations of

the rule.the rule. Established an Appeals Process.Established an Appeals Process. Exemption process for unique events.Exemption process for unique events. Web site for private carriers to register to provide Web site for private carriers to register to provide

service.service. Web site for non profit social service entities to Web site for non profit social service entities to

obtain service at reduced rates.obtain service at reduced rates.

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Public Law 111-117 Public Law 111-117 Section 172 of the FY 2010 Consolidated Appropriations Act: “None Section 172 of the FY 2010 Consolidated Appropriations Act: “None

of the funds provided or limited under this act may be used to of the funds provided or limited under this act may be used to enforce regulations related to charter bus service under part 604 of enforce regulations related to charter bus service under part 604 of title 49 Code of Federal Regulations, for any transit agency who title 49 Code of Federal Regulations, for any transit agency who during FY 2008 was both initially granted a 60-day period to come during FY 2008 was both initially granted a 60-day period to come into compliance with part 604 and then was subsequently granted into compliance with part 604 and then was subsequently granted an exception from said part”.an exception from said part”.

The provision (known as the “Murray Amendment”) permits King The provision (known as the “Murray Amendment”) permits King County Metro (and no other agency) to provide their federally County Metro (and no other agency) to provide their federally funded transit buses for service to Seattle Mariners’ and Seattle funded transit buses for service to Seattle Mariners’ and Seattle Seahawks’ games and other special events outside of their regular Seahawks’ games and other special events outside of their regular public transportation routes at the expense of private, tax paying public transportation routes at the expense of private, tax paying motorcoach companies and against whom the FTA may not act.motorcoach companies and against whom the FTA may not act.

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ABA v. RogoffABA v. Rogoff ABA and UMA sued FTA Administrator Rogoff alleging that Section ABA and UMA sued FTA Administrator Rogoff alleging that Section

172 violated the First (right to petition Congress for redress of 172 violated the First (right to petition Congress for redress of grievances) and Fifth (rights to procedural due process and to equal grievances) and Fifth (rights to procedural due process and to equal protection) Amendments of the Constitution and the Separation of protection) Amendments of the Constitution and the Separation of Powers.Powers.

On June 9, 2010 Judge Ellen Huvelle (U.S. District Court) found On June 9, 2010 Judge Ellen Huvelle (U.S. District Court) found Section 172 to be unconstitutional in that it targeted a single group Section 172 to be unconstitutional in that it targeted a single group (King County charter bus operators), while other similarly situated (King County charter bus operators), while other similarly situated entities are free to exercise their full right to challenge local public entities are free to exercise their full right to challenge local public competitors under the Charter Rule.competitors under the Charter Rule.

The Department of Justice appealed that ruling and oral argument The Department of Justice appealed that ruling and oral argument on the appeal was held before the U.S. Court of Appeals for the on the appeal was held before the U.S. Court of Appeals for the District of Columbia Circuit on September 23, 2010. District of Columbia Circuit on September 23, 2010.

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FY 2011 Transportation FY 2011 Transportation Appropriations BillAppropriations Bill

Contains the same exemption as Contains the same exemption as the FY 2010 Appropriations lawthe FY 2010 Appropriations law

Language sponsored by Language sponsored by Transportation Appropriations Transportation Appropriations Committee Chairman Patty Committee Chairman Patty MurrayMurray