Federal Update for the Regional Transportation District Board of Directors December 1, 2015

2 squirepattonboggs.com RTD’s recent achievements 2016! State of play on federal authorization and appropriations bills: What’s in the new authorization legislation? New Starts funding Preview of March 2016 Washington Fly-in Advancing RTD’s federal priorities Overview of Federal Update

3 squirepattonboggs.com 3 $ 2.8 billion in federal grant and loan commitments, including $660,000 grant in August for the award-winning Workforce Initiative Now (WIN) program 5th New Starts Project! Southeast Rail Extension (SERE): on track to sign an FFGA in the spring Leading Voice in Public Transportation Stand-up for Transportation Day (April) APTA Transit Board Members Seminar (July) National Environmental Excellence Award for SERE Project (September) Secretary Foxx Visit (October) RTD’s Recent Achievements

4 squirepattonboggs.com 4 Five New Openings: Flatiron Flyer: Starting January 3: BRT service between Denver and Boulder A Line: Starting April 22: Downtown Denver to DIA B Line: Summer 2016: First 6 miles of commuter rail line to Longmont G Line: Fall 2016: 11-mile commuter rail line through northwest Denver and Arvada to Wheat Ridge R Line: Winter 2016: 10-mile connection bringing light rail to the heart of Aurora 2016 – it’s going to be big!

5 squirepattonboggs.com 5 New Starts Projects: Securing full funding for the Eagle P3 and the Southeast Rail Extension projects in the FY 2016 omnibus appropriations bill Ensuring Southeast Rail Extension project can use STP funds – an essential funding component from our local project partners Authorization Bill: Robust funding levels for transit Flexibility in BRT definitions Next Steps: maximizing funding and policy opportunities as US DOT implements new authorization legislation via guidance and rulemakings New Opportunities: Building new/nontraditional partnerships and coalitions RTD’s Federal Priorities

6 squirepattonboggs.com 6 Authorization (Programs and Policy) Bill: Reauthorizing surface transportation programs for the next several years Advanced due to strong Congressional leadership; “Big Four Agreement” in the House Long term revenue solution for transit and highway programs funded from the Highway Trust Fund? Fiscal Year 2016 Appropriations (Spending) Bill: Funding New Starts projects, TIGER program for FY 2016 What is the state of play on transportation issues in Washington?

7 squirepattonboggs.com 7 House and Senate aim to get a final bill to the President’s desk before the latest short-term extension expires on December 4. No long-term revenue solution – gas tax, VMT tax, or repatriated revenues – to close the $15 billion annual gap between transportation spending levels and gas tax revenues. Gas tax increase not politically viable option for either party. Instead, another General Fund transfer to the Highway Trust Fund, offset with spending cuts and revenue increases for programs throughout the Federal budget. Some offsets are controversial. A bill, but no genuine revenue solution

8 squirepattonboggs.com 8 Transit’s place in the Highway Trust Fund? Secure! Devolution? Dead – for now. Transit’s share of total Highway Trust Fund revenues? Overall funding levels for transit programs? Major changes to federal transit programs: Discretionary bus program is back Flexibility in BRT eligibility? How will transit programs fare in the final bill?

9 squirepattonboggs.com 9 Spending impasse resolved by the 2-year budget deal reached between Congress and the President in October, increasing FY 2016 spending by $25 billion, spread across all non-defense programs. For transportation, the House and Senate bills are far apart, because Senate bill includes post-budget deal spending increase: $71.6 billion in House $72.9 billion in Senate Differences between the bills also include large gap between House ($100m) and Senate ($600m) TIGER funding levels. Deadline: Current stop-gap spending bill expires December 11, so no time to move 12 separate spending bills. Another Omnibus: House and Senate Appropriations Committees negotiating an omnibus bill to fund all government programs and agencies for the remainder of the fiscal year. FY 2016 Appropriations Outlook

10 squirepattonboggs.com 10 squirepattonboggs.com RTD’s New Starts request: $167 million for Eagle P3 FFGA $92 million for new FFGA for Southeast Rail Extension President’s FY 2016 budget: $165 million for Eagle P3 FFGA $92 million for new FFGA for Southeast Rail Extension House and Senate transportation appropriations bills: Fully fund ongoing FFGAs, including the Eagle P3 project, but Significantly underfund the category of this year’s new FFGAs, which includes the Southeast Rail Extension project. What does this mean for New Starts funding?

11 squirepattonboggs.com 11 squirepattonboggs.com Eagle P3 FFGA will be fully funded this year (FY 2016) New FFGA for Southeast Rail Extension: We have been pushing both House and Senate appropriators to increase funding for this new-projects category and give priority within the category to the SERE – the only “one-and-done project” in the group. The Federal share of the SERE can be fully funded in a single year. Fiscally prudent choice given limited resources: Congress need not start a funding commitment it cannot finish. Significant funding over-match by locals Strong project support by Mayor, local businesses, major employers Revised Senate bill introduced in November now includes $311 million more for New Starts; FTA anticipates signing FFGA for SERE next April. Our Appropriations Strategy

12 squirepattonboggs.com 12 squirepattonboggs.com Goals of Washington meetings: Educate federal stakeholders on RTD priorities US DOT: comment on implementing guidance/regulations Colorado Congressional delegation: Provide updates on Eagle and SERE projects, to support robust New Starts funding levels next year With an authorization bill in place, what are our new policy messages? Forge new partnerships Explore new federal funding opportunities in such areas as job training and economic development Department of Labor Department of Education Looking Ahead: March 2016 Washington Fly-In

13 squirepattonboggs.com 13 squirepattonboggs.com Questions? Thank you!