Ferry Service Expansion Act introduced
Written by Nick Blenkey
Image (C) Architect of the Capitol
Congressman John Garamendi (D-Calif.) and U.S. Senator Patty Murray (D-Wash) have introduced the “Ferry Service Expansion Act,” seeking significant additional funding for a number of programs — including the retrofit of current diesel-powered ferries
“With rising sea levels due to man-made climate change and increasing congestion on our bridges, I strongly support expanding ferry service across the Bay Area,” said Rep. Garamendi. “I am thrilled to partner with Senator Murray from Washington State on this much-needed legislation to improve ferry service for commuters and visitors alike. Our Ferry Service Expansion Act would provide more federal funding to help retrofit diesel WETA ferries to reduce emissions and eventually replace the entire Bay Area fleet with zero-emission ferries built by skilled American workers.”
Specifically, the “Ferry Service Expansion Act” would:
- Increase funding for both the Federal Highway Administration’s formula and the Federal Transit Administration’s competitive grant programs to the levels requested by the Public Ferry Coalition.
- Provide $640 million total from fiscal years 2023 to 2026 in formula grants from the Federal Highway Administration’s Ferry Boats and Ferry Terminal Facilities Formula Program, a $180 million increase over current law.
- Provide $450 million total from fiscal years 2023 to 2026 in competitive grant programs from the Federal Transit Administration’s Passenger Ferry Grant Program, a $300 million increase over current law.
- Provide a one-time $1.25 billion investment in federal transit funding for passenger ferries serving urbanized areas like San Francisco-Oakland and Seattle.
- Allow States to use their federal Surface Transportation Block Grant (STBG) for hovercraft ferry projects. Under current law, only “watercraft” ferry projects are available, not hovercraft performing the exact same overwater transit service. In December 2020, the Bay Area Council released a feasibility study for employing hovercraft to provide ferry service in the South Bay.
- Make all Census Bureau-designated rural areas nationwide eligible for Ferry Service for Rural Communities Program established under 2021 Bipartisan Infrastructure Law (Public Law 117–58).
- Make the 85% federal cost share permanent for the replacement or retrofit of diesel-powered ferries to substantially reduce emissions. Under current law, this more generous federal cost share will end after fiscal year 2025. The normal cost share is 80% for toll roads, bridge, tunnels, and ferry projects.
- Apply “Buy American” and Davis-Bacon prevailing wage requirements to the two newly authorized ferry grant programs established under the 2021 Bipartisan Infrastructure Law.
- Make privately operated passenger ferries eligible to register Capital Construction Funds with the Maritime Administration (MARAD), which allow vessel operators to forgo paying federal business taxes on such vessels provided all that forgone tax payment is reinvested in constructing new U.S.-flagged vessels in American shipyards. Under current law, only cargo vessels and commercial fishing boats are eligible for this special tax exemption.
More on the Ferry Service Expansion Act here
