LA JOLLA, Calif. - As the world turns, there still is no solution in sight for the transportation surface bill reauthorization, and it remains an uphill battle for the school bus industry to retain a federal fuel tax exemption for school buses. The topic, along with continued business challenges presented by transit agencies, are high on the list of issues being discussed at this week’s National School Transportation Association midwinter meeting in La Jolla, Calif.

Becky Weber, a federal lobbyist for NSTA, today told bus company members in attendance that it would be devastating to the entire school bus industry if federal legislators eliminated an exemption that allows school bus operators to purchase fuel cheaper than at commercial prices for the general public and another that protects private school bus companies from unfair competition.

It is proving to be difficult to convince them not to ax the tax exemption because very few on Capitol Hill are willing in this economy to support the continuation of a program that has the appearance of increasing the ballooning federal deficit that many see as at least partly responsible for making insolvent the federal highway trust fund.

The trust fund was bailed out twice in 2009 by Congress. Meanwhile, federal transportation programs continue to operate only because of three extensions passed since SAFETEA-LU expired at the end of September. The current extension ends on Feb. 28. Leeds said a second federal stimulus bill that is currently in the House would keep transportation programs alive through Sept. 30. A companion bill in the Senate would extend SAFETEA-LU through the end of 2010.

Meanwhile, Weber said the Coalition of Private Passenger Transportation Organization, of which NSTA is a member, recently succeeded in getting Sen. Patty Murray (D-WA) to eliminate a proposal to exempt the entire state of Washington from adhering to the FTA’s charter rule that limits transit agencies from illegally providing service that local private carriers are otherwise willing and able to provide. But, the current Senate bill retains language that would allow the King County Metro to continue its lucrative, exclusive service to and from Seattle Mariners baseball games and Seattle Seahawks and University of Washington football games. And, there is support from other members of Congress.

Not only could such a measure be equally devastating to contractors, said Weber, it could be unconstitutional. She added that NSTA is currently weighing legal options such as seeking a possible injunction.

In other NSTA news, about a dozen contractor members received the first annual Green Fleet Certification Awards for achieving emissions reductions in their fleets via new purchases, emissions retrofit installations and use of alternative fuels. Winners in attendance were: Trans Group LLC, Dean Transportation, School Bus, Inc.; George Krapf Jr. & Sons, Inc.; Kobussen Buses Ltd.; and Fowler Bus.