The New Bay Area Transit Benefits Regulation

1. Contra Costa County Climate Leaders The New Bay AreaTransit Benefits Regulation

2. Average Commute in US: 15 miles.* *Bureau of Transportation Statistics

3. The car that gets you to work emits 22 pounds of CO2 per gallon.* *Average, US EPA

4. This equates to roughly 20 pounds of CO2 each way or 40 pounds round trip. …40 pounds adds up over time…

5. Taking transit instead: One day: 40 lbs. of CO2 not emitted One month: 920 lbs. One year: 11,040 lbs.

6. One employee/year: 11,040 lbs. of CO2 not emitted Five employees/year: 55,200 lbs. Fifty employees/year: 552,000 lbs.

7. …Hence, SB 1339 Signed into law by Governor Brown on September 30th, 2012 Requires Bay Area Employers to offer transit benefits to their employees. -- Company size: 50 or more employees (including part-timers and temps). -- Takes effect in 2013 -- BAAAQMD regulation -- Based on Successful SF Ordinance in place for 5 years.

8. Transit Benefits… • Valuable Benefit • 50% employees say impacted job decision 1 • 80% employers say it has a positive impact on recruiting and retaining employees 1 • Contribute to Green Company Initiatives • 81% surveyed employers report a positive impact on carbon footprint 1 • Employers claim they increase mass transit ridership by 10-40%2 • Good for Business • Relatively easy to implement and offer employees • Administration and/or fees can be offset by tax savings • Corporate Responsibility and Sustainability are at all time highs 1. TCRP Report 87, 2003 2. The 2009 Commuter Impact Survey, TransitCenter

9. Benefits to Employees • Tax savings • Federal, State, FICA • Average savings between 30-40% • Potential additional savings • Automotive costs, gasoline, wear and tear, total replacement • Personal benefits • Reduced commute stress • Additional productivity • Reduced carbon footprint

10. Benefits to Employers • Payroll tax savings • FICA, WC, State & Local Taxes • Supporting business initiatives • Parking issues • Help as recruiting and retention tool • Green Employer Initiatives • Encourage use of mass transit; reducing carbon footprint • Goodwill and public recognition; traffic congestion

11. Sample Tax Savings STEP 1 STEP 2 STEP 3 Using average fees as an example, the tax savings created is better than a 183% ROI on the amount it would cost to offer the benefit!

12. Program Goals & Objectives • Help Employees with Commute Costs • If every employer offers…everyone benefits! (even those not taking transit) • Green Employer / Corporate Citizen Initiatives • Align to Business Initiatives • For both Transit and Vanpools

13. Commuter Program Options: Two ways to set up transit/vanpool benefit: • Do it yourself • Less than 100 employees • You have one work site • Have someone else do it for you—Outsourcing to a third party administrator (TPA) • Larger companies • Multiple work sites • Implementation ease

14. Online programs for smaller employers Convenience Options Restrictions Card can contain pre-tax and post-tax purses Transit smartcards: Clipper in the Bay Area Cost Check on vanpool option Commuter Card

15. Online Fulfillment Programs Convenience Options Ordering/ fulfillment/ distribution outsourced Communication/ enrollment via internet Customer Service Centralized delivery Cost

16. www.commuterbenefits.org

17. Challenges • Cash Reimbursement • IRC Code Section 132 (f) Requirements • “Qualified Cash Reimbursement” • “Readily available” voucher/pass options • Double cash outlay for employee • Cumbersome = deterrent to participation • Pre-tax and Payroll Issues • Inclusion of Shuttle Option • Concerns about Participation

18. Questions?

19. Why Your Company Should Offer Commuter Benefits • Cost neutral • Easy to Implement • Good for employer, employees • Environmental benefits “The mode of transportation that you choose has a greater effect on the environment than any other decision you make as a consumer.” Union of Concerned Scientists

20. Questions? Thank you!