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42 196
105 th Congress
Report
HOUSE OF REPRESENTATIVES
1st Session
105 188
DEPARTMENT OF TRANSPORTATION AND RELATED AGENCIES
APPROPRIATIONS BILL,
1998
July 16, 1997.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
Mr. Wolf , from the Committee on Appropriations, submitted the
following
REPORT
together with
ADDITIONAL VIEWS
[To accompany H.R. 2169]
The Committee on Appropriations submits the following report in
explanation of the accompanying bill making appropriations for the
Department of Transportation and related agencies for the fiscal year
ending September 30, 1998.
INDEX TO BILL AND REPORT
Page number
Bill
Report
Narrative summary of Committee action
2
Program, project, and activity
3
Title I--Department of Transportation:
Office of the Secretary
2
5
Coast Guard
5
12
Federal Aviation Administration
10
28
Federal Highway Administration
15
69
National Highway Traffic Safety Administration
17
97
Federal Railroad Administration
19
105
Federal Transit Administration
24
116
Saint Lawrence Seaway Development Corporation
33
143
Research and Special Programs Administration
34
144
Office of Inspector General
36
148
Surface Transportation Board
36
149
Title II--Related Agencies:
Architectural and Transportation Barriers Compliance Board
37
151
National Transportation Safety Board
37
152
Title III--General Provisions
38
154
Title IV--Amtrak Route Closure And Realignment
52
155
House Report Requirements:
Appropriations not authorized by law
161
Changes in existing law
156
Comparison with budget resolution
161
Constitutional authority
155
Financial assistance to state and local governments
162
Five-year projections of outlays
162
Rescissions
156
Transfers of funds
156
Tabular summary of the bill
164
SUMMARY OF THE BILL
The accompanying bill would provide $13,125,671,000 in new budget
(obligational) authority for the programs of the Department of
Transportation and related agencies, an increase of $9,944,000 above the
$13,115,727,000 requested in the budget.
The Committee has also recommended limitations on obligations for a
number of programs that are largely financed by multi-year contract
authority in legislative acts. The total of the limitations on
obligations for these programs is $27,681,825,000. This is
$3,695,604,466 above the levels enacted in fiscal year 1997, and
$2,077,825,000 more than
the levels requested in the budget. An additional
$1,660,226,000 is estimated to be obligated for federal-aid highway
programs exempt from the obligation limitation in the bill.
The total recommended obligational authority (new budget authority,
limitations on obligations, exempt obligations) amounts to
$42,467,772,000. This is $5,379,656,000 more than comparable fiscal year
1997 enacted levels, and $2,237,424,000 more than the budget request.
MAJOR RECOMMENDATIONS
Selected major recommendations in the accompanying bill are:
(1) The federal-aid highways limitation amounts to $21,500,000,000,
an increase of $3,500,000,000 (almost 20 percent) over the 1997 enacted
level. This is in excess of the levels assumed in the bipartisan budget
agreement.
(2) Transit program spending of $4,837,738,000, an increase of
$455,556,000 over the 1997 enacted level. The transit formula program is
increased from $2,149,185,000 to $2,500,000,000 (16 percent); transit
discretionary grants increase 5 percent, from $1,900,000,000 in fiscal
year 1997 to $2,000,000,000 in fiscal year 1998.
(3) An appropriation of $9,060,000,000 for the Federal Aviation
Administration, an increase of $768,588,000 (9 percent) over the 1997
enacted level and $648,900,000 over the administration's request.
(4) The airport improvement program totals $1,700,000,000, an
increase of $700,000,000 over the administration's request.
(5) A total of $793,000,000 for the National Railroad Passenger
Corporation (Amtrak) to cover operating losses, retirement payments,
capital expenses and improvements to the northeast corridor. This is an
increase of $30,050,000 over the 1997 enacted level when adjusted for
non-recurring costs.
(6) A total of $3,881,696,000 is provided for the Coast Guard, an
increase of $105,000,000 over 1997. The Subcommittee recommendation
fully funds the Coast Guard's drug interdiction program ($354,100,000),
of which $34,300,000 is withheld until the Office of National Drug
Control Policy certifies that these expenditures represent the best
investment relative to other possible drug interdiction alternatives.
(7) A total of $333,407,000 for the National Highway Traffic Safety
Administration, an increase of 10 percent over the 1997 enacted level.
(8) Funding of $1,000,000 for an Amtrak route closure and
realignment commission.
TABULAR SUMMARY
A table summarizing the amounts provided for fiscal year 1997 and
the amounts recommended in the bill for fiscal year 1998 compared with
the budget estimates is included at the end of this report.
COMMITTEE HEARINGS
The Committee has conducted extensive hearings on the programs and
projects provided for in the Department of Transportation and Related
Agencies Appropriations Bill for fiscal year 1998. These hearings are
contained in 7 published volumes totaling approximately 9,000 pages. The
Committee received testimony from officials of the executive branch,
Members of Congress, officials of the General Accounting Office,
officials of state and local governments, and private citizens.
The bill recommendations for fiscal year 1998 have been developed
after careful consideration of all the information available to the
Committee.
PROGRAM, PROJECT, AND ACTIVITY
During fiscal year 1998, for the purposes of the Balanced Budget and
Emergency Deficit Control Act of 1985 (Public Law 99 177), as amended,
with respect to appropriations contained in the accompanying bill, the
terms ``program, project, and activity'' shall mean any item for which a
dollar amount is contained in an appropriations Act (including joint
resolutions providing continuing appropriations) or accompanying reports
of the House and Senate Committees on Appropriations, or accompanying
conference reports and joint explanatory statements of the committee of
conference. This definition shall apply to all programs for which new
budget (obligational) authority is provided, as well as to discretionary
grants, Federal Transit Administration. In addition, the percentage
reductions made pursuant to a sequestration order to funds appropriated
for facilities and equipment, Federal Aviation Administration, and for
acquisition, construction, and improvements, Coast Guard, shall be
applied equally to each ``budget item'' that is listed under said
accounts in the budget justifications submitted to the House and Senate
Committees on Appropriations as modified by subsequent appropriations
Acts and
accompanying committee reports, conference reports, or joint
explanatory statements of committees of conference.
GOVERNMENT PERFORMANCE AND RESULTS ACT
The Committee considers the full and effective implementation of the
Government Performance and Results Act (P. L. 103 62), to be a priority
for all agencies of government.
Starting with fiscal year 1999, the Results Act requires each agency
to ``prepare an annual performance plan covering each program activity
set forth in the budget of such agency''. Specifically, for each program
activity the agency is required to ``establish performance goals to
define the level of performance to be achieved by a program activity''
and ``performance indicators to be used in assessing the relevant
outputs, service levels, and outcomes of each program activity''.
The Committee takes this requirement of the Results Act very
seriously and plans to carefully examine agency performance goals and
measures during the appropriations process. As a result, starting with
the fiscal year 1999 appropriations cycle, the Committee will consider
agencies' progress in articulating clear, definitive, and
results-oriented (outcome) goals and measures as requests for
appropriations are reviewed.
The Committee suggests agencies examine their program activities in
light of their strategic goals to determine whether any changes or
realignments would facilitate a more accurate and informed presentation
of budgetary information. Agencies are encouraged to consult with the
Committee as they consider such revisions prior to finalizing any
requests pursuant to 31 U.S.C. 1104. The Committee will consider any
requests with a view toward ensuring that fiscal year 1999 and
subsequent budget submissions display amounts requested against program
activity structures for which annual performance goals and measures have
been established.
SAFETY PROGRAMS
In this bill, the Committee has worked hard to protect funding for
essential safety-related programs of the Department of Transportation
and independent agencies. The tragic aviation accidents over the last
couple of years and an increasing number of highway fatalities have
brought home to many people the importance of maintaining and improving
safety. In response, the Committee has fully funded many safety
initiatives, such as the National Highway Traffic Safety
Administration's alcohol, speed, and air bag initiatives. The bill
includes eighteen initiatives to enhance safety and capacity of the
aviation system, and restores funds cut by the Federal Aviation
Administration for safety equipment and safety-related research.
Additional funds above the President's request are provided for
installing airport surface detection equipment; automatic alerting
systems to prevent runway collisions; approach lighting systems;
improved weather detection and forecasting systems; aging aircraft and
aircraft safety technologies; and human factors research. However, if,
in the judgment of department officials any of the Committee's
recommendations would significantly harm transportation safety, or if
unanticipated safety needs arise during the course of the appropriations
process, the Committee welcomes discussions with the administration to
adjust individual funding levels and provide the funding needed. The
bill also allows significant flexibility through the reprogramming
process, which requires no further legislative action. The Committee
will work with administration officials to reprogram funds for safety
programs if that should be required.
TITLE I
DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY
SALARIES AND EXPENSES
Appropriation, fiscal year 1997\1\ $52,966,000
Budget estimate, fiscal year 1998 56,136,000
Recommended in the bill 60,009,000
xlBill compared with:
Appropriation, fiscal year 1997 +7,043,000
Budget estimate, fiscal year 1998 +3,873,000
\1\Excludes reduction of $1,458,200 to comply with TASC.
The bill provides $60,009,000 for salaries and expenses of the
various offices comprising the Office of the Secretary (OST). This level
is $7,043,000 above the fiscal year 1997 level and $3,873,000 above the
budget estimate.
Rental payments. --The Committee recommendation includes funding for
OST's rental payments in this account and eliminates the consolidated
rental payments account, consistent with the budget request. The bill
provides $5,898,000 in this account only to fund OST-utilized space and
related services. The bill deletes funding requested for department-wide
facility security enhancements (-$4,669,000). The GSA indicated in
testimony before the Committee that there are no plans for a new
security enhancement package in fiscal year 1998 and that current
annualization of security enhancements which were funded in fiscal year
1997 have not been reflected in the rental rates charged to the
agencies. Moreover, the GSA stated, ``At the present time we do not
reflect the cost of additional security requirements in the rental rates
we charge, but we are proposing to do so beginning in fiscal year 1999
through the implementation of a security surcharge. Rent rates would not
be affected until that time.'' As such, the Committee believes that the
additional $4,669,000 requested by the department for security
requirements is premature at this time. The Committee notes that this
action will not diminish security at any of the department's facilities.
The Committee recommendation assumes the following reductions from
the budget estimate:
xlReductions in staff:
-10 Procurement analysts, office of acquisition -$700,000
-5 Attorney advisors -400,000
-2 Congressional liaison officers -150,000
-2 Intergovernmental liaison officers -150,000
-3 Office of public affairs -175,000
-3 Office of administration -125,000
-1 Office of intermodalism -100,000
Office of the chief information officer -225,000
Office of acquisition .--The Committee recommendation reduces by ten
the number of procurement analysts in the office of acquisition and
grants management. While the Committee once supported the department's
intended aggressive initiative to improve acquisition oversight at the
departmental level, the Committee now questions the value added by
limited, informal secretarial reviews. Over the past years, the FAA,
which is responsible for the majority of the department's major
acquisitions, has been provided new acquisition authorities, including
greater flexibility and latitude in its procurement program, and as a
result, the administrative offices of the secretary have little, if any,
oversight role.
The bill includes a provision that limits to $606,000 funds available
to the office of acquisition and grants management, solely for
department-wide grants management activities.
Other reductions in staff .--The Committee recommendation eliminates
a number of other positions in the office of the secretary, including 5
attorney advisors in the office of general counsel (-$400,000); 2
congressional liaison officers and 2 intergovernmental liaison officers
in the office of governmental affairs (-$300,000); 3 positions in the
office of public affairs (-$175,000); 3 positions in the office of
administration (-$125,000); and 1 position in the office of
intermodalism (-$100,000). In light of severe budget constraints and
government downsizing, it is the Committee's belief that these positions
can be eliminated without affecting the core responsibilities, functions
and duties of the department. Many of these positions are either new
hires planned in fiscal year 1998 or are currently vacant.
Office of the chief information officer .--The Committee
recommendation reduces funds requested for the office of the chief
information officer by $225,000 due to outlay constraints. The budget
request included a total of $625,000 for the office. This reduction will
require nominal reductions in travel and training, as well as reductions
in cross-cutting initiatives and contractor support to formulate a
department-wide information technology strategy.
Periodic fitness reviews of airlines. --Within the funds provided,
the Committee recommendation includes 3 staff years in the office of the
secretary to implement a recommendation of the White House Commission
that greater attention be paid to periodic fitness reviews of airlines.
The budget requested that these staff years be funded from the FAA's
budget.
Reprogramming .--In fiscal year 1997, the department may use
unobligated balances from fiscal year 1996 funds appropriated for the
aviation management system for any transportation planning research and
development purpose.
Non-sedating antihistamines. --The Committee applauds the
department's attention to raising public awareness of fatigue, sleep
disorders, and inattention related to motor vehicle crashes and the
FAA's vigilance in reviewing medications suitable for pilots and
safety-related personnel, such as approval of non-sedating
antihistamines for allergy relief. The Committee believes that other
agencies within the department, including FRA, FTA, NHTSA, and the
FHWA's office of motor carriers, should follow the lead of the FAA and
encourages the Secretary to review the need to develop safety standards
relating to the use of antihistamines in other public/commercial modes
of transportation.
GENERAL PROVISIONS
Limitation on political and Presidential appointees. --The Committee
has included a provision in the bill (sec. 305), similar to provisions
in past Department of Transportation and Related Agencies Appropriations
Acts, which limits the number of political and Presidential appointees
within the Department of Transportation. The ceiling for fiscal year
1998 is 107 personnel, which is the same as the ceiling enacted in
fiscal year 1997. The bill specifies that no political or Presidential
appointee may be detailed outside the Department of Transportation.
Advisory committees. --The Committee has deleted language that was
included in past Department of Transportation and Related Agencies
Appropriations Acts which limited the funds used for the expenses of
advisory committees of the Department of Transportation. The budget
requested that the limitation on advisory committees be deleted and the
Committee sees no useful oversight purpose in maintaining it further.
OFFICE OF CIVIL RIGHTS
Appropriation, fiscal year 1997\1\ $ 5,574,000
Budget estimate, fiscal year 1998 5,574,000
Recommended in the bill 5,574,000
xlBill compared with:
Appropriation, fiscal year 1997
Budget estimate, fiscal year 1998
\1\Excludes reduction of $25,735 to comply with TASC.
The Office of Civil Rights is responsible for advising the Secretary
on civil rights and equal opportunity matters and ensuring full
implementation of civil rights and equal opportunity precepts in all of
the Department's official actions and programs. This office is
responsible for enforcing laws and regulations which prohibit
discrimination in federally operated and federally assisted
transportation programs. This office also handles all civil rights cases
related to Department of Transportation employees.
The Committee recommends an appropriation for the Office of Civil
Rights totaling $5,574,000, the same level as both the budget request
and the fiscal year 1997 enacted level. In fiscal year 1995, the
management of internal civil rights activities was consolidated in the
Office of the Secretary with transfer authority provided in the salaries
and expenses account. This level will support 70 full-time equivalent
staffyears.
TRANSPORTATION PLANNING, RESEARCH, AND DEVELOPMENT
Appropriation, fiscal year 1997\1\ $ 3,000,000
Budget estimate, fiscal year 1998 6,008,000
Recommended in the bill 4,400,000
xlBill compared with:
Appropriation, fiscal year 1997 +1,400,000
Budget estimate, fiscal year 1998 -1,608,000
\1\Excludes reduction of $69,869 to comply with TASC.
This appropriation finances those research activities and studies
concerned with planning, analysis, and information systems development
needed to support the Secretary's responsibilities in the formulation of
national transportation policies. The overall program is carried out
primarily through contracts with other federal agencies, educational
institutions, nonprofit research organizations, and private firms.
The Committee recommends $4,400,000 for transportation, planning,
research, and development, which represents an increase of $1,400,000
over fiscal year 1997 levels and a decrease of $1,608,000 from the
budget estimate. Within the total provided, the recommended level holds
transportation planning and studies to $3,538,000, an increase of
$820,000 over fiscal year 1997, and $730,000 below the budget estimate.
This level will permit annualization and other pay-related costs for 15
full-time equivalent staffyears and will fully fund all ongoing
activities, as well as provide nominal increases for proposed studies
and evaluations, albeit below the budget estimate.
National capital region congestion mitigation study.-- Within the
funds provided for transportation planning and studies, the Committee
has included $300,000 to conduct a comprehensive study and hold a summit
to analyze how to meet and mitigate the current and future
transportation needs and congestion of the national capital region.
The recommended level also provides $862,000 for the department's
transportation systems planning activities, which represents an increase
of $619,000 above the fiscal year 1997 level of $243,000 and a decrease
of $878,000 below the budget estimate. This level fully funds the fiscal
year 1998
requirements for docket management system modernization but
defers funding for the automated rulemaking system due to budget
constraints.
TRANSPORTATION ADMINISTRATIVE SERVICE CENTER
Limitation, fiscal year 1997\1\ ($124,812,000)
Budget estimate, fiscal year 1998\2\ (121,800,000)
Recommended in the bill\3\ (121,800,000)
xlBill compared with:
Limitation, fiscal year 1997 (-3,012,000)
Budget estimate, fiscal year 1998 (--)
\1\Excludes reduction of $10,000,000 to comply with TASC.
\2\Proposed without limitation.
\3\In fiscal year 1998, the limitation on transportation administrative service center expenses is
also addressed in a general provision (-$25,000,000).
The transportation administrative service center (TASC) was created
in fiscal year 1997 to provide common administrative services to the
various modes and outside entities that desire those services for
economy and efficiency. The fund is financed through negotiated
agreements with the department's operating administrations and other
governmental elements requiring the center's capabilities.
The Committee agreed to create the transportation administrative
service center in fiscal year 1997 at the department's request. In
agreeing to that request, the Committee limited (1) the activities that
can be transferred to the transportation administrative service center
to only those approved by the agency administrator and (2) special
assessments or reimbursable agreements levied against any program,
project or activity funded in this Act to only those assessments or
reimbursable agreements for which justification is presented to and
approved by the House and Senate Committees on Appropriations. These
limitations are continued in fiscal year 1998.
In addition, to ensure smooth operations and accountability of the
TASC in its nascent stages of development and organization, the
Committee directed the department to submit with the department's
congressional budget submission the annual operating plan of the TASC
and its quarterly reports for the Committee's review. Quarterly reports
of the Secretary's management council were to be provided to the
Committee. Now, nearly six months after the department transmitted its
congressional budget justifications, the TASC's fiscal year 1998
operating plan displayed by lines of business, quarterly reports and
secretarial management council reports and approvals have yet to be
provided to the Committee. These documents provide critical information
in support of the department's budget recommendation for the
transportation administrative service center. Without the timely
transmittal of these materials, the Committee is unable to fully
consider the department's 1998 request or judge the department's
progress in establishing and operating this new organization.
Accordingly, the Committee directs the department not to hire any new
staff for the TASC in fiscal years 1997 or 1998 and reiterates its
direction that the 1999 TASC operating plan be submitted with the
department's fiscal year 1999 congressional justifications, and that all
other supporting documents cited above be provided to the Committee in a
more timely manner.
General provision. --The Committee has included a general provision
(sec. 319) which provides that amounts budgeted for the transportation
administrative service center in this bill are reduced, on a pro-rata
basis, to the limitation level of $96,800,000.
The Committee believes that this reduction is justified given the
lack of material justifying the department's budget request as well as
the significant personnel reductions that have occurred within the
department over the past several years. For example, the department
projects that if staffing were held at the current level, the 1997
civilian full time equivalent (FTE) employment would be about 1,700, or
three percent, below the levels provided for in the fiscal year 1997
Department of Transportation and Related Agencies Appropriations Act. As
such, common administrative expenses like copying, supplies, computer
services, motor pool, parking and transit benefits, and
telecommunications services should be declining and can be accommodated
within the levels provided in this Act.
PAYMENTS TO AIR CARRIERS
(Airport and Airway Trust Fund)
Liquidation of contract authorization Limitation on obligations
Appropriation, fiscal year 1997 ($25,900,000) ($25,900,000)
Budget estimate, fiscal year 1998 (--------) (--------)
Recommended in the bill (--------) (--------)
xlBill compared with:
Appropriation, fiscal year 1997 (-25,900,000) (-25,900,000)
Budget estimate, fiscal year 1998 (--------) (--------)
The essential air service program was originally created by the
Airline Deregulation Act of 1978 as a temporary measure to continue air
service to communities that had received federally mandated air service
prior to deregulation. The program currently provides subsidies to air
carriers serving small communities that meet certain criteria.
Subsidies, ranging from $5 to $320, currently support air service to 82
communities and serve about 700,000 passengers annually. This program
was established to provide a smooth phaseout of federal subsidies to
airlines that serve small airports.
The Federal Aviation Reauthorization Act of 1996 (Public Law 104 264)
authorized the collection of user fees for services provided by the
Federal Aviation Administration to aircraft that neither take off from,
nor land in the United States, commonly known as overflight fees. In
addition, the Act permanently appropriated the first $50,000,000 of such
fees to be used for the essential air service program and rural airport
improvements. Amounts collected in excess of $50,000,000 are permanently
appropriated for authorized expenses of the FAA.
Consistent with the FAA reauthorization legislation enacted in 1996,
this program becomes a mandatory program in fiscal year 1998.
General provision. --Over the years, Congress and the department
have worked to streamline the essential air service program and to
increase its efficiency by eliminating communities that are within an
easy drive of a major hub airport or where the costs clearly outweigh
the benefits. The bill includes a limitation (sec. 331), as requested by
the administration, that continues the existing eligibility standards
and will help preserve those efficiencies. Specifically, this limitation
continues appropriations language that limits the number of communities
that receive essential air service funding by excluding points in the 48
contiguous United States that are located fewer than 70 highway miles
from the nearest large or medium hub airport, or that require a subsidy
in excess of $200 per passenger, unless such a point is more than 210
miles from the nearest large or medium hub airport.
PAYMENTS TO AIR CARRIERS
(airport and airway trust fund)
(rescission of contract authorization)
Rescission, fiscal year 1997 -$12,700,000
Budget estimate, fiscal year 1998 -38,600,000
Recommended in the bill -38,600,000
xlBill compared with:
Rescission, fiscal year 1997 -25,900,000
Budget estimate, fiscal year 1998
The bill includes a rescission of contract authority of $38,600,000.
This rescission removes contract authority which was provided in
previous authorizing Acts but is no longer needed to fund the essential
air service program. The Federal Aviation Reauthorization Act of 1996
(Public Law 104 264) authorized the collection of user fees for services
provided by the Federal Aviation Administration to aircraft that neither
take off from, nor land, in the United States, commonly known as
overflight fees. The Act permanently appropriated the first $50,000,000
of such fees to be used for the essential air service program and rural
airport improvements.
RENTAL PAYMENTS
Appropriation, fiscal year 1997 $127,447,000
Budget estimate, fiscal year 1998 10,567,000
Recommended in the bill
xlBill compared with:
Appropriation, fiscal year 1997 -127,447,000
Budget estimate, fiscal year 1998 -10,567,000
For the past several years, payments to GSA for headquarters and
field space rental and related services for modes of the department were
consolidated into the rental payments account. Beginning in fiscal year
1998, the budget proposes to fund all GSA rental payments from each of
the individual modal budgets. For OST-utilized space and proposed
security enhancements, the budget requests a total of $10,567,000.
The Committee recommendation adopts the budget proposal to revert all
GSA rental payments for headquarters and field space to the individual
modal administrations and to terminate the consolidated rent account.
Consistent with that proposal, the bill provides funding for the office
of the secretary's rent requirements in the salaries and expenses
account.
General provision. --The Committee has deleted language that was
included in the 1997 Department of Transportation Appropriations Act
that would permit the Secretary to transfer funds appropriated in the
bill for non-rental costs to pay for rent should they exceed the amounts
provided for rent in the bill. Since the Committee has provided the
department's request for rental payments, this provision is no longer
necessary.
MINORITY BUSINESS RESOURCE CENTER PROGRAM
Appropriation Limitation on direct loans
Appropriation, fiscal year 1997 $1,900,000 ($15,000,000)
Budget estimate, fiscal year 1998 1,900,000 (15,000,000)
Recommended in the bill 1,900,000 (15,000,000)
xlBill compared with:
Appropriation, fiscal year 1997
Budget estimate, fiscal year 1998
The minority business resource center of the Office of Small and
Disadvantaged Business Utilization provides assistance in obtaining
short-term working capital and bonding for disadvantaged, minority, and
women-owned businesses. The program enables qualified businesses to
obtain loans at prime interest rates for transportation-related
projects.
Prior to fiscal year 1993, loans under this program were funded by
the Office of Small and Disadvantaged Business Utilization without a
limitation. Reflecting the changes made by the Federal Credit Reform Act
of 1990, beginning in fiscal year 1993 a separate appropriation was
proposed in the President's budget only for the subsidy inherently
assumed in those loans and the cost to administer the loan program.
The recommendation fully funds the budget request, which provides a
limitation on direct loans of $15,000,000 and subsidy and administrative
costs totaling $1,900,000, the same levels as last year.
MINORITY BUSINESS OUTREACH
Appropriation, fiscal year 1997 $ 2,900,000
Budget estimate, fiscal year 1998 2,900,000
Recommended in the bill 2,900,000
xlBill compared with:
Appropriation, fiscal year 1997
Budget estimate, fiscal year 1998
This appropriation provides contractual support to assist minority
business firms, entrepreneurs, and venture groups in securing contracts
and subcontracts arising out of projects that involve federal spending.
It also provides grants and contract assistance that serve DOT-wide
goals and not just OST purposes. The Committee has provided $2,900,000,
the same level as provided in fiscal year 1997 and included in the
budget estimate.
COAST GUARD
SUMMARY OF FISCAL YEAR 1998 PROGRAM
The Coast Guard, as it is known today, was established on January 28,
1915, through the merger of the Revenue Cutter Service and the
Lifesaving Service. This was followed by transfers to the Coast Guard of
the United States Lighthouse Service in 1939 and the Bureau of Marine
Inspection and Navigation in 1942. The Coast Guard has as its primary
responsibilities enforcing all applicable federal laws on the high seas
and waters subject to the jurisdiction of the United States; promoting
safety of life and property at sea; aiding navigation; protecting the
marine environment; and maintaining a state of readiness to function as
a specialized service of the Navy in time of war.
Including funds for national security activities and retired pay
accounts, the Committee recommends a total program level of
$3,881,696,000 for activities of the Coast Guard in fiscal year 1998.
This is $105,157,000 (2.8 percent) more than the fiscal year 1997
program level. Excluding mandatory programs, the recommended level is
$21,000,000 above the budget estimate.
The following table summarizes the fiscal year 1997 program levels,
the fiscal year 1998 program requests, and the Committee's
recommendations:
Program Fiscal year-- Committee recommended
1997 enacted 1998 estimate
Operating expenses\1\ \2\ $2,621,325,000 $2,740,000,000 $2,708,000,000
Acquisition, construction and improvements 374,840,000 370,000,000
370,000,000
Environmental compliance and restoration 22,000,000 21,000,000 21,000,000
Port safety development 5,000,000
Alteration of bridges 16,000,000 16,000,000
Retired pay\3\ 617,284,000 645,696,000 645,696,000
Reserve training 65,890,000 65,000,000 67,000,000
Research, development, test and evaluation 19,200,000 19,000,000 19,000,000
Boat safety\4\ 35,000,000 35,000,000
------------------ ------------------ ----------------
Total 3,776,539,000 3,860,696,000 3,881,696,000
\1\Fiscal year 1997 amount includes $300,000,000 in the Department of Defense Appropriations
Act, 1997 and transferred to the Coast Guard; fiscal year 1998 estimated and recommended
amounts include $300,000,000 specifically for national security activities of the Coast Guard and
scored against budget function 050 (defense).
\2\Fiscal year 1997 total includes $1,600,000 in supplemental appropriations from Public Law
105 18 related to TWA 800 disaster recovery expenses.
\3\Fiscal year 1997 total includes $9,200,000 provided in supplemental appropriations from
Public Law 105 18.
\4\Fiscal year 1998 estimate includes $50,000,000 proposed in mandatory spending.
BUDGET PRESENTATION
For many years, the Committee has been working with the Coast Guard
and the General Accounting Office to improve the Coast Guard's operating
budget in a way which more closely aligns the budget with actual
expenditures and presents the Congressional budget in a more
understandable, straightforward manner. Although much progress has been
made over the past few years, the Committee believes that the operating
budget can be improved further by reducing the number of programs,
projects and activities (PPAs) and more directly aligning those PPAs to
specific elements of the Coast Guard organizational structure. This will
more closely match the budget to accounting and fund distribution
systems within the Coast Guard, while providing the service with
adequate flexibility to execute funds as the year progresses. The
Committee recommendation reflects this new budget presentation, and the
Committee encourages the administration to continue this presentation
with the fiscal year 1999 budget submission.
OPERATING EXPENSES
(including transfer of funds)
Appropriation, fiscal year 1997 1,2$2,619,725,000
Budget estimate, fiscal year 1998 2,740,000,000
Recommended in the bill \3\2,708,000,000
xlBill compared with:
Appropriation, fiscal year 1997 +88,275,000
Budget estimate, fiscal year 1998 -32,000,000
\1\Includes $300,000,000 in funds transferred from the Department of Defense.
\2\Excludes $2,026,805 in TASC reductions and $3,000 in reductions for bonuses and awards.
\3\Includes $300,000,000 in funds for national security activities included in this bill.
Including $300,000,000 for national security activities, the
Committee recommends a total of $2,708,000,000 for operating activities
of the Coast Guard in fiscal year 1998, an increase of $88,275,000 (3.4
percent) above the fiscal year 1997 appropriation, and $32,000,000 (one
percent) below the budget request. The following table compares the
fiscal year 1997 enacted level, the fiscal year 1998 estimate, and the
recommended level by program, project and activity:
COAST GUARD OPERATING EXPENSES
[In thousands of dollars, by fiscal year]
Program project and activity 1997 enacted\1\ 1998 estimate 1998
recommended
I. Personnel Resources $1,670,718 $1,723,261 $1,700,176
----------------- --------------- ------------------
================= ===============
==================
II. Operating Funds and Unit Level Maintenance 571,672 620,749 612,449
----------------- --------------- ------------------
1. 1st district (Boston) 34,660 36,172 36,172
2. 7th district (Miami) 48,150 50,251 50,251
3. 8th district (New Orleans) 30,896 32,244 32,244
4. 9th district (Cleveland) 19,719 20,579 20,579
5. 13th district (Seattle) 13,678 14,275 14,275
6. 14th district (Honolulu) 15,452 16,126 16,126
7. 17th district (Juneau) 23,080 24,087 24,087
================= ===============
==================
III. Depot-Level Maintenance 375,305 395,990 395,990
----------------- --------------- ------------------
================= ===============
==================
IV. Account-wide Adjustments -615
----------------- --------------- ------------------
================= ===============
==================
Total 2,617,695 2,740,000 2,708,000
\1\Includes reductions of $2,026,805 for TASC and $3,000 in bonuses and awards.
\2\Includes operating funds for Coast Guard Academy and Training Centers as well as general
funds for professional training and education.
\3\Includes ammunition and small arms (AFC 54) and Chief of Staff funds (AFC 40).
COMMITTEE RECOMMENDATION
The recommended reduction from the budget estimate includes the
following adjustments:
Amount
Public affairs staffing adjustment -$840,000
Professional training and education -1,645,000
FTE staffyear savings based on slow hiring rates -19,600,000
User fee offset, foreign flag cruise ships -615,000
Recruiting -1,000,000
Governor's Island caretaker status -8,300,000
-------------
Total -32,000,000
PERSONNEL RESOURCES
The bill includes $1,700,176,000 for pay, allowances and other
resources for Coast Guard military and civilian personnel, a reduction
of $23,085,000 (1.3 percent) from the budget estimate. Within the amount
provided, the bill includes all funds requested for special pays for
military personnel.
Public affairs staffing adjustment.-- The Committee recommendation
reduces public affairs staffing in the Coast Guard from 96 positions to
81, a reduction of 15 percent. This mirrors a Committee initiative two
years ago to reduce public affairs staffing in the FAA. The Committee
believes that a higher level of staffing for this activity is not
affordable given budget constraints.
Professional training and education.-- The President's budget
requested a $5,092,000 (23.7 percent) increase in this activity,
including an additional $1,800,000 for training related to increased
anti-drug activities. The Committee recommendation fully funds the
requested increase for anti-drug training, and 50 percent of the
increase for other Coast Guard training activities. This results in a
reduction to the budget estimate of $1,645,000,
and an increase of $3,447,000 (16 percent) above the fiscal
year 1997 enacted level.
Full-time equivalent (FTE) staffyear savings. --For fiscal year
1997, the Congress provided funding to support 42,330 full-time
equivalent (FTE) staffyears in the Coast Guard. The current projection
is that less staffyears will be utilized in fiscal year 1997 due to
hiring delays. Follow-on funding for these unfilled positions is assumed
in the fiscal year 1998 base funding for operations. The Committee
recommendation deletes a portion of those funds, a program savings of
$19,600,000.
Recruiting. --The recommendation includes a reduction of $1,000,000
in recruiting activities to offset an associated increase in recruiting
for the Coast Guard Reserve, found in the ``Reserve training''
appropriation. The Committee believes this is justified given the value
to the Coast Guard of reserve augmentation workhours and the shortfall
in reserve recruiting. This reduction should not be allocated against
new diversity recruiting initiatives.
OPERATING FUNDS AND UNIT LEVEL MAINTENANCE
The bill includes $612,449,000 for Coast Guard non-personnel
operating funds for field and headquarters facilities and units as well
as unit-level maintenance. This is $8,300,000 (1.3 pecent) below the
administration's request and $40,777,000 (7.1 percent) above the level
provided for fiscal year 1997.
Governor's Island caretaker status. --The Committee bill includes a
reduction of the $8,300,000 proposed for the Coast Guard to maintain
Governor's Island in a ``caretaker'' status until the end of fiscal year
1998--even though Governor's Island will be closed operationally in
August 1997. The Committee does not believe that, given the tight
transportation budget this year, the Coast Guard should allocate scarce
funds to serve as ``caretaker'' for a facility they no longer operate
and from which they will get no operational benefit during fiscal year
1998. The Department of Transportation and other federal agencies pay
rent to the General Services Administration (GSA) for disposal of such
excess properties. Since this property has been identified for disposal
and is being prepared for sale by the GSA, the Committee believes the
Federal Buildings Fund should be utilized for maintaining the facility
in caretaker status until the disposal is accomplished.
Mackinaw. --The bill includes the $4,865,000 in requested funding
for continued operation and maintenance of the icebreaking cutter
Mackinaw during fiscal year 1998.
Maritime Fire and Safety Association.-- Of the funds provided, the
Coast Guard is directed to allocate $146,500 to continue fire fighter
training and equipment and oil spill response activities with the
Maritime Fire and Safety Association for the Columbia River area in
Oregon and Washington. This continues activities funded in past years.
Energy conservation audits. --The Committee believes the Coast Guard
can do more to lower its operating costs through greater energy
conservation practices. Therefore, the Committee recommends the Coast
Guard provide additional funding for its Civil Engineering Division to
contract for energy audits and surveys to be used for the implementation
of energy conservation projects. These energy savings and performance
contracts will help the Coast Guard reduce its base operations costs
through energy savings. Projects with a payback of five years or less
should be given the highest consideration. The Committee understands
that $400,000 is needed for such audits and surveys in fiscal year 1998.
Ballast water management program.-- The Committee directs that, of
the amount provided, $1,995,000 shall be allocated to implement the
nationwide ballast water management program, as authorized in the
National Invasive Species Act of 1996 (Public Law 104 332). This is the
amount included in the budget request.
DEPOT LEVEL MAINTENANCE
The Committee recommends $395,990,000 for depot level maintenance for
shore facilities, electronic equipment, cutters, boats and aircraft, the
same as the budget estimate and $20,685,000 (5.5 percent) above the
enacted level for fiscal year 1997.
account-wide adjustments
User fee offset, foreign flag cruise ships. --Although the Congress
authorized a user fee in 1996 to offset the Coast Guard's costs to
inspect and certify foreign flag cruise ships operating in U.S. waters,
the Coast Guard has not yet implemented such fees. This is in stark
contrast to the FAA, which began collecting overflight user fees
approximately six months after authorization. The Committee believes the
Coast Guard can implement a more rapid schedule for collecting these
authorized fees, and has assumed offsetting collections of $615,000 from
this source, rather than a direct appropriation. Bill language has been
included allowing these receipts to be considered offsetting collections
to this appropriation.
BILL LANGUAGE
Increase for drug interdiction activities. --The Committee bill
provides the requested increase of $34,300,000 for additional drug
interdiction activities of the Coast Guard, but withholds obligation of
those funds until the Director of the Office of National Drug Control
Policy (ONDCP): (1) reviews the Coast Guard's proposed activities; (2)
compares those activities to other drug interdiction activities
government-wide; and (3) certifies that such expenditures represent the
best investment relative to other options. The bill also provides the
ONDCP director the flexibility to transfer all or part of these funds to
other federal agencies for other drug interdiction activites, based on
his review and assessment.
The Committee continues to believe that the use of illegal drugs in
this country is a serious problem which requires additional resources.
However, based on testimony and other information received this year, it
is not clear whether or not additional resources should be placed in the
hands of the Coast Guard or in other federal drug interdiction programs.
The Committee makes the following observations in this regard:
1. Over the past two fiscal years, the Coast Guard has not utilized
all funds provided by the Congress for their drug interdiction
activities. Over those years, approximately $15,000,000 was used for
other activities.
2. Even with the requested increase in funding, Coast Guard cutter
and aircraft operating hours for drug enforcement activities would be
lower in fiscal year 1998 than in 1997, and there are indications these
additional operating hours would not be completely dedicated to drug
interdiction activities; and
3. The efficiency of the Coast Guard's drug interdiction effort
continues to decline, even with stronger cueing from intelligence assets
over the past few years.
Given these uncertainties, the Committee believes a validation and
review of the cost-effectiveness of this particular increase is
required.
Defense-related activities. --The bill specifies that $300,000,000
of the total amount provided is for defense-related activities, the same
as the budget estimate. Of the amount provided for defense-related
activities, $5,250,000 is only for miscellaneous equipment for the Coast
Guard Reserve, as included in the House-reported National Defense
Authorization Act of 1998. The Committee understands these funds will be
used to help establish two additional port security units.
Executive order 12839. --The bill specifies that the Commandant
shall reduce both military and civilian employment for the purpose of
complying with executive order 12839. This provision has been included
in the bill for several years without change.
Aircraft on hand.-- The bill limits the number of aircraft on hand
to not more than two hundred and twelve, compared to two hundred and
eighteen in fiscal year 1997 and two hundred and twenty-one in the
budget estimate. Subsequent to the budget request, the Coast Guard
indicated that a limitation of two hundred and twelve would be
sufficient for fiscal year 1998. A similar limitation has been in
appropriations Acts for several years.
Shipping commissioners.-- The bill retains a provision included in
appropriations Acts for several years which prohibits funds for pay or
administrative expenses of shipping commissioners.
Yacht documentation.-- The bill retains a provision included in
appropriations Acts for several years which prohibits funds for expenses
incurred for yacht documentation except to the extent that user fees are
collected for this purpose.
GENERAL PROVISION
Vessel traffic safety fairway, Santa Barbara/San Francisco. --The
bill continues as a general provision (sec. 313) language that would
prohibit funds to plan, finalize, or implement regulations that would
establish a vessel traffic safety fairway less than five miles wide
between the Santa Barbara traffic separation scheme and the San
Francisco traffic separation scheme. On April 27, 1989, the Department
published a notice of proposed rulemaking that would narrow the
originally proposed five-mile-wide fairway to two one-mile-wide fairways
separated by a two-mile-wide area where offshore oil rigs could be built
if Lease Sale 119 goes forward. Under this revised proposal, vessels
would be routed in close proximity to oil rigs because the two-mile-wide
non-fairway corridor could contain drilling rigs at the edge of the
fairways. The Committee is concerned that this rule, if implemented,
could increase the threat of offshore oil accidents off the California
coast. Accordingly, the bill continues the language prohibiting the
implementation of this regulation.
ACQUISITION, CONSTRUCTION, AND IMPROVEMENTS
Appropriation, fiscal year 1997 $374,840,000
Budget estimate, fiscal year 1998 379,000,000
Recommended in the bill 379,000,000
xlBill compared with:
Appropriation, fiscal year 1997 +4,160,000
Budget estimate, fiscal year 1998
The bill includes $379,000,000 for the capital acquisition,
construction, and improvement programs of the Coast Guard for vessels,
aircraft, other equipment, shore facilities, and related administrative
expenses, of which $20,000,000 is to be derived from the oil spill
liability trust fund.
Consistent with past practice, the bill also includes language
distributing the total appropriation by budget activity and providing
separate obligation availabilities appropriate for the type of activity
being performed. The Committee continues to believe that these
obligation availabilities provide fiscal discipline and reduce long-term
unobligated balances.
COMMITTEE RECOMMENDATION
The following table compares the fiscal year 1997 enacted level, the
fiscal year 1998 estimate, and the recommended level by program, project
and activity:
Offset Folios 219to 20 insert here
Vessels
The Committee recommends $191,650,000 for vessels, a reduction of
$24,850,000 below the amount provided for fiscal year 1997 and
$4,750,000 above the administration's request.
47-foot motor lifeboat replacement project .--The Committee
recommends $31,600,000, an increase of $10,000,000 above the budget
estimate and $5,600,000 (21.5 percent) above the amount provided for
fiscal year 1997. This will provide funding for an additional 10 boats
of this important vessel class, augmenting the Coast Guard's search and
rescue capability. The Committee believes this new capability will help
the Coast Guard more effectively respond in cases of extreme weather,
like the situation on February 12, 1997, in which three Coast Guardsmen
from Station Quillayute, Washington, perished while responding to a
distress call in a 44-foot motor lifeboat.
Polar icebreaker replacement follow-on .--The minor reduction of
$500,000 is based upon schedule delays in delivery of the Polar
icebreaker Healy, which permit a lower level of pre-commissioning
training during fiscal year 1998. This reduction is without prejudice to
the overall project.
Polar class icebreaker reliability improvement program .--The
reduction of $750,000 allows a smaller amount for contract change orders
than budgeted by the Coast Guard. In addition, the Committee recommends
a reduction of $2,000,000 to fund higher priority activities. The Coast
Guard indicates that these funds will not be required in fiscal year
1998.
Mackinaw replacement. --The Committee recommends $2,000,000 for
concept exploration to refine the specifications and costs for a heavy
icebreaking replacement vessel, including a new multi-mission vessel,
for the 53-year old Mackinaw. While the Committee is pleased that the
Commandant has committed to the continued operation of the Mackinaw to
maintain heavy icebreaking capabilities on the Great Lakes, the
Committee is concerned about the long lead time projected by the Coast
Guard to receive a replacement vehicle when the Coast Guard has been
studying this issue for a number of years, and projects that a
replacement vehicle would not be available until the year 2006 at the
earliest. The funding provided in the bill will prevent another year's
delay in the acquisition process for a replacement heavy icebreaking
vessel. The Committee expects the Coast Guard to issue an interim status
report on the concept exploration to the Committee by May 1, 1998.
Independent maritime response vessel (IMARV) .--The Committee
deletes the $2,000,000 requested for this project and directs the Coast
Guard to apply the unobligated balance of $2,000,000 in fiscal year 1996
funds to the deepwater capability concept exploration project,
effectively terminating the IMARV program. The IMARV program began
several years ago, as an effort to evaluate the cost-effectiveness of
Norwegian search and rescue crewing concepts in the United States. In
fiscal year 1996, the Congress appropriated $2,000,000 to procure two
IMARV boats. However, at this time the cost of each boat has doubled
from the original estimate, to $2,000,000 each. In addition, the Coast
Guard advised the Committee this year that no more than ten of these
vessels will be procured. The Committee believes it inadvisable to
continue with this program at the substantially higher procurement unit
cost, and questions whether the Coast Guard should be saddled with
maintaining another boat class in its inventory when such a small number
will be procured.
Deepwater capability concept exploration .--The reduction of
$2,000,000 is to be offset by the reprogramming of fiscal year 1996
IMARV funds into this account, providing total funding at the budget
request. In addition, the Committee has reduced the long range search
aircraft capability preservation project by $500,000. Those planned
activities can be financed with funds from the deepwater capability
concept exploration effort.
Aircraft
The Committee recommends $33,900,000 for aircraft, an increase of
$15,860,000 (88 percent) above the fiscal year 1997 enacted level and
$7,500,000 above the administration's request.
HC-130 aircraft sensor upgrade .--The Committee recommends total
funding of $13,800,000, including $11,800,000 in new budget authority
and $2,000,000 reprogrammed from fiscal year 1996 funding appropriated
for the C-130 SLAR project. Funding of $3,800,000 was included in the
budget request. The Committee believes an accelerated schedule for this
program is justified, given the Coast Guard's proposal to increase
anti-drug activities and the importance of nighttime surveillance to
that overall effort. This should be sufficient to outfit seven of the
Coast Guard's twelve C-130 aircraft with forward looking infrared radar
(FLIR) systems during fiscal year 1998.
Other Equipment
The Committee recommends $47,050,000 for other equipment, a reduction
of $2,650,000 (5 percent) below the budget estimate and $5,350,000 above
the fiscal year 1997 enacted level.
Ports and waterways safety system .--The Committee recommends
$5,500,000 for development and implementation of a new ports and
waterways safety system (PAWSS), as requested in the budget. Last year,
the Congress terminated the ``VTS 2000'' program and directed the Coast
Guard to take a streamlined and less costly approach to satisfy these
requirements. The Committee believes that the result of Coast Guard
activities to develop a new approach to navigation safety, in concert
with the maritime community, has been successful thus far. Working with
waterway
users, the Coast Guard has produced a plan for the use of
automated information system (AIS) technology. Such technology efforts
should reduce the complexity and cost of a vessel traffic service by
substantially reducing or eliminating the need for an extensive
shoreside Coast Guard infrastructure. The Committee believes that
successful implementation of the AIS approach will require Coast Guard
development of performance standards, testing at appropriate
high-intensity port areas, and continued dialogue with industry
stakeholders regarding AIS equipment and the most effective and
efficient manner to ensure the use of such systems in selected U.S.
ports.
Personnel management information system/joint uniform military pay
system .--The Committee recommends no funding for this program, a
reduction of $1,600,000 below the budget request. The Committee believes
further appropriations for this new accounting system can be deferred
until the Coast Guard makes a final decision on whether or not to
outsource this activity.
Local notice to mariners automation .--The Committee recommends
$750,000 for this project, a reduction of $1,050,000 from the budget
request. The Committee believes this can proceed at a slower pace due to
higher priority requirements. In addition, the Committee is not yet
convinced the Coast Guard has fully utilized the potential of collecting
user fees for local notice to mariners information, a past
recommendation of the Inspector General.
Shore Facilities and Aids to Navigation Facilities
The Committee recommends $59,400,000 for shore facilities and aids to
navigation facilities, a reduction of $9,600,000 from the budget
estimate and $7,050,000 (13 percent) above the fiscal year 1997 enacted
level.
Minor AC&I shore construction projects .--The Committee recommends
$6,600,000, a reduction of $1,400,000 from the budget request, but an
increase of 175 percent above the level provided in fiscal year 1997.
The reduction is due to budget constraints.
Group/Station New Orleans, LA-relocation .--The Committee recommends
$8,400,000 to relocate Group/Station New Orleans to Bucktown Harbor, an
increase of $4,200,000 above the budget estimate. The Committee believes
this project should proceed over one year in order to provide benefits
to the field sooner. The Coast Guard had proposed to finance the project
over two years. To expedite the required relocation, funds are provided
to complete both phases of the project. Additionally, the Committee is
concerned that the existing waterway at Bucktown Harbor may be
inadequate for safe and efficient current and future Coast Guard
operations. Therefore, the Committee directs that $3,000,000 of these
funds be used only to improve the condition of the waterway adjoining
the relocation site, including dredging, bulkhead repairs and bulkhead
replacement.
Omega termination cost .--The Committee recommendation transfers the
$6,700,000 budgeted for this activity to the Federal Aviation
Administration's ``Facilities and equipment'' appropriation. Two years
ago, the administration transferred the funding responsibility for Omega
from the Coast Guard to the FAA. Therefore, the Committee sees no
compelling reason to finance this singular project in the Coast Guard.
Bayonne, NJ pier construction .--The Coast Guard requested
$4,100,000 to relocate from the Marine Ocean Terminal Bayonne in New
Jersey because, according to the Coast Guard, ``this pier is a valuable
asset in attracting long-term commercial development to Bayonne''.
However, the Coast Guard could not offer a specific schedule specifying
when Coast Guard assets would need to be relocated, only stating that
they would be asked to relocate ``when commercial tenants are
identified''. Given higher priorities and the apparent lack of urgency,
the Committee recommends deferral of this project.
New London, CT-leadership development center .--The Committee
recommends a reduction of $1,600,000 in this project, and directs the
Coast Guard to utilize a corresponding amount in unobligated
streamlining funds from the fiscal year 1996 appropriation for this
project, to provide total funding at the requested level of $5,900,000.
Personnel and Related Support
The bill includes $47,000,000 for AC&I personnel and related support,
an increase of $750,000 (1.6 percent) above the fiscal year 1997 enacted
level, and the same as the budget estimate.
Quarterly acquisition reports .--The Coast Guard is directed to
continue submission of the quarterly acquisition reports to the House
and Senate Committees on Appropriations. The Coast Guard is to continue
including with each such report an up-to-date listing of unobligated
balances by acquisition project and by fiscal year, a Congressional
direction first implemented in fiscal year 1996.
BILL LANGUAGE
Disposal of real property .--The bill includes a provision first
enacted in fiscal year 1996 crediting to this appropriation proceeds
from the sale or lease of the Coast Guard's surplus real property. This
provision was requested in the President's budget. The bill allows asset
sale revenues to be credited to this appropriation as offsetting
collections, but limits the amount of offsetting collections in fiscal
year 1998 to $9,000,000, resulting in a corresponding savings in budget
authority. The Committee bill does not include the requested directed
scorekeeping language, since such language is outside the Committee's
jurisdiction and is opposed by the House Budget Committee, which has
jurisdiction over Congressional Budget Act matters.
ENVIRONMENTAL COMPLIANCE AND RESTORATION
Appropriation, fiscal year 1997 $ 22,000,000
Budget estimate, fiscal year 1998 21,000,000
Recommended in the bill 21,000,000
xlBill compared with:
Appropriation, fiscal year 1997 -1,000,000
Budget estimate, fiscal year 1998
This appropriation assists in bringing Coast Guard facilities into
compliance with applicable federal, state and environmental regulations;
conducting facilities response plans; developing pollution and hazardous
waste minimization strategies; conducting environmental assessments; and
conducting necessary program support. These funds permit the
continuation of a service-wide program to correct environmental
problems, such as major improvements of storage tanks containing
petroleum and regulated substances. The program focuses mainly on Coast
Guard facilities, but also includes third party sites where Coast Guard
activities have contributed to environmental problems.
The recommended funding level of $21,000,000 is the same as the
budget request, and $1,000,000 below the fiscal year 1997 enacted level.
ALTERATION OF BRIDGES
Appropriation, fiscal year 1997 $16,000,000
Budget estimate, fiscal year 1998
Recommended in the bill 16,000,000
xlBill compared with:
Appropriation, fiscal year 1997
Budget estimate, fiscal year 1998 +16,000,000
The bill includes funding for alteration of bridges deemed a hazard
to marine navigation pursuant to the Truman-Hobbs Act. The Committee
does not agree with the approach of the administration that obstructive
highway bridges and combination rail/highway bridges should be funded
out of the Federal Highway Administration's discretionary bridge
account. This approach is unfair to some states which, under existing
highway formulas,
have a more difficult time competing for discretionary bridge
grants and are therefore less likely to apply. In addition, the purpose
of altering these bridges is to improve the safety of marine navigation
under the bridge, not to improve surface transportation on the bridge
itself. Since in some cases, there are unsafe conditions on the waterway
beneath a bridge which has an adequate surface or structural condition,
Federal-aid highways funding is not appropriate to address the purpose
of the Truman-Hobbs program.
The Committee recommends $16,000,000 for two bridges which have been
funded in past years, including fiscal year 1997. Both of the bridges
for which funds are recommended are authorized and have been issued an
order to alter by the Commandant of the Coast Guard. The Committee
directs that, of the funds provided, $9,000,000 shall be allocated to
the Sidney Lanier highway bridge in Brunswick, Georgia; and $7,000,000
shall be allocated to the Florida Avenue railroad/highway combination
bridge in New Orleans, Louisiana.
RETIRED PAY
Appropriation, fiscal year 1997 $617,284,000
Budget estimate, fiscal year 1998 645,696,000
Recommended in the bill 645,696,000
xlBill compared with:
Appropriation, fiscal year 1997 +28,412,000
Budget estimate, fiscal year 1998
This appropriation provides for the retired pay of military personnel
of the Coast Guard and the Coast Guard Reserve. Also included are
payments to members of the former Lighthouse Service and beneficiaries
pursuant to the retired serviceman's family protection plan and survivor
benefit plan, as well as payments for medical care of retired personnel
and their dependents under the Dependents Medical Care Act.
The Committee has approved the budget estimate of $645,696,000 for
this appropriation in fiscal year 1998. This compares to an
appropriation of $617,284,000 for fiscal year 1997, an increase of 4.6
percent. This is scored as a mandatory appropriation in the
Congressional budget process.
RESERVE TRAINING
Appropriation, fiscal year 1997 $65,890,000
Budget estimate, fiscal year 1998 65,000,000
Recommended in the bill 67,000,000
xlBill compared with:
Appropriation, fiscal year 1997 +1,110,000
Budget estimate, fiscal year 1998 +2,000,000
This appropriation provides for the training of qualified individuals
who are available for active duty in time of war or national emergency
or to augment regular Coast Guard forces in the performance of peacetime
missions. Program activities fall into the following categories:
Initial training .--The direct costs of initial training for three
categories of non-prior service trainees.
Continued training .--The training of officer and enlisted personnel.
Operation and maintenance of training facilities .--The day-to-day
operation and maintenance of reserve training facilities.
Administration .--All administrative costs of the reserve forces
program.
The bill includes $67,000,000 for reserve training, an increase of
$1,110,000 (3 percent) above the fiscal year 1997 level. The
administration requested $65,000,000, a decrease of 3 percent.
Reimbursement to ``Operating expenses''. --The recommendation
includes a provision in the bill limiting to $20,000,000 the amount of
``Reserve training'' funds which may be transferred to ``Operating
expenses''. The budget estimated that $22,600,000 of the reserve
training appropriation would be transferred to the Coast Guard's
operating account to reimburse the Coast Guard for its support of the
reserves. Given the relatively small amount of the reserve training
appropriation and the declining size of the Selected Reserve, the
Committee wants to ensure the Reserves are not assessed excessive
charge-backs to the Coast Guard operating budget. The Committee believes
the proposed level of reimbursement may be too high, especially given
the substantial amount of reserve augmentation workhours provided by the
reserves in direct support of Coast Guard missions. In fiscal year 1998,
for example, the Coast Guard Reserves are expected to provide 1,095
staffyears in support of Coast Guard missions--2.7 percent of all Coast
Guard staff years. The Coast Guard's planned assessment to reimburse
their operating budget for reserve training activities does not
adequately consider this level of cross-support provided them by the
Coast Guard Reserve.
Recruiting. --Of the increase provided, $1,000,000 is to augment
recruiting activities of the Reserve. Coast Guard data presented to the
Committee this year indicate the Reserve is not meeting its recruiting
goals, and the percentage of recruits with prior military service is
falling well below the service's needs. This not only reduces the size
of the Reserve force, but raises costs, since recruits without prior
service experience require more training. In fiscal year 1997, the Coast
Guard estimated it would add 430 new recruits, compared to 227 in fiscal
year 1996. However, as of mid-March 1997, the Coast Guard had signed up
only 133 new reservists. In its June 17, 1997 report accompanying the
National Defense Authorization Act of 1998, the Senate Committee on
Armed Services noted this problem:
The committee is concerned that the Coast Guard
Reserve's end strength has fallen significantly below the
authorized and appropriated level for fiscal year 1996 and
remains so for fiscal year 1997. It is apparent that this end
strength shortfall stems from difficulties in recruiting Coast
Guard reservists . . . while the active duty Coast Guard
exceeded 100 percent of their [recruiting] goals, only 65
percent of those needed were recruited for the reserve force
in fiscal year 1996 . . . Finally, the committee notes that
the Coast Guard has not applied the various bonus programs
that currently exist in law to recruit reservists up to
authorized and appropriated end strengths.
To address these concerns, the Committee's recommendation includes an
additional $1,000,000 for Reserve recruiting, raising funding for this
activity from $2,066,000 to $3,066,000.
RESEARCH, DEVELOPMENT, TEST, AND EVALUATION
Appropriation, fiscal year 1997 $ 19,200,000
Budget estimate, fiscal year 1998 19,000,000
Recommended in the bill 19,000,000
xlBill compared with:
Appropriation, fiscal year 1997 -200,000
Budget estimate, fiscal year 1998
The bill includes $19,000,000 for applied scientific research and
development, test and evaluation projects necessary to maintain and
expand the technology required for the Coast Guard's operational and
regulatory missions. Of this amount, $3,500,000 is to be derived from
the oil spill liability trust fund. This is the same as the budget
request and $200,000 less than the amount provided last year.
BOAT SAFETY
(aquatic resources trust fund)
Appropriation, fiscal year 1997 $35,000,000
Budget estimate, fiscal year 1998 \1\
Recommended in the bill 35,000,000
xlBill compared with:
Appropriation, fiscal year 1997
Budget estimate, fiscal year 1998 +35,000,000
\1\President's budget requests $50,000,000 in mandatory appropriations in fiscal year 1998.
The Internal Revenue Code of 1954, as amended, and the Federal Boat
Safety Act of 1971, as amended, provide for the transfer of highway
trust fund revenue derived from the motor boat fuel tax, excise taxes on
sport fishing equipment, and import duties on fishing tackle and yachts
to the aquatic resources trust fund. The Secretary of the Treasury
estimates the amounts to be so transferred and appropriations are
authorized from the fund for recreational boating safety assistance and
other programs by the Federal Boat Safety Act of 1971 and Public Law
98-369 (the Deficit Reduction Act of 1984). These funds are used
primarily to provide grants to states to help enforce boating safety
laws and to expand boating education programs.
The bill includes an appropriation of $35,000,000 for the boat safety
program. When combined with an additional $20,000,000 in permanent
indefinite appropriations from the Clean Vessel Act of 1992 (Public Law
102 587), total program funding of $55,000,000 is provided for fiscal
year 1998. This is a $10,000,000 (22.2 percent) increase over the fiscal
year 1997 level. This program provides between 15 and 20 percent of
total boating safety expenditures when state and federal resources are
combined.
Once again this year, the Committee cannot support the Coast Guard's
proposal to convert this program to mandatory spending. According to the
National Transportation Safety Board, recreational boating accidents
result in the highest number of transportation fatalities annually after
highway accidents. Over 900 people are killed each year in boating
accidents, and over 350,000 are injured, more than 40 percent of which
require treatment beyond first aid. The number of boats, especially high
speed boats, is increasing each year. The Safety Board still includes
boating safety on their list of ``most wanted'' safety improvements.
Annual Congressional review and direction will be needed to ensure
implementation of initiatives raised in the Safety Board's earlier study
as well as to continue other boating safety activities.
Loss of authorized funding. --The Coast Guard has stated a concern
that unless the boating safety program is funded at the authorized
level, those resources are lost forever, because a provision in the
authorization statute requires they be automatically reallocated to the
sport fish restoration program and spent in the same fiscal year. The
Committee acknowledges that this feature of the boating safety grant
program is unlike the financing of other trust fund safety programs. In
those cases, as with general fund authorizations, funds not appropriated
remain authorized for appropriation in a future fiscal year. The
Committee notes that the boating safety program is up for
reauthorization in fiscal year 1998, and encourages the department and
the Coast Guard to support elimination of this provision in the statute.
Such a change would prevent the diversion of funds intended for boating
safety programs to sport fishing activities.
Discretionary grant program. --At the present time, all boating
safety grant funds for this program are distributed by formula. Perhaps
because of this, the Coast Guard is not active in facilitating the use
of grant funds to provide incentives for poorer-performing states to
make improvements in their boating programs. This is in contrast to the
Federal Highway Administration, National Highway Traffic Safety
Administration, Federal Transit Administration, and the Federal Aviation
Administration, all of which use their discretionary grants programs to
facilitate improvements in safety or capacity. The Committee believes it
is time for the Coast Guard to take a more active role in promoting and
shaping improvements in boating safety in the various states. The
boating public looks to the Coast Guard for leadership in boating
safety, and this is one way the Coast Guard can demonstrate that
leadership. The Committee encourages the Coast Guard to work with the
appropriate legislative committees of the Congress to support
authorization of a discretionary grants component of this overall
program.
FEDERAL AVIATION ADMINISTRATION
SUMMARY OF FISCAL YEAR 1998 PROGRAM
The Federal Aviation Administration (FAA) is responsible for the
safety and development of civil aviation and the evolution of a national
system of airports. Most of the activities of the FAA will be funded
with direct appropriations in fiscal year 1998. The grants-in-aid for
airports program, however, will be financed under contract authority
with the program level established by a limitation on obligations
contained in the accompanying bill. The bill assumes continuation of the
aviation ticket tax and other related aviation excise taxes throughout
fiscal year 1998 and assumes no new user fees.
The total recommended program level for the FAA for fiscal year 1998
amounts to $9,060,000,000, including a $1,700,000,000 limitation on the
use of contract authority. This is $648,900,000 (7.7 percent) above the
President's request and $794,088,000 (9.6 percent) above the fiscal year
1997 enacted level for similar, non-emergency activities. The following
table summarizes the fiscal year 1997 program levels, the fiscal year
1998 program requests, and the Committee's recommendations:
Program fiscal year--
1997 enacted 1998 estimate 1998 recommended
Operations\1\ $4,900,000,000 $5,361,100,000 $5,300,000,000
Facilities and equipment\2\ 1,790,000,000 1,875,000,000 1,875,000,000
Research, engineering and development\3\ 187,412,000 200,000,000 185,000,000
Grants-in-aid for airports (AIP) 1,460,000,000 1,000,000,000 1,700,000,000
---------------- ---------------- ------------------
Total 8,262,412,000 8,411,100,000 9,060,000,000
\1\Excludes $57,900,000 in emergency appropriations contained in Public Law 104 208.
\2\Excludes $147,700,000 in emergency appropriations contained in Public Law 104 208.
\3\Excludes $21,000,000 in emergency appropriations in Public Law 104 208.
STATUS OF THE AIRPORT AND AIRWAY TRUST FUND
The Committee has long endeavored to match aviation trust fund
spending with revenues coming into the fund. This was increasingly
difficult over the 1994 1996 time period, due to Congressional caps on
the amount of FAA funding which could be taken from the trust fund.
Despite this, however, the Committee continues to believe that Congress
should work to ensure that the aviation trust fund does not build up
large balances of unobligated funds, and that the fund should be used to
finance approximately 85 percent of the FAA's overall budget. Because
the legislative ceiling places a priority on trust fund spending for
capital programs, the Committee's recommendation to increase capital
spending is expected to reduce any possible balance in the aviation
trust fund.
NATIONAL CIVIL AVIATION REVIEW COMMISSION
On July 19, 1996, the House Committee on Appropriations proposed the
establishment of a National Civil Aviation Review Commission (NCARC).
The Committee's intent in this proposal was to provide ``a
comprehensive, independent review of FAA safety oversight, financial
prospects and options, and acquisition policy''. Establishment of this
commission was later included in the FAA Reauthorization Act of 1996,
and an appropriation of $2,400,000 was provided in the DOT and Related
Agencies Appropriations Act, 1997. The commission is expected to report
its findings in September 1997.
The Committee believes the work of this high-level commission could
be of significant value to the Congress as new directions are being set
for aviation policy in the coming years. However, the Committee wishes
to emphasize to the commission that its recommendations regarding safety
oversight and improvement should be considered of equal importance to
financing and airport development issues. It should be clear from last
year's Committee report that a review of safety is of the utmost
importance. Secondly, the Committee believes the legislative history and
charter for the commission does not require development of a new
financing system for the FAA, as some have suggested, but an independent
review of all options--including the benefits of the current excise tax
system. The Committee looks forward to receiving the work of the
commission later this year.
In following up on the work of the National Civil Aviation Review
Commission over the coming months, and to help restore the credibility
and effectiveness of the agency, the Committee encourages the new
Administrator to establish an informal working group composed of former
FAA Administrators to advise her and the Secretary of Transportation
regarding the future direction and needed policies of the agency. The
Committee believes the views of these former executives could be
invaluable in helping shape the agency's future.
The Committee wishes to emphasize to the new Administrator, the
Secretary, and this working group that the highest priorities for their
immediate attention and review are matters related to aviation safety.
The Committee believes that safety must be given the highest priority in
both the department and the agency to address known and potential
problems.
ADDITIONAL FUNDS FOR SAFETY AND CAPACITY ENHANCEMENT
PROGRAMS
The bill includes a total of $175,044,000, above the budget estimate,
for new air traffic control equipment and systems, site preparation and
installation, and research to improve aviation safety and airway
capacity around the country. This represents 8.5 percent of total ATC
modernization funding.
Once again this year, in setting priorities for this bill the
Committee has placed the strongest emphasis on maintaining, and
improving wherever possible, transportation safety around the nation.
This is especially true in aviation due to heightened public concern
raised last year. The Committee feels strongly that additional funding
emphasis should be placed on new safety-related capabilities and
equipment, and is disturbed with FAA proposals to reduce funding for
safety equipment and research. In some areas the FAA has even suggested
that the agency might abandon its responsibility for certain systems
altogether, leaving it to aviation industries and airports industries to
finance the acquisition of such equipment rather than the FAA. At the
same time, the agency's budget includes many low priority, non-safety
items as well as funding for an organizational structure which a recent
independent financial assessment called inefficient. The Committee has
re-prioritized funding for individual capital programs, in order to
place a higher emphasis on safety--the FAA's major mission area.
The Committee also notes that over the past year the FAA has been
less than diligent in meeting the Committee's direction to pursue
Congressional safety improvements ``aggressively as a high priority''.
In some cases, the agency has inappropriately used fiscal year 1997
funds for unapproved activities; in other cases, the agency has taken an
excessive amount of time to obligate funds. The Committee will monitor
this situation intently, and reiterates its expectation that the agency
execute these programs in an aggressive manner.
AGENCY CULTURE AND THE NEED FOR STABLE LEADERSHIP
The Committee is concerned over the effects of a lack of stable,
long-term leadership at the FAA and, as a result, the development of an
agency culture which is resistant to change, defensive, and
turf-conscious. Without stable leadership at the top of the
organization, lower level agency officials make their own decisions
without effective coordination or accountability. Each FAA ``line of
business'' is now making its own decisions, fighting over its own turf,
and when poor decisions are made, attempts are often made to cover up
the problems or ignore them. Over the past few years, this has been most
pronounced in the areas of acquisition and development as well as
regulation and certification. Last year, at the request of this
Committee the General Accounting Office completed an exhaustive analysis
of the FAA's acquisition culture, to determine whether cultural
influences were causing some of the agency's longstanding problems. They
found that often FAA's acquisition staff emphasized self-interest over
the agency's mission; established unrealistic cost and schedule
estimates in order to ``sell'' new programs to their superiors; hid bad
news from those higher in the organization; did not cooperate with other
FAA employees; and did not take responsibility for their actions.
Inspector General audits and investigative reports document aspects of
this culture and its effects on the agency's programs. The former
Inspector General even took the unusual step of advising the FAA
Administrator last year of a ``troubling culture'' at the agency, where
managers were not being held accountable for their errors. She warned,
``until senior FAA management is willing to send a different message, I
suspect that the pattern of abuse we identified will, unfortunately,
continue''.
The FAA does not have a funding crisis. They have a crisis of
management and leadership. Over many years, an organizational culture
has developed which is secretive rather than open; self-interested
rather than public spirited; and highly resistant to change. Given such
a situation, the Committee is very encouraged that the FAA may have new,
appointed leadership soon. The Committee believes it is imperative for
the new administrator to place a high priority on gaining effective
control of the agency and restoring morale, openness, and overall
credibility to the Congress and the traveling public.
OPERATIONS
(Including Airport and Airway Trust Fund)
Appropriation, fiscal year 1997 \1\$4,900,000,000
Budget estimate, fiscal year 1998 \2\5,336,100,000
Recommended in the bill 5,300,000,000
xlBill compared with:
Appropriation, fiscal year 1997 +400,000,000
Budget estimate, fiscal year 1998 -36,100,000
\1\Excludes $2,811,301 in TASC reductions and $176,888 in reductions for bonuses and awards.
Also excludes $57,900,000 in emergency appropriations provided in Public Law 104 208.
\2\Includes $300,000,000 appropriation of user fees.
This appropriation provides funds for the operation, maintenance,
communications, and logistical support of the air traffic control and
air navigation systems. It also covers administrative and managerial
costs of the FAA's regulatory, airports, medical, engineering and
development programs.
The operations appropriation includes the following major activities:
(1) operation on a 24-hour daily basis of a national air traffic control
system; (2) establishment and maintenance of a national system of aids
to navigation; (3) establishment and surveillance of civil air
regulations to assure safety in aviation; (4) development of standards,
rules and regulations governing the physical fitness of airmen as well
as the administration of an aviation medical research program; (5)
administration of the acquisition, research and development programs;
(6) administration of the civil aviation security program; (7)
headquarters, administration and other staff offices; and (8)
administration of the federal grants-in-aid program for airport
construction.
Committee Recommendation
The Committee recommends $5,300,000,000 for FAA operations, an
increase of $400,000,000 (8.2 percent) above the level provided for
fiscal year 1997. This compares to a level of $5,336,100,000 in the
President's budget request (including user fee proposals). Of the level
provided, $3,425,000,000 shall be derived from the aviation trust fund,
as requested. In addition, the FAA will receive a $50,000,000 permanent
user fee appropriation from overflight fees, bringing the total
operating increase to 9.2 percent during fiscal year 1998. The
recommendation fully funds the request for 500 additional air traffic
controllers and 326 additional aviation safety inspectors and other
safety oversight personnel.
A breakdown of the fiscal year 1997 enacted level, the fiscal year
1998 budget estimate, and the Committee recommendation by budget
activity follows:
Budget activity Fiscal year--
1997 enacted 1998 estimate 1998
recommended
Air traffic services $3,801,353,000 $4,192,516,000
$4,171,707,000
Aviation regulation and certification 501,921,000 613,768,000
613,768,000
Civil aviation security 114,360,000 98,651,000
98,154,000
Administration of airports 45,051,000 48,052,000
48,052,000
Research and acquisition 85,767,000 92,858,000
92,858,000
Commercial space transportation 6,040,000 6,182,000
6,182,000
Administration 330,044,000 262,143,000
258,491,000
Staff offices 70,376,000 71,930,000 69,925,000
Account-wide adjustments -9,137,000
Adjustments (e.g., emergency appropriations, general reductions) -54,912,000
---------------- ---------------- ------------------
Total budget 4,900,000,000 5,386,100,000
5,350,000,000
================ ================
==================
User fee appropriation (mandatory) 50,000,000
50,000,000
Appropriation in this bill 5,336,100,000 5,300,000,000
---------------- ---------------- ------------------
Total available funding 5,386,100,000
5,350,000,000
A summary of recommended adjustments to the budget estimate is as
follows:
Amount
Air Traffic Services:
-$6,000,000
-2,625,000
-3,659,000
-6,200,000
-2,325,000
+1,500,000
-1,500,000
Civil Aviation Security:
-497,000
Administration:
-1,852,000
-1,800,000
Staff Offices:
-1,825,000
-180,000
Account-wide Adjustments:
-5,900,000
-2,875,000
-120,000
-242,000
-36,100,000
FAA FUNDING SITUATION
Over the past three years, the Department of Transportation and the
FAA have suggested that the Congressional budget process might be unable
to provide funding for the FAA's true needs over the 1997 2002 time
frame. In response to this and other concerns, Congress called for an
independent assessment of FAA's long-term finances last year.
The independent assessment of FAA's financial situation concluded that:
(1) With little or no change in FAA's operations, the agency's
estimate of their long-term funding requirement is reasonable; and
(2) Significant opportunities for cost savings and efficiencies
exist in the FAA today, and should be taken advantage of.
After reviewing this report and other information submitted by the
FAA, the Committee does not believe the Congressional budget process is
inherently or structurally incapable of providing adequate resources for
the FAA. The resources in this bill confirm that the Congress can
provide significantly increasing resources for the FAA, even as
continued progress is made toward eliminating the federal deficit. In
this bill, appropriations for FAA's air traffic operations increase
approximately 10 percent--far beyond the estimated rate of increase in
aviation activity. Grants for improvements at our nation's airports are
increased by 16 percent, and 70 percent above the administration's
request. Funding for FAA air traffic control capital programs are above
the fiscal year 1997 level as well.
In recommending such a large percentage increase in the agency's
operating budget, the Committee hopes the FAA will leverage this
increase by making structural and process changes in the agency to
improve productivity and reduce waste, as suggested in the independent
assessment. The independent assessment concluded that even a 10 percent
improvement in air traffic productivity would save the agency
$21,000,000 a year in operating costs, and recommended the FAA
Administrator mandate that FAA's Productivity Working Group establish
specific goals and expectations in this area. They noted ``air traffic
control operations costs continue to increase faster than the demand for
FAA air traffic control services''. The head of FAA's Air Traffic
Service even said the following before the Committee this year: ``Are
there things that we can do to improve the productivity? Absolutely''.
However, currently the FAA's budget assumes no air traffic control
productivity improvements in the 1998 2000 time period, while projecting
large workforce growth over those years.
Similarly, the independent assessment of FAA concluded ``the
potential for efficiency savings through the realignment of the FAA,
both at the headquarters and the regional level, is significant''. The
Acting IG testified before the Committee ``there are a lot of
opportunities for them [the FAA] to reduce their operating costs''. The
Acting Administrator even testified, ``I would agree that there are
certainly opportunities for savings by taking a look at the overhead
costs * * * certainly there are opportunities there, yes''. The head of
air traffic added, ``I have worked for the FAA for 24 years now, and for
all of those years it has been clear to me that there are enormous
efficiencies that we could gain through looking at our regional
structure''.
The Committee will do its part--and the FAA should match that by
aggressively eliminating inefficiencies and waste, by streamlining and
consolidating its organizational structure, and by improving
productivity.
USER FEES
The bill assumes the collection of no additional user fees in fiscal
year 1998 that were not in effect during fiscal year 1997 and includes a
provision prohibiting funds in this Act from being used to plan or
promulgate any regulation to institute any new user fee not specifically
authorized by law after the date of enactment of this Act. The bill
assumes the FAA will collect approximately $100,000,000 during fiscal
year 1998 from overflight user fees, and that $50,000,000 of that amount
will be used to finance the essential air service and rural airport
programs, as authorized last year.
The Committee has not approved the FAA's proposed appropriation of
$300,000,000 in new user fees, but instead provides those funds as a
direct appropriation. Although the FAA testified this year that such
fees would be ``a reasonable and proactive step towards ensuring a
reliable revenue stream'', the agency later offered testimony indicating
the unreliability of such fee collections. The Acting Administrator
stated, ``The $300,000,000 translates roughly into about 4,000 jobs, so
to the extent that we do not have all of the $300,000,000, we would be
looking at a budget shortfall certainly, and then we would have to start
making the hard decisions''. The Committee believes the FAA provides
critical safety services to the traveling public. Subjecting the
provision of these services to the uncertainties of user fee
collections, possible court injunctions, and legislative exemptions for
one class of user or another would lead to a financing nightmare for the
agency and for the traveling public.
There are other concerns with the user fee proposal as well: (1) at
least one of the proposed fees does not appear to meet existing criteria
that such fees be directly related to the service performed by the
agency; (2) the agency itself did not request such a rapid imposition of
fees, but was directed to do so by higher authorities in the
administration; (3) the agency's cost accounting system is unable to
reasonably assure that fees collected will be related to specific
services provided; (4) the theory behind the fee proposal is based, in
part, on the industry's willingness to pay, which raises concerns about
fairness in a monopoly service such as air traffic control; (5) the FAA
does not track all staffing at the facility level, which raises
questions about their ability to properly assign costs to airway system
users; and (6) such a financing arrangement would set a wide-ranging
precedent visible to other federal agencies whose ultimate effect on the
provision of government services is unknown.
In summary, the Committee is unclear whether enactment of the user
fee proposal would serve the purpose of efficiency in government.
Therefore, the Committee cannot support the FAA user fee proposal.
The Committee's specific recommendations by budget activity are
discussed below.
AIR TRAFFIC SERVICES
The Committee recommends $4,171,707,000 for air traffic services, an
increase of $370,354,000 (9.7 percent) above the fiscal year 1997
enacted level. The recommendation provides a net increase of 500 air
traffic controller positions and 607 additional staffyears. The
recommendation also provides an increase of $85,588,000 (10.4 percent)
in field maintenance. The Committee believes substantial increases are
needed as air traffic activity continues to increase, and as FAA
struggles to maintain both old and modernized air traffic control
systems simultaneously.
The following chart compares the 9.7 percent increase in the bill for
air traffic service funding to the projected percentage increases in
several commonly used measures of aviation activity. As the chart
indicates, the FAA's air traffic budget will rise in fiscal year 1998 at
a substantially greater rate than aviation activity. The Committee
believes this ensures adequate resources to accommodate rising air
travel, provides a margin for future traffic growth, and provides
increased resources for technical training of air traffic controllers
and other personnel.
Measure Fiscal year-- Percent change
1997 1998
Air traffic services budget $3,801,353,000 $4,171,707,000 +9.7
IFR aircraft handled at centers 40,900,000 41,800,000 +2.2
IFR operations at airports 46,800,000 47,400,000 +1.3
VFR operations at airports 6,000,000 4,700,000 -21.6
Operations per center controller 5,298 5,180 -2.2
Flight services per employee 9,841 9,932 +0.9
Operational errors.-- The Committee is pleased that both the number
and rate of operational errors among air traffic controllers at en route
centers continued to decrease in fiscal year 1996, after increasing in
the 1992 1994 time period. While most facilities showed declines in
their error rates, the FAA is encouraged to investigate thoroughly the
causes for error at those facilities which showed error rate increases
during fiscal year 1996 and thus far in fiscal year 1997. The Committee
will monitor this situation to ensure that a high and consistent level
of safety is maintained over the entire country.
Adjustments to the budget estimate are as follows:
Hazardous materials (HAZMAT)/safety. --The FAA proposed a $6,000,000
(240 percent) increase to raise the level of effort in a project titled
``HAZMAT/safety''. However, according to budget justification material,
this should more appropriately be classified as environmental and
OSHA-related work. For example, the budget includes $1,000,000 to train
FAA personnel in the proper application of herbicides and pesticides and
$600,000 for travel, to help FAA field personnel better understand
energy conservation techniques. While the Committee has no objection to
this type of activities per se, given budget constraints it is hard to
justify a 240 percent increase. The Committee recommendation holds these
activities to the fiscal year 1997 level, a reduction of $6,000,000 from
the budget estimate.
Air traffic system requirements service. --The recommendation
reduces funding for this office by $2,625,000. The Committee believes
this relatively new office of 209 staff is unusually top-heavy and has a
large number of vacant positions. The recommendation eliminates the 26
positions currently vacant and assumes that positions vacated during the
year would not be backfilled. This results in savings of 35 positions, a
reduction in staffing of 16.7 percent.
Contract maintenance. --The Committee continues to believe that the
FAA could be more efficient with its scarce resources if in-house
maintenance personnel were utilized to a greater percent, relative to
contract maintenance. The President's budget proposed an increase of
$24,396,000 (21 percent) in contract maintenance. The Committee bill
assumes a fifteen percent savings in this work if conducted in-house, a
savings of $3,659,000 from the budget estimate.
Leased telecommunications.-- The Committee's proposed reduction of
$6,200,000 reflects the fact that FAA has not utilized all of the
appropriation for this activity in either of the past two fiscal years,
yet is requesting a 5.2 percent increase in such expenses for fiscal
year 1998. The recommendation allows an increase of 3 percent.
Associate administrator for air traffic services, headquarters
staffing.-- The Committee recommends a reduction of $2,325,000 for this
office, to be allocated as follows:
Office Budgeted FTE Recommended FTE Difference
Director's office 18 14 -4
Air traffic plans and requirements 86 75 -11
Director of airways facilities 46 35 -11
NAS transition office 30 25 -5
The Committee has endeavored, wherever possible, to find savings in
administrative areas in order to fully support the requested increases
in safety-related positions. The Committee believes the agency can
accommodate these small reductions in headquarters without impact on the
provision of services to the public.
Mid-America aviation resource consortium.-- The Committee expects
the FAA to continue the agency's commitment to the Mid-America Aviation
Resource Consortium (MARC) in Minnesota, and has included $1,500,000 in
the bill for this purpose. These funds are to be used in Minnesota to
support the air traffic controller training program, to continue
research and curriculum development for the FAA, to follow up on MARC
graduates, and to develop other materials as needed for FAA-related
projects. The Committee also directs the FAA to continue the current
contractual relationship with MARC, as prescribed by law. The Committee
continues to be concerned about the FAA's ability to develop an
effective, long-term plan for training en route controllers and
determining controller staffing needs. MARC has a successful record in
placing its graduates directly in the field, and the Committee both
supports and encourages this cost-effective manner of training.
Permanent change of station moves, air traffic.-- The Committee
recommendation allows $14,200,000 compared to the budget request of
$15,700,000. The recommendation allows an increase of 446 percent above
the level estimated for fiscal year 1997 compared to a 504 percent
increase assumed in the budget estimate.
Cherry Capital Airport study, Michigan.-- The Committee understands
that the FAA prepared in 1994 and in 1996 studies of the operations at
the Cherry Capital Airport in Michigan that produced significantly
different estimates of the costs and benefits of installing radar
equipment at the airport. The Committee directs the General Accounting
Office to review the FAA's 1994 and 1996 ASR Critical Values studies on
Cherry Capital Airport, and to report to the House and Senate Committees
on Appropriations within thirty days on the validity of the FAA's
estimates of forecasted operations at the airport, and the costs and
benefits of installing improved radar equipment at that site.
National weather service staff at en route centers.-- The Committee
recommendation includes $8,374,000 to retain the services of National
Weather Service personnel at FAA en route centers, an increase over the
$8,052,000 provided for fiscal year 1997. This is the same as the budget
request.
Sick leave.-- The Committee notes that the controller workforce
consumes sick leave at a rate approximately 25 percent higher than the
government-wide average and 48 percent higher than the rest of the FAA.
The average controller consumes 11.1 days per year of sick leave,
compared to an aviation safety inspector, who consumes 5.9 days. The
Committee encourages the FAA to investigate the causes of these
differences and consider innovative ways to reduce sick leave
consumption, such as leave pooling, without undermining the legitimate
needs of its workforce.
ATC staffing needs.-- The Committee is concerned about a recent
finding of the General Accounting Office that the FAA may be overstating
its true needs for air traffic controllers in future years. This appears
to confirm a
finding of the independent assessment that there is a ``high
likelihood'' FAA has overstated its future air traffic workload. Given
the significant budgetary impact of findings in this area and the need
to ensure adequate staffing for air traffic control facilities, the
Committee urges the FAA to analyze these concerns and ensure that future
staffing requests are fully justified.
Aviation Regulation And Certification
The Committee recommends $613,768,000 for aviation regulation and
certification, the same as the budget request and an increase of
$111,847,000 (22.3 percent) above the fiscal year 1997 enacted level.
The recommendation funds 5,882 staff years, an increase of 481 (8.9
percent) above fiscal year 1997. The bill fully funds all requested
position increases, including airworthiness inspectors (+117), airline
operations inspectors (+118), safety-related technical support staff
(+68), and manufacturing certification inspectors (+6). The Committee
agrees that this additional staffing is needed, even considering the
significant increases in staffing provided over the past three years.
Certification of commercial cargo aircraft.-- The Committee is aware
of efforts to introduce certain commercial cargo aircraft into the
heavy, outsize transportation market. The Committee recommends that all
regulatory efforts be made to support the employment of such aircraft's
full range of capabilities which have commercial market value. Because
this technology is different from other commercial transport aircraft,
the Committee acknowledges that new and different standards must be
developed. FAA has agreed to use, as much as possible, the data
generated by the Air Force during its testing of the C 17 and to allow
approval of such data by FAA designated engineering representatives. The
Committee recognizes the FAA's efforts in this program, and urges the
FAA to continue this innovative thinking when certification and
operational issues arise during the certification process.
Safety performance analysis system (SPAS).-- The Committee is
concerned that FAA may not realize the full safety potential of the
safety performance analysis system (SPAS) if the data in such system
were subject to Freedom of Information Act (FOIA) requests. While the
Committee is normally supportive of FOIA, in this case the provision of
such sensitive data directly to the public could undermine the
willingness of FAA safety inspectors to make and record professional
judgments on safety matters related to specific air carriers. The FAA
testified before the Committee this year that ``if critical
company-specific safety data is released under FOIA, inspectors would be
inhibited from providing information about a potential problem . . .
Since the purpose of SPAS is to identify potential safety problems and
trends in advance of more serious incidents, the resulting loss of this
(expert opinion) data would inhibit the usefulness of SPAS''. This issue
will soon reach a critical point, since the upgraded version of SPAS
(SPAS II) will begin wide-scale deployment to the field in fiscal year
1998. The administration is urged to address this concern expeditiously
in a manner which most fully supports aviation safety.
Civil Aviation Security
The Committee recommends $98,154,000 for civil aviation security, a
reduction of $497,000 from the budget estimate. The recommendation
assumes program savings based on recent recommendations of the DOT
Inspector General regarding overtime policy and staffing for the federal
air marshall program. The recommendation funds approximately 1,109 staff
years, an increase of 264 (31.2 percent) above the fiscal year 1997
staffing estimate.
Baggage screener qualifications and compensation.-- The Committee is
concerned over testimony received this year showing the high turnover
rate and low pay of baggage screener personnel at our nation's airports.
As the FAA's head of Civil Aviation Security said, ``Pay is related to
turnover and the turnover rate of screeners in the U.S. is too high''.
Data submitted by the FAA indicates the average annual turnover rate at
high-threat airports for baggage screeners is over 140 percent. The
starting wage for many of these personnel is below that of personnel at
fast food restaurants or airport janitorial staff. While it is not clear
whether this has a direct link to airport security, in most industries
there is an assumption that higher compensation generally results in
higher performance. The Committee is concerned that this may be a
limiting factor in our ability to continue raising the level of security
at airports, and could especially limit the effectiveness of advanced
technology explosive detection machines. The Committee applauds the
recent initiative to determine minimum qualifications for baggage
screener
personnel, and encourages the FAA to evaluate the impact of
low pay and high turnover on airport security in its future actions in
this area.
Security classification.-- The final report of the White House
Commission on Aviation Security and Safety states that the Federal
Government should consider aviation security as a national security
issue. Executive Order 12958 specifies that information which reveals
``vulnerabilities or capabilities of systems, installations, projects or
plans relating to the national security'' may be considered appropriate
for protection by classification procedures. It would appear that
certain sensitive information concerning systems in place to protect
U.S. civil aviation against acts of terrorism falls within this scope,
since the purpose of those systems is to protect U.S. citizens who, when
traveling on commercial airliners, are at risk of being targeted because
of their (and the airliners') nationality. Particularly in light of the
White House Commission's finding, the Committee encourages the
administration to explicitly recognize those cases where ``civil
aviation security'' information falls within the definition of
``national security'' for the purposes of security classification and to
advise the Congress of any proposals in this area.
Administration of Airports
The Committee recommends $48,052,000 for administration of the FAA
airports program, an increase of $3,001,000 (6.7 percent) above the
fiscal year 1997 enacted level and the same as the budget request.
Research And Acquisition
The Committee recommends $92,858,000 for research and acquisition,
the same as the budget request. The recommendation represents an
increase of $7,091,000 (8.3 percent). This activity finances the
planning, management, and coordination of FAA's research and acquisition
programs.
Commercial Space Transportation
The Committee recommends $6,182,000 for the Office of Commercial
Space Transportation (OCST), the same as the budget request. The fiscal
year 1997 enacted level for this office was $6,040,000. The bill
specifies that no funding for this office may be derived from the
airport and airway trust fund. This provision has been carried in the
bill for several years.
Administration
The Committee recommends $258,491,000 for administration, a reduction
of $3,652,000 from the budget estimate. Specific adjustments to the
budget estimate are discussed below.
Executive staff.-- The Committee recommends a reduction of
$1,852,000 for administration's executive staff. The Committee notes
that staffyears have risen in this office from 77 in fiscal year 1996
and 90 in fiscal year 1997 to a proposed level of 94 in fiscal year
1998. In September 1996, the actual staffing on board was 78. The
Committee does not agree that this administrative branch of the FAA
should be growing, and consequently recommends an allowance sufficient
to fund 78 positions rather than the 94 requested.
Business and information consultation.-- The Committee believes that
much of this management analysis activity should be devolved to the
individual lines of business, given FAA's overall strategy of holding
the lines of business accountable for their performance. Therefore, the
Committee recommends a reduction of $1,800,000 and assumes that the
individual lines of business will absorb necessary costs within their
overall totals.
WINGS.-- The Committee directs that no funds may be used in fiscal
year 1998 to develop the proposed new personnel and payroll system known
as WINGS. The Committee is unclear at this time how the overall project
will be financed within the agency's budget. Further justification is
required before this project should proceed.
Staff Offices
The Committee recommends $69,925,000 for certain headquarters staff
offices funded in this budget activity, a reduction of $2,005,000 (2.8
percent) from the budget estimate. Specific adjustments to the
President's budget are discussed below.
Staffing.-- Many offices in this budget activity are now showing
staffyear increases since fiscal year 1996, although the initial budget
requests assumed decreases. During fiscal year 1996, for example, the
FAA added 23 staff years to these offices. Given the need to fund
increases in FAA controller staffing and Coopers and Lybrand's
assessment that FAA needs to reduce its administrative overhead, the
Committee believes these staff offices should be gradually reduced. This
is particularly relevant for these offices-- which average over $120,000
per staff year and represent the agency's leadership--and which set the
tone and pace for the rest of the agency. The Committee recommendation
assumes a gradual, multiyear phasedown of this staffing, from 591 staff
years in the President's budget to 576 at the end of the year. These
reductions are to be allocated as shown below:
FTE by Office Fiscal year-- Committee
Recommended
1996 Actual 1997 Estimate 1998 Estimate
Administrator and Deputy 63 64 64 64
Civil rights 11 14 15 15
Government and industry affairs 14 13 13 13
System safety 33 35 38 38
Policy, planning, and international aviation 144 143 143 142
Chief counsel 280 289 285 271
Public affairs 43 33 33 33
-------------- ---------------- ----------------- -----
Total 588 591 591 576
Office of policy, periodic fitness reviews.-- The Committee does not
agree with an assumption in the budget request that FAA should finance 3
staff years in the office of the secretary to implement a recommendation
of the White House Commission that greater attention be paid to periodic
fitness reviews of airlines. While the Committee agrees this is an
important activity, it is clearly the responsibility of the office of
the secretary. The Committee bill assumes that such increased activity
will be financed by the office of the secretary out of available funds,
and not from the FAA's budget.
English language proficiency.-- The Committee is concerned that not
enough is being done by the FAA to promote and standardize proficiency
in the English language by pilots and air traffic controllers around the
world. Both the GAO and the National Transportation Safety Board
testified this year that more needs to be done to ensure that foreign
air traffic controllers have the English language proficiency to handle
emergency and nonstandard situations. The Acting FAA Administrator
testified ``It is a great concern of ours. In fact, it is a great
concern of the international aviation community. It is a worldwide
problem . . . it is in fact a causal event, and has been, in a number of
accidents''. The Committee believes that more research and analysis
needs to be conducted on this problem, and has added $500,000 under
``Research, engineering and development'' to address the problem. In
addition, the Committee encourages the FAA's International Office to
work closely with the International Civil Aviation Organization and NTSB
to develop standardized training and evaluation procedures for improving
and monitoring English language proficiency around the world.
Accountwide Adjustments
The Committee recommends accountwide adjustments resulting in a net
decrease of $9,137,000 below the budget estimate. These adjustments are
discussed below.
Travel reform.-- FAA officials have advised the Committee that
travel reforms already approved by the agency are expected to save
$5,900,000 in annual travel costs. These include changes in permanent
change of station (PCS) reimbursements as well as temporary duty (TDY)
travel. The Committee has long advocated these type of changes, and the
bill assumes those program savings for fiscal year 1998.
Time-off awards.-- The Committee recommends $3,825,000 for time off
awards in fiscal year 1998, an increase of 41 percent over the fiscal
year 1995 level, but $2,875,000 less than requested by the
administration. The Committee notes that a large percentage of the FAA
workforce consumes leave at greater than the government-wide average,
and many employees will still be exempt from the cap on annual leave
carryover during fiscal year 1998. Therefore, the Committee believes a
fewer amount of time-off awards can be accommodated.
DOT library contribution.-- The Committee recommendation reduces
FAA's contribution to the DOT library in the Nassif Building by $120,000
due to budget constraints. This leaves an expected FAA contribution of
$1,180,000 for fiscal year 1998. The Committee believes this
is a fair representation of the use of this facility by the FAA,
especially given the fact that the FAA utilizes its own technical
library in the FAA headquarters building.
Interest on Sunday premium pay.-- The Committee deletes the $242,000
budgeted for interest on Sunday premium pay. Should the existing
prohibition be lifted, the FAA would be required to pay interest on
these expenses. However, these funds will not be necessary since the
Committee is recommending continuation of the prohibition on Sunday
premium pay in those cases where employees do not work on a Sunday.
Bill Language
Manned auxiliary flight service stations.-- The Committee bill
includes the limitation requested in the President's budget prohibiting
funds from being used to operate a manned auxiliary flight service
station in the contiguous United States. The FAA budget includes no
funding to operate such stations during fiscal year 1998.
Second career training program.-- Once again this year, the
Committee bill includes a prohibition on the use of funds for the second
career training program. This prohibition has been in annual
appropriations Acts for many years, and is included in the President's
budget request.
Sunday premium pay.-- The bill retains a provision begun in fiscal
year 1995 which prohibits the FAA from paying Sunday premium pay except
in those cases where the individual actually worked on a Sunday. The
statute governing Sunday premium pay (5 U.S.C. 5546(a)) is very clear:
``An employee who performs work during a regularly scheduled 8-hour
period of service which is not overtime work as defined by section
5542(a) of this title a part of which is performed on Sunday is entitled
to * * * premium pay at a rate equal to 25 percent of his rate of basic
pay.'' Disregarding the plain meaning of the statute and previous
Comptroller General decisions, however, in Armitage v. United States,
the Federal Circuit Court held in 1993 that employees need not actually
perform work on a Sunday to receive premium pay. The FAA was required
immediately to provide back pay totaling $37,000,000 for time scheduled
but not actually worked between November 1986 and July 1993. Without
this provision, the FAA would be liable for significant unfunded
liabilities, to be financed by the agency's annual operating budget.
This provision is identical to that in effect for fiscal years 1995
through 1997, and as requested by the administration in the fiscal year
1998 President's budget.
O'Hare slot management.-- The bill continues the general provision
enacted beginning in fiscal year 1995 which prohibits funding to
implement or enforce regulations that would result in slot allocations
for international operations to any carrier at O'Hare Airport in excess
of the number of slots allocated to and scheduled by that carrier as of
the first day of the 1993 1994 winter season, if that international slot
is withdrawn from an air carrier under existing regulations for slot
withdrawals. The provision continues the cap on withdrawals in effect
since fiscal year 1995.
FACILITIES AND EQUIPMENT
(Airport and Airway Trust Fund)
Appropriation, fiscal year 1997 \1\$1,790,000,000
Budget estimate, fiscal year 1998 1,875,000,000
Recommended in the bill 1,875,000,000
xlBill compared with:
Appropriation, fiscal year 1997 +85,000,000
Budget estimate, fiscal year 1998
\1\Excludes $147,700,000 in emergency contingent appropriations.
The facilities and equipment (F&E) appropriation is the principal
means for modernizing and improving air traffic control and airway
facilities. This account also finances major capital investments
required by other agency programs, experimental research and development
facilities, and other improvements to enhance the safety and capacity of
the airspace system.
Committee Recommendation
The Committee recommends an appropriation of $1,875,000,000 for this
program, which represents an increase of $85,000,000 above the level
provided for fiscal year 1997 (for similar non-emergency activities) and
the same as the budget estimate. The bill provides that of the total
amount recommended, $1,655,890,000 is available for obligation until
September 30, 2000, and $219,110,000 (the amount for personnel and
related expenses) is available until September 30, 1998. These
obligation availabilities are consistent with past appropriations Acts
and the same as the budget request.
The following chart shows the fiscal year 1997 enacted level, the
fiscal year 1998 budget estimate and the Committee recommendation for
each of the projects funded by this appropriation:
offset folios 44 to 47 insert here
Acquisition Reform
Two years ago, this Committee approved far-reaching flexibilities for
the FAA to reform its acquisition policies. At that time, the FAA
estimated that such reforms would save 20 percent of the cost of its
acquisitions. However, the recent independent financial assessment
concluded that FAA's budget assumed no such savings, a fact verified by
the Acting FAA Administrator in this year's hearing, in which he said
``our budget reflects basically a status quo operation''. The Committee
did not approve acquisition reform in order to achieve the status quo.
In the future, the FAA is expected to show savings from acquisition
reform.
ATC Capital Needs and the Congressional Budget Process
The Committee does not agree with those who suggest that the
Congressional budget process might be unable to provide for the high
priority air traffic control modernization needs of the FAA. As the GAO
and the DOT Inspector General have repeatedly stated, FAA's
modernization problems have not been the result of inadequate funding,
but instead of weak, unfocused and unaccountable management at the FAA.
When additional needs are justified, they are provided in the
Congressional budget process. This is recognized even in the
administration's internal budget priorities. For example, in October
1996, FAA's planning documents assumed that the Office of Management and
Budget would provide total F&E funding of $8.1 billion over the fiscal
years 1998 through 2002. However, only three months later, the Office of
Management and Budget provided a comparable planning estimate of $9.7
billion. Over this short timeframe, the administration freed up $1.6
billion in extra funds for ATC modernization--showing that the current
budget process does not impose fixed or immutable budget limits.
Funding Responsibility for Navigation Systems
In a recent version of FAA's ``NAS Architecture'' plan, the agency
suggested that certain navigation and landing aids should be the
financial responsibility of non-federal parties such as airport
authorities. The Committee believes these are important aviation safety
systems which have historically been acquired and maintained by the
Federal Government. The
Committee considers the procurement and maintenance of
navigational aids, landing aids, and approach lighting systems to be
generally the responsibility of the government, as part of the
``contract'' that aviation passengers and general aviation pilots enter
into through the payment of aviation excise taxes. The FAA has the
responsibility to provide a national system of air traffic control
equipment and services. The Committee believes proposals to shift a
subset of these responsibilities to airports is inappropriate and could
result in the diminution of aviation safety, since airports are neither
staffed nor funded to assume ownership, operation, or maintenance of
such equipment. The procurement and maintenance of such equipment should
remain a financial responsibility of the FAA, and the agency should not
move forward on any proposal to transfer this responsibility without
specific Congressional authorization.
engineering, development, test and evaluation
Aviation weather services improvements.-- The Committee is concerned
that FAA cut this important safety program severely during the internal
fiscal year 1998 budget process. The FAA's capital improvement program
shows total required funding (over all years) of $326,700,000, yet the
budgeted amount is only $173,100,000. Last year the agency expected to
request $51,200,000 for fiscal year 1998, yet the budget contains only
$23,000,000. The Committee recommendation provides $10,000,000 above the
budget request to accelerate the development of this important safety
system.
Oceanic automation system. --The Committee recommends $42,000,000
for oceanic automation system development, an increase of $10,000,000
above the budget estimate. This raises funds to the September 1995
capital improvement plan (CIP) level to accelerate deployment of this
technology.
Aeronautical data link. --The Committee recommendation provides
total funding of $15,000,000 for development of aeronautical datalink
technology, compared to $8,000,000 in the budget request. The Committee
also provides all funding under this budget activity to reflect the
developmental nature of this work, rather than under a procurement
budget activity, as suggested by the FAA. The recommendation restores
about a third of the reduction cut by the FAA from the level proposed in
the September 1995 capital plan. When realized, this technology will
allow critical safety data to be sent directly into the cockpit, for
on-the-spot evaluation and use by pilots.
Air traffic management. --The recommendation adds funding for three
high priority safety and capacity enhancement technologies:
Center/tracon automation system (CTAS) +$15,000,000
Conflict probe +5,000,000
Collaborative decisionmaking +7,200,000
These enhancements are all strongly supported by the FAA, but the
budget provides insufficient funding. They all help controllers route
aircraft more efficiently and will help pilots plan their routes around
hazardous weather. They offer both safety and capacity benefits. The
earlier capital plan prepared by FAA showed much higher levels of
funding for these initiatives, but later these funds were reduced. The
Committee believes these programs should not be reduced.
Terminal automation. --The recommendation includes $73,000,000 for
continued development of the standard terminal automation replacement
system (STARS), compared to $68,000,000 in the budget estimate. The
additional $5,000,000 in funding is for the software development risk
mitigation effort proposed by the Secretary of Transportation in a
recent reprogramming request. The FAA recently raised their assessment
of the software development for this program to ``high risk'' status--an
unusual step and a clear indication that some fallback option is needed.
These funds provide an ``insurance policy'' should the current program
encounter insurmountable problems. A similar project was undertaken a
few years ago for the en route automation program, and ended up saving
time and money in the fielding of upgraded computer systems. The
Committee believes a similar approach is needed for terminal automation,
and is proposed without prejudice to the baseline program.
Innovative deicing technology demonstration. --In order to
demonstrate the effectiveness of innovative infrared heating, in a
commercial application, for aircraft deicing in an enclosed facility at
smaller regional airports, the Committee has provided $970,000 for such
a demonstration project at Rhinelander/Oneida County Airport, Wisconsin.
The use of infrared heating
for aircraft deicing has been tested by the FAA. Its
application appears to be more cost effective than the use of glycol for
deicing aircraft, with the added benefit of a significant reduction in
the environmental impact of glycol contamination of the watershed from
runoff. The Rhinelander/Oneida County Airport typifies the small
commercial airport, relying on 34 commercial operations daily by the
smaller commuter aircraft to connect to major hub airports. The
Committee believes that additional testing of this new technology in an
operational environment will help document that infrared heating is a
practical and cost effective alternative for deicing various types of
aircraft.
Wide area augmentation system (WAAS). --The Committee recommends
$114,000,000 for continued development of the GPS wide area augmentation
system (WAAS). This program is designed to provide en route navigation
and precision landing air traffic control services, and replace many of
FAA's existing ground-based radars and navigation aids. The recommended
level is $38,830,000 (25 percent) below the President's budget request,
but $19,000,000 (20 percent) above the level provided for fiscal year
1997. The Committee has long supported this program, and in past years
has recommended funding above the FAA's request. However, the Committee
is disturbed this year to learn of probable cost growth in the hundreds
of millions of dollars, as well as uncertainty regarding technical
requirements and the provision of critical satellite datalink services.
FAA officials advise the Committee that the program's total cost
estimate has risen from $512,500,000 in April 1994 to a current estimate
of $957,400,000. In addition, the latest estimate may not include all
estimated costs for the system. The FAA's current capital plan includes
only $555,900,000 for this program.
The Committee does not believe FAA has either resolved its technical
requirements or decided which programs will be reduced in order to
accommodate the substantial WAAS cost growth. Because of this
uncertainty, and given the FAA's history of proceeding too quickly with
programs undergoing developmental problems such as these, the Committee
believes the WAAS program should proceed at a slower pace until the
uncertainties are addressed by the FAA and coordinated with the aviation
user community. During this time of reassessment by the FAA, the
Committee encourages the agency to fully explore lower-cost options and
the cost-capability tradeoffs offered.
Procurement of Air Traffic Control Facilities and Equipment
En route automation. --A minor reduction of $49,800 is due to budget
constraints. Given the size of the overall program, this reduction
should have no impact.
Weather and radar processor. --Funding for the weather and radar
processor (WARP) has been transferred to budget activity one,
``Engineering, development, test, and evaluation'', at the requested
level of $24,400,000, to better reflect the development nature of the
work performed.
Aeronautical datalink applications. --Funding for aeronautical
datalink applications has been transferred to budget activity one,
``Engineering, development, test, and evaluation'', to better reflect
the development nature of the work performed, and is discussed under
that section of this report.
ARTCC building improvements. --The Committee recommendation of
$86,451,700 is a reduction of $12,100,000 from the budget estimate. The
recommendation deletes funding to begin construction/relocation of the
Honolulu center/radar approach control (CERAP) from Diamond Head crater
on Oahu. Total cost of this project is $33,500,000. The Committee has
not seen benefit-cost studies or other information indicating the merit
of this project. Although the Committee has supported studies and
analyses to address this issue in the past, this is the first year in
which major construction funding for a new facility has been proposed.
The Committee is also aware of potential environmental problems which
need further investigation. Given budget constraints and the lack of
overall justification, the Committee recommends a deferral of this
project. The Committee will consider funding after completion of a
benefit-cost analysis which justifies the project as a high priority.
Air traffic management. --The Committee recommendation deletes the
$27,200,000 requested for the traffic flow management infrastructure
project. Instead, a similar amount of funds has been provided under
``Engineering development, test and evaluation'' for safety and capacity
enhancement initiatives. In essence, this recommendation
transfers funds from FAA's internal activities to high-technology
development activities oriented to improving safety.
Low density radio communications link. --The budget request includes
$6,000,000 to begin installing filters on older air traffic control
radars in order to accommodate the sale of that portion of the radio
frequency spectrum resulting from previous spectrum auctions. Since
contract award will not occur until fiscal year 1999 for this work,
funds will not be needed until that time.
Omega termination cost. --The recommendation transfers $6,700,000
from Coast Guard, ``Acquisition, construction and improvements'' to this
appropriation in order to more appropriately reflect organizational
responsibilities. Since funding for operation and maintenance of the
Omega system was transferred from the Coast Guard to the FAA a few years
ago, the Committee does not believe the Coast Guard should once again
assume financial responsibility for capital requirements related to this
system. This is more appropriately a responsibility of the FAA.
Terminal doppler weather radar. --The Committee recommends a
reduction of $2,500,000 in this program due to FAA delays and
uncertainties regarding installation of certain TDWR systems. When FAA
identifies to the Committee that these uncertainties have been
addressed, funds will be provided for this important system. The FAA is
encouraged to resolve these problems as soon as possible.
The Committee continues to believe that the FAA should accelerate its
installation of a terminal doppler weather radar system serving New York
City airports. Although the requirements have been known for many years,
and the system has been procured, the agency has been unable to install
the radar due to local concerns. The FAA's recent report, required by
section 1217 of the FAA Reauthorization Act of 1996, concluded that it
was not cost-beneficial to consider use of offshore platforms for such a
system. The Committee continues to believe this important safety system
should be installed as a high priority, and the agency should move
forward without further delay.
Terminal automation (procurement). --The Committee's recommended
reduction of $6,200,000 reflects program savings due to revised STARS
delivery schedules and site adjustments for both the baseline system and
for STARS support systems. This should have no impact on the overall
program.
Terminal air traffic control facilities-replacement. --The Committee
recommends $67,000,000 compared to $62,000,000 in the budget request.
The recommendation adds $5,000,000 to the $700,000 budgeted for a new
control tower at North Las Vegas, Nevada, in order to accelerate this
project.
Control tower/Tracon facilities improvement. --The Committee
recommends $4,800,000 for this project, a reduction of $13,831,100 from
the budget estimate. The recommendation reflects a large backlog of
unobligated funding in this program, and FAA's estimate that funds will
be left over even at the end of fiscal year 1998. The recommendation
provides only the amount of new funding FAA believes they can obligate
during fiscal year 1998.
Terminal voice switch replacement. --The Committee recommends
$1,640,000, a reduction of $8,300,000 from the budget estimate. The
recommendation is based on delays in FAA's procurement of large
replacement switches. These funds will not be needed during fiscal year
1998 because of program delays.
Employee safety/OSHA compliance. --The recommended funding of
$23,000,000 provides an increase of 9.5 percent versus the proposed
increase of 108 percent. Much of the proposed increase is for contractor
support and for energy conservation activities. The recommended level is
sufficient to fully fund tower fire safety issues and 80 percent of
regional mitigation activities. The recommendation allows additional
funding for aviation safety-related activities like aviation weather
research and human factors research, while still providing a healthy
increase for this program.
New Austin airport at Bergstrom. --The reduction of $1,700,000
reflects the large balance of unobligated funds in this program.
Potomac Metroplex. --According to FAA's benefit-cost analysis, a
single consolidated metroplex control facility is the most
cost-effective option for the Washington metropolitan area, with a
benefit-to-cost ratio of 17 to 1. The analysis verifies what FAA
suspected in 1992: such a facility would improve safety and save money
in the long run. In September 1995, the FAA's capital plan included
$27,600,000 for construction of this facility in fiscal year 1998.
However, after that time FAA officials attempted to terminate this
project, remove funding and distort the technical analysis to fit a
pre-determined goal. In December 1996, FAA advised this Committee in
writing that, ``analysis to date
indicates that the consolidation * * * into a single metroplex
facility. * * * is not the best option''. This was not the case then,
and is not the case now.
The funding recommendation of $27,600,000 is based on the original
funding profile for fiscal year 1998, as included in FAA's September
1995 capital plan. The Committee directs FAA to use these funds, as well
as prior year funds for this project which remain unobligated, only for
planning, land acquisition, construction and other activities related to
a single metroplex control facility consolidating terminal radar
approach control (TRACON) facilities in the Washington metropolitan
area. The Committee further directs the FAA to report to the House and
Senate Committees on Appropriations by October 1, 1997 on its schedule
and plan for completing this project, including a schedule for
obligation of these and prior year funds. The Committee will not
tolerate further delay on this project. The Committee expects the FAA
Administrator to take necessary action to ensure that officials are held
accountable for past actions in this program and that similar problems
do not occur in the future.
Atlanta Metroplex. --FAA reduced fiscal year 1998 funding for this
important project from $25,400,000 in the September 1995 capital plan to
$15,600,000 in the final budget. FAA's benefit-cost study shows a huge
benefit from accelerating the construction of this facility. It is not
clear why FAA favors some metroplex locations over others, apparently
without regard to their own benefit-cost studies. To correct this, the
Committee's recommendation funds this project at the September 1995
capital plan level of $25,400,000, an increase of $9,800,000. Funding of
$6,500,000 was provided for this project in fiscal year 1997.
Tower automation program. --The reduction of $2,000,000 is based on
a large unobligated balance in this program and program savings.
NAS infrastructure management system (NIMS). --The Committee
recommends $18,000,000 for this program, a reduction of $8,750,000 from
the budget estimate but an increase of $12,000,000 (200 percent) above
the fiscal year 1997 enacted level. The Committee recommended no funding
for this program last year, and continues to have concerns, as follows:
(1) A recent report of the DOT Inspector General concluded that the FAA
has duplicative and potentially wasteful programs in this area,
including a prototype development using operating funds and, in
parallel, this totally new development called NIMS. Because of this
duplication, it is not clear to the Committee whether it is more
cost-beneficial to upgrade the prototype, or continue with this new
development program; (2) NIMS backup justification documents provided by
FAA include no cost breakdown or quantities beyond fiscal year 1998.
These documents claim that such fundamental justification is still ``to
be determined'', and compounds the uncertainty by adding the statement
``future requirements under review''. This is startling, given the
Committee's recommendation last year to defer the program based on a
lack of justification; and (3) this is not a safety project, and a
portion of the funds would be more effectively utilized to restore cuts
in critical safety programs. This recommendation reduces funding by
one-third, but still provides a large increase over last year. The
Committee hopes the FAA can provide stronger and more complete
justification for this program next year, should funding be requested.
Airport surface detection equipment. --Even though the budget
includes no funding for this safety program, the Committee believes the
FAA will need $5,600,000 in fiscal year 1998 to install power
conditioning bearing replacements and for procurement of additional
spares. The current radars are experiencing failures, and require this
new equipment. The recommendation provides these funds, as well as
$3,000,000 to continue investigating loop detector technology imbedded
in runway pavements to provide a low-cost, low-maintenance ASDE option.
This was first funded in fiscal year 1997, and involves a pilot project
at Long Beach Airport in California.
Airport movement areas safety system (AMASS). --The Committee
recommends $14,300,000 for procurement of additional AMASS systems. No
funds are included in the budget estimate. The FAA currently only plans
to buy 20 systems, even though the existing contract has an option for
16 additional systems. The FAA advised the Committee this year that the
agency doesn't want to acquire additional systems at this time because
of ``budgetary priorities and carryover balance''. The Committee
believes that this is an important safety system, and should have a
higher budgetary priority. The AMASS system is also strongly supported
by the National Transportation Safety Board. The recommended level is
sufficient to fund
an additional 10 sites, to be determined by the FAA based on
benefit-cost analysis.
Terminal communications improvements. --The reduction of $2,189,000
reflects program savings during execution of this activity.
OASIS. --The recommended reduction of $1,000,000 is based on program
savings due to execution of this activity.
Advanced weather observing systems. --The recommendation provides
$7,150,000 for procurement of additional weather observing systems. The
Committee directs FAA to compare the cost-capability tradeoffs between
the existing AWOS and ASOS systems and, after that analysis, procure
systems that meet such requirements based on full and open competition
between all qualified vendors. None of these funds may be used for
installation or commissioning costs for existing ASOS systems. Funding
of $14,850,000 for that purpose has been provided under ``Automated
surface observing system''.
Instrument landing systems, establishment and upgrade. --Of the
funds provided for establishment and upgrade of instrument landing
systems (ILSs), $100,000 is for installation of localizer and glideslope
equipment at Zanesville Airport in Ohio; $250,000 is for an ILS at Hays
Municipal Airport in Hays, Kansas; and $400,000 is for land acquisition
related to installation of an ILS at Stanly County Airport in North
Carolina.
Loran-C upgrades. --The Committee recommends $5,000,000 to continue
Loran-C upgrades initiated by this Committee in fiscal year 1997.
Funding of $4,650,000 was provided for this purpose in fiscal year 1997.
The Committee believes this is a meritorious effort which should be
continued.
Precision approach path indicators (PAPI). --The Committee
recommends $5,000,000 to continue the procurement and installation of
precision approach path indicators (PAPI) begun in fiscal year 1997.
Funding of $3,125,000 was provided in fiscal year 1997 for this safety
system.
Procurement of Non-ATC Facilities and Equipment
Hazardous materials management. --The recommended level of
$15,000,000 provides the same funding level as provided in fiscal year
1997, instead of the 25 percent increase requested. The Committee
believes that this level of effort program can proceed at the same pace
as fiscal year 1997 in order to fund higher priority safety initiatives.
Operational data management system (ODMS). --The FAA recently issued
a stop work order to the prime contractor on this program due to
programmatic problems. Given this turn of events, and pending the FAA's
review of the program, the recommendation defers further funding, a
reduction of $1,600,000 from the budget estimate.
Computer-based instruction. --The recommendation of $3,000,000 holds
funding for this program to the fiscal year 1997 level due to budget
constraints and higher priorities. This is an administrative computer
system designed to save the FAA money on training over the long term.
The Committee believes it more essential to reserve programmatic
increases for safety initiatives.
DSR training simulator. --The bill includes $4,000,000 for the
Mid-America Aviation Resource Consortium to procure a display system
replacement (DSR) air traffic control simulator compatible with new DSR
systems now being installed in en route centers nationwide. The current
ATC simulation equipment used to train future controllers is obsolete.
This new DSR training simulation system at MARC will enable new
controllers to be trained to operate the DSR system when it becomes
fully operational in en route centers across the nation in the year
2000.
Mission Support
System engineering and development support. --The recommended
reduction of $970,000 reflects the need to fund other, higher priority
safety and capacity initiatives. The Committee believes FAA will be able
to manage their system engineering activity with this modest (3 percent)
reduction to the budget request.
Center for advanced aviation systems development. --The budget
proposes to reduce funding for the Center for Advanced Aviation Systems
Development at Mitre by 3 percent. However, when adjusted for inflation,
this is a real reduction of approximately 6 percent. Given the
significant reduction in this program a few years ago and the
improvements in management since that time, the Committee believes it
unwise and counterproductive to the FAA to reduce this important support
activity
further. In fact, as the FAA's planning has transitioned
toward the development of a comprehensive ``NAS Architecture'' plan over
the past year and a half, Mitre's broad-based expertise is perhaps more
critical than in past years. The Committee's recommendation allows a 4
percent increase. The bill also modifies the cap on staffing at this
center by raising the ceiling from 335 to 350 (4 percent) , the first
increase in 3 years.
Warehoused equipment. --Currently, the FAA has 4 products warehoused
because of lack of funding for installation and commissioning. The
Committee considers this an embarrassment to the agency, and
consequently provides high priority funding for the FAA to begin working
off this backlog. According to FAA, total required funding is
$103,904,000. The recommendation provides funds to install and
commission two systems: Medium-Intensity Approach Lighting System
Replacements (MALSR) and Runway End Identification Lighting (REIL)
systems (quantities of 3 and 55 systems, respectively). These are safety
systems which help guide pilots to airport runways. The Committee
further directs FAA to submit a report to the House and Senate
Committees on Appropriations not later than February 15, 1998 detailing
the agency's plans to install the remaining warehoused equipment.
Personnel and Related Expenses
The recommendation provides $219,110,000, no change to the budget
estimate and $2,110,000 above the level enacted for fiscal year 1997.
Most of these funds pay for FAA installation work at field offices
throughout the country.
Advance Appropriations
The Committee bill does not include the advance appropriations for
fiscal years 1999 through 2005 totaling $2,368,400,000 requested by the
administration. The FAA has provided no evidence that such
appropriations would save the Federal Government money in the long run
or result in faster implementation of new technology. In fact, the
Committee believes that providing more funding up front for systems
still under development would lessen fiscal discipline and oversight,
and increase the likelihood that such systems would end up behind
schedule and over budget. Absent compelling justification to the
contrary, the Committee continues to believe that annual appropriations
review will provide stronger fiscal displine and better Congressional
oversight.
ASSESSMENTS
The Committee has learned that the Office of the Associate
Administrator for Research and Acquisitions (ARA) has been ``taxing''
facilities and equipment programs in order to create a pool of funds for
administrative expenses and budget contingencies of that office. Since
funds are provided for administrative expenses of the Research and
Acquisition program under FAA ``Operations'', the Committee believes it
improper for those funds to be supplemented by assessments on F&E
programs. The Committee directs the FAA to discontinue this practice
immediately. No charges may be assessed against F&E projects by the ARA
organization except for reimbursement of services directly related to
the F&E project being charged.
RESEARCH, ENGINEERING, AND DEVELOPMENT
(Airport And Airway Trust Fund)
Appropriation, fiscal year 1997 \1\$187,412,000
Budget estimate, fiscal year 1998 200,000,000
Recommended in the bill 185,000,000
xlBill compared with:
Appropriation, fiscal year 1997 -2,412,000
Budget estimate, fiscal year 1998 -15,000,000
\1\Excludes $21,000,000 in emergency appropriations contained in Public Law 105 208.
This appropriation provides funding for long-term research,
engineering and development programs to improve the air traffic control
system and to increase its safety and capacity to meet air traffic
demands of the future, as authorized by the Airport and Airway
Improvement Act and the Federal Aviation Act. The appropriation also
finances the research, engineering and development needed to establish
or modify federal air regulations.
Committee Recommendation
The Committee recommends $185,000,000, a reduction of $15,000,000
below the President's budget request and $2,412,000 (1 percent) below
the fiscal year 1997 enacted level (excluding emergency appropriations).
While still the safest airway system in the world, aviation accidents
in this country in 1994 and 1996 highlight the need for more rapid
implementation of advanced safety technologies, especially those related
to forecasting and detection of hazardous weather conditions such as
windshear, safety monitoring and oversight technologies, and aging
aircraft technologies. The high percentage of accidents and incidents
due to human error, deicing, and other hazardous weather problems call
for sustained, high priority research programs to address these issues.
The Committee recommendation also provides funding above the budget
request for aircraft safety technology research, to be focused on
propulsion and fuel systems and aging aircraft issues. In some cases,
these priorities have necessitated reductions in other research
programs.
A table showing the fiscal year 1997 enacted level, the fiscal year
1998 budget estimate, and the Committee recommendation follows:
offset folio 58 insert here
Adjustments to the budget estimate are as follows:
System Development and Infrastructure
System planning and resource management. --The recommendation
provides $1,860,000, the same as the fiscal year 1997 enacted level.
Technical laboratory facility. --The recommendation allocates
$2,500,000 compared to $6,600,000 provided in fiscal year 1997. These
funds upgrade technical facilities at the FAA Technical Center.
Center for advanced aviation system development. --The
recommendation provides $5,444,000, the same as the budget estimate and
$244,000 (4.7 percent) above the fiscal year 1997 enacted level. The
ceiling on technical staffyears has been raised in the bill to 350, up
from 335 in fiscal year 1997. The Committee continues to be impressed
with the work of FAA's federally-funded research and development center,
and believes that a small increase in the staffyear ceiling is
justified.
Capacity and Air Traffic Management Technology
Air traffic management technology. --The Committee recommends
$2,986,000 compared to $4,000,000 provided last year. The Committee
believes a higher priority should be placed on safety-related research.
Significant additional funding has been provided under ``Facilities and
equipment'' to accelerate high payoff air traffic management
technologies such as collaborative decisionmaking and conflict probe.
Oceanic automation. --The Committee recommends $5,000,000 compared
to $6,539,000 provided last year. The Committee believes a higher
priority should be placed on safety-related research. Significant
additional funding has been provided under ``Facilities and equipment''
to accelerate fielding of oceanic automation technologies, rather than
long-term research.
Runway incursion reduction. --The Committee recommends $6,000,000,
the same amount provided last year. The FAA had proposed a reduction of
$2,706,000 (45 percent) in this activity. The Committee believes this
important area of safety research should remain a priority in
FAA's overall research program. Within the total, the
Committee encourages the FAA to give a priority to funding for the
surface movement advisor (SMA) program. This is consistent with
Congressional direction in past years.
System capacity, planning and improvements .--The Committee
recommends $7,241,000, a reduction of 19 percent below the 1997 level.
This activity finances studies and assessments of ways to enhance
capacity at our nation's commercial airports. These funds are being
reduced in order to place a higher, much needed emphasis on safety,
which was reduced in the budget request. The administration requested a
reduction of 55.2 percent in this program, a portion of which is
restored in the Committee's recommendation.
Cockpit technology .--The Committee recommends $4,070,000, a 35.7
percent increase over last year. This funds enhancements to the Traffic
Collision Avoidance System (TCAS).
Communications, Navigation and Surveillance
Communications .--The Committee recommends $4,706,000, a reduction
of 21 percent below the $6,000,000 provided last year. Instead of
increasing this program, the Committee has recommended additional funds
under ``Facilities and equipment'' for advanced datalink, automatic
dependent surveillance-broadcast, and similar communications
technologies.
Navigation .--The Committee recommends $10,426,000, a reduction of
20 percent below the $13,000,000 provided last year. These funds are
largely in support of FAA's GPS implementation program. Given the
uncertainty surrounding the affordability of FAA's wide area
surveillance program as currently planned, uncertainty over the future
financing for local area surveillance, and a need to place higher
priority on improving aviation safety, the Committee believes a slower
pace in this area of research is justified.
Weather Research
The Committee recommendation includes $15,300,000 for research to
reduce aviation hazards of dangerous weather, an increase of $9,245,000
(153 percent) above the budget estimate and $2,300,000 (17.7 percent)
above last year's level.
Once again this year, the Committee is disappointed with the FAA's
budget request for this important area of aviation safety research.
According to FAA testimony submitted in this year's appropriations
hearing, the weather program manager requested $15,300,000 in fiscal
year 1998, which was drastically reduced in the administration's
internal budget process. Within the overall total, institutional
research would have been reduced by 70 percent (from $7,949,000 to
$2,332,000). These reductions would have terminated research to address
clear air turbulence and deicing problems, which is not acceptable to
the Committee.
The Committee restores the original request of the program manager,
and directs the FAA not to reprogram any of these funds to other
activities outside the weather research program. Within the funds
provided, $500,000 is for the Center for Wind, Ice and Fog at Mount
Washington Observatory in New Hampshire; $2,500,000 is to continue
Project Socrates; and not less than $11,000,000 is to continue
institutional research coordinated by the National Center for
Atmospheric Research (NCAR) in Colorado.
Airport Technology
The Committee recommends $5,000,000, compared to $5,200,000 provided
last year. The small reduction is to establish higher priorities in the
safety area and is without prejudice to this work. These activities
include runway pavement research and other research into civil
engineering improvements at the nation's airports.
Aircraft Safety Technology
Overall, the Committee recommends $42,662,000, a $6,158,000 (16.9
percent) increase over the $36,504,000 provided last year and $3,663,000
(9 percent) above the administration's request. Given the TWA 800 and
Valujet tragedies last year, the Committee believes a higher priority
should
be accorded research into aging aircraft, fuel and electrical
systems on board aircraft, and measurement of industry safety
performance.
Programs raised to the fiscal year 1997 enacted funding level.
--Funding for aircraft systems fire safety and advanced
materials/structural safety was proposed for reduction in the budget
request, compared to the fiscal year 1997 level. The Committee
recommendation raises the level of funding for each program to the
fiscal year 1997 funding level.
Flight safety/atmospheric hazards research. --The Committee
recommendation holds funding for this area of research to the fiscal
year 1997 level in order to fund higher priority areas. The reduction is
without prejudice.
Propulsion and fuel systems. --The Committee recommends $5,000,000,
an increase of $1,600,000 (47 percent) over the $3,400,000 provided last
year and $1,952,000 (64 percent) above the administration's request. The
Committee believes greater emphasis should be placed on safety research
in this area.
Aging aircraft. --The Committee recommends $15,000,000, an increase
of $1,111,000 (8 percent) above the $13,889,000 provided last year.
Aircraft catastrophic failure prevention research. --The Committee
recommends $4,000,000, an increase of $906,000 (29.3 percent) above the
$3,094,000 provided last year.
Aviation safety risk analysis. --The Committee recommends
$6,541,000, an increase of $2,541,000 (63.5 percent) above the
$4,000,000 provided last year. This program researches ways to improve
FAA's monitoring and oversight of the aviation industry through
development of better safety performance measures and computer systems
to monitor that performance and target inspection and enforcement
activity.
System Security Technology
Overall, the Committee recommendation provides an increase of
$3,600,000 (10 percent) over the level provided last year.
Explosives and weapons detection. --The Committee recommends
$30,135,000, an increase of $2,738,000 (10 percent) above the level
provided last year. This activity funds research into new technologies
related to bomb and weapons detection.
Airport security technology integration. --The Committee recommends
$2,485,000, an increase of $227,000 (9.1 percent) above the level
provided last year.
Aviation security human factors. --The Committee recommends
$5,540,000, an increase of $501,000 (10 percent) above the level
provided last year.
Aircraft hardening. --The Committee recommends $1,495,000, an
increase of $134,000 (9.8 percent) above the level provided last year.
Human Factors and Aviation Medicine
Overall, the Committee recommendation provides an increase of
$3,046,000 (13 percent) above the $23,504,000 provided last year. The
Committee remains disappointed that, once again this year, the FAA has
placed human factors research at or near the bottom of its research
priorities, choosing instead to propose increases in the agency's
institutional laboratory capabilities, in-house research planning, and
other similar activities. The Committee can only wonder about the
agency's commitment to improving safety over the long-term when the
budget proposes to reduce funding in the two causal areas where fatal
aviation accidents continue to be most concentrated --human factors and
hazardous weather. Once again this year, the Committee appreciates the
opportunity to rearrange aviation research priorities in a manner which
will advance aviation safety rather than institutional prerogatives.
Flight deck/maintenance/system integration human factors. --The
recommendation provides $12,550,000, a 15 percent increase above the
level provided last year.
Air traffic control/airway facilities human factors. --The
recommendation provides $10,000,000, a 16 percent increase above the
level provided last year. Of the funds provided, $500,000 is only for
additional research into assessment, evaluation, and development of
training methodologies related to the English language proficiency
problem. This issue is discussed further under FAA ``Operations''. The
FAA is also encouraged to follow up with further research into the
fatigue-related effects of the current ``2 2 1'' shift rotation policy
for air traffic controllers. A recent study by the Civil Aeromedical
Institute raised issues of sleep deprivation and performance loss which,
in the Committee's opinion, warrant immediate follow-on research.
Aeromedical research. --The recommendation provides $4,000,000, the
same level as provided last year. The Committee continues to value the
work performed in this project and conducted mainly at the Civil
Aeromedical Institute in Oklahoma. The budget requested $4,587,000 for
this project, an increase of 14.7 percent over fiscal year 1997.
ENVIRONMENT AND ENERGY
The recommendation provides $3,600,000, the same level as provided
last year. This program researches ways to mitigate the impact of
airport noise around the country. The budget proposed $2,891,000, a
reduction of 19.7 percent.
innovative and cooperative Research
The recommendation provides $2,000,000, the same level as provided
last year. This program finances the FAA centers of excellence, the FAA
fellows program, and other university-based research of long-term
interest to aviation. The budget included $2,364,000, an increase of
18.2 percent.
Flight 2000 (Ha-laska) Demonstration
Over the past year, FAA has developed a proposal for a demonstration
project which would help assess the potential for a number of ``free
flight'' technologies. Formerly called ``Ha-laska'', because the
demonstration would take place in the states of Hawaii and Alaska, the
program was renamed ``Flight 2000'' earlier this year by the FAA. In
this year's appropriations hearing, the FAA's head of acquisition
described Flight 2000 as ``an affordable opportunity in a relatively
short period of time to be able to bring all these technologies
together''. However, when the Committee requested specific data on the
costs, schedule, numbers and types of aircraft, and other specific
requirements for this program, the FAA was unable to provide such data.
Although there are indications this limited demonstration would cost
between $400 million and $1 billion, the FAA has not explained how such
funding would fit into their annual research budget, which totals less
than $200 million. A major airline industry association testified this
year before the Committee that the proposal was ``half-baked at best'',
and the FAA has presented no information indicating the kind of industry
support which would be needed for a half billion dollar investment. The
fiscal year 1998 budget includes no specific funding for this effort,
and FAA has not identified where in the budget offsetting reductions
would be found. Neither has the FAA provided studies which support
selection of the specific states recommended for the demonstration
program and comparing them to benefits from other possible locations.
For all these reasons, the Committee is convinced that FAA is not yet
ready to begin such an ambitious and expensive demonstration. Therefore,
the bill prohibits funds from being used for this program during fiscal
year 1998. Since no funds are identified in the budget justifications
for this project, the effect on the project may be negligible. However,
the prohibition protects other important programs from having their
funds reprogrammed later in the year, and ensures thorough Congressional
review before the program proceeds. The Committee believes that the
Flight 2000 demonstration program must meet the same standard of
justification as other FAA programs, and withholds judgment on future
funding pending stronger justification.
The Committee also directs FAA not to withhold appropriated funding
for any free flight-related development program (e.g., conflict probe,
center/tracon automation system) in order to include such technologies
in the Flight 2000 demonstration. The Committee does not believe these
efforts should be delayed while Flight 2000 is being evaluated.
GRANTS-IN-AID FOR AIRPORTS
(liquidation of contract authorization)
(airport and airway trust fund)
Liquidation of contract authorization Limitation on obligations
Appropriation, fiscal year 1997 ($1,500,000,000)
($1,460,000,000)
Budget estimate, fiscal year 1998 (1,500,000,000) (1,000,000,000)
Recommended in the bill (1,600,000,000) (1,700,000,000)
xlBill compared with:
Appropriation, fiscal year 1997 (+100,000,000) (+240,000,000)
Budget estimate, fiscal year 1998 (+100,000,000)
(+700,000,000)
The bill includes a liquidating cash appropriation of $1,600,000,000
for grants-in-aid for airports, authorized by the Airport and Airway
Improvement Act of 1982, as amended. This funding provides for
liquidation of obligations incurred pursuant to contract authority and
annual limitations on obligations for grants-in-aid for airport planning
and development, noise compatibility and planning, the military airport
program, reliever airports, and other authorized activities. This is
$100,000,000 above the level requested in the President's budget due to
the obligation limitation increase of $700,000,000.
LIMITATION ON OBLIGATIONS
The bill includes a limitation on obligations of $1,700,000,000 for
fiscal year 1998. This is $700,000,000 (70 percent) above the
President's budget request and $240,000,000 (16.4 percent) above the
fiscal year 1997 level.
A table showing the distribution of these funds compared to the
fiscal year 1997 levels and the President's budget request follows:
Project 1997 enacted 1998 estimate 1998 recommended
Entitlements $904,574,777 $620,047,886 $961,022,664
--------------- --------------- ------------------
Primary airports 525,435,591 392,445,465 531,483,478
Cargo airports (2.5%) 36,500,000 18,459,909 42,500,000
Alaska supplemental 10,672,557 10,672,557 10,672,557
States (18.5%) 270,100,000 136,603,326 314,500,000
Carryover entitlement 61,866,629 61,866,629 61,866,629
=============== ===============
==================
Small Airport Fund 92,392,456 70,129,936 94,976,005
--------------- --------------- ------------------
Non-hub airports 61,594,971 46,753,291 63,317,337
Non-commercial service airports 30,797,485 23,376,645
31,658,668
=============== ===============
==================
Discretionary Set-Asides 162,061,469 23,518,268 344,001,331
--------------- --------------- ------------------
Noise (31% of discretionary) 143,540,158 20,830,466
239,174,034
Military airport program (4%) 18,521,311 2,687,802 65,293,675
General aviation/reliever/non-primary commercial service
39,533,622
=============== ===============
==================
Other Discretionary 300,971,299 286,303,910 300,000,000
--------------- --------------- ------------------
Capacity/safety/security/noise 214,179,417 205,961,690
213,127,999
Small hubs 15,398,743 11,688,323 15,829,334
Remaining discretionary 71,393,139 68,653,897 71,042,666
=============== ===============
==================
Total limitation 1,460,000,000 1,000,000,000 1,700,000,000
Philadelphia International Airport. --The Committee understands that
Philadelphia International Airport has submitted an application for
multiyear funding for construction of a new runway. This runway would
greatly increase capacity at the airport and reduce costly delays. The
Committee recognizes the need for capacity enhancements at this airport,
and urges the FAA to award discretionary grants for the new runway
project during fiscal year 1998 consistent with existing evaluation
criteria.
Clover Field Airport. --The Committee is pleased to note that since
1989, the FAA has assisted the City of Pearland, Texas in its efforts to
acquire Clover Field Airport, a privately-owned, public-use reliever
airport near Houston Hobby Airport. The FAA has helped fund Clover
Field's feasibility study, airport master plan, and environmental
assessment. The city is currently moving forward with the final step
toward acquisition, the appraisal process, and hopes to complete it this
summer, in time to receive FAA funding for final acquisition in fiscal
year 1997. The Committee considers this to be a worthy project,
recognizing that Clover Field has served the region for over fifty
years, and noting that the FAA has also recognized its importance by
choosing it as the site for the recently-commissioned doppler weather
radar and by making it one of the few general aviation facilities with a
GPS weather station. Therefore, if the City of Pearland is unable to
complete its due diligence in time to receive fiscal year 1997 FAA
funds, the Committee encourages the FAA to provide funding in fiscal
year 1998 for the final acquisition of Clover Field Airport.
New Orleans International Airport, Louisiana. --The Committee
understands that New Orleans International Airport has submitted an
application for multiyear funding for construction of a new runway. This
runway would greatly increase capacity at the airport and reduce costly
delays. The Committee recognizes the need for capacity enhancements at
this airport, and urges the FAA to award discretionary grants for the
new runway project during fiscal year 1998 consistent with existing
evaluation criteria.
Leesburg Municipal Airport, Virginia. --The Committee urges the FAA
to consider the capital improvement program request of the Leesburg
Municipal Airport in Loudoun County, Virginia.
Manassas Regional Airport, Virginia. --The Committee encourages the
FAA to consider, without delay, the phase II noise compatibility grant
request of the Manassas Regional Airport in Prince William County,
Virginia.
Stafford Regional Airport, Virginia. --The Committee recommends that
the FAA consider the grant request made by the Stafford Regional Airport
in Stafford County, Virginia, to facilitate construction of this
reliever airport.
Lee County Airport, Virginia. --The Committee encourages the FAA
Administrator to consider grant applications for the design, land
acquisition, and construction for the replacement airport for Lee
County, Virginia. General aviation development is currently constrained
in Lee County, which is currently served by an airport in Pennington
Gap, Virginia. The existing airport's runway length of 2,265 is too
short to meet the demand for multi-engine or business jet aircraft.
Furthermore, because of its geographic location on top of a ridge, the
development costs of the existing airport are prohibitive compared to
developing an alternate site. Construction of a replacement airport
would allow Lee County to improve its aviation services and capitalize
on the promising economic development efforts now underway in the
county.
Stockton Metropolitan Airport, California. --The Committee wants to
express its support for AIP funding for the Stockton Metropolitan
Airport, so the airport can lengthen the runway. Currently, the runway
at Stockton Airport is insufficient to handle wide-body cargo aircraft
that are necessary to ship fresh produce overseas. The runway extension
is vital to the export viability of California agricultural products.
The application for AIP funds has the support of local officials. To
assist their efforts, the Committee encourages the FAA to fund the
runway extension at Stockton Airport.
Niagara Falls International Airport, New York. --The Niagara Falls
International Airport is an integral part of the Western New York
Regional Airport System. It serves as a reliever airport for Greater
Buffalo International Airport, as well as serving the charter needs of
both commercial and supplemental carriers. It is also the home base for
units of the U.S. Air Force Reserve and the New York Air National Guard.
The current configuration of the airport limits the ability to develop
its southeast corner. The construction of a new taxiway would create a
more efficient taxiway system and allow the airport to expand its role
as a conduit for trade along the Canadian border and Niagara Falls
tourism. The Committee encourages the FAA Administrator to provide
funding to the Niagara Falls International Airport for this project.
Chippewa County Airport, Michigan. --The Committee encourages the
Administrator of the FAA to consider using AIP funding for the design
and construction of a crosswind runway at Chippewa County Airport near
Kincheloe, Michigan. The Committee understands that a feasibility study
has determined that a new crosswind runway is vital to continue safe
flight operations at the airport.
LaCrosse Municipal Airport, Wisconsin. --The Committee urges the FAA
Administrator to give expeditious consideration to awarding
discretionary grant funds during fiscal year 1998 for reconstruction of
the airport runway at LaCrosse Municipal Airport in La Crosse,
Wisconsin. The Wisconsin Department of Transportation has given this
project first priority in the state for airport improvements due to the
serious deterioration of the runway, which has not been repaired or
improved in twenty-one years. The Committee understands that continued
delay in implementing these repairs may result in a serious disruption
of operations at the airport.
Unexpended funds. --The Committee notes that the FAA currently has
over $60,000,000 in AIP grants over two years old which have outlayed no
funds in over two years. A recent IG report highlights the fact that,
with greater monitoring effort, some of these funds could potentially be
withdrawn and redistributed to other airport projects around the
country. The FAA is encouraged to investigate this issue over the coming
months, in order to maximize the effectiveness of available airport
grant resources.
Miami International Airport, Florida. --The Miami International
Airport (MIA), currently the sixth largest airport in the United States,
is among the fastest growing airports in the country. According to the
FAA's 1996 Aviation Capacity Enhancement Plan, this airport is projected
to increase 115 percent in enplanements and 61 percent in aircraft
movements by the year 2010, placing MIA first in growth among the
nation's largest fifteen airports. This growth will stimulate a need for
increased aviation capacity at the airport in order to minimize delays.
To alleviate future congestion, minimize delay, and allow for growth,
MIA is planning to construct a new runway within the boundaries of this
airport. The new runway could be finished by the year 2002 at a
projected cost of $175 million. The Committee recognizes the need for
capacity enhancements at this airport, and urges the FAA to award
discretionary grants for the new runway project during fiscal year 1998
consistent with existing evaluation criteria.
Dallas/Fort Worth International Airport, Texas. --The Committee
commends Dallas/Fort Worth International Airport (DFW) for successfully
completing, under budget and ahead of schedule, the construction of its
east runway, which has greatly enhanced the capacity of the nation's air
transportation system. The Committee is particularly pleased that DFW
completed this project for approximately $25 million less than the
originally projected total cost, despite substantial mitigation expenses
incurred during construction. As an incentive for other airports to
match DFW's demonstrated ability to efficiently manage public funds and
to use those funds for a documented cost-beneficial project, the
Committee encourages the FAA to give continued favorable consideration
to the funding of the next phase of DFW's comprehensive expansion
program--the construction of its new west runway.
Yucca Valley Airport, California. --The Committee is concerned with
actions taken by the FAA regarding the Yucca Valley Airport in
California. Due to the need for a viable general aviation airport in
Yucca Valley/Joshua Tree, the Committee expects the FAA to conduct a
unbiased site selection study for this area which includes the current
airport in Yucca Valley.
General Provisions
Sixth runway, Denver International Airport. --The bill retains, with
modification, the general provision (sec. 324) enacted beginning in
fiscal year 1995 which restricts funding for engineering, design, or
construction of a sixth runway at the new Denver International Airport,
unless the FAA Administrator determines, in writing, that safety
conditions warrant obligation of such funds. This year the Committee
recommends an exception to the overall prohibition, to allow planning
and analysis activities related to potential noise impacts of the sixth
runway project.
AIRCRAFT PURCHASE LOAN GUARANTEE PROGRAM
The bill includes a zero obligation limitation on borrowings during
fiscal year 1998 under the aircraft purchase loan guarantee program. The
President's budget requested an appropriation of $5,000. The Committee
does not believe this appropriation is justified.
ADMINISTRATIVE SERVICES FRANCHISE FUND
The bill includes a provision prohibiting the FAA from adding new
activities to the Administrative Services Franchise Fund during fiscal
year 1998. The Committee believes that, since the fund has only been in
operation a short time, any expansion of activities included in the fund
should await an evaluation of the fund's effectiveness and cost savings.
FEDERAL HIGHWAY ADMINISTRATION
SUMMARY OF FISCAL YEAR 1998 PROGRAM
The Federal Highway Administration provides financial assistance to
the states to construct and improve roads and highways, enforces federal
standards relating to interstate motor carriers and the highway
transport of hazardous materials, and provides technical assistance to
other agencies and organizations involved in road building activities.
Title 23 U.S.C. and other supporting legislation provide authority for
the various activities of the Federal Highway Administration. Most of
the funding is provided by contract authority, with program levels
established by annual limitations on obligations provided in
appropriations Acts.
The current authorization, the Intermodal Surface Transportation
Efficiency Act of 1991 (P.L. 102 240), expires on September 30, 1997.
The Committee's recommendations herein are based on current law. The
appropriate legislative committees are encouraged to report new
authorizing legislation quickly to ensure the uninterrupted continuation
of the nation's highway programs in fiscal year 1998.
Under the Committee recommendations, a total program level of
$23,245,511,000 would be provided for the activities of the Federal
Highway Administration in fiscal year 1998. This is $2,298,105,446 above
the fiscal year 1997 level, and $1,214,980,000 over the budget estimate.
The following table summarizes the fiscal year 1997 program levels,
the fiscal year 1998 program requests and the Committee's
recommendations:
Program 1997 enacted 1998 estimate 1998 recommended
Federal-aid highways $18,000,000,000 $20,170,000,000
$21,500,000,000
Federal-aid supplemental 694,810,534
Motor carrier safety grants 78,225,000 100,000,000 85,325,000
State infrastructure banks 150,000,000 150,000,000
Transportation infrastructure credit program 100,000,000
Exempt federal-aid programs 2,024,410,000 1,510,571,000
1,660,226,000
------------------- ------------------- ------------------
Total 20,947,445,534 22,030,571,000 23,245,511,000
LIMITATION ON GENERAL OPERATING EXPENSES
Limitation, fiscal year 1997\1\ ($521,114,000)
Budget estimate, fiscal year 1998 (494,376,000)
Recommended in the bill (510,313,000)
xlBill compared with:
Limitation, fiscal year 1997 (-10,801,000)
Budget estimate, fiscal year 1998 (+15,937,000)
\1\Excludes reductions of $1,883,438 to comply with TASC and $141,653 for bonuses and
awards.
This limitation controls spending for the salaries and expenses of
the Federal Highway Administration required to conduct and administer
the federal-aid highways programs and most other federal highway
programs. The limitation includes a number of contract programs, such as
highway research, development and technology, and support for minority
business enterprises. In addition, administrative costs for
highway-related safety grants are transferred to the limitation.
The Committee recommends a limitation of $510,313,000. This amount is
$10,801,000 below the fiscal year 1997 enacted level and $15,937,000
above the level requested in the budget.
The following table summarizes the fiscal year 1997 limitation, the
fiscal year 1998 budget estimate, and the Committee's recommendations:
Program 1997 enacted 1998 estimate 1998 recommended
Administrative expenses (exc. OMC): $176,127,000 $179,065,000
$179,065,000
Motor carrier safety administrative expenses 49,000,000 52,765,000 50,750,000
Contract programs/research and development: 67,124,000 73,903,000 58,165,000
--------------- --------------- ------------------
Total 519,089,000 494,376,000 510,313,000
ADMINISTRATIVE EXPENSES
The Committee recommends a total of $257,337,000 for administrative
expenses. This amount is $9,206,000 more than provided in fiscal year
1997 and $3,921,000 less than the budget request. The recommendation
assumes a reduction from 1997 levels of 80 full time equivalent
positions for a total of 3,165. The Committee recommendation includes
$50,750,000 for motor carrier safety operations, not including the
$7,400,000 for the research, development and technology program.
Salaries and expenses reduction. --The Committee recommendation
includes an account-wide adjustment of $3,400,000. Funds budgeted for
strategic planning and retreats, information resource management (IRM)
activities, travel and transportation, and telecommunications are to be
reduced; however, the Federal Highway Administration is accorded the
flexibility to allocate the reduction. The Committee notes that
activities planned for expanding FHWA's teleconferencing capabilities
and for upgrading or replacing automated data processing equipment can
be deferred pending FHWA's plans on reducing its field office presence.
Rent, communications, and utilities. --The Committee recommendation
for rent, communications, and utilities totals $27,683,000, or $521,000
below the budget request. The Committee has not provided funds requested
for facility security enhancements. GSA has informed the Committee that
the costs of additional security enhancements are not reflected in the
rates that it charges and will not be until fiscal year 1999, when it
proposes to implement a security
surcharge. As such, the Committee believes that the request
for $521,000 is premature at this time. This action will not diminish
security at any of FHWA's facilities.
FHWA streamlining plan. --With the completion of the interstate
system, the FHWA has undertaken several initiatives in the recent past
to assess the various structural elements of its organization to
determine how the programs it administers can be delivered more
efficiently and effectively. While the size and complexity of the
program administered by the FHWA has increased substantially over the
past several years, FHWA will experience a projected reduction in
staffing levels of over eleven percent from a fiscal year 1993 base to
the close of fiscal year 1999. A three-level organization (i.e.,
headquarters, regional offices, and state-level division offices)
remains in place today.
The Committee is concerned that the FHWA has not seriously addressed
the efficiency of delivering programs through its current field
structure. In particular, it is not clear to the Committee the value
added by regional offices for program delivery, or whether they
represent a necessary management layer. Therefore, the Committee directs
the FHWA to submit a report to the House and Senate Committees on
Appropriations no later than ninety days after the enactment of this
Act. The report shall contain a detailed implementation plan for
streamlining its field structure, with special emphasis on eliminating
or significantly reducing the regional office structure. The report
shall also include: specific milestones for implementation of the
streamlining plan; a statement of the number of facilities to be closed;
a statement of costs, by year, associated with implementing the
streamlining plan; an assessment of employee impacts; and an assessment
of the impacts of the streamlining on delivery of the federal-aid and
motor carrier programs administered by FHWA, including the priority
activities that can be addressed by redeploying personnel resources.
Motor carrier safety operations. --The Committee recommends
$50,750,000 for motor carrier safety operations, not including
$7,400,000 for research. This is an increase of $1,750,000 above the
1997 enacted level, but $2,015,000 less than requested. At this level,
salaries and benefits, travel, printing, and supplies and materials
increases are fully funded. Other service programs have received a 5
percent increase instead of the 44 percent increase requested.
Miller Highway. --The Committee has continued a prohibition (sec.
332) on the use of funds for the improvement of the Miller Highway in
New York City, New York.
CONTRACT PROGRAMS
The limitation on general operating expenses includes a total of
$202,226,000 for contract programs. This represents a decrease of
$19,732,000 from the fiscal year 1997 level. The Committee has deferred
consideration of a number of FHWA's contract programs since the
Department has proposed within its surface transportation
reauthorization proposal to fund these activities from contract
authority to be available outside the annual limitation. These programs
include: local technical assistance; the National Highway Institute;
various components of the intelligent transportation systems program;
and the long term pavement performance program. The Committee expects
that the appropriate legislative committees will consider this request
during their deliberations on the reauthorization of the Intermodal
Surface Transportation Efficiency Act. No changes from the budget
request are recommended for the National Advanced Driving Simulator,
minority business enterprises, rehabilitation of the Turner-Fairbanks
facility and for research and technology technical support programs.
HIGHWAY RESEARCH, DEVELOPMENT AND TECHNOLOGY
The Committee directs the FHWA to prepare a five-year strategic plan
for its research and development (R&D), training, and technology
transfer and deployment activities and programs. The plan should be
prepared in consultation with the American Association of State Highway
and Transportation Officials and the National Academy of Sciences. The
plan should be submitted to the House and Senate Committees on
Appropriations concurrently with the Department's annual budget
justifications beginning in fiscal year 1999. FHWA should ensure that
the plan assesses the short- and long-term R&D and technology deployment
activities which offer the greatest potential payoffs. FHWA should
reallocate future funding requests based on this objective assessment.
Evidence of this reallocation of funds should be reflected in the fiscal
year 1999 President's budget.
To ensure that resources devoted towards advanced research,
technology deployment, intermodal research, and strategic planning are
properly allocated, the Committee expects the fiscal year 1999 budget
submittal to delineate proposed LGOE expenditures as well as the
proposed use of any contract authority. The Committee appreciates the
improvement in the budget justification that was evidenced in the fiscal
year 1998 budget submittal.
The Committee recommends $58,165,000 for highway research,
development and technology programs. The following table summarizes the
fiscal year 1997 program level, the fiscal year 1998 budget estimate and
the Committee recommendations for the various research areas:
Program 1997 program 1998 estimate 1998 recommended
Safety $8,650,000 $9,000,000 $9,500,000
Pavements 19,731,000 11,150,000 10,000,000
Structures 14,362,000 15,256,000 14,000,000
Environment 5,443,000 5,566,000 5,500,000
Right-of-way 322,000 365,000 365,000
Policy 5,328,000 8,000,000 5,400,000
Planning 5,889,000 16,025,000 6,000,000
Motor carrier 7,399,000 8,541,000 7,400,000
--------------- ---------------- -------------------
Total 67,124,000 73,903,000 58,165,000
Within the funds provided for highway research and development, the
Committee has provided up to $100,000 for the San Joaquin Valley air
quality study.
Safety .--The Committee recommends $9,500,000 for safety, including
an additional $500,000 for pedestrian and bicycle safety research. As
submitted,
FHWA's request would continue the allocation of insufficient
funds towards these areas of highway safety research. Crashes involving
pedestrians and bicyclists result in some 6300 deaths annually. New
technologies and approaches should be pursued, especially at
intersections, where 2300 pedestrians and bicyclists are killed each
year in crashes. To address this significant highway safety problem, the
FHWA shall conduct research that is focused on integrating consideration
of these users of the highway system into the planning and design of
both traditional intersections and new intersection treatments, such as
roundabouts. Furthermore, the relative allocation of funds between
pedestrian safety, bicycle safety, and work zone safety should be
reevaluated by the Research and Technology Executive Board of FHWA and
the Research and Technology Coordinating Committee of the TRB. A new
high priority research program for pedestrian and bicycle safety should
be forthcoming in the fiscal year 1999 budget request. Lastly, the
Committee directs that the total amount of funds (LGOE and contract
authority) allocated for highway safety research and development
activities in fiscal year 1998 shall exceed the total amount provided in
fiscal year 1997.
Within the funds provided for highway safety research, funds are to
be used to develop and test standardized training materials and courses
that are offered by certified instructors for instructor, adult and
child bicyclist safety education. An evaluation of the effectiveness of
these courses in reducing bicycling crashes and associated fatalities
and injuries shall also be conducted. All courses shall include
substantial on-road bicycle safety training.
Pavements .--The Committee recommends $10,000,000 for pavements
research and development. Although FHWA has tried to increase cost
sharing for this program, the Committee maintains that more vigorous
efforts are necessary. Of the funds provided, $1,000,000 shall not be
obligated until FHWA has increased substantially the amount of cost
sharing that it receives for the fiscal year 1998 pavements program when
compared to the amount of similar matches received for the fiscal year
1997 program. FHWA shall submit documentation showing increased
contributions for comparable program efforts (other than long-term
performance pavement) to the House and Senate Committees on
Appropriations fifteen days prior to obligating these reserved funds.
Within the funds provided, the Committee encourages the FHWA to
accelerate research on highway operations, including the development of
new approaches to highway construction, and the improvement of
construction materials, procedures, and operating specifications. This
investment will help develop technologies to repair a section of highway
quicker than conventional methods allow. The objective is to reduce the
exposure of the motoring public to highway construction activities, thus
reducing congestion and accident risk. By accelerating construction
processes in combination with the use of higher performing materials and
practices, the life of highways will be extended, overall costs and the
need for repairs reduced, and safety improved.
Structures .--The Committee recommends $14,000,000 for the
structures research program. Substantial progress continues to be made
in developing non-destructive evaluation (NDE) technologies. FHWA
already has helped to commercialize three NDE technologies and the R&D
pipeline contains twenty-five additional technologies that are being
tested. The ``find it and fix it'' approach being pursued under the
structures program will yield a variety of technologies of direct
benefit to the state and local highway communities. The Committee
expects the FHWA to conduct a more vigorous effort to obtain cost
sharing with the private sector. To encourage this cost sharing,
$2,000,000 of the funds provided for the structures program shall not be
obligated until the FHWA demonstrates to the House and Senate Committees
on Appropriations that it has substantially increased its cost sharing
arrangements.
The Committee encourages the FHWA to work with the State of Michigan
in the use of advanced carbon and glass composites as reinforcements for
concrete to replace steel in the manufacture of pre-stressed bridge
beams and bridge decks. To the extent practicable, FHWA shall assist the
state in designing a monitoring protocol and installing or deploying
active monitoring devices. This technology has the potential to impart
significant advantages in the construction of vehicular bridges over
conventional reinforcing materials.
Environment .--The Committee recommends $5,500,000 for environmental
research and directs that the recommendations in the recent TRB report
on clean air and transportation modeling concerns be appropriately
addressed.
Right-of-way .--The Committee recommends $365,000, the same as
requested in the budget.
Policy .--The Committee recommends $5,400,000 for policy research.
FHWA should ensure that the highest priority for these funds is to
provide the states with information and tools, such as HPMS, HERS,
life-cycle cost analysis, and cost allocation models, to better evaluate
the cost-benefit of their investments. The Policy Office should continue
its efforts to delineate which data are most critical to FHWA's mission
and which data are most needed by the states. Unnecessary conferences
and data collection activities should be eliminated. Use of the internet
should reduce publication expenses and increase funds available for
additional and more targeted policy research. FHWA should ensure that
any contract funds (e.g., from the new National Technology Deployment
Initiatives
Program or the advanced research program), if authorized,
should be used to supplement the most pressing policy research needs.
Planning. --The Committee recommends $6,000,000 for planning,
research and development. Within the funds provided, FHWA shall allocate
$2,000,000 for TRANSIMS, an advanced travel modeling project. The
Committee anticipates that additional funding to support TRANSIMS will
be derived from contract authority provided within the reauthorization
of the Intermodal Surface Transportation Efficiency Act. The Committee
directs FHWA to submit a report to the House and Senate Committees on
Appropriations detailing how the TRANSIMS project will be completed
during the next few years, plans for pilot testing, and future federal
funding contributions that may be necessary. This plan shall be
submitted before March 1, 1998.
The Committee has not provided any funds for research related to
sustainable communities. This proposal was not adequately reviewed by
the FHWA's Research and Technology Executive Board or TRB's Research and
Technology Coordinating Committee. Furthermore, the budget submission
does not adequately justify the program request. Before the Committee
provides funds for this initiative, evidence of substantial cost sharing
from interested parties and from other federal agencies must be
obtained, and requests for pilot projects should be documented from
several states.
Motor carrier. --The Committee recommends $7,400,000 for motor
carrier research. This is the same level as enacted last year; however,
from this total, $537,000 was redistributed to research and technology
(R&T) technical support. In fiscal year 1998, the Committee has provided
separate funding for R&T technical support.
In the past, the Office of Motor Carriers' (OMC) research funds have
been supplemented with intelligent transportation systems (ITS) funds.
Last year, for example, OMC received $800,000 in additional dollars from
the ITS account for a variety of research activities. It is possible
that a sizable infusion of funding will be received in fiscal year 1998,
and as such, the Committee does not see any need to increase OMC's R&D
funding this year.
The Committee continues to be supportive of the national advanced
driving simulator and is pleased to note that OMC plans to contribute
$450,000 in research funds for development efforts. This funding will be
used to incorporate a class eight tractor as one of the four research
components in the simulator, which will allow OMC to analyze driver
fatigue, the effects of inclement weather, and the dynamics of single or
multiple trailers on driver performance. The Committee directs OMC to
keep this funding at the budgeted level in fiscal year 1998 and
encourages the office to consider a like amount in fiscal year 1999.
The Committee is concerned that OMC may be overburdened with R&D
projects. Currently, this account has over 20 ongoing fatigue-related
projects, many of which have been in existence for five or more years.
As such, the Committee has not provided additional funding to begin new
initiatives. If OMC believes that additional projects are necessary, it
should coordinate with the trucking industry to develop and initiate
jointly funded projects.
Intelligent transportation systems (ITS). --The Committee recommends
$94,600,000 for continued research in intelligent transportation
systems. In addition to these funds, the Department has requested in its
surface transportation reauthorization proposal another $196,000,000 in
contract authority outside the limitation on general operating expenses.
The results of past investments in ITS are beginning to be realized.
Numerous evaluations have quantified the initial contributions of ITS to
promoting the efficiency and safety of our nation's surface
transportation system. FHWA, FTA and NHSTA should continue supporting
these studies. The Committee is pleased with the overall progress of the
national ITS program. States, MPOs, and local governments are investing
$1,000,000,000 per year or more into ITS projects. As new technologies
are advanced and as the benefits of these systems are realized, the
total amount invested in ITS is expected to increase substantially.
The Committee is concerned, however, about the number of ITS projects
that are over budget, requiring cost adjustments, delayed because of
renegotiations of agreements among partners, or need to be reconfigured.
The Committee directs the joint program office (JPO) more closely
monitor federally sponsored operational tests and deployment projects to
ensure that problems are addressed earlier in the innovation process.
The Committee is also disturbed to learn that $4,000,000 of the
$10,000,000 provided last year for the RT TRACS project was used,
without proper consultation, for a variety of purposes other than
operational testing.
The director of the JPO is urged to accelerate the Department's
facilitation of the standards process and to reallocate funds from less
important activities, such as mainstreaming, training, outreach, and
meetings and travel for contractors and consultants, to achieve this
objective. Although some limited progress has been made, the
standards-setting process must be accelerated substantially beyond the
pace now envisioned. The adoption of more standards is needed to ensure
interoperability. The Committee directs that ITS projects that are
federally financed shall be consistent with the national ITS systems
architecture and approved ITS standards. This requirement is necessary
to ensure that federal funds used in the national ITS program are not
wasted by being utilized in purely local, non-interoperable systems and
technologies. The Committee also directs that all actions necessary be
taken to secure the communications spectrum necessary for ITS.
The following table depicts the 1997 program level, the fiscal year
1998 budget estimate, and the Committee's recommendation for the ITS
program by activity:
Program 1997 program 1998 estimate 1998 recommended
Intelligent transportation systems: $28,605,000 $33,000,000 $30,000,000
-------------- --------------- ------------------
Total, ITS 120,358,000 54,000,000 94,600,000
ITS research and development. --The Committee recommends $30,000,000
for ITS research and development, $3,000,000 less than the amount
requested. Within the funds provided, the Committee has included
$1,500,000 for highway/rail intersection innovative research, instead of
$3,500,000 requested in the budget. Considerable unspent funds in this
area remain, and progress on previously designated projects to advance
this technology has been slow. The Committee recommends $6,000,000 for
traffic management and control research.
The Committee continues to support FHWA's efforts to advance and
deploy the commercial vehicle information system and network (CVISN). In
addition to developing the key technologies and information systems
needed to improve the MCSAP and to promote automated and safe clearance,
FHWA has made substantial progress in the area of deployment as
evidenced by ten states now participating in the CVISN projects, and 25
other states developing plans for future involvement. FHWA has set an
example of how to forge successful partnerships with numerous
stakeholders to advance and deploy ITS/CVO technology. This program is
already beginning to promote motor carrier safety and productivity and
will be of direct benefit to state regulatory and safety officials.
Consequently, the Committee is recommending $7,900,000 for CVO research
activities, which is $400,000 more than requested.
More than 1000 sites are now using the ASPEN computer system with the
inspection selection process built into it. The Committee believes that
continuing to improve these roadside links is important in order to
advance driver- and vehicle-specific information systems. The fiscal
year 1998 priorities for the CVO shall be: to expand the CVISN to
additional states; to improve data communication links at the roadside;
and to advance and test the safer driver/vehicle information system at
one additional location during fiscal year 1998. This system should
provide both improved information storage and data communications, be
able to accommodate data on intrastate carriers, and be designed in such
a manner as to be compatible with future CVISN capabilities. Within the
funds provided, the Committee has allocated $400,000 to advance the
system.
FHWA should assist the states now participating in the CVISN to
incorporate within their information systems the capabilities developed
under the 200/50 site effort, including carrier prioritization, and
prior inspection retrieval. MCSAP officers already report substantial
benefits from this system. FHWA should ensure that data communications
improvements continue at a substantial pace.
Consistent with past directives, the Committee continues to believe
that the highest priority for the use of federal CVISN funds must be to
improve safety. As part of the package of user services being pursued by
CVISN pilot and prototype projects, safety functions should receive
priority funding. None of the funds provided for this program shall be
used to link internal carrier or private sector information systems for
shippers, banks, and insurers. Uses of CVISN that do not directly and
substantially benefit state governments should be funded almost
exclusively by the private sector.
The Committee maintains that the highest priority should be assigned
for the crash avoidance research and operational test program of NHTSA.
The Director of the ITS joint program office shall ensure that
sufficient funds are provided to continue NHTSA's ITS program and is
guided by its new five-year ITS strategic plan. The Committee requests
NHTSA and the JPO to maximize the non-federal contribution of any
research regarding user acceptance or marketability of ITS products,
especially given the direct economic benefits to the private sector of
such research. Furthermore, research to determine the costs and benefits
of crash avoidance technologies should be designed not to duplicate
private sector responsibilities.
The Committee notes that NHTSA's ITS program has successfully
developed several technologies and systems that can be used as
measurement tools
in crash avoidance research. Research should maximize the use
of these new tools and future budget requests should minimize
expenditures on additional tools until the current methodologies are
fully exploited.
The Committee recommends $7,500,000 for enabling research. Within
these funds, the Committee provides $250,000, as requested, to upgrade
the driving simulator facility. The Committee questions the need to
continue funding construction and improvements at both the fixed based
simulator at the NADS and the fixed based simulator at the
Turner-Fairbanks facility. The Administrator of the Federal Highway
Administration is directed to provide to the House and Senate Committees
on Appropriations a report detailing why both facilities are required.
The Committee strongly supports the investment of $7,000,000 for
rural ITS research and operational tests. The Committee believes that
sufficient time and effort has been spent studying rural ITS needs and
that it is time to accelerate operational testing. The ITS joint program
office shall ensure that funds made available for rural ITS operational
tests receive primary consideration.
The ITS program has yielded technologies capable of rapidly detecting
the location of crashes and traffic congestion. Relatively little
investment has been made to optimize the capabilities of response
vehicles that are critical to restoring traffic flow. FHWA is requested
to conduct a review of the state of technology and practice associated
with incident response vehicles, and to assess what technological
improvements are necessary to improve response time and stimulate
technology transfer as part of a comprehensive ITS program. The review
should be completed before March 1, 1998.
While a number of operational tests have been undertaken in the ITS
program to test a myriad of potential applications, the Committee is not
aware that the JPO has considered the integration of advanced electronic
and information technologies for snow and ice management. Within the
funds provided for ITS research and development, the Committee
encourages the JPO to support testing of an integration of automated
vehicle location using global positioning systems, geographic
information systems, and communications technologies designed
specifically to enhance the efficiency and effectiveness of winter
maintenance operations in urban, suburban and rural areas.
Automated highway systems (AHS)/advanced crash avoidance. --The
budget requested that funding provided for the automated highway systems
and crash avoidance programs be from contract authority rather than
funds under the limitation on general operating expenses. Accordingly,
the Committee defers consideration of this request to the appropriate
legislative committees. The Committee strongly supports the action of
the joint program office to commission a review of the AHS program by
the Transportation Research Board (TRB) of the National Academy of
Science. The results of the TRB review should be incorporated into a
revised five-year strategic program plan to be submitted to the House
and Senate Committees on Appropriations. Uncertainties regarding the
future of this national program dictate prudence and careful evaluation
of the options. The Committee expects that the JPO will ensure that the
TRB carefully considers how to balance long-term infrastructure
dimensions of the AHS with the need for more immediate short-term safety
improvements. The Committee expects that the progress achieved by the
AHS consortium will be continued, either by the consortium or through
other means, but with a refocused balance including the attainment of
short-term safety objectives.
Operational tests. --The Committee recommends a total of $50,000,000
for operational tests. Within the funds provided, $1,000,000 has been
included to expedite operational testing of ITS safety functions. The
remaining $49,000,000 is provided for the following operational tests:
Advanced transportation weather information system, University of North Dakota
$750,000
Arizona National Center for Traffic and Logistics Management 1,000,000
Commercial vehicle operations, I 5, California 3,000,000
Cumberland Gap tunnel, Kentucky 3,100,000
Dade County Expressway, Florida toll collection system 2,000,000
Franklin County, Massachusetts traveler information system 875,000
Greater Milwaukee freeway traffic management system (MONITOR) 1,000,000
Houston, Texas 2,000,000
I 90/I 94 rural ITS corridor, Wisconsin 1,700,000
Inglewood, California 500,000
Louisiana Interstates 55, 10, and 610, ITS systems 7,000,000
Market Street and Pennsylvania convention center passenger information system
325,000
Minnesota Guidestar 8,000,000
Nashville, Tennessee traffic guidance system 1,500,000
National capital region congestion mitigation 8,000,000
National Institute for Environmental Renewal 1,000,000
I 90 connector, Rensselaer County, New York 2,500,000
I 275, St. Petersburg, Florida 1,000,000
Syracuse, New York advanced transportation management system 1,500,000
Texas Transportation Institute 1,000,000
Rt. 236/I 495, Northern Virginia, ITS systems 500,000
Western Transportation Institute 750,000
Advanced transportation weather information system, University of
North Dakota. --The Committee has provided $750,000 for the Advanced
transportation weather information system at the University of North
Dakota, a rural ITS initiative which provides short-range weather and
road condition forecasts using interactive voice technologies. The
project is jointly funded with private sector interests and, consistent
with earlier directions by this Committee, intends to be totally
commercialized by 2001 when federal support is eliminated.
Minnesota Guidestar. --As noted in a February 1997 General
Accounting Office report, Minnesota Guidestar continues to be a national
leader in research and deployment of ITS technologies. The Committee
commends these efforts and urges Guidestar to continue its efforts to
successfully integrate ITS technologies into a multi-modal
transportation system. The Committee provides $8,000,000 for Minnesota
Guidestar. Up to 25 percent of this amount may be made available to the
University of Minnesota's Center for Transportation Studies and the
Humphrey Institute of Public Affairs to support education, research and
training aspects of the project.
National Capital region congestion mitigation ITS deployment
project. --The Committee recommends $8,000,000 for the national capital
region congestion mitigation ITS deployment project. Within the funds
provided, $1,000,000 shall be for George Mason University to assist in
the capital beltway deployment project as well as to establish an ITS
implementation center at the university.
Evaluations/program assessment. --The Committee recommends
$7,000,000 for evaluation and program assessment activities.
Mainstreaming. --The Department requests a total of $10,000,000 for
mainstreaming activities, of which $3,000,000 is requested under the
limitation of general operating expenses and the balance from contract
authority. The Committee has not provided the $3,000,000 requested for
awareness and advocacy activities. These funds are better spent on
operational testing and research and development activities. The
Committee defers consideration of the contract authority request to the
appropriate legislative committees.
A limited ITS mainstreaming program, including technical assistance
and outreach, will benefit state and local governments. The Department
proposes, however, to spend some $22,000,000 on these activities.
Numerous ITS benefits already have been documented as a result of
investing in more than eighty operational tests and eleven model
deployment projects. These studies, as well as the hundreds of visits to
ITS facilities by state employees and officials that have already been
supported by the FHWA, reduce the need for a substantial increase in
mainstreaming activities. Furthermore, the Committee believes that,
although a limited training program would be useful, the training
program proposed is unprecedented in recent FHWA experience. The
proposed expenditure of $10,000,000 for training would be in addition to
the funds requested for training through the National Highway Institute
and the local technical assistance program centers. This inordinate
amount of funding requested for training would raise questions about the
appropriate role of the Department vis-a-vis the role of the civil and
electrical engineering departments in the nation's universities and
colleges. Moreover, the Committee does not believe it appropriate or
warranted that federal funds be used to fund scholarships to support
international travel of non-federal personnel.
Technology assessment and deployment. --The Committee recommends
$13,311,000 for technology assessment and deployment. No funds are
provided for the national rural development project. The Committee
directs that funds expended in fiscal year 1998 for assessment and
deployment of safety-related technologies shall exceed the amount
allocated in fiscal year 1997.
Although the office of technology applications at FHWA has obtained
substantial cost sharing for its program, the Committee believes that
additional non-governmental funds can be obtained to strengthen this
program since the private sector often receives direct financial
benefits from the products of the program. To ensure greater leverage of
federal funds, the Committee directs that $1,000,000 of the funds
recommended shall not be obligated until the FHWA receives substantially
increased cost-sharing from non-federal sources for comparable
technology assessment and deployment activities. Such documentation
shall be provided to the House and Senate Committees on Appropriations
for approval to obligate the funds placed in reserve.
For several years, the Committee has encouraged FHWA's office of
highway safety and office of technology applications to develop and
deploy new highway safety campaigns and outreach efforts. FHWA has
responded with useful outreach campaigns such as work zone safety,
``safety by design'', and ``read your road''. The Committee strongly
encourages these offices to accelerate their preliminary work to develop
new campaigns to address run-off the road crashes, aggressive driving,
and crashes due to failure-to-yield. The Committee expects at least two
new campaigns to be underway in pilot testing by next year.
International transportation. --The Committee recommends $900,000
for the international transportation program. The Committee's
recommendation merges the technical assistance to Russia program into
the international program. Within the funds provided for the
international program, no more than $400,000 may be expended to support
the Russia program. The Committee has not provided funds for the Pan
American Institute of Highways, which was previously funded through
appropriations made to the National Highway Institute. If the FHWA
believes that continued involvement in this international organization
is needed, funds made available to the National Highway Institute can be
used.
The Committee believes that substantially increased leveraging of
federal funds with private sector funds should be obtained to support
the international program. Many of the activities supported by this
program are of direct benefit to
the private sector. FHWA should increase its private sector
contributions to expand partnerships under this program.
Turner-Fairbanks renovation. --The Committee recommends $2,000,000
to complete the renovation of the Turner-Fairbanks complex. Together
with the funds provided for improved equipment at the facility, there
does not appear to be any need for further capital improvements at this
facility for the next several years.
Technical assistance to Russia. --Funds for this activity have been
provided under the international transportation program beginning in
fiscal year 1998.
GPS. --The Committee recommends $1,000,000 for the GPS system, which
is $1,100,000 less than requested. Additional funding has been provided
for GPS-related activities within the Office of the Secretary.
HIGHWAY-RELATED SAFETY GRANTS
(LIQUIDATION OF CONTRACT AUTHORIZATION)
(HIGHWAY TRUST FUND)
Appropriation, fiscal year 1997 ($2,049,000)
Budget estimate, fiscal year 1998 (4,000,000)
Recommended in the bill (--)
xlBill compared with:
Appropriation, fiscal year 1997 (-2,049,000)
Budget estimate, fiscal year 1998 (-4,000,000)
The highway-related safety grant program assists states and
localities in implementing highway safety standards administered by the
Federal Highway Administration. These standards cover traffic control
devices, highway surveillance, and highway-related aspects of pedestrian
safety. In fiscal year 1997, this program was merged with the National
Highway Traffic Safety Administration's section 402 program. The
Committee has not provided the requested liquidating cash appropriation
of $4,000,000, because sufficient liquidating cash is provided for this
activity under NHTSA's section 402 program in fiscal year 1998.
FEDERAL-AID HIGHWAYS
(LIQUIDATION OF CONTRACT AUTHORIZATION)
(HIGHWAY TRUST FUND)
Appropriation, fiscal year 1997 ($19,800,000,000)
Budget estimate, fiscal year 1998 (19,800,000,000)
Recommended in the bill (20,800,000,000)
xlBill compared with:
Appropriation, fiscal year 1997 (+1,000,000,000)
Budget estimate, fiscal year 1998 (+1,000,000,000)
The Committee recommends a liquidating cash appropriation of
$20,800,000,000 for the federal-aid highways program. This is
$1,000,000,000 more than provided last year or included in the budget
estimate. This increase is necessary to pay the outstanding obligations
of the various highway programs anticipated at the levels assumed in the
Committee recommendation.
FEDERAL-AID HIGHWAYS PROGRAM
The current authorization for federal-aid highways programs, the
Intermodal Surface Transportation Efficiency Act (ISTEA) of 1991 (P.L.
102 240), expires at the end of fiscal year 1997. The Committee's
recommendations for federal-aid highways programs are based on current
law. The appropriate legislative committees are encouraged to
reauthorize the surface transportation programs before the end of this
fiscal year to ensure that federal financial assistance to states and
localities to build and rehabilitate the nation's infrastructure is not
interrupted. The following discussion is based on current law.
Federal-aid highways and bridges are managed through a federal-state
partnership. States and localities maintain ownership and responsibility
for maintenance, repair and new construction of roads. State highway
departments have the authority to initiate federal-aid projects subject
to FHWA approval of plans, specifications, and cost estimates. The
Federal Government provides financial support for construction and
repair through matching grants, the terms of which vary with the type of
road.
There are almost four million miles of public roads in the United
States and approximately 577,000 bridges. The federal government
provides grants to states to assist in financing the construction and
preservation of about 945,000 miles (24 percent) of these roads, which
represents an extensive interstate system plus key feeder and collector
routes. Highways eligible for federal aid carry about 85 percent of
total U.S. highway traffic.
Federal-aid highways funds are made available through the following
major programs:
National highway system. --The Intermodal Surface Transportation
Efficiency Act (ISTEA) of 1991 authorized--and the National Highway
System Designation Act of 1995 subsequently established--the National
Highway System (NHS). This 160,000-mile road system is the culmination
of years of effort by many organizations, both public and private, to
identify routes of national significance. It includes all interstate
routes, a large percentage of urban and rural principal arterials, the
defense strategic highway network, and major strategic highway
connectors, and is estimated to carry up to 70 percent of commercial
truck traffic and 40 percent of all vehicular traffic. A state may
choose to transfer up to 50 percent of its NHS funds to the surface
transportation program category. If the Secretary approves, 100 percent
may be transferred. The federal share for the NHS is 80 percent, except
for the interstate portion which is generally 90 percent, with an
availability period of 4 years.
Surface transportation program.-- ISTEA also established the Surface
Transportation Program (STP). The STP is a very flexible program that
may be used by the states and localities for any roads (including NHS)
that are not functionally classified as local or rural minor collectors.
These roads are collectively referred to as federal-aid highways. Bridge
projects paid for with STP funds are not restricted to federal-aid
highways but may be on any public road. Transit capital projects are
also eligible under this program. The total funding for the STP may be
augmented by the transfer of funds from other programs and by equity
adjustments which may be used as if they were STP funds. Once
distributed to the states, STP funds must be used according to the
following percentages: 10 percent for safety construction, 10 percent
for transportation enhancement, 50 percent divided among areas of over
200,000 population and remaining areas of the state, and 30 percent for
any area of the state. Areas of 5,000 population or less are guaranteed
an amount based on previous secondary funding. The federal share for the
STP program is 80 percent with a 4-year availability period.
Each state receives an amount in addition to its regular
apportionments so that its total funding reaches a legislative
percentage established in ISTEA. This additional amount is called ``hold
harmless.'' Hold harmless funds are used as if they were STP funds
except that only one-half of the funds received are subject to
set-asides and sub-state distribution requirements of the STP.
Each state is also guaranteed that its apportionments for the current
fiscal year and its allocations for the previous fiscal year will be an
amount that is at least equal to 90 percent of the state's contributions
to the highway account of the highway trust fund. The additional amount
is called the ``90 percent of payments guarantee.'' Funds are
distributed in the same manner as hold harmless funds.
Interstate construction.-- The designation of a 40,000-mile
interstate system was authorized by Congress in 1944 to serve the needs
of national defense, to link the nation's largest cities, and to connect
with key Canadian and Mexican highways at suitable border points. Since
1944, the system has gradually been expanded, now encompassing 42,794
miles of designated routes. From December 1994 to December 1995, an
additional 15 miles of the interstate system were opened to traffic.
This brings the total number of miles open to traffic as of December 31,
1995, to 42,764 miles, or 99.9 percent of the total system. In addition,
the remaining 30 miles included 25 miles under construction and 5 miles
under design development and right-of-way acquisition. Funding
authorization for this program terminated in fiscal year 1995.
Bridge replacement and rehabilitation program.-- This program is
continued by ISTEA to provide assistance for bridges on public roads
including a discretionary set-aside for high cost bridges. Bridges on
Indian reservation roads are given special attention. Besides the
inventorying and inspection of these bridges, one percent of a state's
annual bridge apportionment is to be used for such eligible projects.
Fifty percent of a state's bridge funds may be transferred to the NHS or
the STP.
Interstate maintenance.-- This program, established by ISTEA,
basically replaces the I 4R program. It finances projects to
rehabilitate, restore, and resurface the interstate system.
Reconstruction of bridges, interchanges, and over-crossings along
existing interstate routes is also an eligible activity if it does not
add capacity other than high occupancy vehicle (HOV) and auxiliary
lanes.
Interstate system reimbursement.-- This program, established by
ISTEA, provides a new category of funding for the purpose of reimbursing
states for their cost of constructing segments of the interstate system
without federal assistance in the early days of the interstate
construction program. Funds are used as STP funds, except that one-half
of the amount received by a state is not subject to the set-asides or
sub-state distribution rules of that program.
Congestion mitigation and air quality improvement program.-- This
program provides funds to states to improve air quality in
non-attainment areas for ozone and carbon monoxide. A wide range of
transportation activities are eligible, as long as DOT, after
consultation with EPA, determines they are likely to help meet national
ambient air quality standards. If a state has no non-attainment areas,
the funds may be used as if they were STP funds.
Federal lands highways. --This program provides for three road
categories: Indian reservation roads, parkways and park roads, and
public lands highways (which incorporates the previous forest highways
category). Funds are allocated on the basis of relative needs except
that the forest highway portions of public lands highways and Indian
reservation roads are allocated by administrative formula.
Minimum allocation .--Each state is guaranteed an amount so that its
percentage of apportionments in each fiscal year from the total of
interstate construction, interstate maintenance, interstate
substitution, national highway system, bridge program, surface
transportation program, scenic byways, and safety belt and motorcycle
helmet grants, plus allocations received in the prior year, must not be
less than 90 percent of the state's percentage of estimated highway
trust fund contributions. The contributions used in the calculation are
from two years prior to the current fiscal year--the latest year for
which data are available.
Emergency relief.-- This program provides for the repair and
reconstruction of federal-aid highways and federally-owned roads which
have suffered serious damage as the result of natural disasters or
catastrophic failures. ISTEA modified previous law slightly: the
territorial limitation was raised to $20,000,000 per fiscal year, and
the number of days a state or territory has to make emergency repairs in
order to receive a 100 percent federal share was increased to 180 days.
HIGHWAY TRUST FUND FINANCING MECHANISM
The highway trust fund was originally established in the U.S.
treasury in accordance with provisions of the Highway Revenue Act of
1957, as amended (23 U.S.C. 12 note). It has been extended several
times, most recently by the Intermodal Surface Transportation Efficiency
Act of 1991 (Public Law 102 240). Amounts equivalent to taxes on
gasoline, diesel fuel, special motor fuels, tires, commercial motor
vehicles, and truck use are designated by the Act to be appropriated and
transferred from the general fund of the treasury to the trust fund.
These transfers are made at least monthly on the basis of estimates by
the Secretary of the Treasury, subject to adjustments in later transfers
based on the amount of actual tax receipts. Amounts available in the
fund in excess of outlay requirements are invested in public debt
securities and interest thereon is credited to the fund. There are also
credited to the fund repayable advances from the general fund, as
authorized and made available by law, to meet outlay requirements in
excess of available revenues during a portion of a fiscal year, if
necessary.
The Surface Transportation Assistance Act (STAA) of 1982 established
a mass transit account within the trust fund to be funded by one-ninth
of the excise tax collections under sections 4041 and 4081 of the
Internal Revenue Code (26 U.S.C.) imposed after March 31, 1983. The
funds from this account are used for expenditures in accordance with
section 21 of the Federal Transit Act.
Subsequent legislation has increased the total federal tax levied on
each gallon of gasoline to 18.3 cents, of which 12 cents is applied to
the highway account, 2 cents to the mass transit account, and 4.3 cents
for deficit reduction.
Amounts required for outlays to carry out the federal-aid highway
program are appropriated to the Federal Highway Administration. Other
charges to the trust fund are made by the Secretary of the Treasury for
transfers of certain taxes to the land and water conservation fund and
to the aquatic resources trust fund, for refunds of certain taxes,
repayment of advances from the general fund, and for the interest on
advances. Amendments to the Internal Revenue Code in the 1982 STAA
related to the highway trust fund require that before an apportionment
is made, the Secretary of the Treasury must determine that adequate
revenues will be available to meet these expenditures within 24 months
after the close of the fiscal year for which the apportionment is made.
HIGHWAY TRUST FUND SPENDING VERSUS RECEIPTS
In recent years, there has been much discussion about alleged
shortfalls in the amount spent by the Federal Government for highway
programs compared to the amount of highway user taxes it collects.
Charges have been made that highway spending has been set significantly
below the level of taxes being collected in an effort to make the
federal deficit smaller. A closer examination of expenditures and
receipts shows that this is not the case. As can be seen from the table
in this section, total highway trust fund (highway account) outlays have
exceeded trust fund tax receipts in 10 of the 21 years since 1976.
Part of the confusion results from a failure to distinguish between
the unexpended and unobligated balances in the trust fund. For example,
there was an estimated $12,118,000,000 cash balance in the highway trust
fund's highway account at the end of fiscal year 1996.
Following is a description of this situation contained in a May 1989
GAO report:
According to FHWA, the balance in the Highway
Account has often been misunderstood, with many believing that
the balance represents excess cash that will not be needed to
pay commitments. This view, however, is not an accurate
portrayal of the Highway Account balance since these funds
are, in fact, needed to pay outstanding commitments. It should
also be noted that the Highway Trust Fund exists only as an
accounting record. User taxes are actually deposited in the
U.S. Treasury and amounts equivalent to these taxes are
transferred to the Trust Fund as needed.
How the Trust Fund functions becomes clearer when
it is compared with an individual's charge account. For
discussion purposes, assume that an individual has $1,000 in
cash from previous monthly paychecks but also has outstanding
charges amounting to over $1,500. In this case, the $1,000 in
cash cannot be considered excess because it is needed to pay
the incoming charges. On the other hand, the individual is
also not in a deficit situation since at the end of the month
his or her $900 paycheck will be available to help pay the
outstanding charges. This scenario is repeated in each
succeeding month. Thus, the cash the individual has on-hand
plus a future paycheck helps to ensure there will be
sufficient funds to pay all outstanding charges.
Similarly, according to FHWA Office of Policy Development data, the
Highway Account had a balance of $9 billion at the end of fiscal year
1988, which is analogous to the $1,000 cash-on-hand. At the same time,
these FHWA data show that unpaid commitments (charge account balance)
amounted to almost $31 billion; $22 billion more than the account
balance. This situation, however, is acceptable under a reimbursable
system because, although commitments to make payment have been made,
payment is not made until the states submit actual bills for completed
work at a later date. In the interim, revenues, like the individual's
paycheck in the previous example, continue to accrue in the Highway
Account.
The Committee also notes that cumulative highway account tax receipts
since 1957 are expected to total approximately $320 billion, and
cumulative highway outlays are expected to total approximately $329
billion by the end of fiscal year 1996. The principal reason for the
current cash balance is the interest paid to the fund from the general
fund of the treasury. These intragovernmental transfers from the general
fund to the trust fund have exceeded $20 billion since the highway trust
fund was established in 1957. However, such transfers have no effect on
the federal deficit. This mechanism is explained in a February 1990
Congressional Research Service report as follows:
While specific taxes and premiums are often levied
on segments of the population to help cover a trust fund
program's expenditures, trust funds also receive ``income''
from the government--i.e., ``credit'' from one government
account to another--or what in essence is paper income. No
economic resources are moved, no actual money collected.
Following is a table of federal highway trust fund spending compared
to receipts for fiscal years 1976 to 1997:
HIGHWAY TRUST FUND STATUS (HIGHWAY ACCOUNT)
[In millions of dollars]
Fiscal year Income Expenditure Trust fund balance Tax receipts Interest income
1976 $6,000 $6,521 $9,077 $5,413 $587
TQ 1,689 1,758 9,009 1,676 13
1977 7,302 6,147 10,164 6,709 593
1978 7,567 6,058 11,673 6,904 662
1989 8,046 7,154 12,564 7,189 857
1980 7,647 9,212 10,999 6,620 1,027
1981 7,434 9,174 9,259 6,305 1,129
1982 7,822 8,035 9.046 6,744 1,079
1983 8,853 8,838 9,062 7,777 1,076
1984 11,533 10,384 10,210 10,507 1,027
1985 12,906 12,756 10,361 11,800 1,106
1986 13,306 14,180 9,486 12,251 1,054
1987 12,727 12,802 9,412 11,793 934
1988 13,645 14,038 9,019 12,836 809
1989 15,134 13,602 10,551 14,358 776
1990 13,453 14,375 9,629 12,472 981
1991 15,303 14,686 10,246 14,494 810
1992 16,572 15,518 11,300 15,664 908
1993 16,864 16,641 11,523 16,046 817
1994 17,055 19,011 9,517 16,250 754
1995 19,377 19,472 9,421 18,829 548
1996 22,692 19,995 12,118 22,034 658
1997 estimate 22,688 20,120 14,686 21876 812
--------- ------------- -------------------- -------------- ------------------
Total 262,878 260,358 244,672 18,206
FEDERAL-AID HIGHWAYS
(Limitation on Obligations)
(Highway Trust Fund)
Limitation, fiscal year 1997 ($18,000,000,000)
Budget estimate, fiscal year 1998 (20,170,000,000)
Recommended in the bill (21,500,000,000)
xlBill compared with:
Limitation, fiscal year 1997 (+3,500,000,000)
Budget estimate, fiscal year 1998 (+1,330,000,000)
The accompanying bill includes language limiting fiscal year 1998
federal-aid highway obligations to $21,500,000,000, an increase of
$3,500,000,000 over the fiscal year 1997 enacted level, and
$1,330,000,000 over the administration's request.
The Committee's recommendation is based on current law. Accordingly,
the Committee has denied new bill language requested by the department
that would change the administration of the federal-aid highway program.
Specifically, the Committee has not included language that would make
funds available for the following programs: the gateway border crossing
program; Research and Special Program Administration's strategic
planning and intermodal research program; the Truman-Hobbs projects;
recreational trails; rehabilitation of the Woodrow Wilson Bridge;
Appalachian Highways; and integrated safety funds. These activities
shall be considered in the context of the reauthorization of the
Intermodal Surface Transportation Efficiency Act.
Although the following table reflects an estimated distribution of
obligations by program category, the bill includes a limitation
applicable only to the total of certain federal-aid highways spending.
Furthermore, these program categories and their allocations are based on
current law and may change as part of the reauthorization of the
Intermodal Surface Transportation Efficiency Act.
FEDERAL-AID HIGHWAYS ESTIMATED OBLIGATIONS
[In thousands of dollars]
Program Fiscal year--
1996 actual 1997 enacted 1998 estimated 1998 recommended
Subject to limitation: $3,049,875 $3,220,775 $3,607,360 $3,695,352
-------------- -------------- ---------------- ------------------
Subtotal, limitation 17,680,815 18,933,630 18,170,000 21,500,000
Exempt from limitation:
Emergency relief:
Regular program 127,387 137,435 100,000 100,000
Supplemental 286,302 800,031
-------------- -------------- ---------------- ------------------
Subtotal, exempt 1,958,197 2,583,268 1,510,571 1,660,226
============== ============== ================
==================
A LIST OF THE FEDERAL HIGHWAY PROGRAMS CURRENTLY UNDER THE
LIMITATION
FOLLOWS:
Interstate Construction.
Interstate Maintenance.
Interstate Gap Closing.
Interstate 4R.
Interstate Discretionary--Construction.
Interstate Discretionary--4R Maryland.
Interstate Discretionary--4R.
Interstate Discretionary--Apportioned.
Interstate Discretionary--Discretionary.
Rail-Highway Crossings on Any Public Road.
Hazard Elimination.
Combined Road Plan.
Consolidated Primary.
Rural Secondary.
Urban System.
Highway Planning and Research.
Public Lands.
Indian Reservation Roads.
Parkways and Park Highways.
Forest Highways.
Special Urban High Density.
Special Bridge Replacement.
Bridge Replacement and Rehabilitation--Apportioned, Discretionary, and
Talmadge Bridge.
Franconia Notch.
Bypass Highway Demonstration.
Urgent Supplemental Bridges.
Los Angeles Freight Transportation Demo, CA 131(a).
Baton Rouge Interchange Congestion, Demo, LA 131.
Louisville Primary Connector Accel. Demo, KY 131(e).
Vermont Certification Demo 131(f).
Devils Lake Erosion Demo, ND 131(g).
Bridge Over Intracoastal Waterway Demo, FL 131(h).
Idaho Truck Safety/Railroad Elimination Demo 131(i).
Acosta Bridge, Florida.
Administration.
Studies (Sections 158, 159, 164 & 165 under P.L. 100 17).
Demonstration Projects--149(d).
Strategic Highway Research Program.
Operation Lifesaver.
Congestion Pricing Pilot.
National Highway System.
Bridge Rehabilitation and Replacement.
Surface Transportation Program.
Interstate Substitution.
Congestion Mitigation and Air Quality.
Donor State Bonus.
Metropolitan Planning.
Apportionment Adjustment.
Model Intermodal Transportation Plans.
Transportation Assistance Program.
Seismic Research and Development.
Fundamental Properties of Asphalt.
Eisenhower Transportation Fellowship.
Timber Bridge Research and Demonstration.
Intelligent Transportation Systems.
Ferry Boat Construction.
Bureau of Transportation Statistics.
University Transportation Centers.
University Research Institute.
Scenic Byways Technical Assistance.
Scenic Byways Interim Program.
Tax Evasion Project.
Safety Belt/Helmet Incentive Grants.
Alcohol Impaired Driving Countermeasures.
International Truck Registry Uniformity.
Applied Research and Development Program.
Border Crossings.
Infrastructure Investment Commission.
High Speed Rail Corridor Crossings.
Administration of obligation limitation.-- The bill includes
language regarding the administration of this obligation limitation. The
provision provides for an equitable distribution of the available
obligational authority based upon the funds apportioned by legislative
or administrative formula and upon funds allocated without a formula. In
making such a distribution, it is intended that discretionary and other
non-formula fund allocations also be considered in the distribution of
obligational authority. If these allocations are unknown at the time
obligational authority is initially made available to the states, an
estimated fair proportion of obligational authority should be reserved
for distribution at the appropriate time.
Under the provision, total first quarter obligations are limited to
12 percent, sufficient authority is provided to prevent lapses, funds
are to be redistributed after August 1, 1997, and amounts authorized for
administrative expenses, the federal lands program, the intelligent
transportation systems program, and amounts made available under
sections 1040, 1047, 1064, 6001, 6005, 6006, 6023 and 6024 of Public Law
102 240 and 49 U.S.C. 5316, 5317 and 5338 are not to be distributed.
The Committee believes that there is adequate legislative history
with respect to the intentions of the Congress in enacting annual
limitations on obligations. The Committee is reiterating, however, the
language on pages 25 and 26 of House Report 94 1221 stating that this
limitation should not be used by the Secretary as discretionary
authority to distort the priorities established in federal highway
legislation. The Committee expects the Secretary to control obligations
in accordance with Congressional intent and directs that the Department
of Transportation continue to provide, on a monthly basis, a report on
the cumulative amount of obligations by state for each program in the
federal-aid highways and highway safety construction program categories.
This report should include the amount of unobligated contract authority
available to each state for each program, as well as a complete
description of any actions taken by the Department or the Office of
Management and Budget for the purpose of complying with this obligation
limitation.
Belford Ferry terminal .--The Committee directs the Secretary to
review the demand for a ferry service from Comptons Creek in Middletown,
New Jersey, including the existence of a willing operator and adequate
ridership, and report the results to the House and Senate Committees on
Appropriations. An assurance of adequate demand must be received by the
Committees before the department may release any funds for the
permitting, design, or construction of a ferry terminal and any
associated infrastructure in Comptons Creek in Middletown, New Jersey.
International trade corridors .--The emergence of the United States,
Canada and Mexico as the world's largest trade zone has represented
phenomenal growth and opportunity for all three counties and promises to
continue doing so in years ahead. Future projections estimate a 93
percent increase in trade between the United States and
Mexico by the year 2000. Similarly, trade between the United
States and Canada is expected to climb 21 percent during this same
period. Increased trade will place an added burden on the nation's
transportation systems.
Trade flows in the United States have shifted from east-west to
north-south. The growing trade with Canada and Mexico depends heavily on
United States infrastructure. In 1993, 88 percent of the total U.S.
trade with Mexico was land-based. The ability to transport goods
efficiently and effectively through the U.S. will enable this country to
realize the full potential of trade agreements such as the North
American Free Trade Agreement.
The Committee recognizes that international trade corridors are
critical for trade and national economic benefits, and encourages the
appropriate legislative committees to consider the importance of these
corridors when reauthorizing the Intermodal Surface Transportation
Efficiency Act of 1991.
Bureau of Transportation Statistics. --The Committee recognizes the
importance of timely and credible transportation data collection and
analysis in making sound federal investments. Therefore, the Committee
encourages the Bureau of Transportation Statistics to work with
qualified universities, including the University of Minnesota's Humphrey
Institute, to develop a model program for policy analysis of
transportation statistical information. The collaboration should provide
recommendations for an on-going program of regional transportation data
collection, management, integration, dissemination, interpretation and
analysis. The Bureau is directed to report to the Committee by May 1,
1998 on its progress.
ESTIMATED FISCAL YEAR 1998 OBLIGATION LIMITATION
Unlike previous years, the Committee has chosen not to include a
distribution of the federal-aid highways obligation limitation by state
so as to not prejudice the formula and states equity issues that will be
considered in the context of the reauthorization of the Intermodal
Surface Transportation Efficiency Act of 1991.
RIGHT-OF-WAY REVOLVING FUND
(limitation on direct loans)
(highway Trust fund)
Limitation, fiscal year 1997 (--)
Budget estimate, fiscal year 1998 (--)
Recommended in the bill (--)
xlBill compared with:
Appropriation, fiscal year 1997 (--)
Budget estimate, fiscal year 1998 (--)
The Right-of-Way Revolving Fund was terminated in fiscal year 1996.
The program continues, however, to be shown for reporting purposes as
balances remain outstanding. Approving the budget request, a prohibition
on further obligations is recommended for fiscal year 1998.
The initial legislation for this program required states to construct
the highway and reimburse the revolving fund within seven years from the
date of advance. This provision was necessary to assure that the fund
would be replenished and allow advances to be made to other states
requiring right-of-way acquisition. Since the 1968 Act, the 1973 Highway
Act extended the required time for construction to ten years and the
1976 Highway Act extended the time limit indefinitely, if deemed
necessary by the Secretary.
When right-of-way acquisition has been made and highway construction
is initiated, the states become eligible for federal grants under the
various highway programs. At the point when progress payments are made
to the states for construction, the state in turn reimburses the
revolving fund for advances made to the state for right-of-way
acquisition. Using this method of funding, all reimbursements made to
the revolving fund may be reallocated to other states requiring
advances.
MOTOR CARRIER SAFETY GRANTS
(LIQUIDATION OF CONTRACT AUTHORIZATION)
(HIGHWAY TRUST FUND)
Appropriation, fiscal year 1997 ($74,000,000)
Budget estimate, fiscal year 1998 (90,000,000)
Recommended in the bill (85,000,000)
xlBill compared with:
Appropriation, fiscal year 1997 (+11,000,000)
Budget estimate, fiscal year 1998 (-5,000,000)
The motor carrier safety assistance program (MCSAP) provides grants
to assist states in developing or implementing national programs for the
uniform enforcement of federal and state rules and regulations
concerning motor safety. The major objective of this program is to
reduce the number and severity of accidents involving commercial motor
vehicles. Grants are made to qualified states for the development of
programs to enforce the federal motor carrier safety and hazardous
materials regulations and the Commercial Motor Vehicle Safety Act of
1986. The basic program is targeted at roadside vehicle safety
inspections of both interstate and intrastate commercial motor vehicle
traffic.
The Committee recommends $85,000,000 in liquidating cash for this
program.
LIMITATION ON OBLIGATIONS
The Committee recommends a limitation on obligations of $85,325,000
for motor carrier safety grants. This provides an increase of $7,100,000
over the 1997 enacted level and a decrease of $14,675,000 below the
budget request. The Committee recommends the following changes to the
budget request:
Basic motor carrier safety grants +$7,500,000
Performance-based incentive grant program -7,500,000
Border assistance -500,000
Priority initiatives -4,000,000
State training and administration -175,000
Information systems and strategic planning -10,000,000
-------------
Net change to the budget request -14,675,000
Basic motor carrier safety grants. --The Committee has provided
$75,000,000 for basic motor carrier safety grants, which is $7,500,000
more than requested.
Safety performance incentive grant program. --The Committee has not
provided separate funding for the new safety performance incentive grant
program because the Office of Motor Carriers (OMC) has just begun pilot
testing this effort and does not expect to complete final evaluation or
issue a report on the pilot tests until January 1998. Thereafter, OMC
will initiate a rulemaking to develop and implement a safety
performance-based incentive grant program. This rulemaking will not be
finalized prior to fiscal year 1999, thus it is premature for the
Committee to begin funding this grant program in fiscal year 1998.
Instead, the Committee has incorporated the requested funding for this
effort within the basic motor carrier safety grant program, which will
hold funding for the program near the amount enacted in fiscal year
1997.
Although the Committee has not provided funding for this effort in
fiscal year 1998, it does not prejudice the grant program from receiving
funding in future years. However, the Committee would be more inclined
to provide such funding once it reviews a final regulation that
incorporates the following features:
(1) a document that has designed states' commercial vehicle safety
plans to focus MCSAP resources on the primary contributing factors and
conditions associated with commercial vehicle-involved crashes,
including efforts to reduce the role of the motoring public in such
crashes;
(2) a document that assures states' proposed commercial vehicle
safety plans will potentially provide at least the same level of
commercial vehicle safety, including traffic enforcement, as was
provided under the previous enforcement plans;
(3) a mechanism that provides additional financial incentives for
accomplishment of safety objectives, as measured over time, beyond the
amount that would have otherwise been allocated under a
performance-based allocation that does not reward accomplishments and
successful outcomes; and
(4) an effective mechanism to assure that states reduce violations
of their out-of-service orders to a minimal level.
Border assistance. --The Committee has provided $2,500,000 for
border assistance, which is $1,500,000 more than provided in fiscal year
1997 but $500,000 less than requested. The Committee has not provided
$500,000 to the second tier states, which are states that border
Arizona, California, New Mexico, and/or Texas because the North American
Free Trade Agreement does not allow Mexican carriers to go beyond the
four border states until the year 2000. OMC has argued that these states
will need education on what to do if Mexican carriers go beyond the
border states and into the second tier states. At this point, the
Committee does not see the necessity of providing this funding because
Mexican carriers are not even allowed to traverse across the four border
states but still must operate only in limited commercial zones along the
border.
Priority initiatives. --The Committee has deleted funding for new
high priority initiatives because of duplication of efforts between
OMC's research and development program and their administrative account.
If a state chooses to fund judicial outreach, drug interdiction, or any
other high priority effort, it may do so through increased funding it
receives from the basic grant.
State training and administration. --The Committee has provided
$825,000 for state training and administration, which is the same amount
as provided in fiscal year 1997. Last year, the Committee directed that
no more than $100,000 of this funding could be used for the Challenge
grant program and that this competition should be in part, or wholly,
funded with corporate and industry support by fiscal year 1999. Although
OMC did not fund the Challenge program from this account, it provided
$253,000 from the motor carrier safety grant program, does not appear to
be reducing this funding in fiscal year 1998, and does not plan to phase
out federal support for this program until 2002. The Committee believes
these actions circumvent the intent of Congress and therefore directs
that no more than $100,000 from any motor carrier account be used to
support the Challenge program in fiscal year 1998. The Committee expects
that this program will be entirely self-supporting in fiscal year 1999.
Information systems and analysis. --The Committee has provided
$3,000,000 for information systems and data analysis, which is
$5,000,000 less than requested. Reductions to this program were made for
two reasons. First, these efforts have typically been funded from other
appropriated funds, such as from the operations and ITS accounts. OMC
still plans to draw down funding from these other sources to augment
funds in this appropriation. Second, the budget request does not clearly
justify why such a large increase for data analysis and information
systems is necessary or what the additional dollars would be used for
that cannot be provided from current sources.
Commercial vehicle information system. --The Committee has provided
$3,000,000 for this effort. Five states are currently participating in a
pilot program. OMC had requested funding for national implementation of
the pilot program; however, only 10 to 12 states plan to participate in
fiscal year 1998. The Committee has provided sufficient funding to
increase the state participation to this level.
Driver program initiative .--The Committee recommends $1,000,000 for
the commercial motor vehicle driver safety program, but remains
concerned that a strategic plan outlining the most cost effective use of
this money does not exist. Consequently, the Committee directs OMC to
submit a report that: (1) reviews the commercial motor vehicle driver
safety program and identifies the most pressing challenges regarding
driver performance and the successful implementation of the commercial
driver's licenses; (2) develops a five year strategy to address these
challenges; and (3) prioritizes the research activities that could be
conducted assuming different levels of expenditures between $1,000,000
and $3,000,000 per year. A carefully designed plan justifying these
expenditures should be submitted to both the House and the Senate
Committees on Appropriations by March 1, 1998. The plan should clearly
articulate what activities could not be performed by the states and the
private sector in a timely manner and why federal investment is
warranted. Particular attention should be directed at efforts to ensure
that all states are electronically submitting driver convictions in a
timely manner to appropriate states of record. This is needed to advance
judicial and prosecutorial education and outreach strategies, and to
promote full compliance of all states with all requirements of the
commercial driver's license program. OMC should not obligate any of
these funds for activities that are similar to those being conducted by
the private sector, such as driver training or presentations on alcohol
or controlled substances.
STATE INFRASTRUCTURE BANKS
Appropriation, fiscal year 1997 $150,000,000
Budget estimate, fiscal year 1998\1\ 150,000,000
Recommended in the bill
xlBill compared with:
Appropriation, fiscal year 1997 -150,000,000
Budget estimate, fiscal year 1998 -150,000,000
\1\The budget proposes to finance this account from the Highway Trust Fund.
The Committee has not provided any new funding for the state
infrastructure bank program. In fiscal year 1997, $150,000,000 was
provided for this program. The appropriation request is not authorized
under existing law.
The National Highway Systems Designation Act originally authorized up
to ten pilot states to test the state infrastructure bank program and
allows these states to capitalize its bank by contributing up to ten
percent of most of its Federal-aid highway apportionments. The ten
states approved for participation in the original pilot program
included: California, Missouri, Arizona, Ohio, Oklahoma, Oregon, Texas,
Florida, South Carolina, and Virginia. The Department of Transportation
and Related Agencies Appropriations Act, 1997, appropriated an
additional $150,000,000 to continue and further expand the program. The
department recently announced an additional twenty-nine states to
participate in the program.
The Committee recognizes the value of attracting non-federal
resources to increase funding for transportation investments and will
reassess the department's request for additional capitalization of the
state infrastructure banks should such funding be authorized as part of
the reauthorization of the Intermodal Surface Transportation Efficiency
Act.
TRANSPORTATION INFRASTRUCTURE CREDIT PROGRAM
(highway trust fund)
Appropriation, fiscal year 1997
Budget estimate, fiscal year 1998 $100,000,000
Recommended in the bill
xlBill compared with:
Appropriation, fiscal year 1997
Budget estimate, fiscal year 1998 -100,000,000
The Committee has not approved the administration's proposal to
create a new transportation infrastructure credit program. This program
request is unauthorized; the state infrastructure bank program and the
direct loan financing program (the Alameda Corridor project)--the
programs after which the transportation infrastructure credit program is
modeled--are still in very nascent stages of development; and any
further expansion of these programs should be considered in the context
of the reauthorization of the Intermodal Surface Transportation
Efficiency Act.
Further, the Committee notes that the Administration earlier
indicated that this program would provide loan guarantees and direct
loans to further projects of national significance. The Committee
understands that the Department of the Treasury had a number of concerns
regarding the establishment of this program which would potentially
erode the effectiveness of the proposed program. Moreover, the
administration now indicates that grants, rather than loans, would be
made under this program. The Committee does not believe that a new
discretionary grant program is needed or adequately justified at this
time.
NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION
SUMMARY OF FISCAL YEAR 1998 PROGRAM
The National Highway Traffic Safety Administration (NHTSA) was
established as a separate organizational entity in the Department of
Transportation in March 1970. It succeeded the National Highway Safety
Bureau, which previously had administered traffic and highway safety
functions as an organizational unit of the Federal Highway
Administration.
The administration has submitted legislation to reauthorize the
agency's current statutes and programs as well as to authorize new
highway safety incentive grants. The legislation will amend the
following three major laws: (1) the National Traffic and Motor Vehicle
Safety Act, (chapter 301 of title 49, U.S.C.); (2) the Highway Safety
Act, (chapter 4 of title 23, U.S.C.); and (3) the Motor Vehicle
Information and Cost Savings Act, (Part C of subtitle VI of title 49,
U.S.C.). The first law provides for the establishment and enforcement of
safety standards for vehicles and associated equipment and the conduct
of supporting research, including the acquisition of required testing
facilities and the operation of the national driver register (NDR).
Discrete authorizations were subsequently established for the NDR under
the National Driver Register Act of 1982.
Title 23 U.S.C. chapter 4 provides for coordinated national highway
safety programs (section 402) to be carried out with the states together
with supporting highway safety research, development, and demonstration
programs (section 403). The Anti-Drug Abuse Act of 1988 (Public Law 100
690) authorized a new drunk driving prevention program (section 410) to
make grants to states to implement and enforce drunk driving prevention
programs.
The Intermodal Surface Transportation Efficiency Act of 1991
included amendments to title 23. That act reauthorized section 402
formula grants, provided for modified section 410 alcohol-impaired
driving countermeasures grants, and authorized new section 153 safety
belt and motorcycle helmet grants. Section 153(j) grants were concluded
in fiscal year 1994 and replaced by section 153(h) sanction provisions.
ISTEA also authorized additional funding for the national driver
register and for an expanded drug recognition expert training program.
Title 23 was subsequently amended by provisions in the National
Highway System (NHS) Designation Act, 1995. In that act, the national
maximum speed limit was repealed, thus allowing states to set their own
speed limits. Penalty transfer provisions of section 153 were repealed
for states failing to enact motorcycle helmet usage laws. The act
requires states to enact ``zero tolerance'' alcohol laws to qualify for
the section 410 basic grant rather than the supplemental grant
previously. Failure to do so within three years would result in a five
percent reduction in the federal highway grants in fiscal year 1999 and
ten percent in succeeding years. The national driver register was
reauthorized for fiscal years 1995 and 1996 in the NHS and for 1997 in
the Emergency Supplemental Appropriations Act (P.L. 105 18). Several new
research initiatives were authorized including a study of new technology
to enhance the driving performance of older drivers, and a study to
develop and evaluate radio and microwave technology to warn drivers
about highway obstacles and poor visibility problems caused by inclement
weather.
The third law (MVICS) provides for the establishment of low-speed
collision bumper standards, consumer information activities, diagnostic
inspection demonstration projects, automobile content labeling, and
odometer regulations. An amendment to this law established the
Secretary's responsibility, which was delegated to NHTSA, for the
administration of mandatory automotive fuel economy standards. A 1992
amendment to the MVICS established automobile content labeling
requirements.
TRAFFIC SAFETY TRENDS
In 1992, the nation experienced the lowest number of highway
fatalities ever despite an increasing amount of travel on the roadways.
This trend reversed itself in 1993. The latest NHTSA data indicates
fatalities in 1996 were 41,500, or 2,250 higher than the 1992 level.
Likewise, the overall fatality rate (deaths per 100 million vehicle
miles traveled) has leveled off to 1.7 fatalities since 1993 after
significant declines in previous years. The following charts show these
safety trends:
Offset Folios 97 Insert here
OPERATIONS AND RESEARCH
(Including Highway Trust Fund)
Appropriation, fiscal year 1997\1\ $132,612,000
Budget estimate, fiscal year 1998 147,500,000
Recommended in the bill 146,907,000
xlBill compared with:
Appropriation, fiscal year 1997 +14,295,000
Budget estimate, fiscal year 1998 -593,000
\1\Does not reflect reductions of $597,812 for TASC and $32,000 in awards and bonuses.
The Committee recommends new budget authority and obligation
limitations for a total program level of $146,907,000. The
recommendation provides an 11 percent increase above the 1997 enacted
level and will allow NHTSA to expand work on all of its critical air bag
initiatives. The bill includes language limiting the availability of the
operations and research appropriations to a three year period. Budget
and staffing data for this appropriation are as follows:
1997 enacted\1\ 1998 estimate Recommended in the bill
Safety Performance $12,226,000 $13,124,000 $13,124,000
Safety Assurance 18,966,000 19,923,000 19,703,000
Highway safety 44,465,000 49,665,000 49,415,000
Research and analysis 50,387,000 57,411,000 57,411,000
Office of administrator 3,728,000 4,116,000 4,116,000
General administration 8,568,000 9,419,000 9,419,000
Grant administration reimbursement -6,358,000 -6,158,000 -6,158,000
Accountwide Adjustments -123,000
----------------- --------------- --------------------------
Total 131,982,000 147,500,000 146,907,000
\1\Includes reductions of $629,812 for TASC and in awards and bonuses.
The Committee recommends the following changes to the budget request
for this appropriation:
xlSafety Assurance:
Auto safety hotline -$150,000
Odometer fraud -70,000
xlHighway Safety:
Emergency medical services -250,000
xlAccountwide Adjustments:
Hold operating expenses to 5 percent increase -123,000
-----------
Net change to the budget estimate -593,000
Fuel economy standards.-- The Committee has included a general
provision (sec. 321) that prohibits funds to prepare, prescribe, or
promulgate corporate average fuel economy (CAFE) standards for
automobiles that differ from those previously enacted. The limitation
does not preclude the Secretary of Transportation, in order to meet lead
time requirements of the law, from preparing, proposing, and issuing a
CAFE standard for model year 2000 automobiles that is identical to the
CAFE standard established for such automobiles for model year 1999.
Uniform tire quality grading standards. --The bill includes a
provision prohibiting any agency funded in this Act from planning,
finalizing, or implementing any rulemaking which would require passenger
car tires to be labeled to indicate their low rolling resistance.
Auto safety hotline. --The Committee has reduced funding for the
hotline by $150,000. In 1997, funding for the hotline more than doubled,
with significant amounts used to hire a consultant to determine how the
hotline could be better utilized. The consultant did not begin work
until more than halfway through the fiscal year and has initiated many
low cost projects, such as printing and placing posters in pilot sites.
NHTSA expects that many of the consultant's activities will continue
into fiscal year 1998, using 1997 funding. As such, the Committee does
not see a need to continue funding the consultant at the 1997 level, and
has reduced the program to better reflect what new costs are anticipated
to occur in fiscal year 1998.
Odometer fraud.-- The Committee has allocated $140,000 for odometer
fraud, $80,000 above the enacted level and $70,000 below the request. In
the past, NHTSA has provided states with seed money to enhance their
state enforcement programs. This year, the administration proposed a new
component to the odometer fraud program, which would train state
investigators to work with NHTSA in particular crime-afflicted areas.
NHTSA originally requested more than $50,000 per investigator, which
would cover living expenses for one year. After careful evaluation of
similar programs in FHWA and FRA, which cost between $10,000 and $17,000
less per investigator than NHTSA has estimated, the Committee believes a
lower amount than the budget request will be adequate.
The bill continues to carry a general provision (sec. 327) that
enables the Secretary of Transportation to administer and implement the
exemption provisions of the Motor Vehicle Information and Cost Savings
Act, as requested. These provisions have, for more than 20 years,
exempted sellers of large trucks from the odometer disclosure regulation
because vehicles weighing over 16,000 pounds often travel more than
15,000 miles per month, and over the years, their odometers may turn
over several times. Most purchasing decisions with respect to these
vehicles are based on service and maintenance records rather than
odometer readings.
Seat belt and child safety seat usage. --Forty-nine states have seat
belt laws. The current seat belt usage rate is estimated at 68 percent.
This rate has risen very slowly in the past few years and some states
have been struggling to maintain use rates at the current level. Fifty
states have child safety seat laws. However, half the children under age
five who die in traffic crashes are not secured in child safety seats
and nearly 80 percent of child safety seats are used incorrectly.
In April 1997, the President announced a broad national strategy to
reduce child occupant fatalities by 15 percent and increase safety belt
usage rates to 85 percent by the year 2000. The Committee commends the
administration for taking this important step. Meeting the 85 percent
seat belt goal would prevent 4,192 fatalities and 102,518 injuries each
year. Reaching the child occupant protection goal would prevent 103
fatalities per year. No other transportation safety initiatives will do
more sooner to benefit the public health. Therefore it is essential that
these goals are achieved.
The Committee strongly supports the implementation of these
presidential initiatives and directs the Secretary of Transportation and
the Administrator of NHTSA to keep the Committee fully apprised of its
activities in achieving these goals by providing biannual reports to the
House and Senate Committees on Appropriations on the specific steps
undertaken. The first report should be submitted by December 1, 1997.
Emergency medical services (EMS). --The Committee has provided
$1,300,000 for emergency medical services, which is $250,000 less than
requested. This year, the budget separated the EMS research component
from the EMS program component. When these accounts are combined, the
administration requests a 63 percent increase. The Committee has fully
funded the research component and provided a 36 percent increase in the
program component. This increase should adequately fund the
establishment of an educational council, which was the only new
component in the budget request.
Biomechanics. --The Committee has provided $1,200,000 for in-depth
highway traffic injury studies, which are conducted at four trauma
centers. The Committee recognizes the pioneering work of these centers,
most notably the work being done by the William Lehman Injury Research
Center at the Jackson Memorial Medical Center and the New Jersey College
of Medicine, in applying multi-disciplinary sciences to discover and
quantify new injury patterns in crashes, including those associated with
air bag inflation. The Committee suggests that additional funding for
air bag research investigations provided in this bill should make full
use of the resources and expertise available at these two trauma
centers.
The Committee is concerned that NHTSA is spreading over two federal
fiscal years grants formerly provided in a single fiscal year, and that
NHTSA is basing funding for some current-year grants on future
appropriated funds, subject to the availability of funds. This major
change in NHTSA's funding mechanism for crash injury studies at trauma
centers could adversely affect the ability of these centers to maintain
the experienced teams necessary to conduct advanced trauma research.
NHTSA is therefore directed to cease its prospective funding mechanism
and to consider in its grant decisions local, institutional or
governmental fiscal years which may vary from the federal fiscal year
and impact trauma center research activities.
The Committee continues to be deeply concerned about the number of
children who are injured or killed by air bags. To reduce child injuries
and enhance the safety and effectiveness of occupant protection systems
for children, the Committee directs NHTSA to provide $100,000 to develop
a biofidelic child crash test dummy to collect data on children's unique
biologic features and the behavior of children under crash conditions.
The Committee recognizes a collaborative research project involving a
consortia of the Children's Hospital of Pennsylvania, the University of
Pennsylvania, Pennsylvania State University and a private Pennsylvania
crash investigation corporation in developing a biofidelic child crash
test dummy. This project will use previously conducted human and primate
surrogate data as well as data from controlled low acceleration tests
and child flexibility data to provide the biofidelic basis for the new
child crash test dummies.
Special crash investigations. --The Committee has fully funded the
special crash investigations program, an increase of $700,000 above the
fiscal year 1997 level. According to the budget request, this funding
will be used to analyze air bag related crashes which involve serious
injuries or fatalities. While the Committee supports additional
investigations of air bag crashes to provide more in-depth and timely
analysis of this complex issue, there is concern that NHTSA does not
plan to analyze specifically the safety performance of vehicles with
depowered air bags. The March 1997 NHTSA rule, which allows
manufacturers to depower their air bags, has been followed by
announcements from several manufacturers that all or most of their 1998
model year vehicles will incorporate depowered air bags. NHTSA's
rulemaking on this subject showed widely divergent views on the safety
effects of depowering with the agency taking one view, and the
manufacturers and insurers another. The Committee further notes that
NHTSA's estimates of the safety consequences of depowering changed
significantly between the time of the proposal and the time of the final
rule. The Committee believes that the importance of this issue requires
real-world data for its resolution, and as such, directs NHTSA to
concentrate some of these funds on investigating crashes involving
vehicles with depowered air bags in which there was a front seat
occupant fatality or serious injury. As part of this effort, NHTSA
should compare the effectiveness of depowered air bags with that of
fully powered air bags for: (1) vulnerable occupants such as small
statured adults and children, (2) all unbelted occupants, and (3)
injuries for all occupants. It is expected that NHTSA will seek vehicle
manufacturers' assistance in identifying those vehicles that incorporate
depowered air bags.
Operating expenses. --The Committee has held operating expenses to a
five percent increase, excluding rental costs that are being billed
directly to the agency in fiscal year 1998.
HIGHWAY TRAFFIC SAFETY GRANTS
(Liquidation of Contract Authorization)
(Highway Trust Fund)
Appropriation, fiscal year 1997 $168,100,000
Budget estimate, fiscal year 1998 185,000,000
Recommended in the bill 186,000,000
xlBill compared with:
Appropriation, fiscal year 1997 +17,900,000
Budget estimate, fiscal year 1998 +1,000,000
The Committee recommends $186,000,000 to liquidate contract
authorizations for state and community highway safety grants (23 U.S.C.
402), safety belt and motorcycle helmet use grants (23 U.S.C. 153),
alcohol-impaired driving countermeasures grants (23 U.S.C. 410), section
211(b) of the National Driver Register Act of 1982, as amended, and
section 209 of Public Law 95 599, as amended. The recommendation
represents an eleven percent increase over the 1997 level and provides a
$1,000,000 increase above the budget request.
LIMITATION ON OBLIGATIONS
As in past years and recommended in the budget request, the bill
includes language limiting the obligations to be incurred under the
various highway traffic safety grants programs. The bill includes
separate obligation limitations with the following funding allocations:
1997 enacted 1998 estimate Recommended in the bill
State and community safety grants $140,200,000 $140,200,000 $140,200,000
Alcohol incentive grants 25,500,000 34,000,000 35,000,000
Occupant protection grants 9,000,000 9,000,000
National driver register 2,400,000 2,300,000 2,300,000
---------------- ----------------- -------------------------
Total 168,100,000 185,500,000 186,500,000
Section 402 formula grants. --These grants are awarded to states for
the purpose of reducing traffic crashes, fatalities and injuries. The
states may use the grants to implement programs to reduce deaths and
injuries caused by exceeding posted speed limits; encourage proper use
of occupant protection devices; reduce alcohol- and drug-impaired
driving; reduce crashes between motorcycles and other vehicles; reduce
school bus crashes; improve police traffic services; improve emergency
medical services and trauma care systems; increase pedestrian and
bicyclist safety; increase safety among older and younger drivers; and
improve roadway safety. The grants also provide additional support for
state data collection and reporting of traffic deaths and injuries.
An obligation limitation of $140,200,000 is included in the bill,
which is the same amount as requested. Also, language is included in the
bill that limits funding available for federal grants administration to
$5,268,000 for NHTSA.
The bill continues to carry language that prohibits the use of funds
for construction, rehabilitation, and remodeling costs, or for office
furnishings or fixtures for state, local, or private buildings or
structures.
Alcohol-impaired driving incentive grants. --A new grant program
will offer two-tiered basic and supplemental grants to reward states
that pass new laws and start more effective programs to attack drunk and
impaired driving. This continues the department's strong emphasis on
impaired drivers that was addressed under the former Section 410
incentive grant program. States may qualify for grants in three ways.
First, they can enact administrative license revocation and .08 blood
alcohol content (BAC) laws. Second, they can implement four of the
following five programs: (1) prevent persons under age 21 from obtaining
alcohol; (2) increased police enforcement coupled with publicity; (3)
graduated licensing laws with nighttime driving restrictions and zero
tolerance; (4) effective sanctions for repeat DWI offenders; and (5)
enactment of administrative license revocation laws. Third, states may
also qualify for these incentive grants by demonstrating exceptional
performance in reducing the rate of fatally injured drivers with BAC
levels of .10 or higher. Supplemental grants are provided to states that
adopt additional measures, including open container laws, mandatory
alcohol testing for drunk driving suspects involved in fatal or serious
injury, .02 BAC per se laws for persons under age 21 with a minimum of
30 day license suspension, financially self-sustaining programs and the
use of passive alcohol sensors by police.
Recent statistics have shown an increase in the number of
alcohol-related incidents and fatalities. In 1995, the number of
alcohol-related fatalities increased sharply to 17,274 from 16,580 in
1994. Alcohol involvement in motor vehicle accidents injures another one
million people each year. The Committee has set an obligation limitation
of $35,000,000 for alcohol-impaired grants as a means to combat the
increased fatalities. This level is $1,000,000 more than requested.
Occupant protection incentive grants. --The Committee has fully
funded the new occupant protection incentive grant program, with the
expectation that it will be authorized shortly. This new grant program
will offer incentives to states to implement tougher laws and programs
to increase safety belt usage, child safety seat usage, and correct
child seat usage. To receive these grants, states must satisfy certain
basic grant criteria by having specific laws and programs, such as
passing primary enforcement laws or driver license penalty points for
belt law violations, implementing increased police enforcement of
occupant protection laws, requiring safety belt use by all front seat
passengers, requiring minimum fines for safety belt and child safety
seat violations, and requiring that children up to age four be in a
child safety seat in an appropriate seat position. States may also
qualify for incentive grants by demonstrating exceptional performance in
increasing seat belt usage rates.
National driver register. --The bill includes an obligation
limitation of $2,300,000 for the national driver register, the same
level as requested. The national driver register program assists state
motor vehicle administrators in communicating effectively and
efficiently with other states to identify problem drivers (i.e., drivers
whose licenses are suspended or revoked for certain serious traffic
offenses, including vehicle operation under impairment by alcohol and
other drugs).
FEDERAL RAILROAD ADMINISTRATION
SUMMARY OF FISCAL YEAR 1998 PROGRAM
The Federal Railroad Administration (FRA) is responsible for
planning, developing, and administering programs to achieve safe
operating and mechanical practices in the railroad industry, as well as
managing the high speed ground transportation program. Grants to the
National Railroad Passenger Corporation (Amtrak) and other financial
assistance programs to rehabilitate and improve the railroad industry's
physical plant are also administered by the FRA.
The total recommended program level for the FRA for fiscal year 1998
is $918,834,000. The following table summarizes the fiscal year 1997
program levels, the fiscal year 1998 program requests and the
Committee's recommendations:
Program 1997 enacted\1\ 1998 estimate Recommended in the
bill
Office of the Administrator $16,739,000 $20,559,000
$19,434,000
Railroad safety 51,407,000 57,067,000 56,967,000
Railroad research and development 20,100,000 21,638,000
21,038,000
Northeast corridor improvement program 175,000,000 \2\
250,000,000
Next generation high speed rail 24,757,000 19,595,000
18,395,000
Rhode Island rail development 7,000,000 10,000,000
10,000,000
Grants to National Passenger Rail Corporation\3\ 587,950,000 \4\789,450,000
543,000,000
High-speed rail trainsets and facilities 80,000,000
Alaska railroad 10,000,000
Direct loan financing program 58,680,000
Direct loan financing limitation (400,000,000)
------------------ ----------------- --------------------------
Total 1,031,633,000 918,309,000 918,834,000
\1\Excludes reduction of $170,979 for TASC and $15,000 in awards and bonuses. Also excludes
$18,900,000 in emergency appropriations for railroad repair and rehabilitation from Public Law
105 18.
\2\Financing for the Northeast Corridor Improvement Program is included in grants to the
National Railroad Passenger Corporation's budget request.
\3\Includes mandatory passenger rail service payments.
\4\Funding requested from the Highway Trust Fund.
OFFICE OF THE ADMINISTRATOR
Appropriation, fiscal year 1997\1\ $16,739,000
Budget estimate, fiscal year 1998 20,559,000
Recommended in the bill 19,434,000
lBill compared with:
Appropriation, fiscal year 1997 +2,695,000
Budget estimate, fiscal year 1998 -1,125,000
\1\Excludes reductions of $103,000 for TASC and $4,000 in awards and bonuses.
This account provides funds for executive direction and
administration, policy support, passenger and freight services salaries
and expenses, and contractual support. The Committee recommends an
appropriation of $19,434,000 to continue the office of the administrator
and passenger and freight service assistance functions.
Recommended adjustments to the budget request are as follows:
Reduce rental costs -$955,000
Reduce costs associated with new information technology equipment -120,000
Decrease new support services -50,000
--------------
Net adjustment to the budget request -$1,125,000
Rental costs. --The Committee has provided $2,000,000 for rental
payments instead of $2,955,000 as requested. In August 1996, because of
the ``sick building'' problem, the entire FRA headquarters organization
was relocated outside of the Nassif building until cleaning and repair
is completed. The two floors that FRA was located on prior to its move
have been cleaned; however, FRA does not want to move back into the
Nassif building. It is the Committee's understanding that, although
FRA's floors are being used by other modes, there is still vacant space
within the Nassif building, which is less expensive to rent on a per
square-foot basis than the space FRA is currently utilizing.
Furthermore, the department is in the process of consolidating its
employees into fewer locations. The Committee does not agree that an
entire modal administration, previously located within the Nassif
building, should be located a significant distance away from the
department's other daily operations. The Committee has included a
provision in the bill that limits FRA's expenditure for rental payments
within Washington D.C. to departmental space and has reduced the rental
payment request to reflect the costs of rent at the Nassif building.
Information technology equipment. --The Committee recommends
$172,000 for new information technology equipment. At this level, the
Committee is doubling the amount of funding provided in 1997 to replace
and upgrade hardware and software components and enhance automation
systems and databases.
Support services. --The Committee has provided $75,000 for new
support services, which is $50,000 less than requested. Because of
downsizing initiatives the Committee believes that the large increase
proposed is not necessary. These reductions should be made within the
training, travel, and supplies portion of the budget request. At the
recommended level, FRA will be able to continue contracting out for
analysis where it does not have the necessary staff expertise and should
not eliminate any ongoing support contracts.
Rail relocations. --The Committee directs the FRA to continue,
within available funds, ongoing consultative efforts regarding railroad
relocations between railroads, the administration, and local
communities.
RAILROAD SAFETY
Appropriation, fiscal year 1997\1\ $51,407,000
Budget estimate, fiscal year 1998 57,067,000
Recommended in the bill 56,967,000
xlBill compared with:
Appropriation, fiscal year 1997 +5,560,000
Budget estimate, fiscal year 1998 -100,000
\1\Does not reflect reductions of $57,979 for TASC and $11,000 awards and bonuses.
The federal role in the railroad safety program is to protect
railroad employees and the public by ensuring the safe operation of
passenger and freight trains. The authority to accomplish this role is
found in the Federal Railroad Safety Act of 1970 (as amended), the
Department of Transportation Act, and the Hazardous Materials
Transportation Act. Greatly expanded railroad safety authority was
granted to the FRA under the Rail Safety Improvement Act of 1988.
The Committee recommends a total appropriation of $56,967,000 for
railroad safety programs in fiscal year 1998. This is $5,560,000 above
the level provided in fiscal year 1997 and a reduction of $100,000 below
the level proposed in the budget estimate.
Railroad safety advisory committee. --The Committee has provided
$100,000 for the railroad safety advisory committee. In fiscal year
1997, this committee was able to conduct its work on $50,000. This year,
the budget requested $200,000, a four-fold increase. The Committee has
provided funding at twice the enacted level for fiscal year 1997, which
shall allow sufficient funds to continue consensus-based rulemakings on
rail safety issues.
Outreach efforts. --The Committee is favorably impressed with FRA's
outreach efforts to educate railroad workers on their roles and
responsibilities in new accident reporting technologies, rail/highway
crossing safety, and other important new safety initiatives. The
Committee directs FRA to continue their partnership with the labor
organization representing railroad conductors, brakemen and engine
service employees to develop and implement cooperative safety training
programs. These training and education programs should be designed to be
used by all classifications of rail workers.
RAILROAD RESEARCH AND DEVELOPMENT
Appropriation, fiscal year 1997\1\ $20,100,000
Budget estimate, fiscal year 1998 21,638,000
Recommended in the bill 21,038,000
xlBill compared with:
Appropriation, fiscal year 1997 +938,000
Budget estimate, fiscal year 1998 -600,000
\1\Does not reflect reductions of $8,000 for TASC.
The railroad research and development appropriation finances contract
research activities as well as salaries and expenses necessary for
supervisory, management, and administrative
functions. The objectives of this program are to reduce the
frequency and severity of railroad accidents and to provide technical
support for rail safety rulemaking and enforcement activities.
The Committee recommends an appropriation of $21,038,000 for fiscal
year 1998, which represents a $600,000 decrease below the budget
estimate. The bill includes the following reductions to the budget
estimate:
Delete funding for maglev initiative -$500,000
Hold funding for environmental issues to 1997 level -100,000
-----------
Net change to the budget request -600,000
Maglev initiative. --The Committee has deleted funding for the new
magnetic levitation (maglev) initiative. The administration requested
$500,000 to evaluate maglev technology and the efforts the U.S. Air
Force, the U.S. Navy, and NASA may be pursuing. However, only one of
these three agencies--the U.S. Air Force--has received funding for its
endeavor. Furthermore, maglev does not appear to be a cost beneficial
transportation option, as noted in FRA's August 1996 report on the
commercial feasibility of high speed ground transportation. Of the
options considered in this report, which ranged from high speed rail
operating conventional trains at 90 miles per hour to maglev, the three
most viable options appeared to be operating at speeds between 90 and
125 miles per hour. Maglev was not a viable option on any of the
corridors considered except the northeast corridor, which Congress is
already investing significant sums to upgrade for electrified high-speed
rail service. Because of uncertain funding in the future for these
projects, limited prospects of commercialization of maglev technology,
and the unclear transportation-related purpose of the other agencies'
activities, the Committee has deleted funding for this program.
Environmental issues. --The Committee has provided $200,000 for
environmental issues, which is the same amount as provided in 1997. The
request did not justify why an additional $100,000 was necessary for
this program.
NORTHEAST CORRIDOR IMPROVEMENT PROGRAM
Appropriation, fiscal year 1997\1\ $175,000,000
Budget estimate, fiscal year 1998\2\
Recommended in the bill 250,000,000
xlBill compared with:
Appropriation, fiscal year 1997 +75,000,000
Budget estimate, fiscal year 1998 +250,000,000
\1\Includes $60,000,000 appropriated in the Omnibus Consolidated Appropriations Act of 1997.
\2\The administration requested funding for the Northeast Corridor Improvement Program as part
of the National Railroad Passenger Corporation's capital grant.
Title VII of the Railroad Revitalization and Regulatory Reform Act of
1976 (4R Act) authorized $2,500,000,000 for the Northeast Corridor
Improvement Program (NECIP). That Act was later amended to add a list of
projects to be funded in the event the total amount of authorized
funding became available. This project list was again amended in the
Rail Safety Improvement Act of 1988 to authorize new safety-related
projects which the Committee initiated in the aftermath of the Chase,
Maryland, Conrail-Amtrak accident. Currently, the program includes a
major upgrade of the north end of the corridor to improve running speeds
between New York City and Boston, including electrification of the rail
line between New Haven, Connecticut and Boston. The program also
includes routine upgrade and rehabilitation of the south end of the
corridor between Washington, D.C. and New York City.
The Committee recommends $250,000,000 for the Northeast Corridor
Improvement Program. This is $50,000,000 more than the administration
requested for NECIP under Amtrak's capital grant request. Both Amtrak
and FRA have testified that 1998 is the most critical year for achieving
full implementation of high-speed rail in the corridor by the summer of
2000. Once electrification is completed and train sets are delivered,
Amtrak plans to begin operating 8 daily high-speed trains between Boston
and New York. Amtrak projects that this service will generate
$168,000,000 in additional revenues in the year 2000. This figure is
projected to grow to $308,900,000 by the year 2003. The forecasted
revenue growth resulting from electrification and high-speed rail
service should greatly assist Amtrak in becoming free of federal
operating subsidies by the year 2002.
RAILROAD REHABILITATION AND IMPROVEMENT PROGRAM
Section 511 of Public-Law 94 210, as amended authorizes obligation
guarantees for meeting the long-term capital needs of private railroads.
Railroads utilize this funding mechanism to finance major new facilities
and rehabilitation or consolidation of current facilities. No
appropriations or new loan guarantee commitments are proposed in fiscal
year 1998 consistent with the budget request.
NEXT GENERATION HIGH SPEED RAIL
Appropriation, fiscal year 1997\1\ $24,757,000
Budget estimate, fiscal year 1998 19,595,000
Recommended in the bill 18,395,000
xlBill compared with:
Appropriation, fiscal year 1997 -6,362,000
Budget estimate, fiscal year 1998 -1,200,000
\1\Does not reflect reductions of $2,000 for TASC.
The next generation high speed rail program funds the development,
demonstration, and implementation of high speed rail technologies. It is
managed in conjunction with the program authorized in the Intermodal
Surface Transportation Efficiency Act of 1991 for similar purposes.
The Committee recommends $18,395,000 for the next generation high
speed rail program. Adjustments in total program funding from the budget
request are as follows:
Budget activity 1997 enacted 1998 estimate Recommended in the bill
High-speed train control $4,000,000 $5,000,000 $3,800,000
Non-electric locomotives 9,000,000 8,000,000 8,000,000
Grade crossing & innovative technology 4,999,000 4,500,000 4,500,000
Track & structures technology 6,500,000 1,550,000 1,550,000
Planning technology 1,250,000 0 0
Administration 426,000 545,000 545,000
---------------- --------------- --------------------------
Total \1\26,175,000 19,595,000 18,395,000
\1\Includes $1,420,882 in carryover authority.
High speed train control systems .--The Committee has provided
$3,800,000 for high speed train control, which is $1,200,000 less than
requested. Much of this funding was to be used by the State of Illinois
on train control systems; however, the Illinois project is in the
process of being significantly altered. Under the original project, for
which Congress has provided $7,000,000, work was to occur on a portion
of Southern Pacific's track north of Springfield, Illinois. However,
after Southern Pacific was acquired by Union Pacific, this project was
reconsidered. Currently, the State of Illinois is negotiating the train
control project with Chicago-area Metropolitan Rail (METRA) on their
track between Joliet and Chicago. Because of delays in this work, to
date the state has only obligated $1,000,000 of the appropriated funds.
The remaining $6,000,000 is still available. Until plans are finalized
by the State of Illinois, both the interoperability of train control
systems and the flexible block project may be delayed.
Non-electric locomotives .--The Committee has fully funded the
budget request of $8,000,000 for high speed, non-electric locomotives.
Funds for FRA to continue its focus on high speed fossil fuel research
on flywheel turbine technology, such as the advanced locomotive
propulsion system (ALPS) program, have been provided. In addition, the
Committee commends the FRA for its consideration of a separate
initiative to further evaluate other high speed non-electric locomotive
technologies that may incorporate ALPS in the future. As such, the
Committee suggests that FRA continue to evaluate these other
technologies, which: (1) utilize modern, recently developed locomotive
car bodies; (2) meet forthcoming FRA Tier II passenger rail car
construction standards and other applicable federal safety regulations;
and (3) have the potential to operate at 150 miles per hour, yet be
available for revenue demonstration at speeds of 125 miles per hour
within a two to three year period.
RHODE ISLAND RAIL DEVELOPMENT
Appropriation, fiscal year 1997 $7,000,000
Budget estimate, fiscal year 1998 10,000,000
Recommended in the bill 10,000,000
xlBill compared with:
Appropriation, fiscal year 1997 +3,000,000
Budget estimate, fiscal year 1998
The Committee recommends $10,000,000 for the Rhode Island Rail
Development project, the same amount as requested. In November, 1996,
the State of Rhode Island passed a $62,000,000 bond referendum, of which
$50,000,000 is guaranteed for the rail redevelopment project. This
funding will be spent to add track capacity adjacent to the northeast
corridor mainline and gain overhead clearances sufficient for double
stack container trains. Because of the bond, the Committee is no longer
concerned about the state's ability to match federal funding on this
project.
GRANTS TO THE NATIONAL RAILROAD PASSENGER CORPORATION
Appropriation, fiscal year 1997\1\\2\ $587,950,000
Budget estimate, fiscal year 1998\2\\3\ 789,450,000
Recommended in the bill 543,000,000
xlBill compared with:
Appropriation, fiscal year 1997 -44,950,000
Budget estimate, fiscal year 1998 -246,450,000
\1\Includes $22,500,000 for operating losses provided under the Omnibus Consolidated
Appropriations Act, 1997.
\2\Includes $142,000,000 for mandatory retirement payments.
\3\The administration requested a total of $789,450,000 from the Highway Trust fund, which
included $200,000,000 for the Northeast Corridor Improvement Program and $23,450,000 for
Pennsylvania Station Redevelopment.
The National Railroad Passenger Corporation (Amtrak) is a
private/public corporation created by the Rail Passenger Service Act of
1970 and incorporated under the laws of the District of Columbia to
operate a national rail passenger system. Amtrak started operation on
May 1, 1971.
The Committee recommends a total funding level of $543,000,000 for
grants to Amtrak to cover operating losses, retirement payments, and
capital expenses in fiscal year 1998. This amount is $44,950,000 below
the 1997 enacted level. The Committee has not funded Amtrak from the
highway trust fund, as requested by the administration, because the
proposal is not authorized. Also, the Committee has continued to fund
the Northeast Corridor Improvement Program separately instead of
incorporating these funds into Amtrak's capital grant.
STATUS OF AMTRAK
Amtrak continues to face serious economic and financial challenges.
In 1995, Amtrak developed a strategic business plan designed to increase
revenues, control costs, and eliminate the need for federal operating
subsidies by the year 2002. Significant progress was made in 1995 to
improve Amtrak's bottom line and Amtrak ended the year with a positive
cash balance. However, this progress has not continued in more recent
years. Beginning in 1996, the plan has been revised several times, each
time to reflect updated realities of its inability to raise additional
revenues and/or control costs.
The Committee received some very frank and disconcerting testimony
this year regarding Amtrak's financial viability from the General
Accounting Office (GAO) and Amtrak. The testimony described a railroad
in a very unstable position. GAO noted three important and troubling
points. First, Amtrak's net loss was $764,000,000 in fiscal year 1996,
and the gap between its operating deficit and federal operating support
was $82,000,000. Second, Amtrak's debt and capital lease obligations
rose from $527,000,000 in fiscal year 1993 to $987,000,000 in fiscal
year 1996, nearly doubling in a three year period. This debt excludes an
additional $1 billion Amtrak expects to incur beginning in 1999 to
finance high-speed train sets and maintenance facilities in the
northeast corridor and the acquisition of new locomotives. Third, over
the last four years, GAO estimates that Amtrak's interest expenses have
tripled, from a fiscal year 1993 level of $20,600,000 to a fiscal year
1996 level of $60,200,000. In 1993, six percent of Amtrak's operating
assistance was used to make interest payments on its debt, but by fiscal
year 1996, that percentage rose to 21 percent. Slightly less than a
quarter of all of Amtrak's operating assistance is now going to pay for
interest on its debts rather than covering costs associated with
day-to-day running of the railroad. As interest payments on its debt
consume an ever increasing portion of operating assistance, Amtrak will
have less and less subsidy available for current operating assistance.
Based on these findings, GAO concluded that ``Amtrak is in a very
precarious position * * * Greater than
expected losses have made it difficult for Amtrak to continue
its path toward eliminating federal operating support''.
This year, Amtrak testified that ``there are no simple solutions to
Amtrak finances, but it is very clear that Amtrak cannot continue to go
on as we have been, bleeding the corporation and trying to achieve
prosperity by downsizing the system. . . . We either run a national
system with the appropriate resources or we should begin to take steps
to shut it down''. Amtrak believes that in order to be free of federal
operating subsidies by the year 2002, it needs a dedicated source of
capital funding. To achieve this, the corporation has proposed diverting
one half cent from the federal gas tax. The half-cent would provide
Amtrak up to $750,000,000 per year for capital improvements. However,
this proposal was not contained in the administration's recent
reauthorization proposal or in the 1998 budget request. The amount
contained in the half cent proposal is significantly more than what was
appropriated for capital grants and the northeast corridor improvement
program in 1996 and 1997 ($345,000,000 and $398,450,000, respectively)
and the amount requested by the administration for fiscal year 1998
($445,450,000). Despite the Committee's strong support for Amtrak, in
today's domestic discretionary environment, such increases in capital
funding are highly unlikely. Therefore, Amtrak needs to find new ways to
survive on its current federal subsidies and scale back its expectations
to be more in line with today's fiscal realities.
Although many are convinced that the outlook for Amtrak is bleak
without substantial federal investment, the Committee believes that
Amtrak has many opportunities to increase its revenues in the near-term.
For example, Amtrak has begun to aggressively pursue increased mail and
express services, which will provide the corporation with additional
revenues to augment its federal appropriation. In a recent letter to
this Committee, Amtrak stated that mail and express ``will add a
significant amount to our bottom line and play an important role in
improving the economics of our long-distance trains''. Also, Amtrak is
pursuing a number of other options that have great possibility. These
options include allowing companies to run fiber-optic cable and placing
cellular towers along Amtrak-owned rights-of-way. Finally, under the
administration's reauthorization proposal, the eligibility of most
federal surface transportation programs would be broadened to permit
States the flexibility to use a portion of their federal-aid highway
funding to make capital investments to support Amtrak services. Based on
fiscal year 1997 federal-aid highway program levels, if this provision
were enacted, states could transfer up to $250,000,000 to support
Amtrak's operations.
But funding alone is not the panacea for Amtrak. Comprehensive
legislative reforms must also occur for Amtrak to address the railroad's
financial and operational problems, which include unemployment,
liability, contracting out, and labor reforms. It is not within this
Committee's jurisdiction to undertake these reforms; however, without
significant changes, federal appropriations alone will not be adequate
to solve Amtrak's problems. Without legislative reform, it is unlikely
that Amtrak will be able to reduce its operating expenses sufficiently
to become independent of federal operating subsidies by the year 2002.
The Committee has included bill language (title IV) establishing an
independent commission, modeled after the Base Realignment and Closure
Commission, that would conduct an independent economic analysis of the
entire Amtrak system. This Commission is necessary because Amtrak's own
restructuring efforts have not worked as planned. Some of Amtrak's
unprofitable routes have been mandated by Congress, which has stymied
Amtrak's efforts to operate in a more business-like manner. The
Commission will make recommendations on route closings and realignments
urgently needed for the survival of a passenger rail system in the
United States. No segment of Amtrak's system will be exempt from review
and all routes, including the northeast corridor, would be carefully
scrutinized. With these determinations being made by the commission,
painful route closure and realignment decisions should have a greater
chance of being implemented. These recommendations would then be
considered by Congress on an expedited basis. If Amtrak is to survive
and run in a manner consistent with sound business practices, objective,
business principles need to govern Amtrak's operations, rather than
outside considerations or constraints. Congress needs to be able to
justify to the taxpayers whatever decisions it makes regarding Amtrak
and this is best accomplished based on sound assessments and
recommendations.
The Committee believes that this commission could expand on ideas
recently proposed by a blue ribbon working group on intercity rail. This
group reported that ``genuine renewal of national passenger rail service
will not be resolved by political rhetoric nor by periodic, last minute
infusions of cash; rather, it requires that the Congress take a long,
hard step back from the status quo in order to pilot a viable,
market-driven course for the future''. This working group recommended to
the House Transportation and Infrastructure Committee that the national
passenger rail system be restructured into two components. First,
passenger rail service should be provided, on a competitive basis, in
all densely populated corridors of the United States. Second, periodic
rail service should be developed throughout all regions of the nation
with cultural, historic, or scenic character if it is economically
justifiable. The Commission should consider these ideas as part of its
review.
OPERATING EXPENSES
The Committee recommendation provides $283,000,000 for Amtrak's
operating losses in fiscal year 1998. The recommendation fully funds the
administration's request of $202,000,000 for routine operating expenses,
and provides $81,000,000 for railroad retirement payments.
Railroad retirement expenses. --Since fiscal year 1991, Congress has
provided Amtrak with an excess railroad retirement subsidy. The subsidy
is the difference between what Amtrak calculates as its ``excess''
payments, according to current law, defined as liability to the Railroad
Retirement Account (RRTA) less the estimated benefits which are expected
to be paid to Amtrak retirees. The subsidy represents a major component
of the federal financial assistance provided to Amtrak and is separately
justified each year by Amtrak as a ``mandatory payment''.
In fiscal year 1998, Amtrak and the administration requested
$142,000,000 for this subsidy. The Committee has provided $81,000,000
for this purpose, which is the amount identified in the 1998 budget
justification as Amtrak's corporate liability for non-Amtrak
beneficiaries. The Committee has reduced the amount provided for
retirement payments because there is evidence that Amtrak is overstating
the tax liability and understating the benefits paid to Amtrak
annuitants by a total of $61,000,000.
First, Amtrak has questionably included $43,000,000 in employee tier
II payments as a liability when calculating the subsidy. These funds,
although withheld by Amtrak from an employee's pay check, are part of an
employee's overall compensation. Therefore, even though these payments
are part of Amtrak's overall salary expenditures, these obligations,
much like personal taxes owed to state and local jurisdictions, are the
responsibility of the employee. Also, these funds are included by Amtrak
as a salary expense when determining its profit/loss. Since Amtrak is
using these payments to justify a direct subsidy from the federal
government, it is, in effect, having the federal government underwrite a
portion of its employees' salaries.
Second, the Railroad Retirement Board and the Office of Management
and Budget (OMB) have identified $18,000,000 in non-Social Security
Equivalent Benefits (SSEB) that Amtrak should consider when calculating
the federal RRTA subsidy. These benefits include occupational disability
and early retirement costs. For example, Amtrak employees can retire at
age 60, while social security benefits cannot be collected until age 62;
thus the two years of payments are categorized as non-SSEB payments.
According to OMB, failing to include these payments as benefits received
understates the level of support paid by the Railroad Retirement Board
to former Amtrak employees. Amtrak has been aware of this estimated
beneficiary payment but apparently has chosen to ignore it in its
calculation of its payment responsibility.
Because of these two problems, the bill contains language that limits
the uses of Federal funds provided for ``excess'' retirement payments.
The bill language clarifies the federal commitment to pay retirement
expenses for former employees of railroads that are no longer in
operation, as originally proposed in 1991. The Committee believes that
this language does not change Amtrak's obligation to make retirement
payments for its current and former employees until they are eligible
for social security payments. Amtrak employees will continue to pay into
the retirement fund through a payroll deduction. However, Congress will
no longer appropriate an equivalent amount which Amtrak can then use for
operating losses. The Corporation has $1.6 billion in non-federal
revenues that it can use to fund these needs.
CAPITAL IMPROVEMENTS
The Committee recommendation provides $260,000,000 for Amtrak's
capital program in fiscal year 1998. This is $36,550,000 more than the
1997 enacted level. Consistent with the budget estimate and actions
taken in fiscal year 1997, the availability of funds is delayed until
July 1, 1998.
Transfer of capital dollars to operating losses. --The Committee is
very concerned about the legality of one of Amtrak's actions to reduce
its cash deficit in fiscal year 1997. At the beginning of the year,
Amtrak's board of directors agreed to transfer $38,000,000 of federal
capital appropriations to pay debt service interest, allowing Amtrak to
reduce its budget deficit for fiscal year 1997 from $70,000,000 to
$32,000,000. These dollars were appropriated as part of the fiscal year
1996 capital grant.
Public Law 104 50, which provided $230,000,000 in general capital
appropriation for fiscal year 1996, makes funding available ``for
capital improvements''. A review of this law, and without further
justification to the
contrary indicates that the use of general capital
appropriations for interest debt reduction is not permissible under
current law. Furthermore, this use of capital funds to pay interest is
not in compliance with accepted financial standards.
In Amtrak's 1997 capital plan, the corporation cited an additional
$40,000,000 in capital funds that it planned to transfer from Amtrak's
intercity and western business units to debt service interest. If
transferred once the 1997 capital funds become available on July 1,
1997, this would be the second instance of Amtrak utilizing capital
funds for purposes other than which these funds had been appropriated.
The Committee is insistent that Amtrak discontinue this practice. The
Committee appropriates capital funds specifically for capital
improvements, such as the purchase or rehabilitation of equipment, and
not to cover the cost of borrowing from commercial banks. To prevent
such actions from occurring in the future, the bill contains language
which prohibits the transfer of funds for capital improvements to debt
service payments unless specifically authorized by law. Furthermore, the
bill also contains language that subjects Amtrak to the Anti-Deficiency
Act to help ensure that capital funds are used for their intended
purpose.
Pennsylvania station redevelopment project. --No capital funding has
been provided for the Pennsylvania Station redevelopment project,
consistent with Amtrak's grant request. Last year, based on an Inspector
General report questioning the accuracy of the costs to redevelop
Pennsylvania Station and expand train operations into the adjacent
Farley Post Office building, the Committee stated that it would not
provide additional funding for this project until the cost estimates are
revised, a new schedule is developed, and written, binding commitments
are secured from all funding sources. At this time, the Committee has
not received any of this data.
In March 1997 Amtrak testified that it had separated itself from the
development of the Farley building and would not provide any funding for
this effort. Amtrak's only commitment would be to enhance Pennsylvania
Station to satisfy health and life safety needs, and to accommodate high
speed rail. Amtrak has not yet determined how much funding it will
require to meet these needs as its fiscal year 1998 capital budget will
not be approved by the Amtrak board of directors until after enactment
of the 1998 appropriations act. When that determination is made, Amtrak
has the flexibility within its capital improvement program to utilize
some of the appropriation for life and safety-related expenses and other
enhancements necessary for high speed rail.
FEDERAL TRANSIT ADMINISTRATION
SUMMARY OF FISCAL YEAR 1998 PROGRAM
The Federal Transit Administration (FTA) was established as a
component of the Department of Transportation on July 1, 1968, when most
of the functions and programs under the Federal Transit Act (78 Stat.
302; 49 U.S.C. 1601 et seq.) were transferred from the Department of
Housing and Urban Development. Known as the Urban Mass Transit
Administration until enactment of the Intermodal Surface Transportation
Efficiency Act of 1991, the Federal Transit Administration administers
federal financial assistance programs for planning, developing and
improving comprehensive mass transportation systems in both urban and
non-urban areas.
Much of the funding for the Federal Transit Administration is
provided by contract authority, with program levels established by
annual limitations on obligations provided in appropriations Acts.
However, direct appropriations are required for the Washington
Metropolitan Area Transit Authority as well as for portions of certain
other accounts.
The current authorization for many of the programs funded by the
Federal Transit Administration is contained in the Intermodal Surface
Transportation Efficiency Act, which expires at the end of fiscal year
1997. The Committee's recommendation is based on current law. The
Committee encourages the appropriate legislative committees to
reauthorize the transit programs before the end of the fiscal year to
avoid unnecessary interruption in providing transit operating assistance
as well as financial assistance for planning and capital improvement of
mass transportation systems in all over the nation.
The total funding recommended for FTA for fiscal year 1998 is
$4,837,738,000, including $627,738,000 direct appropriations and
$4,210,000,000 limitations on the use of contract authority. The total
recommended is $455,556,000 above the fiscal year 1997 program level.
Increases of $350,815,000 are provided for transit formula grants and
$100,000,000 for transit discretionary programs above the fiscal year
1997 program level.
The following table summarizes the fiscal year 1997 program levels,
the fiscal year 1998 program requests, and the Committee's
recommendations:
Program 1997 enacted 1998 estimate Recommended in the bill
Administrative expenses $41,497,000 \1\$47,018,000 $45,738,000
Formula grants 2,149,185,000 -- 2,500,000,000
Formula programs -- 3,498,500,000 --
University transportation centers 6,000,000 \1\6,000,000 6,000,000
Transit planning and research 85,500,000 \1\91,800,000 86,000,000
Discretionary grants 1,900,000,000 -- 2,000,000,000
Major capital investments -- 650,000,000 --
Washington Metro 200,000,000 200,000,000 200,000,000
--------------- ---------------- -------------------------
Total 4,382,182,000 4,487,318,000 4,837,738,000
\1\The President's budget proposed that these programs be financed from the highway trust fund,
and that the university transportation system program be funded within the transit planning and
research program.
ADMINISTRATIVE EXPENSES
Appropriation, fiscal year 1997\1\ $41,497,000
Budget estimate, fiscal year 1998\2\ 47,018,000
Recommended in the bill 45,738,000
xlBill compared with:
Appropriation, fiscal year 1997 +4,241,000
Budget estimate, fiscal year 1998 -1,280,000
\1\Excludes reductions of $451,135 for TASC reduction and $4 for awards and bonuses.
\2\The budget proposes to fund this program from the mass transit account of the highway trust
fund.
The bill includes a total of $45,738,000 for administrative expenses
of the Federal Transit Administration, an increase of $4,241,000 over
the 1997 enacted level. This amount provides sufficient resources to
fund FTA's current personnel and resource support requirements, and
includes the full amounts requested for continued development of the
electronic grant making and management system ($335,000), improvements
to the wide area network ($100,000), and software and systems
development for the electronic commerce procurement program ($100,000).
Full-time equivalent (FTE) staffyears. --In fiscal year 1997, the
Congress provided funding to support 495 full-time (FTE) staffyears at
the FTA. The current projection is that less staffyears will be utilized
in fiscal year 1997 due to hiring delays. Follow-on funding for these
unfilled positions is assumed in the fiscal year 1998 request for
administrative expenses. The Committee recommendation deletes a portion
of these funds for a program savings of $1,280,000.
Project management oversight activities, section 23. --The Committee
has included bill language that limits to $15,000,000 the amount of
funds that may be
withheld from transit capital grants to conduct oversight
activities in fiscal year 1998. The FTA's project management oversight
program is intended to inform and assist FTA management and FTA grantees
in carrying out their individual responsibilities as stewards of public
funds under the federal transit law. The project management oversight
program encompasses project management oversight of major capital
projects; and safety, procurement, management, and financial compliance
reviews and audits of FTA grantees. A recent Inspector General audit has
revealed, however, that the FTA has allocated significant resources of
section 23 funds for numerous management initiatives which are not
eligible for section 23 funding. In addition, the IG audit determined
that available section 23 funds were significantly underutilized as FTA
annually apportions the maximum section 23 funds allowed by law, but
obligates significantly less than the total available funds. The
Committee's action to limit the amount of project management oversight
funds to $15,000,000, together with unobligated balances carried forward
from previous fiscal years, will ensure that section 23 funds are used
only for purposes intended by Congress. Further, the Committee's action
will ensure that discretionary capital grants are more fully utilized to
provide capital, operating and planning assistance to FTA's grantees
while ensuring that critical project management oversight and financial
reviews of FTA's grantees are performed.
The Committee believes that the management initiatives identified by
the Inspector General's audit as ineligible for section 23 funds are
activities more appropriately funded by the FTA's national research and
planning or administrative expenses accounts. Such activities include
but are not limited to: civil rights compliance investigations; computer
systems for management of ADA compliance; National transit database
activities; electronic grant making and management activities; planning
reviews; alternative analysis support; bus testing oversight; ISTEA
management oversight; turnkey demonstrations; reviews of financial
capacity methods; Defense Contract Audit Agency activities; and best
practice manual activities. The Committee directs that the ineligible
activities identified by the IG's audit be justified under the national
research and planning account or the administrative expenses account
beginning in fiscal year 1999. Moreover, the Committee directs that the
FTA submit with its annual budget submission a detailed program plan by
activity and detailed justification of its oversight program, similar to
the format of FHWA's intelligent transportation systems justifications.
WMATA oversight.-- The Committee has continued a general provision
(sec. 326) that requires FTA oversight of the Washington Metropolitan
Area Transit Authority (WMATA) to be conducted from FTA's Washington
metropolitan offices. The FTA has considered transferring the oversight
function of WMATA to the regional office in Philadelphia, Pennsylvania.
With such a transfer, all significant decisions would inevitably be
referred to FTA headquarters. This appears to make little sense since
WMATA is located in the nation's capital and literally a few blocks from
the Department of Transportation's Washington headquarters. The FTA
shall continue to allocate two full time equivalent staff positions in
the FTA's Washington, D.C. offices to conduct management and oversight
of WMATA. To ensure high-quality, professional oversight, the Committee
directs that the individuals assigned to conduct such oversight have
significant, long-term institutional knowledge of WMATA and its
operations.
FORMULA GRANTS
Appropriation (General Fund) Limitation (Trust Fund)
Appropriation, fiscal year 1997 $490,000,000 ($1,659,185,000)
Budget estimate, fiscal year 1998
Recommended in the bill 290,000,000 (2,210,000,000)
xlBill compared with:
Appropriation, fiscal year 1997 -200,000,000 (+550,815,000)
Budget estimate, fiscal year 1998 +290,000,000 (+2,210,000,000)
The Committee recommends $2,500,000,000 for formula grants. This
level is $350,815,000 over the 1997 enacted level. Formula grant funds
are available for capital and operating assistance to both urbanized and
non-urbanized areas, and for capital assistance to organizations
providing service to elderly and disabled persons.
Transit operating assistance.-- The bill provides $200,000,000 for
transit operating assistance in fiscal year 1998, a reduction of
$200,000,000 from the 1997 enacted level. The administration proposed to
eliminate operating assistance in fiscal year 1998 while seeking to
expand the definition of capital expenditures to include preventive
maintenance. The Committee has included bill language that would provide
transit operating assistance to urbanized areas of less than 200,000 in
population at a level no less than seventy-five percent of the amount of
operating assistance such areas were to receive under Public Law 103
331. This ``hold harmless'' provision was included in the Department of
Transportation and Related
Agencies Appropriations Acts for 1996 and 1997. Further, the
Committee has included bill language that, in the distribution of the
limitation on operating assistance to urbanized areas that had a
population under the 1990 decennial census of 1,000,000 or more,
instructs the Secretary to direct each area to give priority
consideration to the impact of reductions in operating assistance on
smaller transit authorities operating within the area, and to consider
the needs and resources of such transit authorities operating in that
area. This provision, too, was carried in the Department of
Transportation and Related Agencies Appropriations Acts for fiscal years
1996 and 1997.
Expanding the definition of capital expenditures.-- The Committee
encourages the appropriate legislative committees in the context of the
reauthorization of the Intermodal Surface Transportation Efficiency Act
to consider the administration's proposal to expand the definition of
capital expenditures to include preventive maintenance. Doing so would
make the transit definition of capital more consistent with that of the
federal-aid highways program and would mitigate reductions in operating
assistance anticipated in fiscal year 1998. Should the reauthorization
of the Intermodal Surface Transportation Efficiency Act include
provisions expanding the definition of capital expenditures, the FTA is
encouraged to undertake an aggressive campaign to educate and assist
transit authorities in adjusting to the change in definition.
Formula grant apportionments.-- Under current law, the Federal
Transit Act provides formula allocated programs of capital and operating
assistance for urbanized areas under section 18. The section 16(b)(2)
program of grants for services to elderly and disabled persons is
distributed by a statutory formula. Unlike previous years, the Committee
has chosen not to include a distribution of the formula grants program
funds so as to not prejudice consideration of the reauthorization of the
transit formula grants apportionment formulas.
FORMULA PROGRAMS
(Highway Trust Fund)
Limitation on obligations Liquidation of contract authorization
Appropriation, fiscal year 1997
Budget estimate, fiscal year 1998 ($3,498,500,000)
($1,500,000,000)
Recommended in the bill
xlBill compared with:
Appropriation, fiscal year 1997
Budget estimate, fiscal year 1998 (-3,498,500,000)
(-1,500,000,000)
The budget proposes to consolidate all formula grant activities into
this account. The fixed guideway modernization formula program and the
buses and bus facilities program, together with the existing formula
grants program, are proposed to be merged into this new account
structure. In addition, the administration proposes to create a new
program--access to jobs and training--which would provide funds for
grants to states, local agencies, and non-profit organizations for
transportation services to match the needs of welfare recipients to get
to jobs and training with the services available in the community.
Since this proposal is not authorized under current law, the
Committee defers consideration of this request to the appropriate
legislative committees, which shall be considered in the context of the
reauthorization of the Intermodal Surface Transportation Efficiency Act.
UNIVERSITY TRANSPORTATION CENTERS
Appropriation, fiscal year 1997 $6,000,000
Budget estimate, fiscal year 1998\1\
Recommended in the bill 6,000,000
xlBill compared with:
Appropriation, fiscal year 1997
Budget estimate, fiscal year 1998 +6,000,000
\1\The budget proposes to fund this program from the mass transit account of the highway trust
fund and within the transit planning and research account.
The Committee has approved $6,000,000 for the university
transportation centers program, the same level as provided in fiscal
year 1997. ISTEA added three centers to the ten previously established.
These centers conduct research, training, and development activities
related to the transportation of passengers and property.
The regional centers currently authorized in the Intermodal Surface
Transportation Efficiency Act and their focus areas are:
Region I--Massachusetts Institute of Technology, Strategic Management
of Transportation Systems.
Region II--City University of New York, Regional Mobility and
Accessibility Investment Strategies.
Region III--Pennsylvania State University, Advanced Technologies in
Transportation Operations and Management.
Region IV--University of Tennessee, Transportation Safety.
Region V--University of Michigan, Commercial Highway Transportation.
Region VI--Texas A&M State University, Mobility for Regional
Development.
Region VII--University of Nebraska, Midwestern and Rural Transportation
Policy, Planning, and System Management.
Region VIII--North Dakota State University, Rural and Non-Metropolitan
Transportation.
Region IX--University of California, Berkeley, Improving Accessibility
for All.
Region X--University of Washington, Operations Management and Planning.
The national centers authorized under ISTEA are:
National Center for Transportation and Industrial Productivity at the
New Jersey Institute of Technology;
National Center for Transportation Management, Research & Development
at Morgan State University; and
Mack-Blackwell National Rural Transportation Study Center at the
University of Arkansas.
TRANSIT PLANNING AND RESEARCH
Appropriation, fiscal year 1997 $85,500,000
Budget estimate, fiscal year 1998\1\ 91,800,000
Recommended in the bill 86,000,000
xlBill compared with:
Appropriation, fiscal year 1997 +500,000
Budget estimate, fiscal year 1998 -5,800,000
\1\The budget proposes to fund this program from the mass transit account of the highway trust
fund.
The Committee recommends a total of $86,000,000 for the planning and
research, training, and human resources programs of the FTA. This is
$500,000 more than the level appropriated in fiscal year 1997 and
$5,800,000 less than requested in the budget. The bill contains language
specifying that $39,500,000 shall be available for the metropolitan
planning program; $4,500,000 for the rural transit assistance program;
$8,250,000 for the transit cooperative research program; $22,500,000 for
the national program; $8,250,000 for the state program; and $3,000,000
for the National Transit Institute. The increase of $500,000 over the
1997 enacted level is for the national research program. The Committee
directs the FTA to prepare a five-year plan for the agency's research
program. The plan should be prepared in consultation with the American
Association of State Highway and Transportation Officials, the American
Public Transit Association, the National Academy of Sciences, and other
interested parties. The plan should be submitted to the House and Senate
Committees on Appropriations with the fiscal year 1999 budget
justifications. FTA should ensure that the plan assesses the short- and
long-term research and development activities which offer the greatest
payoffs and reflects a research plan that is responsive to the transit
community. The Committee also expects the plan to include indicators of
expected progress or milestones wherever feasible. The FTA shall
reallocate future funding requests based on this objective assessment.
The Committee has deleted funding for lower priority activities
proposed to be funded within the national program, including a study of
domestic bus manufacturing (-$150,000) and outreach activities
(-$200,000). Continued support in fiscal year 1997 is provided for a
number of important, ongoing initiatives including:
Joblinks employment transportation program $1,000,000
Hennepin community works program, Hennepin County, Minnesota 1,000,000
Project ACTION (Accessible Community Transportation in Our Nation) 2,000,000
Advanced technology transit bus 10,000,000
Fuel cell bus program 2,500,000
Advanced transportation and alternative fueled technologies consortium 1,500,000
Rural transportation assistance program 750,000
Fatigue awareness and safety training program 1,000,000
Joblinks employment transportation program .--The Committee
recognizes that the lack of transportation alternatives can limit access
by lower income and unemployed persons to employment and job training
opportunities, especially for residents of inner-city and rural
communities. Further, the lack of transportation can be an obstacle for
individuals receiving public assistance to meet new work requirements.
Accordingly, the Committee has provided $1,000,000 to continue
the Joblinks demonstration program administered by the
Community Transportation Association of America (CTAA). The Committee
encourages the FTA to work with the CTAA to develop with the Northern
Tier Transit Coalition a pilot project for a regional transportation
system to link communities along the corridor between Gardner and
Greenfield, Massachusetts.
Advanced technology transit bus .--The Committee has provided
$10,000,000 to continue development of the advanced technology transit
bus. This level is the same as requested in the budget. The Committee
notes that ATTB technologies have yet to be fully tested and not a
single ATTB has been placed in revenue service. As such, any claims that
the ATTB bus is a safer, more cost-effective bus have not been fully
substantiated. The Committee directs that none of these funds--or funds
provided for transit planning and research--are to support the planning
or development of a 30-foot or dual mode trolley bus based on the ATTB
design. The Committee believes that any plans to proceed beyond the
current program should be fully financed by the Electric Power Research
Institute or other grantees or partners, such as public sector
utilities.
Fuel cell bus program .--The Committee has provided $2,500,000 for
continued development of the fuel cell bus. This level is $2,500,000
below the level requested in the budget. The Committee notes that this
program was once a cooperative venture. However, the FTA is now the only
federal agency financially supporting the development of the fuel cell
bus program since the Department of Energy and the Advanced Research
Projects Agency are no longer participating financially in the program.
The Committee directs the FTA to increase its cost-sharing arrangements
with other federal and non-federal parties in the fuel cell bus program
to increase non-FTA financial participation in the program. The
Committee notes that the National Park Service has expressed an interest
in the use of fuel cell propulsion in its Grand Canyon Master Plan to
relieve congestion in the park. Therefore, it is possible that the
Department of the Interior, as well as the Department of Energy, could
participate financially in this program. The funding provided in this
Act for the fuel cell bus program is available only for research and
development and shall not be available for an intermodal and national
depository fuel cell bus facility, or to accelerate the
pre-commercialization of the fuel cell bus.
Advanced transportation and alternative fueled technologies
consortia program .--The Committee has provided $1,500,000 for the
advanced transportation technologies program. The Committee intends this
level of funding to support the ongoing advanced transportation
technologies projects undertaken by the CALSTART consortium.
The Committee is aware of efforts to authorize the transition of the
advanced transportation technology consortia program to the department.
The Committee received several requests to fund this transition in
fiscal year 1998. Should this program be authorized in the
reauthorization of the Intermodal Surface Transportation Efficiency Act
of 1991, the Committee encourages the department to include the
consortia program in its fiscal year 1999 budget request.
Fatigue awareness and safety training program .--The Committee has
provided $1,000,000 to develop and disseminate a fatigue educational
awareness program as recommended by the National Transportation Safety
Board at the Transportation Safety Institute. In cooperation with the
American Public Transit Administration, the FTA is to develop a fatigue
educational awareness program and distribute it to transit agencies to
use in fitness-for-duty training for supervisors and employees involved
in safety-sensitive activities.
Given the highest priorities of the Secretary of Transportation and
the Committee in the area of safety, the Committee is disturbed to learn
that the FTA did not allocate resources in fiscal year 1997 for this
activity, citing the lack of funding in the national planning and
research program. The Committee notes that the FTA was able to allocate
funding provided under the national program in fiscal year 1997 for many
far less important activities, such as mobility summits and joint
development symposia, development of the FTA web page, summer internship
programs, and academy outreach programs. The Committee directs the FTA
to maintain a safety and security program funded from the national
research program at a level of at least $2,100,000 in fiscal year 1998.
Zinc-air battery development .--The Committee encourages the FTA to
support research on the applicability of zinc-air battery propulsion
systems for heavy duty vehicles such as transit buses. This technology
has been quite successful when tested on small and medium sized vehicles
in Europe, and offers a lightweight, high-energy, cost-effective
alternative to existing fuel cell batteries.
Reverse commute .--The Committee recognizes the increasing demand
for ``reverse commuting'' options for urban residents seeking public
transit alternatives to reach their jobs in suburban areas, as well as
in suburban to suburban commutes. The Committee commends the
public-private partnerships across the country that have successfully
implemented reverse commute alternatives, and urges the FTA to work with
these entities to develop and distribute an educational guide to advise
metropolitan communities across the nation on ways to develop and
implement successful reverse commute strategies.
TRUST FUND SHARE OF EXPENSES
(LIQUIDATION OF CONTRACT AUTHORIZATION)
(HIGHWAY TRUST FUND)
Appropriation, fiscal year 1997 ($1,920,000,000)
Budget estimate, fiscal year 1998 (--)
Recommended in the bill (2,210,000,000)
xlBill compared with:
Appropriation, fiscal year 1997 (+290,000,000)
Budget estimate, fiscal year 1998 (+2,210,000,000)
For fiscal year 1998, the Committee has provided $2,210,000,000 in
liquidating cash for the trust fund share of transit expenses. This
appropriation is liquidating cash necessary to pay the vouchers the FTA
expects in fiscal year 1998.
DISCRETIONARY GRANTS
(LIMITATION ON OBLIGATIONS)
(HIGHWAY TRUST FUND)
Limitation, fiscal year 1997 ($1,900,000,000)
Budget estimate, fiscal year 1998 (--)
Recommended in the bill (2,000,000,000)
xlBill compared with:
Limitation, fiscal year 1997 (+100,000,000)
Budget estimate, fiscal year 1998 (+2,000,000,000)
The bill includes language limiting to $2,000,000,000 obligations for
the discretionary grants program. This represents an increase of
$100,000,000 from the 1997 enacted level. The Committee has adhered to
the current requirements of the Intermodal Surface Transportation
Efficiency Act that direct that of the funds made available under this
heading, forty percent be available for rail modernization, forty
percent be available for new starts discretionary grants, and twenty
percent be available for buses and bus facilities. The following table
shows the fiscal year 1997 limitation, the fiscal year 1998 budget
estimate and the Committee recommendation:
1997 Enacted 1998 Request Recommended
Buses and bus facilities $380,000,000 \1\ $400,000,000
Fixed guideway modernization 760,000,000 \1\ 800,000,000
New starts\2\ 760,000,000 \1\($650,000,000) 800,000,000
--------------- ------------------- ---------------
Total 1,900,000,000 \1\ 2,000,000,000
\1\The Administration proposes to merge the buses and bus facilities and fixed guideway
modernization programs into a new formula grants program and create a new major capital
investment program. The 1998 budget request level for new starts is shown here for
comparability purposes.
\2\In addition to the amounts made available in fiscal year 1997 for new starts, the Department of
Transportation and Related Agencies Appropriations Act 1997 also reprogrammed $56,956,000
in prior year funds.
Three-year availability of section 5309 discretionary funds.-- The
Committee has included bill language that permits the Administrator to
reallocate discretionary new start and buses and bus facilities funds
from projects which remain unobligated after three years. Funds made
available in the fiscal year 1995 Department of Transportation and
Related Agencies Appropriations Act and previous Acts are available for
reallocation in fiscal year 1998 as availability for these discretionary
projects is limited to three years. The Committee, however, directs that
the FTA not reallocate funds provided in fiscal year 1995 for the
Whitehall ferry terminal or Twin Cities projects as these projects are
moving ahead and will be prepared to obligate these funds during fiscal
year 1998.
Further, the Committee directs that should additional funds from
previous appropriations Acts be available for reallocation, the FTA is
directed to reprogram these funds no earlier than fifteen days after
notification to the House and Senate Committees on Appropriations and
only to the extent that those projects are capable to fully obligate
additional resources in the course of fiscal year 1998. With respect to
reallocation of discretionary bus and bus facility funds, the FTA is
directed to reallocate funds to only those projects identified in the
reports accompanying the Department of Transportation and Related
Agencies Appropriations Act, 1998, and no earlier than fifteen days
after notification to the House and Senate Committees on Appropriations.
BUSES AND BUS FACILITIES
The Committee recommends $400,000,000 for bus purchases and bus
facilities, including maintenance garages and intermodal facilities. Bus
systems are expected to play a vital role in the mass transportation
systems of virtually all cities. FTA estimates that approximately 95
percent of the areas that provide mass transit service do so through bus
transit only and over 60 percent of all transit passenger trips are
provided by bus. The Committee believes that the $400,000,000
recommended under this heading, together with other appropriations that
are available for bus projects, should provide the funding necessary to
retain existing bus riders as well as to attract new riders who
currently use private automobiles.
Under current law, the federal share for most bus projects is 80
percent. However, the federal share increases to 90 percent for the
incremental costs of bus-related equipment needed to meet the
requirements of Clean Air Act and the Americans with Disabilities Act.
The recommended amount for buses and bus facilities includes the
following allocations:
State of Alabama: Mobile intermodal facility $11,000,000
State of Arizona: 9,000,000
State of California: 3,000,000
State of Colorado: buses and bus facilities 3,000,000
State of Connecticut: 4,000,000
State of Delaware: New Castle bus facility 3,000,000
State of Florida: 4,000,000
State of Georgia: 8,000,000
State of Hawaii: Honolulu buses and bus facility 2,000,000
State of Illinois: buses and bus facilities 9,000,000
xlState of Indiana: 2,000,000
State of Louisiana: buses and bus facilities 25,000,000
State of Maryland: buses and bus facilities 8,000,000
xlCommonwealth of Massachusetts: 500,000
State of Michigan: buses and bus facilities 15,000,000
State of Minnesota: Metropolitan Council transit operations, buses and bus facilities
18,000,000
State of Nevada: 8,500,000
State of New Mexico: Santa Fe buses and bus facilities 2,000,000
State of New York: 1,000,000
State of North Carolina: buses and bus facilities 5,000,000
State of Ohio: buses and bus facilities 25,000,000
State of Oregon: 1,000,000
Commonwealth of Pennsylvania: 1,000,000
State of Tennessee: buses and bus facilities 8,000,000
State of Texas: 1,000,000
State of Utah: buses and bus facilities 4,000,000
Commonwealth of Virginia: 250,000
State of Washington: 2,000,000
State of Wisconsin: 1,000,000
State of West Virginia: 7,000,000
Eureka, California. --Funds provided in the fiscal year 1997
Department of Transportation and Related Agencies Appropriations Act for
an intermodal facility in Eureka, California shall be available for the
expansion and rehabilitation of a bus maintenance facility in Humboldt
County, California.
Salem and Corvallis, Oregon. --Of the funds provided to Salem and
Corvallis, Oregon, the Committee provides $700,000 for a downtown
multi-modal transit mall in the city of Corvallis and the remaining
funds for the Salem Mass Transit District for compressed natural
gas-fueled buses and a CNG filling station that will serve both city
buses and private sector fleets.
Santa Barbara, California. --The Committee directs the FTA to award
$2,500,000 from available balances and recoveries in fiscal year 1997 to
fulfill the terms of the letter of no prejudice awarded to Santa Barbara
by the FTA for state-of-the-art, electric battery-powered buses that
were initially used at the 1996 Summer Olympic Games.
State of Louisiana. --The Committee has provided $25,000,000 for
buses and bus-related facilities in the state of Louisiana to be
distributed as follows: $993,000 for Baton Rouge bus-related facilities;
$1,913,000 for Jefferson Parish buses; $990,000 for Lafayette
bus-related facility; $226,000 for Lake Charles buses; $1,191,000 for LA
DOTD vans and equipment; $1,410,000 for Monroe buses and bus-related
equipment; $17,200,000 for New Orleans buses and bus-related facilities;
$626,000 for Shreveport buses and bus-related facility; and $451,000 for
St. Tammany Parish buses and bus-related facility.
State of Michigan. --The Committee has provided $15,000,000 in the
bill for the State of Michigan for buses and bus facilities. In addition
to the funds provided in this Act, the FTA shall make available to the
State of Michigan for the procurement of buses and bus-related
facilities funds originally provided in the fiscal year 1995 Department
of Transportation and Related Agencies Appropriations Act for a
passenger intermodal transit center in Detroit, Michigan.
State of Tennessee. --The Committee has provided $8,000,000 for the
State of Tennessee. Within these funds, $4,400,000 shall be available to
Chattanooga for the purchase of alternatively-fueled buses.
Brazos, Texas transit systems buses and bus facilities. --Funds
provided in this Act for Brazos, Texas transit systems buses and bus
facilities shall not be available for the Woodlands Town Center
intermodal project.
FIXED GUIDEWAY MODERNIZATION
The Committee recommends $800,000,000 from the discretionary grants
program to modernize existing rail transit systems. These funds shall be
distributed based on a formula to be determined in the context of the
reauthorization of the Intermodal Surface Transportation Efficiency Act.
NEW STARTS
The bill includes $800,000,000 of new authority for new starts. These
funds are available for preliminary engineering, right-of-way
acquisition, project management, oversight, and construction of new
systems and extensions. The funds are to be distributed, subject to
authorization, as follows:
Atlanta--North Springs project $44,600,000
Boston Piers MOS 2 project 46,300,000
Canton-Akron-Cleveland commuter rail project 2,300,000
Charlotte South corridor transitway project 1,000,000
Cincinnati Northeast/Northern Kentucky rail line project 500,000
Clark County, Nevada, fixed guideway project 5,000,000
Cleveland blue line extension to Highland Hills project 800,000
Cleveland Berea red line extension to Hopkins International Airport 700,000
Cleveland waterfront line extension project 1,200,000
Dallas-Fort Worth RAILTRAN project 14,000,000
DART North central light rail extension project 8,000,000
Dekalb County, Georgia light rail project 1,500,000
Denver Southwest corridor project 21,400,000
Florida Tri-County commuter rail project 7,000,000
Galveston rail trolley system project 1,000,000
Houston advanced regional bus plan project 1,000,000
Houston regional bus project 51,100,000
Indianapolis Northeast corridor project 1,000,000
Jackson, Mississippi intermodal corridor project 4,000,000
Los Angeles MOS 3 project 76,000,000
MARC commuter rail improvements 27,000,000
Memphis, Tennessee regional rail project 1,000,000
Metro-Dade transit east-west corridor project 9,000,000
Miami North 27th Avenue project 9,000,000
Mission Valley East corridor project 1,000,000
New Jersey--Hudson-Bergen project 54,800,000
New Jersey Secaucus Project 27,000,000
New Orleans Canal Street corridor project 8,000,000
New Orleans Desire streetcar project 2,000,000
North Carolina Research Triangle Park project 6,000,000
Northern Indiana South Shore commuter rail project 2,000,000
Oceanside-Escondido light rail project 5,000,000
Oklahoma City MAPS corridor transit project 1,600,000
Orange County transitway project 4,000,000
Orlando Lynx light rail project 31,800,000
Pennsylvania Strawberry Hill/Diamond Branch rail project 500,000
Phoenix metropolitan area transit project 8,000,000
Pittsburgh airport busway project 3,000,000
Portland--Westside/Hillsboro project 63,400,000
Sacramento LRT project 20,300,000
Salt Lake City South LRT project 42,800,000
San Bernardino Metrolink project 1,000,000
San Diego Mid-Coast corridor project 3,000,000
San Francisco BART extension to the airport project 54,800,000
San Juan Tren Urbano 25,700,000
San Jose Tasman LRT project 21,400,000
Seattle-Tacoma commuter rail project 4,000,000
Seattle-Tacoma light rail project 2,000,000
St Louis--St Clair LRT extension project 30,000,000
Staten Island-Midtown Ferry service project 5,000,000
Tampa Bay regional rail project 2,000,000
Tidewater, Virginia rail project 2,000,000
Toledo, Ohio rail project 1,000,000
Twin Cities transitways projects 20,000,000
Virginia Rail Express Fredericksburg to Washington commuter rail project
2,500,000
Whitehall ferry terminal project 5,000,000
Wisconsin central commuter rail project (Metra) 5,000,000
Atlanta North Springs project. --The Metropolitan Atlanta Rapid
Transit Authority (MARTA) is constructing a 1.9 mile, two-station
extension of the North Line from just north of the Dunwoody Station to
North Springs. The project is part of the larger North Line extension to
the MARTA heavy rail rapid transit system. The segment from Buckhead to
Dunwoody opened in June 1996. The initial 5.7-mile segment, from Lenox
Station to Buckhead, was constructed without FTA assistance. When the
North Springs extension is completed, it will serve the rapidly-growing
area north of Atlanta, which includes Perimeter Center and north Fulton
County, and will connect this area with the rest of the region by
providing better transit service for both commuters and inner-city
residents traveling to expanding job opportunities. A full funding grant
agreement (FFGA) was issued for this project in December 1994, providing
for a total of $305,010,400 in new starts funding. The Committee
recommends $44,600,000 for fiscal year 1998.
Boston piers MOS 2 project. --The Massachusetts Bay Transportation
Authority (MBTA) is developing an underground transitway connecting the
MBTA's existing transit system with the South Boston Piers area, located
at the periphery of the central business district. This area is slated
for future development, and is expected to more than double its existing
commercial space by 2010. A 1.5-mile tunnel, to be constructed in two
phases, will extend from the existing Boylston Station to the World
Trade Center; five underground stations will provide connections to
MBTA's red, orange, and green lines. Electric trolleys or dual-mode
vehicles will operate in the transitway tunnel and on surface routes in
the eastern end of the Piers area. Phase 1 of the project consists of a
one mile bus tunnel with three stations located at South Station, Fan
Pier, and the World Trade Center. Phase 2 will extend the tunnel to
Boylston Station. Parts of Phase 1 are integrally related to
construction of the Central Artery/Tunnel highway project now underway.
Joint construction will help reduce transitway costs, environmental
impacts and construction impacts. Section 3035(j) of ISTEA directs FTA
to enter into a full funding grant agreement (FFGA) for this project. An
FFGA for this project was issued for phase 1 in November 1994 for
$330,726,320. For fiscal year 1998, the Committee recommendation
includes $46,300,000 for the project.
Canton-Akron-Cleveland commuter rail project. --This regional line
will relieve traffic congestion on Interstate 77 and help with air
quality issues in non-attainment areas. Currently, the Ohio Department
of Transportation is reviewing existing and proposed land use patterns
and impacts, preliminary ridership estimates, and preliminary cost
estimates. This phase will be completed by mid-1996. Phase II will
complete the analysis by assessing the economic and environmental
implications of a commuter rail system, as well as other transportation
modes available to meet anticipated travel demand. The Committee has
included $2,300,000 for the proposed Canton-Akron-Cleveland commuter
rail project and commends the Ohio Department of Transportation, as the
grantee, for ensuring the project's viability by encouraging a three
city, regional line.
Charlotte South corridor transitway project. --The City of
Charlotte, North Carolina is considering high capacity bus and rail
alternatives for several corridors. The city has completed a system
planning study which examined alternative bus and rail technologies for
each of eight different corridors in a radial pattern from the Charlotte
central business district. The study recommended proceeding with more
detailed planning analysis for the airport, Pineville and Matthews
corridors. The Committee has provided $1,000,000 in fiscal year 1998.
Cincinnati Northeast/Northern Kentucky rail line project. --The
corridor extends from the Cincinnati/Northern Kentucky International
Airport through downtown Cincinnati to King's Island Amusement Park in
Warren County, Ohio. This 33-mile corridor paralleling I 71 generally
runs in a northeasterly direction, and so is referred to as the
Northeast Corridor. The capital cost of the rail alternative is
$800,000,000. The project is currently in the system planning studies
phase. For fiscal year 1998, the Committee has included $500,000.
Clark County, Nevada RTC fixed guideway project. --The Committee has
provided $5,000,000 for preliminary engineering and design for a
proposed fixed guideway system in the Las Vegas, Nevada valley. The
regional transportation commission is currently in the final phase of a
major investment study for the Las Vegas corridor.
Cleveland Blue Line extension to Highland Hills project. --$800,000
has been provided for a major investment study of the Shaker Heights to
Highland Hills corridor in Cleveland, Ohio. This project is expected to
provide residents in Cleveland and its first-ring suburbs access to job
opportunities in the rapidly growing I 271 corridor.
Cleveland Berea Red Line extension to Hopkins International Airport.
--The Committee has provided $700,000 for preliminary engineering for
the selected alternative in the Cleveland-Berea corridor, which is
expected to provide greater access in the developing Berea/Brook Park
industrial corridor.
Cleveland Waterfront line extension project. --The Committee has
provided $1,200,000 for a major investment study of the area including
Playhouse Square, Cleveland State University and St. Vincent Quadrangle
in Cleveland, Ohio.
Dallas-Fort Worth RAILTRAN project. --The RAILTRAN project will
provide commuter rail service between Dallas and Fort Worth, Texas. This
project consists of 25 miles of service between South Irving and Fort
Worth. The system is currently in the preliminary engineering phase.
Phase 2 is estimated to cost $129,010,000. Congress has appropriated
$26,530,000 for this project to date and recommends $14,000,000 for
fiscal year 1998.
Dart North Central light rail extension project. --Dallas Area Rapid
Transit (DART) plans to build a North Central Corridor LRT extension
beyond the Park Lane Station and their starter system. The project is
11.4 miles long with 6 stations, terminating in Plano. The southern 6.8
miles, from Park Lane to the Richardson Transit Center, would be double
tracked. The northern 5.5 miles would be single tracked with limited
station development. The project is estimated to cost $354,300,000. The
project is now in the preliminary engineering phase. Through fiscal year
1997, Congress has appropriated $16,368,000. For fiscal year 1998, the
Committee recommends $8,000,000 for this project.
Dekalb County, Georgia light rail project. --The Committee has
provided $1,500,000 for the DeKalb County, Georgia light rail project.
The project would consist of a preliminary determination of the
feasibility and impact of a proposed rail line connecting the Lindbergh
Station with the East Lake Station and extending it into south DeKalb to
DeKalb College South Station. The preliminary conceptual study will
consist of numerous activities including: initial location studies for
alignment, stations and maintenance facilities, identification of patron
estimates; assessments of parking needs, and preliminary cost estimates;
consideration of property acquisition and major street and utility
relocation; preliminary topographic mapping and soil analysis; and at
least one initial public session on the preliminary conceptual plan.
Denver southwest corridor project. --The Regional Transit District
(RTD) in Denver is developing an 8.7 mile light rail extension from I 25
and Broadway in Denver to Mineral Avenue in Littleton. This double-track
line will operate over an exclusive, grade-separated right-of-way and
connect with the Central Corridor light rail in downtown Denver, which
opened in October 1994. RTD estimates that it will carry 22,000
passengers a day. The existing Central Corridor line was built entirely
without federal assistance, and RTD has $26,000,000 for the Southwest
Corridor in its capital reserve. The total federal share for the entire
system, including the locally funded starter line, is less than 50
percent. FTA issued an FFGA for this project in May 1996, committing
$120,000,000 in federal funds for this project. To date, $2,831,000 has
been provided for the project. The Committee recommends $21,400,000 for
the Denver Southwest corridor project in fiscal year 1998.
Florida Tri-County commuter rail project. --The Tri-County Commuter
Rail Authority (Tri-Rail) operates a 67-mile commuter rail system
connecting Dade, Broward, and Palm Beach counties in Florida. Tri-Rail
has been adding service and new stations to meet increasing demands for
service. Tri-Rail's five-year capital improvement program includes the
addition of a second track on part of the line, rehabilitation of the
signal system, station improvements and parking extensions. The capital
program is estimated to cost $423,300,000. The project is currently in
the preliminary engineering phase. To date, Congress has appropriated
$43,307,000, which is being used for station improvements, bridge
rehabilitation, and double tracking. The Committee recommends $7,000,000
for this project in fiscal year 1998.
Galveston, Texas rail trolley system project. --The Committee has
provided $1,000,000 to expand the existing rail trolley system in
Galveston, Texas to the University of Texas. No appropriations have been
previously provided for this project.
Houston advanced regional bus plan project. --The Committee has
provided $1,000,000 for a major investment study to begin the follow-on
phases of the Houston METRO regional bus project.
Houston regional bus project. --The Regional Bus Plan developed by
Houston Metro consists of a package of improvements to the existing bus
system. It consists of service expansions in most of the region, new and
extended HOV facilities and ramps, several transit centers and
park-n-ride lots, and supporting facilities. The local share for the
project is fifty percent. Section 3035 (uu) of ISTEA directs FTA to
negotiate and sign an FFGA for $500,000,000 for this project, provided
that a locally preferred alternative for the priority corridor project
had been selected by March 1, 1992. This condition has been met, and the
FFGA was issued in December 1994, to provide a total of $500,000,000 for
this project. To date, $327,323,000 has been appropriated for the
project. The Committee recommendation includes $51,100,000.
Indianapolis Northeast corridor project. --The Committee recommends
$1,000,000 for a major investment study to determine how to address
significant traffic congestion problems in the northeast Indianapolis
metropolitan region. No previous appropriations have been made for this
project.
Jackson, Mississippi intermodal corridor project. --The Committee
recommends $4,000,000 for preliminary engineering of the Jackson,
Mississippi intermodal corridor. The corridor extends from the Jackson
State University campus through downtown Jackson to the Jackson
International Airport. Through fiscal year 1997, $5,500,000 has been
appropriated for this project.
Los Angeles, MOS 3 project. --The 23-mile $5,700,000,000 Metro Red
Line Rail project is planned as ``minimum operable segments (MOSs) for
funding purposes. ISTEA defined MOS 3 to include three Metro Rail
extensions including the North Hollywood extension, the East Side
extension, and the Mid-City extension. A full funding grant agreement
has been signed, committing $1,416,490,000 in funding. To date, Congress
has appropriated $510,227,000, including $70,000,000 in fiscal year
1997. For fiscal year 1998, the Committee recommendation includes
$76,000,000 for the project. Of the funds provided, $24,000,000 shall be
available for the East Side extension, together with the required local
matching funds.
None of the funds provided to the Los Angeles MOS 3 project shall be
available until (1) the LACMTA produces an adopted recovery plan and a
financially constrained long range transportation plan, including
compliance with the consent decree for enhanced bus service; (2) the FTA
conducts a final review and accepts the plans; (3) the General
Accounting Office and the Department of Transportation's Inspector
General conduct an independent analysis of the plans and provide such
analysis to the House and Senate Committees on Appropriations; (4) the
House and Senate Committees on Appropriations have concluded its review
of the GAO/IG analysis; and (5) until after the FTA has re-negotiated
parts 1A and 1B of the MOS 3 full funding grant agreement.
MARC commuter rail improvements. --The Committee recommends
$27,000,000 for the MARC commuter rail project in fiscal year 1998. The
Mass Transit Administration (MTA) of Maryland is extending the Maryland
Commuter Rail (MARC) system to provide service from Point of Rocks to
Frederick, Maryland. This extension will provide service from suburban
Montgomery and Frederick counties to Baltimore, Maryland and Washington,
D.C. The project involves track, signal, station improvements along an
existing freight line. The environmental assessment of the Frederick
extension has been completed, station sites have been selected, and
final design is underway. MARC expects to initiate service on this
extension in 1998. ISTEA authorized funds in the amount of $160,000,000
for this project. An FFGA was issued in June 1995, to provide a total of
$105,251,000 to complete the project. Through fiscal year 1997,
$56,734,000 has been appropriated for this project.
Memphis, Tennessee regional rail project. --The Memphis Area Transit
Authority (MATA) is studying transit options in the corridor between
downtown Memphis and the Medical Center. The Medical Center Corridor
connects the two largest employment centers in the region. One
alternative being studied is an expansion of the 2.2-mile vintage rail
trolley that MATA currently operates in downtown Memphis. Through fiscal
year 1997, Congress has appropriated $4,749,000 for a regional
transit/rail plan. The Committee recommends $1,000,000 for fiscal year
1998.
Metro-Dade transit east-west corridor project. --The Florida
Department of Transportation is proposing a locally preferred set of
multimodal improvements that will link the suburban area west of Florida
International University, downtown Miami and the seaport. The MPO has
selected the locally preferred alternative which includes the minimum
operable segment of an 11.8 mile Metrorail line from the Palmetto
Expressway through the Miami Intermodal Center near the airport to the
seaport. The locally preferred alternative also includes HOV lanes along
SR 836 from the Turnpike to SR 112 along a new elevated SR 836/112
interconnector, and improvements to SR 836 to LeJeune Road. To date,
$1,490,000 has been appropriated for the project. In fiscal year 1998,
the Committee recommends $9,000,000.
Miami-North 27th Avenue project. --The Metro-Dade Transit Agency
(MDTA) is considering rail, busway, and bus options for improving
transportation in the 9.5 mile N.W. 27th Avenue corridor. One
alternative is an elevated heavy rail line which would operate in full
integration with stage 1 metrorail, connect with major regional
educational and sports facilities, and terminate at the Dade/Broward
county line. The preliminary capital cost of the rail alternative is
$453 $463 million. This includes final design, right-of-way and rolling
stock acquisition. A major investment study has been completed. There is
no authorization for this project in ISTEA. Congress has appropriated
$3,961,000 through fiscal year 1997 which has been used to fund
preliminary engineering and preparation of draft and final environmental
impact statements. The Committee recommends $9,000,000 for fiscal year
1998.
Mission Valley east corridor project. --The Committee recommends
$1,000,000 for the Mission Valley east corridor project. The
Metropolitan Transit Development Board is considering transit
improvement options in the Mission Valley East corridor. The corridor is
approximately 5.8 miles long, following Interstate 8 from Interstate 15
to near Baltimore Drive in La Mesa, California. A draft environmental
impact statement is scheduled to be circulated for public comment in
mid-1997, and a locally preferred alternative is scheduled for selection
in the fall of 1997. No previous appropriations have been provided for
the project.
New Jersey Hudson-Bergen project. --The New Jersey Transit
Corporation (NJ Transit) is proposing a 20.5 mile, 33-mile-station light
rail transit project along the Hudson River Waterfront in Hudson County.
The line would extend from the Vince Lombardi park-n-ride lot in Bergen
County to Bayonne, passing through Port Imperail in Weehauken, and New
Jersey City. The core of the system would serve the high-density
commercial centers in Jersey City and Hoboken, and provide connections
with NJ Transit commuter rail service, PATH trains to Newark and
Manhattan, and the Port Imperial ferry from Weehauken to Manhattan. This
project is a major component of the Urban Core program of interrelated
projects defined in ISTEA, designed to significantly enhance mobility in
the Northeastern New Jersey area. ISTEA specifically exempted these
projects from the FTA section 3 evaluation criteria. New Jersey Transit
is seeking funding to complete a 10-mile ``first construction stage''
from Hoboken Terminal to 34th Street in Bayonne and Westside Avenue in
Jersey City. A full funding grant agreement is in place, committing
$604,090,000 of section 5309 new start funds. A total of $99,020,000 has
been appropriated to date for this project. The Committee recommends
$54,800,000 for the Hudson-Bergen LRT project in fiscal year 1998.
New Jersey Secaucus project. --As part of its Urban Core program of
interrelated projects, New Jersey Transit is constructing a major
commuter rail transfer station in Secaucus, at the point where the Main
and Bergen Lines intersect with the Northeast Corridor Line. The project
consists of a new, three-level transfer station; track, signal and
bridge upgrades; and construction of a new platform and elevated
walkway. It will allow commuters on the Main Line, Bergen County Line,
Pascack Valley Line, and Port Jervis Line to transfer to Northeast
Corridor commuter trains destined to Penn Station in midtown Manhattan
or Penn Station in Newark. Located in the Meadowlands, this project is
part of a potential public/private partnership which could include a
major commercial center. Section 3031 of ISTEA identifies the Secaucus
Transfer Station as an element of the New Jersey Urban Core program of
projects, and requires FTA to enter into an FFGA for elements that can
be fully funded in fiscal years 1992 through 1997. In addition, ISTEA
earmarked $634,400,000 for the entire Urban Core program of projects.
Section 3031(c) specifically exempts these projects from the project
justification requirements. An FFGA was issued for the Secaucus Transfer
project in December 1994 to provide a total of $444,250,000 through
fiscal year 1998, including $233,180,000 funds already provided in prior
year appropriations. The Committee recommends $27,000,000 for fiscal
year 1998, completing the full funding grant agreement.
New Orleans Canal Street corridor project. --The Regional Transit
Authority (RTA) is developing a 4.4 mile streetcar project in downtown
New Orleans. The Canal Street corridor would extend along the median of
Canal Street from the Canal Ferry at the Mississippi River in the
Central Business District, through the Mid-City neighborhood, to two
outer termini at N. Anthony and Degado Community College/City Park. The
capital cost estimate is $92,600,000. The project is currently in the
preliminary engineering phase. Through fiscal year 1997, Congress has
appropriated $26,382,000. The Committee recommendation includes
$8,000,000 for the Canal Street corridor in fiscal year 1998.
New Orleans Desire streetcar project. --The Regional Transit
Authority seeks to design and construct the fabled Streetcar Named
Desire route as a major transit artery. Using Royal and Bourbon/Dauphine
Streets, the four mile line would travel through the historic New
Orleans neighborhoods of Bywater, Faubourg Marigny and the Vieux Carre
(the French quarter). The Committee has included $2,000,000 for on-going
major investment analyses and preliminary engineering and design
activities in fiscal year 1998. To date, $1,986,000 has been provided by
Congress for this project.
North Carolina Research Triangle Park project. --The Regional
Transit Plan proposes a three-phased project that will link the three
counties of Wake, Durham and Orange in the Triangle Transit Authority
(TTA). In phase I, TTA proposes to initiate regional rail service from
Durham to downtown Raleigh and from downtown Raleigh to North Raleigh.
Through fiscal year 1997, Congress has appropriated $2,000,000. For
fiscal year 1998, the Committee recommends $6,000,000 for preliminary
engineering and environmental studies.
Northern Indiana South Shore commuter rail project. --The Committee
has provided $2,000,000 for a major investment study for the Westlake
Corridor commuter rail project in Indiana. The Westlake Corridor would
be a new commuter rail service that would operate on an abandoned
right-of-way that was previously secured by the Northern Indiana
Commuter Transportation District. Westlake Corridor would begin in the
Lowell/St. John area of central Lake County and travel northward through
Munster and Hammond, linking with the existing East/West South Shore
railroad line and terminating at Randolph Street Station in Chicago,
Illinois. The Westlake Corridor will eventually serve high residential
growth areas in south central Lake County, Munster and Hammond. The
major investment study will refine the proposed alignment and provide
total cost estimates for the project. Through fiscal year 1997, Congress
has appropriated $500,000 for this project.
Oceanside-Escondido light rail project. --The Committee recommends
$5,000,000 for the North San Diego County Transit District's
Oceanside-Escondido light rail project. This project will convert a 22
mile freight rail corridor into a passenger rail system from the coastal
city of Oceanside to the inland city of Escondido, and will relieve
State Route 78 congestion. No previous appropriations have been provided
for this project.
Oklahoma City MAPS corridor transit project. --The Central Oklahoma
Transportation and Parking Authority (COPTA) is proposing a 3 mile,
vintage trolley circulator in downtown Oklahoma City. The project is
known as the MAPS (Metropolitan Area Projects) Transportation System
Rail Element. COPTA estimates that 1,700 daily riders will use this
route in the year 2000. The project will serve the Alfred P. Murrah
bombing memorial and proposed federal office campus. To date, Congress
has appropriated $1,986,000 for the project, all of which is currently
unobligated. For fiscal year 1998, the Committee recommends $1,600,000.
Funding provided for the Oklahoma City MAPS project in fiscal years 1997
and 1998 shall be available only for the purchase of rubber wheel
trolleys and bus systems.
Orange County, California transitway project. --The Orange County
Transportation Authority (OCTA) and the Department of California
Department of Transportation (Caltrans) are currently completing a
108-mile system of HOV lanes and developing an intermodal transportation
network in Orange County. Previous federal appropriations provided
$23,325,000 for construction of one element of Orange County's HOV lane
system--the I 405/SR 55 transitway. OCTA will complete construction of
the $164,000,000 I--405/SR 55 transitway project and add express buses
and park-and-ride lots with local funds. OCTA is seeking continued
federal appropriations for the bus and rail transit elements of the
Central Orange county Transitway project for which the Committee has
included $4,000,000 in fiscal year 1998.
Orlando Lynx light rail project. --In September 1992, the Florida
Department of Transportation began developing a multimodal master plan
to identify improvements to the Interstate 4 corridor from the
Polk/Osceola county line to I 95 in Volusia County. That plan contains a
light rail transit (LRT) component which would encompass approximately
24 miles. The minimum operating segment from the Lynx systems plan
indicates an LRT from Central Parkway (Altamonte Springs) in Seminole
County to the Orlando/Orange County international drive tourist
district. The LRT would be located in the median of a reconstructed
Interstate 4, or adjacent to an existing railroad corridor. The total
cost of the project, including park-n-ride, bus and LRT facilities, is
estimated to be between $650,000,000 and $800,000,000. For fiscal year
1998, the Committee recommendation includes $31,800,000.
Pennsylvania Strawberry Hill/Diamond Branch rail project. --The
Committee has provided $500,000 for the Strawberry Hill/Diamond Branch
rail project in Scranton, Pennsylvania. Funds are provided for the
acquisition and restoration of rail connections between Lackawanna
Avenue Station, Scranton and Lackawanna Rail Authority's Main Line, at
Olive Street. The project will facilitate direct rail service from
downtown Scranton to communities in the mid and upper Lackawanna Valley
ending in Carbondale.
Phoenix metropolitan area transit project. --The Committee
recommends $8,000,000 for preliminary planning and design of a fixed
guideway system in Phoenix, Arizona. The initial segment would span a
10-mile stretch from downtown Tempe to downtown Phoenix. No previous
appropriations have been provided.
Pittsburgh airport busway project. --The Port Authority of Allegheny
County is constructing a 7-mile busway and a 1-mile HOV facility to
serve a 20-mile corridor between the airport and downtown Pittsburgh.
The busway, extending from Carnegie to downtown Pittsburgh, will follow
sections of active and abandoned railroad right-of-way from Carnegie to
Station Square, which is across the Monongahela River from downtown
Pittsburgh. At Station Square the exclusive busway will merge with a 1.1
mile HOV facility comprised of a rehabilitated Wabash Tunnel and new
bridge across the Monongahela River to complete the connection into
downtown Pittsburgh. In the remaining 12 miles of the corridor, from
Carnegie to the airport, buses will operate in mixed traffic on the
relatively uncongested Parkway West. Through fiscal year 1997,
$130,930,000 has been appropriated for the project. In fiscal year 1998,
the Committee recommends $3,000,000.
Portland-Westside/Hillsboro project. --The Westside-Hillsboro light
rail project extends the existing MAX system from the terminus in
downtown Portland to downtown Hillsboro. The route includes a three mile
twin tube tunnel under the West Hills. The project is 17.7 miles long
with 20 stations, 9 park-n-ride lots, and parking spaces for
approximately 3,700 automobiles. The project will include 36 low-floor
light rail vehicles. Section 3035(b) of ISTEA directs the FTA to enter
into a multiyear agreement with the Tri-County Metropolitan
Transportation District of Oregon (Tri-Met) in the amount of
$515,000,000 for the segment from downtown Portland to 185th Avenue.
Consistent with P.L. 102 143, two extensions were combined into a single
$910,000,000 project in December 1994, and Tri-Met entered into a
$910,000,000 FFGA with FTA that month. The 1994 FFGA for the
Westside-Hillsboro project provides a contingent commitment of new start
funds of $74,000,000 to fund one-third of the Hillsboro extension cost.
Construction is underway along the entire segment. A further amendment
to the FFGA was made in November 1997 adding $40,000,000 to the project.
The projected revenue service date is 1998. For fiscal year 1998, the
Committee recommends $63,400,000 for this project.
Sacramento LRT project. --The Sacramento Regional Transit District
(RT) is developing an 11.3 mile light rail project on the Union Pacific
right-of-way in the South Sacramento Corridor. RT has elected to phase
the project to maximize the use of available state and local capital
funds and to correspond with available operating funds. Phase 1, known
as the Interim Operable Segment (IOS), consists of a 6.3-mile segment of
the full project. The segment would operate between downtown Sacramento
and Meadowview Road. The estimated capital cost of the IOS is
$254,500,000. Phase 2 is estimated to cost an additional $22,000,000.
Section 3035 of ISTEA directed FTA to enter into a multiyear grant
agreement with RT for $26,000,000 to provide for the completion of
alternatives analysis, preliminary engineering, and final design. Of
that amount, $9,919,000 has been appropriated through fiscal year 1997
and $20,300,000 is recommended for the Sacramento LRT project in fiscal
year 1998.
Salt Lake City South LRT. --The Utah Transit Authority (UTA) is
implementing a 15-mile light rail transit (LRT) line from downtown Salt
Lake City parallel to I 15 and State Street to suburban areas to the
south. The LRT line will operate at-grade on city streets in downtown
Salt Lake City (two miles) and in a railroad right-of-way (13 miles)
owned by UTA to the suburban community of Sandy. The total cost of this
project, including a maintenance facility, vehicles, stations,
park-n-ride centers, and finance costs is estimated at $312,500,000. The
LRT project is part of the Interstate 15 corridor improvements which
include reconstruction of a parallel segment of I 15. Section 3035(f) of
ISTEA directed FTA to enter into a multiyear grant agreement with UTA
which provides $131,000,000 in new start funds to carry out the
construction of the project. Through fiscal year 1997, Congress has
appropriated $73,392,000 for right-of-way acquisition, engineering,
design and construction. For fiscal year 1998, the Committee has
included $42,800,000 for the Salt Lake City South LRT.
San Bernardino Metrolink project. --The Committee recommends
$1,000,000 for the San Bernardino Metrolink project to procure natural
gas engines. No previous appropriations have been provided for this
project.
San Diego Mid-Coast corridor project. --The Metropolitan Transit
Development Board (MTDB), the California Department of Transportation
(Caltrans), and the San Diego Association of Governments are proposing
commuter rail improvements, a light rail line, and high occupancy
vehicle lanes in the Mid-Coast corridor. The corridor extends about 12
miles along the I 5 near the Pacific Ocean from I 8 near Old Town, north
to the vicinity of the University of California, San Diego, University
Town Centre shopping mall, and Carmel Valley. The commuter rail
improvements consist of a new station and parking expansion on the
existing Coaster line. The project is estimated to cost $5,700,000. The
10.3 mile Mid-Coast LRT project would extend from Old Town to North
University City, and would include 9 stations. The line would connect
the Mission Valley and South LRT lines and the Coaster line at the Old
Towne Transit Center. An initial phase is proposed from Old Town to
Balboa Avenue. The LRT line and supporting bus services are estimated to
cost $353,300,000. The proposed HOV lanes would be built by Caltrans in
the median of I 5 between Carmel Mountain Road and I 8. Section 3035(g)
of ISTEA directed FTA to sign a multiyear grant agreement with MTDB
providing $27,000,000 for the completion of alternatives analysis and
the final environmental impact statement and to purchase right-of-way.
Through fiscal year 1997, Congress has appropriated $5,575,000 of which
$2,637,000 was rescinded and reprogrammed. The Committee recommendation
includes $3,000,000 for this project in fiscal year 1998.
San Francisco BART extension to the airport project. --Local
officials in the San Francisco have proposed a four-station, 6.4-mile
extension of the Bay Area Transit (BART) system from Colma to an
intermodal station serving the San Francisco International Airport. The
route will serve the cities of South San Francisco and San Bruno,
connect with the airport, and continue to Millbrae. The majority of the
route is to follow a combination of existing and abandoned railroad
rights-of-way. Through fiscal year 1997, Congress has provided
$83,923,000. For fiscal year 1998, the Committee recommends $54,800,000.
The FTA is directed to issue a full funding grant agreement that
includes a federal commitment to the project not in excess of
$750,000,000 not later than July 1, 1997.
San Juan, Puerto Rico, Tren Urbano. --The Puerto Rico Department of
Transportation and Public Works (DPTW), through its Highway and
Transportation Authority (HTA), is proposing a 10.7 mile double-track
guideway between Bayamon Centro and the Sagrado Corazon area of Santurce
in San Juan. Approximately forty percent of the alignment is at or near
grade. The remainder, aside from a short below-grade section in the
Centro Medico area and underground through Rio Piedras, is generally
elevated above roadway rights-of-way. The project is estimated to cost
$1,110,000,000. ISTEA does not contain an authorization for this
project. To date, Congress has appropriated $18,430,000 for the Tren
Urbano project. For fiscal year 1998, the Committee recommendation
includes $25,700,000 for this project.
San Jose Tasman LRT project. --The Committee recommends $21,400,000
for the Tasman LRT project. Phase I west extension consists of 7.6 miles
of surface LRT from the northern terminus of the Guadalupe LRT in Santa
Clara, west through Sunnyvale, to the CalTrain commuter rail station in
Mountain View. The project will include 11 stations and will be double
tracked except for partial single tracking between Mountain View and
Lockheed stations. The West Extension is estimated to cost $325,000,000,
and received an FFGA in July 1996. To date, appropriations for the
project have totaled $102,750,000.
Seattle-Tacoma commuter rail project. --The three county Central
Puget Sound Regional Transit Authority (RTA) Board adopted a ten year
regional transit plan for the Seattle metropolitan area in May 1996. The
plan consists of a regional, comprehensive system of services, including
commuter rail service between Seattle and Tacoma, additional commuter
rail service, LRT service and regional express bus service. The
Seattle-Tacoma commuter rail service is proposed to operate along
approximately 40 miles of track between the two cities. The total
capital cost of the project is estimated at $367,000,000, including
track up-grade, stations, parking facilities and rolling stock. Through
fiscal year 1997, Congress has appropriated $22,638,000 for the project,
although $15,185,000 of that amount was reprogrammed in the fiscal year
1996 appropriations Act. For fiscal year 1998, the Committee recommends
$4,000,000.
Seattle-Tacoma light rail project. --The three county Central Puget
Sound Regional Transit Authority (RTA) Board adopted a ten year regional
transit plan for the Seattle metropolitan area in May 1996. The plan
consists of a 25-mile LRT line from the city north through downtown
Seattle to the university district, with a possible extension to
Northgate. The plan also consists of a 2-mile LRT line from downtown
Tacoma to the vicinity of the Tacoma Dome, 80 miles of commuter rail
service, and twenty regional express bus routes. The project is expected
to cost $3,900,000,000 and take ten years to implement. For fiscal year
1998, the Committee recommends $2,000,000.
St. Louis-St. Clair LRT extension project. --The Bi-State
Development Agency (Bi-State) is proposing a 24.8 mile light rail line
between downtown East St. Louis, Illinois, and the vicinity of Scott Air
Force Base. The project would connect with the MetroLink light rail
project that opened in July 1993. The project is estimated to cost
$431,500,000. A full funding grant agreement was executed in October
1996 for the East St. Louis to Belleview Area College Segment. Through
1997, Congress has appropriated $39,708,000 for the project. For fiscal
year 1998, the Committee recommends $30,000,000.
Staten Island-Midtown Manhattan ferry service project. --The New
York City Department of Transportation (NYCDOT) has proposed
construction of terminals and initiation of high speed ferry service
between Staten Island and Midtown Manhattan. The service would be
provided by privately-owned and operated ferries without public
operating subsidies. The estimated cost of this project is $12,600,000.
The estimate ridership is 4,800 per day. Section 3035(d) of ISTEA
directed the FTA to negotiate and sign a multiyear grant agreement for
$12,000,000 to carry out capital improvements for the proposed project.
To date, Congress has appropriated $1,372,000, of which $375,000 was
rescinded. For fiscal year 1998, the Committee recommends $5,000,000.
Tampa Bay regional rail project. --The Hillsborough Area Transit
Authority (HART) is undertaking a study of transportation alternatives
in the 32-mile corridor between Tampa and Lakeland, Florida. One
alternative to be considered is a commuter rail line on existing CSX
tracks that parallel I 4. The commuter rail alternative is estimated to
cost approximately $30,000,000. HART is about to undertake a major
investment study that will consider alternatives for addressing
transportation problems in the I 4 corridor. Through 1997, Congress
appropriated $2,876,000 for the corridor. For fiscal year 1998, the
Committee recommendation includes $2,000,000 for this project.
Tidewater, Virginia light rail project. --The Committee recommends
$2,000,000 for preliminary engineering and environmental impact studies
for a light rail project. The project would utilize the existing
right-of-way and extend 18 miles between Interstate 64 and Route 44. The
project is expected to carry 15,000 riders a day and is projected to
cost $376,000,000. No previous appropriations have been provided for the
project.
Toledo, Ohio rail project.-- The Committee has provided $1,000,000
to complete a major investment study and an environmental analysis for a
new fixed guideway transit facility from downtown Toledo to the Central
Union Terminal and the Toledo Zoo. The proposed major investment study
will analyze the viability of a personal rapid transit system within the
Toledo central business district and a trolley line, light rail, or
guideway connection with the terminal and the zoo.
Twin Cities transitways projects. --The Twin Cities of
Minneapolis-St. Paul is the 15th largest metropolitan area in the
nation, with a population of 2.7 million. Until recently, the Twin
Cities have managed to escape the congestion, pollution and related
problems of the larger, older urban areas. Now, however, the traffic
congestion levels are increasing dramatically, with significant adverse
impacts on residents. The Twin Cities region has concluded that a
network of transitways is indispensable to manage growth wisely and
encourage land use and behavioral choices that enhance the quality of
life in the Minneapolis-St. Paul area. The Committee provides
$20,000,000 for the development and construction of the Hiawatha
Corridor fixed guideway from downtown Minneapolis to the Minneapolis-St.
Paul International Airport and the Mall of America; a major investment
study of the Riverview Corridor from downtown St. Paul to the Airport
and the Mall; and planning and analysis of transit alternatives,
including commuter rail, and minor transit improvements in the Northstar
Corridor linking the Northtown Hub in Anoka County with downtown
Minneapolis and the Hiawatha Corridor.
Virginia Railway Express (VRE) Fredericksburg to Washington commuter
rail project. --The Committee has provided $2,500,000 for the Virginia
Railway Express (VRE) Fredericksburg to Washington commuter rail
project. Of the funds provided in the Act, $1,500,000 shall be available
for right-of-way acquisition at Route 123 and Route 1 to provide for
direct access to the Woodbridge Station of the VRE, and $1,000,000 shall
be available to improve pedestrian safety at the King Street Metro and
VRE station area.
Whitehall ferry terminal project. --The Committee recommendation
includes $5,000,000 for the Whitehall Ferry Terminal in New York City.
The New York City Department of Transportation and the New York City
Economic Development Corporation have proposed the redesign and
reconstruction of the Staten Island Ferry's Whitehall terminal in
downtown Manhattan. The terminal was largely destroyed by fire in 1991
and ferry service has been operating out of interim facilities since
then. The preliminary estimate of the cost of reconstruction is
approximately $80,000,000. Currently, 60,000 people use this terminal a
day. Final design is expected to begin in June 1996 and be completed by
February 1998. Construction is programmed to begin in late 1998 and will
take three years to complete. Through fiscal year 1997, Congress has
appropriated $8,675,000.
Wisconsin central commuter rail project. --The Committee recommends
$5,000,000 for Wisconsin central commuter rail, or Metra. Funds provided
in this Act are to be available for engineering and design work on
proposed expansions to the Metra system, as well as station
reconstruction in Chicago.
MAJOR CAPITAL INVESTMENTS
(LIMITATION ON OBLIGATIONS)
(HIGHWAY TRUST FUND)
Limitation, fiscal year 1997 (--)
Budget estimate, fiscal year 1998 ($650,000,000)
Recommended in the bill (--)
xlBill compared with:
Limitation, fiscal year 1997 (--)
Budget estimate, fiscal year 1998 (-650,000,000)
The Committee recommendation disapproves the budget request which
proposed to create a new major capital investments program. Funding for
this program is currently provided under the section 5309 discretionary
grants program. Since this proposal is not authorized under current law,
the Committee defers consideration of the request to the appropriate
legislative committees which shall consider it in the context of the
reauthorization of the Intermodal Surface Transportation Efficiency Act.
MASS TRANSIT CAPITAL FUND
(LIQUIDATION OF CONTRACT AUTHORIZATION)
(HIGHWAY TRUST FUND)
Appropriation, fiscal year 1997 ($2,300,000,000)
Budget estimate, fiscal year 1998\1\ (2,350,000,000)
Recommended in the bill (2,350,000,000)
xlBill compared with:
Appropriation, fiscal year 1997 (+50,000,000)
Budget estimate, fiscal year 1998 (--)
\1\The budget proposes to fund the liquidating cash appropriation under a new account entitled
mass capital investments.
This liquidating cash appropriation covers obligations incurred under
contract authority provided for activities previously discussed under
the discretionary grants program. The Committee recommends
$2,350,000,000 in liquidating cash for mass transit capital programs,
consistent with existing law.
WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY
Appropriation, fiscal year 1997 $200,000,000
Budget estimate, fiscal year 1998\1\ 200,000,000
Recommended in the bill 200,000,000
xlBill compared with:
Appropriation, fiscal year 1997 --
Budget estimate, fiscal year 1998 --
\1\The budget proposes to fund this program from the mass transit account of the Highway Trust
Fund.
The bill includes the budget estimate of $200,000,000 for the
construction of the Washington, D.C. Metrorail system. The Committee
recognizes that the administration, the transit authority and the state
and local governments in the metropolitan Washington region have reached
agreement on financing the remaining 13.5 miles of the adopted regional
system and are committed to completion of the system on the ``fast
track'' schedule. The Committee further recognizes that a reliable
federal appropriation is critical to securing the necessary credit
arrangement required to keep the ``fast track'' construction program on
schedule. The Committee supports the completion of the remaining 13.5
miles and is recommending the budget request to permit WMATA to proceed
with the ``fast track'' construction program.
SAINT LAWRENCE SEAWAY DEVELOPMENT CORPORATION
The Saint Lawrence Seaway Development Corporation's operations
program consists of lock and marine operations, maintenance, dredging,
planning and development activities related to the operation and
maintenance of that part of the Saint Lawrence Seaway between Montreal
and Lake Erie within the territorial limits of the United States.
The Committee maintains a strong interest in maximizing the
commercial use and competitive position of the Saint Lawrence Seaway.
The general language under this heading is the same as the language
provided last year. Continuation of this language, in addition to that
under the operations and maintenance appropriation, will provide the
Corporation the flexibility and access to available resources needed to
finance costs associated with unanticipated events which could threaten
the safe and uninterrupted use of the Seaway. The language permits the
Corporation to use sources of funding not designated for the harbor
maintenance trust fund by Public Law 99-662, but which have been
historically set aside for non-routine or emergency use: cash reserves
derived primarily from prior year revenues received in excess of costs;
unused borrowing authority; and miscellaneous income.
OPERATIONS AND MAINTENANCE
(Harbor Maintenance Trust Fund)
Appropriation, fiscal year 1997\1\ $10,337,000
Budget estimate, fiscal year 1998 --
Recommended in the bill 11,200,000
xlBill compared with: +863,000
\1\Does not reflect reductions of $12,704 for TASC and $2,000 in awards and bonuses.
On March 4, 1996, the Vice President announced plans to restructure
eight federal agencies as performance-based organizations (PBOs). The
Saint Lawrence Seaway Development Corporation (Seaway) was one of the
eight agencies chosen for the conversion to a PBO. Legislation and a
financial plan for the Seaway's PBO was submitted to Congress in July
1996; however, it was not acted upon. The PBO legislation was
resubmitted to Congress in May 1997.
As a PBO, the Seaway's primary funding mechanism would change under
its proposed legislation from yearly congressional appropriations to
mandatory formula-based payments. Due to the PBO proposal, the Seaway is
not making an appropriation request in fiscal year 1998, but instead is
seeking a mandatory payment from the harbor maintenance trust fund of
$11,200,000.
The bill includes an appropriation of $11,200,000 instead of
mandatory funding as requested. Establishing the Seaway as a PBO has not
been authorized and it is not within this Committee's jurisdiction to do
so. Until authorization is enacted, the Committee will continue funding
the Seaway according to current law. The Committee recommendation in no
way presumes that the Seaway's status will change to become a PBO.
The Committee is concerned about certain provisions contained within
the proposed PBO legislation. First, the proposed mandatory funding
mechanism would guarantee a certain level of funding irrespective of
overall policy goals, such as deficit reduction, which goes against
Congressional and Presidential goals to reach a balanced budget by the
year 2002. Second, Congress would no longer have a direct role in
setting the Seaway's funding levels or determining how those funds
should be used. Third, the harbor maintenance trust fund, which is the
source of current appropriations for the Seaway and the source for the
proposed mandatory payments, has been ruled unconstitutional by the U.S.
Court of International Trade. This ruling is under appeal. The decision
of constitutionality would affect the Seaway's current funding since its
appropriation now comes from that fund. However, should the ruling be
upheld, under the PBO formula-based funding mechanism, Congress would
have less flexibility in addressing the funding shortfall because the
Seaway would be guaranteed a certain level of resources even though no
tax would be collected. A final ruling on this case is not anticipated
until at least the beginning of fiscal year 1998.
RESEARCH AND SPECIAL PROGRAMS ADMINISTRATION
The Research and Special Programs Administration (RSPA) was
originally established by the Secretary of Transportation's
organizational changes dated July 20, 1977. The agency received
statutory authority on October 24, 1992. RSPA has a broad portfolio. Its
diverse jurisdictions include hazardous materials, pipelines,
international standards, emergency transportation, and university
research. As the department's only multimodal administration, RSPA
provides research, analytical and technical support for transportation
programs through headquarters offices and the Volpe National
Transportation Systems Center.
SUMMARY OF FISCAL YEAR 1998 PROGRAM
The Committee recommends $59,620,000 in new budget authority to
continue the operations, research and development, and grants-in-aid
administered by the Research and Special Programs Administration. This
is $1,546,000 more than the 1997 amount and $3,670,000 less than the
budget estimate. The following table summarizes fiscal year 1997 program
levels, the fiscal year 1998 program requests, and the Committee's
recommendations:
Program 1997 enacted 1,2,3 1998 estimate Recommended in the bill\3\
Research and special programs $26,886,000 $30,102,000 $27,934,000
Pipeline safety 30,988,000 32,988,000 31,486,000
Emergency preparedness grants 200,000 200,000 200,000
-------------------- ---------------- -----------------------------
Total 58,074,000 63,290,000 59,620,000
\1\Does not reflect reductions of $279,842 for TASC and $5,100 in awards and bonuses.
\2\Excludes $3,000,000 provided in the Omnibus Consolidated Appropriations Act, 1997 for
emergency appropriations.
\3\Does not include $1,000,000 from pre-existing user fees in the pipeline safety fund.
RESEARCH AND SPECIAL PROGRAMS
Appropriation, fiscal year 1997\1\ ,\2\ $26,886,000
Budget estimate, fiscal year 1998 30,102,000
Recommended in the bill 27,934,000
xlBill compared with:
Appropriation, fiscal year 1997 +1,048,000
Budget estimate, fiscal year 1998 -2,168,000
\1\Does not reflect reductions of $179,100 for TASC and $3,900 in awards and bonuses.
\2\Excludes $3,000,000 provided under the Omnibus Consolidated Appropriations Act, 1997 for
an emergency appropriations.
RSPA's research and special programs administers a comprehensive
nationwide safety program to (1) protect the nation from the risks
inherent in the transportation of hazardous materials by water, air,
highway and railroad; (2) oversee the execution of the Secretary of
Transportation's statutory responsibilities for providing transportation
services during national emergencies; and (3) coordinate the
department's research and development policy planning, university
research, and technology transfer. Overall policy, legal, financial,
management and administrative support to RSPA's programs also is
provided under this appropriation. The total recommended program level
for research and special programs is $27,934,000. This is an increase of
$1,048,000 above the amount provided in fiscal year 1997 and a reduction
of $2,168,000 below the budget request. Budget and staffing data for
this appropriation are as follows:
1997 enacted\1\ 1998 estimate Recommended in the bill
Hazardous materials safety $15,472,000 $15,492,000 $15,024,000
Research and technology 3,580,000 5,296,000 3,596,000
Emergency transportation 993,000 993,000 993,000
Program support 6,841,000 8,321,000 8,321,000
----------------- ---------------- --------------------------
Total, Research and Special Program 26,886,000 30,102,000
27,934,000
(Total positions) (197) (197) (197)
\1\Does not include $3,000,000 provided under the Omnibus Consolidated Appropriations Act,
1997 for emergency appropriations.
The Committee has included new bill language allowing funds received
from states, counties, municipalities, public authorities, and other
private sources to be used for expenses incurred in performance of
hazardous materials exemptions and approval functions, as requested.
The Committee recommends the following changes to the budget request
for this appropriation:
Hazardous materials: -$468,000
Research and technology: -1,700,000
-------------
Net change to budget estimate -2,168,000
Personnel, compensation, and benefits.-- The Committee has provided
$8,557,000 for personnel, compensation, and benefits for hazardous
materials safety, which is the same amount as provided in 1997. Last
year, following the Valujet tragedy, Congress increased the number of
inspectors under this program and provided a full year of funding for
each new inspector. However, RSPA has not been able to fill these
positions in a timely manner and has experienced a very high attrition
rate with its current hazardous materials inspectors because of hiring
possibilities outside of the agency. At the beginning of June 1997, RSPA
had 22 vacancies to fill and projects that it will lapse over $600,000
in excess personnel, compensation, and benefits funds because these
positions remain unfilled. Given these difficulties, the Committee
believes a lower funding level will be sufficient but expects these
personnel to be hired as soon as possible in fiscal year 1998.
Research and development.-- The Committee recommends $2,200,000 for
research and development (R&D), which is the same amount as provided in
fiscal year 1997, excluding one-time funding provided in the Omnibus
Consolidated Appropriations Act for transportation vulnerability and
threat assessment research. RSPA has not requested funding to continue
this assessment effort in 1998. The Committee believes that additional
R&D funding is not necessary because RSPA does not conduct any direct
research but instead is responsible for technology sharing, policy
formulation, and research agenda-setting. Further, under the
reauthorization proposal, RSPA is seeking $10,000,000 in contract
authority for R&D, which, if authorized, will amply augment this
appropriated level.
PIPELINE SAFETY
(Pipeline Safety Fund)
(oil spill liability trust fund)
Pipeline Safety Fund Oil Spill Liability Trust Fund
Appropriation, fiscal year 1997\1\ ,\2\ $28,460,000 $2,528,000
Budget estimate, fiscal year 1998 30,660,000 2,328,000
Recommended in the bills\2\ 28,186,000 3,300,000
xlBill compared with:
Appropriation, fiscal year 1997 -274,000 +772,000
Budget estimate, fiscal year 1998 -2,474,000 +972,000
\1\Does not include reductions of $100,742 for TASC and $1,200 in awards and bonuses.
\2\Does not reflect $1,000,000 funded from pre-existing fees collected in the pipeline safety
fund.
The pipeline safety program is responsible for a national regulatory
program to protect the public against the risks to life and property in
the transportation of natural gas, petroleum and other hazardous
materials by pipeline. The enactment of the Oil Pollution Act of 1990
expanded the role of the pipeline safety program in environmental
protection and resulted in a new emphasis on spill prevention and
containment of oil and hazardous substances from pipelines. The office
develops and enforces federal safety regulations and administers a
grants-in-aid program to state pipeline authorities.
The bill includes $31,486,000 to continue pipeline safety operations,
research and development, and state grants-in-aid in fiscal year 1998.
This represents a $498,000 increase above the level enacted in 1997 and
a reduction of $1,502,000 from the budget request. The bill specifies
that, of the total appropriation, $3,300,000 is to be derived from the
oil spill liability trust fund and $28,186,000 from the pipeline safety
fund. In addition, the Committee has included language that permits the
office of pipeline safety (OPS) to use $1,000,000 from pre-existing fees
collected in the pipeline safety reserve fund for one-call notification
grants.
The Committee recommends the following changes to the budget request
for this appropriation:
Fund personnel, compensation, and benefits from the oil spill liability trust fund
-$344,000
Hold operating expenses to a 10 percent increase -263,000
Fund some contract activities from the oil spill liability trust fund -628,000
Delete funding for nondestructive evaluation program -239,000
Fund one-call activities from reserve fund instead of state grants -1,000,000
Increase funding drawn from the oil spill liability trust fund +972,000
Net change to budget request -1,502,000
Personnel, compensation, and benefits.-- The Committee has provided
$7,550,000 for personnel, compensation, and benefits, which is $344,000
less than requested. According to RPSA, there are seven work years
devoted to environmental policy development, response plan exercises,
pipeline inspection and spill response, technical monitoring and special
studies of oil pipeline integrity management issues, which are funded
through user fees. However, these activities should more appropriately
be funded from the oil spill liability trust fund because they relate to
environmental liquid petroleum issues. Thus, the Committee has increased
the amount derived from the oil spill liability trust fund to accurately
reflect these costs.
Operating expenses.-- The Committee has provided $3,688,000 for
operating expenses, which is $263,000 less than the budget request. OPS
had sought a 47 percent increase in this program, including new rent
charges. The Committee has provided a 10 percent increase in operating
expenses, excluding rental payments.
Contract activities.-- The Committee has reduced OPS contract
activities by $628,000 because portions of these activities relate to
environmentally sensitive, liquid petroleum issues and should be funded
by the oil spill liability trust fund. The Committee has increased the
amount derived from the oil spill liability trust fund to accurately
reflect these contract costs.
Nondestructive evaluation.-- The Committee has deleted funding for
nondestructive evaluation activities in fiscal year 1998 because ample
funding has been appropriated in the past to fully fund ongoing work
(-$239,000). To date, $2,200,000 has been appropriated for
nondestructive evaluation; however, only one contract totalling
$1,900,000 has been awarded. The base contract will not be completed in
the fourth quarter of fiscal year 1998, and a one year renewal may be
negotiated at that point. With the previously appropriated funds, OPS
could renew this contract for the remainder of fiscal year 1998 without
depleting its funds, especially since the actual obligation rate for
this project has been approximately forty percent less than planned.
This action does not prejudice the project from receiving consideration
for funding in future appropriations Acts.
One-call notification.-- Instead of funding one-call activities from
state grants, the Committee has provided bill language that allows OPS
to use up to $1,000,000 from its reserve fund for this initiative. OPS
has approximately $19,291,000 in its reserve fund. Last year, for the
first time, Congress began funding state one-call activities from
previously collected user fees instead of from state grant program
funds. By tapping the reserve fund, all of the monies provided for state
grants can be used for state safety programs. OPS supports the
continuation of this effort.
Oil spill liability trust fund.-- The budget request sought
$2,328,000 from the oil spill liability trust fund; however, the
Committee has increased this amount to $3,300,000 because OPS has
testified that there are a number of program activities that could be
appropriated from this trust fund instead of funded by new user fees.
Remote control and automatic shut-off valves.-- The Pipeline
Reauthorization Act (P.L. 104 304) requires that no later than June 1,
1998, the Secretary make a determination whether the use of remotely
controlled valves is technically and economically feasible and would
reduce risks associated with a rupture of an interstate natural gas
pipeline. To assist in making such a determination, the law also
requires the Secretary to survey and assess the effectiveness of
remotely controlled valves to shut off the flow of natural gas in the
event of a natural gas pipeline rupture. The Committee believes that the
general public and the industry deserve a thorough study of the safety
benefits of this technology and urges the Secretary to immediately begin
to take the necessary steps to complete this study no later than the
legally mandated deadline.
EMERGENCY PREPAREDNESS GRANTS
(Emergency Preparedness Fund)
Appropriation, fiscal year 1997 $200,000
Budget estimate, fiscal year 1998 200,000
Recommended in the bill 200,000
xlBill compared with:
Appropriation, fiscal year 1997
Budget estimate, fiscal year 1998
The Hazardous Materials Transportation Uniform Safety Act of 1990
(HMTUSA) requires RSPA to: (1) develop and implement a reimbursable
emergency preparedness grant program; (2) monitor public sector
emergency response training and planning and provide technical
assistance to states, political subdivisions and Indian tribes; and (3)
develop and update periodically a mandatory training curriculum for
emergency responders.
The bill includes $200,000, the same amount requested for fiscal year
1998, for activities related to emergency response training curriculum
development and updates, as authorized by section 117(A)(i)(3)(B) of
HMTUSA.
OFFICE OF INSPECTOR GENERAL
Appropriation, fiscal year 1997 \1\$37,900,000
Budget estimate, fiscal year 1998 40,889,000
Recommended in the bill 42,000,000
Bill compared with:
Appropriation, fiscal year 1997 +4,100,000
Budget estimate, fiscal year 1998 +1,111,000
\1\Excludes $94,086 in TASC reductions and $1,000 in reductions for bonuses and awards.
The Inspector General's office was established in 1978 to provide an
objective and independent organization that would be more effective in:
(1) preventing and detecting fraud, waste, and abuse in departmental
programs and operations; and (2) providing a means of keeping the
Secretary of Transportation and the Congress fully and currently
informed of problems and deficiencies in the administration of such
programs and operations. According to the authorizing legislation, the
Inspector General (IG) is to report dually to the Secretary of
Transportation and to the Congress.
The Committee recommendation provides $42,000,000 for activities of
the Office of Inspector General, an increase of $1,111,000 (2.7 percent)
above the administration's request and an increase of $1,652,000 (4.4
percent) above the level for comparable activities during fiscal year
1997. Rental payments to the General Services Administration have been
included in this appropriation beginning in fiscal year 1998. The
recommendation includes $2,448,000 for these expenses, which were
budgeted in the office of the secretary through fiscal year 1997. The
bill specifies that none of the funds may be utilized for contract
audits, a provision carried in previous years.
Audits of Amtrak. --Existing law allows the DOT Inspector General to
conduct audits to protect the federal investment in the National
Railroad Passenger Corporation (Amtrak), even though the corporation has
its own Inspector General. Given the resources and experience of the
office of inspector general relative to Amtrak's IG office, the amount
of federal assistance and the magnitude of the issues surrounding
Amtrak, the Committee encourages the DOT Inspector General to initiative
reviews of Amtrak during fiscal year 1998 which are designed to maximize
the effectiveness and efficiency of the Federal Government's ongoing
investment in the railroad.
Audit reports.-- The Committee requests the Inspector General to
continue forwarding copies of all audit reports to the Committee
immediately after they are issued, and to continue to make the Committee
aware immediately of any review that recommends cancellation or
modifications to any major acquisition project or grant, or which
recommends significant budgetary savings.
SURFACE TRANSPORTATION BOARD
SALARIES AND EXPENSES
Appropriation, fiscal year 1997\1\ $12,344,000
Budget estimate, fiscal year 1998\2\ (14,300,000)
Recommended in the bill 15,853,000
Bill compared with:
Appropriation, fiscal year 1997 +3,509,000
Budget estimate, fiscal year 1998 +1,553,000
\1\Does not reflect reduction of $100,000 in awards and bonuses. Also, it excludes $3,000,000 in
user fees.
\2\Represents $14,300,000 in user fees, which would offset the appropriation as collected
throughout the fiscal year.
The Surface Transportation Board was created on January 1, 1996 by
P.L. 104 88, the Interstate Commerce Commission (ICC) Termination Act of
1995. Consistent with the continued trend toward less regulation of the
surface transportation industry, the Act abolished the ICC; eliminated
certain functions that had previously been implemented by the ICC;
transferred core rail and certain other provisions to the Board and
certain other motor carrier functions to the Federal Highway
Administration. The Board is specifically responsible for regulation of
the rail and pipeline industries and certain non-licensing regulations
of motor carriers and water carriers. The new law empowers the Board
through its exemption authority to promote deregulation administratively
on a case-by-case basis and continues intact the important rail reforms
of the Staggers Rail Act of 1980, which have helped substantially
improve rail service and the economic status of the railroad industry.
The Committee recommends a total appropriation of $15,853,000, the
same amount requested by the Board.
Salaries and expenses.-- The Committee has provided $15,853,000 for
salaries and expenses of the Surface Transportation Board, including
an estimated $2,000,000 in user fees, which will offset the
appropriated funding. At this level, the Board will be able to
accommodate 135 full-time equivalent positions.
The Committee believes that the administration's budget request
funding was unduly harsh because it sought to fully fund the agency
through user fees and reduced the Board's request by $1,553,000 in a
year that the Board plans to begin reviewing a sizable class I railroad
merger. According to the Board, if they were funded at the
administration's budget request, it would require a reduction of 24
full-time equivalent positions. Because the Board is already under
severe staffing constraints, any attempt to further reduce staff would
have a negative effect on its ability to reduce its case backlog and
comply with existing statutory time frames on new cases. This impact
would be felt in the processing of the CSX/Norfolk Southern/Conrail
merger, as well as on other pending matters, because fewer staff means
that fewer cases can be handled simultaneously. The ultimate effect of
funding the Board as the budget requested would be parties waiting
significantly longer for a resolution of their cases, which is
unacceptable to this Committee.
User fees. --The Committee disagrees with the administration's
budget request to fund the entire operation of the Surface
Transportation Board, or $14,300,000, from the collection of user fees.
Current statutory authority, under the Independent Offices
Appropriations Act (31 U.S.C. 9701), grants the Board authority to
collect user fees based on filings made at the Board by interested
parties; however, not to the level provided in the budget estimate.
Legislative changes to the Board's authorizing statute to mandate an
industry user fee program of $14,300,000 would require Congress to enact
such authority prior to October 1, 1997. Even if Congress approves
legislation that would authorize the Board to recover the full costs of
administering its programs, the Board would have to undertake necessary
rulemakings to determine the appropriate level of these assessments.
These rulemakings could not be completed in a timely manner to ensure
adequate funding for the Board in fiscal year 1998. In addition, it is
not clear that this magnitude of user fees would meet existing criteria
requiring the agency to show a direct relationship between the fees
assessed and the benefit received from the service.
Last year, the Board updated its assessment of user fees. At that
time, the Board anticipated collecting approximately $3,000,000 in
fiscal year 1997, which Congress included in its calculation of the
Board's needs because these user fees supplement the direct
appropriation provided for that year. However, as the fiscal year
progressed, the Board realized that it had overestimated its ability to
collect fees. Although the Board believes that it will be able to
collect $3,000,000 in user fees in fiscal year 1997, approximately 60
percent of the collection will come from a class I merger application.
Since the Board does not expect another class I merger in fiscal year
1998, it does not believe that it can collect a similar sum. The bill
assumes $2,000,000 in user fees will be collected to offset the direct
appropriation provided in fiscal year 1998. Language is included in the
bill allowing the fees to be credited to the appropriation as offsetting
collections, and reducing the general fund appropriation on a dollar for
dollar basis as the fees are received and credited.
The Committee has retained the bill language which provides that any
fees received in excess shall remain available until expended, but shall
not be available for obligation until October 1, 1998.
Union Pacific/Southern Pacific merger. --The Committee is aware that
the Board is engaged in an ongoing environmental mitigation study for
Wichita, Kansas in connection with the Board's approval of the Union
Pacific/Southern Pacific merger in STB Finance Docket No. 32760. The
Board shall base its final environmental mitigation conditions for
Wichita on verifiable and appropriate assumptions. The Committee is
aware that the Board has continuing jurisdiction over all of its
proceedings and related conditions, and expects the Board to exercise
that jurisdiction by reexamining the final environmental mitigation
measures, if there is any material change in the bases of the
assumptions on which the final mitigation for Wichita is imposed. After
the Board has approved the final environmental measures for Wichita, if
the Union Pacific Corporation or any of its divisions or subsidiaries
materially changes or is unable to achieve the assumptions on which the
Board based its final environmental mitigation measures, then the Board
should reopen Finance Docket 32760 if requested by interested parties,
and prescribe additional mitigation properly reflecting these changes if
shown to be appropriate.
TITLE II
RELATED AGENCIES
ARCHITECTURAL AND TRANSPORTATION BARRIERS COMPLIANCE
BOARD
SALARIES AND EXPENSES
Appropriation, fiscal year 1997 $3,540,000
Budget estimate, fiscal year 1998 3,640,000
Recommended in the bill 3,640,000
xlBill compared with:
Appropriation, fiscal year 1997 +100,000
Budget estimate, fiscal year 1998
The Committee recommends $3,640,000 for the operations of the
Architectural and Transportation Barriers Compliance Board, an increase
of $100,000 above the fiscal year 1997 levels, and the same as the
budget estimate.
The activities of the Board include: ensuring compliance with the
standards prescribed by the Architectural Barriers Act; ensuring that
public conveyances, including rolling stock, are readily accessible to
and usable by physically handicapped persons; investigating and
examining alternative approaches to the elimination of architectural,
transportation, communication and attitudinal barriers; determining what
measures are being taken to eliminate these barriers; developing minimum
guidelines and requirements for accessibility standards; and providing
technical assistance to all programs affected by Title V of the
Rehabilitation Act.
NATIONAL TRANSPORTATION SAFETY BOARD
SALARIES AND EXPENSES
Appropriation, fiscal year 1997\1\ $42,407,000
Budget estimate, fiscal year 1998\2\ 40,000,000
Recommended in the bill 46,000,000
xlBill compared with:
Appropriation, fiscal year 1997 +3,593,000
Budget estimate, fiscal year 1998 +6,000,000
\1\Excludes $6,000,000 in emergency appropriations.
\2\The President's budget request also included an appropriation of $6,000,000 in user fees.
Under the Independent Safety Board Act, the National Transportation
Safety Board (NTSB) is responsible for improving transportation safety
by investigating accidents, conducting special studies, developing
recommendations to prevent accidents, evaluating the effectiveness of
the transportation safety programs of other agencies, and reviewing
appeals of adverse actions involving airman and seaman certificates and
licenses, and civil penalties issued by the Department of
Transportation.
The bill includes an appropriation of $46,000,000 for salaries and
expenses, which is $6,000,000 more than requested in the President's
budget, and does not assume the collection of $6,000,000 in user fees.
The following table summarizes the fiscal year 1997 program level,
the President's fiscal year 1998 request, and the Committee's
recommendations:
Program 1997 enacted 1998 estimate
Recommended in the bill
Staff years Budget authority\1\ Staff years Budget authority\2\ Staff
years Budget authority
Policy and direction 45 $5,735,000 47 $6,259,000 47
$6,259,000
Aviation safety 129 20,933,000 132 16,006,000 132
16,006,000
Surface transportation 99 11,626,000 102 12,554,000
102 12,554,000
Research and engineering 58 6,121,000 61 6,998,000
61 6,998,000
Administration 29 2,728,000 29 2,859,000 29
2,859,000
Administrative law judges 10 1,264,000 10 1,324,000
10 1,324,000
------------- --------------------- ------------- --------------------- -------------
------------------
Total 370 48,407,000 381 46,000,000 381
46,000,000
\1\Includes $6,000,000 emergency appropriation.
\2\Includes $6,000,000 in user fees.
The Committee expects to be advised if the Board proposes to deviate
in any way from the staff year allocations or by more than five percent
from the funding allocations listed above.
Staff hiring.-- The Committee is deeply troubled by the length of
time it takes the Safety Board to bring on critical new staff. In fiscal
year 1997, the Congress provided funding for the Safety Board to
increase its technical and investigative staff by 20 positions. It has
taken the Safety Board over six months to begin bringing new personnel
on board, and the Board does not expect to have these positions
completely filled until near the end of fiscal year 1997. Although the
Committee has provided sufficient funding for the Safety Board to hire
nine additional technical and investigative staff and two family
assistance personnel, there will be deep disappointment if the delays in
hiring continue. The Committee expects these personnel to be hired early
in fiscal year 1998.
User fees.-- The Committee has denied the request to collect
$6,000,000 in user fees. This request was based on the assumption that
legislation authorizing a commercial aviation accident investigation fee
would be enacted and available for expenditure. The Committee does not
have the jurisdiction to authorize the collection of this fee and is
opposed to such a fee because it makes certain transportation sectors
(i.e. the aviation industry) responsible for paying accident
investigation costs while other sectors (i.e. rail, highway, marine,
etc.) would not be responsible for these costs. In addition, such fees
do not appear to meet existing definitions of user fees, and might, upon
further analysis, be defined as new taxes.
EMERGENCY FUND
Appropriation, fiscal year 1997\1\ $1,000,000
Budget estimate, fiscal year 1998 1,000,000
Recommended in the bill 1,000,000
xlBill compared with:
Appropriation, fiscal year 1997
Budget estimate, fiscal year 1998
\1\Contained in the Omnibus Consolidated Appropriations Act of 1997 as an emergency
appropriation.
The bill includes an appropriation of $1,000,000 for the emergency
fund. Under Public Law 97 257 (Supplemental Appropriations Act, 1982),
Congress provided a $1,000,000 emergency fund to be used for accident
investigation expenses when investigations would otherwise have been
hampered by lack of funding. Over the past 15 years, the emergency fund
has been used five times--in 1985 to assist in recovery of portions of
an Air India wreckage; in 1989 to locate and recover the cargo door
separated from a United Airlines flight; in 1995 to conduct wake vortex
testing following a US Air accident in Aliquippa, Pennsylvania; in 1996
to locate the flight data and cockpit voice recorder of a Boeing 757
that crashed into the Atlantic Ocean near the Dominican Republic; and in
1996 to recover wreckage from the TWA 800 accident site.
When added to the current unobligated balance, the Committee's
recommendation doubles the size of the emergency fund to $2,000,000. At
this level, sufficient funds should be available for unanticipated or
unusually expensive accident investigations. The Committee directs that
this fund should continue to be used only for accident investigation
expenses when investigations would otherwise be hampered by a lack of
funding. New activities, such as providing assistance to families of
victims of transportation disasters, are not eligible for these funds.
The Committee has provided ample funding for family assistance
activities under the Safety Board's salaries and expenses account.
TITLE III
GENERAL PROVISIONS
(including transfers of funds)
The Committee concurs with the general provisions that apply to the
Department of Transportation and related agencies as proposed in the
budget with the following changes:
The Committee has not approved the requested deletion of the
following sections, all of which were contained in the fiscal year 1997
Department of Transportation and Related Agencies Appropriations Act
(section numbers are different):
Section 305 includes a provision that prohibits political and
Presidential personnel to be assigned on temporary detail outside the
Department of Transportation.
Section 315 prohibits the use of funds to award multi-year contracts
for production end items that include certain specified provisions.
Section 318 limits funds to compensate in excess of 350 staff years
under the federally-funded research and development contract between the
Federal Aviation Administration and the Center for Advanced Aviation
Systems Development. The fiscal year 1997 Act limited funds to
compensate in excess of 335 staff years.
Section 319 reduces funding for activities of the Transportation
administrative service center of the Department of Transportation and
limits obligation authority of the center to $96,800,000.
Section 321 prohibits funds to be used to prepare, propose, or
promulgate any regulation pursuant to title V of the Motor Vehicle
Information and Cost Savings Act prescribing corporate average fuel
economy standards for automobiles as defined in such title, in any model
year that differs from standards promulgated for such automobiles prior
to enactment of this section.
Section 322 prohibits the use of funds to be used for planning,
engineering, design or construction of a sixth runway at the Denver
International Airport unless the Federal Aviation Administrator
determines that safety conditions warrant obligation of such funds. The
bill includes a new provision that allows funds to be used for planning
or analysis of airport noise issues related to a sixth runway.
Section 324 prohibits the use of funds for any type of training which
(a) does not meet needs for knowledge, skills, and abilities bearing
directly on the performance of official duties; (b) could be highly
stressful or emotional to the students; (c) does not provide prior
notification of content and methods to be used during the training; (d)
contains any religious concepts or ideas; (e) attempts to modify a
person's values or lifestyle; or (f) is for AIDS awareness training,
except for raising awareness of medical ramifications of AIDS and
workplace rights.
Section 325 prohibits the use of funds in this Act for activities
designed to influence Congress on legislation or appropriations except
through proper, official channels.
Section 326 requires the Federal Transit Administration's oversight
of the Washington Metropolitan Area Transit Authority (WMATA) to be
based in Washington, D.C..
Section 329 requires compliance with the Buy American Act.
Section 332 prohibits the use of funds for the improvement of Miller
Highway in New York City, New York.
The Committee has included the following general provisions as
requested with modifications:
Section 310 would be continued with modifications. The Committee
continues to limit first quarter obligations to 12 percent.
Section 311 exempts programs under 49 U.S.C. 5338 previously made
available for obligation from the limitation on obligations for
discretionary grants of the Federal Transit Administration.
Section 316 allows funds for discretionary grants of the Federal
Transit Administration for specific projects, except for fixed guideway
modernization projects, not obligated by September 30, 2000, to be used
for other projects under 49 U.S.C. 5309.
Section 323 allows funds received by the Bureau of Transportation
Statistics from the sale of data products to be used for necessary
expenses incurred pursuant to the provisions of section 6006 of the
Intermodal Surface Transportation Efficiency Act of 1991.
The Committee has not included provisions proposed in the budget:
(1) relating to the transfer of funds to cover rental payment
shortfalls; (2) prohibiting funds used by the National Transportation
Safety Board to study age of commercial aircraft pilots; (3) allowing
the Administrator of the Federal Aviation Administration to establish a
aviation security and safety consortia; (4) allowing additional transfer
authority not to exceed 5 percent between discretionary appropriations;
(5) authorizing the collection of fees resulting from the siting of
mobile service antennas; and (6) authorizing new railroad safety fees.
TITLE IV
AMTRAK ROUTE CLOSURE AND REALIGNMENT
The Committee recommends a new title that establishes an independent
commission to provide an economic assessment of the entire Amtrak
system. The Commission would make recommendations on route closings and
realignments needed for the survival of a passenger rail system in the
United States. The Commission's recommendations would then be considered
by Congress on an expedited basis.
HOUSE OF REPRESENTATIVES REPORT REQUIREMENTS
The following items are included in accordance with various
requirements of the Rules of the House of Representatives:
CONSTITUTIONAL AUTHORITY
Clause 2(1)(4) of rule XI of the Rules of the House of
Representatives states:
Each report of a committee on a bill or joint
resolution of a public character, shall include a statement
citing the specific powers granted to the Congress in the
Constitution to enact the law proposed by the bill or joint
resolution.
The Committee on Appropriations bases it's authority to report this
legislation from clause 7 of section 9 of Article I of the Constitution
of the United States of America which states:
No money shall be drawn from the Treasury but in
consequence of Appropriations made by law. * * *''
Appropriations contained in this Act are made pursuant to this
specific power granted by the Constitution.
RESCISSIONS
Pursuant to clause 1(b) of rule X of the House of Representatives,
the following table is submitted describing the rescissions recommended
in the accompanying bill:
Office of the Secretary, Payments to air carriers (airport and airway trust fund)
-$38,600,000
TRANSFERS OF FUNDS
Pursuant to clause 1(b) of rule X of the House of Representatives,
the following statement is submitted describing the transfers of funds
provided in the accompanying bill.
The Committee recommends the following transfers:
Under Coast Guard, Operating expenses: The Director, Office of
National Drug Control Policy may transfer, at his discretion, up to
$34,300,000 of funds provided herein for Coast Guard drug interdiction
activities to any other entity of the Federal Government for drug
interdiction activities.
Under Coast Guard, Reserve training: No more than $20,000,000 of
funds made available under this heading may be transferred to Coast
Guard ``Operating expenses'' or otherwise made available to reimburse
the Coast Guard for financial support of the Coast Guard Reserve.
Under section 317 of the general provisions: Notwithstanding any
other provision of law, any funds appropriated before October 1, 1993,
under chapter 53 of title 49 U.S.C., that remain available for
expenditure may be transferred to and administered under the most recent
appropriation heading for any such section.
CHANGES IN EXISTING LAW
Pursuant to clause 3 of rule XXI of the House of Representatives, the
following statements are submitted describing the effects of provisions
in the accompanying bill which might be construed, under some
circumstances, as directly or indirectly changing the application of
existing law.
The bill provides that appropriations shall remain available for more
than one year for a number of programs for which the basic authorizing
legislation does not explicitly authorize such extended availability.
The bill includes limitations on official entertainment, reception
and representation expenses for the Secretary of Transportation and the
National Transportation Safety Board. Similar provisions have appeared
in many previous appropriations Acts.
The bill provides for transfer of funds which might be construed as
changing the application of existing law. Similar provisions have
appeared in previous appropriations Acts. These items are discussed
under the appropriate heading in the report.
The bill includes a number of limitations on the purchase of
automobiles, motorcycles, or office furnishings. Similar limitations
have appeared in many previous appropriations Acts.
Several limitations on obligations are contained in Title I. Although
these provisions are strict limitations, they do have the effect of
reducing obligations below the levels that otherwise would be available.
Language is included in several instances permitting certain funds to
be credited to the appropriations recommended.
Language is included that does not permit the Department of
Transportation to maintain duplicate physical copies of airline tariffs.
Language is included under Office of the Secretary, ``Salaries and
expenses,'' which would allow crediting the account with up to
$1,000,000 in user fees.
Language is included that limits operating costs and capital outlays
of the Transportation Administrative Service Center of the Department of
Transportation and limits special assessments or reimbursable agreements
levied against any program, project or activity funded in this Act to
only those assessments or reimbursable agreements that are presented to
and approved by the House and Senate Appropriations Committees.
Language is included under the Coast Guard, ``Operating expenses''
which specifies that the number of aircraft on hand at any one time
cannot exceed two hundred and twelve.
Language is included under the Coast Guard, ``Operating expenses''
which specifies that none of the funds appropriated shall be available
for pay or administrative expenses in connection with shipping
commissioners.
Language is included under the Coast Guard, ``Operating expenses''
that limits the use of funds for yacht documentation to the amount of
fees collected from yacht owners.
Language is included under the Coast Guard, ``Operating expenses''
that specifies that the Commandant shall reduce both military and
civilian employment levels to comply with Executive Order No. 12839.
Language is included under the Coast Guard, ``Operating expenses''
that stipulates certain criteria to be met (as outlined in the bill) by
the Director of the Office of National Drug Control Policy on funds
provided for drug interdiction.
Language is included under the Coast Guard, ``Operating expenses''
that provides the Director of the Office of National Drug Control Policy
flexibility to transfer drug interdiction funds to other federal drug
interdiction efforts.
Language is included under the Coast Guard, ``Acquisition,
construction, and improvements'' that credits funds received from the
sale of the HU 25 aircraft to this account to purchase new aircraft.
Language is included under the Coast Guard, ``Acquisition,
construction, and improvements'' that credits funds from the disposal of
surplus property by sale or lease and allows not more than $9,000,000 to
be credited as offsetting collections to this appropriation.
Language is included under Coast Guard, ``Reserve training'' that
limits funds available for transfer to ``Operating expenses'' to no more
than $20,000,000 to reimburse the Coast Guard for financial support of
the Coast Guard Reserve.
Language is included under the Coast Guard, ``Research, development,
test, and evaluation'' that credits funds received from state and local
governments and other entities for expenses incurred for research,
development, testing, and evaluation.
Language is included under the FAA, ``Operations'' permitting the use
of funds to enter into a grant agreement with a nonprofit
standard-setting organization to develop aviation safety standards.
Language is included under the Federal Aviation Administration,
``Operations'' that prohibits the use of funds for new applicants of the
second career training program.
Language is included under the FAA, ``Operations'' that prohibits the
use of funds for premium pay unless an employee actually performed work
during the time corresponding to the premium pay.
Language is included under the FAA, ``Facilities and equipment'' that
allows certain funds received for expenses incurred in the establishment
and modernization of air navigation facilities to be credited to the
account.
Language is included under the FAA, ``Research, engineering, and
development'' that allows certain funds received for expenses incurred
in research, engineering and development to be credited to the account.
Language is included prohibiting funds for aircraft purchase loan
guarantees.
Language is included prohibiting funds to institute new activities
under the administrative services franchise fund.
The bill includes a limitation on general operating expenses of the
Federal Highway Administration.
The bill includes language prohibiting obligations for right-of-way
acquisition.
Language is included under National Highway Traffic Safety
Administration, ``Operations and research'' prohibiting the planning or
implementation of any rulemaking on labeling passenger car tires for low
rolling resistance.
Language is included under National Highway Traffic Safety
Administration, ``Highway traffic safety grants'' limiting obligations
for certain safety grant programs.
Language is included under Federal Railroad Administration, ``Office
of the administrator'' that limits rental payments to the Department of
Transportation's headquarters building.
Language is included under Federal Railroad Administration, ``Office
of the administrator'' authorizing the Secretary to receive payments
from the Union Station Redevelopment Corporation, credit them to the
appropriation charged with the first deed of trust, and make payments on
the first deed of trust.
Language is included under Federal Railroad Administration,
``Railroad safety'' that allows reimbursement of states' employees
travel and per diem costs when directly supporting federal railroad
safety programs.
Language is included authorizing the Secretary to issue fund
anticipation notes necessary to pay obligations under sections 511
through 513 of the Railroad Revitalization and Regulatory Reform Act.
Language is included under Federal Railroad Administration, ``Rhode
Island rail development'' that specifies that the federal contribution
shall be matched on a dollar-for-dollar basis and that the Providence
and Worcester railroad shall reimburse Amtrak and/or the Federal
Railroad Administration up to the first $23,000,000 in legal damages if
damages occur resulting from provision of vertical clearances in excess
of those required for present freight operations.
Language is included under Federal Railroad Administration, ``Grants
to the National Railroad Passenger Corporation'' that limits the
availaility of capital improvement funds until July 1, 1998, and
prohibits the transfer of capital expenses to pay for debt service
unless authorized by law.
Language is included under Federal Railroad Administration, ``Grants
to the National Railroad Passenger Corporation'' that prohibits Amtrak
from committing to or incurring obligations using federal funds for
coverage of capital expenses in excess of appropriated funds for capital
improvements.
Language is included under Federal Railroad Administration, ``Grants
to the National Railroad Passenger Corporation'' that restricts
mandatory railroad retirement payments.
Language is included under Federal Railroad Administration, ``Grants
to the National Railroad Passenger Corporation'' that requires the
Administrator of the Federal Railroad Administration to submit quarterly
reports on Amtrak's financial status, future business forecasts as well
as recommendations for reducing Amtrak's operating losses in the
near-term and federal financial support in the long-term.
Language is included under Federal Railroad Administration, ``Grants
to the National Railroad Passenger Corporation,'' regarding the use of
funds for lease or purchase of passenger motor vehicles.
Language is included under Federal Transit Administration,
``Administrative expenses'' that limits the amount of funds that may be
withheld from transit capital grants to conduct project management
oversight activities.
Language is included under Federal Transit Administration, ``Formula
grants'' limiting mass transit operating assistance.
Language is included under Federal Transit Administration,
``Discretionary grants'' specifying the distribution of funds (subject
to authorization) for new fixed guideway systems in this Act.
Language is included under Research and Special Programs
Administration, ``Research and special programs,'' which would allow up
to $1,200,000 in fees collected under 49 U.S.C. 5108(g) to be deposited
in the general fund of the Treasury as offsetting receipts.
Language is included under Research and Special Programs
Administration, ``Research and special programs,'' that credits certain
funds received for expenses incurred for training and other activities.
Language is included under Research and Special Programs
Administration, ``Pipeline safety'' that allows up to $1,000,000 for
one-call notification systems to be funded from amounts previously
collected and held in a reserve account.
Language is included under Research and Special Programs
Administration, ``Emergency preparedness grants'' specifying the
Secretary of Transportation or his designee may obligate funds provided
under this head.
Language is included under Office of Inspector General, ``Salaries
and expenses'' prohibiting funds for the conduct of contract audits.
Language is included under Surface Transportation Board, ``Salaries
and expenses'' allowing the collection of $2,000,000 in fees and
providing that fees collected in excess of $2,000,000 shall not be
available until October 1, 1998.
Language is included under ``Architectural and Transportation
Barriers Compliance Board, ``Salaries and expenses'' that provides that
funds received for publications and training may be credited to the
appropriation.
Language is included rescinding contract authority previously provided.
Section 301 through 332 of the bill contains a number of general
provisions that place limitations or funding prohibitions on the use of
funds in the bill and which might, under some circumstances, be
construed as changing the application of existing law.
Sections 301 through 332 of the bill contain a number of general
provisions that allow for the redistribution of previously appropriated
funds.
The bill includes language regarding the administration of the
federal-aid highway obligation limitation.
Section 314 allows airports to transfer to the Federal Aviation
Administration instrument landing systems which conform with FAA
specifications in cases where the purchase of such equipment was
assisted by a federal airport aid grant.
Section 319 reduced funding for activities of the transportation
administrative service center of the Department of Transportation and
limits obligation authority of the center to $96,800,000.
Section 321 prohibits funds to be used to prepare, propose, or
promulgate any rule under title V of the Motor Vehicle Information and
Cost Savings Act prescribing corporate average fuel economy standards
for automobiles.
Section 322 prohibits funds for planning, engineering, design or
construction of a sixth runway at the Denver International Airport
unless the Administrator of the Federal Aviation Administration
determines, in writing, that safety conditions warrant obligation of
such funds; and permits funds for planning or analysis of noise issues
related to the sixth runway.
Section 323 allows funds received by the Bureau of Transportation
Statistics from the sale of data products to be credited to the
Federal-aid highways account for the purpose of reimbursing the Bureau
for such expenses.
Section 324 prohibits funds for any type of training which: (a) does
not meet needs for knowledge, skills, and abilities bearing directly on
the performance of official duties; (b) could be highly stressful or
emotional to the students; (c) does not provide prior notification of
content and methods to be used during the training; (d) contains any
religious concepts or ideas; (e) attempts to modify a person's values or
lifestyle; or (f) is for AIDS awareness training, except for raising
awareness of medical ramifications of AIDS and workplace rights.
Section 326 requires Federal Transit Administration oversight of the
Washington Metropolitan Area Transit Authority to be based in the
Washington, D.C. metropolitan area.
Section 327 allows the Secretary of Transportation to exempt any
class of vehicle deemed appropriate under 49 CFR part 580.6.
The bill also includes a new title IV, ``Amtrak Route Closure and
Realignment''.
APPROPRIATIONS NOT AUTHORIZED BY LAW
Pursuant to clause 3 of rule XXI of the House of Representatives, the
following lists the appropriations in the accompanying bill which are
not authorized by law:
United States Coast Guard
Federal Aviation Administration
Federal Highway Administration
National Highway Traffic Safety Administration
Federal Railroad Administration
Federal Transit Administration
Research and Special Programs Administration
Bureau of Transportation Statistics
Amtrak Route Closure and Realignment Commission
COMPARISON WITH BUDGET RESOLUTION
Section 308(a)(1)(A) of the Congressional Budget and Impoundment
Control Act of 1974 (Public Law 93-344), as amended, requires that the
report accompanying a bill providing new budget authority contain a
statement detailing how the new authority compares with the reports
submitted under section 602(b) of the Act for the most recently agreed
to concurrent resolution on the budget for the fiscal year. This
information follows:
[In millions of dollars]
602(b) allocation This bill
Budget authority Outlays Budget authority Outlays
Discretionary $12,511 $37,134 $12,480 $37,134
Mandatory 698 665 646 634
The bill provides new spending authority as defined under section
401(c)(2) of the Congressional Budget and Impoundment Control Act of
1974 (Public Law 93-344), as amended, as follows:
Under Federal Railroad Administration, ``Railroad rehabilitation and
improvement financing funds'', authority is provided to issue notes
necessary to pay obligations under section 511 through 513 of the
Railroad Revitalization and Regulatory Reform Act. This provision has
been included at the request of the administration because the
government's financial obligations under this program are difficult to
determine in advance and may require immediate expenditures of funds.
The Committee has received no indication to date that this authority
will be used in fiscal year 1998. Similar provisions have been included
in many previous appropriations Acts.
FIVE-YEAR OUTLAY PROJECTIONS
In accordance with section 308(a)(1)(C) of the Congressional Budget
Act of 1974 (Public Law 93-344), as amended, the following information
was provided to the Committee by the Congressional Budget Office:
Budget authority $13,126,000,000
xlOutlays:
1998 13,415,000,000
1999 15,306,000,000
2000 5,309,000,000
2001 2,315,000,000
2002 1,576,000,000
FINANCIAL ASSISTANCE TO STATE AND LOCAL GOVERNMENTS
In accordance with section 308(a)(1)(D) of Public Law 93-344, the
Congressional Budget Office has provided the following estimates of new
budget authority and outlays provided by the accompanying bill for
financial assistance to state and local governments:
Budget authority $540,000,000
Fiscal year 1998 outlays 4,491,000,000
Offset Folios 163 to 177 Insert here
ADDITIONAL VIEWS OF MARTIN OLAV SABO, DAVID R. OBEY, THOMAS M.
FOGLIETTA, ESTEBAN EDWARD TORRES, JOHN W. OLVER, AND ED PASTOR
The Fiscal Year 1998 Transportation Appropriations bill is generally
fair and accomplishes the difficult task of balancing the nation's
competing transportation needs. However, we have serious concerns about
the impact of the bill on the future of Amtrak, the passenger rail
system that is vital to the transportation and economic needs of
millions of train passengers and thousands of communities across the
nation.
Amtrak is at a critical crossroads. Earlier this year, we heard
candid and disturbing testimony about the railroad's financial
situation. Amtrak President Thomas Downs testified that without a
significant cash infusion, Amtrak could be bankrupt within a year.
Amtrak is already borrowing to meet payroll, and may soon reach its
commercial borrowing limits.
DEVASTATING CUT IN OPERATIONS
This bill provides a total of $793 million for Amtrak, but only $283
million will go for operations. This is the lowest level in 20 years and
represents a cut of $61 million below the Administration's request for
operations.
At issue in the bill's cut in the operating subsidy is the proper
calculation of Amtrak's liability for railroad retirement benefits.
These technical issues should be resolved. However, the fact remains
that a $61 million cut in Amtrak's operating funds would have an
immediate and devastating impact on the railroad.
A cut of this size could make Amtrak's cash problems
insurmountable--and a long-term fix irrelevant. In the near-term, it is
critical that Amtrak maintain sufficient cash reserves to meet its
existing obligations.
The bill also provides $510 million in capital funding for Amtrak,
including $250 million for the Northeast Corridor. This represents a
capital increase of more than $111 million over last year, which could
undoubtedly be used to make needed long-term improvements. However, we
question whether it helps Amtrak to provide significantly more money for
capital if the railroad becomes insolvent.
RIGOROUS REVIEW REQUIRED
Amtrak can remain solvent only by increasing revenues and reducing
costs, and a rigorous review and financial restructuring are required. A
number of proposals are currently under consideration in Congress to
restructure Amtrak and restore its long-term viability.
This bill contains a proposal to establish a commission to review
Amtrak's operations and route structure similar to the Base Realignment
and Closure commissions that reviewed our nation's military
installations. While we share Chairman Wolf's concerns about the need
for Amtrak restructuring, we do not agree that establishing this
commission is the best way to address Amtrak's financial problems.
COSTS OF FAILURE
Time is of the essence. If we do not take immediate steps to preserve
Amtrak, we risk losing an important transportation and economic resource
forever. That alone is reason enough to put this corporation back on the
right fiscal track. However, failure to do so would also cost 23,000
Americans their jobs and drop a massive financial liability into the
laps of U.S. taxpayers.
Under current law, the federal government would be responsible for an
estimated $6 billion in costs associated with closing Amtrak. Among
these liabilities are the costs of unemployment benefits, C 2 labor
protections, tax losses and other obligations, including $2.3 billion in
debt to public and private investors.
While the current financial situation is dark, there are some
positive signs for Amtrak. In the past two years, Amtrak has increased
ridership and revenues, cut costs and made important investments to
modernize its aging train fleet. Much work remains to be done to
revitalize Amtrak. Clearly, however, the costs of failure--in train
service, jobs and federal investment--are far too high to accept.
We are encouraged that Chairman Wolf has pledged to help put Amtrak
back on the right track, and we look forward to working together to
ensure its bright future.
Martin O. Sabo.
Ed Pastor.
Esteban E. Torres.
Thomas M. Foglietta.
John W. Olver.
David Obey.
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