[House Report 105-188]
[From the U.S. Government Publishing Office]



105th 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

                              R E P O R T

                             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 thanthe 
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 andaccompanying 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
Bill 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:

                                                                        
                                                                        
                                                                        
Reductions 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
Bill 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
Bill 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 
1998requirements 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)
Bill 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        Limitation on 
                                        authorization      obligations  
                                                                        
Appropriation, fiscal year 1997.....     ($25,900,000)     ($25,900,000)
Budget estimate, fiscal year 1998...        (--------)        (--------)
Recommended in the bill.............        (--------)        (--------)
Bill 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
Bill 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...............................  ................
Bill 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

                                                                        
                                                          Limitation on 
                                        Appropriation     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)
Bill 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
Bill 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:

----------------------------------------------------------------------------------------------------------------
                                                                     Fiscal year--                              
                        Program                         --------------------------------------     Committee    
                                                            1997 enacted      1998 estimate       recommended   
----------------------------------------------------------------------------------------------------------------
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 $2,619,725,0
                                                                      00
Budget estimate, fiscal year 1998....................      2,740,000,000
Recommended in the bill..............................  \3\ 2,708,000,000
Bill 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]               
------------------------------------------------------------------------
                                        1997        1998         1998   
   Program project and activity     enacted \1\   estimate   recommended
------------------------------------------------------------------------
I. Personnel Resources............   $1,670,718  $1,723,261   $1,700,176
                                   -------------------------------------
    A. Military pay & allowances..    1,235,325   1,266,565    1,266,565
    B. Civilian pay & benefits....      180,402     189,622      189,622
    C. Military health care.......      117,660     119,461      119,461
    D. Perm. Change of station....       57,862      60,247       60,247
    E. Training & education \2\...       60,966      68,962       67,317
    F. Recruiting.................        6,767       7,313        6,313
    G. FECA/UCX...................       11,736      11,091       11,091
    H. Staffing adjustment........  ...........  ..........      -19,600
    I. Public affairs staffing....  ...........  ..........         -840
                                   =====================================
II. Operating Funds and Unit Level                                      
 Maintenance......................      571,672     620,749      612,449
                                   -------------------------------------
    A. Atlantic area command......      112,446     110,463      102,163
    B. Pacific area command.......      107,673     108,573      108,573
    C. District commands:.........                                      
        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
    D. Headquarters offices.......      113,140     154,537      154,537
    E. Headquarters-managed units.       44,635      45,414       45,414
    F. Other activities \3\.......        8,144       8,038        8,038
                                   =====================================
III. Depot-Level Maintenance......      375,305     395,990      395,990
                                   -------------------------------------
    A. Aircraft maintenance.......      144,276     154,659      154,659
    B. Electronic maintenance.....       34,632      35,780       35,780
    C. Shore maintenance..........       96,170     104,411      104,411
    D. Vessel maintenance.........      100,227     101,140      101,140
                                   =====================================
IV. Account-wide Adjustments......  ...........  ..........         -615
                                   -------------------------------------
    A. User fee offset............  ...........  ..........         -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
Bill 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:


                                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 waterwayusers, 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
Bill 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
Bill 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
Bill 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
Bill 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
Bill 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
Bill 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:

----------------------------------------------------------------------------------------------------------------
                                                                              fiscal year--                     
                        Program                         --------------------------------------------------------
                                                            1997 enacted      1998 estimate     1998 recommended
----------------------------------------------------------------------------------------------------------------
Operations \1\.........................................     $4,900,000,000     $5,361,100,000     $5,300,000,000
    Direct appropriation...............................    (4,900,000,000)    (5,036,100,000)    (5,300,000,000)
    Appropriation of user fees.........................               (--)      (300,000,000)               (--)
    User fee offsetting collections....................        -75,000,000              - - -              - - -
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\ $4,900,000,0
                                                                      00
Budget estimate, fiscal year 1998.....................  \2\ 5,336,100,00
                                                                       0
Recommended in the bill...............................     5,300,000,000
Bill 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:

----------------------------------------------------------------------------------------------------------------
                                                                              Fiscal year--                     
                    Budget activity                     --------------------------------------------------------
                                                            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:
    HAZMAT program--air traffic.........................     -$6,000,000
    ATR office..........................................      -2,625,000
    Contract maintenance................................      -3,659,000
    Leased telecommunications...........................      -6,200,000
    Associate administrator for ATS--headquarters 
      staffing..........................................      -2,325,000
    Mid-America aviation resources consortium (MARC)....      +1,500,000
    Permanent change of station moves, air traffic......      -1,500,000
Civil Aviation Security:
    Federal air marshall program........................        -497,000
Administration:
    Executive staff--administration.....................      -1,852,000
    Business and information consultation...............      -1,800,000
Staff Offices:
    Staff offices.......................................      -1,825,000
    Office of policy--periodic fitness reviews..........        -180,000
Account-wide Adjustments:
    Travel reform.......................................      -5,900,000
    Time off awards.....................................      -2,875,000
    DOT library contribution............................        -120,000
    Interest on Sunday premium pay......................        -242,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total.............................................     -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.

----------------------------------------------------------------------------------------------------------------
                                                                               Fiscal year--                    
                              Measure                              ------------------------------------  Percent
                                                                          1997              1998         change 
----------------------------------------------------------------------------------------------------------------
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:

------------------------------------------------------------------------
                                     Budgeted   Recommended             
               Office                   FTE         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 afinding 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 screenerpersonnel, 
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:

                                                                                                                
----------------------------------------------------------------------------------------------------------------
                                                                             Fiscal year--                      
                                                                    -------------------------------   Committee 
                           FTE by Office                               1996      1997       1998     Recommended
                                                                      Actual   Estimate   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\ $1,790,000,00
                                                                       0
Budget estimate, fiscal year 1998....................      1,875,000,000
Recommended in the bill..............................      1,875,000,000
Bill 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:


                           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. TheCommittee 
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 heatingfor 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 capacityenhancement 
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 dateindicates 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 fundan 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 
activityfurther. 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
Bill 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:


    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 inFAA'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 shouldbe 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          Limitation on  
                                     authorization        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)
Bill 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)
Bill 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):                                                                             
    Salaries and expenses..............................       $176,127,000       $179,065,000       $179,065,000
    Travel.............................................          9,813,000          9,813,000          9,813,000
    Transportation.....................................            673,000            656,000            656,000
    Rent, communications, and utilities................         25,738,000         28,204,000         27,683,000
    Printing...........................................             92,000             89,000             89,000
    TASC...............................................         17,659,000         20,636,000         20,636,000
    Supplies...........................................          2,204,000          2,149,000          2,149,000
    Equipment..........................................          3,512,000          6,938,000          6,938,000
    Other..............................................         12,313,000         13,708,000         13,708,000
    Undistributed......................................  .................  .................         -3,400,000
Motor carrier safety administrative expenses...........         49,000,000         52,765,000         50,750,000
Contract programs/research and development:                                                                     
    Highway R & D......................................         67,124,000         73,903,000         58,165,000
    ITS................................................        120,358,000         54,000,000         94,600,000
    Technology deployment..............................         13,811,000         14,800,000         13,311,000
    National advanced driving simulator................  .................         12,250,000         12,250,000
    Local technical assistance.........................          2,827,000  .................  .................
    National Highway Institute.........................          4,269,000  .................  .................
    Minority business enterprises......................          9,378,000         10,000,000         10,000,000
    International transportation.......................            475,000            900,000            900,000
    Rehabilitation of TFHRC............................            500,000          2,000,000          2,000,000
    Technical assistance to Russia.....................            200,000            400,000  .................
    Transportation investment analysis.................            250,000  .................  .................
    Federal lands contamination site clean-up..........          2,466,000  .................  .................
    Cost allocation study..............................            300,000  .................  .................
    GPS support........................................  .................          2,100,000          1,000,000
    R and T technical support..........................  .................         10,000,000         10,000,000
                                                        --------------------------------------------------------
      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 securitysurcharge. 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 
InitiativesProgram 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:

------------------------------------------------------------------------
                                                  1998          1998    
            Program             1997 program    estimate     recommended
------------------------------------------------------------------------
Intelligent transportation                                              
 systems:                                                               
    Research and development..   $28,605,000   $33,000,000   $30,000,000
    AHS/advanced crash                                                  
     avoidance................    22,000,000  ............  ............
    Architecture and standards     5,000,000  ............  ............
    Operational tests.........    54,992,000  ............    50,000,000
    Evaluations...............     2,000,000     9,000,000     7,000,000
    Mainstreaming.............  ............     3,000,000  ............
    Program support...........     7,761,000     9,000,000     7,600,000
                               -----------------------------------------
      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 toolsin 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 
tothe 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...............................              (--)
Bill 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)
Bill 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]                                            
----------------------------------------------------------------------------------------------------------------
                                                                            Trust fund      Tax        Interest 
                  Fiscal year                       Income    Expenditure    balance      receipts      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)
Bill 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]                                           
----------------------------------------------------------------------------------------------------------------
                                                                           Fiscal year--                        
                                                 ---------------------------------------------------------------
                     Program                                                                           1998     
                                                    1996 actual    1997 enacted   1998 estimated    recommended 
----------------------------------------------------------------------------------------------------------------
Subject to limitation:                                                                                          
    National highway system.....................      $3,049,875      $3,220,775      $3,607,360      $3,695,352
    Surface transportation program..............       5,897,492       6,151,997       4,782,367       7,058,487
    Bridge program..............................       2,273,213       2,471,944       2,172,576       2,836,182
    Interstate completion.......................         401,588  ..............  ..............  ..............
    Interstate maintenance......................       2,149,843       2,607,038       3,607,390       2,991,182
    Interstate substitution.....................          96,347  ..............  ..............  ..............
    Interstate system reimbursement.............           5,961       1,789,319         805,221       2,052,973
    Congestion mitigation and air quality                                                                       
     improvement................................         939,147         920,605       1,046,787       1,056,255
    Donor state bonus...........................         557,584         460,750  ..............         528,641
    Intelligent transportation systems..........          95,859         113,000         196,000         113,000
    Federal lands highways......................         388,235         428,003         511,875         428,033
    Administration and research.................         612,077         695,950         620,376         665,676
    Applied research and technology.............          35,674          46,561  ..............          41,000
    Other programs..............................       1,177,921          27,689         820,048          33,250
                                                 ---------------------------------------------------------------
      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  ..............  ..............
    Minimum allocation..........................         744,445         718,306         761,323         641,323
    Federal-aid highways demos..................         800,063         927,496         649,248         649,247
    Bonus program (non-add).....................       (211,342)       (241,173)  ..............         269,656
                                                 ---------------------------------------------------------------
      Subtotal, exempt..........................       1,958,197       2,583,268       1,510,571       1,660,226
                                                 ===============================================================
    Grand total, Federal-aid highways...........      19,639,012      21,516,898      19,680,571      23,160,226
----------------------------------------------------------------------------------------------------------------

 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 andMexico 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...............................              (--)
Bill 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)
Bill 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...............................  ................
Bill 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...............................  ................
Bill 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:


                        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
Bill 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                   Recommended in
                                                                        \1\        1998 estimate     the bill   
----------------------------------------------------------------------------------------------------------------
Safety Performance..............................................    $12,226,000     $13,124,000     $13,124,000 
    (Positions).................................................            (95)            (95)            (95)
Safety Assurance................................................     18,966,000      19,923,000      19,703,000 
    (Positions).................................................           (103)           (103)           (103)
Highway safety..................................................     44,465,000      49,665,000      49,415,000 
    (Positions).................................................           (203)           (203)           (203)
Research and analysis...........................................     50,387,000      57,411,000      57,411,000 
    (Positions).................................................           (132)           (132)           (132)
Office of administrator.........................................      3,728,000       4,116,000       4,116,000 
    (Positions).................................................            (41)            (41)            (41)
General administration..........................................      8,568,000       9,419,000       9,419,000 
    (Positions).................................................            (90)            (90)            (90)
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:

                                                                        
                                                                        
                                                                        
Safety Assurance:                                                       
    Auto safety hotline...................................     -$150,000
    Odometer fraud........................................       -70,000
Highway Safety:                                                         
    Emergency medical services............................      -250,000
Accountwide 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
Bill 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:

------------------------------------------------------------------------
                                                  1998       Recommended
                                1997 enacted    estimate     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:

----------------------------------------------------------------------------------------------------------------
                                                                                                 Recommended in 
                          Program                           1997 enacted \1\    1998 estimate       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
Bill 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
Bill 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
Bill 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 
administrativefunctions. 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
Bill 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
Bill 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:

----------------------------------------------------------------------------------------------------------------
                                                                                                  Recommended in
                         Budget activity                           1997 enacted    1998 estimate     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
Bill 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
Bill 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 
thanexpected 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 thecontrary 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:

----------------------------------------------------------------------------------------------------------------
                                                                                                 Recommended in 
                        Program                             1997 enacted      1998 estimate         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
Bill 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 bewithheld 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    Limitation  (Trust 
                                   (General Fund)           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)
Bill 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 
RelatedAgencies 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)

                                                                        
                                                       Liquidation of   
                                  Limitation on           contract      
                                   obligations          authorization   
                                                                        
Appropriation, fiscal year                                              
 1997.......................  ....................  ....................
Budget estimate, fiscal year                                            
 1998.......................      ($3,498,500,000)      ($1,500,000,000)
Recommended in the bill.....  ....................  ....................
Bill 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
Bill 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
 Bill 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 
continuethe 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)
Bill 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)
Bill 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:                                                       
    Phoenix buses and bus facilities....................       9,000,000
    Tucson intermodal facility..........................       1,700,000
State of California:                                                    
    Folsom multimodal facility..........................       3,000,000
    Foothill transit bus maintenance facilities.........      11,000,000
    I-5 Consortium Cities Joint Powers Authority                        
     facilities.........................................      10,000,000
    Inglewood transit center project....................         500,000
    Lake Tahoe intermodal center........................       1,400,000
    Long Beach buses and bus facilities.................       3,000,000
    Marina/Ft. Ord buses and multimodal center..........       2,000,000
    Mendocino County buses..............................         800,000
    Riverside County buses and bus facility.............       4,700,000
    Sacramento bus facility.............................       1,500,000
    San Joaquin (Stockton) bus facilities...............       4,000,000
    San Ysidro border intermodal center.................         500,000
    Santa Clara buses...................................       5,000,000
    Santa Cruz metropolitan transit district buses and                  
     bus facility.......................................       2,000,000
    Solano County buses and bus-related equipment.......       2,400,000
    Sonoma County bus facilities........................       2,000,000
    Unitrans maintenance facility.......................       1,000,000
    Woodland transfer facility..........................         200,000
    Yolo County buses and paratransit vehicles..........       1,750,000
    Yosemite area regional transportation solution......         500,000
State of Colorado: buses and bus facilities-............       3,000,000
State of Connecticut:                                                   
    Bridgeport buses and bus facilities.................       4,000,000
    New Haven bus facility..............................       2,400,000
State of Delaware: New Castle bus facility..............       3,000,000
State of Florida:                                                       
    Daytona Beach intermodal facility...................       4,000,000
    Florida Citrus Connection buses.....................       3,000,000
    Lakeworth buses and bus facilities..................       1,000,000
    LYNX buses..........................................       3,000,000
    Metro-Dade County buses and bus facilities..........       8,000,000
    Orlando intermodal facility.........................       2,000,000
    Palm Beach County buses and bus facilities..........       2,000,000
    Tampa (Hillsborough County), HARTline buses and bus                 
     facilities.........................................       3,000,000
    Volusia County (VOTRAN) buses and bus facilities....       3,000,000
State of Georgia:                                                       
    Chatham bus facility................................       8,000,000
    MARTA buses.........................................       5,000,000
State of Hawaii: Honolulu buses and bus facility........       2,000,000
State of Illinois: buses and bus facilities.............       9,000,000
State of Indiana:                                                       
    Indianapolis buses..................................       2,000,000
    South Bend intermodal facility......................       4,000,000
State of Louisiana: buses and bus facilities............      25,000,000
State of Maryland: buses and bus facilities.............       8,000,000
Commonwealth of Massachusetts:                                          
    Franklin RTA buses..................................         500,000
    Greenfield Montague Transportation Area buses.......         700,000
    South Station intermodal transportation center......       1,000,000
    Worcester Union Station.............................       3,500,000
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:                                                        
    Clark County buses..................................       8,500,000
    Reno, Washoe County Regional Transportation                         
     Commission, buses and bus facilities...............       3,000,000
State of New Mexico: Santa Fe buses and bus facilities..       2,000,000
State of New York:                                                      
    Nassau County and Long Island buses and bus                         
     facilities (Goodwill Games)........................       1,000,000
    New Rochelle intermodal facility....................       3,000,000
    NFTA HUBLINK program................................       2,000,000
    Staten Island/Brooklyn mobility project.............       2,000,000
    Syracuse buses......................................       8,600,000
    Yonkers intermodal facility.........................       4,000,000
State of North Carolina: buses and bus facilities.......       5,000,000
State of Ohio: buses and bus facilities.................      25,000,000
State of Oregon:                                                        
    Eugene-Springfield-Lane County buses and bus                        
     facilities.........................................       1,000,000
    Salem and Corvallis buses and bus facilities........       1,000,000
Commonwealth of Pennsylvania:                                           
    Allegheny County buses..............................       1,000,000
    Armstrong Mid-County buses and bus facility.........         200,000
    Berks Area Reading transit intermodal facility......         500,000
    Cambria County buses and bus facilities.............         800,000
    Fayette and Somerset buses, vans, and bus facilities         600,000
    Indiana County buses................................         500,000
    Lackwanna County paratransit vans...................         300,000
    Lawrence County buses...............................       1,000,000
    Lehigh and Northampton buses........................       1,000,000
    Mid Mon Valley transit authority buses..............         750,000
    New Castle area transit authority buses.............         750,000
    North Philadelphia intermodal facility..............       1,600,000
    Schuylkill County buses.............................         200,000
    Scranton buses and bus facility.....................       3,000,000
    SEPTA buses.........................................      15,000,000
    Towanda Borough intermodal bus facility.............       4,000,000
    Williamsport buses and bus facility.................       2,500,000
State of Tennessee: buses and bus facilities............       8,000,000
State of Texas:                                                         
    Austin buses........................................       1,000,000
    Brazos transit systems buses and bus facilities.....       3,000,000
    Corpus Christi buses and bus facilities.............       1,000,000
    El Paso buses.......................................       1,000,000
    Fort Worth buses....................................       1,500,000
    Galveston buses and bus facilities..................       2,000,000
State of Utah: buses and bus facilities.................       4,000,000
Commonwealth of Virginia:                                               
    Alexandria paratransit system.......................         250,000
    Falls Church electric buses.........................         400,000
    Dulles corridor buses and bus facilities............       5,000,000
    Richmond downtown intermodal station (Main Street                   
     Station)...........................................       5,000,000
State of Washington:                                                    
    Bremerton buses and transportation center...........       2,000,000
    Everett intermodal center...........................       5,000,000
    King County multimodal facility.....................       2,000,000
    Snohomish County buses..............................       5,000,000
    Tacoma Dome station project.........................       3,000,000
    Thurston County intercity buses.....................       2,000,000
State of Wisconsin:                                                     
    Milwaukee facility..................................       1,000,000
    Statewide buses and bus equipment...................      19,000,000
State of West Virginia:                                                 
    Huntington intermodal facility......................       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.............................                (--)
Bill 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)
Bill 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
Bill 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
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................          +863,000
    Budget estimate, fiscal year 1998.................      +11,200,000 
                                                                        
\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:

----------------------------------------------------------------------------------------------------------------
                                                                   1997 enacted                   Recommended in
                             Program                                   1,2,3       1998 estimate   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
Bill 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:

----------------------------------------------------------------------------------------------------------------
                                                                                                 Recommended in 
                                                            1997 enacted \1\    1998 estimate       the bill    
----------------------------------------------------------------------------------------------------------------
Hazardous materials safety................................       $15,472,000       $15,492,000       $15,024,000
    (Positions)...........................................             (129)             (129)             (129)
Research and technology...................................         3,580,000         5,296,000         3,596,000
    (Positions)...........................................              (13)              (13)              (13)
Emergency transportation..................................           993,000           993,000           993,000
    (Positions)...........................................               (7)               (7)               (7)
Program support...........................................         6,841,000         8,321,000         8,321,000
    (Positions)...........................................              (48)              (48)              (48)
                                                           -----------------------------------------------------
      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:                                                    
    Hold personnel, compensation and benefits to 1997                   
     level............................................         -$468,000
Research and technology:                                                
    Hold research and development to 1997 level.......        -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)

                                                                        
                                                            Oil Spill   
                                       Pipeline Safety   Liability Trust
                                            Fund              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
Bill 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
Bill 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, includingan 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
Bill 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
Bill 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:

----------------------------------------------------------------------------------------------------------------
                                                 1997 enacted            1998 estimate       Recommended in the 
                                           ------------------------------------------------         bill        
                  Program                                                                  ---------------------
                                             Staff       Budget      Staff       Budget      Staff      Budget  
                                             years   authority \1\   years   authority \2\   years    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
Bill 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                    Budget               
                                                               authority     Outlays     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
Outlays:                                                                
    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
                                                                        

                                                        
                                                        

    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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