[House Report 108-671]
[From the U.S. Government Publishing Office]



108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     108-671

======================================================================
 
  DEPARTMENTS OF TRANSPORTATION AND TREASURY AND INDEPENDENT AGENCIES 
                       APPROPRIATIONS BILL, 2005

                                _______
                                

 September 8, 2004.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

    Mr. Istook, from the Committee on Appropriations, submitted the 
                               following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 5025]

    The Committee on Appropriations submits the following 
report in explanation of the accompanying bill making 
appropriations for the Departments of Transportation and 
Treasury and independent agencies for the fiscal year ending 
September 30, 2005.

                        INDEX TO BILL AND REPORT

_______________________________________________________________________


                                                            Page number

                                                            Bill Report
Summary and major recommendations of the bill..............
                                                                      3
The effect of guaranteed spending..........................
                                                                      4
Decline in relevance of budget justification material......
                                                                      5
Tabular summary............................................
                                                                      6
Committee hearings.........................................
                                                                      6
Program, project, and activity.............................
                                                                      6
Title I--Department of Transportation:
        Office of the Secretary............................     2
                                                                      7
        Federal Aviation Administration....................     6
                                                                     11
        Federal Highway Administration.....................    14
                                                                     39
        Federal Motor Carrier Safety Administration........    24
                                                                     50
        National Highway Traffic Safety Administration.....    27
                                                                     56
        Federal Railroad Administration....................    32
                                                                     65
        Federal Transit Administration.....................    40
                                                                     75
        Saint Lawrence Seaway Development Corporation......    50
                                                                     95
        Maritime Administration............................    51
                                                                     96
        Research and Special Programs Administration.......    53
                                                                    100
        Office of Inspector General........................    55
                                                                    105
        Surface Transportation Board.......................    56
                                                                    106
        General provisions, Department of Transportation...    56
                                                                    108
Title II--Department of the Treasury:
        Departmental Offices...............................    61
                                                                    109
        Department-Wide Systems and Capital Investment 
            Programs.......................................    63
                                                                    112
        Office of Inspector General........................    63
                                                                    113
        Treasury Inspector General for Tax Administration..    64
                                                                    114
        Air Transportation Stabilization Program Account...    64
                                                                    115
        Treasury Building and Annex Repair and Restoration.    65
                                                                    115
        Financial Crimes Enforcement Network...............    65
                                                                    116
        Financial Management Service.......................    66
                                                                    117
        Alcohol and Tobacco Tax and Trade Bureau...........    66
                                                                    118
        Bureau of Engraving and Printing...................
                                                                    118
        United States Mint.................................    67
                                                                    119
        Bureau of the Public Debt..........................    67
                                                                    120
        Internal Revenue Service...........................    68
                                                                    120
        General provisions, Department of the Treasury.....
                                                                    124
Title III--Executive Office of the President and Funds 
    Appropriated to the President:
        Compensation of the President......................    76
                                                                    125
        White House Office Salaries and Expenses...........    76
                                                                    126
        Executive Residence at the White House.............    77
                                                                    126
        Council of Economic Advisors.......................    80
                                                                    127
        Office of Policy Development.......................    80
                                                                    128
        National Security Council..........................    80
                                                                    128
        Homeland Security Council..........................    81
                                                                    129
        Office of Administration...........................    81
                                                                    129
        Office of Management and Budget....................    82
                                                                    130
        Office of National Drug Control Policy.............    83
                                                                    132
        Unanticipated Needs................................    87
                                                                    135
        Special Assistance to the President and the 
            Official Residence of the Vice President.......    87
                                                                    136
Title IV--Independent Agencies:
        Architectural and Transportation Barriers 
            Compliance Board...............................    88
                                                                    136
        National Transportation Safety Board...............    88
                                                                    137
        Federal Election Commission........................    89
                                                                    138
        Election Assistance Commission.....................    89
                                                                    138
        Federal Labor Relations Authority..................    90
                                                                    140
        Federal Maritime Commission........................    91
                                                                    140
        General Services Administration....................    91
                                                                    141
        Merit Systems Protection Board.....................   107
                                                                    147
        Morris K. Udall Foundation.........................   107
                                                                    148
        National Archives and Records Administration.......   108
                                                                    149
        Office of Government Ethics........................   109
                                                                    150
        Office of Personnel Management.....................   110
                                                                    151
        Office of Special Counsel..........................   114
                                                                    155
        United States Postal Service.......................   115
                                                                    156
        United States Tax Court............................   116
                                                                    157
Title V--General Provisions: This Act......................   116
                                                                    158
Title VI--General Provisions: Departments, Agencies, and 
    Corporations...........................................   124
                                                                    159
House of Representatives Report Requirements:
        Constitutional authority...........................
                                                                    162
        Appropriations not authorized by law...............
                                                                    163
        Transfers of funds.................................
                                                                    164
        Statement of general performance goals and 
            objectives.....................................
                                                                    165
        Compliance with rule XIII, clause 3(e) (Ramseyer 
            rule)..........................................
                                                                    166
        Changes in the application of existing law.........
                                                                    179
        Comparison with the budget resolution..............
                                                                    195
        Five-year outlay projections.......................
                                                                    196
        Financial assistance to state and local governments
                                                                    196
        Rescissions........................................
                                                                    196
        Full Committee votes...............................
                                                                    196
        Tabular summary of the bill........................


             Summary and Major Recommendations of the Bill

    The accompanying bill would provide $89.9 billion in new 
budget (obligational) authority for the programs of the 
departments of Transportation and Treasury and independent 
agencies, $1 billion more than requested in the budget and $495 
million below the fiscal year 2004 enacted levels. In all 
cases, unless otherwise noted, references in this report to 
fiscal year 2004 enacted levels include an across-the-board 
reduction of .59 percent specified for all government 
departments, agencies, and entities in division H, section 168 
of Public Law 108-199.
    Selected major recommendations in the accompanying bill 
are:
           Federal-aid highways spending of $34.6 
        billion, the same as the House-passed authorization 
        level. This is an increase of $1 billion over the 
        President's request and the same increase above the 
        fiscal year 2004 enacted level.
           A total of $14 billion provided to the 
        Federal Aviation Administration (FAA)--$171 million 
        over the fiscal year 2004 enacted level and $55 million 
        over the President's request. This includes $3.5 
        billion for the airport improvement program and $102 
        million for essential air service. The bill includes $9 
        million above the request for the hire and training of 
        additional air traffic controllers. The bill also 
        extends the current provisions of the war risk 
        insurance program, including current premium price 
        caps, for one additional year.
           The bill provides $900 million for Amtrak, a 
        level consistent with the President's budget request. 
        The bill also continues current reforms for Amtrak, 
        including the submission of a financial plan and 
        quarterly reports to the Congress on the implementation 
        of that plan. The bill includes $500 million for 
        capital improvements and $60 million to ensure commuter 
        operations continuity.
           Transit program spending totals $7.249 
        billion, including over $1 billion for new fixed 
        guideway systems.
           Under the General Services Administration, 
        the bill provides: $90.7 million for new border 
        stations to protect our nation's borders and improve 
        commercial efficiency at the borders; $314.4 million 
        for a new federal courthouse in Los Angeles, 
        California; and $2.7 million for design and site 
        acquisition of a new courthouse in San Diego, 
        California.
           The bill increases funding for Treasury's 
        Financial Crimes Enforcement Network by $2.8 million.
           The bill provides $468.5 million to the 
        Office of National Drug Control Policy, including: 
        $215.4 million for the High Intensity Drug Trafficking 
        Areas program, $7 million above the President's 
        request; $120 million for the National Youth Anti-Drug 
        Media Campaign; and $70 million for the Drug-Free 
        Communities program.
           Maintains current law requiring 
        contraceptive coverage under the Federal Employees 
        Health Benefits Program (FEHBP) (except in certain 
        circumstances) and prohibiting the use of funds under 
        FEHBP to pay for an abortion, except where the life of 
        the mother is endangered or in case of rape or incest.
           Subject to certain criteria, the bill 
        establishes a government-wide threshold requiring that 
        any competitive sourcing initiative yield a 10 percent 
        or $10 million savings for the Federal Government; and
           Prohibits the Treasury Department from 
        implementing or enforcing regulations that permit 
        financial institutions to accept the matricula consular 
        identification.

                   The Effect of Guaranteed Spending

    Over the objections of the Appropriations and Budget 
Committees, in 1998 the Transportation Equity Act for the 21st 
Century (TEA21) amended the Budget Enforcement Act to provide 
two new additional spending categories or ``firewalls'', the 
highway category and the mass transit category. The Wendell H. 
Ford Aviation Investment and Reform Act for the 21st Century 
(AIR21) provided a similar treatment for certain aviation 
programs. Although using different procedures, each of these 
Acts produced the same results: they significantly raised 
spending, and they have had the effect of prohibiting the 
Appropriations Committee from reducing those spending levels in 
the annual appropriations process. As the Committee noted 
during deliberations on these bills, the Acts essentially 
created mandatory spending programs within the discretionary 
caps. This undermines Congressional flexibility to fund other 
equally important programs not protected by funding guarantees 
and to address emerging priorities, such as homeland security 
and overseas military requirements, within projected budget 
totals. The reorganization of the Committee in the 108th 
Congress posed additional challenges in this regard, because 
funding guarantees for selected transportation programs compete 
in the budget process against funding for non-transportation 
agencies such as the Office of National Drug Control Policy, 
enforcement of anti-terrorism and money laundering activities 
in the Treasury Department, the Internal Revenue Service, and 
the General Services Administration. As in past years, the 
Committee has done all in its power, considering this 
environment, to produce a balanced bill providing adequately 
for all modes of transportation as well as all non-
transportation programs under the jurisdiction of this bill.
    Although the funding guarantees in AIR-21 were extended in 
the Vision-100 Century of Aviation Reauthorization Act last 
year, the guarantees of TEA-21 expired on September 30, 2003, 
and the Committee's recommendations were developed with that 
under consideration. As reauthorization of our surface 
transportation programs continues to be debated during the 
current session of Congress, the Committee wants to make clear 
that the continued use of spending guarantees to ``wall-off'' 
parts of the discretionary budget for particular constituencies 
could cause both transportation and non-transportation programs 
across the government to be under more severe budget pressure, 
in order to keep the overall budget in balance. The effect of 
maintaining and enforcing these guarantees would leave its mark 
on non-covered programs and activities in this bill, since they 
must compete for leftover funding. The Committee continues to 
believe that funding guarantees skew transportation priorities 
inappropriately, by providing increases to highway, transit, 
and airport spending while leaving safety-related operations in 
the FAA and FRA, as well as critical non-transportation 
programs, to scramble for the remaining resources.

         Decline in Relevance of Budget Justification Material

    The Committee is disturbed to note the serious decline in 
the quality of budget justification material submitted this 
year. Many of the detailed tables providing breakdowns of 
requested funds by activity or by office have been 
discontinued. Discussions of specific increases and decreases 
to prior funding levels have been minimized or eliminated, 
along with breakdowns of changes in staffing levels. In the 
place of critical budget-justifying material, the Committee is 
provided reams of narrative text expounding on the performance 
goals and achievements of the various agencies. This requires 
the Committee to expend unnecessary effort to get the 
information it needs, and to weed through mountains of 
information unrelated to the budget in the hope of finding 
something useful.
    The Committee acknowledges the value of performance 
measurement. Likewise though, the Committee expects the 
administration to acknowledge that Congressional budget 
justifications are prepared not for executive officials, but 
for the use of the Committees on Appropriations. The Committees 
are less able to meet the administration's requests if they do 
not come justified with proper financial information. The 
Committee also believes there is currently much waste in the 
duplicated printing of performance reports. This year, for 
example, the Committee received a detailed ``Performance and 
Accountability Report'' from the Department of Transportation 
at the time the President's budget was submitted. Much of this 
information, however, was reprinted in the budget 
justifications. This was a waste of printing costs, and crowded 
out important financial information. Although the Committee 
traditionally prints the President's budget justifications in 
their entirety for distribution to the public, this year the 
Committee has removed hundreds of pages from public printing 
that were unrelated to justifying the budget request. In one 
agency alone, this saved the government at least $9,000 in 
printing costs.
    While the Committee remains interested in receiving 
performance information, in future budget submissions by the 
Departments of Transportation and Treasury, and independent 
agencies covered by this Act, these agencies are directed to 
refrain from including substantial amounts of performance data 
within the budget justifications themselves, and to instead 
revert to the traditional funding information previously 
provided. Performance-related information may be submitted 
under separate cover. Secondly, agencies funded in this bill 
are directed to include, as part of the budget justifications, 
a breakdown of requested budgetary and staffing resources by 
office. This should include comparative data showing such 
resources for the requested year and the two previous fiscal 
years. If the Office of Management and Budget or individual 
agencies do not heed the Committee's direction, the Committee 
will assume that individual budget offices have excess 
resources that can be applied to other, more critical missions.

                            Tabular Summary

    A table summarizing the amounts provided for fiscal year 
2004 and the amounts recommended in the bill for fiscal year 
2005 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 this bill. Pursuant to 
House rules, each of these hearings was open to the public. The 
Committee received testimony from cabinet officers, agency 
heads, inspectors general, and other officials of the executive 
branch in areas under the bill's jurisdiction. In addition, the 
Committee has considered written material submitted for the 
hearing record by Members of Congress, private citizens, local 
government entities, and private organizations. The bill 
recommendations for fiscal year 2005 have been developed after 
careful consideration of all the information available to the 
Committee.

                     Program, Project, and Activity

    During fiscal year 2005, 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 capital investment 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 shall be applied equally to each ``budget item'' 
that is listed under said accounts in the budget justifications 
submitted to the House and Senate Committees on Appropriations 
as modified by subsequent appropriations Acts and accompanying 
committee reports, conference reports, or joint explanatory 
statements of the committee of conference.

                 TITLE I--DEPARTMENT OF TRANSPORTATION


                        Office of the Secretary


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2004 \1\...................       $81,193,000
Budget request, fiscal year 2005 \1\..................       107,103,000
Recommended in the bill...............................        89,000,000
Bill compared with:
    Appropriation, fiscal year 2004...................        +7,807,000
    Budget request, fiscal year 2005..................       -18,103,000


\1\ Includes the transfer of the Office of Emergency Transportation to
  the Office of the Secretary as requested in the budget.

                        COMMITTEE RECOMMENDATION

    The bill provides $89,000,000 for the salaries and expenses 
of the various offices comprising the Office of the Secretary. 
The following table compares the fiscal year 2004 enacted level 
to the fiscal year 2005 budget estimate and the Committee's 
recommendation by office:

----------------------------------------------------------------------------------------------------------------
                                                            Fiscal year 2004  Fiscal year 2005        House
                                                               enacted \1\         estimate        recommended
----------------------------------------------------------------------------------------------------------------
Immediate office of the secretary.........................        $2,179,000        $2,738,000        $2,219,000
Office of the deputy secretary............................           690,000         1,070,000           705,000
Office of the executive secretariat.......................         1,426,000         1,500,000         1,456,000
Office of the under secretary of transportation for policy        12,141,000        12,919,000        12,639,000
Board of contract appeals.................................           690,000           801,000           704,000
Official of small and disadvantaged business utilization..         1,251,000         1,295,000         1,277,200
Office of the chief information officer...................         7,396,000        16,742,000        13,000,000
Office of the assistant secretary for governmental affairs         2,268,000         2,587,000         2,315,700
Office of the general counsel.............................        14,985,000        16,920,000        15,394,300
Office of the assistant secretary for budget and programs.         8,418,000         8,889,000         8,572,900
Office of the assistant secretary for administration......        22,984,000        32,935,000        23,435,700
Office of public affairs..................................         1,889,000         2,034,000         1,982,700
Office of intelligence and security.......................         1,972,000         2,260,000         2,052,900
Office of emergency transportation........................         2,904,000         4,323,000         3,300,000
                                                           -----------------------------------------------------
      Total...............................................        81,193,000       107,013,000        89,000,000
----------------------------------------------------------------------------------------------------------------
\1\ Includes across the board reduction of .65 percent.

    Immediate offices of the secretary and deputy secretary and 
the executive secretariat.--The recommendation provides an 
almost 2 percent increase for these offices rather than the 2.4 
percent proposed. The recommendation includes individual 
funding for these offices, as in past years, rather than 
consolidating them as proposed in the budget request.
    Office of the chief information officer.--The Committee 
recommends $13,000,000 for activities of the chief financial 
officer, which represents a 75.8 percent increase above the 
fiscal year 2004 enacted level instead of the 126.4 percent 
increase proposed. While this increase may seem generous when 
compared to the increases provided to other offices of the 
department, the Committee notes the fiscal year 2005 level is 
on par with the fiscal year 2003 and 2002 funding levels. The 
Committee's recommendation includes $2,285,000 for cyber 
intelligence and infrastructure protection, $1,000,000 for 
common access architecture, $500,000 for the enterprise 
security project, $2,515,000 enterprise architecture 
implementation, $2,000,000 for departmental investment and 
capital planning, $500,000 for strategic management, and 
$4,200,000 for consolidation and operations support.
    Office of the assistant secretary for administration.--The 
Committee's recommendation of $23,435,700 for fiscal year 2005 
assumes that the centralized workers' compensation program, 
consolidated benefits activities, security investigation costs, 
rent, and the remediation of DOT facilities will be funded at 
the budget request level. The Committee recommends a total of 
$378,000 for training and recruitment activities and $68,000 
for ``electronic business practice'' activities to meet the 
requirements of FedBiz Ops.
    Office of emergency transportation.--The Committee approves 
the request to transfer of this office from the research and 
special programs administration to the office of the secretary. 
The Committee recommends a funding level of $3,300,000, 
$396,000 over the fiscal year 2004 level and $1,023,000 below 
the budget request. Of the amount provided, $100,000 is for 
improvements to the crisis management center's operational 
capabilities and $100,000 is for regional emergency response 
team training.
    Operating plan.--The Committee directs the department to 
submit an operating plan for fiscal year 2005, signed by the 
Secretary for review by the Committees on Appropriations of 
both the House and Senate within 60 days of the bill's 
enactment. The operating plan should include funding levels for 
the various offices, programs and initiatives detailed down to 
the object class or program element covered in the budget 
justification and supporting documents or referenced in the 
House and Senate appropriations reports, and the statement of 
the managers.
    Congressional budget justifications.--The Committee again 
directs the department to submit all of the department's fiscal 
year Congressional budget justifications on the first Monday in 
February, concurrent with official submission of the 
President's budget to Congress. Also, the department is 
directed to submit its fiscal year 2006 Congressional 
justification materials for the salaries and expenses of the 
office of the secretary at the same level of detail provided in 
the Congressional justifications presented in fiscal year 2003. 
Further, the department is directed to include in the budget 
justification funding levels for the prior year, current year, 
and budget year for all programs, activities, initiatives, and 
program elements.
    Bill language.--Language prohibiting funding for the 
assistant secretary for public affairs position has been 
retained from last year. Also, the bill continues language that 
permits up to $2,500,000 of fees to be credited to the office 
of the secretary for salaries and expenses.

                         OFFICE OF CIVIL RIGHTS




Appropriation, fiscal year 2004.......................        $8,518,000
Budget request, fiscal year 2005......................         8,700,000
Recommended in the bill...............................         8,700,000
Bill compared with:
    Appropriation, fiscal year 2004...................          +182,000
    Budget request, fiscal year 2005..................  ................


    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 opportunity 
precepts in all of the department's official actions and 
programs. This office is responsible for enforcing laws and 
regulations that 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 recommendation provides 
$8,700,000 for the office of civil rights, the same as the 
budget estimate and an increase of $182,000 above the fiscal 
year 2004 enacted level.

           TRANSPORTATION PLANNING, RESEARCH, AND DEVELOPMENT




Appropriation, fiscal year 2004.......................       $20,741,000
Budget request, fiscal year 2005......................        10,800,000
Recommended in the bill...............................        10,800,000
Bill compared with:
    Appropriation, fiscal year 2004...................        -9,941,000
    Budget request, fiscal year 2005..................  ................


    This appropriation finances those research activities and 
studies concerned with planning, analysis, and information 
development needed to support the Secretary's responsibilities 
in the formulation of national transportation policies. It also 
finances the staff necessary to conduct these efforts. The 
overall program is carried out primarily through contracts with 
other federal agencies, educational institutions, nonprofit 
research organizations, and private firms.
    The Committee recommends an appropriation of $10,800,000 
for transportation planning, research and development, a 
reduction of $9,941,000 below the fiscal year 2004 level, but 
equal to the budget request.
    The Committee encourages the department to renew the 
current memorandum of understanding with Langston University 
regarding transportation research activities, and expand the 
scope if possible.

                          WORKING CAPITAL FUND




Limitation, fiscal year 2004..........................    ($116,026,000)
Budget request, fiscal year 2005 \1\..................  ................
Recommended in the bill...............................     (125,000,000)
Bill compared with:
    Limitation, fiscal year 2004......................      (+8,974,000)
    Budget request, fiscal year 2005..................    (+125,000,000)


\1\ Proposed without limitation.

    The working capital fund (WCF) was created 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.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a limitation of $125,000,000 on 
the working capital fund, $26,054,000 below the amount 
estimated in the budget justification. The budget request 
proposed a limitless program level for the fund in fiscal year 
2005. The Committee's recommendation is appropriate considering 
the funding levels of the operations and administrative 
accounts.
    Modal usage of WCF.--Consistent with past practice, the 
Committee directs the department, in its fiscal year 2006 
Congressional justifications for each of the modal 
administrations, to account for increases or decreases in WCF 
billings based on planned usage requested or anticipated by the 
modes rather than anticipated by WCF managers.

               MINORITY BUSINESS RESOURCE CENTER PROGRAM


                                                          Limitation on
                                        Appropriation   guaranteed loans

Appropriation, fiscal year 2004.....          $895,000     ($18,367,000)
Budget request, fiscal year 2005....           900,000      (18,367,000)
Recommended in the bill.............           900,000      (18,367,000)
Bill compared to:
    Appropriation, fiscal year 2004.            +5,000      (..........)
    Budget request, fiscal year 2005  ................      (..........)


    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.
    The recommendation fully funds the budget request of 
$500,000 to cover the subsidy costs for the loans, not to 
exceed $18,367,000, and $400,000 for administrative expenses to 
carry out the guaranteed loan program.

                       MINORITY BUSINESS OUTREACH




Appropriation, fiscal year 2004.......................        $2,982,000
Budget request, fiscal year 2005......................         3,000,000
Recommended in the bill...............................         3,000,000
Bill compared with:
    Appropriation, fiscal year 2004...................           +18,000
    Budget request, fiscal year 2005..................  ................


    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 serves DOT-wide goals. The Committee 
has provided $3,000,000 for this program, $18,000 above the 
fiscal year 2004 funding level and equal to the budget request.

                       NEW HEADQUARTERS BUILDING




Appropriation, fiscal year 2004 \1\...................       $42,000,000
Budget request, fiscal year 2005......................       160,000,000
Recommended in the bill...............................  ................
Bill compared with:
    Appropriation, fiscal year 2004...................       -42,000,000
    Budget request, fiscal year 2005..................      -160,000,000


\1\ Fiscal year 2004 funds were provided under ``General services
  administration, federal buildings fund.''

    This appropriation finances fiscal year 2005 costs for the 
new Department of Transportation headquarters building, which 
would consolidate all of the department's headquarters 
operating administration functions (except the Federal Aviation 
Administration) from various locations around the Washington, 
D. C. metropolitan area into a leased building within the 
central employment area of the District of Columbia.
    The Committee's recommendation includes no new funds in 
fiscal year 2005 for the new headquarters building. The 
Committee has still not yet received a satisfactory answer 
regarding why the Department is not pursuing a government-owned 
building at half the price instead of the current plan of a 
long term lease arrangement.

                        PAYMENTS TO AIR CARRIERS

                    (AIRPORT AND AIRWAY TRUST FUND)




Appropriation, fiscal year 2004.......................       $51,693,000
Budget request, fiscal year 2005......................        50,000,000
Recommended in the bill...............................        51,700,000
Bill compared with:
    Appropriation, fiscal year 2004...................            +7,000
    Budget request, fiscal year 2005..................        +1,700,000


    The Essential Air Service (EAS) 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.
    The Federal Aviation Administration Reauthorization Act of 
1996 (Public Law 104-264) authorized the collection of user 
fees for services provided by the Federal Aviation 
Administration (FAA) to aircraft that neither take off from, 
nor land in the United States, commonly known as overflight 
fees. In addition, the Act permanently appropriated these fees 
for authorized expenses of the FAA and stipulated that the 
first $50,000,000 of annual fee collections must be used to 
finance the EAS program. In the event of a shortfall in fees, 
the law requires FAA to make up the difference from other funds 
available to the agency.
    The fiscal year 2005 budget proposes to fund the EAS 
program at a total of $50,000,000, of which $36,000,000 would 
come from new overflight fee collections credited to the 
Airport and Airway Trust fund, and $14,000,000 from overflight 
fees previously collected and transferred to this payment 
account. The Committee finds the budget proposal unrealistic 
considering that in 2004, a court ruled the imposition of such 
overflight fees to be illegal and the FAA is currently 
prohibited from collecting such fees.
    The Committee recommends a total program level of EAS in 
fiscal year 2005 of $101,700,000, roughly the same level as 
provided in fiscal year 2004. This funding consists of an 
appropriation of $51,700,000, $14,000,000 from funds carried 
over from the prior year, and $36,000,000 to be derived from 
other funds available to the FAA.
    The bill includes a provision (sec. 525) prohibiting the 
use of funds to implement the EAS local participation program.

                    Federal Aviation Administration

    The Federal Aviation Administration (FAA) is responsible 
for the safety and development of civil aviation and the 
evolution of a national system of airports. The Federal 
Government's regulatory role in civil aviation began with the 
creation of an Aeronautics Branch within the Department of 
Commerce pursuant to the Air Commerce Act of 1926. This Act 
instructed the Secretary of Commerce to foster air commerce; 
designate and establish airways; establish, operate, and 
maintain aids to navigation; arrange for research and 
development to improve such aids; issue airworthiness 
certificates for aircraft and major aircraft components; and 
investigate civil aviation accidents. In the Civil Aeronautics 
Act of 1938, these activities were subsumed into a new, 
independent agency named the Civil Aeronautics Authority.
    After further administrative reorganizations, Congress 
streamlined regulatory oversight in 1957 with the creation of 
two separate agencies, the Federal Aviation Agency and the 
Civil Aeronautics Board. When the Department of Transportation 
began its operations on April 1, 1967, the Federal Aviation 
Agency was renamed the Federal Aviation Administration (FAA) 
and became one of several modal administrations within the 
department. The Civil Aeronautics Board was later phased out 
with enactment of the Airline Deregulation Act of 1978, and 
ceased to exist at the end of 1984. FAA's mission expanded in 
1995 with the transfer of the Office of Commercial Space 
Transportation from the Office of the Secretary, and decreased 
in December 2001 with the transfer of civil aviation security 
activities to the new Transportation Security Administration.

                               operations


                    (AIRPORT AND AIRWAY TRUST FUND)




Appropriation, fiscal year 2004.......................    $7,486,493,000
Budget request, fiscal year 2005......................     7,849,000,000
Recommended in the bill...............................     7,726,000,000
Bill compared with:
    Appropriation, fiscal year 2004...................      +239,507,000
    Budget request, fiscal year 2005..................      -123,000,000


    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 for the FAA's regulatory, 
international, medical, engineering and development programs as 
well as policy oversight and overall management functions.
    The operations appropriation includes the following major 
activities: (1) operation on a 24-hour daily basis of a 
national air traffic 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) headquarters, administration and other staff 
offices; and (7) development, printing, and distribution of 
aeronautical charts used by the flying public.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $7,726,000,000 for FAA operations, 
an increase of $239,507,000 (3.2 percent) above the level 
provided for fiscal year 2004 and $123,000,000 below the 
President's budget request.
    A comparison of the fiscal year 2005 budget estimate to the 
Committee recommendation by budget activity is as follows:

------------------------------------------------------------------------
                                                 Fiscal year--
           Budget activity           -----------------------------------
                                        2005 estimate   2005 recommended
------------------------------------------------------------------------
Air traffic organization............    $6,522,109,000    $6,160,617,600
Aviation regulation & certification.       905,194,000       916,894,000
Research and acquisition............             (\1\)       224,039,000
Commercial space transportation.....        11,941,000        11,674,000
Financial services..................             (\2\)        50,624,000
Human resources.....................             (\2\)        69,821,600
Region and center operations........             (\2\)       149,569,800
Staff offices.......................       409,756,000       139,302,000
Information services................             (\2\)        38,254,000
Account-wide adjustments............  ................       -34,796,000
                                     -----------------------------------
      Total.........................     7,849,000,000    7,726,000,000
------------------------------------------------------------------------
\1\ Estimate includes $224,039,000 under ``Air traffic organization''.
\2\ Estimate includes such funds under ``Staff offices'', as follows:
  Financial services, $53,624,000; Human resources, $78,660,000; Region
  and center operations coordination, $88,479,000; Office of information
  services, $38,254,000.

                     TRUST FUND SHARE OF FAA BUDGET

    The bill derives $6,002,000,000 of the total appropriation 
from the airport and airway trust fund. This is the same as the 
budget estimate. The balance of the appropriation 
($1,724,000,000) will be drawn from the general fund of the 
Treasury. Under these provisions, 77.7 percent of the FAA's 
operating costs will be borne by air travelers and industries 
using those services. The remaining 22.3 percent will be borne 
by the general taxpayer, regardless of whether they directly 
utilize FAA services.

               STATE OF THE AIRPORT AND AIRWAY TRUST FUND

    According to Administration estimates, fiscal year 2005 
will continue the recent trend where necessary outlays for FAA 
programs outstrip the revenues from aviation users deposited 
into the airport and airway trust fund. The following table 
compares trust fund revenue to trust fund outlays for the past 
three fiscal years. As the table indicates, under current 
estimates the Federal Government is not only spending all the 
revenues coming into the trust fund, it is going beyond that, 
and spending down the cash balance. The Administration 
estimates that, at the end of fiscal year 2005, the 
unliquidated cash balance in the trust fund will be 
approximately $2,875,000,000. This represents a drop of 36.5 
percent from the figure two years before.

----------------------------------------------------------------------------------------------------------------
                                                            Fiscal year 2003  Fiscal year 2004  Fiscal year 2005
----------------------------------------------------------------------------------------------------------------
Trust fund revenue \1\....................................    $9,372,000,000   $10,523,000,000   $11,241,000,000
Trust fund outlays........................................     9,618,000,000    11,538,000,000    12,667,000,000
Difference................................................      -246,000,000        -1,015,000   -1,426,000,000
----------------------------------------------------------------------------------------------------------------
\1\ Includes excise taxes, offsetting collections, and interest on trust fund cash balance.

                         AVERAGE STAFFYEAR COST

    The Committee continues to be concerned over FAA's high 
average cost for personnel. In fiscal year 2005, the average 
full-time equivalent (FTE) staffyear cost at FAA is estimated 
at $130,957. This is among the highest of all federal agencies, 
and has risen 22 percent in the past four years. The Committee 
believes FAA needs to continue, as a high priority, its efforts 
to reform the agency cost structure. These efforts must include 
business process re-engineering, value activity analysis, 
facility consolidation, and other options to reduce the 
agency's personnel costs over the coming years.

                               SICK LEAVE

    The Committee notes that FAA's consumption of sick leave 
rose in both leave year 2002 and 2003. Currently, the average 
FAA employee uses 11.2 sick leave days per year, a figure 
almost 20 percent higher than the government-wide average. 
Given the severe budget constraints facing the nation, the 
Committee urges FAA to continue focusing on ways to reduce sick 
leave, to improve productivity and lessen the need for 
additional staffing resources in future years.

                          AIR TRAFFIC SERVICES

    The bill provides $6,160,617,600 for air traffic services. 
These resources would be managed by FAA's air traffic 
organization. Recommended adjustments to the budget estimate 
are listed and described below:

                                                                  Amount
Contract tower base program.............................     +$6,800,000
Contract tower cost-sharing program.....................      +7,000,000
Restoration of Research and Acquisitions office.........    -224,039,000
NAS handoff--reduce growth..............................    -104,000,000
Required navigation performance.........................      -8,000,000
Management of MOUs and MOAs.............................        -500,000
Realignment of functions to ARC.........................     -52,252,400
New controller hires and training.......................      +9,000,000
Aviation weather support training program...............        +500,000
ATC operational supervisors.............................      +4,000,000

    Contract tower program.--The bill includes $86,000,000, an 
increase of $6,800,000 above the budget estimate, to continue 
the contract tower base program. The President's budget does 
not reflect the estimate for new contracts being negotiated 
during fiscal year 2005, or costs to continue operations at an 
estimated 15 new towers entering the program during fiscal year 
2005. Of the funds provided for this program, $500,000 is to 
deploy computer-based interactive training systems for 
controllers at FAA contract towers. In designing the system, 
FAA should utilize interactive computer-based training and 
testing systems in use at airports.
    In addition, the bill provides $7,000,000 to continue the 
contract tower cost-sharing program. The Committee continues to 
believe this is a valuable program that provides safety 
benefits to small communities. Communities in this program as 
of May 1, 2004 are shown below:

------------------------------------------------------------------------
                          Airport name                            State
------------------------------------------------------------------------
King Salmon....................................................      AK
Springdale.....................................................      AR
Laughlin/Bullhead City.........................................      AZ
South Lake Tahoe...............................................        CA
Macon..........................................................      GA
Bloomington....................................................      IN
Columbus Municipal.............................................      IN
Muncie/Delaware County.........................................      IN
Garden City....................................................      KS
Manhattan......................................................      KS
Jefferson City.................................................      MO
Concord........................................................       NC
Kinston........................................................       NC
Hickory Regional...............................................       NC
Lebanon Municipal..............................................      NH
Elko...........................................................      NV
Oneida County..................................................      NY
Stillwater.....................................................      OK
Latrobe........................................................      PA
Williamsport/Lycoming County...................................      PA
Grand Strand/Myrtle Beach......................................       SC
McKeller-Sipes (Jackson).......................................      TN
Walla Walla Regional...........................................      WA
------------------------------------------------------------------------

    Restoration of research and acquisition office.--The 
Committee recommendation restores funding for a separate Office 
of Research and Acquisition. The President's budget proposed to 
transfer this funding to the air traffic organization. Inasmuch 
as not all research and acquisition staffing is related to air 
traffic services activities, and in recognition that there are 
separate appropriations for these important activities, the 
Committee believes the traditional budget structure should be 
maintained.
    Competitive sourcing for flight service stations.--In order 
to maintain a high level of safety and efficiency in the 
provision of flight service activities, the Committee urges FAA 
to ensure that the flight service station competitive sourcing 
effort require bidders to provide comprehensive and specific 
customer service standards for providing flight briefings to 
pilots as well as a process for ongoing customer service 
monitoring and evaluation.
    Required navigation performance.--The budget proposed a 
large increase to accelerate development of required navigation 
performance (RNP) criteria, and to publish and validate 
associated flying procedures. While the Committee supports this 
effort, given budget constraints and the need to fund other 
important priorities, the Committee recommends an increase of 
$8,156,000 above the fiscal year 2004 level. This results in a 
reduction to the budget estimate of $8,000,000.
    Management of MOUs and MOAs.--The Committee acknowledges 
the improvements made over the past year by FAA in managing 
memoranda of understanding (MOUs) and memoranda of agreement 
(MOAs) with its labor unions. In recognition that many of these 
changes are likely to result in reduced operating costs, the 
Committee bill assumes cost savings of $500,000 from this 
effort.
    National airspace system handoff.--The Committee 
recommendation provides a reduction of $104,000,000 below the 
budget estimate. The President's budget had proposed an 
increase of $183,200,000, a rate which cannot be sustained in 
the current budgetary situation.
    Controller staffing.--According to FAA, the agency's 
staffing standard estimates that 15,350 air traffic controllers 
will be required in fiscal year 2005. The President's budget 
request assumes an end of year staffing level of 15,333, which 
is sufficient to meet the requirement. However, the Committee 
believes it prudent to provide an initial down payment on the 
additional resources expected over the next few years to 
address controller retirements. The Committee notes that, as 
older controllers retire and are replaced by younger ones, the 
agency will incur substantial savings that can be used to 
offset additional requirements. Further, any assumption of a 
one-to-one replacement of retiring controllers assumes no 
productivity improvements from procedural changes, facility 
consolidation, or new technology. The Committee believes the 
business-like mindset of the new Air Traffic Organization, as 
well as the unusual flexibility provided to the agency through 
personnel and procurement reform, will make such productivity 
improvements a reality and lessen the need for additional 
personnel. However, in the short-term the Committee believes it 
necessary to hire some additional controllers and begin their 
training. The Committee bill includes an additional $9,000,000 
to hire and train additional air traffic controllers. This 
should be sufficient to hire and train approximately 120 
controllers. The Committee directs that the initial training 
for these personnel be conducted at the FAA Academy. In 
addition, the Committee bill includes $4,000,000 to hire an 
additional 120 air traffic control operational supervisors. 
This is the same amount as provided for fiscal year 2004. The 
Committee believes it is important to continue the initiative 
begun last year to restore the supervisory ranks to a healthy 
staffing level after several years of severe reductions. In 
October 1998, FAA had 1,963 air traffic control supervisors. By 
February 2004, that number had dropped to 1,519. With the 
additional resources provided last year, FAA intends to build 
up to the Congressionally-mandated level of 1,726 by the end of 
this fiscal year. The Committee recommendation would bring this 
level to 1,846.
    Aviation weather support training program.--The 
recommendation includes $500,000 to establish an aviation 
weather support training and test bed program involving two 
center weather service units, to improve the delivery of 
weather services and products for air route traffic control 
centers. This program would explore ways to correct the 
deficiencies identified in a November 2003 FAA audit by 
enhancing operational procedures, data dissemination, and 
coordination between air traffic control personnel and the 
central weather service unit meteorologists supporting them.
    Realignment of functions to Assistant Administrator for 
Region and Center Operations.--FAA has recently decided to 
transfer certain activities from the Air Traffic Organization 
and the Assistant Administrator for Human Resources to the 
Assistant Administrator for Region and Center Operations. These 
include certain logistics functions and management of the 
Center for Management Development, which is being transferred 
to the FAA Academy in Oklahoma City, OK. These zero-sum 
transfers are reflected in the bill.
    New York/New Jersey airspace redesign.--The Committee 
directs that, of the funds provided for national airspace 
redesign, not less than $5,000,000 shall be allocated to 
airspace redesign activities in the New York/New Jersey 
metropolitan area, and these funds shall not be reprogrammed to 
any other activity except through Congressional reprogramming 
procedures. These funds shall not be used to prepare an 
environmental impact statement for the redesign of this 
airspace, or to conduct any work pursuant to the National 
Environmental Policy Act or related laws, unless the FAA 
formally declares noise mitigation to be a primary objective of 
the redesign project.
    Procedures and technologies to improve airspace efficiency 
and capacity.--The Committee supports and encourages the FAA 
to: (1) expeditiously complete the airspace redesign in the 
Washington, DC region and the Chicago terminal areas; (2) to 
the extent resources allow, develop and implement RNP/RNAV 
procedures at key points nationwide such as Denver, San 
Francisco, Chicago, and Washington Dulles; and (3) continue 
development of the en route automation modernization (ERAM) 
program for ultimate deployment to FAA en route centers. The 
Committee believes each of these improvements will provide 
significant efficiency and capacity gains in the nation's 
airspace. The Committee directs FAA to report on the progress 
of these activities to the House and Senate Committees on 
Appropriations no later than April 1, 2005.
    Core skills training, airways facilities technical 
workforce.--The Committee believes that basic core skills 
training and certification for the airway facilities (AF) 
technical workforce is necessary for the safe operation of the 
NAS and for the viability of the FAA's modernization program. 
In the year 2000, FAA recognized the need to establish a core 
set of information technology skills for the AF technical 
workforce. The AF training model at that time was determined to 
be lacking in both structure and efficiency. An analysis of AF 
technical workforce responsibilities was accomplished in order 
to identify the core skills required for the performance of 
individual positions. As a result of this analysis, the FAA 
agreed to revise training with a focus on timely and efficient 
delivery and accommodation of NAS modernization. FAA's plan was 
to provide at least 20 percent of the workforce with core 
skills training each year. Unfortunately, despite this 
agreement, less than 40 percent of the current AF workforce has 
received the training. If FAA had fully implemented the 
agreement, 80 percent of the workforce would be trained. The 
Committee believes that possessing a core set of skills will 
assist the AF technical workforce in their responsibilities, 
thereby saving the FAA both time and money. The Committee 
strongly encourages the agency to do whatever is necessary to 
provide the AF technical workforce with core skills training 
and certification, and to shift its technical training focus to 
a de-centralized model, in fiscal year 2005. The Committee 
agrees with the FAA that this approach will provide the most 
effective use of resources available with the least impact to 
NAS operations.

                 AVIATION REGULATION AND CERTIFICATION

    The Committee recommends $916,894,000 for aviation 
regulation and certification, an increase of $11,700,000 above 
the budget estimate. Recommended adjustments to the budget 
estimate are listed and described below:

                                                                  Amount
Certification of upset training program.................       +$500,000
Flight attendant fatigue study..........................        +200,000
Safety and security analytics...........................      +1,000,000
Transfer, Office of System Safety.......................     +10,000,000

    Study and certification of upset recovery training.--The 
Committee recommends $500,000 for FAA to evaluate and validate 
state-of-the-art methods of conducting enhanced upset recovery 
training using centrifuge-based flight simulator technology. 
The Committee believes FAA should consider the development of 
aircraft-specific upset recovery procedures using today's 
simulator technology. Funds in this bill are to conduct human 
factors experiments at the Civil Aeromedical Institute to 
verify the benefits of this technology.
    Flight attendant fatigue study.--The Committee is concerned 
about evidence that FAA minimum crew rest regulations may not 
allow adequate rest time for flight attendants. Especially 
since the terrorist attacks of September 11, 2001, the nation's 
flight attendants have been asked to assume a greater role in 
protecting the safety of air travelers during flight. Current 
flight attendant duty and rest rules state that flight 
attendants should have a minimum of nine hours off duty, that 
may be reduced to eight hours, if the following rest period is 
ten hours. Although these rules have been in place for several 
years, they do not reflect the increased security 
responsibilities since 2001, and only recently have carriers 
begun scheduling attendants for less than nine hours off. There 
is evidence that what was once occasional use of the ``reduced 
rest'' flexibility is now becoming common practice at some 
carriers. Because FAA regulations allow the rest period to 
commence shortly after the aircraft parks at the gate, the 
eight hour ``rest'' period also includes the time it takes a 
flight attendant to get out of the terminal, go through customs 
if necessary, obtain transportation to a hotel and check in. 
Due to this situation, it is likely that many flight attendants 
are performing their duties with no more than 4 to 6 hours of 
sleep. To better understand the impact of the minimum rest 
requirements of FAR 121.467 and FAR 135.273, the Committee 
recommends $200,000 for a study of flight attendant fatigue. 
This study should consider professional input from FAA's Civil 
Aeromedical Institute. The study should be finalized and 
submitted to the House and Senate Committees on Appropriations 
no later than June 1, 2005, including the agency's 
recommendations on potential regulatory revisions.
    Safety and security analytics project.--The recommendation 
includes $1,000,000 to initiate the safety and security 
analytics project. Current software is available to analyze 
electronic text found in descriptions of accidents, incidents, 
pilot and controller reports, and other databases to determine 
trends, patterns, and anomalies earlier than using other 
methods. This technology will help FAA meet its long-term goal 
of reducing the fatal accident rate among commercial air 
carriers by focusing on long-term trends rather than specific 
cases.
    Transfer, Office of System Safety.--The Office of System 
Safety was established in 1996 in response to findings stemming 
from the crash of Valujet flight 592 and concerns over the 
potential impact of suspected unapproved parts in the aviation 
industry. Given changes in FAA's organizational structure and 
management since that time, the Committee believes the 
activities of this office would benefit from being included in, 
overseen by, and integrated with, the broader day-to-day safety 
activities of the Office of the Associate Administrator for 
Regulation and Certification (AVR). The recommendation funds 
this office at $10,000,000, a reduction of $1,437,000 from the 
budget estimate.
    Supplemental oxygen.--The Committee remains concerned that 
air travelers who require supplemental oxygen during flight 
face significant barriers to accessibility in air travel, which 
is at odds with the goals of the Air Carrier Access Act. The 
Act prohibits discrimination on the basis of disability in air 
travel, and requires accommodations that make air travel 
accessible for passengers with disabilities. The Committee is 
aware that the Research and Special Programs Administration has 
reviewed portable oxygen concentrator technology and found it 
to be a non-hazardous medical device and, as such, does not 
pose a safety or security risk. The Committee encourages FAA to 
initiate a rulemaking within six months of enactment that would 
establish rules for the use of portable oxygen concentrators 
and other oxygen delivery systems by airline patrons.

                        RESEARCH AND ACQUISITION

    The Committee recommends $224,039,000, the same as the 
budget estimate and $8,165,400 (3.8 percent) above the fiscal 
year 2004 enacted level.

                    COMMERCIAL SPACE TRANSPORTATION

    The Committee recommends $11,674,000 for the Office of 
Commercial Space Transportation, a reduction of $267,000 below 
the budget estimate. The Committee recommendation reflects the 
House-passed authorization for this office, which freezes 
funding at the fiscal year 2004 enacted level. The Committee's 
recommendation also reflects the fact that this office has had 
problems obligating funds in a timely manner in past years, and 
that the number of FAA-licensed launches remained flat in 
fiscal year 2003, the last full year for which actual data are 
available.

                           FINANCIAL SERVICES

    The Committee recommends $50,624,000, a reduction of 
$3,000,000 below the budget estimate. The Committee 
recommendation does not include the requested increase of 
$3,000,000 for additional staffing in the office of budget. The 
Committee believes the office can meet its requirements by re-
prioritizing its activities in accord with the Administrator's 
corporate goals without additional staff, and notes that 
Financial Services had 10 positions vacant at the time of the 
Committee's budget hearing this year. Hearing data indicates 
that Financial Services has 56 positions which are classified 
as either ``executive or management'', ``management and program 
analyst'', ``budget analyst'', or ``fiscal specialist''. The 
Committee believes this number of positions is sufficient to 
manage the current workload, even if it requires reallocation 
of positions within the Financial Services organizational 
structure.

                            HUMAN RESOURCES

    The Committee recommends $69,821,600, a reduction of 
$8,838,400 below the budget estimate. The reduction reflects 
the internal realignment of certain activities to region and 
center operations, as previously discussed.
    Worker's compensation.--Last year, the Committee expressed 
concern over FAA's high payments under the worker's 
compensation program. The Committee is pleased that, due to 
greater priority and focus on this issue by top management, the 
increases in worker's compensation costs are beginning to 
moderate. A pilot ``return to work'' project by the FAA 
Southern Region this year resulted in 35 of 75 reviewed cases 
either being transitioned to disability retirement or being 
offered other employment by the agency. Because of its success, 
this effort is now being expanded to FAA's two centers and the 
other regional offices, which should lead to further savings in 
chargeback year 2005.

                      REGION AND CENTER OPERATIONS

    The Committee recommends $149,569,800 for region and center 
operations. The increase of $61,090,800 reflects the 
realignment of activities to this budget activity, as 
previously discussed.

                             STAFF OFFICES

    The Committee recommends $139,302,000 for staff offices, a 
reduction of $270,454,000 below the budget estimate. The 
recommendation reflects restoration of offices proposed for 
consolidation in the President's budget ($259,017,000) and 
transfer of the Office of System Safety to Aviation Regulation 
and Certification 
(-$11,437,000).

                          INFORMATION SERVICES

    The Committee recommends $38,254,000 for information 
services, which is the same as the budget estimate and 
$8,849,036 above the fiscal year 2004 enacted level. The 
additional resources are required to address information 
security requirements.

                        ACCOUNTWIDE ADJUSTMENTS

    Working capital fund costs.--The recommendation allows 
$24,857,000 for working capital fund costs, a reduction of 
$5,796,000 below the budget estimate and an increase of 
$6,689,000 above the fiscal year 2004 enacted level.
    Official time productivity savings.--Despite the 
Committee's strong encouragement last year, the Committee has 
seen no evidence that FAA has taken effective steps to bring 
official time expenditures closer to the government-wide 
average. Clearly, FAA is heavily unionized, and therefore has a 
significant need for total hours of official time compared to 
many other federal agencies. However, this does not explain why 
FAA would require three times the amount of official time per 
bargaining unit employee as the government-wide average. It 
does not explain why FAA's time per employee has increased by 
over 140 percent in the past 5 years, compared to the 
government-wide increase of only 5 percent. In fact, FAA has 90 
employees who perform no duties for the government other than 
activities related to official time. The Committee recommends a 
reduction of $7,000,000, and assumes the agency will be able to 
achieve these savings through a more aggressive review of its 
official time practices. The Committee encourages FAA to work 
with the Office of Personnel Management to find ways to bring 
its practices more in line with other federal agencies.
    Unfilled executive positions.--The Committee recommends a 
reduction of $1,000,000, reflecting the unfilled roster of 16 
executive positions in the agency, including 8 which were not 
under active recruitment at the time of the Committee's budget 
hearing this year. Past hearing records indicate that, at any 
given time, the agency is likely to have between 10 and 20 
unfilled executive positions. For an agency with 176 executive 
positions, this level of openings may not be problematic. 
However, it does indicate excess costs are being budgeted for 
positions which are not likely to be filled in the entirety of 
the fiscal year.
    Bureau of Transportation Statistics studies.--The Committee 
denies the $2,000,000 requested for aviation statistical 
studies to be conducted by FHWA's Bureau of Transportation 
Statistics. It is not clear to the Committee how these studies 
will be relevant to FAA's mission.
    Executive training.--The Committee denies FAA's proposed 
increase for executive training and development, a reduction of 
$3,000,000 below the budget estimate, due to budget constraints 
and higher priority needs.
    Personnel compensation and benefits.--The recommendation 
includes a reduction of $16,000,000 in agency-wide personnel 
compensation and benefits costs due to budget constraints.

                             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 2005.
    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 2004.
    Aeronautical charting and cartography.--The bill maintains 
the provision which prohibits funds in this Act from being used 
to conduct aeronautical charting and cartography (AC&C) 
activities through the working capital fund (WCF). Public Law 
106-181 authorized the transfer of these activities from the 
Department of Commerce to the FAA, a move which the Committee 
supported. The Committee believes this work should continue to 
be conducted by the FAA, and not administratively delegated to 
the WCF.
    Store gift cards and gift certificates.--The bill maintains 
the limitation in effect for fiscal year 2004 prohibiting FAA 
from using funds to purchase store gift cards or gift 
certificates through a government-issued credit card. This 
provision responds to abuses documented by the U.S. General 
Accounting Office last year.

                        FACILITIES AND EQUIPMENT

                    (AIRPORT AND AIRWAY TRUST FUND)




Appropriation, fiscal year 2004.......................    $2,892,831,000
Budget request, fiscal year 2005......................     2,500,000,000
Recommended in the bill...............................     2,500,000,000
Bill compared with:
    Appropriation, fiscal year 2004...................      -392,831,000
    Budget request, fiscal year 2005..................  ................


    The Facilities and Equipment (F&E) account is the principal 
means for modernizing and improving air traffic control and 
airway facilities. The appropriation 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 $2,500,000,000 
for this program, a decrease of $392,831,000 (13.5 percent) 
below the level provided for fiscal year 2004 and the same as 
the budget estimate. The bill provides that of the total amount 
recommended, $2,056,300,000 is available for obligation until 
September 30, 2007, and $443,700,000 (the amount for personnel 
and related expenses) is available until September 30, 2006. 
These obligation availabilities are consistent with past 
appropriations Acts and the same as the budget request.

                          BUDGET PRESENTATION

    The Committee has returned the fiscal year 2005 budget 
presentation to the structure followed through fiscal year 
2002. Beginning in fiscal year 2003, the Administration 
proposed an entirely new budget structure for this account. 
After testing this structure for the past two years, the 
Committee finds that it is inferior to the previous structure 
because it depends on overlapping budget categories and 
subjective judgments among agency officials concerning a 
program's predominant purpose. In addition, it more easily 
obscures when a program is transitioning from development to 
production or implementation, among other things making it 
easier for the agency to use production funds to cover 
developmental cost overruns with little scrutiny. The Committee 
intends to continue the organizational structure as specified 
in this bill. To avoid confusion, the Committee encourages the 
agency to follow this organization in future budget requests.

                            BUDGET TRANSFER

    The Committee rejects FAA's proposal to begin transferring 
responsibility for certain navigational aids and landing 
systems to the nation's airports through the Grants-in-Aid for 
Airports program. The Committee is simply reaffirming a 
position taken a few years ago, when the agency was under 
budgetary pressure and a similar proposal was made. FAA is in a 
partnership with the nation's airports, and is responsible for 
providing navigation and landing services. This implies not 
only the people who conduct those activities, but the equipment 
necessary to accomplish that mission. The AIP program does not 
exist to supplement FAA's capital budget. Rather, it exists to 
provide financial assistance to airports to help them meet 
their own development needs.
    The following table compares the fiscal year 2005 budget 
estimate to the Committee recommendation for each of the 
projects funded by this appropriation:

                        FACILITIES AND EQUIPMENT
------------------------------------------------------------------------
 Budget line                          Fiscal year 2005      Committee
     item           Program name          estimate         recommended
------------------------------------------------------------------------
               Engineering
                Development, Test
                and Evaluation:
1A01           Advanced Technology         $37,300,000       $42,400,000
                Development &
                Prototyping.
1A02           Safe Flight 21.......        40,454,000        40,454,000
1A03           Aeronautical Data             4,000,000         4,000,000
                Link (ADL)
                Applications.
1A04           Next Generation VHF          31,950,000        31,950,000
                Air/Ground
                Communications
                System (NEXCOM).
1A06           Free Flight Phase 2..        92,500,000        92,500,000
1A07           Louisville, KY                    - - -         3,000,000
                technology
                demonstration.
1A09           NAS Improvement of            1,000,000         1,000,000
                System Support
                Laboratory.
1A10           Technical Center             12,000,000        12,000,000
                Facilities.
1A11           Technical Center              4,300,000         4,300,000
                Building and Plant
                Support.
                                     -----------------------------------
                     Total Activity        223,504,000       231,604,000
                1.
                                     ===================================
               Air Traffic Control
                Facilities and
                Equipment:
2A01           En Route Automation         361,200,000       361,200,000
                Program.
2A02           Next Generation               4,900,000         4,900,000
                Weather Radar
                (NEXRAD).
2A03           ATOMS Local Area/Wide         1,100,000         1,000,000
                Area Network.
2A04           Weather and Radar             4,700,000         4,700,000
                Processor (WARP).
2A05           ARTCC Building               35,000,000        35,000,000
                Improvements/Plant
                Improvements.
2A06           Voice Switching and          24,100,000        24,100,000
                Control System
                (VSCS).
2A07           Air Traffic                  57,000,000        37,500,000
                Management (ATM).
2A08           Critical                      1,300,000         1,300,000
                Telecommunication
                Support.
2A09           Air/Ground                   13,500,000        13,500,000
                Communications
                Infrastructure.
2A11           ATCBI Replacement            15,100,000        15,100,000
                (ATCBI-6).
2A12           ATC En Route Radar            3,000,000             - - -
                Facilities
                Improvements.
2A13           En Route                      1,020,800         1,020,800
                Communications and
                Control Facilities
                Improvements.
2A14           Aviation Weather              4,000,000         4,000,000
                Services
                Improvements (CIWS).
2A15           FAA                          71,150,000        56,000,000
                Telecommunications
                Infrastructure (FTI).
2A16           Guam Center Radar             2,300,000         2,300,000
                Approach Control
                (CERAP)--Relocate.
2A17           Oceanic Automation           50,850,000        50,850,000
                System.
                                     -----------------------------------
                     Subtotal--En          650,120,800       612,470,800
                Route Programs.
                                     ===================================
2B01           Airport Surface              51,300,000        51,300,000
                Detection Equipment--
                Model X (ASDE-X).
2B02           Terminal Doppler              8,000,000         8,000,000
                Weather Radar (TDWR).
2B03           Terminal Automation          21,700,000        35,000,000
                Program.
2B04           Terminal ATC                 95,100,000       112,700,000
                Facilties
                Replacement.
2B05           ATC/TRACON Facilities        55,175,800        41,068,900
                Improvement.
2B06           Terminal Voice Switch        10,200,000        10,200,000
                Replacement/Enhanced
                TVS.
2B07           NAS Facilities OSHA          25,500,000        25,500,000
                and Environmental
                Standards Compliance.
2B08           Houston Area Air             12,000,000        12,000,000
                Traffic System.
2B09           NAS Infrastructure           16,000,000        16,000,000
                Management System
                (NIMS).
2B10           ASR-9 SLEP...........        20,700,000        20,700,000
2B11           Voice Recorder                5,100,000         7,100,000
                Replacement Program
                (VRRP).
2B12           Terminal Digital            107,100,000        75,000,000
                Radar (ASR-11).
2B13           DOD/FAA Facilities            1,200,000         1,200,000
                Transfer.
2B14           Precision Runway              7,400,000         7,400,000
                Monitors.
2B15           Terminal Radar                1,073,700         1,073,700
                Improvements.
2B16           Terminal                      1,129,400         1,129,400
                Communications--Impr
                ove.
2B22           Integrated Control                - - -         3,500,000
                and Monitoring
                System.
                                     -----------------------------------
                     Subtotal--Termi       438,678,900       428,872,000
                nal Programs.
                                     ===================================
2C01           Automated Surface             7,300,000         7,800,000
                Observing System
                (ASOS).
2C02           FSAS Operational and         10,200,000         8,000,000
                Supportability
                Implementation
                System (OASIS).
2C03           Weather Message               1,000,000         1,000,000
                Switching Center
                Replacement.
2C06           Flight Service                1,300,000         1,300,000
                Station (FSS)
                Modernization.
                                     -----------------------------------
                     Subtotal--Fligh        19,800,000        18,100,000
                t Service Programs.
                                     ===================================
2D01           VOR/DME..............         2,000,000         2,000,000
2D02           Instrument Landing            5,800,000        25,000,000
                System (ILS)
                Establishment.
2D03           Transponder Landing               - - -         8,400,000
                System (TLS).
2D05           Runway Visual Range..         1,400,000         1,400,000
2D07           Navigation and                4,408,700         4,408,700
                Landing Aids--
                Improve.
2D08           Approach Lighting             5,000,000        17,160,000
                System Improvement
                Program (ALSIP).
2D10           DME Sustainment......         1,000,000         1,000,000
2D11           Visual Navaids (PAPI/         3,200,000         3,200,000
                REIL).
2D12           Loran-C..............             - - -        27,226,900
2D13           Instrument Approach           3,100,000         3,100,000
                Procedures
                Automation.
2D14           Navigation and                2,000,000         2,000,000
                Landing Aids Service
                Life Extension Pgm.
                                     -----------------------------------
                     Subtotal--Landi        27,908,700        94,895,600
                ng and Navigational
                Aids.
                                     ===================================
2 02           Fuel Storage Tank             3,000,000         3,000,000
                Replacement and
                Monitoring.
2 02           FAA Buildings and            11,027,600        11,027,600
                Equipment.
2 03           Electrical Power             45,000,000        45,000,000
                Systems--Sustain/
                Support.
2 03           Air Navigational Aids         2,300,000         2,300,000
                and ATC Facilities
                (Local Projects).
2 04           Aircraft Related             12,000,000        12,000,000
                Equipment Program.
2 05           Computer Aided Eng              800,000           800,000
                and Graphics (CAEG)
                Modernization.
2 06           Airport Cable Loop            4,600,000         7,100,000
                Systems--Sustained
                Support.
2 06           Programs being              228,030,000       190,000,000
                rebaselined (ITWS,
                STARS, WAAS).
                                     -----------------------------------
                     Subtotal--Other       306,757,600       271,227,600
                ATC Facilities.
                                     ===================================
                     Total Activity      1,443,266,000     1,425,566,000
                2.
                                     ===================================
               Non-ATC Facilities
                and Equipment:
3A01           NAS Management                1,000,000         1,000,000
                Automation Program
                (NASMAP).
3A02           Hazardous Materials          17,000,000        17,000,000
                Management.
3A03           Aviation Safety              12,900,000        12,900,000
                Analysis System
                (ASAS).
3A04           Logistics Support             6,000,000         6,000,000
                Systems and
                Facilities (LSSF).
3A05           Test Equipment--              3,000,000         3,000,000
                Maintenance Support
                for Replacement.
3A06           National Aviation             1,600,000         1,600,000
                Safety Data Analysis
                Center (NASDAC).
3A07           NAS Recovery                 10,000,000        10,000,000
                Communications
                (RCOM).
3A08           Facility Security            40,000,000        40,000,000
                Risk Management.
3A09           Information Security.         8,000,000         8,000,000
                                     -----------------------------------
                     Subtotal--Suppo        99,500,000        99,500,000
                rt Equipment.
                                     ===================================
3  Aeronautical Center           8,500,000         8,500,000
 B01            Infrastructure
                Modernization.
3B02           National Airspace                 - - -         6,400,000
                System (NAS)
                Training Facilities.
3B03           Distance Learning....         1,500,000         1,500,000
                                     -----------------------------------
                     Subtotal--Train        10,000,000        16,400,000
                ing Equipment &
                Facilities.
                                     ===================================
                     Total Activity        109,500,000       115,900,000
                3.
                                     ===================================
               Mission Support:
4A01           System Engineering           30,400,000        28,400,000
                and Development
                Support.
4A02           Safety Management             1,700,000             - - -
                System.
4A03           Program Support              42,600,000        42,600,000
                Leases.
4A04           Logistics Support             7,900,000         7,900,000
                Services (LSS).
4A05           Mike Monroney                14,200,000        14,200,000
                Aeronautical Center--
                Leases.
4A06           Transition                   35,000,000        35,000,000
                Engineering Support.
4A07           Frequency and                 3,600,000         6,100,000
                Spectrum Engineering.
4A08           PCS Moves............         1,530,000         1,530,000
4A09           Technical Support            43,300,000        43,300,000
                Services Contract
                (TSSC).
4A10           Resource Tracking             1,500,000         1,500,000
                Program (RTP).
4A11           Center for Advanced          84,600,000        86,000,000
                Aviation System
                Development.
4A12           NAS Aeronautical Info        13,700,000        13,700,000
                Management
                Enterprise System.
4A13           DCAA Audits..........             - - -         3,000,000
                                     -----------------------------------
                     Total Activity        280,030,000       283,230,000
                4.
                                     ===================================
               Personnel and Related
                Expenses:
5A01           Personnel and Related       443,700,000       443,700,000
                Expenses.
                                     -----------------------------------
                     Total Activity        443,700,000       443,700,000
                5.
                                     ===================================
                     Total..........     2,500,000,000     2,500,000,000
------------------------------------------------------------------------

             ENGINEERING DEVELOPMENT, TEST, AND EVALUATION

    The bill includes $231,604,000 for engineering development, 
test, and evaluation activities.
    Advanced technology development and prototyping.--The 
Committee recommends $42,400,000, to be distributed as follows:

                                                                  Amount
Runway incursion........................................      $9,100,000
Aviation system capacity improvement....................       4,000,000
Separation standards....................................       2,500,000
GA/vertical flight technology...........................       1,500,000
Operational concept validation..........................       2,000,000
NAS requirements development............................       1,500,000
Domestic RVSM...........................................       2,200,000
Safer skies.............................................       3,000,000
Lithium technologies to mitigate ASR....................       1,000,000
Phased array radar technology...........................       4,000,000
Airport research........................................       6,100,000
Fogeye..................................................       1,500,000
NAS safety assessment...................................       1,000,000
GPS anti-jam technology.................................       3,000,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total.............................................      42,400,000

    Operations-related studies and analyses.--The Committee 
believes that three elements of this budget line item are 
predominantly related to the agency's ongoing operations, 
rather than the development of new technologies. These include 
``aviation system capacity improvement'', ``operational concept 
validation'', and ``NAS requirements development''. The 
Committee reduces funding for these activities (by $2,500,000, 
$1,000,000, and $500,000, respectively) in recognition that 
operations funding can be used for these type of studies.
    Phased array radar technology.--The bill includes 
$4,000,000 to continue the collaborative effort between FAA and 
NOAA's National Severe Storms Laboratory to continue research 
and testing of phased array radar technology and to incorporate 
airport/aircraft tracking and weather information. This is 
$1,000,000 above the amount enacted for fiscal year 2004.
    Airport-related research.--Of the funds provided, 
$1,000,000 is for FAA to enter into cooperative agreements with 
non-profit research entities to conduct research to develop 
safer, more durable, more cost-effective airfield pavements.
    GPS anti-jam technology.--The Committee recommendation 
includes $3,000,000 for FAA to initiate a GPS anti-jam program 
to reduce or remove GPS system vulnerabilities.
    Airport Cooperative Research Program.--The Vision-100 
Century of Aviation Reauthorization Act authorized the 
establishment of a new Airport Cooperative Research Program, to 
be sponsored by the FAA and managed by the Transportation 
Research Board of the National Academy of Sciences. The 
Committee supports this effort, and encourages FAA to identify 
funds for the activity during fiscal year 2005.
    Louisville, KY technology demonstration.--The Committee 
recommends $3,000,000 to continue this demonstration program.

              AIR TRAFFIC CONTROL FACILITIES AND EQUIPMENT

    The Committee recommends $1,425,566,000 for programs and 
activities designed to establish, replace, modify, or otherwise 
improve air traffic control facilities and equipment.
    Air traffic management.--The Committee recommends 
$37,500,000, the same amount as provided for fiscal year 2004 
and a reduction of $19,500,000 below the budget estimate. This 
large increase has not been forecast in previous capital 
investment plans. Given declining resources for this 
appropriation, the Committee believes this new initiative 
should be deferred.
    ATC en route radar facilities.--According to the budget 
justifications, responsibility for operation and maintenance of 
FAA's long-range radar systems are being transferred to the 
Department of Defense in fiscal year 2005. Because of this, the 
FAA should not be funding improvements to this system in the 
coming year. The Committee's recommendation results in a 
reduction of $3,000,000 below the budget estimate.
    FAA telecommunications infrastructure (FTI).--The Committee 
recommendation provides a ten percent increase over the fiscal 
year 2004 enacted level due to budget constraints. The budget 
proposed a 38.9 percent increase.
    ARTS sustainment.--Today, the air route tracking system 
(ARTS) is FAA's predominant automation system at the agency's 
largest and most critical terminal radar approach control 
facilities. Both the newer Common ARTS system and the older 
ARTS systems at smaller facilities require funds for software 
and hardware upgrades to meet current safety and efficiency 
requirements. Despite the need, FAA has historically 
underfunded this activity, leading to a shortfall of over 
$100,000,000 in the past six years alone. In last year's 
budget, the Committee began an initiative to address this 
backlog. The Committee recommendation for fiscal year 2005 
continues this effort, providing $32,300,000 for ARTS 
sustainment, an increase of $13,300,000 above the budget 
estimate.
    Terminal air traffic control facilities replacement.--The 
Committee recommends $112,700,000 for the replacement of aged 
air traffic control towers. Funds shall be distributed as 
follows:
        Location                                                  Amount
Cleveland, OH...........................................      $2,025,000
Dayton, OH..............................................         975,000
Toledo, OH..............................................         975,000
Abilene, TX.............................................       1,260,000
Memphis, TN.............................................      10,200,000
Deer Valley, AZ.........................................       2,000,000
Manchester, NH..........................................       1,800,000
Addison Field, Dallas, TX...............................       1,349,375
Reno, NV................................................       3,000,000
Seattle, WA.............................................       1,300,000
Fort Wayne, IN..........................................       2,200,000
Port Columbus, OH.......................................         700,000
Billings, MT............................................       3,000,000
Savannah, GA............................................         700,000
Roanoke, VA.............................................         700,000
Merrimack, NH (Tracon)..................................         834,000
Phoenix, AZ.............................................       1,334,800
Dulles International, Chantilly, VA.....................       5,500,000
Newport News, VA........................................       2,000,000
Portland, OR (Tracon)...................................       1,000,000
Orlando, FL (Tracon)....................................       2,710,625
Pensacola, FL (Tracon)..................................       1,133,900
Huntsville, AL..........................................      11,000,000
Houston, TX.............................................      25,000,000
Jeffco Airport, CO......................................       1,000,000
McCarran International, NV..............................       1,000,000
Montgomery County Airport, TX...........................       1,222,222
North Bend Municipal, OR................................       2,000,000
Pago Pago, American Samoa...............................       3,000,000
Opa Locka Airport, FL...................................       1,000,000
Spokane International, WA...............................       1,000,000
Sacramento International, CA............................       3,000,000
Boise International, ID.................................       3,000,000
Kalamazoo/Battle Creek International, MI................       2,500,000
Palm Beach International, FL............................       5,000,000
Albert Whitted Airport, FL..............................       2,280,078
Joplin Regional Airport, MO.............................       4,000,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total.............................................     112,700,000

    Phoenix Sky Harbor International Airport, AZ.--The 
Committee expects FAA to expeditiously complete the new, fully 
functional airport traffic control tower and affiliated parking 
lot at Sky Harbor International Airport in Phoenix, Arizona on 
budget and without delay.
    Chicago air traffic control facility.--The Committee has 
not approved funding for the first phase of a new terminal ATC 
facility in Chicago, Illinois, a reduction of $5,000,000 below 
the budget request. The agency has not presented any 
documentation supporting this new project. The Committee notes 
that, in those cases where airport development requires a new 
or modified air traffic control tower, it is FAA policy that 
the airport should bear those costs. The Committee will 
consider funding for this project when additional justification 
is submitted.
    Instrument landing system establishment.--The 
recommendation includes $25,800,000 for establishment of 
instrument landing systems (ILSs) nationwide. Funding is to be 
distributed as follows:

------------------------------------------------------------------------
             Location                      Item              Amount
------------------------------------------------------------------------
Nationwide.......................  Items in the budget        $5,800,000
                                    estimate.
Middleton Municipal Airport, WI..  Purchase/install              400,000
                                    localizer and DME.
Arlington Municipal Airport, TX..  Install ILS and             2,500,000
                                    MALSR.
San Diego International, CA......  Upgrade ILS on              2,500,000
                                    runway 9.
Eugene Airport, OR...............  Install category I          1,250,000
                                    ILS with ALS,
                                    PAPI, & REILs.
Clay County Regional Airport, MO.  Install ILS and               950,000
                                    MALSR.
Orlando Executive Airport, FL....  Install ILS with            1,900,000
                                    MALSR.
Tri-County Airport, Lone Rock, WI  Install localizer,            800,000
                                    approach lights,
                                    and DME.
Swainsboro-Emanuel Airport, GA...  Install localizer,          1,145,000
                                    glideslope, and
                                    MALSR.
Sheboygan County Memorial, WI....  Purchase/install            1,000,000
                                    ILS.
Fond du Lac County Airport, WI...  Purchase and                  400,000
                                    install localizer
                                    and DME.
Saline County Airport, AR........  Purchase and                1,000,000
                                    install ILS.
Nationwide.......................  National ILS                6,155,000
                                    replacement
                                    program.
                                                       -----------------
      Total......................  ...................        25,800,000
------------------------------------------------------------------------

    ATC/Tracon facilities improvement.--The Committee 
recommends $41,068,900, a reduction of $14,106,900 below the 
budget estimate. The recommendation would reduce funding for 
STARS facility modifications due to the uncertain status of 
this program (-$8,000,000) and reduce funds for consolidation 
studies due to budget constraints (-$6,106,900).
    Voice recorder replacement program.--The Committee 
recommends $7,100,000, an increase of $2,000,000 above the 
budget estimate.
    Terminal digital radar (ASR-11).--The Committee recommends 
$75,000,000, a reduction of $32,100,000 below the budget 
estimate and the same amount as enacted for fiscal year 2004.
    Integrated control and monitoring system.--The Committee 
recommends $3,500,000 for continued procurement and 
installation of the integrated control and monitoring system 
(ICMS). FAA is currently using ICMS in Denver, Seattle, Newark, 
Minneapolis, Salt Lake City, and Phoenix. The agency's 
statement to the Committee that it has not ``validated a 
requirement'' for ICMS is curious given the widespread approval 
for use within the national airspace system. The Committee 
believes this system would offer significant benefits to other 
operational evolution plan (OEP) airports as well as others 
with substantial landing aids and lighting systems. The 
Committee expects the agency to obligate these funds within six 
months of enactment, and to install such systems at airports 
with the highest need.
    Automated surface observing system.--The recommendation 
includes $500,000 for upgrade of the automated weather sensing 
system (AWSS) at Corona Municipal Airport, CA. The Committee 
understands FAA has used fiscal year 2004 funds to install a 
similar system at Ithaca Tompkins Regional Airport, NY.
    FSAS operational and supportability implementation system 
(OASIS).--The Committee recommends $8,000,000, a reduction of 
$2,200,000. Given FAA's ongoing A-76 competition for flight 
service station activities, the Committee believes it prudent 
to proceed more slowly in this area until decisions are 
announced on who will assume modernization responsibilities in 
future years.
    Loran-C.--The Committee recommendation includes $27,226,900 
for continued modernization of the Loran-C navigation system. 
The Committee directs that none of these funds be reprogrammed 
except through the Congressional reprogramming process.
    Transponder landing system.--The recommendation includes 
$8,400,000 for the transponder landing system (TLS), to be 
distributed as follows:

        Location                                                  Amount
Fulton County Airport, IN...............................      $2,100,000
McGhee Tyson Airport, TN................................       2,100,000
Gatlinburg Pigeon Forge, TN.............................       2,100,000
Ukiah Municipal Airport, CA.............................       2,100,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total.............................................       8,400,000

    Houston area air traffic system (HAATS).--The Committee 
recommends $12,000,000, the same as the budget estimate. The 
current HAATS funding profile includes funds for installation 
of an ASR-11 surveillance radar system. The Committee directs 
that HAATS be designed and developed to provide surveillance 
radar coverage for Easterwood Airport no later than the year 
2009. The surveillance radar information will be duplicated for 
Easterwood Airport tower so aircraft with or without electronic 
identification equipment can be detected and positively 
identified prior to entering airport controlled airspace.
    Approach lighting system improvement program.--The 
recommendation includes $17,160,000 for the approach lighting 
system improvement program (ALSIP), to be distributed as 
follows:

------------------------------------------------------------------------
             Location                      Item              Amount
------------------------------------------------------------------------
Nationwide.......................  Items in budget            $5,000,000
                                    estimate.
North Las Vegas Airport, NV......  Runway end                    500,000
                                    identification
                                    lights (REILs).
Nationwide.......................  ALSIP nationwide            5,000,000
                                    program.
Herbert Smart Airport, GA........  Precision approach            300,000
                                    path indicators.
Washington County Airport, PA....  Design/install              1,000,000
                                    approach lighting
                                    system.
Mena Intermountain Airport, AR...  Install PAPI.......           360,000
Nationwide.......................  MALSR nationwide            5,000,000
                                    program.
                                                       -----------------
      Total......................  ...................        17,160,000
------------------------------------------------------------------------

    Medium-intensity approach lighting system replacement 
(MALSR).--The Committee provides $5,000,000 for the MALSR 
nationwide program, and recommends that FAA continue to procure 
the latest MALSR equipment that has been approved for use in 
the national airspace system and in support of small business 
initiatives.
    Cable loop systems.--The increase of $2,500,000 is for 
cable loop replacement at Atlanta Hartsfield International 
Airport, GA.
    Programs being rebaselined.--The Committee recommends 
$190,000,000 for programs being rebaselined, a reduction of 
$38,030,000 below the budget estimate. Given the uncertain 
approval status of these programs, the Committee believes a 
lower amount is justified at this time. Once the programs are 
baselined and justified in detail, the Committee will consider 
additional funding.
    GPS approaches.--The Committee understands that the fiscal 
year 2005 budget request for the wide area augmentation system 
includes funds for the development of additional approaches and 
flight procedures at the nation's non-part 139 certified 
airports. The Committee supports this effort, and encourages 
the agency to maintain or increase the current level of effort 
in this area.
    Integrated terminal weather system (ITWS) prototype, Port 
Authority of New York and New Jersey.--The Committee 
understands that FAA intends to utilize $1,200,000 during 
fiscal year 2005 to continue operation of the ITWS prototype 
system by the Port Authority of New York and New Jersey. The 
Committee believes this system has provided significant benefit 
to the Authority, and should be maintained throughout the 
coming fiscal year. If the agency changes its plans, or is 
unable to finance the continuation of this system through the 
end of fiscal year 2005, the Committee expects to be notified 
in advance of the reasons for such a change.

            NON-AIR TRAFFIC CONTROL FACILITIES AND EQUIPMENT

    The Committee recommends $115,900,000 for programs to 
replace, modify, or otherwise improve facilities and equipment 
not directly related to the provision of air traffic control 
services in the national airspace system (NAS).
    NAS training facilities.--The Committee recommends 
$6,400,000 for NAS training facilities. Of the amount provided, 
$2,400,000 is to restore funding deleted in the current Capital 
Investment Plan for upgrade of infrastructure at the FAA 
Academy, and $4,000,000 is for the procurement of additional 
ATC training simulators, as discussed below.
    Air traffic control training simulators.--To upgrade their 
training capabilities, the FAA Academy has currently procured 
replacement control tower simulators under an existing Air 
Force contract. The Committee recommendation supports this 
effort, and includes $4,000,000, to be managed by the FAA 
Academy, for the procurement and installation of additional 
simulators. The deployment of these simulators, at the Academy 
or at ATC facilities in the field, is left to the discretion of 
the FAA Academy based upon projected training needs. The 
Committee believes it is imperative to shorten the training 
times for new entrant air traffic controllers to reduce 
training and overtime costs.

                            MISSION SUPPORT

    The Committee recommends $283,230,000 for mission support 
activities.
    Reprogrammings.--The Committee directs FAA not to reprogram 
any funding in this appropriation for the FAA Technical Center 
or the FAA Aeronautical Center which would be used for routine 
operations and maintenance activities, except through the 
Congressional reprogramming process. These activities are 
designated as items of special Congressional interest.
    System engineering and development support.--The 
recommendation allows an increase of 10 percent above the 
fiscal year 2004 enacted level, compared to the 17.8 percent 
increase requested.
    Safety management system.--The Committee defers this new 
project due to budget constraints and lack of justification, a 
reduction of $1,700,000 below the budget estimate.
    Frequency and spectrum engineering.--The Committee 
recommendation includes $2,500,000 for the NAS interference, 
detection, location, and mitigation (IDLM) project. This 
project will enable FAA to more effectively identify radio 
signals interfering with air traffic control functions and 
resolve them quickly. Over the past few years, FAA has recorded 
an average of over 1,500 interference events per year.
    Center for advanced systems development.--The 
recommendation provides $86,000,000 for the center for advanced 
systems development, an increase of $1,400,000 above the budget 
estimate.
    DCAA audit services.--The recommendation includes an 
additional $3,000,000 for contract audit services to be 
provided through the Defense Contract Audit Agency (DCAA). This 
is the same level as provided for fiscal year 2004. Despite the 
Committee's encouragement in past years, the agency has not 
obtained an independent DCAA review of contractor proposals and 
payment requests. In testimony last year, the DOT Inspector 
General said ``we have consistently found a lack of basic 
contract administration at every stage of contract management 
from contract award to contract closeout. For example, we found 
that government cost estimates were: prepared by FAA engineers, 
then ignored; prepared using unreliable resource and cost data; 
or, worst of all, prepared by the contractor (a conflict of 
interest). FAA is in the process of following through on its 
commitments to address this issue''. The Committee believes 
that an essential element of contracting oversight is to obtain 
expert, independent reviews by DCAA. To ensure these funds are 
utilized as Congress intends, the bill includes a provision 
making such funds available only for this purpose.

                     PERSONNEL AND RELATED EXPENSES

    The Committee recommends $443,700,000 for personnel and 
related expenses. This appropriation finances the installation 
and commissioning of new equipment and modernization of FAA 
facilities.

                             BILL LANGUAGE

    Capital investment plan.--The bill continues to require the 
submission of a five year capital investment plan.

                 Research, Engineering, and Development


                    (AIRPORT AND AIRWAY TRUST FUND)




Appropriation, fiscal year 2004.......................      $118,734,000
Budget request, fiscal year 2005......................       117,000,000
Recommended in the bill...............................       117,000,000
Bill compared with:
    Appropriation, fiscal year 2004...................        -1,734,000
    Budget request, fiscal year 2005..................  ................


    This appropriation provides funding for long-term research, 
engineering and development programs to improve the air traffic 
control system and to raise the level of aviation safety, 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 $117,000,000, a decrease of 
$1,734,000 below the fiscal year 2004 enacted level and the 
same as the President's budget request.
    A table showing the fiscal year 2004 enacted level, the 
fiscal year 2005 budget estimate, and the Committee 
recommendation follows:

                                      RESEARCH, ENGINEERING AND DEVELOPMENT
----------------------------------------------------------------------------------------------------------------
                                                            Fiscal year 2004  Fiscal year 2005      Committee
                          Program                                enacted          estimate         recommended
----------------------------------------------------------------------------------------------------------------
Improve Commercial Aviation Safety:
    Fire research and safety..............................        $9,668,000        $5,578,000        $5,578,000
    Propulsion and fuel systems...........................         6,607,000         3,672,000         3,672,000
    Advanced materials/structural safety..................         7,223,000         2,197,000         2,197,000
    Flight safety/atmospheric hazards.....................         4,568,000         4,119,000         4,119,000
    Aging aircraft........................................        20,498,000        18,351,000        18,351,000
    Aircraft catastrophic failure prevention..............           758,000         1,116,000         1,116,000
    Flightdeck safety/systems integration.................         8,344,000         8,294,000         8,294,000
    Aviation safety risk analysis.........................         7,851,000         8,640,000         8,640,000
    ATC/AF human factors..................................         8,846,000         9,467,000         9,467,000
    Aeromedical research..................................         8,830,000         6,660,000         6,600,000
    Weather research......................................        20,729,000        20,838,000        20,838,000
Improve Efficiency of the ATC System:
    Weather research......................................         2,982,000             - - -             - - -
    National plan for air transpotation...................             - - -         5,100,000         5,100,000
    Wake turbulence.......................................             - - -         2,296,000         2,296,000
Reduce Environmental Impacts:
    Environment and energy................................         7,928,000        16,008,000        16,008,000
Improve Mission Efficiency:
    System planning and resource mgmt.....................           497,000         1,275,000         1,275,000
    Technical laboratory facilities.......................         3,405,000         3,389,000         3,389,000
                                                           -----------------------------------------------------
      Total...............................................       118,734,000       117,000,000       117,000,000
----------------------------------------------------------------------------------------------------------------

    Propulsion and fuel systems.--Of the funds provided for 
propulsion and fuel systems, $500,000 is for continued research 
into technologies for modifications to existing general 
aviation piston engines to enable their safe operation using 
unleaded aviation fuel.
    Aging aircraft.--Of the funds provided for aging aircraft, 
$4,000,000 is for research and equipment at the National 
Institute for Aviation Research at Wichita State University, 
KS.
    Joint Planning and Development Office.--The bill includes 
$5,100,000, as requested, for FAA's contribution to the multi-
agency Joint Planning and Development Office (JPDO). This 
office involves the Departments of Defense, Commerce, and 
Homeland Security, FAA, and the National Aeronautics and Space 
Administration in developing a national plan for the 
transformation of air transportation. This plan is expected to 
establish a vision for the future air transportation system, 
set national aerospace goals, and provide a forum to engage 
industry and customer input. It is an advisory committee as 
defined in the Federal Advisory Committee Act.

                       GRANTS-IN-AID FOR AIRPORTS

                (LIQUIDATION OF CONTRACT AUTHORIZATION)

                      (LIMITATION ON OBLIGATIONS)

                 (RESCISSION OF CONTRACT AUTHORIZATION)

                    (AIRPORT AND AIRWAY TRUST FUND)


                                       Liquidation of
                                          contract        Limitation on
                                        authorization      obligations

Appropriation, fiscal year 2004.....    $3,379,940,000  ($3,379,940,000)
Budget request, fiscal year 2005....     2,800,000,000   (3,500,000,000)
Recommended in the bill.............     3,200,000,000   (3,993,000,000)
Bill compared with:
    Appropriation, fiscal year 2004.      -179,940,000    (+613,060,000)
    Budget request, fiscal year 2005      +400,000,000    (+493,000,000)


    The bill includes a liquidating cash appropriation of 
$3,200,000,000 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, airport program 
administration, and other authorized activities. This is 
$400,000,000 above the amount requested in the President's 
budget and $179,940,000 below the level enacted for fiscal year 
2004.

                       LIMITATION ON OBLIGATIONS

    The bill includes a limitation on obligations of 
$3,993,000,000 for fiscal year 2005. This is $493,000,000 above 
the President's budget request and $613,060,000 above the 
fiscal year 2004 level.

                          DISCRETIONARY GRANTS

    Within the overall obligation limitation in this bill, 
funding of $983,115,000 is available for discretionary grants 
to airports. Within this obligation limitation, the Committee 
directs that priority be given to grant applications involving 
further development of the following airports:

----------------------------------------------------------------------------------------------------------------
 State                       Project name                                     Project description
----------------------------------------------------------------------------------------------------------------
     AL  Roundtree Field Airport.............................  Airport improvements.
     AL  Atmore Airport......................................  Repair runway.
     AL  Montgomery Airport..................................  Renovate terminal building.
    AR   Jonesboro Regional Airport..........................  Construct on field airport rescue station and
                                                                replace runway and taxiway lighting and
                                                                fixtures.
    AR   Baxter County Regional Airport......................  Development of parallel runway.
    AR   Northwest Arkansas Regional Airport.................  Engineering, drainage, and design of parallel
                                                                taxiway.
    AR   Mena Intermountain Municipal Airport................  Install PAPI lights.
    AZ   Chandler Municipal Airport..........................  Relocation of the heliport, pursuant to the FAR
                                                                Part 150 noise study for the airport and the
                                                                approved airport master plan.
    AZ   Phoenix Sky Harbor International Airport............  Community noise reduction program; taxiway
                                                                rehabilitation.
    AZ   Williams Gateway Airport............................  Construct parallel taxiway (taxiway B) and
                                                                associated drainage, lighting and signage.
    CA   March Air Reserve Base..............................  Widening of airport taxiway area.
    CA   Castle Airport......................................  Complete tower upgrade for part 139
                                                                certification; runway improvements; airfield
                                                                signage; and various security enhancements.
    CA   Crows Landing Air Facility..........................  Repair runways.
    CA   Stockton Airport Cargo Center.......................  Various improvements.
    CA   San Bernardino International Airport................  Various infrastructure improvements, including
                                                                ongoing hangar repair, electrical supply
                                                                delivery, and runway improvements.
    CA   Southern California Logistics Airport...............  Ongoing engine runup runway infrastructure
                                                                improvements.
    CA   Nut Tree Airport....................................  Improved airport access, sealing of hangar taxi
                                                                landings, and improvements to the parking
                                                                aprons.
    CA   San Francisco International Airport.................  Perimeter security fence; electronic detection.
    CA   Schulz Airport......................................  Airport master plan; acquire land for extension
                                                                of runways.
    CA   Robert McNamara Field...............................  Various improvements.
    CO   Colorado Springs Airport............................  Provide ILS instrument approach system to runway
                                                                35R.
    DE   New Castle Airport..................................  Taxiway rehabilitation.
     FL  Gainesville Airport.................................  Phase I of runway extension project, to include
                                                                taxiway rehabilitation, airfield lighting;
                                                                fiberoptic cabling, and purchase of an aircraft
                                                                rescue and firefighting vehicle.
     FL  Immokalee Airport...................................  Resurface and repair existing runways.
     FL  Miami International Airport.........................  Runway strengthening, including adjacent
                                                                connector taxiways and paving.
     FL  Charlotte County Airport............................  Runway extension.
     FL  Fort Lauderdale-Hollywood International Airport.....  Environmental impact statements and financial
                                                                planning for automated people mover system.
     FL  Orlando International Airport.......................  Elimination of wildlife attractants project.
     FL  Orlando Executive Airport...........................  Runway 25 environmental assessment (EA), runway
                                                                safety area upgrade; precision object free area.
    GA   Worth County Regional Airport.......................  Extension of primary runway.
    GA   Augusta Regional Airport............................  Construct new passenger terminal.
    GA   Paulding County Airport.............................  Construct runway; aircraft apron; hangar space;
                                                                terminal/administration building; rotating
                                                                beacon; land acquisition; preliminary design
                                                                engineering services for airfield improvements
                                                                and site clearing for airfield improvements.
    GA   Fitzgerald Municipal Airport........................  Extend runway; precision instrument approach
                                                                equipment.
    GA   St. Marys Airport...................................  Land acquisition, runway construction, weather
                                                                instruments, fuel farm, and taxiway.
    GA   Cherokee County Airport.............................  Extension of current runway to 4,100 feet;
                                                                provide taxiway and hangar area improvements to
                                                                comply with FAA standards.
    GA   Eastman Airport.....................................  Construction of crosswind runway.
    GA   Greene County Regional Airport......................  Extend and widen runway.
    IA   Mason City Airport..................................  Bituminous overlay
    IA   Fort Dodge Airport..................................  Extend Runway 12/30 by 900 feet.
    IA   Fairfield Municipal Airport.........................  New runway and associated improvements.
     IL  Waukegan Regional Airport...........................  Environmental impact study for runway extension
                                                                project.
     IL  Aurora Municipal Airport............................  Construct runway 27 blast pad, ILS runway, and
                                                                area two general aviation apron and access
                                                                taxiway.
     IL  DuPage Airport......................................  Rehabilitate, widen, relocate, and overlay
                                                                existing parallel taxiway E, as well as taxiways
                                                                A and C.
     IL  DeKalb Taylor Municipal Airport.....................  Widen taxiway ``A'' and ``C'' from 35 feet to 50
                                                                feet.
     IL  Robinson Airport....................................  Runway widening and extension for jet runway.
     IL  Will County Regional Airport........................  Feasibility study for new airport.
    IN   New Castle Airport..................................  Reconstruct runway apron; widen runway; land
                                                                acquisition; and grade correction.
    IN   Richmond Airport....................................  Install edge lighting on runway and adjacent
                                                                taxiway.
    KS   Kansas State University Airport.....................  Apron repair; hangar door repair/replacement.
    KS   Forbes Field........................................  Reconstruction and lighting improvements to
                                                                taxiway B.
    KS   Mid-Continent Airport...............................  Implementation of Surface Movement Area/Runway
                                                                Traffic (SMART) Board Demonstration Project.
    KY   Somerset Airport....................................  Kit Cowan Road relocation.
    KY   Big Sandy Airport...................................  Begin 500 foot runway extension to a runway
                                                                landing area of 5500 feet with pavement and
                                                                surface upgrades; address animal safety and
                                                                trespassing issues.
    KY   Harlan Tucker Guthrie Airport.......................  Secure and install 10,000 feet of fencing.
    KY   Williamsburg/Whitley County Airport.................  Reimbursement for land purchases for airport
                                                                expansion.
    KY   Capital City Airport................................  Improve runway and taxiway areas.
    KY   Henderson City/County Airport.......................  Development of new terminal building.
    KY   Louisville International Airport....................  Various improvements.
      LA Bastrop-Morehouse Memorial Airport..................  Runway extension; purchase and install ILS;
                                                                acquire land for runway expansion; and address
                                                                airport hanger deficiencies.
      LA Monroe Regional Airport.............................  New terminal.
      LA Baton Rouge Airport.................................  Runway 4L drainage/safety improvements: air
                                                                carrier apron drainage, phase 1; category II
                                                                runway lighting System (category II); airfield
                                                                drainage, phase II.
      LA Lafayette Regional Airport..........................  Rehabilitation, widening, and strengthening of
                                                                taxiway bravo; safety zone improvements for
                                                                runway 4R/22L.
      LA Leesville Airport...................................  Extend runway; parallel taxiway.
      LA Houma-Terrebonne Airport............................  Upgrade runway, taxiways and apron.
      LA Lake Charles Regional Airport.......................  Various improvements, including drainage,
                                                                structure replacement, terminal apron pavement
                                                                rehabilitation; and pavement marking.
    MA   Westfield-Barnes Airport............................  Various improvements.
    MD   Baltimore-Washington International Airport..........  Runway and taxi improvements; snow removal;
                                                                master plan; environmental study.
    MD   Martin State Airport................................  Various improvements.
    ME   Frenchville Airport.................................  Construction of aircraft hangar, complete access
                                                                road; purchase and remove existing hangars.
    MI   Detroit City Airport................................  Land acquisition and construction of primary
                                                                replacement runway.
    MI   Detroit Metropolitan Airport........................  Demolition of terminal and construction of new de-
                                                                icing pad.
    MI   Detroit Metro Airport...............................  Construction of a force main to remove glycol
                                                                residue from the airfield to the City of Detroit
                                                                Treatment Facility in accordance with state and
                                                                federal guidelines; midfield expansion phase II,
                                                                including apron and taxiways, airfield
                                                                utilities, fuel hydrant system, and security
                                                                access control.
    MI   Manistee County Blacker Airport.....................  New terminal building.
    MI   Oakland County International........................  Various improvements.
    MI   Willow Run Airport..................................  Design, engineer, and construct an airport rescue
                                                                and fire fighting station.
    MI   Kellogg Airport, Battle Creek.......................  Add new parallel runway.
    MI   Pellston Regional Airport...........................  Land acquisition for perimeter access road and
                                                                new entrances; expansion of parking lots; de-
                                                                icing facility, and new entryway signage.
    MN   Marshall Municipal Airport..........................  Extend runways and upgrade lighting systems.
    MO   Farmington Missouri Airport.........................  Construct apron, partial parallel and T-hanger
                                                                taxiways.
    MO   Clay County Regional Airport........................  Installation of ILS, MALSR, and AWOS systems.
    MO   Kansas City International Airport...................  Terminal expansion.
    MS   Jackson International Airport.......................  Replacement of carrier apron; repair of
                                                                connecting taxiways.
    MS   Hawkins Field.......................................  Runway extension.
    MS   Tupelo Airport......................................  Terminal expansion and renovation.
    MT   Harve/Hill County Airport...........................  Building repairs.
    NC   Halifax-Northampton Regional Airport................  Install category I instrument landing system
                                                                (ILS), including localizer, glideslope, approach
                                                                lighting system, and related components.
    NC   Hickory Regional Airport............................  Rehabilitate main runway (6/24); renovate
                                                                passenger terminal renovations to federal
                                                                standards; apron pavement rehabilitation; runway
                                                                6/24 re-lighting.
    NC   Morganton-Lenoir Airport............................  Rehabilitate runway pavement; partial parallel
                                                                taxiway to runway 21; extend apron; partial
                                                                parallel taxiway between connectors.
    NC   Statesville Municipal Airport.......................  Runway extension, establish ILS.
    NC   Ashe County Airport.................................  Preliminary work for runway extension, including
                                                                environmental assessment and initial land
                                                                acquisition (with obstruction removal).
    NC   Mount Airy Municipal Airport........................  Runway extension, including environmental
                                                                assessment and initial land acquisition for
                                                                first phase of construction.
    NC   Rowan County Airport................................  Acquire land in the runway protection zone.
    NC   Burlington--Alamance Regional Airport...............  Site preparation for runway and taxiway.
    NC   Harnett County Airport..............................  Runway and parallel taxiway extension; apron
                                                                expansion/overlay; localizer installation.
    NC   Johnston County Airport.............................  Improve runway safety area and land acquisition
                                                                for runway protection zone and terminal area
                                                                development.
    NC   Albemarle-Stanly County Airport.....................  Runway extension; installation of perimeter
                                                                fencing; land acquisition; and site preparation
                                                                for future expansion.
    NC   Montgomery County Airport...........................  Runway extension and lighting upgrades.
    NC   Concord Regional Airport............................  Lengthening of the runway from 5,500 feet to
                                                                7,400 feet.
    NC   Richmond County Airport.............................  Extend runway, install ILS; land acquisition,
                                                                expand and improve ramp and taxiway.
    NC   Currituck County Airport............................  Expand aircraft parking apron; construct taxiway
                                                                and access road; repair existing taxiway and
                                                                apron; and install localizer/DME/outer marker.
    NC   Lumberton Municipal Airport.........................  Rehabilitate the primary runway.
    NC   Duplin County Airport...............................  Extend the primary runway and build a parallel
                                                                taxiway.
    NC   Brunswick County Airport............................  Land acquisition and runway extension.
    NC   Columbus County Airport.............................  Rehabilitate runway.
    NC   Wilmington Airport..................................  Rehabilitate runway.
    NC   Person County Airport...............................  Construct runway extension; widen existing RSA;
                                                                strengthen existing pavement; and complete the
                                                                parallel taxiway.
    NC   Burlington-Alamance Regional Airport................  Runway lengthening and strengthening.
    NC   Andrews-Murphy Airport..............................  Corporate apron expansion and land acquisition.
    ND   Hector International Airport........................  Reconstruct and shorten runway; bring RSA into
                                                                compliance.
    ND   Jamestown Airport...................................  Pavement improvements, including milling off the
                                                                current surface and resurfacing airline runway
                                                                13/31.
    NE   Central Nebraska Regional Airport...................  Pavement repair and replacement, lighting
                                                                installation.
    NM   Santa Teresa Airport................................  Extension of eastern runway and taxiway to permit
                                                                larger aircraft.
    NY   Oneonta Airport.....................................  Tree removal; repair and upgrade of hanger doors;
                                                                other facility repairs.
    NY   Ithaca Tompkins Airport.............................  Relocation of parallel taxiway to meet minimum
                                                                separation distance between runways.
    NY   Plattsburgh International Airport...................  Develop and construct new terminal.
    NY   Niagara Falls International Airport.................  Construct terminal; modifications to existing
                                                                terminal area entrance and access roadway;
                                                                expand east apron; parking.
    NY   Rochester Airport...................................  Extend runway.
    NY   Warren County Airport...............................  Refurbishment and building of hangars.
    NY   Hancock International Airport.......................  Various improvements, including funding of a
                                                                double jetbridge.
    OH   Springfield-Beckley Municipal Airport...............  Purchase development rights to land; land
                                                                acquisition.
    OH   Erie County-Plum Brook Airport......................  Initial engineering and design work to construct
                                                                airport.
    OH   Cleveland International Airport.....................  Install and operate new software to ensure
                                                                effectiveness of flight patterns to reduce
                                                                aircraft noise.
    OH   Akron-Canton Airport................................  Construction of a de-icing fluid containment
                                                                facility to collect and dispose of de-icing
                                                                fluid.
    OH   Dayton-Wright Brothers Airport......................  Acquisition of land, structures, and related
                                                                professional services to acquire land underneath
                                                                the approach to runway 20.
    OK   Duncan Industrial Park Airport......................  Construction of new terminal.
    OK   Chickasha Airport...................................  Continued funding for runway extension.
    OK   Ada Airport.........................................  Construction of new terminal.
    OK   West Woodward Airport...............................  Runway extension project involving extending
                                                                runway 17/35 five hundred feet, installing an
                                                                instrument approach, and connecting the parallel
                                                                taxiway.
    OK   Altus Quartz Mountain Regional Airport..............  Repair of runway, improvement of taxiway,
                                                                additional lengthening of the runway, drainage
                                                                improvements, perimeter fencing and controlled
                                                                access components.
    OK   Sand Springs Pogue Airport..........................  Various improvements.
    OK   Tulsa International Airport.........................  Implement recommendations in FAR part 150 study;
                                                                rehabilitation of taxilanes and taxiway; repave
                                                                taxiway; rehabilitate TIA taxilanes serving
                                                                general and business aviation areas of the
                                                                airport.
    OK   Richard L Jones Airport.............................  Construction of drainage project.
    OR   Jackson County Airport..............................  Terminal improvements.
    OR   Roberts Field.......................................  Improvements to taxiway ``C''.
    PA   Philadelphia International Airport..................  Runway extension for runway 17/35; resurfacing of
                                                                runway 9R/27L; EIS for airfield capacity
                                                                enhancement program for runway 17/35.
    PA   Quakertown Airport..................................  Widen runway; relocate taxiway.
    PA   Pittsburgh International Airport....................  Phase II of maintenance facility relocation,
                                                                including funds for site preparation and
                                                                infrastructure construction.
    PA   Arnold Palmer Regional Airport......................  Extend runway 5-25.
    PA   Jimmy Stewart Airport...............................  Runway extension.
    PA   University Park Airport.............................  Construct aircraft deicing containment facility
                                                                to allow simultaneous deicing of multiple
                                                                aircraft; design/install ILS for runway 6.
    SC   Aiken County Municipal Airport......................  Establish instrument landing system (ILS).
    SC   Dillon County Airport...............................  New airport.
    SC   Fairfield County Airport............................  Extend runway; related improvements.
    SC   Rock Hill/York County, SC Airport...................  Feasibility study for runway extension.
    SD   Highmore Airport....................................  Construction of new runway, apron, and taxiway.
    SD   Spearfish Airport...................................  Construction of new runway.
    TN   Nashville International Airport.....................  Expansion of airport rescue and fire fighting
                                                                facility; rehabilitation of runway 13/31.
    TN   John C. Tune Airport................................  Improvements to runway safety areas.
    TN   Upper Cumberland Regional Airport...................  Runway extension; parallel taxiway construction.
    TN   Memphis International Airport.......................  Design and construct service road structure.
    TN   Chattanooga Metropolitan Airport....................  Rehabilitation of taxiway ``A''.
    TX   Mid-Way Regional Airport............................  Engineering, design, and land acquisition for
                                                                runway 18-356 extension.
    TX   Montgomery County Airport...........................  Rehabilitate and lengthen secondary runway.
    TX   Denton Municipal Airport............................  Extend the current runway; realign taxiway; and
                                                                expand apron.
    TX   Alliance Airport....................................  Lengthen runway; extend taxiway; relocate FM Road
                                                                156; relocate BNSF mainline; extend Eagle
                                                                Parkway.
    TX   Edinburg Airport....................................  Design and engineering for upgrades to add cargo
                                                                capacity.
    TX   Brooks County Airport...............................  Land acquisition for runway extension.
    TX   Collin County Regional Airport......................  Engineering/design for future reconstruction/
                                                                overlay of parallel taxiway and overlay of
                                                                runway.
    TX   Littlefield Municipal Airport.......................  Refurbish main runway.
    TX   Levelland Municipal Airport.........................  Refurbish main runway.
    TX   Brownsville-South Padre Island Airport..............  Engineering costs associated with increasing the
                                                                runway length from 7,400 to 10,000 feet.
    TX   Aransas County Airport..............................  Various improvements.
    TX   Scholes International Airport.......................  Engineer/design tower relocation and improve
                                                                drainage.
    TX   A.L. Mangham, Jr. Regional Airport..................  Improvements to runway 18-36 and runway 15-33
                                                                overlays and related improvements.
    TX   Angelina County Airport.............................  Update master plan.
    UT   Logan Cache Airport.................................  Master plan development.
    VA   Virginia Highlands Airport..........................  Environmental assessment; relocation of state
                                                                route 611; design of a runway extension.
    VA   Blue Ridge Airport..................................  Land acquistion and road relocation associated
                                                                with expansion of apron.
    VA   Breaks Interstate Regional Airport..................  Complete site selection study and initiate
                                                                environmental study for new airport.
    VA   Mountain Empire Airport.............................  Update of airport master plan.
    VA   Newport News/Williamsburg International Airport.....  Aircraft parking ramp.
    WI   Dane County Regional Airport........................  Construct second phase of runway 13 safety area,
                                                                object free space. and approach surface.
    WI   Eagle River Union Airport...........................  Pave and extend existing turf crosswind runway to
                                                                3400 feet, light the runway, reconstruct and
                                                                expand existing aprons and taxiways and acquire
                                                                land for the runway extension.
    WI   Menomonie Municipal Airport.........................  Install localizer, approach lights and DME.
    WI   La Crosse Municipal Airport.........................  Construct parallel taxiway.
    WI   John F. Kennedy Memorial Airport....................  Security fencing.
    WI   L.O. Simenstad Municipal Airport....................  Reconstruct and extend primary runway to 5000
                                                                feet, construct parallel taxiway, install high
                                                                intensity runway lighting.
    WI   Rice Lake Regional Airport..........................  Acquire land, strengthen and extend primary
                                                                runway 1/19 to 500 feet, widen and extend
                                                                parallel taxiway, install high intensity runway
                                                                lighting.
    WI   Merrill Airport.....................................  Install jet A fuel facility; install fence.
    WI   Manitowoc County Airport............................  Reconstruct runway 17/35 with high intensity
                                                                lighting (HIL), precision approach path
                                                                indicator (PAPI), and construction access road
                                                                to the navaids and equipment.
    WI   Sheboygan County Memorial Airport...................  Purchase, install, own and maintain an instrument
                                                                landing system (ILS), to include a localizer
                                                                with Distance Measuring Equipment, glideslope
                                                                and locator outer marker, and approach lighting
                                                                system.
    WI   Kenosha Regional Airport............................  Develop east side hangar area, additional hangar
                                                                area on west apron, and perimeter road.
----------------------------------------------------------------------------------------------------------------

    San Diego Airport.--The Committee remains concerned that 
the San Diego Air Transportation Action Plan (ATAP) site 
selection process continues to target several active military 
installations which are unavailable for civilian use. Military 
officials have stated that these facilities are incompatible 
for joint civilian-military use, and in the case of Marine 
Corps Air Station Miramar, it is strictly prohibited by law. 
The Committee is concerned about the expenditure of limited 
federal resources to study the feasibility of sites which are 
not available, and prohibits the expenditure of funds to study 
active military installations or to influence the Department of 
Defense base closure and realignment process.

                             ADMINISTRATION

    The bill provides that, within the overall obligation 
limitation, $69,302,000 is available for administration of the 
airports program by the FAA, as requested.

                             BILL LANGUAGE

    Runway incursion prevention systems and devices.--
Consistent with the provisions of Public Law 106-181 and the 
DOT and Related Agencies Appropriations Act, 2004, the bill 
allows funds under this limitation to be used for airports to 
procure and install runway incursion prevention systems and 
devices.
    Small community air service pilot program.--The bill 
specifies that $20,000,000 of the total amount limited is 
available to continue the small community air service pilot 
program. This is the same funding level as enacted for fiscal 
year 2004. The bill further specifies that, of the funds 
provided for this program, $4,000,000 shall be set aside for 
airports that have been discontinued from the essential air 
service (EAS) program since January 1, 2001. These funds will 
help those communities address the recent loss of air service 
and potentially enable them to re-qualify for EAS service at 
some point in the future. The Committee also believes it is 
time for an independent review of the status and 
accomplishments of the small community air service pilot 
program, and directs the U.S. Government Accountability Office 
to perform such an assessment. This review should be completed 
by June 1, 2005, and provided to the House and Senate 
Committees on Appropriations.
    The Committee recommendation includes a rescission of 
contract authorization of $758,000,000. The proposed rescission 
is composed of two parts, both relating to section 107 of AIR-
21 (P.L. 106-181). This section specified that, in the event 
appropriations for the facilities and equipment program were 
less than authorized in a given fiscal year, additional 
contract authorization would automatically be made available 
for the grants-in-aid for airports program. The Committee 
understands that the legislative committees intended to provide 
flexibility in meeting the funding guarantees, by allowing the 
Appropriations Committees to meet the guarantee by providing a 
single, combined total of funding for the F&E and grants-in-aid 
programs rather than hitting the precise authorized amounts for 
each as specified in the authorization Act. Because the 
Appropriations Committees are not provided an allocation of 
budget authority for the grants-in-aid program, section 107 
provided automatic budget authority for this purpose.
    In fiscal year 2004, $265,000,000 in additional contract 
authorization was automatically made available by section 107. 
However, this amount is above the obligation limitation 
available for that year, and consequently is available for 
rescission without effect on any grants-in-aid program. In 
addition, because this bill has met the funding guarantees 
specified for aviation capital programs in the Vision-100 Act, 
the bill triggers a section 107 automatic contract 
authorization of $493,000,000, and the Congressional Budget 
Office has scored the bill with that additional amount of 
budget authority. The Committee believes that is inconsistent 
with the intent of section 107. However, in order to bring the 
bill back into the Subcommittee's 302(b) allocation for budget 
authority, a provision is included which rescinds the 
additional contract authorization.

          general provisions--federal aviation administration

    The bill retains a provision (sec. 101) requiring FAA to 
accept landing systems, lighting systems, and associated 
equipment procured by airports, subject to certain criteria.
    The bill retains, with modification, a provision (sec. 102) 
limiting the number of technical staff-years at the Center for 
Advanced Aviation Systems Development. The modification raises 
the limitation from 350 in fiscal year 2004 to 375 in fiscal 
year 2005.
    The bill retains a provision (sec. 103) prohibiting funds 
for engineering work related to an additional runway at Louis 
Armstrong International Airport in New Orleans, Louisiana.
    The bill retains a provision (sec. 104) prohibiting FAA 
from requiring airport sponsors to provide the agency ``without 
cost'' building construction, maintenance, utilities and 
expenses, or space in sponsor-owned buildings, except in the 
case of certain specified exceptions.
    The bill retains a provision (sec. 105) prohibiting funds 
to change weight restrictions or prior permission rules at 
Teterboro Airport, Teterboro, New Jersey.
    The bill includes a new provision (sec. 106) extending the 
current terms and conditions of FAA's aviation insurance 
program, commonly known as the ``war risk insurance'' program, 
for one additional year, from December 31, 2004 to December 31, 
2005. Although the underlying program is authorized until March 
2008, certain provisions including premium price caps were set 
to expire at the end of this calendar year. The Committee 
recommendation preserves the status quo under this program, a 
savings of $50,000,000 from the budget estimate. Savings accrue 
because the bill's provisions result in additional revenue from 
insurance premiums, which were assumed to be zero in the budget 
estimate for fiscal year 2005.

                     Federal Highway Administration

    The Federal Highway Administration (FHWA) provides 
financial assistance to the states to construct and improve 
roads and highways, and provides technical assistance to other 
agencies and organizations involved in road building 
activities. Title 23 and other supporting legislation provide 
authority for the various activities of the Federal Highway 
Administration. Funding is provided by contract authority, with 
program levels established by annual limitations on obligations 
in Appropriations Acts.
    The most recent long-term surface transportation 
reauthorization act, the Transportation Equity Act for the 21st 
Century (TEA-21), expired on September 30, 2003. Since that 
time, Congress has passed several short-term extension bills 
providing contract authority for FHWA. The current extension 
will expire on July 31, 2004. Because reauthorization actions 
have not yet been completed, the Committee has continued the 
fiscal year 2004 program structure and funding levels as if 
authorized through fiscal year 2005.

                 LIMITATION ON ADMINISTRATIVE EXPENSES




Limitation, fiscal year 2004..........................    ($335,612,136)
Budget request, fiscal year 2005......................     (349,594,000)
Recommended in the bill...............................     (346,000,000)
Bill compared with:
    Limitation, fiscal year 2004......................     (+10,387,846)
    Budget request, fiscal year 2005..................      (-3,594,000)


    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 Committee recommends a limitation of $346,000,000. This 
level is sufficient to fund six additional full time equivalent 
staff years (FTEs) to oversee major projects, for a total of 
2,430 FTEs. The recommended level assumes the following 
adjustments to the budget request:

Reduce funding for information technology consolidation.       -$750,000
Reduce funding for electronic government................        -100,000
Reduce funding for multidisciplinary employee program...      -1,600,000
Undistributed reduction.................................      -1,144,000

    Reductions from the budget request.--The Committee reduces 
funding for information technology consolidation (-$750,000) 
and electronic government (-$100,000) due to inadequate 
justification, and reduces the level of employee training 
(multidisciplinary employee program) by $1,600,000, which 
results in funding at the fiscal year 2003 level. An 
undistributed reduction of $1,144,000 is also included to 
control the growth of the program.
    Staff for oversight of major projects.--The Committee 
provides 6 FTEs for oversight of major projects. The Inspector 
General has recommended, and the Committee agrees, that FHWA 
needs to have better oversight of its program, specifically the 
major projects. Major projects, with a total cost of 
$10,000,000 or more, have a history of significant cost 
overruns and schedule slippage.

                 LIMITATION ON TRANSPORTATION RESEARCH

    This limitation controls spending for the transportation 
research and technology contract programs of the Federal 
Highway Administration. It includes a number of contract 
programs including intelligent transportation systems, surface 
transportation research, technology deployment, training and 
education, and university transportation research.




Limitation, fiscal year 2004..........................    ($462,500,000)
Budget request, fiscal year 2005 \1\..................             - - -
Recommended in the bill...............................     (478,000,000)
Bill compared with:
    Limitation, fiscal year 2004......................     (+15,500,000)
    Budget request, fiscal year 2005..................    (+478,000,000)


\1\ An unspecified amount for fiscal year 2005 is assumed within the
  federal-aid obligation limitation.

                        COMMITTEE RECOMMENDATION

    The recommendation includes an obligation limitation for 
transportation research of $478,000,000 for the following 
transportation research programs.

        Program                                                   Amount
Surface transportation research, development and 
    deployment program..................................    $105,000,000
Technology deployment program...........................      55,000,000
Training and education..................................      21,000,000
Bureau of transportation statistics.....................      31,000,000
ITS standards, research, operational tests and 
    development.........................................     115,000,000
ITS deployment..........................................     124,000,000
University transportation research......................      27,000,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total.............................................     478,000,000

                    SURFACE TRANSPORTATION RESEARCH

    Within the funds provided for surface transportation 
research, the Committee recommends the following:

        Program                                                   Amount
Environment, planning, and real estate..................     $17,000,000
Research and technology program support.................       8,000,000
International research..................................         500,000
Structures..............................................      15,000,000
Safety..................................................      12,000,000
Operations..............................................      13,000,000
Asset management........................................       2,500,000
Pavements research......................................      16,250,000
Policy research.........................................       9,000,000
Long-term pavement project..............................      10,000,000
Advanced research.......................................       1,000,000
R&D strategic planning/performance measures.............         750,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total.............................................     105,000,000

    Environment, planning, and real estate research.--The 
environment research and technology program develops improved 
tools for assessing highway impacts on the environment; 
techniques for the avoidance, detection, and mitigation of 
those impacts and for the enhancement of the environment; and 
expertise on environmental concerns within FHWA and state and 
local transportation agencies. The planning and real estate 
research and technology program advances cost effective methods 
to evaluate transportation strategies and investments; develops 
and disseminates improved planning methods; develops more 
effective planning and data collection techniques for 
intermodal passenger and freight planning and programming; 
improves financial planning tools for use in developing 
transportation plans and programs; evaluates the 
characteristics of the National Highway System; and develops 
improved analytical tools to support metropolitan and statewide 
planning and for information and data sharing with state and 
local governments. The Committee has provided $17,000,000.
    Research and technology program support.--The Committee has 
provided $8,000,000. Funds provided under this category support 
a variety of programs, including the Transportation Research 
Board core program; the small business innovative research 
program; and marketing, publication and communication 
activities.
    International research.--The Committee has provided 
$500,000, the level authorized under TEA-21 and continued by 
the extension Acts for international research activities. FHWA 
is directed to consult the Committee before any international 
agreements are consummated that are likely to require financial 
support.
    Structures.--The structures research and technology program 
develops technologies, advanced materials and methods to 
efficiently maintain and renew the aging transportation 
infrastructure, improve existing infrastructure performance, 
and enable efficient infrastructure response and quick recovery 
after major disasters. The committee has provided $15,000,000 
for structures research. Funds provided will help FHWA make 
progress towards its performance goal to reduce deficiencies on 
NHS bridges as well as reduce deficiencies on all bridges. This 
funding will ensure continued progress on high performance 
materials and engineering applications to efficiently design, 
repair, rehabilitate, and retrofit bridges.
    Safety.--The safety research and technology program 
develops engineering practices, analysis tools, equipment, 
roadside hardware, and safety promotion and public information 
that will significantly contribute to the reduction of highway 
fatalities and injuries. The Committee has provided $12,000,000 
for safety research programs.
    Operations and asset management.--The Committee has 
provided $15,500,000 for operations research and asset 
management. The highway operations research program is designed 
to develop, deliver, and deploy advanced technologies and 
administrative methods to provide pavement and bridge 
durability, and to reduce construction and maintenance-related 
user delays. Funds provided under this category support a 
variety of research projects seeking to improve highway 
operations, including work to improve the manual on uniform 
traffic control devices, work zone operations, technologies 
that facilitate operational responses to changes in weather 
conditions, and freight management operations.
    The Committee has not included any funds for statistical 
analysis of the National Quality Initiative under any FHWA 
research program. Such analysis shall be performed by the 
Bureau of Transportation Statistics.
    Pavements research.--The pavement research and technology 
program identifies engineering practices, analytic tools, 
equipment, roadside hardware, and safety promotion and public 
information that will significantly contribute to the reduction 
of highway fatalities and injuries. Activities include work on 
asphalt, Portland cement concrete pavements, and recycled 
materials. The Committee has provided $16,250,000 for pavement 
research. Pavement research amounts, along with the $10,000,000 
provided for long-term pavement performance, will allow FHWA to 
undertake research projects to improve the nation's 
infrastructure.
    Policy research.--The policy research and technology 
program supports FHWA policy analysis and development, 
strategic planning, and technology development through research 
in data collection, management and dissemination; highway 
financing, investment analysis, and performance measurement; 
and enhancement of highway program contributions to economic 
productivity, efficiency, and other national goals. The 
Committee has provided $9,000,000 for policy research.

                  BUREAU OF TRANSPORTATION STATISTICS

    Under the FHWA appropriation, the accompanying bill 
provides $31,000,000 for the Bureau of Transportation 
Statistics (BTS), the amount authorized in TEA-21 and continued 
by the extension Acts. The Committee does not provide 
additional amounts requested from the Airport and Airway Trust 
Fund. The Committee notes that BTS has undergone significant 
increases in staffing since 1993, the year BTS was established. 
In fiscal year 1993, on-board positions totaled 5, in 2001 
total staff stood at 101. Concern about these staff increases 
in general, but particularly when the staffing level exceeded 
the budget request to Congress, led the Committee to limit BTS 
staff to a total of 136 in fiscal years 2003 and 2004. The 
Committee continues this limitation in fiscal year 2005.

       ITS STANDARDS, RESEARCH, OPERATIONAL TESTS AND DEVELOPMENT

    The Committee recommends the $115,000,000 provided in TEA-
21 for ITS research be allocated in the following manner:

                                                                  Amount
Research and development................................     $52,000,000
Operational tests.......................................      13,500,000
Evaluation..............................................       8,000,000
Architecture and standards..............................      18,000,000
Integration.............................................      12,000,000
Program support.........................................      11,500,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total.............................................     115,000,000

    Joint Program Office.--In the early 1990s, the 
Appropriations Committees expressed strong support for the 
formulation of a Joint Program Office (JPO) within the DOT to 
oversee the federal role in the national Intelligent 
Transportation System (ITS) effort. This office, which is 
located within the Federal Highway Administration, now provides 
overall program direction and budget coordination among the 
multiple DOT offices conducting ITS activities. The Committee 
believes the JPO has successfully managed the ITS program. For 
example, the JPO's close association with FHWA's research, 
headquarters staff, and regional offices has ensured a unified 
approach to providing training, implementation and testing of 
standards, and adherence to a national systems architecture. 
The Committee maintains that the JPO's positive working 
relationship with the FMCSA and FTA has facilitated progress in 
advancement of technologies and the deployment of systems.
    The appropriation for ITS provided herein is predicated on 
the continuation of the JPO conducting the functions identified 
previously. Maximum efficiencies are most likely to be obtained 
by retaining the current administrative structure of the JPO 
within the FHWA with a reporting function to the Deputy 
Secretary. If there is any change in the administrative 
structure or responsibilities of the JPO, the Secretary is 
directed to inform the House and Senate Committees on 
Appropriations and to justify in detail such changes.

                          FEDERAL-AID HIGHWAYS

                (LIQUIDATION OF CONTRACT AUTHORIZATION)

                      (LIMITATION ON OBLIGATIONS)

                (LIQUIDATION OF CONTRACT AUTHORIZATION)

                          (HIGHWAY TRUST FUND)


                                   Liquidation of
                                      contract          Limitation on
                                   authorization         obligations

Appropriation, fiscal year          $34,000,000,000    ($33,643,326,300)
 2004.........................
Budget request, fiscal year          34,000,000,000     (33,643,326,300)
 2005.........................
Recommended in the bill.......       35,000,000,000     (34,641,000,000)
Bill compared with:             ...................  ...................
  Appropriation, fiscal year         +1,000,000,000       (+997,673,700)
 2004.........................
  Budget request, fiscal year        +1,000,000,000       (+997,673,700)
 2005.........................


    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 958,000 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.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a liquidating cash appropriation 
of $35,000,000,000. This is the required amount to pay the 
outstanding obligations of the various highway programs at 
levels provided in this Act and prior appropriations Acts.
    The accompanying bill includes language limiting fiscal 
year 2005 federal-aid highways obligations to $34,641,000,000, 
an increase of $997,673,700 from the fiscal year 2004 enacted 
level and the budget request.

               FEDERAL-AID HIGHWAYS ESTIMATED OBLIGATIONS

    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 
categories of federal-aid spending. The following table 
indicates estimated obligations by state within the 
$34,641,000,000 provided by this Act:

                                     ESTIMATED FY 2005 OBLIGATION LIMITATION
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                Estimated FY                      Appalachian
                    State                       2005 formula   FY 2005 minimum    development         Total
                                                 limitation       guarantee         highways
----------------------------------------------------------------------------------------------------------------
Alabama.....................................         $532,474          $37,131          $48,986         $618,590
Alaska......................................          263,849           64,273                0          328,122
Arizona.....................................          504,343           50,133                0          554,475
Arkansas....................................          371,145           26,175                0          397,320
California..................................        2,825,400          151,288                0        2,976,688
Colorado....................................          396,138           22,202                0          418,340
Connecticut.................................          400,037           46,828                0          446,864
Delaware....................................          134,736            8,554                0          143,290
District of Columbia........................          132,135              339                0          132,474
Florida.....................................        1,338,903          167,866                0        1,506,768
Georgia.....................................          982,479          104,328           19,340        1,106,147
Hawaii......................................          152,397           10,390                0          162,787
Idaho.......................................          206,372           19,527                0          225,898
Illinois....................................        1,029,186           38,554                0        1,067,740
Indiana.....................................          645,653           60,665                0          706,318
Iowa........................................          374,644           10,787                0          385,431
Kansas......................................          365,569            9,808                0          375,377
Kentucky....................................          477,635           27,132           45,099          549,865
Louisiana...................................          460,136           26,899                0          487,035
Maine.......................................          160,936            8,153                0          169,089
Maryland....................................          495,909           26,245            7,751          529,904
Massachusetts...............................          576,801           20,202                0          597,003
Michigan....................................          909,211           66,576                0          975,788
Minnesota...................................          442,389           16,199                0          458,588
Mississippi.................................          358,305           17,603            5,415          381,323
Missouri....................................          694,603           31,034                0          725,636
Montana.....................................          266,539           32,823                0          299,363
Nebraska....................................          253,316            6,888                0          260,204
Nevada......................................          211,605           17,938                0          229,543
New Hampshire...............................          149,041            9,382                0          158,423
New Jersey..................................          813,296           38,156                0          851,451
New Mexico..................................          279,474           20,945                0          300,419
New York....................................        1,474,617           89,817           10,540        1,574,973
North Carolina..............................          784,369           70,216           28,653          883,238
North Dakota................................          199,628           10,635                0          210,263
Ohio........................................          985,141           59,262           21,852        1,066,256
Oklahoma....................................          491,146           13,770                0          504,916
Oregon......................................          353,633           16,428                0          370,061
Pennsylvania................................        1,318,241           59,080          121,302        1,498,623
Rhode Island................................          180,702           10,627                0          191,329
South Carolina..............................          473,352           44,185            2,330          519,868
South Dakota................................          206,695           13,134                0          219,829
Tennessee...................................          592,157           36,330           54,056          682,542
Texas.......................................        2,287,137          221,437                0        2,508,574
Utah........................................          242,166            7,665                0          249,831
Vermont.....................................          142,562            5,778                0          148,339
Virginia....................................          721,615           55,530           11,316          788,461
Washington..................................          545,861           19,370                0          565,231
West Virginia...............................          240,112            9,781           67,059          316,952
Wisconsin...................................          557,546           54,099                0          611,646
Wyoming.....................................          211,445            7,834                0          219,279
                                             -------------------------------------------------------------------
      Subtotal..............................       29,212,776        2,000,000          443,700       31,656,476
Allocation Reserve..........................  ...............  ...............  ...............        2,984,524
                                             -------------------------------------------------------------------
      Total.................................  ...............  ...............  ...............       34,641,000
----------------------------------------------------------------------------------------------------------------

    Federal-aid highways funds are made available through the 
following major programs:

                        FEDERAL-AID HIGHWAYS ESTIMATED OBLIGATION LIMITATION BY PROGRAMS
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                   FY 2003        FY 2004 Est.     FY 2005 Est.
                           Programs                               Limitation       Limitation       Limitation
----------------------------------------------------------------------------------------------------------------
Subject to limitation:
    Surface Transportation Program...........................       $6,926,449       $7,353,128       $8,595,933
    National Highway System..................................        5,919,355        6,262,224        7,341,075
    Interstate Maintenance...................................        4,847,219        5,062,396        6,010,339
    Bridge Program...........................................        4,141,748        4,349,337        5,161,869
    Congestion Mitigation and Air Quality Improvement........        1,689,819        1,793,217        2,103,561
    Minimum Guarantee........................................        2,000,000        2,000,000        2,000,000
    Safety Incentive Grants for Use of Seat Belts............          100,145          105,327          110,432
    ITS Standards, Research and Development..................           98,357          103,446          108,460
    ITS Deployment...........................................          109,086          114,731          120,292
    Transportation Research..................................          208,880          217,849          227,707
    Federal Lands Highways...................................          772,919          663,936          696,116
    National Corridor Planning and Coordinated Border                  377,313          131,659          138,040
     Infrastructure..........................................
    Administration...........................................      \1\ 314,071      \1\ 335,612          346,000
    Other Programs...........................................        1,538,748        2,790,573    \3\ 1,109,297
    High Priority Program....................................        1,821,583                0                0
    Woodrow Wilson Memorial Bridge (Special).................          230,467                0                0
    Transportation Infrastructure Finance and Innovation.....           50,496          122,254          128,180
    Appalachian Development Highway System...................          446,645          484,830          443,700
                                                              --------------------------------------------------
      Total Obligation Limitation \2\........................       31,593,300       31,890,519       34,641,000
                                                              ==================================================
Emergency Relief Program.....................................           78,509          159,580          100,000
Minimum Allocation/Guarantee.................................          512,861          657,253          646,301
Demonstration Projects.......................................          128,277          126,187           88,331
                                                              --------------------------------------------------
      Total Exempt Programs, Estimated Obligations...........          719,647          943,020          834,632
                                                              ==================================================
Emergency Relief Supplemental................................          285,248          252,119                0
                                                              ==================================================
      Grand Total, Federal-Aid Highways (Direct).............       32,598,195       33,085,658       35,475,632
----------------------------------------------------------------------------------------------------------------
\1\ Net of the .65% across-the-board reduction contained in Div. N, Sec. 601 of P.L. 108-7 for FY 2003 and net
  of the .59% across-the-board reduction contained in Div. H, Sec. 168(b) of P.L. 108-199 for FY 2004. Does not
  reflect FHWA's share of the WCF reduction.
\2\ Distribution of the obligation limitation for the core programs are estimated.
\3\ Includes carryover balances related to allocated programs.

    The Committee's recommendations are based on current law, 
under which Federal-aid highways funds are made available 
through the following major programs:
    National highway system.--The ISTEA of 1991 authorized--and 
the National Highway System Designation Act of 1995 
subsequently established--the National Highway System (NHS). 
This 163,000-mile road system serving major population centers, 
international border crossings, intermodal transportation 
facilities and major travel destinations, 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, other urban and rural principal arterials, 
the defense strategic highway network, and major strategic 
highway connectors, and is estimated to carry up to 76 percent 
of commercial truck traffic and 44 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 of the NHS is 80 percent, with an availability 
period of 4 years.
    Interstate maintenance.--The 46,567-mile Dwight D. 
Eisenhower National system of Interstate and Defense Highways 
retains a separate identity within the NHS. This program 
finances projects to rehabilitate, restore, resurface and 
reconstruct 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.
    All remaining federal funding to complete the initial 
construction of the interstate system has been provided through 
previous highway legislation. TEA-21 and the extension Acts 
provide flexibility to states in fully utilizing remaining 
unobligated balances of prior Interstate construction 
authorizations. States with no remaining work to complete the 
interstate system may transfer any surplus Interstate 
construction funds to their interstate maintenance program. 
States with remaining completion work on Interstate gaps or 
open-to-traffic segments may relinquish interstate construction 
fund eligibility for the work and transfer the federal share of 
the cost to their interstate maintenance program.
    Surface transportation program.--The surface transportation 
program (STP) is a 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 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 minimum guarantee 
funds under TEA-21 and the extension Acts, 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 funding, and 15 
percent of the amounts reserved for these areas may be spent on 
rural minor collectors. The federal share for the STP program 
is 80 percent with a 4-year availability period.
    Bridge replacement and rehabilitation program.--This 
program provides assistance for bridges on public roads 
including a discretionary set-aside for high cost bridges and 
for the seismic retrofit of bridges. Fifty percent of a state's 
bridge funds may be transferred to the NHS or the STP, but the 
amount of any such transfer is deducted from national bridge 
needs used in the program's apportionment formula for the 
following year.
    Congestion mitigation and air quality improvement 
program.--This program provides funds to states to improve air 
quality in non-attainment and maintenance areas. A wide range 
of transportation activities are eligible, provided DOT, after 
consultation with EPA, determines they are likely to help meet 
national ambient air quality standards. TEA-21 provides greater 
flexibility to engage public-private partnerships, and expands 
and clarifies eligibilities to include programs to reduce 
extreme cold starts, maintenance areas, and particulate matter 
(PM-10) nonattainment and maintenance areas. If a state has no 
non-attainment or maintenance areas, the funds may be used as 
if they were STP funds.
    On-road and off-road demonstration projects may be 
appropriate candidates for funding under the CMAQ program. Both 
sectors are critical for satisfying the purposes of the CMAQ 
program, including reducing regional emissions and verifying 
new mobile source control techniques.
    Federal lands highways.--This program provides funding 
through four major categories--Indian reservation roads, 
parkways and park roads, public lands highways (which 
incorporates the previous forest highways category), and 
Federally-owned public roads providing access to or within the 
National Wildlife Refuge System. TEA-21 also established a new 
program for improving deficient bridges on Indian reservation 
roads.
    Minimum guarantee.--Under TEA-21 and the extension Acts, 
after the computation of funds for major Federal-aid programs, 
additional funds are distributed to ensure that each state 
receives an additional amount based on equity considerations. 
This minimum guarantee provision ensures that each State will 
have a return of 90.5 percent on its share of contributions to 
the highway account of the Highway Trust Fund. To achieve the 
minimum guarantee each fiscal year, $2.8 billion nationally is 
available to the States as though they are STP funds (except 
that requirements related to set-asides for transportation 
enhancements, safety, and sub-State allocations do not apply), 
and any remaining amounts are distributed among core highway 
programs.
    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. TEA-21 restates the 
program eligibility specifying that emergency relief (ER) funds 
can be used only for emergency repairs to restore essential 
highway traffic, to minimize the extent of damage resulting 
from a natural disaster or catastrophic failure, or to protect 
the remaining facility and make permanent repairs. If ER funds 
are exhausted, the Secretary of Transportation may borrow funds 
from other highway programs.
    Appalachian development highway system.--This program makes 
funds available to construct highways and access roads under 
section 201 of the Appalachian Regional Development Act of 
1965. Under TEA-21, funding is authorized at $450,000,000 for 
each of fiscal years 1999-2004; is available until expended; 
and distributed based on the latest available cost-to-complete 
estimate.
    National corridor planning and border infrastructure 
programs.--TEA-21 established a new national corridor planning 
and development program that provides funds for the coordinated 
planning, design, and construction of corridors of national 
significance, economic growth, and international or 
interregional trade. Allocations may be made to corridors 
identified in section 1105(c) of ISTEA and to other corridors 
using considerations identified in legislation. The coordinated 
border infrastructure program is established to improve the 
safe movement of people and goods at or across the U.S./
Canadian and U.S./Mexican borders.
    Ferry boats and ferry terminal facilities.--Section 1207 of 
TEA-21 reauthorized funding for the construction of ferry boats 
and ferry terminal facilities. TEA-21 also included a new 
requirement that $20,000,000 from each of fiscal years 1999 
through 2003 be set aside for marine highway systems that are 
part of the National Highway System for use by the states of 
Alaska, New Jersey and Washington. The extension Acts continue 
these set-asides and provide $38,000,000 for this program.
    National scenic byways program.--This program provides 
funding for roads that are designated by the Secretary of 
Transportation as All American Roads (AAR) or National Scenic 
Byways (NSB). These roads have outstanding scenic, historic, 
cultural, natural, recreational, and archaeological qualities. 
A total of $26,500,000 is available for this program.
    Transportation and community and system preservation pilot 
program.--TEA-21 established a new transportation and community 
and system preservation program that provides grants to states 
and local governments for planning, developing, and 
implementing strategies to integrate transportation and 
community and system preservation plans and practices. These 
grants may be used to improve the efficiency of the 
transportation system; reduce the impacts of transportation on 
the environment; reduce the need for costly future investments 
in public infrastructure; and provide efficient access to jobs, 
services, and centers of trade.
    Environmental streamlining.--The Committee recommendation 
includes a total of $4,000,000 in fiscal year 2004 for 
environmental streamlining initiatives within the 
administrative takedown balances. The Committee directs FHWA to 
determine the costs associated with the environmental process 
on a representative sample of projects. Analysis should include 
information on environmental costs associated with the project 
itself, such as wetlands mitigation and 4(f); costs associated 
with preparing the document; and other related costs associated 
with the time it takes to complete the environmental process.
    Inactive obligations.--This Committee has noted that 
highway investment needs far exceed available resources, and 
therefore, it is important to ensure that every transportation 
dollar is put to its highest and best use. However, a March 
2004 audit completed by the Inspector General identified 
$224,000,000 in inactive obligations in 10 states. This was the 
third such audit that identified hundreds of millions in 
inactive obligations in the states. To ensure that funds are 
not sitting idle, the Committee requires FHWA to implement the 
IG's recommendations to more aggressively review inactive 
obligations. In addition, the Committee directs the Inspector 
General to review records in 10 additional states to identify 
inactive obligations associated with completed, reduced in 
scope, or cancelled projects; and to provide the results of the 
review to the House and Senate Committees on Appropriations by 
June 1, 2005.
    Benefits of ITS.--The Committee recognizes that well 
designed intelligent transportation systems (ITS) can play a 
major role in improving highway safety, relieving traffic 
congestion, and improving the quality of life of the public. 
This is particularly true on the I-91 Corridor in western 
Massachusetts (from the Connecticut border, north to Vermont) 
where the Commonwealth has embarked on an aggressive program to 
invest in a high-speed fiber-optic network to realize these 
benefits.
    Rest needs of the motoring public.--The Committee 
encourages the Federal Highway Administration to consider 
initiatives that provide for the rest needs of the motoring 
public without jeopardizing existing small businesses.
    Performance-based outcomes.--The Committee recognizes the 
impact that performance-based outcomes can have on the road 
building industry by allowing contractors the freedom and 
flexibility to focus on quality and long term performance, and 
encourages the Department of Transportation to further explore 
their use.
    Sacramento area transportation.--The Committee is concerned 
that litigation involving the Shingle Springs Racheria in El 
Dorado County, California may cause the Sacramento area's 
metropolitan transportation plan (MTP) to fall out of 
compliance with federal clean air requirements. Such a lapse 
would result in significant transportation project delays and 
would increase costs for 160 projects in the region. The 
Committee directs the FHWA to work with the state and regional 
transportation planners to resolve this issue as quickly as 
possible.

                          FEDERAL-AID HIGHWAYS

                              (RESCISSION)




Rescission, fiscal year 2004..........................     -$207,000,000
Budget request, fiscal year 2005......................      -300,000,000
Recommended in the bill...............................      -386,000,000
Bill compared with:
    Rescission, fiscal year 2004......................      -179,000,000
    Budget request, fiscal year 2005..................       -86,000,000


    The bill rescinds $272,000,000 in contract authority 
balances from the five core programs. These resources cannot be 
obligated by the states, as they were apportioned at levels 
above annual obligation limitations. The Committee directs FHWA 
to administer the rescission by allowing each state maximum 
flexibility among the five programs in making these 
adjustments.

           GENERAL PROVISIONS--FEDERAL HIGHWAY ADMINISTRATION

    The bill includes a provision (sec. 121) that distributes 
obligation authority among Federal-aid highways programs.
    The bill includes a provision (sec. 122) that credits funds 
received by the Bureau of Transportation Statistics to the 
Federal-aid highways account.
    The bill includes a provision (sec. 123) that amends 
section 1602 of the Transportation Equity Act for the 21st 
Century to allow changes to a project in Massachusetts.
    The bill includes a provision (sec. 124) that amends P.L. 
102-143 to allow changes to projects in New Jersey.
    The bill includes a provision (sec. 125) that amends 
Section 115, division F, title I of Public Law 108-199.
    The bill includes a provision (sec. 126) that prohibits 
funds to require a state or local government to post a traffic 
control device or variable message sign, or any other type of 
traffic signs, in a language other than English, except in 
certain specified situations.
    The bill includes a provision (sec. 127) that provides 
funding for environmental streamlining activities from title 
23, section 104(a)(1)(A) ``takedown''.

              Federal Motor Carrier Safety Administration

    The primary mission of Federal Motor Carrier Safety 
Administration (FMCSA) is to improve the safety of commercial 
vehicle operations on our nation's highways. To accomplish this 
mission, the FMCSA is focused on reducing the number and 
severity of large truck crashes. Agency resources and 
activities contribute to ensuring safety in commercial vehicle 
operations through enforcement, including the use of stronger 
enforcement measures against safety violators; expedited safety 
regulation; technology innovation; improvements in information 
systems; training; and improvements to commercial driver's 
license testing, record keeping, and sanctions. To accomplish 
these activities, FMCSA works closely with federal, state, and 
local enforcement agencies, the motor carrier industry, highway 
safety organizations, and individual citizens. In addition, 
FMCSA has the responsibility to ensure that Mexican commercial 
vehicles, entering the U.S. in accordance with the North 
American Free Trade Agreement (NAFTA), meet all U.S. hazardous 
material and safety regulations.
    FMCSA's scope was expanded in fiscal year 2003 by the 
U.S.A. Patriot Act (P.L. 107-56), which called for new security 
measures. In addition, beginning in fiscal year 2002, 
Appropriations Acts (P.L. 107-87, P.L. 108-7, and P.L. 108-199) 
have funded border enforcement and safety related activities 
associated with implementation of NAFTA, and activities 
associated with permitting of hazardous materials.
    Since TEA-21 expired on September 30, 2003, Congress has 
passed a series of short-term extension bills providing funding 
for FMCSA. The current extension will expire on July 31, 2004. 
Because reauthorization actions have not yet been completed, 
the Committee has continued the fiscal year 2004 program 
structure and funding levels as if authorized through fiscal 
year 2005.
    Similar to past years, the authorization Acts leave current 
on-board personnel severely underfunded, and critical safety 
programs unauthorized and/or unfunded. TEA-21 and its 
extensions were not written to allow any adjustments for new 
national safety and programmatic needs, or even new programs 
required by the authorization Acts. This inflexibility forces 
the Committee to either irresponsibly compromise safety by 
reducing and eliminating important programs, or, as in past 
years, reduce other programs to find the necessary resources.

                          MOTOR CARRIER SAFETY

                          (HIGHWAY TRUST FUND)

                 LIMITATION ON ADMINISTRATIVE EXPENSES


                                                          Limitation on
                                                         administrative
                                                            expenses

Limitation, fiscal year 2004 \1\......................    ($175,031,187)
Budget request, fiscal year 2005......................     (265,000,000)
Recommended in the bill...............................     (248,480,000)
Bill compared with:
    Limitation, fiscal year 2004......................     (+73,448,813)
    Budget request, fiscal year 2005..................     (-16,520,000)


\1\ Does not include $64,119,450 provided under Federal Highway
  Administration appropriation.

    The motor carrier safety account provides funding for 
salaries and operating expenses and for administering motor 
carrier safety programs and motor carrier research for the 
Federal Motor Carrier Safety Administration.
    Assuming continuation of the TEA-21 authorization level 
would allow only $176,070,000 for motor carrier safety. This 
level would not fund new national safety and programmatic 
needs, such as emergent safety enforcement on our Southern 
border due to NAFTA, implementation of authorized safety 
programs and regulations, and security changes required to 
protect our nation as a result of the September 11th terrorist 
attacks. Therefore, the Committee recommends $248,480,000 for 
motor carrier safety, a reduction of $16,520,000 from the 
budget request.
    Of the total provided, $125,229,000 is for operating 
expenses and $8,500,000 is for research and technology 
initiatives. In response to recent safety and security issues, 
the Committee provides funding for grant programs under this 
limitation. This includes $33,000,000 for southern border state 
operations grants and northern border state truck inspection 
grants, $20,000,000 for state commercial driver's license (CDL) 
program improvement grants, and $16,200,000 for new entrant 
program state grants and administration. These are provided 
under the administrative account because no flexibility exists 
to fund these priorities elsewhere.
    The recommended level assumes the following adjustments to 
the budget request:

New entrant program.....................................       -$211,000
Administrative infrastructure...........................      -3,058,000
Working capital fund desktop services...................        -327,000
Research and technology.................................      -2,291,000
Information management..................................      -8,974,000
Regulatory development..................................        -143,000
Education and outreach..................................      -1,513,000
Telephone hotline.......................................          -3,000

    A discussion of programs and funding levels follow:
    New entrant program.--The interim final rule for the new 
entrant safety assurance process was published on May 13, 2002, 
with an effective date of January 2003. This rule requires all 
new entrants to pass a safety audit within the first 18 months 
of operations in order to receive permanent DOT registration. 
This Committee provides a total of $33,200,000 in this program, 
of which $16,200,000 is funded within the motor carrier safety 
account, and $17,000,000 is within the national motor carrier 
safety program.
    This Committee provided funding for this program for the 
first time in fiscal year 2004. In less than one year, 44 
states have implemented a state new entrant program. According 
to FMCSA, an additional four states plan on limited 
implementation in fiscal year 2005. Consistent with this 
success, the Committee continues the program structure that 
limits federal responsibility to program oversight and to 
respond to the rare case where a state does not have the 
authority or ability to implement the program by managing third 
party contracts.
    Therefore, the Committee denies the request of 20 federal 
FTE for the new entrant program. Because the Committee has not 
received the report regarding use of new entrant funds 
requested last year, a total of $2,000,000 is provided for 
federal responsibilities associated with the new entrant 
program. In addition, the Committee limits the number of 
federal employees associated with this program to 5.5 FTE, or 
if lower, the current number of personnel on-board. The 
remaining $14,200,000 provided under this account shall be 
provided to states to hire safety auditors and contract 
personnel as needed.
    Administrative infrastructure.--The Committee provides a 
total of $7,500,000 to augment its current administrative 
infrastructure. This level is $541,000 over the fiscal year 
2004 level. The Committee makes a reduction from the request in 
order to control the growth of this program.
    Working capital fund (WCF) desktop services.--The Committee 
provides $650,000 for WCF desktop services, a reduction of 
$327,000. The Committee has not received adequate justification 
from the Department regarding its information technology 
consolidation request.
    Research and technology.--The Committee provides $8,500,000 
for research and technology, a reduction of $2,291,000 from the 
budget request and $1,541,000 over the fiscal year 2004 level. 
Of the amount provided, $500,000 is for testing and evaluation 
of a radiation detection device.
    Information management.--The Committee provides $17,000,000 
for information management, an increase over last year, but 
$8,974,000 lower than the budget request.
    Regulatory development.--The Committee provides $11,000,000 
for regulatory development, $143,000 below the budget request. 
This level represents an increase of $1,556,000 from the fiscal 
year 2004 enacted level.
    Education and outreach.--The Committee provides $2,000,000 
for outreach and education. The $1,751,475 increase above the 
fiscal year 2004 level is required to fund new initiatives 
proposed by FMCSA that the Committee believes are important. 
Within the funding provided, $500,000 is provided for a program 
to increase the commercial motor vehicle safety belt usage rate 
from its dismal 48 percent; $100,000 is provided to continue 
the ``safety is good business'' program; $150,000 is provided 
for the new motorcoach transportation service selection, and 
$1,250,000 is provided for the household goods outreach 
program.
    Similar to last year, funding for the ``share the road 
safely'' program is provided under the National Highway Traffic 
Safety Administration (NHTSA) appropriation due to FMCSA's 
ineffective use of funds over the years for this program. 
Because this is the final year that the Committee expects NHTSA 
to manage the ``share the road safely'' program, the Committee 
directs FMCSA to provide one FTE, on detail, to NHTSA to help 
oversee the program and to help promote the program's seamless 
transition back to FMCSA in fiscal year 2006.
    For each of these initiatives and all other outreach 
initiatives, FMCSA must first develop a goal, message, and 
coherent and explicit program strategy that clearly and 
directly link FMCSA's outreach and education program 
initiatives to each program's goal. FMCSA shall provide 
information regarding the goals and strategies to the House and 
Senate Committees on Appropriations by February 10, 2005. The 
Committee encourages FMCSA to combine its outreach efforts with 
other interactions it has with motor carrier companies, such as 
security sensitivity visits, compliance reviews, and safety 
audits.
    Further, the Committee directs the U.S. Government 
Accountability Office to monitor and evaluate FMCSA's education 
and outreach programs, including the non-entrant outreach 
program, during the development and implementation phases and 
provide the House and Senate Committees on Appropriations 
several updates on the status of these programs, including 
recommendations, as sufficient planning and development 
progress is being made.
    Telephone hotline.--The Committee provides $375,000 for 
FMCSA's telephone hotline, a $3,000 reduction from the budget 
request to reflect the assumed authorization level.
    Commercial drivers license program.--The Committee includes 
$22,000,000, consistent with the budget request, for the 
commercial drivers license (CDL) program. A total of 
$20,000,000 of this funding is from the office of motor carrier 
safety and $2,000,000 is from the national motor carrier safety 
program. This funding is to support safety and security 
initiatives that improve the accuracy and completeness of 
driver conviction and disqualification data. Funding is 
necessary to meet the needs of state computer systems and data 
reporting improvements, to maintain the central depository of 
Mexican and Canadian commercial drivers license convictions, 
and to fund state compliance program reviews.
    Within the funds provided for the CDL program, FMCSA should 
continue working with the American Association of Motor Vehicle 
Administrators, the Commercial Vehicle Safety Alliance, lead 
MCSAP agencies, and licensing agencies to improve all aspects 
of the CDL program. In addition, FMCSA should consider 
sponsoring another pilot project involving law enforcement and 
driver licensing agencies to explore new and innovative ways to 
ensure that drivers who have been convicted of a disqualifying 
offense do not operate during the period of suspension or 
revocation. Finally, FMCSA should continue to support the 
judicial and prosecutorial outreach effort.
    Consistent with the IG's recommendation in an October 2003 
audit and a letter dated June 4, 2004, the Committee directs 
FMCSA to implement procedures that strengthen controls over the 
process for obtaining a commercial driver's license. 
Specifically, the IG recommends that all CDL applicants 
demonstrate that they are a U.S. citizen, a permanent legal 
resident, or are otherwise legally present in the U.S. Although 
FMCSA has completed a rulemaking requiring CDL drivers with 
hazardous material endorsements to provide proof of citizenship 
or lawful permanent residence, it has continued to delay a 
rulemaking that requires drivers applying for a CDL without a 
hazardous materials endorsement to provide similar 
documentation. The Committee is concerned that continued delay 
will result in increased risk exposure, as 70 percent of the 
CDLs issued since 1989 do not carry a hazardous material 
endorsement.
    Further, consistent with the IG's recommendation, the 
Committee directs FMCSA to consider establishing a requirement 
for social security number (SSN) verification, fingerprinting, 
or use of digital image exchange when issuing a CDL. Currently, 
40 states have established a SSN verification process. The 
Committee directs FMCSA to encourage states to apply for CDL 
grants for SSN verification, fingerprinting, or digital image 
exchange, and to educate states as to each of these system 
benefits in curtailing fraud and enhancing national security.
    Compliance reviews.--The Committee notes the negative 
effect that the implementation of the new entrant safety 
assurance program and the security site visits and security 
components of the compliance reviews adopted since the 
terrorist attacks of September 11, 2001 have taken on the 
number of compliance reviews the FMCSA has completed. The 
number has fallen from a high of 11,340 in 2001 to 8,924 in 
2002. This means that more motor carriers are operating either 
without a safety rating or with an outdated safety rating. The 
Committee expects the number of reviews to significantly 
increase as states implement the new entrant program, first 
funded in fiscal year 2004. The Committee directs FMCSA to 
submit a report to the House and Senate Committees on 
Appropriations detailing the reasons for the decline in 
compliance reviews since 2001, and including specific 
contributions and the degree of each contribution. In addition, 
the report should include descriptions of issues or policies 
that may impact the number of compliance reviews in the future, 
and a plan to overcome current problems.
    SafeStat.--The Committee directs the FMCSA to implement the 
IG's recommendations in its February 13, 2004 report, 
``Improvements Needed in the Motor Carrier Safety Status 
Measurement System.'' These recommendations are designed to 
correct the weaknesses in the ``SafeStat'' data reported by 
states and motor carriers and improve FMCSA's processes for 
correcting and disclosing data problems. The IG recommends that 
FMCSA: (1) revalidate the SafeStat model; (2) improve systems 
for correcting inaccurate data and tracking of corrective 
actions; (3) expand cautions on the internet regarding 
SafeStat's use; and (4) establish a plan to improve and ensure 
the quality of SafeStat data.
    Form M.--The Committee notes that the budget request 
transfers responsibility of form M from BTS to FMCSA. It is not 
clear to the Committee how form M is relevant to FMCSA's 
mission, therefore the request is denied.

                 NATIONAL MOTOR CARRIER SAFETY PROGRAM

                (LIQUIDATION OF CONTRACT AUTHORIZATION)

                      (LIMITATION ON OBLIGATIONS)

                          (HIGHWAY TRUST FUND)

                     (INCLUDING TRANSFER OF FUNDS)


                                       (Liquidation of
                                          contract       (Limitation on
                                       authorization)     obligations)

Appropriation, fiscal year 2004.....      $190,000,000    ($188,879,000)
Budget request, fiscal year 2005....       190,000,000     (190,000,000)
Recommended in the bill.............       190,000,000     (190,000,000)
Bill compared with:
    Appropriation, fiscal year 2004.             - - -      (+1,121,000)
    Budget request, fiscal year 2005             - - -           (- - -)


    The FMCSA's national motor carrier safety program (NMCSP) 
was authorized by TEA-21, amended by the Motor Carrier Safety 
Improvement Act of 1999, and continued into 2004 by a series of 
short-term extension Acts. This program consists of two major 
areas: the motor carrier safety assistance program (MCSAP) and 
the information systems and strategic safety initiatives 
(ISSSI) program. MCSAP provides grants and project funding to 
states to develop and implement national programs for the 
uniform enforcement of federal and state rules and regulations 
concerning motor carrier 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. ISSSI provides funds to develop and enhance 
data-related motor carrier programs.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $190,000,000 in liquidating cash 
for this program.

                       LIMITATION ON OBLIGATIONS

    The Committee recommends a limitation on obligations of 
$190,000,000 for the national motor carrier safety program. 
This is the current authorized level, and is $1,121,000 greater 
than the fiscal year 2004 enacted level.
    The Committee recommends the following allocation of funds:

                                                                  Amount
Motor carrier safety assistance program.................    $169,000,000
                    --------------------------------------------------------
                    ____________________________________________________
    Basic motor carrier safety grants...................     133,350,000
    Performance-based incentive grant program...........       7,100,000
    High-priority activities \1\........................      26,450,000
    State training and administration...................       2,100,000

Crash causation (sec. 224(f) MCSIA).....................       1,000,000
                    --------------------------------------------------------
                    ____________________________________________________
Information systems and strategic safety initiatives....      20,000,000
                    --------------------------------------------------------
                    ____________________________________________________
    Data analysis and information systems...............      14,000,000
    PRISM...............................................       5,000,000
    Driver programs (CDL grants)........................       1,000,000


\1\ Up to $17,000,000 is for the implementation of the new entrant 
program required under section 210 of MCSIA.
---------------------------------------------------------------------------

                         ELECTRONIC GOVERNMENT

                          (HIGHWAY TRUST FUND)




Appropriation, fiscal year 2004.......................  ................
Budget request, fiscal year 2005......................          $450,000
Recommended in the bill...............................  ................
Bill compared with:
    Appropriation, fiscal year 2004...................  ................
    Budget request, fiscal year 2005..................          -450,000


    The Committee has not received sufficient justification for 
the Department regarding its electronic government request. 
Therefore, the request is denied.

    GENERAL PROVISIONS--FEDERAL MOTOR CARRIER SAFETY ADMINISTRATION

    The bill includes a provision (sec. 141) subjecting funds 
appropriated in this Act to the terms and conditions of section 
350 of Public Law 107-87, including a requirement that the 
Secretary submit a report on Mexico-domiciled motor carriers.
    The bill includes a provision (sec. 142) which prohibits 
the use of funds in this Act to implement or enforce any 
provision of the final rule issued on April 16, 2003 as it 
applies to operators of utility service vehicles.
    The bill includes a provision (sec. 143) which prohibits 
the use of funds in this Act to implement or enforce any hours 
of service regulations on operators of utility service 
vehicles. It also clarifies that states are precluded from 
using FMCSA grant funds for this purpose.

             National Highway Traffic Safety Administration

    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.
    To date, the administration's current programs are 
currently authorized in five major laws: (1) the National 
Traffic and Motor Vehicle Safety Act; (2) the Highway Safety 
Act; (3) the Motor Vehicle Information and Cost Savings Act 
(MVICSA); (4) the National Driver Register; (5) the 
Transportation Equity Act for the 21st Century (TEA-21); and 
(6) the Transportation Recall Enhancement, Accountability, and 
Documentation Act (TREAD).
    The Transportation Equity Act for the 21st Century is the 
current authorization for the full range of NHTSA programs. The 
current extension of this law is scheduled to expire on July 
31, 2004. Because conference of the surface reauthorization 
legislation has not yet been completed, the Committee has 
continued the fiscal year 2004 program levels as if authorized 
through fiscal year 2005.

                        OPERATIONS AND RESEARCH




Appropriation, fiscal year 2004 \1\...................    ($224,790,000)
Budget request, fiscal year 2005......................       233,300,000
Recommended in the bill...............................       223,114,000
Bill compared with:
    Appropriation, fiscal year 2004...................        -1,676,000
    Budget request, fiscal year 2005..................       -10,186,000


\1\ Derived from the Highway Trust Fund.

                        COMMITTEE RECOMMENDATION

    The Committee recommends new budget authority and 
obligation limitations for a total program level of 
$223,114,000. Of this total, $129,514,000 is for operations and 
research from the general fund, $90,000,000 is for 23 U.S.C. 
403 activities from the highway trust fund, and $3,600,000 is 
for the national driver register. The funding shall be 
distributed as follows:

                                                                  Amount
Salaries and benefits...................................     $72,200,000
Travel..................................................       1,385,000
Operating expenses......................................      23,572,000
Contract programs:
    Safety performance (rulemaking).....................      11,183,000
    Safety assurance (enforcement)......................      18,279,000
    Highway safety programs.............................      44,465,000
    Research and analysis...............................      67,657,000
    General administration..............................         679,000
Grant administration reimbursements.....................     -16,306,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total.............................................     223,114,000

    The recommendation assumes the following major adjustments 
to the budget request:

Reduce funding for crash causation study................     -$3,200,000
Reduce funding for computer technology increase.........      -2,260,000
Increase funding for FARS data collection...............        +850,000
Increase funding for non-compliant vehicle inspectors...        +250,000
Increase funding for national EMS system................        +500,000
Reduce funding for harmonization of vehicle safety 
    standards...........................................        -203,000
Reduce funding for workforce planning...................        -427,000
Reduce funding for crash avoidance initiative...........      -5,000,000
Increase funding for share the road safely..............        +100,000

                           OPERATING EXPENSES

    Computer support.--The Committee is troubled at the 
proposed increase in fiscal year 2005 funds for NHTSA's 
information technology (IT) program. NHTSA is proposing a 50% 
increase for IT activities, more than any other program under 
the agency's jurisdiction. The Committee understands that the 
new activities that are proposed could increase customer 
support and IT security. However, under the strict fiscal 
constraints that the entire Federal Government confronts this 
year, it is imperative that NHTSA prioritize these functions to 
make the most of its critical funding. Further, to label 30% of 
these funds as a mandatory increase also concerns the 
Committee, as it is clearly not a mandatory action to increase 
funding for computer investment, unless the Congress places 
this mandatory requirement upon an agency. Therefore, not more 
than the fiscal year 2004 enacted level, $2,620,000, of funds 
provided in this Act may be used for information technology, 
computer support or E-gov activities.
    Administrative grant reimbursements.--The Committee notes 
with alarm the growing pace in which NHTSA is requesting a 
reduction from the highway safety grant programs to reimburse 
the agency for its administrative expenses. In just two years, 
NHTSA has increased this request by 64%. The Committee reminds 
NHTSA that increases to grant administration reduce the amount 
of grant funds that go to the states to improve highway safety, 
and the Committee will not allow this trend to continue. Funds 
totaling $16,306,000, the same as the fiscal year 2004 enacted 
level, are therefore provided as reimbursements to NHTSA for 
administering the grant programs.
    Harmonization of vehicle safety standards and workforce 
planning and development.--Due to budget constraints, funding 
is not provided for the harmonization of vehicle safety 
standards initiative and the workforce planning and development 
program.

                            SAFETY ASSURANCE

    Non-compliant vehicle products.--The Committee is aware 
that the United States is facing a growing number of imports of 
motor vehicle products, primarily in the lighting sector, that 
do not meet U.S. federal motor vehicle safety standards. These 
imports pose a serious risk to highway safety and to the 
American public. NHTSA has conducted only 24 compliance-related 
investigations in this area since 1999 (15 of which involved 
replacement visibility and signaling devices that were imported 
from overseas markets) and the number of existing product 
violations in the domestic market is rapidly rising. To assist 
NHTSA's ongoing enforcement actions against non-compliant 
vehicle products, the Committee believes it is necessary for 
NHTSA to hire additional staff to work exclusively in NHTSA's 
office of vehicle safety compliance. The Committee has provided 
$250,000 for an additional two full-time equivalent staff years 
in fiscal year 2005. NHTSA should move expeditiously to ensure 
that these positions are filled and shall notify both the House 
and Senate Committees on Appropriations when hiring is 
complete.

                        HIGHWAY SAFETY PROGRAMS

    Emergency medical services (EMS).--Effective EMS systems 
are necessary for post crash injury control; however local EMS 
systems vary considerably. NHTSA serves as a lead federal 
agency to ensure continual advancement of the performance of 
all EMS systems, by providing national leadership and guidance 
for systems administrators. In October 2001, the GAO published 
a report on emergency medical services that emphasized the need 
for consistent information for improving performance at the 
local level, setting and monitoring national level policy, and 
improving researchers' ability to assess EMS outcomes. NHTSA 
has helped to develop a National EMS Information System 
(NEMSIS), but the next and most important step will be 
implementation of NEMSIS. The Committee has provided $500,000 
in fiscal year 2005 for NHTSA to begin the implementation of 
this important program.
    Motorcycle-related fatalities.--There was a continuous 
decline in motorcycle crash fatalities from the mid-1980's 
through 1997. Since 1997, however, motorcycle fatalities have 
increased annually, making 2003 the sixth year in a row for an 
increase in fatalities. New and innovative ideas to approach 
this issue are urgently needed, and it is imperative that NHTSA 
focus more attention on this problem. The Committee has 
provided $744,000 under Highway Safety Programs for motorcycle 
programs. An examination of the effectiveness of motorcycle 
education should be undertaken by NHTSA in fiscal year 2005, as 
well as initial studies concerning the possibility of a 
motorcycle crash causation study.
    Share the road safely.--The Consolidated Appropriations 
Act, 2004, included a legislative provision directing that the 
share the road safely program be administered by NHTSA for 
fiscal year 2004 and prohibiting NHTSA from transferring funds 
to the Federal Motor Carrier Safety Administration for this 
program. Language was also included that encouraged NHTSA to 
work with FMCSA and state highway safety representatives to 
determine the best avenues for educating both the motoring 
public and commercial motor vehicle drivers, including 
incorporating such information in driver education courses.
    The Committee is aware that internal disputes have been on-
going between NHTSA and FMCSA about the role of each agency 
under the current structures. The Committee wants it clearly 
stated that due to NHTSA's experience in educational outreach 
issues, the Committee directs NHTSA to lead the implementation 
of this program. FMCSA must work with NHTSA to ensure that 
FMCSA is learning how NHTSA carries out their campaigns and 
must detail one position to work with NHTSA staff to assist in 
the program's implementation and to gain knowledge of NHTSA's 
educational outreach programs. Assuming FMCSA's cooperation in 
fiscal year 2005, this should be the final year that NHTSA 
would administer the program. Funding is provided for this 
program to NHTSA and the funding shall not be transferred to 
FMCSA for any reason.
    Impaired driving.--The Committee continues to be concerned 
by the lack of progress to reduce alcohol-related fatalities 
and injuries on the nation's roadways. According to NHTSA's 
2003 Early Assessment Estimates of Motor Vehicle Crashes, 
alcohol-related fatalities remained essentially unchanged from 
2002. Despite the combined efforts of federal and state safety 
officials, the 2003 data represent the sixth consecutive year 
with no discernable progress. 


     Therefore, the Committee directs the Department of 
Transportation Office of Inspector General to explore whether 
federal and state efforts to reduce alcohol-related fatalities 
and injuries could be improved. This review should compare the 
scope and direction of programs and activities conducted by 
states with the highest and lowest rates of alcohol-related 
fatalities and the highest and lowest percentages of drinking 
drivers involved in fatal crashes using a five-year average of 
fatality data. In particular, the Committee would like a review 
of: the defining characteristics that constitute an alcohol-
related crash; state and federal resources dedicated to 
reducing alcohol-impaired driving and an analysis of 
expenditures; state law enforcement efforts, including the use 
of sobriety checkpoints or other high-visibility enforcement 
methods; law enforcement officer training standards; the use of 
paid and earned media; and an overview of current state laws.
     Underage drinking.--In division E of the statement of the 
managers accompanying the Consolidated Appropriations Act, 2004 
(Public Law 108-199), the conferees expressed concern about 
underage drinking trends and the need to take immediate steps 
to better coordinate federal efforts to address this problem. 
The report also directed the Secretary of Health and Human 
Services to establish an Interagency Coordinating Committee on 
the Prevention of Underage Drinking and to issue an annual 
report summarizing all federal agency activities concerning 
this important issue. The Committee emphasizes the magnitude of 
the underage drinking issue and the importance of remaining 
active in combating it. The Committee is pleased to see NHTSA 
taking an active approach to HHS's interagency committee and 
asks NHTSA to keep both the House and Senate Committees on 
Appropriations informed of the agency's participation in the 
committee.

                          RESEARCH AND ANALYSIS

     Crash avoidance initiative.--The NHTSA budget request 
indicates an increasing emphasis on crash avoidance measures, 
particularly technologies that reduce the chances of having a 
vehicle accident or reducing the severity of a crash if it 
occurs. This emphasis is evident in a $5,000,000 request in the 
NHTSA budget proposal for a new crash avoidance initiative and 
a $126,000 increase in current crash avoidance programs. 
Unfortunately, this proposed increase lacks a detailed 
justification. Budget document statements contain broad 
generalities that lack specific details of what will actually 
be accomplished in the next fiscal year and do not substantiate 
specifically how NHTSA intends to use this research to achieve 
the stated goal of 1.0 fatalities per 100 million vehicle-miles 
traveled by 2008. This is especially troubling when programs 
like crashworthiness and highway safety face steep cuts in the 
proposed budget. It is imperative that funding is spent on 
activities that save the most lives and little information has 
been provided that these types of technologies will achieve 
this goal. There is also little information in the budget 
document regarding specific technologies the agency is 
reviewing or considering, as well as the costs and feasibility 
for the use of this technology in passenger vehicles. The 
request of $5,000,000 for the new initiative is unjustified and 
is therefore denied.
    Fatality analysis reporting system (FARS).--The Committee 
is aware that the proposed budget for the fatality analysis 
reporting system (FARS) data collection for fiscal year 2005 is 
insufficient to pay state FARS analysts for the entire data 
collection year. As a result, states will be unable to continue 
to employ well-trained staff. If this occurs, the FARS data 
collection system would be in jeopardy of not completing the 
timely and accurate database that supports all of NHTSA's 
highway safety programs. The Committee is therefore providing 
an increase of $850,000 to the base FARS program to ensure that 
sufficient funding is available to all 50 States, the District 
of Columbia, and Puerto Rico so that States will be able to 
continue uninterrupted fatal crash data collection throughout 
calendar year 2005.
     National tire efficiency.--In the statement of the 
managers accompanying the Consolidated Appropriations Act, 2004 
(Public Law 108-199), the conferees directed the Secretary of 
Transportation, through a contract with the National Academy of 
Sciences, to develop and perform a national tire fuel 
efficiency study and literature review to consider the 
relationship low rolling resistance replacement tires designed 
for use on passenger cars and light trucks have on fuel 
consumption and tire wear life. The Committee urges NHTSA to 
support this very important study.

                        OPERATIONS AND RESEARCH




Appropriation, fiscal year 2004 \1\...................    ($149,657,000)
Budget request, fiscal year 2005......................       139,300,000
Recommended in the bill...............................       129,514,000
Bill compared to:
    Appropriation, fiscal year 2004...................       -20,143,000
    Budget request, fiscal year 2005..................        -9,786,000


\1\ Derived from the Highway Trust Fund.

    The Committee recommends a total of $129,514,000 for 
operations and research funding from the general fund, which is 
$9,786,000 below the request.

                        operations and research


                (LIQUIDATION OF CONTRACT AUTHORIZATION)

                      (LIMITATION ON OBLIGATIONS)

                          (HIGHWAY TRUST FUND)




Appropriation, fiscal year 2004.......................       $71,575,000
Budget request, fiscal year 2005......................        90,000,000
Recommended in the bill...............................        90,000,000
Bill compared with:
    Appropriation, fiscal year 2004...................       +18,425,000
    Budget request, fiscal year 2005..................  ................


    The Committee recommends $90,000,000 from the highway trust 
fund for authorized activities associated with operations and 
research.

                        NATIONAL DRIVER REGISTER

                (LIQUIDATION OF CONTRACT AUTHORIZATION)

                      (LIMITATION ON OBLIGATIONS)

                          (HIGHWAY TRUST FUND)




Appropriation, fiscal year 2004.......................        $3,558,000
Budget request, fiscal year 2005......................         4,000,000
Recommended in the bill...............................         3,600,000
Bill compared to:
    Appropriation, fiscal year 2004...................           +42,000
    Budget request, fiscal year 2005..................          -400,000


    The National Driver Register Act (chapter 303 of Title 49, 
U.S.C.) provides for the operation of the national driver 
register, which facilitates the interstate exchange of driver 
licenses due to concerns regarding problem drivers whose 
licenses to drive have been suspended or revoked for cause. The 
Committee recommends $3,600,000 from the highway trust fund for 
activities associated with the national driver register.

                     HIGHWAY TRAFFIC SAFETY GRANTS

                (LIQUIDATION OF CONTRACT AUTHORIZATION)

                      (LIMITATION ON OBLIGATIONS)

                          (HIGHWAY TRUST FUND)


                                       Liquidation of
                                          contract        Limitation on
                                        authorization      obligations

Appropriation, fiscal year 2004.....      $225,000,000    ($223,673,000)
Budget request, fiscal year 2005....       456,000,000     (456,000,000)
Recommended in the bill.............       225,000,000     (225,000,000)
 Bill compared to:
    Appropriation, fiscal year 2004.  ................      (+1,327,000)
    Budget request, fiscal year 2005      -231,000,000    (-231,000,000)


     TEA-21 authorized four state grant programs: the highway 
safety program, the alcohol-impaired driving countermeasures 
grant program, the occupant protection incentive grant program, 
and the state highway safety data improvement grant program. 
The Committee recommends $225,000,000 for liquidation of 
contract authorization, which is the same as the fiscal year 
2004 level.

                       LIMITATION ON OBLIGATIONS

    As in past years, the bill includes language limiting the 
obligations to be incurred under the various highway traffic 
safety grants programs. These obligations are set in TEA-21, 
and the Committee continues this funding at its current level 
until reauthorization actions have been completed. The bill 
includes separate obligation limitations with the following 
funding allocations:

Highway safety programs.................................    $165,000,000
Occupant protection incentive grants....................      20,000,000
Alcohol-impaired driving countermeasures................      40,000,000

    The fiscal year 2005 budget submission reflected NHTSA's 
reauthorization proposal, which restructures the highway safety 
grant programs into a consolidated program, funded at the 
combined level of TEA-21 section 402, 410, 405, 411, 2003(b), 
and 163 and 157 of title 23 of the United States Code. The 
Committee has continued to fund the 157 and 163 programs at 
their authorized level, which requires $122,000,000 from the 
highway trust fund.
    Highway safety 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. The national occupant 
protection survey is also funded within this total. Language is 
included in the bill that limits funding available for federal 
grants administration from this program to $10,000,000.
    Occupant protection incentive grants.--The Committee has 
funded the section 405 occupant protection incentive grant 
program at $20,000,000. States may qualify for this grant 
program by implementing 4 of the following 6 laws and programs: 
(1) a law requiring safety belt use by all passengers in the 
vehicle; (2) a safety belt use law providing for primary 
enforcement; (3) minimum fines or penalty points for seat belt 
and child seat use law violations; (4) special traffic 
enforcement programs for occupant protection; (5) a child 
passenger protection education program; and (6) a child 
passenger protection law which requires minors to be properly 
secured. Language is included in the bill that limits funding 
available for federal grants administration from this program 
to $2,306,000.
    In addition to the occupant protection incentive grant 
program, TEA-21 established a safety incentive grant program 
(section 157) to encourage states to increase seat belt usage. 
The grant program totaled $500,000,000 over the past six fiscal 
years and, as previously stated, the Committee has extended 
this funding at its current levels. Allocations of federal 
grants require determinations of: (1) seat belt use rates and 
improvements; and (2) federal medical cost savings attributable 
to increased seat belt use. States that meet the section 157 
requirements can use funds for any purpose under title 23, 
including highway construction, highway safety, and intelligent 
transportation systems. NHTSA and FHWA are jointly 
administering this program. NHTSA will collect the state data 
and determine the allocation of funds. In addition, $10,000,000 
is to be allocated for national paid media to support national 
safety belt mobilizations under section 157. Language is 
included in the bill that limits funding available for federal 
grants administration from this program to $1,000,000.
    Alcohol-impaired driving incentive grants.--The Committee 
has funded the section 410 alcohol incentive grant program at 
$40,000,000 in fiscal year 2005. This program offers two-tiered 
basic and supplemental grants to reward states that pass new 
laws and start more effective programs to attack drunk and 
impaired driving. States may qualify for basic grants in two 
ways. First, they can become eligible by implementing 5 of the 
following 7 laws and programs: (1) administrative license 
revocation; (2) programs to prevent drivers under age 21 from 
obtaining alcoholic beverages; (3) intensive impaired driving 
law enforcement; (4) a graduated licensing law with night-time 
driving restrictions and zero tolerance; (5) programs to 
address drivers with high blood alcohol content (BAC); (6) 
young adult programs to reduce impaired driving by individuals 
ages 21-34; and (7) an effective system for increasing the rate 
of testing for BAC of drivers in fatal crashes. Second, they 
can reach eligibility by demonstrating a reduction in alcohol-
related fatality rates in each of the last three years for 
which Fatal Accident Reporting System data is available and 
demonstrating rates lower than the national average for each of 
the last three years. Supplemental grants are provided to 
states that adopt additional measures, including videotaping of 
drunk drivers by police; self-sustaining impaired driving 
programs; laws to reduce driving with suspended licenses; use 
of passive alcohol sensors by police; a system for tracking 
information on drunk drivers; and other innovative programs. 
Language is included in the bill that limits funding available 
for federal grants administration from this program to 
$2,000,000.
    In addition to the alcohol-impaired driving incentive grant 
program, TEA-21 authorized $500,000,000 in grants over six 
years for states that have enacted and are enforcing a 0.08 BAC 
law (section 163). The Committee has continued this funding for 
fiscal year 2005 at its current level. For each fiscal year in 
which a state meets this criterion, it will receive a grant in 
the same ratio in which it receives section 402 funds. States 
may use these funds for any project eligible for assistance 
under title 23 (e.g. highway construction, bridge repair, 
highway safety). This grant program encourages states to adopt 
and enforce significant anti-drunk driving legislation. In 
addition, $20,000,000 under section 163 is to be allocated for 
national paid media to support national safety belt 
mobilizations. Language is included in the bill that limits 
funding available for federal grants administration from this 
program to $1,000,000.
    Bill language.--The bill maintains 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. Language is 
also continued that limits the amount available for technical 
assistance to $500,000 under section 410.

   GENERAL PROVISIONS--NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION

    The Committee continues a provision (sec. 151) that allows 
states to use funds provided under section 402 of title 23, 
U.S.C., to produce and place highway safety public service 
messages in television, radio, cinema, print media, and on the 
internet. The provision provides that any state that uses funds 
for such purposes must submit a report to the Secretary, who in 
turn is directed to submit the reports to the House and Senate 
Committees on Appropriations. The provision allocates 
$10,000,000 for national paid media to support national safety 
belt mobilizations under section 157 and $20,000,000 under 
section 163 to include: $7,000,000 to support state impaired 
driving mobilization enforcement efforts and $12,000,000 for 
paid media to support national law enforcement mobilizations on 
impaired driving. No more than 60% of funds provided for 
impaired driving media support may go to the thirteen strategic 
states.
    The Committee includes a provision (sec. 152) that directs 
NHTSA to administer the share the road safely program for 
fiscal year 2005.

                    Federal Railroad Administration

    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 serving to rehabilitate and improve the railroad 
industry's physical plant are also administered by the FRA.

                         SAFETY AND OPERATIONS




Appropriation, fiscal year 2004.......................      $130,053,000
Budget request, fiscal year 2005......................       142,396,000
Recommended in the bill...............................       137,738,000
Bill compared with:
    Appropriation, fiscal year 2004...................        +7,685,000
    Budget request, fiscal year 2005..................        -4,658,000


    The safety and operations account provides support for 
FRA's rail safety and passenger and freight program activities. 
Funding also supports salaries and expenses and other operating 
costs related to FRA staff and programs.

                        COMMITTEE RECOMMENDATION

    A total of $137,738,000 has been allocated to safety and 
operations, which is a $7,685,000 increase from the fiscal year 
2004 enacted level. Of this total, $15,350,000 is available 
until expended. The following adjustments have been made to the 
budget request:

Deny funding for additional staffing....................     -$1,322,000
Deny funding for central training facility..............        -550,000
Deny funding for unjustified E-gov initiatives..........        -193,000
Reduce funding for track geometry vehicle...............      -2,000,000
Deny funding for fatigue study..........................        -500,000

    Staffing.--The Committee approves funding for eight 
operating practices inspectors and has included funding 
totaling $593,000 for this purpose.
    Student inspector trainee program.--Funding for sixteen 
student inspector trainees is requested for recruitment and 
succession planning. The Committee denies funding for the 
trainee program, as it is not fiscally justifiable at this 
time.
    E-gov.--The Committee denies funding for E-gov initiatives 
initiated by the Office of the Secretary for lack of adequate 
justification.
    Budget justifications.--The Committee has stated that it is 
troubled by the serious decline in the quality of budget 
justification material. However, the Committee must note that 
the Federal Railroad Administration, while including a hundred 
pages of text regarding performance achievements and goals, has 
continued to provide breakouts of requested funds by office and 
activity. The Committee commends FRA for continuing to provide 
the Committee with justification for their budgetary needs in 
an appropriate format.
    Intermodal Transportation Center at Union Station.--The 
Committee is aware of the current venture for proposed 
improvements to the Intermodal Transportation Center (ITC) at 
Union Station. The modernization of the ITC is to be undertaken 
in conjunction with the Congressionally-mandated development of 
the air rights above the rail yard at Union Station. The 
winning bidder for the air rights purchase was selected and the 
project has been delayed for nearly two years by protracted 
negotiations related to the sale. It is the Committee's 
understanding that the Federal Railroad Administration, with 
its fiduciary responsibility for Union Station, has been 
working for the past year to resolve the issues among the 
parties, and that some progress has been made to that end. The 
Committee appreciates the efforts of all involved parties to 
resolve this matter and encourages these parties to continue 
working to arrive at a fair solution as expeditiously as 
possible.

                   RAILROAD RESEARCH AND DEVELOPMENT




Appropriation, fiscal year 2004.......................       $33,824,000
Budget request, fiscal year 2005......................        36,025,000
Recommended in the bill...............................        33,289,000
Bill compared with:
    Appropriation, fiscal year 2004...................          -535,000
    Budget request, fiscal year 2005..................        -2,736,000


    The railroad research and development appropriation 
finances FRA contract research activities. 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.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $33,289,000, 
which is a $2,736,000 decrease from the amount requested.
    The recommendation assumes the following reductions to the 
budget request:

Deny funding for high-speed/freight configurable 
    locomotive simulator................................       -$500,000
Deny funding for discontinued fiscal year 2004 programs.      -2,236,000

    Grade crossing accidents.--Accidents at grade crossings 
account for the second highest number of fatalities in the 
railroad industry and motorist behaviors are clearly a major 
factor. Yet few resources have been directly targeted to 
understanding why motorists make bad decisions at grade 
crossings. The Committee supports FRA's accident causation and 
driver behavior projects and has provided $500,000 for research 
on human factors issues at grade crossings.

            RAILROAD REHABILITATION AND IMPROVEMENT PROGRAM

    TEA-21 established a railroad rehabilitation and 
improvement financing loan and loan guarantee program. The 
aggregate unpaid principal amounts of the obligations may not 
exceed $3,500,000,000 at any one time. Not less than 
$1,000,000,000 is reserved for projects primarily benefiting 
freight railroads other than class I carriers. The funding may 
be used: (1) to acquire, improve, or rehabilitate intermodal or 
rail equipment or facilities, including track, components of 
track, bridges, yards, buildings, or shops; (2) to refinance 
existing debt; or (3) to develop and establish new intermodal 
or railroad facilities. No federal appropriation is required, 
since a non-federal infrastructure partner may contribute the 
subsidy amount required by the Credit Reform Act of 1990 in the 
form of a credit risk premium. Once received, statutorily 
established investigation charges are immediately available for 
appraisals and necessary determinations and findings.
    The Committee has included bill language specifying that no 
new direct loans or loan guarantee commitments may be made 
using federal funds for the payment of any credit premium 
amount during fiscal year 2005.
    The Committee has included bill language that directs 
Amtrak to make full payment of all principal and interest to 
the Federal Railroad Administrator in satisfaction of the 
Corporation's July 3, 2002 direct loan within 30 days of 
enactment of this Act.
    The Committee has not included bill language requested by 
FRA authorizing FRA to charge and collect a fee from applicants 
for a direct loan or guaranteed loan.

                    NEXT GENERATION HIGH-SPEED RAIL




Appropriation, fiscal year 2004.......................       $37,179,000
Budget request, fiscal year 2005......................        10,000,000
Recommended in the bill...............................        11,000,000
Bill compared with:
    Appropriation, fiscal year 2004...................       -26,179,000
    Budget request, fiscal year 2005..................        +1,000,000


    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 TEA-21.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $11,000,000 for the next 
generation high-speed rail program, which is a $1,000,000 
increase to the budget request. Total program funding is 
allocated as follows:

------------------------------------------------------------------------
                                                            Committee
                                                         recommendation
------------------------------------------------------------------------
Train control systems:
    North American joint PTC project..................        $4,000,000
    Train control-TTC.................................         1,000,000
Non-electric locomotives:
    Advanced locomotive propulsion system.............           700,000
    Prototype non-electric locomotive.................           800,000
    Diesel mutiple units compliance and demonstration.         1,000,000
Grade crossing and innovative technologies:
    Mitigating hazards................................         1,000,000
    Low-cost technologies.............................         1,000,000
    Track and structures..............................         1,000,000
                                                       -----------------
      Total...........................................        11,000,000
------------------------------------------------------------------------

    Diesel multiple units (DMU) compliance and demonstration 
program.--There is an interest from both commuter and intercity 
rail passenger service providers to use diesel multiple units 
on commuter and future high-speed rail corridors. Until 
recently, this form of rail technology had not been produced in 
the United States since the Federal Railroad Administration 
issued passenger equipment safety regulations. The Committee 
has provided $1,000,000 to validate the compliance of diesel 
multiple units with existing passenger car safety standards and 
to make a grant to up to two public bodies for the purpose of 
initiating a demonstration in daily revenue service of a 
compliant DMU during calendar years 2004 and 2005. Federal 
funding shall only be made available if funds are matched on a 
dollar-for-dollar basis from non-federal sources and shall only 
be used for activities related to establishing the compliance 
of the DMU design with passenger safety standards and for the 
acquisition of DMUs (through a conventional competitive 
procurement process) and service facilities necessary for 
revenue service demonstration. All other expenses, including 
the cost of passenger facilities and any net operating expenses 
are not eligible for funding under this appropriation. In 
making the grant award decision, FRA shall consider among its 
criteria: the extent that the award would develop or facilitate 
the domestic rail passenger car manufacturing industry and the 
extent that it is compatible with DMU technology acquired 
pursuant to the fiscal year 2003 appropriation. Nothing shall 
preclude FRA from making funds available to the recipient of 
the fiscal year 2004 award.
    Rail-highway crossing hazard eliminations.--Under section 
1003 of TEA-21, an automatic set-aside of $5,250,000 a year is 
made available for the elimination of rail-highway crossing 
hazards. A limited number of corridors are eligible for these 
funds. Of the funds distributed under this program for fiscal 
year 2005:
      $700,000 shall be used to mitigate grade crossing hazards 
on Assembly Street in Columbia, South Carolina;
      $1,650,000 shall be used to mitigate grade crossing 
hazards associated with an intersection at Hamilton Boulevard 
over the CSX rail line near US 90, Mobile, Alabama;
      $1,500,000 shall be used to mitigate grade crossing 
hazards for a rail crossing in the City of Spartanburg, South 
Carolina;
      $650,000 shall be used for a grade crossing rail 
relocation in Auburn, Maine; and
      $750,000 shall be used for grade crossing safety 
improvements in Transportation Center CorridorOne, Harrisburg, 
Pennsylvania.
    Magnetic levitation technologies.--Section 1218 of TEA-21 
established a magnetic levitation deployment program to be 
administered by the FRA. In fiscal yar 2004, the Committee 
requested that FRA perform a cost-benefit comparison report of 
magnetic levitation to other modes of travel. Although FRA has 
not completed the report, early indications show that the costs 
far outweigh the benefits of this program. FRA has not 
requested support in their fiscal year 2005 request for maglev 
technologies, and the Committee has provided no funding.

               PENNSYLVANIA STATION REDEVELOPMENT PROJECT

                          (TRANSFER OF FUNDS)

    In the early 1990s, conditions at Pennsylvania Station in 
New York coupled with projected growth in passenger traffic 
prompted Amtrak to consider alternatives for expanding 
Pennsylvania Station. The station, located beneath the Madison 
Square Garden Arena, had no practical alternative for growth 
except to expand across the street to the underutilized Farley 
Post Office Building, situated above the railroad tracks and 
passenger platforms serving Pennsylvania Station.
    In 1992, Amtrak recommended that the Farley Building be 
redeveloped to accommodate new Amtrak facilities, at an 
estimated cost of $315,000,000. As plans developed, more than 
one-third of the Farley Building was slated for conversion into 
a new railroad passenger station and new retail space, and the 
existing Pennsylvania Station was to be renovated to include 
additional retail services and support facilities. Amtrak was 
to shift its operations to the Farley Building, while the Long 
Island Rail Road and the New Jersey Transit Corporation would 
continue to operate from Pennsylvania Station.
    In fiscal year 2000, the Congress provided a $60,000,000 
advance appropriation to the Federal Railroad Administration, 
appropriated over a three-year period for a final amount of 
$59,827,000, specifically for the renovation of the Farley 
Building in anticipation of Amtrak's move to the Postal Service 
facility. Of this funding, $20,000,000 was provided in fiscal 
year 2001 specifically for fire and life safety initiatives. 
Given the continuous local changes in the leadership, scope, 
and financial outlook of the project in New York, the Federal 
Railroad Administration has not obligated any of these funds to 
date, leaving a large balance in the Treasury.
    The latest twist to the new station's chronicle is that 
after years of delays in New York, Amtrak is now declining to 
move to the new building. Completion dates for the project have 
come and gone; from initial anticipation of completion by 1999 
to a date now estimated in 2010. Costs have continued to 
skyrocket, from a total expected cost of $315,000,000 in 1992 
to a cost now estimated to be over $1,000,000,000.
    To Amtrak's credit, it is reluctant to move to this new 
building as it appears that Pennsylvania Station Redevelopment 
Corporation (PSRC) is going to require Amtrak to pay annual 
rent for the new space. Amtrak currently owns Pennsylvania 
Station, although it is leased, but pays no rent. Given the 
financial outlook Amtrak faces, the railroad is quite 
reasonably saying that it does not want to incur new 
obligations. The Committee commends Amtrak for realizing that 
incurring new and recurring financial requirements is not in 
the best interests of the company, as the Committee has 
ardently and consistently emphasized this message to Amtrak 
over a period of years. The Committee strongly urges Amtrak to 
fully weigh all current options before agreeing to any actions 
that would increase temporary or long-term fiscal obligations 
for the railroad at Penn Station.
    The purpose for the initial appropriation--for Amtrak's 
move to the Farley Building--now looks as if it will not be 
achieved, and there are far more pressing fiscal constraints 
that the Committee currently faces for which this funding can 
be utilized. Given the unpredictable nature of the current 
situation and a possible collapse of the project in New York, 
together with the difficult fiscal constraints the Committee 
faces this year, a provision has been included in the bill that 
transfers the unobligated balances from fiscal year 2002 and 
2003 of $39,827,000. Portions of these funds have remained 
unobligated for up to three fiscal years. The $20,000,000 
appropriation for fire and life safety initiatives appropriated 
in fiscal year 2001 is still available for obligation for those 
purposes. The City of New York has requested funding from the 
Committee this year for many capital transportation projects 
that are either currently under construction or are scheduled 
to begin construction within the next year. Therefore, the 
funding is to be transferred to the Federal Transit 
Administration's Capital Investment Grants and allocated to the 
New York Long Island Rail Road East Side Access project.

         GRANTS TO THE NATIONAL RAILROAD PASSENGER CORPORATION

                                (AMTRAK)




Appropriation, fiscal year 2004.......................    $1,217,773,000
Budget request, fiscal year 2005......................       900,000,000
Recommended in the bill...............................       900,000,000
Bill compared to:
    Appropriation, fiscal year 2004...................      -317,773,000
    Budget request, fiscal year 2005..................  ................


    The National Railroad Passenger Corporation (Amtrak) was 
created by the Rail Passenger Service Act in 1970 and 
incorporated under the laws of the District of Columbia. 
Operations began on May 1, 1971. Amtrak's purpose was to 
operate a national rail passenger system to relieve the freight 
railroads of the burden of money-losing passenger operations 
and to preserve rail passenger service over a national system. 
It was created as a for-profit government corporation that was 
granted the right of access to the tracks owned by the freight 
railroads at incremental cost and with operating priority over 
freight trains. Amtrak was also granted jurisdiction to provide 
intercity rail transportation over its route system and was to 
receive federal subsidies for the first few years, but then it 
was expected to make a profit and operate free of government 
assistance.

                            STATUS OF AMTRAK

    This summer, Americans who travel by train can ride without 
having to fear, as they did in June 2003, that Amtrak may be 
out of business by Labor Day. Although Amtrak continues to 
operate with substantial losses each and every day at the 
expense of American taxpayers, the railroad is finally 
approaching a place of financial accountability where 
accounting is not done behind closed doors, but in cooperation 
with, and oversight of, the Department of Transportation. This 
greater transparency has created an environment where Amtrak is 
not threatening to shut down train operations every few months, 
which, for the travelers who use Amtrak, should produce relief.
    This progress has been made with the passage of the last 
two appropriations Acts and DOT's management and oversight. As 
a result of increased DOT involvement through the grant-making 
process, better financial controls are in place. This has been 
a substantial achievement that could not have been accomplished 
without the cooperation of both the Department of 
Transportation and Amtrak.
    Even though progress has been made at reining in Amtrak's 
accounting measures, a decrease has not been achieved in the 
large taxpayer subsidization that Amtrak continues to digest. 
Few people would argue that Amtrak has been either a 
transportation or financial success. After over 30 years of 
operation and an expenditure of over $40 billion in federal 
subsidies, Amtrak still only provides one half of one percent 
of all intercity transportation, with half of Amtrak's 
passenger trips taking place in the Northeast Corridor. 
Appropriations subsidies have risen by 71.2 percent in five 
years. In the same time period, ridership has increased by 11.6 
percent, facilitated by ``buy one, get one free'' ticket 
offers, or ticket sales like those seen in April, where tickets 
could be purchased from Washington, DC to Orlando, FL for 
$17.10.
    Nevertheless, the Committee is facing almost the exact 
funding situation for Amtrak as it did at this time last year. 
The Administration has included a request of $900 million for 
Amtrak operating and capital grants for fiscal year 2005. 
Amtrak has again asked for $1.8 billion from Congress for 
activities that it claims it needs. Amtrak continues the 
rhetoric heard for two years now that any appropriation less 
than $1.8 billion is a ``shut down level''. There continues to 
be no serious attempts to reauthorize Amtrak, so the 
appropriation remains an unauthorized one. So the same 
situation is presented again: to provide an amount of financial 
assistance to a railroad that is not authorized and where the 
concurrent budget requests are almost $1 billion apart.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $900,000,000 for grants to Amtrak 
in fiscal year 2005, consistent with the budget request. Of 
this total, not less than $500,000,000 is provided for capital 
improvements to Amtrak's Northeast Corridor and other general 
capital improvements. Beginning in fiscal year 2003, Congress 
provided new guidelines for the Department of Transportation to 
follow in administering its grants to Amtrak. The Department of 
Transportation, on numerous occasions, has called these 
``important reforms'' that provide ``oversight with teeth, 
placing the relationship between DOT and Amtrak on a footing 
similar to the oversight DOT exercises with respect to other 
transportation modes''. Funding is provided to the Secretary of 
Transportation, subject to the grant oversight and management 
reforms. Amtrak has had to pace itself on expenditures, with 
DOT oversight, to ensure that their funding would last 
throughout the fiscal year. These reforms promise financial 
accountability for Amtrak, and as a result, the Committee bill 
retains them for fiscal year 2005.
    Capital grants.--The Secretary is directed to continue to 
ensure that any funds provided to Amtrak be spent in a prudent 
manner, on projects where positive results can be seen. Funding 
should be spent on projects that maximize operational 
efficiencies and promote those lines with the highest ridership 
and cost sharing agreements in place. Amtrak shall not begin 
any new projects unless they can be fully funded with the 
fiscal year 2005 appropriation and Amtrak-generated revenues 
unless such projects are critical for safety or infrastructure 
repairs.
    Operating and capital plans.--Bill language has been 
continued that prohibits funding to Amtrak until after an 
operating and capital plan has been developed for fiscal year 
2005. This plan must be approved by the Board of Directors and 
the Secretary of Transportation and submitted to the House and 
Senate Committees on Appropriations no later than: (1) 60 days 
after enactment of a final Amtrak appropriation, or (2) at the 
time the Department submits its fiscal year 2006 budget request 
to Congress, whichever comes first. Development and approval of 
the operating and capital plan should minimize the number of 
stopgap measures Amtrak has to employ, particularly relating to 
capital projects, in those cases where the Corporation is 
unable to commit funding to complete an entire project.
    Amtrak financial information.--In addition to the 
submission of an operating and capital plan for fiscal year 
2005, the Secretary must continue to vouch for the accuracy of 
Amtrak's financial information. As a member of the Board of 
Directors, this is a reasonable expectation of the Secretary. 
This must be in the form of a signed letter that accompanies 
the operating and capital plans that must be submitted to the 
House and Senate Committees on Appropriations. In doing so, the 
Secretary must certify in writing, that based on his knowledge, 
the financial statements and other financial information 
prepared by Amtrak for Congress (e.g. capital and operating 
plans and business plans that are attached to annual grant 
requests) fairly present in all material respects the financial 
condition of the Corporation. Specifically, the Secretary's 
letter should attest that:
    1. Amtrak's financial information and reports are prepared 
using generally accepted accounting standards.
    2. Amtrak has corrected any material weaknesses or 
inaccuracies identified by a publicly registered accounting 
firm using practices sanctioned by generally accepted 
accounting principles.
    3. Amtrak has disclosed to the Secretary any and all 
material off-balance sheet transactions, arrangements, and 
obligations that may have a current or future material effect 
on the Corporation's financial condition, changes in financial 
condition, results in operations, liquidity, capital 
expenditures, capital resources, or any significant components 
of revenues or expenses.
    4. Amtrak has designed internal controls to ensure that 
material information is made known to the Board of Directors 
and the Secretary of Transportation in a timely fashion.
    5. The Secretary has evaluated the effectiveness of 
Amtrak's internal controls to ensure that deficiencies are not 
occurring and all significant deficiencies in the design or 
operation of internal controls that could adversely affect the 
Corporation's ability to record, process, summarize, or report 
financial data and identify fraud, have been corrected.
    6. Amtrak's financial information does not contain untrue 
statements of a material fact or omit to state a material fact 
necessary for the Board of Directors and the Secretary of 
Transportation to make informed financial decisions.
    The House and Senate Committees on Appropriations must 
continue to approve all variations to the base operating and 
capital plans according to the Department's reprogramming 
process.
    Monthly reporting requirements.--The monthly performance 
reports that Amtrak is required to submit to DOT and the House 
and Senate Committees on Appropriations shall include the 
following:
           All revenue and expenses associated with 
        rail operations by route, grouped by the following 
        service types or regions: (a) Northeast Corridor 
        intercity; (b) Corridor services reported individually 
        for the Empire, Keystone, Midwest, California, and 
        North Carolina Corridors; (c) long-distance services, 
        with profit and loss visibility on individual trains; 
        and (d) remaining services, with profit and loss 
        visibility on individual services or groups of 
        services;
           Budgeted and actual expenditures for all 
        capital investments, including categories for high-
        speed rail activities;
           Monthly performance reports, including cash 
        flow information, revenues, and expenses;
           A comprehensive business plan for the 
        upcoming fiscal year that includes targets for 
        ridership, revenues, capital, and operating expenses 
        for each business unit;
           A quarterly assessment explaining the extent 
        to which each goal identified in the comprehensive 
        business plan has been achieved or deviated from and 
        the reasons for such deviation;
           A current listing of all debt including 
        assets, long-term liabilities, and the repayment 
        schedule for those liabilities; and
           A detailed report on all operating 
        relationships between Amtrak and commuter rail systems 
        that highlights the manner and extent each commuter 
        operation and state could be impacted if a suspension 
        of Amtrak operations occurred.
    Capital asset valuation.--The Committee is disturbed that 
there is currently no verifiable method that gives clear 
details describing the avoidable and fully allocated costs for 
each Amtrak train route. It is difficult to comprehend that 
this is not possible for a railroad that has been in operation 
for over 30 years. Further, as the Congress continues to look 
at ways to improve and reform Amtrak, it is essential that this 
information be available.
    Therefore, the Secretary is directed to retain a third-
party consultant to perform a comprehensive valuation of 
Amtrak's capital assets, especially those valuable assets in 
the Northeast Corridor. This valuation shall then be used to 
develop, to the Secretary's satisfaction, a methodology for 
determining a definition of an Amtrak route and the avoidable 
and fully allocated costs of each route. Once this methodology 
is complete, Amtrak shall then apply that methodology in 
compiling an annual report to Congress on the avoidable and 
fully allocated costs of each of Amtrak's train routes. The 
Secretary may use up to $4,000,000 for these purposes.
    The Secretary and FRA should ensure that the House and 
Senate Committees on Appropriations are kept apprised of this 
process, from the retention of consultants to the methodology 
to be used in the assessments. At the completion of this 
appraisal, the Department should prepare a comprehensive report 
to the House and Senate Committees on Appropriations, the House 
Transportation and Infrastructure Committee and the Senate 
Commerce, Science, and Transportation Committee.
    State-assisted intercity rail service.--The Secretary, 
working with affected states, is directed to continue the 
development and implementation of a fair competitive bid 
procedure to assist states in introducing carefully managed 
competition to demonstrate whether competition will provide 
higher quality rail service at reasonable prices. The goal is 
to give the states, at their option, the ability to conduct a 
fair competition for state-assisted operations, commonly known 
as 403(b) trains. The bill provides a dispute resolution 
process for the Secretary to resolve disputes between states 
and Amtrak regarding the provision of facilities, equipment, 
and services by Amtrak at reasonable terms and compensation to 
enable service by a non-Amtrak operator. This process is 
similar to the one Amtrak now uses under 49 U.S.C. 24308 to 
resolve disputes with freight railroads for their provision of 
facilities and services to enable passenger rail service by 
Amtrak. The objective of this provision is to allow states the 
option of providing competitive intercity rail service.
    The Secretary may reprogram up to $2,500,000 from Amtrak 
operating grant funds to make grants to the states for 
implementation of this provision. The Secretary should 
administer the process, monitor its progress, and ensure 
frequent updates to the House and Senate Committees on 
Appropriations.
    Fiscal year 2006 budget request.--The Committee is troubled 
that Amtrak, in statute, may submit an annual budget request to 
both the Congress and the Department of Transportation for 
yearly appropriations, without any type of third-party 
oversight or opinion. Amtrak is one of a small number of 
private, for-profit corporations that is afforded this 
authority. The Committee is concerned that Amtrak may continue 
to ask for more and more Federal dollars every year, without 
constraints or a third-party review for accuracy of information 
or validation of need. Therefore, a provision has been included 
that prohibits Amtrak from submitting a concurrent budget 
submission and directs the railroad to submit the budget 
request through the Department of Transportation's normal 
budget request process.
    Amtrak reform proposals.--The Committee is aware of current 
proposals that are under review to restructure Amtrak by 
separating infrastructure operations from transportation 
operations. These proposals would include a private sector 
infrastructure management organization to manage the railroad 
infrastructure. The Committee encourages an ongoing dialogue 
with regard to this proposal.

          GENERAL PROVISIONS--FEDERAL RAILROAD ADMINISTRATION

    The Committee continues a provision (sec. 161) that 
requires the Secretary of Transportation to continue 
development and implementation of a fair competitive bid 
procedure to assist states in introducing carefully managed 
competition to demonstrate whether competition will provide 
higher quality rail service at reasonable prices.
    The Committee includes a provision (sec. 162) that allows 
for FRA to provide reimbursement to employees for home internet 
connections related to safety inspections.
    The Committee includes a provision (sec. 163) that 
prohibits Amtrak from submitting a concurrent budget submission 
and directs the railroad to submit the budget request through 
the Department of Transportation's normal budget request 
process.

                     Federal Transit Administration

    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 Transportation 
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 annual limitations on obligations provided in 
appropriations Acts. However, direct appropriations are 
required for specific portions of programs.
    Authorization for the programs funded by the Federal 
Transit Administration is contained in the Transportation 
Equity Act for the 21st Century (TEA-21). The extension of this 
law will expire on July 31, 2004. Because a conference of the 
surface transportation reauthorization legislation has not yet 
been completed, the Committee has continued the fiscal year 
2004 program levels as if authorized through fiscal year 2005.
    TEA-21 also amended the Budget Enforcement Act to provide 
two additional discretionary spending categories, the highway 
category and the mass transit category. The mass transit 
category is comprised of transit formula grants, transit 
capital funding, Federal Transit Administration administrative 
expenses, transit planning and research and university 
transportation center funding. The Budget Enforcement Act 
amendments expired on September 30, 2003.

                        ADMINISTRATIVE EXPENSES


                                                                                Limitation on
                                                              Appropriation      obligations      Total funding
                                                             (general fund)     (trust fund)

Appropriation, fiscal year 2004...........................       $15,011,000       $60,044,000       $75,055,000
Budget request, fiscal year 2005..........................        79,931,000                 0        79,931,000
Recommended in the bill...................................        15,100,000        60,400,000        75,500,000
Bill compared to:
    Appropriation, fiscal year 2004.......................           +89,000          +356,000          +445,000
    Budget request, fiscal year 2005......................       -64,831,000       +60,400,000        -4,431,000


                        COMMITTEE RECOMMENDATION

    The Committee recommends a total appropriation of 
$75,500,000 for FTA's salaries and expenses. The recommendation 
is a $455,000 increase from the fiscal year 2004 enacted level. 
The recommendation is comprised of an appropriation of 
$15,100,000 from the general fund and $60,400,000 from 
limitations on obligations from the mass transit account of the 
highway trust fund.
    Administrative expenses.--Funding is specified in the bill 
for the administrative offices of FTA at the following levels:

Office of the administrator.............................        $424,565
Office of chief counsel.................................       4,061,000
Office of civil rights..................................       2,750,000
Office of communicaitons & congressional affairs........       1,200,000
Office of budget and policy.............................       6,700,000
Office of planning and environment......................       4,000,000
Office of program management............................       7,600,000
Office of administration................................       6,715,000
Central account.........................................      19,557,000
Regional offices........................................      19,982,000
National transit database...............................       2,500,000

    The administrator is authorized to transfer funding between 
offices. Any transfers totaling more than three percent of the 
initial appropriation from this account must be approved by the 
House and Senate Committees on Appropriations. No new positions 
have been approved.
    The Committee has found it increasingly difficult to work 
with the FTA Region 4 office, located in Atlanta, Georgia. No 
more than $2,000,000 is provided for this office in fiscal year 
2005.
    E-gov.--The Committee denies funding for E-gov initiatives 
by the Office of the Secretary for lack of adequate 
justification.
    Budget justifications.--It is important for the department 
and the Congress to have the ability to analyze the needs of 
FTA on an office-by-office basis consistent with other DOT 
agencies. The Committee directs FTA to submit its fiscal year 
2006 congressional budget justification for administrative 
expenses itemized by office, with material detailing salaries 
and expenses, staffing increases, and programmatic initiatives 
of each office. The initiatives for each should be clearly 
stated, and include a justification for each new position or 
full-time equivalent, should FTA seek any next year.
    Staff resources.--FTA is directed to take all means 
necessary to limit unnecessary staff resources or expenses on 
technical assistance to projects that are not advancing in the 
new starts pipleine or that are not seeking a full funding 
grant agreement. FTA shall provide a breakout of staff 
resources spent per new fixed guideway project in the fiscal 
year 2006 budget request.
    Office of research, demonstration, and innovation.--In the 
Committee's fiscal year 2004 Transportation and Treasury 
Appropriations report, the Committee expressed concern with the 
effectiveness of the office of research, demonstration, and 
innovation and directed FTA to submit a report to the House and 
Senate Committees on Appropriations on the activities of the 
office, including all expenditures for the past three fiscal 
years and planned expenditures for fiscal year 2005. This 
report was due by September 30, 2003.
    This vital report has not yet been provided to the House 
Committee on Appropriations and the Committee is very troubled 
by this lack of responsiveness. In the past, the Committee had 
difficulty receiving the annual report on new starts in a 
timely manner and was forced to place a monetary incentive in 
the annual appropriations bill to compel FTA to deliver this 
report by the required date. Therefore, the Committee directs 
FTA to produce the report no later than October 1, 2004. 
Because FTA has been unable to explain the activities of this 
office or the absence of this report, no funding has been 
provided for the office of research, demonstration, and 
innovation.
    Transit security.--FTA has been praised for taking an early 
lead in transit security issues in the wake of the increased 
terrorist threat following September 11, 2001. With funding 
provided in a supplemental appropriations Act, FTA conducted a 
number of security-related activities such as security 
assessments of transit agencies, outreach conferences, and 
technical assistance to transit agencies.
    In June 2003, after creation of the Department of Homeland 
Security (DHS), the Deputy Secretary of Transportation, the 
Secretary's designated liaison with Transportation Security 
Administration (TSA), wrote a letter to the U.S. General 
Accounting Office about DOT's reorganization of internal 
security responsibilities and the division of responsibilities 
with DHS. In this letter, the Deputy Secretary stated:

          The Department of Transportation recognizes that the 
        Department of Homeland Security's Transportation 
        Security Administration has primary responsibility for 
        transportation security policy. DOT now plays only a 
        supporting role, assisting DHS as requested with 
        implementation of security policies, and as allowed by 
        DOT statutory authorities and available resources.

The letter continues:

          As TSA works to strengthen its capabilities beyond 
        aviation . . . DOT has continued for now a few of our 
        pre-existing programmatic efforts. For example, we 
        continue to work with transit operators and state 
        transportation executives to inform and educate them 
        regarding security awareness and best practices to 
        enhance security. These efforts are not policy-making 
        activities. Instead, they are intended during the 
        transition to augment and complement TSA's work, as the 
        new agency continues to grow its staff, programs, and 
        experiences in working with diverse transportation 
        sectors. In the months ahead, DOT's role in security 
        educational efforts will likely decrease.

    Despite the clear policy statement enunciated by the Deputy 
Secretary, this limited role is apparently not the course that 
FTA has set upon. FTA lacks statutory authority for the 
regulation of transit security, yet the agency continues to try 
to grow their security functions, sometimes at the expense of 
their core safety activities. FTA is attempting to blend these 
one-time security initiatives immediately after the terrorist 
attacks of September 11, 2001, with their more traditional 
activities, such as training, public awareness, and emergency 
preparedness drills.
    The Aviation and Transportation Security Act and enabling 
statutes creating the TSA make clear that transportation 
security capital improvements, operational oversight, and 
security policy matters are properly the jurisdiction and 
responsibility of the Department of Homeland Security. Yet, the 
Committee continues to see FTA attempting to establish itself 
as the lead federal agency in the transit security arena and to 
institutionalize this role for the foreseeable future. FTA's 
own website states that they have ``undertaken an aggressive 
nationwide security program'', and that the agency ``is 
enhancing its strategies and moving forward to further enhance 
transit security . . . We will continue many of our current 
programs, and add new initiatives to meet a variety of needs 
that we have identified . . .''
    Since fiscal year 2003, FTA has increased their request for 
administrative and research activities related to security by 
$1,000,000, an increase of 50%. Safety, FTA's stated primary 
goal, saw a slight increase in funding from fiscal year 2003; 
however, administrative and research functions of mobility, 
FTA's secondary goal, has decreased from $238,000,000 in fiscal 
year 2003 to $86,000,000 in the fiscal year 2005 request.
    In April 2003, a new office of transit safety and security 
(TSS) was created administratively by detail of FTA employees 
and new hires to play a supporting role in the transition of 
handing over programmatic efforts to the TSA. This office was 
created without the benefit of a reprogramming request to the 
House and Senate Committees on Appropriations. Prior to the 
terrorist attacks of September 11, 2001, the safety and 
security office which was within the office of program 
management totaled 8 full-time equivalent staff years. Today, 
TSS has 12 FTEs. In addition, FTA is requesting a 25% increase 
in funding for this office for fiscal year 2005. Meanwhile, the 
overall FTA program has seen an increase of only 1.5% since 
2003. FTA requests no growth for the overall program in fiscal 
year 2005.
    A further example of FTA's attempts was seen in April 2004, 
when FTA submitted a reprogramming request to reorganize their 
current office structure. Within this request was a proposal to 
institutionalize a new, and supposedly temporary office, of 
transit safety and security as a separate office within FTA. 
The Secretary later withdrew this reprogramming request; 
however, it is clear that FTA, by seeking to hire new positions 
related to security oversight and seeking permanent 
responsibilities with regard to security policy, is attempting 
to exercise control in transit security matters that should be 
within the jurisdiction of TSA.
    The Committee believes that FTA should retrench its plans 
and defer to the expertise of TSA and DHS in security matters. 
To ensure that this occurs, bill language has been included 
that prohibits FTA from taking any steps to make the office of 
transit safety and security a permanent separate office at FTA. 
Funds for this office are also limited to no more than the 
fiscal year 2004 enacted level and no new positions are to be 
hired or added for the office of safety and security. In 
addition, the Committee directs the Office of Inspector General 
to perform an audit of FTA's efforts to enlarge its 
responsibility for transit security and FTA efforts, if any, to 
turn over these responsibilities to TSA since 2003.
    Project management oversight activities.--The Committee 
directs that FTA submit to the House and Senate Committees on 
Appropriations the quarterly FMO and PMO reports for each 
project with a full funding grant agreement.
    To further support oversight activities, the bill continues 
a provision requiring FTA to reimburse the Department of 
Transportation Office of Inspector General $3,000,000 for costs 
associated with audits and investigations of transit-related 
issues, including reviews of new fixed guideway systems. This 
reimbursement must come from funds available for the execution 
of contracts. Over the past several years, the IG has provided 
critical oversight of numerous major transit projects and FTA 
activities, which the Committee has found invaluable. The 
Committee anticipates that the Inspector General will continue 
such oversight activities in fiscal year 2005.
    Antideficiency Act violations.--In February 2002, the 
Office of Inspector General released its fiscal year 2001 
financial statement audit, which involved a negative obligation 
balance in FTA's accounting records. The material weakness was 
a result of improper accounting for obligations by FTA from the 
mass transit account of the highway trust fund. DOT, in 
cooperation with the OIG, began an immediate investigation to 
determine the extent of the obligations. The balance of this 
over-obligation is $76,818,457. To correct this problem, the 
Committee includes a provision that will allow the restoration 
of obligational authority to formula grants funds that were 
reduced due to this deficiency.
    To help prevent a recurrence of this type of incident, FTA 
shall report to the House and Senate Committees on 
Appropriations detailing how the agency has modified its 
accounting procedures and practices to ensure that this type of 
accounting violation will not occur in the future. In addition, 
the Office of Inspector General shall perform a review of FTA's 
new procedures and report to the House and Senate Committees on 
Appropriations on the sufficiency of these procedures.
    Transit agency advertising.--The Committee remains 
concerned that transit agencies accepting federal grant funds 
may be providing their advertising space to organizations that 
encourage the public to break the law. While the Committee 
supports the efforts of many transit agencies to prevent ads 
that promote marijuana use, the Committee remains concerned 
that the opportunity exists nationwide for transit properties 
to run similar advertising. Therefore, the bill includes a 
provision (section 174) that prohibits Federal transit grantees 
from obligating or expending funds that would otherwise be 
available in the Act, if the grantee is involved directly or 
indirectly with any activity, including displaying or 
permitting to be displayed advertisements on its land, 
equipment, or in its facilities, that promotes the legalization 
or medical use of substances listed in schedule I of section 
202 of the Controlled Substances Act.
    Full funding grant agreements (FFGAs).--TEA-21, as amended, 
requires that the FTA notify the House and Senate Committees on 
Appropriations as well as the House Committee on Transportation 
and Infrastructure and the Senate Committee on Banking sixty 
days before executing a full funding grant agreement. In its 
notification to the House and Senate Committees on 
Appropriations, the Committee directs the FTA to include the 
following: (1) a copy of the proposed full funding grant 
agreement; (2) the total and annual federal appropriations 
required for that project; (3) yearly and total federal 
appropriations that can be reasonably planned or anticipated 
for future FFGAs for each fiscal year through 2005; (4) a 
detailed analysis of annual commitments for current and 
anticipated FFGAs against the program authorization; (5) an 
evaluation of whether the alternatives analysis made by the 
applicant fully assessed all viable alternatives; (6) a 
financial analysis of the project's cost and sponsor's ability 
to finance the project, which shall be conducted by an 
independent examiner and which shall include an assessment of 
the capital cost estimate and the finance plan; (7) the source 
and security of all public- and private-sector financial 
instruments; (8) the project's operating plan, which enumerates 
the project's future revenue and ridership forecasts; and (9) a 
listing of all planned contingencies and possible risks 
associated with the project.
    The Committee also directs FTA to inform the House and 
Senate Committees on Appropriations in writing thirty days 
before approving schedule, scope, or budget changes to any full 
funding grant agreement. Correspondence relating to changes 
shall include any budget revisions or program changes that 
materially alter the project as originally stipulated in the 
full funding grant agreement, including any proposed change in 
rail car procurements.
    FTA has not done all it can to keep the House and Senate 
Committees on Appropriations appraised of new start project 
development and progression, despite Congressional direction to 
do so in the Consolidated Appropriations Act, 2004. FTA is 
directed to submit a monthly new start project update to the 
Committees, detailing the status of each project, including all 
projects with a full funding grant agreement, as well as those 
projects with at least a rating of ``recommended'' that are in 
the new starts pipeline. This update must include FTA's plans 
and specific milestone schedules for advancing projects, 
especially those within two years of a proposed full funding 
grant agreement. In addition, the Committee directs FTA to 
formally notify the Committees thirty days before any project 
in the new starts process is given approval by FTA to advance 
to preliminary engineering or final design.
    Interpreting Congressional intent.--The Committee 
reiterates to FTA that it is improper for the agency to take 
actions changing the Congressionally approved scope of programs 
and projects without receiving the approval of the House and 
Senate Committees on Appropriations. FTA is directed to consult 
with the House and Senate Committees on Appropriations before 
making any decisions clarifying Congressional intent.

                             formula grants



                                                                               Limitation on
                                                            Appropriation   obligations (trust    Total funding
                                                           (general fund)          fund)

Appropriation, fiscal year 2004.........................      $763,270,000    ($3,053,080,000)    $3,816,350,000
Budget request, fiscal year 2005........................  ................     (5,622,871,000)     5,622,871,000
Recommended in the bill.................................       767,800,000     (3,271,200,000)     4,039,000,000
Bill compared to:
    Appropriation, fiscal year 2004.....................        +4,530,000      (+218,120,000)      +222,650,000
    Budget request, fiscal year 2005....................      -600,000,000    (-2,351,671,000)    -1,583,871,000



    Formula grants to states and local agencies funded under 
the Federal Transit Administration fall into four categories: 
urbanized area formula grants; clean fuels formula grants; 
formula grants and loans for special needs of elderly 
individuals and individuals with disabilities; and formula 
grants for other than urbanized areas. In addition, set asides 
of formula funds are directed to a grant program for intercity 
bus operators to finance Americans with Disabilities Act (ADA) 
accessibility costs and the Alaska Railroad for improvements to 
its passenger operations.

                        COMMITTEE RECOMMENDATION

    The accompanying bill provides $4,039,000,000 for transit 
formula grants. The recommended level is comprised of an 
appropriation of $767,800,000 from the general fund and 
$3,271,200,000 from limitations on obligations from the mass 
transit account of the highway trust fund.
    The proposed increase in the set-aside for project 
oversight is denied for the second year. Within the total 
funding level, the Committee recommendation includes the 
following distribution:

Urbanized areas.........................................  $3,633,249,556
Elderly and disabled....................................      95,452,801
Non-urbanized areas.....................................     253,347,643
Over-the-road bus accessibility program.................       6,950,000
Clean fuels program.....................................      50,000,000
Alaska Railroad.........................................       4,825,700

    Major project alternatives analysis and preliminary 
engineering and design.--Funds in the bill can be used, among 
other activities, for alternatives analysis and preliminary 
engineering and design (PE&D) of new rail systems, extensions, 
or busways. The Committee continues to assert that local 
project sponsors of new rail systems, extensions, or busways 
must use these formula funds (or those provided under section 
5303 metropolitan planning) for alternatives analysis and 
preliminary engineering and design activities rather than seek 
section 5309 discretionary set-asides. Moreover, the Committee 
expects FTA, when evaluating the local financial commitment of 
a given project, to consider the extent to which the project's 
sponsors have used these formula grant apportionments for 
alternatives analysis and PE&D activities of proposed new 
systems.
    Intercity bus service.--The Committee is concerned that the 
significant cutbacks in intercity bus service in the midwest 
and upper midwest have created a situation in which many small 
communities are completely lacking intercity mass 
transportation options. Current law requires each state to 
spend 15 percent of its annual apportionment of federal non-
urbanized funds to support rural intercity bus service unless 
the state's governor certifies that the state's intercity bus 
needs are adequately met. As noted in a 2002 report by the 
Transit Cooperative Research Program, however, many states have 
struggled to find effective ways to support and improve rural 
intercity bus transportation.
    The Committee directs the Federal Transit Administration, 
in light of this dire situation, to conduct a study of the 
problem of dwindling intercity bus service, especially in rural 
areas, and report, no later than 120 days after enactment of 
this Act, to the House and Senate Committees on Appropriations 
with recommendations as to how this problem could be addressed 
by Congress.
    The following table displays the state-by-state 
distribution of formula funds within each of the program 
categories:

         FEDERAL TRANSIT ADMINISTRATION FISCAL YEAR 2005 APPORTIONMENTS FOR FORMULA PROGRAMS (BY STATE)
----------------------------------------------------------------------------------------------------------------
                                                                                Section 5310
                                            Section 5307      Section 5311        elderly &
                  State                    urbanized area     nonurbanized      persons with       State total
                                                                  area          disabilities
----------------------------------------------------------------------------------------------------------------
Alabama.................................       $16,026,947        $7,047,234        $1,666,431       $24,740,612
Alaska..................................         8,701,049           982,218           246,907         9,930,174
American Samoa..........................  ................           161,118            60,666           221,784
Arizona.................................        46,993,959         3,437,908         1,740,358        52,172,225
Arkansas................................         8,320,310         5,097,662         1,081,700        14,499,672
California..............................       619,843,992        10,832,851        10,025,258       640,702,101
Colorado................................        49,748,556         3,060,550         1,219,292        54,028,398
Connecticut.............................        47,511,545         1,566,623         1,186,130        50,264,298
Delaware................................         6,503,619           710,288           366,052         7,579,959
District of Columbia....................        73,002,417  ................           319,583        73,322,000
Florida.................................       175,037,059         7,065,182         6,405,102       188,507,343
Georgia.................................        71,105,819         8,932,701         2,419,965        82,458,485
Guam....................................  ................           435,353           159,073           594,426
Hawaii..................................        27,923,813         1,056,357           496,260        29,476,430
Idaho...................................         6,003,209         1,940,871           474,714         8,418,794
Illinois................................       231,698,777         7,541,991         3,721,071       242,961,839
Indiana.................................        37,017,699         7,507,493         1,971,553        46,496,745
Iowa....................................        13,462,611         5,094,515         1,029,884        19,587,010
Kansas..................................        10,441,732         4,163,801           926,049        15,531,582
Kentucky................................        19,616,229         6,960,383         1,538,409        28,115,021
Louisiana...............................        31,055,154         5,437,128         1,531,764        38,024,046
Maine...................................         3,224,120         2,702,506           556,458         6,483,084
Maryland................................        73,093,521         2,809,527         1,626,840        77,529,888
Massachusetts...........................       132,356,435         2,007,868         2,151,181       136,515,484
Michigan................................        70,770,930         9,448,839         3,100,018        83,319,787
Minnesota...............................        45,079,088         6,208,721         1,437,088        52,724,897
Mississippi.............................         5,339,482         6,087,796         1,084,712        12,511,990
Missouri................................        39,805,155         7,043,508         1,884,107        48,732,770
Montana.................................         2,718,093         1,878,594           399,347         4,996,034
N. Mariana Islands......................           711,778            21,165            61,628           794,571
Nebraska................................         8,754,778         2,548,340           623,516        11,926,634
Nevada..................................        25,312,276           905,403           756,131        26,973,810
New Hampshire...........................         4,888,768         1,923,472           476,917         7,289,157
New Jersey..............................       227,188,569         1,857,665         2,728,834       231,775,068
New Mexico..............................         9,556,730         2,690,500           685,575        12,932,805
New York................................       576,216,434         9,763,731         6,432,842       592,413,007
North Carolina..........................        39,193,280        12,060,239         2,703,405        53,956,924
North Dakota............................         3,217,458         1,156,975           321,363         4,695,796
Ohio....................................        91,590,192        11,366,748         3,620,564       106,577,504
Oklahoma................................        15,204,028         5,531,772         1,270,452        22,006,252
Oregon..................................        38,354,098         4,064,498         1,179,647        43,598,243
Pennsylvania............................       158,469,006        11,446,071         4,268,928       174,184,005
Puerto Rico.............................        45,323,072           933,444         1,472,720        47,729,236
Rhode Island............................         9,643,547           338,034           482,363        10,463,944
South Carolina..........................        14,803,868         6,013,162         1,455,331        22,272,361
South Dakota............................         2,472,209         1,575,600           351,580         4,399,389
Tennessee...............................        29,858,712         7,662,190         2,017,346        39,538,248
Texas...................................       206,665,925        17,030,965         5,960,693       229,657,583
Utah....................................        30,262,999         1,364,199           619,088        32,246,286
Vermont.................................         1,099,143         1,415,869           304,131         2,819,143
Virgin Islands..........................  ................           305,446           152,248           457,694
Virginia................................        56,397,524         6,651,608         2,126,107        65,175,239
Washington..............................        99,617,056         4,472,397         1,812,341       105,901,794
West Virginia...........................         5,211,988         3,637,072           822,095         9,671,155
Wisconsin...............................        41,213,731         7,090,231         1,657,423        49,961,385
Wyoming.................................         1,454,819         1,034,523           263,561         2,752,903
                                         -----------------------------------------------------------------------
      Subtotal..........................     3,615,083,308       252,080,905        95,452,801     3,962,617,014
Oversight...............................        18,166,248         1,266,738  ................        19,432,986
                                         -----------------------------------------------------------------------
      Total.............................     3,633,249,556       253,347,643        95,452,801     3,982,050,000
Over-the-Road Bus Program...............                                                               6,950,000
Clean Fuels.............................                                                              50,000,000
                                         -----------------------------------------------------------------------
      Grand Total.......................                                                          4,039,000,000
----------------------------------------------------------------------------------------------------------------
Note:--Alaska 5307 amount includes $4,825,700 to Alaska Railroad for improvements to passenger operations.

                   university transportation research



                                                                                Limitation on
                                                              Appropriation      obligations      Total funding
                                                             (general fund)     (trust fund)

Appropriation, fiscal year 2004...........................        $1,193,000      ($4,772,000)        $5,965,000
Budget request, fiscal year 2005..........................             - - -           (- - -)             - - -
Recommended in the bill...................................         1,200,000       (4,800,000)         6,000,000
Bill compared to:
    Appropriation, fiscal year 2004.......................            +7,000         (+28,000)           +35,000
    Budget request, fiscal year 2005......................        +1,200,000      (+4,800,000)        +6,000,000



    Grants for university transportation research are awarded 
to non-profit institutions of higher learning by the Research 
and Special Programs Administration (RSPA) using funds 
appropriated to FTA. This program focuses on the transfer of 
knowledge relevant to national, state, and local transit 
issues, and builds the professional capacity of the 
transportation workforce.

                        COMMITTEE RECOMMENDATION

    The accompanying bill provides a total of $6,000,000 for 
university transportation research.
    The recommended program level is comprised of an 
appropriation of $1,200,000 from the general fund and 
$4,800,000 from a limitation on obligations from the mass 
transit account of the highway trust fund.

                     transit planning and research



                                                                                Limitation on
                                                              Appropriation      obligations      Total funding
                                                             (general fund)     (trust fund)

Appropriation, fiscal year 2004...........................       $25,051,000    ($100,205,000)      $125,256,000
Budget request, fiscal year 2005..........................             - - -           (- - -)             - - -
Recommended in the bill...................................        25,200,000     (100,800,000)       126,000,000
Bill compared to:
    Appropriation, fiscal year 2004.......................          +149,000        (+595,000)          +744,000
    Budget request, fiscal year 2005......................       +25,200,000    (+100,800,000)      +126,000,000



    The transit planning and research program provides 
financial assistance to states for statewide planning and other 
technical assistance activities, planning support for 
metropolitan areas, nonurbanized areas, research, development 
and demonstration projects, fellowships for training in the 
public transportation field, university research, and human 
resource development.

                        COMMITTEE RECOMMENDATION

    The accompanying bill provides $126,000,000 for transit 
planning and research.
    The recommended level is comprised of an appropriation of 
$25,200,000 from the general fund and $100,800,000 from 
limitations on obligations from the mass transit account of the 
highway trust fund.
    The bill contains language specifying the following program 
recommendations:

Metropolitan planning...................................     $60,386,000
State planning..........................................      12,614,000
National planning and research..........................      35,500,000
Transit cooperative research............................       8,250,000
National transit institute..............................       4,000,000
Rural transportation assistance.........................       5,250,000

    National planning and research.--Within the funds for 
national planning and research, support is provided for a 
number of important initiatives including the following:

Project ACTION..........................................      $2,000,000
National Technical Assistance Center for Senior 
    Transportation......................................       2,000,000
CALSTART/WestStart Advanced Transit Technology..........       2,000,000
Transportation Research Program, Wichita State 
    University..........................................       1,000,000
Community Transportation Association of America Joblinks         500,000
PVTA Electric Bus.......................................         640,000
Automation Alley BuSolutions............................         550,000
Oklahoma Transportation Center..........................       2,000,000
Advanced Transportation Technology Institute............         125,000
Northern Wisconsin Rural Transportation Study...........          60,000
Center for Transportation and the Environment...........         125,000
Hennepin County Community Works.........................       1,200,000

                      TRUST FUND SHARE OF EXPENSES

                (LIQUIDATION OF CONTRACT AUTHORIZATION)

                          (HIGHWAY TRUST FUND)




Appropriation, fiscal year 2004.......................    $5,812,702,000
Budget request, fiscal year 2005......................     5,951,877,000
Recommended in the bill...............................     6,047,200,000
Bill compared with:
    Appropriation, fiscal year 2004...................      +234,498,000
    Budget request, fiscal year 2005..................       +95,323,000



    This account provides the portion of funds for each of 
FTA's programs derived from the Mass Transit Account of the 
Highway Trust Fund. For fiscal year 2005, the Committee has 
provided $6,047,200,000 for liquidation of contract 
authorization.

                       CAPITAL INVESTMENT GRANTS


                                                                                Limitation on
                                                              Appropriation      obligations      Total funding
                                                             (general fund)     (trust fund)

Appropriation, fiscal year 2004...........................      $623,798,000  ($2,495,191,000)    $3,118,989,000
Budget request, fiscal year 2005..........................     1,234,192,000     (329,006,000)     1,563,192,000
Recommended in the bill...................................       342,647,000   (2,510,000,000)     2,852,647,000
Bill compared to:
    Appropriation, fiscal year 2004.......................      -281,151,000     (+14,809,000)      -266,342,000
    Budget request, fiscal year 2005......................      -891,545,000  (+2,180,994,000)    +1,289,455,000


    The transit capital investment program provides capital 
assistance for three primary activities: new and replacement 
buses and facilities; modernizing existing rail systems; and 
new fixed guideway systems. Eligible recipients for capital 
investment funds are public bodies and agencies (transit 
authorities and other state and local public bodies and 
agencies thereof) including states, municipalities, other 
political subdivisions of states; public agencies and 
instrumentalities of one or more states; and certain public 
corporations, boards, and commissions established under state 
law. Buses and bus facilities funds are allocated on a 
discretionary basis, as are new starts funds. Fixed guideway 
modernization funds are allocated by statutory formula to 
urbanized areas with rail systems that have been in operation 
for at least seven years.

                        COMMITTEE RECOMMENDATION

    The accompanying bill provides a total of $2,852,647,000 to 
be available for capital investment grants.
    The recommended level is comprised of an appropriation of 
$342,647,000 from the general fund, which includes $39,827,000 
transferred from the Federal Railroad Administration, and 
$2,510,000,000 from a limitation on obligations from the mass 
transit account of the highway trust fund.
    Funds provided for capital investment grants shall be 
distributed as follows:

                                                                  Amount
Bus and bus facilities..................................    $607,400,000
Fixed guideway modernization............................   1,214,400,000
New starts..............................................   1,030,827,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total.............................................   2,852,647,000

    Availability of section 5309 funds.--In past years, the 
Committee has included bill language that permits the 
administrator to reallocate discretionary new start and bus and 
bus facilities funds from projects which remain unobligated 
after three years. However, as stated in the Consolidated 
Appropriations Act, 2004, the Committee remains concerned with 
the increasing number of project funds that are not obligated 
in a three-year period and consequently become available for 
reallocation. As of June 2004, over $155,000,000 in bus and bus 
facilities funding for 146 projects from fiscal year 2002 
remains unobligated, which is over one-quarter of the total 
funds originally made available for these purposes. Meanwhile, 
over $350,000,000 from fiscal year 2003 remains unobligated, 
over half of the total funding originally made available for 
that year. Oversight of grant funds is a vital function of FTA. 
Likewise, so is adequate planning and forecasting. When funds 
are committed to one project, only to lie idle, it deprives 
other projects and delays those projects needlessly. In 
addition, transit agencies are urged not to seek discretionary 
grants where the work cannot be completed within a three-year 
time period. Transit agencies must work with FTA to obligate 
grant funds promptly. Last year, the conferees directed FTA to 
set new goals for the timeliness of grant obligations. The 
Committee has not yet been notified by FTA what these new goals 
are or how the agency plans to meet them.
    Consistent with past years, the Committee directs FTA to 
reprogram funds from recoveries and previous appropriations 
that have remained available since fiscal year 2002. For those 
projects where Congress extends the availability of funds that 
remain unobligated after three years, such funds are extended. 
FTA is reminded that they must notify the House and Senate 
Committees on Appropriations 15 days prior to any such 
reallocation, consistent with reprogramming guidelines.

                        BUSES AND BUS FACILITIES

    The accompanying bill provides $607,400,000 for bus 
purchases and bus facilities, including maintenance garages and 
intermodal facilities. Bus systems play a vital role in the 
mass transportation systems of virtually all cities. FTA 
estimates that 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 directs FTA not to reallocate funds provided 
in the Department of Transportation and Related Agencies 
Appropriations Act, 2002, or previous Acts for the following 
bus and bus facilities projects:

          Anaheim Resourt transit project, CA
          Attleboro intermodal facilities, MA
          Binghamton Intermodal Transportation Center, NY
          Bronx Zoo Intermodal Transportation Facility, NY
          Brookhaven multi-modal facility, MS
          Cab Care paratransit facility, MO
          City of Monrovia natural gas vehicle fueling facility, CA
          Costa Mesa CNG facility, CA
          County of Amador bus replacement, CA
          County of Calaveras bus fleet replacement, CA
          Greater Minnesota Transit Authority bus, paratransit and 
        transit hub, MN
          Greater New Haven Transit District CNG vehicle project, CT
          Hershey intermodal transportation center, PA
          Indiana bus consortium buses and bus facilities
          Wilkes-Barre Intermodal Facility, PA
          King County Transit Oriented Development Projects, WA
          Leslie County parking structure, KY
          Livermore Amador Valley Transit Authority buses and facility, 
        CA
          Macon terminal intermodal station, GA
          Memphis International Airport intermodal facility, TN
          Merrimack Valley Regional Transit Authority (Amesbury) buses 
        and bus facilities, MA
          Metro transit buses and bus facilities, MN
          MetroWest buses and bus facilities, MA
          Missouri Pacific Depot, MO
          Monterey-Salinas Transit facility, CA
          Montgomery County intermodal facility, PA
          North County Transit District, CA
          Oglala Sioux Tribe buses and bus facilities, SD
          Pasadena Area Rapid Transit System, CA
          Pelham trolley, NY
          Salem/Beverly intermodal Center, MA
          San Bernardino CNG/LNG buses, CA
          Sierra Madre Villa & Chinatown intermodal transportation 
        centers, CA
          Southeastern Pennsylvania Transportation Authority trackless 
        trolleys, PA
          Springfield Union Station intermodal facility, MA
          Statewide buses and bus facilities, MD
          Statewide buses and bus facilities, NC
          Statewide buses and bus facilities, TN
          Station Plaza commuter parking lot, NY
          Sullivan County Coordinated Public Transportation Service bus 
        facility, NY
          Sullivan County buses, bus facilities and related equipment, 
        NY
          Sunline Transit hydrogen refueling station, CA
          TALTRAN intermodal center, FL
          Tompkins consolidated area transit center, NY
          Transportation hub at the Village of Indian Hills, CA

    The Committee makes these exceptions based on FTA 
information that these funds are likely to be awarded by the 
fourth quarter of fiscal year 2004 or soon thereafter.
    Alameda-Contra Costa Transit District, California.--Amounts 
made available in fiscal year 2004 to Alameda-Contra Costa 
Transit District, California, for expansion buses shall be 
available for rapid bus improvements.
    Barry County Transit, Michigan.--Amounts made available in 
fiscal year 2004 to Barry County Transit for replacement 
maintenance equipment shall be available for bus diagnostic 
equipment, service equipment, and computer hardware, software, 
and related equipment.
    Cab Car, St. Louis, Missouri.--Funds made available in 
fiscal year 2002 for Cab Care, St. Louis, Missouri, shall be 
made available for St. Louis Metro Transit Agency, St. Louis, 
Missouri. The availability for such funds for obligation shall 
be extended through fiscal year 2005.
    Clinton County Transit, Michigan.--Amounts made available 
in fiscal year 2004 to Clinton County Transit, Michigan for a 
bus purchase shall be available for the purchase of scheduling 
software.
    Manistee County Transportation, Inc.--Amounts made 
available in fiscal year 2004 to Manistee County 
Transportation, Inc. for replacement buses shall be made 
available for a replacement service truck and facility 
renovations.
    Detroit, Michigan buses and bus facilities.--Funds provided 
to Detroit, Michigan for transfer terminal facilities under 
buses and bus facilities in Public Law 106-109 and Public Law 
108-199 may be available to Detroit for the replacement, 
rehabilitation, or construction of bus-related facilities.
    Philadelphia, Regional Transportation System for Elderly 
and Disabled.--The Department of Transportation and Related 
Agencies Appropriations Act, 1999, provided $750,000 for the 
Philadelphia, Regional Transportation System for Elderly and 
Disabled. The Committee understands that the original grant 
recipient has been unable to use the funds provided. Therefore, 
the Committee directs that the Southeastern Pennsylvania 
Transportation Authority (SEPTA) shall serve as grant recipient 
and administering agency for the purpose of carrying out the 
original intent of this project.
    Greater New Haven Transit District.--The Department of 
Transportation and Related Agencies Appropriations Act, 2002 
provided $1,000,000 for the Greater New Haven Transit District 
CNG vehicle project. The Committee directs that these funds 
shall be used for alternative fuel vehicles for the Greater New 
Haven Transit District.
    City of Monrovia, California.--Amounts made available to 
the City of Monrovia, California, for a natural gas vehicle 
fueling facility in fiscal year 2002 shall be made available 
for the construction of a bus transit facility along the Gold 
Line Foothill Extension. Funds shall be extended for obligation 
for one year.
    Sacramento Area Council of Governments (SACOG).--Last year, 
the Committee provided funding to the Sacramento Area Council 
of Governments (SACOG) for its regional blueprint plan. The 
Committee has since heard concerns that the Council is using 
this plan to undermine its member jurisdictions' locally-
adopted land use plans. The Committee strongly supports local 
control and disapproves of any effort by SACOG to condition the 
allocation of federal funding for any project on compliance 
with its blueprint or any other regional land-use plan that is 
in any way inconsistent with a member jurisdiction's locally-
adopted land use plans.

                      FIXED GUIDEWAY MODERNIZATION

    The accompanying bill provides $1,214,400,000 from the 
capital investment grants program to modernize existing rail 
transit systems.
    These funds are to be redistributed, consistent with the 
provisions of TEA-21, as follows:

            FEDERAL TRANSIT ADMINISTRATION, SECTION 5309 FIXED GUIDEWAY MODERNIZATION APPORTIONMENTS
----------------------------------------------------------------------------------------------------------------
                                                                        Fiscal year
                           State                           ------------------------------------    Change from
                                                                  2004          2005 estimate   fiscal year 2004
----------------------------------------------------------------------------------------------------------------
Alaska....................................................        $2,039,405        $2,115,870           $76,465
Arizona...................................................         2,300,373         2,361,176            60,803
California................................................       144,938,975       147,724,101         2,785,126
Colorado..................................................         3,041,909         3,126,150            84,241
Connecticut...............................................        40,667,777        40,942,085           274,308
District of Columbia......................................        48,962,813        50,261,990         1,299,177
Florida...................................................        17,746,299        18,197,629           451,330
Georgia...................................................        26,718,394        27,429,753           711,359
Hawaii....................................................         1,118,490         1,150,273            31,783
Illinois..................................................       133,443,961       134,603,901         1,159,940
Indiana...................................................         8,621,999         8,713,586            91,587
Louisiana.................................................         2,843,412         2,855,997            12,585
Maryland..................................................        27,828,336        28,254,850           426,514
Massachusetts.............................................        74,035,320        74,715,321           680,001
Michigan..................................................           591,335           608,258            16,923
Minnesota.................................................         5,993,572         6,144,908           151,336
Missouri..................................................         4,221,411         4,328,750           107,339
New Jersey................................................       103,066,218       103,893,255           827,037
New York..................................................       365,168,115       368,538,253         3,370,138
Ohio......................................................        17,658,039        17,826,760           168,721
Oregon....................................................         4,181,173         4,293,510           112,337
Pennsylvania..............................................       100,605,056       101,222,045           616,989
Puerto Rico...............................................         2,252,934         2,310,745            57,811
Rhode Island..............................................            80,773            82,724             1,951
Tennessee.................................................           284,836           294,402             9,566
Texas.....................................................         9,982,228        10,253,005           270,777
Virginia..................................................        16,135,255        16,559,531           424,276
Washington................................................        22,120,743        22,684,306           563,563
Wisconsin.................................................           744,588           762,866            18,278
                                                           -----------------------------------------------------
      Total Apportioned...................................     1,187,393,739     1,202,256,000        14,862,261
Oversight (1 percent).....................................        11,993,876        12,144,000           150,124
                                                           -----------------------------------------------------
      Grand Total.........................................     1,199,387,615     1,214,400,000        15,012,385
----------------------------------------------------------------------------------------------------------------

                               NEW STARTS

    The accompanying bill provides $1,030,827,000 for the new 
starts program. Funds from the general fund are supplemented 
with $39,827,000 from a Federal Railroad Administration 
transfer included in this Act.
    These funds are available for preliminary engineering, 
right-of-way acquisition, project management, oversight, and 
construction of new systems and extensions.
    The Committee directs FTA not to reallocate funds provided 
in the Department of Transportation and Related Agencies 
Appropriations Act, 2002 or previous Acts for the following new 
start projects:

          Des Moines, Iowa-DSM Bus Feasibility Project
          Dulles Corridor Project, VA
          Johnson County, Kansas-Kansas City, Missouri-I-35 Commuter 
        Rail Project
          Kenosha-Racine-Milwaukee Rail Extension Project, WI
          Maryland (MARC) Commuter Rail Improvements Projects
          Minneapolis-Rice, Minnesota, Northstar Corridor Commuter Rail 
        Project
          Northeast Indianapolis, Indiana, Downtown Corridor Project
          Philadelphia SEPTA Cross County Metro Project,PA
          Philadelphia, Pennsylvania-Schuylkill Valley Metro Project
          Puget Sound, Washington, RTA Sounder Commuter Rail Project
          Raleigh, North Carolina Triangle Transit Project
          Stockton, California, Altamont Commuter Rail Project

    The Committee makes these exceptions based on FTA 
information that these funds are likely to be awarded by the 
fourth quarter of fiscal year 2004 or soon thereafter.
    New starts rating and evaluation process.--Transit use is 
important in a number of the nation's major urban centers. 
However, many cities have built or are building systems that 
are overpriced or underutilized. A better process implemented 
by FTA for the new starts program and a more aggressive 
management of the existing process by FTA may prevent wasteful 
spending. The Committee has encouraged FTA to continually and 
consistently improve the evaluation and decision-making process 
for the new starts process. All parties involved, including 
FTA, the Congress, and local transit agencies, need to be able 
to assess projects based on a capable ratings and evaluation 
system, and the FTA needs to be more adept at weeding out 
projects that do not relieve the most congestion, move the most 
people and have the greatest cost-benefit ratio. As part of the 
Committee's work, the Office of Inspector General was asked to 
perform an audit of FTA's evaluation process in fiscal year 
2004. The Committee continues to direct FTA to develop a new 
starts process that better emphasizes cost-effectiveness and 
congestion relief.
    Reducing congestion on the roads must be one of the most 
critical elements for justification of building a new fixed 
guideway system or extending a current one. Congestion has 
spread to more cities and has become more pervasive. According 
to the latest Texas Transportation Institute report, annual 
delays suffered by the average driver due to traffic congestion 
have increased by four hours over the last five years. The vast 
majority of federal transit funding is paid for by American 
taxpayers who purchase gasoline, and it is imperative that FTA 
be able to measure how spending this funding on transit will, 
in fact, benefit those taxpayers. The IG's audit has found that 
highway congestion benefits were largely missing from FTA's 
evaluation process. This is unacceptable. The IG has 
recommended a joint evaluation be conducted by the Federal 
Highway Administration and the FTA, with the goal of 
understanding the extent to which transit provides highway 
congestion relief. This should be a critical departmental 
initiative in the next year. Therefore, the Committee directs 
FTA and FHWA to immediately begin this review and, beginning on 
October 1, 2004, FTA shall report to the House and Senate 
Committees on Appropriations by the first of every month on the 
progress. By June 1, 2005, FTA, using the information and data 
collection proposals from this review, should submit a final 
report to the House and Senate Committees on Appropriations 
showing how congestion relief could be implemented as an 
evaluation procedure and rating in the new starts process.
    Ridership estimates are also very important in supporting 
project justification. According to the IG, there have been 
notable problems with locally developed ridership forecasts 
over the years. This has presented problems for FTA in 
evaluating the user benefits of proposed projects, even 
preventing FTA from rating some projects. The obvious benefits 
of a project will fall short if ridership estimates are not 
materially attained. According to the IG's audit, FTA has 
improved its ability to identify problems with ridership 
forecasts; however, without more reliable and up-to-date 
ridership analysis, project justification will continue to be 
problematic. The Committee directs FTA to continue to identify 
these issues. In addition, the Committee directs FTA to ensure 
that, as projects progress through planning and development 
phases, forecasts reflect changes in scope and service levels 
and any other factors that materially impact ridership.
    A separate measurement that FTA uses in a new start project 
evaluation is the land use rating, which targets economic 
development opportunities around the project. The IG has found 
that in some cases, even if a project has received a low cost-
effectiveness rating, a high land use rating could result in a 
total project rating of medium. Therefore, FTA may be promoting 
projects where the cost effectiveness does not support 
continuation of the project, yet possible development 
opportunities around the project may allow it to continue 
forward. This is the case in six of FTA's recommended projects 
for fiscal year 2005. Positive secondary benefits of a new rail 
line should not be able to change the measurement of its cost-
effectiveness. In evaluating projects, the direct 
transportation benefits need to be the most significant 
measurements. To local communities, it is understandable that 
non-transportation criteria may be important in local decision-
making. However, before the local community decides to seek 
scarce federal transportation funding for the project, they 
must be able to emphasize the direct transportation benefits 
that the project will demonstrate. FTA is directed to perform a 
review of this ratings imbalance and report to the House and 
Senate Committees on Appropriations by December 10, 2004, on 
how this balance could be better reflected in FTA's process. 
This report should include an analysis of every project in the 
new starts pipeline that compares a land use rating to their 
cost effectiveness rating and the project's overall rating.
    As local communities develop their own preferred 
transportation alternatives, the Committee must insist that 
these communities use federal standards and procedures in their 
local analysis if they are to seek federal transportation 
funding through the new starts program. Further, FTA shall not 
approve the entry of any project into preliminary engineering 
if the project's alternatives analysis does not clearly espouse 
the federal new starts criteria and standards, by showing that 
the project will attract and move more riders, at lower cost, 
than other transportation alternatives. FTA is directed to work 
with FHWA to ensure that proper procedures are in place whereby 
FTA can distinguish the criteria which place the federal 
benefits of a transit alternative above those of other 
projects. FTA shall report to the House and Senate Committees 
on Appropriations by June 1, 2005, on the implementation of 
this direction.
    Appropriations for full funding grant agreements.--Before 
passage of the 1991 Intermodal Surface Transportation 
Efficiency Act (ISTEA), there were less than 10 new starts 
projects with full funding grant agreements (FFGAs). Since 
1992, a total of 49 FFGAs have been signed or recommended in 
Presidential budgets. The number of potential new starts 
projects continues to expand rapidly, outpacing realistic 
federal funding capabilities. There are currently 27 projects 
with existing full funding grant agreements and another 38 
projects in preliminary engineering, final design, or otherwise 
proposed for funding, which collectively are seeking $24.3 
billion in Federal funding. In addition, FTA is tracking 
approximately 140 current transit capital investment planning 
studies. However, the funds available for new starts projects 
over the next six years can support only a small fraction of 
these projects. For example, the House-passed reauthorization 
bill designated a total of $9.5 billion for new starts for 
fiscal years 2004 through 2009. Of the $9.5 billion, the bill 
provides $3.1 billion for the 27 transit projects with existing 
full funding grant agreements. This leaves $6.4 billion to fund 
other projects over the reauthorization period. Of this amount, 
$4.0 billion is proposed for the six projects FTA recommended 
for multi-year grant agreements in the fiscal year 2005 annual 
new starts report. If these projects are approved, only $2.4 
billion would be left to fund the $17.2 billion in estimated 
costs for the 32 projects remaining in the pipeline.
    As this demand continues to outstrip available resources, 
the Committee has had to make difficult decisions in this area. 
The Committee recommendation for new starts projects for fiscal 
year 2005 adheres to the following guidelines: (1) The 
Committee has tried to fund every project that has a current 
FFGA, at the scheduled amount as set in the grant agreement; 
(2) Specific allocations have been provided for other new start 
projects, with priority given to those projects that are 
farthest along in the new starts process. No funding has been 
provided for projects that have received a rating in the annual 
new starts report that is lower than ``recommended''; (3) The 
Committee reiterates its direction originally agreed to in the 
fiscal year 2002 conference report that FTA should not sign any 
FFGAs that have a maximum federal share of higher than sixty 
percent. Less funding, or in some instances, no funding has 
been provided for those projects in preliminary engineering or 
final design that have a federal share above sixty percent. The 
Committee agrees with the administration that statutory law 
should be changed to prohibit a federal share of no more than 
fifty percent. The Committee strongly encourages the impacted 
projects to revisit the amount of local funding they plan to 
contribute and find ways to increase their local share; (4) The 
Committee has continued to provide no funding for projects 
currently in the alternatives analysis phase, as in previous 
years, due to budget constraints. Local project sponsors of new 
rail extensions or busways can use section 5307 formula funds 
or section 5303 metropolitan planning funds for these 
activities rather than seek section 5309 discretionary funds.
    In total, the $1,030,827,000 provided in this Act, together 
with $157,914,105 in unobligated bus and bus facilities funds 
and new start funds, is to be distributed as follows:

        Project name                                              Amount
Atlanta, Georgia, North Springs Extension...............        $260,000
Baltimore, Maryland, Central Light Rail Double Track....      29,010,000
Chicago, Illinois, Douglas Branch Reconstruction........      85,000,000
Chicago, Illinois, Metra Commuter Rail Expansions and 
    Extensions..........................................      52,000,000
Chicago, Illinois, Ravenswood Line Extension............      40,000,000
Denver, Colorado, Southeast Corridor LRT................      80,000,000
Fort Lauderdale, Florida, South Florida Commuter Rail 
    Upgrades............................................      11,210,000
Las Vegas, Nevada, Resort Corridor Fixed Guideway 
    Project.............................................      36,800,000
Los Angeles, California, Eastside Light Rail Transit 
    Project.............................................      60,000,000
Los Angeles, California North Hollywood Extension.......         660,000
Minneapolis, Minnesota, Hiawatha Light Rail Project.....      33,110,000
New Orleans, Louisiana, Canal Street Corridor Project...      16,460,000
New York, New York Long Island Rail Road East Side 
    Access..............................................      92,000,000
Northern New Jersey Hudson-Bergen Light Rail MOS 1......         310,000
Northern New Jersey Hudson-Bergen Light Rail MOS 2......     100,000,000
Northern New Jersey Newark-Elizabeth Rail Line MOS 1....       1,340,000
Phoenix, Arizona, Central Phoenix/East Valley Light Rail      69,000,000
Pittsburgh, Pennsylvania, Stage II Light Rail...........       1,121,000
Portland, Oregon, Interstate Max Light Rail Extension...      23,480,000
Salt Lake City, Utah, CBD to University LRT.............       1,130,000
Salt Lake City, Utah, Medical Center Extension..........       8,680,000
San Diego, California, Mission Valley East Light Rail 
    Extension...........................................      81,640,000
San Diego, California, Oceanside-Escondido Rail Corridor      55,000,000
San Francisco, California, BART Extension to San 
    Francisco International Airport.....................     100,000,000
San Juan, Puerto Rico, Tren Urbano Rapid Transit System.      54,820,000
Seattle, Washington, Central Link Initial Segment.......      80,000,000
St. Louis, Missouri, Metrolink St. Clair Extension......          60,000
Washington, DC/MD, Largo Metrorail Extension............      75,430,000

    Dulles corridor project.--The Committee has directed FTA 
not to reallocate funding totaling $87,300,000 provided in the 
Department of Transportation and Related Agencies 
Appropriations Act, 2002 and previous Acts for the Dulles 
Corridor Project. The Committee takes special note that this 
project is important to its region and the Committee continues 
to anticipate further consideration and attention to this 
project.
    New starts report.--The Committee is satisfied with the 
timely submission of FTA's fiscal year 2005 annual report on 
new starts projects, although the document is still being 
delivered as a loose-leaf copy instead of a formal document 
submission. TEA-21 required this report to be submitted in 
conjunction with the budget, yet for several years, this report 
was submitted months late. Without a timely submission of this 
information, the Committee cannot make well-informed decisions 
about new starts projects. To ensure that this report continues 
to be submitted on time, the Committee has continued bill 
language included in fiscal year 2004 that requires FTA to 
submit its annual new starts report with the initial submission 
of the President's budget request. In addition, the Committee 
encourages FTA to continue to improve the timeliness of the 
official report's delivery and urges FTA to work to complete 
the finalized document in a more prompt manner.
    San Juan, Puerto Rico, Tren Urbano project.--The 
construction of the San Juan, Puerto Rico Tren Urbano project 
is almost complete. This project has seen many difficulties 
since its inception. In March 1996, FTA entered into the 
initial FFGA for the Tren Urbano project. Since 1996, the 
project budget has almost doubled. The revenue operation date 
has been delayed three times in three years and the date when 
it may open is still unclear. A recovery plan was implemented 
in November 2001 to address management and construction quality 
issues. The construction of the project is now 98% complete; 
however, there are 196 significant safety and performance 
issues. Of these, 74 are classified as safety-critical and 
should be resolved before Tren Urbano opens for passenger 
service. Further, construction problems and contract 
irregularities surround the project. Until the problematic 
construction and safety-related issues can be corrected in 
cooperation with the project's contractor, the system does not 
appear to be safe for passenger transport. The Puerto Rico 
Highway and Transportation Authority has correctly delayed the 
operational launch of the rail system due to these issues.
    The Office of Inspector General has remained closely 
involved in the oversight of this project and the Committee 
commends the OIG for their persistence in ensuring that this 
project is safe for public use and that any illegalities that 
have occurred are duly resolved. The Committee encourages the 
OIG to continue their diligent work in monitoring this project 
and to keep the House and Senate Committees on Appropriations 
appraised of any new developments.
    The Committee is troubled that the Federal Transit 
Administration's oversight program was not able to distinguish 
the difficulties this project was facing at critical 
construction points. The Committee expects that FTA has learned 
critical lessons from this project in recognizing the signs of 
critical obstacles or breakdowns during a project's inception 
and construction phases and expects that the agency has 
incorporated the lessons-learned into the oversight process. 
FTA is directed to monitor this project more diligently and 
ensure that any future recovery plans ensure the correction of 
all safety-related issues prior to the opening of this rail 
system.

                 JOB ACCESS AND REVERSE COMMUTE GRANTS


                                                                                Limitation on
                                                              Appropriation      obligations      Total funding
                                                             (general fund)     (trust fund)

Appropriation, fiscal year 2004...........................       $24,853,000     ($99,410,000)      $124,263,000
Budget request, fiscal year 2005..........................             - - -           (- - -)             - - -
Recommended in the bill...................................        50,000,000     (100,000,000)       150,000,000
Bill compared to:
    Appropriation, fiscal year 2004.......................       +25,147,000        (+590,000)       +25,737,000
    Budget request, fiscal year 2005......................       +50,000,000    (+100,000,000)      +150,000,000


    The purpose of the job access and reverse commute grant 
program is to develop services designed to transport welfare 
recipients and low income individuals to and from jobs and to 
develop transportation services for residents of urban centers 
and rural and suburban areas to suburban employment 
opportunities.

                        COMMITTEE RECOMMENDATION

    For fiscal year 2005, the job access and reverse commute 
(JARC) grants program is funded at a total level of 
$150,000,000, with $50,000,000 derived from the general fund 
and $100,000,000 derived from the mass transit account of the 
highway trust fund.

           GENERAL PROVISIONS--FEDERAL TRANSIT ADMINISTRATION

    The Committee continues a provision (sec. 171) exempting 
previously made transit obligations from limitations on 
obligations.
    The Committee continues a provision (sec. 172) allowing 
funds for discretionary grants of the Federal Transit 
Administration for specific projects, except for fixed guideway 
modernization projects, not obligated by September 30, 2007, 
and other recoveries to be used for other projects under 49 
U.S.C. 5309.
    The Committee continues a provision (sec. 173) allowing 
transit funds appropriated before October 1, 2004 which remain 
available for expenditure to be transferred.
    The Committee continues a provision (sec. 174) that 
modifies the calculation of the non-New Starts share of funding 
for the San Francisco Muni Third Street Light Rail Project and 
states that if the new calculation results in a ``not 
recommended'' rating, funds provided may not be obligated.
    The Committee continues a provision (sec. 175) prohibiting 
Federal transit grantees from obligating or expending funds 
after October 1, 2004, that would otherwise be available in the 
Act, if the grantee is involved directly or indirectly with any 
activity, including displaying or permitting to be displayed 
advertisements on its land, equipment, or in its facilities, 
that promotes the legalization or medial use of substances 
listed in schedule I of section 202 of the Controlled Substance 
Act.
    The Committee includes a provision (sec. 176) that allows 
the restoration of obligation authority to formula grant funds 
that were reduced due to FTA violations of the Antideficiency 
Act.
    The Committee includes a provision (sec. 177) that allows 
unobligated funds made available to the Oklahoma Transit 
Association in Public Law 108-11 to instead be made available 
to the Metropolitan Tulsa Transit Authority and the Central 
Oklahoma Transportation and Parking Authority for any project 
or activity authorized under the JARC program.

             Saint Lawrence Seaway Development Corporation


                       OPERATIONS AND MAINTENANCE

                    (HARBOR MAINTENANCE TRUST FUND)




Appropriation, fiscal year 2004.......................       $14,315,040
Budget request, fiscal year 2005......................        15,900,000
Recommended in the bill...............................        15,900,000
Bill compared with:
    Appropriation, fiscal year 2004...................        +1,584,960
    Budget request, fiscal year 2005..................             - - -


    The Saint Lawrence Seaway Development Corporation (the 
Corporation) is a wholly owned Government corporation 
established by the St. Lawrence Seaway Act of May 13, 1954. The 
corporation is responsible for the operation, maintenance, and 
development of the United States portion of the St. Lawrence 
Seaway between Montreal and Lake Erie, including the two Seaway 
locks located in Massena, NY and vessel traffic control in 
areas of the St. Lawrence River and Lake Ontario. The mission 
of the corporation is to serve the United States intermodal and 
international transportation system by improving the operation 
and maintenance of a safe, secure, reliable, efficient, and 
environmentally responsible deep-draft waterway. The 
corporation's major priorities include: safety, reliability, 
trade development, management accountability, and bi-national 
collaboration with its Canadian counterpart.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a total appropriation of 
$15,900,000 to fund the operations and maintenance of the 
corporation, which is equal to the requested amount, and 
$1,584,960 above the fiscal year 2004 level. Within the funds 
provided, $1,500,000 shall be for the concrete replacement 
project at the Eisenhower and Shell Locks. Appropriations from 
the harbor maintenance trust fund and revenues from non-federal 
sources finance the operation and maintenance of the Seaway for 
which the corporation is responsible.
    The Committee maintains a strong interest in maximizing the 
commercial use and competitive position of the St. Lawrence 
Seaway. The general language under this heading is the same as 
the language provided in previous years. 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, secure, 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--derived primarily from prior-year revenues received 
in excess of costs, unused borrowing authority, and 
miscellaneous income--for emergency purposes.

                        Maritime Administration

    The Maritime Administration (MARAD) is responsible for 
programs that strengthen the U.S. maritime industry in support 
of the nation's security and economic needs, as authorized by 
the Merchant Marine Act, 1936. MARAD's mission is to promote 
the development and maintenance of an adequate, well-balanced 
United States merchant marine, sufficient to carry the Nation's 
domestic waterborne commerce and a substantial portion of its 
waterborne foreign commerce, and capable of serving as a naval 
and military auxiliary in time of war or national emergency. 
MARAD, working with the Department of Defense (DOD), helps 
provide a seamless, time-phased transition from peacetime to 
wartime operations, while balancing the defense and commercial 
elements of the maritime transportation system. MARAD 
establishes DOD's prioritized use of ports and related 
intermodal facilities during DOD mobilizations to ensure the 
smooth flow of military cargo through commercial ports. MARAD 
also manages the Maritime Security Program, the Voluntary 
Intermodal Sealift Agreement Program and the Ready Reserve 
Force, which assure DOD access to commercial and strategic 
sealift and associated intermodal capability. Further, MARAD's 
education and training programs through the U.S. Merchant 
Marine Academy and six state maritime schools help provide 
skilled U.S. merchant marine officers.

                       MARITIME SECURITY PROGRAM




Appropriation, fiscal year 2004.......................       $98,117,670
Budget request, fiscal year 2005......................        98,700,000
Recommended in the bill...............................        98,700,000
Bill compared with:
    Appropriation, fiscal year 2004...................          +582,330
    Budget request, fiscal year 2005..................  ................


                        COMMITTEE RECOMMENDATION

    The Committee recommends $98,700,000 for the Maritime 
Security Program (MSP), consistent with the budget request. 
This recommendation provides funding directly to MARAD and 
assumes that MARAD will continue to administer the program with 
support and consultation of the Department of Defense. The 
purpose of the MSP is to maintain and preserve a U.S. flag 
merchant fleet to serve the national security needs of the 
United States. The MSP provides direct payments to U.S. flag 
ship operators engaged in U.S.-foreign trade. Participating 
operators are required to keep the vessels in active commercial 
service and are required to provide intermodal sealift support 
to the Department of Defense in times of war or national 
emergency. The Committee's recommendation provides funding for 
payments to U.S. carriers for 47 ships, limited to $2,100,000 
per ship, per year. The recommendation will provide the 
necessary resources for the operation of the MSP through fiscal 
year 2005.

                        OPERATIONS AND TRAINING




Appropriation, fiscal year 2004.......................      $106,365,718
Budget request, fiscal year 2005......................       109,300,000
Recommended in the bill...............................       106,400,000
Bill compared with:
    Appropriation, fiscal year 2004...................           +34,282
    Budget request, fiscal year 2005..................        -2,900,000


                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $106,400,000 
to fund programs under the operations and training account of 
MARAD, an increase of $34,282 above the fiscal year 2004 
appropriation and $2,900,000 below the budget request. Funds 
provided for this account are to be distributed as follows:

                        [In thousands of dollars]
------------------------------------------------------------------------
                                      Fiscal year 2005      Committee
              Activity                     request         recommended
------------------------------------------------------------------------
U.S. Merchant Marine Academy:
    Salary and Benefits.............           $23,753           $23,753
    Midshipmen Program..............             6,303             6,303
    Instructional Program...........             3,448             3,448
    Program Direction and                        2,945             2,945
     Administration.................
    Maintenance, Repair, & Operating             6,327             6,327
     Requirements...................
    Capital Improvements............            13,138            13,138
                                     -----------------------------------
      Subtotal, USMMA...............            55,914            55,914
                                     ===================================
State Maritime Schools:
    Student Incentive Payments......             1,200             1,200
    Direct Schoolship Payments......             1,200             1,200
    Schoolship Maintenance and                   8,090             8,090
     Repair.........................
                                     -----------------------------------
      Subtotal, State Maritime                  10,490            10,490
       Academies....................
                                     ===================================
MARAD Operations:
    Base Operations.................            36,560            36,560
    Enterprise Architecture & IT                   150               150
     Security Upgrades..............
    DOT Working Capital Fund (IT                 5,926             3,200
     Consolidation).................
    GSA Space.......................                94                94
    DOT electronic government.......               166               100
                                     -----------------------------------
      Subtotal, MARAD Operations....            42,896            40,104
                                     ===================================
      Total, Operations and Training           109,300           106,400
------------------------------------------------------------------------

    Under the United States Merchant Marine Academy, the 
Committee recommendation includes $55,914,000 for the operation 
and maintenance of the U.S. Merchant Marine Academy (USMMA), 
consistent with the budget request. Of these amounts, the 
Committee recommendation includes $13,138,000 for the USMMA's 
major design and construction projects, consistent with the 
facilities master plan. Under the State Maritime Schools, the 
Committee recommendation includes $10,490,000 for the six State 
Maritime Schools (SMS), consistent with the budget request. The 
Committee provides $106,400,000 for MARAD operations, a 
reduction of $2,900,000 from the budget request. This level 
will support the current number (888) of full-time equivalent 
staff years (FTEs), consistent with the budget request after 
correcting for errors in the budget justifications. Within the 
operations total, the Committee provides a total of $3,450,000 
for IT related activities. Of this total, the Committee 
provides $3,200,000 for DOT working capital fund (information 
technology consolidation), a reduction of $2,726,000 from the 
budget request; $100,000 for electronic government, a reduction 
of $66,000 from the budget request; and $150,000 to complete 
enterprise architecture and IT security and infrastructure 
enhancements, consistent with the budget request. Although 
total information technology funding is below the request 
level, the Committee reduced funding due to lack of sufficient 
justification. Further, the Committee notes that the fiscal 
year 2005 level is $618,000 higher than last year's level.

                             SHIP DISPOSAL




Appropriation, fiscal year 2004.......................       $16,115,355
Budget request, fiscal year 2005......................        21,616,000
Recommended in the bill...............................        19,116,000
Bill compared with:
    Appropriation, fiscal year 2004...................        +3,000,645
    Budget request, fiscal year 2005..................        -2,500,000


    The ship disposal program provides resources to dispose of 
obsolete merchant-type vessels in the National Defense Reserve 
Fleet (NDRF), which the Maritime Administration is required by 
law to dispose of by the end of 2006. There are currently 145 
vessels located in three fleet sites in the NDRF, designated as 
obsolete. In fiscal year 2003, MARAD removed two ships for 
disposal and projects that it will remove another 20 in 2004 
and 15 in 2005. These vessels pose a significant environmental 
threat due to the presence of hazardous substances such as 
asbestos and solid and liquid polychlorinated biphenyls (PCBs). 
The list includes a nuclear ship, the SAVANNAH, which contains 
remnants of a nuclear reactor.

                        COMMITTEE RECOMMENDATION

    The Commitee recommends $19,116,000 for ship disposal, 
$2,500,000 below the budget request, and $3,000,645 above the 
fiscal year 2004 enacted level. Within the funds provided for 
ship disposal, the Committee provides $2,000,000 to begin the 
decommissioning process for the SAVANNAH, consistent with the 
budget request.
    The Committee encourages MARAD to continue to seek a 
comprehensive solution to the challenging problem of disposing 
of the obsolete vessels of the NDRF and to first focus on the 
vessels with the lowest hull condition rating. MARAD's 
application of various disposal options will provide the best 
value to the taxpayer while ensuring the swift, responsible 
removal of obsolete NDRF vessels that threaten the environment. 
The Committee supports international disposal of vessels to the 
extent that similar standards of domestic disposal are applied 
at international facilities. Further, the Committee notes the 
recent increased competitiveness of domestic scrapping 
operations and encourages MARAD to promote aggressive 
competition among the domestic scrapping industry and 
international disposal facilities for funds appropriated for 
disposal.

              MARITIME GUARANTEED LOAN (TITLE XI) PROGRAM

                     (INCLUDING TRANSFER OF FUNDS)




Appropriation, fiscal year 2004.......................        $4,471,462
Budget request, fiscal year 2005......................         4,764,000
Recommended in the bill...............................         4,764,000
Bill compared with:
    Appropriation, fiscal year 2004...................          +292,538
    Budget request, fiscal year 2005..................  ................


    The maritime guaranteed loan account as provided for by 
title XI of the Merchant Marine Act of 1936, provides for 
guaranteed loans for purchasers of ships from the U.S. 
shipbuilding industry and for modernization of U.S. shipyards. 
Funds for administrative expenses for the title XI program are 
appropriated to this account, and then transferred by 
reimbursement to operations and training to be obligated and 
outlayed.
    As required by the Federal Credit Reform Act of 1990, this 
account includes the subsidy costs associated with the loan 
guarantee commitments made in 1992 and beyond (including 
modifications of direct loans or loan guarantees that resulted 
from obligations or commitments in any year), as well as 
administrative expenses of this program. The subsidy amounts 
are estimated on a net present value basis; the administrative 
expenses are estimated on a cash basis.

                        COMMITTEE RECOMMENDATION

    The Committee notes that MARAD is in the process of 
implementing the Inspector General's recommendations to the 
Title XI program and has developed and established internal 
policies consistent with the recommendations. The Committee 
provides $4,764,000 for the program, and approves the request 
of 3 FTE to improve administration and oversight of the Title 
XI loan process, as recommended by the IG.

                           SHIP CONSTRUCTION

                              (RESCISSION)




Rescission, fiscal year 2004..........................       -$4,107,056
Budget request, fiscal year 2005......................  ................
Recommended in the bill...............................        -1,979,000
Bill compared with:
    Rescission, fiscal year 2004......................        -2,128,056
    Budget request, fiscal year 2005..................        -1,979,000


    The Committee rescinds $1,979,000 from the ship 
construction account. This account is currently inactive except 
for determinations regarding the use of vessels built under the 
program, final settlement of open contracts, and closing of 
financial accounts.

              GENERAL PROVISIONS--MARITIME ADMINISTRATION

    The bill continues a provision (sec. 185) that authorizes 
the Maritime Administration to furnish utilities and services 
and make repairs to any lease, contract, or occupancy involving 
government property under the control of MARAD and rental 
payments shall be covered into the Treasury as miscellaneous 
receipts.
    The bill continues a provision (sec. 186) that prohibits 
obligations incurred during the current year from construction 
funds in excess of the appropriations contained in this Act or 
in any prior appropriations Act.
    The bill includes a new provision (sec. 187) that prohibits 
funding for implementation or award concerning the national 
defense tank vessel construction assistance program request for 
proposals issued by the Maritime Administration on February 20, 
2004.

              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 jurisdictions include hazardous materials, 
pipelines, international standards, 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.
    Reorganization of transportation research programs.--As 
stated above, the diverse jurisdictions of the Research and 
Special Programs Administration were authorized in statute just 
twelve years ago. This spring, the Department of Transportation 
gave notice to the appropriate Congressional committees of an 
initiative to reorganize this agency. As part of the proposal, 
the Research and Special Programs Administration would be 
abolished and reinvented as the Research and Technology 
Innovation Administration, an entity built around the 
Department's Volpe National Transportation Systems Center and 
devoted to transportation research and development.
    The status of this proposal is still being examined 
internally within the administration and no formal 
reorganization proposals have been submitted to the Congress. 
However, despite this status, DOT did submit an amendment in 
the budget request for fiscal year 2005 that would transfer the 
funding for the office of emergency transportation to the 
office of the secretary. This transfer is approved. However, in 
addition, the Committee considers it worthwhile to comment on 
two important aspects of the initial proposal that may invite 
consequences that could be detrimental to the programs.
    First, the Committee does not consider it wise to merge 
RSPA's office of pipeline safety with the Federal Railroad 
Administration, an existing administration governing a mode 
judged by DOT to be most similar to pipelines. The Committee 
believes the pending reorganization plan that calls for the 
regulation of the safety of pipelines to become the 
responsibility of the Federal Railroad Administration will 
diminish the Department's effectiveness and ability to 
adequately carry out its pipeline safety function. The pipeline 
safety program has made progress in gathering strength and 
credibility in the last five years. Loss of this momentum 
through a transfer to a subordinate position in a substantially 
different program such as that of FRA would be a very serious 
concern for the Committee. In addition, the proposal is not 
likely to be budget neutral, as the services now provided by 
RSPA's administration to OPS would have to be provided by FRA 
and replicating these services within FRA could increase the 
cost of the merger by an estimated 5-10%.
    Second, the initial proposal would move the office of 
hazardous materials safety to the Secretary's office of policy. 
Organizationally, placement of an operating administration 
under an assistant secretary in the office of the secretary, 
rather than an Administrator with operational authority, is 
unmatched and could lend the program to politicization. There 
is also no authorization or infrastructure in OST for field 
offices, enforcement, or training operations. The funding for 
this program, however, raises perhaps the most serious concern. 
As proposed, the hazmat office would lose its direct 
Congressional appropriation and would be financed through an 
assessment on the Department's modal administrations. The 
Committees on Appropriations have long deemed assessments by 
OST on the modal administrations to constitute shifts of 
appropriated funds that must go through reprogramming 
procedures. Moreover, this funding scheme will hamper 
Congressional oversight of this program. Clearly, hazmat's loss 
of control over its funding and program priorities, combined 
with the politics of attempting to manage a regulatory program 
as a staff function of OST, could frustrate effective program 
delivery.
    Regulatory backlog and NTSB recommendations.--Historically, 
RSPA has had an extensive regulatory backlog, which was of 
great concern to the Committee. In addition, RSPA's Office of 
Pipeline Safety had a substantial number of outstanding 
recommendations from the National Transportation Safety Board 
(NTSB). Although, RSPA still has a sizeable amount of work that 
needs to be done, the agency is making strides at improving 
these items. The Committee directs RSPA to remain vigilant in 
addressing regulatory backlogs and closing NTSB 
recommendations.

                     RESEARCH AND SPECIAL PROGRAMS




Appropriation, fiscal year 2004 \1\...................       $42,825,000
Budget request, fiscal year 2005......................        48,613,000
Recommended in the bill...............................        46,790,000
Bill compared with:
    Appropriation, fiscal year 2004...................        +3,965,000
    Budget request, fiscal year 2005..................        -1,823,000


\1\ Excludes $2,904,000 appropriated for the office of emergency
  transportation.

    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 for 
RSPA's programs is also provided under this appropriation.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a program level for research and 
special programs of $46,790,000. Budget and staffing data for 
this appropriation are as follows:

------------------------------------------------------------------------
                                      Fiscal year 2005   Recommended in
                                          estimate          the bill
------------------------------------------------------------------------
Hazardous materials safety..........       $25,486,000       $24,909,000
    (Positions).....................               155               149
Research and technology.............         2,597,000         2,459,000
    (Positions).....................                10                 9
 Program support....................        20,530,000        19,422,000
    (Positions).....................                70                65
                                     -----------------------------------
      Total, Research and Special           48,613,000        46,790,000
       Programs.....................
      (Positions)...................               235               223
------------------------------------------------------------------------

                       HAZARDOUS MATERIALS SAFETY

    Spent nuclear fuel and high-level radioactive waste 
shipments.--The budget requests seven new positions for 
operational, planning, communication, enforcement and legal 
challenges regarding shipments of spent nuclear fuel (SNF) and 
high-level radioactive waste (HLW), to Yucca Mountain, Nevada. 
These shipments are not likely to begin in this budget cycle, 
and due to the fiscal constraints of the fiscal year 2005 
budget, the Committee does not believe it wise to invest in 
funding for the hiring of employees that may have little to do 
at this time. The Committee has provided one of these positions 
and associated half-year costs.
    In addition, RSPA has requested $500,000 to review and 
analyze transport regulations governing SNF and HLW in 
anticipation of the future transport of these materials. While 
the Department of Energy's expectations for these shipments by 
2010 is significant, they will only account for less than one 
percent of all hazmat shipments. The Committee recognizes the 
importance of safety on America's transportation infrastructure 
as this increase begins, but continues to question the fervor 
with which RSPA is addressing it. Funding of $250,000 is 
provided for these activities.
    RSPA is reminded that the majority of the work of the 
hazardous materials safety office should be to reduce deaths 
and disruptions due to incidents every day, not five years from 
now. There are far greater needs for ensuring that current 
regulations are being followed and future rulemakings are 
getting their due attention.
     Hazardous materials regulations compliance.--RSPA is 
requesting four new positions to help ensure compliance with 
current hazmat regulations. These positions are approved and 
half-year funding associated with these positions has been 
provided.
    Training and outreach.--The fiscal year 2004 Committee's 
report included language encouraging RSPA to continue to work 
with the Cooperative Hazardous Materials Enforcement 
Development program (COHMED) to enhance RSPA's coordination of 
compliance services. The Committee continues to urge RSPA to 
reassess the decision to discontinue this partnership and 
recommend that RSPA provides the same level of support as it 
had prior to 2003.

                         RESEARCH AND TECHNOLOGY

    Hydrogen fuels research.--RSPA has requested funding for 
one new position for a hydrogen fuel engineer, plus contract 
support for hydrogen fuels research and development. Due to 
budget constraints, funding for this position is denied. 
Contract support funding of $75,000 has been provided.

                            PROGRAM SUPPORT

    Administrative support.--A total of five new positions are 
requested in fiscal year 2005 to provide accounting, financial 
support and administrative support. The Committee approves two 
new positions to support RSPA's administrative structure and 
financial support and half-year funding has been provided. The 
contracting officer position is expressly denied.
    Information technology activities.--In continuing their 
activities to improve RSPA's information technology 
infrastructure, the agency requests funding for three positions 
and contract funding. Funding for two positions and $750,000 
for contracting support has been provided.
    In addition, the Committee's fiscal year 2004 report 
requested that RSPA keep the House and Senate Committees on 
Appropriations informed of activities related to these 
infrastructure upgrades with bi-annual reports, due in August 
and February. RSPA should continue to relay this information. 
However, more detail should be provided the overall schedule of 
these upgrades, funds that have been obligated to date by 
activity, and funds anticipated for future needs.
    Administrative costs for new positions.--Consistent with 
the new positions that have been provided, $310,000 is provided 
for associated administrative costs.

                            PIPELINE SAFETY

                         (PIPELINE SAFETY FUND)

                    (OIL SPILL LIABILITY TRUST FUND)


                                                                                  (Oil spill
                                                                (Pipeline      liability trust        Total
                                                              safety fund)          fund)

 Appropriation, fiscal year 2004..........................       $52,991,000       $12,923,000       $65,914,000
 Budget estimate, fiscal year 2005........................        51,073,000        19,000,000        70,073,000
 Recommended in the bill..................................        54,466,000        14,000,000        68,466,000
Bill compared with:
    Appropriation, fiscal year 2004.......................        +1,082,000        +1,077,000        +2,552,000
    Budget estimate, fiscal year 2005.....................        +3,393,000        -5,000,000        -1,607,000


    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 also 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 programs.

                        COMMITTEE RECOMMENDATION

    The bill includes $68,466,000 to continue pipeline safety 
operations, research and development, and state grants-in-aid 
in fiscal year 2005. The bill specifies that of the total 
appropriation, $14,000,000 shall be derived from the oil spill 
liability trust fund and $54,466,000 shall be from the pipeline 
safety fund.
    State one-call grants.--The Consolidated Appropriations 
Act, 2004 (Public Law 108-199) denied a proposed decrease to 
the State one-call grants program, providing $994,000 for these 
activities. The conferees agreed that these grants are an 
important tool in reducing the number of pipeline incidents.
    The office of pipeline safety, however, only provided 
$886,000 for these grants in fiscal year 2004, a clear 
disparity from the intent of the conferees. Therefore, the 
Committee provides $1,000,000 in fiscal year 2005 for these 
grants, an increase of $114,000 above the budget request. The 
Committee directs that no less than $1,000,000 of the funds 
provided is for this purpose and reminds the agency that in the 
future, programs of special Congressional interest must go 
through the appropriate reprogramming procedures if there is a 
proposed variation to the appropriated amount.
    Pipeline safety staffing.--The staffing levels of the 
office of pipeline safety (OPS) have seen a dramatic increase 
over the last three fiscal years, with the addition of twenty-
seven new positions. OPS is requesting twelve new positions for 
fiscal year 2005. Budgetary constraints make it impossible to 
let this office continue to grow at such an astonishing rate. 
Therefore, the Committee approves the addition of two new 
pipeline inspectors, one of which shall be for Houston, Texas, 
where over 50% of the major pipeline operators are 
headquartered. All other proposed positions are denied.
    Information and analysis.--OPS requests funding to modify 
information systems to receive and store data from new types of 
pipeline inspections. Funding totaling $150,000 is provided for 
this purpose.
    Oil spill liability trust fund.--The Committee continues to 
be concerned with the significant increases in the request of 
funds from the oil spill liability trust fund. The Oil 
Pollution Act of 1990 requires that these trust funds be used 
exclusively for oil spill prevention and response activities, 
and the Committee strongly encourages the office of pipeline 
safety to allocate oversight activities between the hazardous 
liquid and gas pipelines and to factor the oil spill liability 
trust fund into the allocation formula that determines the 
hazardous liquid pipeline user fee assessment to accurately 
reflect the amount and type of oversight activities being 
conducted by the office consistent with the trust fund. The 
fiscal year 2006 budget justification should adequately address 
this issue, containing an itemization of how these funds are 
being allocated within OPS.
    Pipeline damage prevention.--The Common Ground Alliance is 
a nonprofit organization dedicated to shared responsibility in, 
and the promotion of, damage prevention. The effectiveness of 
this all volunteer organization can be seen in its over 100 
members and 21 regional alliances. Results are clearly evident 
by the 8 damage prevention recommendations that the National 
Transportation Safety Board has recently closed. The Committee 
encourages this important organization to continue to promote 
effective damage prevention practices around the nation.
    In addition, it is evident that localities have many 
opportunities to take actions to protect pipelines and their 
citizens if they understand pipeline risks and how they are 
controlled. The National Association of State Fire Marshals are 
well suited to assist OPS with promoting improved community 
emergency planning and facilitating resolution of environmental 
repair permit concerns.

                     Emergency Preparedness Grants


                     (EMERGENCY PREPAREDNESS FUND)


                                                               (Emergency        (Emergency
                                                              preparedness      preparedness          Total
                                                                  fund)        grant program)

Appropriation, fiscal year 2004...........................          $199,000     ($14,300,000)       $14,499,000
Budget estimate, fiscal year 2005.........................           200,000      (14,300,000)        14,500,000
Recommended in the bill...................................           200,000      (14,300,000)        14,500,000
Bill compared with:
    Appropriation, fiscal year 2004.......................            +1,000  ................            +1,000
    Budget estimate, fiscal year 2005.....................  ................  ................  ................


    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.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $200,000, the same amount as 
requested, for activities related to emergency response 
training curriculum development and updates, as authorized by 
section 117(A)(i)(3)(B) of HMTUSA. The Committee has provided 
an obligation limitation of $14,300,000 for the emergency 
preparedness grant program.

                      Office of Inspector General


                         SALARIES AND EXPENSES

    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.




Appropriation, fiscal year 2004.......................       $55,670,000
Budget request, fiscal year 2005......................        59,000,000
Recommended in the bill...............................        58,000,000
Bill compared with:
    Appropriation, fiscal year 2004...................        +2,330,000
    Budget request, fiscal year 2005..................        -1,000,000


                        COMMITTEE RECOMMENDATION

    The Committee recommendation provides $58,000,000 for 
activities of the Office of Inspector General. Due to budget 
constraints in the fiscal year 2005 bill, this is $1,000,000 
below the amount requested in the budget estimate. The 
Committee continues to value highly the work of the Office of 
Inspector General in oversight of departmental programs and 
activities.
    In addition, the OIG will receive $7,974,000 from other 
agencies in this bill, as noted below:

Federal Highway Administration..........................      $3,524,000
Federal Transit Administration..........................       3,000,000
Federal Aviation Administration.........................       1,200,000
National Transportation Safety Board....................         250,000

    Funding is sufficient to finance 435 full-time equivalent 
(FTE) staff years in fiscal year 2005, for an increase of 5 
FTE.
    Unfair business practices.--The bill maintains language 
first enacted in fiscal year 2000 which authorizes the OIG to 
investigate allegations of fraud and unfair or deceptive 
practices and unfair methods of competition by air carriers and 
ticket agents.
    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. The OIG is also directed to withhold from 
public distribution for a period of 15 days any final audit or 
investigative report which was requested by the House or Senate 
Committees on Appropriations.

                      Surface Transportation Board

    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 transferred 
certain motor carrier functions to the Federal Highway 
Administration (now under the Federal Motor Carrier Safety 
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 
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 made by the 
Staggers Rail Act of 1980.

                         SALARIES AND EXPENSES




Appropriation, fiscal year 2004 \1\...................       $19,406,000
Budget request, fiscal year 2005 \2\..................        20,521,000
Recommended in the bill \3\...........................        20,771,000
Bill compared with:
    Appropriation, fiscal year 2004...................        +1,365,000
    Budget request, fiscal year 2005..................          +250,000


\1\ Of this total, $1,050,000 is offset through the collection of user
  fees.
\2\ Assumes collection of $1,050,000 in user fees, to offset the
  appropriation as the fees are collected throughout the fiscal year.
\3\ Assumes collection of $1,250,000 in user fees, to offset the
  appropriation as the fees are collected throughout the fiscal year.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a total appropriation of 
$20,771,000, an increase of $250,000 above the budget request. 
Included in the recommended amount is an estimated $1,250,000 
in fees, which will offset the appropriated funding. At this 
funding level, the Board will be able to accommodate 145 full-
time equivalent staff years.
    The Committee is aware that an error was made in the 
communication between the DOT office of budget and the Surface 
Transportation Board regarding the Board's fiscal year 2005 
budget request. The Department informed the Board that the 
request would be $20,621,000; however, the budget appendix 
lists the amount of $20,521,000, leaving a gap of $100,000. The 
Committee is troubled that communication from the Secretary's 
budget office was inaccurate and urges the office to increase 
the oversight over this process so that these types of needless 
errors do not occur again in the future. The Committee has 
provided $100,000 in this appropriation.
    Spent nuclear fuel and radioactive waste transport.--In 
April 2004, the Department of Energy announced that its 
preferred mode to transport radioactive materials to the Yucca 
Mountain depository in Nye County, Nevada, will be heavily 
dependent on rail. The Department of Energy has also announced 
its intent to prepare an environmental impact statement (EIS) 
that is necessary for the construction and operation of this 
new rail line. In May, the Department of Energy requested the 
participation of the Surface Transportation Board in this EIS 
process, as the Board must review all new common carrier rail 
construction lines. Currently, the Board has limited resources 
to successfully participate in this EIS, as it is estimated to 
require twenty-five percent of the Board's environmental staff. 
Therefore, the Committee has provided an additional $150,000 
for the Board's expenses as it participates in this EIS 
process. In addition, the Board shall submit to the House and 
Senate Committees on Appropriations a complete list of expenses 
related to this process by November 1, 2005.
    Travel.--The Committee notes that the travel budget for the 
Surface Transportation Board has increased substantially over a 
two-year period, jumping from $41,000 in fiscal year 2003 to a 
request of $87,000 in fiscal year 2005. In addition, during the 
majority of this time period, there have been two vacancies, 
the Vice Chairman and the Commissioner. The Committee is 
concerned that the travel budget under the current Board 
Chairman has doubled and insists that the Board look closely at 
the obligation of these expenses.
    User fees.--Current statutory authority, under 31 U.S.C. 
9701, grants the Board the authority to collect user fees. The 
Committee believes that $1,250,000 in user fees is reasonable. 
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. This language, 
continued from last year, simplifies the tracking of the 
collections and provides the Board with more flexibility in 
spending its appropriated funds.
    Union Pacific/Southern Pacific merger.--On December 12, 
1997, the Board granted a joint request of Union Pacific 
Railroad Company and the City of Wichita and Sedgwick County, 
KS (Wichita/Sedgwick) to toll the 18-month mitigation study 
pending in Finance Docket No. 32760. The decision indicated 
that at such time as the parties reach agreement or discontinue 
negotiations, the Board would take appropriate action.
    By petition filed June 26, 1998, Wichita/Sedgwick and UP/SP 
indicated that they had entered into an agreement, and jointly 
petitioned the Board to impose the agreement as a condition of 
the Board's approval of the UP/SP merger. By decision dated 
July 8, 1998, the Board agreed and imposed the agreement as a 
condition to the UP/SP merger. The terms of the negotiated 
agreement remain in effect. If UP/SP 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.

            GENERAL PROVISIONS--DEPARTMENT OF TRANSPORTATION

    The Committee continues the provision (sec. 188) allowing 
the Department of Transportation to use funds for aircraft; 
motor vehicles; liability insurance; uniforms; or allowances, 
as authorized by law.
    The Committee continues the provision (sec. 189) limiting 
appropriations for services authorized by 5 U.S.C. 3109 to the 
rate for an Executive Level IV.
    The Committee continues the provision (sec. 190) 
prohibiting funds in this Act for salaries and expenses of more 
than 106 political and Presidential appointees in the 
Department of Transportation, and prohibits political and 
Presidential personnel assigned on temporary detail outside the 
Department of Transportation.
    The Committee continues the provision (sec. 191) 
prohibiting funds for the implementation of section 404 of 
title 23, U.S.C.
    The Committee continues the provision (sec. 192) 
prohibiting recipients of funds made available in this Act from 
releasing personal information, including social security 
number, medical or disability information, and photographs from 
a driver's license or motor vehicle record, without express 
consent of the person to whom such information pertains; and 
prohibits the withholding of funds provided in this Act for any 
grantee if a state is in noncompliance with this provision.
    The Committee continues the provision (sec. 193) allowing 
funds received by the Federal Highway Administration, Federal 
Transit Administration, and the Federal Railroad Administration 
from states, counties, municipalities, other public 
authorities, and private sources to be used for expenses 
incurred for training may be credited to each agency's 
respective accounts.
    The Committee continues the provision (sec. 194) 
authorizing the Secretary of Transportation to allow issuers of 
any preferred stock to redeem or repurchase preferred stock 
sold to the Department of Transportation.
    The Committee continues the provision (sec. 195) 
prohibiting funds in Title I of this Act for issuance of any 
grant unless the Secretary of Transportation notifies the House 
and Senate Committees on Appropriations not less than three 
full business days before any discretionary grant award, letter 
of intent, or full funding grant agreement totaling $1,000,000 
or more is announced by the department or its modal 
administrations.
    The Committee continues a provision (sec. 196) for the 
Department of Transportation allowing funds received from 
rebates, refunds, and similar sources to be credited to 
appropriations.
    The Committee continues a provision (sec. 197) allowing 
amounts from improper payments to a third party contractor that 
are lawfully recovered by the Department of Transportation to 
be available to cover expenses incurred in recovery of such 
payments.
    The Committee continues a provision (sec. 198) allowing the 
Secretary of Transportation to transfer unexpended sums from 
``Office of the secretary, salaries and expenses'' to 
``Minority business outreach''.
    The Committee continues the provision (sec. 199) 
prohibiting funds for the Office of the Secretary of 
Transportation to approve assessments or reimbursable 
agreements pertaining to funds appropriated to the modal 
administrations in this Act, unless such assessments or 
agreements have completed the normal reprogramming process for 
Congressional notification.

                  TITLE II--DEPARTMENT OF THE TREASURY


                          Departmental Offices


                         SALARIES AND EXPENSES

                     (INCLUDING TRANSFER OF FUNDS)




Appropriation, fiscal year 2004.......................      $175,070,000
Budget request, fiscal year 2005......................       185,041,000
Recommended in the bill...............................       177,000,000
Bill compared with:
    Appropriation, fiscal year 2004...................        +1,930,000
    Budget request, fiscal year 2005..................        -8,040,000


    The Departmental Offices' function in the Treasury 
Department is to provide basic support to the Secretary of the 
Treasury, who is the chief operating executive of the 
Department. The Secretary of the Treasury also has a primary 
role in formulating and managing the domestic and international 
tax and financial policies of the Federal Government. The 
Secretary's responsibilities funded by the salaries and 
expenses appropriation include: recommending and implementing 
United States domestic and international economic and tax 
policy; fiscal policy; governing the fiscal operations of the 
Government; maintaining foreign assets control; managing the 
public debt; managing development of financial policy; 
representing the United States on international monetary, trade 
and investment issues; overseeing Treasury Department overseas 
operations; directing the administrative operations of the 
Treasury Department; and providing executive oversight of the 
bureaus within the Treasury Department. This account also 
includes funding for the office of professional responsibility.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $177,000,000 
for departmental offices, salaries and expenses, an increase of 
$1,930,000 above the fiscal year 2004 enacted level and a 
decrease of $8,040,000 below the budget request. The Committee 
has reinstated the statutory travel limitation due to the 
tardiness of the report required in last year's report and 
directs the Secretary to provide to the House and Senate 
Committees on Appropriations quarterly reports on travel 
expenditures funded through this account and summarized by 
office, including travel charges incurred and paid for 
protection. In addition, each report shall contain specific 
details regarding international travel by the office of 
international affairs.
    The bill includes $3,000,000 for information technology, 
$258,000 for unforeseen emergencies, $21,855,000 for the office 
of foreign assets control, $2,900,000 for grants to fight money 
laundering, and $3,393,000 for Treasury-wide financial 
statement audits.
    The Committee's recommendation reduces the funds available 
for official representation and reception expenses to $75,000, 
bringing the department's funding level in line with other 
departments. The Secretary is to distribute this amount 
department wide.
    The Committee's recommendation assumes the following 
changes to the fiscal year 2005 budget request: -$288,883 from 
economic policy; -$988,664 from international affairs; 
-$503,513 from tax policy; -$337,793 from domestic policy; 
-$2,359,910 from management and CFO programs; -$1,080,738 from 
executive direction; -$2,481,499 from administration; and 
-$639,000 from the proposed FASAB and JFMIP transfer from OMB. 
The Committee has restored funds to OMB for this purpose.
    In fiscal year 2004, the conferees provided the department 
with an increase of $6,100,000 to accommodate the transfer of 
employees from the Department of the Treasury to the Department 
of Homeland Security, with the understanding that the increase 
was a one-time accommodation. Both the House and Senate 
Committees on Appropriations directed the department to submit 
a report detailing how the department would reach the post-
transfer target FTE level, with the Senate report due by March 
1, 2004. After repeated inquiries, the department finally 
submitted a report on June 3, 2004 with the basic message that 
the department planned to annualize the ``one-time'' increase 
and create another new terrorist financing office; one that was 
not even included in the fiscal year 2005 budget request. This 
action is completely contrary to the direction of the 2004 
appropriation.
    The Committee suggests that since the terrorist financing 
and financial crimes office is less than one year old, having 
been created at the department's suggestion through the fiscal 
year 2004 appropriation, the department might explore ways the 
current office, and some well-placed detailed Treasury 
employees, could meet the needs of the department rather than 
creating yet another new office. Since the Committee has yet to 
receive adequate information on any new terrorism office, has 
not received an official budget amendment from the 
administration, and did not appropriate funds for a terrorism 
office outside of the terrorist financing and financial crimes 
office, the Committee assumes that no new office has been 
created.
    The Committee notes that the banking and financial services 
industry report to a wide number of regulators, including eight 
major federal independent regulatory agencies, other minor 
federal regulators, and state regulatory agencies responsible 
for enforcing banking and security statutes. The Committee is 
aware that the statutes provide the regulatory agencies with a 
measure of authority to act expeditiously and autonomously with 
respect to an institution or a set of institutions under their 
jurisdiction. The Committee recognizes that the diversity of 
agencies and their autonomy can present challenges for having 
unified oversight of the banking and financial services 
industry.
    The Committee wants to ensure that existing regulatory 
protocols and intelligence assets are adequately coordinated 
and deployed to maximize enforcement of the Bank Secrecy Act 
and the USA PATRIOT Act. The Committee considers it important 
that enforcement of these statutes involve coordinated action 
by regulators and the intelligence community from across a 
broad spectrum of disciplines, where oversight responsibility 
has not been consolidated in one single authority. Rather, 
experts in diverse fields should work together to provide 
oversight.
    The Committee encourages the Department of the Treasury, 
working with other departments and agencies with jurisdiction, 
including the Department of Homeland Security and Department of 
Justice, to explore developing and instituting centralized 
interagency examination procedures that capitalize on the 
existing experience of federal regulators for enforcement of 
the Bank Secrecy Act and the USA PATRIOT Act. The goal is to 
attain effective cross-agency protocols that leverage on-hand 
agency assets, avoid duplication of effort, and stove-piped 
rigid examinations that only serve to impose increased 
regulatory burden on the banking and financial services 
industry.
    The Committee is aware of the need for secure internet 
communication in the department in order to prevent cyber 
attacks and identity theft. The Committee supports implementing 
fully certificate-based internet security capabilities as 
appropriate to provide standards-based e-mail encryption and 
digital signatures; permit interoperability with the federal 
bridge and other government public key infrastructure systems 
and applications; demonstrate proven scalability; support 
multiple platforms; and include automated, secure key and 
certificate management.
    The U.S. Treasury's October 2003 Report to Congress on 
China's currency policy, as mandated by the Exchange Rates and 
International Economic Policy Coordination Act of 1988, leaves 
unanswered questions regarding the state of China's current 
policy, and the effects of those policies on manufacturing 
businesses. The Committee directs the Secretary of the Treasury 
to provide to the House and Senate Committees on 
Appropriations, within 60 days of the enactment of this Act, a 
plan to address Chinese currency policies if China does not 
adopt a flexible exchange rate by September 30, 2005. The 
report should include an update of the October 3, 2003 report 
and the April 2004 report by including the import and export 
data provided by China regarding all of its trading partners 
including the United States.
    The Committee is aware that until the year 2000, imported 
homeopathic medicines were consistently classified by the 
Customs Service as medicaments. Several letter rulings reflect 
this longstanding and uniform practice. The Committee is also 
aware that starting in 2000, the Customs Service reversed 
itself and began to classify these medicaments as alcoholic 
beverages or as food. Although the Customs Service has been 
transferred from the Department of the Treasury to the 
Department of Homeland Security, the Treasury Department 
retains the authority to overturn Customs' classification 
decisions. The Committee urges the Treasury Department to use 
its authority to review this matter and to give strong 
consideration to upholding past precedence in the 
classification of imported homeopathic medicines.
    The Committee recognizes the prominence placed on economic 
and financial issues at the Organization for Economic 
Cooperation and Development in Paris, France, and recommends 
that the Department of the Treasury maintain a senior staff 
presence attached to the United States Mission in Paris. Over 
the years, there has been an erosion in the presence of the 
Treasury Department at the United States Mission, but the 
importance of the issues involved necessitate that this trend 
now cease and that a senior position be established.

        DEPARTMENT-WIDE SYSTEMS AND CAPITAL INVESTMENTS PROGRAMS

                     (INCLUDING TRANSFER OF FUNDS)




Appropriation, fiscal year 2004.......................       $36,185,000
Budget request, fiscal year 2005......................        36,072,000
Recommended in the bill...............................        36,072,000
Bill compared with:
    Appropriation, fiscal year 2004...................          -113,000
    Budget request, fiscal year 2005..................  ................


    This appropriation funds the modernization of Treasury 
business processes and increases in department-wide systems 
efficiency through technology investments for systems that 
involve more than one Treasury bureau or Treasury's interface 
with other governmental agencies.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $36,072,000 
for department-wide systems and capital investments programs, 
the same as the budget request and a decrease of $113,000 below 
the fiscal year 2004 funding level.
    The Committee is aware that new technology providing a 
vulnerability management solution is nearing completion of the 
evaluation process by the National Institute of Standards and 
Technology so as to receive Common Criteria evaluation at EAL3. 
This appliance-based technology runs a hardened operating 
system and communicates through encryption using unique digital 
certificates for authentication and by performing the 
continuous monitoring requirement specified by NIST SP 800-37, 
section 2.7. It further facilitates common operating 
environment policy through host-baselining and alerts. In an 
effort to better prove its effectiveness in meeting 
vulnerability standards of the department and the IRS, the 
Committee strongly urges the department to use available funds 
to demonstrate this technology.

                      OFFICE OF INSPECTOR GENERAL

                         SALARIES AND EXPENSES




Appropriation, fiscal year 2004.......................       $12,923,000
Budget request, fiscal year 2005......................        14,158,000
Recommended in the bill...............................        16,500,000
Bill compared with:
    Appropriation, fiscal year 2004...................        +3,577,000
    Budget request, fiscal year 2005..................        +2,342,000


    This appropriation provides agency-wide audit and 
investigative functions to identify and correct operational and 
administrative deficiencies, which create conditions for 
existing or potential instances of fraud, waste, and 
mismanagement. The audit function provides program, contract, 
and financial statement audit services. Contract audits provide 
professional advice to agency contracting officials on 
accounting and financial matters relative to negotiation, 
award, administration, repricing, and settlement of contracts. 
Program audits review and evaluate all facets of agency 
operations. Financial statement audits assess whether financial 
statements fairly present the agency's financial condition and 
results of operations, the adequacy of accounting controls, and 
compliance with laws and regulations. The investigative 
function provides for the detection and investigation of 
improper and illegal activities involving programs, personnel, 
and operations.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $16,500,000 
for the Office of Inspector General, an increase of $3,577,000 
above the fiscal year 2004 enacted level and an increase of 
$2,342,000 above the budget request. The increase is for 
additional audit capability in the areas of regulation 
responsibility and the on-going audit of the Treasury building 
renovation project. The bill includes $2,000,000 for official 
travel expenses, and up to $100,000 for unforeseen emergencies.
    Treasury building and annex repair and restoration 
project.--The Committee notes that since inception, 
$234,800,000 has been appropriated for this project. For fiscal 
year 2004, the Treasury Inspector General was directed to 
conduct an audit of the Treasury Building renovation and 
restoration contracts. As part of the Committee's ongoing 
oversight of major capital projects, the Committee directs the 
Treasury Inspector General to continue audit coverage of the 
project during fiscal year 2005. That audit shall include, but 
is not limited to, the inspection of the Treasury Building to 
the extent deemed necessary by the Treasury Inspector General 
to determine whether the renovation work conformed to 
applicable building codes. The Treasury Inspector General is 
authorized to use a contracted independent inspector for this 
purpose to be selected and supervised by the Treasury Inspector 
General. The inspection cost shall be paid from the ``Treasury 
building and annex repair and restoration'' appropriation in an 
amount not to exceed $2,000,000.
    In addition, the audit should identify existing Treasury 
employees in a decision-making position, who did not promptly 
vacate the Treasury building to temporary office space as 
directed during any rehabilitation phase. The Committee has 
learned that Treasury pays over $1,000,000 in rent monthly for 
temporary office space to handle the employees displaced during 
construction. Any time those employees chose not to move 
despite the construction efforts, the department assumed 
additional costs in both excess rent and construction delays. 
The Committee directs that any fiscal year 2005 pay increase be 
withheld from identified employees in order to make an effort 
to recoup the lost costs. The Inspector General shall submit 
the results of its audit work to the Committee no later than 
July 1, 2005.
    FinCon audit.--The Committee directs The Department of the 
Treasury's Inspector General to provide the Committee with a 
status report no later than May 2, 2005 detailing he Financial 
Crimes Enforcement Network's progress in establishing the 
Office of Compliance, as outlined by the Department and the 
Financial Crimes Enforcement Network. The report should include 
an assessment of FTE sufficiency to conduct an effective Bank 
Secrecy Act compliance program as well as the level of 
cooperation being achieved in implementing the planned 
memoranda of agreements with the federal regulatory agencies 
charged with examination and enforcement responsibilities for 
Bank Secrecy Act compliance.

           TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION

                         SALARIES AND EXPENSES




Appropriation, fiscal year 2004.......................      $127,279,000
Budget request, fiscal year 2005......................       129,126,000
Recommended in the bill...............................       129,126,000
Bill compared with:
    Appropriation, fiscal year 2004...................        +1,847,000
    Budget request, fiscal year 2005..................  ................


    The Internal Revenue Service (IRS) Restructuring and Reform 
Act of 1998 established the Office of Treasury Inspector 
General for Tax Administration and abolished the IRS Office of 
the Chief Inspector. The Office was established in January of 
1999 as required by that legislation. The Treasury Inspector 
General for Tax Administration conducts audits, investigations, 
and evaluations to assess the operations and programs of the 
IRS and its related entities, the IRS Oversight Board and the 
Office of Chief Counsel. The purpose of those audits and 
investigations is to: (1) promote the economic, efficient, and 
effective administration of the nation's tax laws and to detect 
and deter fraud and abuse in IRS programs and operations; and 
(2) recommend actions to resolve fraud and other serious 
problems, abuses, and deficiencies in these programs and 
operations.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $129,126,000 
for the Treasury Inspector General for Tax Administration, an 
increase of $1,847,000 above the fiscal year 2004 enacted level 
and equal to the budget request.

                AIR TRANSPORTATION STABILIZATION PROGRAM




Appropriation, fiscal year 2004.......................        $2,523,000
Budget request, fiscal year 2005......................         2,800,000
Recommended in the bill...............................         2,000,000
Bill compared with:
    Appropriation, fiscal year 2004...................          -523,000
    Budget request, fiscal year 2005..................          -800,000


    The Air Transportation Stabilization Board was authorized 
in the Air Transportation Safety and Stabilization Act to issue 
$10,000,000,000 of federal credit instruments to air carriers. 
The purpose is ``to compensate air carriers for losses incurred 
by the air carriers as a result of the terrorist attacks on the 
United States that occurred on September 11, 2001'', providing 
among other criteria, that ``such agreement is a necessary part 
of maintaining a safe, efficient, and viable commercial 
aviation system in the United States''.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $2,000,000 for 
the air transportation stabilization program, a decrease of 
$523,000 below the fiscal year 2004 enacted level and $800,000 
below the budget request. The Committee's recommendation is 
based on the fact that the program activities planned for 
fiscal year 2005 are reduced greatly from previous years.

           TREASURY BUILDING AND ANNEX REPAIR AND RESTORATION

                     (INCLUDING TRANSFER OF FUNDS)




Appropriation, fiscal year 2004.......................       $24,853,000
Budget request, fiscal year 2005......................        20,316,000
Recommended in the bill...............................        20,316,000
Bill compared with:
  Appropriation, fiscal year 2004.....................        -4,537,000
  Budget request, fiscal year 2005....................  ................


    This appropriation funds the repairs, selected 
improvements, and construction necessary to renovate and 
maintain the main Treasury Building, the Treasury annex, and 
other Treasury buildings.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $20,316,000 
for Treasury Building and Annex Repair and Restoration (T-
BARR), a decrease of $4,537,000 below the fiscal year 2004 
enacted level and the same as the budget request. The requested 
and proposed funding level should be the final year of funding 
for this project. The Committee included a provision in this 
account allowing for the transfer of up to $2,000,000 to be 
merged with the Office of Inspector General for the purpose of 
expenses related to the T-BARR audit.
    The Committee has directed the Inspector General to 
continue with the T-BARR audit initiated by a direction in the 
fiscal year 2004 report. Based on preliminary findings, the 
Committee directs a complete investigation into the entire T-
BARR project.
    The Committee notes that the original intention of this 
project, and in fact the title of this account, assume that the 
Treasury annex building would be repaired and restored. 
However, the Committee is unaware of any construction 
activities underway or completed as related to this property. 
The Committee directs the department to provide a report on the 
funds and progress made to repair and restore the Treasury 
annex building from funds made available under this heading in 
this or prior fiscal years, the extent that those repairs have 
addressed fully the infrastructure needs and safety concerns of 
the building, and what future year funding requirements will be 
needed to finish the project.

                 EXPANDED ACCESS TO FINANCIAL SERVICES

                              (RESCISSION)




Rescission, fiscal year 2004..........................  ................
Budget request, fiscal year 2005......................       -$4,000,000
Recommended in the bill...............................        -4,000,000
Bill compared with:
  Rescission, fiscal year 2004........................        -4,000,000
  Budget request, fiscal year 2005....................  ................


    The Committee recommends a cancellation of $4,000,000 from 
unobligated balances of the expanded access to financial 
services fund, the same as the budget request. This rescission 
was not included in fiscal year 2004.

                    VIOLENT CRIME REDUCTION PROGRAM

                              (RESCISSION)




Rescission, fiscal year 2004..........................  ................
Budget request, fiscal year 2005......................       -$1,000,000
Recommended in the bill...............................        -1,000,000
Bill compared with:
  Rescission, fiscal year 2004........................        -1,000,000
  Budget request, fiscal year 2005....................  ................


    The Committee recommends a cancellation of $1,000,000 from 
unobligated balances of the violent crime reduction program, 
the same as the budget request. This rescission was not 
included in fiscal year 2004.

                  Financial Crimes Enforcement Network


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2004.......................       $57,231,000
Budget request, fiscal year 2005......................        64,502,000
Recommended in the bill...............................        64,502,000
Bill compared with:
  Appropriation, fiscal year 2004.....................        +7,271,000
  Budget request, fiscal year 2005....................             - - -


    The Financial Crimes Enforcement Network (FinCEN) is 
responsible for implementing Treasury's anti-money laundering 
regulations through administration of the Bank Secrecy Act, 31 
U.S.C. section 5311, et seq. (BSA). It also serves as a United 
States Government source for the systematic collection and 
analysis of information to assist in the investigation of money 
laundering and other financial crimes. FinCEN supports law 
enforcement investigative efforts by federal, state, local and 
international agencies, and fosters interagency and global 
cooperation against domestic and international financial 
crimes. It also provides U.S. policymakers with strategic 
analyses of domestic and worldwide trends and patterns. It 
prevents money laundering through its regulatory and outreach 
programs, including setting policy for and overseeing BSA 
compliance by financial institutions, and by providing BSA 
training for law enforcement, bankers, and bank regulators. 
Pursuant to the USA Patriot Act of 2001, FinCEN was made a 
Treasury Bureau in recognition of its key role in supporting 
investigations and other government efforts to identify and 
stop the financing of terrorist organizations and activity. The 
Patriot Act also gave FinCEN substantial new responsibilities 
for collecting, sharing, and managing financial and other 
information as part of its counter-terrorism mission.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $64,502,000 
for the financial crimes enforcement network, an increase of 
$7,271,000 above the fiscal year 2004 enacted level and the 
same as the budget request. The Committee gives FinCEN full 
flexibility to determine the funding allocation across fiscal 
year 2005 activities as described in the budget justification. 
FinCEN is to provide details of the allocation in the 2005 
operating plan.
    While the Committee recognizes the potential value of the 
work of FinCEN, the Committee also recognizes that the 
authorizing committees of jurisdiction are contemplating a new 
structure for enforcing security regulations. Until a decision 
is made, the Committee recommends limited growth for this 
program.

                      Financial Management Service


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2004.......................      $227,210,000
Budget request, fiscal year 2005......................       230,930,000
Recommended in the bill...............................       230,930,000
Bill compared with:
  Appropriation, fiscal year 2004.....................        +3,720,000
  Budget request, fiscal year 2005....................  ................


    The Financial Management Service (FMS) is responsible for 
the management of federal finances and the collection of 
federal debt. As the Federal Government's central financial 
agent, FMS receives and disburses public monies, maintains 
government accounts, and reports on the status of the 
government's finances. FMS is also accountable for developing 
and implementing the most reliable and efficient financial 
methods and systems to manage and improve the Government's cash 
management, credit management, and debt collection programs. 
Pursuant to the Debt Collection Improvement Act of 1996, FMS 
became the primary agency for the collecting of federal non-tax 
debt that is due and owed to the government. Through FMS, there 
is a coordinated effort to collect debt from those who have 
defaulted on agreements with the Federal Government.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $230,930,000 
for the Financial Management Service, an increase of $3,720,000 
above the fiscal year 2004 enacted level and the same as the 
budget request. The bill includes up to $9,220,000 for 
information systems modernization initiatives and up to $2,500 
for official reception and representation expenses.
    The Committee directs FMS in cooperation with the Office of 
Management and Budget to submit a report by March 31, 2005 
detailing the various other financial management and fund 
distribution programs and initiatives underway, primarily those 
that are operating as a franchise fund or enterprise program.

                Alcohol and Tobacco Tax and Trade Bureau


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2004.......................       $79,528,000
Budget request, fiscal year 2005......................        81,942,000
Recommended in the bill...............................        82,542,000
Bill compared with:
    Appropriation, fiscal year 2004...................        +3,014,000
    Budget request, fiscal year 2005..................          +600,000


    The Alcohol and Tobacco Tax and Trade Bureau (TTB) is 
responsible for the enforcement of laws designed to eliminate 
certain illicit activities and to regulate lawful activities 
relating to distilled spirits, beer, wine and nonbeverage 
alcohol products, and tobacco. Its responsibilities are focused 
on collecting revenue; reducing taxpayer burden and improving 
service while preventing diversion; and protecting the public 
and preventing consumer deception in certain regulated 
commodities.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $82,542,000 
for the Alcohol and Tobacco Tax and Trade Bureau, an increase 
of $3,014,000 above the fiscal year 2004 enacted level and 
$600,000 above the budget request. The bill includes up to 
$6,000 for official reception and representation expenses and 
up to $50,000 for cooperative research and development 
programs. The Committee's recommendation includes additional 
funds to start the process of creating a stand-alone 
information technology infrastructure in light of the pending 
system separation from the Bureau of Alcohol, Tobacco, and 
Firearms and the Department of Homeland Security.

                    Bureau of Engraving and Printing

    The Bureau of Engraving and Printing (BEP) designs, 
manufactures, and supplies Federal Reserve notes, various 
public debt instruments, as well as most evidences of a 
financial character issued by the United States, such as 
postage and internal revenue stamps. The BEP also executes 
certain printings for various territories administered by the 
United States, particularly postage and revenue stamps.
    The operations of the BEP are financed by a revolving fund 
established in accordance with the provisions of Public Law 81-
656, August 4, 1950 (31 U.S.C. 181), which requires the BEP to 
be reimbursed by customer agencies for all costs of 
manufacturing products and services performed. The BEP is also 
authorized to assess amounts to acquire capital equipment and 
provide for working capital needs. The anticipated work volume 
is based on estimates of requirements submitted by agencies 
served. The following table summarizes BEP revenue and expense 
data for fiscal years 2003 through 2005:

----------------------------------------------------------------------------------------------------------------
                                                                2003 (actual)   2004 (estimate)  2005 (estimate)
----------------------------------------------------------------------------------------------------------------
Total revenue................................................     $518,085,000     $539,000,000     $587,000,000
    Revenue from currency....................................      469,642,000      495,000,000      555,000,000
    Revenue from stamps......................................       37,513,000       38,000,000       26,000,000
    Other revenue............................................       10,930,000        6,000,000        6,000,000
Cost of operations...........................................      530,191,000      539,000,000      587,000,000
Net revenue\1\ (to Treasury).................................      -12,106,000  ...............  ...............
----------------------------------------------------------------------------------------------------------------
\1\ Capital investments will be less than depreciation, a non-cash expense, in each of these years. In order to
  avoid accumulating working capital in excess of Bureau needs, currency prices are set at a level that will
  result in an annual loss (on paper). This loss will not exceed the depreciation expense, ensuring the solvency
  of the Bureau's revolving fund.

    The Committee supports the Bureau of Engraving and Printing 
(BEP) in its efforts to redesign the $20 and $50 notes and 
encourages the BEP to move expeditiously to enhance the anti-
counterfeiting features of higher denomination bills, such as 
$100 notes. The $100 bank note is the most counterfeited in the 
world and could benefit by advanced features that are already 
on the Euro and the British Pound, such as the optically 
variable devices that will make the note significantly more 
difficult to counterfeit. The Committee requests that the BEP 
report to the Committee within 90 days of enactment the status 
of any $100 note redesign plans.

                           United States Mint


               UNITED STATES MINT PUBLIC ENTERPRISE FUND

    The United States Mint manufactures coins, receives 
deposits of gold and silver bullion, and safeguards the Federal 
Government's holdings of monetary metals. For fiscal year 1997, 
Congress established the United States Mint Public Enterprise 
Fund (Public Law 104-52), which authorized the U.S. Mint to use 
proceeds from the sale of coins to finance the costs of its 
operations and which consolidated all existing Mint accounts 
into a single fund. Public Law 104-52 also provides that, in 
certain situations, the levels of capital investments for 
circulating coins and protective services shall factor into the 
decisions of the Congress such that those levels compete with 
other requirements for funding.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a spending level for capital 
investments by the U.S. Mint for circulating coinage and 
protective services of $41,100,000, an increase of $448,000 
above the fiscal year 2004 spending level and the same as the 
level included in the budget request. The following table 
provides basic information on the revenues, costs, and products 
of the Mint for fiscal years 2003 through 2005:

----------------------------------------------------------------------------------------------------------------
                                                        Commemorative
                                  Circulating coins       quarters        Numismatic coins        Protection
----------------------------------------------------------------------------------------------------------------
2003 (actual):
    Number of coins............  9.1 billion.......  2.5 billion.......  24 million........  ...................
    Cost of operations.........  $157 million......  $195 million......  $454 million......  $35 million.
    Revenue....................  $320 million......  $618 million......  $471 million......  ...................
    Net revenue (to Treasury)..  $319 million......  $618 million......  $470 million......  ($35 million).
2004 (est.):
    Number of coins............  13.0 billion......  2.8 billion.......  22 million........  ...................
    Cost of operations.........  $220 million......  $211 million......  $452 million......  $38 million.
    Revenue....................  $406 million......  $694 million......  $499 million......  ...................
    Net revenue (to Treasury)..  $406 million......  $694 million......  $493 million......  ($38 million).
2005 (est.):
    Number of coins............  13.0 billion......  3.1 billion.......  22 million........  ...................
    Cost of operations.........  $222 million......  $218 million......  $459 million......  $41 million.
    Revenue....................  $439 million......  $775 million......  $505 million......  ...................
    Net revenue (to Treasury)..  $439 million......  $775 million......  $500 million......  ($41 million).
----------------------------------------------------------------------------------------------------------------

                       Bureau of the Public Debt


                     ADMINISTERING THE PUBLIC DEBT




Appropriation, fiscal year 2004.......................      $172,627,000
Budget request, fiscal year 2005......................       175,166,000
Recommended in the bill...............................       175,166,000
Bill compared with:
    Appropriation, fiscal year 2004...................        +2,539,000
    Budget request, fiscal year 2005..................  ................


    This appropriation provides funds for the conduct of all 
public debt operations and the promotion of the sale of U.S. 
securities.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a net appropriation of 
$175,166,000 for administering the public debt, an increase of 
$2,539,000 above the fiscal year 2004 enacted level and the 
same as the budget request. The bill includes up to $2,000,000 
for systems modernization.

                        Internal Revenue Service


                 PROCESSING, ASSISTANCE, AND MANAGEMENT




Appropriation, fiscal year 2004.......................    $4,009,205,000
Budget request, fiscal year 2005......................     4,148,403,000
Recommended in the bill...............................     4,071,824,000
Bill compared with:
    Appropriation, fiscal year 2004...................       +62,619,000
    Budget request, fiscal year 2005..................       -76,579,000


    This appropriation provides for processing tax returns and 
related documents; processing data for compiling statistics of 
income; assisting taxpayers in correct filing of their returns 
and in paying taxes that are due; overall planning and 
direction of the Internal Revenue Service; and management of 
financial resources and procurement.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $4,071,824,000 
for processing, assistance, and management, an increase of 
$62,619,000 above the fiscal year 2004 enacted level and a 
decrease of $76,579,000 below the budget request. The 
Committee's recommendation includes $7,500,000 in support of 
low-income tax clinics and $4,100,000 for the tax counseling 
for the elderly program. The IRS has flexibility in determining 
how to allocate the funds in this account in relation to the 
budget request. The Committee directs the IRS to submit an 
operating plan for all of its accounts, as a part of the plan 
submitted by the Department of the Treasury, detailing the 
fiscal year 2005 funding levels for activities in comparison to 
the fiscal year 2004 levels and the 2005 budget request.
    Electronic tax filing and the free file alliance.--The 
Committee reaffirms its position that the free file alliance 
initiative is first and foremost to provide electronic federal 
tax return preparation and e-filing services at no cost to the 
working poor and other disadvantaged and underserved taxpayers. 
Program implementation must be carried out in a manner that 
protects the privacy of the taxpayer's return data, continues 
software service independent from the government, and does not 
require citizens to purchase other products or services from 
free file participants. The IRS should work in cooperation with 
the tax preparation industry to implement appropriate policies 
and procedures to ensure that the sponsored tax software 
services have the necessary business credentials, relevant 
commercial track records, corporate integrity, and financial 
and technical capabilities, in which taxpayers can have 
confidence.
    The Committee is encouraged by the recent memorandum of 
understanding between the IRS and the alliance for addressing 
privacy concerns and reporting aggregate, and not individual, 
tax filer data. However, the Committee notes that four 
providers listed on the IRS free file web site claim that no 
income restrictions are necessary for free file services, and 
one provider claims to have a floor income of $100,000 to 
qualify for free file services. The Committee directs the IRS 
to report in not less than 60 days after enactment of this act 
on the criteria which enables these providers to be included in 
the free file program.
    IRS workforce re-alignment.--The IRS has several personnel 
re-alignment initiatives underway, and Committee is seeking 
comprehensive information regarding planned reductions in force 
(RIF) affecting 1,600 case processing and insolvency employees, 
2,200 submission processing center employees, 780 modernization 
and information technology services employees, and 260 
transitional processing center employees. Unfortunately, the 
department's initial responses to the Committee have been less 
than adequate. The Committee therefore directs the Commissioner 
to refrain from further RIF actions until submitting a report 
not earlier than May 2, 2005, and not later than May 13, 2005 
on the planned actions. The report must include a detailed cost 
analysis of the savings expected from the RIFs including the 
anticipated increase in productivity resulting from the 
consolidations; administrative costs associated with the 
planned RIFs; the costs necessary to modify the work and 
accommodate any planned new hires; the cost of hiring and 
training new employees to do the same work that is currently 
being performed by the current employees; and a detailed 
qualitative description of the type of training that will be 
given to the new hires. The Commissioner is directed to provide 
an analysis of how productivity and service will remain 
constant for the employees and taxpayers affected by the 
change, including a description of any productivity gap during 
transition; and an analysis of how the productivity of revenue 
agents and officers will be affected by the removal of support 
staff.
    Should the IRS move forward with RIF, the Committee directs 
the IRS to use all available tools to minimize involuntary 
separations, including: providing preference to those employees 
targeted by the RIF for other vacancies for which they are 
qualified within the IRS, Treasury Department or other federal 
agency in their location; implementing a hiring freeze for IRS 
vacancies in locations undergoing a RIF for 90 days after the 
RIF announcement to allow targeted employees to apply for an 
appropriate vacancy; providing bump and retreat rights as set 
out in 5 CFR 351, with competitive areas being defined broadly; 
providing training or retraining for employees so they can move 
into other positions within the IRS; actively seeking 
authorization for voluntary early retirement authority and 
voluntary separation incentive payments, which should be 
offered as widely as possible in the geographic locations 
affected so that employees who cannot afford to leave 
voluntarily can move into positions vacated by those who can; 
and making available the maximum six months of career 
transition assistance program benefits to all IRS employees 
described in the above paragraph affected by a RIF.

                          TAX LAW ENFORCEMENT

                     (INCLUDING TRANSFER OF FUNDS)




Appropriation, fiscal year 2004.......................    $4,171,244,000
Budget request, fiscal year 2005......................     4,564,350,000
Recommended in the bill...............................     4,278,107,000
Bill compared with:
    Appropriation, fiscal year 2004...................      +106,863,000
    Budget request, fiscal year 2005..................      -286,243,000


    This appropriation provides for the examination of tax 
returns, both domestic and international; the administrative 
and judicial settlement of taxpayer appeals of examination 
findings; technical rulings; monitoring employee pension plans; 
determining qualifications of organizations seeking tax-exempt 
status; examining tax returns of exempt organizations; 
enforcing statutes relating to detection and investigation of 
criminal violations of the internal revenue laws; collecting 
unpaid accounts; compiling statistics of income and compliance 
research; securing unfiled tax returns and payments; and 
expanded efforts to reduce overclaims and erroneous filings 
associated with the earned income tax credit.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $4,278,107,000 
for tax law enforcement, an increase of $106,863,000 above the 
fiscal year 2004 enacted level and a decrease of $286,243,000 
below the budget request. The IRS has flexibility in 
determining how to allocate the funds in this account in 
relation to the budget request. The bill includes up to 
$1,000,000 for research and up to $10,000,000 to reimburse the 
Social Security Administration.
    The Committee encourages the IRS to investigate and 
incorporate private industry solutions into its earned income 
tax credit (EITC) enforcement efforts to combat fraud and other 
filing error. The Committee is aware of private industry 
initiatives that apply innovative software and data mining and 
correlation techniques to readily detect ``same child, dual 
claim'' conditions at the point of submission and before any 
payments have been made, which have the potential to save 
billions of dollars annually in EITC fraud and erroneous 
claims. Such initiatives make a series of applications that 
continually access and extract dependent child information from 
specific state and federal systems (e.g.; MEDICAID, subsidized 
housing programs, transitional employment assistance, food 
stamp programs, foster children programs, etc.) which then 
correlate, edit, and aggregate this information into a database 
for analysis to automatically verify the child information 
contained in the EITC return and search for patterns that are 
indicative of any emerging fraudulent situation. The Committee 
directs the IRS to report on the feasibility of using private 
industry solutions for EITC compliance, and updated information 
on the EITC pre-certification pilot program, not less than 90 
days after enactment of this Act.
    The Committee encourages the IRS to conduct a pilot 
program, approximately one year in length, employing 
commercially proven molecular marking and program tracking 
information management database technologies for the 
identification of the taxable status of diesel fuel, compliance 
enforcement of diesel fuel status categories and the associated 
recovery of fuel taxes.
    The Committee notes that the IRS has not achieved a 
significant level of progress administering the program using 
actuarial software and related expertise to assist in audits 
involving tax reserves and other situations requiring actuarial 
expertise. The Committee encourages the IRS to facilitate the 
implementation of the program into coordinated examinations.

                          INFORMATION SYSTEMS




Appropriation, fiscal year 2004.......................    $1,581,575,000
Budget request, fiscal year 2005......................     1,641,768,000
Recommended in the bill...............................     1,622,093,000
Bill compared with:
    Appropriation, fiscal year 2004...................       +40,518,000
    Budget request, fiscal year 2005..................       -19,675,000


    This appropriation provides for service-wide data 
processing support, including the evaluation, development, and 
implementation of computer systems (including software and 
hardware) requirements.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $1,622,093,000 
for information systems, an increase of $40,518,000 above the 
fiscal year 2004 enacted level and a decrease of $19,675,000 
below the budget request. Of the amounts provided, $200,000,000 
is available until September 30, 2006. The IRS has flexibility 
in determining how to allocate the funds in this account in 
relation to the budget.

                     BUSINESS SYSTEMS MODERNIZATION




Appropriation, fiscal year 2004.......................      $387,699,000
Budget request, fiscal year 2005......................       285,000,000
Recommended in the bill...............................       285,000,000
Bill compared with:
    Appropriation, fiscal year 2004...................      -102,699,000
    Budget request, fiscal year 2005..................  ................


    This appropriation provides for funding of the PRIME 
systems integration services contractor to modernize the 
business systems of the Internal Revenue Service.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $285,000,000 
for business systems modernization, a decrease of $102,699,000 
from the fiscal year 2004 enacted level and the same as the 
budget request. The release of funding from this account is 
governed by the same statutory conditions that governed the 
funds appropriated into this account in previous years.

               HEALTH INSURANCE TAX CREDIT ADMINISTRATION




Appropriation, fiscal year 2004.......................       $34,794,000
Budget request, fiscal year 2005......................        34,841,000
Recommended in the bill...............................        34,841,000
Bill compared with:
    Appropriation, fiscal year 2004...................           +47,000
    Budget request, fiscal year 2005..................  ................


    This appropriation provides contractor support to develop 
and administer the advance payment option for the health 
insurance tax credit included in Public Law 107-210, the Trade 
Act of 2002.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $34,841,000 
for health insurance tax credit administration, an increase of 
$47,000 above the fiscal year 2004 enacted level and the same 
as the budget request.

             GENERAL PROVISIONS--DEPARTMENT OF THE TREASURY

    Section 201. The Committee continues the provision that 
allows the transfer of 5 percent of any appropriation made 
available to the IRS to any other IRS appropriation, subject to 
prior Congressional approval.
    Section 202. The Committee continues the provision that 
requires the IRS to maintain a training program in taxpayer's 
rights, dealing courteously with taxpayers, and cross cultural 
relations.
    Section 203. The Committee continues the provision that 
requires the IRS to institute policies and procedures, which 
will safeguard the confidentiality of taxpayer information.
    Section 204. The Committee continues the provision that 
makes funds available for improved facilities and increased 
manpower to provide sufficient and effective 1-800 help line 
service for taxpayers.
    Section 205. The Committee continues the provision that 
allows the Department of the Treasury to purchase uniforms, 
insurance, and motor vehicles without regard to the general 
purchase price limitation, and enter into contracts with the 
State Department for health and medical services for Treasury 
employees in overseas locations.
    Section 206. The Committee continues with modifications a 
provision that authorizes transfers, up to 2 percent, between 
``Departmental offices--salaries and expenses'', ``Office of 
the Inspector General'', ``Financial management service'', 
``Alcohol and tobacco tax and trade bureau'', ``Financial 
crimes enforcement network'', and the ``Bureau of the public 
debt'' appropriations under certain circumstances.
    Section 207. The Committee continues the provision that 
authorizes transfer, up to 2 percent, between the Internal 
Revenue Service and the Treasury Inspector General for Tax 
Administration under certain circumstances.
    Section 208. The Committee continues the provision limiting 
funds for the purchase of law enforcement vehicles unless the 
purchase is consistent with vehicle management principles.
    Section 209. The Committee continues the provision that 
prohibits the Department of the Treasury from undertaking a 
redesign of the $1 Federal Reserve note.
    Section 210. The Committee continues the provision that 
provides for transfers from and reimbursements to ``Financial 
management service, salaries and expenses'' for the purposes of 
debt collection.
    Section 211. The Committee continues the provision 
extending the life of the franchise funds.
    Section 212. The Committee continues the provision 
extending the life of Treasury's franchise fund.
    Section 213. The Committee includes a new provision 
allowing electronic transfers to be included under the 
protection of the Check Forgery Insurance Fund.
    Section 214. The Committee continues the provision that 
requires Congressional approval for the construction and 
operation of a museum by the United States Mint.
    Section 215. The Committee includes a new provision 
prohibiting funds in this Act from being used to merge the 
United States Mint and the Bureau of Engraving and Printing 
without the approval of the House and Senate committees of 
jurisdiction.
    Section 216. The Committee includes a new provision 
prohibiting the Secretary from publishing, implementing, 
administering, or enforcing regulations permitting financial 
institutions to accept the matricula consular as a vaild form 
of identification.

TITLE III--EXECUTIVE OFFICE OF THE PRESIDENT AND FUNDS APPROPRIATED TO 
                             THE PRESIDENT

    These funds provide for the compensation of the President 
as well as official expenses of the Executive Office of the 
President, as authorized by title 3, United States Code.

                     Compensation of the President





Appropriation, fiscal year 2004.......................          $450,000
Budget request, fiscal year 2005 \1\..................           450,000
Recommended in the bill...............................           450,000
Bill compared with:
    Appropriation, fiscal year 2004...................  ................
    Budget request, fiscal year 2005..................  ................


\1\ Proposed in a consolidated appropriation titled ``The White House''.

    These funds provide for the compensation of the President, 
including an expense allowance as authorized by 3 U.S.C. 102.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $450,000 for 
Compensation of the President, including an expense allowance 
of $50,000. These are the same as amounts as appropriated in 
fiscal year 2004 and the same as requested by the President. 
The bill specifies that none of the funds for official expenses 
shall be considered as taxable to the President, and any unused 
amount shall revert to the Treasury consistent with 31 U.S.C. 
1552.

                           White House Office


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2004.......................       $68,760,000
Budget request, fiscal year 2005 \1\..................        63,698,000
Recommended in the bill...............................        59,525,000
Bill compared with:
    Appropriation, fiscal year 2004...................        -9,235,000
    Budget request, fiscal year 2005..................        -4,173,000


\1\ Proposed in a consolidated appropriation titled ``The White House''.

    The Salaries and Expenses account of the White House Office 
supports staff and administrative services necessary for the 
direct support of the President, including costs for the 
Homeland Security Council. This account also includes 
reimbursements to the White House Communications Agency.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $59,525,000 
for the White House Office, a reduction of $4,173,000 below the 
amounts requested by the President. The Committee's 
recommendation transfers funding for the Homeland Security 
Council (HSC) to a separate appropriation, providing the same 
budgetary treatment as the National Security Council.

                 Executive Residence at the White House


                           OPERATING EXPENSES




Appropriation, fiscal year 2004.......................       $12,427,000
Budget request, fiscal year 2005 \1\..................        12,760,000
Recommended in the bill...............................        12,760,000
Bill compared with:
    Appropriation, fiscal year 2004...................          +333,000
    Budget request, fiscal year 2005..................  ................


\1\ Proposed in a consolidated appropriation titled ``The White House''.

    These funds provide for the care, maintenance, and 
operation of the Executive Residence, including official and 
ceremonial functions of the President.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $12,760,000 
for the operating expenses of the Executive Residence, an 
increase of $333,000 from the amounts appropriated in fiscal 
year 2004 and the same as the amounts requested by the 
President. The bill includes the same restrictions on 
reimbursable expenses for use of the Executive Residence as 
were enacted in fiscal year 2004.

                   White House Repair and Restoration





Appropriation, fiscal year 2004.......................        $4,200,000
Budget request, fiscal year 2005 \1\..................         1,900,000
Recommended in the bill...............................         1,900,000
Bill compared with:
    Appropriation, fiscal year 2004...................        -2,300,000
    Budget request, fiscal year 2005..................  ................


\1\ Proposed in a consolidated appropriation titled ``The White House''.

    To provide for the repair, alteration, and improvement of 
the Executive Residence at the White House, a separate account 
was established in fiscal year 1996 to program and track 
expenditures for capital improvement projects at the Executive 
Residence at the White House.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $1,900,000 for 
White House Repair and Restoration, a decrease of $2,300,000 
below the amount enacted in fiscal year 2004 and the same as 
the amount requested by the President. These funds will finance 
design and replacement of existing cooling towers and 
associated equipment ($1,700,000); potential Presidential 
transition costs, such as staff overtime, moving and packing 
items for the outgoing First Family, and setting up living 
quarters for the incoming First Family ($100,000); and funds 
for family quarters redecoration ($100,000). It is traditional 
for the last two items to be included in budgets during the 
year of a Presidential election.

                      Council of Economic Advisers


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2004.......................        $4,475,000
Budget request, fiscal year 2005 \1\..................         4,040,000
Recommended in the bill...............................         4,040,000
Bill compared with:
    Appropriation, fiscal year 2004...................          -435,000
    Budget request, fiscal year 2005..................  ................

\1\ Proposed in a consolidated appropriation titled ``The White House''.

    The Council of Economic Advisers analyzes the national 
economy and its various segments, advises the President on 
economic developments, recommends policies for economic growth 
and stability, appraises economic programs and policies of the 
Federal Government, and assists in preparation of the annual 
Economic Report of the President to Congress.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $4,040,000 for 
the Council of Economic Advisers, a decrease of $435,000 from 
the amount enacted in fiscal year 2004 and the same as 
requested by the President. The decrease mainly reflects the 
realignment of GSA rental payments to the Office of 
Administration as part of the enterprise services program.

                      Office of Policy Development


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2004.......................        $4,085,000
Budget request, fiscal year 2005 \1\..................         3,592,000
Recommended in the bill...............................         2,267,000
Bill compared with:
    Appropriation, fiscal year 2004...................        -1,818,000
    Budget request, fiscal year 2005..................        -1,325,000


\1\ Proposed in a consolidated appropriation titled ``The White House''.

    The office of policy development supports the National 
Economic Council and the Domestic Policy Council in carrying 
out their responsibilities to advise and assist the President 
in the formulation, coordination, and implementation of 
economic and domestic policy. The office of policy development 
also provides support for other domestic policy development and 
implementation activities, as directed by the President.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $2,267,000 for 
the office of policy development, a decrease of $1,818,000 
below the amount enacted in fiscal year 2004 and $1,325,000 
below the amount requested by the President. The reduction 
reflects current unobligated balances in this account 
appropriated as far back as fiscal year 2000. These resources 
can be applied to fiscal year 2005 requirements.

                       National Security Council


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2004.......................       $10,489,000
Budget request, fiscal year 2005 \1\..................         8,932,000
Recommended in the bill...............................         8,932,000
Bill compared with:
    Appropriation, fiscal year 2004...................        -1,557,000
    Budget request, fiscal year 2005..................  ................


\1\ Proposed in a consolidated appropriation titled ``The White House''.

    The National Security Council advises the President on the 
integration of domestic, foreign, and military policies 
relating to national security.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $8,932,000 for 
the National Security Council, a decrease of $1,557,000 below 
the amount appropriated in fiscal year 2004 and the same as 
requested by the President. Most of the reduction from the 
fiscal year 2004 enacted levels involves a realignment of GSA 
rental payments and other costs to the Office of Administration 
as part of the enterprise services program. The number of full-
time equivalent staffyears remains at the fiscal year 2004 
enacted level of 71.

                       Homeland Security Council





Appropriation, fiscal year 2004 \1\...................        $7,231,000
Budget request, fiscal year 2005 \2\..................         4,173,000
Recommended in the bill...............................         2,475,000
Bill compared with:
    Appropriation, fiscal year 2004...................        -4,756,000
    Budget request, fiscal year 2005..................        -1,700,000


\1\ Funded as a separate set-aside in the bill under ``White House
  Office, Salaries and expenses''.
\2\ Proposed in a consolidated appropriation titled ``The White House''.

    The Committee recommends $2,475,000 for the Homeland 
Security Council (HSC), a reduction of $1,700,000 below the 
budget estimate. The Committee recommendation would transfer 
funding for the Homeland Security Council to a separate 
appropriation, similar to the treatment for the National 
Security Council and other policy-related offices. The 
recommended reduction reflects the unobligated balance in this 
account, which can be partially applied to offset fiscal year 
2005 activities.
    The Committee is disturbed that White House officials have 
failed to provide to the Committee a definitive request for HSC 
staffing or budgetary resources for fiscal year 2005. 
Information providing for the hearing record states that the 
fiscal year 2005 budget includes ``approximately'' 40 full-time 
equivalent staffyears for direct HSC hires and 26 detailees, 
for a total of 66 staff. This estimate, although approximate, 
would be significantly above the level of onboard staff as of 
May 2004. In future years, the Committee expects the Executive 
Office of the President to be able to provide budget-quality 
estimates rather than approximations. The Committee is also 
concerned about the relatively high travel budget of this 
office, and the high proportion that is applied to travel 
within the Washington, DC metropolitan area. The Committee will 
work with the Homeland Security Council to reduce these 
administrative costs over the coming year.

                        Office of Administration


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2004.......................       $82,337,000
Budget request, fiscal year 2005 \1\..................        85,676,000
Recommended in the bill...............................        92,696,000
Bill compared with:
    Appropriation, fiscal year 2004...................       +10,359,000
    Budget request, fiscal year 2005..................        -7,020,000


\1\ Proposed in a consolidated appropriation titled ``The White House''.

    The Office of Administration is responsible for providing 
cost-effective, administrative services to the Executive Office 
of the President. These services, defined by Executive Order 
12028 of 1977, include financial, personnel, library and 
records services, information management systems support, and 
general office services.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $92,696,000 
for the Office of Administration, an increase of $10,359,000 
above the amount appropriated in fiscal year 2004 and a 
decrease of $7,020,000 below the amount requested by the 
President.
    Enterprise services program.--The budget estimate for 
fiscal year 2005 did not reflect program savings, estimated at 
$800,000 a year, from the core enterprise pilot program (now 
called the enterprise services program). Under the 
Administration's proposal, these savings would be 
``reinvested'' into unspecified initiatives. The Committee's 
recommendation reduces the budget estimate by $400,000 in 
consideration of these savings.
    Engineering and technical assistance.--The Committee 
recommendation deletes the $405,000 proposed for ``analysis and 
consulting service in support of EOP core business process 
improvement'' and the $520,000 included for ``system 
engineering and technical assistance''. These initiatives are 
unaffordable at this time due to budget constraints.
    Restoring OMB to the enterprise services program.--The 
Committee bill restores OMB to the enterprise services program, 
a transfer of $8,345,000 from the OMB appropriation to this 
appropriation. The Committee continues to believe that that is 
appropriate for the Office of Administration to make rental 
payments and pay other administrative expenses for EOP offices 
in this bill, including the Office of Management and Budget.

                    Office of Management and Budget


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2004.......................       $66,763,000
Budget request, fiscal year 2005......................        76,565,000
Recommended in the bill...............................        67,759,000
Bill compared with:
    Appropriation, fiscal year 2004...................          +996,000
    Budget request, fiscal year 2005..................        -8,806,000


    The Office of Management and Budget assists the President 
in the discharge of budgetary, economic, management, and other 
executive responsibilities.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $67,759,000 
for the Office of Management and Budget (OMB), an increase of 
$996,000 above the amount appropriated in fiscal year 2004 and 
$8,806,000 below the amount requested by the President. 
Recommended adjustments to the budget estimate are listed and 
discussed below:

                                                                  Amount
Staffing adjustment.....................................     -$1,000,000
Restoration of FASAB and JFMIP transfer.................        +639,000
FEA PMO staffing........................................        -100,000
Restoration of fiscal year 2004 transfer................      -8,345,000

    Staffing adjustment.--The fiscal year 2005 budget estimate 
assumes a continuation of staffing at the fiscal year 2004 
full-time equivalent level of 510. However, the Committee's 
review of hearing data indicate that OMB has requested excess 
funds for staffing for at least the past two years. Last year, 
the Committee was advised that the fiscal year 2004 request of 
510 FTE would involve no new staff, but simply extend the 
fiscal year 2003 staffing level into fiscal year 2004. However, 
the agency only consumed 491 FTE in fiscal year 2003, 
indicating that their fiscal year 2004 budget estimate was more 
than needed to maintain a constant staffing level. The same 
appears true in the fiscal year 2005 budget request, which 
requests a ``continuation'' of the 510 FTE assumed for fiscal 
year 2004. Actual on board levels at the agency as of June 1, 
2004 are 499. The Committee's recommendation assumes 500 FTE, a 
reduction of 10 below the budget estimate.
    Restoration of FASAB and JFMIP transfer.--The budget 
estimate proposed to transfer OMB's portion of funding for the 
Financial Accounting Standards Advisory Board and the Joint 
Financial Management Improvement Program to the Department of 
the Treasury, even though OMB would retain ``lead 
responsibility'' for these activities. The Committee believes 
budget and program accountability and control should go 
together wherever possible. As OMB wishes to keep the lead 
responsibility for these activities, the Committee retains 
these funds in OMB's budget.
    Federal enterprise architecture program management 
office.--Committee hearing data indicate that OMB's Federal 
enterprise architecture program management office has only one 
staff person assigned to it, a senior executive service member 
on detail from the National Aeronautics and Space 
Administration. The Committee is not convinced that a one-
person program management office will be able to have any 
appreciable impact on the development of government-wide 
information technology policy. The Committee believes this 
detail position should return to the host agency and the office 
should be closed.
    Restoration of fiscal year 2004 transferred funds.--The 
reduction of $8,345,000 reflects the transfer of funds to the 
Office of Administration, as previously discussed.
    Reception and representation expenses.--Once again this 
year, the bill limits reception and representation (R&R) 
expenses to $1,500, a reduction of $1,500 below the budget 
estimate. The Committee believes this will be adequate, based 
upon a review of spending from previous years. In fiscal year 
2002, OMB used $1,424.38 from this appropriation. Fiscal year 
2003 costs were $453.28. In the first nine months of fiscal 
year 2004, there were no expenses.
    Paperwork reduction.--The Committee notes with interest 
OMB's April 2004 report stating that federal agencies succeeded 
in reducing the amount of time the public spends filling out 
government paperwork by 1.5 percent in 2003, compared to the 
previous year. The Committee, however, is concerned that this 
simply represents streamlining of the federal paperwork filing 
system, rather than a substantive reduction in regulatory 
burdens on industries that pose barriers to economic 
productivity. The Committee requests that OMB provide, within 
90 days of enactment, a report detailing its blueprint and 
master plan for realizing substantive reductions in regulatory 
burdens on industries, which, if achieved, will result in true 
savings regardless of system efficiencies. The report should 
identify regulatory areas with the greatest time, cost and 
volume burden, and note how OMB's blueprint and master plan 
addresses these areas for substantive reduction. The Committee 
recommends that OMB first direct its reduction efforts at 
regulations where the greatest gain can be achieved with the 
least effort.
    The Committee considers paperwork reduction to be 
especially crucial in the area of health care, where onerous 
paperwork requirements often significantly elevate the cost of 
delivering care without comparable health benefits being 
delivered to patients. The Committee strongly encourages OMB to 
give priority attention to the health care area for reducing 
the paperwork burden on hospitals and physicians and their 
staffs generated by the over 130,000 pages of regulations 
controlled by the Centers for Medicare and Medicaid Services 
alone, not counting the 29 other agencies with health care 
jurisdiction. Consistent with the Committee's recommendations 
on the Departments of Labor, Health and Human Services, and 
Education, and Related Agencies Appropriations Bill, 2005, OMB 
is urged to convene and coordinate the government-wide task 
force that includes industry representatives to examine the 
original intent of the underlying laws, as well as the 
regulations spawned by those laws, and determine where 
regulations could be coordinated and simplified to reduce costs 
and regulatory burdens while continuing to protect patients.

                 Office of National Drug Control Policy


                         Salaries and Expenses





Appropriation, fiscal year 2004.......................       $27,832,000
Budget request, fiscal year 2005......................        27,609,000
Recommended in the bill...............................        28,109,000
Bill compared with:
    Appropriation, fiscal year 2004...................          +277,000
    Budget request, fiscal year 2005..................          +500,000


    The Office of National Drug Control Policy, established by 
the Anti-Drug Abuse Act of 1988, is charged with developing 
policies, objectives and priorities for the National Drug 
Control Program as defined by the Act and Executive Order 
12880, and by the Office of National Drug Control Policy 
Reauthorization Act of 1998.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $28,109,000 
for the Office of National Drug Control Policy (ONDCP), a 
$500,000 increase from the President's request.
    Funding is directed as follows:

Operations..............................................     $25,759,000
Policy Research.........................................       1,350,000
PDFA methamphetamine demand reduction...................       1,000,000

    Methamphetamine demand reduction.--The Committee provides 
an additional $1,000,000 above the budget request for the 
Partnership for a Drug Free America for their efforts in 
reducing the demand and abuse of methamphetamine.
    Staffing.--ONDCP requested 5 additional FTE for fiscal year 
2005. The Committee approves the requested FTE, but additional 
funding has not been provided due to budget constraints.

                Counterdrug Technology Assessment Center





Appropriation, fiscal year 2004.......................       $41,752,000
Budget request, fiscal year 2005......................        40,000,000
Recommended in the bill...............................        30,000,000
Bill compared with:
    Appropriation, fiscal year 2004...................        -1,752,000
    Budget request, fiscal year 2005..................  ................


    Pursuant to the Office of National Drug Control Policy 
Reauthorization Act of 1998 (title VII of Division C of Public 
Law 105-277), the Counterdrug Technology Assessment Center 
serves as the central counterdrug research and development 
organization for the United States Government.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $30,000,000 
for the Counterdrug Technology Assessment Center, a decrease of 
$10,000,000 from the President's request. Included in the 
appropriation are $7,000,000 for Demand Reduction Research and 
Development, $3,000,000 for Supply Reduction Research and 
Development, and $20,000,000 for the Technology Transfer 
Program.

             High Intensity Drug Trafficking Areas Program





Appropriation, fiscal year 2004.......................      $225,015,000
Budget request, fiscal year 2005......................       208,350,000
Recommended in the bill...............................       215,350,000
Bill compared with:
    Appropriation, fiscal year 2004...................        -9,665,000
    Budget request, fiscal year 2005..................        +7,000,000


    The High Intensity Drug Trafficking Areas (HIDTA) Program 
was established by the Director of ONDCP pursuant to section 
1005 of the Anti-Drug Abuse Act of 1988, and now as 
reauthorized by section 707 of the Office of National Drug 
Control Policy Act of 1998 to provide assistance to Federal and 
State and local law enforcement entities operating in those 
areas most adversely affected by drug trafficking.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $215,350,000 
for the HIDTA Program, an increase of $7,000,000 above the 
President's request. The increase above the President's request 
is to meet requirements to fully fund existing HIDTA program 
activity, to expand existing HIDTAs where such expansion is 
justified, and to fund new HIDTAs as appropriate. The Committee 
directs that no less than $208,000,000 of its appropriation 
shall be for base funding for the HIDTA program. Recommended 
funding levels are as follows:

HIDTA base allocation...................................    $208,000,000
Discretionary funds for new countries...................       3,000,000
Discretionaly funds for CPOT............................       2,350,000
Audit...................................................       2,000,000

    The HIDTA program serves to enhance and coordinate drug 
control effects among local, State, and Federal law enforcement 
agencies in order to eliminate or reduce drug trafficking, and 
the Committee supports a vigorous HIDTA program. To achieve its 
mission, the HIDTA program must continue to enhance individual 
and national performance and work to develop a system that 
enhances the synchronization of drug control efforts. In recent 
years however, the funding for the nation's HIDTAs has remained 
fairly stagnant. Funding for the HIDTA program has increased 
annually, yet more funding every year has gone to discretionary 
programs to the detriment of base HIDTA funding, as shown on 
the following graph:



    The HIDTA program has proven to be an efficient and 
successful program. The Committee reminds ONDCP that without 
the nation's base HIDTAs, the discretionary program would be 
for naught. Therefore, the Committee has included an increase 
of $3,750,000 for funding for the base HIDTA program. The 
Committee continues to direct that HIDTAs existing in fiscal 
year 2005 shall receive funding at least equal to the fiscal 
year 2004 initial allocation level, which does not include 
funding provided through the CPOT initiative.
    The Committee is aware of areas facing increased drug 
trafficking that may be appropriate candidates for designation 
as a HIDTA, inclusion in an existing HIDTA, or increased 
funding. As ONDCP reviews candidates for new HIDTA funding, the 
Committee recommends that it consider the following: increased 
funding for the North Texas, Appalachian, Central Florida, 
Central Valley, and Lake County HIDTAs; and expansion of the 
Gulf Coast HIDTA (Rapides, Calcasieu, and Lafourche parishes, 
Louisiana).
    The Committee recognizes the strong pressure to add new 
HIDTAs and expand those currently existing, and underscores the 
need for performance-based management to ensure that HIDTAs 
demonstrating both effectiveness and need are provided adequate 
resources. The Committee wishes to emphasize that the HIDTA 
program does not exist to serve as an entitlement for State and 
local law enforcement, and that both performance measures and 
the CPOT initiative are important tools for maintaining the 
HIDTA program's proper focus on drug trafficking areas that 
have a significant national impact.

                  Other Federal Drug Control Programs





Appropriation, fiscal year 2004.......................      $227,649,000
Budget request, fiscal year 2005......................       235,000,000
Recommended in the bill...............................       195,000,000
Bill compared with:
    Appropriation, fiscal year 2004...................       -32,649,000
    Budget request, fiscal year 2005..................       -40,000,000


                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $195,000,000 
for Other Federal Drug Control Programs, a decrease of 
$40,000,000 from the President's request. The recommended 
appropriation includes the following:

National Youth Anti-Drug Media Campaign.................    $120,000,000
Drug Free Communities Support Program...................      70,000,000
U.S. Anti-Doping Agency.................................       1,500,000
Counterdrug Intelligence Executive Secretariat..........       1,000,000
National Drug Court Institute...........................         500,000
Performance Measures Development........................       1,000,000
National Alliance For Model State Drug Laws.............         500,000
World Anti-Doping Agency (WADA) Membership Dues.........         500,000
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal, Other Federal Drug Control Programs.....     195,000,000

    USADA.--The Committee directs ONDCP to ensure that the 
release of funds to the U.S. Anti-Doping Agency (USADA) follow 
the grant timeline and application processes normally required 
of grant recipients. ONDCP shall not expedite the release of 
these funds unless ONDCP submits a justification for approval 
to the House and Senate Committees on Appropriations.
    Public service announcements.--The Committee is aware that 
there are a number of government-sponsored public service 
campaigns. GAO is directed to conduct a study regarding the 
nature of these campaigns, to include a review of the 
following: the federal agencies and other participants 
involved; the basis and purpose of these sponsorships; the 
annual and cumulative federal government and other participant 
costs for each campaign; the target audiences, media employed, 
and results achieved for each campaign. GAO should report to 
the House and Senate Committees on Appropriations no later than 
June 1, 2005.

                          Unanticipated Needs





Appropriation, fiscal year 2004.......................          $993,000
Budget request, fiscal year 2005......................         1,000,000
Recommended in the bill...............................         1,000,000
Bill compared with:
    Appropriation, fiscal year 2004...................            +7,000
    Budget request, fiscal year 2005..................  ................


    These funds enable the President to meet unanticipated 
exigencies in support of the national interest, security, or 
defense. Expenditures from this account may be authorized only 
by the President.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $1,000,000, which is $7,000 more 
than appropriated in fiscal year 2004 and the same as the 
budget estimate.

 Special Assistance to the President and the Official Residence of the 
                             Vice President


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2004.......................        $4,435,000
Budget request, fiscal year 2005......................         4,571,000
Recommended in the bill...............................         4,571,000
Bill compared with:
    Appropriation, fiscal year 2004...................          +136,000
    Budget request, fiscal year 2005..................  ................


    These funds support the official duties and functions of 
the Office of the Vice President.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $4,571,000 for 
the Office of the Vice President, an increase of $136,000 above 
the amount enacted for fiscal year 2004 and the same as 
requested by the President.

                           Operating Expenses


                     (INCLUDING TRANSFER OF FUNDS)




Appropriation, fiscal year 2004.......................          $329,000
Budget request, fiscal year 2005 \1\..................           333,000
Recommended in the bill...............................           333,000
Bill compared with:
    Appropriation, fiscal year 2004...................            +4,000
    Budget request, fiscal year 2005..................  ................


    These funds support the care and operation of the Vice 
President's residence and specifically support equipment, 
furnishings, dining facilities, and services required to 
perform and discharge the Vice President's official duties, 
functions and obligations.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $333,000 for 
the Operating Expenses of the Vice President's residence, an 
increase of $4,000 above the amount enacted in fiscal year 2004 
and the same as requested by the President.

                     TITLE IV--INDEPENDENT AGENCIES


       ARCHITECTURAL AND TRANSPORTATION BARRIERS COMPLIANCE BOARD


                         Salaries and Expenses




Appropriation, fiscal year 2004.......................        $5,401,000
Budget request, fiscal year 2005......................         5,686,000
Recommended in the bill...............................         5,686,000
Bill compared with:
    Appropriation, fiscal year 2004...................          +285,000
    Budget request, fiscal year 2005..................  ................
    Senate reported level.............................  ................


    The Architectural and Transportation Barriers Compliance 
Board (the Access Board) is the lead Federal Agency promoting 
accessibility for all handicapped persons. The Access Board was 
reauthorized in the Rehabilitation Act Amendments of 1992, 
Public Law 102-569. Under this authorization, the Access 
Board's functions are to ensure compliance with the 
Architectural Barriers Act of 1968, and to develop guidelines 
for and technical assistance to individuals and entities with 
rights or duties under titles II and III of the American with 
Disabilities Act. The Access Board establishes minimum 
accessibility guidelines and requirements for public 
accommodations and commercial facilities, transit facilities 
and vehicles, state and local government facilities, children's 
environments, and recreational facilities. The Access Board 
also provides technical assistance to Government agencies, 
public and private organizations, individuals, and businesses 
on the removal of accessibility barriers.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $5,686,000 for the operations of 
the Architectural and Transportation Barriers Compliance Board, 
the funding level requested by the administration.

                  NATIONAL TRANSPORTATION SAFETY BOARD


                         Salaries and Expenses





Appropriation, fiscal year 2004.......................       $73,065,356
Budget request, fiscal year 2005......................        74,425,000
Recommended in the bill...............................        76,925,000
Bill compared with:
    Appropriation, fiscal year 2004...................        +3,859,644
    Budget request, fiscal year 2005..................        +2,500,000


    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. In addition, the NTSB operates the NTSB Academy 
in Ashburn, Virginia, which was completed in August 2003.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $76,925,000 
for salaries and expenses of the National Transportation Safety 
Board, an increase of $3,859,644 above the fiscal year 2004 
enacted level and $2,500,000 above the budget request. An 
increase over the request is provided to allow NTSB to fund 
eleven of its FTE currently on-board plus an additional five 
new FTE, for a total of 426 FTE.
    Further, the Committee is aware of NTSB's shortage of 
accident investigators. The 2004 level of 235 investigators is 
45 below the fiscal year 2001 level. In the area of the Office 
of Aviation Safety, the effect has been minimal for the past 
several years only because there has not been a major airline 
accident. However, the affect in 2005 is intensifying--NTSB 
will not be able to launch investigators to all civil aviation 
accidents involving fatalities in fiscal 2005. Therefore, the 
Committee requires the additional funds provided over the 
request to be used to hire accident investigators.

                         Salaries and Expenses


                              (RESCISSION)




Rescission, fiscal year 2004..........................  ................
Budget request, fiscal year 2005......................       -$8,000,000
Recommended in the bill...............................        -8,000,000
Bill compared with:
    Appropriation, fiscal year 2004...................        -8,000,000
    Budget request, fiscal year 2005..................  ................


                        COMMITTEE RECOMMENDATION

    The Committee recommends a rescission of $8,000,000 from 
funds provided in P.L. 106-246 for the investigation of Egypt 
Air 990 and Alaska Air 261 accidents. The Board has determined 
the causes of these accidents and the funding is no longer 
required.

                      FEDERAL ELECTION COMMISSION


                         Salaries and Expenses





Appropriation, fiscal year 2004.......................       $50,938,000
Budget request, fiscal year 2005......................        52,159,000
Recommended in the bill...............................        52,159,000
Bill compared with:
    Appropriation, fiscal year 2004...................        +1,221,000
    Budget request, fiscal year 2005..................  ................


    The Commission administers the disclosure of campaign 
finance information, enforces limitations on contributions and 
expenditures, supervises the public funding of Presidential 
elections, and performs other tasks related to Federal 
elections.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $52,159,000 
for the Federal Election Commission (FEC), an increase of 
$1,221,000 over amounts appropriated in fiscal year 2004 and 
the same as the budget request. The Committee has added a new 
provision prohibiting the FEC from accepting reports and 
filings in any form other than electronically.

                     ELECTION ASSISTANCE COMMISSION


                         Salaries and Expenses


                     (INCLUDING TRANSFER OF FUNDS)




Appropriation, fiscal year 2004.......................        $1,193,000
Budget request, fiscal year 2005......................        20,000,000
Recommended in the bill...............................        15,000,000
Bill compared with:
    Appropriation, fiscal year 2004...................       +13,807,000
    Budget request, fiscal year 2005..................        -5,000,000


    The Election Assistance Commission was established by the 
Help America Vote Act of 2002 (HAVA) and is charged with 
implementing provisions of that Act relating to the reform of 
Federal election administration throughout the United States, 
including the development of voluntary voting systems 
guidelines, the certification and testing of voting systems, 
studies of election administration issues, and the 
implementation of election reform payments to states as well as 
grant programs related to election reform.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $15,000,000 
for the Election Assistance Commission, an increase of 
$13,807,000 above the fiscal year 2004 enacted level and 
$5,000,000 below the budget request. Of the amount provided, 
$5,000,000 is made available to the Commission to address the 
desperate need for research and standardization of election 
systems, of which not less than $2,500,000 is to be transferred 
to the National Institute for Standards and Technology for 
activities authorized under HAVA.
    The Commission has a number of requirements and activities 
set forth in HAVA intended to assist states and voters in the 
area of election reform. The Committee directs the Commission 
to first address standards and technology issues as related to 
voting equipment. Billions of dollars have already been 
disseminated to the States for voting equipment, and yet no 
standards exist for what technology meets the needs of States 
and voters. Second, the Commission was directed by HAVA to 
create the Help America Vote Foundation and provide grants to 
various organizations working to increase voter participation. 
At this time, the Committee is unaware that any nominations to 
the Foundation have gone forward, nor have any grants directed 
last year's report been obligated. The Committee directs the 
Commission to complete these mandated tasks before September 
30, 2005. To help the Commission remain focused on the 
aforementioned activities, and others as authorized under HAVA, 
the Committee has included a provision prohibiting the 
Commission from using funds available under this heading to 
lobby for a change to the general election date.

                        Election Reform Programs





Appropriation, fiscal year 2004.......................    $1,491,150,000
Budget request, fiscal year 2005......................        30,000,000
Recommended in the bill...............................             - - -
Bill compared with:
    Appropriation, fiscal year 2004...................    -1,491,150,000
    Budget request, fiscal year 2005..................       -30,000,000


    This appropriation provides for election reform 
requirements payments to states under Section 127 of the Help 
America Vote Act of 2002, as well as other grant programs 
authorized by that Act.

                        COMMITTEE RECOMMENDATION

    The Committee recommendation does not include funds for 
Election Reform Programs, a decrease of $1,491,150,000 from the 
fiscal year 2004 enacted level and $30,000,000 below the budget 
request. The Committee notes that the Election Assistance 
Commission was not created until January 2004, and the research 
and standards portions of the Help America Vote Act of 2002 are 
still not underway or implemented. It is the Committee's 
recommendation to wait on additional reform funds until voting 
technology standards are in place.

                   FEDERAL LABOR RELATIONS AUTHORITY


                         Salaries and Expenses





Appropriation, fiscal year 2004.......................       $29,436,000
Budget request, fiscal year 2005......................        29,673,000
Recommended in the bill...............................        29,673,000
Bill compared with:
    Appropriation, fiscal year 2004...................          +237,000
    Budget request, fiscal year 2005..................  ................


    The Federal Labor Relations Authority (FLRA), established 
by the Civil Service Reform Act of 1978, serves as a neutral 
party in the settlement of disputes that arise between unions, 
employees, and agencies on matters outlined in the Federal 
Service Labor Management Relations statute, decides major 
policy issues, prescribes regulations, and disseminates 
information appropriate to the needs of agencies, labor 
organizations, and the public. Establishment of the FLRA gives 
full recognition to the role of the Federal Government as an 
employer. Pursuant to the Foreign Service Act of 1980, FLRA 
also supports the Foreign Service Impasse Disputes Panel and 
the Foreign Service Labor Relations Board.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $29,673,000 
for the Federal Labor Relations Authority, an increase of 
$237,000 above the fiscal year 2004 enacted level and the same 
as the budget request.

                      FEDERAL MARITIME COMMISSION


                         Salaries and Expenses





Appropriation, fiscal year 2004.......................       $18,362,021
Budget request, fiscal year 2005......................        19,496,000
Recommended in the bill...............................        19,362,000
Bill compared with:
    Appropriation, fiscal year 2004...................          +999,979
    Budget request, fiscal year 2005..................          -134,000


    The Federal Maritime Commission (FMC) was established in 
1961 as an independent government agency, responsible for the 
regulation of shipping in the foreign trades of the United 
States. The Commission's five members are appointed by the 
President with the advice and consent of the Senate. While 
FMC's jurisdiction encompasses many facets of the maritime 
industry, it has no jurisdiction over vessel operations, 
navigation, vessel construction, vessel documentation, vessel 
inspection, licensing of seafaring personnel, or the 
maintenance of navigational aids or dredging. The principal 
shipping statutes administered by the FMC are the Shipping Act 
of 1984 (46 USC app. 1710 et seq), the Foreign Shipping 
Practices Act of 1988 (46 USC app. 1701 et seq), and section 19 
of the Merchant Marine Act, 1920 (46 USC app. 876).

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $19,362,000 
for the Federal Maritime Commission, an increase of $1,133,979 
(6.2 percent) above the fiscal year 2004 level and equal to the 
budget request for fiscal year 2005.

                    GENERAL SERVICES ADMINISTRATION


                         Federal Buildings Fund





Appropriations:
    Appropriation, fiscal year 2004...................      $443,369,000
    Budget request, fiscal year 2005..................                 0
    Recommended in the bill...........................                 0
Bill compared with:
    Appropriation, fiscal year 2004...................      -443,639,000
    Budget request, fiscal year 2005..................  ................
Limitations on Availability of Revenue:
    Limitation on availability, fiscal year 2004         (6,758,208,000)
 enacted to date......................................
    Limitation on availability, budget estimate,         (7,173,724,000)
 fiscal year 2005.....................................
    Recommended in the bill...........................   (6,996,741,000)
Bill compared with:
    Availability limitation, fiscal year 2004 to date.    (+238,533,000)
    Availability limitation, fiscal year 2005 estimate    (-176,983,000)


    The Federal Buildings Fund (FBF) finances the activities of 
the Public Buildings Service, which provides space and services 
for federal agencies in a relationship similar to that of 
landlord and tenant. The FBF, established in 1975, replaces 
direct appropriations by using income derived from rent 
assessments, which approximate commercial rates for comparable 
space and services. The Congress makes funds available through 
a process of placing limitations on obligations from the FBF as 
a way of allocating funds for various FBF activities. The 
Congress may also appropriate funds into the FBF as a way of 
covering the difference between the total revenues coming into 
the FBF and the total limitation on the expenditure from the 
FBF.

                        COMMITTEE RECOMMENDATION

    Similar to the budget request, the Committee's 
recommendation does not include a direct appropriation to the 
Federal Buildings Fund, a decrease of $443,369,000 below the 
fiscal year 2004 enacted level for direct appropriations. 
However, the Committee recommends a limitation of 
$6,996,741,000 for the fund, an increase of $238,533,000 above 
the fiscal year 2004 enacted level and $176,983,000 below the 
budget request.

                      CONSTRUCTION AND ACQUISITION




Limitations on Availability of Revenue:
    Limitation on availability, fiscal year 2004          ($708,268,000)
 enacted to date......................................
    Limitation on availability, budget estimate,           (650,223,000)
 fiscal year 2005.....................................
    Recommended in the bill...........................     (522,251,000)
Bill compared with:
    Availability limitation, fiscal year 2004 to date.    (-186,017,000)
    Availability limitation, fiscal year 2005 estimate    (-127,972,000)


                        COMMITTEE RECOMMENDATION

    The Committee recommends a limitation of $522,251,000 for 
construction and acquisition, a decrease of $186,017,000 below 
the fiscal year 2004 enacted level and $127,972,000 below the 
budget request. Changes to the budget request include a 
decrease of $14,054,000 for the proposed design of a new 
Federal Bureau of Investigation facility in Los Angeles, 
California; a decrease of $53,170,000 for the proposed purchase 
of 10 West Jackson Boulevard in Chicago, Illinois; and a 
decrease of $60,714,000 from the budget request of $63,462,000 
for the proposed construction of a United States Courthouse in 
El Paso, Texas. Funds are provided for the on-going design and 
site acquisition of the El Paso courthouse. The Committee's 
recommendations are made without prejudice.
    The Committee directs GSA to continue its collaboration 
with the Administrative Office of the Courts and the Office's 
5-year plan and priority ranking recommendations. The Committee 
appreciates the actions of the courts to submit a priority 
ranking of courthouse construction project needs to the 
Committee and, without negating its continued concerns 
regarding courthouse project costs, reiterates its intention to 
follow this priority ranking in its future recommendations. The 
Committee expects that this ranking sufficiently reflects all 
security concerns and caseload demands as well as any 
extenuating circumstances.

                        REPAIRS AND ALTERATIONS




Limitations on Availability of Revenue:
    Limitation on availability, fiscal year 2004          ($991,300,000)
 enacted to date......................................
    Limitation on availability, budget estimate,           (980,222,000)
 fiscal year 2005.....................................
    Recommended in the bill...........................     (931,211,000)
Bill compared with:
    Availability limitation, fiscal year 2004 to date.     (-60,089,000)
    Availability limitation, fiscal year 2005 estimate     (-49,011,000)


                        COMMITTEE RECOMMENDATION

    The Committee recommends a limitation of $931,211,000 for 
repairs and alterations, a decrease of $60,089,000 below the 
fiscal year 2004 enacted level and $49,011,000 below the budget 
request.
    The Committee's recommendation does not propose to delete 
any projects included in the fiscal year 2005 budget request. 
Rather, the Committee recommends a reduction to the limitation 
in order to inspire GSA to better manage their extensive 
buildings portfolio. The General Accounting Office has reported 
an alarming amount of vacant or underutilized space held by GSA 
(GAO-03-747, ``Federal Real Property''). By better portfolio 
management, GSA would have funds available in the fund in order 
to meet the repair and maintenance needs of buildings actually 
in use by the government. The Committee directs GSA to embark 
on the projects included in the budget request in priority 
order, starting with those projects that address safety and 
health needs and moving next to the projects with completed 
designs.
    In addition to the projects proposed in the fiscal year 
2005 budget request, the Committee has added an additional 
project in the District of Columbia. The Committee recommends 
$2,000,000 from repair and alterations to move the steam 
distribution system at 17th and E Streets Northwest.

                    INSTALLMENT ACQUISITION PAYMENTS




Limitations on Availability of Revenue:
    Limitation on availability, fiscal year 2004           (169,745,000)
 enacted to date......................................
    Limitation on availability, budget estimate,          ($161,442,000)
 fiscal year 2005.....................................
    Recommended in the bill...........................    ($161,442,000)
Bill compared with:
    Availability limitation, fiscal year 2004 to date.      (-8,303,000)
    Availability limitation, fiscal year 2005 estimate  ................


                        COMMITTEE RECOMMENDATION

    The Committee recommends a limitation of $161,442,000 for 
installation acquisition payments, a decrease of $8,303,000 
below the fiscal year 2004 enacted level and the same as the 
budget request.

                            RENTAL OF SPACE




Limitations on Availability of Revenue:
    Limitation on availability, fiscal year 2004        ($3,280,187,000)
 enacted to date......................................
    Limitation on availability, budget estimate,         (3,672,315,000)
 fiscal year 2005.....................................
    Recommended in the bill...........................   (3,672,315,000)
Bill compared with:
    Availability limitation, fiscal year 2004 to date.    (+392,128,000)
    Availability limitation, fiscal year 2005 estimate  ................


                        COMMITTEE RECOMMENDATION

    The Committee recommends a limitation of $3,672,315,000 for 
rental of space, an increase of $392,128,000 above the fiscal 
year 2004 enacted level and the same as the budget request.

                          BUILDING OPERATIONS




Limitations on Availability of Revenue:
    Limitation on availability, fiscal year 2004        ($1,608,708,000)
 enacted to date......................................
    Limitation on availability, budget estimate,         (1,709,522,000)
 fiscal year 2005.....................................
    Recommended in the bill...........................   (1,709,522,000)
Bill compared with:
    Availability limitation, fiscal year 2004 to date.    (+100,814,000)
    Availability limitation, fiscal year 2005 estimate  ................


                        COMMITTEE RECOMMENDATION

    The Committee recommends a limitation of $1,709,522,000 for 
building operations, an increase of $100,814,000 above the 
fiscal year 2004 enacted level and the same as the budget 
request.

                           General Activities


                         GOVERNMENT-WIDE POLICY




Appropriation, fiscal year 2004.......................       $56,050,000
Budget request, fiscal year 2005......................        62,100,000
Recommended in the bill...............................        62,100,000
Bill compared with:
    Appropriation, fiscal year 2004...................        +6,050,000
    Budget request, fiscal year 2005..................  ................


    This appropriations account provides for government-wide 
policy and evaluation activities associated with the management 
of real and personal property assets and certain administrative 
services; government-wide policy support responsibilities 
relating to acquisition, telecommunications, information 
technology management, and related technology activities; and 
services as authorized by 5 U.S.C. 3109.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $62,100,000 
for government-wide policy, an increase of $6,050,000 above the 
fiscal year 2004 enacted level and the same as the budget 
request.
    The Committee directs GSA to continue the recent diligence 
and oversight to strengthen and improve the integrity of the 
Federal Technology Service's program. Actions already taken by 
GSA on the order of employee terminations and initiating 
investigative audits in other regions demonstrates GSA's 
commitment to fixing the program. The Committee directs GSA to 
report 90 days after enactment on the extent and progress GSA 
has made to audit the Federal Technology Service and other 
similar GSA programs in all regions, what weaknesses have been 
identified, and what corrective actions GSA has taken to remedy 
the situation agency wide.
    The Committee is concerned about reports that GSA, in 
contracting-out the Federal Procurement Data System, may have 
reduced public access and made that access more expensive, 
especially through the Freedom of Information Act. The 
Committee urges GSA to ensure that the contract does not render 
any information available prior to the contract award 
unavailable under the current contract, including the full 
data. The Committee urges GSA to move quickly to free public 
access via the agency's website.

                           OPERATING EXPENSES




Appropriation, fiscal year 2004.......................       $87,590,000
Budget request, fiscal year 2005......................        82,175,000
Recommended in the bill...............................        82,175,000
Bill compared with:
    Appropriation, fiscal year 2004...................        -5,415,000
    Budget request, fiscal year 2005..................  ................


    This appropriations account provides for government-wide 
activities associated with the utilization and donation of 
surplus personal property; disposal of real property; 
telecommunications, information technology management, and 
related technology activities; agency-wide policy direction and 
management; ancillary accounting, records management, and other 
support services; services as authorized by 5 U.S.C. 3109; and 
other related operational expenses.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $82,175,000 
for operating expenses, a decrease of $5,415,000 below the 
fiscal year 2004 enacted level and the same as the budget 
request. The Committee's recommendation includes $300,000 for 
continuation of the web wise kids project and $150,000 for 
public service recognition week.

                      Office of Inspector General





Appropriation, fiscal year 2004.......................       $38,938,000
Budget request, fiscal year 2005......................        42,351,000
Recommended in the bill...............................        42,351,000
Bill compared with:
    Appropriation, fiscal year 2004...................        +3,413,000
    Budget request, fiscal year 2005..................  ................


    This appropriation provides agency-wide audit and 
investigative functions to identify and correct GSA management 
and administrative deficiencies that create conditions for 
existing or potential instances of fraud, waste, and 
mismanagement. The audit function provides internal audit and 
contract audit services. Contract audits provide professional 
advice to GSA contracting officials on accounting and financial 
matters relative to the negotiation, award, administration, 
repricing, and settlement of contracts. Internal audits review 
and evaluate all facets of GSA operations and programs, test 
internal control systems, and develop information to improve 
operating efficiencies and enhance customer services. The 
investigative function provides for the detection and 
investigation of improper and illegal activities involving GSA 
programs, personnel, and operations.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $42,351,000 
for the Office of Inspector General, an increase of $3,413,000 
above the fiscal year 2004 enacted level and the same as the 
budget request.

                   Electronic Government (E-Gov) Fund


                     (INCLUDING TRANSFER OF FUNDS)




Appropriation, fiscal year 2004.......................        $2,982,000
Budget request, fiscal year 2005......................         5,000,000
Recommended in the bill...............................         5,000,000
Bill compared with:
    Appropriation, fiscal year 2004...................        +2,018,000
    Budget request, fiscal year 2005..................  ................


    The appropriation provides support for interagency 
electronic government (E-gov) initiatives that utilize the 
Internet or other electronic methods as a means to increase 
Federal Government accessibility, efficiency, and productivity.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $5,000,000 for 
the electronic government fund, an increase of $2,018,000 above 
the fiscal year 2004 enacted level and the same as the budget 
request.
    The Committee's recommendation does not include a general 
provision proposed in the fiscal year 2005 budget request 
allowing the Office of Management and Budget (OMB) to use 
$40,000,000 of surplus funds in the General Supply Fund to 
finance OMB's list of e-gov initiatives across government. 
First, the Committee will not relinquish oversight over the 
development and procurement of information technology projects 
of the various agencies under its jurisdiction. Second, if the 
General Supply Fund is running a $40,000,000 or greater 
surplus, the Committee directs GSA to evaluate the pricing 
structure of its services to federal agencies to determine if 
GSA is overcharging its federal clients. Third, if OMB seeks 
funding for an initiative under its direction, OMB should 
request those funds under its own appropriation complete with a 
comprehensive budget justification.

           Allowances and Office Staff for Former Presidents





Appropriation, fiscal year 2004.......................        $3,373,000
Budget request, fiscal year 2005......................         3,449,000
Recommended in the bill...............................         3,449,000
Bill compared with:
    Appropriation, fiscal year 2004...................           +76,000
    Budget request, fiscal year 2005..................  ................


    This appropriation provides support consisting of pensions, 
office staffs, and related expenses for former Presidents 
Gerald R. Ford, Jimmy Carter, Ronald Reagan, George Bush and 
Bill Clinton and for pension and postal franking privileges for 
the widow of former President Lyndon B. Johnson. Also, this 
appropriation is authorized to provide funding for security and 
travel related expenses for each former President and the 
spouse of a former President pursuant to section 531 of Public 
Law 103-329.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $3,449,000 for 
allowances and office staff of former Presidents, an increase 
of $76,000 above the fiscal year 2004 enacted level and the 
same as the budget request. The following table describes the 
distribution of the funds:

                    FISCAL YEAR 2005 BUDGET ALLOWANCES AND OFFICE STAFF FOR FORMER PRESIDENTS
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                     Ford    Carter   Reagan    Bush   Clinton   Widows   Total
----------------------------------------------------------------------------------------------------------------
Personal Compensation............................      $96      $96      $96      $96      $96       $0     $480
Personnel Benefits...............................       22        2       33       51       78        0      186
Benefits for Former Presidents...................      182      182      182      182      189       20      937
Travel...........................................       44        2        2       54       44        0      146
Rental Payments to GSA...........................      105      102      147      175      460        0      989
Communications, Utilities and Miscellaneous
 Charges:
    Telephone....................................       15       10       18       14       54        0      111
    Postage......................................        9       15        5       13       10        2       54
Printing.........................................        5        5        6       14        8        0       38
Other Services...................................       38       79       45       66      146        0      374
Supplies and Materials...........................       17        5        9       14       15        0       60
Equipment........................................        6        7        2       34        5        0       54
                                                  --------------------------------------------------------------
Total Obligations................................      539      505      545      713    1,105       22    3,429
----------------------------------------------------------------------------------------------------------------

    In addition to the amounts in the above table, $20,000 is 
provided for infrastructure contingency planning.

                   Expenses, Presidential Transition





Appropriation, fiscal year 2004.......................  ................
Budget request, fiscal year 2005......................        $7,700,000
Recommended in the bill...............................         7,700,000
Bill compared with:
    Appropriation, fiscal year 2004...................        +7,700,000
    Budget request, fiscal year 2005..................  ................


    This appropriation provides for costs associated with the 
orderly transfer of executive leadership in accordance with the 
Presidential Transition Act of 1963. Funds for these activities 
are requested only in a presidential election year.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $7,700,000 for the expenses 
associated with a presidential transition, the same as the 
budget request. No funds were requested or appropriated for 
this purpose in fiscal year 2004.
    The Committee's recommendation also includes the provision 
proposed in the budget request allowing $1,000,000 of the 
amount appropriated to remain available for training and 
briefings of incoming appointees associated with the second 
term of an incumbent President. The remaining $6,700,000 would 
be returned to the general fund of the Treasury.

          General Provisions--General Services Administration

    Section 401. The Committee continues the provision that 
provides that costs included in rent received from government 
corporations for operation, protection, maintenance, upkeep, 
repair and improvement shall be credited to the Federal 
Buildings Fund.
    Section 402. The Committee continues the provision 
providing authority for the use of funds for the hire of motor 
vehicles.
    Section 403. The Committee continues the provision 
providing that funds made available for activities of the 
Federal Buildings Fund may be transferred between 
appropriations with advance approval of the Congress.
    Section 404. The Committee continues the provision 
prohibiting the use of funds for developing courthouse 
construction requests that do not meet GSA standards and the 
priorities of the Judicial Conference.
    Section 405. The Committee continues the provision 
providing that no funds may be used to increase the amount of 
occupiable square feet, provide cleaning services, security 
enhancements, or any other service usually provided, to any 
agency which does not pay the requested rent.
    Section 406. The Committee continues the provision that 
permits GSA to pay small claims (up to $250,000) made against 
the government.
    Section 407. The Committee includes a new provision 
proposed in the budget request allowing the sale of the Middle 
River Depot at Middle River, Maryland.
    Section 408. The committee includes a new provision 
proposed in the budget request allowing contracts to be used 
for property studies, deed inspection, and relocation expenses.
    Section 409. The Committee includes a new provision 
allowing the GSA to convey property and retain the proceeds in 
the Federal Buildings Fund.
    Section 410. The Committee includes a new provision 
allowing for the sale of property in Nahant, Massachusetts.

                     MERIT SYSTEMS PROTECTION BOARD


                         Salaries and Expenses





Appropriation, fiscal year 2004.......................       $32,683,000
Budget request, fiscal year 2005......................        37,303,000
Recommended in the bill...............................        34,683,000
Bill compared with:
  Appropriation, fiscal year 2004.....................        +2,000,000
  Budget request, fiscal year 2005....................        -2,620,000


    The Merit Systems Protection Board performs the 
adjudicatory functions necessary to maintain the civil service 
merit system. These include hearing appeals on adverse actions, 
reduction-in-force actions, and retirement. The Board reports 
to the President on whether merit systems are sufficiently free 
from prohibited personnel practices to protect the public 
interest.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $34,683,000 
for the Merit Systems Protection Board (MSPB), an increase of 
$2,000,000 above the amount appropriated in fiscal year 2004 
and a decrease of $2,620,000 below the budget request. The 
decrease from the budget request reflects the Committee's 
decision to continue the practice of appropriating funds to 
MSPB from the Civil Service Retirement and Disability Fund 
rather than discontinuing this practice as proposed in the 
budget request as this proposal has not been adequately 
justified. The Committee has instead made available the amount 
of no more than $2,620,000 for adjudicated appeals through an 
appropriation from the trust fund consistent with past 
practice.

 MORRIS K. UDALL SCHOLARSHIP AND EXCELLENCE IN NATIONAL ENVIRONMENTAL 
                           POLICY FOUNDATION


 Morris K. Udall Scholarship and Excellence in National Environmental 
                           Policy Trust Fund





Appropriation, fiscal year 2004.......................        $1,984,000
Budget request, fiscal year 2005......................             - - -
Recommended in the bill...............................         1,984,000
Bill compared with:
    Appropriation, fiscal year 2004...................  ................
    Budget request, fiscal year 2005..................        +1,984,000


                        COMMITTEE RECOMMENDATION

    The Committee recommends $1,984,000 for the activities of 
the Morris K. Udall Foundation, an amount equal to the fiscal 
year 2004 enacted level. The Committee also continues bill 
language to allow a percentage of the appropriation to be used 
for the Native Nations Institute.

                 ENVIRONMENTAL DISPUTE RESOLUTION FUND




Appropriation, fiscal year 2004.......................        $1,301,000
Budget request, fiscal year 2005......................           700,000
Recommended in the bill...............................         1,301,000
Bill compared with:
    Appropriation, fiscal year 2004...................  ................
    Budget request, fiscal year 2005..................          +701,000


    Public Law 105-156 established the United States Institute 
for Environmental Conflict Resolution as part of the Morris K. 
Udall Scholarship and Excellence in National Environmental 
Policy Foundation. It also established in the Treasury an 
Environmental Dispute Resolution Fund to be available to 
establish and operate the Institute. The purpose of the 
Institute is to conduct environmental conflict resolution and 
training.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $1,301,000 for 
the Environmental Dispute Resolution Fund, an amount equal to 
the fiscal year 2004 enacted level.

              NATIONAL ARCHIVES AND RECORDS ADMINISTRATION


                           Operating Expenses





Appropriation, fiscal year 2004.......................      $255,185,000
Budget request, fiscal year 2005......................       266,945,000
Recommended in the bill...............................       264,185,000
Bill compared with:
  Appropriation, fiscal year 2004.....................        +9,000,000
  Budget request, fiscal year 2005....................        -2,760,000


    This appropriations provides the National Archives and 
Records Administration (NARA) with funds for its basic 
operations dealing with management of the Government's archives 
and records, operation of Presidential libraries, and for the 
review for declassification of classified security information.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $264,185,000 
for the operating expenses of NARA, an increase of $9,000,000 
above the fiscal year 2004 enacted level and $2,760,000 below 
the budget request. The Committee's recommendation includes 
funds to reimburse the Reagan library for NARA's costs 
associated with the funeral.

                       Electronic Records Archive





Appropriation, fiscal year 2004.......................       $35,702,000
Budget request, fiscal year 2005......................       $35,914,000
Recommended in the bill...............................       $35,914,000
Bill compared with:
  Appropriation, fiscal year 2004.....................          +212,000
  Budget request, fiscal year 2005....................  ................


    The electronic records archive appropriations supports all 
direct NARA actions and activities associated with this major 
project for preserving digitally created records for archival 
purposes, storing and managing them electronically, and 
ensuring appropriate long-term access. The appropriation 
supports a program office, research partnerships, and 
information technology analysis and design.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $35,914,000 
for the electronic records archive of the National Archives and 
Records Administration (NARA), an increase of $212,000 above 
the fiscal year 2004 enacted level and the same as the budget 
request. A portion of the funds, $22,000,000, is made available 
for three years.
    As stated in the Committee's report for fiscal year 2004, 
NARA is directed to submit to the House and Senate Committees 
on Appropriations quarterly reports on the cost, schedule, and 
performance of the ERA project. These quarterly reports should 
provide information on the status of the project's schedule, 
budget, and expenditures as measured against a reported 
baseline; a prioritization of project risks and their 
mitigation efforts; and corrective actions taken to manage 
identified schedule slippages, cost overruns, or quality 
problems should they occur.

                        Repairs and Restoration





Appropriation, fiscal year 2004.......................       $13,627,000
Budget request, fiscal year 2005......................         6,182,000
Recommended in the bill...............................         7,182,000
Bill compared with:
  Appropriation, fiscal year 2004.....................        -6,445,000
  Budget request, fiscal year 2005....................        +1,000,000


    This appropriation provides for the repair, alteration, and 
improvement of Archives facilities and Presidential libraries 
nationwide. It enables the National Archives to maintain its 
facilities in proper condition for visitors, researchers, and 
employees, and also maintain the structural integrity of the 
buildings.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $7,182,000 for 
repairs and restoration, a decrease of $6,445,000 below the 
fiscal year 2004 enacted level and $1,000,000 over the budget 
request. The Committee's recommendation includes $500,000 for 
technical assistance to the Nixon library to help prepare for 
the transfer of documents to that library and $750,000 for 
technical assistance to address maintenance issues at the 
Roosevelt library in New York.

 National Historical Publications and Records Commission Grants Program





Appropriation, fiscal year 2004.......................        $9,941,000
Budget request, fiscal year 2005......................         3,000,000
Recommended in the bill...............................         3,000,000
Bill compared with:
  Appropriation, fiscal year 2004.....................         6,941,000
  Budget request, fiscal year 2005....................  ................


    This program provides for grants funding that the 
Commission makes, nationwide, to preserve and publish records 
that document American history. Administered within the 
National Archives and Records Administration, which preserves 
federal records, the NHPRC helps state, local, and private 
institutions preserve non-federal records, helps publish the 
papers of major figures in American history, and helps 
archivists and records managers improve their techniques, 
training, and ability to serve a range of information users.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $3,000,000 for 
the National Historical Publications and Research Commission 
grants program, a decrease of $6,941,000 below the fiscal year 
2004 enacted level and the same as the budget request.

                      OFFICE OF GOVERNMENT ETHICS


                         Salaries and Expenses





Appropriation, fiscal year 2004.......................       $10,675,000
Budget request, fiscal year 2005......................        11,238,000
Recommended in the bill...............................        11,238,000
Bill compared with:
  Appropriation, fiscal year 2004.....................          +563,000
  Budget request, fiscal year 2005....................  ................


    The Office of Government Ethics (OGE), established by the 
Ethics in Government Act of 1978, provides overall direction of 
executive branch policies designed to prevent conflicts of 
interest and insure high ethical standards. The OGE discharges 
its responsibilities to preserve and promote public confidence 
in the integrity of executive branch officials by developing 
rules and regulations pertaining to conflicts of interest, post 
employment restrictions, standards of conduct, and public and 
confidential financial disclosure in the executive branch. It 
monitors compliance with public and confidential financial 
disclosure requirements of the Ethics in Government Act of 1978 
and the Ethics Reform Act of 1989, to determine possible 
violations of applicable laws or regulations and recommending 
appropriate corrective action. OGE also consults with and 
assists various officials in evaluating the effectiveness of 
applicable laws and the resolution of individual problems, and 
prepares formal advisory opinions, informal letter opinions, 
policy memoranda, and Federal Register entries on how to 
interpret and comply with the requirements on conflicts of 
interest, post employment, standards of conduct, and financial 
disclosure. Finally, OGE issues and amends regulations 
implementing the procurement integrity provisions relating to 
negotiating for employment, post employment, and gratuities in 
the Office of Federal Procurement Policy Act Amendments of 
1988, P.L. 100-679.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $11,238,000 
for the Office of Government Ethics, an increase of $563,000 
above the enacted fiscal year 2004 level and the same as the 
budget request.

                     OFFICE OF PERSONNEL MANAGEMENT


                         Salaries and Expenses





Appropriation, fiscal year 2004.......................      $118,793,000
Budget request, fiscal year 2005......................       131,238,000
Recommended in the bill...............................       120,444,000
Bill compared with:
  Appropriation, fiscal year 2004.....................        +1,651,000
  Budget request, fiscal year 2005....................       -10,847,000


    The Office of Personnel Management (OPM) is the Federal 
Government agency responsible for management of Federal human 
resources policy and oversight of the merit civil service 
system. Although individual agencies are increasingly 
responsible for personnel operations, OPM provides a 
Government-wide policy framework for personnel matters, advises 
and assists agencies (often on a reimbursable basis), and 
ensures that agency operations are consistent with requirements 
of law, with emphasis on such issues as veterans preference. 
OPM oversees examining of applicants for employment, issues 
regulations and policies on hiring, classification and pay, 
training, investigations, and many other aspects of personnel 
management, and operates a reimbursable training program for 
the Federal Government's managers and executives. OPM is also 
responsible for administering the retirement, health benefits 
and life insurance programs affecting most federal employees, 
retired federal employees, and their survivors.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $120,444,000 
for the Office of Personnel Management, an increase of 
$1,651,000 above the enacted fiscal year 2004 level and 
$10,847,000 below the budget request.
    The Committee's recommendation includes $2,000,000 for the 
enterprise human resources integration project; $6,615,000 for 
e-payroll; $800,000 for e-human resources information system 
project; $2,000,000 for e-clearance; and $3,000,000 for the 
recruitment one stop program as proposed in the budget request. 
The recommendation also provides $128,462,000 from appropriate 
trust funds to OPM.
    The Committee's recommendation makes the following changes 
to the budget request:
           Human Capital--Performance Culture under 
        Strategic Human Resources Policy should not exceed the 
        fiscal year 2004 level of $5,779,000 (-$892,000 and -2 
        FTE from the request).
           ``Providing advice to agencies'' under Human 
        Capital Leadership Merit Systems Accountability should 
        not exceed the fiscal year 2004 level of $16,813,000 
        for salaries and expenses (-$536,000 and -5 FTE from 
        the request). The Committee suggests subtracting funds 
        from activities related to the ``Promote Public Trust 
        in the Federal Workforce'' initiative.
           The Compliance Program under Human Capital 
        Leadership Merit Systems Accountability should not 
        exceed the 2004 level of $16,472,000 (-$901,000 and -6 
        FTE from the request).
           Management Strategy is funded at $46,247,000 
        (-$5,000,000). The Subcommittee's recommendation does 
        not include $5,000,000 as proposed to finance the 
        performance measurement and program evaluation strategy 
        and spending plan.
           E-gov initiative fees are not funded 
        (-$1,028,000). The Subcommittee has provided requested 
        funds for the e-gov initiatives relevant to OPM's 
        mission.
           Completion of the current retirement 
        readiness project (+$250,000).
           Expansion of the retirement readiness 
        project to non-federal government employees 
        (+$500,000).
    The Committee allows the Director some flexibility to 
allocate the remaining funds across the proposals included in 
the fiscal year 2005 budget request. The Committee directs the 
office to submit an operating plan for fiscal year 2005, signed 
by the director for review by the Committees on Appropriations 
of both the House and Senate within 60 days of the bill's 
enactment. The operating plan should include funding levels for 
the various offices, programs and initiatives covered in the 
budget justification and supporting documents referenced in the 
House and Senate appropriations reports, and the statement of 
the managers.
    The Committee finds that the budget justification materials 
are severely lacking in any real detail about the programs 
proposed or underway at OPM and the resources involved. Many of 
the verbose descriptions in the budget justification did not 
provide concrete information on the programs, activities and 
funding requirements and changes to OPM's work.
    The Committee directs OPM to include with the ``Annual 
Report on Locality-Based Comparability Payments for the General 
Schedule'' in fiscal year 2005 and all future fiscal years a 
report comparing the total pay and non-pay compensation 
packages of the Federal workforce and the private sector.
    The Committee welcomes the decision by OPM to make health 
savings accounts a part of the benefits package available to 
federal employees.
    The Committee directs the OPM director to respond to the 
formal request of by the Butner Low Security Correctional 
Institution regarding its petition on the Central Carolina/
Richmond-Petersburg wage area within 30 days of enactment of 
this Act.

                      Office of Inspector General





Appropriation, fiscal year 2004.......................        $1,489,000
Budget request, fiscal year 2005......................         1,627,000
Recommended in the bill...............................         1,627,000
Bill compared with:
  Appropriation, fiscal year 2004.....................          +138,000
  Budget request, fiscal year 2005....................  ................


    This appropriation provides agency-wide audit, 
investigative, evaluation, and inspection functions to identify 
management and administrative deficiencies, which may create 
conditions for fraud, waste and mismanagement. The audits 
function provides internal agency audit, insurance audit, and 
contract audit services. Contract audits provide professional 
advice to agency contracting officials on accounting and 
financial matters regarding the negotiation, award, 
administration, repricing, and settlement of contracts. 
Internal audits review and evaluate all facets of agency 
operations, including financial statements. Evaluation and 
inspection services provide detailed technical evaluations of 
agency operations. Insurance audits review the operations of 
health and life insurance carriers, health care providers, and 
insurance subscribers. The investigative function provides for 
the detection and investigation of improper and illegal 
activities involving programs, personnel, and operations.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $1,627,000 for 
the Office of Inspector General of the Office of Personnel 
Management, an increase of $138,000 from the fiscal year 2004 
enacted level and the same as the budget request.

      Government Payment for Annuitants, Employees Health Benefits





Appropriation, fiscal year 2004.......................    $7,219,000,000
Budget request, fiscal year 2005......................     8,135,000,000
Recommended in the bill...............................     8,135,000,000
Bill compared with:
    Appropriation, fiscal year 2004...................      +916,000,000
    Budget request, fiscal year 2005..................  ................


    This appropriation covers: (1) the Government's share of 
the cost of health insurance for 1,851,000 annuitants as 
defined in sections 8901 and 8906 of title 5, United States 
Code; (2) the Government's share of the cost of health 
insurance for about 12,000 annuitants (who were retired when 
the federal employees health benefits law became effective), as 
defined in the Retired Federal Employees Health Benefits Act of 
1960; and (3) the Government's contribution for payment of 
administrative expenses incurred by the Office of Personnel 
Management in administration of the act.
    Not later than 30 days after the enactment of this Act, the 
Committee directs OPM to report on the number of FEHBP plans 
that are currently offering acupuncture services on a voluntary 
basis. Additionally, the Committee directs OPM to submit a 
report not later than 3 months after enactment of this Act on 
the projected cost of negotiating acupuncture as a standard 
benefit in all FEHBP contracts, including current workers and 
retirees, for calendar year 2006, with employee cost-sharing at 
the same rates as other medical benefits in each plan.

      Government Payment for Annuitants, Employees Life Insurance





Appropriation, fiscal year 2004.......................       $35,000,000
Budget request, fiscal year 2005......................        35,000,000
Recommended in the bill...............................        35,000,000
Bill compared with:
    Appropriation, fiscal year 2004...................  ................
    Budget request, fiscal year 2005..................  ................


    This appropriation finances the Government's share of 
premiums, which is one-third the cost, for basic life insurance 
for annuitants retiring after December 31, 1989, and who are 
less than 65 years old.

        Payment to Civil Service Retirement and Disability Fund





Appropriation, fiscal year 2004.......................    $9,987,000,000
Budget request, fiscal year 2005......................     9,772,000,000
Recommended in the bill...............................     9,772,000,000
Bill compared with:
    Appropriation, fiscal year 2004...................      -215,000,000
    Budget request, fiscal year 2005..................  ................


    This appropriation provides for payment of annuities, 
including the payment of annuities under special acts for 
persons employed on the construction of the Panama Canal or 
their widows and widows of employees of the Lighthouse Service; 
payment of the government share of retirement costs of the 
unfunded liability resulting from any statute authorizing new 
or liberalized benefits, extension of retirement coverage, or 
pay increases; transfers for interest on unfunded liability and 
payment of military service annuities covering interest on the 
unfunded liability and annuity disbursements for military 
service; payments for spouse equity providing survivor 
annuities to eligible former spouses of annuitants who died 
between September 1978 and May 1986 and did not elect survivor 
coverage; and transfers for payment of FERS supplemental 
liability covering annual amortization payments financing 
supplemental liabilities for FERS.

                     Human Capital Performance Fund





Appropriation, fiscal year 2004.......................          $994,000
Budget request, fiscal year 2005......................      $300,000,000
Recommended in the bill...............................        12,514,000
Bill compared with:
    Appropriation, fiscal year 2004...................       +11,520,000
    Budget request, fiscal year 2005..................      -287,486,000


    This appropriation provides for the establishment of a 
Human Capital Performance Fund within the Office of Personnel 
Management. Allotments from this fund will be transferred to 
other Federal agencies in amounts as may be determined by the 
Director of OPM within the guidelines established by 
authorizing legislation, provided that such agencies submit a 
performance pay plan for the Director's approval. Awards to 
individual employees from this fund for performance will become 
part of those employees' base pay.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $12,514,000 
for the Human Capital Performance Fund, obligation of which is 
contingent upon authorizing legislation. In order to ensure the 
continuation of proper oversight and control over agency 
personnel budgets, the Committee has included language 
directing OPM to notify the relevant subcommittees of 
jurisdiction of the Committees on Appropriations of any 
performance pay plan that has been approved for any agency, 
including the amounts to be obligated or transferred, and that 
funds for any plan shall not be obligated or transferred 
without those subcommittees' prior approval. The Committee 
further directs OPM to report annually to the Committees on 
Appropriations on the performance pay plans that have been 
approved, and the amounts that have been obligated or 
transferred.

                       OFFICE OF SPECIAL COUNSEL


                         Salaries and Expenses





Appropriation, fiscal year 2004.......................       $13,424,000
Budget request, fiscal year 2005......................        15,449,000
Recommended in the bill...............................        15,449,000
Bill compared with:
    Appropriation, fiscal year 2004...................        +2,025,000
    Budget request, fiscal year 2005..................  ................


    The Office of Special Counsel: (1) investigates federal 
employee allegations of prohibited personnel practices 
(including reprisal for whistleblowing) and, when appropriate, 
prosecutes before the Merit Systems Protection Board; (2) 
provides a channel for whistleblowing by federal employees; and 
(3) enforces the Hatch Act. The Office may transmit 
whistleblower allegations to the agency head concerned and 
require an agency investigation and a report to the Congress 
and the President when appropriate.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $15,449,000 
for the Office of Special Counsel, an increase of $2,025,000 
above the fiscal year 2004 enacted level and the same as the 
budget request.

                      UNITED STATES POSTAL SERVICE


                   Payment to the Postal Service Fund

    The Postal Service is funded almost entirely by Postal rate 
payers rather than tax payers. Funds provided to the Postal 
Service in the Payment to the Postal Service Fund include the 
costs of revenue forgone on free and reduced-rate mail for the 
blind and overseas voters; reconciliation adjustments for 
amounts appropriated for free and reduced rate mail and the 
actual amounts required; and partial reimbursement for losses 
which the Postal Service incurred as a result of insufficient 
appropriations in fiscal years 1991 through 1993 and the 
additional revenues it would have received between 1993 and 
1998 in the absence of certain rate phasing provisions of the 
Revenue Forgone Act of 1993. Congress does not provide funds 
for either general operations or capital investments.




Appropriation, fiscal year 2004.......................       $65,135,000
Budget request, fiscal year 2005......................        61,709,000
Recommended in the bill...............................        61,709,000
Bill compared with:
    Appropriation, fiscal year 2003...................        -3,426,000
    Budget request, fiscal year 2004..................  ................


                        COMMITTEE RECOMMENDATION

     The Committee recommends an appropriation of $61,709,000 
in fiscal year 2005 for Payment to the Postal Service Fund, an 
amount equal to the President's request. A balance of 
$36,521,000 of fiscal year 2005 funds reflects the advance 
appropriation for free mail for the blind and overseas voters 
for fiscal year 2005 provided in the Treasury and General 
Government Appropriations Act for fiscal year 2004.
     The Committee has provided an advance appropriation for 
fiscal year 2006 for free mail for the blind and overseas 
voters; this is the same amount requested by the President. 
However, the Committee has concerns with the new process 
implemented this year by the Office of Management and Budget 
(OMB). In past years, the OMB would use the Postal Service's 
audit figures to base the advance appropriation request for 
free mailings for the blind and overseas voters. However, this 
year it appears that OMB simply took the average appropriation 
over a series of years to derive the President's request, 
apparently for the sole reason that the Postal Service's audit 
figures were higher than in previous years. This new system 
could produce funding amounts that may be either significantly 
lower or higher than actual sums that the Postal Service needs. 
Providing less than the Postal Service needs will only compound 
their financial burdens, something that the Committee has 
strongly urged the Postal Service to try and repair. In 
addition, the Committee would certainly not want to provide 
more funding than the Postal Service actually needs for these 
activities. The Committee is concerned that OMB's new use of 
averages in determining the amount for free mail is inaccurate 
and the Committee urges OMB to continue to use Postal Service 
audit figures in the future.
    Emergency preparedness.--The Committee is concerned that 
OMB, in its fiscal year 2005 budget request, has not given 
attention to the safety and security of our nation's mail 
system and protections for postal employees against terrorist 
threats. In fiscal year 2002, Congress provided a total of 
$587,000,000 to improve mail safety and security and to replace 
or repair postal facilities destroyed or damaged in New York 
City as a result of the September 11, 2001 terrorist attacks. 
The Postal Service has, in addition, spent $384,000,000 of its 
own revenues on safety improvements and cleanup, with still 
more expenditures necessary for the full deployment of the 
Biohazard Detection System and the Ventilation and Filtration 
System. The Committee therefore directs OMB to report to the 
House and Senate Committees on Appropriations within 90 days of 
enactment of this Act detailing the estimated amount of Federal 
funding that may be necessary to complete the Postal Service's 
work to secure the nation's mail system.
    Princeville, Alabama.--The Committee recommends that the 
United States Postal Service, working with local officials and 
community leaders, evaluate the need for a post office in 
Princeville, Alabama. The Committee directs the Postal Service 
to report its findings to the House and Senate Committees on 
Appropriations upon completion of the evaluation.
    Vendor licensing.--The Committee commends the Postal 
Service for previously recognizing inefficiencies in its vendor 
licensing process associated with the system it uses for 
employee purchases of uniforms. However, the Committee is 
troubled to learn that, though the vendor licensing process was 
halted in 1996, eight years later no updated process for 
licensing new vendors has been established. This failure has 
resulted in unnecessarily limiting employees to purchasing 
their uniforms from a small number of vendors, many of which 
may be inconveniently located or more expensive. The Committee 
directs the USPS to report to the House and Senate Committees 
on Appropriations within 60 days of enactment of this Act on a 
definitive plan for licensing uniform vendors, a timeline for 
the plan's implementation and an indication of how and when new 
vendors will be added to the Uniform Program.
    Lynwood and Sauk Village, Illinois.--The Committee 
recommends that the United States Postal Service evaluate the 
need for the communities of Lynwood, Illinois and Sauk Village, 
Illinois to establish a new 604 ZIP Code for these two 
communities to share. It is the Committee's understanding that 
no new resources or facilities would be needed to approve this 
change. The Committee directs the Postal Service to report its 
findings to the House and Senate Committees on Appropriations 
upon completion of the evaluation.

                        UNITED STATES TAX COURT


                         Salaries and Expenses





Appropriation, fiscal year 2004.......................       $40,187,000
Budget request, fiscal year 2005......................        41,180,000
Recommended in the bill...............................        41,180,000
Bill compared with:
    Appropriation, fiscal year 2004...................          +993,000
    Budget request, fiscal year 2005..................  ................


    The U.S. Tax Court operates to handle trails and 
adjudication of controversies involving deficiencies in income, 
estate, and gift taxes. The Court also has jurisdiction to 
determine deficiencies in certain excise taxes to issue 
declaratory judgments in the areas of qualifications of 
retirement plans, exemption of charitable organizations; and to 
decide certain cases involving disclosure of tax information by 
the Commissioner of Internal Revenue.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $40,180,000 
for the U.S. Tax Court, an increase of $993,000 above the 
fiscal year enacted level.

                 TITLE V--GENERAL PROVISIONS, THIS ACT

    Section 501. The Committee continues the provision 
requiring pay raises to be funded within appropriated levels in 
this Act or previous appropriations Acts.
    Section 502. The Committee continues the provision 
prohibiting pay and other expenses for non-Federal parties in 
regulatory or adjudicatory proceedings funded in this Act.
    Section 503. The Committee continues the provision 
prohibiting obligations beyond the current fiscal year and 
prohibits transfers of funds unless expressly so provided 
herein.
    Section 504. The Committee continues the provision limiting 
consulting service expenditures of public record in procurement 
contracts.
    Section 505. The Committee continues the provision 
designating the city of Norman, Oklahoma, to be considered part 
of the Oklahoma City Transportation urbanized area for fiscal 
year 2005.
    Section 506. The Committee continues the provision 
prohibiting funds in this Act to be transferred without express 
authority.
    Section 507. The Committee continues the provision 
prohibiting the use of funds to engage in activities that would 
prohibit the enforcement of section 307 of the 1930 Tariff Act.
    Section 508. The Committee continues the provision 
concerning employment rights of Federal employees who return to 
their civilian jobs after assignment with the Armed Forces.
    Section 509. The Committee continues the provision 
concerning compliance with the Buy American Act.
    Section 510. The Committee continues the provision of 
purchasing American-made equipment and products under financial 
assistance authorization.
    Section 511. The Committee includes a provision prohibiting 
a person affixing a label bearing ``Made in America'', that is 
not made in the United States.
    Section 512. The Committee continues the provision 
providing that fifty percent of unobligated balances may remain 
available for certain purposes.
    Section 513. The Committee includes a provision providing 
that funds used by the Executive Office of the President not be 
used to request any official background investigation from the 
Federal Bureau of Investigation.
    Section 514. The Committee includes a provision requiring 
that cost accounting standards not apply to a contract under 
the Federal Health Benefits Program.
    Section 515. The Committee continues a provision regarding 
non-foreign area cost of living allowances.
    Section 516. The Committee continues a provision 
prohibiting the use of funds by any person or entity convicted 
of violating the Buy American Act.
    Section 517. The Committee continues the provision 
prohibiting the expenditure of funds for abortions under the 
FEHBP.
    Section 518. The Committee continues the provision 
prohibiting the expenditure of funds for abortions under the 
FEHBP unless the life of the mother is in danger or the 
pregnancy is a result of an act of rape or incest.
    Section 519. The Committee modifies a provision specifying 
reprogramming procedures by subjecting the establishment of new 
offices and reorganizations to the reprogramming process.
    Section 520. The Committee continues a new provision 
waiving restrictions on the purchase of non-domestic articles, 
materials, and supplies in the case of acquisition by the 
Federal Government of information technology.
    Section 521. The Committee continues a provision providing 
a sense of the House of Representatives that empowerment zones 
within cities should have the necessary flexibility to expand 
to include relevant communities so that empowerment zone 
benefits are equitably distributed.
    Section 522. The Committee continues a provision a sense of 
the House of Representative that all census tracts contained in 
an empowerment zone, either fully or partially, should be 
equitably accorded the same benefits.
    Section 523. The Committee continues the provision 
prohibiting the use of funds for a proposed rule relating to 
the determination that real estate brokerage is a financial 
activity.
    Section 524. The Committee includes a provision expressing 
the Sense of the Congress that the Department of Transportation 
should consider programs to reimburse general aviation ground 
support services at Ronald Reagan Washington National Airport, 
and airports within fifteen miles of Ronald Reagan Washington 
National Airport, for their financial losses due to government 
actions following the terrorist attacks of September 11, 2001. 
This is similar to a provision enacted for fiscal year 2004.
    Section 525. The Committee continues the provision 
prohibiting the use of funds to implement an Essential Air 
Service (EAS) local Cost Share Participation pilot program.

                      TITLE VI--GENERAL PROVISIONS


                Departments, Agencies, and Corporations

    Section 601. The Committee continues the provision 
authorizing agencies to pay costs of travel to the United 
States for the immediate families of federal employees assigned 
to foreign duty in the event of a death or a life threatening 
illness of the employee.
    Section 602. The Committee continues the provision 
requiring agencies to administer a policy designed to ensure 
that all of its workplaces are free from the illegal use of 
controlled substances.
    Section 603. The Committee continues the provision 
regarding price limitations on vehicles to be purchased by the 
Federal Government.
    Section 604. The Committee continues the provision allowing 
funds made available to agencies for travel, to also be used 
for quarter allowances and cost-of-living allowances.
    Section 605. The Committee continues the provision 
prohibiting the government, with certain specified exceptions, 
from employing non-U.S. citizens whose posts of duty would be 
in the continental U.S.
    Section 606. The Committee continues the provision ensuring 
that agencies will have authority to pay GSA bills for space 
renovation and other services.
    Section 607. The Committee continues the provision allowing 
agencies to finance the costs of recycling and waste prevention 
programs with proceeds from the sale of materials recovered 
through such programs.
    Section 608. The Committee continues the provision 
providing that funds may be used to pay rent and other service 
costs in the District of Columbia.
    Section 609. The Committee continues the provision 
prohibiting payments to persons filling positions for which 
they have been nominated after the Senate has voted not to 
approve the nomination.
    Section 610. The Committee continues the provision 
prohibiting interagency financing of groups absent prior 
statutory approval.
    Section 611. The Committee continues the provision 
authorizing the Postal Service to employ guards and give them 
the same special police powers as certain other federal guards.
    Section 612. The Committee continues the provision 
prohibiting the use of funds for enforcing regulations 
disapproved in accordance with the applicable law of the U.S.
    Section 613. The Committee continues the provision limiting 
the pay increases of certain prevailing rate employees.
    Section 614. The Committee continues the provision limiting 
the amount of funds that can be used for redecoration of 
offices under certain circumstances.
    Section 615. The Committee continues the provision to allow 
for interagency funding of national security and emergency 
telecommunications initiatives.
    Section 616. The Committee continues the provision 
requiring agencies to certify that a Schedule C appointment was 
not created solely or primarily to detail the employee to the 
White House.
    Section 617. The Committee continues the provision 
requiring agencies to administer a policy designed to ensure 
that all workplaces are free from discrimination and sexual 
harassment.
    Section 618. The Committee continues the provision 
prohibiting the payment of any employee who prohibits, 
threatens or prevents another employee from communicating with 
Congress.
    Section 619. The Committee continues the provision 
prohibiting Federal training not directly related to the 
performance of official duties.
    Section 620. The Committee continues the provision 
prohibiting the expenditure of funds for implementation of 
agreements in nondisclosure policies unless certain provisions 
are included.
    Section 621. The Committee continues the provision 
prohibiting propaganda, publicity and lobbying by executive 
agency personnel in support or defeat of legislative 
initiatives.
    Section 622. The Committee continues the provision 
prohibiting any federal agency from disclosing an employee's 
home address to any labor organization, absent employee 
authorization or court order.
    Section 623. The Committee continues the provision 
prohibiting funds to be used to provide non-public information 
such as mailing or telephone lists to any person or 
organization outside the government without the approval of the 
Committees on Appropriations.
    Section 624. The Committee continues the provision 
prohibiting the use of funds for propaganda and publicity 
purposes not authorized by Congress.
    Section 625. The Committee continues the provision 
directing agency employees to use official time in an honest 
effort to perform official duties.
    Section 626. The Committee continues the provision, with 
technical modifications, authorizing the use of funds to 
finance an appropriate share of the Joint Financial Management 
Improvement Program.
    Section 627. The Committee continues the provision, with 
technical modifications, authorizing agencies to transfer funds 
to the Governmentwide Policy account of GSA to finance an 
appropriate share of the Joint Financial Management Improvement 
Program and other purposes.
    Section 628. The Committee continues the provision, to 
prohibit any department or agency from using appropriated funds 
to independently contract with private companies to provide 
online employment applications and processing services.
    Section 629. The Committee continues the provision that 
permits breast feeding in a federal building or on federal 
property if the woman and child are authorized to be there.
    Section 630. The Committee continues the provision that 
permits interagency funding of the National Science and 
Technology Council and provides for a report on the budget and 
resources of the National Science and Technology Council. The 
report should include the entire budget of the National Science 
and Technology Council.
    Section 631. The Committee continues the provision 
requiring documents involving the distribution of federal funds 
to indicate the agency providing the funds and the amount 
provided.
    Section 632. The Committee extends the authorization period 
for agency franchise funds by striking ``October 1, 2004'' and 
inserting ``October 1, 2005'', as requested.
    Section 633. The Committee continues the provision 
prohibiting the use of funds to monitor personal information 
relating to the use of federal internet sites to collect, 
review, or create any aggregate list that includes personally 
identifiable information relating to access to or use of any 
federal internet site of such agency.
    Section 634. The Committee continues the provision 
requiring health plans participating in the FEHBP to provide 
contraceptive coverage and provides exemptions to certain 
religious plans.
    Section 635. The Committee continues the provision 
providing recognition of the U.S. Anti-Doping Agency as the 
official anti-doping agency.
    Section 636. The Committee continues the provision 
prohibiting funds from being expended for the purchase of a 
product or service offered by Federal Prison Industries, Inc. 
unless the agency determines the products to constitute the 
best value to the buying agency.
    Section 637. The Committee continues a provision requiring 
agencies to evaluate the creditworthiness of an individual 
before issuing the individual a government travel charge card 
and limits agency actions accordingly.
    Section 638. The Committee continues a provision allowing 
funds for official travel to be used by departments and 
agencies, if consistent with OMB and Budget Circular A-126, to 
participate in the fractional aircraft ownership pilot program.
    Section 639. The Committee includes a provision providing 
that funds not be used to implement or enforce regulations for 
locality pay inconsistent with recommendations of the Federal 
Salary Council.
    Section 640. The Committee continues a provision requiring 
the head of each Federal agency to submit a report to Congress 
on the amount of acquisitions made by the agency from entities 
that manufacture the articles, materials, or supplies outside 
of the United States.
    Section 641. The Committee continues a provision 
prohibiting funds for implementation of OPM regulations 
limiting detailees to the Legislative Branch, and implementing 
limitations on the Coast Guard Congressional Fellowship 
Program.
    Section 642. The Committee includes a new provision 
eliminating the ten year limitations period applicable to the 
offset of federal non-tax payments, as requested.
    Section 643. The Committee includes a new provision, as 
requested, permitting the Secretary of Health and Human 
Services to match information, provided by the Secretary of the 
Treasury with respect to persons owing delinquent debt to the 
Federal Government, with information contained in the HHS 
National Directory of New Hires.
    Section 644. The Committee includes a new provision, as 
requested, allowing for the offset of federal tax refunds to 
collect delinquent state unemployment compensation 
overpayments.
    Section 645. The Committee includes a provision providing 
that the adjustment in rates of basic pay for employees under 
statutory pay systems, including prevailing rate employees, 
taking effect in fiscal year 2005 shall be an increase of 3.5 
percent, subject to certain definitions and restrictions as 
stated.
    Section 646. The Committee includes a new provision 
regarding conditions for converting an activity or function of 
an executive agency to contractor performance under provisions 
of OMB circular A-76.

              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 3(d)(1) of the rule XXIII 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 its 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.

                  Appropriations Not Authorized by Law

    Pursuant to clause 3(f)(1) of rule XIII of the Rules of the 
House of Representatives, the following table lists the 
appropriations in the accompanying bill that are not authorized 
by law:

                                      APPROPRIATIONS NOT AUTHORIZED BY LAW
                                             [Dollars in thousands]
----------------------------------------------------------------------------------------------------------------
                                                                                 Appropriations
                                                Last year of    Authorization   in last year of   Appropriations
                                               authorization        level        authorization     in this bill
----------------------------------------------------------------------------------------------------------------
    Title I--Department of Transportation

Federal Highway Administration: Federal-aid              2004      $26,433,750      $33,643,326      $34,641,000
 Highway Program............................
Federal Motor Carrier Safety Administration:
    Motor Carrier Safety Operations and                  2004          175,031          175,031          248,480
     Programs...............................
    Motor Carrier Safety Grants.............             2004          190,000          188,879          190,000
National Highway Traffic Safety
 Administration:
    Operations & Research--General Fund.....  ...............  ...............  ...............          129,514
    Operations & Research--Trust Fund.......             2003           72,000           71,532           90,000
    National Driver Register................             2003            2,000            1,987            3,600
    Highway Traffic Safety Grants...........             2003          225,000          223,537          225,000
Federal Railroad Administration:
    Safety and Operations...................             1998              N/A              N/A          137,738
    Railroad Safety.........................             1998           90,739           57,050           33,289
    Grants to the National Passenger                     2002          955,000          826,476          900,000
     Railroad Corporation...................
Federal Transit Administration:
    Administrative Expenses.................             2004           56,290  ...............           75,500
    Formula Grants..........................             2004        2,862,262  ...............          767,800
    University Transportation Research......             2004            4,473  ...............            1,200
    Transit Planning and Research...........             2004           93,942  ...............           25,200
    Job Access and Reverse Commute..........             2004           93,196  ...............           50,000
    Capital Investment Grants...............             2004        2,339,241  ...............          642,647
    Major Capital Investment Grants.........  ...............  ...............  ...............        1,563,198
    Formula Grants and Research.............  ...............  ...............  ...............        5,622,871
Research and Special Programs:
    Research and Special Programs (Hazardous             1997           19,670           15,268           46,790
     Materials Safety)......................
    Emergency Preparedness Grants...........             1998           21,250            7,970           14,300
Surface Transportation Board................             1998           12,000           13,850           20,771

    Title II--Department of the Treasury

Department-Wide Systems and Capital                       N/A              N/A              N/A           36,072
 Investments................................
Air Transportation Stabilization Program....              N/A              N/A              N/A            2,000
Treasury Building and Annex Repair and                    N/A              N/A              N/A           20,316
 Restoration................................
Financial Crimes Enforcement Network........              N/A              N/A              N/A           64,502
Alcohol and Tobacco Tax and Trade Bureau....              N/A              N/A              N/A           82,542

Title III--Executive Office of the President

Compensation of the President...............             1999              (1)              N/A              450
White House Office, Salaries and Expenses...             1978              (1)              N/A           59,525
Executive Residence, Operating Expenses.....             1978              (1)              N/A           12,760
Executive Residence, White House Repair and              1978              (1)              N/A            1,900
 Restoration................................
Council of Economic Advisors................             1978              (1)              N/A            4,040
Office of Policy Development................             1978              (1)              N/A            2,267
National Security Council...................             1978              (1)              N/A            8,932
Office of Administration....................             1978              (1)              N/A           92,696
Office of Management and Budget.............             2003              (1)              N/A           67,759
Unanticipated Needs.........................             1978              (1)              N/A            1,000
Special Assistance to the President,                     1978              (1)              N/A            4,571
 Salaries and Expenses......................
Special Assistance to the President,                     1978              (1)              N/A              333
 Operating Expenses.........................
Office of National Drug Control Policy        ...............              (1)              N/A  ...............
 (ONDCP):...................................
ONDCP, Salaries and Expenses................             2004              N/A              N/A           28,109
ONDCP, Salaries and Expenses, Model State                 N/A              N/A              N/A              N/A
 Drug Laws..................................
ONDCP, Counterdrug Technology Assessment                 2004              N/A              N/A              N/A
 Center, Counterdrug Research and
 Development................................
ONDCP, Counterdrug Technology Assessment                 2004              N/A              N/A              N/A
 Center, Technology Transfer................
ONDCP, High Intensity Drug Trafficking Areas             2004              (1)              N/A          215,350
 Program....................................
ONDCP, Other Federal Drug Control (except                2004           12,800           13,917            5,000
 Drug-Free Communities).....................
ONDCP, Other Federal Drug Control, Media                 2004          145,000          144,145          120,000
 Campaign...................................

       Title IV--Independent Agencies

Federal Election Commission.................             1981            9,400            9,662           52,159
General Services Administration:
    Federal Building Fund...................              N/A              N/A              N/A              N/A
    Construction and Acquisition............              N/A              N/A              N/A          355,754
    Repairs and Alterations.................              N/A              N/A              N/A          519,372
Office of Government Ethics.................             1999            (\1\)              N/A           11,238
OPM, Human Capital Performance Fund.........              N/A              N/A              N/A            2,100
----------------------------------------------------------------------------------------------------------------
\1\ Such sums as may be necessary.

                           Transfer of Funds

    Pursuant to clause 3(f)(2) of rule XIII of the Rules 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 the Department of Transportation, Federal Railroad 
Administration, a portion of unobligated balances is 
transferred to Federal Transit Administration.
    Under the Department of the Treasury, a number of transfers 
are allowed: (1) under Departmental Offices--Salaries and 
Expenses, $3,393,000 is allowed to be transferred to other 
Treasury offices for financial statement audits, (2) under 
Department-wide Systems and Capital Investments Programs, 
$36,072,000 is allowed to be transferred to other offices in 
pursuit of specific projects, and (3) a number of General 
Provisions allow certain transfers among Treasury offices with 
the advance approval of the Committee.
    Under the Department of Treasury Building and Annex Repair 
and Restoration, $2 million to the Office of Inspector General 
for audit costs.
    Under Independent Agencies, a number of transfers are 
allowed: (1) the GSA Allowances and Office Staff for Former 
Presidents account may transfer such sums as necessary to the 
Department of the Treasury for certain pension benefits, (2) 
the GSA Electronic Government Fund may transfer $5,000,000 to 
federal departments in pursuit of program goals, (3) certain 
trust funds may transfer money to the Office of Personnel 
Management (OPM) and its Inspector General, (4) OPM may 
transfer $21,000,000 from the Human Capital Performance Fund to 
other federal departments and agencies, and (5) the Civil 
Service Retirement and Disability Fund may transfer money to 
the Merit System Protection Board.
    Under the Election Assistance Commission, $2,500,000 to the 
National Institutes of Standards and Technology.
    Under general provisions:
    Title I, Sec. 172. The Committee continues the provision 
that allows funds for discretionary grants of the Federal 
Transit Administration for specific projects, except for fixed 
guideway modernization projects, not obligated by September 30, 
2005, and other recoveries to be used for other projects under 
49 U.S.C. 5309.
    Title I, Sec. 173. The Committee continues the provision 
that allows transit funds appropriated before October 1, 2003, 
that remain available for expenditure to be transferred.
    Title II, Sec. 201. The Committee continues the provision 
that allows the transfer of 5 percent of any appropriation made 
available to the IRS to any other IRS appropriation, subject to 
prior Congressional approval.
    Title II, Sec. 206. The Committee continues with 
modifications a provision that authorizes transfers, up to 2 
percent, between Departmental Offices--Salaries and Expenses, 
Office of the Inspector General, Financial Management Service, 
Alcohol and Tobacco Tax and Trade Bureau, Financial Crimes 
Enforcement Network, and the Bureau of the Public Debt 
appropriations under certain circumstances.
    Title II, Sec. 207. The Committee continues the provision 
that authorizes transfer, up to 2 percent, between the Internal 
Revenue Service and the Treasury Inspector General for Tax 
Administration under certain circumstances.
    Title V, Sec. 503. The Committee continues the provision, 
with technical modification, providing that funds made 
available for activities of the Federal Buildings Fund may be 
transferred between appropriations with advance approval of the 
Congress.

         Statement of General Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the following is a statement of 
general performance goals and objectives for which this measure 
authorizes funding:
    The committee on Appropriations strongly considers program 
performance, including a program's success in developing and 
attaining outcome-related goals and objectives, in developing 
funding recommendations. This includes a review of agency and 
departmental performance plans, audits, and investigations of 
the U.S. General Accounting Offices of Inspector General, and 
other performance-related information. The Committee's goal is 
to provide adequate, but not excessive, resources for the 
programs covered by this Act, consistent with funding 
allocations provided by the Congressional budget process.

          Compliance With Rule XIII, Cl. 3(e) (Ramseyer Rule)

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

TITLE 49, UNITED STATES CODE

           *       *       *       *       *       *       *


SUBTITLE V--RAIL PROGRAMS

           *       *       *       *       *       *       *


PART C--PASSENGER TRANSPORTATION

           *       *       *       *       *       *       *


CHAPTER 243--AMTRAK

           *       *       *       *       *       *       *


Sec. 24315. Reports and audits

  (a) * * *
  [(b) Amtrak General and Legislative Annual Report.--(1) Not 
later than February 15 of each year, Amtrak shall submit to the 
President and Congress a complete report of its operations, 
activities, and accomplishments, including a statement of 
revenues and expenditures for the prior fiscal year. The 
report--
          [(A) shall include a discussion and accounting of 
        Amtrak's success in meeting the goal of section 
        24902(b) of this title; and
          [(B) may include recommendations for legislation, 
        including the amount of financial assistance needed for 
        operations and capital improvements, the method of 
        computing the assistance, and the sources of the 
        assistance.
  [(2) Amtrak may submit reports to the President and Congress 
at other times Amtrak considers desirable.]
  (b) Amtrak Annual Report and Budget Request.--(1) Not later 
than February 15 of each year, Amtrak shall submit to the 
President and Congress a complete report of its operations, 
activities, and accomplishments, including a statement of 
revenues and expenditures for the prior fiscal year. The 
report--
          (A) shall include a discussion and accounting of 
        Amtrak's success in meeting the goal of section 
        24902(a) of this title; and
          (B) may include recommendations for other 
        legislation.
  (2) Not later than May 1 of each year, Amtrak's Board of 
Directors shall submit to the Secretary of Transportation 
Amtrak's budget request for the fiscal year commencing 17 
months later.
  (3) The Secretary shall annually submit to Congress a budget 
request for Amtrak as part of the President's annual budget 
request to Congress.
  (4) Amtrak shall not submit to Congress any request for 
funding unless such request has been approved by the Secretary 
of Transportation.

           *       *       *       *       *       *       *


SUBTITLE VII--AVIATION PROGRAMS

           *       *       *       *       *       *       *


PART A--AIR COMMERCE AND SAFETY

           *       *       *       *       *       *       *


SUBPART III--SAFETY

           *       *       *       *       *       *       *


CHAPTER 443--INSURANCE

           *       *       *       *       *       *       *


Sec. 44302. General authority

  (a) * * *

           *       *       *       *       *       *       *

  (f) Extension of Policies.--
          (1) In general.--The Secretary shall extend through 
        [August 31, 2004, and may extend through December 31, 
        2004,] December 31, 2005 the termination date of any 
        insurance policy that the Department of Transportation 
        issued to an air carrier under subsection (a) and that 
        is in effect on the date of enactment of this 
        subsection on no less favorable terms to the air 
        carrier than existed on June 19, 2002; except that the 
        Secretary shall amend the insurance policy, subject to 
        such terms and conditions as the Secretary may 
        prescribe, to add coverage for losses or injuries to 
        aircraft hulls, passengers, and crew at the limits 
        carried by air carriers for such losses and injuries as 
        of such date of enactment and at an additional premium 
        comparable to the premium charged for third-party 
        casualty coverage under such policy.

           *       *       *       *       *       *       *

  (g) Aircraft Manufacturers.--
          (1) In general.--The Secretary [may provide] shall 
        make available to an aircraft manufacturer insurance 
        for loss or damage resulting from operation of an 
        aircraft by an air carrier and involving war or 
        terrorism.

           *       *       *       *       *       *       *


Sec. 44303. Coverage

  (a) * * *
  (b) Air Carrier Liability for Third Party Claims Arising Out 
of Acts of Terrorism.--For acts of terrorism committed on or to 
an air carrier during the period beginning on September 22, 
2001, and ending on December 31, [2004] 2005, the Secretary may 
certify that the air carrier was a victim of an act of 
terrorism and in the Secretary's judgment, based on the 
Secretary's analysis and conclusions regarding the facts and 
circumstances of each case, shall not be responsible for losses 
suffered by third parties (as referred to in section 
205.5(b)(1) of title 14, Code of Federal Regulations) that 
exceed $100,000,000, in the aggregate, for all claims by such 
parties arising out of such act. If the Secretary so certifies, 
the air carrier shall not be liable for an amount that exceeds 
$100,000,000, in the aggregate, for all claims by such parties 
arising out of such act, and the Government shall be 
responsible for any liability above such amount. No punitive 
damages may be awarded against an air carrier (or the 
Government taking responsibility for an air carrier under this 
subsection) under a cause of action arising out of such act. 
The Secretary [may] shall extend the provisions of this 
subsection to an aircraft manufacturer (as defined in section 
44301) of the aircraft of the air carrier involved.

           *       *       *       *       *       *       *

                              ----------                              


                 CONSOLIDATED APPROPRIATIONS ACT, 2004

                   (Divsion F of Public Law 108-199)



           *       *       *       *       *       *       *
DIVISION F--DEPARTMENTS OF TRANSPORTATION AND TREASURY, AND INDEPENDENT 
                   AGENCIES APPROPRIATIONS ACT, 2004

AN ACT Making appropriations for the Departments of Transportation and 
Treasury, and independent agencies for the fiscal year ending September 
                   30, 2004, and for other purposes.

That the following sums are appropriated, out of any money in 
the Treasury not otherwise appropriated, for the Departments of 
Transportation and Treasury and independent agencies for the 
fiscal year ending September 30, 2004, and for other purposes, 
namely:

                                TITLE I

DEPARTMENT OF TRANSPORTATION

           *       *       *       *       *       *       *


  Sec. 115. Notwithstanding any other provision of law, from 
the available unobligated balances under the programs for which 
funds are authorized under sections 1101(a)(1), 1101(a)(2), 
1101(a)(3), 1101(a)(4), and 1101(a)(5) of Public Law 105-178, 
as amended, of each State for which a project or projects in 
such State identified under this section in the statement of 
managers accompanying this Act shall be made available for 
necessary expenses to carry out such project: Provided, That 
the amount identified for each such project shall be made 
available from the State's unobligated balance in any of the 
five specified programs for which the project would be 
eligible, such selection to be at the option of the State: 
Provided further, That if a project is not otherwise eligible 
for funding under one of the five programs, then such project 
shall be deemed eligible and shall be funded from the 
unobligated balance of funds made available for the program for 
which funds are authorized under section 1101(a)(4) of Public 
Law 105-178, as amended, but not including funds setaside 
pursuant to section 133(d) of title 23, United States Code: 
Provided further, That funds made available under this section 
may, at the request of a State, be transferred by the Secretary 
to another Federal agency to carry out a project funded under 
this section, such funds to be then administered by the 
procedures of the Federal agency to which such funds may be 
transferred: Provided further, That all funds made available 
for obligation under this section shall be available in the 
same manner as though such funds were apportioned under chapter 
1 of title 23, United States Code, except that the Federal 
share payable on account of any program, project, or activity 
carried out with funds made available under this heading shall 
be 100 percent and such funds shall remain available for 
obligation until expended: Provided further, That all funds 
made available in this section shall be subject to any 
limitation on obligations for Federal-aid highways and highway 
safety construction programs set forth in this Act or any other 
Act: Provided further, That notwithstanding any other provision 
of law and the preceding clauses of this provision, the 
Secretary of Transportation may use amounts made available by 
this section to make grants for any surface transportation 
project otherwise eligible for funding under title 23 or title 
49, United States Code.

           *       *       *       *       *       *       *

                              ----------                              


   SECTION 1602 OF THE TRANSPORTATION EQUITY ACT FOR THE 21ST CENTURY

SEC. 1602. PROJECT AUTHORIZATIONS.

  Subject to section 117 of title 23, United States Code, the 
amount listed for each high priority project in the following 
table shall be available (from amounts made available by 
section 1101(a)(13) of the Transportation Equity Act for the 
21st Century) for fiscal years 1998 through 2003 to carry out 
each such project:
      

------------------------------------------------------------------------
                                                                (Dollars
 No.                State                Project description       in
                                                               millions)
------------------------------------------------------------------------
   1. Georgia                         I-75 advanced                1.7
                                       transportation
                                       management system in
                                       Cobb County.........
         *         *         *         *         *         *         *
  89. Massachusetts                   [Construct I-495/           3.15
                                       Route 2 interchange
                                       east of existing
                                       interchange to
                                       provide access to
                                       commuter rail
                                       station, Littleton]
                                       Ayer commuter rail
                                       station
                                       improvements, land
                                       acquisition and
                                       parking improvements
         *         *         *         *         *         *         *
------------------------------------------------------------------------

                              ----------                              


      SECTION 403 OF THE GOVERNMENT MANAGEMENT REFORM ACT OF 1994

                          (Public Law 103-356)

SEC. 403. FRANCHISE FUND PILOT PROGRAMS.

  (a) * * *

           *       *       *       *       *       *       *

  (f) Termination.--The provisions of this section shall expire 
on October 1, [2004] 2005.
                              ----------                              


  SECTION 122 OF THE ACT OF THE DEPARTMENTS OF COMMERCE, JUSTICE, AND 
  STATE, THE JUDICIARY, AND RELATED AGENCIES APPROPRIATIONS ACT, 1998

                          (Public law 105-119)

  Sec. 122. (a) * * *

           *       *       *       *       *       *       *

  (g)(1) Notwithstanding any other provision of law and subject 
to paragraph (2), the Secretary of the Treasury is authorized 
to establish, for a period of [6 years] 7 years from date of 
enactment of this provision, a personnel management 
demonstration project providing for the compensation and 
performance management of not more than a combined total of 950 
employees who fill critical scientific, technical, engineering, 
intelligence analyst, language translator, and medical 
positions in the Bureau of Alcohol, Tobacco and Firearms.

           *       *       *       *       *       *       *


              TREASURY DEPARTMENT APPROPRIATIONS ACT, 1997

TITLE I--DEPARTMENT OF THE TREASURY

           *       *       *       *       *       *       *


                        Treasury Franchise Fund

  There is hereby established in the Treasury a franchise fund 
until [October 1, 2004] October 1, 2005 to be available for 
expenses and equipment necessary for the maintenance and 
operation of such financial and administrative support services 
as the Secretary determines may be performed more 
advantageously as central services: Provided, That any 
inventories, equipment, and other assets pertaining to the 
services to be provided by such fund, either on hand or on 
order, less the related liabilities or unpaid obligations, and 
any appropriations made for the purpose of providing capital, 
shall be used to capitalize such fund: Provided further, That 
such fund shall be reimbursed or credited with the payments, 
including advanced payments, from applicable appropriations and 
funds available to the Department and other Federal agencies 
for which such administrative and financial services are 
performed, at rates which will recover all expenses of 
operation, including accrued leave, depreciation of fund plant 
and equipment, amortization of Automatic Data Processing (ADP) 
software and systems, and an amount necessary to maintain a 
reasonable operating reserve, as determined by the Secretary: 
Provided further, That such fund shall provide services on a 
competitive basis: Provided further, That an amount not to 
exceed 4 percent of the total annual income to such fund may be 
retained in the fund for fiscal year 1997 and each fiscal year 
thereafter, to remain available until expended, to be used for 
the acquisition of capital equipment and for the improvement 
and implementation of Treasury financial management, ADP, and 
other support systems: Provided further, That no later than 30 
days after the end of each fiscal year, amounts in excess of 
this reserve limitation shall be deposited as miscellaneous 
receipts in the Treasury.

           *       *       *       *       *       *       *

                              ----------                              


TITLE 31, UNITED STATES CODE

           *       *       *       *       *       *       *


SUBTITLE III--FINANCIAL MANAGEMENT

           *       *       *       *       *       *       *


CHAPTER 33--DEPOSITING, KEEPING, AND PAYING MONEY

           *       *       *       *       *       *       *


SUBCHAPTER II--PAYMENTS

           *       *       *       *       *       *       *


Sec. 3333. Relief for payments made without negligence

  [(a)(1) The Secretary of the Treasury is not liable for a 
payment made by the Secretary or depositary in due course and 
without negligence, of a--
          [(A) check, draft, or warrant drawn on the Treasury 
        or the depositary; and
          [(B) debt obligation guaranteed or assumed by the 
        United States Government.]
  (a)(1) The Secretary of the Treasury is not liable for a 
payment made by the Secretary or depositary in due course and 
without negligence, of--
          (A) a check, draft, or warrant drawn on the Treasury 
        or the depositary;
          (B) an electronic payment issued by the Treasury or 
        the depositary; and
          (C) a debt obligation guaranteed or assumed by the 
        United States Government.

           *       *       *       *       *       *       *

    (3) The amount of the relief shall be charged to the Check 
Forgery Insurance Fund (31 U.S.C. 3343). A recovery or 
repayment of a loss for which replacement is made out of the 
fund shall be credited to the fund and is available for the 
purposes for which the fund was established.

           *       *       *       *       *       *       *


CHAPTER 37--CLAIMS

           *       *       *       *       *       *       *


SUBCHAPTER II--CLAIMS OF THE UNITED STATES GOVERNMENT

           *       *       *       *       *       *       *


Sec. 3716. Administrative offset

  (a) * * *

           *       *       *       *       *       *       *

  [(e) This section does not apply--
          [(1) to a claim under this subchapter that has been 
        outstanding for more than 10 years; or
          [(2) when a statute explicitly prohibits using 
        administrative offset or setoff to collect the claim or 
        type of claim involved.]
  (e)(1) Notwithstanding any other provision of law (including 
42 U.S.C. 407 and 1383(d)(1), 30 U.S.C. 923(b), and 45 U.S.C. 
231(m), regulation, or administrative limitation, no limitation 
shall terminate the period within which an offset may be 
initiated or taken pursuant to this section.
  (2) This section does not apply when a statute explicitly 
prohibits using administrative offset or setoff to collect the 
claim or type of claim involved.

           *       *       *       *       *       *       *

                              ----------                              


              SECTION 572 OF TITLE 40, UNITED STATES CODE

Sec. 572. Real property

  (a) In General.--
          (1) * * *
          (2) Payment of expenses from the fund.--
                  (A) Authority.--From the fund described in 
                paragraph (1), the Administrator may obligate 
                an amount to pay the following direct expenses 
                incurred for the use of excess property and the 
                disposal of surplus property under this 
                subtitle:
                          (i) * * *
                          (ii) Costs of environmental and 
                        historic preservation services, highest 
                        and best use of property studies, 
                        utilization of property studies, deed 
                        compliance inspection, and the expenses 
                        incurred in a relocation.

           *       *       *       *       *       *       *

                              ----------                              


                 SECTION 453 OF THE SOCIAL SECURITY ACT

                     FEDERAL PARENT LOCATOR SERVICE

  Sec. 453. (a) * * *

           *       *       *       *       *       *       *

  (j) Information Comparisons and Other Disclosures.--
          (1) * * *

           *       *       *       *       *       *       *

          (7) Information comparisons and disclosure to assist 
        in federal debt collection.--
                  (A) Furnishing of information by the 
                secretary of the treasury.--The Secretary of 
                the Treasury shall furnish to the Secretary, on 
                such periodic basis as determined by the 
                Secretary of the Treasury in consultation with 
                the Secretary, information in the custody of 
                the Secretary of the Treasury for comparison 
                with information in the National Directory of 
                New Hires, in order to obtain information in 
                such Directory with respect to persons--
                          (i) who owe delinquent nontax debt to 
                        the United States; and
                          (ii) whose debt has been referred to 
                        the Secretary of the Treasury in 
                        accordance with 31 U.S.C. 3711(g).
                  (B) Requirement to seek minimum 
                information.--The Secretary of the Treasury 
                shall seek information pursuant to this section 
                only to the extent necessary to improve 
                collection of the debt described in 
                subparagraph (A).
                  (C) Duties of the secretary.--
                          (i) Information disclosure.--The 
                        Secretary, in cooperation with the 
                        Secretary of the Treasury, shall 
                        compare information in the National 
                        Directory of New Hires with information 
                        provided by the Secretary of the 
                        Treasury with respect to persons 
                        described in subparagraph (A) and shall 
                        disclose information in such Directory 
                        regarding such persons to the Secretary 
                        of the Treasury in accordance with this 
                        paragraph, for the purposes specified 
                        in this paragraph. Such comparison of 
                        information shall not be considered a 
                        matching program as defined in 5 U.S.C. 
                        552a.
                          (ii) Condition on disclosure.--The 
                        Secretary shall make disclosures in 
                        accordance with clause (i) only to the 
                        extent that the Secretary determines 
                        that such disclosures do not interfere 
                        with the effective operation of the 
                        program under this part. Support 
                        collection under section 466(b) of this 
                        title shall be given priority over 
                        collection of any delinquent federal 
                        nontax debt against the same income.
                  (D) Use of information by the secretary of 
                the treasury.--The Secretary of the Treasury 
                may use information provided under this 
                paragraph only for purposes of collecting the 
                debt described in subparagraph (A).
                  (E) Disclosure of information by the 
                secretary of the treasury.--
                          (i) Purpose of disclosure.--The 
                        Secretary of the Treasury may make a 
                        disclosure under this subparagraph only 
                        for purposes of collecting the debt 
                        described in subparagraph (A).
                          (ii) Disclosures permitted.--Subject 
                        to clauses (iii) and (iv), the 
                        Secretary of the Treasury may disclose 
                        information resulting from a data match 
                        pursuant to this paragraph only to the 
                        Attorney General in connection with 
                        collecting the debt described in 
                        subparagraph (A).
                          (iii) Conditions on disclosure.--
                        Disclosures under this subparagraph 
                        shall be--
                                  (I) made in accordance with 
                                data security and control 
                                policies established by the 
                                Secretary of the Treasury and 
                                approved by the Secretary;
                                  (II) subject to audit in a 
                                manner satisfactory to the 
                                Secretary; and
                                  (III) subject to the 
                                sanctions under subsection 
                                (l)(2).
                          (iv) Additional disclosures.--
                                  (I) Determination by 
                                secretaries.--The Secretary of 
                                the Treasury and the Secretary 
                                shall determine whether to 
                                permit disclosure of 
                                information under this 
                                paragraph to persons or 
                                entities described in subclause 
                                (II), based on an evaluation 
                                made by the Secretary of the 
                                Treasury (in consultation with 
                                and approved by the Secretary), 
                                of the costs and benefits of 
                                such disclosures and the 
                                adequacy of measures used to 
                                safeguard the security and 
                                confidentiality of information 
                                so disclosed.
                                  (II) Permitted persons or 
                                entities.--If the Secretary of 
                                the Treasury and the Secretary 
                                determine pursuant to subclause 
                                (I) that disclosures to 
                                additional persons or entities 
                                shall be permitted, information 
                                under this paragraph may be 
                                disclosed by the Secretary of 
                                the Treasury, in connection 
                                with collecting the debt 
                                described in subparagraph (A), 
                                to a contractor or agent of 
                                either Secretary and to the 
                                Federal agency that referred 
                                such debt to the Secretary of 
                                the Treasury for collection, 
                                subject to the conditions in 
                                clause (iii) and such 
                                additional conditions as agreed 
                                to by the Secretaries.
                          (v) Restrictions on redisclosure.--A 
                        person or entity to which information 
                        is disclosed under this subparagraph 
                        may use or disclose such information 
                        only as needed for collecting the debt 
                        described in subparagraph (A), subject 
                        to the conditions in clause (iii) and 
                        such additional conditions as agreed to 
                        by the Secretaries.
                  (F) Reimbursement of hhs costs.--The 
                Secretary of the Treasury shall reimburse the 
                Secretary, in accordance with subsection 
                (k)(3), for the costs incurred by the Secretary 
                in furnishing the information requested under 
                this paragraph. Any such costs paid by the 
                Secretary of the Treasury shall be considered 
                costs of implementing 31 U.S.C. 3711(g) in 
                accordance with 31 U.S.C. 3711(g)(6) and may be 
                paid from the account established pursuant to 
                31 U.S.C. 3711(g)(7).

           *       *       *       *       *       *       *

                              ----------                              


INTERNAL REVENUE CODE OF 1986

           *       *       *       *       *       *       *


Subtitle F--Procedure and Administration

           *       *       *       *       *       *       *


CHAPTER 61--INFORMATION AND RETURNS

           *       *       *       *       *       *       *


Subchapter B--Miscellaneous Provisions

           *       *       *       *       *       *       *


SEC. 6103. CONFIDENTIALITY AND DISCLOSURE OF RETURNS AND RETURN 
                    INFORMATION.

  (a) * * *

           *       *       *       *       *       *       *

  (l) Disclosure of Returns and Return Information for Purposes 
Other than Tax Administration.--
          (1) * * *

           *       *       *       *       *       *       *

          (10) Disclosure of certain information to agencies 
        requesting a reduction under subsection [(c), (d), or 
        (e)] (c), (d), (e) or (f) of section 6402.--
                  (A) Return information from internal revenue 
                service.--The Secretary may, upon receiving a 
                written request, disclose to officers and 
                employees of any agency seeking a reduction 
                under subsection [(c), (d), or (e)] (c), (d), 
                (e) or (f) of section 6402 and to officers and 
                employees of the Department of Labor in 
                connection with a reduction under subsection 
                (f) of section 6402 and to officers and 
                employees of the Department of the Treasury in 
                connection with such reduction--
                          (i) * * *

           *       *       *       *       *       *       *

                  (B) Restriction on use of disclosed 
                information.--Any officers and employees of an 
                agency receiving return information under 
                subparagraph (A) shall use such information 
                only for the purposes of, and to the extent 
                necessary in, establishing appropriate agency 
                records, locating any person with respect to 
                whom a reduction under subsection [(c), (d), or 
                (e)] (c), (d), (e) or (f) of section 6402 is 
                sought for purposes of collecting the debt with 
                respect to which the reduction is sought, or in 
                the defense of any litigation or administrative 
                procedure ensuing from a reduction made under 
                subsection [(c), (d), or (e)] (c), (d), (e) or 
                (f) of section 6402. Any return information 
                disclosed with respect to section 6402(e) shall 
                only be disclosed to officers and employees of 
                the State agency requesting such information.

           *       *       *       *       *       *       *


CHAPTER 65--ABATEMENTS, CREDITS, AND REFUNDS

           *       *       *       *       *       *       *


Subchapter A--Procedure in General

           *       *       *       *       *       *       *


SEC. 6402. AUTHORITY TO MAKE CREDITS OR REFUNDS

  (a) General Rule.--In the case of any overpayment, the 
Secretary, within the applicable period of limitations, may 
credit the amount of such overpayment, including any interest 
allowed thereon, against any liability in respect of an 
internal revenue tax on the part of the person who made the 
overpayment and shall, subject to subsections [(c), (d), and 
(e),] (c), (d), (e) and (f), refund any balance to such person.

           *       *       *       *       *       *       *

  (d) Collection of Debts Owed to Federal Agencies.--
          (1) * * *
          (2) Priorities for offset.--Any overpayment by a 
        person shall be reduced pursuant to this subsection 
        after such overpayment is reduced pursuant to 
        subsection (c) with respect to past-due support 
        collected pursuant to an assignment under section 
        402(a)(26) of the Social Security Act [and before such 
        overpayment is reduced pursuant to subsection (e)] and 
        before such overpayment is reduced pursuant to 
        subsections (e) and (f) and before such overpayment is 
        credited to the future liability for tax of such person 
        pursuant to subsection (b). If the Secretary receives 
        notice from a Federal agency or agencies of more than 
        one debt subject to paragraph (1) that is owed by a 
        person to such agency or agencies, any overpayment by 
        such person shall be applied against such debts in the 
        order in which such debts accrued.

           *       *       *       *       *       *       *

  (f) Collection of Past-Due, Legally Enforceable State 
Unemployment Compensation Debts.--
          (1) In general.--Upon receiving notice from any State 
        that a person owes a past-due, legally enforceable 
        State unemployment compensation debt to such State, the 
        Secretary shall, under such conditions as may be 
        prescribed by the Secretary--
                  (A) reduce the amount of any overpayment 
                payable to such person by the amount of such 
                unemployment compensation debt;
                  (B) pay the amount by which such overpayment 
                is reduced under subparagraph (A) to such State 
                and notify such State of such person's name, 
                taxpayer identification number, address, and 
                the amount collected; and
                  (C) notify the person making such overpayment 
                that the overpayment has been reduced by an 
                amount necessary to satisfy a past-due, legally 
                enforceable State unemployment compensation 
                debt. If an offset is made pursuant to a joint 
                return, the notice under subparagraph (B) shall 
                include the names, taxpayer identification 
                numbers, and addresses of each person filing 
                such return.
          (2) Priorities for offset.--Any overpayment by a 
        person shall be reduced pursuant to this subsection--
                  (A) after such overpayment is reduced 
                pursuant to--
                          (i) subsection (a) with respect to 
                        any liability for any internal revenue 
                        tax on the part of the person who made 
                        the overpayment;
                          (ii) subsection (c) with respect to 
                        past-due support;
                          (iii) subsection (d) with respect to 
                        any past-due, legally enforceable debt 
                        owed to a Federal agency; and
                  (B) before such overpayment is credited to 
                the future liability for any Federal internal 
                revenue tax of such person pursuant to 
                subsection (b). If the Secretary receives 
                notice from a State or States of more than one 
                debt subject to paragraph (1) and/or subsection 
                (e) that is owed by a person to such State or 
                States, any overpayment by such person shall be 
                applied against such debts in the order in 
                which such debts accrued.
          (3) Notice; consideration of evidence.--No State may 
        take action under this subsection until such State--
                  (A) notifies the person owing the past-due 
                legally enforceable State unemployment 
                compensation debt that the State proposes to 
                take action pursuant to this section;
                  (B) gives such person at least 60 days to 
                present evidence that all or part of such 
                liability is not past-due or not legally 
                enforceable;
                  (C) considers any evidence presented by such 
                person and determines that an amount of such 
                debt is past-due and legally enforceable; and
                  (D) satisfies such other conditions as the 
                Secretary may prescribe to ensure that the 
                determination made under subparagraph (C) is 
                valid and that the State has made reasonable 
                efforts to obtain payment of such unemployment 
                compensation debt.
          (4) Past-due, legally enforceable state unemployment 
        compensation debt.--For purposes of this subsection, 
        the term ``past-due, legally enforceable State 
        unemployment compensation debt'' means overpayments of 
        unemployment compensation assessed under the law of a 
        State certified by the Secretary of Labor pursuant to 
        section 3304 of the Internal Revenue Code, which have 
        become final under State law and remain uncollected.
          (5) Regulations.--The Secretary shall issue 
        regulations prescribing the time and manner in which 
        States must submit notices of past-due, legally 
        enforceable State unemployment compensation debt and 
        the necessary information that must be contained in or 
        accompany such notices. The regulations shall specify 
        the minimum amount of debt to which the reduction 
        procedure established by paragraph (1) may be applied. 
        The regulations may require States to pay a fee to the 
        Secretary, which may be deducted from amounts 
        collected, to reimburse the Secretary for the cost of 
        applying such procedure. Any fee paid to the Secretary 
        pursuant to the preceding sentence shall be used to 
        reimburse appropriations which bore all or part of the 
        cost of applying such procedure. The regulations may 
        include a requirement that States submit notices of 
        past-due, legally enforceable State unemployment 
        compensation debt to the Secretary via the Secretary of 
        Labor in accordance with procedures established by the 
        Secretary of Labor. Such procedures may require States 
        to pay a fee to the Secretary of Labor to reimburse the 
        Secretary of Labor for the costs of applying this 
        subsection. Any such fee shall be established in 
        consultation with the Secretary of the Treasury. Any 
        fee paid to the Secretary of Labor may be deducted from 
        amounts collected and shall be used to reimburse the 
        appropriation account which bore all or part of the 
        cost of applying this subsection.
          (6) Erroneous payment to state.--Any State receiving 
        notice from the Secretary that an erroneous payment has 
        been made to such State under paragraph (1) shall pay 
        promptly to the Secretary, in accordance with such 
        regulations as the Secretary may prescribe, an amount 
        equal to the amount of such erroneous payment (without 
        regard to whether any other amounts payable to such 
        State under such paragraph have been paid to such 
        State).
  [(f)] (g) Review of Reductions.--No court of the United 
States shall have jurisdiction to hear any action, whether 
legal or equitable, brought to restrain or review a reduction 
authorized by subsection [(c), (d) or (e)] (c), (d), (e) or 
(f). No such reduction shall be subject to review by the 
Secretary in an administrative proceeding. No action brought 
against the United States to recover the amount of any such 
reduction shall be considered to be a suit for refund of tax. 
This subsection does not preclude any legal, equitable, or 
administrative action against the Federal agency or State to 
which the amount of such reduction was paid or any such action 
against the Commissioner of Social Security which is otherwise 
available with respect to recoveries of overpayments of 
benefits under section 204 of the Social Security Act.
  [(g)] (h) Federal Agency.--For purposes of this section, the 
term ``Federal agency'' means a department, agency, or 
instrumentality of the United States, and includes a Government 
corporation (as such term is defined in section 103 of title 5, 
United States Code).
  [(h)] (i) Treatment of Payments To States.--The Secretary may 
provide that, for purposes of determining interest, the payment 
of any amount withheld under subsection [(c) or (e)] (c), (e) 
or (f) to a State shall be treated as a payment to the person 
or persons making the overpayment.
  [(i)] (j) Cross Reference.--
          For procedures relating to agency notification of the 
        Secretary, see section 3721 of title 31, United States Code.
  [(j)] (k) Refunds to Certain Fiduciaries of Insolvent Members 
of Affiliated Groups.--Notwithstanding any other provision of 
law, in the case of an insolvent corporation which is a member 
of an affiliated group of corporations filing a consolidated 
return for any taxable year and which is subject to a statutory 
or court-appointed fiduciary, the Secretary may by regulation 
provide that any refund for such taxable year may be paid on 
behalf of such insolvent corporation to such fiduciary to the 
extent that the Secretary determines that the refund is 
attributable to losses or credits of such insolvent 
corporation.
  [(k)] (l) Explanation of Reason for Refund Disallowance.--In 
the case of a disallowance of a claim for refund, the Secretary 
shall provide the taxpayer with an explanation for such 
disallowance.

           *       *       *       *       *       *       *


               Changes in the Application of Existing Law

    Pursuant to clause 3(f)(1)(A) of rule XIII of the Rules of 
the House of Representatives, the following statements are 
submitted describing the effect of provisions proposed in the 
accompanying bill which may be considered, under certain 
circumstances, to change the application of existing law, 
either directly or indirectly. 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 provides, in some instances, for funding 
of agencies and activities where legislation has not yet been 
finalized. In addition, the bill carries language, in some 
instances, permitting activities not authorized by law, or 
exempting agencies from certain provisions of law, but which 
has been carried in appropriations acts for many years.
    The bill includes limitations on official entertainment, 
reception and representation expenses for the Secretary of 
Transportation, the Secretary of the Treasury and the National 
Transportation Safety Board. Similar provisions have appeared 
in many previous appropriations Acts. 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. Language is 
included in several instances permitting certain funds to be 
credited to the appropriations recommended.
    In Title V of the bill, in connection with the General 
Services Administration, certain limitations on availability of 
revenue in the federal buildings fund and certain legislative 
provisions have been carried forward from last year.
    The bill continues a number of general provisions applying 
to agencies covered by the bill as well as certain provisions 
applying government-wide. These provisions have been carried in 
the prior year appropriations bill, and some have been carried 
for many years. Additionally, the Committee includes a number 
of new general provisions.

                 TITLE I--DEPARTMENT OF TRANSPORTATION

    Language is included under Office of the Secretary, 
``Salaries and expenses'' specifying certain amounts for 
individual offices of the Office of the Secretary and 
specifying transfer authority among offices.
    Language is included under Office of the Secretary, 
``Salaries and expenses'' which would allow crediting the 
account with up to $2,500,000 in user fees.
    Language is included under the Office of the Secretary, 
``Salaries and expenses'' limiting the use of funds available 
for the position of Assistant Secretary for Public Affairs.
    Language is included that limits operating costs and 
capital outlays of the Working Capital Fund for 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 Committee.
    Language is included under Office of the Secretary, 
``Minority business outreach'' specifying that funds may be 
used for business opportunities related to any mode of 
transportation.
    Language is included under the Federal Aviation 
Administration, ``Operations'' limiting funds for certain 
aviation program activities.
    Language is included under the Federal Aviation 
Administration, ``Operations'' that prohibits funds to plan, 
finalize, or implement any regulation that would promulgate new 
aviation user fees not specifically authorized by law after the 
date of enactment of this Act.
    Language is included under the Federal Aviation 
Administration, ``Operations'' that credits funds received from 
States, counties, municipalities, foreign authorities, other 
public authorities, and private sources for expenses incurred 
in the provision of agency services.
    Language is included under the Federal Aviation 
Administration, ``Operations'' that provides $7,000,000 for the 
contract tower cost sharing program and $4,000,000 for 
additional air traffic control supervisors.
    Language is included under the Federal Aviation 
Administration, ``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 Federal Aviation 
Administration, ``Operations'' that prohibits the use of funds 
for Sunday premium pay unless an employee actually performed 
work during the time corresponding to the premium pay.
    Language is included under the Federal Aviation 
Administration, ``Operations'' that prohibits funds from being 
used to operate a manned auxiliary flight service station in 
the contiguous United States.
    Language is included under the Federal Aviation 
Administration, ``Operations'' that prohibits funds for 
conducting and coordinating activities on aeronautical charting 
and cartography through the Transportation Administrative 
Service Center.
    Language is included under Federal Aviation Administration, 
``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 Federal Aviation Administration, 
``Facilities and equipment'' that requires the Secretary of 
Transportation to transmit a comprehensive capital investment 
plan for the Federal Aviation Administration.
    Language is included under Federal Aviation Administration, 
``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 under Federal Aviation Administration, 
``Grants-in-aid for airports'' that limits funds available for 
the planning or execution of programs with obligations in 
excess of $3,993,000,000.
    Language is included under Federal Aviation Administration, 
``Grants-in-aid for airports'' that provides not more than 
$69,302,000 for administration.
    Language is included under the Federal Highway 
Administration, ``Limitation on Administrative Expenses'' that 
provides a limitation on administrative expenses of the FHWA.
    Language is included under the Federal Highway 
Administration, ``Federal-aid Highways'' that provides a 
limitation on obligations for the Federal-aid highways program 
and a limitation on research programs.
    Language is included under the Federal Highway 
Administration, ``Liquidation of Contract Authorization'' that 
provides liquidating cash.
    Section 121 distributes an obligation authority among 
Federal-aid highway programs.
    Section 122 provides that funds received by the Bureau of 
Transportation Statistics may be credited to the Federal aid 
highways account.
    Section 123 amends section 1602 of the Transportation 
Equity Act for the 21st Century to allow changes to a project 
in Massachusetts.
    Section 124 amends P.L. 102-143 to allow changes to 
projects in New Jersey.
    Section 125 amends Public Law 108-199.
    Section 126 prohibits funds to require a state or local 
government to post a traffic control device or variable message 
sign, or any other type of traffic signs in a language other 
than English, except in certain specified situations.
    Section 127 provides funding for environmental streamlining 
activities from the 104(a)(1)(A) ``takedown''.
    Language is included under the Federal Highway 
Administration, ``Federal-aid Highways'' that rescinds contract 
authority.
    Language is included under the Federal Motor Carrier Safety 
Administration, ``Motor Carrier Safety'' that provides funding 
for motor carrier safety.
    Language is included under the Federal Motor Carrier Safety 
Administration, ``National Motor Carrier Safety Program'' that 
provides a limitation on obligations and liquidation of 
contract authorization.
    Section 141 subjects funds appropriated in this Act to the 
terms and conditions of section 350 of Public Law 107-87, 
including that the Secretary submit a report on Mexico-
domiciled motor carriers.
    Section 142 prohibits the use of funds in this Act to 
implement or enforce any provision of the final rule issued on 
April 16, 2003 (docket no. FMCSA-9702350) as it applies to 
operators of utility service vehicles.
    Section 143 prohibits the use of funds in this Act to 
implement hour of service regulations as it applies to 
operators of utility service vehicles. It also precludes states 
from using Federal grant funds for this purpose.
    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 the National Highway Traffic 
Safety Administration, ``Highway traffic safety grants'' 
prohibiting the use of funds for construction, rehabilitation 
or remodeling costs or for office furniture for state, local, 
or private buildings.
    Language is included under the National Highway Traffic 
Safety Administration, ``Highway traffic safety grants'' 
limiting the amount of funds available for technical assistance 
to the states under section 410.
    Section 140 allows states to use funds provided under 
section 402 of title 23, U.S.C., to produce and place highway 
safety public service messages.
    Language is included under Federal Railroad Administration, 
``Railroad rehabilitation and improvement program'' 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, 
``Railroad rehabilitation and improvement program'' that 
prohibits new direct loans or loan guarantee commitments using 
federal funds for credit risk premium under section 502 of the 
Railroad Revitalization and Regulatory Reform Act.
    Language is included under Federal Railroad Administration, 
``Grants to the National Railroad Passenger Corporation'' that 
provides quarterly apportionment for funding.
    Language is included under Federal Transit Administration, 
``Administrative expenses'' that reimburses $3,000,000 to the 
Department of Transportation's Inspector General for costs 
associated with the audit and review of new fixed guideway 
systems.
    Language is included under Federal Transit Administration, 
``Administrative expenses'' that allows funds to remain 
available until expended for the National transit database.
    Language is included under Federal Transit Administration, 
``Administrative expenses'' that the Secretary of 
Transportation will transmit to Congress the annual report on 
new starts.
    Language is included under the Federal Transit 
Administration, ``Administrative expenses'' reducing funds for 
each day that the annual report on new starts is not submitted 
to Congress.
    Section 171 exempts previously made transit obligations 
from limitations on obligations.
    Section 172 allows funds for discretionary grants of the 
Federal Transit Administration for specific projects, except 
for fixed guideway modernization projects, not obligated by 
September 30, 2005, and other recoveries to be used for other 
projects under 49 U.S.C. 5309.
    Section 173 allows transit funds appropriated before 
October 1, 2003, that remain available for expenditure to be 
transferred.
    Language is included that provides funding for Saint 
Lawrence Seaway Development Corporation, and specifies an 
amount for the concrete replacement project at Eisenhower and 
Snell Locks.
    Section 191 prohibits obligations incurred during the 
current year from construction funds in excess of the 
appropriations and limitation contained in this Act or in any 
prior appropriation Act.
    Section 192 allows the Maritime Administration to furnish 
utilities and services and make repairs to any lease, contract, 
or occupancy involving government property under the control of 
MARAD and rental payments shall be covered into the Treasury as 
miscellaneous receipts.
    Section 193 prohibits funding for the national defense tank 
vessel construction assistance program authorized in P.L. 108-
136 if any component of the vessel is constructed in a foreign 
shipyard.
    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, ``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'' that provides the Inspector General 
with all necessary authority to investigate allegations of 
fraud by any person or entity that is subject to regulation by 
the Department of Transportation. Language is also included 
under Office of inspector General, ``Salaries and expenses'' 
that authorizes the office of Inspector General to investigate 
unfair or deceptive practices and unfair methods of competition 
by domestic and foreign air carriers and ticket agents.
    Language is included under Surface Transportation Board, 
``Salaries and expenses'' allowing the collection of $1,250,000 
in fees established by the Chairman of the Surface 
Transportation Board; and providing that the sum appropriated 
from the general fund shall be reduced on a dollar-for-dollar 
basis as such fees are received.
    Section 185. The Committee continues the provision allowing 
the Department of Transportation to use funds for aircraft; 
motor vehicles; liability insurance; uniforms; or allowances, 
as authorized by law.
    Section 186. The Committee continues the provision limiting 
appropriations for services authorized by 5 U.S.C. 3109 to the 
rate for an Executive Level IV.
    Section 187. The Committee continues the provision 
prohibiting funds in this Act for salaries and expenses of more 
than 106 political and Presidential appointees in the 
Department of Transportation, and prohibits political and 
Presidential personnel assigned on temporary detail outside the 
Department of Transportation.
    Section 188. The Committee continues the provision 
prohibiting funds for the implementation of section 404 of 
title 23, U.S.C.
    Section 189. The Committee continues the provision 
prohibiting recipients of funds made available in this Act from 
releasing personal information, including social security 
number, medical or disability information, and photographs from 
a driver's license or motor vehicle record, without express 
consent of the person to whom such information pertains; and 
prohibits the withholding of funds provided in this Act for any 
grantee if a state is in noncompliance with this provision.
    Section 190. The Committee continues the provision allowing 
funds received by the Federal Highway Administration, Federal 
Transit Administration, and the Federal Railroad Administration 
from states, counties, municipalities, other public 
authorities, and private sources to be used for expenses 
incurred for training may be credited to each agency's 
respective accounts.
    Section 191. The Committee continues the provision 
authorizing the Secretary of Transportation to allow issuers of 
any preferred stock to redeem or repurchase preferred stock 
sold to the Department of Transportation.
    Section 192. The Committee continues the provision 
prohibiting funds in Title I of this Act for issuance of any 
grant unless the Secretary of Transportation notifies the House 
and Senate Committees on Appropriations not less than three 
full business days before any discretionary grant award, letter 
of intent, or full funding grant agreement totaling $1,000,000 
or more is announced by the department or its modal 
administrations.
    Section 193. The Committee continues a provision for the 
Department of Transportation allowing funds received from 
rebates, refunds, and similar sources to be credited to 
appropriations.
    Section 194. The Committee continues a provision allowing 
amounts from improper payments to a third party contractor that 
are lawfully recovered by the Department of Transportation to 
be available to cover expenses incurred in recovery of such 
payments.
    Section 195. The Committee continues a provision allowing 
the Secretary of Transportation to transfer unexpended sums 
from ' Office of the secretary, salaries and expenses'' to 
``Minority business outreach''.
    Section 196. The Committee continues the provision 
prohibiting funds for the Office of the Secretary of 
Transportation to approve assessments or reimbursable 
agreements pertaining to funds appropriated to the modal 
administrations in this Act, unless such assessments or 
agreements have completed the normal reprogramming process for 
Congressional notification.

                  TITLE II--DEPARTMENT OF THE TREASURY

    Language has been included for Departmental Offices, 
Salaries and Expenses, that provides funds for operation and 
maintenance of the Treasury Building and Annex; hire of 
passenger motor vehicles; maintenance, repairs, and 
improvements of, and purchase of commercial insurance policies 
for real properties leased or owned overseas; official 
reception and representation expenses; unforeseen emergencies 
of a confidential nature; grants to state and local law 
enforcement groups to help fight money laundering; and 
Treasury-wide financial audits and the transfer of these funds.
    Language has been included for the Departmentwide Systems 
and Capital Investments Program that provides funds for the 
development and acquisition of automated data processing 
equipment, software, and services; and providing transfer 
authority.
    Language has been included for the Office of Inspector 
General that provides funds to carry out the provisions of the 
Inspector General Act of 1978, the hire of vehicles, official 
travel expenses, and unforeseen emergencies.
    Language has been included for the Treasury Inspector 
General for Tax Administration that provides for the purchase 
and hire of motor vehicles, services by 5 U.S.C. 3109, travel 
expenses, and unforeseen emergencies.
    Language has been included for the Financial Crime 
Enforcement Network that provides funds for hire of vehicles; 
the travel of non-federal personnel attending conferences or 
meetings involving financial law enforcement, intelligence, and 
regulation; the purchase of personal services contracts; and 
assistance to Federal law enforcement agencies with or without 
reimbursement.
    Language has been included for the Financial Management 
Service that provides multiple year availability for systems 
modernization funds.
    Language has been included for the Alcohol and Tobacco Tax 
and Trade Bureau that provides funds for the hire of passenger 
motor vehicles, cooperative research and development; and 
laboratory assistance to state and local agencies with or 
without reimbursement.
    Language has been included for the U.S. Mint that 
identifies the source of funding for the operations and 
activities of the U.S. Mint; specifies the level of funding for 
circulating coinage and protective service capital investments; 
and provides reimbursement to the General Accounting Office for 
a contract study.
    Language has been included for the Bureau of the Public 
Debt that provides appropriations from the General Fund will be 
reduced as fees are collected, and that a portion of the funds 
are to be derived from the Oil Spill Liability Trust Fund for 
administration of the Fund.
    Language has been included for the Internal Revenue Service 
processing, assistance, and management that provides funds for 
management services, rent and utilities, services authorized by 
5 U.S.C. 3109, and official reception and representation 
expenses. Language also has been included that provides funds 
for the Tax Counseling for the Elderly program and for low-
income taxpayer clinic grants.
    Language has been included for Internal Revenue Service tax 
law enforcement that provides funds for the purchase and hire 
of vehicles; services authorized by 5 U.S.C. 3109; research; 
and reimbursement of the Social Security Administration.
    Language has been included for Internal Revenue Service 
information systems that provides funds for the hire of motor 
vehicles.
    Language has been included for Internal Revenue Service 
business systems modernization that provides for the capital 
asset acquisition of information technology, including 
management and related contractual costs of said acquisitions, 
including contractual costs associated with operation 
authorized by 5 U.S.C. 3109 and that restricts the use of the 
funds.
    Language has been included for the Internal Revenue Service 
health insurance tax credit administration to implement the 
health insurance tax credit included in the Trade Act of 2003 
(Public Law 107-210).
    Section 201 allows the transfer of 5 percent of any 
appropriation, made available to the IRS, to any other IRS 
appropriation with prior Congressional approval.
    Section 202 requires the IRS to maintain a training program 
in taxpayer's rights, dealing courteously with taxpayers, and 
cross cultural relations.
    Section 203 requires the IRS to institute policies and 
procedures, which will safeguard the confidentiality of 
taxpayer information.
    Section 204 requires the IRS to maintain and improve a 1-
800 help line service for taxpayers.
    Section 205 allows the Department of the Treasury to 
purchase uniforms, insurance, and motor vehicles without regard 
to the general purchase price limitation, and enter into 
contracts with the State Department for health and medical 
services for Treasury employees in overseas locations.
    Section 206 authorizes transfers, up to 2 percent, between 
Departmental Offices, Office of the Inspector General, 
Financial Management Service, Alcohol and Tobacco Tax and Trade 
Bureau, Financial Crimes Enforcement Network, and the Bureau of 
the Public Debt appropriations under certain circumstances.
    Section 207 authorizes transfers, up to 2 percent, between 
the Internal Revenue Service and the Treasury Inspector General 
for Tax Administration under certain circumstances.
    Section 208 prohibits the Department of the Treasury from 
undertaking a redesign of the $1 Federal Reserve note.
    Section 209 provides for transfers from and reimbursements 
to the Salaries and Expenses appropriation of the Financial 
Management Service for the purposes of debt collection.
    Section 210 requires authorization for the construction and 
operation of a museum by the United States Mint.
    Section 211 establishes a permanent indefinite 
appropriation for reimbursing financial institutions in their 
capacity as depositaries and financial agents of the United 
States.

TITLE III--EXECUTIVE OFFICE OF THE PRESIDENT AND FUNDS APPROPRIATED TO 
                             THE PRESIDENT

    The Committee has continued language that mandates that 
unused amounts of the President's expense allowance will revert 
to the Treasury and which provides funds for service authorized 
by 5 U.S.C. 3109, subsistence expenses, hire of vehicles, 
newspapers, periodicals, teletype news service, travel, and 
official entertainment expenses. The Committee has continued 
language making funds available for reimbursement to the White 
House Communications Agency.
    The Committee has continued language that provides funds 
for operation and maintenance of the White House for official 
entertainment expenses; language specifying the authorized use 
of funds; language specifying that reimbursable expenses are 
the exclusive authority of the Executive Residence to incur 
obligations and receive offsetting collections; language 
requiring the sponsors of political events to make advance 
payments; language requiring the national committee of the 
political party of the President to maintain $25,000 on 
deposit; language requiring the Executive Residence to ensure 
that amounts owed are billed within 60 days of a reimbursable 
event and collected within 30 days of the bill notice; language 
authorizing the Executive Residence to charge and assess 
interest and penalties on late payments; language authorizing 
all reimbursements to be deposited into the Treasury as a 
miscellaneous receipt; language requiring a report to the 
Committee on the reimbursable expenses within 90 days of the 
end of the fiscal year; language requiring the Executive 
Residence to maintain a system for tracking and classifying 
reimbursable events; and language specifying that the Executive 
Residence is not exempt from the requirements of subchapter I 
or II of chapter 37 of title 31, United States Code.
    The Committee has continued language that provides funds 
for the hire of vehicles and funds for a capital investment 
plan that provides for the continued modernization of the 
information technology infrastructure. The Committee has 
language regarding information technology within the Executive 
Office of the President, requiring the submission of a report 
that includes a current description of (1) the Enterprise 
Architecture, as defined in OMB Circular A-130 and Federal 
Chief Information Officer guidance; (2) the Information 
Technology (IT) Human Capital Plan; (3) the capital investment 
plan for implementing the Enterprise Architecture; and (4) the 
IT capital planning and investment control process. The 
Committee has language requiring that this report be reviewed 
and approved by OMB and reviewed by the General Accounting 
Office.
    The Committee has continued language that provides funds 
for expenses, the hire of vehicles, carrying out provisions of 
chapter 35 of 44 U.S.C., directs that funds shall be applied 
only to items for which appropriations were made, prohibits the 
review of agricultural marketing orders and the alteration of 
certain testimony. The Committee has continued language 
prohibiting the use of funds for the purpose of OMB 
calculating, preparing, or approving any tabular or other 
material that proposes the sub-allocation of budget authority 
or outlays by the Committees on Appropriations.
    The committee has continued language that provides funds 
for expenses, research, official reception and representation 
expenses, participation in joint projects, and allows for the 
acceptance of gifts. The Committee has continued language 
providing funds for model state drug law conferences and policy 
research and evaluation and making these funds available until 
expended.
    The Committee continues language previously included in 
Title IV of the bill that provides funds for necessary expenses 
in support of interagency projects that enable the Federal 
Government to expand its ability to conduct activities 
electronically through the development and implementation of 
innovative uses of the Internet and other electronic methods. 
The Committee continues language that allows funds to be 
transferred, upon condition, and to be available until 
expended.
    The Committee has continued language that provides funds 
for counternarcotics research and development and the 
technology transfer program.
    The Committee has continued language that provides a 
certain level of funding for State, local and Federal drug 
control efforts, and requires obligation of funds within a 
specified period of time. The Committee continues language 
regarding the availability of funds.
    The Committee has continued language that provides a 
certain level of funding for the Drug-Free Media Campaign Act, 
for the Drug-Free Communities Act, and to provide a grant to 
the National Drug Court Institute, and for the Counterdrug 
Intelligence Executive Secretariat and the US Anti-Doping 
Agency. The Committee has continued language providing funding 
for performance measures development and for membership dues to 
the World Anti-Doping Agency.
    The Committee has continued language that provides funds 
for operation and maintenance of the official residence of the 
Vice President, the hire of vehicles, official entertainment 
expenses and provides for the transfer of funds as necessary. 
The Committee has continued language that enables the Vice 
President to provide assistance to the President, services 
authorized by 5 U.S.C. 3109, subsistence, and the hire for 
vehicles.

                     TITLE IV--INDEPENDENT AGENCIES

    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. 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.
    The Committee has continued language that provides funds 
for expenses of the Federal Election Commission and specifying 
a level of funding for internal automated data processing 
systems and reception and representation expenses.
    The Committee has included language prohibiting employees 
of the Election Assistance Commission from lobbying for 
changing the Federal election date.
    Language is included under the Federal Maritime Commission 
directing the agency to submit a report summarizing current 
information technology improvement initiatives and the 
Commission's long-term technology improvement plan.
    The Committee has continued language that provides funds 
for the expenses of the authority, including authorized 
services, hire of experts and consultants, hire of passenger 
motor vehicles, and rental of conference rooms in the District 
of Columbia and elsewhere. The Committee has also continued 
provisions on compensation for public members of the Federal 
Service Impasse Panel and of the use of fees charged to 
participants at labor-management relations conferences.
    Language has been included for the General Services 
Administration Federal Buildings Fund that specifies the 
conditions under which funds made available can be used and 
designates certain projects that can be undertaken. Many 
technical provisions have been included regarding use of funds 
in the Federal Buildings Fund that are not specifically 
authorized by law. Language has been included that limits 
project funds available for construction and repair and 
alteration of buildings not authorized by law. A more detailed 
analysis of the Federal Buildings Funds can be found in the 
General Services Administration chapter of this report.
    Language has been included for General Services 
Administration government-wide policy that provides funds for 
policy and evaluation activities associated with the management 
of real and personal property assets and certain administrative 
services; support responsibilities relating to acquisition, 
telecommunications, information technology management, and 
related technology activities; and services authorized by 5 
U.S.C. 3109.
    Language has been included for General Services 
Administration operating expenses that provides funds for 
expenses for activities associated with personal and real 
property; technology management and activities; information 
access activities; agency-wide policy direction and management; 
other support services; and official reception and 
representation expenses.
    Language has been included for the GSA Office of Inspector 
General that provides funds for information and detection of 
fraud; and for awards in recognition of efforts that enhance 
the office.
    Language has been included for the GSA electronic 
government fund that allows these funds to be transferred.
    Language has been included for allowances and office staff 
for former Presidents that allows a portion of these funds to 
be transferred.
    Section 501 provides that costs included in rent received 
from government corporations for operation, protection, 
maintenance, upkeep, repair and improvement shall be credited 
to the Federal Buildings Fund.
    Section 502 authorizes the use of funds for the hire of 
motor vehicles.
    Section 503 provides that funds made available for 
activities of the Federal Buildings Fund may be transferred 
between appropriations with advance approval of the Congress.
    Section 504 prohibits the use of funds for developing 
courthouse construction requests that do not meet GSA standards 
and the priorities of the Judicial Conference.
    Section 505 provides that no funds may be used to increase 
the amount of occupiable square feet, provide cleaning 
services, security enhancements, or any other service usually 
provided, to any agency which does not pay the requested rent.
    Section 506 provides for Information Technology Fund 
repayment from sponsored projects that realize program savings.
    Section 507 permits GSA to pay small claims (up to 
$250,000) made against the government.
    Section 508 prohibits GSA from developing or implementing a 
mandatory system requiring agencies to use a specific 
electronic travel solution or the eTravel Service.
    The committee has continued language that provides funds 
for the Board, including the rental of conference rooms in the 
District of Columbia and elsewhere, the hire of passenger motor 
vehicles, and the direct procurement of survey printing.
    The Committee has continued language that provides funds 
for the review and declassification of documents, the hire of 
passenger vehicles, and language that authorizes the Archivist 
to use excess funds available from the amount borrowed for 
construction of the National Archives facility for expenses 
necessary to provide storage for holdings. The Committee 
continues language specifying funds for the electronic records 
archive and making a portion of these funds available until 
September 30, 2005.
    Language has been included for the Morris K. Udall 
scholarship and excellence in national environmental policy 
trust fund that provides for financial audits and provides for 
transfers related to the Native Nations Institute.
    Language has been included for the environmental dispute 
resolution fund pursuant to the Environmental Policy and 
Conflict Resolution Act of 1998.
    Language has been included for National Archives and 
Records Administration operating expenses for the hire of 
passenger motor vehicles; authority to use excess funds for 
holding storage; and preservation of the records of the 
Freedmen's Bureau.
    Language has been included for the electronic archive that 
provides for all direct project costs associated with its 
development.
    Language has been included for repairs and alterations that 
provides funds for the repair, alteration, and improvement of 
archives facilities and presidential libraries.
    Language has been included for national historical 
publications and records commission grants that provides for 
activities authorized by 44 U.S.C. 2504.
    The committee has continued language that provides funds 
for the rental of conference rooms in the District of Columbia 
and elsewhere, the hire of passenger motor vehicles, and 
official reception and representation expenses.
    The Committee has continued language that provides for 
services authorized by 5 U.S.C. 3109, medical examinations 
under certain conditions, rental of conference rooms, hire of 
passenger motor vehicles, official reception and representation 
expenses, advances for reimbursement per diem and/or 
subsistence allowances for employees affected by Voting Rights 
Act activities, transfers to appropriate trust funds, 
prohibition of funds for the Legal Examining Unit, authority to 
accept donations for the White House Fellows program, and 
making funds available until expended for automating retirement 
record keeping. The Committee has continued language making 
funding available until expended for a government-wide human 
resources data network and for a government-wide payroll 
modernization initiative. The Committee has included new 
language making funding available for two fiscal years for 
program evaluation.
    The committee has continued language that provides funds 
for expenses of the Office, audit of the retirement and 
insurance programs, and the rental of conference rooms.
    The committee has continued language that provides funds 
for the payment of government contributions.
    The Committee has included new language providing for the 
establishment of a human capital performance fund, contingent 
upon authorizing legislation. The Committee has included new 
language allowing the transfer of funds to the appropriate 
federal agencies. The Committee has included new language 
providing for the notification and prior approval of the 
appropriate Congressional subcommittees prior to the obligation 
or transfer of funds.
    The committee has continued language that provides funds 
for the payment of fees and expenses for witnesses, rental of 
conference rooms, and the hire of passenger motor vehicles.
    The Committee has continued language that provides funds 
for services authorized by 5 U.S.C. 3109 and language which 
provides that travel expenses of judges shall be paid upon 
written certification of the judge.

                 TITLE V--GENERAL PROVISIONS, THIS ACT

    Section 501. The Committee continues the provision 
requiring pay raises to be funded within appropriated levels in 
this Act or previous appropriations Acts.
    Section 502. The Committee continues the provision 
prohibiting pay and other expenses for non-Federal parties in 
regulatory or adjudicatory proceedings funded in this Act.
    Section 503. The Committee continues the provision 
prohibiting obligations beyond the current fiscal year and 
prohibits transfers of funds unless expressly so provided 
herein.
    Section 504. The Committee continues the provision limiting 
consulting service expenditures of public record in procurement 
contracts.
    Section 505. The Committee continues the provision 
designating the city of Norman, Oklahoma, to be considered part 
of the Oklahoma City Transportation Management Area for fiscal 
year 2005.
    Section 506. The Committee continues the provision 
prohibiting funds in this Act to be transferred without express 
authority.
    Section 507. The Committee continues the provision 
prohibiting the use of funds to engage in activities that would 
prohibit the enforcement of section 307 of the 1930 Tariff Act.
    Section 508. The Committee continues the provision 
concerning employment rights of Federal employees who return to 
their civilian jobs after assignment with the Armed Forces.
    Section 509. The Committee continues the provision 
concerning compliance with the Buy American Act.
    Section 510. The Committee continues the provision of 
purchasing American-made equipment and products under financial 
assistance authorization.
    Section 511. The Committee includes a provision prohibiting 
a person affixing a label bearing ``Made in America'', that is 
not made in the United States.
    Section 512. The Committee continues the provision 
providing that fifty percent of unobligated balances may remain 
available for certain purposes.
    Section 513. The Committee includes a provision providing 
that funds used by the Executive Office of the President not be 
used to request any official background investigation from the 
Federal Bureau of Investigation.
    Section 514. The Committee includes a provision requiring 
that cost accounting standards not apply to a contract under 
the Federal Health Benefits Program.
    Section 515. The Committee continues a provision regarding 
non-foreign area cost of living allowances.
    Section 516. The Committee continues a provision 
prohibiting the use of funds by any person or entity convicted 
of violating the Buy American Act.
    Section 517. The Committee continues the provision 
prohibiting the expenditure of funds for abortions under the 
FEHBP.
    Section 518. The Committee continues the provision 
prohibiting the expenditure of funds for abortions under the 
FEHBP unless the life of the mother is in danger or the 
pregnancy is a result of an act of rape or incest.
    Section 519. The Committee modifies a provision specifying 
reprogramming procedures by subjecting the establishment of new 
offices and reorganizations to the reprogramming process.
    Section 520. The Committee continues a new provision 
waiving restrictions on the purchase of non-domestic articles, 
materials, and supplies in the case of acquisition by the 
Federal Government of information technology.
    Section 521. The Committee continues a provision providing 
a sense of the House of Representatives that empowerment zones 
within cities should have the necessary flexibility to expand 
to include relevant communities so that empowerment zone 
benefits are equitably distributed.
    Section 522. The Committee continues a provision providing 
a sense of the House of Representative that all census tracts 
contained in an empowerment zone, either fully or partially, 
should be equitably accorded the same benefits.
    Section 523. The Committee continues the provision 
prohibiting the use of funds for a proposed rule relating to 
the determination that real estate brokerage is a financial 
activity.

                      TITLE VI--GENERAL PROVISIONS


                Departments, Agencies, and Corporations

    Section 601. The Committee continues the provision 
authorizing agencies to pay costs of travel to the United 
States for the immediate families of federal employees assigned 
to foreign duty in the event of a death or a life threatening 
illness of the employee.
    Section 602. The Committee continues the provision 
requiring agencies to administer a policy designed to ensure 
that all of its workplaces are free from the illegal use of 
controlled substances.
    Section 603. The Committee continues the provision 
regarding price limitations on vehicles to be purchased by the 
Federal Government.
    Section 604. The Committee continues the provision allowing 
funds made available to agencies for travel, to also be used 
for quarter allowances and cost-of-living allowances.
    Section 605. The Committee continues the provision 
prohibiting the government, with certain specified exceptions, 
from employing non-U.S. citizens whose posts of duty would be 
in the continental U.S.
    Section 606. The Committee continues the provision ensuring 
that agencies will have authority to pay GSA bills for space 
renovation and other services.
    Section 607. The Committee continues the provision allowing 
agencies to finance the costs of recycling and waste prevention 
programs with proceeds from the sale of materials recovered 
through such programs.
    Section 608. The Committee continues the provision 
providing that funds may be used to pay rent and other service 
costs in the District of Columbia.
    Section 609. The Committee continues the provision 
prohibiting payments to persons filling positions for which 
they have been nominated after the Senate has voted not to 
approve the nomination.
    Section 610. The Committee continues the provision 
prohibiting interagency financing of groups absent prior 
statutory approval.
    Section 611. The Committee continues the provision 
authorizing the Postal Service to employ guards and give them 
the same special police powers as certain other federal guards.
    Section 612. The Committee continues the provision 
prohibiting the use of funds for enforcing regulations 
disapproved in accordance with the applicable law of the U.S.
    Section 613. The Committee continues the provision limiting 
the pay increases of certain prevailing rate employees.
    Section 614. The Committee continues the provision limiting 
the amount of funds that can be used for redecoration of 
offices under certain circumstances.
    Section 615. The Committee continues the provision to allow 
for interagency funding of national security and emergency 
telecommunications initiatives.
    Section 616. The Committee continues the provision 
requiring agencies to certify that a Schedule C appointment was 
not created solely or primarily to detail the employee to the 
White House.
    Section 617. The Committee continues the provision 
requiring agencies to administer a policy designed to ensure 
that all workplaces are free from discrimination and sexual 
harassment.
    Section 618. The Committee continues the provision 
prohibiting the payment of any employee who prohibits, 
threatens or prevents another employee from communicating with 
Congress.
    Section 619. The Committee continues the provision 
prohibiting Federal training not directly related to the 
performance of official duties.
    Section 620. The Committee continues the provision 
prohibiting the expenditure of funds for implementation of 
agreements in nondisclosure policies unless certain provisions 
are included.
    Section 621. The Committee continues the provision 
prohibiting propaganda, publicity and lobbying by executive 
agency personnel in support or defeat of legislative 
initiatives.
    Section 622. The Committee continues the provision 
prohibiting any federal agency from disclosing an employee's 
home address to any labor organization, absent employee 
authorization or court order.
    Section 623. The Committee continues the provision 
prohibiting funds to be used to provide non-public information 
such as mailing or telephone lists to any person or 
organization outside the government without the approval of the 
Committees on Appropriations.
    Section 624. The Committee continues the provision 
prohibiting the use of funds for propaganda and publicity 
purposes not authorized by Congress.
    Section 625. The Committee continues the provision 
directing agency employees to use official time in an honest 
effort to perform official duties.
    Section 626. The Committee continues the provision, with 
technical modifications, authorizing the use of funds to 
finance an appropriate share of the Joint Financial Management 
Improvement Program.
    Section 627. The Committee continues the provision, with 
technical modifications, authorizing agencies to transfer funds 
to the Governmentwide Policy account of GSA to finance an 
appropriate share of the Joint Financial Management Improvement 
Program and other purposes.
    Section 628. The Committee continues the provision, to 
prohibit any department or agency from using appropriated funds 
to independently contract with private companies to provide 
online employment applications and processing services.
    Section 629. The Committee continues the provision that 
permits breast feeding in a federal building or on federal 
property if the woman and child are authorized to be there.
    Section 630. The Committee continues the provision that 
permits interagency funding of the National Science and 
Technology Council and provides for a report on the budget and 
resources of the National Science and Technology Council. The 
report should include the entire budget of the National Science 
and Technology Council.
    Section 631. The Committee continues the provision 
requiring documents involving the distribution of federal funds 
to indicate the agency providing the funds and the amount 
provided.
    Section 632. The Committee extends the authorization period 
for agency franchise funds by striking ``October 1, 2004'' and 
inserting ``October 1, 2005'', as requested.
    Section 633. The Committee continues the provision 
prohibiting the use of funds to monitor personal information 
relating to the use of federal internet sites to collect, 
review, or create any aggregate list that includes personally 
identifiable information relating to access to or use of any 
federal internet site of such agency.
    Section 634. The Committee continues the provision 
requiring health plans participating in the FEHBP to provide 
contraceptive coverage and provides exemptions to certain 
religious plans.
    Section 635. The Committee continues the provision 
providing recognition of the U.S. Anti-Doping Agency as the 
official anti-doping agency.
    Section 636. The Committee continues the provision 
prohibiting funds from being expended for the purchase of a 
product or service offered by Federal Prison Industries, Inc. 
unless the agency determines the products to constitute the 
best value to the buying agency.
    Section 637. The Committee continues a provision requiring 
agencies to evaluate the creditworthiness of an individual 
before issuing the individual a government travel charge card 
and limits agency actions accordingly.
    Section 638. The Committee continues a provision allowing 
funds for official travel to be used by departments and 
agencies, if consistent with OMB and Budget Circular A126, to 
participate in the fractional aircraft ownership pilot program.
    Section 639. The Committee includes a provision providing 
that funds not be used to implement or enforce regulations for 
locality pay inconsistent with recommendations of the Federal 
Salary Council.
    Section 640. The Committee continues a provision requiring 
the head of each Federal agency to submit a report to Congress 
on the amount of acquisitions made by the agency from entities 
that manufacture the articles, materials, or supplies outside 
of the United States.
    Section 641. The Committee continues a provision 
prohibiting funds for implementation of OPM regulations 
limiting detailees to the Legislative Branch, and implementing 
limitations on the Coast Guard Congressional Fellowship 
Program.
    Section 642. The Committee includes a new provision 
eliminating the ten year limitations period applicable to the 
offset of federal non-tax payments, as requested.
    Section 643. The Committee includes a new provision, as 
requested, permitting the Secretary of Health and Human 
Services to match information, provided by the Secretary of the 
Treasury with respect to persons owing delinquent debt to the 
Federal Government, with information contained in the HHS 
National Directory of New Hires.
    Section 644. The Committee includes a new provision, as 
requested, allowing for the offset of federal tax refunds to 
collect delinquent state unemployment compensation 
overpayments.
    Section 645. The Committee includes a new provision 
regarding conditions for converting an activity or function of 
an executive agency to a contractor performance under 
provisions of OMB Circular A-76.

                 Comparison With the Budget Resolution

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives requires an explanation of compliance with 
section 308(a)(1)(A) of the Congressional Budget and 
Impoundment Control Act of 1974 (Public Law 93-344), as 
amended, which requires that the report accompanying a bill 
providing new budget authority contain a statement detailing 
how that authority compares with the reports submitted under 
section 302 of the Act for the most recently agreed to 
concurrent resolution on the budget for the fiscal year from 
the Committee's section 302(a) allocation. This information 
follows:

                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                  Budget authority               Outlays
                                                             ---------------------------------------------------
                                                               Committee    Amount of    Committee    Outlays of
                                                               allocation      bill      allocation      bill
----------------------------------------------------------------------------------------------------------------
Comparison of amounts in the bill with Committee allocations
 to its subcommittees of amounts in the House Budget
 Resolution for 2005: Subcommittee on Transportation and
 Treasury:
    General purpose discretionary...........................       25,320       25,319       68,993       68,992
    Mandatory...............................................       18,261       18,261       18,262       18,262
----------------------------------------------------------------------------------------------------------------

                      Five-Year Outlay Projections

    In compliance with section 308(a)(1)(B) of the 
Congressional Budget and Impoundment Control Act of 1974 
(Public Law 93-344), as amended, the following table contains 
five-year projections associated with the budget authority 
provided in the accompanying bill as provided to the Committee 
by the Congressional Budget Office:

                                                [In millions of dollars]
Projection of outlays associated with the 
    recommendation:
    2005................................................          48,707
    2006................................................          21,779
    2007................................................           8,485
    2008................................................           3,669
    2009 and future years...............................           4,584

          Financial Assistance to State and Local Governments

    In accordance with section 308(a)(1)(C) of the 
Congressional Budget and Impoundment Control Act of 1974 
(Public Law 93-344), as amended, 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:

                        [In millions of dollars]
------------------------------------------------------------------------
                                      Budget authority   Outlays amount
                                       amount of bill        of bill
------------------------------------------------------------------------
Financial assistance to State and                  774            11,583
 local governments for 2004.........
------------------------------------------------------------------------

                              RESCISSIONS

    Pursuant to the provisions of clause 3(f)(2) of rule XIII 
of the Rules of the House of Representatives, the following 
table is submitted describing the rescissions recommended in 
the accompanying bill:

Federal Aviation Administration.........................    $758,000,000
Federal Highway Administration..........................     386,000,000
National Transportation Safety Board....................       8,000,000

                          Full Committee Votes

    Pursuant to the provisions of clause 3(b) of rule XIII of 
the House of Representatives, the results of each roll call 
vote on an amendment or on the motion to report, together with 
the names of those voting for and those voting against, are 
printed below:
                             ROLLCALL NO. 1

    Date: July 22, 2004.
    Measure: Transportation, Treasury and Related Agencies 
Appropriations Bill, FY 2005.
    Motion by: Mr. Pastor.
    Description of motion: To strike section 216 of the bill 
relating to Treasury Department regulations allowing financial 
institutions to accept the matricula consular card as a form of 
identification.
    Results: Rejected--yeas 25; nays 26.
        Members Voting Yea            Members Voting Nay
Mr. Berry                           Mr. Bonilla
Mr. Cramer                          Mr. Boyd
Ms. DeLauro                         Mr. Crenshaw
Mr. Dicks                           Mr. Culberson
Mr. Edwards                         Mr. Doolittle
Mr. Farr                            Mrs. Emerson
Mr. Fattah                          Mr. Frelinghuysen
Mr. Hinchey                         Mr. Goode
Mr. Hoyer                           Ms. Granger
Mr. Jackson                         Mr. Istook
Ms. Kaptur                          Mr. Kingston
Mr. Kennedy                         Mr. Knollenberg
Ms. Kilpatrick                      Mr. Lewis
Mr. Kolbe                           Mrs. Northup
Mr. LaHood                          Mr. Peterson
Mr. Latham                          Mr. Regula
Mr. Moran                           Mr. Rogers
Mr. Obey                            Mr. Sherwood
Mr. Olver                           Mr. Simpson
Mr. Pastor                          Mr. Tiahrt
Mr. Price                           Mr. Vitter
Mr. Rothman                         Mr. Wamp
Mr. Sabo                            Dr. Weldon
Mr. Serrano                         Mr. Wicker
Mr. Walsh                           Mr. Wolf
                                    Mr. Young
                             ROLLCALL NO. 2

    Date: July 22, 2004.
    Measure: Transportation, Treasury, and Related Agencies 
Appropriations Bill, FY 2004.
    Motion by: Mr. Sabo.
    Description of motion: To amend the report relating to 
transit security responsibilities.
    Results: Rejected--yeas 24; nays 31.
        Members Voting Yea            Members Voting Nay
Mr. Berry                           Mr. Bonilla
Mr. Bishop                          Mr. Crenshaw
Mr. Boyd                            Mr. Culberson
Mr. Clyburn                         Mr. Doolittle
Ms. DeLauro                         Mrs. Emerson
Mr. Dicks                           Mr. Frelinghuysen
Mr. Edwards                         Mr. Goode
Mr. Farr                            Ms. Granger
Mr. Fattah                          Mr. Hobson
Mr. Hinchey                         Mr. Istook
Mr. Hoyer                           Mr. Kingston
Mr. Jackson                         Mr. Knollenberg
Ms. Kaptur                          Mr. Kolbe
Mr. Kennedy                         Mr. LaHood
Ms. Kilpatrick                      Mr. Latham
Mr. Moran                           Mr. Lewis
Mr. Obey                            Mr. Nethercutt
Mr. Olver                           Mrs. Northup
Mr. Pastor                          Mr. Peterson
Mr. Price                           Mr. Rogers
Mr. Rothman                         Mr. Sherwood
Mr. Sabo                            Mr. Simpson
Mr. Serrano                         Mr. Sweeney
Mr. Visclosky                       Mr. Tiahrt
                                    Mr. Vitter
                                    Mr. Walsh
                                    Mr. Wamp
                                    Dr. Weldon
                                    Mr. Wicker
                                    Mr. Wolf
                                    Mr. Young
                             ROLLCALL NO. 3

    Date: July 22, 2004.
    Measure: Transportation, Treasury, and Related Agencies 
Appropriations Bill, FY 2005.
    Motion by: Mr. Sabo.
    Description of motion: To amend the report relating to air 
traffic controller staffing and training, including the 
requirement that $2,000,000 be designated for training at a 
specified facility in Minnesota.
    Results: Rejected--yes 24; nays 32.
        Members Voting Yea            Members Voting Nay
Mr. Berry                           Mr. Bonilla
Mr. Bishop                          Mr. Crenshaw
Mr. Boyd                            Mr. Culberson
Mr. Clyburn                         Mr. Cunningham
Ms. DeLauro                         Mr. Doolittle
Mr. Dicks                           Mrs. Emerson
Mr. Edwards                         Mr. Frelinghuysen
Mr. Farr                            Mr. Goode
Mr. Fattah                          Ms. Granger
Mr. Hinchey                         Mr. Hobson
Mr. Hoyer                           Mr. Istook
Mr. Jackson                         Mr. Kingston
Ms. Kaptur                          Mr. Knollenberg
Mr. Kennedy                         Mr. Kolbe
Ms. Kilpatrick                      Mr. LaHood
Mr. Moran                           Mr. Latham
Mr. Obey                            Mr. Lewis
Mr. Olver                           Mr. Nethercutt
Mr. Pastor                          Mrs. Northup
Mr. Price                           Mr. Peterson
Mr. Rothman                         Mr. Regula
Mr. Sabo                            Mr. Rogers
Mr. Serrano                         Mr. Sherwood
Mr. Visclosky                       Mr. Sweeney
                                    Mr. Tiahrt
                                    Mr. Vitter
                                    Mr. Walsh
                                    Mr. Wamp
                                    Dr. Weldon
                                    Mr. Wicker
                                    Mr. Wolf
                                    Mr. Young
                             ROLLCALL NO. 4

    Date: July 22, 2004.
    Measure: Transportation, Treasury, and Related Agencies 
Appropriations Bill, FY 2005.
    Motion by: Mr. Hoyer.
    Description of motion: To specify the government-wide 
adjustment in rates of basic pay for federal employees in 
fiscal year 2005.
    Results: Adopted--yeas 42; nays--16.
        Members Voting Yea            Members Voting Nay
Mr. Berry                           Mr. Culberson
Mr. Bishop                          Mr. Dolittle
Mr. Bonilla                         Mr. Istook
Mr. Boyd                            Mr. Kingston
Mr. Clyburn                         Mr. Knollenberg
Mr. Cramer                          Mr. Lewis
Mr. Crenshaw                        Mrs. Northup
Mr. Cunningham                      Mr. Peterson
Ms. DeLauro                         Mr. Rogers
Mr. Dicks                           Mr. Sherwood
Mr. Edwards                         Mr. Simpson
Mrs. Emerson                        Mr. Tiahrt
Mr. Farr                            Mr. Vitter
Mr. Fattah                          Mr. Wamp
Mr. Frelinghuysen                   Dr. Weldon
Mr. Goode                           Mr. Wicker
Ms. Granger
Mr. Hinchey
Mr. Hobson
Mr. Hoyer
Mr. Jackson
Ms. Kaptur
Mr. Kennedy
Ms. Kilpatrick
Mr. Kolbe
Mr. LaHood
Mr. Latham
Mr. Moran
Mr. Nethercutt
Mr. Obey
Mr. Olver
Mr. Pastor
Mr. Price
Mr. Regula
Mr. Rothman
Mr. Sabo
Mr. Serrano
Mr. Sweeney
Mr. Visclosky
Mr. Walsh
Mr. Wolf
Mr. Young
                             ROLLCALL NO. 5

    Date: July 22, 2004.
    Measure: Transportation, Treasury, and Related Agencies 
Appropriations Bill, FY 2005.
    Motion by: Ms. DeLauro.
    Description of motion: To prohibit contracts with a foreign 
corporation which was an acquiring corporation in a corporate 
expatriation transaction, or with any corporation which was a 
member of the same controlled group of corporations as defined 
in section 1563(a) of the Internal Revenue Code of 1986, with 
certain exceptions and specified definitions of legal terms.
    Results: Rejected--yeas 26; nays 29.
        Members Voting Yea            Members Voting Nay
Mr. Berry                           Mr. Bonilla
Mr. Bishop                          Mr. Crenshaw
Mr. Clyburn                         Mr. Culberson
Mr. Cramer                          Mr. Cunningham
Mr. DeLauro                         Mr. Dicks
Mr. Edwards                         Mr. Doolittle
Mr. Farr                            Mr. Frelinghuysen
Mr. Fattah                          Ms. Granger
Mr. Goode                           Mr. Hobson
Mr. Hinchey                         Mr. Istook
Mr. Hoyer                           Mr. Kingston
Mr. Jackson                         Mr. Knollenberg
Mr. Kaptur                          Mr. Kolbe
Mr. Kennedy                         Mr. LaHood
Mr. Kilpatrick                      Mr. Lewis
Mr. Latham                          Mr. Moran
Mr. Northup                         Mr. Nethercutt
Mr. Obey                            Mr. Peterson
Mr. Olver                           Mr. Regula
Mr. Price                           Mr. Rogers
Mr. Rothman                         Mr. Simpson
Mr. Sabo                            Mr. Sweeney
Mr. Serrano                         Mr. Tiahrt
Mr. Sherwood                        Mr. Vitter
Mr. Visclosky                       Mr. Walsh
Mr. Wamp                            Dr. Weldon
                                    Mr. Wicker
                                    Mr. Wolf
                                    Mr. Young
                             ROLLCALL NO. 6

    Date: July 22, 2004.
    Measure: Transportation, Treasury, and Related Agencies 
Appropriations Bill, FY 2005.
    Motion by: Mr. Hoyer.
    Description of motion: To amend the report relating to the 
Equal Employment Opportunity Commission's Annual Report on the 
Federal Workforce, and Executive Order 13163, as they concern 
the number of people with disabilities in the Federal 
workforce.
    Results: Rejected--yeas 24; nays 33.
        Members Voting Yea            Members Voting Nay
Mr. Berry                           Mr. Bonilla
Mr. Bishop                          Mr. Crenshaw
Mr. Boyd                            Mr. Culberson
Mr. Clyburn                         Mr. Cunningham
Ms. DeLauro                         Mr. Doolittle
Mr. Dicks                           Mrs. Emerson
Mr. Edwards                         Mr. Frelinghuysen
Mr. Farr                            Mr. Goode
Mr. Fattah                          Ms. Granger
Mr. Hinchey                         Mr. Hobson
Mr. Hoyer                           Mr. Istook
Mr. Jackson                         Mr. Kingston
Ms. Kaptur                          Mr. Knollenberg
Mr. Kennedy                         Mr. Kolbe
Ms. Kilpatrick                      Mr. LaHood
Mr. Moran                           Mr. Lantham
Mr. Obey                            Mr. Lewis
Mr. Olver                           Mr. Nethercutt
Mr. Pastor                          Mrs. Northup
Mr. Price                           Mr. Peterson
Mr. Rothman                         Mr. Regula
Mr. Sabo                            Mr. Rogers
Mr. Serrano                         Mr. Sherwood
Mr. Visclosky                       Mr. Simpson
                                    Mr. Sweeney
                                    Mr. Tiahrt
                                    Mr. Vitter
                                    Mr. Walsh
                                    Mr. Wamp
                                    Dr. Weldon
                                    Mr. Wicker
                                    Mr. Wolf
                                    Mr. Young
                                    
                                    

                 ADDITIONAL VIEWS OF HON. JOHN W. OLVER

    There are a number of problems with the Transportation, 
Treasury and Independent Agencies bill as reported out of 
Committee. Although Chairman Istook has tried as hard as he can 
to produce a bill that spreads the pain fairly evenly, it has 
been more important for the Majority to maintain super sized 
tax cuts for millionaires than provide the basic services that 
Americans need.
    Earlier this year, the House Majority passed a Budget 
Resolution that prioritized tax cuts for the wealthiest far 
ahead of critical investments that benefit all Americans. This 
fiction of a budget resolution quickly becomes real when we 
have to translate it into programs that impact the lives of 
millions of Americans each day.
    If it was not apparent at the time, it is now clear that 
the Budget Resolution will make it nearly impossible to 
adequately fund many of our nation's needs, including those 
contained in this bill.
    Despite some improvements to the bill at Full Committee, 
serious problems remain that will need to be addressed as the 
process moves forward. Our concerns include:
     FAA--The bill makes significant cuts to the FY05 
request level for FAA Operations and to the FY04 enacted level 
for Facilities and Equipment. Although the Chairman should be 
commended for supporting additional funding for the hiring of 
new Air Traffic Controllers, without proper funding throughout 
the agency, these new controllers will come into an Agency that 
lacks the proper equipment and facilities to assist them in 
ensuring the safety and security of the nation's airways.
    In FY04, the FAA's limited funding resulted in the 
attrition of over one thousand personnel. The Committee 
reported funding level for the FAA for FY05, if sustained, will 
certainly result in further attrition from the FAA's workforce.
     Amtrak--Once again we find ourselves with a 
Committee reported funding level of $900 million that Amtrak 
says will result in the shut-down of the railroad before the 
fiscal year is even half over. To make matters worse, the bill 
also requires Amtrak to pay back a $100 million loan that they 
received in FY03; thus making Amtrak's net resources available 
in FY05 only $800 million.
    As we argued last year, even if Amtrak can continue to 
somehow manage to operate at this funding level, the Committee 
is again denying Amtrak resources necessary to address the 
capital backlog. We will once again be one catastrophe away 
from shutting down Amtrak operations and significantly 
impacting all trains that run on Amtrak's bridges and rails in 
the Northeast Corridor. Neglect of the infrastructure will have 
a major impact on commuters and travelers throughout the 
country.
     IRS Tax Compliance--Without proper funding for the 
IRS tax compliance activities we will continue to leave on the 
table the over $300 billion in tax revenues that go uncollected 
each year. In effect, we're now giving tax cuts to tax 
cheaters.
    The President's FY05 budget laudably proposed a fairly 
significant increase for IRS compliance resources. Earlier this 
year, the IRS Oversight Board, after reviewing the IRS' budget 
proposal, agreed with the need for an emphasis on enforcement 
but found that the President's budget did ``not back up its 
goals on enforcement with the necessary resources to do the 
job.''
    Unfortunately, the Committee provided a funding level that 
is $286 million (6.3%) below the President's FY05 request for 
the IRS Tax Law Enforcement account. Furthermore, the 
Committee's funding level is $492 million (10.3%) below the 
amount the Oversight Board said was necessary for proper tax 
law enforcement in FY05.
    Because increased investment has a direct yield on revenue 
collection, this seems like one of the smartest places to 
invest our scarce resources. The Administration claims that 
their new compliance initiatives, if fully funded, will yield a 
six-to-one return on investment. Unfortunately, the budget 
resolution forced the Committee to make cuts in an area here 
that could have yielded the Treasury even greater resources for 
the future.
     Matriculas Consular--The Full Committee voted to 
retain an unfortunate provision (Section 216) that would 
prohibit the Treasury Department from acting to permit 
financial institutions to accept the matricula consular 
identification card as a form of identification for opening a 
bank account. Matriculas are a safe, reliable identification 
card that helps undermine the market for illegal identification 
and fraudulent documents. The card does not change a person's 
immigration status. Serving as official identification, the 
card is another line of defense in the continuing efforts to 
ensure that terrorists do not have access to our financial 
institutions.
    The Administration opposes this provision as well because 
this language would restrict the ability of financial 
institutions to comply with anti-money laundering and anti-
terrorist financing statutes. Treasury Secretary John W. Snow, 
in a recent letter to Congress said, ``Because this provision 
[Sec. 216] could drive large sections of the U.S. population to 
underground financial services, it would weaken the 
Government's ability to enforce our money laundering and 
terrorist financing laws.'' In the post-9/11 environment, we 
want people who are in this country, whatever their status, to 
be able to prove their identity.
    The most recent version of the card, issued in 2002, has a 
dozen security features, including a hologram, digitized photo, 
and infrared band. As The Washington Times reported (Nov. 26, 
2002): ``[Mexican] officials turned the previous version of the 
[matricula] card into a high-tech ID that's more fraud-proof 
than many state drivers' licenses.'' Approximately 350 
financial institutions and 1100 police departmentsaccept the 
Mexican Consular ID as a valid form of identification. The car improves 
safety, giving Mexican nationals an incentive to register with the 
Mexican consulate while they are in the U.S. The card also helps police 
departments by serving as a means of quickly identifying witnesses, 
victims, and suspects. Immigrants with identification are more likely 
to report crimes and cooperate in police investigations.
     Unspecified Cuts--In order to remain under the 
Subcommittee's low allocation, the Subcommittee made what 
appear to be unspecified, and in some cases seemingly arbitrary 
cuts, to important programs. Although unspecified cuts provide 
Departments and Agencies some discretion in determining where 
they can reduce services, they are but a blunt instrument for 
carrying out the fiction that is this year's budget process. 
Sadly for Americans who depend on Federal programs, the cuts 
and policy decisions set forth in this bill, if sustained, will 
further erode the Federal government's infrastructure and basic 
operations.
    Before concluding, I want to point out that the Majority 
agreed at Full Committee to address some of the concerns we had 
with the Subcommittee passed bill. Some important improvements 
include:
     Restoring what appeared to be $4.5 million of 
arbitrary cuts taken from the budget of the Financial Crimes 
Enforcement Network (FinCEN)--the Treasury bureau that targets 
criminal money laundering and terrorist financing activities. 
Without the restoration of these funds, FinCEN would not have 
been able to even maintain current services and annualize 
programs that were started in FY 2004.
     Securing some additional funding (an additional $2 
million was added to the $7 million provided in the 
Subcommittee passed bill) for the hire of new air traffic 
controllers in anticipation of the wave of impending controller 
retirements. Although the President, in his FY05 budget, failed 
to provide leadership on this critical safety and security 
priority, the Committee agreed with our concerns and had the 
foresight to address this looming problem.
     Providing funding for the Udall Foundation 
programs. Although the Udall Foundation's trust fund payment 
was zeroed out in the Subcommittee Mark, the Full Committee 
restored full funding at the FY04 enacted level of $1.984 
million. The environmental dispute resolution account was also 
restored to the FY04 enacted level. This action will ensure 
that important programs for Native Americans and environmental 
dispute resolution can continue unimpeded.
    In conclusion, many changes are needed to address the 
problems that remain in the Committee reported bill. I will 
continue to seek the improvements outlined above as this bill 
moves through the Congress.
                                                     John W. Olver.

                                  
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