[Senate Report 108-342]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 696
108th Congress                                                   Report
                                 SENATE
 2d Session                                                     108-342

======================================================================



 
 TRANSPORTATION, TREASURY AND GENERAL GOVERNMENT APPROPRIATIONS BILL, 
                                  2005
                                _______
                                

               September 15, 2004.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                    [To accompany S. 2806]

    The Committee on Appropriations, to which was referred the 
bill (H.R. 0000) making appropriations for the Department of 
Transportation and related agencies for the fiscal year ending 
September 30, 2005, and for other purposes, reports the same to 
the Senate with an amendment and recommends that the bill as 
amended do pass. deg.
    The Committee on Appropriations reports the bill (S. 2806) 
making appropriations for the Departments of Transportation and 
the Treasury; the Executive Office of the President; and 
certain independent agencies for the fiscal year ending 
September 30, 2005, and for other purposes, reports favorably 
thereon and recommends that the bill do pass.



Amounts of new budget (obligational) authority for fiscal year 2005

Amount of bill as reported to Senate.................... $44,052,003,000
Amount of budget estimates, 2005........................  43,783,352,000
Fiscal year 2004 enacted................................  46,146,853,000


                            C O N T E N T S

                              ----------                              
                                                                   Page

Total Obligational Authority Provided--General Funds and Trust 
  Funds..........................................................     4
Program, Project, and Activity...................................     4
Reprogramming Guidelines.........................................     4
Congressional Budget Justifications..............................     5
TEA21 Authorizations Expiration..................................     6
Title I--Department of Transportation:
    Office of the Secretary......................................     8
    Federal Aviation Administration..............................    20
    Federal Highway Administration...............................    53
    Federal Motor Carrier Safety Administration..................    65
    National Highway Traffic Safety Administration...............    74
    Federal Railroad Administration..............................    88
    Federal Transit Administration...............................    94
    St. Lawrence Seaway Development Corporation..................   109
    Maritime Administration......................................   109
    Research and Special Programs Administration.................   113
    Office of Inspector General..................................   120
    Surface Transportation Board.................................   121
Title II--Department of the Treasury:
    Departmental Offices.........................................   124
    Financial Crime Enforcement Network..........................   136
    Financial Management Service.................................   139
    Alcohol and Tobacco Tax and Trade Bureau.....................   140
    Bureau of the Public Debt....................................   141
    United States Mint...........................................   142
    Bureau of Engraving and Printing.............................   143
    Internal Revenue Service.....................................   144
Title III--Executive Office of the President and Funds 
  Appropriated to the President:
    White House Office...........................................   159
    Executive Residence at the White House.......................   159
    Council of Economic Advisers.................................   160
    Office of Policy Development.................................   160
    National Security Council....................................   161
    Homeland Security Council....................................
    Office of Administration.....................................   161
    Office of Management and Budget..............................   162
    Office of National Drug Control Policy.......................   164
    Funds Appropriated to the President..........................   166
    Unanticipated Needs..........................................   172
    Special Assistance to the President..........................   172
    Offical Residence of the Vice President......................   172
Title IV--Independent Agencies:
    Architectural and Transportation Barriers Compliance Board...   174
    Committee for Purchase From People Who Are Blind or Severely 
      Disabled...................................................   174
    Election Assistance Commission...............................   175
    Federal Election Commission..................................   176
    Federal Labor Relations Authority............................   176
    Federal Maritime Commission..................................   177
    General Services Administration..............................   177
    Merit Systems Protection Board...............................   187
    Morris K. Udall Scholarship and Excellence in National 
      Environmental Policy Foundation............................   188
    National Archives and Records Administration.................   189
    National Historical Publications and Records Commission......   190
    National Transportation Safety Board.........................   191
    Office of Government Ethics..................................   192
    Office of Personnel Management...............................   192
    Office of Special Counsel....................................   196
    United States Postal Service.................................   197
    United States Tax Court......................................   199
    White House Commission on the National Moment of Remembrance.   199
Statement Concerning General Provisions..........................   200
Title V--General Provisions This Act.............................   201
Title VI--General Provisions, Departments, Agencies, and 
  Corporations...................................................   203
Compliance With Paragraph 7, Rule XVI, of the Standing Rules of 
  the Sen- 
  ate............................................................   206
Compliance With Paragraph 7(c), Rule XXVI of the Standing Rules 
  of the Senate..................................................   207
Compliance With Paragraph 12, Rule XXVI of the Standing Rules of 
  the Senate.....................................................   208
Budgetary Impact Statement.......................................   209
Comparative Statement............................................   210

  TOTAL OBLIGATIONAL AUTHORITY PROVIDED--GENERAL FUNDS AND TRUST FUNDS

    The accompanying bill contains recommendations for new 
budget (obligational) authority for the Department of 
Transportation, Treasury Department, the United States Postal 
Service, the Executive Office of the President, and certain 
independent agencies for the fiscal year ending September 30, 
2005.
    The Committee considered budget estimates for new budget 
authority for fiscal year 2005 in the aggregate amount of 
$43,783,352,000. Compared to that amount, the accompanying bill 
recommends new budget authority totaling $44,052,003,000. In 
addition to new budget authority for fiscal year 2005, large 
amounts of contract authority are provided by law, the 
obligation limits for which are contained in the annual 
appropriations bill. The principal items in this category are 
the trust funded programs for Federal-aid highways, for mass 
transit, and for airport development grants. For fiscal year 
2005, estimated obligation limitations and exempt obligations 
total $46,902,908,000.

                     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 appropriations acts (including joint resolutions 
providing continuing appropriations) or accompanying reports of 
the House and Senate Committees on Appropriations, or 
accompanying conference reports and joint explanatory 
statements of the committee of conference. This definition 
shall apply to all programs for which new budget (obligational) 
authority is provided, as well as to discretionary grants and 
discretionary grant allocations made through either bill or 
report language. 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.

                        REPROGRAMMING GUIDELINES

    The Committee includes a provision (sec. 511) establishing 
the authority by which funding available to the agencies funded 
by this Act may be reprogrammed for other purposes. The 
provision specifically requires the advanced approval of the 
House and Senate Committees on Appropriations of any proposal 
to reprogram funds that: (1) creates a new program; (2) 
eliminates a program, project, or activity [PPA]; (3) increases 
funds or personnel for any PPA for which funds have been denied 
or restricted by the Congress; (4) proposes to redirect funds 
that were directed in such reports for a specific activity to a 
different purpose; (5) augments an existing PPA in excess of 
$5,000,000 or 10 percent, whichever is less; (6) reduces an 
existing PPA by $5,000,000 or 10 percent, whichever is less; or 
(7) creates, reorganizes, or restructures offices different 
from the congressional budget justifications or the table at 
the end of the Committee report, whichever is more detailed.
    The Committee has included a new requirement that each 
agency shall submit a report to the House and Senate Committees 
on Appropriations not later than 60 days after enactment of 
this Act to establish the baseline for application of 
reprogramming and transfer authorities provided in this Act. 
Specifically, each agency should provide a table for each 
appropriation with columns displaying the budget request; 
adjustments made by Congress; adjustments for rescissions, if 
appropriate; and the fiscal year enacted level. The table shall 
delineate the appropriation both by object class and by PPA. 
The report must also identify items of special congressional 
interest.
    The Committee expects the agencies and bureaus to submit 
reprogramming requests in a timely manner and to provide a 
thorough explanation of the proposed reallocations, including a 
detailed justification of increases and reductions and the 
specific impact the proposed changes will have on the budget 
request for the following fiscal year. Except in emergency 
situations, reprogramming requests should be submitted no later 
than June 30.
    The Committee expects each agency to manage its programs 
and activities within the amounts appropriated by Congress. The 
Committee reminds agencies that reprogramming requests should 
be submitted only in the case of an unforeseeable emergency or 
a situation that could not have been anticipated when 
formulating the budget request for the current fiscal year. 
Further, the Committee notes that when a Department or agency 
submits a reprogramming or transfer request to the Committees 
on Appropriations and does not receive identical responses from 
the House and Senate, it is the responsibility of the 
Department to reconcile the House and Senate differences before 
proceeding, and if reconciliation is not possible, to consider 
the request to reprogram funds unapproved.
    The Committee would also like to clarify that this section 
applies to Working Capital Funds and Forfeiture Funds and that 
no funds may be obligated from such funds to augment programs, 
projects or activities for which appropriations have been 
specifically rejected by the Congress, or to increase funds or 
personnel for any program, project, or activity above the 
amounts appropriated by this Act.

                  CONGRESSIONAL BUDGET JUSTIFICATIONS

    For fiscal year 2005, the Office of Management and Budget 
[OMB] directed each agency to prepare a performance budget. The 
Committee is committed to supporting the Administration as it 
seeks to implement the requirements of the Government 
Performance and Results Act [Results Act]. The Committee has 
found the presentation of linking budgetary resources to 
specific performance targets to be a valuable tool for 
reviewing and evaluating agency priorities relative to 
financial proposals and continues to support the linkage of 
costs to performance in agency programs. The Committee, 
however, is troubled that the agencies funded under this Act 
have chosen to accommodate an increasing amount of performance 
information in budget justifications by eliminating fundamental 
programmatic budget data that is critical to the work of the 
Committee. This trend has made it increasingly difficult for 
the Committee to perform its necessary oversight work in 
reviewing agency budget proposals.
    Budget justifications are prepared not for the use of the 
agency, but instead are the primary tool used by the House and 
Senate Committees on Appropriations to evaluate the resource 
requirements and proposals of agencies. The Committee is aware 
that the format and presentation of budget materials is largely 
left to the agency within presentation objectives set forth by 
OMB. In fact, OMB Circular A-11, Part 6 specifically states 
that the ``agency should consult with your congressional 
committees beforehand to ensure their awareness of your plans 
to modify the format of agency budget documents.'' The 
Committee is disappointed that none of the agencies funded 
under this Act heeded that direction and only a small number of 
agencies even offered to brief the Committee regarding the new 
format for justification materials in advance of the submission 
of their fiscal year 2005 budget requests.
    While the Committee values the inclusion of performance 
data and presentations, it is important to ensure that, in the 
implementation of the Results Act, vital budget information 
that the Committee needs is not lost. Therefore, the Committee 
directs that justifications submitted with the fiscal year 2006 
budget request by agencies funded under this Act must contain 
the customary level of detailed data and explanatory statements 
to support the appropriations requests at the level of detail 
contained in the funding table included at the end of the 
Report. Among other items, agencies shall provide a detailed 
discussion of proposed new initiatives, proposed changes in the 
agency's financial plan from prior year enactment, and detailed 
data building the request for the new year for transfers and 
annualization of prior year programs. At a minimum, each agency 
must also provide adequate justification for funding and 
staffing changes for each individual office and materials that 
compare programs, projects, and activities that are proposed 
for fiscal year 2006 to the fiscal year 2005 enacted level.
    The Committee is aware that the analytical materials 
required for review by the Committee are unique to each Agency 
in this Act. Therefore, the Committee expects that the each 
agency will coordinate with the House and Senate Committees on 
Appropriations in advance on its planned presentation for the 
budget justification materials to support of the fiscal year 
2006 budget request.

                    TEA21 AUTHORIZATIONS EXPIRATION

    The Transportation Equity Act for the 21st Century [TEA21] 
provides authorizations for most Federal highway, transit and 
highway safety programs, and most of those authorizations 
provide contract authority. The role of the appropriations 
process with respect to contract authority programs generally 
is to set obligation limitations so that overall Federal 
spending stays within legislated targets and to appropriate 
liquidating cash to cover the outlays associated with 
obligations that have been made.
    TEA21 authorized these Federal surface transportation 
programs through fiscal year 2003, and since then, Congress has 
enacted several short-term extensions to the programs and 
provided the necessary amount of contract authority. The 
Congress must reauthorize these programs in order to create new 
contract authority for fiscal year 2004 and later years. Both 
the Senate and House have passed reauthorization legislation. 
Until such legislation is enacted, there will not be new 
contract authority to fund such surface transportation programs 
as the Federal-aid highways, transit discretionary grants, or 
highway safety grants, although any unobligated balances from 
prior years will carry over and be available for obligation.
    In developing the fiscal year 2005 appropriations 
recommendations for the Federal surface transportation programs 
authorized by TEA21, the Committee has generally assumed 
continuation of the program structure and funding levels in 
current law as if authorized through the end of fiscal year 
2005.

                 TITLE I--DEPARTMENT OF TRANSPORTATION

                        Office of the Secretary

    Section 3 of the Department of Transportation Act of 
October 15, 1966 (Public Law 89-670) provides for establishment 
of the Office of the Secretary of Transportation [OST]. The 
Office of the Secretary is comprised of the Secretary and the 
Deputy Secretary immediate and support offices; the Office of 
the Under Secretary for Transportation Policy, including the 
offices of the Assistant Secretary for Aviation and 
International Affairs and the Assistant Secretary for 
Transportation Policy and Intermodalism; three Assistant 
Secretarial offices for Budget and Programs, Governmental 
Affairs, and Administration; and the Offices of Small and 
Disadvantaged Business Utilization, Intelligence and Security, 
Chief Information Officer, the General Counsel and Public 
Affairs. The Office of the Secretary also includes the 
Department's Office of Civil Rights and the Department's 
Working Capital Fund.

                         SALARIES AND EXPENSES

Appropriations, 2004 \1\................................     $80,426,000
Budget estimate, 2005...................................     102,689,000
Committee recommendation................................      86,000,000

\1\ Reflects reduction of $477,000 pursuant to Division H, section 168 
of Public Law 108-199. Does not reflect reduction of $2,136,000 pursuant 
to Division F, section 517 of Public Law 108-199.

    This appropriation finances the costs of policy development 
and central supervisory and coordinating functions necessary 
for the overall planning and direction of the Department. It 
covers the immediate secretarial offices and the offices of the 
assistant secretaries, general counsel and other support 
offices.
    The Committee recommends a total of $86,000,000 for the 
Office of the Secretary of Transportation including $60,000 for 
reception and representation expenses. The recommendation 
provides in excess of a 6 percent increase over the fiscal year 
2004 enacted level. The budget request proposes a consolidated 
appropriation for the various offices comprising the Office of 
the Secretary. The Committee does not approve the request and 
has continued to provide individual appropriations for each 
office. Furthermore, the Committee recommendation continues to 
fund the immediate Office of the Secretary, the immediate 
Office of the Deputy Secretary, and the Executive Secretariat 
instead of the consolidated immediate Office of Secretary and 
Deputy Secretary, as requested.
    The accompanying bill authorizes the Secretary to transfer 
up to 5 percent of the funds from any office of the Office of 
the Secretary to another. The Committee directs the Assistant 
Secretary for budget and programs to submit a quarterly report 
detailing all transfers pursuant to this authority. Also, the 
Committee continues language that permits up to $2,500,000 of 
fees to be credited to the Office of the Secretary for salaries 
and expenses.
    The following table summarizes the Committee's 
recommendation in comparison to the budget estimate:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                           Fiscal year--
                                                                 --------------------------------    Committee
                                                                   2004 enacted                   recommendation
                                                                        \1\        2005 estimate
----------------------------------------------------------------------------------------------------------------
Immediate Office of the Secretary and Deputy Secretary..........  ..............           5,308  ..............
Immediate Office of the Secretary...............................           2,197  ..............           2,400
Immediate Office of the Deputy Secretary........................             696  ..............             725
Office of the General Counsel...................................          15,312          16,920          15,700
Office of the Under Secretary for Transportation Policy.........          12,239          12,918          12,627
Office of the Assistant Secretary for Budget and Programs.......           8,486           8,889           8,600
Office of the Assistant Secretary for Governmental Affairs......           2,286           2,587           2,500
Office of the Assistant Secretary for Administration............          24,467          32,935          24,364
Assistant to the Secretary and Director of Public Affairs.......           1,904           2,034           1,968
Office of the Executive Secretariat.............................           1,438  ..............           1,484
Board of Contract Appeals.......................................             696             801             750
Office of Small and Disadvantaged Business Utilization..........           1,261           1,295           1,290
Office of Intelligence and Security.............................           1,988           2,260           2,200
Office of the Chief Information Officer.........................           7,456          16,742          11,392
                                                                 -----------------------------------------------
      Total.....................................................          80,426         102,689          86,000
----------------------------------------------------------------------------------------------------------------
\1\ Reflects reductions of $477,000 pursuant to section 168 of Public Law 108-199. Does not reflect reduction of
  $2,136,000 pursuant to section 517 of Public Law 108-199.

                   IMMEDIATE OFFICE OF THE SECRETARY

    The Secretary of Transportation provides leadership and has 
the primary responsibility to provide overall planning, 
direction, and control of the Department.
    The Committee recommends $2,400,000 for fiscal year 2005 
for the Immediate Office of the Secretary, $338,000 less than 
the budget request and $203,000 greater than the fiscal year 
2004 enacted level. This recommendation provides in excess of a 
10 percent increase for this office.

                IMMEDIATE OFFICE OF THE DEPUTY SECRETARY

    The Deputy Secretary has the primary responsibility of 
assisting the Secretary in the overall planning and direction 
of the Department.
    The Committee has recommended a total of $725,000 for the 
Immediate Office of the Deputy Secretary, $345,000 less than 
the budget request and $29,000 greater than the fiscal year 
2004 enacted level.

                     OFFICE OF THE GENERAL COUNSEL

    The Office of the General Counsel provides legal services 
to the Office of the Secretary including the conduct of 
aviation regulatory proceedings and aviation consumer 
activities and coordinates and reviews the legal work in the 
chief counsels' offices of the operating administrations. The 
General Counsel is the chief legal officer of the Department of 
Transportation and the final authority within the Department on 
all legal questions.
    The Committee recommends $15,700,000 for expenses of the 
Office of the General Counsel for fiscal year 2005, $1,220,000 
less than the budget request and $388,000 greater than the 
fiscal year 2004 enacted level.

       OFFICE OF THE UNDER SECRETARY OF TRANSPORTATION FOR POLICY

    The Under Secretary for Policy is the chief policy officer 
of the Department and is responsible to the Secretary for the 
analysis, development, and review of policies and plans for 
domestic and international transportation matters. The Office 
administers the economic regulatory functions regarding the 
airline industry and is responsible for international aviation 
programs, the essential air service program, airline fitness 
licensing, acquisitions, international route awards, 
computerized reservation systems, and special investigations 
such as airline delays.
    For fiscal year 2005, the Committee recommendation includes 
$12,627,000 for the Office of the Under Secretary for Policy, 
$219,000 less than the budget request and $388,000 greater than 
the fiscal year 2004 enacted level.

       OFFICE OF THE ASSISTANT SECRETARY FOR BUDGET AND PROGRAMS

    The Assistant Secretary for Budget and Programs is the 
principal staff advisor to the Secretary on the development, 
review, presentation, and execution of the Department's budget 
resource requirements, and on the evaluation and oversight of 
the Department's programs. The primary responsibilities of this 
office are to ensure the effective preparation and presentation 
of sound and adequate budget estimates for the Department, to 
ensure the consistency of the Department's budget execution 
with the action and advice of the Congress and the Office of 
Management and Budget, to evaluate the program proposals for 
consistency with the Secretary's stated objectives, and to 
advise the Secretary of program and legislative changes 
necessary to improve program effectiveness.
    The Committee recommends a total of $8,600,000 for the 
Office of the Assistant Secretary for Budget and Programs, 
$289,000 less than the budget request and $533,000 over the 
fiscal year 2004 enacted level. The Committee is disappointed 
with the level of detail being provided in the budget 
justification and supporting documentation and hopes that the 
fiscal year 2006 presentation will provide a more detailed 
program justification.
    Overdue Congressional Reports.--The Committee continues to 
direct the Assistant Secretary for Budget and Programs to 
report at the beginning of each fiscal quarter on the status of 
all outstanding reports and reporting requirements, including 
how delinquent congressionally mandated or requested reports 
are and an estimated date for delivery.
    Characterization of Budget Requests.--The Committee notes 
the proliferation of the use of the word ``mandatory'' to 
describe certain requested discretionary increases in the 
fiscal year 2005 budget justifications of the Department and 
its modal administrations. The Committee would encourage the 
Department to limit the use of the word ``mandatory'' in 
official budget presentation documents to the identification of 
mandatory spending as recognized by Congress and the Office of 
Management and Budget and as defined in budget acts.

       OFFICE OF THE ASSISTANT SECRETARY FOR GOVERNMENTAL AFFAIRS

    The Assistant Secretary for Governmental Affairs advises 
the Secretary on all congressional and intergovernmental 
activities and on all departmental legislative initiatives and 
other relationships with Members of Congress. The Assistant 
Secretary promotes effective communication with other Federal 
agencies and regional Department officials, and with State and 
local governments and national organizations for development of 
departmental programs; and ensures that consumer preferences, 
awareness, and needs are brought into the decision-making 
process.
    The Committee recommends a total of $2,500,000 for the 
Office of the Assistant Secretary for Governmental Affairs, 
$87,000 less than the budget request and $214,000 over the 
fiscal year 2004 enacted level.

          OFFICE OF THE ASSISTANT SECRETARY FOR ADMINISTRATION

    The Assistant Secretary for Administration is responsible 
for establishing policies and procedures, setting guidelines, 
working with the Operating Administrations to improve the 
effectiveness and efficiency of the Department in human 
resource management, security and administrative management, 
real and personal property management, and acquisition and 
grants management.
    The Committee continues to be concerned about the rapid 
growth in this account. Considering the tight fiscal restraints 
that the Committee is operating under, it is hard to understand 
how the budget of this office continues to explode while at the 
same time its missions and responsibilities have diminished. 
Therefore, the Committee directs the Inspector General to 
review the spending priorities, budget justifications and 
mission of this office for the last three fiscal years to 
determine if the resources requested are commensurate with 
mission responsibilities. The Committee recommends $24,364,000 
for the Office of the Assistant Secretary for Administration, 
$8,571,000 below the budget request and $103,000 below the 
fiscal year 2004 enacted level.

                        OFFICE OF PUBLIC AFFAIRS

    The Director of Public Affairs is the principal advisor to 
the Secretary and other senior Departmental officials and news 
media on public affairs questions. The Office issues news 
releases, articles, fact sheets, briefing materials, 
publications, and audiovisual materials. It also provides 
information to the Secretary on opinions and reactions of the 
public and news media on transportation programs and issues. It 
arranges news conferences and provides speeches, talking 
points, and byline articles for the Secretary and other senior 
departmental officials, and arranges the Secretary's 
scheduling. The Committee recommends $1,968,000 for the Office 
of Public Affairs, $66,000 less than the budget request and 
$64,000 greater than the fiscal year 2004 enacted level.

                         EXECUTIVE SECRETARIAT

    The Executive Secretariat assists the Secretary and the 
Deputy Secretary in carrying out their management functions and 
responsibilities by controlling and coordinating internal and 
external written materials.
    The Committee recommends $1,484,000 for the Executive 
Secretariat, $16,000 less than the budget request and $49,000 
over the fiscal year 2004 enacted level.

                       BOARD OF CONTRACT APPEALS

    The primary responsibility of the Board of Contract Appeals 
is to provide an independent forum for the trial and 
adjudication of all claims by, or against, a contractor 
relating to a contract of any element of the Department, as 
mandated by the Contract Disputes Act of 1978, 41 U.S.C. 601.
    The Committee has provided $750,000 for the Board of 
Contract Appeals Board, $51,000 less than the budget request 
and $54,000 greater than the fiscal year 2004 enacted level.

         OFFICE OF SMALL AND DISADVANTAGED BUSINESS UTILIZATION

    The Office of Small and Disadvantaged Business Utilization 
has primary responsibility for providing policy direction for 
small and disadvantaged business participation in the 
Department's procurement and grant programs, and effective 
execution of the functions and duties under sections 8 and 15 
of the Small Business Act, as amended. The Committee recommends 
$1,295,000, equal to the budget request.

                  OFFICE OF INTELLIGENCE AND SECURITY

    The Office of Intelligence and Security keeps the Secretary 
and his advisors informed on intelligence and security issues 
pertaining to transportation. The Office also ensures that 
transportation policy and programs support the national 
objectives of general welfare, economic growth and stability, 
and the security of the United States.
    The Committee recommends $2,200,000 for the Office of 
Intelligence and Security for fiscal year 2005. This amount is 
$60,000 less than the budget request and $212,000 greater than 
the fiscal year 2004 enacted level.

                OFFICE OF THE CHIEF INFORMATION OFFICER

    The Office of the Chief Information Officer [OCIO] serves 
as the principal adviser to the Secretary on matters involving 
information resources and information systems management.
    The budget request assumes a funding level that is almost 
80 percent more than the fiscal year 2004 enacted level. The 
Committee recommends an appropriation of $11,392,000, 
$5,350,000 less than the budget request and $3,936,000 greater 
than the fiscal year 2004 enacted level. This amount represents 
an increase of over 50 percent over the fiscal year 2004 
enacted level. The Committee is working within an extremely 
tight allocation level and would like to continue to work with 
the CIO to ensure that this office has the resources necessary 
to ensure that the Departments information technology 
infrastructure runs effectively and safely.
    Budget Justification.--The Committee is concerned about the 
lack of budget justification materials that document all 
funding utilized by the OCIO. The Committee directs that the 
Department shall provide in the fiscal year 2006 budget 
submission a detailed justification of all funds that are 
utilized and managed by this office regardless of the source.
    E-Payroll.--The Committee has learned from the Office of 
the Inspector General that the Department lacks a detailed 
action plan as it relates to the E-payroll project. This 
project has experienced, at a minimum, a 1 year delay and a 
cost overrun of $2,000,000 in fiscal year 2004 that may 
increase to as much as $10,000,000. The Committee directs the 
OCIO working with the Assistant Secretary for Administration to 
submit a plan to the House and Senate Committee on 
Appropriations within 90 days of enactment that addresses the 
weaknesses identified by the Inspector General as they relate 
to E-payroll. The plan at a minimum shall include: (1) the 
original cost; (2) the original scope of the project; (3) any 
deviation from the original scope; (4) all cost increases over 
the original cost; (5) the estimated cost of completion; and 
(6) specific steps taken to improve project oversight and 
accountability.

                         OFFICE OF CIVIL RIGHTS

Appropriations, 2004 \1\ \2\............................      $8,518,000
Budget estimate, 2005...................................       8,700,000
Committee recommendation................................       8,700,000

\1\ Reflects reduction of $51,000 pursuant to Division H, section 168 of 
Public Law 108-199.
\2\ Does not reflect reduction of $153,000 pursuant to Division F, 
section 517 of Public Law 108-199.

    The Office of Civil Rights is responsible for advising the 
Secretary on civil rights and equal employment opportunity 
matters, formulating civil rights policies and procedures for 
the operating administrations, investigating claims that small 
businesses were denied certification or improperly certified as 
disadvantaged business enterprises, and overseeing the 
Department's conduct of its civil rights responsibilities and 
making final determinations on civil rights complaints. In 
addition, the Civil Rights Office is responsible for enforcing 
laws and regulations which prohibit discrimination in federally 
operated and federally assisted transportation programs. The 
Committee has provided a funding level of $8,700,000 for the 
Office of Civil Rights, the full amount requested.

                     COMPENSATION FOR AIR CARRIERS

                              (RESCISSION)

Rescissions, 2004.......................................................
Budget estimate, 2005...................................................
Committee recommendation................................   -$235,000,000

    The Air Transportation Safety and System Stabilization Act 
provided $5,000,000,000 to compensate air carriers for direct 
losses incurred during the Federal ground stop of civil 
aviation after the September 11, 2001, terrorist attacks, and 
for incremental losses incurred between September 11 and 
December 31, 2001. There is currently a balance of 
approximately $270,000,000 in the program.
    The bill includes a rescission of $235,000,000 from 
balances available in this account. The Committee is aware that 
a number of issues considered by the Court of Appeals were 
found to be not ripe for resolution at this point in time. 
Therefore, the Committee has retained sufficient resources in 
the event of future claims.

           TRANSPORTATION PLANNING, RESEARCH, AND DEVELOPMENT

Appropriations, 2004 \1\................................     $20,741,000
Budget estimate, 2005...................................      10,800,000
Committee recommendation................................      15,000,000

\1\ Reflects reduction of $123,000 pursuant to Division H, section 168 
of Public Law 108-199. Does not reflect reduction of $314,000 pursuant 
to Division F, section 517 of Public Law 108-199.

    The Office of the Secretary performs those research 
activities and studies which can more effectively or 
appropriately be conducted at the departmental level. This 
research effort supports the planning, research and development 
activities needed to assist the Secretary in the formulation of 
national transportation policies. The program is carried out 
primarily through contracts with other Federal agencies, 
educational institutions, nonprofit research organizations, and 
private firms. The Committee recommends $15,000,000 for 
transportation planning, research, and development, $5,741,000 
less than the fiscal year 2004 enacted level and $4,200,000 
more than the President's budget request. The Committee directs 
funding to be allocated to the following projects that are 
listed below:

------------------------------------------------------------------------
                         Project                              Amount
------------------------------------------------------------------------
Circumpolar Infrastructure Task Force of the Arctic             $450,000
 Council and Northern Forum, AK.........................
DOT privacy assessment..................................         750,000
Inland waters freight mobility study, AL................         750,000
SDSU instrument training capital initiative, SD.........         200,000
UI NIATT transportation infrastructure research and              300,000
 technology transfer, ID................................
Transportation, infrastructure, and logistics research..         750,000
University of Nebraska--Kearney agricultural                     500,000
 transportation pilot project, NE.......................
Western Washington University Transportation and Border        1,000,000
 Research Institute, WA.................................
Yellow Bend Port feasibility study, AR..................         300,000
------------------------------------------------------------------------

                          WORKING CAPITAL FUND

Limitation, 2004 \1\....................................    $116,715,000
Budget estimate, 2005 \2\...............................     151,054,000
Committee recommendation................................     151,054,000

\1\ Does not reflect reduction of $17,816,000 pursuant to Division F, 
section 517 of Public Law 108-199.
\2\ Proposed without limitation.

    The Working Capital Fund [WCF] provides common 
administrative services to the Department's operating 
administrations and other Federal entities. The services are 
centrally performed in the interest of economy and efficiency 
and are funded through negotiated agreements with Department 
operating administrations and other Federal customers, and are 
billed on a fee-for-service basis to the maximum extent 
possible.
    The budget request proposes to remove the obligation 
limitation on the Working Capital Fund on services to the 
operating administrations of the Department. The Committee 
believes that the discipline of an annual limitation is 
necessary to keep assessments and services of the Working 
Capital Fund in line with costs. The accompanying bill provides 
a limitation of $151,054,000 on activities financed through the 
Working Capital Fund. As in past years, the limitation shall 
apply only to the Department and not to other entities. The 
Committee directs that services shall be provided on a 
competitive basis to the maximum extent possible.

               MINORITY BUSINESS RESOURCE CENTER PROGRAM

Appropriations, 2004 \1\................................        $895,000
Budget estimate, 2005...................................         900,000
Committee recommendation................................         900,000

\1\ Reflects reduction of $5,000 pursuant to Division F, section 168 of 
Public Law 108-199.

    The Minority Business Resource Center of the Office of 
Small and Disadvantaged Business Utilization provides 
assistance in obtaining short-term working capital for 
disadvantaged, minority, and women-owned businesses. The 
program enables qualified businesses to obtain loans at prime 
interest rates for transportation-related projects.
    In fiscal year 2001, the short-term lending program was 
converted from a direct loan program to a guaranteed loan 
program. In fiscal year 2005, the program will continue to 
focus on providing working capital to disadvantaged, minority, 
and women-owned businesses in order to strengthen their 
competitive and productive capabilities. Since fiscal year 
1993, the short-term lending program has been a separate line 
item appropriation, which segregated such activities in 
response to changes made by the Federal Credit Reform Act of 
1990. The limitation on guaranteed loans under the Minority 
Business Resource Center is at the administration's requested 
level of $18,367,000.
    Of the funds appropriated, $500,000 covers subsidy costs 
and $400,000 is for administrative expenses to carry out the 
Guaranteed Loan Program.

                       MINORITY BUSINESS OUTREACH

Appropriations, 2004 \1\................................      $2,982,000
Budget estimate, 2005...................................       3,000,000
Committee recommendation................................       3,000,000

\1\ Reflects reduction of $18,000 pursuant to Division H, section 168 of 
Public Law 108-199.
\2\ Does not reflect reduction of $24,000 pursuant to Division F, 
section 517 of Public Law 108-199.

    This appropriation provides contractual support to assist 
small, women-owned, Native American, and other disadvantaged 
business firms in securing contracts and subcontracts arising 
out of projects that involve Federal spending. It also provides 
support to historically black and Hispanic colleges. Separate 
funding is requested by the administration since this program 
provides grants and contract assistance that serves Department-
wide goals and not just OST purposes.
    Minority Business Contractor List.--The Committee directs 
the Office of Minority Business Outreach to compile a master 
list of qualified minority business contractors that shall be 
posted on the Departments web page no later than May 2, 2005.

                       NEW HEADQUARTERS BUILDING

Appropriations, 2004....................................................
Budget estimate, 2005...................................    $160,000,000
Committee recommendation................................................

    This appropriation finances the cost to outfit and rent a 
new Department of Transportation headquarters building. The 
proposed concept would consolidate all of the department's 
headquarters operating administration functions (except FAA), 
from various locations in the Washington, DC, metropolitan area 
into leased buildings within the central employment area of the 
District of Columbia.
    While the proposed headquarters building would consolidate 
most of the Department of Transportation in one location, it 
comes at a huge price. Under this proposal, the Federal 
Government would pay in excess of $1,250,000,000 over the next 
15 years to customize and lease space in this building. This 
lease option would cost the Federal Government approximately 
$513,000,000 more than the projected costs of constructing a 
new Federal building.
    In fiscal year 2004, the Department of Transportation was 
appropriated $42,000,000 under GSA's Federal Buildings Fund. 
GSA later reprogrammed an additional $3,000,000 toward the new 
headquarters building. The Committee is aware of the strict 
timing issues associated with the construction and development 
of the new headquarters building as well as the need for better 
office space.
    The Committee denies the funding for the new building 
without prejudice. The Committee notes, however, that of the 
funds appropriated in fiscal year 2004, approximately 
$28,000,000 remains unobligated as of June 30, 2004. Therefore, 
the Committee directs the Department to use the unobligated 
fiscal year 2004 funds to extend the Department's current lease 
at the Nassif building. In addition, with the remaining funds--
approximately $9,000,000--the Department is encouraged to 
evaluate the existing space at the Nassif building for 
modifications to better suit the long-term needs of the 
Department and to continue to work with the GSA to evaluate 
costs and options to meet the Department's future space 
requirements.

                        PAYMENTS TO AIR CARRIERS

                    (AIRPORT AND AIRWAY TRUST FUND)

----------------------------------------------------------------------------------------------------------------
                                                              Appropriations \2\   Mandatory \3\       Total
----------------------------------------------------------------------------------------------------------------
Appropriations, 2004 \1\....................................       $51,693,000       $50,000,000    $101,693,000
Budget estimate, 2005.......................................  ..................      50,000,000      50,000,000
Committee recommendation....................................        52,000,000        50,000,000     102,000,000
----------------------------------------------------------------------------------------------------------------
\1\ Reflects reduction of $307,000 pursuant to Division H, section 168 of Public Law 108-199.
\2\ Payments to Air Carriers (Airport and Airway Trust Fund).
\3\ From overflight fees.

    The Essential Air Service [EAS] and Rural Airport 
Improvement Program provides funds directly to commuter/
regional airlines to provide air service to small communities 
that otherwise would not receive air service and for rural 
airport improvement as provided by the 1996 Federal Aviation 
Reauthorization Act.
    The Federal Aviation Reauthorization Act of 1996 authorizes 
user fees for flights that fly over, but do not land in, the 
United States. The first $50,000,000 of each year's fees were 
to go directly to carry out the Essential Air Service Program 
and, to the extent not used for essential air service, to 
improve rural airport safety. If $50,000,000 in fees is not 
available, then the funds must be made available from 
appropriations otherwise made available to the FAA 
Administrator.
    For fiscal year 2005, the administration has proposed a 
$50,000,000 EAS program, of which $36,000,000 is to be funded 
from overflight fees credited to the Airport and Airway Trust 
Fund and $14,000,000 is to be derived from overflight fees 
previously collected and transferred to the Payments to Air 
Carriers account. The administration is also proposing major 
revisions to the program that would repeal the statutory 
entitlement that certain communities have to receiving at least 
a minimum level of scheduled air service. Specifically, the 
Department has proposed to continue to subsidize air service to 
the extent of 90 percent of the total subsidy required for the 
most isolated communities. Communities that are within certain 
distances of major airports would qualify for surface 
transportation subsidy. Communities within: (1) 100 highway 
miles of a large or medium hub airport; (2) 75 highway miles of 
a small hub; or (3) 50 highway miles of a non-hub airport with 
jet service would qualify for a surface transportation subsidy 
and would be required to contribute at least 50 percent of the 
subsidy. At all other subsidized communities, the 
administration would offer an array of options, including 
paying for 75 percent of the cost of the traditional EAS-type 
scheduled service. In addition, the administration would work 
with the communities and State departments of transportation to 
procure charter service, single-engine, single-pilot service, 
regionalized service or ground transportation in cases where 
these alternative services would be more responsive to 
communities' needs.
    The Committee recommendation provides a total of 
$102,000,000 for the Essential Air Service, which is comprised 
of an appropriation of $52,000,000 and $50,000,000 from 
mandatory funding. This level of funding, along with available 
carryover balances in the program from previous appropriations, 
is sufficient to continue subsidies for all current points 
receiving the service. The Committee has not included the 
requested general provision to restructure the EAS program.
    The following table reflects the points currently receiving 
service and the annual rates as of February 1, 2004 in the 
continental United States and Hawaii.

                          FISCAL YEAR 2005 SUBSIDIZED ESSENTIAL AIR SERVICE COMMUNITIES
----------------------------------------------------------------------------------------------------------------
                                  Est. Miles to     Avg. Daily
                                   Nearest Hub     Enplnmnts at     Ann. Sbsdy      Subsidy per     Total Psgrs
       States/Communities         (S, M, or L)   EAS Point (YE 9/  Rates at 3/1/     Passenger     (YE 9/30/03)
                                       \1\            30/03)           2004
----------------------------------------------------------------------------------------------------------------
ALABAMA:
    Muscle Shoals..............              60             16.6      $1,284,408         $123.50          10,400
ARIZONA:
    Kingman....................             103              7.4         747,401          161              4,643
    Page.......................             280             12.4       1,552,631          200              7,760
    Prescott...................             102             12.8         747,401           93              8,000
    Show Low...................             168              5.7         692,423          194              3,569
ARKANSAS:
    El Dorado..................             108              7.5         898,283          192              4,679
    Harrison...................              77              8.7         989,018          181              5,463
    Hot Springs................              53             10.5         989,018          151              6,571
    Jonesboro..................              79              5.9         898,283          245              3,669
CALIFORNIA:
    Crescent City..............             362             34.9         333,717           15             21,825
    Merced.....................             114             24.2         844,479           56             15,142
COLORADO:
    Alamosa....................             162             11.6       1,114,753          154              7,235
    Cortez.....................             258             21.1         896,007           68             13,189
    Pueblo.....................              43              6.0         883,016          236              3,748
GEORGIA:
    Athens.....................              72             21.7   \2\ 1,000,000           74             13,565
HAWAII:
    Hana.......................              32             10.3         945,029          147              6,440
    Kalaupapa..................  ..............              4.3         483,982          180              2,694
    Kamuela....................              39              8.9         745,773          134              5,549
ILLINOIS:
    Decatur....................             120             40.3         917,077           36             25,205
    Marion.....................             122             34.0       1,253,076           59             21,303
    Quincy.....................             108             26.4       1,109,530           67             16,512
IOWA:
    Burlington.................              96             24.1         999,412           66             15,064
    Fort Dodge.................              94             22.7       1,088,354           76             14,241
    Mason City.................             128             43.7       1,088,354           40             27,382
KANSAS:
    Dodge City.................             149              6.8       1,224,838          286              4,277
    Garden City................             201             19.6       1,224,838          100             12,287
    Great Bend.................             120              1.3         547,941          659                831
    Hays.......................             180             16.8       1,301,876          124             10,495
    Liberal....................             153              7.9         684,578          138              4,944
    Manhattan..................             120             22.0         360,803           26             13,801
    Salina.....................              93              6.1         360,803           95              3,812
KENTUCKY:
    Owensboro..................             105             18.4       1,032,673           90             11,513
MAINE:
    Augusta....................              68             10.3       1,069,228          166              6,438
    Bar Harbor.................             157             32.4       1,069,228           53             20,260
    Presque Isle...............             276             45.1       1,166,135           41             28,214
    Rockland...................              80             18.3       1,069,228           93             11,468
MICHIGAN:
    Escanaba...................             114             26.7     \2\ 300,000           18             16,739
    Ironwood...................             218              6.1         479,879          126              3,797
    Iron Mountain..............             101             17.5         478,693           44             10,930
    Manistee...................             180              4.7         485,545          164              2,954
MINNESOTA:
    Hibbing....................             178             27.9       1,048,612           60             17,440
    Thief River Falls..........             302             12.8         707,017           88              8,035
MISSISSIPPI:
    Laurel/Hattiesburg.........              90             33.9       1,056,991           50             21,218
MISSOURI:
    Cape Girardeau.............             123             23.6         990,694           67             14,761
    Ft. Leonard Wood...........             130             18.1         885,918           78             11,317
    Kirksville.................             137              6.9         968,249          223              4,348
MONTANA:
    Glasgow....................             280              6.8         823,591          195              4,230
    Glendive...................             223              3.1         823,591          428              1,925
    Havre......................             248              3.8         823,591          344              2,391
    Lewistown..................             125              2.7         823,591          484              1,702
    Miles City.................             146              3.5         823,591          378              2,178
    Sidney.....................             273              6.2         823,591          212              3,877
    West Yellowstone...........             315            127.6         418,488            5             79,860
    Wolf Point.................             293              4.7         823,591          277              2,971
NEBRASKA:
    Alliance...................             256              3.3         542,413          265              2,050
    Chadron....................             311              3.7         542,413          233              2,333
    Grand Island...............             140             13.6   \2\ 1,000,000          117              8,515
    Kearney....................             181             16.5       1,019,014           99             10,309
    McCook.....................             271              5.3       1,398,330          419              3,337
    Norfolk....................             109              3.9         751,373          309              2,429
    North Platte...............             277             18.3         751,373           66             11,432
    Scottsbluff................             109             24.1   \2\ 1,000,000           66             15,102
NEVADA:
    Ely........................             237              2.6         698,078          434              1,608
NEW HAMPSHIRE:
    Lebanon....................              75             78.1       1,084,930           22             48,912
NEW MEXICO:
    Alamogordo.................              91              3.5         849,235          388              2,186
    Carlsbad...................             141              8.8         560,070          101              5,533
    Clovis.....................             103              6.0       1,118,197          299              3,744
    Hobbs......................              90              2.6         560,318          347              1,615
    Silver City................             133              5.4         935,667          279              3,358
NEW YORK:
    Massena....................             143              7.7         429,337           89              4,830
    Ogdensburg.................             123              6.3         429,337          110              3,920
    Plattsburgh................              78              4.1         721,198          284              2,539
    Saranac Lake...............             126              6.9         721,198          166              4,341
    Watertown..................              65              9.9         429,337           69              6,199
NORTH DAKOTA:
    Devils Lake................             405              5.5         869,635          254              3,427
    Dickinson..................             319             10.8       1,540,089          229              6,736
    Jamestown..................             332              6.0         869,635          231              3,766
OKLAHOMA:
    Enid.......................              84              7.3         977,302          213              4,588
    Ponca City.................              81              5.9         977,302          266              3,668
PENNSYLVANIA:
    Altoona....................             108             23.0         546,159           38             14,394
    Johnstown..................              82             32.7         301,417           15             20,464
    Oil City/Franklin..........              86             10.3         874,067          135              6,453
PUERTO RICO:
    Ponce......................              77              9.4         552,388           94              5,856
SOUTH DAKOTA:
    Brookings..................             206              2.1         955,726          713              1,340
    Huron......................             279              4.2         955,726          360              2,657
    Pierre.....................             397             17.3         318,861           29             10,841
    Watertown..................             207             41.0       1,871,825           73             25,687
TENNESSEE:
    Jackson....................              85             15.2       1,156,325          122              9,493
TEXAS:
    Brownwood..................             145              6.1         964,677          253              3,807
    Victoria...................             108             65.2         464,869           11             40,831
UTAH:
    Cedar City.................             178             27.5         770,285           45             17,221
    Moab.......................             240              5.5         674,804          195              3,452
    Vernal.....................             174              6.5         595,436          146              4,079
VERMONT:
    Rutland....................             118              6.3         804,102          203              3,967
VIRGINIA:
    Staunton...................             133             22.0         615,578           45             13,769
WASHINGTON:
    Moses Lake.................             108             16.5       1,344,557          131             10,299
WEST VIRGINIA:
    Beckley....................             181              7.2       1,033,847          230              4,486
    Bluefield..................             145              5.0       1,033,847          329              3,144
    Greenbrier.................             172              8.0         683,212          136              5,008
WYOMING:
    Laramie....................             144             27.1         366,473           22             16,963
    Riverton...................             310             31.5   \2\ 1,000,000           51             19,725
    Rock Springs...............             184             27.3         141,240            8             17,078
    Worland....................             164              8.0         353,345           71              4,985
----------------------------------------------------------------------------------------------------------------
\1\ Hub classifications are subject to change annually based on the overall enplanement levels at the hubs and
  at all airports Nationwide.
\2\ Estimate.

                    Federal Aviation Administration

    The Federal Aviation Administration is responsible for the 
safe movement 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 agency 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 transferred to a new, 
independent agency named the Civil Aeronautics Authority.
    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 [DOT] began its operations in 1967, the Federal 
Aviation Agency was renamed the Federal Aviation Administration 
[FAA] and became one of several modal administrations within 
DOT. The Civil Aeronautics Board was later phased out with 
enactment of the Airline Deregulation Act of 1978, and ceased 
to exist in 1984. Responsibility for the investigation of civil 
aviation accidents was given to the National Transportation 
Safety Board in 1967. 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.
    The total recommended program level for the FAA for fiscal 
year 2005 amounts to $13,913,427,000, which is $35,429,000 more 
than the fiscal year 2004 enacted level. The following table 
summarizes the Committee's recommendations:

----------------------------------------------------------------------------------------------------------------
                                                                 Fiscal year      Fiscal year
                           Program                               2004 enacted     2005 budget       Committee
                                                                     \1\            estimate      recommendation
----------------------------------------------------------------------------------------------------------------
Operations \2\...............................................   $7,486,493,000   $7,849,000,000   $7,784,000,000
    General fund appropriation...............................    3,013,043,000    1,847,000,000    2,526,990,000
    Trust fund appropriation \3\.............................    4,473,450,000    6,002,000,000    4,959,503,000
Facilities and equipment \4\.................................    2,892,831,000    2,500,000,000    2,500,000,000
Research, engineering and development........................      118,734,000      117,000,000      129,427,000
Grants-in-Aid for airports \5\...............................    3,379,940,000    3,500,000,000    3,500,000,000
                                                              --------------------------------------------------
      Total available budget resources.......................   13,877,998,000   13,966,000,000   13,913,427,000
----------------------------------------------------------------------------------------------------------------
\1\ Reflects reduction of $82,366,000 pursuant to Division H, section 168 of Public Law 108-199.
\2\ Does not reflect reduction of $7,286,000 pursuant to Division F, section 517 of Public Law 108-517.
\3\ Includes $2,000,000 for the Bureau of Transportation Statistics in fiscal year 2005.
\4\ Does not reflect fiscal year 2003 rescission of $30,000,000 of unobligated balances pursuant of Public Law
  108-199.
\5\ Does not include appropriation of $1,988,200 for Ft. Worth Alliance Airport pursuant to Division H, section
  167 of Public Law 108-199.

                               OPERATIONS

Appropriations, 2004 \1\................................  $7,486,493,000
Budget estimate, 2005...................................   7,849,000,000
Committee recommendation................................   7,784,000,000

\1\Reflects reduction of $44,432,000 pursuant to Division H, section 168 
of Public Law 108-199. Does not reflect reduction of $7,286,000 pursuant 
to Division F, section 517 of Public Law 108-199.

    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, commercial space, medical, engineering and 
development programs, as well as policy oversight and agency 
management functions. The operations appropriation includes the 
following major activities: (1) the air traffic organization 
which operates, on a 24-hour daily basis, the national air 
traffic system, including the establishment and maintenance of 
a national system of aids to navigation, the development and 
distribution of aeronautical charts and the administration of 
acquisition, and research and development programs; (2) 
regulation and certification activities including establishment 
and surveillance of civil air regulations to assure safety and 
development of standards, rules and regulations governing the 
physical fitness of airmen as well as the administration of an 
aviation medical research program; (3) the office of commercial 
space transportation; (4) headquarters, administration and 
other staff and support offices.
    The Committee recommends $7,784,000,000 for FAA operations, 
an increase of $297,507,000 above the level provided for fiscal 
year 2004 and $65,000,000 below the President's budget request. 
The Committee notes that the recommended rate of increase for 
this appropriation is approximately 4 percent, which is three 
times the government-wide average budgetary increase of 1.5 
percent.
    The bill derives $4,959,503,000 of the total appropriation 
from the airport and airway trust fund. The level is consistent 
with the requirements of current law and is $1,042,497,000 less 
than the budget estimate. The balance of the appropriation will 
be drawn from the general fund of the Treasury.
    As in past years, FAA is directed to report immediately to 
the House and Senate Committees on Appropriations in the event 
resources are insufficient to operate a safe and effective air 
traffic control system.
    The following table summarizes the Committee's 
recommendation in comparison to the budget estimate:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                       Fiscal year--
                                                            -----------------------------------     Committee
                                                                                 2005 budget     recommendations
                                                             2004 enacted \1\      estimate
----------------------------------------------------------------------------------------------------------------
Air Traffic Organization [ATO].............................   \2\ (6,217,137)        6,522,109       (6,492,102)
Air Traffic Services.......................................        6,001,263   ...............        6,267,870
Regulation and Certification...............................          871,148           905,194          905,194
Research and Acquisitions..................................          215,874   ...............          224,239
Commercial Space Transportation............................           11,674            11,941           11,674
Regions and Center Coordination............................           86,049   ...............           88,479
Human Resources............................................           74,955   ...............           78,660
Financial Services.........................................           48,719   ...............           53,624
Staff Offices..............................................      \3\ 140,120           409,756          150,739
Information Services/CIO...................................           29,405   ...............           36,254
Undistributed reduction....................................  ................  ...............          -32,733
                                                            ----------------------------------------------------
      TOTAL OPS............................................        7,479,207         7,849,000        7,784,000
----------------------------------------------------------------------------------------------------------------
\1\ Reflects reduction of $44,432,000 pursuant to Division H, section 168 of Public Law 108-199, but does not
  reflect reduction of $7,286,000 pursuant to Division F, section 517 of Public Law 108-199.
\2\ The fiscal year 2005 request proposes to combine Air Traffic Services and Research and Acquisitions in Air
  Traffic Organization.
\3\ The fiscal year 2005 request proposes Financial Services, Human Resource Management, Regions and Centers
  Operations, and Information Services be combined with other Staff Offices.

    Air Traffic Services.--The Committee recommends 
$6,267,870,000 for the operation and maintenance of the 
national air traffic control and flight service system. The 
recommended level is $266,607,000 more than the fiscal year 
2004 enacted level. The Committee is confident that although 
constrained, the recommended funding level is sufficient to 
continue safe and efficient management of the National Airspace 
System [NAS]. The recommendation gives the Administrator great 
flexibility to manage the reduction below the budget request.
    Controller Hiring Initiative.--Attrition in air traffic 
controller workforce is expected to rise sharply in upcoming 
years as controllers hired after the 1981 controllers' strike 
become eligible for retirement. The FAA currently estimates 
that nearly 7,100 controllers or nearly half its workforce 
could leave the Agency between fiscal years 2004 and 2012.
    The Committee is aware that the number of controllers that 
will need to be hired depends on many factors, including future 
air traffic levels, new technologies, and initiatives that FAA 
undertakes to make its processes for hiring, placing, and 
training new controllers more efficient and cost effective. 
Nevertheless, the Committee believes it is prudent to begin 
hiring and training controllers in anticipation of an increased 
number of retiring controllers. The Committee recommends 
$10,000,000 to hire and train additional air traffic 
controllers.
    Contract Tower Program.--The Committee continues to support 
the contract tower program and the cost-sharing program as a 
cost-effective way to enhance air traffic safety at smaller 
airports. For the past 22 years, the contract tower program has 
enhanced aviation safety by providing essential air traffic 
services at smaller airports that in many cases would not 
otherwise have a tower. The program consistently has received 
high marks for customer service from aviation users, and has 
been an incentive to aid small airports with retaining and 
developing commercial air service and corporate aviation. 
Currently, 223 smaller airports participate in the program, 
representing 45 percent of all control towers in the United 
States. Federal contract towers handle approximately 25 percent 
of control tower aircraft operations for about 10 percent of 
FAA's budget to operate all control towers in the national 
airspace system.
    The safety and efficiency record of the program for the 
past two decades has been validated numerous times by the DOT 
Office of Inspector General [OIG] and FAA safety audits, as 
well as by the National Transportation Safety Board. The OIG 
also has verified the significant cost-effectiveness of the 
program. All Federal contract controllers are FAA certified air 
traffic controllers who meet the identical training and 
operating standards as other FAA controllers. Contract tower 
controllers operate together with FAA-staffed facilities 
throughout the country as part of a unified national air 
traffic control system. The FAA exercises management and 
oversight over all aspects of the program, including operating 
procedures, staffing plans, certification of contract 
controllers, security and facility evaluations. Without a 
Federal program that provides financial assistance, sets safety 
and training standards, certifies operations and monitors all 
aspects of contract tower facilities, many of these towers 
would have to close.
    The Committee recommends $86,000,000 to fund the existing 
contract tower program, the remaining eligible non-Federal 
towers not currently operated by FAA, and non-towered airports 
eligible for the program. Of the funds provided for the 
contract tower program, $500,000 is to deploy computer-based 
interactive training systems for controllers at FAA contract 
towers. In designing the system, the FAA should utilize 
existing interactive computer-based training and testing 
systems in use at airports. In addition to these resources, the 
Committee has provided $7,000,000 for the contract tower cost-
sharing program.
    ATO Resource Tool.--The FAA must deploy and use the ATO 
resource tool [ART], its labor distribution system, to have the 
accurate cost and workforce data that is necessary to 
effectively manage the expected surge in controller attrition. 
According to the DOT Inspector General, ART could have provided 
credible workforce data for addressing concerns about 
controller staffing, related overtime expenditures, and 
determining how many controllers are needed and where. However, 
the Committee understands that deployment has now been on hold 
for almost 2 years while FAA and the controllers' union 
continue negotiations over its full implementation. Considering 
the expected surge in controller retirements over the next 
several years, the Committee strongly urges the Agency and 
union to resolve their differences as quickly as possible so 
that all parties have objective data to determine how many 
controllers are needed and where. The Committee also expects 
ART to provide information on the time controllers spend 
controlling aircraft and conducting other duties in order to 
utilize the controller workforce more productively.
    Airway Facility Training.--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 response to the growing demands of 
NAS modernization, the FAA recognized the need to establish a 
core set of information technology skills for the AF technical 
workforce. The Committee is aware that an analysis of AF 
technical workforce responsibilities was accomplished in order 
to identify the core skills required for the performance of 
their respective positions and that the FAA agreed to revise 
training with a focus on timely and efficient delivery to 
accommodate NAS modernization. Unfortunately, despite this 
agreement to provide at least 20 percent of the workforce with 
these skills each year, less than 40 percent of the current AF 
workforce has received the training. The Committee strongly 
encourages the agency to do whatever is necessary to provide 
the AF technical workforce with necessary core skills training 
and certification, and to evaluate shifting the technical 
training focus to a decentralized model in fiscal year 2005.
    Medallion Program.--The Committee recommends $3,000,000 to 
continue the Medallion program, the same as the fiscal year 
2004 level. Strengthening the Medallion program is a key safety 
initiative in the FAA's current strategic plan.
    Alien Species Action Plan [ASAP].--The Committee provides 
$3,000,000 out of available funds to continue the 
implementation of the Alien Species Action Plan which was 
adopted by the FAA as part of its August 26, 1998, Record of 
Decision approving certain improvements at Kahului Airport on 
the Island of Maui. These funds will be used to complete 
capital projects that were started in fiscal year 2002 and 
continue the operational requirements imposed by the ASAP.
    National Airspace Redesign.--Of the funds provided, 
$4,000,000 shall be for the NY/NJ Airspace Redesign effort and 
shall not be reprogrammed by the FAA for other activities, 
including airspace redesign activities outside the NY/NJ metro 
area. As the FAA moves forward with its redesign program in the 
New York/New Jersey and Philadelphia area, the Committee 
encourages the FAA, where appropriate, to consider air noise 
impacts as part of the redesign effort.
    Non-Precision GPS Approaches.--The Committee recommendation 
encourages to continue work associated with increasing the 
number of non-precision GPS instrument approaches developed and 
published for airports that are not Part 139 certificated.
    Accounting Operations.--The Committee is aware that the FAA 
has proposed to consolidate accounting operations in eight 
offices across the country at the Finance Center at Oklahoma 
City. The goals of improving financial information and 
implementing standardized accounting practices through process 
improvement can be achieved without relocation. The Committee 
directs the FAA not to proceed with this consolidation.

                             BILL LANGUAGE

    Second Career Training Program.--The Committee has included 
bill language which was included in the President's budget 
request which prohibits the use of appropriated funds for the 
second career training program. This prohibition has been 
carried in annual appropriations Acts for a number of years.
    Sunday Premium Pay.--The bill retains a provision, first 
included in the fiscal year 1995 appropriations Act, which 
prohibits FAA from paying Sunday premium pay, except in those 
cases where the individual actually worked on a Sunday. This 
provision is identical to that which was in effect for fiscal 
years 1995-2004. It was requested by the administration for 
fiscal year 2005.
    Manned Auxiliary Flight Service Stations.--The Committee 
has retained bill language that was requested by the 
administration to prohibit the use of funds for operating a 
manned auxiliary flight service station in the contiguous 
United States. There is no funding provided in the Operations 
account for such stations in fiscal year 2005.
    Aeronautical Charting and Cartography.--The bill 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.

                        FACILITIES AND EQUIPMENT

                    (AIRPORT AND AIRWAY TRUST FUND)

Appropriations, 2004 \1\................................  $2,862,831,000
Budget estimate, 2005...................................   2,500,000,000
Committee recommendation................................   2,500,000,000

\1\ Reflects reduction of $47,169,000 pursuant to Division H, section 
168 of Public Law 108-199. Does not reflect rescission of $30,000,000 of 
unobligated balances pursuant to Public Law 108-199.

    The Facilities and Equipment [F&E] appropriation provides 
funding for modernizing and improving air traffic control and 
airway facilities, equipment, and systems. 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. The program aims to keep pace 
with the increasing demands of aeronautical activity and remain 
in accordance with the Federal Aviation Administration's 
comprehensive 5-year capital investment plan [CIP].
    The Committee recommends an appropriation of $2,500,000,000 
for the Facilities and Equipment of the Federal Aviation 
Administration. The Committee recommendation is the same as the 
budget estimate and is $362,831,000 less than the fiscal year 
2004 enacted level. The bill provides that $2,071,300,000 is 
available for obligation until September 30, 2007, and 
$428,700,000 is available until September 30, 2005.
    The Committee recommendations focus on reinforcing greater 
accountability and mission goals, and strive for better or 
alternative ways of improving and modernizing the system. 
Furthermore, in reviewing the budget estimate for this account, 
the Committee has placed priority on funding programs necessary 
to upgrade current equipment for future capacity requirements 
or programs that will enable the FAA to proceed with 
initiatives to improve safety and initiatives to alleviate 
congestion, reduce aircraft spacing, and increase the 
efficiency of the NAS.
    F&E Management.--The Federal Aviation Administration's most 
recent estimate projects expenditures of approximately 
$43,523,000,000 on the air traffic control modernization effort 
from 1981 through 2005. The estimate for the modernization of 
the system has continued to evolve and escalate since 1981.
    The Committee is concerned about the overhead and related 
costs in this account. Data provided by FAA shows that 
personnel and related expenses consume a greater share of the 
F&E appropriation each year. In fiscal year 1994, personnel 
expenses accounted for about 9 percent but have grown to 13 
percent of F&E in fiscal year 2004. Under the budget estimate 
for fiscal year 2005, the FAA requests growth for direct 
personnel and related expenses to almost 18 percent of the F&E 
appropriation. As dramatic as this growth has been, data 
accounting for only the direct personnel costs understate a 
true assessment of the administrative overhead of these 
activities. Most individual budget lines in this account also 
assume funding in the range of 10 to 25 percent for program and 
contract management. Further compounding this trend, the F&E 
account also provides resources for support contracts and 
system engineering support, and technical support services 
among other things. All of these costs ultimately translate 
into less funds for specific air traffic modernization 
projects.


    Just as growth in personnel and related expenses reduce the 
amount of funding that is available for procurement, cost 
escalation and delays in a few large acquisition programs are 
severely limiting the resources available for procuring and 
installing other equipment that will modernize the NAS. For 
example, funding for one new program, such as ERAM, and funding 
for other programs like WAAS and STARS that have chronic 
schedule delays and cost overruns threaten to take a 
disproportionate share of funding for modernization.
    The following table displays the aggregate amount of 
funding projected for just these three programs as a percentage 
of the total amount of F&E funding each year for the next 5 
fiscal years:



    The FAA faces difficult funding decisions on a number of 
fronts as a result of its inability to effectively manage 
large-scale acquisitions. In fact, the FAA has not delivered 
any major system within initial cost, schedule, or performance 
goals due primarily to a complete failure to impose acquisition 
management discipline. This is particularly perplexing 
considering the Congress provided FAA two unprecedented and 
powerful tools in 1996 by granting relief from Federal 
personnel and procurement rules, both of which the Agency 
believed were hindering its ability to modernize the National 
Airspace System. FAA has not taken full advantage of this 
flexibility. While contracts are awarded faster, there has been 
little bottom line impact on cost and schedule problems with 
major acquisitions remain the norm. For example, last year the 
DOT Inspector General analyzed 20 major acquisitions and found 
that 14 of these projects experienced cost overruns of over 
$4,300,000,000, which is more than the annual appropriation for 
modernizing the NAS.
    Clearly, the FAA must take immediate steps to control 
personnel cost growth and to impose budget and schedule 
discipline on major acquisition programs. Our Nation's air 
traffic control system has failed to keep up with the 
increasing and changing demands, and the FAA will not be able 
to meet future demands and needs without changing and improving 
the ways we modernize the NAS. This challenge is unlikely to be 
met without changing the FAA culture. Ultimately, changing the 
FAA culture is a long term proposition, but the failure to do 
so will harm the aviation industry, inconvenience the flying 
public, and serve as an obstacle to national economic growth.
    Budget Activities Format.--Beginning in fiscal year 2003, 
the Federal Aviation Administration has formatted the budget 
activities of the Facilities and Equipment budget request in 
terms of strategic goals. If the purpose of that structure is 
to display the link between budget and performance, then the 
FAA has failed to meet that objective. Clearly, the budget 
presentation for the past 3 fiscal years has served only to 
obfuscate the significant programmatic and execution issues 
facing the FAA and has not facilitated any meaningful program 
benefits. One has only to review the agency's highest cost 
programs to realize that the current topical groupings are not 
relevant to budgetary, programmatic, or operational 
considerations.
    The Committee recommendation is presented in a format used 
in prior appropriations reports to better assist the FAA in 
managing the Facilities and Equipment capital program. The 
Committee greatly prefers the following structure and believes 
that it offers a better delineation between developmental 
initiatives, procurement activities, infrastructure 
requirements, and personnel costs. The Committee directs that 
future requests for the Facilities and Equipment account 
conform to this format.
    The Committee's recommended distributions of the funds for 
each of the projects funded by the appropriation:

                                            FACILITIES AND EQUIPMENT
----------------------------------------------------------------------------------------------------------------
                                                                            Fiscal Year
                                                                 --------------------------------    Committee
                                                                   2004 enacted    2005 estimate  recommendation
----------------------------------------------------------------------------------------------------------------
Engineering Development, Test and Evaluation:
    Advanced Technology Development & Prototyping...............     $70,100,000     $37,300,000     $56,575,000
    Safe Flight 21..............................................      30,300,000      40,454,000      44,454,000
    Aeronautical Data Link (ADL) Applications...................      10,000,000       4,000,000       4,000,000
    Next Generation VHF Air/Ground Communications System              85,850,000      31,950,000      29,950,000
     (NEXCOM)...................................................
    Free Flight Phase 1.........................................      32,000,000  ..............  ..............
    Free Flight Phase 2.........................................     100,000,000      92,500,000      92,500,000
    Louisville, KY technology demonstration.....................       8,000,000  ..............  ..............
    Local Area Augmentation System..............................      34,400,000  ..............      10,000,000
    GCNSS.......................................................      20,000,000  ..............      20,000,000
    NAS Improvement of System Support Laboratory................  ..............       1,000,000       1,000,000
    Technical Center Facilities.................................      13,000,000      12,000,000      12,000,000
    Technical Center Building and Plant Support.................       3,500,000       4,300,000       4,300,000
                                                                 -----------------------------------------------
      Total Activity 1..........................................     407,150,000     223,504,000     274,779,000
                                                                 ===============================================
Air Traffic Control Facilities and Equipment:
    En Route Automation Program.................................     307,000,000     361,200,000     333,200,000
    Next Generation Weather Radar (NEXRAD)......................  ..............       4,900,000       4,900,000
    ATOMS Local Area/Wide Area Network..........................       1,100,000       1,000,000       1,000,000
    Weather and Radar Processor (WARP)..........................       8,500,000       4,700,000       4,700,000
    ARTCC Building Improvements/Plant Improvements..............      28,000,000      35,000,000      28,000,000
    Voice Switching and Control System (VSCS)...................      32,800,000      24,100,000      24,100,000
    Air Traffic Management (ATM)................................      37,500,000      57,000,000      38,000,000
    Critical Telecommunication Support..........................       1,500,000       1,300,000       1,300,000
    Air/Ground Communications Infrastructure....................      24,100,000      13,500,000      13,500,000
    Volcano Monitoring..........................................       4,000,000  ..............       4,000,000
    ATCBI Replacement (ATCBI-6).................................      20,000,000      15,100,000      15,100,000
    ATC En Route Radar Facilities Improvements..................       2,700,000       3,000,000       3,000,000
    En Route Communications and Control Facilities Improvements.       1,203,390       1,020,800       1,020,800
    Integrated Terminal Weather System (ITWS)...................  ..............      14,100,000      14,100,000
    Aviation Weather Services Improvements (CIWS)...............      22,200,000       4,000,000       4,000,000
    FAA Telecommunications Infrastructure (FTI).................      51,200,000      71,150,000      71,150,000
    Guam Center Radar Approach Control (CERAP)--Relocate........       2,600,000       2,300,000       2,300,000
    Oceanic Automation System...................................      67,000,000      50,850,000      42,000,000
    ARTS/DBRITE Sustainment.....................................      25,000,000  ..............  ..............
    New York Integrated Control Complex.........................       5,000,000  ..............  ..............
    ARSR-4 Automated Technical Documentation....................       3,000,000  ..............       3,000,000
                                                                 -----------------------------------------------
      Subtotal--En Route Programs...............................     644,403,390     664,220,800     608,370,800
                                                                 ===============================================
    Airport Surface Detection Equipment--Model X (ASDE-X).......  ..............      51,300,000      51,300,000
    Terminal Doppler Weather Radar (TDWR).......................  ..............       8,000,000       8,000,000
    Terminal Automation Program.................................     122,100,000      21,700,000      21,700,000
    Terminal ATC Facilties Replacement..........................     158,245,000      95,100,000     126,100,000
    ATC/TRACON Facilities Improvement...........................      42,000,000      55,175,800      55,175,800
    Terminal Voice Switch Replacement/Enhanced TVS..............      16,000,000      10,200,000      16,000,000
    NAS Facilities OSHA and Environmental Standards Compliance..      28,300,000      25,500,000      25,500,000
    Houston Area Air Traffic System.............................      25,000,000      12,000,000      12,000,000
    NAS Infrastructure Management System (NIMS).................      20,000,000      16,000,000      10,000,000
    ASR-9 SLEP..................................................      23,000,000      20,700,000      20,700,000
    Voice Recorder Replacement Program (VRRP)...................       3,300,000       5,100,000       5,100,000
    Terminal Digital Radar (ASR-11).............................      75,000,000     107,100,000     100,100,000
    DOD/FAA Facilities Transfer.................................       3,250,000       1,200,000       3,200,000
    Precision Runway Monitors...................................       8,000,000       7,400,000       7,400,000
    Terminal Radar Improvements.................................  ..............       1,073,700       1,073,700
    Terminal Communications--Improve............................         112,000       1,129,400       1,129,400
    Standard Terminal Automation Replacement System (STARS).....     119,800,000     113,900,000     113,900,000
    Terminal Applied Engineering................................       4,000,000  ..............  ..............
    Terminal Interim Remote Tower Displays......................       2,500,000  ..............  ..............
    Tower Datalink Services (TDLS)..............................       2,500,000  ..............  ..............
    IDS--Terminal Facilities....................................       2,000,000  ..............  ..............
                                                                 -----------------------------------------------
      Subtotal--Terminal Programs...............................     655,107,000     552,578,900     578,378,900
                                                                 ===============================================
    Automated Surface Observing System (ASOS)...................      11,800,000       7,300,000       7,300,000
    FSAS Operational and Supportability Implementation System         19,710,000      10,200,000       9,200,000
     (OASIS)....................................................
    Weather Message Switching Center Replacement................       1,500,000       1,000,000       1,000,000
    Flight Service Facilities Improvement.......................         476,890  ..............  ..............
    Flight Service Station Switch Modernization.................       2,000,000  ..............  ..............
    Flight Service Station (FSS) Modernization..................       5,800,000       1,300,000       1,300,000
                                                                 -----------------------------------------------
      Subtotal--Flight Service Programs.........................      41,286,890      19,800,000      18,800,000
                                                                 ===============================================
    VOR/DME.....................................................       8,600,000       2,000,000       2,000,000
    Instrument Landing System (ILS) Establishment...............      48,615,000       5,800,000      25,250,000
    Wide Area Augmentation System...............................     100,000,000     100,030,000      65,090,000
    Transponder Landing System (TLS)............................       6,300,000  ..............       6,300,000
    Low Level Windshear Alert System (LLWAS)--Upgrade...........       2,700,000  ..............  ..............
    Runway Visual Range.........................................       7,000,000       1,400,000       1,400,000
    NDB Sustainment.............................................       1,100,000  ..............  ..............
    Navigation and Landing Aids--Improve........................       5,929,420       4,408,700       4,408,700
    Approach Lighting System Improvement Program (ALSIP)........      48,975,000       5,000,000      19,700,000
    VASI Replace With PAPI......................................       5,900,000  ..............  ..............
    DME Sustainment.............................................       4,000,000       1,000,000       1,000,000
    Visual Navaids (PAPI/REIL)..................................       5,000,000       3,200,000       3,200,000
    Loran-C.....................................................      22,500,000  ..............      10,000,000
    Instrument Approach Procedures Automation...................       4,000,000       3,100,000       3,100,000
    Navigation and Landing Aids Service Life Extension Pgm......  ..............       2,000,000       2,000,000
                                                                 -----------------------------------------------
      Subtotal--Landing and Navigational Aids...................     270,619,420     127,938,700     143,448,700
                                                                 ===============================================
    Alaskan NAS Interfacility Communications System (ANICS).....         900,000  ..............  ..............
    Fuel Storage Tank Replacement and Monitoring................       5,600,000       3,000,000       3,000,000
    FAA Buildings and Equipment.................................      11,200,000      11,027,600      11,027,600
    Electrical Power Systems--Sustain/Support...................      45,000,000      45,000,000      40,000,000
    Air Navigational Aids and ATC Facilities (Local Projects)...       2,200,000       2,300,000       2,300,000
    Aircraft Related Equipment Program..........................      12,580,000      12,000,000      12,000,000
    Computer Aided Eng and Graphics (CAEG) Modernization........       1,000,000         800,000         800,000
    Airport Cable Loop Systems--Sustained Support...............       6,500,000       4,600,000       9,600,000
    Programs being rebaselined (ITWS, STARS, WAAS)..............  ..............  ..............  ..............
                                                                 -----------------------------------------------
      Subtotal--Other ATC Facilities............................      84,980,000      78,727,600      78,727,600
                                                                 ===============================================
      Total Activity 2..........................................   1,696,396,700   1,443,266,000   1,426,726,000
                                                                 ===============================================
Non-ATC Facilities and Equipment:
    NAS Management Automation Program (NASMAP)..................       1,200,000       1,000,000       1,000,000
    Hazardous Materials Management..............................      19,000,000      17,000,000      17,000,000
    Aviation Safety Analysis System (ASAS)......................       6,900,000      12,900,000       6,900,000
    Logistics Support Systems and Facilities (LSSF).............       5,000,000       6,000,000       6,000,000
    Test Equipment--Maintenance Support for Replacement.........       4,000,000       3,000,000       3,000,000
    National Aviation Safety Data Analysis Center (NASDAC)......       1,900,000       1,600,000       1,600,000
    NAS Recovery Communications (RCOM)..........................       9,400,000      10,000,000      10,000,000
    Facility Security Risk Management...........................      30,000,000      40,000,000      40,000,000
    Information Security........................................       8,000,000       8,000,000       8,000,000
                                                                 -----------------------------------------------
      Subtotal--Support Equipment...............................      85,400,000      99,500,000      93,500,000
                                                                 ===============================================
    Aeronautical Center Infrastructure Modernization............      13,000,000       8,500,000       8,500,000
    National Airspace System (NAS) Training Facilities..........       4,200,000  ..............  ..............
    Distance Learning...........................................       1,400,000       1,500,000       1,500,000
                                                                 -----------------------------------------------
      Subtotal--Training Equipment & Facilities.................      18,600,000      10,000,000      10,000,000
                                                                 ===============================================
      Total Activity 3..........................................     104,000,000     109,500,000     103,500,000
                                                                 ===============================================
Mission Support:
    System Engineering and Development Support..................      25,800,000      30,400,000      27,765,000
    Safety Management System....................................  ..............       1,700,000       1,700,000
    Program Support Leases......................................      41,100,000      42,600,000      42,600,000
    Logistics Support Services (LSS)............................       7,900,000       7,900,000       7,900,000
    Mike Monroney Aeronautical Center--Leases...................      14,600,000      14,200,000      14,200,000
    Transition Engineering Support..............................      35,000,000      35,000,000      30,000,000
    Frequency and Spectrum Engineering..........................       1,930,000       3,600,000       2,000,000
    PCS Moves...................................................         200,000       1,530,000       1,530,000
    Technical Support Services Contract (TSSC)..................      42,562,100      43,300,000      38,300,000
    Resource Tracking Program (RTP).............................       3,600,000       1,500,000       1,000,000
    Center for Advanced Aviation System Development.............      84,620,000      84,600,000      84,600,000
    NAS Aeronautical Info Management Enterprise System..........      10,300,000      13,700,000      13,700,000
    DCAA Audits.................................................       3,000,000  ..............  ..............
    Operational Evolution Plan..................................       1,000,000  ..............  ..............
    Research Aircraft Replacement...............................      10,000,000  ..............  ..............
                                                                 -----------------------------------------------
      Total Activity 4..........................................     281,612,100     280,030,000     265,295,000
                                                                 ===============================================
Personnel and Related Expenses:
    Personnel and Related Expenses..............................     420,841,200     443,700,000     428,700,000
                                                                 -----------------------------------------------
      Total Activity 5..........................................     420,841,200     443,700,000     428,700,000
                                                                 ===============================================
      Total.....................................................   2,910,000,000   2,500,000,000   2,500,000,000
----------------------------------------------------------------------------------------------------------------

             ENGINEERING, DEVELOPMENT, TEST AND EVALUATION

    Advanced Technology Development and Prototyping.--The 
Advanced Technology Development and Prototyping program 
develops and validates technologies that support a range of 
timely and critical initiatives within the Engineering, 
Development, Test and Evaluation activity. The Committee 
recommendation provides $56,575,000, to be distributed as 
follows:

------------------------------------------------------------------------
                                                            Committee
                                                          recommendation
------------------------------------------------------------------------
Runway incursion reduction program.....................       $9,100,000
Aviation system capacity improvements..................        6,500,000
Separation standards...................................        2,500,000
General aviation/vertical flight technology program....        1,500,000
Operational concept validation.........................        3,000,000
NAS mission analysis and requirements development......        2,000,000
Domestic RVSM..........................................        2,200,000
Safer Skies............................................        3,400,000
NAS safety assessment..................................        1,000,000
Juneau airport wind system.............................        4,900,000
Airborne automated flight alert system.................        3,000,000
Runway obstruction warning system......................          375,000
Airport technology.....................................       10,100,000
Airport cooperative research program...................        5,000,000
Data exchange project..................................        2,000,000
------------------------------------------------------------------------

    Airborne Automated Flight Alert System.--The Committee has 
included $3,000,000 to continue the demonstration of a 
prototype rapid response capability to transmit flight data 
from commercial type aircraft using data management and 
communications equipment already installed on most modern 
aircraft, through software modernization. The Committee views 
this funding as a continuation of on-going AAFAS work.
    Runway Obstruction Warning System.--The bill includes 
$375,000 to continue the Runway Obstruction Warning System at 
Gulfport-Biloxi Airport and to support interim monitoring and 
certification of the system.
    Airport Technology.--The Committee recommends $10,100,000 
for airport technology. The Committee has provided $4,000,000 
for the Airfield Pavements Research Program, the same level of 
funding as the fiscal year 2004 enacted level. The program is 
designed to develop safer, more cost-effective, and durable 
airfield pavements by improving design, construction, 
rehabilitation and repair. This program examines both asphalt 
and concrete airfield pavements.
    Airport Cooperative Research Program.--The Committee 
recommendation includes $5,000,000 to initiate the airport 
cooperative research program which will carry out applied 
research on problems that are shared by airports and are not 
being adequately addressed by existing Federal research 
programs. This research will help to improve aviation safety, 
enhance security and reduce environmental impacts at airports 
around the country.
    Data Exchange Project.--The Committee recommends $2,000,000 
for the data exchange project. The project will develop and 
demonstrate an innovative, low-cost, broadband, non-satellite, 
safety, security, and air traffic management communications 
system for aircraft. Project will configure hardware and equip 
at least three aircraft and one ground station to establish a 
broadband communications data link network between aircraft and 
ground.
    Aviation Maintenance Technology.--The Committee encourages 
the FAA to work with the appropriate parties to develop a trial 
to demonstrate the safety and efficiency gains to be achieved 
through the automation of maintenance repair procedure 
information. The trial may include the identification of 
metrics and their measurement; configuration and installation 
of the automation system; and, data collection from the trial.
    Safe Flight 21.--The Committee supports the Safe Flight 21 
program and recommends $44,450,000, an increase of $4,000,000 
above the budget estimate. Of the funds provided, $4,004,000 is 
for the Ohio River Valley project and $37,000,000 is for the 
Capstone program. The recommendation includes $7,000,000 for 
weather cameras and the Committee urges the FAA to improve 
weather information for highly traveled mountain passes, 
including Rainey Pass, Merrill Pass, and Ptarmigan Pass.
    Next Generation Very High Frequency Air/Ground 
Communications System [NEXCOM].--The Committee recommends 
$29,950,000 for Next Generation VHF Air/Ground Communications 
System [NEXCOM], which is $2,000,000 less than the budget 
request. The Committee is aware that FAA is deferring plans for 
the more expensive and ambitious elements of the NEXCOM 
program. It is now essentially a radio replacement program. FAA 
has faced numerous challenges with this program, including 
concerns about the agency's preferred technology, how much it 
would cost airlines to equip with new radios, and whether or 
not Agency efforts would be compatible with steps taken in 
Europe. Notwithstanding FAA's decision to dismantle NEXCOM, the 
program sought to address very real problems--an aging air-to-
ground communications infrastructure and pending frequency 
depletion. Agency budgets and justifications are silent on 
these important problems that will affect capacity initiatives 
at some time in the future. Considering decisions about NEXCOM 
and the abrupt deferral of Controller-Pilot Data Link 
Communications, FAA is directed to report to the Committee on 
how it will meet the communication needs of the National 
Airspace System in the near-and long-term.
    Global Communications, Navigation, and Surveillance System 
[GCNSS].--The Committee provides $20,000,000 for the 
continuation of the FAA's effort to develop network-centric NAS 
operations through System Wide Information Management. The 
Committee directs the FAA to utilize this funding to further 
define and analyze initial network-centric air traffic 
management operations and to demonstrate these concepts at one 
or more FAA sites. Specifically, the demonstration may include 
the following: flight deviation detection and assessment for 
security alerting and safety and capacity enhancement; 
rationalization and integration of NAS surveillance assets for 
reducing operational and maintenance costs while the existing 
levels of safety and security are fully maintained; dynamic 
traffic rerouting and flow re-planning for minimizing NAS 
disruptions caused by convective weather; and, trajectory-based 
approach and departure operations for increased terminal area 
and airport capacity and reduced flight delays.
    Local Area Augmentation System [LAAS].--The Committee 
recommendation provides $10,000,000 for the Local Area 
Augmentation system. The Committee notes that this program has 
evolved from a private vendor and airline effort to a private 
vendor and FAA effort, and now is an FAA procurement program 
for a category 1 system. Since FAA awarded the LAAS contract in 
fiscal year 2003, the FAA has contemplated restructuring the 
program to focus on category 2 and category 3 systems and the 
fiscal year 2005 request to OMB reflected that shift. Due to 
budgetary constraints and competing priorities, the budget 
estimate did not include funding for LAAS, and during the last 
several months, the FAA, the Congress, and the industry have 
been struggling with how to capture the benefits promised by 
LAAS technology in a constrained budgetary environment. After 
consultations with the FAA, the Committee includes funding for 
the LAAS procurement and believes that the most prudent means 
to successfully integrating this capability into the NAS is 
through an iterative approach starting with category 1 systems 
utilizing associated cockpit guidance systems and evolving as 
necessary to category 2 and category 3 systems. The Committee 
believes that this approach holds promise for delivering a 
cost-effective means of providing precision approaches to 
accommodate the shift to point-to-point air carrier service. 
The Committee appreciates the dialogue with the Department on 
this issue and anticipates a continuation of that process.

              AIR TRAFFIC CONTROL FACILITIES AND EQUIPMENT

    En Route Automation Modernization Program.--The En Route 
Automation Modernization Program [ERAM] is one of the most 
expensive and complex acquisitions that FAA has ever 
undertaken. The purpose of ERAM is to replace the Host computer 
and its backup at FAA's 20 facilities that manage high altitude 
traffic nationwide. ERAM is also expected to provide future 
enhancements to Host computer capabilities to enhance the flow 
of air traffic in the National Airspace System.
    For well over 20 years, the Host computer system has been 
the core, or central nervous system, of the Nation's air 
traffic control [ATC] network. Host computers integrate flight 
plan and radar data to provide air traffic controllers with 
precise aircraft identification and position information. This 
system and its associated back-up are aging and have limited 
expansion capability.
    The expense and complexity of ERAM is reflected in FAA's 
overall program cost estimate of $2,100,000,000 and projected 
completion date of 2010. The agency is currently spending more 
than $10,000,000 per month on ERAM. The FAA budget request for 
fiscal year 2005 would increase the monthly burn rate to more 
than $20,000,000 per month. In 2007, FAA envisions spending 
more than $30,000,000 per month or more than $1,000,000 per day 
on ERAM.
    The FAA has developed a phased approach to the ERAM 
procurement and is 18 months into the effort. Thus far, FAA has 
met early program milestones, although it should be noted that 
work to date has focused on the Enhanced Back-up Surveillance 
system [EBUS], the least complex element of ERAM. Nevertheless, 
considerable work remains and continued oversight of this 
important program is critical. In fact, about 80 percent of 
each year's budget request will involve development efforts, 
referred to as ``solution development'' in planning documents.
    Even modest cost or schedule problems with ERAM will have a 
cascading effect on other programs, particularly in today's 
tight budgetary environment. At this stage, two key risks must 
be aggressively managed:
    1. Managing a Cost-Plus Contract.--By far, the largest cost 
risk in the program lies in FAA's ability to control the cost 
of the prime contract, which is a cost-reimbursable vehicle 
that generates the bulk of the anticipated program cost. The 
contract is currently valued at $971,000,000 for some of the 
development and deployment associated with ERAM. One pending 
adjustment to the ERAM contract, related to improvements to the 
Display System Replacement, will likely increase that cost by 
$200,000,000. Clearly, developmental initiatives with high 
degrees of undefined elements carry a greater risk of cost 
overruns and schedule delays--particularly when administered 
through a cost plus contract.
    2. Managing Complex Software Development.--The development 
and deployment of ERAM involves creating and integrating 
approximately 1.3 million lines of new and re-used computer 
code. The first software version of ERAM (release 1) will 
provide essentially the same capabilities that the Host 
possesses today with its current complement of over 3 million 
lines of code. Clearly, this is a challenging software 
engineering task, particularly because the contractor will have 
to integrate different programming languages and will rely on 
three different entities to develop and integrate the software.
    Later software versions of ERAM (releases 2.0 and 3.0) will 
be challenging to develop, test, and implement because they are 
expected to provide capabilities that do not exist today. 
Requirements for the later elements of ERAM are not well 
understood and serious questions exist about what it will take 
in terms of time and money to deliver these additional 
capabilities.
    Last year, the Committee admonished FAA for providing 
insufficient justification for ERAM given the size and 
magnitude of the program. This is still the case today. The 
Committee continues to be concerned about the lack of clarity 
in the goals and elements of this program. The Committee 
believes that an initiative of this size and importance to the 
agency warrants a much more comprehensive justification and 
repeated attempts by the Committee to find greater definition 
of the procurement elements have been less than illuminating. 
The more attention and scrutiny the Committee devotes to the 
ERAM program, the more troubling this initiative appears. FAA 
has not clearly articulated the level of development and risks 
associated with the later stages of this procurement and the 
agency's plans to mitigate those risks. As a result, it remains 
unclear whether or not FAA is correctly positioned to manage 
the program with respect to complex software development and 
integration issues and what metrics can be used to gauge 
progress.
    The Committee Recommendation provides $333,200,000 for ERAM 
for fiscal year 2005, a decrease of $28,000,000 from the budget 
request and an increase of $26,000,000 over the fiscal year 
2004 appropriated level. The Committee believes this reduction 
can be easily accommodated with appropriate management of the 
procurement--particularly when considering that the FAA assures 
the Committee that program growth of $200,000,000 to 
$300,000,000 can be accommodated as discussed above. In 
addition, the Committee directs the FAA to divide the current 
ERAM effort into separate and distinct programs with individual 
budget line items and encourages the FAA to take advantage of 
fixed priced contracting vehicles for the individual program 
elements. At a minimum, the program could be divided into 
programs and budget line items that specifically address Host 
replacement from those that introduce new capabilities to the 
current infrastructure.
    ARTCC Building Improvements/Plant Improvements.--The 
Committee recommendation provides $28,000,000, the same level 
appropriated in fiscal year 2004.
    Air Traffic Management [ATM].--The Committee provides 
$38,000,000 for ATM, which is $500,000 more than the amount 
appropriated in fiscal year 2004.
    Volcano Monitoring.--The Committee recommendation provides 
$4,000,000 for this activity, the same as the fiscal year 2004 
enacted level.
    Aviation Weather Services Improvements.--The Committee 
recommendation includes $5,000,000 to improve weather 
information for highly traveled mountain passes, including 
Rainey Pass, Merrill Pass, and Ptarmigan Pass.
    Oceanic Automation System.--The Committee continues to be 
concerned with the management of the effort to modernize the 
management of the oceanic airspace. While no program of this 
size has had the degree of congressional, Inspector General and 
GAO attention as the OAS procurement has over the past 15 
years, the FAA seems to continue to find new and innovative 
ways to increase the cost of the procurement and the taxpayers' 
exposure to future system and contract costs. The Committee 
recommendation provides $42,000,000, and notes that the FAA can 
accommodate this level by aggressively managing time and 
materials contract line items for software maintenance and 
support of FAA testing activities and by controlling testing, 
engineering and program management support.
    Automated Technical Support System.--The Committee includes 
$3,000,000 for the ongoing development and testing of an 
automated technical documentation pilot program utilizing 
complex schematic diagrams with capabilities for response and 
decision-support following a failure of short range radar 
systems.
    Wide Area Augmentation System.--The Committee continues to 
have serious concerns about the resource drain the WAAS program 
presents compared to the minimum benefits to aviation users 
demonstrated to date. In May, the FAA rebaselined the WAAS 
program for the fourth time in 10 years. With such little 
acceptance of this program from aviation users as measured by 
equipage rates, the Committee is concerned that this program 
may never realize its projected benefits. The Committee 
recommendation defers the $34,940,000 in funding requested for 
the additional geo-stationary satellite.
    Terminal Doppler Weather Radar [TDWR].--The Committee 
recommendation is $3,000,000, a slight increase from the fiscal 
year 2004 appropriated level.
    Terminal Air Traffic Control Facilities Replacement.--The 
Committee recommendation includes $126,100,000 for new and 
replacement air traffic control tower [ATCT] and ATCT/TRACON 
consolidation projects, an increase of $31,000,000 above the 
budget request. Funding shall be available for the following 
projects in the corresponding amounts:

------------------------------------------------------------------------
                        Location                              Amount
------------------------------------------------------------------------
Chicago, IL.............................................      $5,000,000
Cleveland, OH...........................................       7,025,000
Portland, OR (TRACON)...................................       1,000,000
Dayton, OH..............................................         975,000
Orlando, FL (TRACON)....................................       2,010,625
Toledo, OH..............................................         975,000
Abilene, TX.............................................       1,260,000
Pensacola, FL (TRACON)..................................       1,133,900
Washington, DC..........................................       7,402,300
Huntsville, AL..........................................      11,000,000
Houston, TX.............................................      25,000,000
Memphis, TN.............................................      10,200,000
Dallas, TX (Addison)....................................       1,349,375
Reno, NV................................................       3,000,000
Seattle, WA (ATCT)......................................       1,300,000
Fort Wayne, IN..........................................       2,200,000
Deer Valley, AZ.........................................       2,000,000
Pt. Columbus, OH........................................         700,000
Billings, MT............................................       3,000,000
Savannah, GA............................................         700,000
Roanoke, VA.............................................         700,000
Merrimack, NH (BCT).....................................         834,000
Phoenix, AZ.............................................       1,334,800
Manchester, NH..........................................       1,800,000
Chantilly, VA...........................................       5,500,000
Newport News, VA........................................       2,000,000
Sacramento, CA..........................................       2,000,000
Jefferson County, CO....................................       1,000,000
Kona, HI................................................       2,000,000
Lihue, HI...............................................       2,000,000
Boise, ID...............................................       6,000,000
Missoula, MT............................................       4,000,000
Las Vegas, NV (ATCT)....................................       4,000,000
North Bend, OR..........................................       2,000,000
Spokane, WA.............................................       3,000,000
Rogers, AR..............................................         700,000
                                                         ---------------
      Total.............................................     126,100,000
------------------------------------------------------------------------

    Airport Traffic Control Tower [ATCT]/TRACON Facilities 
Improvement.--The Committee recommendation includes $55,175,800 
for improvements to terminal facilities and equipment, which is 
equal to the budget request. The Committee recommendation 
includes funding for the projects listed below:

                 IMPROVE AIR TRAFFIC CONTROL FACILITIES
------------------------------------------------------------------------
             Facility                    Description          Amount
------------------------------------------------------------------------
Fairbanks, AK.....................  Replace ceiling              $92,100
                                     tiles, lighting,
                                     flooring.
King Salmon, AK...................  HVAC, LPGB, ceiling          165,000
                                     tiles, carpet,
                                     paint.
Des Moines, IA....................  Upgrade ATCT siding          224,400
                                     and replace roof.
Omaha, NE.........................  HVAC Replace........         665,150
Lincoln, NE.......................  HVAC replace,                449,320
                                     Interior refurbish.
Atlantic City, NJ.................  Rehab mobile tower..          30,000
Poughkeepsie, NY..................  Seismic survey......         260,000
Lancaster, PA.....................  Replace air handling         402,600
                                     system.
Parkersburg, WV...................  Install equipment            190,290
                                     building.
New Haven, CT.....................  Replace ESD carpet            97,900
                                     in cab.
Boston TRACON.....................  Replace carpet for            79,200
                                     11 locations.
Norwood, MA.......................  Seismic survey......         260,000
Denver TRACON.....................  Correct functional           850,000
                                     problems.
Great Falls, MT...................  Seismic survey......         260,000
Ogden, UT.........................  General refurbish...           6,360
Pocatello, ID.....................  General refurbish...         250,015
Daytona Beach, FL.................  Modernize ATCT cab..          32,373
Fort Lauderdale, FL...............  Modernize cab.......         306,400
Nashville, TN.....................  General refurbish...         293,700
Raleigh-Durham, NC................  Mod ATCT Phase II...         872,300
Brownsville, TX...................  Repair ATCT shaft          1,000,000
                                     and Base building
                                     engineering and
                                     drafting.
Dallas Love, TX...................  Modernize admin area         994,000
                                     Phase II.
Dallas-Ft Worth, TX...............  Mod Ops area Phase I         110,000
Kenai, AK.........................  Upgrade/Modernize          1,140,945
                                     ATCT.
Grand Island, NE..................  Replace foam                  49,890
                                     insulation on roof.
Des Moines, IA....................  Paint consoles,               38,500
                                     remodel restrooms.
Kansas City, MO...................  Resurface parking            127,450
                                     lot.
Cedar Rapids, IA..................  Replace HVAC........         632,500
Clarksburg, WV....................  Replace roof........         618,200
Caldwell, NJ......................  Seismic survey......         260,000
Lancaster, PA.....................  Seismic survey......         260,000
Philadelphia, PA..................  Seismic survey......         260,000
Anoka, MN.........................  Bldg 1840 warehouse           45,000
                                     support.
Lawrence, MA......................  General                       93,000
                                     modernization.
Aspen, CO.........................  Replace carpeting            383,885
                                     humidifiers and
                                     base building roof.
Great Falls, MT...................  Facility                     146,640
                                     modernization.
Twin Falls, ID....................  Mod ATCT/Provide             180,000
                                     Base building Phase
                                     I.
Olympia, WA.......................  Modernize ATCT......         510,772
Paducah, KY.......................  Seismic survey......         260,000
Daytona Beach, FL.................  Expand Base Building       2,004,200
                                     Phase II.
Mobile, AL........................  Expand Base Building       1,466,310
                                     and FLS Phase II.
Raleigh-Durham, NC................  Replace HVAC........         121,200
Sarasota, FL......................  Replace HVAC and Mod         828,300
                                     facility Phase II.
Dallas-Ft Worth TRACON............  Mod Ops area Phase           902,330
                                     II.
Dallas-Ft Worth, TX...............  Mod Ops are Phase I.         110,000
Dallas-Ft Worth, TX...............  Mod Ops area Phase I         110,000
Longview, TX......................  General refurbish          1,253,670
                                     Phase II.
Tulsa, OK.........................  Seismic survey......         260,000
Camarillo, CA.....................  Inservice upgrade to         603,064
                                     tower cab.
Santa Ana, CA.....................  Modernize ATCT......         300,000
Southern CA TRACON................  Install ETG lab.....       1,200,000
ACE...............................  Various.............          45,000
AEA...............................  Various.............         117,000
AGL...............................  Various.............         144,000
ANE...............................  Various.............          45,000
Midland, TX.......................  Expand Base Building       1,117,352
                                     Phase II.
Oklahoma City, OK.................  Seismic survey......         260,000
Honolulu, HI......................  Breakroom for tower.         358,784
Scottsdale, AZ....................  Modernize ATCT......         200,000
AAL...............................  Various.............          27,000
ANM...............................  Various.............          81,000
ASO...............................  Various.............         171,000
ASW...............................  Various.............         108,000
AWP...............................  Various.............         162,000
                                                         ---------------
      Total.......................  ....................      24,893,100
                                                         ===============

         Regional Projects

Kansas City, MO...................  EFSTS...............         143,995
St. Louis, MO.....................  Replace carpet and            40,990
                                     linoleum.
Akron, OH.........................  Procure and install          146,159
                                     data display system.
Philadelphia, PA..................  Modernize ATCT cab..          75,800
Pontiac, MI.......................  Repair base building          80,000
Youngstown, OH....................  General refurbish...         108,000
Flint, MI.........................  Replace elevator              35,100
                                     control unit.
Minneapolis, MN...................  Replace carpet admin/         95,085
                                     break room.
Seattle, WA.......................  Add positions.......         209,107
Salem, OR.........................  Construct modular            104,050
                                     building.
Peachtree City, GA................  Establish local              274,073
                                     control position.
Atlanta, GA.......................  Establish ground             164,267
                                     metering position.
Southwest.........................  Various.............         200,000
Los Angeles, CA...................  Provide covering for         104,150
                                     parking.
Santa Maria, CA...................  Replace roof-top              86,950
                                     structure.
Sacramento, CA....................  Tower refurbish.....         123,000
Kearny Mesa, CA...................  Replace air                   74,500
                                     conditioning system.
Chico, CA.........................  Replace HVAC........          93,425
Santa Barbara, CA.................  Repair parking lot..          20,400
Kansas City, MO...................  Electronic drop tube          51,800
Lansing, MI.......................  7 SAIDS-IDS-4                166,359
                                     stations.
Atlantic City, NJ.................  Repair mobile tower.          30,000
Farmingdale, NY...................  ACTA Improve........          54,000
Marion, IL........................  Re-roof corners,              52,000
                                     misc repairs.
Pontiac, MI.......................  General refurbish...         250,000
Chicago, IL.......................  Remove and replace           236,000
                                     sealant on base
                                     building and tower.
Burlington, VT....................  Replace base                 104,171
                                     building roof.
Portland, OR......................  Install ETVS, TEDs           105,450
                                     and associated
                                     equipment.
San Diego, CA.....................  Replace water line..          70,000
Atlanta, GA.......................  Establish new ground         266,494
                                     control position.
Atlanta, GA.......................  Add TMC position....         124,799
Mesa, AZ..........................  Provide covering for          45,000
                                     parking.
Las Vegas, NV.....................  Repaint interior,            148,700
                                     replace floor and
                                     lighting fixtures.
So Lake Tahoe, CA.................  Repaint exterior....          28,600
Deer Valley, AZ...................  Replace HVAC........          98,488
La Verne, CA......................  Upgrade air                   74,500
                                     conditioning system.
Long Beach, CA....................  Replace HVAC........          90,388
                                                         ---------------
      Total.......................  ....................       4,175,800
------------------------------------------------------------------------

    Terminal Voice Switch Replacement/Enhancement Terminal 
Voice Switch.--The Committee recommendation provides 
$16,000,000 for the TVSR/ETVS switch replacement program, an 
increase of $5,800,000 from the budget request of $10,200,000 
and the same amount as the fiscal year 2004 enacted level.
    NAS Infrastructure Management System [NIMS].--The Committee 
recommendation provides $10,000,000 for the NIMS program 
without prejudice due to budget constraints.
    Airport Surveillance Radar [ASR-9].--The Committee 
recommends the $20,700,000 for service life extension 
modifications to the ASR-9 airport surveillance radar. The 
Committee is aware that the ASR-9 is the principal airport 
radar used at the Nation's busiest airports which serve 90 
percent of enplaned passengers.
    Terminal Digital Radar (ASR-11).--The Committee recommends 
a reduction of $7,000,000 from the requested level of 
$107,100,000. The Committee recommendation fully funds the 
request to procure and install 12 new radar systems. In 
addition to funds for new production systems, the FAA is 
requesting funding for site surveys, site designs, and spare 
parts. The Committee notes that the number of site surveys and 
site designs that have been completed significantly exceeds the 
number of systems that have been procured. The Committee 
believes the recommendation provides a sufficient level of 
resources if the FAA defers site surveys for systems that will 
not be installed for a number of years and limits spare parts 
purchasing to a reasonable level that is needed to sustain the 
current inventory. The Committee is aware of the need to 
install a new ASR-11 at the Bismarck Airport in North Dakota 
and is dismayed over the delay in the project moving forward. 
The Committee directs the FAA to work with the Bismarck Airport 
to come up with a suitable solution so as to ensure that there 
is improved radar coverage in the near-term and that safety is 
not impeded.
    DOD/FAA Facilities Transfer.--The Committee recommendation 
includes $3,200,000, which is essentially the same level of 
funding that was appropriated in fiscal year 2004. Funding 
provided above the budget increase is for necessary 
improvements and continued operations of the airport radar 
approach control at Lawton/Fort Sill Regional Airport in 
Oklahoma.
    FSAS Operational and Supportability Implementation System 
[OASIS].--The Committee recommends a $9,200,000, a reduction of 
$1,000,000. The recommendation is consistent with the amount 
that the FAA has reprogrammed from this program to other 
activities in previous fiscal years.
    Instrument Landing System [ILS] Establishment.--The 
Committee recommends $25,250,000 for establishment of 
instrument landing systems, which includes $2,500,000 for 
program management, engineering, testing, freight, and 
technical support. The Committee directs the funding to be 
distributed as follows:

------------------------------------------------------------------------
             Facility                    Description          Amount
------------------------------------------------------------------------
Alliance, NE......................  Acquire and Install       $1,000,000
                                     ILS.
Andalusia-Opp Airport, AL.........  Acquire and Install        1,625,000
                                     ILS with MALSR.
Carbon County, UT.................  Acquire and Install        2,000,000
                                     ILS.
Colorado Springs, CO..............  Acquire and Install        2,000,000
                                     ILS.
Eugene, OR........................  Install CAT I ILS          1,250,000
                                     with ALS, PAPI,
                                     REIL.
Herbert Smart Downtown Regional,    Acquire and Install        2,000,000
 GA.                                 ILS.
Kirksville Regional, MO...........  Acquire and Install          975,000
                                     ILS.
New York, NY (JFK)................  Installation of            1,300,000
                                     MALSR.
O'Hare International, IL..........  CAT II/III ILS             2,000,000
                                     installation.
St. Louis Lambert.................  CAT III ILS for new        2,000,000
                                     runway.
Sheboygan County, WI..............  Install ILS with           1,000,000
                                     localizer, DME,
                                     glidescope.
Tooele, UT........................  Install CAT I ILS          2,000,000
                                     with MALSR.
Walterboro Municipal, SC..........  Acquire and Install        1,600,000
                                     ILS.
Winston-Salem, NC.................  Installation of ALSF-      2,000,000
                                     2.
------------------------------------------------------------------------

    Transponder Landing Systems.--The Committee recommendation 
provides $6,300,000 for acquisition and installation of 
transponder landing systems [TLS], which is the same as the 
fiscal year 2004 enacted level. The Committee directs the FAA 
to conduct surveys and cost-benefit analysis to site TLS at the 
following locations: Chevak; Emmonak; Hooper Bay Airport; 
Marshall; Scammon Bay; St. Michael; Selawik; Dillingham 
Airport; Unalaska Airport; McGrath Airport; Sand Point Airport; 
Unalalekeet; Fulton County Airport, IN; Danville, KY; Lawrence 
Smith Memorial Airport, MO; Dawson Community Airport, MT; 
Clinton County Airport, OH; Bandon State Airport, OR; 
Gatlinburg-Pigeon Forge Airport, TN; McGhee Tyson Airport, TN; 
Deer Park Airport, WA.
    Approach Lighting System Improvement Program [ALSIP].--The 
recommendation includes $19,700,000 for procurement and 
installation of frangible approach lighting equipment, 
including ALSF-2 and MALSR lighting systems. The Committee 
believes that using the latest lighting technology could 
improve reliability and reduce maintenance costs. The Committee 
encourages the FAA to complete a review of the specifications 
for procurements under the ALSIP program. The Committee 
encourages the FAA to consider the development of a certified 
supplier list once the updated specification is completed. 
Under the Committee recommendation, the funding is to be 
distributed as follows:

------------------------------------------------------------------------
             Facility                    Description          Amount
------------------------------------------------------------------------
Kingston, NC......................  Install ALSF-2......      $2,500,000
Wilmington, DE....................  Install MALSR.......       2,500,000
Gulfport-Biloxi, MS...............  Install TDZ and CL         1,100,000
                                     lighting RW 14-32.
Alaska statewide rural airfield     Acquire and Install        8,000,000
 lighting program.                   airfield lighting.
North Las Vegas and Henderson       REIL's..............         500,000
 Executive.
Monroe Regional, LA...............  Airfield lighting...       2,200,000
Mobile Regional, AL...............  Acquire and Install        1,000,000
                                     MIRL for Runway 18/
                                     36.
Adak, AK..........................  Upgrade instrument         1,900,000
                                     approach lighting.
------------------------------------------------------------------------

    The Committee has provided funding to continue the ongoing 
program to install runway and airfield lights at rural airports 
throughout Alaska. The Committee directs that priority 
consideration should be given to airports at Adak, Seldovia, 
and Soldotna.
    Medium-Intensity Approach Lighting System Replacement 
[MALSR].--The Committee is aware of the large inventory of 
MALSRs. The Committee encourages the FAA to consider using a 
small business MALSR provider for 3 to 6 turn-key next 
generation approach lighting systems which may reduce 
acquisition and life cycle costs.
    Loran C.--The Committee recommends $10,000,000 to continue 
the program to modernize the Loran-C navigation system. The 
Committee is aware that recapitalization of the loran 
radionavigational system in the contiguous United States has 
largely been completed, but notes that substantial work remains 
in Alaska. The Committee urges the Administrator to advance 
modernization of the Loran infrastructure in Alaska and directs 
that funds be requested in the fiscal year 2006 budget 
submission if additional resources are necessary to complete 
this modernization program.
    Electrical Power Systems--Sustain/Support.--The Committee 
provides $40,000,000 without prejudice due to budget 
constraints, a reduction of $5,000,000 from the budget request.
    Airport Cable Loop Systems--Sustained Support.--Of the 
funds provided, the Committee directs $1,000,000 for 
acquisition and installation of a fiber optic loop at Las 
Vegas-McCarran International Airport and $4,000,000 to replace 
the cable loop at Hartsfield International Airport.
    Programs Being Rebaselined.--The budget estimate did not 
allocate funding for ITWS, STARS, and WAAS and instead reserved 
a lump sum amount until completion of a revised baseline for 
each program. The Committee received revised requests for these 
programs and has recommended funding for these programs in the 
appropriate budget lines.

            NON-AIR TRAFFIC CONTROL FACILITIES AND EQUIPMENT

    Aviation Safety Analysis System [ASAS].--The Committee 
recommendation provides $6,900,000, sufficient resources to 
maintain the present level of effort in the current constrained 
budget environment.

                            MISSION SUPPORT

    System Engineering and Development Support.--The Committee 
recommends $27,765,000 for this area of technical and 
management support. The Committee recommendation reduces the 
increase above the fiscal year 2004 enacted level to $1,950,000 
due to budget constraints.
    Transition Engineering Support.--The Committee 
recommendation provides $30,000,000 for transition engineering 
support, a reduction of $5,000,000 from the budget request and 
requests an analysis of which programs receive support from 
this line and an explanation of why such activities would not 
be more accurately budgeted within the programs receiving the 
support.
    Frequency and Spectrum Engineering.--The Committee 
recommends $2,000,000 for this program, the same level 
appropriated in fiscal year 2004.
    Technical Support Services Contract [TSSC].--The Committee 
recommendation provides $38,300,000, a reduction of $5,000,000 
from the requested amount due to budget constraints.
    Resource Tracking Program [RTP].--The Committee provide 
$1,000,000 for the resource tracking program due to higher 
budgetary priorities.

                     PERSONNEL AND RELATED EXPENSES

    Personnel and Related Expenses.--The Committee 
recommendation provides $428,700,000.

                 RESEARCH, ENGINEERING, AND DEVELOPMENT

                    (AIRPORT AND AIRWAY TRUST FUND)

Appropriations, 2004 \1\................................    $118,734,000
Budget estimate, 2005...................................     117,000,000
Committee recommendation................................     129,427,000

\1\ Reflects reduction of $705,000 pursuant to Division H, section 168 
of Public Law 108-199.

    The Research, Engineering and Development [RE&D] 
appropriation provides funding for long-term research, 
engineering and development programs to improve the air traffic 
control system by increasing its safety and capacity, as well 
as reducing the environmental impacts of air traffic, as 
authorized by the Airport and Airway Improvement Act and the 
Federal Aviation Act, as amended. The programs are designed to 
meet the expected air traffic demands of the future and to 
promote flight safety through improvements in facilities, 
equipment, techniques, and procedures in order to ensure that 
the system will safely and efficiently handle future volumes of 
aircraft traffic.
    The Committee recommendation includes $129,427,000 for the 
FAA's research, engineering, and development activities. The 
recommended level of funding is $12,427,000 more than budget 
request and $10,692,690 more than the fiscal year 2004 enacted 
level.
    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--
                                                                 --------------------------------    Committee
                                                                   2004 enacted                   recommendation
                                                                        \1\        2005 estimate
----------------------------------------------------------------------------------------------------------------
Improve Aviation Safety:
    Fire Research and Safety....................................      $9,667,622      $5,578,000      $6,578,000
    Propulsion and Fuel Systems.................................       6,606,789       3,672,000       7,672,000
    Advanced Materials/Structural Safety........................       7,223,131       2,197,000       6,697,000
    Atmospheric Hazards/Digital Systems Safety..................       4,567,890       4,119,000       4,119,000
    Aging Aircraft..............................................      20,498,342      18,351,000      19,151,000
    Aircraft Catastrophic Failure Prevention Research...........         757,504       1,116,000       1,116,000
    Flightdeck/Maint./System Integration Human Factors..........       8,344,475       8,294,000      12,794,000
    Aviation Safety Risk Analysis...............................       7,851,402       8,640,000       8,640,000
    Air Traffic Control/Airway Facilities Human Factors.........       8,846,496       9,467,000       9,467,000
    Aeromedical Research........................................       8,829,596       6,660,000       6,660,000
    Weather Research Safety.....................................      20,728,974      20,838,000      20,838,000
Improve Efficiency of Air Traffic Control System:
    National Plan for Transformation of Air Service.............  ..............       5,100,000       5,100,000
    Wake Turbulence.............................................  ..............       2,296,000       4,796,000
    Weather Research Efficiency.................................       2,982,300  ..............  ..............
Reduce Environmental Impact of Aviation: Environment and Energy.       7,927,947      16,008,000      11,890,000
Improve Efficiency of Mission Support:
    System Planning and Resource Management.....................         497,050       1,275,000         520,000
    Technical Laboratory Facility...............................       3,404,792       3,389,000       3,389,000
                                                                 -----------------------------------------------
      Total R,E&D...............................................     118,734,310     117,000,000     129,427,000
----------------------------------------------------------------------------------------------------------------
\1\ Reflects reduction of $705,000 pursuant to Division H, section 168(b) of Public Law 108-199.

                        IMPROVE AVIATION SAFETY

    Fire Research and Safety.--The Committee recommends 
$6,578,000 for fire research and safety and includes $1,000,000 
for continued comprehensive evaluation of advanced reticulated 
polyurethane safety foam in commercial aircraft.
    Propulsion and Fuel Systems.--The Committee recommendation 
provides a total of $7,672,000 for propulsion and fuel systems 
research to reduce commercial fatalities. The Committee 
provides $3,000,000 to continue the study of the effects of 
molecular markers designed for the purpose of detecting 
adulteration or dilution of jet fuel for use in aviation 
engines. This funding will support appropriate engine testing 
by the FAA as well as a closed field trial. The Committee 
directs the Department of Transportation [DOT] to report their 
findings to the Congress not later than 18 months after the 
date of enactment.
    The recommended level of funding includes $1,000,000 for 
further research into the performance and combustion 
characteristics of aviation grade ethanol fuels at South Dakota 
State University.
    Advanced Materials/Structural Safety.--The Committee 
recommends $6,697,000 for advanced materials/structural safety 
research. With the additional funds provided, $4,000,000 is to 
support and improve ongoing metallic and composite structures 
research at the National Institute for Aviation Research and 
$500,000 for advanced materials research at the University of 
Washington.
    Center of Excellence for General Aviation Research 
[CGAR].--The Committee notes that the FAA has supported the 
research efforts of the Center of Excellence for General 
Aviation Research [CGAR] which is a consortium of the aviation 
industry and five universities--Embry Riddle Aeronautical 
University; the University of North Dakota; Wichita State 
University; University of Alaska; and, Florida Agricultural and 
Mechanical University. The Committee supports the continued 
funding of the research of CGAR and directs that the FAA 
provide no less than $1,500,000 to CGAR for its general 
aviation research efforts.
    Aging Aircraft.--The Committee recommendation includes a 
total of $19,151,000 for the aging aircraft program to reduce 
commercial aviation fatalities. The Committee has provided 
resources to continue the collaborative efforts between the FAA 
and several public and private organizations including the 
Center for Aviation Systems Reliability [CASR], the 
Airworthiness Assurance Center of Excellence [AACE] and the 
Engine Titanium Consortium [ETC]. Within the appropriation, the 
recommendation includes $2,000,000 for the Center for Aviation 
Systems Reliability [CASR]; $1,000,000 for the Engine Titanium 
Consortium [ETC]; $2,500,000 for the Aging Aircraft 
Nondestructive Inspection Validation Center [AANC]; and, 
$1,500,000 for the Center for Aviation Research and Aerospace 
Technology [CARAT].
    Flightdeck/Maintenance/System Integration Human Factors.--
The Committee recommends $10,794,000 for flightdeck, 
maintenance, and systems integration human factors, an increase 
of $2,500,000 above the budget estimate. The Committee 
recommendation includes $2,000,000 to continue development of 
in-flight simulator training for commercial pilots and $500,000 
to provide training and education in aircraft inspection, 
maintenance and repair at NH Community Technical College-
Nashua.
    Cabin Air Quality.--Within the funds provided for 
aeromedical research, the Committee provides $3,000,000 to 
continue studies related to cabin air quality as authorized in 
Section 815 of the Vision 100--Century of Aviation 
Authorization Act. The Committee directs that this research be 
conducted through the recently established ``Center of 
Excellence for Cabin Air Quality'' and shall, to the extent 
that sufficient funds are available, include the following 
areas: identification of chemical exposures during sporadic air 
quality incidents; an animal study to assess the toxicity of 
inhaling a neurotoxic component of aircraft engine oils and 
hydraulic fluids; mechanical means of keeping flying insects 
out of the passenger cabin of commercial aircraft; aircraft 
catastrophic failure prevention research; in-flight 
decontamination procedures; and advanced cleansing and 
biological sensors.
    Mobile Object Technology.--The Committee recommendation for 
flightdeck, maintenance, and systems integration human factors 
includes $3,000,000 to further develop and implement a mobile 
object technology program to demonstrate the deployment of 
software quickly and efficiently into the complex National 
Airspace System and the System Wide Information Network [SWIM]. 
This demonstration should explore the mobile object 
technology's ability to analyze remote monitoring and 
maintenance capabilities and its potential integration into the 
Surveillance Data Network [SDN].

            IMPROVE EFFICIENCY OF AIR TRAFFIC CONTROL SYSTEM

    National Plan for Air Transportation.--The Committee 
recommends $5,100,000, as requested, for FAA's contribution to 
the multi-agency Joint Planning and Development Office [JPDO]. 
This office represents the Departments of Defense, Commerce, 
Transportation, and Homeland Security, in addition to the 
National Aeronautics and Space Administration and the FAA, in 
developing the next generation air transportation system. The 
JPDO, and its charter, was established and charged in Public 
Law 108-176.
    Wake Turbulence.--The Committee recommendation includes 
$5,296,000 for the wake turbulence program, which is $3,000,000 
above the budget request. Funding provided above the budget 
estimate is to enhance the capability of pulsed laser Doppler 
radar [Lidar] to detect and track aircraft wakes.

                REDUCE ENVIRONMENTAL IMPACT OF AVIATION

    Environment and Energy.--The Committee recommends 
$11,890,000 and provides an increase of 50 percent above the 
level enacted for fiscal year 2004 instead of the proposed 
increase of 64 percent.

                 IMPROVE EFFICIENCY OF MISSION SUPPORT

    System Planning & Resource Management.--The Committee 
provides $520,000, which is slightly more than the fiscal year 
2004 enacted level.

                       GRANTS-IN-AID FOR AIRPORTS

                (LIQUIDATION OF CONTRACT AUTHORIZATION)

                    (AIRPORT AND AIRWAY TRUST FUND)

Appropriations, 2004 \1\................................  $3,379,940,000
Budget estimate, 2005...................................   2,800,000,000
Committee recommendation................................   2,800,000,000

\1\ Reflects reduction of $20,060,000 pursuant to Division H, section 
168 of Public Law 108-199.

    The Airport and Airway Improvement Act of 1982, as amended, 
authorizes a program of grants to fund airport planning and 
development, noise compatibility planning and projects, the 
military airport program, reliever airports, airport program 
administration, and other authorized activities for public use 
airports in all States and territories. The liquidation cash 
appropriation provides for liquidation of obligations incurred 
pursuant to contract authority and annual limitations on 
obligations for grants-in-aid for airport.
    The Committee recommends $2,800,000,000 in liquidating cash 
for grants-in-aid for airports, which is the same as the budget 
request. This is consistent with the Committee's obligation 
limitation on airport grants for fiscal year 2005 and for the 
payment of obligations from previous fiscal years.

                       GRANTS-IN-AID FOR AIRPORTS

                      (LIMITATION ON OBLIGATIONS)

                    (AIRPORT AND AIRWAY TRUST FUND)

Obligation limitation, 2004.............................  $3,379,940,000
Budget estimate, 2005...................................   3,500,000,000
Committee recommendation \1\............................   3,500,000,000

\1\ Reflects reduction of $20,060,000 pursuant to Division H, section 
168 of Public Law 108-199. Does not reflect $1,988,000 direct 
appropriation pursuant to Division H, section 167 of Public Law 108-199.

    The total program level recommended for fiscal year 2005 
for grants-in-aid to airports is $3,500,000,000, which is the 
same as the budget request and $120,060,000 more than the 
fiscal year 2004 enacted level. The Committee recommendation is 
intended to be sufficient to continue the important tasks of 
enhancing airport and airway safety, ensuring that airport 
standards continue to be met, maintaining existing airport 
capacity, and developing additional capacity.
    A table showing the distribution of these funds according 
to current law compared to the fiscal year 2004 level and the 
President's budget request follows:

                                           GRANTS-IN-AID FOR AIRPORTS
----------------------------------------------------------------------------------------------------------------
                                                                 Fiscal Year
                                                                 2004 Enacted     Fiscal Year       Committee
                                                                     \1\          2005 Request    Recommendation
----------------------------------------------------------------------------------------------------------------
Obligation Limitation........................................   $3,379,940,000   $3,500,000,000   $3,500,000,000
    Personnel and Related Expenses...........................       65,863,101       69,302,000       68,802,000
    Small Community Air Service..............................       19,882,000  ...............       20,000,000
                                                              --------------------------------------------------
      Available for AIP Grants...............................    3,294,194,899    3,430,698,000    3,411,198,000
                                                              ==================================================
Primary Airports.............................................      903,768,585      903,768,585      903,768,585
Cargo Service Airports.......................................      115,296,821      120,074,430      120,074,430
Alaska Supplemental (Sec. 4714(e))...........................       21,345,114       21,345,114       21,345,114
States (General Aviation):
    Non-Primary Entitlement..................................      341,047,527      341,147,527      341,147,527
    State Apportionment by Formula...........................      317,791,453      344,992,073      344,992,073
                                                              --------------------------------------------------
      Subtotal...............................................      658,838,980      686,139,600      686,139,600
                                                              ==================================================
Carryover Entitlement........................................      335,700,203      336,000,000      336,000,000
                                                              --------------------------------------------------
      Subtotal Entitlements..................................    2,034,949,703    2,067,327,729    2,067,327,729
                                                              ==================================================
Small Airport Fund:
    Non Hub Airports.........................................      217,288,910      217,288,910      217,288,910
    Non Commercial Service...................................      108,644,455      108,644,455      108,644,455
    Small Hub................................................       54,322,227       54,322,227       54,322,227
                                                              --------------------------------------------------
      Subtotal Small Airport Fund............................      380,255,592      380,255,592      380,255,592
                                                              --------------------------------------------------
      Subtotal Non Discretionary.............................    2,415,205,295    2,447,583,321    2,447,583,321
                                                              ==================================================
Discretionary Set-Aside: Noise...............................      307,646,361      344,090,138      344,090,138
Discretionary Set-Aside: Reliever............................        5,801,331        6,488,557        6,488,557
Discretionary Set-Aside: Military Airport Program............       35,159,584       39,324,587       39,324,587
                                                              --------------------------------------------------
      Subtotal Discretionary Set-asides......................      348,607,276      389,903,282      389,903,282
                                                              ==================================================
C/S/S/N......................................................      397,786,746      444,908,548      444,908,548
Pure Discretionary...........................................      132,595,582      148,302,849      128,802,849
                                                              --------------------------------------------------
      Subtotal Other Discretionary...........................      530,382,328      593,211,397      573,711,397
                                                              ==================================================
      Subtotal Discretionary.................................      878,989,604      983,114,679      963,614,679
                                                              ==================================================
      GRAND TOTAL............................................    3,294,194,899    3,430,698,000    3,411,198,000
----------------------------------------------------------------------------------------------------------------
\1\ Reflects reduction of $20,060,000 pursuant to Division H, section 168(b) of Public Law 108-199. Does not
  include direct appropriation of $1,988,200 pursuant to Division H, section 167 of Public Law 108-199.

    Airport Discretionary Grants.--Within the budgetary 
resources provided in the accompanying bill, $963,614,679 is 
available for discretionary grants to airports. The Committee 
has carefully considered a broad array of discretionary grant 
requests that can be expected in fiscal year 2005. 
Specifically, the Committee expects the FAA to give priority 
consideration to applications for the projects listed below in 
the categories of AIP for which they are eligible. If funds in 
the remaining discretionary category are used for any projects 
in fiscal year 2005 that are not listed below, the Committee 
expects that they will be for projects for which FAA has issued 
letters of intent (including letters of intent the Committee 
recommends below that the FAA subsequently issues), or for 
projects that will produce significant aviation safety 
improvements or significant improvements in systemwide capacity 
or otherwise have a very high benefit/cost ratio.
    Within the program levels recommended, the Committee 
directs that priority be given to applications involving the 
further development of the following airports:

------------------------------------------------------------------------
State            Airport Name                  Project Description
------------------------------------------------------------------------
   AK Adak                             Various improvements.
   AK Akutan SPB                       Various improvements.
   AK Cold Bay                         Air terminal improvements.
   AK False Pass                       Various improvements.
   AK Juneau International             Snow removal equipment building
                                        and site development for GA
                                        aircraft, terminal
                                        enhancement.
   AK Kenai                            Various improvements.
   AK Ketchikan International          Various improvements.
   AK Soldotna                         Various improvements.
   AK Ted Stevens Anchorage            Laser lines of tug roads.
       International
   AK Unalaska                         Air terminal expansion.
   AK Portage Creek                    Runway extension and
                                        improvements.
   AL Atmore Municipal                 Land acquisition and apron
                                        expansion.
   AL Madison County Executive         Various improvements.
   AL Mobile Downtown                  Install Perimeter Security
                                        Fence.
   AL Montgomery Regional (Dannelly    Terminal Renovation--Phase III.
       Field)
   AL Mobile Downtown                  Cargo Apron Rehabilitation/
                                        Drainage Repairs.
   AL Huntsville International--Jones  Taxiway E5 Extension.
       Field
   AL Bessemer Municipal               Runway extension and security
                                        upgrade.
   AL Mobile Regional                  Rehabilitate Access Road to
                                        East Ramp.
   AL Mobile Downtown                  Land Acquisition in Runway
                                        Protection Zone (RPZ).
   AL Mobile Regional                  Asphalt Overlay of Runway 18/36
                                        and Taxiway ``R''.
   AL Huntsville International--Jones  Expand Intermodal Air Cargo
       Field                            Access Taxiway to 12,600 ft.
                                        Runway (Taxiway L).
   AL Huntsville International--Jones  Small Community Air Service
       Field                            Development Program for
                                        Competitive Fares/AIP Special
                                        Fund.
   AL Gragg-Wade Field                 Land Acquisition for Approach
                                        Zone.
   AL Montgomery Regional (Dannelly    Montgomery Regional Airport
       Field)                           Terminal Expansion Phase III.
   AL Auburn-Opelika/Robert G Pitts    Ramp and taxiway improvements
                                        and property acquisition.
   AL Andalusia-Opp                    Apron and Connector Taxiway
                                        Construction, Runway/Taxiway
                                        Extension Design, Land
                                        Acquisition, Runway Overlay,
                                        Road Relocation, and Runway/
                                        Taxiway Extension.
   AL Moton Field Municipal            Land acquisition, taxiway
                                        extension, RSA improvements,
                                        other improvements.
   AL Franklin Field                   Land acquisition, runway
                                        extension and parallel
                                        taxiway.
   AR Northwest Arkansas Regional      Taxiway construction.
   AR Texarkana Regional--Webb Field   Terminal renovation.
   AR Baxter County Regional           Runway construction.
   AZ Chandler Municipal               Heliport relocation.
   AZ Phoenix Sky Harbor               Taxiways Delta and Echo
       International                    Reconstruction.
   CA Gnoss Field                      Runway extension.
   CA Sonoma County                    Various improvements.
   CA San Francisco International      SFO Access Control of Airport
                                        Ground Service Equipment (GSE)
                                        System.
   CT Tweed-New Haven                  Various improvements.
   DE New Castle County                Reconstruct/construct Taxiway
                                        M, Taxiway K-4.
   FL Orlando International            Elimination of Wildlife
                                        Attractants.
   FL Immokalee                        Runway 9/27 Resurfacing and
                                        Repair Project.
   FL Miami International              Runway Strengthening.
   GA Southwest Georgia Regional       Runway extension project and
                                        construction of a new Aircraft
                                        Rescue Firefighting Facility
                                        (ARFF).
   GA Fitzgerald Municipal             Runway extension.
   GA Jackson County                   Runway Extension.
   GA Southwest Georgia Regional       Runway extension.
   GA Paulding County                  Land acquisition.
   GA Augusta Regional at Bush Field   Terminal Construction.
   GA Augusta Regional at Bush Field   Various improvements.
   HI Hilo International               Runway Pavement Rehabilitation.
   HI Kahului                          Taxiway Pavement
                                        Rehabilitation.
   IA Sioux Gateway                    Extend and reconstruct
                                        taxiways.
   IA Mason City Municipal             Rehabilitation of primary
                                        runway 7/35.
   IA Atlantic Municipal               New runway construction.
   IA Council Bluffs Municipal         Various improvements.
   IA Fairfield Municipal              Various improvements.
   IA Council Bluffs Municipal         Paving and marking new runway
                                        18/36 and paving new taxiway.
   IA Ankeny Regional                  Land acquisition for increased
                                        runway protection zone and 500-
                                        foot long runway extension.
   IL Southern Illinois                Equipment and various airport
                                        improvements
   IL MidAmerica St. Louis             Various Improvements
   IL Waukegan Regional                Environmental work
   IN New Castle-Henry County          Land acquisition and
       Municipal                        reconstruction and widening of
                                        a runway.
   IN Indianapolis Metropolitan        Traffic/congestion mitigation
                                        study.
   IN Gary/Chicago                     Improve and correct airfield
                                        safety area.
   IN Clark County                     Various improvements.
   IN Indianapolis Executive           Various improvements.
   KS Forbes Field                     Taxiway improvements.
   KS Salina Municipal                 Apron repair.
   KY Henderson City-County            New Terminal.
   KY Madisonville Municipal           Runway extension.
   KY Louisville International-        Runway extension--35L.
       Standiford Field
   KY Owensboro-Daviess County         Runway extension.
   KY Bowman Field                     Airfield pavement replacement.
   KY Louisville International-        Voluntary relocation program.
       Standiford Field
   KY Taylor County                    Various improvement projects.
   KY Louisville International-        Voluntary Relocation Program.
       Standiford Field
   LA New Orleans International        Various Improvements/
       (Moisant)                        Rehabilitate Runway.
   LA Baton Rouge Metropolitan, Ryan   Various Improvements.
       Field
   LA Houma-Terrebonne                 North South Runway Upgrade.
   LA Baton Rouge Metropolitan, Ryan   Air Carrier Apron Phase I
       Field                            (South).
   LA Lafayette Regional               Runway 4R/22L Safety Zone
                                        Improvements.
   LA Baton Rouge Metropolitan, Ryan   Noise Mitigation.
       Field
   LA Baton Rouge Metropolitan, Ryan   Runway 4L-22R Extension.
       Field
   LA Houma-Terrebonne                 Runway Upgrade.
   LA Lafayette Regional               Taxiway Bravo rehabilitation/
                                        widening and strengthening.
   LA Monroe Regional                  New Terminal.
   LA Baton Rouge Metropolitan, Ryan   Airfield Drainage Phase II.
       Field
   LA Lafayette Regional               Runway extension and other
                                        improvements.
   LA Monroe Regional                  Various improvements.
   LA Morehouse Memorial               Runway Expansion.
   LA Baton Rouge Metropolitan, Ryan   Runway 4L Drainage/Safety Area
       Field                            improvement.
   LA Alexandria International         Taxiway B Reconstruction.
   MD Martin State                     Runway, safety, and taxiway
                                        improvements.
   MD Baltimore-Washington             Various improvements.
       International
   MD Cumberland Regional              Various Improvements
   ME Machias Valley                   Airport relocation.
   MI Detroit City                     Gateway Development Program.
   MI Oakland-Pontiac                  Relocation of T-Hangars,
                                        runway, associated apron,
                                        taxiways, and fencing.
   MI Detroit Metropolitan-Wayne       Runway and Airfield Safety
       County                           Improvements.
   MI W K Kellogg Regional             Runway and taxiway
                                        construction.
   MI Capital City                     Runway extension.
   MI Manistee County Blacker          New terminal building.
   MI Manistee County Blacker          Snow removal equipment
                                        procurement.
   MN Minneapolis-St Paul              Pavement Rehabilitation--
       International/Wold-Chamberlain   Aprons.
   MN Willmar                          Paving and electrical and
                                        security components.
   MO Joplin Regional                  Terminal Replacement.
   MO Kansas City International        Various Improvements.
   MO Springfield--Brenson Regional    Runway construction.
   MO Rosencrans Memorial              Expansion/improvements
   MS Bruce Campbell Field             Relocate terminal.
   MS Philadelphia Municipal           Airport expansion.
   MS Jackson International            Carrier Apron Replacement.
   MS Gulfport-Biloxi Regional         Taxiway Improvements.
   MS Trent Lott International         Runway expansion.
   MS Olive Branch                     Various Improvements.
   MS Winona-Montgomery County         Various Improvements.
   MS Hawkins Field                    Runway extension.
   MT Helena Regional                  Terminal Remodeling and
                                        Expansion Project.
   MT Missoula International           Land Acquisition.
   MT Havre City-County                Terminal Remodeling and
                                        Expansion Project.
   MT Great Falls International        Northside Interstate Access
                                        Road.
   MT Great Falls International        Runway Improvements.
   NC Statesville Municipal            Runway expansion.
   NC Rowan County                     Land acquisition.
   NC Sampson County                   Runway expansion.
   NC Morganton-Lenoir                 Various improvements.
   NC Concord Regional                 Concord Airport Runway
                                        Extension.
   NC Andrews-Murphy                   Various improvements.
   NC Hickory Municipal                Runway Improvements.
   NC Franklin County                  Runway extension.
   NC Burlington Municipal             Runway extension.
   NC Ashe County                      Expand terminal apron and
                                        construct taxiway.
   NC Wilmington International         Rehabilitation and Overlay of
                                        Runway 6-24.
   NC Monroe                           Runway extension and taxiway
                                        improvements.
   ND Jamestown Municipal              Runway improvements.
   ND Hector International             Runway improvements.
   NE Central Nebraska Regional        North Ramp Rehabilitation.
   NJ Lakewood                         Airport Improvement Projects.
   NJ Newark International             Access Control of Airport
                                        Ground Service Equipment (GSE)
                                        System.
   NM Dona Ana County at Santa Teresa  Runway extension.
   NM Double Eagle II                  Rehabilitation of runway and
                                        taxiway.
   NV Reno/Tahoe International         Terminal Apron reconstruction.
   NV Reno/Stead                       Ramp Road reconstruction.
   NV Reno/Stead                       Airport Access Road
                                        Construction.
   NV Reno/Tahoe International         Cargo ramp construction.
   NV Reno/Tahoe International         Northeast Ramp (Cargo)
                                        Reconstruction.
   NV Reno/Stead                       Runway reconstruction.
   NV Reno/Stead                       Overlay of Taxiway ``E''.
   NV Reno/Stead                       Existing T-Hangar Taxilane
                                        Reconstruction.
   NV Reno/Tahoe International         Checked Baggage In Line
                                        Security Screening System
                                        Installation.
   NV Beatty                           Airport Improvement.
   NV Reno/Tahoe International         FAR Part 150 Noise Insulation
                                        Program.
   NV Carson                           Property Acquisition for the
                                        Reconstruction/Realignment of
                                        Runway 9-27.
   NY Niagara Falls International      New passenger terminal.
   NY Niagara Falls International      East Apron Expansion.
   NY Buffalo Niagara International    Internal Perimeter Road.
   NY Greater Rochester International  Runway Extension.
   NY Niagara Falls International      Permeter Access Road.
   NY Buffalo Niagara International    Runway 5/23 extension and
                                        various improvements.
   NY Niagara Falls International      East Apron Expansion.
   NY Niagara Falls International      Circulatory Road and Airport
                                        Parking.
   NY Plattsburgh International        Various improvements.
   OH Cleveland-Hopkins International  Runway Safety Area
                                        Improvements--Partial Runway
                                        10/28.
   OH Toledo Express                   Terminal Reconfiguration.
   OH Ohio University                  Airport Safety, Security, and
                                        Economic Development
                                        Initiative.
   OH Cleveland-Hopkins International  Residential Sound Insulation,
                                        Noise Exposure Map Update, and
                                        Noise Monitor Upgrade.
   OH Dayton Wright Brothers           Land Acquisition.
   OH Cleveland-Hopkins International  Residential soundproofing.
   OK Richard Lloyd Jones, Jr          Access and Perimeter Road
                                        Reconstruction.
   OK Richard Lloyd Jones, Jr          Drainage Project.
   OK Tulsa International              Taxiway Rehabilitation.
   OK Tulsa International              Charlie Taxiway Extension.
   OK Altus Municipal                  Airport Improvements.
   OK Sallisaw Municipal               Runway Extension.
   OK West Woodward                    Various improvements.
   OK Richard Lloyd Jones, Jr and      TUL and RVS Pavement and Seal
       Tulsa International              Coating.
   OK Ponca City Municipal             Runway 17-35 and Taxiway
                                        Rehabilitation.
   OK Tulsa International              Taxilanes Project.
   OK Eaker Field                      Various improvements.
   OK Tulsa International              Noise Mitigation.
   OR Roberts Field                    Taxiway reconstruction.
   OR Rogue Valley International--     Terminal Construction.
       Medford
   OR North Bend Municipal             Terminal Construction.
   OR Madras/Jefferson County          Construction of new flight
                                        services building
   PA Clarion County                   Runway extension.
   PA Pittsburgh International         Runway/terminal maintenance
                                        complex
   PA Philadelphia International       Environmental Impact
                                        Statements.
   PA Indiana County/Jimmy Stewart     Runway extension.
   SC Newberry Municipal               Security fence installation.
   SC Rock Hill Municipal/Bryant       Runway Extension Feasibility
       Field                            Study.
   SC Columbia Owens Downtown          Terminal Project.
   SC Pickens County                   Runway Rehabilitation.
   SC Chester Municipal                Runway improvements.
   SC Georgetown County                Terminal and ancillary
                                        improvements.
   SC Dillon County                    Land Acquisition and runway
                                        construction
   TN John C Tune                      Runway Safety Improvements.
   TN Nashville International          Rescue and Firefighting
                                        Facility Expansion.
   TN Upper Cumberland Regional        Runway extension.
   TN Nashville International          Rehabilitation of Runway 13/31.
   TX Nacogdoches-A L Mangham, Jr      Runway expansion.
       Regional
   TX Valley International             Expansion of concrete parking
                                        area.
   TX Denton Municipal                 Runway expansion and other
                                        improvements.
   TX Fort Worth Alliance              Runway extension.
   TX Brownsville/S Padre Island       Runway extension.
       International
   TX Edinburg International           Runway extension.
   UT Logan-Cache                      Various improvements.
   VT Edward F Knapp State             Emergency Response Center
                                        Hangar.
   VT Newport State                    Taxiway and Apron Improvements.
   VT Caledonia County                 Runway Lighting
   WA Spokane International            Taxiway ``C'' Extension
                                        Project.
   WI La Crosse Municipal              Construct parallel taxiway to
                                        enhance safety.
   WI Eagle River Union                Land reimbursement and
                                        improvements.
   WI Dane County Regional             Various improvements.
   WI John F Kennedy Memorial          Install security fencing.
   WI General Mitchell International   Alternative Fuel Vehicles.
   WI L O Simenstad Municipal          Various improvements.
   WI Rice Lake Regional-Carl's Field  Various improvements.
   WI Waukesha County                  Various improvements.
   WI Outagamie County Regional        Various improvements.
   WI Kenosha Regional                 Develop hangar area and
                                        construct perimeter road.
   WI Manitowoc County                 Various Improvements
   WV Raleigh County Memorial          Various Improvements
   WV Yeager                           Various Improvements
   WV Benedum                          Various Improvements
   WV Tri-State/Walker-Long Field      Various Improvements
   WV Greenbrier Valley                Various Improvements
   WV Morgantown Municipal-Walter L    Various Improvements
       Bill Hart Field
   WV Wood County/Gill Robb Wilson     Various Improvements
       Field
   WV Mercer County                    Various Improvements
   WV Upshur County Regional           Various Improvements
   WV Elkins-Randolph County-Jennings  Various Improvements
       Randolph Field
   WV Fairmont Municipal               Various Improvements
   WV Logan County                     Various Improvements
   WV Eastern WV Regional/Shephard     Various Improvements
       Field
   WV Marshall County                  Various Improvements
   WV Grant County                     Various Improvements
   WV Philippi-Barbour County          Various Improvements
       Regional
   WV Kee Field                        Various Improvements
   WV Mason County                     Various Improvements
   WV Jackson County                   Various Improvements
   WV Summersville                     Various Improvements
   WV Braxton County                   Various Improvements
   WV Welch Municipal                  Various Improvements
   WV Wheeling-Ohio County             Various Improvements
   WV Mingo County                     Various Improvements
------------------------------------------------------------------------

    Letters of Intent.--Congress authorized FAA to use letters 
of intent [LOI's] to fund multiyear airport improvement 
projects that will significantly enhance systemwide airport 
capacity. FAA is also to consider a project's benefits and 
costs in determining whether to approve it for AIP funding. FAA 
adopted a policy of committing to LOI's no more than roughly 50 
percent of forecasted discretionary funds allocated for 
capacity, safety, security, and noise projects. The Committee 
viewed this policy as reasonable because it gave FAA the 
flexibility to fund other worthy projects that do not fall 
under a LOI. Both FAA and airport authorities have found 
letters of intent helpful in planning and funding airport 
development.
    In addition, applications are pending for capacity 
enhancement projects which would, if constructed, significantly 
reduce congestion and delay. These projects require multiyear 
funding commitments. The Committee recommends that the FAA 
enter into letters of intent for multiyear funding of such 
capacity enhancement projects.
    Current letters of intent assume the following grant 
allocations for fiscal year 2005:

------------------------------------------------------------------------
                                                              Amount
------------------------------------------------------------------------
Alaska: Ted Stevens Anchorage International.............     $12,362,000
California: Norman Y. Mineta San Jose International.....       3,843,000
Colorado: Denver International..........................       3,250,000
Florida:
    Southwest Florida International.....................       4,000,000
    Miami International.................................       8,000,000
    Orlando International...............................       7,360,000
Georgia: The William B. Hartsfield Atlanta International      20,368,000
Illinois:
    Central Illinois Regional Airport...................       4,872,000
    Chicago Midway International........................      12,000,000
Indiana: Indianapolis International.....................      15,000,000
Kentucky: Cincinnati/Northern Kentucky International....      19,153,000
Maryland:
    Baltimore-Washington International..................       7,748,000
    Hagerstown Regional-Richard A. Henson Field.........       8,000,000
Michigan: Detroit Metropolitan Wayne County.............      18,790,000
Minnesota: Minneapolis-St Paul International/World-            8,000,000
 Chamberlain............................................
Missouri:
    Springfield-Branson Regional........................       5,400,000
    Lambert-St Louis International......................      17,789,000
North Carolina: Piedmont Triad International............      12,900,000
Nebraska: Eppley Airfield...............................       1,300,000
New Hampshire: Manchester...............................       5,144,000
Ohio:
    Cleveland Hopkins International.....................      10,211,000
    Port Columbus International.........................       4,000,000
Pennsylvania: Harrisburg International..................       6,660,000
Rhode Island: Theodore Francis Green State..............       1,100,000
Tennessee: Memphis International........................       6,149,000
Texas:
    Dallas/Fort Worth International.....................       5,692,000
    George Bush Intercontinental........................      17,500,000
Utah: Salt Lake City International......................       7,000,000
Washington: Seattle-Tacoma International................      25,504,000
                                                         ---------------
      Total.............................................     279,095,000
------------------------------------------------------------------------

    Passenger Facility Charges.--The Committee notes that a 
sizable alternative source of funding is available to airports 
in the form of passenger facility charges [PFC's]. The first 
PFC charge began for airline tickets issued on June 1, 1992. 
DOT data shows that as of December 31, 2002, 341 airports were 
approved to collect PFC's in the amount of $43,000,000,000. 
During calendar year 2003, airports collected $2,014,991,244 in 
PFC charges, and $2,045,000,000 is estimated to be collected in 
calendar year 2004. Of the airports collecting PFC's, 
approximately one-fifth collected about 90 percent of the 
total, and all of these are either large or medium hub 
airports. The first collections at the new $4.50 PFC level 
began on April 1, 2001, at 31 airports. As of December 31, 
2003, 200 airports have been approved to collect at the PFC 
level of $4.50. Eventually, the funding to airports from the 50 
percent nominal increase in authorized passenger facility 
charges will result in dramatically increased resources for 
airport improvements, expansions, and enhancements.
    Runway Incursion Prevention Systems and Devices.--The bill 
includes a provision that allows funds for grants-in-aid to 
airports to be used by airports to procure and install runway 
incursion prevention systems and devises.
    Explosive Detection System [EDS] Installation.--The 
accompanying bill retains language to prohibit funding under 
this limitation to be used for modifications to airports that 
are necessary to install bulk explosive detection systems. 
Funding for such modifications is now provided by the 
Department of Homeland Security.
    Administration.--The accompanying bill provides $68,802,000 
for administration of the airport program from within the 
overall limitation on obligations. The Committee recommendation 
fully funds the request for global aviation safety and 
strategic management pilot programs and limits funding for e-
grant data transfer systems to $500,000.
    Small Community Air Service Development Program.--The 
Committee includes $20,000,000, within the overall limitation 
on obligations for grants-in-aid to airports, for the small 
community air service development program. This is the same 
amount as the level provided in fiscal year 2004. The program 
is designed to improve air service to underutilized airports in 
small and rural communities. The total number of communities or 
groups of communities that can participate in the program is 
limited to no more than 4 from any one State and no more than 
40 in any fiscal year. The program gives priority to 
communities that have high air fares, will contribute a local 
share of the cost, will establish a public-private partnership 
to facilitate airline service, where assistance will provide 
benefits to a broad segment of the traveling public, and where 
the assistance will be used in a timely fashion.

                       GRANTS-IN-AID FOR AIRPORTS

                    (AIRPORT AND AIRWAY TRUST FUND)

                 (RESCISSION OF CONTRACT AUTHORIZATION)

Rescission, 2004........................................................
Budget estimate, 2005...................................................
Committee recommendation................................   -$265,000,000

    The Committee recommends a rescission of contract 
authorization of $265,000,000. Section 48112 of title 49, 
United States Code, stipulates that additional contract 
authorization for the grants-in-aid program is automatically 
made available in an amount equal to the difference between the 
appropriated level for the facilities and equipment program and 
the authorized amount for the same fiscal year. In fiscal year 
2004, $265,000,000 was made available pursuant to section 
48112. However, such funds exceed the obligation limitation for 
that fiscal year and are therefore available for rescission. 
This recommendation will have no programmatic impact on the 
grants-in-aid program.

          GENERAL PROVISIONS--FEDERAL AVIATION ADMINISTRATION

    Section 101 provides airports the authority to transfer 
certain instrument landing systems to the Federal Aviation 
Administration.
    Section 102 limits the number of technical staff years at 
the Center for Advanced Aviation Systems Development to no more 
than 350 in fiscal year 2005.
    Section 103 prohibits funds in this Act to be used to adopt 
guidelines or regulations requiring airport sponsors to provide 
the Federal Aviation Administration ``without cost'' buildings, 
maintenance, or space for FAA services. The prohibition does 
not apply to negotiations between FAA and airport sponsors 
concerning ``below market'' rates for such services or to grant 
assurances that require airport sponsors to provide land 
without cost to the FAA for air traffic control facilities.
    Section 104 authorizes the Federal Aviation Administration 
to use funds from airport sponsors, including the airport's 
``Grants-in-Aid for Airports'' entitlement funds, for the 
hiring of additional staff or for obtaining services of 
consultants for the purpose of facilitating environmental 
activities related to airport projects that add critical 
airport capacity to the national air transportation system.
    Section 105 extends the terms and conditions of the 
aviation insurance program, commonly known as ``war risk 
insurance,'' and air carrier liability for third party claims 
arising out of acts of terrorism from December 31, 2004 to 
December 31, 2005.

                     Federal Highway Administration

    The principal mission of the Federal Highway Administration 
is to, in partnership with State and local governments, foster 
the development of a safe, efficient, and effective highway and 
intermodal system nationwide including access to and within 
National Forests, National Parks, Indian Lands and other public 
lands.
    Under the Committee recommendations, a total program level 
of $35,834,632 would be provided for the activities of the 
Federal Highway Administration in fiscal year 2005. The 
following table summarizes the fiscal year 2004 program levels, 
the fiscal year 2005 program request and the Committee's 
recommendations:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                           Fiscal year--
                                                                 --------------------------------    Committee
                             Program                               2004 program     2005 budget   recommendation
                                                                       level         estimate
----------------------------------------------------------------------------------------------------------------
Federal-aid highways limitation.................................  \1\ 33,643,326     33,643,326      34,900,000
    Limitation on administrative expenses.......................   \2\ (335,612)       (349,594)       (349,594)
Exempt Federal-aid obligations..................................      1,195,139         834,632         834,632
Appalachian Development Highway System..........................    \3\ 124,263   ..............        100,000
Miscellaneous Highway Trust Fund................................     \4\ 49,705   ..............  ..............
Miscellaneous Appropriations....................................      \5\ 3,479   ..............  ..............
                                                                 -----------------------------------------------
      Total.....................................................    (35,351,524)    (34,827,552)     35,834,632
----------------------------------------------------------------------------------------------------------------
\1\ Reflects $199,640,000 rescission pursuant to Division H, section 168 of Public Law 108-199. Does not reflect
  $2,578,204 reduction per Division F, section 517 of Public Law 108-199.
\2\ Reflects $1,992,000 rescission pursuant to Division H, section 168 of Public Law 108-199. Does not reflect
  $1,997,000 reduction per Division F, section 517 of public law 108-199.
\3\ Reflects $738,000 rescission pursuant to Division H, section 168 of Public Law 108-199.
\4\ Reflects $295,000 rescission pursuant to Division H, section 168 of Public Law 108-199.
\5\ Reflects $21,000 rescission pursuant to Division H, section 168 of Public Law 108-199.

                 LIMITATION ON ADMINISTRATIVE EXPENSES

Appropriations, 2004 \1\................................    $335,612,000
Budget estimate, 2005...................................     349,594,000
Committee recommendation................................     349,594,000

\1\ Reflects $1,992,000 rescission pursuant to Division H, section 168 
of Public Law 108-199. Does not reflect $1,997,000 reduction per 
Division F, section 517 of public law 108-199.

    The limitation on administrative expenses controls spending 
for virtually all the salaries and expenses of the Federal 
Highway Administration. The Transportation Equity Act for the 
21st Century changed the funding source for the highway 
research accounts from the administrative takedown of the 
Federal-Aid Highway Program to individual contract authority 
provisions. The Committee recommends a limitation of 
$349,594,000.
    The following table reflects the fiscal year 2004 level, 
the 2005 level requested by the administration, and the 
Committee's recommendation:

                                      LIMITATION ON ADMINISTRATIVE EXPENSES
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                         Fiscal year--
                                                              ----------------------------------    Committee
                           Program                                                2005 budget     recommendation
                                                                  2004 level        estimate
----------------------------------------------------------------------------------------------------------------
Administrative Expenses:
    Salaries and benefits....................................          237,450          246,235          246,235
    Travel...................................................            9,577           12,757           12,757
    Transportation...........................................              470              470              470
    GSA rent.................................................           25,598           25,708           25,708
    Communications, rent, and utilities......................            9,712           10,894           10,894
    Printing.................................................            1,428            2,454            2,454
    Supplies.................................................            1,988            2,500            2,500
    Equipment................................................            5,702            5,026            5,026
    Other....................................................           43,687           43,550           43,550
                                                              --------------------------------------------------
      Total..................................................          335,612          349,594          349,594
----------------------------------------------------------------------------------------------------------------
\1\ Reflects reduction of $1,992,000 pursuant to Division H, section 168 of Public Law 108-199. Does not reflect
  reduction of $1,997,000 pursuant to Division F, section 517 of Public Law 108-199.

    Rail-Highway Crossing.--Title 23 United States Code, 
Section 130(d) requires each State to conduct and 
systematically maintain a survey of all highways to identify 
those railroad crossings which may require separation, 
relocation, or protective devices, and establish and maintain a 
schedule of projects for this purpose.
    In an effort to assist Congress in allocating scarce 
Federal funds, the Committee directs the Federal Highway 
Administration [FHWA] to submit a report to the House and 
Senate Committees on Appropriations no later than March 31, 
2005. The report shall contain the schedule of State projects 
required by 23 U.S.C. 130(d) related to the installation of 
protective devices including cost, location, priority status 
and project description.

                  LIMITATIONS ON ADDITIONAL ACTIVITIES

    Grants for the National Amber Alert Network.--On April 30, 
2003, the president signed into law the PROTECT Act (Public Law 
108-21), formally establishing the Federal Government's role in 
the Amber Alert system. Amber Alerts use technology to 
disseminate information about child abductions in a timely 
manner in an effort to quickly recover kidnapped children 
through utilization of an integrated response network. Amber 
Alert plans are voluntary partnerships including law 
enforcement agencies, highway departments, and media companies 
that provide emergency alert broadcasts and utilize the 
Emergency Alert System [EAS], highway messages boards, 
telephone alert systems, the internet, and e-mail.
    The Committee is supportive of the National Amber Alert 
Network and agrees that national coordination of the many State 
Amber Alert systems is essential if the network is to become a 
vital law enforcement tool in child abduction cases. The 
Committee has included $15,000,000 to support grants for the 
National Amber Alert Network.
    Delta Region Transportation Development Program.--The 
Committee recommendation for additional LAE activities includes 
$50,000,000 for grants pursuant to the Delta Region 
Transportation Development Program. The Committee is encouraged 
by this innovative approach to facilitate multistate 
transportation planning and corridor development, 
transportation decision-making, and expedited project delivery 
for severely economically challenged areas, and directs the 
agency to proceed quickly on this program. Priority 
consideration is to be given to highway upgrades and 
improvements on U.S. 60 from Carter County to Howell County, 
Missouri; U.S. 67 Improvements from Madison County to Butler 
County, Missouri; East/West corridor realignment and 
reconstruction between Montgomery, Alabama and Cuba, Alabama; 
widening of LA Highway 671, Jeanerette, Iberia Parish, 
Louisiana; repair of the Georgie Ridge Bridge, Richland and 
Morehouse Parishes, Louisiana; improvements to US 412 between 
Mountain Home and Highway 101 and between Paragould and Big 
Slough Ditch, Baxter, Clay, and Greene Counties, Arkansas; the 
Mississippi Regional Corridors Project; and Desha County, 
Arkansas.
    Environmental Streamlining.--The Committee recommendation 
includes $5,000,000 for Federal Highway Administration 
environmental streamlining initiatives.

                          FEDERAL-AID HIGHWAYS

                      (LIMITATION ON OBLIGATIONS)

                          (HIGHWAY TRUST FUND)

Limitation, 2004 \1\.................................... $33,643,326,000
Budget estimate, 2005...................................  33,643,326,000
Committee recommendation................................  34,900,000,000

\1\ Reflects reduction of $199,674,000 pursuant to Division H, section 
168 of Public Law 108-199. Does not reflect reduction per Division F, 
section 517 of Public Law 108-199 of $2,578,000.

    The accompanying bill includes language limiting fiscal 
year 2005 Federal-aid highways obligations to $34,900,000,000, 
which is $1,256,674,000 more than the budget request and the 
fiscal year 2004 comparable level. The following table displays 
the State-by-State distribution of funds under the Committee 
recommendation, the President's request and the fiscal year 
2004 level.

         FEDERAL HIGHWAY ADMINISTRATION ESTIMATED FISCAL YEAR 2005 DISTRIBUTION OF OBLIGATION LIMITATION
----------------------------------------------------------------------------------------------------------------
                                                   Estimated Fiscal     Fiscal Year 2005     Fiscal Year 2005
                     States                            Year 2004          President's            Committee
                                                 Distribution \1\ \3\    Budget \2\ \3\   Recommendation \2\ \3\
----------------------------------------------------------------------------------------------------------------
Alabama........................................         $577,467,570        $611,280,766          $628,046,051
Alaska.........................................          294,287,566         324,572,483           332,240,908
Arizona........................................          511,224,069         547,691,113           562,349,173
Arkansas.......................................          357,394,759         392,327,433           403,114,275
California.....................................        2,681,210,252       2,938,681,544         3,020,798,084
Colorado.......................................          375,270,871         413,011,467           424,524,694
Connecticut....................................          406,335,972         441,483,072           453,109,615
Delaware.......................................          126,928,685         141,478,026           145,393,950
District of Columbia...........................          121,142,744         130,696,906           134,537,235
Florida........................................        1,391,946,967       1,488,757,772         1,527,671,225
Georgia........................................        1,023,684,867       1,092,873,247         1,121,936,876
Hawaii.........................................          149,717,592         160,736,786           165,165,992
Idaho..........................................          208,200,453         223,122,371           229,120,290
Illinois.......................................          979,479,163       1,053,895,520         1,083,807,444
Indiana........................................          635,773,030         697,633,246           716,398,310
Iowa...........................................          353,301,851         380,390,883           391,279,417
Kansas.........................................          344,026,297         370,459,121           381,083,890
Kentucky.......................................          513,084,626         543,304,650           558,373,773
Louisiana......................................          430,260,918         480,845,267           494,218,508
Maine..........................................          155,287,705         166,924,389           171,601,796
Maryland.......................................          488,094,759         523,210,217           537,827,200
Massachusetts..................................          538,671,401         589,243,652           606,007,600
Michigan.......................................          897,815,769         963,557,273           989,982,309
Minnesota......................................          403,302,576         452,636,575           465,494,025
Mississippi....................................          343,381,286         376,487,057           387,043,288
Missouri.......................................          652,335,564         716,292,758           736,480,475
Montana........................................          270,253,084         295,777,150           303,523,763
Nebraska.......................................          238,480,446         256,796,727           264,159,023
Nevada.........................................          211,395,813         226,696,139           232,846,161
New Hampshire..................................          145,641,399         156,417,932           160,749,599
New Jersey.....................................          781,704,685         840,510,889           864,148,255
New Mexico.....................................          269,649,652         296,659,634           304,782,174
New York.......................................        1,449,490,153       1,555,105,225         1,598,240,499
North Carolina.................................          818,628,471         872,601,020           896,152,003
North Dakota...................................          188,358,939         207,577,455           213,379,389
Ohio...........................................          963,246,831       1,052,938,403         1,082,145,537
Oklahoma.......................................          462,796,057         498,308,858           512,583,357
Oregon.........................................          332,217,342         365,303,798           375,581,667
Pennsylvania...................................        1,396,817,738       1,480,526,093         1,522,032,494
Rhode Island...................................          172,975,997         188,897,991           194,149,844
South Carolina.................................          479,490,022         513,493,248           527,311,948
South Dakota...................................          197,300,274         217,048,937           223,056,255
Tennessee......................................          623,571,991         674,414,731           693,048,102
Texas..........................................        2,312,433,868       2,477,807,757         2,544,280,389
Utah...........................................          229,063,221         246,573,313           253,611,558
Vermont........................................          133,369,431         146,421,641           150,565,010
Virginia.......................................          712,325,661         778,720,282           799,991,006
Washington.....................................          518,418,747         557,887,818           573,752,554
West Virginia..................................          293,966,446         313,521,146           322,265,127
Wisconsin......................................          563,831,680         604,145,665           620,350,017
Wyoming........................................          190,846,450         216,434,506           222,579,866
                                                ----------------------------------------------------------------
      SUBTOTAL.................................       28,915,901,710      31,262,179,952        32,122,892,000
Allocated Programs \4\.........................        4,724,846,387       2,386,146,348         2,777,108,000
                                                ----------------------------------------------------------------
      TOTAL....................................       33,640,748,097      33,648,326,300        34,900,000,000
----------------------------------------------------------------------------------------------------------------
\1\ Fiscal year 2004 amounts are estimated pending additional action of Congress during the fiscal year. Amounts
  do not include additional obligation authority provided by Chapter 4, Section 14003 of the Department of
  Defense Appropriations Act, 2005, Public Law 108-287.
\2\ Obligation limitation distributed among the States based on fiscal year 2004 distribution.
\3\ Amounts for each State include special limitation for minimum guarantee and Appalachia and exclude exempt
  minimum guarantee and emergency relief.
\4\ Includes territories. Fiscal year 2004 amount includes funding for section 115 projects.

                     FEDERAL-AID HIGHWAYS PROGRAMS

    The roads and bridges that make up our nation's highway 
infrastructure are built, operated, and maintained through the 
joint efforts of Federal, State, and local governments. States 
have much flexibility to use Federal-aid highway funds to best 
meet their individual needs and priorities, with FHWA's 
assistance and oversight.
    The Transportation Equity Act for the 21st Century [TEA21], 
the highway, highway safety, and transit authorization through 
fiscal year 2003 makes funds available in the following major 
categories:
    National Highway System.--The Intermodal Surface 
Transportation Efficiency Act [ISTEA] of 1991 authorized the 
National Highway System [NHS], which was subsequently 
established as a 163,000-mile road system by the National 
Highway System Designation Act of 1995. This system serves 
major population centers, intermodal transportation facilities, 
international border crossings, and major destinations. It is 
comprised of all interstate routes, selected urban and 
principal rural arterials, defense highways, and major highway 
connectors carrying up to 76 percent of commercial truck 
traffic and 44 percent of all vehicle traffic. A State may 
transfer up to half of its NHS funds to the Surface 
Transportation program [STP] and all NHS funds with the 
concurrence of the Secretary of Transportation. The Federal 
share of the NHS is an 80 percent match and funds remain 
available for 4 fiscal 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. The TEA21 provides 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 very flexible program that may be used by 
the States and localities for any roads (including NHS) that 
are not functionally classified as local or rural minor 
collectors. These roads are collectively referred to as 
Federal-aid highways. Bridge projects paid 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 TEA21 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.--The 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 the national bridge needs 
used in the program's apportionment formula for the following 
year.
    At least 15 percent, but not more than 35 percent, of a 
State's apportioned bridge funds must be spent on bridges not 
on the Federal-aid system.
    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, as long as DOT, 
after consultation with EPA, determines they are likely to help 
meet national ambient air quality standards. TEA21 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 regional emissions and verifying new mobile 
source control techniques.
    Federal Lands Highways.--This program provides 
authorizations through three major categories--Indian 
reservation roads, parkways and park roads, and public lands 
highways (which incorporates the previous forest highways 
category)--as well as a new category for Federally-owned public 
roads providing access to or within the National Wildlife 
Refuge System. TEA21 also establishes a new program for 
improving deficient bridges on Indian reservation roads.
    The Committee directs that the funds allocated for this 
program in this bill and in permanent law are to be derived 
from the FHWA's public lands discretionary program, and not 
from funds allocated to the National Park Service's regions.
    Minimum Guarantee.--Under TEA21, 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 under current law as extended 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, 
$2,800,000,000 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. TEA21 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.
    National Corridor Planning and Border Infrastructure 
Programs.--TEA21 created a national corridor planning and 
development program that identifies funds for planning, design, 
and construction of highway 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 
outlined in legislation. The coordinated border infrastructure 
program is established to improve the safe movement of people 
and goods at or across the U.S./Mexico and U.S/Canada borders.
    Ferry Boats and Ferry Terminal Facilities.--Section 1207 of 
TEA21 authorized funding for the construction of ferry boats 
and ferry terminal facilities.
    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. 
The Committee recommendation provides $26,500,000 for this 
program in fiscal year 2005.
    Transportation and Community and System Preservation Pilot 
Program.--TEA21 created 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 projects. These grants may be used to 
improve the efficiency of the transportation system, reduce 
transportation externalities and the need for future 
infrastructure investment, and improve transportation 
efficiency and access consistent with community character.
    Transportation Infrastructure Finance and Innovation.--The 
Committee bill includes a rescission of $100,000,000 from this 
program. However, the Committee notes that, even with this 
rescission, sufficient funds will remain available to entertain 
additional applications. The Committee is aware of a proposal 
to use TIFIA financing to support the expansion of a fast ferry 
project in the Great Lakes region. The Committee encourages the 
Secretary to consider such an application should the project be 
creditworthy and fully eligible for TIFIA financing.
    New Mexico Muscatel Avenue Bridge Project.--Amounts made 
available in fiscal year 2004 for the Muscatel Avenue bridge 
project shall be available for other bridge projects in or 
around the city of Carlsbad damaged by flooding.
    I-15 from Utah--Salt Lake County Line to SR-92.--Amounts 
made available in fiscal year 2004 for I-15 from the Utah--Salt 
Lake County Line to SR-92 shall be available for I-15 Utah 
County.
    Market Street Bridge Pennsylvania.--Amounts made available 
in fiscal year 2004 for the Market Street Bridge shall be 
available for the Walnut Street Bridge in Philadelphia, 
Pennsylvania.
    University of Delaware Intermodal Transportation 
Facility.--Amounts made available in fiscal year 2004 for the 
University of Delaware Intermodal Transportation Facility shall 
be available for the Pedestrian-Bicycle Bridge at the 
University of Delaware.
    Pierre Rail Bypass.--Amounts made available in fiscal year 
2003 for the Pierre Rail Bypass shall be available for expenses 
incurred after the date of that appropriation by the city of 
Pierre, South Dakota associated for the proposed bypass and for 
a mitigation plan associated with the Dakota, Eastern and 
Minnesota Railroad line through Pierre, South Dakota.
    Alaskan Way Viaduct, Seattle, WA.--The Committee is 
dismayed that the FHWA has failed to respond to the Committee's 
request in last year's Committee report to review the 
eligibility of the Alaskan Way Viaduct project for additional 
emergency relief funds. The viaduct and the adjacent seawall 
were damaged in the Nisqually earthquake in 2001. While 
emergency relief funds were allocated to the viaduct for 
immediate repairs needed to keep the facility open to traffic, 
significantly further damage resulting from the earthquake has 
become evident. The extent of this damage will require the 
near-term replacement of the facility since another earthquake 
of similar magnitude could easily result in a catastrophic 
failure of the roadway. The Committee directs FHWA to report to 
the Committee not later than December 31, 2004 on the 
eligibility of the viaduct for additional emergency relief 
funds, taking into account all engineering information that has 
become available subsequent to the initial allocation of funds 
to the facility.

                          FEDERAL-AID HIGHWAYS

                              (RESCISSION)

    The bill rescinds $300,000,000 in contract authority 
balances from the five core programs. The Committee directs 
FHWA to administer the rescission by allowing each State 
maximum flexibility in making these adjustments among the five 
programs.

                 APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM

Appropriations, 2004 \1\................................    $124,263,000
Budget estimate, 2005 \2\...............................................
Committee recommendation................................     100,000,000

\1\ Reflects reduction of $737,000 pursuant to Division H, section 168 
of Public Law 108-199.
\2\ The budget estimate requests funding under the Federal-Aid Highway 
obligation limitation.

    The Committee recommendation includes $100,000,000 for the 
Appalachian Development Highway System [ADHS]. The recommended 
amount provided is $24,263,000 less than the fiscal year 2004 
comparable level. Funding for this initiative is authorized 
under section 1069(y) of Public Law 102-240--the Intermodal 
Surface Transportation Efficiency Act. The ADHS program 
provides funds for the construction of the Appalachian corridor 
highways in the 13 States that comprise the Appalachian region. 
These highways, in many instances, are intended to replace some 
of the most deficient and dangerous segments of rural roadway 
in America.

                 LIMITATION ON TRANSPORTATION RESEARCH

Limitation, 2004 \1\ \2\................................    $459,771,000
Budget estimate, 2005 \1\ ..............................     428,699,000
Committee recommendation................................     462,500,000

\1\ Resources requested in fiscal year 2005 are assumed within the 
Federal aid highway obligation limitation in the budget request for 
fiscal year 2005.
\2\ Reflects $2,729,000 reduction per Division H, section 168 of Public 
Law 108-199. Does not reflect reduction of $581,000 pursuant to Division 
F, section 517 of Public Law 108-199.

    The limitation controls spending for the transportation 
research and technology programs of the FHWA. This limitation 
includes the intelligent transportation systems, surface 
transportation research, technology deployment, training and 
education, and university transportation research. The 
Committee recommendation provides an obligation limitation for 
transportation research of $462,500,000. This limitation is 
consistent with current law as extended and is the same level 
appropriated in fiscal year 2004.

                  LIMITATION ON TRANSPORTATION RESEARCH
------------------------------------------------------------------------

------------------------------------------------------------------------
Surface transportation research.........................    $103,000,000
Technology Deployment program...........................      50,000,000
Training and education..................................      18,000,000
Bureau of Transportation Statistics.....................      31,000,000
ITS Standards, research, operational tests, and              110,000,000
 development............................................
ITS Deployment..........................................     124,000,000
University transportation research......................      26,500,000
                                                         ---------------
    Subtotal............................................     462,500,000
------------------------------------------------------------------------

                    SURFACE TRANSPORTATION RESEARCH

    Within the funds provided for highway research and 
development, the Committee makes the following recommendations 
for the surface transportation research program:

------------------------------------------------------------------------
                         Project                              Amount
------------------------------------------------------------------------
Environment, Planning & Right-of-way....................     $17,000,000
Research and Technology Program Support.................      10,000,000
International Research..................................         400,000
Structures..............................................      13,000,000
Safety..................................................      11,000,000
Highway Operations......................................      12,500,000
Asset Management........................................       2,750,000
Pavements Research......................................      15,750,000
Policy Research.........................................       9,200,000
Long Term Pavement Project [LTPP].......................      10,000,000
Advanced Research.......................................         400,000
R&T Strategic Planning/Performance Measures.............       1,000,000
                                                         ---------------
      Total.............................................     103,000,000
------------------------------------------------------------------------

    Environment, Planning, and Right of Ways.--The Committee 
recommendation includes $17,000,000 for environment, planning, 
and right of way research. Within the funds provided for this 
research activity, the Committee has provided $1,000,000 to 
continue dust and persistent particulate abatement research in 
Emmonak, Alaska and $350,000 for the North Carolina University 
Center for Transportation and Environment to promote 
environmental awareness in the civil engineering and 
traditional engineering curricula.
    Research and Technology Program Support.--The Committee 
recommends $10,000,000. Within the funds available for research 
and technology, the Committee has provided $750,000 for the 
Center on Coastal Transportation Research at the University of 
South Alabama, $400,000 for NEPA training at the Pellissippi 
State Community College in Tennessee, and $1,000,000 for the 
University of Vermont to conduct research related to Dynamic 
Transportation Modeling and Advanced Ground Penetrating Radar 
[GPR] Systems.
    International Research.--The Committee recommendation 
includes $400,000 for international research.
    Structures.--The Committee recommends $13,000,000 for 
structures research. This research effort allows FHWA to reduce 
deficiencies on National Highway System bridges and should 
facilitate continued progress on high performance materials and 
engineering applications to design, repair, retrofit, inspect, 
and rehabilitate bridges. Within the funds provided for this 
research activity, the Committee has provided $200,000 for the 
University of Maine, to study the use of composite materials to 
extend the life of ports, $250,000 to continue to support non-
destructive structural evaluation technology at the New Mexico 
State University's Bridge Research Center, $200,000 for the 
University of Dayton and the Ohio Department of Transportation 
to develop a portable, low cost, wireless bridge inspection 
system, and $500,000 for Oklahoma's Center for Structural 
Control and Vibration Research for implementing an intelligent 
vehicle bridge sensor system. The Committee recommendation also 
has provided $500,000 to West Virginia University Constructed 
Facilities Center for fire and blast resistant composite 
barriers research and $250,000 for the University of Delaware's 
innovative bridge research program. In addition, the Committee 
continues to be concerned about the damage that alkali-silica 
reactivity [ASR] causes to concrete structures and pavements 
since ASR is difficult to detect in its early stages. The 
Committee strongly encourages FHWA to continue its research and 
deployment of lithium technologies to prevent and mitigate ASR 
since advances in these lithium technologies have the potential 
to help increase the durability of our transportation 
infrastructure.
    Safety.--The Committee recommendation provides $11,000,000 
for safety research. This program develops engineering 
practices, analysis tools, equipment, roadside hardware, safety 
promotion and public information that will significantly 
contribute to the reduction of highway fatalities and injuries. 
Within the funds provided for safety, the Committee has 
provided $750,000 for Mississippi State University to develop a 
regional center for Transportation Safety.
    Highway Operations.--The Committee recommendation provides 
$12,500,000 for research activities regarding highway 
operations. 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. Within the funds provided, the Committee has 
included $400,000 for Utah State University Transportation 
Center to conduct follow-on research related I-15 and 
mitigation of traffic congestion, $2,000,000 for the Puget 
Sound In-Vehicle Traffic Map Demonstration Initiative in 
Washington State and $500,000 for the Pacific Northwest Freight 
Mobility Research Program at Washington State University, the 
University of Washington, and North Dakota State University.
    Asset Management.--The Committee recommends $2,750,000 for 
asset management research activities.
    Pavements Research.--The Committee recommends $15,750,000 
for highway pavement research, including work on asphalt, 
Portland cement pavement research, polymer additives, and 
recycled materials for the National Center for Asphalt 
Technology [NCAT]. Within the funds provided, the Committee has 
included $1,000,000 to the Center for Portland Cements Concrete 
Pavement Technology at Iowa State University, $500,000 to fund 
pilot studies in Ohio, Montana and South Carolina to test newly 
developed Road Pave Map which was designed to increase road 
life spans.
    Policy.--The Committee recommends $9,200,000 for policy 
research. Within the funds provided for this research activity, 
the Committee has $750,000 for the University of Kentucky 
Academy for Community Transportation Innovation planning to 
continue research into methods to integrate transportation 
facilities into communities in rural areas.
    Advanced Research.--The Committee recommendation provides 
$400,000.
    R&T Strategic Planning and Performance Measures.--The 
Committee has provided $1,000,000 for research and technology 
strategic planning and performance measures. The Committee 
anticipates that this level of funding will be sufficient to 
support planned strategic planning activities, research 
outreach, and development and refinement of performance 
measures, as required by the Government Performance and Results 
Act [GPRA].
    ITS Standards, Research, Operational Tests, Development, 
and Deployment.--The Committee recommends $124,000,000 for ITS 
deployment projects and $110,000,000 for ITS research and 
associated activities in fiscal year 2005 to be allocated in 
the following manner:

------------------------------------------------------------------------

------------------------------------------------------------------------
Research and Development................................     $52,000,000
Operational Tests.......................................      10,000,000
Evaluation/Program Policy Assessment....................       7,000,000
Architecture and Standards..............................      18,000,000
Program Support.........................................      11,500,000
Integration.............................................      11,500,000
ITS Deployment Incentive Program........................     124,000,000
------------------------------------------------------------------------

                  BUREAU OF TRANSPORTATION STATISTICS

                      (LIMITATION ON OBLIGATIONS)

Appropriations, 2004 \1\................................     $30,817,000
Budget estimate, 2005...................................      32,199,000
Committee recommendation................................      31,000,000

\1\ Reflects reduction of $183,000 pursuant to Division H, section 168 
of Public Law 108-199. Does not reflect a reduction of $581,000 pursuant 
to Division F, section 517 of Public Law 108-199.

    The Bureau of Transportation Statistics [BTS], which is 
charged with compiling, analyzing, and disseminating 
statistical information on the Nation's transportation systems, 
commenced operation in December 1992 after being established by 
section 6006 of the Intermodal Surface Transportation 
Efficiency Act [ISTEA] (Public Law 102-240). BTS was 
reauthorized, and its role expanded, by section 5109 of the 
Transportation Equity Act for the 21st Century [TEA21] (Public 
Law 105-178) under which it currently operates. BTS' data 
collection programs for aviation and motor carrier information 
are authorized under separate legislation enacted when the 
Civil Aeronautics Board [CAB] and Interstate Commerce 
Commission [ICC] were terminated.
    Consistent with current law, the Committee has provided 
$31,000,000 for BTS, which is $1,199,000 less than the budget 
request and $183,000 more than the fiscal year 2004 level. In 
doing so, the Committee denies BTS' request for $4,045,000,000 
in reimbursable funding from the Airport and Airway Trust Fund 
to fund its air transportation activity. The Committee 
maintains BTS' total full time positions at 136.

                          FEDERAL-AID HIGHWAYS

                (LIQUIDATION OF CONTRACT AUTHORIZATION)

                          (HIGHWAY TRUST FUND)

Appropriations, 2004.................................... $34,000,000,000
Budget estimate, 2005...................................  34,000,000,000
Committee recommendation................................  35,000,000,000

    The Committee recommends a liquidating cash appropriation 
of $35,000,000,000. The recommended level is $1,000,000,000 
more than the budget request and is necessary to pay 
outstanding obligations from various highway accounts pursuant 
to prior appropriations acts.

           GENERAL PROVISIONS--FEDERAL HIGHWAY ADMINISTRATION

    Section 110 distributes obligation authority among Federal 
aid highway programs.
    Section 111 credits funds received by the Bureau of 
Transportation Statistics to the Federal-aid highways account.
    Section 112 related to administrative take downs.
    Section 113 rescinds Transportation Infrastructure Finance 
and Innovation Act funds under section 188(A)(1) of title 23.
    Section 114 amends section 115, division F, title I of 
Public Law 108-199.
    Section 115 clarifies eligibility of the Port of Anchorage 
for certain highway programs.
    Section 116 clarifies RETRAC project contingency fund for 
payment of projects.
    Section 117 relates to project funding in Utah.
    Section 118 names the Hoover Dam Bypass Bridge as the Mike 
O'Callaghan-Pat Tillman Memorial Bridge.

              Federal Motor Carrier Safety Administration

    The Federal Motor Carrier Safety Administration [FMCSA] was 
established within the Department of Transportation through 
Congress' enactment of the Motor Carrier Safety Improvement Act 
[MCSIA] (Public Law 106-159) in December 1999. Prior to this 
legislation, motor carrier safety responsibilities were under 
the jurisdiction of the Federal Highway Administration.
    FMCSA's primary mission is to improve the safety of 
commercial vehicle operations on our Nation's highways. To 
accomplish this mission, FMCSA is focused on reducing the 
number and severity of large truck crashes. FMCSA is 
responsible for ensuring that Mexican commercial vehicles 
entering the United States operate in accordance with the North 
American Free Trade Agreement [NAFTA] and comply with all U.S. 
hazardous material and safety regulations. In addition, FMCSA 
oversees compliance with the Federal Motor Carrier Commercial 
Regulations through increased household goods carrier 
enforcement, education and outreach.
    Agency resources and activities contribute to 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, recordkeeping, 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.
    MCSIA and the Transportation Equity Act for the 21st 
Century [TEA21] provide funding authorizations for FMCSA, 
including administrative expenses, motor carrier research and 
technology, the national Motor Carrier Safety Assistance 
Program [MCSAP] and the Information Systems and Strategic 
Safety Initiatives [ISSSI] program. FMCSA's scope was expanded 
by the U.S.A. Patriot Act, which created new and enhanced 
security measures. In addition, the Appropriations Acts since 
fiscal year 2002 have included funding for border enforcement 
and safety related activities associated with implementation of 
the North American Free Trade Agreement requirement that 
Mexican long-haul shippers be allowed to operate within the 
United States subject to the same safety and environmental 
requirements placed on American commercial carriers.
    For fiscal year 2005, it is necessary to reauthorize those 
FMCSA programs contained in TEA21 and MCSIA. The budget request 
reflects the administration's reauthorization proposal for a 
new account structure for FMCSA that consolidates the current 
programs into two distinct accounts: Motor Carrier Safety 
Operations and Programs and Motor Carrier Safety Grants. As in 
fiscal year 2004, the Committee has followed the program 
structure found in current law for FMCSA and assumes funding 
levels as if authorized through the end of fiscal year 2005.
    The Surface Transportation Extension Act of 2003 eliminated 
the takedown and instead authorized a line item appropriation 
for this account.
    The Committee recommends a total of $450,000,000 for FMCSA 
in fiscal year 2005, which is $5,450,000 less than the 
requested amount and $21,589,000 more than the fiscal year 2004 
level. The Committee provides this funding with the expectation 
that Congress will soon act to provide sufficient contract 
authority to reflect this amount.

                          MOTOR CARRIER SAFETY

                (LIMITATION ON ADMINISTRATIVE EXPENSES)

                          (HIGHWAY TRUST FUND)

Appropriations, 2004 \1\................................    $175,031,000
Budget estimate, 2005 (limitation) \2\..................................
Committee recommendation................................     260,000,000

\1\ Reflects reduction of $1,039,000 pursuant to Division H, section 168 
of Public Law 108-199.
\2\ No funding requested under this account for fiscal year 2005.

    The motor carrier safety account provides salaries, 
expenses, research, and safety program funding for FMCSA. The 
Committee has provided a limitation on administrative expenses 
of $260,000,000 for the Motor Carrier Safety Account, which is 
$5,450,000 less than the requested amount and $83,930,000 more 
than the annual authorized level of $176,070,000.

                           OPERATING EXPENSES

    The Committee provides $141,064,000 for FMCSA's operating 
expenses. Within this amount the Committee provides the 
following funding levels:


------------------------------------------------------------------------
                                                              Amount
------------------------------------------------------------------------
General Operating Expenses..............................     $93,494,000
Border Operating Expenses...............................      31,735,000
Administrative Infrastructure Completion................       8,000,000
Household Goods Enforcement.............................       2,000,000
Reviews of Conditional Carriers.........................       2,000,000
Working Capital Fund Desktop Services...................         135,000
Non-Entrant Initiative..................................       1,000,000
HAZMAT Permitting.......................................       2,000,000
HAZMAT Sampling.........................................         200,000
HAZMAT Routing..........................................         500,000
------------------------------------------------------------------------

    Administrative Infrastructure Completion.--The Committee 
provides a total of $8,000,000 for FMCSA's administrative 
infrastructure completion initiative, which is $2,558,000 less 
than the budget request and $1,041,000 more than the fiscal 
year 2004 level. Based upon the justification for this funding, 
the Committee is confident that this is a sufficient amount for 
this effort.
    Household Goods Enforcement.--The Committee provides 
$2,000,000 for household goods enforcement, which is $700,000 
more than the budget request and $1,085,000 more than the 
fiscal year 2004 enacted level. The Committee provides this 
additional funding for five new safety specialists to audit 
motor carriers transporting household goods. Each year FMCSA 
receives approximately 5,000 complaints from consumers 
regarding the practices of movers of household goods. The 
Committee maintains that additional auditors are needed that 
consumers are protected and that these shipments are conducted 
safely.
    Working Capital Fund Desktop Services.--The Committee 
provides $135,000 to cover the increase in FMCSA's estimated 
DOT working capital fund contribution. This is $842,000 less 
than the budget request, as the Committee believes that the 
amount provided for FMCSA's information management program is 
sufficient for this balance.
    Safety Enforcement Activities.--The Committee believes that 
FMCSA should revisit the effectiveness of its safety 
enforcement activities. Beginning in the late 1990's, in 
response to pointed congressional criticism over lax 
enforcement and in response to the concerns raised by the 
United States Government Accountability Office [GAO] and the 
DOT Office of Inspector General [OIG], FMCSA indicated a 
willingness to increase both the amount of effort devoted to 
enforcement against carriers and the severity of action when 
safety problems are found. After having given FMCSA ample time 
to implement this new resolve and to demonstrate results, the 
Committee believes that an independent review is both warranted 
and timely. Therefore, the Committee requests that GAO assess 
the agency's safety enforcement actions as a means of 
increasing large commercial truck safety.

                            PROGRAM EXPENSES

    The Committee provides $118,936,000 for FMCSA's program 
expenses. Within this amount the Committee provides the 
following funding levels:

------------------------------------------------------------------------
                                                              Amount
------------------------------------------------------------------------
Federal New Entrant Program.............................      $4,700,000
State New Entrant Grants................................      28,711,000
Research & Technology...................................      10,791,000
Regulatory Development..................................      11,143,000
Outreach & Education....................................       4,513,000
Information Management Program..........................      15,300,000
24-Hour Telephone Hotline...............................         378,000
Crash Data Collection...................................       7,400,000
Border Enforcement Grants...............................      33,000,000
Commercial Drivers License Improvement Grants...........       3,000,000
------------------------------------------------------------------------

    Federal New Entrant Program.--The administration's budget 
request proposes a total of $33,411,000 for the new entrant 
program, which includes $16,411,000 for the Federal share of 
the Program and $17,000,000 for the State share. The Committee 
believes that a greater proportion of the total request should 
be provided to the States and that FMCSA's role should focus on 
overseeing this program and managing third party auditors as 
they conduct reviews of new entrants in those States that do 
not fully participate in this activity. Accordingly, the 
Committee provides $4,700,000 for the Federal new entrant 
program, which is $11,711,000 below the budget request and 
$1,200,000 more than the fiscal year 2004 enacted level. The 
Committee has provided a corresponding $11,711,000 increase in 
State new entrant program grant funding in order to maintain 
the balance that was struck in fiscal year 2004 and to continue 
effective State participation in the program.
    More than 40 States have submitted applications for fiscal 
year 2004 new entrant program funding and few States expect to 
use third party contractors to conduct these audits. The 
Committee therefore denies FMCSA's request for 20 additional 
FTEs for program management, review, and approval. The 
Committee instead provides 5 FTEs to conduct follow-up 
compliance reviews of new entrants. Sufficient funds are also 
provided to allow for the annualization of the 5.5 FTEs 
initially funded in fiscal year 2004.
    State New Entrant Grants.--Because the Committee believes 
that State officials and MCSAP program managers need the 
certainty of Federal support in order to properly incentivize 
their permanent participation in the new entrant program, the 
Committee has provided $28,711,000 for State New Entrant 
Grants, which is $11,711,000 greater than the requested amount 
and $3,811,000 more than the fiscal year 2004 enacted level.
    New Entrant Safety Audits.--The Committee is concerned that 
the new entrant safety audit program is being conducted as an 
education and outreach initiative rather than an enforcement 
program. Consequently, within 90 days of enactment of this Act, 
FMCSA is directed to submit to the House and Senate Committees 
on Appropriations a letter that explains the audit procedure 
improvements the agency's plans to implement in order to 
maximize the program's safety benefits and to enhance carrier 
compliance. The Committee expects that FMCSA will evaluate and 
consider adopting each of the following options: (1) specifying 
to its investigators and State personnel that criteria that 
would trigger an enforcement action should apply equally to new 
entrants as well as to other carriers; (2) collecting 
sufficient data, whenever possible, that could lead to the 
assignment of a safety rating as a result of a new entrant 
audit; and (3) selecting new entrants to be audited based on 
risk and inspection data. This letter should detail which, if 
any, of these options are being implemented and the reasons for 
any that are not.
    Federally Conducted Compliance Reviews.--The Committee is 
concerned that the number of federally conducted compliance 
reviews and enforcement actions has decreased significantly 
since the new entrant program commenced and directs FMCSA to 
ensure that it reverses this trend consistent with the 
objectives and goals of MCSIA. The Committee also directs FMCSA 
to work closely with the States to promote their continued 
participation in a vigorous compliance review program. In order 
to monitor its progress, the Committee directs FMCSA to report 
to the House and Senate Committees on Appropriations on the 
number of completed compliance reviews and new extrant safety 
audits with the agency's fiscal year 2006 budget request.
    Research and Technology.--The Committee provides 
$10,791,000 for FMCSA's Research and Technology [R&T] 
activities, consistent with the requested amount and $3,832,000 
more than the fiscal year 2004 enacted level. Within this 
amount, funds are provided for the testing and evaluation of 
both stationary and mobile radiation detection devices.
    A significant volume of anecdotal evidence indicates that 
truck driver history and past violations are reliable 
predictors of future accidents and safety violations. 
Unfortunately, there is a dearth of scientific research 
analyzing the potential correlation between these factors. The 
Committee therefore provides $200,000 within R&T for FMCSA to 
partner with industry to study this relationship and develop 
appropriate enforcement strategies that will reduce the 
likelihood of future safety violations and accidents.
    As in previous fiscal years, R&T funds are intended to 
remain available for obligation for a period of 3 years.
    Outreach and Education.--The Committee provides $4,513,000 
for FMCSA's outreach and education Program [O&E], which is 
$1,000,000 more than the requested amount and $4,264,000 more 
than the fiscal year 2004 enacted level.
    This amount reflects a decrease of $1,000,000 from the 
amount requested for household goods outreach and education, 
which is partially offset by the provided increase in funding 
for Household Goods Enforcement. The Committee believes that 
these amounts represent a better balance in FMCSA Household 
Goods efforts.
    Approximately 79 percent of fatalities resulting from 
crashes involving large trucks are occupants of other vehicles. 
Preliminary data from the large truck crash causation study 
[LTCCS] indicate an important role that noncommercial drivers 
play in crashes involving large trucks. In order for FMCSA's 
safety program to be a truly performance-based effort, it is 
necessary that the agency take a balanced approach in 
addressing the key causal or contributing factors adversely 
affecting commercial motor vehicle safety. To accomplish this 
objective, the Committee provides $2,000,000 under O&E to 
support a public outreach and evaluation program targeted to 
reduce the number and severity of commercial/passenger vehicle 
crashes. Working closely with the Commercial Vehicle Safety 
Alliance [CVSA] and NHTSA, FMCSA should use these funds to 
ensure that effective and targeted public outreach efforts are 
made available as soon as possible to bolster its comprehensive 
enforcement efforts.
    In particular, FMCSA should use these additional funds to 
develop and test targeted safety O&E initatives that are 
designed to change the behavior of both commercial and 
passenger vehicle drivers. FMCSA, drawing upon the expertise 
and experience of NHTSA, should undertake efforts to develop 
and distribute targeted media messages and media outreach tool 
kits, solicit donated multimedia ad space, and conduct market 
research to guide communications outreach, and enhance driver 
training manuals and tests. In doing so, FMCSA should pay 
particular attention to improved messages that would reduce the 
concerns noted in the LTCCS. FMCSA should ensure that the 
knowledge acquired as a result of the LTCCS is effectively used 
to develop and test improved outreach and enforcement 
countermeasures to reduce commercial and passenger vehicle 
interactions. These efforts could include programs to enhance 
driver awareness, improve driver decisions, increase driver 
control, or reduce problems encountered during turning at or 
crossing intersections. The Committee directs FMCSA to report 
to the House and Senate Committees on Appropriations on its 
planned use for these additional funds in this regard within 
180 days after enactment of this Act.
    Information Management Program.--The Committee provides 
$15,300,000 for FMCSA's information management program [IMP], 
which is $3,274,000 less than the budget request and $3,527,000 
more than the fiscal year 2004 enacted level. Within this 
amount, the Committee provides the following funding levels:

------------------------------------------------------------------------
                                                              Amount
------------------------------------------------------------------------
Program Evaluation Initiatives..........................      $2,000,000
IT Strategic Improvement................................       6,300,000
IT Infrastructure.......................................       2,000,000
Field Support Systems...................................       4,000,000
Motor Carrier Safety Status Measurement System                 1,000,000
 Improvements...........................................
------------------------------------------------------------------------

    The Committee does not provide any funding for FMCSA to 
assume the collection and analysis of information submitted 
under Form M from the Bureau of Transportation Statistics 
[BTS]. The Committee questions whether this function is 
necessary for FMCSA to carry out its mission and believes that 
these activities should remain within the province of the BTS, 
which receives sufficient funding to continue these activities.
    Motor Carrier Safety Status Measurement System.--The Motor 
Carrier Safety Status Measurement System [SafeStat] is FMCSA's 
data-driven system that determines the current relative safety 
status of individual motor carriers based upon analysis in four 
areas--accidents, driver violations, vehicle violations and 
safety management record--and by which FMCSA selects carriers 
for on-site compliance reviews. In a report released in 
February 2004, the DOT Inspector General [OIG] identified a 
number of SafeStat deficiencies, particularly concerning the 
timeliness, quality and accuracy of commercial motor vehicle 
crash data used, and made recommendations for improvement. The 
Committee therefore directs FMCSA to use no less than 
$1,000,000 of the provided IMP funds to establish and implement 
data quality control systems and procedures to prevent 
incorrect or duplicative data from entering the system, as well 
as procedures to provide timely correction of inaccurate safety 
data regarding a motor carrier's operations. The Committee also 
directs FMCSA to use these funds to correct deficiencies in the 
SafeStat methodology, particularly those deficiencies related 
to the use of motor carrier ``power units'' in the accident 
evaluation area. This system revalidation should be directed 
toward ensuring that FMCSA properly targets potentially non-
compliant and potentially unsafe motor carriers.
    The Committee understands that FMCSA has removed certain 
information from its SafeStat Internet site until data quality 
issues are resolved. The Committee expects that future funding 
requests from FMCSA will identify the scope and success of 
FMCSA's actions to improve data quality, and also identify 
milestones for resolving the data quality problems raised by 
the OIG.
    Commercial Vehicle Analysis Reporting System.--The 
Commercial Vehicle Analysis Reporting System [CVARS] is a joint 
effort between FMCSA and the National Highway Traffic Safety 
Administration to provide grant funding to the States in order 
to improve the collection and reporting of all truck and bus 
crash-related data into the motor carrier management 
information system. The Committee provides $7,400,000 for 
FMCSA's CVARS activities, which is consistent with the 
requested amount and $2,429,000 more than the fiscal year 2004 
enacted level.
    A continuing concern in the safety community is the quality 
of information that FMCSA uses to make its decisions. For 
example, GAO pointed out in July 2000 that FMCSA had adopted a 
safety action plan without the underlying data to ascertain the 
extent to which the initiatives in the Plan were likely to 
contribute to improved safety. As noted above, the OIG recently 
reported that SafeStat, FMCSA's primary tool for targeting 
carriers for safety reviews, needs to be revalidated. 
Similarly, the Committee is concerned that many States have not 
yet received CVARS grant funding to improve their data 
reporting, and question whether all of the States that have 
received CVARS funds have efficiently allocated these resources 
in a timely manner. Therefore, the Committee requests GAO to 
perform an audit of the progress that FMCSA has made in 
fulfilling its safety information needs. This audit should 
include--but should not be limited to--assessing the benefits 
that have been obtained from the CVARS program and what might 
be done to improve the effectiveness of the program. The 
requested analysis should consider ways that NHTSA and FMCSA 
might maximize the results of this investment and how the CVARS 
program could be better targeted to address the concerns raised 
in the OIG's February 2004 SafeStat report.
    Border Enforcement Program.--The North American Free Trade 
Agreement [NAFTA] set forth a schedule for implementation of 
its trucking provisions that would have opened the border 
States to cross-border trucking competition on December 17, 
1995, and all of North America on January 1, 2000. However, the 
previous Administration halted implementation of these 
provisions and DOT has announced that until safety concerns 
regarding Mexican trucks have been resolved, the trucks would 
continue to be restricted to the commercial zone adjacent the 
border. In the fiscal year 2002 Department of Transportation 
Appropriations Act (Public Law 107-87) Congress addressed these 
concerns by setting 22 safety-related preconditions for opening 
the border to long-haul Mexican trucks. On November 27, 2002, 
the Secretary of Transportation announced that all the 
preconditions had been met and directed FMCSA to begin to open 
the border. However, on January 16, 2003 the Ninth Circuit 
Court of Appeals in Public Citizen v. Department of 
Transportation delayed opening the southern border pending 
completion of environmental impact statements and a Clean Air 
Act conformity determination on the FMCSA's implementing 
regulations.
    The United States Supreme Court has since overruled the 
decision of the Ninth Circuit and thus domestic long haul 
operations by Mexican commercial motor carriers appear 
imminent. Therefore, the Committee reiterates and underscores 
the importance of FMCSA's adherence to the requirements of 
Section 350 of Public Law 107-87 in order to ensure the safety 
of all cross-border long haul operations and has included a 
general provision continuing the cross-border safety provisions 
included therein.
    Consistent with the budget request, the Committee has 
provided total funding of $64,735,000 for border related 
programs. As requested, the Committee provides $31,735,000 for 
FMCSA border operating expenses, $23,000,000 for State 
operations grants to the southern border States, and 
$10,000,000 for State operations grants to the northern border 
States.

                 NATIONAL MOTOR CARRIER SAFETY PROGRAM

                (LIQUIDATION OF CONTRACT AUTHORIZATION)

                          (HIGHWAY TRUST FUND)

------------------------------------------------------------------------
                                     (Liquidation of
                                         contract        (Limitation on
                                      authorization)      obligations)
------------------------------------------------------------------------
Appropriations, 2004 \1\..........       $188,879,000       $188,879,000
Budget estimate, 2005 \2\.........  .................  .................
Committee recommendation..........        190,000,000        190,000,000
------------------------------------------------------------------------
\1\ Reflects reduction of $1,121,000 pursuant to Division H, section 168
  of Public Law 108-199.
\2\ No funding requested under this account for fiscal year 2005.

    The FMCSA's National Motor Carrier Safety Program [NMCSP] 
was authorized by TEA21 and amended by the Motor Carrier Safety 
Improvement Act of 1999. This program consists of two major 
areas: the motor carrier safety assistance program [MCSAP] and 
the information systems and strategic safety initiatives 
[ISSSI]. 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 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.
    The Committee provides $190,000,000 in liquidating cash for 
this program.

                       LIMITATION ON OBLIGATIONS

    The Committee recommends a limitation on obligations of 
$190,000,000 for motor carrier safety grants to be distributed 
as follows:

------------------------------------------------------------------------
                                                              Amount
------------------------------------------------------------------------
Motor Carrier Safety Assistance Program:
    Core MCSAP Grants...................................    $133,350,000
    Safety Performance Incentive Grants.................       7,100,000
    High Priority Initiatives Grants....................       8,450,000
    Commercial Drivers License Improvement Grants.......      18,000,000
    State Training and Administration...................       2,100,000
                                                         ---------------
      Subtotal..........................................     169,000,000
                                                         ===============
Information Systems and Strategic Safety Initiatives:
    Performance and Registration Information Systems           5,000,000
     Management.........................................
    Motor Carrier Management Information System/Data          14,000,000
     Analysis...........................................
    Driver Programs (CDL Grants)........................       1,000,000
                                                         ---------------
      Subtotal..........................................      20,000,000
                                                         ===============
Large Truck Crash Causation Study.......................       1,000,000
                                                         ===============
      Total.............................................     190,000,000
------------------------------------------------------------------------

    Safety Performance Incentive Grants.--The Committee 
provides $7,100,000 for safety performance incentive grants, 
which is $3,939,000 less than the fiscal year 2004 enacted 
level. Before awarding any of these funds under the regulations 
specified in 49 CFR 350, FMCSA is directed to allocate 
$1,000,000 to leverage ongoing State and Federal efforts to 
improve reported data quality, as outlined in the DOT IG's 
February 2004 SafeStat report.
    Commercial Drivers License Improvement Program.--The 
Committee agrees with a recent management advisory issued by 
the OIG that expresses concern over vulnerabilities within the 
current commercial driver's license [CDL] program. In contrast 
to applicants for CDLs with a hazardous material [hazmat] 
endorsement, applicants for non-hazmat CDLs do not have to 
demonstrate or provide proof of citizenship or legal presence. 
The OIG noted that because nearly 70 percent of the 11,000,000 
CDLs issued since 1989 are for the non-hazmat category, this 
presents a significant loophole. The OIG management advisory 
recommends that all CDL applicants demonstrate that they are 
either a U.S. citizen, a permanent legal resident, or otherwise 
legally present in the United States.
    The Committee notes that this is not the first time that 
the OIG has raised this issue. Two years ago, in response to an 
audit for improving testing and licensing of commercial 
drivers, FMCSA agreed with the Inspector General's 
recommendation and stated that it would initiate a planned 
rulemaking in October 2003. However, the Committee understands 
that this rulemaking has now been pushed back until May 2005. 
Because this continuing delay exposes the entire nation to an 
undue increased risk, the Committee expects that there will be 
no further delays in promulgating this rule and directs FMSCA 
to initiate this rulemaking by the scheduled date.
    The Committee is aware of various technologies available to 
States to improve State CDL protection against counterfeiting. 
One such technology involves the use of color-shifting pigment 
that can deter as well as detect counterfeit licenses. This 
technology is currently in use on the newly designed U.S. 
currency and has never successfully been counterfeited. The 
Committee encourages FMCSA to work with State and other 
stakeholders to incorporate this technology as part of a 
layered system to improve CDL security.
    Large Truck Crash Causation Study.--The Committee provides 
$1,000,000 for the large truck crash causation study [LTCCS] 
consistent with the budget request. In providing this funding, 
it is the Committee's expectation that FMCSA will utilize the 
knowledge acquired from the LTCCS to develop and implement 
improved outreach and enforcement measures in order to reduce 
accidents involving commercial vehicles.

                   GOVERNMENT-WIDE E-GOV INITIATIVES

Appropriations, 2004 \1\................................................
Budget estimate, 2005...................................        $450,000
Committee recommendation................................................

\1\ No funding requested under this account for fiscal year 2004.
---------------------------------------------------------------------------
    The Committee declines to provide the $450,000 requested 
for Government-Wide E-Gov Initiatives, as it feels that FMCSA's 
existing IMP resources are sufficient to absorb this expense.

    GENERAL PROVISIONS--FEDERAL MOTOR CARRIER SAFETY ADMINISTRATION

    Section 130 subjects the funds in this Act to section 350 
of Public Law 107-87 in order to ensure the safety of all 
cross-border long haul operations conducted by Mexican-
domiciled commercial carriers.
    Section 131 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-97-2350) as it may apply to 
operators of utility service vehicles and as it applies to 
motion picture and television production drivers working at a 
site within a 100 air mile radius of the reporting location.

             National Highway Traffic Safety Administration


                  SUMMARY OF FISCAL YEAR 2005 PROGRAM

    The National Highway Traffic Safety Administration [NHTSA] 
is responsible for motor vehicle safety, highway safety 
behavioral programs, and the motor vehicle information and 
automobile fuel economy programs. The Federal Government's 
regulatory role in motor vehicle and highway safety began in 
September 1966 with the enactment of the National Traffic and 
Motor Vehicle Safety Act of 1966 (codified as chapter 301 of 
title 49, U.S. Code) and the Highway Safety Act of 1966 
(codified as chapter 4 of title 23, U.S. Code). The National 
Traffic and Motor Vehicle Safety Act of 1966 instructs the 
Secretary to reduce traffic crashes and deaths and injuries 
resulting from traffic crashes; establish motor vehicle safety 
standards for motor vehicles and motor vehicle equipment in 
interstate commerce; carry out needed safety research and 
development; and expand the national driver register. The 
Highway Safety Act of 1966 instructs the Secretary to increase 
highway safety by providing for a coordinated national highway 
safety program through financial assistance to the States.
    In October 1966, these activities, originally under the 
jurisdiction of the Department of Commerce, were transferred to 
the Department of Transportation, to be carried out through the 
National Traffic Safety Bureau. In March 1970, the National 
Highway Traffic Safety Administration [NHTSA] was established 
as a separate organizational entity in the Department. 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.
    NHTSA's mission was expanded in October 1972 with the 
enactment of the Motor Vehicle Information and Cost Savings Act 
(codified as chapters 321, 323, 325, 327, 329, and 331 of title 
49, U.S. Code). This Act instructs the Secretary to establish 
low-speed collision bumper standards, consumer information 
activities, and odometer regulations. Three major amendments to 
this Act have been enacted: (1) a December 1975 amendment 
directs the Secretary to set and administer mandatory 
automotive fuel economy standards; (2) an October 1984 
amendment directs the Secretary to require certain passenger 
motor vehicles and their major replacement parts to be marked 
with identifying numbers or symbols; and (3) an October 1992 
amendment directs the Secretary to set and administer 
automobile content labeling requirements.
    Consistent with the general guidance provided in the 
report, the Committee has followed the program structure found 
in TEA21 and other current laws. The Committee recommendation 
of $458,300,000 provides sufficient funding for the National 
Highway Traffic Safety Administration to maintain current 
programs and continue the mobilization and paid media 
initiatives that have proven so effective in increasing safety 
belt use and impaired driving awareness.
    The following table summarizes the Committee 
recommendations:

----------------------------------------------------------------------------------------------------------------
                                                            Fiscal year 2004  Fiscal year 2005      Committee
                          Program                              enacted \1\        estimate       recommendation
----------------------------------------------------------------------------------------------------------------
Operations and research...................................     $220,420,000      $233,300,000      $228,300,000
National driver register..................................       (3,579,000)       (4,000,000)       (4,000,000)
Highway traffic safety grants.............................      223,673,000       456,000,000       225,000,000
                                                           -----------------------------------------------------
      Total...............................................      447,672,000       689,300,000       453,300,000
----------------------------------------------------------------------------------------------------------------
\1\ Reflects reduction of $1,774,000 pursuant to Division H, section 168 of Public Law 108-199.

                        OPERATIONS AND RESEARCH

                          (HIGHWAY TRUST FUND)

Appropriations, 2004 \1\................................  ($223,999,000)
Budget estimate, 2005...................................     233,300,000
Committee recommendation................................   (228,300,000)

\1\ Reflects a reduction of $446,000 pursuant to Division H, section 168 
of Public Law 108-199 and a reduction of $1,701,300 pursuant to Division 
F, section 517 of Public Law 108-199.

    These programs support research, demonstrations, technical 
assistance, and national leadership for highway safety programs 
conducted by State and local government, the private sector, 
universities, research units, and various safety associations 
and organizations. These programs emphasize alcohol and drug 
countermeasures, vehicle occupant protection, traffic law 
enforcement, emergency medical and trauma care systems, traffic 
records and licensing, State and community traffic safety 
evaluations, motorcycle riders, pedestrian and bicycle safety, 
pupil transportation, distracted and drowsy driving, young and 
older driver safety programs, and development of improved 
accident investigation procedures.
    The Committee recommends a total of $228,300,000 in new 
budgetary resources which includes $72,000,000 in contract 
authority and $152,300,000 under the Federal-aid highway 
obligation to finance operations and research activities 
eligible under title 23 U.S.C. 403. In accordance with the 
budget request, the Committee has provided $4,000,000 to be 
derived from the highway trust fund to maintain the National 
Drivers Register.
    The accompanying bill provides appropriations totaling 
$228,300,000 to be distributed as follows:

------------------------------------------------------------------------
                                                            Committee
                        Program                           recommendation
------------------------------------------------------------------------
Salaries and benefits..................................      $71,250,000
Travel.................................................        1,347,000
Operating expenses.....................................       23,749,000
Contract Programs:
    Safety performance.................................       11,552,000
    Safety assurance...................................       17,751,000
    Highway safety.....................................       46,374,000
    Research and analysis..............................       68,624,000
    General administration.............................          663,000
Grant administration reimbursement.....................      -17,010,000
    National Drivers Register..........................        4,000,000
                                                        ----------------
      Total............................................      228,300,000
------------------------------------------------------------------------

                           OPERATING EXPENSES

    Computer Support.--The Committee feels that the equivalent 
of a 100 percent rise in an account that provides no measurable 
increase or benefit to continuing safety programs is excessive 
given the budget limitations facing the Committee and the 
highway trust fund. The Committee recommendation provides 
$2,850,000 for computer support.
    Workforce Planning and Development.--NHTSA established this 
program in fiscal year 2001 in an effort to encourage young 
professionals to enter into the fields of engineering, 
research, science and technology, vehicle safety and injury. 
The Committee recognizes the agency's desire to build a base 
for future employment but notes that the challenges of 
attrition in the transportation workforce are not unique to 
NHTSA. The Committee continues to encourage that this type of 
workforce planning be done throughout the entire Department of 
Transportation and be coordinated by the Office of the 
Assistant Secretary for Administration. Accordingly, the 
Committee, again, has not included the requested funding to 
support the initiative.

                           SAFETY PERFORMANCE

    Safety Standards Support.--The Committee recommends 
$2,604,000 for safety standards support, which is $500,000 more 
than the budget request. The Committee directs that these 
additional funds be used to advance efforts to address mounting 
safety challenges confronting NHTSA. These challenges include, 
but are not limited to, roof crush problems, the adverse 
consequences of side and frontal impacts, driver aggressivity, 
and vehicle compatibility as well as occupant ejections. The 
Committee requests the Administrator of NHTSA to submit a plan 
to the House and Senate Committees on Appropriations by March 
31, 2005, summarizing the scope of NHTSA's plan to address the 
growing number of safety issues. The plan shall include the 
nature of issues and what actions are being taken to address 
each of the key safety challenges facing NHTSA.
    New Car Assessment Program.--The Committee recommends 
$7,800,000 for the New Car Assessment Program [NCAP]. Within 
the funds provided the Committee recommendation includes 
$200,000 to be used to accelerate purchase schedules for 
vehicle testing.

                        highway safety programs

    The Committee recommends the following adjustments to the 
budget request:

------------------------------------------------------------------------

------------------------------------------------------------------------
Occupant Protection: Outreach initiatives to increase       $13,400,000
 seatbelt use..........................................
Impaired Driving.......................................      14,095,000
    Judicial and Prosecutorial Awareness...............      (1,500,000)
    Target Populations.................................      (1,000,000)
Peds/Bicycle...........................................       1,250,000
Highway Safety Research................................       6,933,000
Emergency Medical Services.............................       2,271,000
Motorcycle Safety......................................         800,000
Enforcement and Justice Services.......................       2,217,000
Records and Licensing..................................       2,621,000
Emerging Traffic Safety Issues.........................       1,187,000
NOPUS..................................................       1,600,000
                                                        ----------------
      Total, Highway Safety Programs...................      46,374,000
------------------------------------------------------------------------

    Share the Road Safely.--NHTSA is the agency with the 
primary responsibility for behavioral programs geared toward 
passenger car drivers. The Committee is disappointed that NHTSA 
and FMCSA have shown an inability to work together on this 
important initiative. The Consolidated Omnibus Appropriations 
Act of Fiscal Year 2004 provided clear direction that NHTSA is 
the Agency responsible for administering this program. The bill 
directs that NHTSA administer the funds and the Committee 
expects the full cooperation of the relevant agencies to ensure 
successful implementation of this program.
    To ensure the smooth transition of full responsibility for 
the Share the Road program to FMCSA in fiscal year 2006, the 
Committee directs FMCSA to provide one FTE, for a 12-month 
detail, to NHTSA to help oversee the program. NHTSA will 
recruit and hire a full time communications/program manager at 
the full performance level, with the assistance and cooperation 
of FMCSA. The staffer will be housed in NHTSA's Office of 
Communications and Consumer Information, and will work closely 
with NHTSA's Program Development and Delivery Office and FMCSA 
in the development and management of the Share the Road 
demonstration effort. As an FMCSA employee, this individual 
will obtain the necessary experience from the pilot program to 
maintain the continuity and quality of the program when it is 
returned to FMCSA to manage.
    National Occupant Protection Program.--The objectives of 
the occupant protection program are to increase seat belt use 
and decrease the number of child occupant fatalities. The 
Committee is encouraged by recent statistics showing that 
safety belt use stands at a national average of 79 percent, 
surpassing NHTSA's goal of 78. Statistics show that for each 
percentage point increase in the national safety belt use rate 
about 2.8 million more Americans are buckling up, saving an 
estimated 270 additional lives and preventing 4,000 serious 
injuries. In 2003, of the 31,904 passenger vehicle occupants 
killed in U.S. traffic crashes, 56 percent were not wearing a 
seat belt.
    To continue this progress, the Committee believes that 
NHTSA must be vigilant and creative in its efforts to increase 
the national safety belt use rate, with particular attention to 
those groups that are high risk and difficult to reach. The 
Committee recommends $13,400,000 for NHTSA's occupant 
protection efforts which is $1,800,000 more than the budget 
request. In reviewing NHTSA's 2003 Assessment, the Committee is 
especially concerned that nearly two-thirds of teen passenger 
vehicle occupants (ages 16-20) who were killed in 2003 were not 
wearing a seat belt, a statistic virtually unchanged from 2002. 
The Committee believes that if teenagers and young adults can 
be convinced to wear safety belts now they will continue to 
wear a seatbelt throughout their adult lives. The Committee 
directs that these additional funds be used to continue 
outreach activities towards teens, minority populations and 
rural populations. The Committee encourages NHTSA to: (1) 
initiate and continue programs with public sector organizations 
and private sector employers and insurance companies to raise 
the safety belt use among the Nation's workforce; (2) develop 
new strategies to reach cultural and ethnic groups with lower 
seatbelt use rates; and (3) develop and evaluate the next 
generation of combined public education/communication and 
enforcement strategies to increase occupant protection and 
determine the most effective ways to encourage and increase 
booster seat use.
    To supplement NHTSA's overall safety belt effort, the 
Committee has included language in the Section 157 program to 
continue the ``Click It or Ticket'' national public service 
message program that began in fiscal year 2002.
    Impaired Driving.--In August 2004, NHTSA released its most 
current assessment of the 2003 data from the Fatality Analysis 
Reporting System [FARS]. Of the 42,643 people who died on the 
Nation's highways in 2003, 17,013 or 40 percent were alcohol-
related. This most recent FARS assessment indicates that, while 
far too many people are still dying at the hands of drunk 
drivers, the number of alcohol-related fatalities decreased for 
the first time since 1999. This is a positive first step in 
what remains a very difficult and challenging highway safety 
problem. However, since alcohol-related crashes cause an 
estimated 275,000 injuries and roughly $50,000,000,000 in 
economic costs each year, the Committee believes that NHTSA 
should commit adequate resources toward this tragic problem and 
remains disappointed that the agency continues to send up 
budgets that cut the funding dedicated toward the impaired 
driving core program. In fiscal years 2004 and 2005, NHTSA 
recommended reductions to the impaired driving account by 28 
percent and 35 percent respectively. As for the FARS data, the 
Committee is mystified by the large discrepancy in the overall 
number of alcohol-related fatalities between the early and 
current assessment of the data and believes that the State-by-
State data warrants further scrutiny and explanation.
    The Committee recommends funding of $14,095,000 to support 
the impaired driving program. This amount is $4,150,000 more 
than the budget request. These additional funds will allow 
NHTSA to continue to: (1) promote high visibility law 
enforcement; (2) educate prosecutors, judges and law 
enforcement regarding impaired driving and promote specialized 
or enhanced court systems; (3) develop effective messages and 
countermeasures to reach high risk groups; (4) encourage 
widespread adoption of medical screening and brief intervention 
for individuals with alcohol abuse problems; and (5) complete 
NHTSA's model impaired driving records information system pilot 
which will assist States in tracking repeat offenders and begin 
to promote its use in more States. The additional funding will 
also provide NHTSA with resources to advance the use of 
standard field sobriety testing [SFST], continue to train law 
enforcement to use SFST, fund the standardization of the SFST 
course and study how to significantly reduce the time required 
to present the course to law enforcement.
    The Committee recommendation has combined NHTSA's impaired 
driving and drug impaired driving programs into one program 
line item, in recognition of the fact that countermeasures must 
focus on the impaired driving issue with adequate attention to 
both alcohol and drugs.
    In addition, the Committee recommends additional funding of 
$20,000,000 to support national advertising in coordination 
with the annual ``You Drink & Drive. You Lose'' impaired 
driving law enforcement crackdown. These funds will be derived 
from the section 163 grant program.
    To better understand what strategies and factors work best 
to reduce alcohol fatalities and crashes, the Committee directs 
the Department's Office of Inspector General to review and 
compare the scope and direction of programs and activities 
conducted by States with the highest and lowest rates of 
alcohol-related fatalities using a 5-year average of fatality 
data. The Inspector General should, at a minimum, focus on: 
State and Federal resources dedicated to reducing alcohol-
impaired driving; an analysis of those expenditures; State law 
enforcement efforts, including the use of sobriety checkpoints 
or other high-visibility enforcement methods; law enforcement 
officer training standards; and the use of paid and earned 
media. The OIG shall report to the House and Senate Committees 
on Appropriations no later than April 1, 2005.
    Judicial and Prosecutorial Awareness.--The Committee has 
provided $1,500,000 for Judicial and Prosecutorial Awareness to 
expedite the detection, identification and tracking of hard 
core drunk drivers. The Committee is aware that one of the 
major factors in alcohol-related crashes is the number of 
habitual drunk drivers involved in alcohol-related traffic 
crashes.
    The Committee directs NHTSA to work with State and local 
law enforcement officials, judges, prosecutors and parole 
officers to assist them in developing strategies that 
specifically target the removal of habitual drunk drivers from 
the road.
    The Committee directs NHTSA to provide a report to the 
House and Senate Committees on Appropriations by June 1, 2005, 
on the strategies developed to measure the effectiveness of 
this program and NHTSA's plan to carry it out. The report shall 
also include a detailed study of the effectiveness and the 
costs related to the implementation of a Statewide cellular 
drunk driving reporting program that provides free air time and 
allows motorists with a cell phone to dial a special number 
[*DUI] to report drunk drivers. The Committee is aware that at 
least three States are currently providing this service to 
motorists. The Committee also directs NHTSA to look at the 
effectiveness of other innovative techniques employed by States 
to discourage repeat offenders from drinking while driving.
    Impaired Driving and Targeted Populations.--The Committee 
is concerned that there continues to be certain segments of the 
population that are over represented in alcohol-related motor 
vehicle crashes. For example in 2002, 24 percent of drivers 15-
20 years old killed in crashes had levels of alcohol at or 
above a blood alcohol level of 0.08. The Committee strongly 
encourages NHTSA to aggressively pursue strategies that reduce 
impaired driving among the age groups and ethnic populations 
that are over-represented in alcohol-related fatalities. Within 
the funds provided for NHTSA's impaired driving programs the 
Committee has included $1,000,000 to increase outreach efforts 
that target these populations. The Committee directs NHTSA to 
notify the House and Senate Committees on Appropriations, no 
later than 90 days after enactment of this Act, detailing the 
target populations, strategies, and activities that will be 
utilized.
    Pedestrian Safety.--The Committee has provided $1,250,000 
for pedestrian and bicycle safety. Within the funds provided 
under this account the Committee has included $50,000 for NHTSA 
to conduct a study to identify the characteristics of vehicle-
related accidents, injuries and fatalities that involve 
pedestrians on the roadside or travel lane. NHTSA's Fatality 
Analysis Reporting System indicates that there were 4,749 
pedestrians killed and approximately 70,000 pedestrians injured 
in motor vehicle crashes in 2003.
    The Committee is particularly interested in NHTSA's 
countermeasure recommendations concerning the unintended 
pedestrian--a driver and or passenger of a broken-down vehicle 
or one involved in a previous accident afoot on the shoulder of 
the roadway working on the car, pushing it, inspecting damage 
to the vehicle, trading information with another driver or 
simply waiting/walking on the roadside seeking assistance. The 
Committee directs NHTSA to provide a report to the House and 
Senate Committees on Appropriations by March 31, 2005, which 
shall include countermeasures aimed at the unintended 
pedestrian. In addition, the Committee is interested in 
receiving data and recommended countermeasures on vehicle-
related accidents, injuries and fatalities involving law 
enforcement and public safety officers who have exited their 
vehicles and are standing alongside the roadway.
    Highway Safety Research.--The Committee includes $6,933,000 
for NHTSA's highway safety research program. Within the funds 
provided, the Committee includes $400,000 to support the 
Drivers Edge Safety Program, a non-profit program that provides 
real life driver training to young drivers to combat teen 
accidents and driving fatalities.
    Emergency Medical Services.--The Committee recommends 
$2,271,000 for emergency medical services. Within the funds 
provided, the Committee includes $500,000 to support pediatric 
trauma research, TraumaLink, at the Children's Hospital of 
Philadelphia. There have been a number of highly publicized 
cases of crash victims who were stranded for extended periods 
of time because their vehicles were not easily located. 
Advanced location technology associated with wireless E 9-1-1 
can assist law enforcement and EMS personnel in reaching 
victims quickly. The Committee has also included $500,000 
within the total amount for research at the USA Center for the 
study of Rural Vehicular Trauma.
    The Committee is aware that national databases exist that 
support police and fire services; however, there has been no 
similar national repository for Emergency Medical Services 
[EMS] data and no current method to easily link disparate EMS 
databases to allow analysis at a local, State, and national 
level. It is the Committee's understanding that NHTSA, in 
cooperation with the Health Resources and Services 
Administration, has funded a cooperative agreement with the 
National Association of State EMS Directors to develop and 
implement a National EMS Information System [NEMSIS], which is 
necessary for post crash injury control. The Committee 
encourages NHSTA to continue the implementation of NEMSIS which 
will provide data entry and reporting capabilities at the local 
and State EMS levels and a national EMS database with a 
resource center to assist EMS systems in data collection and 
use.
    Motorcycle Safety.--The Committee provides $800,000 for 
NHTSA's motorcycle safety efforts. The Committee remains 
concerned that for a sixth year in a row the number of 
motorcycle fatalities increased. In 2003, the number of 
motorcycle fatalities has increased 12 percent. The Committee 
has provided increased funding to further assist in the 
implementation of the urgent and essential recommendations 
included in the National Agenda for Motorcycle Safety. Further, 
the Committee urges NHTSA to focus on strategies to reduce the 
alarming numbers of motorcyclists killed and injured in 
alcohol-related crashes.
    Highway Safety Oversight.--Statement of Managers 
accompanying the Consolidated Omnibus Appropriations Act, 
fiscal year 2004, directed NHTSA to examine its policies with 
regard to the State grant programs and to submit a report to 
the House and Senate Committees on Appropriations on current 
guidance provided to States on crafting effective highway 
safety plans. The conference report also directed NHTSA to 
examine what steps it would undertake if, in reviewing a 
State's plan, NHTSA disagreed with the State's planned use of 
Federal grant funds.
    The Committee has reviewed NHTSA's report and finds its 
proposed response to the concerns raised by the GAO to be 
insufficient. The response from NHTSA proposes to perform 
management reviews of individual States as infrequently as 
every 3 years. While NHTSA has outlined other procedures to 
provide guidance to States in its report, the Committee is 
concerned about the lack of oversight NHTSA exercises with 
respect to State use of Federal highway safety funds.
    Alcohol-related fatalities have increased over the past 
several years, however, attachment ``A'' of NHTSA's report 
shows that section 402 grant expenditures for alcohol programs 
decreased by more than 19 percent (from $25,300,000 to 
$20,400,000) between 2000 and 2003. While NHTSA claims that 
increasing seat belt use is its highest priority, section 402 
expenditures for occupant protection programs declined almost 7 
percent (from $21,800,000 to $20,300,000) over the same time 
period. These spending patterns suggest that the priorities of 
the States are markedly different from those of NHTSA.
    The Committee directs NHTSA to develop uniform criteria 
that hold the States accountable for the Federal dollars 
provided from the grant program. The Committee expects that 
this spending should be result-oriented and NHTSA should 
require the States to demonstrate the nexus between the safety 
goals and the plan to attain those goals.
    The Committee directs NHTSA to provide an updated report on 
implementation of policies to oversee State highway safety 
programs by category, including expenditures of section 402 
funds. The Committee also is concerned that NHTSA's policy 
lacks sufficient clarity as to when a performance enhancement 
plan would be required. The Committee urges NHTSA to work with 
its regional offices to develop specific criteria that would 
require a State to develop a performance enhancement plan. As 
part of the report, the Committee directs NHTSA to provide the 
number of completed management and special management reviews 
along with a detailed description of any required performance 
enhancement plans. The report shall be submitted to the House 
and Senate Committees on Appropriations by March 1, 2005. In 
addition, the Committee directs NHTSA to solicit public 
comments on the subject of management and oversight of 
federally funded State highway safety programs. The Committee 
expects NHTSA to incorporate a summary of the comments in the 
updated report. The Committee has provided $50,000 in operating 
expenses to complete this updated report.

                         RESEARCH AND ANALYSIS

    Safety Systems Research.--The Committee recommends 
$9,818,000 for safety systems research which is $500,000 more 
than the budget request. The Committee directs that $500,000 be 
used to accelerate research related to the increased safety 
challenges including but not limited to, rollovers, roof crush 
problems, the adverse consequences of side and frontal impacts, 
vehicle aggressivity and compatibility, as well as, occupant 
ejections. These funds are to be used in tandem with the 
increased funding provided under safety system support.
    Biomechanical Research.--The Committee provides a total of 
$14,475,000 for biomechanics research. The Committee's 
recommendation includes necessary resources for the continued 
research of the Crash Injury Research and Engineering Network 
program. Within the funds provided, the Committee includes 
$2,000,000 to continue research related to traumatic brain and 
spinal cord injuries caused by motor vehicle, motorcycle, and 
bicycle accidents at the Southern Consortium for Injury 
Biomechanics, and $1,000,000 to support a joint research 
initiative between the University of Vermont's College of 
Medicine [UVM] and Fletcher Allen Health Care that will assist 
victims of automobile accidents in rural areas to determine the 
capabilities and outcomes of advanced mobile telecommunications 
links.
    Driver/Vehicle Performance.--The Committee recommends 
$3,795,000 for driver/vehicle performance research, which is 
$300,000 more than the budget request. With in the funds 
provided, the Committee recommendation includes $300,000 for 
research and development of eye-tracking and monitoring devices 
to detect driver drowsiness and fatigue. The Committee directs 
that NHTSA to explore existing patented technologies for this 
research in an effort to reduce accidents and injuries related 
to driver drowsiness.
    Driver Behavior/Simulation Research.--The Committee 
recommends $3,650,000 for NHTSA's driver behavior/simulation 
research efforts, which is $95,000 more than the budget 
request. Within the funds provided, the Committee 
recommendation includes $100,000 for the National Advanced 
Driving Simulator in order to conduct research on the driving 
capabilities of individuals that suffer from moderate visual 
loss and whether bioptic telescopes improve their driving 
performance.
    Crash Avoidance Initiative.--This program will assist NHTSA 
in evaluating technologies such as electronic stability control 
systems, alternate braking, vision enhancement and lane 
departure warnings. The Committee believes that this technology 
holds potential to assist drivers in avoiding accidents. While 
the Committee supports this initiative it is unable to provide 
funding for the request due to budgetary limitations. The 
Committee would encourage NHTSA to seek funding for this 
initiative through other funding sources such as the 
Intelligent Vehicle Initiative.
    Fatality Analysis Reporting System.--The Committee 
recommends $6,763,000 for the Fatality Analysis Reporting 
System [FARS]. This represents an $850,000 increase over the 
budget request. The Committee is aware that the proposed budget 
for the FARS data collection for fiscal year 2005 is 
insufficient to pay State FARS analysts for the entire data 
collection year. As a result, NHTSA will have to lay off well 
trained staff. The Committee is providing an increase of 
$850,000 to the base FARS program to ensure that sufficient 
funding is available.
    FAST FARS.--The Committee recommends $1,000,000 for this 
new initiative. With the FAST FARS data collection program, 
NHTSA will implement a data collection system that will provide 
more timely fatality data.
    Examples of the need for effective instant feedback program 
evaluations are (1) impaired driving (drunk & drugged driver 
campaign), (2) safety belt usage (``Click It or Ticket''), and 
(3) holiday period fatality statistics (Memorial Day weekend 
summary fatality counts). An effective FAST FARS data 
collection program will permit the agency to analyze 
effectiveness more quickly, thereby improving decision making 
to better utilize limited safety funding resources.
    Human Occupant Computer Models.--The Committee encourages 
NHTSA to work with members of the Global Human Body Models 
Partnership and Consortium in developing a set of computer 
models of human occupants that can be used in automotive safety 
design. These models have the potential of reducing the cost of 
testing and may also enable the designer to study directly the 
injury potential of safety systems on the human occupant 
instead of its effect on dummies. The Committee understands 
that there are a number of technical challenges that need to be 
addressed before virtual testing can become a functional 
reality. The Committee looks forward to learning about the 
results and progress of this partnership.
    National Automotive Sampling System.--The Committee 
provides $12,100,000 for the National Automotive Sampling 
System [NASS]. The NASS General Estimates System data assists 
in assessing the trend and magnitude of the crash situation in 
this country, and the NASS Crashworthiness Data System provides 
more in-depth and descriptive data allowing NHTSA to quantify 
the relationships between the occupants and vehicles in the 
real-world crash environment.
    National Tire Fuel Efficiency Study.--The Committee 
continues to be interested in the progress of the study that 
the National Academy of Sciences has underway commissioned by 
NHTSA on a national tire fuel efficiency study to consider the 
relationship that low rolling resistance replacement tires have 
on fuel consumption and tire wear life. The Committee would 
appreciate a progress report to the Committee on Appropriations 
by December 31, 2004 on the initial findings of that effort and 
an anticipated schedule for completion of the study.
    Tread Act Compliance.--The primary purpose of the TREAD Act 
is to improve the safety of the motoring public. The Committee 
is concerned that some producers of tires exported to the 
United States may not comply with the early warning reporting 
and future tire testing requirements of the TREAD Act. 
Therefore the Committee urges NHTSA to aggressively monitor 
compliance with the TREAD Act to ensure that all tire 
manufacturers comply with the letter and the spirit of those 
requirements that are being implemented to improve safety.

                        national driver register


                (LIQUIDATION OF CONTRACT AUTHORIZATION)

                      (LIMITATION ON OBLIGATIONS)

                          (HIGHWAY TRUST FUND)

Appropriations, 2004 \1\ ...............................    ($3,579,000)
Budget estimate, 2005...................................     (4,000,000)
Committee recommendation................................     (4,000,000)

\1\ Reflects reduction of $21,240 pursuant to Division H, section 168 of 
Public Law 108-199.

    The National Driver Register [NDR] is a central repository 
of information on individuals whose licenses to operate a motor 
vehicle have been revoked, suspended, canceled, or denied. The 
NDR also contains information on persons who have been 
convicted of serious traffic-related violations such as driving 
while impaired by alcohol or other drugs. State driver 
licensing officials query the NDR when individuals apply for a 
license to determine whether driving privileges have been 
withdrawn by other States. Other organizations such as the 
Federal Aviation Administration and the Federal Railroad 
Administration also use NDR license data in hiring and 
certification decisions in overall U.S. transportation 
operations.
    The bill includes $4,000,000 for the NDR which is an 
increase of $421,000 over the fiscal year 2004 authorized level 
and equal to the budget request.

                     HIGHWAY TRAFFIC SAFETY GRANTS

                (LIQUIDATION OF CONTRACT AUTHORIZATION)

                          (HIGHWAY TRUST FUND)

Appropriations, 2004 \1\................................    $223,673,000
Budget estimate, 2005...................................     456,000,000
Committee recommendation................................     225,000,000

\1\ Reflects reduction of $1,328,000 pursuant to Division H, section 168 
of Public Law 108-199.

    For fiscal year 2005, the Transportation Equity Act for the 
21st Century must be reauthorized. Consistent with the general 
guidance provided in the report, the Committee has followed the 
structure provided in TEA21 which authorizes the following 
State grant programs: The section 402 State and community 
formula grant program, the section 410 alcohol-impaired driving 
countermeasures incentive grant program, and the section 405 
occupant protection incentive grant program.
    Under the Section 402 grant program, grant allocations are 
determined on the basis of a statutory formula established 
under 20 U.S.C. 402. Individual States use this funding in 
national priority areas established by Congress which have the 
greatest potential for achieving safety improvements and 
reducing traffic crashes, fatalities and injuries. The section 
410 alcohol-impaired driving countermeasures incentive grant 
program encourages States to enact stiffer laws and implement 
stronger programs to detect and remove impaired drivers from 
the roads. The section 405 occupant protection program 
encourages States to promote and strengthen occupant protection 
initiatives.
    The Committee recommends an appropriation for liquidation 
of contract authorization of $225,000,000 for the payment of 
obligations incurred in carrying out provisions of these grant 
programs.
    The Committee has continued a provision prohibiting the use 
of section 402 funds for construction, rehabilitation or 
remodeling costs, or for office furnishings and fixtures for 
State, local, or private buildings or structures.

                       limitation on obligations

    The bill includes language limiting the obligations to be 
incurred under the various highway traffic safety grants 
programs. Separate obligation limitations are included in the 
bill with the following funding allocations:

----------------------------------------------------------------------------------------------------------------
                                                            Fiscal year 2004  Fiscal year 2005      Committee
                                                               enacted \1\        estimate       recommendation
----------------------------------------------------------------------------------------------------------------
State and Community Formula Grants........................     $164,027,000      $396,000,000      $165,000,000
Alcohol-impaired driving countermeasures grants...........       39,764,000   ................       40,000,000
Occupant protection incentive grants......................       19,882,000   ................       20,000,000
Section 412 State highway safety data grants..............  ................       50,000,000   ................
Emergency Medical Services................................  ................       10,000,000   ................
                                                           -----------------------------------------------------
    Total.................................................     (223,673,000)     (456,000,000)     (225,000,000)
----------------------------------------------------------------------------------------------------------------
\1\ Reflects reduction of $1,327,500 pursuant to section 168(b) of Public Law 108-199.

    Safety Belt Usage.--While outcome data is not yet 
available, the May 2004 ``Click It or Ticket'' Mobilization 
built on the successful previous effort with significant law 
enforcement participation from across the country and increase 
use of the media. The Committee is pleased that the funding 
that has been provided for the ``Click It or Ticket'' campaign 
and the accompanying public safety messages continues to prove 
effective in increasing usage rates but believes that NHTSA's 
work in this area is not done. The Committee encourages NHTSA 
to build upon its successes and continue to work with State and 
local governments to further increase seat belt usage rates in 
2005.
    Public Safety Messages.--The bill contains a provision 
(sec. 140) extending the authority for States to use traffic 
safety grant funds under Section 402 to produce and place 
highway safety public service messages in television, radio, 
cinema, print media and on the Internet. The Committee 
continues a provision that was included in previous 
appropriations Acts which designated grant funds to be used for 
public safety messages related to safety belt use and support 
of the ``Click It or Ticket'' mobilization that is conducted 
each year in May and November. In fiscal year 2004, NHTSA again 
used this funding to support State high-visibility ``Click It 
or Ticket'' enforcement programs and bolstered these programs 
with almost $30,000,000 in targeted State and national 
advertising. The fiscal years 2003 and 2004 campaign 
specifically addressed young drivers who are at higher risk of 
being in a car crash and less likely to use seat belts than 
other age groups. As a result, in 2003 usage increased seven 
percentage points among 16-24 year olds, compared to 4 
percentage points in the overall population. The Committee is 
encouraged by NHTSA's efforts to reach out to this and other 
target populations whose seat belt usage rates are below the 
national average.
    The Committee has again included bill language providing 
$10,000,000 from the seat belt grant program to be used 
consistent with current practice and as directed by the NHTSA 
Administrator for broadcast advertising to support the national 
law enforcement mobilization aimed at increasing seat belt use.
    Just as high visibility enforcement programs have proven so 
effective in increasing seat belt use, research has also 
concluded that sobriety checkpoints are highly effective in 
reducing alcohol-related traffic fatalities and injuries. 
NHTSA's own survey has indicated that 4 out of 5 Americans 
support increased enforcement and tougher laws to protect 
themselves and their families from impaired drivers.
    The Committee continues to be concerned with the high 
number of alcohol-related fatalities. The Committee believes 
that NHTSA should continue to implement a more proactive role 
in working with States to recognize and develop new and 
innovative measures that target impaired drivers. For fiscal 
year 2005, the Committee has continued bill language providing 
$20,000,000 from the impaired driving grant program to be used 
as directed by the NHTSA Administrator for broadcast 
advertising to support a national law enforcement mobilization 
aimed at controlling impaired driving. It is the Committee's 
intent that these funds support a national mobilization and 
sustained enforcement of impaired driving laws, and that NHTSA 
work on this initiative with the States and non-profit safety 
organizations that have been active in conducting recent 
mobilizations. Further, the Committee has specified that no 
less than $6,000,000 be provided to the States to ensure that 
they have adequate resources for impaired driving enforcement 
activities to support the mobilization and for sustained 
impaired driving enforcement throughout the year. The Committee 
believes that continued funding for evaluation is unnecessary 
as it appears that mobilization coupled with paid advertising 
is an effective deterrent.
    NHTSA has set aggressive goals for achieving seat belt use 
and has exceeded these goals resulting in saving countless 
lives, reducing injuries, and economic costs. The Committee is 
pleased with the results of this multiyear effort and directs 
NHTSA to continue their successful model of high visibility 
enforcement and paid media to support national law enforcement 
mobilization aimed at increasing seat belt use. NHTSA has 
recently undertaken a similar course of action in impaired 
driving which holds promise to stimulate national action 
through high visibility enforcement, including sobriety 
checkpoints, saturation patrols, and paid media to support a 
national law enforcement mobilization. These two mobilizations 
scheduled for the peak travel times of summer, Memorial Day and 
Labor Day holidays, must continue to be implemented and 
evaluated to have an impact on the motoring public. The 
Committee applauds NHTSA's efforts to implement sustained 
impaired driving enforcement as a complement to mobilizations.
    The Committee also recognizes NHTSA and the highway safety 
community, including the States, law enforcement, and non-
profit safety organizations, achievement in successfully 
reducing alcohol related crashes around the winter holidays, 
including New Year's Eve. The impaired driving holiday 
messaging and enforcement has become a routine part of the 
winter celebrations, including paid and earned media messages 
and heightened law enforcement activity with limited Federal 
resources. The Committee awaits the pending results of last 
year's combined seat belt and impaired driving messages to 
assess its potential in future highway safety programs.

   GENERAL PROVISIONS--NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION

    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 related to seat belt usage and 
impaired driving. The provision allocates $10,000,000 for the 
purpose of national paid media to support national safety belt 
mobilizations under section 157 and a total of $20,000,000 
under section 163 to include: $6,000,000 to support State 
impaired driving mobilization enforcement efforts and 
$14,000,000 for paid media to support national law enforcement 
mobilizations on impaired driving.
    Section 141 requires NHTSA to retain the lead 
responsibility for developing the national share the road 
safely program strategy and work with the FMCSA to ensure the 
effective implementation, monitoring and evaluation of this 
program.
    Section 142 allows the Secretary of Transportation for 
fiscal year 2005, to use the funds necessary to carry out the 
provisions of section 157 of title 23.

                    Federal Railroad Administration


                  SUMMARY OF FISCAL YEAR 2005 PROGRAM

    The Federal Railroad Administration [FRA] became an 
operating administration within the Department of 
Transportation on April 1, 1967. It incorporated the Bureau of 
Railroad Safety from the Interstate Commerce Commission, the 
Office of High Speed Ground Transportation from the Department 
of Commerce, and the Alaska Railroad from the Department of the 
Interior. The Federal Railroad Administration is responsible 
for planning, developing, and administering programs to achieve 
safe operating and mechanical practices in the railroad 
industry. Grants to the National Railroad Passenger Corporation 
[Amtrak] and other financial assistance programs to 
rehabilitate and improve the railroad industry's physical 
infrastructure are also administered by the Federal Railroad 
Administration.
    The Committee recommends $1,437,074,000 for the activities 
of the Federal Railroad Administration for fiscal year 2005, 
which is $348,653,000 more than the budget request and 
$6,608,000 less than the fiscal year 2004 enacted level.
    The following table summarizes the Committee 
recommendations:

----------------------------------------------------------------------------------------------------------------
                                                                        Fiscal year--
                                                             -----------------------------------    Committee
                           Program                                                2005 budget     recommendation
                                                              2004 enacted \1\      estimate
----------------------------------------------------------------------------------------------------------------
Safety and Operations.......................................     $130,053,000      $142,396,000     $139,849,000
Railroad Research and Development...........................       33,824,000        36,025,000       35,225,000
Next Generation High-Speed Rail.............................       37,179,000        10,000,000       20,000,000
Alaska Railroad Rehabilitation..............................       24,853,000   ...............       25,000,000
Grants to National Railroad Passenger Corporation...........    1,217,773,000       900,000,000    1,217,000,000
                                                             ---------------------------------------------------
      Total budgetary resources.............................    1,443,682,000     1,088,421,000    1,437,074,000
----------------------------------------------------------------------------------------------------------------
\1\ Reflects reduction of $8,568,000 pursuant to Division H, section 168 of Public Law 108-199.

                         SAFETY AND OPERATIONS

Appropriations, 2004 \1\................................    $130,053,000
Budget estimate, 2005...................................     142,396,000
Committee recommendation................................     139,849,000

\1\ Reflects reduction of $772,000 pursuant to Division H, section 168 
of Public Law 108-199.

    The Safety and Operations account provides support for FRA 
rail safety activities and all other administrative and 
operating activities related to staff and programs.
    The Committee recommends $139,849,000 for Safety and 
Operations for fiscal year 2005, which is $2,547,000 less than 
the budget request and $10,313,000 more than the fiscal year 
2004 enacted level. Of this amount the bill specifies that, 
$15,350,000 remains available until expended. The Committee 
denies the requests of $91,000 for a financial analyst for the 
Railroad Rehabilitation and Improvement Financing program, 
$300,000 for workforce planning, and $193,000 for citizen 
centered government because it believes that FRA's existing 
operational resources are sufficient to undertake these tasks.
    Student Inspector Trainees.--In support of FRA's efforts to 
gain both diversity and experience by training new railroad 
inspectors, the Committee provides funding for 8 of the 16 
requested positions for this new initiative.
    Track Geometry Vehicle.--Recognizing the safety advantages 
gained by doing so, the Committee provides funding for the 
requested additional Track Geometry Vehicle. However, because 
manufacturing constraints preclude this equipment from being 
delivered in fiscal year 2005, the Committee provides only 
$1,500,000 of the funding necessary for the vehicle's purchase. 
It is the Committee's intention to provide the remaining 
$1,500,000 in fiscal year 2006.
    Highway-Rail Grade Crossing Safety.--The Committee notes 
that FRA has agreed with OIG recommendations to develop a means 
for including Federal Transit Administration statistics in its 
grade crossing accident tabulations and to identify those 
States with the highest number of grade crossing accidents. In 
order to ensure FRA's timely progress in implementing these 
recommendations, the Committee directs FRA to report on the 
status of its efforts in this regard, including expected 
milestones, no later than 90 days following the enactment of 
this Act.
    Washington Union Station Air Rights Development Project.--
The Committee is concerned that the congressionally-directed 
sale of air development rights over the rail yard at Union 
Station in Washington, DC, which was to have been completed by 
the end of fiscal year 2002, remains pending because of a 
potential leasehold encroachment into the air rights parcel 
subject to the sale. While negotiations among the affected 
parties are ongoing, the Committee is troubled by the slow 
progress in completing this transaction. The Committee 
therefore directs FRA to work with all parties involved in 
order to resolve the outstanding issues and reach a timely and 
equitable solution.

                   RAILROAD RESEARCH AND DEVELOPMENT

Appropriations, 2004 \1\................................     $33,824,000
Budget estimate, 2005...................................      36,025,000
Committee recommendation................................      35,225,000

\1\ Reflects reduction of $201,000 pursuant to Division H, section 168 
of Public Law 108-199.

    Railroad Research and Development provides for research in 
the development of safety and performance standards for 
railroads and the evaluation of their role in the Nation's 
transportation infrastructure.
    The Committee recommends an appropriation of $35,225,000 
for railroad research and development, which is $800,000 less 
than the budget request and $1,401,000 more than the fiscal 
year 2004 enacted level. Within the funds provided, $2,000,000 
is for Marshall University and the University of Nebraska for 
safety research programs in rail equipment, human factors, 
track, and rail safety related issues.
    The Committee recommends the following funding levels 
within the Railroad research and development programs:

------------------------------------------------------------------------
                                                              Amount
------------------------------------------------------------------------
Railroad System Issues..................................      $3,225,000
Human Factors...........................................       4,178,000
Rolling Stock and Components............................       2,587,000
Track and Structures....................................       4,125,000
Track and Train Interaction.............................       3,350,000
Train Control...........................................         950,000
Grade Crossings.........................................       1,935,000
Hazardous Materials Transportation......................       1,000,000
Train Occupant Protection...............................       6,450,000
R&D Facilities and Test Equipment.......................       1,425,000
NDGPS...................................................       6,000,000
------------------------------------------------------------------------

    Track and Structures.--The Committee provides $4,125,000 
for FRA's track and structures research efforts. Track and 
structures provides for research in inspection techniques, 
material and component reliability, track and structure design 
and performance, and track stability data processing and 
feedback. Within the funds provided, the Committee includes 
$250,000 for structural integrity research utilizing fiber 
reinforced recyclable thermoplastic composite shell and 
discarded tire core on railroad ties at West Virginia 
University's Constructed Facility Center.
    Nationwide Differential Global Positioning System.--The 
Committee has provided $6,000,000 for continued deployment of 
the Nationwide Differential Global Positioning System network, 
which is $800,000 less than the requested amount and $234,220 
more than the fiscal year 2004 enacted level. This amount 
includes $5,000,000 for maintaining existing sites and 
$1,000,000 for new site installations, which the Committee 
believes is sufficient for FRA's role in the continuation of 
this project.

       RAILROAD REHABILITATION AND IMPROVEMENT FINANCING PROGRAM

    The Rail Rehabilitation and Improvement Financing Program 
[RRIF], as established in section 7203 of the Transportation 
Equity Act for the 21st Century [TEA21], does not authorize any 
direct appropriations, but it enables the Secretary of 
Transportation to provide loans and loan guarantees to State 
and local governments, Government-sponsored authorities and 
corporations, railroads and joint ventures to acquire, improve, 
or rehabilitate intermodal or rail equipment or facilities, 
including track, bridges, yards, and shops. No appropriations, 
new loan guarantee commitments, nor loan repayment extensions 
are proposed for fiscal year 2005.

                    NEXT GENERATION HIGH-SPEED RAIL

Appropriations, 2004 \1\................................     $37,179,000
Budget estimate, 2005...................................      10,000,000
Committee recommendation................................      20,000,000

\1\ Reflects reduction of $221,000 pursuant to Division H, section 168 
of Public Law 108-199.

    The Next Generation High-Speed Rail Technology 
Demonstration Program [NGHSR] seeks to demonstrate technology 
that will facilitate the incremental development of high-speed 
rail passenger service that has air or road competitive door-
to-door trip times between major city pairs and reliable, high 
quality, cost-effective service.
    The Committee provides $20,000,000 for NGHSR, which is 
$10,000,000 more than the budget request and $17,179,000 less 
than the fiscal year 2004 enacted level. The Committee 
recommends the following funding levels within this amount:

------------------------------------------------------------------------
                                                              Amount
------------------------------------------------------------------------
High-speed train control systems........................     $10,000,000
High-speed non-electric locomotives.....................       1,000,000
Grade crossing hazard mitigation/Low-cost innovative           2,000,000
 technologies...........................................
Track and structures technology.........................       1,000,000
Corridor planning.......................................       4,000,000
Magnetic levitation.....................................       2,000,000
------------------------------------------------------------------------


    Train Control Systems.--The Committee notes that progress 
has been made on several pilot projects that are important to 
demonstrating the operational and safety benefits of wider 
deployment of train control system technologies on freight 
railroads. The Committee encourages FRA to utilize a portion of 
its train control systems funding to further the development 
and testing of safety overlay train control technologies that 
work in conjunction with existing methods of operation and 
signal and control systems and enforce movement authorities and 
track restrictions generated by those systems to protect 
against the consequences of human and technology failures.
    High-Speed Non-Electric Locomotive.--The Committee provides 
$1,000,000 for the high-speed non-electric locomotive program 
and directs FRA to submit a plan, detailing the location and 
timetable for demonstrating the non-electric locomotive, within 
90 days of the enactment of this Act.
    Grade Crossing Hazard Mitigation/Low-cost Innovative 
Technologies.--The Committee recommends $2,000,000 for grade 
crossing hazard mitigation and low-cost innovative technology 
initiatives. Within the funds provided, the Committee includes 
the following allocation:

------------------------------------------------------------------------
                                                              Amount
------------------------------------------------------------------------
Alaska Railroad Luminescent Grade Crossings.............      $1,000,000
Vicksburg, MS Fairgrounds Street Grade Crossing                1,000,000
 Mitigation.............................................
------------------------------------------------------------------------


    Corridor Planning.--The Committee includes $4,000,000 for 
passenger rail corridor planning. Within the funds provided, 
the Committee includes the following allocations:

------------------------------------------------------------------------
                                                              Amount
------------------------------------------------------------------------
Central Utah High Speed Rail Corridor Study.............        $400,000
Florida High Speed Rail Corridor Study..................       1,200,000
Gulf Coast High Speed Rail Corridor Study...............       1,000,000
Memphis Region High Speed Rail Study....................         400,000
Spokane Region High Speed Rail Corridor Study...........       1,000,000
------------------------------------------------------------------------

    Magnetic Levitation Transportation.--The Committee provides 
$2,000,000 for magnetic levitation activities, $1,000,000 of 
which is provided for the California-Nevada Interstate Maglev 
Project and $1,000,000 of which is provided for the 
Pennsylvania Maglev Deployment Project.

               RAIL-HIGHWAY CROSSING HAZARD ELIMINATIONS

    Section 1103 of the Transportation Equity Act for the 21st 
Century [TEA21] provides $5,250,000 for the elimination of 
rail-highway crossing hazards on high speed rail corridors. Of 
these set-aside funds, the following allocations are made:

------------------------------------------------------------------------
                                                              Amount
------------------------------------------------------------------------
Grade Separation of CSX/US 90 at Hamilton Boulevard,          $1,000,000
 Mobile, AL.............................................
Grade Separation at McCord Road, Lucas County, OH.......       1,000,000
Illinois Statewide Highway-Rail Crossing Safety Program.         500,000
Vermont Statewide Highway-Rail Crossing Safety Program..       1,000,000
Wisconsin Railway-Highway Crossing Hazard Elimination            500,000
 Project................................................
------------------------------------------------------------------------

                     ALASKA RAILROAD REHABILITATION

Appropriations, 2004 \1\................................     $24,853,000
Budget estimate, 2005...................................................
Committee recommendation................................      25,000,000

\1\ Reflects reduction of $147,000 pursuant to Division H, section 168 
of Public Law 108-199.

    The Alaska Railroad was established by Congress on March 
12, 1914, in order to facilitate economic development and 
access to mineral deposits in the Territory of Alaska. 
Completed in 1923, the railroad was part of the Department of 
the Interior until the creation of the Department of 
Transportation at which time the railroad became part of FRA. 
On January 5, 1985, pursuant to authority delegated by the 
Alaska Railroad Transfer Act of 1982, (45 U.S.C. 1201 et seq.), 
FRA sold the Federal Government's interest in the Alaska 
Railroad to the Alaska Railroad Corporation [ARRC], a public 
corporation of the State of Alaska. Today, the ARRC provides 
freight and passenger service from the ice-free ports of 
Whittier, Seward and Anchorage to Fairbanks as well as Denali 
National Park and military installations. Vessel and rail barge 
connections are provided from Seattle, Washington and Prince 
Rupert, British Columbia.
    The Committee provides $25,000,000 for rail safety and 
infrastructure improvements benefiting passenger and freight 
operations of the Alaska Railroad.

     GRANTS TO THE NATIONAL RAILROAD PASSENGER CORPORATION (AMTRAK)

Appropriations, 2004 \1\................................  $1,217,773,000
Budget estimate, 2005...................................     900,000,000
Committee recommendation................................   1,217,000,000

\1\ Reflects reduction of $7,227,000 pursuant to Division H, section 168 
of Public Law 108-199.

    The National Railroad Passenger Corporation [Amtrak] is a 
for-profit corporation that operates intercity passenger rail 
services in 46 States and the District of Columbia, in addition 
to serving as a contractor in various capacities for several 
commuter rail agencies. Congress created Amtrak in the Rail 
Passenger Service Act of 1970 (Public Law 91-518) in response 
to private carriers' inability to profitably operate intercity 
passenger rail service due a steady decline in ridership that 
began in the 1920s. Thereafter, Amtrak assumed the common 
carrier obligations of the private railroads in exchange for 
the right to priority access of their tracks for incremental 
cost.
    Amtrak has operated at a deficit every single year since 
its inception in 1971. This is despite generating more than 
$35,000,000,000 in revenue and receiving approximately 
$28,000,000,000 in Federal subsidy assistance during this time. 
During this time, Amtrak has accumulated a significant backlog 
of both deferred maintenance costs and capital investment while 
also failing to make any substantial progress toward financial 
self-sufficiency or even operational solvency.
    Recently, Amtrak's annual deficits have grown from 
approximately $900,000,000 during the 1990s to well over 
$1,000,000,000 each year since 2001. Even with the efforts of 
Amtrak's current management team to control core expenses and 
institute disciplined financial controls, its most recent 
strategic plan forecasts a budget deficit of over 
$1,200,000,000 in fiscal year 2004, increasing to over 
$1,500,000,000 by fiscal year 2009. Meanwhile, Federal grants 
to Amtrak have increased from $571,000,000 in fiscal year 2000 
to over $1,200,000,000 in fiscal year 2004 with projections 
that this amount must increase to approximately $1,800,000,000 
in fiscal year 2005 and each year through fiscal year 2009 in 
order to maintain Amtrak as an ongoing viable entity.
    Today, Amtrak serves less than 1 percent of America's 
intercity passengers, even while its operating losses continue 
to increase, its on-time performance continues to decrease and 
its Federal subsidy requests spiral upward. The Committee 
remains convinced that Amtrak's current operating structure is 
not a sustainable business model and that Amtrak is in need of 
comprehensive reform.

                        COMMITTEE RECOMMENDATION

------------------------------------------------------------------------
 Federal Resources Available to Amtrak in Fiscal Year
                         2005                                Amount
------------------------------------------------------------------------
Federal Subsidy.......................................    $1,217,000,000
JOBS Act Tax Credits..................................       330,000,000
                                                       -----------------
      Total...........................................     1,547,000,000
------------------------------------------------------------------------

    The Committee provides $1,217,000,000 for Amtrak, which is 
$317,000,000 more than the budget request. The Committee notes 
that section 636 (Railroad Revitalization and Security 
Investment Credit) of the ``Jumpstart Our Business Strength Act 
[JOBS]'' (S. 1637), which passed the Senate on May 11, 2004 and 
is currently awaiting consideration by House and Senate 
conferees, will provide an estimated $330,000,000 for Amtrak's 
ongoing operations and capital investment during fiscal year 
2005. The Committee believes that these combined resources, 
totaling $1,547,000,000, will be sufficient to meet Amtrak's 
Federal funding requirements during fiscal year 2005.
    The Committee also includes bill language maintaining the 
accountability measures put in place by the fiscal year 2004 
Act (Public Law 108-199).
    Diesel-multiple Units.--The Committee is encouraged by 
Amtrak's advancement of the procurement of FRA compliant DMU 
railcars for delivery early in fiscal year 2006 that will be 
used for commuter rail service operated by Amtrak in Vermont, 
Wisconsin, Illinois, Oklahoma, New York, Oregon, Connecticut, 
Washington, and California. The Committee understands the 
numerous efficiency, environmental, operational, and cost-
saving benefits that will be achieved by this procurement. This 
is a positive example of a sound business decision that will 
well serve Amtrak, its riders, and is the type of economically 
grounded decision that the Committee encourages.

            GENERAL PROVISIONS--FEDERAL RAIL ADMINISTRATION

    Section 150 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 services at reasonable prices.
    Section 151 clarifies that Federal funds provided to the 
Alaska Railroad may only be used for railroad and related 
purposes and that the right of way may be fully utilized.
    Section 152 clarifies fiscal year 2004 funding for KBS 
railroad improvements.

                     Federal Transit Administration

    The Federal Transit Administration was established as a 
component of the Department of Transportation by Reorganization 
Plan No. 2 of 1968, effective July 1, 1968, which transferred 
most of the functions and programs under the Federal Transit 
Act of 1964, as amended (78 Stat. 302; 49 U.S.C. 1601 et seq.), 
from the Department of Housing and Urban Development. The 
missions of the Federal Transit Administration are: to assist 
in the development of improved mass transportation facilities, 
equipment, techniques, and methods; to encourage the planning 
and establishment of urban and rural transportation services 
needed for economical and desirable development; to provide 
mobility for transit dependents in both metropolitan and rural 
areas; to maximize the productivity and efficiency of 
transportation systems; and to provide assistance to State and 
local governments and their instrumentalities in financing such 
services and systems.
    The programs funded by the Federal Transit Administration, 
as contained in TEA21 and a series of short-term extensions for 
fiscal year 2004, need to be reauthorized for fiscal year 2005, 
and the budget request for the Federal Transit Administration 
reflects the administration's reauthorization proposal. The 
budget request retains a separate account for administration 
and restructures the Federal transit programs into two 
accounts: Formula Grants and Research and Major Capital 
Investment Grants. In addition, the budget request proposes to 
consolidate funding from the general fund for the 
administration account and from the Highway Trust Fund for the 
proposed Formula Grants and Research account.
    The Committee recommendation provides sufficient funding 
and stability for the Federal Transit Administration pending 
completion of the reauthorization of the surface transportation 
programs. Consistent with the general guidance provided in the 
report, the Committee has followed the program structure found 
in current law and has resisted the temptation to prejudge 
programmatic priorities and modifications that may emerge from 
the reauthorization process. Nevertheless, the Committee is 
concerned that the single-minded focus to increase local 
flexibility and funding stability as presented in the budget 
request may cause neglect to other important Federal interests 
in a national transit program. The Federal interest in transit 
should be--and is--greater than establishing rote entitlements 
that merely redistribute trust fund revenue by formula.
    Under the Committee recommendation, a total program level 
of $7,758,000,000 is provided for the administrative expenses 
and programs of the Federal Transit Administration for fiscal 
year 2005. This funding is comprised of $993,024,000 in 
appropriations from the general fund and $6,764,976,000 in 
limitations on contract authority from the mass transit account 
of the Highway Trust Fund.
    The following table summarizes the Committee's 
recommendations compared to fiscal year 2004 and the 
administration's request:

----------------------------------------------------------------------------------------------------------------
                                                                                                   Committee
                        Program                           2004 enacted \1\    2005 estimate      recommendation
----------------------------------------------------------------------------------------------------------------
Administrative expenses................................        $75,055,000        $79,931,000        $78,000,000
Formula grants \2\.....................................      3,766,645,000  .................      4,007,175,000
Formula grants and research............................  .................      5,622,871,000  .................
University transportation research.....................          5,965,000  .................          6,000,000
Transit planning and research..........................        125,257,000  .................        128,000,000
Capital investment grants \3\ \4\......................      3,188,576,000  .................      3,413,825,000
Major capital investment grants........................  .................      1,563,198,000  .................
Job access and reverse commute grants \3\..............        104,380,500  .................        125,000,000
                                                        --------------------------------------------------------
      Total............................................      7,265,878,000      7,266,000,000      7,758,000,000
----------------------------------------------------------------------------------------------------------------
\1\ Reflects reduction of $43,123,000 in fiscal year 2003 pursuant to Division H, section 168 of Public Law 108-
  199.
\2\ Fiscal year 2004 reflects transfer of $49,705,000 from Formula grants to Capital investment grants.
\3\ Fiscal year 2004 reflects transfer of $19,882,000 from Job Access and Reverse Commute grants to Capital
  investment grants.
\4\ Excludes transfers of unobligated balances of $4,514,482 from Job Access and Reverse Commute grants to
  Capital investment grants.

                        ADMINISTRATIVE EXPENSES

------------------------------------------------------------------------
                                        General fund        Trust fund

------------------------------------------------------------------------
Appropriations, 2004 \1\..........       $15,010,910        $60,043,640
Budget estimate, 2005.............        79,931,000    ................
Committee recommendation..........         9,984,000         68,016,000
------------------------------------------------------------------------
\1\ Reflects total reduction of $445,000 pursuant to Division, H,
  section 168 of Public Law 108-199. Does not reflect reduction of
  $654,519 pursuant to Division F, section 517 of Public Law 108-199.

    Administrative Expenses funds personnel, contract 
resources, information technology, space management, travel, 
training, and other administrative expenses necessary to carry 
out its mission to promote public transportation systems.
    The accompanying bill provides a total of $78,000,000 in 
new budget resources for the agency's salaries and 
administrative expenses, which is comprised of an appropriation 
of $9,984,000 from the general fund and a limitation on 
obligations of $68,016,000 from the mass transit account of the 
highway trust fund. The recommended level of funding is 
$2,945,000 more than the fiscal year 2004 enacted level.
    The specific levels of funding recommended by the Committee 
are as follows:

------------------------------------------------------------------------
                                                            Committee
                                                          recommendation
------------------------------------------------------------------------
Office of the Administrator............................         $900,000
Office of Chief Counsel................................        4,050,000
Office of Civil Rights.................................        2,750,000
Office of Communications and Congressional Affairs.....        1,210,000
Office of Budget and Planning..........................        6,700,000
Office of Planning.....................................        4,000,000
Office of Program Management...........................        7,120,000
Office of Research, Demonstration, and Innovation......        4,830,000
Office of Administration...............................        6,725,000
Central Account........................................       18,015,000
Regional Offices.......................................       19,200,000
National Transit Database..............................        2,500,000
------------------------------------------------------------------------

    Budget Justifications.--The FTA is directed to submit its 
fiscal year 2005 congressional justification for administrative 
expenses by office, with material detailing salaries and 
expenses, staffing increases, and programmatic initiatives of 
each office.
    National Transit Database.--The Committee recommendation 
continues funding for the operation of the National Transit 
Database in the administrative expenses account. The budget 
request assumed funding for the National Transit Database to be 
set aside under the proposed Formula Grants and Research 
account. The Committee believes that the activities of the 
database are administrative in nature and therefore provides 
$2,500,000 for continued operation and maintenance of the 
National Transit Database.

                             FORMULA GRANTS

------------------------------------------------------------------------
                                        General fund       Trust fund
------------------------------------------------------------------------
Appropriations, 2004 \1\............      $713,565,000    $3,053,079,920
Budget estimate, 2005 \2\...........  ................  ................
Committee recommendation............       512,918,000     3,494,257,000
------------------------------------------------------------------------
\1\ Reflects reduction of $22,650,000 pursuant to Division, H, section
  168 of Public Law 108-199. Does not reflect FHWA flex funding
  transferred to FTA.
\2\ For comparative purposes $5,622,871,000 in Trust Funds is included
  in the fiscal year 2005 estimate for the proposed Formula Grants and
  Research account.

    Formula grants to States and local agencies funded under 
this heading 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 non-urbanized areas. In 
addition, setasides 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.
    The Committee recommends $4,007,175,000 for transit formula 
grants. The recommended level of funding is comprised of an 
appropriation of $512,918,000 from the general fund and 
$3,494,257,000 from a limitation on obligations from the mass 
transit account of the highway trust fund. The recommendation 
is $190,825,000 more than the fiscal year 2004 enacted level 
and provides approximately 5 percent growth in funding for 
formula grants.
    The Committee recommendation maintains the set-aside for 
project oversight in current law instead of providing an 
increase for program management of formula funds, as requested. 
The Committee distributes, consistent with statutory set 
asides, the total level of funding among the formula categories 
as follows:

------------------------------------------------------------------------

------------------------------------------------------------------------
Urbanized areas (sec, 5307)..........................     $3,604,215,608
Clean fuels (sec. 5308)..............................         50,000,000
Elderly and disabled (sec. 5310).....................         94,689,001
Nonurbanized areas (sec. 5311).......................        251,320,391
Over-the-Road Bus Program............................          6,950,000
Alaska railroad......................................          4,825,700
------------------------------------------------------------------------

    Section 3007 of TEA21 amends U.S.C. 5307, urbanized formula 
grants, by striking the authorization to utilize these funds 
for operating costs, but includes a specific provision allowing 
the Secretary to make operating grants to urbanized areas with 
a population of less than 200,000. Generally, urbanized formula 
grants may be used to fund capital projects and to finance 
planning and improvement costs of equipment, facilities, and 
associated capital maintenance used in mass transportation. All 
urbanized areas greater than 200,000 in population are 
statutorily required to use 1 percent of their annual formula 
grants on enhancements, which include landscaping, public art, 
bicycle storage, and connections to parks.
    Clean Fuels Program.--The Transportation Equity Act for the 
21st Century, as extended, requires that $50,000,000 be set-
aside from funds made available under the formula grants 
program to fund the clean fuels program. The clean fuels 
program is supplemented by an additional set-aside from the 
major capital investment's bus program and provides grants for 
the purchase or lease of clean fuel buses for eligible 
recipients in areas that are not in compliance with air quality 
attainment standards. The Committee assumes continuation of the 
program for fiscal year 2005.
    Over-the-Road Buses.--The Committee has included $6,950,000 
in fiscal year 2005 for the over-the-road accessibility 
program. These funds are intended to assist over-the-road bus 
operators in complying with the Americans with Disabilities Act 
accessibility requirements.
    The following table displays the State-by-State 
distribution of the formula program funds within each of the 
program categories:

 FEDERAL TRANSIT ADMINISTRATION ESTIMATED FISCAL YEAR 2005 APPORTIONMENTS FOR FORMULA GRANTS PROGRAMS (BY STATE)
----------------------------------------------------------------------------------------------------------------
                                                                               Section 5310
                                         Section 5307    Section 5311  Non- Elderly & Persons     State Total
                State                   Urbanized Area     urbanized Area          with          Formula Grants
                                                                               Disabilities
----------------------------------------------------------------------------------------------------------------
Alabama.............................        $15,898,702         $6,990,843         $1,653,143        $24,542,688
Alaska..............................      \1\ 8,670,039            974,358            245,856          9,890,253
America Samoa.......................  .................            159,828             60,574            220,402
Arizona.............................         46,617,920          3,410,398          1,726,433         51,754,751
Arkansas............................          8,253,732          5,056,871          1,073,452         14,384,055
California..........................        614,884,086         10,746,168          9,939,916        635,570,170
Colorado............................         49,350,475          3,036,059          1,209,859         53,596,393
Connecticut.........................         47,131,364          1,554,087          1,176,983         49,862,434
Delaware............................          6,451,578            704,605            363,974          7,520,157
District of Columbia................         72,418,262  .................            317,906         72,736,168
Florida.............................        173,636,437          7,008,648          6,350,964        186,996,049
Georgia.............................         70,536,840          8,861,223          2,400,181         81,798,244
Guam................................  .................            431,869            158,779            590,648
Hawaii..............................         27,700,370          1,047,905            493,060         29,241,335
Idaho...............................          5,955,172          1,925,341            471,699          8,352,212
Illinois............................        229,844,756          7,481,641          3,690,071        241,016,468
Indiana.............................         36,721,488          7,447,419          1,955,634         46,124,541
Iowa................................         13,354,885          5,053,750          1,022,083         19,430,718
Kansas..............................         10,358,179          4,130,483            919,144         15,407,806
Kentucky............................         19,459,263          6,904,687          1,526,225         27,890,175
Louisiana...........................         30,806,655          5,393,621          1,519,637         37,719,913
Maine...............................          3,198,322          2,680,881            552,739          6,431,942
Maryland............................         72,508,637          2,787,045          1,613,893         76,909,575
Massachusetts.......................        131,297,338          1,991,801          2,133,714        135,422,853
Michigan............................         70,204,631          9,373,231          3,074,372         82,652,234
Minnesota...........................         44,718,372          6,159,040          1,425,777         52,303,189
Mississippi.........................          5,296,756          6,039,083          1,076,439         12,412,278
Missouri............................         39,486,640          6,987,147          1,868,942         48,342,729
Montana.............................          2,696,343          1,863,561            396,982          4,956,886
N. Mariana Islands..................            706,082             20,996             61,527            788,605
Nebraska............................          8,684,724          2,527,949            619,219         11,831,892
Nevada..............................         25,109,731            898,158            750,690         26,758,579
New Hampshire.......................          4,849,649          1,908,080            473,884          7,231,613
New Jersey..........................        225,370,638          1,842,800          2,706,387        229,919,825
New Mexico..........................          9,480,259          2,668,971            680,743         12,829,973
New York............................        571,605,629          9,685,603          6,378,466        587,669,698
North Carolina......................         38,879,660         11,963,735          2,681,178         53,524,573
North Dakota........................          3,191,712          1,147,717            319,670          4,659,099
Ohio................................         90,857,300         11,275,793          3,590,431        105,723,524
Oklahoma............................         15,082,367          5,487,507          1,260,578         21,830,452
Oregon..............................         38,047,194          4,031,974          1,170,555         43,249,723
Pennsylvania........................        157,200,959         11,354,481          4,233,205        172,788,645
Puerto Rico.........................         44,960,403            925,975          1,461,102         47,347,480
Rhode Island........................          9,566,380            335,329            479,283         10,380,992
South Carolina......................         14,685,410          5,965,045          1,443,863         22,094,318
South Dakota........................          2,452,427          1,562,992            349,627          4,365,046
Tennessee...........................         29,619,787          7,600,878          2,001,033         39,221,698
Texas...............................        205,012,213         16,894,688          5,910,386        227,817,287
Utah................................         30,020,839          1,353,283            614,828         31,988,950
Vermont.............................          1,090,348          1,404,539            302,586          2,797,473
Virgin Islands......................  .................            303,002            152,013            455,015
Virginia............................         55,946,239          6,598,382          2,108,857         64,653,478
Washington..........................         98,819,934          4,436,609          1,797,795        105,054,338
West Virginia.......................          5,170,282          3,607,969            816,085          9,594,336
Wisconsin...........................         40,883,944          7,033,496          1,644,213         49,561,653
Wyoming.............................          1,443,178          1,026,245            262,366          2,731,789
                                     ---------------------------------------------------------------------------
      Subtotal......................      3,586,194,530        250,063,789         94,689,001      3,930,947,320
Oversight...........................         18,021,078          1,256,602  .................         19,277,680
                                     ---------------------------------------------------------------------------
      Total.........................      3,604,215,608        251,320,391         94,689,001      3,950,225,000
Over-the-Road Bus Program...........  .................  .................  .................          6,950,000
Clean Fuels.........................  .................  .................  .................         50,000,000
                                     ---------------------------------------------------------------------------
      Grand Total...................  .................  .................  .................      4,007,175,000
----------------------------------------------------------------------------------------------------------------
\1\ Includes $4,825,700 to Alaska Railroad for improvements to passenger operations.

                   UNIVERSITY TRANSPORTATION RESEARCH

------------------------------------------------------------------------
                                              General fund   Trust fund
------------------------------------------------------------------------
Appropriations, 2004 \1\....................    $1,193,000    $4,771,680
Budget estimate, 2005 \2\...................  ............  ............
Committee recommendation....................       768,000     5,232,000
------------------------------------------------------------------------
\1\ Reflects reduction of $35,000 pursuant to Division H, section 168 of
  Public Law 108-199.
\2\ For comparison purposes, $6,000,000 included in proposed ``Formula
  Grants and Research'' account.

    Section 5505 of TEA21 provides authorization for the 
university transportation research program. The purpose of the 
university transportation research program is to foster a 
national resource and focal point for the support and conduct 
of research and training concerning the transportation of 
passengers and property. Funds provided under the FTA 
university transportation research program are transferred to 
and managed by the Research and Special Programs Administration 
and combined with a transfer of funds from the Federal Highway 
Administration. The transit university transportation research 
program funds are statutorily available only to the following 
universities: University of Minnesota and Northwestern 
University. Funding is also statutorily available for awards 
based on competitive applications of approved universities.
    The Committee action provides $6,000,000 to continue the 
university transportation research program. The recommended 
funding level is comprised of an appropriation of $768,000 from 
the general fund and $5,232,000 from a limitation on 
obligations from the mass transit account of the highway trust 
fund. The Committee recommendation is the same as the fiscal 
year 2004 enacted level and is consistent with the level of 
funding during the authorization period covered by TEA21.

                     TRANSIT PLANNING AND RESEARCH

------------------------------------------------------------------------
                                             General fund    Trust fund
------------------------------------------------------------------------
Appropriations, 2004 \1\ \2\..............     $25,051,000  $100,205,280
Budget estimate, 2005 \3\.................  ..............  ............
Committee recommendation..................      16,384,000   111,616,000
------------------------------------------------------------------------
\1\ Reflects reduction of $743,000 pursuant to Division H, section 168
  of Public Law 108-199.
\2\ Does not reflect FHWA flex funding transferred to FTA.
\3\ For comparative purposes, total program level of $190,437,000 is
  request as included in proposed ``Formula Grants and Research''
  account and appropriations in the ``Major Capital Investment Grants.''

    This appropriation provides financial assistance to States 
for statewide planning and other technical assistance 
activities; local and regional planning support for 
metropolitan areas and non-urban areas; research, development, 
and demonstration projects; and the national transit institute. 
National research and planning funds are used to partner with 
the transportation industry and academic institutions to 
further transit technology and increase the quality and level 
of transit services.
    The Committee action provides $128,000,000 for transit 
planning and research. The recommended level of funding is 
comprised of an appropriation of $16,384,000 from the general 
fund and a limitation on obligations from the mass transit of 
the highway trust fund of $111,616,000.
    The accompanying bill specifies that $5,250,000 is 
available for rural transportation assistance; $4,000,000 for 
the National Transit Institute at Rutgers University; 
$8,250,000 for transit cooperative research; $60,385,600 for 
metropolitan planning; $12,614,400 for State planning; and, 
$37,500,000 for the national planning and research program.
    National Planning and Research.--Within the total funding 
level for the national planning and research program, the 
Committee recommendation includes the following activities in 
the corresponding amounts:

------------------------------------------------------------------------
                         Project                              Amount
------------------------------------------------------------------------
Advanced vehicle technology concepts, University of             $500,000
 Kansas.................................................
Center for composite manufacturing, AL..................       1,000,000
Chester County transit security training facility, PA...         150,000
Fischer-Tropsch clean diesel technology demonstration,           900,000
 OK.....................................................
hOurCar, MN.............................................         100,000
Lehigh Carbon Community College transit first responder          100,000
 training facility......................................
Low cost carbon fiber production technology, University          500,000
 of Tennessee...........................................
Nanostructured catalysts for hydrogen fuel cells (CATV         1,000,000
 UA)....................................................
National Bio-Terrorism Civilian Medical Response Center,         750,000
 PA.....................................................
NDSU Transit Center for Small Urban Areas, ND...........         400,000
Pawtucket train depot rehabilitation initiative, RI.....         235,000
Phillipsburg to Northeastern NJ/NYC commuter rail study,         400,000
 NJ.....................................................
Project Action..........................................       3,000,000
Sitting Bull College bus facility planning, SD..........          65,000
Southern Fuel Cell Coalition............................         500,000
Statewide multimodal trip planner Initiative, WA........       1,000,000
Transit access CUMTD initiative, IL.....................         500,000
Transit technology career ladder partnership training            500,000
 program................................................
WVU exhaust emissions testing initiative, WV............       1,400,000
------------------------------------------------------------------------

                      FORMULA GRANTS AND RESEARCH

                      (LIMITATION ON OBLIGATIONS)

                          (HIGHWAY TRUST FUND)

Obligation limitation, 2004.............................................
Budget estimate, 2005...................................  $5,622,871,000
Committee recommendation................................................

    As proposed in the budget, the Formula Grants and Research 
would include formula grants to States and local agencies and 
transit planning and research activities. Formula grants to 
States and local agencies under the administration's proposal 
would include the following categories: urbanized areas (49 
U.S.C. sec. 5307), fixed guideway modernization, special needs 
of elderly individuals and individuals with disabilities (49 
U.S.C. sec. 5310), non-urbanized areas (49 U.S.C. sec. 5311), 
and the New Freedom Initiative. The administration's budget 
also proposes to distribute funding for Job Access and Reverse 
Commute by formula instead of as a competitive program. 
Finally, set-asides of formula funds are directed to: the bus 
testing program, authorized under 49 U.S.C. section 5318; the 
National Transit Database; a grant program for intercity bus 
operations to finance Americans with Disabilities Act [ADA] 
accessibility costs; and the Alaska Railroad for improvements 
to its passenger operations.
    The Committee does not recommend funding for formula grants 
and research and has funded these activities consistent with 
current law in the absence of completion of the surface 
transportation reauthorization bill. On February 12, the U.S. 
Senate passed the Safe, Accountable, Flexible, and Efficient 
Transportation Equity Act of 2003 to reauthorize the surface 
transportation programs. The Committee notes the 
reauthorization Act passed by the U.S. Senate does not 
consolidate current transit programs and does not change the 
distribution of current discretionary and competitive programs 
to formula apportionments.

                      TRUST FUND SHARE OF EXPENSES

                (LIQUIDATION OF CONTRACT AUTHORIZATION)

                          (HIGHWAY TRUST FUND)

    The liquidation cash appropriation provides for liquidation 
of obligations incurred pursuant to contract authorization and 
annual limitations on obligations for the highway trust fund 
share of the administrative expenses, formula grants, 
university transportation research, transit planning and 
research, job access and reverse commute grants, and capital 
investment grants.
    The Committee recommends $6,764,976,000 in liquidating cash 
for the administrative expenses and programs of the Federal 
Transit Administration, which is $6,435,970,000 more than the 
budget estimate and $952,274,000 more than the fiscal year 2004 
enacted level. The recommended level is equal to limitations on 
obligations included for fiscal year 2005 and is necessary to 
meet the accounting principles of the highway trust fund.

                       CAPITAL INVESTMENT GRANTS

------------------------------------------------------------------------
                                         General funds     Trust funds
------------------------------------------------------------------------
Appropriations, 2004 \1\ \2\..........     $693,385,000   $2,495,191,000
Budget estimate, 2005 \3\.............    1,234,192,000      329,006,000
Committee recommendation..............      436,970,000    2,976,855,000
------------------------------------------------------------------------
\1\ Reflects reduction of $18,511,000 pursuant to Division H, section
  168 of Public Law 108-199.
\2\ Includes $49,705,000 transferred from Formula Grants and $19,882,000
  transferred from Job Access and Reverse Commute Grants pursuant to
  Public Law 108-199.
\3\ For comparative purposes, $1,563,198,000 is listed for the proposed
  new Major Capital Investment Grant Account, of which $1,234,192,000
  are General Funds, $329,006,000 are Trust Funds.

    Section 5309 of 49 U.S.C. authorizes discretionary grants 
or loans to States and local public bodies and agencies thereof 
to be used in financing mass transportation investments. 
Investments may include construction of new fixed guideway 
systems and extensions to existing guideway systems; major bus 
fleet expansions and bus facility construction; and fixed 
guideway expenditures for existing systems.
    The Committee action provides a level of $3,413,825,000. 
Within this total, $2,976,855,000 is derived from the mass 
transit account of the highway trust fund and $436,970,000 is 
appropriated from the general fund.
    The Committee provides that funding for capital investment 
grants shall be distributed as follows:

------------------------------------------------------------------------
                                                              Amount
------------------------------------------------------------------------
Bus and bus facilities..................................    $725,000,000
Fixed guideway modernization............................   1,214,400,000
New starts..............................................   1,474,425,000
------------------------------------------------------------------------

                         BUS AND BUS FACILITIES

    The Committee recommendation for bus and bus facilities 
funding is $725,000,000. These funds may be used to replace, 
rehabilitate, and purchase buses and related equipment and to 
construct bus-related facilities.
    Limited Extensions of Discretionary Funds.--There have been 
occasions when the Committee has extended the availability of 
capital investment funds. These extensions are granted on a 
case by case basis and, in nearly all instances, are due to 
circumstances that were unforeseen by the project's sponsor. 
The availability of these particular funds is intended for one 
additional year, absent further congressional direction. The 
Committee directs the FTA not to reallocate funds provided in 
fiscal year 2002 or previous Acts for the following bus and bus 
facilities projects:
    Norwich bus terminal and pedestrian access, CT;
    East Haddam transportation vehicles and transit facilities, 
CT;
    Indianapolis Downtown transit facility, IN;
    Lake Charles bus and bus-related facilities, LA;
    Springfield Union Station intermodal facility, MA;
    Blue Water Area Transportation Commission bus facilities, 
MI;
    Las Cruces intermodal transit facility, NM;
    Oglala Sioux Tribe buses and bus facilities, SD;
    Montgomery Rosa Parks bus project, AL;
    State dock intermodal passenger and freight terminal bus 
and bus related facilities, AL;
    Statewide buses and bus facilities, KS;
    Cab Care paratransit facility, MO;
    Missouri Pacific Depot, MO;
    Brookhaven multi-modal facility, MS;
    Hattiesburg intermodal facility, MS;
    Granite CNG buses and facilities, NH;
    Wilkes-Barre Intermodal Transportation Center, PA;
    Butler County multi-modal transfer center, PA;
    Callowhill bus garage replacement, PA;
    County of Lackawanna bus facility, PA;
    Hershey intermodal transportation center, PA;
    Monroe County park and ride, PA;
    Cherry Street multi-modal facility, IN;
    Memphis intermodal facility, TN; and
    Southern Teton Area, WY--bus facility.
    Pooled Purchase Pilot Projects.--The Committee directs the 
Administrator to continue the pilot program that was authorized 
by section 166 of the Transportation, Treasury, and Independent 
Agencies Appropriations Act, 2004, for cooperative procurement 
of major capital equipment under sections 5307, 5309, and 5311. 
The Committee intends that the program be administered as 
required under subsections (b) through (g) of section 166. 
However, given the level of interest in this program, the 
Committee believes there should be a total of five pilot 
projects.
    The Committee expects the Administrator to evaluate the 
proposals based on the selection criteria set forth in the 
announcement of the program and request for proposals (Federal 
Register Notice--Vol. 69, No. 120 Page 35127, June 23, 2004). 
The Committee also expects the Administrator to review 
proposals expeditiously, so that the proposing party receives 
notification of acceptance or denial by no later than 15 days 
after the FTA receives the request for review.
    Finally, the Committee directs the Secretary to submit a 
report to the House and Senate Committees on Appropriations on 
the results of each of the five pilot projects. Each report 
should be submitted no later than 30 days after delivery of the 
base order for the pilot project in question. Each report 
should evaluate any savings realized through the cooperative 
procurement and the benefits of incorporating cooperative 
procurement, as shown by that project, into the mass transit 
program as a whole.
    Bus Procurement Process.--Federal, State, and local 
governments spend hundreds of thousands of dollars every year 
to procure transit buses and bus equipment. The Committee is 
interested in ensuring that grants for bus and bus facilities 
are made in a judicious manner, particularly since these 
investments are funded with a Federal share of 80 percent.
    There has been a rapid increase in new technology in buses 
between 1980 and 1990, and an even greater increase between 
1990 and 2000. The enormous number of technological options 
available has led to extremely complex procurements. It has 
also resulted in dramatic increases in the initial capital cost 
of bus procurement.
    Besides raising the cost of the procurement, exceedingly 
customized bus specifications cause production problems for bus 
manufacturers. Bus manufacturing is a low-margin business, so 
financial difficulties due to customization are hard to absorb. 
In addition to the problems for manufacturers, maintenance on 
highly individualized buses can create operational issues for 
transit agencies, in terms of training required as well as the 
ability to find and retain maintenance staff.
    Standard bus procurement guidelines--painstakingly 
negotiated--do exist. However, there are numerous forces in 
play, other than the sheer volume of options, that lead to 
deviations from those guidelines. For example, transit agencies 
often suggest that they have unique operating situations that 
require deviations.
    Brand loyalty is also a factor in the procurement of buses, 
and can adversely affect the cost-effectiveness of 
procurements. Some transit agencies specify makes and models 
for components such as engines and braking systems. When a 
brand name is specified, there is little or no incentive for 
suppliers to negotiate on price. The resultant increased 
component costs are passed through to the transit agency and 
ultimately absorbed by the Federal Government.
    Many transit agencies seem to have significant portions of 
their fleet originating from one manufacturer. The Committee is 
especially concerned that some recipients of Federal transit 
assistance have steered procurements to specific manufacturers. 
The Committee questions how much weight fleet stability should 
receive in awarding bus contracts that are paid for 
predominately from Federal transit funding.
    Finally, transit agencies come under political pressure to 
procure buses from a local manufacturer, regardless of whether 
that manufacturer is the best choice or the lowest cost 
provider.
    With this in mind, the Committee directs the Office of 
Inspector General of the Department of Transportation to 
conduct a study of the processes used by recipients of 
assistance under chapter 53, title 49, United States Code, to 
procure buses. Because of the potential for irregularities 
compromising the integrity of the procurement process, the 
Committee believes it important to have the study carried out 
by an agency with criminal investigatory powers.
    The study should include, but not be limited to, the six 
most recent bus procurements completed by recipients of 
assistance under chapter 53, title 49, as of the date of 
enactment of this Act.
    The Inspector General is also directed to consider the 
following cost-related issues:
  --To what extent terms and conditions, including but not 
        limited to those regarding performance surety bonds and 
        liquidated damages, are themselves cost factors in 
        vehicle pricing;
  --To what extent specifying makes and models of components 
        adds to vehicle costs;
  --To what extent departing from the standard bus procurement 
        guidelines adds to vehicle costs; and
  --Any other factors that the Inspector General finds may 
        adversely affect competition, thereby unduly driving 
        down the cost-effectiveness of the Federal investment.
    The Committee is particularly concerned that many 
recipients require performance surety bonds and liquidated 
damages at levels out of proportion to likely risks to the 
buyer. Therefore, in examining terms and conditions, the 
Inspector General should take care to evaluate the 
appropriateness of the amounts commonly required for 
performance surety bonds and liquidated damages and determine 
whether they unduly raise the cost of buses to be procured.
    The Inspector General is also directed to examine the 
extent to which recipients of assistance under chapter 53, 
title 49, utilize the same manufacturer for 20 percent or more 
of their fleets or steer procurements to specific 
manufacturers; the reasons for doing so; and the effect this 
usage has on the competitive process.
    Finally, the Committee expects to receive a report of the 
results of this study within 1 year of enactment of this Act. 
The report should include, but not be limited to: (1) a 
description of the problems in the procurement process 
identified by the study and (2) recommendations to Congress 
concerning actions needed to address such problems.
    Hoover and Vestavia Hills, Alabama.--Funds provided in 
fiscal year 2003 to the cities of Hoover and Vestavia Hills for 
diesel hybrid buses shall instead be available to procure 
alternative fuel buses.
    Reno Bus Rapid Transit High-Capacity Articulated Buses.--
Amounts made available in fiscal year 2002 for the Reno bus 
rapid transit high-capacity articulated buses shall be 
available for the Reno/Sparks intermodal transportation 
terminals and related joint development.
    Santa Barbara Metropolitan Transit District Electric Bus 
Investment.--Amounts made available in fiscal year 2004 for the 
Santa Barbara Metropolitan Transit District electric bus 
investment in California shall be made available to the Ventura 
County Transportation Commission to fulfill the intent of this 
project.
    South Bend Intermodal Facility.--Amounts previously 
obligated in fiscal year 1996 and fiscal year 1997 shall be 
made available for the South Street Station project in South 
Bend, Indiana.
    Greater New Haven Transit District CNG Vehicle Project.--
Amounts made available in fiscal year 2002 for CNG vehicles for 
the Greater New Haven Transit District shall be available for 
alternative fuel vehicles for the GNHTD.
    Jackson, Wyoming.--Funds designated for the Southern Teton 
Area Rapid Transit bus facility in fiscal year 2002, shall 
instead be made available to the Town of Jackson, Wyoming, for 
the replacement, rehabilitation, and purchase of buses and 
related equipment and the construction of bus-related 
facilities.

                      fixed guideway modernization

    The Committee recommends a total of $1,214,400,000 for the 
modernization of existing rail transit systems. The Committee 
action continues the practice under TEA21, as extended, to 
distribute the funds by formula. The following table itemizes 
the fiscal year 2005 rail modernization allocations by State:

FEDERAL TRANSIT ADMINISTRATION SECTION 5309 FIXED GUIDEWAY MODERNIZATION
                             APPORTIONMENTS
------------------------------------------------------------------------
                          State                               Amount
------------------------------------------------------------------------
Alaska..................................................      $2,115,870
Arizona.................................................       2,361,176
California..............................................     147,724,101
    Los Angeles-Long Beach-Santa Ana, CA................      34,583,358
    San Francisco-Oakland, CA...........................      66,777,607
    San Diego, CA.......................................      13,574,750
    San Jose, CA........................................      13,306,474
    Riverside-San Bernardino, CA........................       3,636,184
    Sacramento, CA......................................       3,196,161
    Concord, CA.........................................       7,778,640
    Mission Viejo, CA...................................       1,291,472
    Oxnard, CA..........................................       1,093,925
    Lancaster-Palmdale, CA..............................       1,885,035
    Thousand Oaks, CA...................................         600,495
Colorado................................................       3,126,150
Connecticut.............................................      40,942,085
    Southwestern Connecticut............................      39,334,715
    Hartford, CT........................................       1,607,370
District of Columbia....................................      50,261,990
Florida.................................................      18,197,629
    Miami, FL...........................................      17,967,020
    Tampa-St. Petersburg, FL............................         121,469
    Jacksonville, FL....................................         109,140
Georgia.................................................      27,429,753
Hawaii..................................................       1,150,273
Illinois................................................     134,603,901
    Chicago, IL-IN......................................     132,435,068
    Round Lake Beach-McHenry-Grayslake, IL-WI...........       2,168,833
Indiana.................................................       8,713,586
    Chicago, IL-IN......................................       7,983,380
    South Bend, IN-MI...................................         730,206
Louisiana...............................................       2,855,997
Maryland................................................      28,254,850
    Baltimore Commuter Rail.............................      18,840,867
    Baltimore, MD.......................................       9,413,983
Massachusetts...........................................      74,715,321
    Boston, MA-NH-RI....................................      71,063,849
    Providence, RI-MA...................................       2,696,848
    Worcester, MA-CT....................................         954,624
Michigan................................................         608,258
Minnesota...............................................       6,144,908
Missouri................................................       4,328,750
    St. Louis, MO-IL....................................       4,297,789
    Kansas City, MO-KS..................................          30,961
New Jersey..............................................     103,893,255
    Northeastern New Jersey.............................      86,354,458
    Philadelphia, PA-NJ-DE-MD...........................      14,566,124
    Trenton, NJ.........................................       1,406,716
    Atlantic City, NJ...................................       1,565,957
New York................................................     368,538,253
    New York............................................     367,213,399
    Buffalo, NY.........................................       1,324,857
Ohio....................................................      17,826,760
    Cleveland, OH.......................................      12,822,271
    Dayton, OH..........................................       5,004,489
Oregon..................................................       4,293,510
Pennsylvania............................................     101,222,045
    Philadelphia, PA-NJ-DE-MD...........................      79,975,985
    Pittsburgh, PA......................................      20,496,349
    Harrisburg, PA......................................         749,711
Puerto Rico.............................................       2,310,745
Rhode Island............................................          82,724
Tennessee...............................................         294,402
    Memphis, TN-MS-AR...................................         208,532
    Chattanooga, TN-GA..................................          85,870
Texas...................................................      10,253,005
    Dallas-Fort Worth-Arlington, TX.....................       3,240,837
    Houston, TX.........................................       7,012,168
Virginia................................................      16,559,531
    Washington, DC-VA-MD................................      15,294,768
    Virginia Beach, VA..................................       1,264,763
Washington..............................................      22,684,306
Wisconsin...............................................         762,866
                                                         ---------------
      Total Apportioned.................................   1,202,256,000
                                                         ---------------
      Oversight (1 percent).............................      12,144,000
                                                         ---------------
      Grand Total.......................................   1,214,400,000
------------------------------------------------------------------------

                               NEW STARTS

    The bill provides $1,474,425,000 for the new starts 
program. These funds are available for major investment 
studies, preliminary engineering, right-of-way acquisition, 
project management, oversight, and construction for new systems 
and extensions. Under section 3009(g) of TEA21, there is an 8-
percent statutory cap on the amount made available for 
activities other than final design and construction--that is, 
alternatives analysis, environmental impact statements, 
preliminary engineering, major investment studies, and other 
predesign and preconstruction activities.
    FTA Restrictions on Funding for Non-FFGA Projects.--The 
Committee is troubled by the actions taken last year by FTA to 
withhold the release of appropriated funds for new start 
projects that have received more than $25,000,000 in Federal 
funding prior to receiving a full funding grant agreement. This 
significant shift in policy is based on a reinterpretation of 
the requirements of Sections 5309(e)(6), (7), and (8) of title 
49 U.S.C. The Committee continues to question the timing of a 
significant policy change The Committee also questions the 
conclusions considering that subsection (8) was designed more 
as a relief from Federal regulatory scrutiny than as a cap on 
pre-project planning.
    The accompanying bill continues a general provision that 
rejects the FTA interpretation that once a project exceeds 
$25,000,000 it is subject to FTA review and evaluation and 
therefore FTA must approve it for advancement. Further, there 
is no limit of $25,000,000 on alternatives analysis, 
preliminary engineering, or final design, and a project seeking 
more than that amount for such activities does not need an 
early systems work agreement, as FTA has interpreted to be 
required under subsection (g)(1). The Committee is aware that 
numerous projects seeking a FFGA have significant unobligated 
balances because FTA has delayed awarding these grants without 
articulating any rationale. The Committee therefore directs FTA 
to expeditiously release previously appropriated funds for all 
new start projects identified in this and prior appropriations 
acts that remain unobligated and have not been reallocated by 
the Congress, upon the request of the grantee and the 
satisfaction of statutory requirements.
    Limited Extensions of Discretionary Funds.--There have been 
occasions when the Committee has extended the availability of 
capital investment funds. These extensions are granted on a 
case by case basis and, in nearly all instances, are due to 
circumstances that were unforeseen by the project's sponsor. 
The availability of these particular funds is intended for one 
additional year, absent further congressional direction. The 
Committee directs the FTA not to reallocate funds provided in 
fiscal year 2002 or previous Acts for the following new starts 
projects:
    Philadelphia, Pennsylvania-Schuylkill Valley Metro Project;
    Johnson County, Kansas-Kansas City, Missouri I-35 Commuter 
Rail Project;
    Kensoha-Racine-Milwaukee Rail Extension Project;
    Sioux City, Iowa Light Rail Project;
    Honolulu, Hawaii Bus Rapid Transit Project;
    Puget Sound, Washington RTA Sounder Commuter Rail Project;
    Greater Albuquerque Mass Rail Transit Project;
    Roaring Fork Valley Project;
    Birmingham, Al, Transit Corridor;
    Northeast Indianapolis, Indiana Downtown Corridor Project; 
and
    Dulles Corridor Project.

                    MAJOR CAPITAL INVESTMENT GRANTS

------------------------------------------------------------------------
                                          General fund      Trust fund
------------------------------------------------------------------------
Appropriations, 2004.................  .................  ..............
Budget estimate, 2005................     $1,234,192,000    $329,000,000
Committee recommendation.............  .................  ..............
------------------------------------------------------------------------

    The account funds planning, engineering, and construction 
of new fixed guideway systems and extensions to existing 
systems. Funds are also available for metropolitan and 
statewide planning activities.
    The Committee does not recommend funding for major capital 
investment grants and instead has provided funding for the new 
starts program and planning activities consistent with current 
law in the absence of completion of the surface transportation 
reauthorization bill. The Committee notes that the Safe, 
Accountable, Flexible, and Efficient Transportation Equity Act 
of 2003, as passed by the Senate, does not follow the 
programmatic or budgetary account changes envisioned by the 
fiscal year 2005 budget request.

                 JOB ACCESS AND REVERSE COMMUTE GRANTS

------------------------------------------------------------------------
                                           General fund     Trust fund
------------------------------------------------------------------------
Appropriations, 2004 \1\................      $4,971,000     $99,410,000
Budget estimate, 2005...................  ..............  ..............
Committee recommendation................      21,112,000     103,888,000
------------------------------------------------------------------------
\1\ Reflects total reduction of $737,000 pursuant to Division H, section
  168 of Public Law 108-199 and reflects transfer of $19,882,000 to
  Capital investment grants.

    The program makes competitive grants to qualifying 
metropolitan planning organizations, local governmental 
authorities, agencies, and nonprofit organizations. Grants may 
not be used for planning or coordination activities.
    The budget requests funding for job access grants within 
the formula grants and research account.
    The Committee recommends $125,000,000 for the Job Access 
and Reverse Commute Grants program. Of the total recommended 
amount of funding, $21,112,000 is appropriated from the general 
fund and $103,888,000 is a limitation on obligations from the 
mass transit account of the highway trust fund.

           GENERAL PROVISIONS--FEDERAL TRANSIT ADMINISTRATION

    Section 160 exempts limitations previously made available 
on obligations for programs of the FTA under 49 U.S.C. 5338.
    Section 161 allows funds under this Act, Federal Transit 
Administration, Capital investment grants not obligated by 
September 30, 2007 to be made available for other projects 
under 40 U.S.C. 5309.
    Section 162 allows funds appropriated before October 1, 
2004, that remain available for expenditure may be transferred.
    Section 163 allows funds made available for Alaska or 
Hawaii ferry boats or ferry terminal facilities to be used to 
construct new vessels and facilities, or to improve existing 
vessels and facilities.
    Section 164 allows unobligated funds for new projects under 
Federal Transit Authority to be used during this fiscal year to 
satisfy expenses incurred for such projects.
    Section 165 expands authorization allowing cooperative 
procurement of major capital equipment to five pilot projects.
    Section 166 allows amounts previously made available the 
Port Authority of Allegheny County for the Airport Busway/
Wabash HOV Facility project that remain unexpended to be used 
to purchase buses and bus-related equipment in accordance with 
49 U.S.C. 5309.
    Section 167 relates to the Greater New Haven Transit 
District and transfers bus project funding to the transit 
research account.
    Section 168 allows amounts previously made available to 
Matanuska Susitna Borough for a ferry boat and ferry facilities 
project to be used for the Port MacKenzie Intermodal Facility 
project.
    Section 169 allows Honolulu bus funds to be made available 
for transit and highway projects.
    Section 170 relates to funding for passenger ferry boats 
for the State of Hawaii.
    Section 171 directs the FTA to comply with the coordinated 
development and governmental funding requirements of Section 
3042 of the Federal Transit Act of 1988.
    Section 172 extends the calculation of local contributions 
toward the San Francisco Muni 3rd Street project.
    Section 173 relates to Vermont Commuter Rail project and 
transfers funding to upgrade an existing rail project.

             Saint Lawrence Seaway Development Corporation

    The Saint Lawrence Seaway Development Corporation [SLSDC] 
is a wholly owned Government corporation established by the 
Saint Lawrence Seaway Act of May 13, 1954. The SLSDC is a vital 
transportation corridor for the international movement of bulk 
commodities such as steel, iron, grain, and coal, serving the 
North American region that makes up one-quarter of the United 
States population and nearly half of the Canadian population. 
The SLSDC is responsible for the operation, maintenance, and 
development of the United States portion of the Saint Lawrence 
Seaway between Montreal and Lake Erie. The SLSDC's major 
priorities include: safety, reliability, trade development, and 
management accountability.

                       OPERATIONS AND MAINTENANCE

                    (HARBOR MAINTENANCE TRUST FUND)

Appropriations, 2004 \1\................................     $14,315,000
Budget estimate, 2005...................................      15,900,000
Committee recommendation................................      15,900,000

\1\ Reflects reduction of $85,000 pursuant to Division H, section 168 of 
Public Law 108-199. Does not reflect reduction of $42,006 pursuant to 
Division F, section 517 of Public Law 108-199.

    Appropriations from the Harbor Maintenance Trust Fund and 
revenues from non-federal sources finance the operation and 
maintenance of the Seaway for which the SLSDC is responsible.
    The Committee recommendation includes $15,900,000 to fund 
the operations and maintenance of the SLSDC. This amount is the 
same as the President's request and is $1,585,000 above the 
fiscal year 2004 enacted level. The Committee recommendation 
provides sufficient funding for the SLSDC's highest capital 
priorities. This amount will allow the start of a 4-year, 
concrete replacement project that is critical to the future 
operation of the two U.S. locks. The Committee recommendation 
provides sufficient resources for the SLSDC to continue to 
implement additional security measures for the Saint Lawrence 
Seaway.

                        Maritime Administration

    The Maritime Administration [MARAD] is responsible for 
programs authorized by the Merchant Marine Act, 1936, as 
amended. MARAD is also responsible for programs that strengthen 
the U.S. maritime industry in support of the Nation's security 
and economic needs. MARAD prioritizes DOD's use of ports and 
intermodal facilities during DOD mobilizations to guarantee the 
smooth flow of military cargo through commercial ports. MARAD 
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 capacity. MARAD also continues to address 
the disposal of over 123 obsolete ships in the National Defense 
Reserve Fleet which are deemed a potential environmental risk. 
Further, MARAD administers education and training programs 
through the U.S. Merchant Marine Academy and six State maritime 
schools help provide skilled merchant marine officers who are 
capable of serving defense and commercial transportation needs.
    The Committee continues to fund MARAD in its support of the 
United States as a maritime nation, and to help MARAD meet its 
management challenge to dispose of obsolete merchant-type 
vessels in the National Defense Reserve Fleet by the end of 
2006.

                       MARITIME SECURITY PROGRAM

Appropriations, 2004 \1\................................     $98,118,000
Budget estimate, 2005...................................      98,700,000
Committee recommendation................................      98,700,000

\1\ Reflects reduction of $582,000 pursuant to Division H, section 168 
of Public Law 108-199.

    The Maritime Security Program provides resources to 
maintain a U.S. flag merchant fleet crewed by U.S. citizens to 
serve both the commercial and national security needs of the 
United States. The program 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 recommends $98,700,000 for the Maritime 
Security Program, consistent with the budget request.

                        OPERATIONS AND TRAINING

Appropriations, 2004 \1\................................    $106,366,000
Budget estimate, 2005...................................     109,300,000
Committee recommendation................................     110,910,000

\1\ Reflects reduction of $631,000 pursuant to Division H, section 168 
of Public Law 108-199. Does not reflect reduction of $691,876 pursuant 
to Division F, section 517 of Public Law 108-199.

    The Operations and Training appropriation primarily funds 
the salaries and expenses for MARAD headquarters and regional 
staff in the administration and direction for all MARAD 
programs. The account includes funding for the U.S. Merchant 
Marine Academy, six State maritime schools, port and intermodal 
development, cargo preference, international trade relations, 
deep-water port licensing, and administrative support costs.
    The Committee recommends $110,910,000 for Operations and 
Training for fiscal year 2005. The recommendation is $1,610,000 
above the President's budget request and $4,544,000 above the 
fiscal year 2004 enacted level. The Committee has included 
$13,138,000 for the U.S. Merchant Marine Academy to continue 
with the major design and construction projects as identified 
in the 10-year capital improvement plan.
    Funds appropriated for Operations and Training is 
sufficient to maintain the operating costs incurred by 
headquarters and region staffs in administering and directing 
the Maritime Administration programs. The Committee 
recommendation provides sufficient resources to cover the total 
cost of officer training at the U.S. Merchant Marine Academy; 
provide Federal financial support to the six State maritime 
academies; support coordination efforts for U.S. maritime 
industry activities under emergency conditions; to promote port 
and intermodal development activities; support MARAD 
responsibilities under the American Fisheries Act; and 
facilitate Federal technology assessment projects designed to 
achieve advancements in ship design, construction and 
operations.
    Funds provided for this account are to be distributed as 
follows:

                        [In thousands of dollars]
------------------------------------------------------------------------
                                      Fiscal Year 2005      Committee
              Activity                     Request       Recommendation
------------------------------------------------------------------------
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, and                     6,327             6,327
     operating 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:
    Salaries and benefits...........            26,112            26,112
    Non-salary base budget..........            10,448            10,448
    GSA Space increase..............                94                94
    Infrastructure Enhancements.....               150               150
    DOT Working Capital Fund (IT                 5,926             5,926
     Consolidation).................
    Information Management System...  ................             1,000
    Set-aside for DOT E-Gov costs...               166               166
    Security Training Center........  ................               610
                                     -----------------------------------
      Subtotal, MARAD Operations....            42,896            44,506
                                     ===================================
      Total, Operations and Training           109,300           110,910
------------------------------------------------------------------------

    Maritime Information Management System.--The DOT estimated 
that the volume of domestic and international maritime trade 
will more than double over the next 20 years. This increase in 
traffic volume will contribute to unmanaged congestion on the 
inter-coastal waterways and poses a potential security risk. To 
better understand and prepare to address this very critical 
issue, the Committee directs the Maritime Administration to 
prepare a conditions and performance report and needs 
assessment on the inland waterway system. Furthermore, the 
Maritime Administration is directed to initiate the development 
of an integrated marine transportation system information 
management system. The Committee has provided $1,000,000 to 
immediately begin this effort.
    Maritime Security Professional Training Center.--In support 
of Section 109 of the Maritime Transportation Security Act, the 
Committee has included $610,000 as a one-time appropriation for 
the relocation and reconfiguration of the CAPE CHALMERS from 
the National Defense Reserve Fleet to the Federal Law 
Enforcement Training Center in Charleston, South Carolina to 
establish a maritime security professional training center. The 
Committee is encouraged that MARAD is working with the 
Department of Homeland Security to expand their maritime 
security professional training curriculum to include any 
Federal, State, local, and private law enforcement or security 
personnel.

                             SHIP DISPOSAL

Appropriations, 2004 \1\................................     $16,115,000
Budget estimate, 2005...................................      21,616,000
Committee recommendation................................      21,616,000

\1\ Reflects reduction of $96,000 pursuant to Division H, section 168 of 
Public Law 108-199.

    The Ship Disposal account provides resources to dispose of 
obsolete merchant-type vessels of 150,000 gross tons or more in 
the National Defense Reserve Fleet [NDRF] which the Maritime 
Administration is required by law to dispose of by the end of 
2006. Currently there is a backlog of more than 130 ships 
awaiting disposal. These vessels, many of which are 50 years in 
age, pose a significant environmental threat due to the 
presence of hazardous substances such as asbestos and solid and 
liquid polychlorinated biphenyls [PCBs].
    The Committee recommends an appropriation of $21,616,000 
for ship disposal. This amount is the same as the budget 
request and $5,501,000 above the fiscal year 2004 enacted 
level.

                    MARITIME GUARANTEED LOAN PROGRAM

Appropriations, 2004 \1\................................      $4,471,000
Budget estimate, 2005...................................       4,764,000
Committee recommendation................................       4,764,000

\1\ Reflects reduction of $27,000 pursuant to Division H, section 168 of 
Public Law 108-199.

    The Maritime Guaranteed Loan Program, commonly referred to 
as, ``Title XI,'' provides for a Federal Government guarantee 
of private-sector debt for ship construction and shipyard 
modernization. This program fosters and sustains a U.S. 
shipbuilding and repair industry which helps ensure that the 
United States remains a maritime nation.
    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 the 
administrative expenses of this program. The subsidy amounts 
are estimated on a present value basis and administrative 
expenses are estimated on a cash basis.
    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.
    The Committee recommends an appropriation of $4,764,000 for 
the Title XI, Maritime Guaranteed Loan Program. This amount is 
the same as the administration's 2005 budget request and 
$293,000 above the fiscal year 2004 enacted level.

           NATIONAL DEFENSE TANK VESSEL CONSTRUCTION PROGRAM

Appropriations, 2004....................................................
Budget estimate, 2005...................................................
Committee recommendation................................    $150,000,000

    The fiscal year 2004 Defense Authorization Act (Public Law 
108-136) authorized the National Defense Tank Vessel 
Construction Program to provide financial assistance for the 
construction of five privately owned product tank vessels to be 
available for national defense purposes in time of war or 
national emergency.
    The Committee recommends an appropriation of $150,000,000 
for the National Defense Tank Vessel Construction Program. The 
budget estimate proposed no funding for this program.
    The Committee supports the goal of this program to 
revitalize commercial tank ship construction in the United 
States. The program provides the last dollar in for U.S.-flag, 
U.S.-crewed, and U.S.-built double-hulled, commercially-viable, 
and militarily-useful product tankers. Vessels constructed 
under this program will operate as part of the Maritime 
Security Fleet.
    In addition, this program addresses a critical deficiency, 
as identified by the Department of Defense, for U.S.-flag 
tankers capable of carrying multiple petroleum cargoes. The 
Committee notes that the U.S. military was forced to rely on 
foreign-flag, foreign-crewed tankers during recent military 
operations in Afghanistan because of the shortage of U.S. flag 
tankers. In at least one instance, an Iraqi-crewed support ship 
provided support to the U.S. military operations in 
Afghanistan.
    Tankers constructed under this program will operate only in 
the international shipping trades but the experience and skills 
acquired through the program will also facilitate construction 
in the United States of new vessels for the domestic or Jones 
Act shipping trades.

                           SHIP CONSTRUCTION

                              (RESCISSION)

    The Committee rescinds $1,900,000 of unobligated balances 
from the Ship Construction Account which is currently inactive.

              GENERAL PROVISIONS--MARITIME ADMINISTRATION

    Section 180 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. Rental payments received pursuant to this 
provision shall be credited to the Treasury as miscellaneous 
receipts.
    Section 181 prohibits obligations incurred during the 
current year from construction funds in excess of the 
appropriations and limitations contained in this Act or in any 
prior appropriation Act.

              Research and Special Programs Administration

    The Research and Special Programs Administration [RSPA] was 
established by the Secretary of Transportation's organizational 
changes dated July 20, 1977, and serves as a research, 
analytic, and technical development arm of the Department for 
multimodal research and development, as well as special 
programs. Particular emphasis is given to pipeline 
transportation and the transportation of hazardous cargo by all 
modes. RSPA's two reimbursable programs--Transportation Safety 
Institute and the Volpe National Transportation Systems 
Center--support research safety and security programs for all 
modes of transportation.

                     RESEARCH AND SPECIAL PROGRAMS

Appropriations, 2004 \1\................................     $46,167,000
Budget estimate, 2005...................................      52,936,000
Committee recommendation................................      49,000,000

\1\ Reflects reduction of $274,000 pursuant to Division H, section 168 
of Public Law 108-199. Does not reflect reduction of $438,000 pursuant 
to Division F, section 517 of Public Law 108-199.

    The Research and Special Programs Account provides funding 
for the Office of Hazardous Materials Safety, the Office of 
Emergency Transportation, the Office of Research and 
Technology, and RSPA's Program and Administrative Support 
function.
    The Committee provides a total of $49,000,000 for the 
Research and Special Programs account, of which, consistent 
with the budget request, $645,000 shall be derived from the 
Pipeline Safety Fund. This amount is $3,936,000 less than the 
budget request and $2,833,000 more than the fiscal year 2004 
enacted level. Within this amount the Committee provides the 
following level of funding and FTEs:

----------------------------------------------------------------------------------------------------------------
                                                                         Fiscal year--
                                                              ----------------------------------    Committee
                                                                 2004 enacted    2005 estimate    recommendation
----------------------------------------------------------------------------------------------------------------
Hazardous materials safety...................................      $23,535,000      $25,486,000      $24,496,000
    (FTE)....................................................            140.5            149.5              148
Emergency transportation.....................................       $2,705,000       $4,323,000       $3,800,000
    (FTE)....................................................             13.5             22.0               18
Research and technology......................................       $2,492,000       $2,597,000       $2,383,000
    (FTE)....................................................              8.5              9.5                9
Program and administrative support...........................      $17,435,000      $20,530,000      $18,321,000
    (FTE)....................................................             56.5             63.0             59.0
                                                              --------------------------------------------------
      Total, research and special programs \1\...............      $46,167,000      $52,936,000      $49,000,000
----------------------------------------------------------------------------------------------------------------
\1\ Reflects reduction of $274,000 pursuant to Division H, section 168 of Public Law 108-199. Does not reflect
  reduction of $438,000 pursuant to Division F, section 517 of Public Law 108-199.

                       HAZARDOUS MATERIALS SAFETY

    The Office of Hazardous Materials Safety [OHMS] administers 
a nationwide program of safety regulations to fulfill the 
Secretary's duty to protect the Nation from the risks to life, 
health, and property that are inherent in the transportation of 
hazardous materials by water, air, highway, and railroad. OHMS 
plans, implements, and manages the hazardous materials 
transportation program consisting of information systems, 
research and analysis, inspection and enforcement, rulemaking 
support, training and information dissemination, and emergency 
procedures.
    The Committee provides $24,496,000 for hazardous materials 
safety, of which $1,732,000 will remain available until 
September 30, 2007. Within this amount the Committee provides 
the following funding levels:

------------------------------------------------------------------------
                                                              Amount
------------------------------------------------------------------------
Personnel Compensation & Benefits [PC&B]................     $15,500,000
Administrative Expenses.................................       1,350,000
Hazmat Information System [HMIS]........................       1,800,000
Contract Research and Analysis..........................         600,000
Inspection and Enforcement..............................         220,000
Rulemaking Support......................................         450,000
Training and Outreach...................................       1,300,000
Emergency Preparedness..................................         375,000
Hazmat Registration Program.............................       1,200,000
Information Systems.....................................         500,000
Research and Analysis...................................         651,000
Regulation Compliance...................................         550,000
------------------------------------------------------------------------

    The Committee has provided funding for eight new positions 
within OHMS: four hazardous materials regulation compliance 
personnel; and two engineers, one policy personnel and one 
enforcement personnel related to the transport of Spent Nuclear 
Fuel [SNF] and High Level Radioactive Waste [HLW]. The 
Committee has provided less than the requested amount for OHMS 
because it believes that the resources provided are sufficient 
for the tasks to be performed.

                   OFFICE OF EMERGENCY TRANSPORTATION

    The Office of Emergency Transportation [OET] provides 
support to the Secretary of Transportation for his statutory 
and administrative responsibilities in the area of 
transportation civil emergency preparedness and response. OET 
develops and coordinates the Department's policies, plans, and 
programs, in headquarters and the field to provide for 
emergency preparedness.
    OET is responsible for implementing the Department of 
Transportation's National Security Program initiatives, 
including an assessment of the transportation implications of 
the changing global threat. OET also coordinates civil 
emergency preparedness and response for transportation services 
during national and regional emergencies, across the entire 
continuum of crises, including natural catastrophes such as 
earthquakes, hurricanes and tornados, and international and 
domestic terrorism. OET develops crisis management plans to 
mitigate disasters and implements these plans nationally and 
regionally in an emergency.
    The Committee provides $3,800,000 for OET. Within this 
amount the Committee provides the following funding levels:

------------------------------------------------------------------------
               Function                     Amount            FTEs
------------------------------------------------------------------------
Crisis Management Center..............      $1,200,000               8
U.S. Disaster Response................       1,500,000               5.5
Training and Exercises................         500,000               1
Continuity of Operations..............         500,000               2.5
International Disaster Response.......         100,000               1
                                       ---------------------------------
      Total...........................       3,800,000              18
------------------------------------------------------------------------

    The Committee has provided funding for two new positions 
within OET: one Regional Emergency Transportation Coordinator 
[RETCO]; and one Continuation of Operations [COOP] personnel. 
Because the Committee believes that the current rotational 
staffing of the OET's Crisis Management Center [CMC] is 
sufficient, the Committee denies the funding requested for 
these eight new positions.

                   OFFICE OF RESEARCH AND TECHNOLOGY

    The Office of Research and Technology [ORT] is responsible 
for managing department-wide strategic transportation research, 
technology, education and training programs; performing 
strategic planning; conducting system-level assessments and 
policy research; facilitating government, university and 
industry partnerships; fostering innovative inter/multi-modal 
research, education and safety training; and disseminating 
information on departmental, national and international 
transportation research, technology and education activities.
    The Committee provides $2,383,000 for ORT, of which 
$1,152,000 will remain available until September 30, 2007. 
Within this amount the Committee provides the following funding 
levels:

------------------------------------------------------------------------
                                                              Amount
------------------------------------------------------------------------
Personnel Compensation & Benefits [PC&B]................      $1,131,000
Administrative Expenses.................................         100,000
Hazardous Materials Research and Development............          85,000
Hydrogen Fuels R&D......................................         500,000
Research and Development Planning and Management........         567,000
------------------------------------------------------------------------

    The Committee denies the funding requested for an 
additional hydrogen fuel engineer, as well as the requested 
increase in funding for hydrogen fuel research. In light of the 
extensive level of resources already devoted to hydrogen fuel 
research by the Department of Energy, the Committee believes 
that the as-yet-unfilled hydrogen fuel engineer position 
authorized in fiscal year 2004 and the $500,000 already 
budgeted for hydrogen fuel research provides a sufficient 
commitment of DOT resources for this initiative in fiscal year 
2005.

                   PROGRAM AND ADMINISTRATIVE SUPPORT

    RSPA's program support function provides legal, financial, 
management and administrative support to the operating offices 
within RSPA. These support activities include executive 
direction, program and policy support, civil rights and special 
programs, legal services and support, and management and 
administration.
    The Committee provides $18,321,000 for program and 
administrative support. Within this amount the Committee 
provides the following funding levels:

------------------------------------------------------------------------
                                                              Amount
------------------------------------------------------------------------
Personnel Compensation and Benefits.....................      $7,350,000
GSA Rent................................................       2,925,000
Working Capital Fund....................................       2,490,000
Admin costs for all new RSP employees...................         200,000
Communications, Utilities, Misc.........................         700,000
Accounting..............................................         120,000
Training................................................         100,000
Travel..................................................          50,000
Equipment...............................................          50,000
Printing................................................          20,000
Training................................................          20,000
Supplies................................................          20,000
Budget and Financial Management.........................         200,000
Civil Rights: Drug Program..............................           5,000
Civil Rights: Intern Program............................          51,000
Human Resources Support Systems.........................          20,000
Information Resources Management........................       1,000,000
Information Technology Infrastructure...................       3,000,000
------------------------------------------------------------------------

    The Committee provides the funding requested for three 
additional information technology [IT] positions as well as the 
funding requested for additional IT contractual support. The 
Committee notes RSPA's assurance that these additional 
resources will be sufficient to fulfill its IT needs for the 
foreseeable future and accordingly looks forward to receiving 
subsequent budget requests that reflect this assurance.
    The Committee believes that the funding provided, which 
reflects an $886,000 increase over the fiscal year 2004 enacted 
level, is sufficient to allow RSPA to carry out its 
administrative functions. Accordingly, the Committee denies the 
funding requested for eight new administrative personnel.

                            PIPELINE SAFETY

                         (PIPELINE SAFETY FUND)

                    (OIL SPILL LIABILITY TRUST FUND)

----------------------------------------------------------------------------------------------------------------
                                                                     Pipeline
                                                                    safety fund     Trust fund         Total
----------------------------------------------------------------------------------------------------------------
Appropriations, 2004 \1\........................................     $52,991,000     $12,923,000     $65,914,000
Budget estimate, 2005...........................................      51,073,000      19,000,000      70,073,000
Committee recommendation........................................      52,073,000      19,000,000      71,073,000
----------------------------------------------------------------------------------------------------------------
\1\ Reflects reduction of $391,000 pursuant to Division H, section 168 of Public Law 108-199. Does not reflect
  reduction of $314,000 pursuant to Division F, section 517 of Public Law 108-199.

    The Research and Special Programs Administration is 
responsible for overseeing the Department of Transportation's 
pipeline safety program. In doing so, RSPA supervises the 
safety, security, and environmental protection of gas and 
hazardous liquids pipeline systems, as well as liquefied 
natural gas facilities, through analysis of data, damage 
prevention, education and training, enforcement of regulations 
and standards, research and development, grants for State 
pipeline safety programs, and emergency planning and response 
to accidents. Also included is research and development to 
support the pipeline safety program and grants-in-aid to State 
agencies that conduct a qualified pipeline safety program and 
to others who operate one-call programs.
    Funding for the Office of Pipeline Safety [OPS] is made 
available from two primary sources: the Pipeline Safety Fund, 
comprised of user fees assessed on interstate pipeline 
operators; and the Oil Spill Liability Trust Fund, a revolving 
fund comprised of an environmental tax on petroleum and oil 
spill damage recovery payments. The pipeline safety program 
promotes the safe, reliable, and environmentally sound 
transportation of natural gas and hazardous liquids by 
pipeline.
    The Committee provides $71,073,000 for the Office of 
Pipeline Safety. The bill specifies that, of the total 
appropriation, $52,073,000 shall be from the Pipeline Safety 
Fund and $19,000,000 shall be from the Oil Spill Liability 
Trust Fund.

------------------------------------------------------------------------
                                                              Amount
------------------------------------------------------------------------
Personnel Compensation and Benefits [PC&B]..............     $17,677,000
    Travel..............................................       2,265,000
    WCF.................................................         847,000
    GSA Rent............................................       1,460,000
    Communications......................................         973,000
    Equipment...........................................         539,000
    Training............................................         953,000
    Accounting..........................................          88,000
    Printing............................................          75,000
    Other Services......................................           5,000
    Supplies............................................          52,000
    Information and Analysis............................       1,635,000
    Pipeline Integrity Management.......................       7,862,000
    Compliance..........................................         300,000
    Training and Information Dissemination..............       1,400,000
    Emergency Notification..............................         100,000
    Community Assistance and Technical Services.........       3,096,000
Implementing the Oil Pollution Act......................       2,416,000
Mapping and Information Systems.........................       1,200,000
Enhanced Operations, Control and Monitoring.............       1,874,000
Damage Prevention, and Leak Detection...................       3,913,000
Improved Material Performance...........................       2,071,000
State Pipeline Safety Grants............................      18,272,000
State One-Call Grants...................................       1,000,000
Public Safety and Education Programs....................       1,000,000
------------------------------------------------------------------------

    The Committee's recommendation provides funding to support: 
two new system-focused inspectors based in Houston, Texas; two 
new natural gas transmission integrity management inspectors; 
and two new State program managers.
    Pipeline Safety Research.--Consistent with the budget 
request, the Committee provides $9,058,000 for pipeline safety 
research, which will remain available until September 30, 2007.
    State One-Call Grants.--The Committee continues to believe 
that State One-Call Grants have a proven track record in 
effective damage prevention and thus has again provided 
$1,000,000 for this purpose.
    Natural Gas Distribution Pipeline Safety.--The Committee 
notes that OIG recently reported to Congress that operators of 
natural gas distribution pipelines, which constitute over 85 
percent of the 2.1 million miles of natural gas pipelines, are 
not required to have Integrity Management Plans [IMP]. Over the 
last 10 years, natural gas distribution pipelines have 
experienced over 4 times the number of fatalities and more than 
3 times the number of injuries than the combined totals for 
hazardous liquid and natural gas transmission pipelines, which 
are covered by IMP requirements.
    The Committee understands that ``smart pig'' technologies 
are not currently available for natural gas distribution 
pipelines, but concurs with OIG that certain IMP elements can 
be readily applied to this segment of the industry, such as 
developing timeframes on how often inspections should take 
place and when repairs should be made. The Committee encourages 
this approach and directs the Administrator to report to 
Congress no later than 180 days following the enactment of this 
Act, on its approach for requiring operators of natural gas 
distribution pipelines to have IMPs. The report should detail 
specific milestones and activities, including the completion of 
a notice of proposed rulemaking.
    Oil Spill Liability Trust Fund Allocation.--The Committee 
notes the significant increase in funding derived from the Oil 
Spill Liability Trust Fund since fiscal year 2003. The Oil 
Pollution Act of 1990 requires that these trust funds be used 
only for oil spill prevention and response activities. As in 
fiscal year 2004, the requested increase has been provided. 
However, the Committee again directs the Office of Pipeline 
Safety to factor the Oil Spill Liability Trust Fund into the 
allocation formula that determines the hazardous liquid 
pipeline user fee assessment in order to accurately reflect the 
actual oversight activities conducted by the Office of Pipeline 
Safety.
    Public Safety and Education Programs.--The Pipeline Safety 
Improvement Act of 2002 requires pipeline operators to 
undertake public safety and education program activities to 
educate and promote pipeline safety with the public. The law 
further requires a review of the quality of these public safety 
and education programs, which will number more than 2,200. The 
Committee includes $1,000,000 for initial efforts to create a 
clearinghouse so that Federal and State experts can review and 
evaluate these public education programs.
    Proposed Reorganization.--The Committee supports the DOT's 
effort to better organize and increase the efficiency and 
effectiveness of its Research activities. However, the 
Committee is very concerned the Department's pending 
reorganization plan may have the unintended consequence of 
reducing the Department's mission to ensure the safe and 
reliable operation of the Nation's pipeline system. The 
Committee believes the pending reorganization plan that calls 
for regulation of the safety of pipelines to become the 
responsibility of the Federal Railroad Administration, will 
greatly diminish the Department's effectiveness and ability to 
adequately carry out its pipeline safety function.

                     EMERGENCY PREPAREDNESS GRANTS

                     (EMERGENCY PREPAREDNESS FUND)

Appropriations, 2004 \1\................................        $199,000
Budget estimate, 2005...................................         200,000
Committee recommendation................................         200,000

\1\ Reflects reduction of $1,000 pursuant to Division H, section 168 of 
Public Law 108-199.

    The Hazardous Materials Transportation Act [HMTA] (title 49 
U.S.C. 5101 et seq.) requires RSPA to: (1) develop and 
implement a reimbursable emergency preparedness grants program; 
(2) monitor public sector emergency response training and 
planning and provide technical assistance to States, 
territories, and Indian tribes; and (3) develop and update 
periodically a national training curriculum for emergency 
responders. These activities are financed by receipts received 
from the hazardous materials shipper and carrier registration 
fees, which are placed in the emergency preparedness fund. The 
hazardous materials transportation law provides permanent 
authorization for the emergency preparedness fund for planning 
and training grants, monitoring and technical assistance, and 
for administrative expenses. An appropriation of $200,000, also 
from the emergency preparedness fund, provides for the training 
curriculum for emergency responders.

                       LIMITATION ON OBLIGATIONS

    Bill language is included that limits the obligation of 
emergency preparedness training grants to $14,300,000 in fiscal 
year 2005.

                      Office of Inspector General


                         SALARIES AND EXPENSES

Appropriations, 2004 \1\................................     $55,670,000
Budget estimate, 2005 \2\...............................      59,000,000
Committee recommendation................................      59,000,000

\1\ Reflects reduction of $330,000 pursuant to Division H, section 168 
of Public Law 108-199. Does not reflect reduction of $426,582 pursuant 
to Division F, section 517 of of Public Law 108-199. Does not include 
reimbursements of $3,524,000 from FHWA, $2,250,000 from FAA, $2,000,000 
from FTA, and $100,000 from NTSB.
\2\ Does not include reimbursements of $3,524,000 from FHWA, $1,200,000 
from FAA, $2,000,000 from FTA, and $250,000 from NTSB.

    The Inspector General Act of 1978 established the Office of 
Inspector General [OIG] as an independent and objective 
organization, with a mission to: (1) conduct and supervise 
audits and investigations relating to the programs and 
operations of the Department; (2) provide leadership and 
recommend policies designed to promote economy, efficiency, and 
effectiveness in the administration of programs and operations; 
(3) prevent and detect fraud, waste, and abuse; and (4) keep 
the Secretary and Congress currently informed regarding 
problems and deficiencies.
    OIG is divided into two major functional units: the Office 
of Principal Assistant Inspector General for Auditing and 
Evaluations [PAIGAE] and the Office of Assistant Inspector 
General for Investigations [AIGI]. The PAIGAE and AIGI are 
supported by headquarters and regional staff.
    The Committee recommendation provides $59,000,000 for 
activities of the Office of Inspector General, which is 
$3,330,000 more than the fiscal year 2004 enacted level and the 
same as the budget request. In 2003, DOT awarded about 1,100 
fixed-price or cost-reimbursable contracts valued at 
approximately $3,000,000,000. Also, in fiscal year 2003, DOT 
planned to spend $2,700,000,000 on information technology with 
over half of this amount funding contractor services. With this 
increase, the OIG is expected to provide greater oversight of 
the DCAA audits requested by the Department (in fiscal year 
2003 DOT requested 221 audit reports), increase its ability to 
apply forensic auditing techniques to better detect contract 
fraud, and carry out more timely audits and investigations of 
contracting and procurement issues.
    Unfair Business Practices.--The bill maintains language 
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.

                      Surface Transportation Board


                         SALARIES AND EXPENSES

------------------------------------------------------------------------
                                                            Crediting
                                         Appropriation      offsetting
                                                           collections
------------------------------------------------------------------------
Appropriations, 2004 \1\..............      $19,406,000       $1,050,000
Budget estimate, 2005.................       20,521,000        1,050,000
Committee recommendation..............       21,250,000        1,050,000
------------------------------------------------------------------------
\1\ Reflects reduction of $115,000 pursuant to Division H, section 168
  of Public Law 108-199. Does not reflect reduction of $16,422 pursuant
  to Division F, section 517 of Public Law 108-199.

    The Surface Transportation Board [STB] was created on 
January 1, 1996, by the Interstate Commerce Commission 
Termination Act of 1995 [ICCTA] (Public Law 104-88). The Board 
is a three-member, bipartisan, decisionally independent 
adjudicatory body organizationally housed within DOT and is 
responsible for the regulation of the rail and pipeline 
industries and certain non-licensing regulation of motor 
carriers and water carriers.
    STB's rail oversight activities encompass rate 
reasonableness, car service and interchange, mergers, line 
acquisitions, line constructions, and abandonments. STB's 
jurisdiction also includes certain oversight of the intercity 
bus industry and pipeline carriers, rate regulation involving 
noncontiguous domestic water transportation, household goods 
carriers, and collectively determined motor carrier rates.
    The Committee recommends an appropriation of $21,250,000 
for activities of the Board, which is $729,000 more than the 
requested amount and $1,844,000 more than the fiscal year 2004 
enacted level. Included in the recommended amount is an 
estimated $1,050,000 in fees to be collected, which will offset 
the appropriated funding. The Board is authorized to credit the 
fees collected to the appropriated amount as offsetting 
collections reducing the general funds appropriation on a 
dollar-for-dollar basis as the fees are received and collected.
    Within this amount the Committee provides the following 
funding levels:

------------------------------------------------------------------------
                                                     Amount        FTEs
------------------------------------------------------------------------
Rail Oversight Activities......................     $20,000,000    140.8
Motor Oversight Activities.....................         880,000      6.4
Water Oversight Activities.....................         360,000      2.7
Pipeline Oversight Activities..................          10,000      0.1
------------------------------------------------------------------------

    The Committee's recommendation provides a one-time increase 
to STB's base budget solely in order to allow it to fill the 
following five new positions: one administrative law judge, one 
economist and three transportation industry analysts, one of 
which specializes in passenger rail issues. The Committee 
expects that these additional positions will allow STB to fully 
execute its mission into the foreseeable future and that 
subsequent funding requests will reflect this understanding.

            GENERAL PROVISIONS--DEPARTMENT OF TRANSPORTATION

    Section 185 allows funds for maintenance and operation of 
aircraft; motor vehicles; liability insurance; uniforms; or 
allowances, as authorized by law.
    Section 186 limits appropriations for services authorized 
by 5 U.S.C. 3109 not to exceed the rate for an Executive Level 
IV.
    Section 187 prohibits 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 to be assigned on temporary detail 
outside the Department of Transportation or an independent 
agency funded in this Act.
    Section 188 prohibits funds for the implementation of 
section 404 of title 23, U.S.C.
    Section 189 prohibits recipients of funds made available in 
this Act to release personal information, including a 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 Secretary of Transportation from 
withholding funds provided in this Act for any grantee if a 
State is in noncompliance with this provision.
    Section 190 allows 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 for expenses 
incurred for training may be credited to each agency's 
respective accounts.
    Section 191 authorizes 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 prohibits funds in this Act to make a grant 
unless the Secretary of Transportation notifies the House and 
Senate Committees on Appropriation at least 3 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 administration.
    Section 193 allows rebates, refunds, incentive payments, 
minor fees and other funds received by the Department of 
Transportation from travel management center, charge card 
programs, subleasing of building space and miscellaneous 
sources are to be credit to appropriations of the Department of 
Transportation.
    Section 194 allows that amounts from improper payments to a 
third party contractor that are lawfully recovered by the 
Department of Transportation shall be available to cover 
expenses incurred in recovery of such payments.
    Section 195 authorizes the transfer of unexpended sums from 
``Minority Business Outreach'' to ``Office of the Secretary, 
Salaries and expenses''.
    Section 196 prohibits 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.
    Section 197 limits funds for the fiscal year 2005 working 
capital fund of the Department of Transportation.
    Section 198 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 199 extends a prohibition on the implementation of 
a mandatory cost-sharing pilot program for essential air 
service communities.

                  TITLE II--DEPARTMENT OF THE TREASURY

                          Departmental Offices

                         salaries and expenses

                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2004 \1\................................    $175,070,000
Budget estimate, 2005...................................     185,041,000
Committee recommendation................................     161,313,000

\1\ Reflects reduction of $1,039,000 pursuant to Division H, section 168 
of Public Law 108-199.

    The Departmental Offices in the Department of the Treasury 
provide basic support to the Secretary of the Treasury, who is 
the chief operating executive of the Department. The Secretary 
of the Treasury has the 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 financial policy; 
representing the United States on international monetary, trade 
and investment issues; overseeing Department of the Treasury 
overseas operations; and directing the administrative 
operations of the Department of the Treasury. In support of the 
Secretary, the Salaries and Expenses appropriation provides 
resources for policy formulation and implementation in the 
areas of domestic and international finance, tax, economic, 
trade, financial operations and general fiscal policy. This 
appropriation also provides resources for administrative 
support to the Secretary and policy components, and 
coordination of Departmental administrative policies in 
financial and personnel management, procurement operations, and 
automated information systems and telecommunications.
    The Committee recommends $161,313,000 for the Salaries and 
Expenses appropriation of the Departmental Offices of the 
Department of the Treasury, $23,728,000 below the 
administration's request and $13,757,000 less than the fiscal 
year 2004 enacted level. The Committee recommendation includes 
the requested funding level for the Office of Foreign Assets 
Control, but provides funds in a new appropriations account. 
Within the funds provided the accompanying bill specifies 
$3,000,000 for information technology modernization; $150,000 
for official reception and representation expenses; $258,000 
for unforeseen emergencies; $2,900,000 for grants to States to 
fight money laundering; and $3,393,000 for the Treasury-wide 
financial statement audits.
    The Committee commends the Department of the Treasury for 
its participation through the Internal Revenue Service in the 
Washington Semester American Indian Program [WINS]. The 
Committee believes that the Washington Semester American Indian 
Program is an excellent way to advance the goals of Executive 
Order 13270, which directs all Federal agencies to take steps 
to enhance access to Federal opportunities and resources for 
American Indian and Alaska Native students. The Committee urges 
the Department to expand the number of internship slots it 
makes available for the program and to accommodate participants 
in a second-year internship program.
    Office of Terrorism and Financial Intelligence.--Although 
no funds were requested for the Office of Terrorism and 
Financial Intelligence, the Committee recommends $12,726,710 
for the office for fiscal year 2005. The Secretary has 
identified establishment of this office and reorganization of 
financial intelligence activities as one of his highest 
priorities, and adjustments made to the budget request to 
accommodate funding for this office have been made with the 
concurrence of the Department.
    The Committee has established the Office of Terrorism and 
Financial Intelligence within the Department of the Treasury. 
This office will be responsible for providing the policy and 
the strategic and operational direction to the Department of 
the Treasury on issues relating to terrorist financing and 
financial crimes; including money laundering, counterfeiting 
and other offenses threatening the integrity of the financial 
system. In addition, the office will be responsible for 
carrying out the United States economic sanctions programs; 
implementation of Titles I and II of Public Law 91-508, as 
amended (the Bank Secrecy Act); asset forfeiture; and the 
receipt, analysis, collation, and dissemination of 
intelligence, including foreign intelligence and foreign 
counterintelligence (within the meaning of section 3 of the 
National Security Act of 1947) (50 U.S.C. 401a) related to the 
operation and responsibilities of the Department of the 
Treasury.
    Emergency Preparedness.--The recommended level includes 
$1,900,000, and not more than 5 FTE, for the permanent creation 
of the Office of Emergency Preparedness. This office will allow 
Treasury to establish and maintain viable and executable plans 
which ensure continuity of the Department's critical functions 
during an emergency.
    Treasury Protection.--The Committee recommendation denies 
the budget request to reimburse the United States Secret 
Service [USSS] $2,400,000 for protection of the Secretary of 
the Treasury. The Committee is concerned about the lack of 
sufficient documentation to support this new budget request. 
The Committee believes that protective services are a core 
responsibility of the USSS which should be funded in the 
Department of Homeland Security's budget.
    Contributions to Federal Accounting Standards Advisory 
Board [FASAB] and the Joint Financial Management Improvement 
Program [JFMIP].--The Committee recommendation provides $12,000 
for Treasury activities that support FASAB and JFMIP. The 
Committee recommendation denies new funding of $639,000 to 
support the cost of the Office of Management and Budget [OMB] 
payments to FASAB and JFMIP. The Committee believes that it is 
more appropriate to provide this funding under the OMB heading.
    Financial Literacy.--Title V of the Fair and Accurate 
Transactions Act (Public Law 108-159) established the Financial 
Literacy and Education Commission [FLEC]. The Committee 
provides $1,000,000 to be used for the development and 
implementation of the national strategy to promote basic 
financial literacy and education among all American consumers 
that is required by 20 U.S.C. 9703. With these funds, the 
Commission shall develop methods to increase the general 
financial education level and understanding of current and 
future consumers of financial services and products. It is 
important that the Commission consult with State and local 
governments and private, nonprofit, and public institutions 
during the formulation and implementation of the national 
strategy and continue with the development of a plan to improve 
coordination and reduce duplication of financial literacy 
activities. The Committee directs the Secretary of the Treasury 
to submit a plan for the use of funds to the Appropriations 
Committee prior to the expenditure of any funds for FLEC within 
the Act. The Committee further directs that these funds not be 
used for travel expenses.
    Critical Infrastructure Protection.--The Office of Critical 
Infrastructure Protection and Compliance Policy coordinates the 
Department's development and implementation of policies 
regarding the protection of the critical infrastructure of the 
financial services sector. The office also staffs the Financial 
and Banking Infrastructure Committee. The Committee understands 
that the Department has developed a research and development 
plan that identifies the key infrastructure that must be 
protected in the event of a terrorist attack or natural 
disruption. Both the President's national strategy to secure 
cyberspace and the Department's own research and development 
agenda identify the need for advanced data replication 
technology and practices to protect the central functions of 
the Nation's financial systems. The Committee provides 
$1,000,000 to the Department for critical infrastructure 
protection research and development through the ``e-Cavern 
partnership''. These funds are to be utilized to begin the 
process of using a hardened storage facility that has research 
capabilities and provides a geographic location that has added 
physical security and protection.
    General Counsel.--The Committee recommendation provides 
$7,415,212 for the general counsel. This amount reflects a 
downward adjustment requested by the Department of $415,389, as 
well as an additional reduction of $100,000. The Committee is 
disappointed by the general counsel's continual and aggressive 
efforts to circumvent appropriations law and undermine the long 
standing accommodation between the Department and the 
Committee.
    Audit of Mint-BEP Merger.--The Committee directs the 
Government Accountability Office [GAO] to conduct an in-depth 
analysis of the conclusions drawn by the United States Mint-
Bureau of Engraving and Printing merger study. The GAO analysis 
should identify: (1) how the study was paid for, what accounts 
were used to fund the study, and whether or not the funds 
expended from these accounts were consistent with accepted 
guidelines; (2) what criteria were used to hire the contractor, 
and what contract specifications were used to ensure an 
objective result. The GAO shall also look at the conclusions in 
the study and all supporting materials including, ``Improving 
Service Delivery in BEP and Mint Operations'' dated June 30, 
2004, to determine if: (1) the conclusions of the study were 
consistent with the documentation and findings; (2) all cost 
savings projected in the study have accurate supporting 
documentation; and (3) whether alternatives were considered in 
the study process.
    Congressional Budget Justification Materials.--The 
Committee directs the Department to submit all of its fiscal 
year 2006 budget justifications on the first Monday in 
February, concurrent with official submission of the 
President's budget to Congress. These justifications should 
have the customary level of detailed data and explanatory 
statements to support the appropriations requests, including 
tables that detail each agency's programs, projects, and 
activities for fiscal years 2005 and 2006. The Committee 
directs the CFO to ensure that adequate justification is given 
to each increase, decrease, and staffing change proposed across 
the Department for the fiscal year 2006 budget. With respect to 
requests for Departmental Offices, particular attention should 
be paid to information within the Departmental operations and 
management accounts. The Committee expects that the Department 
will coordinate with the Appropriations Committee in advance on 
its planned presentation products for the budget justifications 
to the Congress in support of the fiscal year 2006 budget 
request. In addition, the Committee directs the Department to 
submit, as part of the fiscal year 2006 budget justification, a 
table identifying the last year that authorizing legislation 
was provided by Congress for each program, project, or 
activity; the specific authorization legislation supporting the 
bureau, organization, and program; the amount of the 
authorization; and the appropriation in the last year of the 
authorization in those instances where the authorization has 
lapsed.
    Treasury Forfeiture Fund.--The Committee remains concerned 
about the management of the Forfeiture Fund. As a result, the 
Committee directs the Department to include in its fiscal year 
2006 budget submission a detailed operating budget, including 
but not limited to, the following: salaries and expenses, 
FTE's, detailees, travel, rent, furniture, utilities, supplies, 
communications, storage costs, and postage for fiscal years 
2004, 2005 and 2006. The budget materials shall also include 
the total amount in the fund, the number of funding 
applications received and the number of funding requests 
awarded. The material shall also include all evaluation 
criteria used for granting requested expenditures from the 
fund.
    Currency Manipulation Report.--The Committee has included a 
new general provision, (Sec. 221) providing for the Secretary 
of the Treasury to submit a report by December 1, 2004, to the 
House and Senate Committees on Appropriations. The report shall 
describe how existing statutory provisions addressing currency 
manipulation by America's trading partners can be better 
clarified administratively, to provide for improved and more 
predictable evaluation of the subject and to enable the problem 
of currency manipulation to be better understood by both the 
American people and the U.S. Congress. The Secretary shall 
include in the report definitions of terms relevant to Title 22 
U.S.C. 5304 and 5305, such as ``material global current account 
surpluses'', ``significant bilateral trade surpluses'', and how 
it is or can be determined ``whether [other] countries 
manipulate the rate of exchange between their currency and the 
United States dollar''. Such definitions shall address 
currencies that are pegged to the dollar (with and without 
bands) and identify what constitutes currency manipulation, 
including what is meant by sustained intervention in the 
currency markets, the effect of currency controls, etc. The 
report shall also examine what the United States is doing to 
ensure that both the Department and the IMF's review of 
individual country trade data permit the examination of 
competing data where significant differences in global current 
account surpluses are identified (e.g., by comparing such 
current account surpluses to actual trade figures provided by 
U.S. trading partners). Further, the report shall identify 
steps the Department is taking to obtain definitions from and 
within the IMF of such terms as ``manipulating exchange 
rates'', ``protracted large-scale intervention in one direction 
in the exchange market'', and other terms relevant to 
acceptable exchange rate practices provided in the IMF's 
Decision No. 5392 (77/63), as amended, on ``Exchange 
Arrangements and Surveillance, Principles of Fund Surveillance 
over Exchange Rate Policies.'' Finally, the Secretary shall 
provide an update regarding additional steps that the United 
States can take, pursuant to 22 U.S.C. 286y, to strengthen 
article IV consultation procedures of the Fund to address 
undervalued rates of exchange that flow from currency controls 
or significant market interventions. During the period these 
issues are being clarified and pending resolution of whether 
certain major trading nations are engaged in currency 
manipulation, the Secretary of the Treasury is urged to vote 
against multilateral lending or investment guarantees to any 
nation with which the United States had a trade deficit (in 
goods) in 2003 in excess of $100,000,000,000.
    Program and Office Funding.--For fiscal year 2005, the 
Committee recommends funding for the salaries and expenses 
appropriation according to the program activities that comprise 
the Departmental Offices. These program activities include: 
Executive Direction; General Counsel; Economic Policies and 
Programs; Financial Policies and Programs; Financial Crimes; 
Treasury-Wide Management; and Administration.
    The Committee has established specific limitations for each 
individual program and policy within the Departmental Offices. 
The accompanying bill includes a provision authorizing a 
cumulative total of transfers of up to 5 percent between each 
activity (Executive Direction; General Counsel; Economic 
Policies and Programs; Financial Policies and Programs; 
Financial Crimes; Treasury-Wide Management; and Administration) 
and after 5 percent, the Department must seek prior approval 
from the House and Senate Committees on Appropriations.
    The Committee recommends this budgetary change due to its 
concern regarding the Department's application of its internal 
reprogramming guidelines counter to congressional intent 
established in the Fiscal Year 2004 Appropriation Act.
    The following table compares the fiscal year 2004 enacted 
level to the fiscal year 2005 budget estimate and the 
Committee's recommendation for each office:

----------------------------------------------------------------------------------------------------------------
                                                                    Fiscal year
                                                                   2004 enacted     2005 budget      Committee
                                                                        \1\          estimate     recommendation
----------------------------------------------------------------------------------------------------------------
Secretary/Deputy Secretary......................................        $765,005        $808,526        $808,200
Secretarial Protection..........................................  ..............       2,400,000  ..............
Secretarial Delegation..........................................       1,050,000       1,050,000       1,050,000
Chief of Staff..................................................       1,393,279       1,480,321       1,479,700
Executive Secretary.............................................         600,562         665,843         665,000
Public Affairs..................................................       1,725,620       1,841,676       1,800,716
Legislative Affairs & Public Liaison............................       1,459,292       1,553,587       1,436,090
Treasurer.......................................................         263,103         277,610         115,537
                                                                 -----------------------------------------------
      Subtotal, Executive Direction.............................       7,256,861      10,077,563       7,355,243
                                                                 ===============================================
General Counsel.................................................       7,530,660       7,929,601       7,415,212
                                                                 ===============================================
Economic Policy.................................................       4,272,449       4,469,560       4,180,117
International Affairs...........................................      26,549,390      28,716,550      27,727,336
                                                                 -----------------------------------------------
      Subtotal, Economic Policies and Programs..................      30,821,839      33,186,110      31,907,453
                                                                 ===============================================
Under Secretary for Domestic Finance............................         833,275         869,542         868,800
Financial Markets...............................................       3,044,957       3,240,801       3,144,341
Critical Infrastructure.........................................  ..............  ..............       1,000,000
Financial Literacy..............................................  ..............  ..............       1,000,000
Fiscal Policy...................................................       2,992,537       3,079,606       3,002,783
Financial Institutions..........................................       2,728,221       2,895,051       2,731,283
Tax Policy (New Activity).......................................      14,214,071      14,828,913      14,324,487
                                                                 -----------------------------------------------
      Subtotal, Financial Policies and Programs.................      23,813,061      24,913,913      26,071,694
                                                                 ===============================================
U/S for Enforcement.............................................  ..............  ..............       1,632,382
Exec Office of Terrorist Finance and Fin Crimes.................       5,186,000       5,911,816  ..............
Intelligence Support............................................       2,204,711       2,342,527  ..............
Terrorist Financing and Intelligence Support....................  ..............  ..............      10,594,328
Office of Foreign Assets Control \2\............................      21,855,000      22,291,000  ..............
                                                                 -----------------------------------------------
      Subtotal, Terrorism & Financial Intel.....................      29,245,711      30,545,343      12,226,710
                                                                 ===============================================
Assistant Secretary for Management & CFO........................         507,120         543,387         424,446
Office of Emergency Preparedness................................  ..............       1,935,267       1,900,000
DAS Human Resources.............................................       1,934,797       2,397,670       2,298,013
DAS Information Systems/Security Operations.....................       2,455,068       2,917,941       2,385,752
Deputy Chief Financial Officer..................................       3,339,654       3,405,713       3,222,125
    Treasury-wide Financial Statement Audits....................       3,393,000       3,393,000       3,393,000
DAS Management and Budget.......................................       2,433,361       2,976,022       2,896,344
                                                                 -----------------------------------------------
      Subtotal, Treasury Wide Management........................      14,063,000      17,569,000      16,519,680
                                                                 ===============================================
DAS DO Headquarters Operations..................................       1,873,013       1,981,815       1,981,815
    Office of Information Technology............................      20,859,167      20,982,476      20,826,400
    Office of Financial Management..............................       3,366,280       3,569,377       3,432,383
    Office of Human Resources...................................       1,649,517       1,772,826       1,702,434
    Office of Facilities and Support Services...................      11,248,554      11,915,874      11,915,874
Executive Office JFMIP/FASAB Contribution.......................  ..............         651,000          12,000
Centralized Services, Space, and Utilities......................      23,342,337      19,946,102      19,946,102
                                                                 -----------------------------------------------
      Subtotal, Administration..................................      62,338,868      60,819,470      59,817,008
                                                                 ===============================================
      Grand Total Salaries and Expenses.........................     175,070,000     185,041,000     161,313,000
----------------------------------------------------------------------------------------------------------------
\1\ Reflects reduction of $1,059,000 pursuant to Division H, section 168 of Public Law 108-199.
\2\ Committee recommendation provides funding for the Office of Foreign Assets Control in a separate location.

                    OFFICE OF FOREIGN ASSETS CONTROL

Appropriations, 2004 \1\ \2\............................................
Budget estimate, 2005 \3\...............................................
Committee recommendation................................     $22,291,000

\1\ Enacted level of $21,855,000 appropriated under Departmental 
Offices.
\2\ Reflects reduction of $130,000 pursuant to Division H, section 168 
of Public Law 108-199.
\3\ Budget request assumes funding within departmental offices.

    The Office of Foreign Assets Control [OFAC] administers and 
enforces economic sanctions against targeted foreign countries, 
terrorists, terrorist organizations and narcotic traffickers in 
furtherance of U.S. foreign policy and national security 
objectives. OFAC currently administers and enforces 27 economic 
sanctions programs--initiatives usually undertaken in 
conjunction with diplomatic and occasionally military action. 
OFAC acts under general Presidential wartime and national 
emergency powers, as well as specific legislation, to prohibit 
transactions and freeze assets subject to U.S. jurisdiction.
    OFAC's primary statutory authority is the Trading with the 
Enemy Act of 1917 and its successor statute, the International 
Emergency Economic Powers Act, enacted in 1977. The 
Antiterrorism and Effective Death Penalty Act of 1996 and the 
Foreign Narcotics Kingpin Designation Act of 1999 provide OFAC 
with the responsibility to administer sanctions against 
terrorists and narcotics traffickers. OFAC also administers 
restrictions on the import and export of rough diamonds under 
the Clean Diamonds Trade Act of 2003.
    Since September 11, 2001 the United States has designated 
368 individuals and entities as Specially Designated Global 
Terrorists [SDGTs] pursuant to Executive Order (``EO'') 13224 
administered by the OFAC. OFAC has developed a close 
collaborative working relationship with elements of the 
Department of Defense [DoD] to develop a more systemic and 
systematic approach to identifying, isolating, and attacking 
terrorists, terrorist groups and their support structures. This 
is aided by tapping unique information available throughout the 
Combatant Commands regions of responsibility to understand how 
terrorist networks operate. The DoD has backed this approach by 
funding 6 positions for OFAC officers, one OFAC officer at each 
of the Combatant Commands. OFAC also has offices in the 
embassies in Mexico and Colombia and will soon open an office 
in Bahrain to support this effort.
    The Committee recommends an appropriation of $22,291,000 
for the salaries and expenses of the Office of Foreign Assets 
Control.
    The Committee's recommendation supports a full funding 
level of no less than 138 FTE for fiscal year 2005. In 
addition, OFAC is reimbursed by the Department of Defense for 
an additional 6 positions detailed to the U.S. Combatant 
Commands [USCC] to total 144 FTE. Detailees are to serve in 
each of the USCC's Joint Interagency Coordination Groups 
[JIACG] to fight the continuing Global War on Terror.
    The Committee believes that the Office of Foreign Assets 
Control serves a vital mission on the front line of the war on 
terrorism, and therefore the Committee is providing a direct 
appropriation to the Office due to this increasingly vital 
mission. The Committee recommendation denies the 
administration's request allowing the funds of OFAC to be 
intermingled in the Departmental Offices Account. The Committee 
is concerned that vital resources will be diverted from 
counter-terrorism efforts to fund less critical missions within 
the Department if the funding floor is removed. The Committee 
has repeatedly included a statutory floor for this office and 
without a clear justification for its removal the Committee 
believes the floor is more justified now than ever. The 
transfer authorities provided for the Department do not apply 
to this account.
    The Committee supports OFAC's technology modernization 
efforts and encourages OFAC to continue developing its 
electronic data mining abilities. The Committee directs OFAC to 
submit a letter, 90 days after enactment, outlining the status 
of its modernization efforts.

        DEPARTMENT-WIDE SYSTEMS AND CAPITAL INVESTMENTS PROGRAM

                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2004 \1\................................     $36,185,000
Budget estimate, 2005...................................      36,072,000
Committee recommendation................................      30,260,000

\1\ Reflects reduction of $215,000 pursuant to Division H, section 168 
of Public Law 108-199.

    The 1997 Treasury and General Government Appropriations Act 
established this account, which is authorized to be used by or 
on behalf of Treasury bureaus, at the Secretary's discretion, 
to modernize business processes and increase efficiency through 
technology investments, as well as other activities that 
involve more than one Treasury bureau or Treasury's interface 
with other Government agencies.
    The Committee has provided a total of $30,260,000 to remain 
available until September 30, 2007, which is $5,812,000 less 
than the budget request and $5,925,000 less than the fiscal 
year 2004 enacted level.

                             DEPARTMENT-WIDE SYSTEMS AND CAPITAL INVESTMENTS PROGRAM
----------------------------------------------------------------------------------------------------------------
                                                                    Fiscal year     Fiscal year
                                                                   2004 enacted     2005 budget      Committee
                                                                       \1\           estimate     recommendation
----------------------------------------------------------------------------------------------------------------
HR Connect......................................................     $25,310,000     $17,491,000     $15,491,000
Treasury Enterprise Architecture................................         199,000       1,000,000         400,000
Critical Infrastructure.........................................       8,940,000       5,800,000       5,800,000
Integrated [Wireless) Treasury Network..........................  ..............       1,500,000       1,500,000
Treasury Asset Management System................................  ..............         175,000  ..............
Treasury back-up/Disaster recovery..............................       1,736,000       1,746,000       1,746,000
Information Assurance...........................................  ..............       1,000,000       1,000,000
E-Authentication................................................  ..............         561,000         561,000
IT Governance...................................................  ..............         275,000  ..............
Operational Security............................................  ..............       1,000,000       1,000,000
E-Government....................................................  ..............       5,524,000       2,762,000
                                                                 -----------------------------------------------
      Total.....................................................      36,185,000      36,072,000      30,260,000
----------------------------------------------------------------------------------------------------------------
\1\ Reflects reduction of $215,000 pursuant to Division H, section 168 of Public Law 108-199.

    HR Connect.--The Committee recommendation provides 
$15,491,000 in continued funding for this project, this is 
$2,000,000 below the amount requested in the budget. The 
Committee is concerned that after committing $165,000,000, few 
of the savings promised by the system have been realized. The 
Committee directs the Secretary to report to the House and 
Senate Committees on Appropriations, within 90 days of 
enactment, the report shall include the initial savings 
estimate of the system, a list of the types and amounts of 
savings realized to date, and how those savings were used to 
support other department programs. The report should also 
provide complete cost acquisition and maintenance schedules, 
and the estimated cost of maintenance by bureau through fiscal 
year 2008.
    E-Gov Initiatives.--The Committee recommendation provides 
$2,762,000 in new funding in support of the Department's e-Gov 
initiatives. The Committee is supportive of these initiatives 
and the role they can play in better operations and 
effectiveness across the Department's information systems 
program. The amount provided is a result of financial 
limitations on the Committee.
    IT Governance.--The Committee recommendation does not 
provide $275,000 requested for this program effort, viewing 
this primarily as on-going management efforts previously 
supported by the Department's base funding.
    Treasury Enterprise Architecture.--The Committee 
recommendation provides $400,000. This amount is $200,000 above 
the current funding level for this project. The Committee is 
supportive of efforts in this area and has doubled the current 
level of effort dedicated by the Department. Although new 
funding was provided, the justification materials do not 
elaborate on the full purposes of the request.

                      OFFICE OF INSPECTOR GENERAL

                         SALARIES AND EXPENSES

Appropriations, 2004 \1\................................     $12,923,000
Budget estimate, 2005...................................      14,158,000
Committee recommendation................................      16,158,000

\1\ Reflects reduction of $77,000 pursuant to Division H, section 168 of 
Public Law 108-199.

    As a result of the 1988 amendments to the Inspector General 
[IG] Act, the Secretary of the Treasury established the Office 
of Inspector General [OIG] in 1989.
    The OIG conducts and supervises audits, evaluations, and 
investigations designed to: (1) promote economy, efficiency, 
and effectiveness and prevent fraud, waste and abuse in 
departmental programs and operations; and (2) keep the 
Secretary and Congress fully and currently informed of problems 
and deficiencies in the administration of departmental programs 
and operations. The audit function provides program audit, 
contract audit 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 audit 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. These 
audits contribute significantly to improved financial 
management by helping Treasury managers identify improvements 
needed in their accounting and internal control systems. The 
evaluations function reviews program performance and issues 
critical to the mission of the Department, including assessing 
the Department's implementation of the Government Performance 
and Results Act [GPRA]. The investigative function provides for 
the detection and investigation of improper and illegal 
activities involving programs, personnel, and operations.
    The Committee believes that it is important to have an 
independent Inspector General office to maintain oversight over 
departmental programs. The duties and responsibilities of the 
Treasury Inspector General and the Treasury Inspector General 
for Tax Administration are vastly different in substance. The 
Committee believes that a merger would dilute the vigorous 
oversight that Congress and the taxpayers expect and the two 
are not conducive to being integrated.
    The Committee recommends an appropriation of $16,158,000 
for salaries and expenses of the Office of Inspector General. 
The Committee has provided $2,000,000 over the budget request 
to the Treasury Inspector General and $3,235,000 above the 
fiscal year 2004 enacted level. The Committee directs that the 
funds be divided evenly between the Office of Audit and the 
Office of Investigations. The Committee believes that 
increasing the number of audit positions is necessary to 
provide more aggressive analysis of the regulatory and 
compliance operations performed by the Department. This 
includes coordination between enforcement and regulatory 
functions and the reliability and usefulness of Bank Secrecy 
Act data. The Committee believes that increasing the number of 
investigative positions is necessary to detect and prevent 
fraud, related financial crimes, as well as criminal employee 
misconduct. The Committee notes that although the number of 
investigators has declined more than 80 percent since fiscal 
year 2003, the Treasury Office of Inspector General's 
investigative caseload has more than doubled. The office is 
currently engaged in a number of high-profile cases of bank 
fraud and examiner obstructions by regulated institutions, 
inappropriate release of national security and other sensitive 
information, and misuse of the Treasury seal. The Committee is 
also aware that some bureaus and offices within the Department 
have not had a financial audit performed in the last 5 years. 
The Committee expects that these funds will ensure that the 
Inspector General has sufficient funds to complete the audit of 
the Treasury Building and Annex Repair and Restoration account.

           TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION

Appropriations, 2004 \1\................................    $127,277,000
Budget estimate, 2005...................................     129,126,000
Committee recommendation................................     129,126,000

\1\ Reflects reduction of $755,000 pursuant to Division H, section 168 
of Public Law 108-199.

    The Treasury Inspector General for Tax Administration 
[TIGTA] was established by the IRS Restructuring and Reform Act 
of 1998 (Public Law 105-206). Funding was first appropriated 
for this account in the fiscal year 2000 Treasury and General 
Government Appropriations Act (Public Law 106-58).
    TIGTA conducts audits, investigations, and evaluations to 
assess the operations and programs of the Internal Revenue 
Service [IRS] and Related Entities, the IRS Oversight Board and 
the Office of Chief Counsel 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, and keep the Secretary and Congress 
fully and currently informed of these issues and the progress 
made in resolving them. TIGTA reviews existing and proposed 
legislation and regulations relating to the programs and 
operations of the IRS and Related Entities and makes 
recommendations concerning the impact of such legislation and 
regulations on the economy and efficiency in the administration 
of programs and operations of the IRS and Related Entities. The 
audit function provides program audit, contract audit and 
financial statement audit services. Program audits review and 
audit all facets of IRS and Related Entities. Contract audits 
provide professional advice to IRS contracting officials on 
accounting and financial matters relative to negotiation, 
award, administration, repricing, and settlement of contracts. 
The evaluations function reviews program performance and issues 
critical to the mission of the IRS. The investigative function 
provides for the detection and investigation of improper and 
illegal activities involving IRS programs and operations and 
protects the IRS and Related Entities against external attempts 
to corrupt or threaten their employees.
    The Committee believes that a merger of TIGTA and the 
Treasury Inspector General would diminish the oversight that 
Congress and the taxpayers expect and the two entities are not 
good candidates for integration.
    The Committee recommends an appropriation of $129,126,000 
for the Treasury Inspector General for Tax Administration. This 
amount is the same as the President's request and $1,849,000 
over the fiscal year 2004 enacted level. Of this amount, the 
accompanying bill provides $1,500 for official reception and 
representation account.

                AIR TRANSPORTATION STABILIZATION PROGRAM

Appropriations, 2004 \1\................................      $2,523,000
Budget estimate, 2005...................................       2,800,000
Committee recommendation................................       2,000,000

\1\ Reflects reduction of $15,000 pursuant to Division H, section 168 of 
Public Law 108-199.

    The Air Transportation Safety and System Stabilization Act, 
Public Law 107-42, established the Air Transportation 
Stabilization Board. The Board may issue up to $10,000,000,000 
in loan guarantees.
    The Committee recommends an appropriation of $2,000,000 for 
the Air Transportation Stabilization Program. This amount is 
$800,000 less than the budget request.

           TREASURY BUILDING AND ANNEX REPAIR AND RESTORATION

Appropriations, 2004 \1\................................     $24,853,000
Budget estimate, 2005...................................      20,316,000
Committee recommendation................................      12,316,000

\1\ Reflects reduction of $148,000 pursuant to Division H, section 168 
of Public Law 108-199.

    The Treasury Building and Annex Repair and Restoration 
appropriation funds the repairs, selected improvements and 
construction necessary to renovate and maintain the main 
Treasury Building and the Treasury annex.
    The Committee recommends an appropriation of $12,316,000 
for the repair and restoration of the Treasury Building and 
Annex, $8,000,000 less than the budget request and $12,537,000 
less than the fiscal year 2004 enacted level.
    The Department's budget justification has identified this 
as the final year of funding for the Treasury Building and 
Annex Repair and Restoration. The Department's responses to 
questions related to the budget justification indicated that 
``some critical repairs to the Treasury Building have been 
deferred or cancelled in order to meet the 2005 deadline'' for 
completion. In light of this response and preliminary 
information received from the Inspector General, the Committee 
is highly skeptical of the actual status of this program. The 
Committee is disappointed that after appropriating 
$234,000,000, not only is the renovation of the historic 
Treasury building not complete, but the Annex has received 
virtually no repair. The Committee is concerned about the long 
term continuing character of this renovation and even though no 
funds will be requested in this account in future years, it is 
clear that this project is not complete.
    The Committee recommends a decrease of $8,000,000 from the 
budget request due to the budget constraints of the Committee 
and ongoing concerns about the cost escalation and delayed 
completion. The Committee expects the Department to manage the 
completion within the funds available. The Committee directs 
the Department to provide a report to the House and Senate 
Committees on Appropriations no later than March 1, 2005. The 
report shall contain the following: (1) the original plan and 
scope for the Treasury Department and Annex; (2) the final plan 
and scope of the project scheduled for completion in 2005; (3) 
a full assessment and explanation of cost variances by project 
compared to the original plan; (4) an assessment of all future 
requirements for new and deferred maintenance and repairs for 
the main Treasury building and the Annex; and (5) all 
restoration work done to the Annex.

                 EXPANDED ACCESS TO FINANCIAL SERVICES

                              (RESCISSION)

Rescission, 2004........................................................
Budget estimate, 2005...................................     -$4,000,000
Committee recommendation................................      -4,000,000

    The Expanded Access to Financial Services account is 
intended to help low and moderate income Americans benefit from 
access to basic financial services.
    The Committee recommends a rescission of $4,000,000 in 
unobligated balances from fiscal years 2002 and 2003 
appropriations. This is the same as the President's request.

                    VIOLENT CRIME REDUCTION PROGRAM

                  (VIOLENT CRIME REDUCTION TRUST FUND)

                              (RESCISSION)

Rescission, 2004........................................................
Budget estimate, 2005...................................     -$1,000,000
Committee recommendation................................      -1,200,000

    Amounts for the Department of the Treasury's portion of 
Crime Control Programs are derived from transfers from the 
Violent Crime Reduction Trust Fund, as authorized by the Crime 
Control and Law Enforcement Act of 1994.
    The Committee recommends a rescission of $1,200,000. The 
budget recommendation is $200,000 more than the budget request.

                      TERRORISM INSURANCE PROGRAM

    On November 26, 2002, President Bush signed into law the 
Terrorism Risk Insurance Act of 2002 (Public Law 107-297). The 
Act establishes and provides mandatory funding for a temporary 
Terrorism Insurance Program to be administered by the 
Department of the Treasury. Under the program, the Federal 
Government is responsible for paying 90 percent of the insured 
losses arising from acts of terrorism above the applicable 
insurer deductible and below the $100,000,000,000 annual cap.
    The budget includes estimates of the general administrative 
costs of the program. Given the uncertainty surrounding the 
risk of future terrorist attacks, the budget does not include 
estimates of the timing or magnitude of potential insurance 
claims under the program, which is scheduled to sunset on 
December 31, 2005. Any such claims would be paid from 
permanent, indefinite authority and would not require 
subsequent appropriations.

                  Financial Crimes Enforcement Network

Appropriations, 2004 \1\................................     $57,231,000
Budget estimate, 2005...................................      64,502,000
Committee recommendation................................      72,502,000

\1\ Reflects reduction of $340,000 pursuant to Division H, section 168 
of Public Law 108-199.

    The Financial Crimes Enforcement Network [FinCEN] was 
established in 1990 as a government-wide, service-oriented, 
financial information-sharing agency. FinCEN's mission is to 
help safeguard the U.S. financial system from the abuses of 
money laundering and illicit finance, including the financing 
of terrorism. FinCEN achieves this mission through the 
administration of the Bank Secrecy Act [BSA], as amended; 
through tactical and strategic analysis of financial 
information; through education and outreach with the goal of 
achieving greater financial transparency; and, through the 
timely sharing of financial intelligence to aid law enforcement 
and, where appropriate, the intelligence community in the 
detection and investigation of money laundering and illicit 
financial activity, including the financing of terrorism. 
FinCEN is responsible for collecting, maintaining, analyzing 
and disseminating financial information reported by financial 
institutions as required by the Bank Secrecy Act, as amended. 
The Bank Secrecy Act, as amended, is the Nation's regulatory 
regime to address the problems of money laundering and other 
illicit finance, including the financing of terrorism. FinCEN 
adds value to the Bank Secrecy Act data it collects to support 
law enforcement by providing investigatory leads, trends and 
pattern information, and other tactical and strategic 
analytical products and, by networking its information to 
agencies with similar investigatory interests. FinCEN works 
closely with the financial services community to ensure that 
the regulations it crafts strike the appropriate balance 
between meeting the needs of the government, the regulatory 
burden placed upon the financial industry, and the privacy 
interests of U.S. citizens. FinCEN's approach to assuring 
industry compliance with the Bank Secrecy Act is predicated on 
education and outreach. However, its regulatory enforcement 
authorities provide for application of significant civil 
monetary penalties against financial institutions that fail to 
address serious compliance deficiencies.
    Title III of the USA PATRIOT Act (The International Money 
Laundering Abatement and Anti-Terrorism Financing Act of 2001) 
recognized FinCEN's unique position as a focal point for 
information relating to money laundering, the financing of 
terrorism, and other financial crimes. To carry out these 
responsibilities, the USA PATRIOT Act elevated FinCEN to a 
bureau within the U.S. Department of the Treasury. The Act 
directed FinCEN to carry out, in whole or in part, 23 of the 44 
provisions in the Title, including accelerating the timetable 
for expanding certain Bank Secrecy Act requirements to a broad 
range of financial entities beyond depository institutions, 
such as mutual fund operators, futures commission merchants, 
the insurance industry, dealers in precious stones and metals 
and others. Moreover, FinCEN serves as our Nation's financial 
intelligence unit or FIU. FinCEN's network includes an 
international community of other FIUs that, in 2004, grew to 
over 90 countries.
    The Committee recommends an appropriation of $72,502,000 
for the Financial Crimes Enforcement Network. This amount is 
$8,000,000 above the administration's request and $15,271,000 
over the fiscal year 2004 enacted level.
    FinCEN's BSA Direct Initiative.--The Committee understands 
that the ``BSA Direct'' initiative will be the cornerstone of 
FinCEN's technology architecture. BSA Direct will provide 
FinCEN and its customers the ability to access and analyze 
information collected under the Bank Secrecy Act in a user-
friendly, secure web-based platform. FinCEN receives over 13 
million reports annually from financial institutions. This data 
is currently housed in 12 separate databases at the IRS's 
Detroit Computing Center and is accessed through an antiquated 
dial-up system. The budget request provides $2,500,000 to 
support this new Presidential initiative. The Department of the 
Treasury has supplemented the budget request by an additional 
$2,000,000 with monies from the Treasury Asset Forfeiture Fund. 
The Committee understands the importance of this system to 
FinCEN's mission and, therefore, has provided the additional 
$5,000,000 needed to complete this mission-critical project 
that is expected to be operational by October 2005.
    The Committee, while providing this necessary funding, is 
concerned about duplication that may exist with systems being 
developed at the IRS's Detroit Computing Center, which 
currently houses the data collected under the Bank Secrecy Act 
in an outdated legacy system. Therefore, the Committee directs 
the Secretary to certify within 30 days of enactment to the 
House and Senate Committees on Appropriations that the system 
and data warehouse being developed by the Financial Crimes 
Enforcement Network relating to data collected under the Bank 
Secrecy Act is the sole system being developed by Treasury or 
any of its bureaus to house and provide general access to such 
data. The Committee directs that none of the funds provided for 
this system be expended prior to receipt of such certification.
    The Director of FinCEN shall report to the House and Senate 
Committees on Appropriations any significant delay, deviation 
or change in costs associated with the contract to develop this 
project. Further, the Committee is disappointed to learn that 
the IRS has expended approximately $4,000,000 to build a 
platform similar to BSA Direct with no prior consultation with 
OMB, Treasury or the Congress. Given the IRS's troubled history 
with developing computer systems, the Committee at a minimum, 
expects the IRS to focus resources and attention on getting its 
own BSM project to meet performance and delivery goals prior to 
addressing the rest of the Government's information technology 
needs.
    FinCEN's Enhanced Administration of the Bank Secrecy Act.--
The Committee recommendation provides an additional $3,000,000 
to hire no less than 18 FTEs to assist FinCEN in ensuring 
compliance by all financial industries subject to the BSA. This 
increase will provide FinCEN with the resources to acquire the 
expertise necessary to ensure the protection of our Nation's 
financial system from abuse by criminals and those seeking to 
carry out acts of terror. The Bank Secrecy Act, as amended by 
Title III of the USA PATRIOT Act, imposes a series of reporting 
and recordkeeping requirements on a wide array of financial 
institutions in order to detect and prevent money laundering 
and the financing of terrorism. The Department of Treasury, 
through FinCEN, administers the Bank Secrecy Act. FinCEN has 
delegated the responsibility to examine financial institutions 
for Bank Secrecy Act compliance to various Federal regulatory 
agencies. The agencies examining for BSA compliance include the 
Federal functional banking regulators, the Securities and 
Exchange Commission, the Commodities Futures Trading 
Commission, and the Internal Revenue Service. As the 
administrator FinCEN has retained the sole authority to seek 
civil enforcement remedies for violations of the Bank Secrecy 
Act.
    Recent events have exposed fundamental weaknesses in the 
system for Bank Secrecy Act compliance examination. The 
revelations of obvious, egregious, and possibly criminal 
violations of the BSA within the Riggs National Bank were 
nearly eclipsed by the fact that Riggs' regulator, the Office 
of the Comptroller of the Currency [OCC], knew of such problems 
for years before taking any serious action to require Riggs to 
address them. Most significantly, the OCC failed to advise 
FinCEN, the administrator of the Bank Secrecy Act, of any of 
the problems within Riggs until shortly before OCC made the BSA 
deficiencies public. FinCEN, because it did not have access to 
examination information from the OCC, had no way of knowing 
about Riggs' compliance deficiencies. In response, FinCEN has 
created a new ``Office of Compliance'' in its Division of 
Regulatory Policy, Compliance and Enforcement, which will be 
dedicated to fulfilling FinCEN's role in more aggressively 
administering and implementing the Bank Secrecy Act and 
overseeing the examination activities of the agencies examining 
for Bank Secrecy Act compliance. The Office of Compliance will 
identify compliance problems within financial institutions at 
an early stage and ensure that appropriate corrective action is 
taken. The Committee understands that FinCEN has developed a 
plan where agencies are now required to notify FinCEN's Office 
of Compliance when they discover significant Bank Secrecy Act 
violations within financial institutions and to provide to 
FinCEN a copy of the relevant portion of the reports of 
examination and other supporting material. The agencies will 
also have to produce aggregate information on their Bank 
Secrecy Act examinations and the deficiencies found.
    Moreover, for the first time, FinCEN will devote 
significant analytical resources to its regulatory programs. 
FinCEN has created an Office of Regulatory Support in its 
Division of Analytics to support FinCEN's regulatory programs, 
including the Office of Compliance. FinCEN will analyze 
examination information from all agencies, and combine that 
data with the information from Bank Secrecy Act reports that 
FinCEN already collects and maintains. Through this analysis, 
FinCEN will be able to support the examination functions of the 
regulators by helping to identify both strategic and tactical 
examination targets, emerging compliance deficiencies, and 
identify and target problem financial institutions for 
examination. Identification of deficiencies and compliance 
issues also allows FinCEN to provide guidance to the industry 
on a more timely basis and aid the industry in focusing its 
compliance resources.
    The Committee directs that the new resources provided above 
may only be used to supplement the Office of Compliance or to 
add analysts in the Office of Regulatory Support, if those 
analysts provide direct support to the Office of Compliance. 
The Committee directs that these new resources shall not be 
used for any purpose or expense without the express written 
approval of the House and Senate Committees on Appropriations.

                      Financial Management Service


                         SALARIES AND EXPENSES

Appropriations, 2004 \1\................................    $227,210,000
Budget estimate, 2005...................................     230,930,000
Committee recommendation................................     230,930,000

\1\ Reflects reduction of $1,348,000 pursuant to Division H, section 168 
of Public Law 108-199.

    In 1940, the United States Department of the Treasury 
established the Fiscal Service, which consisted of the Bureau 
of Accounts, the Bureau of the Public Debt, and the Office of 
the Treasurer. A 1974 reorganization of the Fiscal Service 
created the Bureau of Government Financial Operations, which 
was formed from a merger of the Bureau of Accounts and most 
functions of the Office of the Treasurer. In 1984, the Bureau 
of Government Financial Operations was renamed the Financial 
Management Service [FMS]; the new name reflected Treasury's 
renewed emphasis on achieving greater efficiency and economy in 
government financial management.
    Payments.--FMS implements payment policy and procedures for 
the Federal Government, issues and distributes payments, 
promotes the use of electronics in the payment process, and 
assists agencies in converting payments from paper checks to 
electronic funds transfer [EFT]. The control and financial 
integrity of the Federal payments and collections process 
includes reconciliation, accounting, and claims activities. The 
claims activity settles claims against the United States 
resulting from Government checks which have been forged, lost, 
stolen, or destroyed, and collects monies from those parties 
liable for fraudulent or otherwise improper negotiation of 
Government checks.
    Collections.--FMS implements collections policy, 
regulations, standards, and procedures for the Federal 
Government, facilitates collections, promotes the use of 
electronics in the collections process, and assists agencies in 
converting collections from paper to electronic media.
    Debt Collection.--FMS provides debt collection operational 
services to client agencies which includes collection of 
delinquent accounts, offset of Federal payments against debts 
owed the Government, post-judgment enforcement, consolidation 
of information reported to credit bureaus, reporting for 
discharged debts or vendor payments, and disposition of 
foreclosed property.
    Government-wide Accounting and Reporting.--FMS also 
provides financial accounting, reporting, and financing 
services to the Federal Government and the Government's agents 
who participate in the payments and collections process by 
generating a series of daily, monthly, quarterly and annual 
Government-wide reports. FMS also works directly with agencies 
to help reconcile reporting differences.
    The Committee recommends $230,930,000 for salaries and 
expenses for FMS. This amount is the same as the budget request 
and $3,720,000 above the fiscal year 2004 enacted level.

                Alcohol and Tobacco Tax and Trade Bureau

Appropriations, 2004 \1\................................     $79,528,000
Budget estimate, 2005...................................      81,942,000
Committee recommendation................................      83,000,000

\1\ Reflects reduction of $472,000 pursuant to Division H, section 168 
of Public Law 108-199.

    The Homeland Security Act created the Alcohol and Tobacco 
Tax and Trade Bureau [TTB] within the Department of the 
Treasury and charged TTB with collecting revenue and protecting 
the public.
    TTB enforces the Federal laws and regulations relating to 
alcohol and tobacco. Its responsibilities include maintaining a 
sound revenue management and regulatory system that continues 
to reduce the taxpayer burden, improve service, collect the 
revenue due, prevent tax evasion and other criminal conduct, 
and protecting the public and preventing consumer deception in 
regulated commodities.
    The Committee recommends $83,000,000 for TTB. This amount 
is an increase of $3,472,000 above the fiscal year 2004 enacted 
level and $1,058,000 above the President's budget request. The 
Committee has included additional funds to initiate TTB's 
transition to Treasury supported systems and standards from the 
Bureau of Alcohol Tobacco and Firearms. The Committee directs 
the Department of the Treasury and the Alcohol and Tobacco Tax 
and Trade Bureau to submit by March 1, 2005, to the Committees 
on Appropriations a detailed spending plan for the money 
provided over the budget request. The report shall identify all 
costs paid by TTB to the Bureau of Alcohol Tobacco and Firearms 
for shared services, including but not limited to space, rent, 
telephones, furniture, computer services and maintenance. The 
report shall include the estimated cost of those same services 
if provided by the Department of the Treasury, and a plan, cost 
and time schedule for migration to the Department's shared 
services.
    Homeopathic Medicine.--The Committee is aware that until 
2000, imported homeopathic medicines were consistently 
classified by the Customs Service as medicaments and that 
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 Treasury 
Department 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 
take appropriate action.

                       Bureau of the Public Debt


                     ADMINISTERING THE PUBLIC DEBT

Appropriations, 2004 \1\................................    $172,627,000
Budget estimate, 2005...................................     175,166,000
Committee recommendation................................     175,166,000

\1\ Reflects reduction of $1,025,000 pursuant to Division H, section 168 
of Public Law 108-199.

    The Public Debt Service was formed in 1919 with the 
appointment of the first Commissioner of the Public Debt. The 
Public Debt Service took general charge debt operations 
including debt accounting and securities issue and retirement, 
which had been conducted by several independent divisions 
within the Treasury. Acting under the authorization of the 
Reorganization Act of 1939, the President created the Bureau of 
the Public Debt, which was established as part of the Fiscal 
Service in the Department of the Treasury effective June 30, 
1940, (31 U.S.C. 306). In 1993, the Savings Bonds Division, a 
separate organization, was made part of the Bureau.
    This appropriation provides funds for the conduct of all 
public debt operations and the promotion of the sale of U.S. 
savings-type securities.
    Wholesale Securities Services.--This program ensures that 
all primary and secondary markets for Treasury securities and 
critical financing needs are maintained and met. It includes 
all activities related to the regulation, auction, issue, 
servicing and redemption of Treasury marketable securities that 
are owned by institutional investors and their customers.
    Government Agency Investment Services.--Within this 
program, there are over 200 Federal trust and investment funds. 
This program supports State, local and Federal Government 
agencies' investments in non-marketable Treasury securities as 
well as borrowings from the Treasury.
    Retail Securities Services.--Marketable and non-marketable 
securities held with Treasury are managed through this program. 
In addition to issuance and redemption of securities, 
processing customer service requests are also rendered through 
this program.
    Summary Debt Accounting.--This program involves the timely 
and accurate accounting and reporting of the outstanding public 
debt and related interest expense incurred to finance the 
Federal Government.
    The Committee recommends an appropriation of $175,166,000 
for the Bureau of the Public Debt in fiscal year 2005. This 
amount is the same as the President's budget request and 
$2,539,000 over the fiscal year 2004 enacted level.

                           United States Mint


               UNITED STATES MINT PUBLIC ENTERPRISE FUND

    The United States Mint manufactures coins, sells numismatic 
and investment products, and provides for security and asset 
protection. Public Law 104-52 established the U.S. Mint Public 
Enterprise Fund (the Fund). The Fund encompasses the previous 
Salaries and Expenses, Coinage Profit Fund, Coinage Metal Fund, 
and the Numismatic Public Enterprise Fund. The Mint submits 
annual audited business-type financial statements to the 
Secretary of the Treasury and to Congress in support of the 
operations of the revolving fund.
    The operations of the Mint are divided into three major 
activities: Circulating Coinage; Numismatic and Investment 
Products; and Protection. The Mint is credited with receipts 
from its circulating coinage operations, equal to the full cost 
of producing and distributing coins that are put into 
circulation, including depreciation of the Mint's plant and 
equipment on the basis of current replacement value. Those 
receipts pay for the cost of the Mint's operations, which 
includes the costs of production and distribution. The 
difference between the face value of the coins and these costs 
are profit, which is deposited as seigniorage to the general 
fund. In fiscal year 2003, the Mint transferred $600,000,000 to 
the general fund. Any seigniorage used to finance the Mint's 
capital acquisitions is recorded as budget authority in the 
year that funds are obligated for this purpose and as receipts 
over the life of the asset.
    Budget Justification.--In fiscal year 1996, the Committees 
on Appropriations created the Public Enterprise Fund to assist 
the Mint in responding to the variability of coinage demands 
and to meet its ongoing capital equipment requirements. The 
Committee reminds the Mint that the fund was created for its 
benefit. The Committee is disappointed with the lack of budget 
justification materials provided annually by the Mint. To 
remedy this situation, the Committee directs that the Mint's 
fiscal year 2006 budget justification materials, using fiscal 
year 2005 as the baseline, include: (1) a current 
organizational chart for the Mint headquarters; (2) a complete 
FTE count by headquarters organizational business units; (3) a 
complete cost accounting for all headquarters expenses, 
including but not limited to, domestic travel, international 
travel, rent, repairs, supplies, equipment, all advertising 
costs, and the projected FTE's for the headquarters building 
requested for fiscal year 2006; (4) a detailed cost breakout of 
the construction costs, including sunk costs and new security 
costs for the museum; (5) the annual operating costs to 
maintain the museum after its construction; (6) an 
organizational chart and FTE breakout, by job function, for the 
Philadelphia Mint, the Denver Mint, the San Francisco Mint, the 
West Point Mint and any other Mint facility; and (7) a detailed 
breakout of all capital acquisitions and accompanying 
obligation timetable. The Committee defines organizational 
business units as the office of the director, deputy director, 
executive secretary, legislative affairs, public affairs, 
management, office of the general counsel, administration, 
chief financial officer, chief information officer, sales and 
marketing, production, and Mint police. Finally, the Committee 
directs that the cost accounting include all functions and FTEs 
(those on temporary duty, detailed, and those permanently 
assigned) regardless of the funding source.
    Mint-BEP Merger.--The Committee recognizes that efforts are 
already underway in the Department for the study of a potential 
merger of some or all activities of the United States Mint and 
the Bureau of Engraving and Printing. Given the multiple 
jurisdictional issues of the two bureaus and the uniqueness of 
many of their respective activities, the Committee has included 
a general provision governing the implementation of any 
recommendations resulting from the ongoing review by the 
Department. Particularly unique are the financing arrangements 
of the two bureaus, as well as the relationship of Public 
Enterprise Fund balances to the financing of the Federal 
Government public debt. For these and other reasons, the 
Committee believes it is important that a full congressional 
review take place on any recommendations by the committees with 
oversight responsibility, and therefore, has included a general 
provision to this effect.

                    Bureau of Engraving and Printing

    The Bureau of Engraving and Printing [BEP] has been the 
sole manufacturer of U.S. paper currency for almost 150 years. 
The origin of the BEP is traced to an Act of Congress passed on 
February 25, 1862, 12 Stat. 345, authorizing the Secretary of 
the Treasury to issue a new currency--United States notes. 
While this law was the cornerstone authority for the operations 
of the engraving and printing division of the Treasury for many 
years, it was not until an Act of June 20, 1874, 18 Stat. 100, 
that the Congress first referred to this division as the 
``Bureau of Engraving and Printing.'' The Bureau's status as a 
distinct bureau within the Department of the Treasury was 
solidified by section 1 of the Act of June 4, 1897, 30 Stat. 
18, which placed all of the business of the BEP under the 
immediate control of a director, subject to the direction of 
the Secretary of the Treasury. The 1897 law is now codified in 
31 U.S.C. 303.
    The BEP designs, manufactures, and supplies Federal Reserve 
notes, various public debt instruments, as well as financial 
characters issued by the United States, such as postage and 
internal revenue stamps. The BEP executes certain printings for 
various territories administered by the United States, 
particularly postage and revenue stamps.
    The operations of the BEP are currently financed by means 
of a revolving fund established in accordance with the 
provisions of Public Law 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.
    No direct appropriation is required to cover the activities 
of the BEP.
    Mint-BEP Merger.--As noted previously, the Committee 
recognizes that efforts are already underway in the Department 
for the study of a potential merger of some or all activities 
of the United States Mint and the Bureau of Engraving and 
Printing. Given the multiple jurisdictional issues of the two 
bureaus and the uniqueness of many of their respective 
activities, the Committee has included a general provision 
governing the implementation of any recommendations resulting 
from the ongoing review by the Department. Particularly unique 
are the financing arrangements of the two bureaus, as well as 
the relationship of Public Enterprise Fund balances to the 
financing of the Federal Government's public debt. For these 
and other reasons, the Committee believes it is important that 
a full Congressional review take place on any recommendations 
by the Committees with oversight responsibility, and therefore, 
has included a general provision to this effect.

                        Internal Revenue Service

    The Internal Revenue Service history dates back to 1862. In 
1953 following a reorganization of its function, its name 
became the Internal Revenue Service [IRS]. The IRS mission is 
to provide America's taxpayers top quality service by helping 
them understand and meet their tax responsibilities and by 
applying the tax law with integrity and fairness to all. The 
IRS deals directly with more Americans than any other 
institution, public or private. In 2003, the IRS collected 
nearly $2,000,000,000,000 in revenue and processed more than 
222 million tax returns at a cost of 48 cents for each $100 
collected by the IRS. Also, in 2003, the agency provided 
assistance more than 97 million times through toll-free 
telephone lines, correspondence or visits to its more than 400 
offices nationwide. An important focus of recent years for the 
IRS has been to undertake a major modernization of its systems 
and business operations to better serve taxpayers and enforce 
the law. A companion objective in fiscal year 2005 is to 
strengthen overall compliance and enforcement designed to 
address noncompliance with the tax code, thus making the total 
tax administration fairer for all. The Committee has attempted 
to balance those objectives with budget constraints.
    The Committee recommends appropriations that provide a 
total of $10,392,462,000 for the IRS in fiscal year 2005. This 
amount is $281,078,000 less than the administration's request 
and $208,720,000 above the fiscal year 2004 enacted level.
    The resources for this bill in fiscal year 2005 are very 
constrained, requiring the Committee to make difficult 
decisions on the appropriate allocations between accounts. 
However, even with these limitations, the Committee's 
recommendations maintain strong support for the operations of 
the Internal Revenue Service, providing almost 98 percent of 
the IRS's fiscal year 2005 budget request. For all areas other 
than Business Systems Modernization, the increases provided are 
more than 99 percent of the original request. The reductions 
for Business System Modernization are discussed in more depth 
under that account heading and support the important re-
focusing that the Committee views is necessary at this stage of 
the development and implementation processes. In the Tax Law 
Enforcement account, where an 8.3 percent increase is supported 
for fiscal year 2005, the Committee supports the renewed focus 
on compliance and enforcement activities, given the declines in 
investments and performance in recent years. The Committee 
views this area, along with the business modernization program, 
as the highest priority investments for the Internal Revenue 
Service for the coming year. The Processing, Administration and 
Management appropriation is funded at 2.5 percent above the 
fiscal year 2004 level and selected reductions have been 
applied to the Information Systems appropriation to ensure that 
new program increases are targeted to the high priority 
compliance and enforcement activities.
    IRS Reorganization Plans.--The Committee is disappointed 
with the agency's performance with regard to the 
reorganization. These plans have been announced piece-meal, 
without an apparent overall structure or goal. The resulting 
reductions in force [RIF], affecting nearly 5,000 employees and 
subsequent new hires, are occurring despite the lack of 
communication of a clear understanding of all the costs and 
benefits. For this reason, the Committee directs the IRS to 
submit a detailed report to the Committee, 30 days after 
enactment of this Act, which shall include: (1) a detailed cost 
analysis of the savings expected from the RIFs, the anticipated 
increase in productivity resulting from the consolidations, the 
administrative costs necessary to conduct the RIFs, and the 
costs to modify the work and accommodate the new hires; (2) the 
cost of hiring and training the 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; (3) an 
analysis that demonstrates and explains how the IRS intends to 
do the same amount of work with fewer employees and how this 
will affect the taxpayers served by these employees both 
directly and indirectly; (4) a description of any gap in work 
productivity due to transition, hiring and training and the 
effect this will have on delays to case processing and 
insolvency cases; (5) an analysis that shows how greater 
efficiency is achieved by moving employees out of the field, 
away from the staff they support; this analysis should pay 
particular attention to and include a description of how the 
work of the revenue agents and officers will be affected by not 
having support staff in the same proximity.
    With regard to any RIF, the Committee directs the IRS to 
use all available resources to minimize involuntary 
separations, including: providing preference to those employees 
targeted by the RIF to fill other vacancies for which they are 
qualified within the IRS, Treasury Department or other Federal 
agencies in the RIF 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 6 months of career transition 
assistance program benefits to all IRS employees described in 
the above paragraph affected by a RIF.

                 PROCESSING, ASSISTANCE, AND MANAGEMENT

Appropriations, 2004 \1\................................  $4,009,205,000
Budget estimate, 2005...................................   4,148,403,000
Committee recommendation................................   4,107,325,000

\1\ Reflects reduction of $23,795,000 pursuant to Division H, section 
168 of Public Law 108-199.

    This appropriation provides for: processing tax returns and 
related documents; assisting taxpayers in the filing of their 
returns, paying taxes that are due, and complying with tax 
laws; issuing technical rulings; revenue accounting; conducting 
background investigations; and managing financial resources, 
rent and utilities.
    The Committee recommends an appropriation of $4,107,325,000 
for Processing, Assistance, and Management. This is a reduction 
of $41,078,000 below the budget request and $98,120,000 above 
the fiscal year 2004 enacted level. The Committee 
recommendation provides the full level of funding necessary to 
support current services as identified in the IRS budget 
request. Although not all program increases requested were 
funded (reduction of $41,000,000) the amount provided in this 
appropriation represents a 2.5 percent increase over the fiscal 
year 2004 enacted level.
    The recommendation does include sufficient resources to 
ensure that the IRS is able to fully reinvest into this 
appropriation the projected savings identified through base 
mining. The Committee is skeptical of the IRS's ability to 
fully realize all the savings identified in this account and 
wants to ensure that tax processing has the resources necessary 
to meet tax responsibilities. The Committee looks forward to a 
full report from the Service on the proposed resource 
realignments, as well as results from the Plan Optimization 
Study, for which an additional $19,000,000 in savings is 
estimated.
    IRS Staffing Plans.--The Committee continues to support 
adequate staffing levels for effective tax administration and 
supports the staffing plans for the Internal Revenue Service 
facilities in the communities of Martinsburg and Beckley, WV. 
Therefore, the Committee urges the IRS, within the constraints 
of the fiscal year 2005 funding levels, to make no staffing 
reductions at the Martinsburg National Computing Center and the 
programmed level at the Administrative Services Center in 
Beckley, WV. Further, the Committee directs the IRS to provide 
an annual report to the Committee on its efforts to protect and 
increase staffing levels at the Martinsburg and Beckley IRS 
facilities.
    Tax Counseling for the Elderly.--The Committee once again 
believes that the Tax Counseling Program for the Elderly has 
proven to be most successful. To meet the goals of this 
program, $4,100,000 is included within the aggregate amount 
recommended by the Committee for processing tax returns and 
assistance in fiscal year 2005. To ensure that the full effect 
of the program is accomplished, the IRS is directed to cover 
administrative expenses within existing funds.
    Taxpayer Services in Alaska and Hawaii.--Given the remote 
distance of Alaska and Hawaii from the U.S. mainland and the 
difficulty experienced by Alaska and Hawaii taxpayers in 
receiving needed tax assistance by the national toll-free line, 
it is imperative that the Taxpayer Advocate Service Center in 
each of these States is fully staffed and capable of resolving 
taxpayer problems of the most complex nature. The Committee 
directs the Internal Revenue Service to continue to staff each 
Taxpayer Advocate Service Center in each of these States with a 
Collection Technical Advisor and an Examination Technical 
Advisor in addition to the current complement of office staff. 
Staffing shall be increased if, as the result of the IRS 
Restructuring and Reform Act of 1998, subsequent legislation, 
or other factors, the number of cases or their complexity 
increases.
    Chicago, IL Tax Assistance Program.--The Committee is aware 
of an innovative financial literacy and tax assistance project 
in Chicago, Illinois--Tax Assistance Program--designed to 
assist low income workers and their families with tax education 
and filing, in cooperation with the State of Illinois and the 
City of Chicago's Earned Income Tax Credit [EITC] outreach 
efforts. The Committee encourages the IRS to continue to 
provide appropriate technical and financial assistance for this 
worthwhile initiative.
    Low-Income Taxpayer Clinic.--The Committee once again 
commends the IRS for the Low-Income Taxpayer Clinic [LITC] 
program. With the growing complexity of tax laws, this program 
has provided invaluable help for taxpayers who are seeking to 
resolve disputes with the IRS. To ensure that the goals of the 
LITC program are maintained, the Committee has provided a total 
of $7,000,000 to be distributed and to assist low-income 
taxpayer clinics across the Nation.
    Need-based tax preparation assistance through LITC and 
other programs such as VITA are imperative for many of our 
Nation's taxpayers who cannot afford commercial preparers. 
Without this assistance, many individuals may either not file a 
return or will make errors and prepare their returns 
improperly, ultimately leading to a dispute with the IRS. The 
Committee believes that successfully helping taxpayers with 
problems with the IRS begins with the accurate preparation and 
filing of the return. Without this assistance, the limited 
resources available to the LITC program will be insufficient to 
meet the demand of taxpayers with controversies with the IRS.
    Volunteer Income Tax Assistance.--The Committee notes that 
the existing Volunteer Income Tax Assistance [VITA] program 
provides an invaluable service by helping low income taxpayers 
prepare and file their Federal income tax returns. However, the 
Committee is troubled by a recent Tax Inspector General for Tax 
Administration [TIGTA] audit report for the 2004 tax filing 
season, stating that taxpayers were provided with inaccurate 
answers to basic tax law questions and the accuracy of tax 
returns prepared at the VITA sites. In light of TIGTA's recent 
findings, the Committee directs the IRS to take immediate steps 
to implement an improved taxpayer assistance training program 
for its employees to ensure that taxpayers are given accurate 
and complete answers to their tax questions and that tax 
returns prepared on the taxpayer's behalf are done correctly. 
The Committee also directs IRS to submit to both the House and 
Senate Committees on Appropriations its proposed method of 
education and training to properly train the employees for this 
task no later than 90 days after the enactment of this Act.
    The Committee urges the IRS to continue to provide such 
additional sums as may become available to the VITA program 
outside of its in-kind contribution program. These additional 
funds are intended to assist the IRS in expanding the VITA 
program to hard-to-serve areas, such as Indian reservations. 
Additionally, these funds are intended to increase the capacity 
of VITA sites to file returns electronically and to cover some 
operational expenses. The Committee expects that IRS will 
continue its current level of in-kind contributions to the VITA 
programs.

                          TAX LAW ENFORCEMENT

Appropriations, 2004 \1\................................  $4,171,244,000
Budget estimate, 2005...................................   4,564,350,000
Committee recommendation................................   4,519,350,000

\1\ Reflects reduction of $24,756,000 pursuant to Division H, section 
168 of Public Law 108-199.

    Tax Law Enforcement [TLE] provides equitable application 
and enforcement of the laws, identifies possible non-filers, 
investigates violations of criminal statutes, supports the 
Statistics of Income program and conducts research to identify 
compliance issues.
    EITC.--The Committee is extremely troubled that the IRS has 
not rendered a solution to the beleaguered earned income tax 
compliance [EITC] program. It is apparent that the EITC 
initiative continues to be plagued with deficiencies. A pilot 
program for the EITC initiative was administered in 2004, 
randomly selecting 25,000 taxpayers to certify their 
eligibility. Only 65 percent of the taxpayers selected filed 
with a qualifying child. The Committee directs the IRS to 
continue to review this program and evaluate the information 
received from the pilot project and determine the best method 
to prevent fraud within this program and submit a report to the 
Committees by March 1, 2005.
    Compliance Services.--This activity funds services provided 
to a taxpayer after a return is filed to identify and correct 
possible errors or underpayment. Included in this activity are 
staffing, training and support for: (1) compliance services 
operational management; (2) centralized automated collection 
system [ACS] and collection by correspondence in service 
centers; (3) field investigations and collection efforts 
associated with delinquent taxpayer and business entity 
liabilities; (4) documents matching; (5) examination of 
taxpayer returns at service centers; (6) field exams to 
determine corresponding tax liabilities; (7) enforcement of 
criminal statutes related to violations of internal revenue 
laws and other financial crimes; (8) processing of reports for 
currency transactions over $10,000,000; (9) case settlement 
through the appeals process; (10) litigation; and (11) taxpayer 
advocate case processing.
    Research and Statistics of Income.--This activity funds 
research and statistical analysis support for the IRS. It 
provides annual income, financial, and tax data from tax 
returns filed by individuals, corporations, and tax-exempt 
organizations. Likewise it provides resources for market-based 
research to identify compliance issues, for conducting tests of 
treatments to address non-compliance, and for the 
implementation of successful treatments of taxpayer non-
compliant behavior.
    The Committee recommends an appropriation of $4,519,350,000 
for Tax Law Enforcement activities in fiscal year 2005. This is 
a reduction of $45,000,000 from the administration's request 
and a $348,106,000 increase from the fiscal year 2004 enacted 
level.
    New Compliance Funding for Fiscal Year 2005.--The Committee 
supports plans by the Internal Revenue Service to expand its 
focus in the Tax Law Enforcement area. This is an area where 
results have declined in recent years along with the IRS's 
ability to apply appropriate staff toward improvement. The 
administration's fiscal year 2005 budget request for the IRS 
recognized these deficiencies and has proposed significant new 
resources to shore up the IRS's compliance and enforcement 
programs. The budget for Treasury highlights key themes for the 
Department, one of which is to deter tax evasion and fraud by 
increasing criminal investigations and audits, ensure that the 
Tax System is fair for all, and maintain world class service. 
The Committee endorses the priority of improving compliance and 
has provided $153,010,000 in new initiative funding in the Tax 
Law Enforcement Appropriation to be dedicated exclusively to 
the efforts set out in the IRS justification proposals. With 
this initiative, the Committee has funded 99 percent of the 
total amount requested by the IRS for Tax Law Enforcement. In 
recent years, the IRS has consistently used the majority of its 
new compliance funding for purposes other than those that 
Congress intended. Specifically, funds have been used to cover 
budget shortfalls in base operations. Maintaining funding for 
targeted compliance efforts is critically important to 
addressing the concerns and priorities identified by the IRS in 
its fiscal year 2005 justifications to the Congress. The 
Committee is concerned and disappointed about the IRS's 
continued diversion of funds from enforcement activities to 
other accounts. The Committee is hopeful that the IRS is as 
committed as the Congress to ensuring proper resources are 
dedicated to enforcement.
    Therefore, to ensure that the IRS uses fiscal year 2005 
funding for compliance programs, the Committee has restricted 
the IRS's ability to use those funds and has limited the IRS 
transfer authority for the Tax Law Enforcement appropriation 
account to 3 percent. Beyond this amount, the IRS must receive 
prior approval from both the House and Senate Committees on 
Appropriations.
    Further, the Committee directs the Commissioner to submit 
quarterly reports to the House and Senate Committees on 
Appropriations that identify the IRS's progress, status, and 
results in implementing its proposed compliance initiatives. 
The report shall include: (1) baseline staffing levels and 
resources for each of the programs proposed for new staffing in 
fiscal year 2005, with the performance measures used by the IRS 
as indicators for evaluating success of the program; (2) 
initiative level staffing and resources for each program along 
with related performance results compared to targets set out in 
the IRS justification materials. The Committee expects that the 
performance indicators reported and the performance results and 
targets will be from the list provided in pages ``IRS, TLE-8 & 
9'' of the IRS fiscal year 2005 budget justifications submitted 
to the Congress in February 2004.
    National Research Program.--The National Research Program 
[NRP] is a comprehensive effort by the IRS to measure 
reporting, filing and payment compliance for different types of 
taxes and various sets of taxpayers. Data and compliance 
measures resulting from NRP will help the IRS detect 
noncompliance, reduce taxpayer burden, and support the IRS 
strategic planning and budget process. The NRP is unlike other 
earlier research programs. The current reporting compliance 
study of individual income tax consists of approximately 46,000 
randomly selected filed 1040 forms. These random returns will 
represent most 1040 filers, and the sample will focus on 
several high-income strata, including those with annual incomes 
over $1,000,000. The NRP office, which is a small 
organizational unit within the Research, Analysis and 
Statistics Division, consists of about 13 full time equivalent 
[FTE] positions with a base fiscal year 2005 operating budget 
around $1,500,000. NRP operations include a wide range of IRS 
activities which encompass the tax examiner and revenue agent 
staff needed for the audits. In fiscal year 2004, the IRS 
expects to devote about $89,500,000 (which includes 982 FTEs) 
to the NRP effort. Most of this $89,500,000 reflects the 
salaries and benefits of the examiners completing the bulk of 
the face-to-face audits for the NRP (and related) tax returns 
for the individual Form 1040 reporting compliance study.
    The IRS estimated costs for NRP will drop noticeably for 
fiscal year 2005, to $5,500,000 (including 39 FTEs). Fiscal 
year 2005 is a transition year for NRP, with only a few 
remaining individual returns left to examine for the individual 
reporting compliance study 1040 study, and with a new reporting 
compliance study just getting underway and involving 
examinations for a very limited number of flow-through entity 
returns. However, a comprehensive study of flow through entity 
returns beginning in fiscal year 2006 would ramp up total NRP 
costs significantly. The Committee understands the NRP office 
expects to have an initial review of the ``final'' raw data set 
by December 31, 2004. The Committee understands it will take a 
fair amount of analysis to draw real conclusions from the data 
and the best approaches to address them. The Committee is 
interested in the IRS's ability to electronically verify and 
audit capital gains information on schedule D filings. 
Therefore, the Committee encourages the IRS, if the NRP data 
shows the need for increased audit coverage, to explore all 
existing software possibilities for electronically verifying 
this data and developing the ability to incorporate the correct 
cost basis of Schedule D transactions into the examination 
process.
    Bank Secrecy Act.--The Committee continues to be 
discouraged by the IRS's repeated failure to incorporate the 
recommendations of the Tax Inspector General for Tax 
Administration as they relate to the IRS failures to improve 
the Bank Secrecy Act [BSA] Compliance Program. This is the 
second report in 3 years that documents the serious failure of 
the IRS to administer and enforce its responsibilities under 
the BSA. As a result, the Committee directs the Government 
Accountability Office [GAO] to conduct a thorough review and 
analysis of the IRS' management of the BSA compliance effort.
    The Committee is concerned about the ambiguous missions and 
responsibilities of the IRS and the Financial Crimes 
Enforcement Network [FinCEN] with respect to the provisions of 
the BSA. The dual administration of the Act by the IRS and 
FinCEN undermines accountability and ultimate responsibility 
over effective enforcement of the provisions of the BSA. As 
part of the GAO review of IRS's specific management of the 
compliance provisions of the BSA, the GAO should also review 
and report on the effectiveness of the dual role played by IRS 
and FinCEN in meeting the responsibilities of the BSA 
legislation.
    Motor Fuel Tax Evasion.--The Committee is concerned about 
substantial revenue losses due to motor fuel tax evasion 
[MFTE]. It is estimated that approximately $1,000,000,000 
annually may be lost in receipts to the Highway Trust Fund as a 
result of MFTE. These illegal activities are reducing the 
Highway Trust Fund at a time when Federal, State, and local 
transportation officials are increasingly concerned about the 
number of highway and transit infrastructure projects that the 
Trust Fund can sustain. It is clear that current Federal 
efforts to prevent and reduce MFTE abuses must be strengthened 
given the extent and complexity of the problem.
    The surface transportation reauthorization legislation 
proposes to substantially increase funding for IRS's MFTE 
database programs and enforcement activities from $31,000,000 
to $163,000,000. However, it is imperative to ensure that 
taxpayers will be getting an appropriate return on their 
investments given: (1) some of the problems IRS has experienced 
upgrading and maintaining its computer and automated systems; 
and (2) the continued existence of MFTE problems despite prior 
Highway Trust Fund investments in IRS enforcement activities. 
The Department of Transportation [DOT] has the responsibility 
for the administration of the Highway Trust Fund, and for 
improving the stewardship of trust fund resources as required 
by both this and the transportation oversight committees. The 
Committee believes the most effective governmental strategy for 
reducing MFTE losses will require a sustained, expanded, and 
robust effort supported by the resources and operational 
capabilities of both DOT and Treasury, working in conjunction 
with appropriate State and local authorities.
    The Committee requests that the Secretary of Treasury 
develop a strengthened MFTE compliance and enforcement strategy 
in cooperation with the Secretary of Transportation to include 
coordinating and conducting joint operational initiatives with 
DOT to prevent, detect, and shut down MFTE schemes across the 
country. The Committee is interested in knowing whether the 
Secretaries of Treasury and Transportation have any joint 
recommendations on legislative changes Congress may consider in 
order to enhance the enforcement program. The Committee 
requests the Secretary of Treasury to submit this strategy no 
later than 6 months following enactment, with the concurrence 
of the Secretary of Transportation. As part of such joint 
initiatives, and to the extent permitted by law, the Secretary 
of Treasury shall also, within 6 months after enactment, enter 
into a memorandum of understanding with the Secretary of 
Transportation, to provide DOT criminal investigators access to 
petroleum products tax compliance information received by 
Treasury. This information shall be limited to only business, 
non-personal tax records, unless otherwise appropriate.
    Given the concerns outlined above, the Committee requests 
that Inspector General for Tax Administration conduct an audit 
to evaluate prior and planned use of monies provided by DOT to 
the IRS, in consultation with the DOT Inspector General. 
Specifically, the Committee requests an audit of the IRS 
management of Motor Fuel Tax Evasion Project funds provided 
during fiscal years 1998 through 2004, and anticipated during 
fiscal year 2005 through 2009 to determine whether: (1) Excise 
Fuel Information Reporting System [ExFIRS] system requirements 
were properly defined to meet stakeholder needs, the system 
development was effectively managed to control costs, and the 
system schedule development was implemented appropriately; (2) 
Sufficient support is available for IRS' life-cycle cost 
estimates for ExFIRS, and (3) IRS used the HTF funding in 
accordance with TEA21 and other governing criteria.

                          INFORMATION SYSTEMS

Appropriations, 2004 \1\................................  $1,581,575,000
Budget estimate, 2005...................................   1,641,768,000
Committee recommendation................................   1,606,768,000

\1\ Reflects reduction of $9,387,000 pursuant to Division H, section 168 
of Public Law 108-199.

    This appropriation provides for Servicewide information 
systems operations and maintenance, and investments to enhance 
or develop business applications for the IRS Business Units. 
The appropriation includes staffing, telecommunications, 
hardware and software (including commercial-off-the-shelf), and 
contractual services.
    The Committee recommends an appropriation of $1,606,768,000 
for information systems activities in fiscal year 2005. This is 
a reduction of $35,000,000 from the administration's request 
and a $25,193,000 increase over the fiscal year 2004 enacted 
level. The accompanying bill specifies that $200,000,000 of the 
recommended funding level is available until September 30, 
2006.
    The Committee's recommendation also assesses selected 
reductions to this account due to budget constraints. The 
Committee recommendation does not approve the program 
enhancement requested in order to devote resources toward what 
we view as one of the highest priorities for fiscal year 2005, 
improvement of compliance and enforcement activities. The IRS 
has estimated over $33,000,000 in expected internal savings 
from base mining, which will be available for realignment to 
other areas within the appropriation during fiscal year 2005. 
The Committee is skeptical of the IRS's ability to fully 
realize all the savings identified in this appropriation 
account and looks forward to a full report from the Service on 
the proposed resource realignments, as well as results from 
efficiency savings estimated at $2,000,000.
    The Committee believes that funds provided under the 
Information Systems account, particularly for development-
related activities, should be managed with the same diligence 
and financial controls as those activities funded through the 
Business Systems Modernization account. In addition, the 
Committee expects that as the Business Systems Modernization 
moves an increasing number of major projects into deployment, 
the Service will realign development activities funded under 
the Information Systems account so that they are managed and 
integrated formally into Business Systems Modernization 
activity.

                     BUSINESS SYSTEMS MODERNIZATION

Appropriations, 2004 \1\................................    $387,699,000
Budget estimate, 2005...................................     285,000,000
Committee recommendation................................     125,000,000

\1\ Reflects reduction of $2,301,000 pursuant to Division H, section 168 
of Public Law 108-199.

    This account provides for revamping business practices and 
acquiring new technology. The agency is using a formal 
methodology to prioritize, approve, fund, and evaluate its 
portfolio of business systems modernization investments. This 
methodology is designed to enforce a documented, repeatable, 
and measurable process for managing investments throughout 
their life cycle. The process is reviewed by the Government 
Accountability Office on a regular basis as part of the 
submission requirements for expenditure plans to the House and 
Senate Committees on Appropriations. The expenditure plan 
approval process prior to the use of appropriated funds 
continues for fiscal year 2005.
    The Committee continues to believe that there is no more 
imperative requirement for the IRS than to modernize its 
antiquated information system and agrees with the IRS that the 
program is one of the largest, most visible, and most sensitive 
modernization programs ever undertaken. However, the program 
has experienced major problems with bringing to fruition the 
program envisioned by the Congress to better manage 
comprehensive tax filing, account management, and enforcement 
information to better support the full range of tax 
responsibilities for the American taxpayer. From the almost 
$1,700,000,000 appropriated to date, the deliverables have not 
been in the core tax system modernizations and database 
requirements considered the highest priority and the most 
critical to the ultimate success of the program. Significant 
cost overruns and repeated schedule delays have plagued 
critical projects, such as the Customer Account Data Engine 
[CADE], the Integrated Financial System [IFS], and the 
Custodial Accounting Project [CAP]. In testimony before the 
Committee in support of the fiscal year 2005 budget, the 
Committee learned the true status of deliverables for the 
Business Systems Modernization effort. The IRS reported that, 
``The IRS and PRIME have not delivered any BSM projects on time 
and within the original budget estimates.''
    The IRS has delayed the CADE program four times. It 
originally planned to deliver the first release of CADE in 
December 2001. The IRS then rescheduled it for August 2003, and 
later rescheduled it for April 2004. The IRS recently finalized 
the re-planning effort for CADE and set the latest delivery 
date for September 2004. While CADE is farther along than the 
earlier tax system modernization program in replacing a 
component of the master file, there are still major hurdles to 
overcome. These continued delays of critical systems central to 
the success of BSM are of major concern to the Committee. The 
Committee believes stronger focus needs to be directed to 
completing these core systems and meeting original expectations 
for the Business Systems Modernization effort.
    In reviewing the current progress on key projects driving 
the Business Systems Modernization, the Committee has noted the 
cost and time milestone results for the major projects in the 
BSM account. That information identifies key schedule slippages 
and underscores the importance of re-focusing and dedicating 
targeted efforts toward the most critical projects, with the 
CADE project being first and foremost in that targeting. The 
following chart sets out the results of the Committee's review 
for major projects of the BSM program.

                                                      IRS/BSM COST INCREASES AND SCHEDULE OVERRUNS
                                                                 [Dollars in thousands]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                    Initial
                                             Initial      Actual/        Cost         Est.          Actual/Revised Est.
                 Project                    Est. Cost     Revised      Increase    Completion         Completion Date               Schedule Delay
                                                         Est. Cost                    Date
--------------------------------------------------------------------------------------------------------------------------------------------------------
Customer Communications [CC] 2001........      $41,110      $46,420      +$5,310      5/31/01  2/26/02 (Full Deployment)...  +9 mo
Customer Relationship Management Exam            9,313        7,375  ...........      6/30/02  9/30/02 (Full Deployment)...  +3 mo
 [CRM Exam].
Security and Technology Infrastructure          33,734       41,287       +7,553      8/31/01  1/31/02 (Initial Operation).  +5 mo
 Release [STIR] Release.
Internet Refund/Fact of Filing [IR/FoF]..       13,509       26,432      +12,923      7/31/02  9/26/03 (Full Deployment)...  +14 mo
Human Resources [HR] Connect Release.....       10,000       10,200         +200     12/31/02  12/31/02 (Initial Operation)  N/A
E-Services...............................       44,045      130,281      +86,236     10/31/03  4/30/05 (Full Deployment)...  +18 mo
Modernized e-File [MeF] Release..........       29,246       46,303      +17,057     11/15/03  3/31/04 (Initial Operation).  +4.5 mo
Customer Account Data Engine [CADE]--           61,145       97,905      +36,760     12/31/02  6/30/05 (Full Deployment)...  +30 mo
 Individual Master File [IMF] Release.
Custodial Accounting Project [CAP]              47,161      119,219      +72,058      1/31/03  TBD (Full Deployment).......  TBD
 Release.
Integrated Financial System [IFS] Release       99,870      153,786      +53,916      3/31/04  TBD (Full Deployment).......  TBD
Custom Account Mgmt [CAM] Release........       57,578          TBD          TBD     10/31/04  TBD (Initial Operation).....  TBD
--------------------------------------------------------------------------------------------------------------------------------------------------------

    A modernized IRS is the only way to substantially improve 
service to the taxpayers and facilitate the collection of taxes 
in an efficient manner. To this end, the Committee is pleased 
with the tighter focus being brought to this program effort as 
presented in the fiscal year 2005 budget request. However, the 
continued delays for the high priority core projects suggests 
that such focus needs to go even further to ensure delivery of 
the most essential components that lead to success of the IRS 
modernization program. The most critical of the delayed 
projects is the CADE project. In testimony before the Committee 
on the fiscal year 2005 budget request, the IRS stated:

    ``The delivery of the CADE project is particularly 
important because--like the new online technical infrastructure 
that the IRS deployed--CADE is a core fundamental component of 
the modernized systems. As such, CADE is the IRS's highest 
priority technology project.''

    It is unfortunate that the IRS is not significantly further 
along with the strategy to modernize its information systems, 
particularly with the centralized database CADE project which 
has been delayed several times beyond its original scheduled 
delivery date. The Committee believes that the continued delay 
in the implementation of the main CADE system has the potential 
to further delay the eventual completion and expected benefits 
in operations and service of the IRS total modernization 
program. It is imperative that resources be focused on full 
development of the CADE effort as a first priority and, 
therefore, the Committee is recommending a resource level 
consistent with that view.
    The Committee recommends an appropriation of $125,000,000 
for business systems modernization. This is a reduction of 
$160,000,000 from the administration's request and a 
$262,669,000 decrease from the fiscal year 2004 enacted level.
    With the goal of focusing on the IRS BSM efforts even more 
directly, the Committee recommendation provides fewer funds 
overall than the initial request, and directs that the funding 
provided be allocated to highest priorities. The Committee has 
included the full $65,000,000 requested by the IRS for the 
continued development of the CADE project in fiscal year 2005. 
This is the IRS's highest priority technology project and needs 
to be the first focus of new funding in 2005. To provide 
continued support for other related BSM projects underway, the 
Committee recommends an additional $60,000,000 above the CADE 
requirements to fund on-going activities of other BSM 
developmental projects. The top priority for the IRS in the 
coming year should be for the continued development and 
implementation of the CADE design, allocating further funding 
to the CADE effort from other BSM available funds, if 
necessary, in order to keep the centerpiece of BSM on schedule.

                     BUSINESS SYSTEMS MODERNIZATION

                              (RESCISSION)

Rescissions, 2004 \1\...................................................
Budget estimate, 2005...................................................
Committee recommendation................................   -$140,000,000

\1\ Reflects reduction of $2,301,000 pursuant to Division H, section 168 
of Public Law 108-199.

    The Committee recommends a rescission of unobligated 
balances from Business Systems Modernization of $140,000,000 
out of funds appropriated in fiscal year 2004. The Committee 
notes that these funds are available and a spending plan for 
the release of these funds has not been provided to the 
Congress.

               HEALTH INSURANCE TAX CREDIT ADMINISTRATION

Appropriations, 2004 \1\................................     $34,794,000
Budget estimate, 2005...................................      34,841,000
Committee recommendation................................      34,841,000

\1\ Reflects reduction of $207,000 pursuant to Division H, section 168 
of Public Law 108-199.

    This appropriation provides operating funds to administer 
the advance payment feature of a new Trade Adjustment 
Assistance health insurance tax credit program to assist 
dislocated workers with their health insurance premiums. The 
tax credit program was enacted by the Trade Act of 2002 (Public 
Law 107-210) and became effective in August 2003.
    The Committee recommends an appropriation of $34,841,000 
for the Health Insurance Tax Credit Administration. This amount 
is the same as the administration's request and a $47,000 
increase from the fiscal year 2004 enacted level.

              GENERAL PROVISIONS--INTERNAL REVENUE SERVICE

    Section 201 authorizes the IRS to transfer up to 5 percent 
of any appropriation made available to the agency in fiscal 
year 2005 to any other IRS account, with the exception of the 
Tax Enforcement account, which is limited to 3 percent. The IRS 
is directed to follow the Committee's reprogramming procedures 
outlined earlier in this report.
    Section 202 maintains a training program in taxpayers' 
rights and cross-cultural relations.
    Section 203 requires the IRS to institute and enforce 
policies and procedures which will safeguard the 
confidentiality of taxpayer information.
    Section 204 directs that funds shall be available for 
improved facilities and increased manpower to provide 
sufficient and effective 1-800 help line service for taxpayers. 
The Commissioner shall continue to make this a priority.

                       DEPARTMENT OF THE TREASURY


                           General Provisions

    Section 210 authorizes certain basic services within the 
Treasury Department in fiscal year 2005, including purchase of 
uniforms; maintenance, repairs, and cleaning; purchase of 
insurance for official motor vehicles operated in foreign 
countries; and contracts with the Department of State for 
health and medical services to employees and their dependents 
serving in foreign countries.
    Section 211 authorizes transfers, up to 2 percent, between 
Departmental Offices, Office of Inspector General, Treasury 
Inspector General for Tax Administration, 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 212 authorizes transfer, up to 2 percent, between 
the Internal Revenue Service and the Treasury Inspector General 
for Tax Administration under certain circumstances.
    Section 213 requires the purchase of law enforcement 
vehicles is consistent with Departmental vehicle management 
principles.
    Section 214 prohibits the Department of the Treasury and 
the Bureau of Engraving and Printing from redesigning the $1 
Federal Reserve Note.
    Section 215 authorizes the Secretary of the Treasury to 
transfer funds from Salaries and Expenses, Financial Management 
Service, to the Debt Services Account as necessary to cover the 
costs of debt collection. Such amounts shall be reimbursed to 
the Salaries and Expenses account from debt collections 
received in the Debt Services Account.
    Section 216 amends Section 122 of Public Law 105-119 (5 
U.S.C. 3104 note), by striking ``6 years'' and inserting ``7 
years''.
    Section 217 requires prior approval for the construction 
and operation of a museum by the United States Mint.
    Section 218 prohibits the merger of the United States Mint 
and the Bureau of Engraving and Printing without prior approval 
of the committees of jurisdiction.
    Section 219 amends and makes permanent the Treasury 
Franchise Fund.
    Section 220 amends the Check Forgery Insurance Fund (31 
U.S.C. 3343) to designate the fund as a funding source which 
may be charged for losses Treasury incurs, including (1) 
payments on counterfeit or altered Treasury checks and (2) 
administrative errors in the check or electronic payment 
processes. The provision also permits the Check Forgery 
Insurance Fund to fund pre-existing uncollectible losses that 
result from payments which Treasury made in the past in due 
course and without negligence.
    Section 221 requires a report from the Secretary of the 
Treasury related to currency manipulation.
    Section 222 provides for a prohibition on the use of funds 
related to enforcement of the travel ban to Cuba.
    Section 223 allows the Secretary to reprogram up to 
$2,000,000 in unobligated balances under the heading 
``Departmental Offices, Salaries and Expenses'' for the Office 
of Terrorism and Financial Intelligence and establishes the 
office.

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

                     Compensation of the President

Appropriations, 2004....................................        $450,000
Budget estimate, 2005...................................         450,000
Committee recommendation................................         450,000

    This appropriation provides for the compensation of the 
President, including an expense allowance as authorized by 3 
U.S.C. 102.
    The Committee recommends an appropriation of $450,000 for 
Compensation of the President, including an expense allowance 
of $50,000. This is the same as the fiscal year 2004 enacted 
level and the same as the budget estimate. The expense account 
is for official use as authorized by Title 3 of U.S. Code and 
is not considered taxable to the President. The bill specifies 
that any unused amount shall revert to the Treasury consistent 
with 31 U.S.C. 1552.

                           White House Office


                         SALARIES AND EXPENSES

Appropriations, 2004 \1\................................     $68,760,000
Budget estimate, 2005...................................      63,698,000
Committee recommendation................................      63,698,000

\1\ Reflects reduction of $408,000 pursuant to Division H, section 168 
of Public Law 108-199.

    The Salaries and Expenses account of the White House Office 
provides staff assistance and administrative services for the 
direct support of the President. The office also serves as the 
President's representative before the media. In accordance with 
3 U.S.C. 105, the office also supports and assists the 
activities of the First Lady.
    The Committee recommends an appropriation of $63,698,000 
for White House Office Salaries and Expenses. The 
recommendation is the same as the budget request and is 
$5,062,000 less than the fiscal year 2004 enacted level.

                 Executive Residence at the White House


                           OPERATING EXPENSES

Appropriations, 2004 \1\................................     $12,427,000
Budget estimate, 2005...................................      12,760,000
Committee recommendation................................      12,760,000

\1\ Reflects reduction of $74,000 pursuant to Division H, section 168 of 
Public Law 108-199.

    These funds provide for the care, maintenance, 
refurnishing, improvement, heating, and lighting, including 
electrical power and fixtures, of the Executive Residence.
    The Committee recommends an appropriation of $12,760,000 
for the Executive Residence at the White House. The Committee 
recommendation is $330,000 more than the fiscal year 2004 
enacted level and the equal to the budget estimate. The 
accompanying bill continues certain restrictions on 
reimbursable expenses for use of the Executive Residence that 
were enacted for fiscal year 2004.

                   WHITE HOUSE REPAIR AND RESTORATION

Appropriations, 2004 \1\................................      $4,200,000
Budget estimate, 2005...................................       1,900,000
Committee recommendation................................       1,900,000

\1\ Reflects reduction of $25,000 pursuant to Division H, section 168 of 
Public Law 108-199.

    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 the capital improvement projects at the 
Executive Residence at the White House.
    The Committee recommends an appropriation of $1,900,000 for 
White House Repair and Restoration, the same amount as the 
budget request and a reduction of $2,300,000 from the fiscal 
year 2004 enacted level. The recommendation assumes funding of 
$1,700,000 for replacement of the existing cooling towers and 
associated electrical, mechanical, and control equipment; 
$100,000 for moving and related expenses associated with the 
possible change of administration; and $100,000 for the First 
Family to redecorate the living quarters in the White House.

                      Council of Economic Advisers


                         SALARIES AND EXPENSES

Appropriations, 2004 \1\................................      $4,475,000
Budget estimate, 2005...................................       4,040,000
Committee recommendation................................       4,040,000

\1\ Reflects reduction of $27,000 pursuant to Division H, section 168 of 
Public Law 108-199.

    The Council of Economic Advisors 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 the preparation of the 
annual Economic Report of the President to Congress.
    The Committee recommends an appropriation of $4,040,000 for 
salaries and expenses of the Council of Economic Advisers. This 
amount is the same as the budget request and is $435,000 less 
than the fiscal year 2004 enacted level.

                      Office of Policy Development


                         SALARIES AND EXPENSES

Appropriations, 2004 \1\................................      $4,085,000
Budget estimate, 2005...................................       3,592,000
Committee recommendation................................       2,392,000

\1\ Reflects reduction of $24,000 pursuant to Division H, section 168 of 
Public Law 108-199.

    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.
    The Committee recommends $2,392,000 for the Office of 
Policy Development, which is $1,693,000 less than the fiscal 
year 2004 enacted level and $1,200,000 less than budget 
request. The Committee recommendation makes this adjustment 
based on the amount of funding that has lapsed in this account 
in recent years.

                       National Security Council


                         SALARIES AND EXPENSES

Appropriations, 2004 \1\................................     $10,489,000
Budget estimate, 2005...................................       8,932,000
Committee recommendation................................       8,932,000

\1\ Reflects reduction of $62,000 pursuant to Division H, section 168 of 
Public Law 108-199.

    The National Security Council advises the President in 
integrating domestic, foreign, and military policies relating 
to the national security.
    The Committee recommends an appropriation of $8,932,000 for 
the salaries and expenses of the National Security Council 
[NSC]. This amount is the same as the budget request and 
$1,557,000 less than the fiscal year 2004 enacted level.

                        Office of Administration


                         SALARIES AND EXPENSES

Appropriations, 2004 \1\................................     $82,337,000
Budget estimate, 2005...................................      85,676,000
Committee recommendation................................      92,869,000

\1\ Reflects reduction of $489,000 pursuant to Division H, section 168 
of Public Law 108-199.

    The Office of Administration's mission is to provide high-
quality, 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.
    The Committee has provided $92,869,000 to the Office of 
Administration for fiscal year 2005. In addition to the 
recommended level of funding, the Office of Administration 
receives reimbursements for information management support and 
general office services.
    Core Enterprise Services Program.--The Committee has 
provided $18,530,000 for the core enterprise services program, 
an increase of $7,193,000 above the budget request. The budget 
request proposes to transfer non-discretionary GSA rent and 
rent-related costs from White House Offices, Office of Policy 
Development, Council of Economic Advisors, and National 
Security Council to the Office of Administration to provide for 
central management. To achieve greater administrative and cost 
efficiencies, the Committee has included the Office of 
Management and Budget in the core enterprise services program 
and funding above the budget estimate represents OMB's costs 
for rent, after-hours utilities, and prorated costs of heath 
unit operations.

                            The White House


                         SALARIES AND EXPENSES

Appropriations, 2004....................................................
Budget estimate, 2005...................................    $181,048,000
Committee recommendation................................................

    The budget request proposes a consolidation and financial 
realignment of the Executive Office of the President [EOP] 
accounts that directly support the President. The initiative 
would consolidate annual appropriations for the Compensation of 
the President and White House Office, Executive Residence, 
White House Repair and Restoration, the Office of Policy 
Development, the Council of Economic Advisers, the National 
Security Council, and the Office of Administration, into a 
single appropriation called ``The White House.''
    The budget request also includes a related general 
provision in the government-wide general provisions that would 
provide for a 10 percent transfer authority among all 
appropriations that comprise the EOP, except for certain 
counterdrug accounts.
    The Committee recommends funding for the offices that 
directly support the President according to the existing 
structure of accounts. This arrangement has served the 
Committee's and the public's need for transparancy in the 
funding and operation of these important functions while also 
providing the executive branch with the flexibility it needs to 
reprogram funds within accounts to address unforeseen budget 
needs. As noted in discussions with administration officials in 
past years, at no time has the Committee rejected an 
administration's request to reprogram existing funds within 
these accounts.

                    Office of Management and Budget


                         salaries and expenses

Appropriations, 2004 \1\................................     $66,763,000
Budget estimate, 2005...................................      76,565,000
Committee recommendation................................      68,411,000

\1\ Reflects reduction of $396,000 pursuant to Division H, section 168 
of Public Law 108-199.

    The Office of Management and Budget [OMB] assists the 
President in the discharge of his budgetary, management, and 
other executive responsibilities.
    The Committee recommends an appropriation of $68,411,000 
for the Office of Management and Budget which is $1,648,000 
more than the fiscal year 2004 enacted level.
    FASAB and JFMIP Contributions.--The Committee denies the 
request to transfer funding to the Department of the Treasury 
that supports the Federal Accounting Standards Advisory Board 
[FASAB] and the Joint Financial Management Improvement Program 
[JFMIP]. The justification for consolidating OMB's annual 
payments to FASAB and JFMIP in the Treasury Department is 
exceptionally weak and rests on the desire to include the 
expense in the organization where the services are contracted 
rather than in the organization that initiates the expense. 
This proposal is inconsistent with the manner in which similar 
payments are treated in other agencies' budgets and leaves the 
impression that the transfer of these payments is being 
requested to mask the actual amount of resources for fiscal 
year 2005. The recommendation assumes an adjustment of 
$639,000.
    Core Enterprise Services.--The Committee recommendation 
transfers $7,193,000 back to the Office of Administration to 
consolidate OMB's rent, after-hour utilities, and health unit 
costs in the core enterprise services program. The Committee 
believes it is important to include these funds in the core 
enterprise services program to maximize the gains in cost 
savings, administrative efficiencies, and improved fiscal 
management. Keeping as many entities in the Core Enterprise 
Services program reduces the number of individual bills that 
have to be processed and reconciled, reduces the administrative 
burden on preparing additional interagency agreements, and also 
reduces the duplicate administrative structures inherent in a 
decentralized environment. The Committee continues to believe 
that this activity is best suited for the Office of 
Administration, not the Office of Management and Budget. 
Therefore, funds have been transferred out of the Office of 
Administration, as proposed in the budget request.
    Personnel Funding Increases.--The Committee defers 
$1,600,000 of the requested increase to hire additional 
personnel to reach the currently authorized level of full-time 
equivalent positions. The recommendation is due to budget 
constraints.
    OMB Review of Water Resource Projects.--The Secretary of 
the Army and the Chief of Engineers are responsible for 
evaluating and determining if a water resources project or 
study is in compliance with applicable laws, regulations, and 
requirements relevant to water resource planning. The Committee 
believes, however, that it is appropriate for the Office of 
Management and Budget [OMB] to examine each water resource 
report, proposal, or plan for consistency with the budgetary 
policy of the President.
    Unfortunately, the Committee is aware that numerous water 
resource projects that have been fully vetted through the 
lengthy water resource planning process established by the 
executive branch are being held up by the Office of Management 
and Budget for technical reviews or other policy questions that 
are unrelated to budgetary matters. The Committee has found 
that OMB does not have the proper staffing or expertise to make 
these types of decisions. In addition, the Committee is deeply 
concerned that water resource matters are being unnecessarily 
delayed for extended periods of time, sometimes without further 
action ever being taken because of such obstinacy.
    The Committee has included a provision to prohibit the use 
of any funds by OMB for any review of a water resource project 
other than for conformance with budgetary policies of the 
executive branch. The Committee has also included language that 
specifies that OMB shall have no more than 60 days to review 
water resource reports for compliance with budgetary policies. 
The bill directs OMB to notify Congress when the reports are 
received for review, and the Committee will assume OMB 
concurrence if the reports have not been transmitted to the 
relevant committees 15 days after the end of the OMB review 
period.
    Harry S. Truman Memorial Scholarships.--The Committee 
strongly supports the Truman Scholarship program and its 
original intentions. The Committee is concerned, however, that 
the regulations regarding awarding a scholarship to at least 
one qualified applicant from each State has been violated 
numerous times in recent years. The Committee directs the Board 
of the Truman Scholarship program to strictly adhere to its 
statutory mandate to ``assure that at least one Truman scholar 
shall be selected each year from each State in which there is 
at least one resident applicant who meets the minimum criteria 
established by the Foundation.''

                 Office of National Drug Control Policy

    The Office of National Drug Control Policy [ONDCP], 
established by the Anti-Drug Abuse Act of 1988, and 
reauthorized by Public Law 105-277, is charged with developing 
policies, objectives and priorities for the National Drug 
Control Program. In addition, ONDCP administers the Counterdrug 
Technology Assessment Center, the High Intensity Drug 
Trafficking Areas program, the National Youth Anti-Drug Media 
Campaign, the Drug Free Communities Program and several other 
related initiatives.

                         SALARIES AND EXPENSES

Appropriations, 2004 \1\................................     $27,831,000
Budget estimate, 2005...................................      27,609,000
Committee recommendation................................      27,000,000

\1\ Reflects reduction of $165,000 pursuant to Division H, section 168 
of Public Law 108-199.

    This account provides funding for personnel compensation, 
travel, and other basic operations of the Office, and for 
general policy research to support the formulation of the 
National Drug Control Strategy.
    The Committee recommends an appropriation of $27,000,000 
for ONDCP's salaries and expenses. Within this amount the 
Committee provides the following funding levels:

------------------------------------------------------------------------
                                                     Amount        FTEs
------------------------------------------------------------------------
Office of the Director.........................      $3,315,500       12
Office of the Deputy Director..................       1,125,500        6
Office of Management and Administration........       5,840,000       16
Office of General Counsel......................       1,065,000        6
Office of Public Affairs.......................       2,130,000        7
Office of Legislative Affairs..................         700,000        6
Counterdrug Technology Assessment Center.......         760,000        4
Office of Planning and Budget..................       2,700,000       16
Office of Demand Reduction.....................       1,550,000        9
Office of National Youth Anti-Drug Media                935,000        6
 Campaign......................................
Office of State and Local Affairs..............       2,554,000       15
Office of Supply Reduction.....................       2,310,000       13
Office of Intelligence.........................         665,000        4
Policy Research................................       1,350,000  .......
------------------------------------------------------------------------

    Rising Inhalant Abuse Among Young Adolescents.--The 
Committee is concerned by the reported rise in inhalant abuse 
by middle school-age youth, even as overall teenage drug use 
has steadily declined. The partnership attitude tracking study 
[PATS] recently conducted by the Partnership for a Drug Free 
America [PDFA] indicates that low risk perception levels among 
young adolescents has led to an 18 percent increase in the 
abuse of inhalants by eighth graders and a 44 percent increase 
among sixth graders. PATS attributes this decreased risk 
perception to the shifting of educational efforts from 
inhalants to emerging drug threats such as Ecstasy and 
methamphetamine. The Committee directs ONDCP to utilize a 
portion of its policy research funding to explore ways in which 
to increase inhalant outreach activities without compromising 
other ongoing educational efforts and to report its findings to 
the House and Senate Committees on Appropriations within 180 
days of the enactment of this Act.

                COUNTERDRUG TECHNOLOGY ASSESSMENT CENTER

Appropriations, 2004 \1\................................     $41,752,000
Budget estimate, 2005...................................      40,000,000
Committee recommendation................................      42,000,000

\1\ Reflects reduction of $248,000 pursuant to Division H, section 168 
of Public Law 108-199.

    The Counterdrug Technology Assessment Center [CTAC] serves 
as the central counterdrug research and development 
organization for the Federal Government pursuant to the Office 
of National Drug Control Policy Reauthorization Act of 1998 
(Title VII of Division C of Public Law 105-277). CTAC 
encompasses two separate functions: (1) the Research and 
Development program [R&D], which supports improvements to 
counterdrug capabilities that transcend the need of any single 
Federal agency; and (2) the Technology Transfer Program [TTP], 
which provides state-of-the-art, affordable, easily integrated 
and maintainable tools to enhance the capabilities of State and 
local law enforcement agencies for counterdrug missions.
    The Committee recommends an appropriation of $42,000,000 
for CTAC, which is $2,000,000 more than the requested amount 
and $247,800 more than the fiscal year 2004 enacted level. This 
funding includes $18,000,000 for R&D and $24,000,000 for the 
TTP.
    Prior to the obligation of any of these funds, the 
Committee directs CTAC's chief scientist to submit to the House 
and Senate Committees on Appropriations a detailed itemization 
of anticipated expenditures. The Committee also directs the 
chief scientist to continue to provide biannual reports on the 
priority counterdrug enforcement research and development 
requirements identified by CTAC and on the status of resulting 
projects funded thereby. These reports should continue to 
provide the same level of detail that was provided in the March 
1, 2004, CTAC report to Congress.
    Research and Development.--The Committee remains concerned 
that a large proportion of CTAC's R&D budget is devoted to 
technology acquisition rather than actual research. This 
concern is compounded by the fact that CTAC has already 
committed more than $13,000,000 of future years' funding to 
such purchases. The Committee therefore directs CTAC to 
complete all ongoing technology acquisition R&D projects with 
the funding provided in fiscal year 2005. Thereafter, CTAC is 
directed to adhere its R&D spending to those research efforts 
outlined in its demand reduction vision statement as well as 
its supply reduction priorities listing included in appendices 
E and F, respectively, of its March 1, 2004, CTAC report.
    The Committee notes that CTAC's R&D efforts may be too 
heavily weighted in favor of demand reduction research 
activities and against supply reduction research activities. 
The Committee directs CTAC to consider more equally funding all 
R&D activities in the future and to report on its progress in 
this regard in its next CTAC report.
    The Committee notes that nearly $2,000,000 in fiscal year 
2004 CTAC R&D funding remains unobligated in spite of CTAC's 
overcommittment of these resources and the unmet demand for 
CTAC funding in this and other areas. The Committee therefore 
directs CTAC to expeditiously obligate all of its R&D funding 
exclusively in pursuit of the functions for which it has been 
appropriated. The Committee further directs CTAC to report to 
the House and Senate Committees on Appropriations within 30 
days of enactment of this Act on the reasons for the delay in 
obligating these funds.
    Technology Transfer Program.--The Committee fully supports 
the continuation of the TTP and provides $24,000,000 for its 
operation in fiscal year 2005. The Committee believes that this 
program is vital to State and local law enforcement in their 
efforts to combat drug-related crimes and is encouraged by the 
positive reception this program has received by State and local 
law enforcement agencies. Current requests for technology 
transfers continue to outpace resources by nearly three to one. 
The Committee expects that CTAC will conduct further outreach 
to State and local agencies to educate them about the TTP. 
Finally, the Committee encourages CTAC to work with private 
industry to make their developed technology available to State 
and local law enforcement agencies and to report on the 
progress of these efforts in its next CTAC report to Congress.
    In order to maintain a clear understanding of CTAC's 
ability to meet demand for the TTP, the Committee directs that 
the fiscal year 2006 budget justification include a specific 
accounting of the total number of grant applications received 
and the number awarded in the previous year.

                  Funds Appropriated to the President


                     FEDERAL DRUG CONTROL PROGRAMS

                 HIGH-INTENSITY DRUG TRAFFICKING AREAS

                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2004 \1\................................    $225,015,000
Budget estimate, 2005...................................     208,350,000
Committee recommendation................................     228,350,000

\1\ Reflects reduction of $1,335,000 pursuant to Division H, section 168 
of Public Law 108-199.

    The High Intensity Drug Trafficking Areas [HIDTA] program 
was established by the Anti-Drug Abuse Act of 1988, as amended, 
and the Office of National Drug Control Policy's 
reauthorization (Public Law 105-277) to provide assistance to 
Federal, State and local law enforcement entities operating in 
those areas most adversely affected by drug trafficking.
    The Committee recommends an appropriation of $228,350,000 
for the HIDTA program. The Committee directs that funding shall 
be provided for the existing HIDTAs at no less than the fiscal 
year 2004 initial allocation level, unless the Director submits 
to the House and Senate Committees on Appropriations, and the 
Committees approve, a request for reprogramming of the funds 
based on clearly articulated priorities for the HIDTA program, 
as well as published ONDCP performance measures of 
effectiveness. Furthermore, the Committee directs the Director 
to take appropriate steps to ensure that the HIDTA funds are 
transferred to the appropriate drug control agencies 
expeditiously.
    In allocating HIDTA funds, the Committee expects the 
Director of ONDCP to ensure that the entities receiving these 
limited resources make use of them strictly for implementing 
the strategy for each HIDTA, taking into consideration local 
conditions and resource requirements. These funds should not be 
used to supplant existing support for ongoing Federal, State, 
or local drug control operations normally funded out of the 
operating budgets of each agency.
    Allocation of Additional Funds.--The Committee is 
disappointed that ONDCP continues to seek to distribute those 
limited HIDTA funds available beyond the initial allocation in 
support of pursuing drug trafficking organizations [DTOs] 
included on the Federal consolidated priority organizational 
target [CPOT] list. Such efforts, which target a small number 
of the largest international DTOs, already receive a 
substantial commitment of resources from Federal counterdrug 
enforcement agencies. While there may be some correlation 
between the methods and goals of the HIDTA program and Federal 
CPOT efforts, the Committee remains unconvinced that use of 
HIDTA resources in support of CPOT enforcement is an 
appropriate expenditure of these funds. HIDTAs are designated 
to address regional and local problems with illegal drug 
trafficking and use. Most HIDTAs face drug threats that are, at 
most, tangentially international in nature. Accordingly, the 
Committee has included a provision in the bill prohibiting the 
expenditure of HIDTA funds in support of CPOT activities.
    The Committee directs ONDCP to refocus its distribution of 
HIDTA funding in excess of the initial allocation on enhancing 
the domestic interdiction of illegal drugs by launching 
additional investigations, by disrupting and dismantling local 
mid-level drug trafficking organizations through a systematic 
and coordinated effort and by supporting the various HIDTA 
Intelligence Support Centers throughout the country.

                            APPALACHIA HIDTA

    The Committee remains concerned that the three Appalachia 
HIDTA States, West Virginia, Kentucky, and Tennessee, 
comprising approximately 4 percent of the total U.S. 
population, produce some of the most potent marijuana available 
and over 34.5 percent of the marijuana eradicated in the United 
States in 2003. For 2003, the West Virginia National Guard, 
which has mounted a vigorous counterdrug program in cooperation 
with the Appalachia HIDTA, estimates that the value of the 
eradicated marijuana crop in the 12 West Virginia HIDTA 
counties is over $155,000,000. Therefore, the Committee directs 
ONDCP to maintain funding at no less than fiscal year 2004 
initial allocation to continue to combat this threat.

                       NEW YORK/NEW JERSEY HIDTA

    The Committee is concerned about the increased level of 
drug trafficking and distribution in upstate New York. The 
geography of the New York region has bred a drug trafficking 
problem that is international, national and regional in scope. 
Drug investigations have revealed a number of links between 
CPOT/RPOTs and the upstate New York region. The success of the 
downstate New York/New Jersey HIDTA has led to a significant 
increase in trafficking of cocaine and heroin from the New York 
City area north and west to Albany, Syracuse, Rochester and 
Buffalo, fueling a growth in gang related crime. There is a 
significant rise in shipments of potent Canadian produced 
hydroponic marijuana into the United States through Buffalo and 
other northern ports of entry. There is also an increase in 
domestic marijuana production and trafficking in upstate New 
York, as well as the growth of local methamphetamine 
laboratories. Additional funding would allow New York to combat 
these threats and would enable ONDCP to designate additional 
counties, including counties in upstate New York, as part of 
the New York/New Jersey HIDTA where appropriate. The Committee 
directs ONDCP to work with the affected counties to determine 
whether they meet the statutory criteria required for 
designation as a HIDTA. The Committee directs ONDCP to ensure 
that funding for the New York/New Jersey HIDTA is provided at a 
level no less than the fiscal year 2004 initial allocation and 
to work with the Executive Board of the New York/New Jersey 
HIDTA to assess the needs of the HIDTA and to provide 
additional resources if necessary.

                            NORTHWEST HIDTA

    Methampetamine is the primary illicit drug threat to the 
State of Washington. Its widespread use and resulting 
addiction, combined with the overwhelming availability of high 
purity, low cost methamphetamine, is cause for serious concern. 
Moreover, the spread of ICE methamphetamine with increased 
purity levels has increased throughout Washington State and the 
seizures of Ephedrine--a meth precursor--continue to increase 
at the Canadian border.
    Marijuana is the most readily available and widely abused 
illicit drug in Washington State. Canada-produced marijuana, 
commonly known as ``BC Bud'' is more readily available than 
Mexico-produced marijuana. Cocaine and heroin also represent 
significant threats.
    Northwest HIDTA is having an impact in these areas. The 
Committee directs ONDCP to provide adequate resources to combat 
these threats. In addition, the Committee notes the value of 
State and local task forces in addressing these issues and 
encourages the continued incorporation of such entities in this 
and other HIDTAs.

                  OTHER FEDERAL DRUG CONTROL PROGRAMS

Appropriations, 2004 \1\................................    $227,649,000
Budget estimate, 2005...................................     235,000,000
Committee recommendation................................     195,500,000

\1\ Reflects reduction of $1,351,000 pursuant to Division H, section 168 
of Public Law 108-199.

    The Anti-Drug Abuse Act of 1988 (Public Law 100-690), as 
amended, and the Office of National Drug Control Policy's 
reauthorization (Public Law 105-277) established the Special 
Forfeiture Fund to be administered by the Director of the 
Office of National Drug Control Policy in support of high 
priority drug control programs. The account's name was changed 
to Other Federal Drug Control Programs in fiscal year 2004 to 
reflect the fact that it is now wholly funded by direct 
appropriations.
    The Committee recommends an appropriation of $185,500,000 
for Other Federal Drug Control Programs, which is $39,500,000 
less than the requested amount and $32,149,000 less than the 
fiscal year 2004 enacted level. Within this amount, the 
Committee provides the following funding levels:

------------------------------------------------------------------------
                                                              Amount
------------------------------------------------------------------------
National Youth Anti-Drug Media Campaign.................    $100,000,000
Drug-Free Communities Support Program...................      80,000,000
Counterdrug Executive Secretariat.......................       3,050,000
National Drug Court Institute...........................       1,000,000
National Alliance for Model State Drug Laws.............       1,500,000
United States Anti-Doping Agency Grant..................       7,500,000
World Anti-Doping Agency Dues...........................       1,450,000
Performance Measures Development........................       1,000,000
------------------------------------------------------------------------

    National Youth Anti-Drug Media Campaign.--The Committee has 
provided consistent monetary support for the National Youth 
Anti-Drug Media Campaign since it was initially funded by 
Congress in fiscal year 1998. While overall youth illicit drug 
use has trended downward since 1997, the Committee is concerned 
with the most recent results of the media campaign evaluation 
study commissioned by the National Institute on Drug Abuse 
[NIDA]. The evaluation study indicates, not only that marijuana 
use has trended steadily upward among 14- to 16-year olds--the 
Media Campaign's target audience--since 2000, but also that the 
Media Campaign has had no measurable positive effect on youth 
attitudes toward marijuana nor their use thereof. The 
Evaluation Study's conclusions are particularly troubling in 
light of the fact that, since the fall of 2002, the Media 
Campaign has chosen to focus its efforts on a ``marijuana 
initiative'' aimed at curbing youth marijuana use on the basis 
that marijuana serves as a ``gateway'' drug to other more 
potent controlled substances. Because of its concern about the 
direction and efficacy of the Media Campaign as it is currently 
structured, the Committee provides $100,000,000 for its 
continuation.
    The Committee is troubled that the evaluation study 
indicates the Media Campaign has been so ineffective in 
reaching and influencing its targeted youth audience. In order 
to ensure that Media Campaign resources are most effectively 
allocated to prevent youth from using illicit narcotics, ONDCP 
must evaluate the effectiveness of its efforts on the basis of 
quantifiable scientific research. The Committee therefore 
directs ONDCP to utilize the individual ad and overall Campaign 
assessments provided by the evaluation study to measure the 
effectiveness of its advertisements and to focus and shape the 
Media Campaign for the future.
    Media Campaign Non-Advertising Services.--While print and 
broadcast advertising is the primary focus of the Media 
Campaign, it also provides non-advertising services such as the 
production and dissemination of printed educational materials, 
maintaining an internet presence targeted to both parents and 
youth, multicultural outreach, entertainment and media outreach 
and strategic partnerships that assist in distributing the 
Media Campaign's anti-drug materials and message. Among the 
most successful of these non-advertising services has been the 
Media Campaign's now-discontinued corporate outreach program, 
through which the Media Campaign developed partnerships with 
corporations who provided in-kind contributions of access to 
their employees and customers through which the Media Campaign 
could disseminate its message and materials. This program 
provided the Media Campaign with tremendous opportunity to 
access youth and is estimated to have leveraged twelve in-kind 
private sector dollars for every dollar committed from the 
Media Campaign.
    The Committee is disappointed that ONDCP has chosen to 
decrease its non-advertising services, and particularly its 
Corporate Outreach Program, in response to the provision of 
Public Law 108-199 requiring that no less than 78 percent of 
Media Campaign funding be spent on advertising time and space. 
This requirement was included for the purpose of reducing the 
administrative costs associated with the Media Campaign, which 
now consume approximately 15 percent of the total amount, 
rather than eliminating effective outreach efforts. The 
Committee therefore directs ONDCP to maintain funding for its 
non-advertising services at no less than the fiscal year 2003 
level and to re-institute the corporate outreach program as it 
operated prior to its cancellation.
    The Committee remains concerned with the large proportion 
of Media Campaign resources devoted to administrative costs. 
The accompanying bill therefore directs that no more than 10 
percent of the funding provided for the Media Campaign be used 
for administrative costs.
    Drug-Free Communities Support Program.--ONDCP has directed 
the Drug-Free Communities Support Program [DFCSP] in 
partnership with the Office of Juvenile Justice and Delinquency 
Prevention since it was created by the Drug-Free Communities 
Act of 1997 (Public Law 105-20). DFCSP provides matching grants 
of up to $100,000 to local coalitions that mobilize their 
communities to prevent youth alcohol, tobacco, illicit drug, 
and inhalant abuse. Such grants support coalitions of youth; 
parents; media; law enforcement; school officials; faith-based 
organizations; fraternal organizations; State, local, and 
tribal government agencies; healthcare professionals; and other 
community representatives. The DCSP enables these coalitions to 
strengthen their coordination and prevention efforts, encourage 
citizen participation in substance abuse reduction efforts, and 
disseminate information about effective programs. The Committee 
provides $80,000,000 for the continuation of the DFCSP.
    The Committee has also included a provision in the bill 
directing ONDCP to provide $2,000,000 of the DFSCP funding as a 
direct grant to the Community Anti-Drug Coalitions of America 
in order to sustain the National Community Anti-Drug Coalition 
Institute.
    Counterdrug Intelligence Executive Secretariat.--The 
Counterdrug Intelligence Executive Secretariat [CDX] provides 
staff support to the Counterdrug Intelligence Coordinating 
Group, an interagency body established to oversee and improve 
coordination of Federal counterdrug intelligence programs. The 
Committee provides $3,050,000 for CDX.
    United States Anti-Doping Agency.--The United States Anti-
Doping Agency [USADA] is the independent anti-doping agency for 
Olympic sports in the United States, and is responsible for 
managing the testing and adjudication process for U.S. Olympic, 
Pan Am and Paralympic athletes. As a non-profit corporation 
under the leadership of an independent Board of Directors, 
USADA has the authority to set forth guiding principles in 
anti-doping policy and to enforce any doping violations. In 
addition to managing collection and testing procedures, USADA 
is also responsible for enhancing research efforts and 
promoting educational programs to inform athletes of the rules 
governing the use of performance enhancing substances, the 
ethics of doping and its harmful health effects.
    The Committee provides $7,500,000 for USADA, which is 
$6,000,000 more than the requested amount. The Committee urges 
USADA to maintain appropriate standards of fairness and due 
process in pursuing its mission of promoting and enforcing the 
integrity of American athletic competition.
    World Anti-Doping Agency.--ONDCP is a full participant in 
the World Anti-Doping Agency [WADA], which promotes and 
coordinates international activities against doping in all 
forms of sports. The Committee provides $1,450,000 for 
membership dues to the World Anti-Doping Agency [WADA], 
consistent with the commitment into which the United States has 
entered for support of WADA. In providing these funds, the 
Committee directs ONDCP to use its voice and vote as the United 
States' representative in this world body to ensure that all 
countries' athletes are subject to fair and equal standards and 
treatment so as to establish and maintain the objectivity and 
integrity of this fledgling international athletic regulatory 
organization.
    National Drug Court Institute.--The National Drug Court 
Institute facilitates the growth of the drug court movement by 
promoting and disseminating education, research, and 
scholarship concerning drug court programs and providing a 
comprehensive drug court training series for practitioners. The 
Committee is aware of the extraordinary growth in drug courts 
across the country and the important training of new drug 
courts that the Institute provides. Drug courts provide an 
effective means to fight drug-related crime through the 
cooperative efforts of State and local law enforcement, the 
judicial system, and the public health treatment network. The 
Committee provides $1,000,000 for the National Drug Court 
Institute.
    National Alliance For Model State Drug Laws.--The National 
Alliance for Model State Drug Laws [NAMSDL] is a national 
organization that drafts, researches, and analyzes model drug 
and alcohol laws and related State statutes, provides access to 
a national network of drug and alcohol experts, and facilitates 
working relationships among State and community leaders and 
drug and alcohol professionals. In doing so, NAMSDL encourages 
States to adopt and implement laws, policies, and regulations 
to reduce drug trafficking, drug use, and their related 
consequences. The Committee provides $1,500,000 NAMSDL and 
directs ONDCP to provide the entire amount directly to NAMSDL 
within 30 days after enactment of this Act.
    Performance Measures Development.--Performance Measures 
Development [PMD] funding is used to conduct evaluation 
research for assessing the effectiveness of the National Drug 
Control Strategy. For this function, the Committee provides 
$1,000,000, which is $1,000,000 less than the requested amount.
    Projects undertaken with these resources are to entail 
efforts to encourage and work with selected programs to develop 
and improve needed data sources. The Committee is concerned 
that most of the initiatives proposed for funding under PMD 
would be more appropriately funded via CTAC's R&D Program or 
ONDCP Policy Research. The Committee believes that funding 
research projects under PMD crowds out legitimate performance 
measures initiatives and thereby reduces ONDCP's ability to 
properly evaluate Federal counterdrug efforts. Accordingly, the 
Committee directs ONDCP to submit its planned PMD activities to 
CTAC's chief scientist for review and then to report to the 
House and Senate Committees on Appropriations within 90 days of 
enactment of this Act providing the chief scientist's findings 
and explaining why these anticipated PMD functions are most 
properly funded within PMD.

                          Unanticipated Needs

Appropriations, 2004 \1\................................        $994,000
Budget estimate, 2005...................................       1,000,000
Committee recommendation................................       1,000,000

    \1\ Reflects reduction of $6,000 pursuant to Division H, section 
168 of Public Law 108-199.

    These funds enable the President to meet unanticipated 
exigencies in support of the national interest, security, or 
defense.
    The Committee recommends $1,000,000, which is $6,000 more 
than appropriated in fiscal year 2004 and the same as the 
budget estimate.

                  Special Assistance to the President


                         SALARIES AND EXPENSES

Appropriations, 2004 \1\................................      $4,435,000
Budget estimate, 2005...................................       4,571,000
Committee recommendation................................       4,571,000

\1\ Reflects reduction of $26,000 pursuant to Division H, section 168 of 
Public Law 108-199.

    This appropriation provides for staff and expenses to 
enable the Vice President to provide assistance to the 
President in connection with the performance of executive 
duties and responsibilities. The Vice President also has a 
staff funded by the Senate to assist him in the performance of 
his legislative duties. These funds also support the official 
activities of the spouse of the Vice President.
    The Committee recommends an appropriation of $4,571,000 for 
special assistance to the President. This amount is the same as 
the budget request and $136,000 more than the fiscal year 2004 
enacted level.

                Official Residence of the Vice President


                           OPERATING EXPENSES

Appropriations, 2004 \1\................................        $329,000
Budget estimate, 2005...................................         333,000
Committee recommendation................................         333,000

\1\ Reflects reduction of $2,000 pursuant to Division H, section 168 of 
Public Law 108-199.

    This account supports the care and operation of the Vice 
President's residence on the grounds of the Naval Observatory. 
These funds specifically support equipment, furnishings, dining 
facilities, and services required to perform and discharge the 
Vice President's official duties, functions and obligations.
    Funds to renovate the residence are provided through the 
Department of the Navy budget. The Committee has had a 
longstanding interest in the condition of the residence and 
expects to be kept fully apprised by the Vice President's 
office of any and all renovations and alterations made to the 
residence by the Navy.
    The Committee recommends an appropriation of $333,000 for 
the official residence of the Vice President. This amount is 
the same as the budget request and $4,000 more than the fiscal 
year 2004 enacted level.

                     TITLE IV--INDEPENDENT AGENCIES

       Architectural and Transportation Barriers Compliance Board

                         SALARIES AND EXPENSES

Appropriations, 2004 \1\................................      $5,369,000
Budget estimate, 2005...................................       5,686,000
Committee recommendation................................       5,686,000

\1\ Reflects reduction of $32,000 pursuant to Division H, section 168 of 
Public Law 108-199.

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

 Committee for Purchase From People Who Are Blind or Severely Disabled


                         SALARIES AND EXPENSES

Appropriations, 2004 \1\................................      $4,697,000
Budget estimate, 2005...................................       4,672,000
Committee recommendation................................       4,672,000

\1\ Reflects reduction of $28,000 pursuant to Division H, section 168 of 
Public Law 108-199.

    The CPPBSD administers the Javits-Wagner-O'Day Act [JWOD] 
of 1971, as amended. Its primary objective is to use the 
purchasing power of the Federal Government to provide people 
who are blind or have other severe disabilities with employment 
and training that will develop and improve job skills as well 
as prepare them for employment options outside the JWOD 
program. In fiscal year 2004, the Committee's goal is to employ 
approximately 50,000 people who are blind or have other severe 
disabilities in 600 producing nonprofit agencies. The 
Committee's duties include promoting the program; determining 
which products and services are suitable for Government 
procurement from qualified nonprofit agencies serving people 
who are blind or have other severe disabilities; maintaining a 
procurement list of such products and services; determining the 
fair market price for products and services on the procurement 
list; and making rules and regulations necessary to carry out 
the purposes of the Act. In fiscal year 2005, the Committee's 
goal is to have sales of $2,000,000,000.
    The Committee recommends $4,672,000 for the Committee for 
Purchase From People Who Are Blind or Severely Disabled.

                     Election Assistance Commission


                         SALARIES AND EXPENSES

                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2004 \1\................................      $1,193,000
Budget estimate, 2005...................................      20,000,000
Committee recommendation................................      10,000,000

\1\ Reflects reduction of $7,000 pursuant to Division H, section 168 of 
Public Law 108-199.

    The Election Assistance Commission [EAC] was created by the 
Help America Vote Act of 2002 [HAVA]. Under HAVA, the EAC's 
role is to promulgate voluntary State guidelines for election 
systems, develop a national certification program for voting 
equipment, and provide related guidance. The EAC is also 
charged with awarding grants to improve election administration 
and enhancing election equipment.
    The Committee provides $10,000,000 for EAC's administrative 
expenses, which is $8,807,000 more than the fiscal year 2004 
level. Included in this amount is $200,000 to award grants to 
the national student parent mock election as authorized under 
HAVA section 295. The accompanying bill provides $2,800,000 of 
these funds for transfer to the National Institute for 
Standards and Technology for technical assistance related to 
the development of voluntary State voting systems guidelines.

                        Election Reform Programs

Appropriations, 2004 \1\................................  $1,491,150,000
Budget estimate, 2005...................................      30,000,000
Committee recommendation................................................

\1\ Reflects reduction of $8,850,000 pursuant to Division H, section 168 
of Public Law 108-199.

    This appropriation finances grants for requirements 
payments to State and local governments to meet minimum voting 
standards established under title III of HAVA and other grant 
programs authorized by the Act.
    The Committee does not provide funding for election reform 
programs. The Committee notes that approximately $1,200,000,000 
of the $2,321,150,000 previously appropriated for election 
reform programs, more than half of these funds, remain 
unobligated to date. The Committee believes that the 
unobligated balance will be sufficient for requirements 
payments obligations in fiscal year 2005 and encourages the EAC 
to continue working with the States in order to disburse these 
funds as expeditiously and efficiently as possible. The 
Committee further encourages the EAC to continue to work 
diligently to promulgate voluntary State voting system 
guidelines so that this grant program will be implemented as 
Congress intended.

                      Federal Election Commission


                         SALARIES AND EXPENSES

Appropriations, 2004 \1\................................     $50,938,000
Budget estimate, 2005...................................      52,159,000
Committee recommendation................................      52,159,000

\1\ Reflects reduction of $302,000 pursuant to Division H, section 168 
of Public Law 108-199.

    The Federal Election Commission [FEC] was created through 
the 1974 Amendments to the Federal Election Campaign Act of 
1971 [FECA]. Consistent with its duty of executing our Nation's 
Federal campaign finance laws, and in pursuit of its mission of 
maintaining public faith in the integrity of the Federal 
campaign finance system, FEC conducts three major regulatory 
programs: (1) providing public disclosure of funds raised and 
spent to influence Federal elections; (2) enforcing compliance 
with restrictions on contributions and expenditures made to 
influence Federal elections; and (3) administering public 
financing of Presidential campaigns.
    The Committee recommends $52,159,000 for the Federal 
Election Commission, which is the same as the budget request 
and $1,221,000 more than the fiscal year 2004 enacted level.

                   Federal Labor Relations Authority


                         SALARIES AND EXPENSES

Appropriations, 2004 \1\................................     $29,436,000
Budget estimate, 2005...................................      29,673,000
Committee recommendation................................      25,673,000

\1\ Reflects reduction of $175,000 pursuant to Division H, section 168 
of Public Law 108-199.

    The Federal Labor Relations Authority [FLRA] pursuant to 
Reorganization Plan Numbered 2 of 1978, and 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.
    In addition, the FLRA is engaged in case-related 
interventions and training and facilitation of labor-management 
partnerships and in resolving disputes. FLRA promotes labor-
management cooperation by providing training and assistance to 
labor organizations and agencies on resolving disputes, 
facilitates the creation of partnerships, and trains the 
parties on rights and responsibilities under the Federal 
Relations Labor Relations Management statute.
    The Committee recommends an appropriation of $25,673,000 
for the Federal Labor Relations Authority. This amount is 
$4,000,000 below the President's budget request and is 
$3,763,000 less than the fiscal year 2004 enacted level. The 
Committee recommendation reflects the decline in caseload and 
the reduction of the FTE level from 215 to 210.

                              (RESCISSION)

Rescission, 2004........................................................
Budget estimate, 2005...................................................
Committee recommendation................................     -$3,000,000

    The Committee recommends a rescission of $3,000,000 of 
prior appropriations for the salaries and expenses of the 
Federal Labor Relations Authority. The Committee notes that 
significant amounts of annual appropriations have lapsed at the 
end of fiscal year 2002 and 2003 which reflect salary and 
benefit surpluses related to the decline in caseload and actual 
FTE usage over the same period.

                      Federal Maritime Commission


                         SALARIES AND EXPENSES

Appropriations 2004 \1\.................................     $18,362,000
Budget estimate 2005....................................      19,496,000
Committee recommendation................................      19,496,000

\1\ Reflects reduction of $109,000 pursuant to Division H, section 168 
of Public Law 108-199.

    The Federal Maritime Commission [FMC] is an independent 
regulatory agency which administers the Shipping Act of 1984 as 
amended by the Ocean Shipping Reform Act of 1998; section 19 of 
the Merchant Marine Act, 1920; the Foreign Shipping Practices 
Act of 1988; and Public Law 89-777.
    FMC regulates the international waterborne commerce of the 
United States. In addition, the FMC has responsibility for 
licensing and bonding ocean transportation intermediaries and 
assuring that vessel owners or operators establish financial 
responsibility to pay judgments for death or injury to 
passengers, or nonperformance of a cruise, on voyages from U.S. 
ports. Major program areas for 2005 are: carrying out 
investigations of foreign trade practices under the Foreign 
Shipping Practices Act; maintaining equitable trading 
conditions in U.S. ocean commerce; ensuring compliance with 
applicable shipping statutes; pursuing an active enforcement 
program designed to identify and prosecute violators of the 
shipping statutes; and reviewing ocean carrier operational and 
pricing agreements to guard against excessively anticompetitive 
effects.
    The Committee includes $19,496,000 for the salaries and 
expenses of the Federal Maritime Commission for fiscal year 
2005. This amount is the same as the President's request and 
$1,134,000 above the fiscal year 2004 enacted level.

                    General Services Administration

    The General Services Administration [GSA] was established 
by the Federal Property and Administrative Services Act of 1949 
when Congress mandated the consolidation of the Federal 
Government's real property and administrative services. GSA is 
organized into the Public Buildings Service, the Federal Supply 
Service, the Federal Technology Service, the Office of 
Governmentwide Policy, and the Office of Citizen Services and 
Communications.

     FEDERAL BUILDINGS FUND--LIMITATIONS ON AVAILABILITY OF REVENUE

                     (INCLUDING TRANSFER OF FUNDS)

    The Federal Buildings Fund program consists of the 
following activities financed from rent charges:
    Construction and Acquisition of Facilities.--Space is 
acquired through the construction or purchase of facilities and 
prospectus-level extensions to existing buildings. All costs 
directly attributable to site acquisition, construction, and 
the full range of design and construction services, and 
management and inspection of construction projects are funded 
under this activity.
    Repairs and Alterations.--Repairs and alterations of public 
buildings as well as associated design and construction 
services are funded under this activity. Protection of the 
Government's investment, health and safety of building 
occupants, transfer of agencies from leased space, and cost 
effectiveness are the principal criteria used in establishing 
priorities. Primary consideration is given to repairs to 
prevent deterioration and damage to buildings, their support 
systems, and operating equipment. This activity also provides 
for conversion of existing facilities and non-prospectus 
extensions.
    Installment Acquisition Payments.--Payments are made for 
liabilities incurred under purchase contract authority and 
lease purchase arrangements. The periodic payments cover 
principal, interest, and other requirements.
    Rental of Space.--Space is acquired through the leasing of 
buildings including space occupied by Federal agencies in U.S. 
Postal Service facilities, 153 million rentable square feet in 
fiscal year 2003, and 157 million rentable square feet in 
fiscal year 2004.
    Building Operations.--Services are provided for Government-
owned and leased facilities, including cleaning, utilities and 
fuel, maintenance, miscellaneous services (such as moving, 
evaluation of new materials and equipment, and field 
supervision), and general management and administration of all 
real property related programs including salaries and benefits 
paid from the Federal Buildings Fund.
    Other Programs.--When requested by Federal agencies, the 
Public Buildings Service provides building services, such as 
tenant alterations, cleaning and other operations, and 
protection services which are in excess of those services 
provided under the commercial rental charge. For presentation 
purposes, the balances of the Unconditional Gifts of Real, 
Personal, or Other Property trust fund have been combined with 
the Federal Buildings Fund.

                      CONSTRUCTION AND ACQUISITION

Limitation on availability, 2004 \1\....................    $721,648,000
Limitation on availability, 2005........................     650,223,000
Committee recommendation................................     710,823,000

\1\ Reflects reduction of $289,000 pursuant to Division H, section 168 
of Public Law 108-199.

    Funds provided for construction and acquisition in fiscal 
year 2005 shall be available for the following projects in the 
corresponding amounts:

------------------------------------------------------------------------
                                                              Amount
------------------------------------------------------------------------
Alexandria Bay, New York Border Station.................      $8,884,000
Calais, Maine Border Station............................       5,550,000
Chicago, Illinois 10 West Jackson Place (Purchase)......      53,170,000
Derby Line, Vermont Border Station......................       3,190,000
District of Columbia Southwest Federal Center side             2,650,000
 remediation............................................
Dunseith, North Dakota Border Station...................       2,301,000
El Paso, Texas Paso Del Norte Border Station............      26,191,000
El Paso, Texas United States Courthouse.................      63,462,000
El Paso, Ysleta Border Station..........................       2,491,000
Las Cruces Courthouse...................................      60,600,000
Los Angeles, California Federal Bureau of Investigation       14,054,000
 Facility...............................................
Los Angeles, California United States Courthouse........     314,385,000
Madawaska, Maine Border Station.........................       1,760,000
Massena, New York, Border Station.......................      15,000,000
Montgomery County, Maryland FDA Consolidation...........      88,710,000
Norton, Vermont Border Station..........................         580,000
Portal, North Dakota Border Station.....................      22,351,000
Richford, Vermont Border Station........................         589,000
San Diego, California United States Courthouse..........       3,068,000
Warroad, Minnesota Border Station.......................       1,837,000
Nonprospectus Construction..............................      10,000,000
Judgment Fund repayment.................................      10,000,000
------------------------------------------------------------------------

    The Committee recommends $710,823,000 for the construction 
and acquisition account. The Committee recommendation is 
$60,600,000 above the President's request.
    Risk Assessments.--The Committee is aware of the 
Interagency Security Committee criteria requiring the General 
Services Administration [GSA], prior to new construction or 
major renovations, to perform a project specific risk 
assessment that takes into account threat, vulnerability, 
consequences, and probability of an attack on the facility. 
However, the Committee is concerned that existing physical 
security risk methodology is not specifically designed to 
support structural upgrades and hazard mitigation that should 
be addressed in new construction or major renovations. 
Therefore, the Committee expects the GSA Office of the Chief 
Architect to work with the Applied Research Associates' 
Security Engineering and Applied Sciences Sector to enhance the 
Federal Security Risk Manager methodology to facilitate the 
application of the process and the software throughout the GSA 
regions and in consultation with the Department of Homeland 
Security's Federal Protective Service.
    Courthouse Construction.--The Committee encourages the 
General Services Administration [GSA], the administration, and 
the judiciary to continue to work cooperatively to develop a 
single comprehensive plan upon which courthouse construction 
will be based. The Committee continues to believe that a model 
should incorporate utilization rates, courtroom sharing, and 
safety considerations. The use of cost savings measures and 
careful planning will result in a program that can be 
consistently supported. The Committee notes that it has been 
extremely supportive of addressing the courthouse construction 
backlog. Further, the Committee would again remind the 
Administrative Office of the U.S. Courts [AOC] and other 
organizations that the Committee has adhered to the jointly 
agreed to priority list and that the Congress is constrained by 
overall budget resolutions and spending caps from accommodating 
every request.
    The Committee is concerned that in spite of the strict 
budgetary pressures facing the Federal Government, AOC fails to 
pursue a policy of fiscal restraint and approaches the Congress 
for increases in courthouse construction funding above the 
Administration's request. The Congress and the Administration 
have worked diligently to reign in court construction costs and 
the Committee will continue to pursue all avenues with respect 
to cost containment with or without the support of the Courts.

                        REPAIRS AND ALTERATIONS

Limitation on availability, 2004 \1\....................    $990,903,000
Limitation on availability, 2005........................     980,222,000
Committee recommendation................................     980,222,000

\1\ Reflects reduction of $397,000 pursuant to Division H, section 168 
of Public Law 108-199.

    Under this activity, the General Services Administration 
[GSA] executes its responsibility for repairs and alterations 
[R&A] of both Government-owned and leased facilities under the 
control of GSA. The primary goal of this activity is to provide 
commercially equivalent space to tenant agencies. Safety, 
quality, and operating efficiency of facilities are given 
primary consideration in carrying out this responsibility.
    R&A workload requirements originate with scheduled onsite 
inspections of buildings by qualified regional engineers and 
building managers. The work identified through these 
inspections is programmed in order of priority into the repairs 
and alterations construction automated tracking system [RACATS] 
and incorporated into a 5-year plan for accomplishment, based 
upon funding availability, urgency, and the volume of R&A work 
that GSA has the capability to execute annually. Since fiscal 
year 1995, design and construction services activities 
associated with repair and alteration projects have been funded 
in this account.
    The Committee recommends new obligational authority of 
$980,222,000 for repairs and alterations in fiscal year 2005. 
This amount is the same as the President's request.
    Funds provided for repairs and alterations in fiscal year 
2005 shall be available for the following projects in the 
corresponding amounts:

------------------------------------------------------------------------
                                                              Amount
------------------------------------------------------------------------
Atlanta, Georgia Martin Luther King, Jr. Federal             $14,800,000
 Building...............................................
Atlanta, Georgia United States Court of Appeals.........      32,004,000
Baltimore, Maryland George H. Fallon Federal Building...      46,163,000
Cincinnati, Ohio Potter Stewart Courthouse..............      37,975,000
Cleveland, Ohio Celebreeze Federal Building.............      37,375,000
District of Columbia Eisenhower Executive Office               5,000,000
 Building...............................................
District of Columbia Federal Office Building............       8,267,000
District of Columbia Hoover FBI Building................      10,242,000
District of Columbia Mary E. Switzer Building...........      80,335,000
District of Columbia New Executive Office Building......       6,262,000
District of Columbia Theodore Roosevelt Building........       9,730,000
Hilo, Hawaii Federal Building...........................       5,133,000
Kansas City, Missouri Richard Bolling Federal Building..      40,048,000
New Orleans, Louisiana Boggs Federal Building...........      22,581,000
New Orleans, Louisiana Wisdom Courthouse of Appeals.....       8,005,000
New York, New York Foley Square Courthouse..............       2,505,000
Queens, New York Joseph P. Addabbo Federal Building.....       5,455,000
Seattle, Washington William Nakamura Courthouse.........      50,210,000
St. Paul, Minnesota Warren E. Burger Federal Building...      36,644,000
Suitland, Maryland National Record Center...............       7,989,000
Woodlawn, Maryland SSA Altmeyer Building................       6,300,000
Special Emphasis Programs:
    Chlorofluorocarbons Program.........................      13,000,000
    Energy Program......................................      30,000,000
    Glass Fragment Retention............................      20,000,000
    Design Program......................................      49,699,000
    Basic Repairs and Alterations.......................     394,500,000
------------------------------------------------------------------------

                    INSTALLMENT ACQUISITION PAYMENTS

Limitation on availability, 2004 \1\....................    $169,677,000
Limitation on availability, 2005........................     161,442,000
Committee recommendation................................     161,442,000

\1\ Reflects reduction of $68,000 pursuant to Division H, section 168 of 
Public Law 108-199.

    The Public Buildings Amendments of 1972 enables GSA to 
enter into contractual arrangements for the construction of a 
backlog of approved but unfunded projects. The purchase 
contracts require the Federal Government to make periodic 
payments on these facilities over varying periods until title 
is transferred to the Government. This activity provides for 
the payment of principal, interest, taxes, and other required 
obligations related to facilities acquired pursuant to the 
Public Buildings Amendments of 1972 (40 U.S.C. 602a).
    The Committee recommends a limitation of $161,442,000 for 
installment acquisition payments. The Committee recommendation 
equals the budget estimate.

                            RENTAL OF SPACE

Limitation on availability, 2004 \1\....................  $3,278,873,000
Limitation on availability, 2005........................   3,672,315,000
Committee recommendation................................   3,597,315,000

\1\ Reflects reduction of $1,314,000 pursuant to Division H, section 168 
of Public Law 108-199.

    GSA is responsible for leasing general purpose space and 
land incident thereto for Federal agencies, except cases where 
GSA has delegated its leasing authority. GSA's policy is to 
lease privately owned buildings and land only when: (1) Federal 
space needs cannot be otherwise accommodated satisfactorily in 
existing Government-owned or leased space; (2) leasing proves 
to be more efficient than the construction or alteration of a 
Federal building; (3) construction or alteration is not 
warranted because requirements in the community are 
insufficient or are indefinite in scope or duration; or (4) 
completion of a new Federal building within a reasonable time 
cannot be assured.
    The Committee recommends a limitation of $3,597,315,000 for 
rental of space. The Committee recommendation is $75,000,000 
below the President's budget request and $318,442,000 above the 
fiscal year 2004 enacted level.

                          BUILDING OPERATIONS

Limitation on availability, 2004 \1\....................  $1,608,064,000
Limitation on availability, 2005........................   1,709,522,000
Committee recommendation................................   1,709,522,000

\1\ Reflects reduction of $644,000 pursuant to Division H, section 168 
of Public Law 108-199.

    This activity provides for the operation of all Government-
owned facilities under the jurisdiction of GSA and building 
services in GSA-leased space where the terms of the lease do 
not require the lessor to furnish such services. Services 
included in building operations are cleaning, protection, 
maintenance, payments for utilities and fuel, grounds 
maintenance, and elevator operations. Other related supporting 
services include various real property management and staff 
support activities such as space acquisition and assignment; 
the moving of Federal agencies as a result of space alterations 
in order to provide better space utilization in existing 
buildings; onsite inspection of building services and 
operations accomplished by private contractors; and various 
highly specialized contract administration support functions.
    The space, operations, and services referred to above are 
furnished by GSA to its tenant agencies in return for payment 
of rent. Due to considerations unique to their operation, GSA 
also provides varying levels of above-standard services in 
agency headquarter facilities, including those occupied by the 
Executive Office of the President, such as the east and west 
wings of the White House.
    The Committee recommends a limitation of $1,709,522,000 for 
building operations. This amount is the same as the President's 
budget request and $101,458,000 above the fiscal year 2004 
enacted level.

                         GOVERNMENT-WIDE POLICY

                         salaries and expenses

Appropriations, 2004 \1\................................     $56,050,000
Budget estimate, 2005...................................      62,100,000
Committee recommendation................................      62,100,000

\1\ Reflects reduction of $333,000 pursuant to Division H, section 168 
of Public Law 108-199.

    The Office of Government-wide Policy provides for 
Government-wide policy development, support, and evaluation 
functions associated with real and personal property, supplies, 
vehicles, aircraft, information technology, acquisition, 
transportation and travel management. This office also provides 
for the Federal Procurement Data Center, Workplace Initiatives, 
Regulatory Information Service Center, the Catalog of Federal 
Domestic Assistance, and the Committee Management Secretariat. 
The Office of Governmentwide Policy, working cooperatively with 
other agencies, provides the leadership needed to develop and 
evaluate the implementation of policies designed to achieve the 
most cost-effective solutions for the delivery of 
administrative services and sound workplace practices, while 
reducing regulations and empowering employees.
    The Office of Citizen Services provides leadership and 
support for electronic government initiatives and operates the 
official Federal portal through which citizens may access 
Federal information services electronically. The Federal 
Consumer Information Center is part of this office, though 
funded under a separate appropriation.
    The Committee recommends an appropriation of $62,100,000 
for Government-wide Policy. This amount is the same as the 
President's budget request and also includes funds transferred 
from the Federal Technology Service's portion of the Operating 
Expenses account to cover the Federal identity management and 
e-authentication management functions.
    Child Care Centers.--The Committee recommends that funds 
provided to the Office of Policy and Operations continue to be 
used to issue and enforce regulations requiring any entity 
operating a child care center in a facility owned or leased by 
an executive agency to: (1) comply with applicable State and 
local licensing requirements related to the provision of child 
care and (2) comply with center-based accreditation standards 
specified by the Administrator, if such a regulatory program is 
authorized.
    Computers to Schools Program.--The Committee continues to 
be aware that Indian tribal colleges and Alaska Native and 
Native Hawaiian serving institutions are being asked to 
undertake an increasing number of activities in Native 
communities related to education, employment and other training 
as part of the ongoing ``welfare to work'' transition mandated 
by the 1996 welfare reform law. To complement recent private 
sector donations of computers and related equipment to Indian 
tribes and Alaska Native and Native Hawaiian serving 
institutions, as part of its existing ``Computers to Schools'' 
program, the General Services Administration [GSA] is 
encouraged to continue to work with the 31 Indian tribal 
colleges and Alaska Native and Native Hawaiian serving 
institutions to provide assistance to them in developing and 
upgrading the colleges' electronic capabilities. As part of 
this effort, GSA should utilize the 31 tribal colleges and 
Alaska Native and Native Hawaiian serving institutions as a 
discrete evaluation point as it works to meet these equipment 
needs. GSA's technical assistance will further enable the 
tribal colleges and Alaska Native and Native Hawaiian serving 
institutions to provide a higher quality of education to their 
students.
    Telecommuting Centers.--The Committee encourages GSA to 
continue to promote telecommuting centers within the Federal 
Government in the Washington, DC metropolitan area as an 
effective means to provide an alternative workplace.

                           OPERATING EXPENSES

                         SALARIES AND EXPENSES

Appropriations, 2004 \1\................................     $87,590,000
Budget estimate, 2005...................................      82,175,000
Committee recommendation................................      85,175,000

\1\ Reflects reduction of $520,000 pursuant to Division H, section 168 
of Public Law 108-199.

    Operating Expenses provides funding 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.
    The Committee recommends an appropriation of $85,175,000 
for the Operating Expenses. This amount is an increase of 
$3,000,000 above the administration's request and $2,415,000 
below the fiscal year 2004 enacted level. The Committee 
includes the following increases: $500,000 for the Ruffner 
Mountain Educational Facility in Alabama; $500,000 for the 
Center for the Living Arts in Alabama; $250,000 for the State 
of Alaska to assist in preparation for its Statehood 
celebration; $200,000 for the Way of a Champion Foundation in 
Chesapeake, Virginia; $450,000 for the City of Maryville, 
Missouri for airport improvements; $1,000,000 for Washington 
State Border Communities Prosecution Initiative; $300,000 for 
the UND Government Services Rural Outreach Initiative and 
$250,000 for the Walla Walla economic development study of 
potentially surplus property at the Wainwright VA Medical 
Center.
    Washington State Border Communities Prosecution Initiative, 
Washington.--Enforcement activities on the border between 
Washington State and Canada has increased dramatically. Funding 
is provided to compensate those local communities along the 
border that have had to bear increasing costs associated with 
jailing, prosecuting, and defending suspected criminals for 
crimes at the border. Such expenses may include costs 
associated with an investigation or arrest initiated by Federal 
law enforcement or any case that involves a violation of 
Federal law that has been referred for prosecution by Federal 
authorities. Costs that would be eligible for reimbursement 
include the costs of prosecution, investigation, detention of 
suspects, court costs, and construction of holding spaces.

                      OFFICE OF INSPECTOR GENERAL

Appropriations, 2004 \1\................................     $38,938,000
Budget estimate, 2005...................................      42,351,000
Committee recommendation................................      42,351,000

\1\ Reflects reduction of $231,000 pursuant to Division H, section 168 
of Public Law 108-199.

    This appropriation provides agency-wide audit and 
investigative functions to identify and correct management and 
administrative deficiencies within the General Services 
Administration [GSA], creating conditions for existing or 
potential instances of fraud, waste and mismanagement. This 
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.
    The Committee recommends an appropriation of $42,351,000 
for the Office of Inspector General. This amount is the same as 
the President's budget request and $3,413,000 above the fiscal 
year 2004 enacted level.

                   ELECTRONIC GOVERNMENT [E-GOV] FUND

Appropriations, 2004 \1\................................      $2,982,000
Budget estimate, 2005...................................       5,000,000
Committee recommendation................................       3,000,000

\1\ Reflects reduction of $18,000 pursuant to Division H, section 168 of 
Public Law 108-199.

    This program supports interagency ``electronic government'' 
or ``e-gov'' initiatives, i.e., projects that use the Internet 
or other electronic methods to provide individuals, businesses, 
and other government agencies with simpler and more timely 
access to Federal information, benefits, services, and business 
opportunities.
    Proposals for funding must meet capital planning guidelines 
and include adequate documentation to demonstrate a sound 
business case, attention to security and privacy, and a way to 
measure performance against planned results. In addition, a 
small portion of the money could be used for awards to those 
project management teams that delivered the best product to 
meet customer needs.
    The Committee recommends an appropriation of $3,000,000 for 
the Electronic Government Fund. This amount is $2,000,000 below 
the President's request.

           ALLOWANCES AND OFFICE STAFF FOR FORMER PRESIDENTS

Appropriations, 2004 \1\................................      $3,373,000
Budget estimate, 2005...................................       3,449,000
Committee recommendation................................       3,106,000

\1\ Reflects reduction of $20,000 pursuant to Division H, section 168 of 
Public Law 108-199.

    This appropriation provides support consisting of pensions, 
office staffs, and related expenses for former Presidents 
Gerald R. Ford, Jimmy Carter, George Bush, and Bill Clinton, a 
pension for the widow of former President Lyndon B. Johnson, 
and postal franking privileges for the widows of former 
Presidents Lyndon B. Johnson and Ronald Reagan. 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.
    The Committee recommends $3,106,000 for allowances and 
office staff for former Presidents. The Committee 
recommendation provides for the office staff and related 
expenses associated with the closing of the Office of Former 
President Ronald Reagan through December 31, 2004.
    Below is listed a detailed analysis of the Committee's 
recommendation for fiscal year 2005 funding:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                            Former Presidents
                                           --------------------------------------------------  Widows     Total
                                              Ford     Carter    Reagan     Bush     Clinton
----------------------------------------------------------------------------------------------------------------
Personnel Compensation....................        96        96        96        96        96  ........       480
Personnel Benefits........................        22         2        33        51        78  ........       186
Benefits for Former Presidents............       182       182  ........       182       189        20       755
Travel....................................        44         2        10        54        44  ........       154
Rental Payments to GSA....................       105       102        37       175       460  ........       879
Communications, Utilities and
 Miscellaneous charges:
    Telephone.............................        15        10         4        14        54  ........        97
    Postage...............................         9        15         2        13        10         4        53
Printing..................................         5         5         4        14         8  ........        36
Other Services............................        38        79        11        66       146  ........       340
Supplies & Materials......................        17         5         2        14        15  ........        53
Equipment.................................         6         7         1        34         5  ........        53
                                           ---------------------------------------------------------------------
      Subtotal Obligations................       539       505       200       713     1,105        24     3,086
                                           =====================================================================
Infrastructure Contingency................  ........  ........  ........  ........  ........  ........        20
                                           ---------------------------------------------------------------------
      Total Obligations...................       539       505       200       713     1,105        22     3,106
----------------------------------------------------------------------------------------------------------------

                   EXPENSES, PRESIDENTIAL TRANSITION

Appropriations, 2004....................................................
Budget estimate, 2005...................................      $7,700,000
Committee recommendation................................       7,700,000

    The appropriation provides funds to provide for an orderly 
transfer of executive leadership, in accordance with the 
Presidential Transition Act of 1963. Funds are also authorized 
to finance the costs of briefings and training for personnel 
associated with the incoming administration. Funds are only 
requested during a presidential election year and are not 
available for obligation by the incumbent administration.
    The Committee recommends $7,700,000 for presidential 
transition expenses, an amount equal to the budget estimate. 
The Committee denies the request to amend the Presidential 
Transition Act to allow $1,000,000 for training and briefings 
for incoming appointees associated with the second term of an 
incumbent President. The Committee has no objection to funding 
training and briefings for incoming appointees associated with 
the second term of an incumbent President, but believe that it 
should be properly budgeted for and requested by the 
appropriate agencies.

          GENERAL PROVISIONS--GENERAL SERVICES ADMINISTRATION

    Section 401 authorizes GSA to credit accounts with certain 
funds received from Government corporations.
    Section 402 authorizes GSA to use funds for the hire of 
passenger motor vehicles.
    Section 403 authorizes GSA to transfer funds within the 
Federal buildings fund for meeting program requirements.
    Section 404 limits funding for courthouse construction 
which does not meet certain standards of a capital improvement 
plan.
    Section 405 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 rate.
    Section 406 authorizes GSA to pay claims up to $250,000 
from construction projects and acquisition of buildings.
    Section 407 authorizes GSA to sell the Middle River Depot 
at Middle River, Maryland and the proceeds to be credited to 
the Federal Building Fund to be appropriated as the GSA 
Administrator may deem appropriate.
    Section 408 amends 40 U.S.C. 572 in subsection (a)(2)(ii) 
by inserting the following before the period: ``, highest and 
best use of property studies, utilization of property studies, 
deed compliance inspection, and the expenses incurred in a 
relocation''.
    Section 409 makes adjustments from the Federal Building 
Fund for new construction and repairs and alterations projects 
based on cost and schedule changes.
    Section 410 allows GSA to use previously appropriated funds 
to redesign the proposed courthouse expansion at the corner of 
400 South Street and West Temple in Salt Lake City, Utah.
    Section 411 amends Section 3712 of title 22, United States 
Code by adding a new subsection to provide for the termination 
of the Panama Canal Commission and authorizes GSA to administer 
the Revolving Fund.
    Section 412 requires the Postal Service to convey property 
in Baton Rouge to GSA, for which GSA shall compensate the 
Postal Service. GSA shall then convey the property to the 
Recreation and Park Commission for the Parish of East Baton 
Rouge, Louisiana.
    Section 413 prohibits the use of funds after July 1, 2005 
for any telecommunications service for Federal Government owned 
buildings unless the building is in compliance with a 
regulation or Executive Order related to redundant 
telecommunications services.

                     Merit Systems Protection Board


                         SALARIES AND EXPENSES

                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2004 \1\................................     $32,683,000
Budget estimate, 2005...................................      37,303,000
Committee recommendation................................      34,677,000

\1\ Reflects reduction of $194,000 pursuant to Division H, section 168 
of Public Law 108-199.

    The Merit System Protection Board [MSPB] was established by 
the Civil Service Reform Act of 1978. MSPB is an independent 
quasi-judicial agency manifested to protect Federal merits 
systems against partisan political and other prohibited 
personnel practices and to ensure adequate protection for 
employees against abuses by agency management.
    MSPB assists Federal agencies in running a merit-based 
civil service system. This is accomplished on a case-by-case 
basis through hearing and deciding employee appeals, and on a 
systemic basis by reviewing significant actions and regulations 
of the Office of Personnel Management [OPM] and conducting 
studies of the civil service and other merit systems. These 
actions are designed to assure that personnel actions taken 
against employees are processed within the law, and that 
actions taken by OPM and other agencies support and enhance 
Federal merit principles.
    The Committee recommends an appropriation of $34,677,000 
for the Merit Systems Protection Board, this is an increase of 
$1,994,000 above the fiscal year 2004 enacted level and a 
decrease of $2,626,000 below the President's budget request. 
The decrease from the President's 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 requested by 
the President; this request has not been adequately justified. 
The Committee instead makes available no more than $2,626,000 
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


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

Appropriations, 2004 \1\................................      $1,984,000
Budget estimate, 2005...................................................
Committee recommendation................................       1,996,000

\1\ Reflects reduction of $12,000 pursuant to Division H, section 168 of 
Public Law 108-199.

    The General Fund payment to the Morris K. Udall Fund is 
invested in Treasury securities with maturities suitable to the 
needs of the Fund. Interest earnings from the investments are 
used to carry out the activities of the Morris K. Udall 
Foundation. The Foundation awards scholarships, fellowships and 
grants, and funds activities of the Udall Center.
    Public Law 106-568 authorized the Morris K. Udall 
Foundation to establish training programs for professionals in 
health care policy and public policy, such as the Native 
Nations Institute [NNI]. NNI, based at the University of 
Arizona, will provide Native Americans with leadership and 
management training and analyze policies relevant to tribes.
    The Committee recommends an appropriation of $1,996,000 for 
these activities of the Morris K. Udall Foundation. The 
Committee includes language to allow up to 60 percent of the 
appropriation to be used for the expenses of the Native Nations 
Institute. The Committee also includes language requiring the 
Foundation to report to the House and Senate Committees on 
Appropriations on the amount of funding, if any, transferred 
from the Trust Fund for the Native Nations Institute and 
justification for such transfers. This report should include an 
itemization of planned Native Nations Institute expenditures 
for fiscal year 2004. Future budget justifications submitted to 
Congress regarding this effort are to contain detailed 
information on the actual expenditures in past years as well as 
detailed information on planned expenditures for the current 
and future budget years.

         MORRIS K. UDALL ENVIRONMENTAL DISPUTE RESOLUTION FUND

Appropriations, 2004 \1\................................      $1,301,000
Budget estimate, 2005...................................         700,000
Committee recommendation................................       1,309,000

\1\ Reflects reduction of $8,000 pursuant to Division H, section 168 of 
Public Law 108-199.

    The U.S. Institute for Environmental Conflict Resolution is 
a Federal program established by Public Law 105-156 to assist 
parties in resolving environmental, natural resource, and 
public lands conflicts. The Institute is part of the Morris K. 
Udall Foundation, and serves as an impartial, non-partisan 
institution providing professional expertise, services, and 
resources to all parties involved in such disputes. The 
Institute helps parties determine whether collaborative problem 
solving is appropriate for specific environmental conflicts, 
how and when to bring all the parties together for discussion, 
and whether a third-party facilitator or mediator might be 
helpful in assisting the parties in their efforts to each 
consensus or to resolve the conflict. In addition, the 
Institute maintains a roster of qualified facilitators and 
mediators with substantial experience in environmental conflict 
resolution, and can help parties in selecting an appropriate 
neutral.
    The Committee recommends an appropriation of $1,309,000 for 
the Morris K. Udall Environmental Dispute Resolution Fund. This 
amount is $8,000 above the fiscal year 2004 enacted level and 
$609,000 above the administration's request.

              National Archives and Records Administration


                           OPERATING EXPENSES

Appropriations, 2004 \1\................................    $255,185,000
Budget estimate, 2005...................................     266,945,000
Committee recommendation................................     266,945,000

\1\ Reflects reduction of $1,515,000 pursuant to Division H, section 168 
of Public Law 108-199.

    The National Archives and Records Administration [NARA] is 
the national recordkeeper. NARA is an independent agency 
created by statute in 1934 to safeguard the records of all 
three branches of the Federal Government. NARA administers the 
Information Security Oversight Office [ISOO], is the publisher 
of the Federal Register and makes grants for historical 
documentation through the National Historical Publications and 
Records Commission [NHPRC]. NARA provides for basic operations 
dealing with management of the Federal Government's archives 
and records, operation of Presidential Libraries, and for the 
review for declassification of classified security information.
    The Committee recommends an appropriation of $266,945,000 
for Operating Expenses of the National Archives and archived 
Federal records and related activities.

                      ELECTRONIC RECORDS ARCHIVES

Appropriations, 2004 \1\................................     $35,702,000
Budget estimate, 2005...................................      35,914,000
Committee recommendation................................      35,914,000

\1\ Reflects reduction of $212,000 pursuant to Division H, section 168 
of Public Law 108-199.

    National Archives and Records Administration [NARA] is 
developing an Electronic Records Archives [ERA] that will 
ensure the preservation of and access to Government electronic 
records. With the rapid changes in technology today, the 
formats in which records are stored become obsolete within a 
few years, making records inaccessible even if they are 
preserved intact with the most modern technology. ERA will 
preserve electronic records generated in a manner that enables 
requesters to access them on computer systems now and in the 
future.
    Given both the importance and obvious magnitude of ERA, the 
Committee intends to continue to monitor NARA's acquisition 
plans, staffing levels and ability to meet established 
deadlines. In that regard, the Committee directs GAO to 
continue to provide progress reports on NARA's development of 
ERA and to report its findings to the House and Senate 
Committees on Appropriations by May 25, 2005.
    The Committee recommends an appropriation of $35,914,000 
for the Electronic Records Archives. The funding request for 
fiscal year 2005 will continue to support the initial work on 
development of the first increment of the electronic records 
system.

              ARCHIVES FACILITIES REPAIRS AND RESTORATION

Appropriations, 2004 \1\................................     $13,627,000
Budget estimate, 2005...................................       6,182,000
Committee recommendation................................      12,182,000

\1\ Reflects reduction of $81,000 pursuant to Division H, section 168 of 
Public Law 108-199.

    This account provides for the repair, alteration, and 
improvement of Archives facilities and Presidential Libraries 
nationwide, and provides adequate storage for holdings. It will 
better enable NARA to maintain its facilities in proper 
condition for public visitors, researchers, and NARA employees, 
and also maintain the structural integrity of the buildings. 
These funds will determine appropriate options for preserving 
and providing access to 20th century military service records. 
These funds will allow NARA to complete preliminary design 
studies and analysis, including workflow and cost estimates, 
for housing and access options for these massive and valuable 
records. Technology and facility approaches will also be 
examined.
    The Committee recommends an appropriation of $12,182,000. 
The Committee has included $3,000,000 for site preparation and 
construction management for the construction of a new Pacific 
Alaska Regional Archives Facility in Anchorage, Alaska. The 
recommendation also provides $2,000,000 for the repair and 
restoration of the plaza that surrounds the Lyndon Baines 
Johnson Presidential Library at the University of Texas. The 
Committee is concerned by the lack of progress on this project 
and directs NARA and the University of Texas to keep the 
Committee fully apprised of steps to commence the repair of the 
plaza this fiscal year. Further, the Committee encourages the 
parties to realign their memorandum of understanding in a 
timely fashion to reflect their agreement as to ongoing 
responsibilities for repair and maintenance of this shared 
facility. The Committee has also included $1,000,000 to design 
an addition and renovation for the John F. Kennedy Library. 
This appropriation is $6,000,000 above the President's budget 
request and $1,445,000 below the fiscal year 2004 enacted 
level.

        National Historical Publications and Records Commission


                             GRANTS PROGRAM

Appropriations, 2004 \1\................................      $9,941,000
Budget estimate, 2005...................................       3,000,000
Committee recommendation................................       5,000,000

\1\ Reflects reduction of $59,000 pursuant to Division H, section 168 of 
Public Law 108-199.

    The National Historical Publications and Records Commission 
[NHPRC] provides grants nationwide to preserve and publish 
records that document American history. Administered within the 
National Archives, which preserves Federal records, 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.
    The Committee recommends an appropriation of $5,000,000. 
This amount is $2,000,000 above the President's budget request 
and $4,941,000 less than the fiscal year 2004 enacted level.

                  National Transportation Safety Board


                         SALARIES AND EXPENSES

Appropriations, 2004 \1\................................     $73,065,000
Budget estimate, 2005...................................      74,425,000
Committee recommendation................................      76,425,000

\1\ Reflects reduction of $434,000 pursuant to Division H, section 168 
of Public Law 108-199.

    Initially established along with the Department of 
Transportation [DOT], the National Transportation Safety Board 
[NTSB] commenced operations on April 1, 1967, as an independent 
Federal agency charged by Congress with investigating every 
civil aviation accident in the United States as well as 
significant accidents in the other modes of transportation--
railroad, highway, marine and pipeline--and issuing safety 
recommendations aimed at preventing future accidents. Although 
it has always operated independently, NTSB relied on DOT for 
funding and administrative support until the Independent Safety 
Board Act of 1974 (Public Law 93-633) severed all ties between 
the two organizations starting in 1975.
    In addition to its investigatory duties, NTSB is 
responsible for maintaining the Government's database of civil 
aviation accidents and also conducts special studies of 
transportation safety issues of national significance. 
Furthermore, in accordance with the provisions of international 
treaties, NTSB supplies investigators to serve as U.S. 
Accredited Representatives for aviation accidents overseas 
involving U.S-registered aircraft, or involving aircraft or 
major components of U.S. manufacture. NTSB also serves as the 
``court of appeals'' for any airman, mechanic or mariner 
whenever certificate action is taken by the Federal Aviation 
Administration [FAA] or the U.S. Coast Guard Commandant, or 
when civil penalties are assessed by FAA.
    The Committee recommends $76,425,000 for the National 
Transportation Safety Board, which is $2,000,000 more than the 
budget request and is $3,360,000 more than the fiscal year 2004 
enacted level. The Committee has provided this additional 
funding above the budget request in order to allow NTSB to 
maintain its critical staffing infrastructure and to add those 
new staff necessary to further its safety mission. Accordingly, 
and consistent with the staffing plan that NTSB has developed, 
the Committee directs NTSB to fund its Academy at no more than 
the requested level and to utilize these additional funds to 
hire accident investigation personnel.

                         SALARIES AND EXPENSES

                              (RESCISSION)

Rescission, 2004........................................................
Budget estimate, 2005...................................     -$8,000,000
Committee recommendation................................      -8,000,000

    The fiscal year 2004 Supplemental Appropriations bill 
(Public Law 106-246) provided $19,739,000 to NTSB for emergency 
expenses associated with its investigation of the Egypt Air 
Flight 990 and Alaska Air Flight 261 accidents. These funds 
were used for wreckage location and recovery facilities, 
technical support, testing, and wreckage mock-up. All of these 
activities have been completed and an unobligated balance of 
$8,000,000 remains. The Committee recommends the requested 
rescission of this amount.

                      Office of Government Ethics


                         SALARIES AND EXPENSES

Appropriations, 2004 \1\................................     $10,675,000
Budget estimate, 2005...................................      11,238,000
Committee recommendation................................      11,238,000

\1\ Reflects reduction of $63,000 pursuant to Division H, section 168 of 
Public Law 108-199.

    The Office of Government Ethics [OGE], a small agency 
within the executive branch, was established by the Ethics in 
Government Act of 1978. Originally part of the Office of 
Personnel Management, OGE became a separate agency on October 
1, 1989 as part of the Office of Government Ethics 
Reauthorization Act of 1988.
    OGE is charged by law to provide overall direction of 
Executive Branch policies designed to prevent conflicts of 
interest and ensure high ethical standards. OGE carries out 
these responsibilities 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; by monitoring 
compliance with the public and confidential disclosure 
requirements of the Ethics Reform Act of 1978 and the Ethics 
Reform Act of 1989 to determine possible violations of 
applicable laws or regulations and recommending appropriate 
corrective action; by consulting with and assisting various 
officials in evaluating the effectiveness of applicable laws 
and the resolution of individual problems; and by preparing 
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.
    The Committee recommends an appropriation of $11,238,000 
for salaries and expenses of the Office of Government Ethics in 
fiscal year 2005. This amount is the same as the President's 
budget request.

                     Office of Personnel Management


                         SALARIES AND EXPENSES

Appropriations, 2004 \1\................................    $118,793,000
Budget estimate, 2005...................................     131,291,000
Committee recommendation................................     130,600,000

\1\ Reflects reduction of $705,000 pursuant to Division H, section 168 
of Public Law 108-199.

    The Office of Personnel Management [OPM] was established by 
Public Law 95-454, the Civil Service Reform Act of 1978, 
enacted on October 13, 1978. In that Act, the Office of 
Personnel Management was established in section 1101 of title 
5, United States Code. Subsequent sections of Chapter 11 
provide for the principal officials of the agency and the 
functions of the Director, which are really the functions of 
the Agency, as well as providing for the delegation of 
authority for personnel management from the President and, 
subsequently, by the Director.
    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 Governmentwide 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 on issues such as veterans preference. OPM 
oversees examining of applicants for employment, issues 
regulations and policies on hiring, classification and pay, 
training, investigations, 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.
    The Committee recommends an appropriation of $130,600,000 
for the salaries and expenses of the Office of Personnel 
Management. Of the amount provided no more than $10,724,000 is 
to be used for e-Government projects. This amount is $691,000 
less than the President's request and $11,807,000 above the 
fiscal year 2004 enacted level.
    Child Care.--In fiscal year 2003, the Senate report 
directed OPM to conduct a study of child care needs for Federal 
employees. The resulting report provided some valuable 
information but further examination is necessary for a more 
accurate assessment of Federal employee child care needs. The 
Committee directs the Government Accountability Office [GAO], 
in consultation with OPM and the General Service Administration 
[GSA], to further study the child care needs of Federal 
employees of all Federal agencies, including the Legislative 
and Judicial branches. In addition to using the OPM data, the 
Committee expects GAO to provide guidance and recommendations 
of possible options to develop and evaluate additional child 
care facility needs and how best to serve the needs of all 
Federal employees.
    In recent years, GSA and OPM have implemented programs that 
agencies can use to subsidize a substantial portion of child 
care expenses for lower income employees. While these 
supplemental programs are available, the Committee notes that 
only one in five agencies is offering the subsidy at this time. 
The Committee directs OPM to reevaluate its efforts to provide 
information and education to agencies on promoting this 
valuable program.
    Retirement Systems Modernization.--The Committee is aware 
that the Office of Personnel Management initiated a Retirement 
Systems Modernization Program in 1997 to automate and 
streamline the manual and paper-intensive business processes 
used to administer the Federal employee retirement program. The 
Committee recommends that OPM continue to reach out to GAO for 
guidance and support because OPM could definitely benefit from 
the experiences that GAO has documented with other Federal 
agency modernization projects. The Committee is not confident 
that this multi-year effort is free of problems. The Committee 
therefore directs GAO to do a comprehensive audit on the 
problems and any mismanagement of the modernization project.

                               limitation


                       (TRANSFER OF TRUST FUNDS)

Limitation, 2004........................................    $135,112,000
Budget estimate, 2005...................................     128,462,000
Committee recommendation................................     128,462,000

\1\ Reflects reduction of $801,900 pursuant to Division H, section 168 
of Public Law 108-199.

    These funds will be transferred from the appropriate trust 
funds of the Office of Personnel Management to cover 
administrative expenses for the retirement and insurance 
programs.
    The Committee recommends a limitation of $128,462,000. This 
amount is the same as the President's request.

                      OFFICE OF INSPECTOR GENERAL

                         salaries and expenses

Appropriations, 2004 \1\................................      $1,489,000
Budget estimate, 2005...................................       1,627,000
Committee recommendation................................       1,627,000

\1\ Reflects reduction of $8,800 pursuant to Division H, section 168 of 
Public Law 108-199.

    The Office of Inspector General is charged with 
establishing policies for conducting and coordinating efforts 
which promote economy, efficiency, and integrity in the Office 
of Personnel Management's activities which prevent and detect 
fraud, waste, and mismanagement in the agency's programs. 
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 agency 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. Administrative sanctions 
debar from participation in the health insurance program those 
health care providers whose conduct may pose a threat to the 
financial integrity of the program itself or to the well-being 
of insurance program enrollees.
    The Committee recommends an appropriation of $1,627,000 for 
salaries and expenses of the Office of Inspector General in 
fiscal year 2005. This amount is the same as the President's 
request and $138,000 above the fiscal year 2004 enacted level.

               (LIMITATION ON TRANSFER FROM TRUST FUNDS)

Limitation, 2004........................................     $14,342,000
Budget estimate, 2005...................................      16,461,000
Committee recommendation................................      16,461,000

    The Committee recommends a limitation on transfers from the 
trust funds in support of the Office of Inspector General 
activities totaling $16,461,000 for fiscal year 2005 and 
$2,119,000 above the fiscal year 2004 enacted level.

      government payment for annuitants, employees health benefits

Appropriations, 2004....................................  $7,219,000,000
Budget estimate, 2005...................................   8,135,000,000
Committee recommendation................................   8,135,000,000

    This appropriation covers the Government's share of the 
cost of health insurance for annuitants covered by the Federal 
Employees Health Benefits Program and the Retired Federal 
Employees Health Benefits Act of 1960, as well as 
administrative expenses incurred by OPM for these programs.
    The Committee recommends an appropriation of $8,135,000,000 
for Government payments for annuitants, employees health 
benefits.

       government payment for annuitants, employee life insurance

Appropriations, 2004....................................     $35,000,000
Budget estimate, 2005...................................      35,000,000
Committee recommendation................................      35,000,000

    Public Law 96-427, the Federal Employees' Group Life 
Insurance Act of 1980 requires that all employees under the age 
of 65 who separate from the Federal Government for purposes of 
retirement on or after January 1, 1990, continue to make 
contributions toward their basic life insurance coverage after 
retirement until they reach the age of 65. These retirees will 
contribute two-thirds of the cost of the basic life insurance 
premium, identical to the amount contributed by active Federal 
employees for basic life insurance coverage. As with the active 
Federal employees, the Government is required to contribute 
one-third of the cost of the premium for basic coverage. OPM, 
acting as the payroll office on behalf of Federal retirees, has 
requested, and the Committee has provided, the funding 
necessary to make the required Government contribution 
associated with annuitants' postretirement life insurance 
coverage.
    The Committee recommends an appropriation of $35,000,000 
for the Government payment for annuitants, employee life 
insurance. This amount equals the budget request.

        payment to civil service retirement and disability fund

Appropriations, 2004....................................  $9,987,000,000
Budget estimate, 2005...................................   9,772,000,000
Committee recommendation................................   9,772,000,000

    The civil service retirement and disability fund was 
established in 1920 to administer the financing and payment of 
annuities to retired Federal employees and their survivors. The 
fund covers the operation of the Civil Service Retirement 
System and the Federal Employees' Retirement System.
    This appropriation provides for the Government's share of 
retirement costs, transfers of interest on the unfunded 
liability and annuity disbursements attributable to military 
service, and survivor annuities to eligible former spouses of 
some annuitants who did not elect survivor coverage.
    The Committee recommends an appropriation of $9,772,000,000 
for payment to the civil service retirement and disability 
fund. The Committee recommendation equals the budget estimate.

                     HUMAN CAPITAL PERFORMANCE FUND

Appropriations, 2004 \1\................................        $994,000
Budget estimate, 2005...................................     300,000,000
Committee recommendation................................................

\1\ Reflects reduction of $5,900 pursuant to Division H, section 168 of 
Public Law 108-199.

    The Human Capital Performance Fund is designed to create 
performance-driven pay systems for employees and reinforce the 
value of employee performance management systems. The 
administration proposes providing additional pay over and above 
any annual, across-the-board pay raise to certain civilian 
employees based on individual or organizational performance 
and/or other critical agency human capital needs. Under the 
proposal the current GS system would remain unchanged. 
Individual employees would remain at their existing GS levels 
and on schedule for all routine pay raises such as a within-
grade increase. Any pay increase received from the Fund would 
be treated as increases to base pay for retirement and other 
purposes and would stay with an employee throughout his/her 
career.
    The Committee supports the concept of a performance-based 
pay system, but continues to be concerned about the creation of 
the Human Capital Performance Fund. The Committee believes that 
an initiative of this type should be budgeted and administered 
within the salaries and expenses of each individual agency and 
denies funding for fiscal year 2005.

                       Office of Special Counsel


                         salaries and expenses

Appropriations, 2004 \1\................................     $13,424,000
Budget estimate, 2005...................................      15,449,000
Committee recommendation................................      15,449,000

\1\ Reflects reduction of $80,000 pursuant to Division H, section 168 of 
Public Law 108-199.

    The U.S. Office of Special Counsel [OSC] was first 
established on January 1, 1979. From 1979 until 1989, it 
operated as an autonomous investigative and prosecutorial arm 
of the Merit Systems Protection Board (the Board). In 1989, 
Congress enacted the Whistleblower Protection Act, which made 
OSC an independent agency within the Executive Branch. In 1994, 
the Uniformed Services Employment and Reemployment Rights Act 
became law. It defined employment-related rights of persons in 
connection with military service, prohibited discrimination 
against them because of that service, and gave OSC new 
authority to pursue remedies for violations by Federal 
agencies.
    OSC investigates Federal employee allegations of prohibited 
personnel practices and, when appropriate, prosecutes cases 
before the Merit Systems Protection Board and enforces the 
Hatch Act. OSC also provides a channel for whistleblowing by 
Federal employees, and may transmit whistleblowing allegations 
to the agency head concerned and require an agency 
investigation and a report to Congress and the President when 
appropriate.
    The Committee is aware that OSC has a critical need for 
additional personnel to address its more than 3 years of case 
backlog. Rather than hiring only attorneys, the Committee 
expects OSC to acquire an appropriate mix of new staff that 
will maximize its ability to reduce this backlog. The Committee 
therefore directs OSC to report to the Committees on 
Appropriations, no later than March 31, 2005, regarding the 
status of its staffing efforts, particularly describing those 
new positions hired and how the reduction of OSC's case backlog 
has benefited as a result of the new personnel.
    The Committee recommends an appropriation of $15,449,000 
for the Office of Special Counsel. This amount is the same as 
the President's budget request and $2,025,000 above the fiscal 
year 2004 enacted level.

                      United States Postal Service


                   PAYMENT TO THE POSTAL SERVICE FUND

Appropriations, 2004 \1\................................     $59,660,000
Budget estimate, 2005...................................      61,709,000
Committee recommendation................................      90,709,000

\1\ Reflects reduction of $354,000 pursuant to Division H, section 168 
of Public Law 108-199.

    The Post Office dates back to 1775. It became the Postal 
Service in 1971 as an independent establishment of the 
executive branch of the United States Government. The Postal 
Service basic function and obligation is to provide postal 
services to bind the nation together through the personal, 
educational, literary, and business correspondence of the 
people. It shall provide prompt, reliable and efficient 
services to patrons in all areas and shall render postal 
services to all communities.
    The Committee recommends a total of $90,709,000 in fiscal 
year 2005 funding and advanced appropriations for payments to 
the Postal Service Fund. The increase of $29,000,000 above the 
President's request is to provide funds in the amount of 
$29,000,000 for overseas voting for prior years' liability 
under the Revenue Forgone Reform Act of 1993.
    This amount includes: $55,631,000 requested for free mail 
for the blind and overseas voting; $6,078,000 as a 
reconciliation adjustment for 2002 actual mail volume of free 
mail for the blind and overseas voting; and $29,000,000 for 
prior years' liability under the Revenue Forgone Reform Act of 
1993. In addition to these funds, $36,521,000 (an advance 
appropriation from 2004 for the 2004 costs and the 2001 
reconciliation adjustment for free mail for the blind and 
overseas voting) will become available to the U.S. Postal 
Service in fiscal year 2005.
    Revenue forgone on free and reduced-rate mail enables 
postage rates to be set at levels below the unsubsidized rates 
for certain categories of mail as authorized by subsections (c) 
and (d) of section 2401 of title 39, United States Code. Free 
mail for the blind and overseas voters will continue to be 
provided at the funding level recommended by the Committee.
    The Committee includes provisions in the bill that would 
assure that mail for overseas voting and mail for the blind 
shall continue to be free; that 6-day delivery and rural 
delivery of mail shall continue at the 1983 level; and that 
none of the funds provided be used to consolidate or close 
small rural and other small post offices in fiscal year 2005. 
These are services that must be maintained in fiscal year 2005 
and beyond.
    The Committee believes that 6-day mail delivery is one of 
the most important services provided by the Federal Government 
to its citizens. Especially in rural and small town America, 
this critical postal service is the linchpin that serves to 
bind the Nation together.
    Post Office Hours of Operation.--The Committee continues to 
be informed of the U.S. Postal Service efforts to promote 
efficiency by reducing the hours of operation at certain Post 
Offices across the Nation. The Committee is concerned that the 
Postal Service has reduced customer service hours without 
adequate consideration of peak hour public use. The Committee 
directs the Postal Service to continue to work with the various 
communities to review the hours of operation that will best 
serve the community.

                         EMERGENCY PREPAREDNESS

Appropriations, 2004....................................................
Budget estimate, 2005...................................................
Committee recommendation................................    $507,000,000

    The Emergency Preparedness Account was implemented November 
2001, to protect postal employees and postal customers from 
exposure to biohazardous materials.
    The Committee recommends an appropriation of $507,000,000 
for Postal Service fiscal year 2005 Emergency Preparedness 
activities. This funding level will afford the Postal Service 
the expenditure of: $116,000,000 to complete the biohazardous 
detection system [BDS] system nationwide; $7,000,000 to 
construct a mail irradiation facility in Washington, DC to 
irradiate Government mail; and to reimburse the Postal Service 
$384,000,000 in prior years spending on BDS system, ventilation 
and filtration equipment, the irradiation facility, and other 
related expenses. The entire amount appropriated has been 
designated as an emergency requirement pursuant to section 402 
of S. Con. Res. 95 (108th Congress), as made applicable to the 
House of Representatives by H. Res. 649 (108th Congress) and 
applicable to the Senate by section 14007 of Public Law 108-
287.
    The Committee is concerned that the deployed Biohazardous 
Detection System and Ventilation Filtration System equipment's 
inability to detect the full array of chemical and biological 
agents will pose a threat to the Nation's current and future 
mail streams. Therefore, the Committee directs the Postal 
Service to provide a report to the congressional committees of 
jurisdiction no later than March 1, 2005, regarding the use of 
these funds. The report should include: (1) a description 
specifying the equipment that has been or is planned to be 
purchased; (2) the status and timetable of this equipment's 
deployment; (3) itemization of actual and planned expenses by 
fiscal year; (4) results on the effectiveness of the 
biodetection equipment in detecting anthrax and other hazardous 
chemical and biological substances, including the sensitivity 
and specificity of the biodetection system; and (5) an 
assessment of the progress being made in the development of 
technological and nontechnological approaches to enhancing mail 
security and safety.

                        United States Tax Court


                         salaries and expenses

Appropriations, 2004 \1\................................     $39,950,000
Budget estimate, 2005...................................      41,180,000
Committee recommendation................................      41,180,000

\1\ Reflects reduction of $237,000 pursuant to Division H, section 168 
of Public Law 108-199.

    The U.S. Tax Court is an independent judicial body in the 
legislative branch under article I of the Constitution of the 
United States. The court is composed of a chief judge and 18 
judges. Decisions by the court are reviewable by the U.S. 
Courts of Appeals and, if certiorari is granted, by the Supreme 
Court.
    In their judicial duties the judges are assisted by senior 
judges, who participate in the adjudication of regular cases, 
and by special trial judges, who hear small tax cases and 
certain regular cases assigned to them by the chief judge.
    The court conducts trial sessions throughout the United 
States, including Hawaii and Alaska. The matters over which the 
Court has jurisdiction are set forth in various sections of 
title 26 of the United States Code.
    Tax Court Independent Counsel Fund.--This fund is 
established pursuant to 26 U.S.C. 7475. The fund is used by the 
Tax Court to employ independent counsel to pursue disciplinary 
matters involving practitioners admitted to practice before the 
Court.
    Tax Court Judges Survivors Annuity Fund.--This fund 
established pursuant to 26 U.S.C. 7448, is used to pay 
survivorship benefits to eligible surviving spouses and 
dependent children of deceased judges of the U.S. Tax Court. 
Participating judges pay 3.5 percent of their salaries or 
retired pay into the fund to cover creditable service for which 
payment is required. Additional funds, as are needed, are 
provided through the annual appropriation to the U.S. Tax 
Court.
    The Committee recommends an appropriation of $41,180,000 
for the U.S. Tax Court.

      White House Commission on the National Moment of Remembrance

Appropriations, 2004 \1\................................        $249,000
Budget estimate, 2005...................................         250,000
Committee recommendation................................         250,000

\1\ Reflects reduction of $1,000 pursuant to Division H, section 168 of 
Public Law 108-199.

    The Commission was established and authorized by Public Law 
106-579. The Commission will also accept gifts and generate 
product royalty revenue in order to revitalize the national 
understanding and commemoration of Memorial Day.
    The Committee recommends an appropriation of $250,000 for 
the White House Commission on the National Moment of 
Remembrance. This is the same as the President's request.

                STATEMENT CONCERNING GENERAL PROVISIONS

    The Transportation, Treasury and General Government 
appropriation bill includes general provisions which govern 
both the activities of the agencies covered by the bill, and, 
in some cases, activities of agencies, programs, and general 
government activities that are not covered by the bill. General 
provisions that are governmentwide in scope are contained in 
title VI of this bill.
    The bill contains a number of general provisions that have 
been carried in this bill for years and which are routine in 
nature and scope. General provisions in the bill are explained 
under this section of the report. Those general provisions that 
deal with a single agency only are shown immediately following 
that particular agency's or department's appropriation accounts 
in the bill. Those general provisions that address activities 
or directives affecting all of the agencies covered in this 
bill are contained in title V.

                  TITLE V--GENERAL PROVISIONS THIS ACT

    Section 501 requires pay raises to be absorbed within 
appropriated levels in this Act or previous appropriations 
Acts.
    Section 502 prohibits pay and other expenses for non-
Federal parties in regulatory or adjudicatory proceedings 
funded in this Act.
    Section 503 prohibits obligations beyond the current fiscal 
year and prohibits transfers of funds unless expressly so 
provided herein.
    Section 504 limits expenditures for consulting service 
through procurement contracts where such expenditures are a 
matter of public record and available for public inspection.
    Section 505 prohibits funds in this Act to be transferred 
without express authority.
    Section 506 prohibits the use of funds to engage in 
activities that would prohibit the enforcement of section 307 
of the 1930 Tariff Act.
    Section 507 protects employment rights of Federal employees 
who return to their civilian jobs after assignment with the 
Armed Forces.
    Section 508 prohibits the use of funds in compliance with 
the Buy American Act.
    Section 509 expresses the sense of the Congress to purchase 
only American-made equipment and products.
    Section 510 ensures that 50 percent of unobligated balances 
may remain available for certain purposes.
    Section 511 authorizes the reprogramming of funds and 
specifies the reprogramming procedures for agencies funded by 
this Act.
    Section 512 restricts the use of funds for the White House 
to request official background reports without the written 
consent of the individual who is the subject of the report.
    Section 513 ensures that the cost accounting standard shall 
not apply with respect to a contract under the Federal 
Employees Health Benefits Program.
    Section 514 references non-foreign area cost of living 
allowances.
    Section 515 waives restrictions on the purchase of non-
domestic articles, materials, and supplies in the case of 
acquisition by the Federal Government of information 
technology.
    Section 516 extends the consultation requirement beyond the 
Office of Management and Budget to all other Federal agencies 
to the extent it applies to Indian tribes.
    Section 517 prohibits the use of funds for a proposed rule 
relating to the determination that real estate brokerage is a 
financial activity.
    Section 518 requires the Tennessee Valley Authority to 
register with the Securities and Exchange Commission.
    Section 519 amends the Denali Commission Act to include 
docks, waterfront transportation development, and related 
infrastructure projects.
    Section 520 directs each agency to acquire a Chief Privacy 
Officer to assume primary responsibility for privacy and data 
protection policy.
    Section 521 allows donations to State and local candidates 
as a permissible use of Federal campaign funds.
    Section 522 amends section 432 of title 2, United States 
Code, so that the term ``support'' will not include a 
contribution by any authorized committee in amounts of $2,000 
or less (rather than the current $1,000 or less) to an 
authorized committee of any other candidate.

 TITLE VI--GENERAL PROVISIONS, DEPARTMENTS, AGENCIES, AND CORPORATIONS

    Section 601 authorizes agencies to pay travel costs of the 
families of Federal employees on foreign duty to return to the 
United States in the event of death or a life threatening 
illness of an employee.
    Section 602 requires agencies to administer a policy 
designed to ensure that all of its workplaces are free from the 
illegal use of controlled substances.
    Section 603 limits the price on vehicles to be purchased by 
the Federal Government.
    Section 604 allows funds made available to agencies for 
travel to also be used for quarters allowances and cost-of-
living allowances.
    Section 605 prohibits the Government, with certain 
specified exceptions, from employing non-U.S. citizens whose 
posts of duty would be in the continental United States.
    Section 606 ensures that agencies will have authority to 
pay the General Services Administration bills for space 
renovation and other services.
    Section 607 allows agencies to finance the costs of 
recycling and waste prevention programs with proceeds from the 
sale of materials recovered through such programs.
    Section 608 provides that funds may be used to pay rent and 
other service costs in the District of Columbia.
    Section 609 prohibits the use of appropriated funds to pay 
the salary of any nominee after the Senate voted not to approve 
the nomination.
    Section 610 precludes interagency financing of groups 
absent prior statutory approval.
    Section 611 authorizes the Postal Service to employ guards.
    Section 612 prohibits the use of appropriated funds for 
enforcing regulations disapproved in accordance with the 
applicable law of the United States.
    Section 613 limits the pay increases of certain prevailing 
rate employees.
    Section 614 limits the amount that can be used for 
redecoration of offices under certain circumstances.
    Section 615 permits interagency funding of national 
security and emergency preparedness telecommunications 
initiatives, which benefit multiple Federal departments, 
agencies, and entities.
    Section 616 requires agencies to certify that a schedule C 
appointment was not created solely or primarily to detail the 
employee to the White House.
    Section 617 requires agencies to administer a policy 
designed to ensure that all of its workplaces are free from 
discrimination and sexual harassment.
    Section 618 prohibits the use of funds to prevent Federal 
employees from communicating with Congress or to take 
disciplinary or personnel actions against employees for such 
communication.
    Section 619 prohibits training not directly related to the 
performance of official duties.
    Section 620 prohibits the expenditure of funds for the 
implementation of agreements in certain nondisclosure policies 
unless certain provisions are included in the policies.
    Section 621 prohibits use of appropriated funds for 
publicity or propaganda designed to support or defeat 
legislation pending before Congress.
    Section 622 prohibits use of appropriated funds by an 
agency to provide Federal employees home address to labor 
organizations.
    Section 623 prohibits the use of appropriated funds to 
provide nonpublic information such as mailing or telephone 
lists to any person or organization outside of the Government.
    Section 624 prohibits the use of appropriated funds for 
publicity or propaganda purposes within the United States not 
authorized by Congress.
    Section 625 directs agencies employees to use official time 
in an honest effort to perform official duties.
    Section 626 authorizes the use of current fiscal year funds 
to finance an appropriate share of the Joint Financial 
Management Improvement Program.
    Section 627 authorizes agencies to transfer funds to or 
reimburse the Policy and Operations account of GSA to finance 
an appropriate share of the Joint Financial Management 
Improvement Program.
    Section 628 prohibits the use of funds in this or any other 
Act to restrict any agency from using appropriated funds as 
they see fit to independently contract with private companies 
to provide online employment applications and processing 
services.
    Section 629 authorizes breastfeeding at any location in a 
Federal building or on Federal property.
    Section 630 permits interagency funding of the National 
Science and Technology Council.
    Section 631 requires identification of the Federal agencies 
providing Federal funds and the amount provided for all 
proposals, solicitations, grant applications, forms, 
notifications, press releases, or other publications related to 
the distribution of funding to a State.
    Section 632 continues a provision which extends the 
authorization for franchise fund pilots for 1 year with 
modification.
    Section 633 continues a provision prohibiting the use of 
funds to monitor personal information relating to the use of 
Federal internet sites; the conferees apply this provision 
government-wide.
    Section 634 continues a provision regarding contraceptive 
coverage under the Federal Employees Health Benefits Plan.
    Section 635 clarifies that the United States Anti-Doping 
Agency is the official anti-doping agency for Olympic, Pan 
American, and Paralympic sport in the United States.
    Section 636 prohibits the purchase of a product or service 
offered by the Federal Prison Industries, Inc., unless the 
Agency making such purchase determines that such product or 
service provides the best value.
    Section 637 requires each Department and Agency to evaluate 
the creditworthiness of an individual before issuing the 
individual a government purchase charge card or travel card.
    Section 638 allows the use of appropriated funds for 
official travel by Federal departments and agencies to 
participate in the fractional aircraft ownership pilot program.
    Section 639 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 640 adjusts the rate of basic pay for Federal 
employees.
    Sections 641 prohibits the expenditure of funds for the 
acquisition of additional Federal Law Enforcement Training 
facilities.
    Section 642 eliminates the 10-year limitations period 
applicable to the offset of Federal non-tax payments.
    Section 643 permits 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 allows for the offset of Federal tax refunds to 
collect delinquent State unemployment compensation 
overpayments.
    Section 645 provides for the funding of airport operations 
at Midway Atoll Airfield.
    Section 646 prohibits the use of funds related to the 2003 
version of A-76.

  COMPLIANCE WITH PARAGRAPH 7, RULE XVI, OF THE STANDING RULES OF THE 
                                 SENATE

    Paragraph 7 of rule XVI requires that Committee reports on 
general appropriations bills identify each Committee amendment 
to the House bill ``which proposes an item of appropriation 
which is not made to carry out the provisions of an existing 
law, a treaty stipulation, or an act or resolution previously 
passed by the Senate during that session.''
    The Committee recommends the following appropriations which 
lack authorization:

                      DEPARTMENT OF TRANSPORTATION

    Office of the Secretary of Transportation: Payments to air 
carriers
    Federal Highway Administration:
    Federal-aid highways
    Appalachian development highway system
    Motor Carrier Safety Administration:
    Motor carrier safety
    National motor carrier safety program
    Border enforcement program
    National Highway Traffic Safety Administration:
    Operations and research
    Highway traffic safety grants
    National driver register
    Federal Railroad Administration:
    Safety and operations
    Alaska railroad rehabilitation
    Grants to the National Railroad Passenger Corporation
    Federal Transit Administration:
    Administrative expenses
    Formula grants
    University transportation centers
    Transit planning and research
    Capitol investment grants
    Job access and reverse commute grants
    Research and Special Programs Administration:
    Research and Special Programs (Hazardous Materials Safety)
    Emergency Preparedness Grants
    Bureau of Transportation Statistics (drawdown from Federal-
aid highways)
    Surface Transportation Board

                       DEPARTMENT OF THE TREASURY

    Departmental Offices:
    Salaries and expenses
    Department-wide Systems and Capital Investments Program
    Air Transportation Stabilization Program
    Treasury Building and annex, repair and restoration

                   EXECUTIVE OFFICE OF THE PRESIDENT

    The White House Office, salaries and expenses
    Executive Residence at the White House, operating expenses
    Special Assistance to the President, salaries and expenses
    Council of Economic Advisers
    National Security Council
    Office of Administration
    Office of Management and Budget
    Office of National Drug Control Policy:
    Salaries and expenses
    Counterdrug Technology Assessment Center
    High-intensity drug trafficking areas
    Other Federal Drug Control (except Drug-Free Communities)

                          INDEPENDENT AGENCIES

    Federal Election Commission, salaries and expenses
    General Services Administration:
    Federal buildings fund
    Repairs and Alterations Construction and Acquisition of 
            Facilities
    National Transportation Safety Board
    Office of Government Ethics, salaries and expenses
    Office of Personnel Management, Human Capital Performance 
Fund

COMPLIANCE WITH PARAGRAPH 7(C), RULE XXVI, OF THE STANDING RULES OF THE 
                                 SENATE

    Pursuant to paragraph 7(c) of rule XXVI, on September 14, 
2004, the Committee ordered reported en bloc S. 2803, an 
original bill making appropriations for Agriculture, Rural 
Development, Food and Drug Administration, and Related Agencies 
programs for the fiscal year ending September 30, 2005, S. 
2804, an original bill making appropriations for the Department 
of the Interior and related agencies for the fiscal year ending 
September 30, 2005; and S. 2806, an original bill making 
appropriations for the Departments of Transportation and 
Treasury, and independent agencies for the fiscal year ending 
September 30, 2005, each subject to amendment and each subject 
to the budget allocations, by a recorded vote of 29-0, a quorum 
being present. The vote was as follows:
        Yeas                          Nays
Chairman Stevens
Mr. Cochran
Mr. Specter
Mr. Domenici
Mr. Bond
Mr. McConnell
Mr. Burns
Mr. Shelby
Mr. Gregg
Mr. Bennett
Mr. Campbell
Mr. Craig
Mrs. Hutchison
Mr. DeWine
Mr. Brownback
Mr. Byrd
Mr. Inouye
Mr. Hollings
Mr. Leahy
Mr. Harkin
Ms. Mikulski
Mr. Reid
Mr. Kohl
Mrs. Murray
Mr. Dorgan
Mrs. Feinstein
Mr. Durbin
Mr. Johnson
Ms. Landrieu

 COMPLIANCE WITH PARAGRAPH 12, RULE XXVI OF THE STANDING RULES OF THE 
                                 SENATE

    Paragraph 12 of rule XXVI requires that Committee reports 
on a bill or joint resolution repealing or amending any statute 
or part of any statute include ``(a) the text of the statute or 
part thereof which is proposed to be repealed; and (b) a 
comparative print of that part of the bill or joint resolution 
making the amendment and of the statute or part thereof 
proposed to be amended, showing by stricken-through type and 
italics, parallel columns, or other appropriate typographical 
devices the omissions and insertions which would be made by the 
bill or joint resolution if enacted in the form recommended by 
the committee.''
    In compliance with this rule, the following changes in 
existing law proposed to be made by the bill are shown as 
follows: existing law to be omitted is enclosed in black 
brackets; new matter is printed in italic; and existing law in 
which no change is proposed is shown in roman.
    With respect to this bill, it is the opinion of the 
Committee that it is necessary to dispense with these 
requirements in order to expedite the business of the Senate.

                                            BUDGETARY IMPACT OF BILL
  PREPARED IN CONSULTATION WITH THE CONGRESSIONAL BUDGET OFFICE PURSUANT TO SEC. 308(a), PUBLIC LAW 93-344, AS
                                                     AMENDED
                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                  Budget authority               Outlays
                                                             ---------------------------------------------------
                                                               Committee    Amount of    Committee    Amount of
                                                               allocation      bill      allocation      bill
----------------------------------------------------------------------------------------------------------------
Comparison of amounts in the bill with Committee allocations
 to its subcommittees of amounts in the Budget Resolution
 for 2005: Subcommittee on Transportation and Treasury:
    Discretionary...........................................       25,439       25,439       69,605   \1\ 69,601
    Mandatory...............................................       18,261       18,261       18,262       18,262
Projection of outlays associated with the recommendation:
    2005....................................................  ...........  ...........  ...........   \2\ 49,823
    2006....................................................  ...........  ...........  ...........       23,488
    2007....................................................  ...........  ...........  ...........        9,191
    2008....................................................  ...........  ...........  ...........        3,978
    2009 and future years...................................  ...........  ...........  ...........        3,312
Financial assistance to State and local governments for                NA          697           NA       11,775
 2005.......................................................
----------------------------------------------------------------------------------------------------------------
\1\ Includes outlays from prior-year budget authority.
\2\ Excludes outlays from prior-year budget authority.
NA: Not applicable.


  COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR FISCAL YEAR 2004 AND BUDGET ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL FOR FISCAL
                                                                        YEAR 2005
                                                                [In thousands of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                         Senate Committee recommendation compared with (+ or
                                                                                                                                  -)
             Item                     2004              Budget        House allowance      Committee    -----------------------------------------------------
                                  appropriation   estimate        deg.         recommendation         2004              Budget            House
                                                                                                           appropriation   estimate  allowance
------------------------------------------------------------------------------------------------------------------------- -----------------------------------

    TITLE I--DEPARTMENT OF

    Office of the Secretary

Salaries and expenses.........           80,426            102,689            86,000            +5,574           -16,689
    Immediate Office of the              (2,179)            (2,738)           (2,400)            (+221)            (-338)
     Secretary................
    Immediate Office of the                (690)            (1,070)             (725)             (+35)            (-345)
     Deputy Secretary.........
    Immediate Office of the     ................  .................  ................  ................  ................
     Secretary and Deputy
     Secretary................
    Office of the General               (14,985)           (16,920)          (15,700)            (+715)          (-1,220)
     Counsel..................
    Office of the Under                 (12,141)           (12,918)          (12,627)            (+486)            (-291)
     Secretary for
     Transportation Policy....
    Office of the Assistant              (8,418)            (8,889)           (8,600)            (+182)            (-289)
     Secretary for Budget and
     Programs.................
    Office of the Assistant              (2,268)            (2,587)           (2,500)            (+232)             (-87)
     Secretary for
     Governmental Affairs.....
    Office of the Assistant             (22,984)           (32,935)          (24,364)          (+1,380)          (-8,571)
     Secretary for
     Administration...........
    Office of Public Affairs..           (1,889)            (2,034)           (1,968)             (+79)             (-66)
    Executive Secretariat.....           (1,426)            (1,500)           (1,484)             (+58)             (-16)
    Board of Contract Appeals.             (690)              (801)             (750)             (+60)             (-51)
    Office of Small and                  (1,261)            (1,295)           (1,290)             (+29)              (-5)
     Disadvantaged Business
     Utilization..............
    Office of Intelligence and           (1,972)            (2,260)           (2,200)            (+228)             (-60)
     Security.................
    Office of the Chief                  (7,396)           (16,742)          (11,392)          (+3,996)          (-5,350)
     Information Officer......
                               -------------------------------------------------------------------------------------------------------------------------
      Subtotal................          (78,299)          (102,689)          (86,000)          (+7,701)         (-16,689)

Office of Civil Rights........            8,518              8,700             8,700              +182   ................
Rescission of excess            ................  .................         -235,000          -235,000          -235,000
 compensation for air carriers
Transportation planning,                 20,741             10,800            15,000            -5,741            +4,200
 research, and development....
Working capital fund..........         (116,026)  .................         (151,054)         (+35,028)        (+151,054)
Minority business resource                  895                900               900                +5   ................
 center program...............
    (Limitation on guaranteed           (18,367)           (18,367)          (18,367)  ................  ................
     loans)...................
Minority business outreach....            2,982              3,000             3,000               +18   ................
New headquarters building.....  ................           160,000   ................  ................         -160,000
Payments to air carriers                 51,693             50,000            52,000              +307            +2,000
 (Airport & Airway Trust Fund)
                               =========================================================================================================================
      Total, Office of the              165,255            336,089           165,600              +345          -170,489
       Secretary..............

       Federal Aviation
        Administration

Operations....................        7,486,493          7,849,000         7,784,000          +297,507           -65,000
Facilities & equipment                2,892,831          2,500,000         2,500,000          -392,831   ................
 (Airport & Airway Trust Fund)
    Rescission (Airport and             -30,000   .................          -50,000           -20,000           -50,000
     Airway Trust Fund).......
                               -------------------------------------------------------------------------------------------------------------------------
      Subtotal, F&E...........        2,862,831          2,500,000         2,450,000          -412,831           -50,000

Research, engineering, and              118,734            117,000           129,427           +10,693           +12,427
 development (Airport and
 Airway Trust Fund)...........

Grants-in-aid for airports
 (Airport and Airway Trust
 Fund):
    (Liquidation of contract         (3,379,940)        (2,800,000)       (2,800,000)        (-579,940)  ................
     authorization)...........
    (Limitation on                   (3,379,940)        (3,500,000)       (3,500,000)        (+120,060)  ................
     obligations).............
        (Small community air            (20,000)  .................          (20,000)  ................         (+20,000)
         service pilot
         program).............
    Alliance Airport, TX (Sec.            1,988   .................  ................           -1,988   ................
     167).....................
    Rescission of contract      ................  .................         -265,000          -265,000          -265,000
     authorization............
                               -------------------------------------------------------------------------------------------------------------------------
      Subtotal, Grants-in-aid.       (3,381,928)        (3,500,000)       (3,235,000)        (-146,928)        (-265,000)

War risk insurance (Sec. 105).  ................  .................          -50,000           -50,000           -50,000
                               =========================================================================================================================
      Total, Federal Aviation        10,500,046         10,466,000        10,363,427          -136,619          -102,573
       Administration.........
          (Limitations on            (3,379,940)        (3,500,000)       (3,500,000)        (+120,060)  ................
           obligations).......
          Rescissions.........          -30,000   .................          -50,000           -20,000           -50,000
          Rescissions of        ................  .................         -265,000          -265,000          -265,000
           contract authority.
                               -------------------------------------------------------------------------------------------------------------------------
      Subtotal................      (13,849,986)       (13,966,000)      (13,548,427)        (-301,559)        (-417,573)

Federal Highway Administration

Limitation on administrative           (335,612)          (349,594)         (349,594)         (+13,982)  ................
 expenses.....................
Federal-aid highways (Highway
 Trust Fund):
    (Limitation on                  (33,643,326)       (33,643,326)      (34,900,000)      (+1,256,674)      (+1,256,674)
     obligations).............
                               -------------------------------------------------------------------------------------------------------------------------
      Subtotal (limitations on      (33,643,326)       (33,643,326)      (34,900,000)      (+1,256,674)      (+1,256,674)
       obligations) (HTF).....

(Exempt obligations)..........         (931,297)          (834,632)         (834,632)         (-96,665)  ................
(Liquidation of contract            (34,000,000)       (34,000,000)      (35,000,000)      (+1,000,000)      (+1,000,000)
 authorization)...............
Miscellaneous rescission of            -207,000           -300,000          -300,000           -93,000   ................
 contract authority...........
Appalachian development                 124,263   .................          100,000           -24,263          +100,000
 highway system...............
TFIA (rescission).............  ................  .................         -100,000          -100,000          -100,000
Miscellaneous projects                   49,705   .................  ................          -49,705   ................
 (Highway trust fund) (Sec.
 162).........................
Rock County road, Jamesville,               994   .................  ................             -994   ................
 WI (Sec. 167)................
I-75 improvements, Lee County,            2,485   .................  ................           -2,485   ................
 FL (Sec. 167)................
                               =========================================================================================================================
      Total, Federal Highway            177,447   .................          100,000           -77,447          +100,000
       Administration.........
          (Limitations on           (33,643,326)       (33,643,326)      (34,900,000)      (+1,256,674)      (+1,256,674)
           obligations).......
          (Exempt obligations)         (931,297)          (834,632)         (834,632)         (-96,665)  ................
          Rescissions.........  ................  .................         -100,000          -100,000          -100,000
          Rescissions of               -207,000           -300,000          -300,000           -93,000   ................
           contract authority.
                               -------------------------------------------------------------------------------------------------------------------------
            Net total, FHWA...      (34,545,070)       (34,177,958)      (35,434,632)        (+889,562)      (+1,256,674)

 Federal Motor Carrier Safety
        Administration

Motor carrier safety                   (175,031)          (228,000)         (260,000)         (+84,969)         (+32,000)
 (limitation on administrative
 expenses) (limitation on
 obligations).................
National motor carrier safety
 program (Highway Trust Fund):
    (Liquidation of contract           (190,000)          (227,000)         (190,000)  ................         (-37,000)
     authorization)...........
    (Limitation on                     (188,879)          (227,000)         (190,000)          (+1,121)         (-37,000)
     obligations).............
    RABA transfer from FHWA...  ................  .................  ................  ................  ................
    E-Gov (Highway trust fund)  ................               450   ................  ................             -450
                               =========================================================================================================================
      Total, Federal Motor      ................               450   ................  ................             -450
       Carrier Safety Admin...
          (Limitations on              (363,910)          (455,000)         (450,000)         (+86,090)          (-5,000)
           obligations).......

   National Highway Traffic
     Safety Administration

Operations and research.......  ................           139,300   ................  ................         -139,300
Operations and research (HTF).         (149,657)  .................         (152,300)          (+2,643)        (+152,300)
Operations and research
 (Highway trust fund):
    (Liquidation of contract            (72,000)           (90,000)          (72,000)  ................         (-18,000)
     authorization)...........
    (Limitation on                      (71,575)           (90,000)          (72,000)            (+425)         (-18,000)
     obligations).............
National Driver Register                 (3,558)            (4,000)           (4,000)            (+442)  ................
 (Highway trust fund).........
                               -------------------------------------------------------------------------------------------------------------------------
      Subtotal, Operations and         (224,790)          (233,300)         (228,300)          (+3,510)          (-5,000)
       research...............

Highway traffic safety grants
 (Highway Trust Fund):
    (Liquidation of contract           (223,673)          (456,000)         (225,000)          (+1,327)        (-231,000)
     authorization)...........
    (Limitation on
     obligations):
        Highway safety                 (164,027)          (296,000)         (165,000)            (+973)        (-131,000)
         programs (Sec. 402)..
        Occupant protection             (19,882)  .................          (20,000)            (+118)         (+20,000)
         incentive grants
         (Sec. 405)...........
        Alcohol-impaired                (39,764)  .................          (40,000)            (+236)         (+40,000)
         driving
         countermeasures
         grants (Sec. 410)....
    Emergency medical services  ................           (10,000)  ................  ................         (-10,000)
     grants (Sec. 407)........
    State traffic safety info   ................           (50,000)  ................  ................         (-50,000)
     system improvement grants
     (Sec. 412)...............
    Safety Incentive Grants     ................          (100,000)  ................  ................        (-100,000)
     for primary seat belt
     laws.....................
                               -------------------------------------------------------------------------------------------------------------------------
      Subtotal, limitation on          (223,673)          (456,000)         (225,000)          (+1,327)        (-231,000)
       obligations............
                               =========================================================================================================================
      Total, National Highway   ................           139,300   ................  ................         -139,300
       Traffic Safety Admin...
          (Limitations on              (448,463)          (550,000)         (453,300)          (+4,837)         (-96,700)
           obligations).......
                               -------------------------------------------------------------------------------------------------------------------------
            Total budgetary            (448,463)          (689,300)         (453,300)          (+4,837)        (-236,000)
             resources........

       Federal Railroad
        Administration

Safety and operations.........          130,053            142,396           139,849            +9,796            -2,547
Railroad research and                    33,824             36,025            35,225            +1,401              -800
 development..................
Amtrak RRIF repayment                     2,982   .................  ................           -2,982   ................
 deferment....................
Pennsylvania Station            ................  .................  ................  ................  ................
 Redevelopment project
 (advance appropriation)......
Next generation high-speed               37,179             10,000            20,000           -17,179           +10,000
 rail.........................
Alaska Railroad rehabilitation           24,853   .................           25,000              +147           +25,000
Grants to the National                1,217,773            900,000         1,217,000              -773          +317,000
 Railroad Passenger
 Corporation..................
                               =========================================================================================================================
      Total, Federal Railroad         1,446,664          1,088,421         1,437,074            -9,590          +348,653
       Administration.........

Federal Transit Administration

Administrative expenses.......           15,011   .................            9,984            -5,027            +9,984
Administrative expenses                 (60,044)  .................          (68,016)          (+7,972)         (+68,016)
 (Highway Trust Fund, Mass
 Transit Account) (limitation
 on obligations)..............
    Office of the                          (965)  .................             (900)             (-65)            (+900)
     Administrator............
    Office of Cheif Counsel...           (3,870)  .................           (4,050)            (+180)          (+4,050)
    Office of Civil Rights....           (2,701)  .................           (2,750)             (+49)          (+2,750)
    Office of Communications             (1,162)  .................           (1,210)             (+48)          (+1,210)
     and Congressional Affairs
    Office of Budget and                 (6,195)  .................           (6,700)            (+505)          (+6,700)
     Policy...................
    Office of of Planning.....           (3,646)  .................           (4,000)            (+354)          (+4,000)
    Office of of Program                 (7,115)  .................           (7,120)              (+5)          (+7,120)
     Management...............
    Office of Research,                  (4,826)  .................           (4,830)              (+4)          (+4,830)
     Demonstration and
     Innovation...............
    Office of Administration..           (6,716)  .................           (6,725)              (+9)          (+6,725)
    Central Account...........          (16,734)  .................          (18,015)          (+1,281)         (+18,015)
    Regional offices..........          (18,938)  .................          (19,200)            (+262)         (+19,200)
    National Transit database.           (2,187)  .................           (2,500)            (+313)          (+2,500)
                               -------------------------------------------------------------------------------------------------------------------------
      Subtotal................          (75,055)  .................          (78,000)          (+2,945)         (+78,000)
                               -------------------------------------------------------------------------------------------------------------------------
      Subtotal, Administrative          (75,055)  .................          (78,000)          (+2,945)         (+78,000)
       expenses...............

Administrative expenses per     ................            79,931   ................  ................          -79,931
 President's request..........
Formula grants................          763,270   .................          512,918          -250,352          +512,918
Formula grants (Highway Trust        (3,053,080)        (5,622,871)       (3,494,257)        (+441,177)      (-2,128,614)
 Fund) (limitation on
 obligations).................
Formula grants (rescission)...  ................  .................  ................  ................  ................
                               -------------------------------------------------------------------------------------------------------------------------
      Subtotal, Formula grants       (3,816,350)        (5,622,871)       (4,007,175)        (+190,825)      (-1,615,696)

University transportation                 1,193   .................              768              -425              +768
 research.....................
University transportation                (4,772)  .................           (5,232)            (+460)          (+5,232)
 research (Highway Trust Fund,
 Mass Transit Acct)
 (limitation on obligations)..
                               -------------------------------------------------------------------------------------------------------------------------
      Subtotal, University               (5,965)  .................           (6,000)             (+35)          (+6,000)
       transportation research

Transit planning and research.           25,051   .................           16,384            -8,667           +16,384
Transit planning and research          (100,205)  .................         (111,616)         (+11,411)        (+111,616)
 (Highway Trust Fund, Mass
 Transit Account) (limitation
 on obligations)..............
                               -------------------------------------------------------------------------------------------------------------------------
      Subtotal, Transit                (125,256)  .................         (128,000)          (+2,744)        (+128,000)
       planning and research..

    Rural transportation                 (5,219)  .................           (5,250)             (+31)          (+5,250)
     assistance...............
    National Transit Institute           (3,976)  .................           (4,000)             (+24)          (+4,000)
    Transit cooperative                  (8,201)  .................           (8,250)             (+49)          (+8,250)
     research.................
    Metropolitan planning.....          (60,030)  .................          (60,386)            (+356)         (+60,386)
    State planning............          (12,540)  .................          (12,614)             (+74)         (+12,614)
    National planning and               (35,291)  .................          (37,500)          (+2,209)         (+37,500)
     research.................
                               -------------------------------------------------------------------------------------------------------------------------
      Subtotal, Transit                (125,257)  .................         (128,000)          (+2,743)        (+128,000)
       planning and research..

Trust fund share of expenses         (5,812,702)          (329,006)       (6,764,976)        (+952,274)      (+6,435,970)
 (Highway Trust Fund)
 (liquidation of contract
 authorization)...............
Capital investment grants.....          623,798   .................          436,970          -186,828          +436,970
Capital investment grants            (2,495,191)  .................       (2,976,855)        (+481,664)      (+2,976,855)
 (Highway Trust Fund, Mass
 Transit Account) (limitation
 on obligations)..............
                               -------------------------------------------------------------------------------------------------------------------------
      Subtotal, Capital              (3,118,989)  .................       (3,413,825)        (+294,836)      (+3,413,825)
       investment grants......

Major capital investment        ................         1,234,192   ................  ................       -1,234,192
 grants.......................
Major capital investment        ................          (329,006)  ................  ................        (-329,006)
 grants (Highway Trust Fund,
 Mass Transit Account)
 (Limitation on obligations)..
    Fixed guideway                   (1,199,388)  .................       (1,214,400)         (+15,012)      (+1,214,400)
     modernization............
    Buses and bus-related              (603,618)  .................         (725,000)        (+121,382)        (+725,000)
     facilities...............
    New starts................       (1,315,984)  .................       (1,474,425)        (+158,441)      (+1,474,425)
                               -------------------------------------------------------------------------------------------------------------------------
      Subtotal................       (3,118,990)  .................       (3,413,825)        (+294,835)      (+3,413,825)

Job access and reverse commute           24,853   .................           16,000            -8,853           +16,000
 grants.......................
    (Highway Trust Fund, Mass           (99,410)  .................         (109,000)          (+9,590)        (+109,000)
     Transit Account)
     (limitation on
     obligations).............
                               -------------------------------------------------------------------------------------------------------------------------
      Subtotal, Job access and         (124,263)  .................         (125,000)            (+737)        (+125,000)
       reverse commute grants.
                               =========================================================================================================================
      Total, Federal Transit          1,453,176   .................          993,024          -460,152          +993,024
       Administration.........
          FTA per President's   ................         1,314,123   ................  ................       -1,314,123
           request............
          (Limitations on            (5,812,702)        (5,951,877)       (6,764,976)        (+952,274)        (+813,099)
           obligations).......
                               -------------------------------------------------------------------------------------------------------------------------
            Total budgetary          (7,265,878)        (7,266,000)       (7,758,000)        (+492,122)        (+492,000)
             resources, FTA...

     Saint Lawrence Seaway
    Development Corporation

Operations and maintenance               14,315             15,900            15,900            +1,585   ................
 (Harbor Maintenance Trust
 Fund)........................

    Maritime Administration

Maritime security program.....           98,118             98,700            98,700              +582   ................
Operations and training.......          106,366            109,300           110,910            +4,544            +1,610
Ship disposal.................           16,115             21,616            21,616            +5,501   ................

Maritime Guaranteed Loan
 (Title XI) Program Account:
    Administrative expenses...            4,471              4,764             4,764              +293   ................
National defense tank vessel    ................  .................          150,000          +150,000          +150,000
 construction program.........
                               -------------------------------------------------------------------------------------------------------------------------
      Total, Maritime                   225,070            234,380           385,990          +160,920          +151,610
       Administration.........
          Rescissions.........           -4,107   .................           -1,900            +2,207            -1,900
                               -------------------------------------------------------------------------------------------------------------------------
            Net total,                  220,963            234,380           384,090          +163,127          +149,710
             Maritime
             Administration...

 Research and Special Programs
        Administration

Research and special programs.           46,167             52,936            49,000            +2,833            -3,936
Pipeline safety:
    Pipeline Safety Fund......           52,991             51,073            52,073              -918            +1,000
    Oil Spill Liability Trust            12,923             19,000            19,000            +6,077   ................
     Fund.....................
                               -------------------------------------------------------------------------------------------------------------------------
      Subtotal, Pipeline                 65,914             70,073            71,073            +5,159            +1,000
       safety program (incl
       reserve)...............

Emergency preparedness grants:
    Emergency preparedness                  199                200               200                +1   ................
     fund.....................
    Limitation on emergency             (14,300)           (14,300)          (14,300)  ................  ................
     preparedness fund........
                               =========================================================================================================================
      Total, Research and               112,280            123,209           120,273            +7,993            -2,936
       Special Programs Admin.

  Office of Inspector General

Salaries and expenses.........           55,670             59,000            59,000            +3,330   ................

 Surface Transportation Board

Salaries and expenses.........           19,406             20,521            21,250            +1,844              +729
    Offsetting collections....           -1,050             -1,050            -1,050   ................  ................
                               -------------------------------------------------------------------------------------------------------------------------
      Total, Surface                     18,356             19,471            20,200            +1,844              +729
       Transportation Board...
                               =========================================================================================================================
      Net total, title I,            13,927,172         13,496,343        12,708,588        -1,218,584          -787,755
       Department of
       Transportation.........
          Appropriations......      (14,168,279)       (13,796,343)      (13,660,488)        (-507,791)        (-135,855)
          Rescissions.........         (-34,107)  .................        (-386,900)        (-352,793)        (-386,900)
          Rescission of               (-207,000)         (-300,000)        (-565,000)        (-358,000)        (-265,000)
           contract authority.
          (Limitations on           (43,648,341)       (44,100,203)      (46,068,276)      (+2,419,935)      (+1,968,073)
           obligations).......
          (Exempt obligations)         (931,297)          (834,632)         (834,632)         (-96,665)  ................
                               -------------------------------------------------------------------------------------------------------------------------
            Net total               (58,506,810)       (58,431,178)      (59,611,496)      (+1,104,686)      (+1,180,318)
             budgetary
             resources........
                               =========================================================================================================================
Transportation discretionary         13,927,172         13,496,343        12,708,588        -1,218,584          -787,755
 total........................

  TITLE II--DEPARTMENT OF THE
           TREASURY

Departmental Offices..........          175,070            185,041           161,313           -13,757           -23,728
    Executive direction.......  ................  .................          (10,020)         (+10,020)         (+10,020)
    General Counsel...........  ................  .................           (7,532)          (+7,532)          (+7,532)
    Economic policies and and   ................  .................          (33,186)         (+33,186)         (+33,186)
     programs.................
    Financial policies and      ................  .................          (26,914)         (+26,914)         (+26,914)
     programs.................
    Financial crimes..........  ................  .................           (5,912)          (+5,912)          (+5,912)
    Treasury wide management..  ................  .................          (17,569)         (+17,569)         (+17,569)
    Administration............  ................  .................          (60,180)         (+60,180)         (+60,180)
                               -------------------------------------------------------------------------------------------------------------------------
      Subtotal................  ................  .................         (161,313)        (+161,313)        (+161,313)

Office of Foreign Asset         ................  .................           22,291           +22,291           +22,291
 Control......................
Department-wide systems and              36,185             36,072            30,260            -5,925            -5,812
 capital investments programs.
Office of Inspector General...           12,923             14,158            16,158            +3,235            +2,000
Treasury Inspector General for          127,279            129,126           129,126            +1,847   ................
 Tax Administration...........
Treasury Inspector General....  ................  .................  ................  ................  ................
Air Transportation                        2,523              2,800             2,000              -523              -800
 Stabilization Program Account
Treasury Building and Annex              24,853             20,316            12,316           -12,537            -8,000
 Repair and Restoration.......
Expanded Access to Financial    ................            -4,000            -4,000            -4,000   ................
 Services (rescission)........
Violent crime reduction         ................            -1,000            -1,200            -1,200              -200
 program (rescission).........
Financial Crimes Enforcement             57,231             64,502            72,502           +15,271            +8,000
 Network......................
Financial Management Service..          227,210            230,930           230,930            +3,720   ................
Alcohol and Tobacco Tax and              79,528             81,942            83,000            +3,472            +1,058
 Trade Bureau.................
Bureau of the Public Debt.....          172,627            175,166           175,166            +2,539   ................
Payment of government losses                500              1,000             1,000              +500   ................
 in shipment..................

Internal Revenue Service:
    Processing, Assistance,           4,009,205          4,148,403         4,107,325           +98,120           -41,078
     and Management...........
    Tax Law Enforcement.......        4,171,244          4,564,350         4,519,350          +348,106           -45,000
    Information Systems.......        1,581,575          1,641,768         1,606,768           +25,193           -35,000
    Business systems                    387,699            285,000           125,000          -262,699          -160,000
     modernization............
    BSM (rescission of          ................  .................         -140,000          -140,000          -140,000
     unapproved funds)........
    Health Insurance Tax                 34,794             34,841            34,841               +47   ................
     Credit Administration....
                               -------------------------------------------------------------------------------------------------------------------------
      Subtotal................       10,184,517         10,674,362        10,253,284           +68,767          -421,078
                               =========================================================================================================================
      Total, title II,               11,100,446         11,610,415        11,184,146           +83,700          -426,269
       Department of the
       Treasury...............
          Appropriations......       11,100,446         11,615,415        11,329,346          +228,900          -286,069
          Rescissions.........  ................            -5,000          -145,200          -145,200          -140,200
                               =========================================================================================================================

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

Compensation of the President
 and the White House Office:
    Compensation of the                     450   .................              450   ................             +450
     President................
    Salaries and Expenses.....           68,760   .................           63,698            -5,062           +63,698
Homeland Security Council.....  ................  .................  ................  ................  ................
Executive Residence at the
 White House:
    Operating Expenses........           12,427   .................           12,760              +333           +12,760
    White House Repair and                4,200   .................            1,900            -2,300            +1,900
     Restoration..............
Council of Economic Advisers..            4,475   .................            4,040              -435            +4,040
Office of Policy Development..            4,085   .................            2,392            -1,693            +2,392
National Security Council.....           10,489   .................            8,932            -1,557            +8,932
Office of Administration......           82,337   .................           92,869           +10,532           +92,869
The White House salaries and    ................           181,048   ................  ................         -181,048
 expenses.....................
Office of Management and                 66,763             76,565            68,411            +1,648            -8,154
 Budget.......................
Office of National Drug
 Control Policy:
    Salaries and expenses.....           27,832             27,609            27,000              -832              -609
    Counterdrug Technology               41,752             40,000            42,000              +248            +2,000
     Assessment Center........
                               -------------------------------------------------------------------------------------------------------------------------
      Subtotal................           69,584             67,609            69,000              -584            +1,391

Federal Drug Control Programs:
    High Intensity Drug                 225,015            208,350           228,350            +3,335           +20,000
     Trafficking Areas Program
    Other Federal Drug Control          227,649            235,000           195,500           -32,149           -39,500
     Programs.................
Unanticipated Needs...........              994              1,000             1,000                +6   ................
Special Assistance to the
 President and the Official
 Residence of the Vice
 President:
    Salaries and expenses.....            4,435              4,571             4,571              +136   ................
    Operating expenses........              329                333               333                +4   ................
                               =========================================================================================================================
      Total, title III,                 781,992            774,476           754,206           -27,786           -20,270
       Executive Office of the
       President and Funds
       Appropriated to the
       President..............

TITLE IV--INDEPENDENT AGENCIES

Architectural and
 Transportation Barriers
 Compliance Board:
    Salaries and expenses.....            5,369              5,686             5,686              +317   ................

National Transportation Safety
 Board:
    Salaries and expenses.....           73,065             74,425            76,425            +3,360            +2,000
        Rescission of prior     ................            -8,000            -8,000            -8,000   ................
         year funds...........
    Emergency fund............              596   .................  ................             -596   ................
Committee for Purchase From               4,697              4,672             4,672               -25   ................
 People Who Are Blind or
 Severely Disabled............
Federal Election Commission...           50,938             52,159            52,159            +1,221   ................
Election Assistance
 Commission:
    Salaries and expenses.....            1,193             20,000            10,000            +8,807           -10,000
    Election reform programs..        1,491,150             30,000   ................       -1,491,150           -30,000
Federal Labor Relations                  29,436             29,673            25,673            -3,763            -4,000
 Authority....................
    FLRA (rescission).........  ................  .................           -3,000            -3,000            -3,000
Federal Maritime Commission...           18,362             19,496            19,496            +1,134   ................
General Services
 Administration:
    Federal Buildings Fund:
        Appropriations........          443,369   .................  ................         -443,369   ................
        Limitations on
         availability of
         revenue:
            Construction and           (708,268)          (650,223)         (710,823)          (+2,555)         (+60,600)
             acquisition of
             facilities.......
            Repairs and                (991,300)          (980,222)         (980,222)         (-11,078)  ................
             alterations......
            Installment                (169,745)          (161,442)         (161,442)          (-8,303)  ................
             acquisition
             payments.........
            Rental of space...       (3,280,187)        (3,672,315)       (3,597,315)        (+317,128)         (-75,000)
            Building                 (1,608,708)        (1,709,522)       (1,709,522)        (+100,814)  ................
             Operations.......
                               -------------------------------------------------------------------------------------------------------------------------
              Subtotal,              (6,758,208)        (7,173,724)       (7,159,324)        (+401,116)         (-14,400)
               limitations....
        Repayment of Debt.....          (54,256)           (41,000)          (41,000)         (-13,256)  ................
                               -------------------------------------------------------------------------------------------------------------------------
          Total, Federal                443,369   .................  ................         -443,369   ................
           Buildings Fund.....
              (Limitations)...       (6,812,464)        (7,214,724)       (7,200,324)        (+387,860)         (-14,400)
                               =========================================================================================================================

    Governmentwide policy.....           56,050             62,100            62,100            +6,050   ................
    Operating Expenses........           87,590             82,175            85,175            -2,415            +3,000
    Office of Inspector                  38,938             42,351            42,351            +3,413   ................
     General..................
    Electronic Government (E-             2,982              5,000             3,000               +18            -2,000
     Gov) Fund................
    General supply fund for E-  ................            40,000   ................  ................          -40,000
     Gov (fiscal year 2005
     Sec. 409)................
    Allowances and Office                 3,373              3,449             3,106              -267              -343
     Staff for Former
     Presidents...............
    Expenses, Presidential      ................             7,700             7,700            +7,700   ................
     transition...............
    Federal building project             13,917   .................  ................          -13,917   ................
     (fiscal year 2004 Sec.
     408).....................
    San Joaquin conveyance               -1,000   .................  ................           +1,000   ................
     (fiscal year 2004 Sec.
     412).....................
    Middle River Depot sale     ................  .................  ................  ................  ................
     (fiscal year 2005 Sec.
     407).....................
    Federal building            ................  .................         -106,000          -106,000          -106,000
     construction schedule
     adjustments (Sec. 409)...
                               -------------------------------------------------------------------------------------------------------------------------
      Total, General Services           645,219            242,775            97,432          -547,787          -145,343
       Administration.........
                               =========================================================================================================================

Merit Systems Protection
 Board:
    Salaries and Expenses.....           32,683             37,303            34,677            +1,994            -2,626
    Limitation on                         2,611   .................  ................           -2,611   ................
     administrative expenses..
Morris K. Udall Foundation:
    Morris K. Udall Trust Fund            1,984   .................            1,996               +12            +1,996
    Environmental Dispute                 1,301                700             1,309                +8              +609
     Resolution Fund..........

National Archives and Records
 Administration:
    Operating expenses........          255,185            266,945           266,945           +11,760   ................
    Electronic records archive           35,702             35,914            35,914              +212   ................
    Reduction of debt.........           -7,810             -8,000            -8,000              -190   ................
    Repairs and Restoration...           13,627              6,182            12,182            -1,445            +6,000
    National Historical                   9,941              3,000             5,000            -4,941            +2,000
     Publications and Records
     Commission: Grants
     program..................
                               -------------------------------------------------------------------------------------------------------------------------
      Total, National Archives          306,645            304,041           312,041            +5,396            +8,000
       and Records Admin......
                               =========================================================================================================================

Office of Government Ethics...           10,675             11,238            11,238              +563   ................
Office of Personnel
 Management:
    Salaries and Expenses.....          118,793            131,291           130,600           +11,807              -691
        Limitation on                   135,112            128,462           128,462            -6,650   ................
         administrative
         expenses.............
    Office of Inspector                   1,489              1,627             1,627              +138   ................
     General..................
        Limitation on                    14,342             16,461            16,461            +2,119   ................
         administrative
         expenses.............
    Government Payment for            7,219,000          8,135,000         8,135,000          +916,000   ................
     Annuitants, Employees
     Health Benefits..........
    Government Payment for               35,000             35,000            35,000   ................  ................
     Annuitants, Employee Life
     Insurance................
    Payment to Civil Service          9,987,000          9,772,000         9,772,000          -215,000   ................
     Retirement and Disability
     Fund.....................
    Human Capital Performance               994            300,000   ................             -994          -300,000
     Fund.....................
                               -------------------------------------------------------------------------------------------------------------------------
      Total, Office of               17,511,730         18,519,841        18,219,150          +707,420          -300,691
       Personnel Management...

Office of Special Counsel.....           13,424             15,449            15,449            +2,025   ................

Postal Service:
    Payment to the Postal                28,829   .................           29,000              +171           +29,000
     Service Fund.............
        Advance appropriation            30,831             36,521            36,521            +5,690   ................
         provided in previous
         act for fiscal year
         2005.................
                               -------------------------------------------------------------------------------------------------------------------------
          Total available for            59,660             36,521            65,521            +5,861           +29,000
           fiscal year 2005...

        Advance appropriation            36,306             61,709            61,709           +25,403   ................
         for fiscal year 2006.

    Emergency preparedness      ................  .................          507,000          +507,000          +507,000
     plan (emergency
     appropriations)..........
United States Tax Court.......           39,950             41,180            41,180            +1,230   ................
White House Commission on the               249                250               250                +1   ................
 National Moment of
 Remembrance..................
                               =========================================================================================================================
      Total, title IV,               20,337,243         19,499,118        19,552,063          -785,180           +52,945
       Independent Agencies...
                               =========================================================================================================================
 Title V--General Provisions,
           This Act

Continued dumping/subsidy       ................        -1,450,000   ................  ................       +1,450,000
 offset (fiscal year 2005 Sec.
 635).........................
Eliminate 10 year limit on      ................            -2,000            -2,000            -2,000   ................
 debt collection (fiscal year
 2005 Sec. 636)...............
HHS info match--new hires       ................          -125,000          -125,000          -125,000   ................
 (fiscal year 2005 Sec. 637)..
Collect unemployment            ................           -20,000           -20,000           -20,000   ................
 overpayment (fiscal year 2005
 Sec. 638)....................
                               -------------------------------------------------------------------------------------------------------------------------
      Total, General            ................        -1,597,000          -147,000          -147,000        +1,450,000
       provisions.............
                               =========================================================================================================================

      Grand total.............       46,146,853         43,783,352        44,052,003        -2,094,850          +268,651
          Appropriations......      (46,320,823)       (43,998,122)      (44,554,873)      (-1,765,950)        (+556,751)
          (Emergency            ................  .................         (507,000)        (+507,000)        (+507,000)
           appropriations)....
          Rescissions.........         (-34,107)          (-13,000)        (-543,100)        (-508,993)        (-530,100)
          Rescission of               (-207,000)         (-300,000)        (-565,000)        (-358,000)        (-265,000)
           contract authority.
          Advance                       (30,831)           (36,521)          (36,521)          (+5,690)  ................
           appropriation
           provided in
           previous act for
           fiscal year 2005...
          Advance                       (36,306)           (61,709)          (61,709)         (+25,403)  ................
           appropriation......
          (Limitation on            (43,648,341)       (44,100,203)      (46,068,276)      (+2,419,935)      (+1,968,073)
           obligations).......
          (Rescissions of       ................  .................  ................  ................  ................
           limitations on
           obligations).......
          (Exempt obligations)         (931,297)          (834,632)         (834,632)         (-96,665)  ................
                               -------------------------------------------------------------------------------------------------------------------------
            Net total               (90,726,491)       (88,718,187)      (90,954,911)        (+228,420)      (+2,236,724)
             budgetary
             resources........
--------------------------------------------------------------------------------------------------------------------------------------------------------



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