[House Report 113-464]
[From the U.S. Government Publishing Office]


113th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     113-464

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



 
 DEPARTMENTS OF TRANSPORTATION, AND HOUSING AND URBAN DEVELOPMENT, AND 
               RELATED AGENCIES APPROPRIATIONS BILL, 2015

                                _______
                                

  May 27, 2014.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

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

                              R E P O R T

                             together with

                     MINORITY AND ADDITIONAL VIEWS

                        [To accompany H.R. 4745]

    The Committee on Appropriations submits the following 
report in explanation of the accompanying bill making 
appropriations for the Departments of Transportation, and 
Housing and Urban Development, and related agencies for the 
fiscal year ending September 30, 2015.

                        INDEX TO BILL AND REPORT

_______________________________________________________________________


                                                            Page number

                                                            Bill Report
Title I--Department of Transportation......................     2
                                                                      5
Title II--Department of Housing and Urban Development......    70
                                                                     67
Title III--Related Agencies................................   139
                                                                     99
Title IV--General Provisions...............................   147
                                                                    105

                     PROGRAM, PROJECT, AND ACTIVITY

    During fiscal year 2015, 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'' (PPA) shall mean any item for which a dollar amount 
is contained in appropriations acts (including joint 
resolutions providing continuing appropriations) and 
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 account 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.
    The Committee expects that the operating plans will speak 
to each number listed in the reports, and warns that efforts to 
operate programs at levels contrary to the levels recommended 
and directed in these reports would not be advised.

              OPERATING PLANS AND REPROGRAMMING GUIDELINES

    The Committee includes a provision (Sec. 405) 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 advance approval of the 
House and Senate Committees on Appropriations of any proposal 
to reprogram funds that:
  --creates a new program;
  --eliminates a program, project, or activity (PPA);
  --increases funds or personnel for any PPA for which funds 
        have been denied or restricted by the Congress;
  --redirects funds that were directed in such reports for a 
        specific activity to a different purpose;
  --augments an existing PPA in excess of $5,000,000 or 10 
        percent, whichever is less;
  --reduces an existing PPA by $5,000,000 or 10 percent, 
        whichever is less; or
  --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 retains the requirement that each agency 
submit an operating plan 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 must 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 also 
must identify items of special Congressional interest. In 
certain instances, the Committee may direct the agency to 
submit a revised operating plan for approval or may direct 
changes to the operating plan if the plan is not consistent 
with the directives of the conference report and statement of 
the managers.
    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 of proposed changes on the budget request for 
the following fiscal year. Any reprogramming request shall 
include any out-year budgetary impacts and a separate 
accounting of program or mission impacts on estimated carryover 
funds. Reprogramming procedures shall apply to funds provided 
in this bill, unobligated balances from previous appropriations 
Acts that are available for obligation or expenditure in fiscal 
year 2015, and non-appropriated resources such as fee 
collections that are used to meet program requirements in 
fiscal year 2015.
    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. 
Except in emergency situations, reprogramming requests should 
be submitted no later than June 28, 2015. 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 that no funds may be 
obligated from working capital fund accounts to augment 
programs, projects or activities for which appropriations have 
been specifically rejected by the Congress, or to increase 
funds or personnel for any PPA above the amounts appropriated 
by this Act.

                  CONGRESSIONAL BUDGET JUSTIFICATIONS

    Budget justifications are the primary tool used by the 
House and Senate Committees on Appropriations to evaluate the 
resource requirements and fiscal needs 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 the Office of Management and Budget 
(OMB). In fact, OMB Circular A-11, part 1 specifically 
instructs agencies to consult with your congressional 
committees beforehand. The Committee expects that all agencies 
funded under this Act will heed this directive.
    The Committee expects all of the budget justifications to 
provide the data needed to make appropriate and meaningful 
funding decisions.The Committee has made some specific 
suggestions for the 2016 submission, and while the layout has 
improved, it seems the content has shrunk, especially in many 
salaries and expenses accounts. Every dollar, full-time 
equivalent/full-time position, and activity should be 
represented and accounted for. Grant and technical assistance 
accounts need more detail on how the funds were spent, and are 
proposed to be spent.
    The Committee continues the direction that justifications 
submitted with the fiscal year 2016 budget request by agencies 
funded under this Act 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 this 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, detailed data on all programs, and 
comprehensive information on any office or agency 
restructurings. 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 2016 
to the fiscal year 2015 enacted levels.
    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 each agency 
will coordinate with the House and Senate Committees on 
Appropriations in advance on its planned presentation for its 
budget justification materials in support of the fiscal year 
2016 budget request.

                    SURFACE AUTHORIZING LEGISLATION

    In order to be aware of how funds are allocated and spent, 
the Committee directs the Department of Transportation to 
report to the Committees on Appropriations of the House of 
Representatives and the Senate within 45 days of enactment of 
any surface extension or reauthorization on how the Department 
will enact the provisions of such extension or reauthorization, 
the allocations by state, and the effects on the accounts in 
the Highway Trust Fund. The Committee notes that the Department 
of Transportation failed to provide this report following 
enactment of MAP-21 and expects better follow through on the 
next surface bill.

                 TITLE I--DEPARTMENT OF TRANSPORTATION

                        Office of the Secretary

                         SALARIES AND EXPENSES




Appropriation, fiscal year 2014.......................      $107,000,000
Budget request, fiscal year 2015......................       109,916,000
Recommended in the bill...............................       103,000,000
Bill compared with:
    Appropriation, fiscal year 2014...................        -4,000,000
    Budget request, fiscal year 2015..................        -6,916,000


                        COMMITTEE RECOMMENDATION

    The bill provides $103,000,000 for the salaries and 
expenses of the offices comprising the Office of the Secretary 
of Transportation (OST). The Committee's recommendation is 
$4,000,000 below the 2014 enacted level and $6,916,000 below 
the request. The Committee's recommendation includes individual 
funding for each of these offices as has been done in prior 
years. The following table (dollars in thousands) compares the 
fiscal year 2014 enacted level to the fiscal year 2015 budget 
request and the Committee's recommendation by office. The 
Committee assumes no increases in the number of full-time 
equivalents (FTE) in fiscal year 2015 and strongly urges the 
Department to manage hiring and attrition in 2014 to meet these 
levels for 2015. Reductions are also encouraged in the areas of 
travel and contracts.

----------------------------------------------------------------------------------------------------------------
                                                                                 Fiscal year--
                                                              --------------------------------------------------
                                                                                                       2015
                                                                 2014 enacted     2015 request    recommendation
----------------------------------------------------------------------------------------------------------------
Office of the Secretary......................................           $2,652           $2,696           $2,600
Deputy Secretary.............................................            1,000            1,011              980
Executive Secretariat........................................            1,714            1,746            1,700
Policy.......................................................           10,271           10,417            9,500
Small Business...............................................            1,386            1,414            1,400
Intelligence and Security....................................           10,778           11,055           10,600
Chief Information Officer....................................           15,695           16,106           15,500
General Counsel..............................................           19,900           20,312           19,000
Government Affairs...........................................            2,530            2,567            2,500
Budget.......................................................           12,676           13,111           12,500
Administration...............................................           26,378           27,420           24,720
Public Affairs...............................................            2,020            2,061            2,000
                                                              --------------------------------------------------
      Total Salaries and Expenses............................          107,000          109,916          103,000
----------------------------------------------------------------------------------------------------------------

    Immediate Office of the Secretary.--The immediate Office of 
the Secretary has primary responsibility to provide overall 
planning, direction, and control of departmental affairs.
    Immediate Office of the Deputy Secretary.--The Office of 
the Deputy Secretary has primary responsibility to assist the 
Secretary in the overall planning, direction, and control of 
departmental affairs. The Deputy Secretary serves as the chief 
operating officer of the Department of Transportation.
    Executive Secretariat.--The Executive Secretariat assists 
the Secretary and Deputy Secretary in carrying out their 
responsibilities by controlling and coordinating internal and 
external documents.
    Office of the Under Secretary of Transportation for 
Policy.--The Office of the Under Secretary of Transportation 
for Policy serves as the Department's chief policy officer, and 
is responsible for the coordination and development of 
departmental policy and legislative initiatives; international 
standards development and harmonization; aviation and other 
transportation-related trade negotiations; the performance of 
policy and economic analysis; and the execution of the 
Essential Air Service program.
    Office of Small and Disadvantaged Business Utilization.--
The Office of Small and Disadvantaged Business Utilization is 
responsible for promoting small and disadvantaged business 
participation in the Department's procurement and grants 
programs.
    Office of the Chief Information Officer.--The Office of the 
Chief Information Officer serves as the principal advisor to 
the Secretary on information resources and information systems 
management.
    Office of the Assistant Secretary for Governmental 
Affairs.--The Office of the Assistant Secretary for 
Governmental Affairs is responsible for coordinating all 
Congressional, intergovernmental, and consumer activities of 
the Department.
    In addition, the bill continues a provision (Sec. 185) that 
requires the Department to notify the Committees on 
Appropriations no fewer than three business days before any 
discretionary grant award, letter of intent, loan, loan 
guarantee, line of credit commitment or full funding grant 
agreement is announced by the Department or its modal 
administrations from: (1) the Federal Highway Administration; 
(2) the airport improvement program of the Federal Aviation 
Administration; (3) the Federal Railroad Administration; (4) 
any program of the Federal Transit Administration other than 
the formula grants; (5) the Maritime Administration; and (6) 
any grant funded with the National Infrastructure Investments 
account. Such notification shall include the date on which the 
official announcement of the grant is to be made and no such 
announcement shall involve funds that are not available for 
obligation.
    Office of the General Counsel.--The Office of the General 
Counsel provides legal services to the Office of the Secretary 
and coordinates and reviews the legal work of the chief 
counsels' offices of the operating administrations.
    Office of the Assistant Secretary for Budget and 
Programs.--The Assistant Secretary for Budget and Programs is 
responsible for developing, reviewing, and presenting budget 
resource requirements for the Department to the Secretary, 
Congress, and the Office of Management and Budget.
    Office of the Assistant Secretary for Administration.--The 
Office of the Assistant Secretary for Administration serves as 
the principal advisor to the Secretary on department-wide 
administrative matters and the responsibilities include 
leadership in acquisition reform and human capital.
    Office of Public Affairs.--The Office of Public Affairs is 
responsible for the Department's press releases, articles, 
briefing materials, publications, and audio-visual materials.
    Office of Intelligence, Security, and Emergency Response.--
The Office of Intelligence, Security, and Emergency Response is 
responsible for intelligence, security policy, preparedness, 
training and exercises, national security, and operations.
    Congressional budget justifications.--The Department is 
directed to include in the budget justification funding levels 
for the prior year, current year, and budget year for all 
programs, activities, initiatives, and program elements. Each 
budget submitted by the Department must also include a detailed 
justification for the incremental funding increases and 
additional FTEs being requested above the enacted level, by 
program, activity, or program element.
    OST must include a discussion in its justification of 
changes from the current year to the request, plus a crosswalk 
of all accounts, existing and proposed, from one year to the 
next. To ensure that each adjustment is identified, the 
Committee directs OST in future congressional justifications to 
include detailed information in tabular format, which 
identifies specific changes in funding from the current year to 
the budget year for each office, including each office within 
OST, and every mode and office within the Department.
    Operating plan.--The Committee directs the Department to 
submit an operating plan for fiscal year 2015 signed by the 
Secretary for review by the Committees on Appropriations within 
60 days of the bill's enactment. The operating plan should 
include funding levels for the various offices, programs, and 
initiatives detailed down to the object class or program 
element covered in the budget justification and supporting 
documents, documents referenced in the House and Senate 
reports, and the statement of the managers (i.e. not simply the 
activities called out in bill language). Should the Department 
create, alter, discontinue, or otherwise change any program as 
described in the Department's budget justification, those 
changes must be a part of the Department's operating plan.
    Finally, the Department shall submit with the operating 
plan a summary of the DOT reporting requirements contained in 
the Act, the House and Senate reports, and the statement of the 
managers. The Committee requests a number of reports to gather 
information and conduct oversight. The summary should include 
Inspector General and Government Accountability Office reports 
as well.
    General provisions.--The Committee continues to direct DOT 
to justify each general provision proposed either in its 
relevant modal congressional justification or in the OST 
congressional justification. If the budget proposes to drop or 
delete a general provision, the Department is directed to 
explain the change as well.
    Bill language.--The bill continues language that permits up 
to $2,500,000 of fees to be credited to the Office of the 
Secretary for salaries and expenses.

                        RESEARCH AND TECHNOLOGY




Appropriation, fiscal year 2014.......................       $14,765,000
Budget request, fiscal year 2015......................        14,625,000
Recommended in the bill...............................        12,625,000
Bill compared with:
    Appropriation, fiscal year 2014...................        -2,140,000
    Budget request, fiscal year 2015..................        -2,000,000


    The Office of the Assistant Secretary or Research and 
Technology coordinates, facilitates, and reviews the 
Department's research and development programs and activities; 
coordinating and developing positioning, navigation and timing 
(PNT) technology; maintaining PNT policy, coordination and 
spectrum management; managing the Nationwide Differential 
Global Positioning System; and overseeing and providing 
direction to the Bureau of Transportation Statistics, the 
Intelligent Transportation Systems Joint Program Office, the 
University Transportation Centers program, the Volpe National 
Transportation Systems Center and the Transportation Safety 
Institute.

                        COMMITTEE RECOMMENDATION

    The Committee recommendation provides $12,625,000 for 
research and technology activities, $2,000,000 below the budget 
request and $2,140,000 below fiscal year 2014. The 
recommendation does not include new bill language providing the 
Office of Research and Technology with the authority to receive 
funding from modal administrations to support Global 
Positioning System activities as requested in the budget 
proposal. The budget documents did not include a sufficient 
justification for the new authority.

                   NATIONAL INFRASTRUCTURE INVESTMENT




Appropriation, fiscal year 2014.......................      $600,000,000
Budget request, fiscal year 2015......................     1,250,000,000
Recommended in the bill...............................       100,000,000
Bill compared with:
    Appropriation, fiscal year 2014...................      -500,000,000
    Budget request, fiscal year 2015..................    -1,150,000,000


    The National Infrastructure Investment program was created 
in the American Recovery and Reinvestment Act (ARRA) to provide 
grants to state and local governments to improve the Nation's 
transportation infrastructure. The infrastructure investment 
program awards funds on a competitive basis to grantees 
selected because of the significant impact they will have on 
the Nation, a metropolitan area, or region.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $100,000,000 for National 
Infrastructure Investment grants, $500,000,000 below the 2014 
level and $1,150,000,000 below the request. Funds are 
discretionary from the General Fund of the Treasury and 
available until September 30, 2017.
    The Committee provides funds specifically for highway and 
bridge projects, freight rail projects and port infrastructure 
investments--the most critical areas to preserving, expanding, 
and improving our Nation's transportation infrastructure. The 
bill retains language directing an equitable distribution of 
funds and stipulates that not less than 20 percent of the funds 
shall be for projects in rural areas. Further, not more than 20 
percent of the funds may be awarded to projects in a single 
state. Up to 10 percent of the funds may be used for the 
subsidy and administrative costs of projects eligible for 
Transportation Infrastructure Finance and Innovation Act 
assistance. Bill language is included to limit grants to a 
minimum of $2,000,000 and a maximum of $15,000,000 in urban 
areas, and a minimum of $1,000,000 in rural areas. The Federal 
share for projects funded under this header is limited to 50 
percent of the project cost in urban areas, and 80 percent in 
rural areas. The Secretary is directed to give priority to 
projects that require a Federal contribution to complete 
overall financing. All projects must comply with subchapter IV 
of chapter 31 of title 40, United States Code.

                      FINANCIAL MANAGEMENT CAPITAL




Appropriation, fiscal year 2014.......................        $7,000,000
Budget request, fiscal year 2015......................         5,000,000
Recommended in the bill...............................         5,000,000
Bill compared with:
    Appropriation, fiscal year 2014...................        -2,000,000
    Budget request, fiscal year 2015..................             - - -


    The Financial Management Capital program continues funding 
for a multi-year project to upgrade DOT's financial systems and 
processes. The project will implement Treasury Department and 
Office of Management and Budget requirements. Deployment of the 
new system is anticipated in 2015.

                        COMMITTEE RECOMMENDATION

    The Committee recommends the budget request of $5,000,000, 
a reduction of $2,000,000 from the prior year for the financial 
management capital program.

                       CYBER SECURITY INITIATIVE




Appropriation, fiscal year 2014.......................        $4,455,000
Budget request, fiscal year 2015......................         5,000,000
Recommended in the bill...............................         5,000,000
Bill compared with:
    Appropriation, fiscal year 2014...................          +545,000
    Budget request, fiscal year 2015..................             - - -


    The Cyber Security Initiative is a new effort to close 
performance gaps in the Department's cybersecurity. The 
initiative includes support for essential program enhancements, 
infrastructure improvements and contractual resources to 
enhance the security of the Department's computer network and 
reduce the risk of security breaches.

                        COMMITTEE RECOMMENDATION

    The Committee recommendation includes the budget request of 
$5,000,000 to support the Secretary's cyber security 
initiative, which is $545,000 above the fiscal year 2014 
enacted level.

                         OFFICE OF CIVIL RIGHTS




Appropriation, fiscal year 2014.......................        $9,551,000
Budget request, fiscal year 2015......................         9,600,000
Recommended in the bill...............................         9,600,000
Bill compared with:
    Appropriation, fiscal year 2014...................           +49,000
    Budget request, fiscal year 2015..................             - - -


    The Office of Civil Rights is responsible for advising the 
Secretary on civil rights and equal opportunity issues, and 
ensuring the full implementation of the civil rights laws and 
departmental civil rights policies in all official actions and 
programs. This office is responsible for enforcing laws and 
regulations that prohibit discrimination in federally operated 
and federally assisted transportation programs and enabling 
access to transportation providers. The Office of Civil Rights 
also handles all civil rights cases affecting Department of 
Transportation employees.

                        COMMITTEE RECOMMENDATION

    The Committee recommends the budget request of $9,600,000 
for the Office of Civil Rights, an increase of $49,000 over the 
prior year.

           TRANSPORTATION PLANNING, RESEARCH, AND DEVELOPMENT




Appropriation, fiscal year 2014.......................        $7,000,000
Budget request, fiscal year 2015......................         8,000,000
Recommended in the bill...............................         6,000,000
Bill compared with:
    Appropriation, fiscal year 2014...................        -1,000,000
    Budget request, fiscal year 2015..................        -2,000,000


    This appropriation finances research activities and studies 
related to the planning, analysis, and information development 
used in the formulation of national transportation policies and 
plans. It also finances the staff necessary to conduct these 
efforts. The overall program is carried out primarily through 
contracts with other federal agencies, educational 
institutions, nonprofit research organizations, and private 
firms.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $6,000,000 for 
transportation planning, research, and development, which is 
$1,000,000 below the fiscal year 2014 enacted level and 
$2,000,000 below the level proposed in the fiscal year 2015 
budget.

                          WORKING CAPITAL FUND




Appropriation, fiscal year 2014.......................      $178,000,000
Budget request, fiscal year 2015......................             - - -
Recommended in the bill...............................       181,000,000
Bill compared with:
    Appropriation, fiscal year 2014...................        +3,000,000
    Budget request, fiscal year 2015..................      +181,000,000


    The working capital fund was created to provide common 
administrative services to the operating administrations and 
outside entities that contract for the fund's services. The 
working capital fund operates on a fee-for-service basis and 
receives no direct appropriations; it is fully self-sustaining 
and must achieve full cost recovery.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a limitation of $181,000,000 on 
the Working Capital Fund (WCF), a $3,000,000 increase over 
2014. The Administration did not propose a WCF legislative 
limitation, however, if all of the WCF expenditures proposed in 
the budget are added up, WCF costs are anticipated to increase 
$9,000,000 over fiscal year 2014. The Committee continues to 
stipulate that the limitation is only for services provided to 
the Department of Transportation, not other entities. Further, 
the Committee directs that, as much as possible, services shall 
be provided on a competitive basis.
    The Committee continues the direction to update the WCF 
``transparency paper'' in the fiscal year 2016 budget 
justification. The Committee directs the Department to include 
in the budget justification an additional table detailing how 
much each mode is proposed to use through the WCF.

               MINORITY BUSINESS RESOURCE CENTER PROGRAM

------------------------------------------------------------------------
                                                          Limitation on
                                         Appropriation      guaranteed
                                                              loans
------------------------------------------------------------------------
Appropriation, fiscal year 2014.......         $925,000    ($18,367,000)
Budget request, fiscal year 2015......        1,013,000     (18,367,000)
Recommended in the bill...............        1,013,000     (18,367,000)
Bill compared with:
    Appropriation, fiscal year 2014...           88,000            - - -
    Budget request, fiscal year 2015..            - - -            - - -
------------------------------------------------------------------------

    Through the Short Term Lending Program, the minority 
business resource center assists disadvantaged, minority, and 
women-owned businesses with obtaining short-term working 
capital for DOT and DOT-funded transportation-related 
contracts. The program enables qualified businesses to obtain 
loans at two percentage points above the prime interest rate 
with DOT guaranteeing up to 75 percent of the loan.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a total of $1,013,000 for the 
resource center, the same as the budget request and $88,000 
more than the 2014 amounts. Of the funds provided, $417,000 is 
to cover the subsidy costs of guaranteed loans and $596,000 is 
for administrative expenses to carry out the guaranteed loan 
program. The Committee recommends a limitation on guaranteed 
loans of $18,367,000, the same as the budget request and the 
limitation in fiscal year 2014.

                       MINORITY BUSINESS OUTREACH




Appropriation, fiscal year 2014.......................        $3,088,000
Budget request, fiscal year 2015......................         3,099,000
Recommended in the bill...............................         3,099,000
Bill compared with:
    Appropriation, fiscal year 2014...................           +11,000
    Budget request, fiscal year 2015..................             - - -


    The minority business outreach program provides contractual 
support to small and disadvantaged businesses by providing 
information dissemination and technical and financial 
assistance to empower those businesses to compete for 
contracting opportunities with DOT and DOT-funded contracts or 
grants for transportation-related projects.

                        COMMITTEE RECOMMENDATION

    The Committee recommends the budget request of $3,099,000 
for the minority business outreach program, which is $11,000 
more than the 2014 level.

                        PAYMENTS TO AIR CARRIERS

                    (AIRPORT AND AIRWAY TRUST FUND)




Appropriation, fiscal year 2014.......................      $149,000,000
Budget request, fiscal year 2015......................       155,000,000
Recommended in the bill...............................       149,000,000
Bill compared with:
    Appropriation, fiscal year 2014...................             - - -
    Budget request, fiscal year 2015..................        -6,000,000


    The Essential Air Service program (EAS) was created by the 
Airline Deregulation Act of 1978 as a ten-year measure to 
continue air service to communities that had received air 
service prior to deregulation. The program currently provides 
subsidies to air carriers serving small communities that meet 
certain criteria.
    The Federal Aviation Administration Reauthorization Act of 
1996 authorized the collection of ``overflight fees''. 
Overflight fees are a type of user fee collected by the Federal 
Aviation Administration (FAA) from aircraft that neither take 
off from, nor land in, the United States. The FAA Modernization 
and Reform Act of 2012 increased the authorized level of 
overflight fee collection, and increased the amount that the 
Department can apply to the EAS program. The budget request 
estimates that fee will provide $100,000,000 for the EAS 
program in fiscal year 2015.

                        COMMITTEE RECOMMENDATION

    For fiscal year 2015, the Committee includes $149,000,000 
in discretionary funding for the EAS program, which is equal to 
the fiscal year 2014 enacted level and $6,000,000 below the 
budget request.
    The following table shows the discretionary, mandatory, and 
total program levels for the EAS program:

----------------------------------------------------------------------------------------------------------------
                                                                   Appropriation     Mandatory     Total Program
----------------------------------------------------------------------------------------------------------------
FY 2014 Appropriation...........................................    $149,000,000    $100,000,000    $249,000,000
FY 2015 Request.................................................     155,000,000     100,000,000     255,000,000
Committee Recommendation........................................     149,000,000     100,000,000     249,000,000
----------------------------------------------------------------------------------------------------------------

    The Committee directs the Department to utilize all the 
overflight fees collected for this program to alleviate the 
discretionary funding requirement for the program.
    The Committee includes bill language which prohibits a new 
contract with a community located less than 40 miles from a 
small hub airport before the community has negotiated a cost-
share.
    The Committee also includes bill language which prohibits 
funds for communities with a per passenger subsidy which 
exceeds $500 per passenger, unless the community negotiates a 
cost share.

  ADMINISTRATIVE PROVISIONS--OFFICE OF THE SECRETARY OF TRANSPORTATION

    Section 101. The Committee continues the provision 
prohibiting the Office of the Secretary of Transportation from 
approving assessments or reimbursable agreements pertaining to 
funds appropriated to the operating administrations in this 
Act, unless such assessments or agreements have completed the 
normal reprogramming process for Congressional notification.
    Section 102. The Committee continues the provision allowing 
the Secretary or his designee to work with States and State 
legislators to consider proposals related to the reduction of 
motorcycle fatalities.
    Section 103. The Committee continues the provision allowing 
the Department to use the Working Capital Fund to provide 
transit benefits to Federal employees.
    Section 104. The Committee continues the provision 
regarding administrative requirements of DOT's Credit Council.

                    Federal Aviation Administration

    The Federal Aviation Administration (FAA) is responsible 
for the safety and development of civil aviation and for the 
evolution of a national system of airports. The Federal 
Government's regulatory role in civil aviation began with the 
creation of an Aeronautics Branch within the Department of 
Commerce pursuant to the Air Commerce Act of 1926. This Act 
instructed the Secretary of Commerce to foster air commerce; 
designate and establish airways; establish, operate, and 
maintain aids to navigation; arrange for research and 
development to improve such aids; issue airworthiness 
certificates for aircraft and major aircraft components; and 
investigate civil aviation accidents. In the Civil Aeronautics 
Act of 1938, these activities were subsumed into a new, 
independent agency named the Civil Aeronautics Authority.
    After further administrative reorganizations, Congress 
streamlined regulatory oversight in 1957 with the creation of 
two separate agencies, the Federal Aviation Agency and the 
Civil Aeronautics Board. When the Department of Transportation 
began its operations on April 1, 1967, the Federal Aviation 
Agency was renamed the Federal Aviation Administration (FAA) 
and became one of several modal administrations within the 
department. The Civil Aeronautics Board was later phased out 
with enactment of the Airline Deregulation Act of 1978, and 
ceased to exist at the end of 1984. FAA's mission expanded in 
1995 with the transfer of the Office of Commercial Space 
Transportation from the Office of the Secretary and contracted 
in December 2001 with the transfer of civil aviation security 
activities to the new Transportation Security Administration.
    The FAA Modernization and Reform Act of 2012 authorized FAA 
programs through 2015 with several new mandates to improve the 
National Airspace System (NAS), including provisions regarding 
the NextGen program for Air Traffic Control and provisions 
regarding the use of Unmanned Aerial Systems (UAS) in civilian 
airspace.

                               OPERATIONS

                    (AIRPORT AND AIRWAY TRUST FUND)




Appropriation, fiscal year 2014.......................    $9,651,422,000
Budget request, fiscal year 2015......................     9,750,000,000
Recommended in the bill...............................     9,750,000,000
Bill compared with:
    Appropriation, fiscal year 2014...................       +98,578,000
    Budget request, fiscal year 2015..................             - - -


    This appropriation provides funds for the operation, 
maintenance, communications, and logistical support of the air 
traffic control and air navigation systems. It also covers 
administrative and managerial costs for the FAA's regulatory, 
international, medical, engineering and development programs as 
well as policy oversight and overall management functions.
    The operations appropriation includes the following major 
activities: (1) operation on a 24-hour daily basis of a 
national air traffic system; (2) establishment and maintenance 
of a national system of aids to navigation; (3) establishment 
and surveillance of civil air regulations to ensure safety in 
aviation; (4) development of standards, rules and regulations 
governing the physical fitness of airmen as well as the 
administration of an aviation medical research program; (5) 
administration of the acquisition, and research and development 
programs; (6) headquarters, administration and other staff 
offices; and (7) development, printing, and distribution of 
aeronautical charts used by the flying public.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $9,750,000,000 for FAA operations, 
which is $98,578,000 above the fiscal year 2014 enacted level 
and the same as the budget request.
    The following table shows a comparison of the fiscal year 
2014 enacted level, the budget request, and the Committee 
recommendation by budget activity:

----------------------------------------------------------------------------------------------------------------
                                                                                                   Committee
                                                          FY 2014 enacted    FY 2015 request     recommendation
----------------------------------------------------------------------------------------------------------------
Air Traffic Organization...............................     $7,311,790,000     $7,396,654,000     $7,396,654,000
Aviation Safety........................................      1,204,777,000      1,215,458,000      1,218,458,000
Commercial Space Transportation........................         16,011,000         16,605,000         16,000,000
Finance and Management.................................        762,462,000        765,047,000        762,652,000
NextGen and Operations Planning........................         59,782,000         60,089,000         60,089,000
Staff Offices..........................................        296,600,000        296,147,000        296,147,000
                                                        --------------------------------------------------------
    Total..............................................      9,651,422,000      9,750,000,000      9,750,000,000
----------------------------------------------------------------------------------------------------------------

    Justification of general provisions.--The Committee 
continues its direction to provide a justification for each 
general provision proposed in the FAA budget and therefore 
expects the fiscal year 2016 budget to include adequate 
information on each proposed general provision.

                     TRUST FUND SHARE OF FAA BUDGET

    The bill derives $8,595,000,000 of the total operations 
appropriation from the Airport and Airway Trust Fund. The 
balance of the appropriation, $1,155,000,000, will be drawn 
from the General Fund of the Treasury.

                        AIR TRAFFIC ORGANIZATION

    The bill provides $7,396,654,000 for the air traffic 
organization, which is $84,864,000 above the 2014 enacted level 
and the same as the budget request.
    Air traffic controller staffing.--The Federal Aviation 
Administration is planning to hire more than 1,700 new 
controllers in fiscal year 2015 to offset controller attrition 
and future retirements. This level of hiring is greater than 
any year since fiscal year 2009. The Committee has provided the 
full budget request for the Air Traffic Organization to support 
the hiring and training of these new controllers.The FAA 
received an overwhelming response to its most recent job announcement 
for new controllers. However, the Committee is concerned that the 
initial screening of those applications yielded a much smaller pool of 
candidates than is normally expected. The Committee understands FAA 
intends to solicit additional applications before the end of fiscal 
year 2014 if the agency determines it will not meet its stated hiring 
goals. The Committee directs the FAA to provide an update on its fiscal 
year 2014 controller hiring progress to the House and Senate Committees 
on Appropriations by November 5, 2014. This update should include 
hiring totals, academy completion totals, and an analysis of hiring and 
screening procedures.
    Last year, the Office of Inspector General (OIG) reported 
that the FAA has not been able to achieve many of its training 
goals under the current Air Traffic Control Optimum Training 
Solution (ATCOTS) Program, its contract for controller 
training. Specifically, the FAA has not met its goals to reduce 
controller training times, and the program has not been able to 
produce needed training innovations. The Committee directs the 
FAA to provide a training plan by March 31, 2015 for meeting 
its hiring goals in fiscal year 2015 hires and, where 
appropriate, adjusting the ATCOTS contract to reduce training 
times and control costs.
    In 2010, the OIG reviewed FAA's process for screening and 
assigning new controllers and found that it did not 
sufficiently evaluate the candidates' aptitudes before placing 
them at air traffic control facilities. The Committee directs 
that the OIG conduct a follow-up review of its 2010 study of 
screening, placing, and training newly hired air traffic 
controllers.
    Contract tower program.--The Committee recommendation 
includes $140,000,000 for the contract tower program, including 
$9,500,000 to continue the contract tower cost-sharing program. 
The Committee continues to support the program as a safe, cost-
efficient mechanism for providing air traffic services to 
pilots and local communities.

                            AVIATION SAFETY

    The Committee provides $1,218,458,000 for aviation safety, 
which is $13,681,000 above the fiscal year 2014 enacted level 
and $3,000,000 above the budget request.
    The Committee continues its direction requiring the 
Secretary to provide annual reports regarding the use of the 
funds provided, including, but not limited to, the total full-
time equivalent staff years in the offices of aircraft 
certification and flight standards, total employees, vacancies, 
and positions under active recruitment.
    Inspector staffing.--The FAA has committed to developing 
and implementing a new approach to safety that prioritizes 
oversight based on risk, and seeking to identify emerging 
trends and hazards before they result in accidents. The 
Committee believes this is an important effort to improve on 
the Nation's aviation safety record. However, the Committee is 
concerned that the FAA does not have reliable information on 
how many inspectors it needs or where they are needed most. A 
June 2013 report by the OIG found that although the FAA 
introduced a new staffing model in 2009, the Agency has not 
relied on the model's results to drive budget requests, in part 
because the model's data are incomplete, inaccurate, and 
outdated. The Committee understands that in response to the 
OIG's concerns, the Agency obtained another independent review 
in September 2013, which confirmed once again that the model 
was not yet reliable. The Committee directs the FAA to provide 
a plan by July 1, 2015 with milestones for correcting problems 
with the model and a timeframe for when a reliable model will 
be in place.
    Air operator certification.--The Committee is concerned 
that delays in FAA certification of air operators can hinder 
the competitiveness of the U.S. aviation industry. Each year, 
hundreds of commercial air carriers, aircraft repair stations, 
pilot schools, and other entities apply to the FAA for 
certificates authorizing them to operate in the National 
Airspace System (NAS). Lengthy delays in certification 
approvals present real barriers to companies seeking to operate 
in the National Airspace System, limiting the economic growth 
of the aviation industry. As of October 2013, there were more 
than 1,000 entities awaiting certification across the United 
States, with 138 applicants delayed for more than 3 years.
    FAA Modernization and Reform Act section 312.--The 
Committee remains interested in the FAA's progress on section 
312 of the FAA Modernization and Reform Act of 2012, which 
requires the FAA to identify ways to make its certification 
processes more efficient and its rulings more consistent among 
field offices. The Committee expects FAA to focus on areas that 
contribute to the greatest improvement in aviation safety while 
advancing new and emerging technologies and products into the 
marketplace in a timely manner. To determine its progress in 
implementing this provision, the Committee directs FAA to 
submit to the House and Senate Committees on Appropriations a 
report on the FAA's actions to meet its section 312 
implementation plan no later than April 1, 2015. The report 
should include: (1) measures the FAA is taking to implement 
section 312 and the extent to which they reflect progress in 
relying more fully on delegated authorities and developing a 
systems safety approach; (2) how the FAA will use data to 
improve the delegation process; and (3) the extent to which FAA 
plans to modify personnel expectations and training course 
content to communicate changes to the field.
    Aircraft certification workforce staffing.--The continued 
development and training of the inspector, engineer, and 
specialist workforce is key to certification streamlining and 
the full use of delegated authority. The Committee directs the 
FAA to include in its annual Workforce Staffing Report a 
section devoted to the actions undertaken and planned by the 
FAA to further enhance aircraft certification workforce skills 
and training. This section of the Workforce Staffing Report 
should include a program and funding summary indicating the 
resources needed, by fiscal year, to fully implement an 
enhanced aircraft certification workforce and training program.
    International coordination on FAA certification 
activities.--The Committee expects the FAA to use such funds as 
may be necessary to coordinate with and educate other 
international aviation authorities about the FAA's 
certification process. This effort is consistent with the FAA's 
strategic plan and is critical to streamline and enhance the 
validation and acceptance of the FAA certifications globally.
    Small Airplane Revitalization Act.--Funding should be 
utilized, as requested by the FAA, to support regulatory action 
consistent with the Small Airplane Revitalization Act (P.L. 
113-53).
    Unmanned aircraft systems (UAS).--The FAA Modernization and 
Reform Act of 2012 directed the FAA to integrate UAS into the 
National Airspace System by 2015. However, it is uncertain when 
the FAA can integrate UAS into the Nation's airspace and what 
will be required to achieve the goal. The lack of an overall 
framework for the new systems may be inhibiting progress on UAS 
integration. The Committee is concerned that the FAA may not be 
well positioned to manage effectively the introduction of UAS 
in the United States, particularly in light of a recent ruling 
by a National Transportation Safety Board (NTSB) administrative 
judge regarding the use of a small UAS for commercial purposes. 
Given these challenges, the Committee has provided an 
additional $3,000,000 in the Aviation Safety Activity to 
expedite the integration of UAS into commercial airspace.
    UAS budgeting.--The Committee understands that UAS have 
very different operating characteristics, communications and 
flight planning system requirements than traditional air 
traffic operations. However, the resource requirements for 
integrating UAS into airspace and the corresponding impacts on 
the FAA's capital and operating budgets remains unclear. The 
Committee directs the FAA to develop an integrated budget for 
UAS in the fiscal year 2016 budget request that clearly 
identifies research and development needs and the requirements 
for air traffic control systems and operations.
    Global tracking of airline flights.--In the aftermath of 
the disappearance of Malaysian Airlines Flight MH 370, the 
International Civil Aviation Organization (ICAO) announced its 
intention to convene a special meeting on May 12-13, 2014 of 
state and industry representatives on the global tracking of 
airline flights. The Committee supports this effort and expects 
FAA to work collaboratively with its ICAO partners to identify 
and implement international standards that will help avoid the 
circumstances that have surrounded the disappearance of MH 370. 
In this regard, the Committee understands that ICAO recently 
established new guidance on underwater locator beacons which 
will become effective in 2018. In addition, ICAO's flight 
recorder panel intends to review additional means for 
expediting the location of accident sites, including the use of 
deployable flight data recorders and the triggered transmission 
of flight data. This report follows a Transportation Security 
Administration (TSA) study that concluded that additional 
technology solutions in the recovery of flight data are both 
viable and preferred. The Committee underscores the importance 
of identifying universally adopted measures that will provide 
improved tracking of flights. The Committee directs FAA to 
provide an update to the House and Senate Committees on 
Appropriations on the agency's efforts to support ICAO's work 
in this area, including ICAO's evaluation of the costs and 
benefits of installing automatic deployable flight data 
recorders and other relevant technologies under consideration.
    One engine inoperative policy.--On April 28, 2014, the FAA 
published a notice of proposed policy regarding the impact of 
one engine inoperative procedures in obstruction evaluation 
aeronautical studies. The Committee directs FAA to carefully 
consider all comments that are submitted on this proposed 
policy and to work with relevant stakeholders to preserve 
safety and efficiency while balancing the important needs of 
communities, airports and airport users. The Committee urges 
FAA to consider whether a cost benefit analysis should be 
required in the final policy on obstruction evaluation 
aeronautical studies.

                    COMMERCIAL SPACE TRANSPORTATION

    The Committee recommends $16,000,000 for the Office of 
Commercial Space Transportation, which is $11,000 below the 
fiscal year 2014 enacted level and $605,000 below the budget 
request.
    The Committee recognizes the importance of commercial space 
transportation to the Nation and is committed to fostering a 
viable, healthy, and competitive industry. U.S. commercial 
space activity has increased and operations have become more 
complex presenting vexing challenges for the FAA. When the 
Commercial Space Launch Amendments Act of 2004 was enacted, 
only certain types of vehicles were available for private 
sector use primarily to lift satellites and other types of 
cargo into space. The use of reusable launch vehicles--vehicles 
designed to return to Earth from space--was in its infancy. 
This includes suborbital reusable vehicles (SRV) capable of 
carrying people and cargo. Since then, SRVs that carry cargo 
are now operational and those capable of carrying humans are 
planned for operations in the next few years. In fiscal year 
2013, the FAA reported that launches licensed and permitted by 
the Agency grew six-fold, and FAA expects demand will continue 
to rise.Given the challenges of emerging space transportation 
activities, the Committee directs the FAA to focus its 
commercial space activities on operational requirements and to 
meet the modest funding reduction in this account through 
savings from non-safety related activities.
    The Committee supports utilizing heavy-lift launch 
capability, including the Space Launch System, to execute 
commercial missions to low earth orbit and beyond low earth 
orbit destinations. Therefore, the FAA Office of Commercial 
Space Transportation is urged to leverage its existing launch 
licensing authority to encourage private sector investment in 
systems by ensuring that commercial activities can be conducted 
on a non-interference basis.

                         FINANCE AND MANAGEMENT

    The Committee recommends $762,652,000 for finance and 
management activities, which is $190,000 above the fiscal year 
2014 enacted level and $2,395,000 below the budget request.
    FAA Telecommunications Infrastructure (FTI).--The FAA 
Telecommunications Infrastructure (FTI) is the 
telecommunications network that provides voice, data, and video 
communication for national airspace (NAS) operations and 
mission support functions. The executive branch has issued an 
order allowing commercial telecommunication carriers to conduct 
trials to transition air traffic control voice communication 
services from circuit switched voice services to internet 
protocol (IP) transition trials, while ensuring that NAS 
operations are not disrupted. The Committee commends the FAA 
for its efforts to complete an investment analysis of a 
transition to IP services, and directs the FAA to report to the 
committee on the status of this investment analysis no later 
than March 31, 2015.
    Workforce diversity report.--The Committee directs FAA to 
continue to provide workforce diversity reports to the House 
and Senate Committees on Appropriations as required in previous 
committee reports. The Committee understands that FAA has 
implemented a new process for hiring additional controllers and 
is interested in whether this new process yields a more diverse 
workforce that is well-equipped to succeed as an air traffic 
controller.

                    NEXTGEN AND OPERATIONS PLANNING

    The Committee recommends $60,089,000 for NextGen and 
Operations Planning, which is $307,000 above the fiscal year 
2014 enacted level and the same as the budget request.

                             BILL LANGUAGE

    Second Career Training Program.--The bill retains language 
prohibiting the use of funds for the second career training 
program. This prohibition has been in annual appropriations 
Acts for many years and is included in the President's budget 
request.
    Aviation user fees.--The bill includes a limitation carried 
for several years prohibiting funds from being used to finalize 
or implement any new unauthorized user fees.
    Aeronautical charting and cartography.--The bill maintains 
the provision prohibiting funds in this Act from being used to 
conduct aeronautical charting and cartography (AC&C) activities 
through the working capital fund (WCF).
    Credits.--This bill includes language allowing funds 
received from specified public, private, and foreign sources 
for expenses incurred to be credited to the appropriation.

                        FACILITIES AND EQUIPMENT

                    (AIRPORT AND AIRWAY TRUST FUND)




Appropriation, fiscal year 2014.......................    $2,600,000,000
Budget request, fiscal year 2015......................     2,603,700,000
Recommended in the bill...............................     2,600,000,000
Bill compared with:
    Appropriation, fiscal year 2014...................             - - -
    Budget request, fiscal year 2015..................        -3,700,000


    The Facilities and Equipment (F&E) account is the principal 
means for modernizing and improving air traffic control and 
airway facilities. The appropriation also finances major 
capital investments required by other agency programs, 
experimental research and development facilities, and other 
improvements to enhance the safety and capacity of the airspace 
system.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of 
$2,600,000,000, for the FAA's facilities and equipment program, 
the same as the level provided in fiscal year 2014 and a 
decrease of $3,700,000 below the budget request. The bill 
provides that, of the total amount recommended, $2,137,000,000 
is available for obligation until September 30, 2017 and 
$463,000,000 (the amount for personnel and related expenses) is 
available until September 30, 2015. These obligation 
availabilities are consistent with past appropriations Acts.
    The following table provides funding levels for facilities 
and equipment activities and budget line items.

------------------------------------------------------------------------
                                         FY 2015 Budget   FY 2015  House
                Program                     Request            Bill
------------------------------------------------------------------------
Activity 1--Engineering, Development,
 Test and Evaluation
    Advanced Technology Development         $29,900,000      $29,900,000
     and Prototyping..................
    NAS Improvement of System Support         1,000,000        1,000,000
     Laboratory.......................
    William J. Hughes Technical Center       12,049,000       12,049,000
     Facilities.......................
    William J. Hughes Technical Center       12,200,000       12,200,000
     Infrastructure Sustainment.......
    Separation Management Portfolio...       13,000,000       13,000,000
    Improved Surface/TFDM Portfolio...       38,808,000       38,808,000
    On Demand NAS Portfolio...........        6,000,000        6,000,000
    Environment Portfolio.............        2,500,000        2,500,000
    Improved Multiple Runway                  3,500,000        5,500,000
     Operations Portfolio.............
    NAS Infrastructure Portfolio......       13,480,000       14,480,000
    NextGen Support Portfolio.........       13,000,000       13,000,000
    Performance Based Navigation &           25,500,000       27,500,000
     Metroplex Portfolio..............
        Total Activity 1..............      170,937,000      172,937,000
Activity 2--Air Traffic Control
 Facilities and Equipment
a. En Route Programs
    En Route Automation Modernization        10,500,000       10,500,000
     (ERAM)...........................
    En Route Automation Modernization        45,200,000       45,200,000
     (ERAM)--System Enhancements and
     Tech Refresh.....................
    En Route Communications Gateway           6,600,000        6,600,000
     (ECG)............................
    Next Generation Weather Radar             7,100,000        7,100,000
     (NEXRAD)--Provide................
    ARTCC Building Improvements/Plant        63,700,000       63,700,000
     Improvements.....................
    Air Traffic Management (ATM)......        5,729,000        5,729,000
    Air/Ground Communications                 3,900,000        3,900,000
     Infrastructure...................
    Air Traffic Control En Route Radar        5,100,000        5,100,000
     Facilities Improvements..........
    Voice Switching and Control System       13,800,000       13,800,000
     (VSCS)...........................
    Oceanic Automation System.........        3,508,000        3,508,000
    Next Generation Very High                40,000,000       40,000,000
     Frequency Air/Ground Comm
     (NEXCOM).........................
    System-Wide Information Management       60,261,000       60,261,000
    ADS-B NAS Wide Implementation.....      247,200,000      252,200,000
    Windshear Detection Service.......        4,300,000        4,300,000
    Collaborative Air Traffic                13,491,000       13,491,000
     Management Technologies WP2 & WP3
    Time Based Flow Management               21,000,000       21,000,000
     Portfolio........................
    NextGen Weather Processors........       23,320,000       23,320,000
    Airborne Collision Avoidance             12,000,000       12,000,000
     System X (ACASX).................
    Data Communications in Support of       147,340,000      150,340,000
     NG Air Transportation System.....
        Subtotal En Route Programs....      734,049,000      742,049,000
b. Terminal Programs
    Airport Surface Detection                 5,436,000        5,436,000
     Equipment--Model X (ASDE-X)......
    Terminal Doppler Weather Radar            1,900,000        1,900,000
     (TDWR)--Provide..................
    Standard Terminal Automation             50,700,000       50,700,000
     Replacement System (STARS) (TAMR
     Phase 1).........................
    Terminal Automation Modernization/      136,150,000      156,150,000
     Replacement Program (TAMR Phase
     3)...............................
    Terminal Automation Program.......        1,600,000        1,600,000
    Terminal Air Traffic Control             29,800,000       29,800,000
     Facilities--Replace..............
    ATCT/Terminal Radar Approach             45,040,000       45,040,000
     Control (TRACON) Facilities--
     Improve..........................
    Terminal Voice Switch Replacement         2,000,000        2,000,000
     (TVSR)...........................
    NAS Facilities OSHA and                  43,501,000       43,501,000
     Environmental Standards
     Compliance.......................
    Airport Surveillance Radar (ASR-9)       13,600,000       13,600,000
    Terminal Digital Radar (ASR-11)          21,100,000       21,100,000
     Technology Refresh and Mobile
     Airport Surveillance Radar (MASR)
    Runway Status Lights..............       41,710,000       41,710,000
    National Airspace System Voice           20,550,000       20,550,000
     System (NVS).....................
    Integrated Display System (IDS)...       16,917,000       16,917,000
    Remote Monitoring and Logging             3,930,000        3,930,000
     System (RMLS)....................
    Mode S Service Life Extension             8,100,000        8,100,000
     Program (SLEP)...................
    Surveillance Interface                    4,000,000        4,000,000
     Modernization....................
    Voice Recorder Replacement Program        1,000,000        1,000,000
     (VRRP)...........................
    Precision Runway Monitor (PRM)....        1,000,000        1,000,000
    Integrated Terminal Weather System        4,400,000        4,400,000
     (ITWS)...........................
        Subtotal Terminal Programs....      452,434,000      472,434,000
c. Flight Service Programs
    Aviation Surface Observation              8,000,000        8,000,000
     System (ASOS)....................
    Future Flight Service Program.....        1,000,000        1,000,000
    Alaska Flight Service Facility            2,800,000        2,800,000
     Modernization (AFSFM)............
    Weather Camera Program............          200,000          200,000
        Subtotal Flight Service              12,000,000       12,000,000
         Programs.....................
d. Landing and Navigational Aids
 Program
    VHF Omnidirectional Radio Range           8,300,000        8,300,000
     (VOR) with Distance Measuring
     Equipment (DME)..................
    Instrument Landing System (ILS)--         7,000,000        7,000,000
     Establish........................
    Wide Area Augmentation System           103,600,000      103,600,000
     (WAAS) for GPS...................
    Runway Visual Range (RVR) and             6,000,000        6,000,000
     Enhanced Low Visibility
     Operations (ELVO)................
    Approach Lighting System                  3,000,000        3,000,000
     Improvement Program (ALSIP)......
    Distance Measuring Equipment (DME)        3,000,000        3,000,000
    Visual NAVAIDS--Establish/Expand..        2,000,000        2,000,000
    Instrument Flight Procedures              2,400,000        2,400,000
     Automation (IFPA)................
    Navigation and Landing Aids--             3,000,000        3,000,000
     Service Life Extension Program
     (SLEP)...........................
    VASI Replacement--Replace with            5,000,000        5,000,000
     Precision Approach Path Indicator
    GPS Civil Requirements............       27,000,000                0
    Runway Safety Areas--Navigational        35,000,000       35,000,000
     Mitigation.......................
        Subtotal Landing and                205,300,000      178,300,000
         Navigational Aids Programs...
e. Other ATC Facilities Programs
    Fuel Storage Tank Replacement and        15,500,000       15,500,000
     Management.......................
    Unstaffed Infrastructure                 32,300,000       32,300,000
     Sustainment......................
    Aircraft Related Equipment Program        9,000,000        9,000,000
    Airport Cable Loop Systems--              5,000,000        5,000,000
     Sustained Support................
    Alaskan Satellite                        11,400,000       11,400,000
     Telecommunications Infrastructure
     (ASTI)...........................
    Facilities Decommissioning........        5,700,000        5,700,000
    Electrical Power Systems--Sustain/      102,000,000       92,300,000
     Support..........................
    Energy Management and Compliance          1,000,000        1,000,000
     (EMC)............................
        Subtotal Other ATC Facilities       181,900,000      175,200,000
         Programs.....................
            Total Activity 2..........    1,585,683,000    1,579,983,000
Activity 3--Non-Air Traffic Control
 Facilities and Equipment
a. Support Equipment
    Hazardous Materials Management....       22,000,000       22,000,000
    Aviation Safety Analysis System          11,900,000       11,900,000
     (ASAS)...........................
    Logistics Support Systems and             8,000,000        8,000,000
     Facilities (LSSF)................
    National Air Space (NAS) Recovery        12,000,000       12,000,000
     Communications (RCOM)............
    Facility Security Risk Management.       14,300,000       14,300,000
    Information Security..............       12,000,000       12,000,000
    System Approach for Safety               22,500,000       22,500,000
     Oversight (SASO).................
    Aviation Safety Knowledge                10,200,000       10,200,000
     Management Environment (ASKME)...
    System Safety Management Portfolio       18,700,000       18,700,000
    National Test Equipment Program...        2,000,000        2,000,000
    Mobile Assets Management Program..        4,000,000        4,000,000
    Aerospace Medicine Safety                 3,000,000        3,000,000
     Information Systems (AMSIS)......
    Tower Simulation System (TSS)             3,000,000        3,000,000
     Technology Refresh...............
        Subtotal Support Equipment....      143,600,000      143,600,000
b. Training, Equipment and Facilities
    Aeronautical Center Infrastructure       13,180,000       13,180,000
     Modernization....................
    Distance Learning.................        1,500,000        1,500,000
    Undistributed Amount (FY13
     Sequester).......................
        Subtotal Training, Equipment         14,680,000       14,680,000
         and Facilities...............
            Total Activity 3..........      158,280,000      158,280,000
Activity 4--Facilities and Equipment
 Mission Support
a. System Support and Services
    System Engineering and Development       34,504,000       34,504,000
     Support..........................
    Program Support Leases............       43,200,000       43,200,000
    Logistics Support Services (LSS)..       11,500,000       11,500,000
    Mike Monroney Aeronautical Center        18,350,000       18,350,000
     Leases...........................
    Transition Engineering Support....       16,596,000       16,596,000
    Technical Support Services               23,000,000       23,000,000
     Contract (TSSC)..................
    Resource Tracking Program (RTP)...        4,000,000        4,000,000
    Center for Advanced Aviation             60,000,000       60,000,000
     System Development (CAASD).......
    Aeronautical Information                 12,650,000       12,650,000
     Management Program...............
    Cross Agency NextGen Management...        2,000,000        2,000,000
            Total Activity 4..........      225,800,000      225,800,000
            Activity 5--Personnel and       463,000,000      463,000,000
             Related Expenses.........
            SUB-TOTAL ALL ACTIVITIES..    2,603,700,000    2,600,000,000
------------------------------------------------------------------------

    NextGen priorities.--The FAA is approaching the 10-year 
mark for planning, developing, and implementing the Next 
Generation Air Transportation System (NextGen). As noted by 
stakeholders, the Government Accountability Office (GAO), and 
the OIG, the effort has often not met with expectations. 
Problems with advancing NextGen have been linked to unrealistic 
plans, evolving requirements, and an agency culture that is 
resistant to new ways of doing business. The Committee is 
pleased that the FAA is responding to the recent investment 
priorities recommended by the NextGen Advisory Committee last 
September. This is a much needed and long overdue step. 
Investment priorities include performance-based navigation 
(PBN), improving airport surface operations, and making better 
use of parallel and closely spaced runways at the Nation's most 
active airports. The Committee expects that the FAA will 
develop a plan that outlines specifically how it is addressing 
investment priorities with details on timelines, milestones and 
resource requirements.
    NextGen transformational programs.--The FAA continues to 
invest in several NextGen transformational programs that are 
expected to fundamentally change the way air traffic is managed 
in the United States. FAA should clearly articulate the 
benefits of each program and associated capabilities with 
respect to reduction in flight delays, improvements in airport 
arrival rates, productivity enhancements, and reduced Agency 
operating costs. In the current budget environment, the 
Committee will require a better understanding of what 
investments will deliver in the near-, middle-, and long-term.
    NextGen--improved multiple runway operations.--The 
Committee provides $5,500,000 for FAA's program to improve 
multiple runway operations. The Committee recommendation 
includes $2,000,000 to enhance procedures to allow operations 
on closely spaced parallel runways; $1,500,000 to help mitigate 
wake turbulence for arrival operations; and, $2,000,000 to 
support Category III development and certification efforts 
needed for FAA's ground-based augmentation system.
    Multi-function Phased Array Radar (MPAR).--The Committee 
recognizes the importance of the MPAR program in the 
development and implementation of the next generation weather 
and aircraft radars, and has provided $14,800,000 within the 
NAS Infrastructure Portfolio activity, a $1,000,000 increase 
above the budget request, to advance MPAR program efforts. MPAR 
is expected to extend tornado warning lead times from 14 
minutes to 20 minutes, reduce false alarm rates, and improve 
detection and warning of high-impact severe weather. The 
Committee wishes to ensure that the FAA continues to prioritize 
the MPAR research and development effort and directs the FAA to 
provide a report no later than 180 days after enactment of this 
Act regarding timeframes for determining the operational 
feasibility of MPAR, including annual costs and schedule 
milestones. FAA should consult with its government and academic 
research partners in developing this report.
    Performance-Based Navigation (PBN)--The Committee provides 
$27,500,000 for Performance-Based Navigation, which is 
$2,000,000 above the budget request, to advance PBN activities. 
The Committee recognizes that PBN is an essential stepping 
stone to NextGen and building stakeholder confidence as well as 
a top investment priority for the NextGen Advisory Committee. 
However, progress on the implementation of new routes and the 
realization of benefits has been limited. The OIG has testified 
that at the large airports where the FAA has implemented 
advanced PBN procedures with curved approaches to runways, only 
about 3 percent of eligible airline flights actually used them. 
To increase PBN use, the FAA needs to address several barriers, 
including adjustments to the controller handbook, new automated 
controller tools, and controller training. The Committee 
expects the FAA keep it informed on how and when these barriers 
will be addressed to realize the benefits of new routes. 
Further, the Committee continues to support the third-party 
procedure development program to utilize qualified third 
parties to design, deploy, and maintain public use of Required 
Navigation Procedures (RNP) at airports across the country.
    En Route Automation Modernization (ERAM).--The FAA 
originally planned to deploy ERAM at 20 of its en route 
facilities by the end of 2010, but experienced significant 
delays and cost increases which delayed deployment by more than 
4 years. The FAA has made significant recent progress 
implementing ERAM, and controllers are now using the system at 
18 of 20 sites. The FAA now expects that ERAM will be fully 
operational at all 20 sites in 2015. While ERAM deployment is 
nearly complete, it is uncertain when the legacy systems can be 
decommissioned and when all site-specific issues will be 
addressed. The Committee will continue to monitor the 
deployment of ERAM and expects to be kept informed of how 
future software enhancements will support new air traffic 
control capabilities.
    Automatic dependent surveillance--broadcast (ADS-B) 
implementation.--The Committee provides $252,500,000 for the 
continued implementation of ADS-B, which is $5,000,000 above 
the budget request. The ADS-B program is one of the critical 
NextGen technologies needed to transition air traffic control 
from a ground-based to a satellite-based navigation system. FAA 
has made notable progress in deploying more than 600 ground 
stations and completing the development and testing of key 
surveillance capabilities. The Committee remains concerned that 
significant work is needed to ensure that required aircraft are 
adequately equipped with the avionics necessary to fully 
utilize ADS-B capabilities. In addition, the Committee believes 
there are opportunities for air traffic control efficiency 
improvements in oceanic areas, particularly in light of the 
recent Malaysian flight disappearance. The possibility of 
providing continuous real time tracking of flight operations in 
areas not covered by radar surveillance is of importance to the 
Committee and in the interest of improving the overall safety 
of the system. Within the amount provided, the Committee 
recommendation includes $5,000,000 to evaluate and advance the 
use of space based ADS-B for air traffic control separation 
services. The recommendation will also support the collection 
and validation of surveillance data and help assess the impact 
on FAA's oceanic automation system. Since FAA manages nearly 20 
percent of the oceanic airspace, the Committee believes it is 
prudent to explore opportunities to bring the benefits of 
satellite-based navigation to all areas managed by FAA air 
traffic controllers. Within the first quarter of fiscal year 
2015, the Committee directs the FAA to brief the House and 
Senate Committees on Appropriations on the agency's progress on 
and barriers to implementing the ADS-B technology for all air 
traffic controlled by the FAA.
    Data communications.--The Committee has provided 
$150,340,000 for Data Communications (Data Comm), an increase 
of $3,000,000 above the budget request. This additional funding 
will support the expansion of new en route trials to additional 
locations and increase incentives for users to adopt to Data 
Comm equipage in trial locations.
    Terminal Automation Modernization/Replacement Program 
(TAMR).--The Committee provides $156,150,000 for the Terminal 
Automation Modernization Replacement (TAMR) Program, an 
increase of $20,000,000 above the budget request. Additional 
funding will accelerate the deployment of TAMR at the medium-
sized Common Automated Radar Tracking System IIE locations, 
which will advance the availability of Automated Dependent 
Surveillance--Broadcast (ADS-B) or satellite-based navigation 
capability, and increase the adoption of ADS-B equipage to 
aviation users in those areas across the national airspace. The 
Committee also wishes to ensure that the new capabilities 
enabled by the Standard Terminal Automation Replacement System 
(STARS) provide measurable improvements to the legacy it 
replaces. The Committee directs the OIG to provide an update on 
progress with implementing STARS at the 11 large sites and how 
the effort will support NextGen capabilities.
    VHF Omnidirectional Radio Range (VOR) with Distance 
Measuring Equipment (DME).--The Committee is aware of FAA's 
efforts to evaluate the feasibility of extending the service 
life of the nation's aging VHF Omnidirectional Radio Range with 
Distance Measuring Equipment systems by moving to a service 
based procurement. The Committee is supportive of this approach 
and directs the FAA to provide a report to the Committee on 
progress made on this program no later than March 31, 2015.

                             BILL LANGUAGE

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

                 RESEARCH, ENGINEERING, AND DEVELOPMENT

                    (AIRPORT AND AIRWAY TRUST FUND)




Appropriation, fiscal year 2014.......................      $158,792,000
Budget request, fiscal year 2015......................       156,750,000
Recommended in the bill...............................       156,750,000
Bill compared with:
    Appropriation, fiscal year 2014...................        -2,042,000
    Budget request, fiscal year 2015..................             - - -


    This appropriation provides funding for long-term research, 
engineering and development programs to improve the air traffic 
control system and to raise the level of aviation safety, as 
authorized by the Airport and Airway Improvement Act and the 
Federal Aviation Act. The appropriation also finances the 
research, engineering and development needed to establish or 
modify federal air regulations.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $156,750,000, a decrease of 
$2,042,000 below the fiscal year 2014 enacted level and the 
same as the budget request.
    The Committee recommendation includes the following funding 
levels for Research, Engineering, and Development programs.

------------------------------------------------------------------------
                                         FY 2015 Budget   FY 2015 House
                Program                     Request            Bill
------------------------------------------------------------------------
A11--Safety...........................      $94,484,000      $90,984,000
Fire Research and Safety..............        6,929,000        6,929,000
Propulsion and Fuel Systems...........        2,413,000        2,413,000
Advanced Materials/Structural Safety..        2,909,000        2,909,000
Aircraft Icing/Digital System Safety..        5,889,000        5,889,000
Continued Airworthiness...............        9,619,000        9,619,000
Aircraft Catastrophic Failure                 1,567,000        1,567,000
 Prevention Research..................
Flightdeck/Maintenance/System                 9,897,000        6,000,000
 Integration Human Factors............
System Safety Management..............        7,970,000        7,970,000
Air Traffic Control/Technical                 5,898,000        5,898,000
 Operations Human Factors.............
Aeromedical Research..................        8,919,000        8,919,000
Weather Program.......................       17,800,000       15,897,000
Unmanned Aircraft Systems Research....        8,974,000       10,974,000
NextGen--Alternative Fuels for General        5,700,000        6,000,000
 Aviation.............................
A12--Economic Competitiveness.........       22,286,000       22,286,000
NextGen--Wake Turbulence..............        8,541,000        8,541,000
NextGen--Air Ground Integration Human         9,697,000        9,697,000
 Factors..............................
NextGen--Weather Technology in the            4,048,000        4,048,000
 Cockpit..............................
A13--Environmental Sustainability.....       34,435,000       37,935,000
Environment and Energy................       14,921,000       14,921,000
NextGen--Environmental Research--            19,514,000       23,014,000
 Aircraft Technologies, Fuels, and
 Metrics..............................
A14--Mission Support..................        5,545,000        5,545,000
System Planning and Resource                  2,135,000        2,135,000
 Management...........................
William J. Hughes Technical Center            3,410,000
 Laboratory Facility..................
                                       ------------------------3,410,000
    Total.............................      156,750,000      156,750,000
------------------------------------------------------------------------

    Unmanned aerial systems (UAS) research.--The FAA has 
established six UAS test sites, which are expected to provide 
valuable information for developing the regulatory framework 
for UAS integration. However, the FAA will need to develop a 
comprehensive plan to identify research priorities, including 
how data from test site operations will be gathered, analyzed, 
and used. The Committee recognizes these challenges and 
provides $10,974,000 for UAS research, which is $2,000,000 
above the budget request. These additional funds are provided 
to help meet the FAA's UAS research goals of system safety and 
data gathering, aircraft certification, command and control 
link challenges, control station layout and certification, 
sense and avoid, and environmental impacts.
    Unmanned aerial systems data sharing.--Issues with defining 
the safety data the FAA needs from the Department of Defense 
(DoD) remain a barrier in its efforts to develop safety 
standards. The Committee directs the FAA to develop a plan to 
resolve these data-sharing issues with the DoD and to identify 
what data is needed, why it is needed, and how it will be used.
    NextGen--Alternative fuels for general aviation.--The 
Committee provides $6,000,000 for alternative fuels research 
for general aviation, which is $300,000 above the budget 
request. During the complex transition of the general aviation 
piston fleet to an unleaded fuel, an increase in funding above 
last year is merited to move from research to a phase focused 
on coordinating and facilitating the fleet-wide evaluation, 
certification and deployment of an unleaded fuel and to help 
overcome any market issues that prevent it from moving forward. 
The Committee recognizes this is a multi-year effort and looks 
forward to updates on the continued progress on this initiative 
as it effectively balances environmental improvement with 
aviation safety, technical challenges, and economic impact.
    NextGen environmental research--aircraft technologies, 
fuels and metrics.--The Committee provides $23,014,000 for the 
FAA's NextGen environmental research aircraft technologies, 
fuels and metrics program, which is $3,500,000 above the budget 
request. Over the last few years, the Committee has provided 
additional resources for the FAA's environmental research 
program in an effort to expedite the development of viable 
alternative fuels that can be used in aircraft. Recognizing 
that fuel costs continue to consume the largest portion of 
airline operating budgets and in an effort to reduce the 
aviation sector's emissions footprint, the Committee provides 
additional resources to continue the research, development and 
testing of alternative fuels. Now that the United States Air 
Force Research Laboratory is no longer able to support 
alternative fuels testing, it is expected that the FAA will use 
some of these resources to produce fit for purpose chemical-
analytical, fuel-property and material compatibility testing 
for many of the new chemical processes that produce alternative 
jet fuel. In addition, the Committee provides resources to 
continue the FAA's Continuous, Lower Energy Emission, and Noise 
Program.

                       GRANTS-IN-AID FOR AIRPORTS

                      (LIMITATION ON OBLIGATIONS)

------------------------------------------------------------------------
                                      Liquidation of
                                         contract        Limitation on
                                      authorization       obligations
------------------------------------------------------------------------
Appropriation, fiscal year 2014...     $3,200,000,000     $3,350,000,000
Budget request, fiscal year 2015..      3,200,000,000      2,900,000,000
Recommended in the bill...........      3,200,000,000      3,350,000,000
Bill compared with:
    Appropriation, fiscal year                  - - -              - - -
     2014.........................
    Budget request, fiscal year                 - - -       +450,000,000
     2015.........................
------------------------------------------------------------------------

    The bill includes a liquidating cash appropriation of 
$3,200,000,000 for grants-in-aid for airports, authorized by 
the Airport and Airway Improvement Act of 1982, as amended. 
This funding provides for liquidation of obligations incurred 
pursuant to contract authority and annual limitations on 
obligations for grants-in-aid for airport planning and 
development, noise compatibility and planning, the military 
airport program, reliever airports, airport program 
administration, and other authorized activities.

                       LIMITATION ON OBLIGATIONS

    The bill includes a limitation on obligations of 
$3,350,000,000 for fiscal year 2015, which is the same as the 
fiscal year 2014 enacted level and $450,000,000 above the 
budget request.

                  ADMINISTRATION AND RESEARCH PROGRAMS

    Airport administrative expenses.--Within the overall 
obligation limitation, the bill includes $107,100,000 for the 
administration of the airports program by the FAA. This funding 
level is equal to the budget request and $500,000 above the 
fiscal year 2014 enacted level.
    Airport Cooperative Research Program (ACRP).--The 
recommendation includes $15,000,000 which is the same level as 
the budget request and the fiscal year 2014 enacted level. The 
ACRP was established through Section 712 of the Vision 100--
Century of Aviation Reauthorization Act (P.L. 108-176) to 
identify shared problem areas facing airports that can be 
solved through applied research but are not adequately 
addressed by existing Federal research programs.
    Airport technology research.--The recommendation includes a 
minimum of $29,750,000 for the FAA's airport technology 
research program which is equal to the budget request and 
$250,000 above the fiscal year 2014 enacted level. The funds 
provided for this program are utilized to conduct research in 
the areas of airport pavement; airport marking and lighting; 
airport rescue and firefighting; airport planning and design; 
wildlife hazard mitigation; and visual guidance.
    Small Community Air Service Development Program.--The 
recommendation includes $3,000,000 for the Small Community Air 
Service Development Program and directs the FAA to transfer 
funds to the Office of the Secretary salaries and expenses 
appropriation for this activity.
    Runway safety areas (RSAs).--The FAA has been engaged in a 
multi-year effort to improve RSAs at certificated airports 
across the country in order to meet the 2015 statutory 
deadline. To date, not including moving FAA owned NAVAIDS, FAA 
has completed RSA improvements at roughly 93 percent of 
certificated airports. Strategies to improve runway safety 
include land acquisition, the use of declared distances, 
removing or making frangible objects that must be in the RSA, 
and the installation of engineered materials arresting systems 
(EMAS). However, the Committee remains concerned about FAA's 
progress to relocate and modify navigational aids that present 
hazards at the end of runways. The Committee expects the air 
traffic organization to work collaboratively with the airports 
organization to ensure that every effort is made to complete 
the RSA mandate in a timely manner. The Committee directs FAA 
to brief the House and Senate Committees on Appropriations by 
March 16, 2015 on the status of completed RSAs and cost and 
timeline for removing navigational aids that pose a hazard to 
unfinished RSAs.
    Airport revenue diversion.--Federal law requires that 
airport revenue be used only for the capital and operating 
costs of an airport. As such, the FAA is responsible for 
effective oversight of airport revenue at those airports that 
receive grants under the Airport Improvement Program. Because 
airport revenue diversion continues to be a problem at the 
nation's airports, the Committee directed the Inspector General 
to undertake an audit of revenue diversion activities. The 
Report found inadequacies in FAA's oversight of airport 
revenues. Given the limited funding available for airport 
improvement projects, it is important that the FAA enhance its 
oversight of airport revenues, particularly at airports with a 
history of revenue diversion violations. The Committee directs 
FAA to strengthen its oversight of airport revenue uses to 
ensure that the use of airport revenue is only for airport 
capital and operating costs. Further, the Committee directs the 
FAA to follow up on any Inspector General revenue diversion 
audits or reports carried out in the past 18 months, and 
provide the House and Senate Appropriations Committee with the 
results of such follow-up activity not later than March 1, 
2015.

                             BILL LANGUAGE

    Runway incursion prevention systems and devices.--
Consistent with prior year appropriations Acts, the bill allows 
funds under this limitation to be used for airports to procure 
and install runway incursion prevention systems and devices.

                              CANCELLATION

    The Committee recommendation cancels $260,000,000 of amount 
authorized under sections 48103 and 48112 of Title 49, U.S.C.

       ADMINISTRATIVE PROVISIONS--FEDERAL AVIATION ADMINISTRATION

    Section 110. The Committee retains a provision limiting the 
number of technical workyears at the Center for Advanced 
Aviation Systems Development to 600 in fiscal year 2015.
    Section 111. The Committee retains a provision prohibiting 
FAA from requiring airport sponsors to provide the agency 
`without cost' building construction, maintenance, utilities 
and expenses, or space in sponsor-owned buildings, except in 
the case of certain specified exceptions.
    Section 112. The Committee continues a provision allowing 
reimbursement for fees collected and credited under 49 U.S.C. 
45303.
    Section 113. The Committee retains a provision allowing 
reimbursement of funds for providing technical assistance to 
foreign aviation authorities to be credited to the operations 
account.
    Section 114. The Committee retains a provision prohibiting 
the FAA from paying Sunday premium pay except in those cases 
where the individual actually worked on a Sunday.
    Section 115. The Committee retains a provision prohibiting 
FAA from using funds to purchase store gift cards or gift 
certificates through a government-issued credit card.
    Section 116. The Committee includes a provision that 
requires approval from the Deputy Assistant Secretary for 
Administration of the Department of Transportation for 
retention bonuses for any FAA employee.
    Section 117. The Committee includes a provision that 
requires the Secretary to block the display of an owner or 
operator's aircraft registration number in the Aircraft 
Situational Display to Industry program, upon the request of an 
owner or operator.
    Section 118. The Committee includes a provision that limits 
the number of FAA political appointees to 9.
    Section 119. The Committee includes a provision that 
prohibits funds for any increase in fees for navigational 
products until the FAA has reported a justification for such 
fees to the Committees on Appropriations.
    Section 119A. The Committee retains a provision prohibiting 
funds to change weight restrictions or prior permission rules 
at Teterboro Airport, Teterboro, New Jersey.

                     Federal Highway Administration

    The Federal Highway Administration (FHWA) provides 
financial assistance to the states to construct and improve 
roads and highways. It also provides technical assistance to 
other agencies and organizations involved in road building 
activities. Title 23 of the United States Code and other 
supporting statutes provide authority for the activities of the 
FHWA. Funding is provided by contract authority, while program 
levels are established by annual limitations on obligations, as 
set forth in appropriations Acts.

                   AUTHORIZATION FOR FISCAL YEAR 2015

    FHWA's current activities are authorized under MAP-21, 
which expires on September 30, 2014. The administration as well 
as the House and Senate authorizing committeesare currently 
working on surface transportation authorization legislation. 
However, at this time, it remains unclear what authorization 
law (or laws) will be effective during fiscal year 2015. 
Therefore, the Committee must recommend appropriations for 
programs without authorization and the Committee's 
recommendations for FHWA are contingent upon reauthorization.
    The Committee therefore provides only minimal bill language 
that sets the overall FHWA obligation limitation for fiscal 
year 2015, contingent upon authorization. It is the Committee's 
intention that appropriations made by this bill will be wholly 
contingent on a reauthorization of the highway program and will 
be distributed only in accordance with the new authorization 
law.

                 LIMITATION ON ADMINISTRATIVE EXPENSES

                          (HIGHWAY TRUST FUND)

                     (INCLUDING TRANSFER OF FUNDS)




Appropriation, fiscal year 2014.......................      $416,100,000
Budget request, fiscal year 2015......................       439,000,000
Recommended in the bill...............................       426,100,000
Bill compared with:
    Appropriation, fiscal year 2014...................       +10,000,000
    Budget request, fiscal year 2015..................       -12,900,000


    The limitation on administrative expenses caps the amount, 
from within the limitation on obligations, that FHWA may spend 
on salaries and expenses necessary to conduct and administer 
the federal-aid highway program, highway-related research, and 
most other federal highway programs.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a limitation of $426,100,000, 
which is $10,000,000 above fiscal year 2014, and $12,900,000 
below the budget request. The amount reflects a modest increase 
adequate to continue work already underway to modernize and 
maintain information technology systems and also to keep pace 
with inflation within baseline program operations. In addition, 
$3,248,000 is transferred to the Appalachian Regional 
Commission.

                          FEDERAL-AID HIGHWAYS

                      (LIMITATION ON OBLIGATIONS)

                          (HIGHWAY TRUST FUND)

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                          Fiscal year 2014   Fiscal year 2015   Recommended  in
                        Program                               enacted            request            the bill
----------------------------------------------------------------------------------------------------------------
Federal-aid highways (obligation limitation)...........        $40,256,000        $47,323,248        $40,256,000
Exempt contract authority..............................            739,000            739,000            739,000
                                                        --------------------------------------------------------
    Total program level................................         40,995,000         48,062,248         40,995,000
----------------------------------------------------------------------------------------------------------------

    The federal-aid highways program is designed to aid in the 
development, operations and management of an intermodal 
transportation system that is economically efficient and 
environmentally sound, to provide the foundation for the nation 
to compete in the global economy, and to move people and goods 
safely.
    Federal-aid highways and bridges are managed through a 
federal-state partnership. States and localities maintain 
ownership of and responsibility for the maintenance, repair and 
new construction of roads. State highway departments have the 
authority to initiate federal-aid projects, subject to FHWA 
approval of the plans, specifications, and cost estimates. The 
Federal government provides financial support, on a 
reimbursable basis, for construction and repair through 
matching grants.
    Programs included within the federal-aid highways program 
are financed from the Highway Trust Fund. The federal-aid 
highways program is funded by contract authority, and 
liquidating cash appropriations are subsequently provided to 
fund outlays resulting from obligations incurred under contract 
authority. The Committee sets, through the annual 
appropriations process, an overall limitation on the total 
contract authority that can be obligated under the program in a 
given year.
    Because the structure of the federal-aid highways program 
for fiscal year 2015 is unknown at this time due to lack of 
authorizing legislation, the Committee includes no detailed 
summaries of particular programs.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a total program level of 
$40,995,000,000 for the activities of the FHWA in fiscal year 
2015, contingent upon reauthorization. This amount is the same 
as fiscal year 2014 and $7,067,248,000 below the budget 
request. Included within the recommended amount is an 
obligation limitation of $40,256,000,000 and $739,000,000 in 
contract authority that is exempt from the obligation 
limitation.
    Loan fees.--The Committee continues bill language allowing 
the Secretary to charge and collect fees from the applicant for 
a direct loan, guaranteed loan, or line of credit to cover the 
cost of the services of expert firms performed on behalf of the 
Department. These fees are not subject to the obligation 
limitation or the limitation on administrative expenses set for 
the Transportation Infrastructure Finance and Innovation 
program under section 608 of title 23, United States Code.
    Innovative financing.--The committee notes the significant 
role of Transportation Infrastructure Financing and Innovation 
Act (TIFIA) credit assistance in expanding the capacity of the 
federal-aid highways program to deliver projects. The Committee 
encourages the FHWA to fully obligate amounts available for 
credit assistance, contingent upon authorization, and complete 
new credit agreements with eligible project sponsors in a 
timely manner. To ensure an equitable geographic distribution 
of these resources, the Committee recommends a provision 
prohibiting any single state from receiving more than 33 
percent of the loan subsidy provided for TIFIA under this Act.
    Safety performance measures and reporting requirements.--On 
March 11, 2014, FHWA published an NPRM to establish safety 
performance measures for the Highway Safety Improvement Program 
(HSIP) as required by section 1203 of MAP-21. The NPRM proposes 
to establish one measure for each of the following areas as 
mandated by MAP-21: number of fatalities; fatality rate; number 
of serious injuries; and serious injury rate. In addition, 
while the National Highway Traffic Safety Administration 
(NHTSA) already uses performance measures for pedestrian 
fatalities in administering NHTSA's highway traffic safety 
grant program, the Committee understands that NHTSA intends to 
establish performance measures for bicycle fatalities when it 
administers its fiscal year 2015 traffic safety grants. 
Recognizing the increase in pedestrian and bicycle fatalities, 
the Secretary of Transportation should establish separate non-
motorized safety performance measures for the purpose of 
carrying out HSIP requirements. The FHWA should define these 
performance measures specifically to evaluate the number of 
fatalities and serious injuries for pedestrian and bicycle 
crashes. The statutory deadline for completing the rulemaking 
has come and gone. The Committee directs FHWA to publish its 
final rule on safety performance measures no later than 60 days 
after the enactment of this Act.
    This issue demonstrates the importance of coordination 
across modal administrations, and their state and local 
counterparts, on safety planning, reporting, and performance 
measurement especially in light of the intersection between 
emerging vehicle-to-vehicle communications technologies and 
intelligent transportation systems infrastructure. The 
Committee directs FHWA and NHTSA, and other modes as 
recommended by DOT's safety council, to report to the Committee 
within 60 days of enactment on a plan to improve coordination 
on cross-cutting performance measurements and reporting 
requirements, identify opportunities to streamline and 
consolidate grantee reporting and performance tracking 
activities, and delineate steps the agencies and the grantees 
can take to improve coordination at the federal, state and 
local level on safety planning mandates, reporting requirements 
and performance measurements.
    Innovative project implementation and funding.--The 
Department is encouraged to use funds authorized to carry out 
section 503(b) of title 23, United States Code, to carry out 
the activities listed in paragraph (3)(C)(v) of such section 
and to support regional pilot programs that would promote 
accelerated construction of transportation infrastructure 
including public private partnership programs that seek to 
connect public entities with private capital. When funding such 
activities, the Secretary shall give stronger consideration to 
existing multi-state or multi-jurisdictional programs or other 
similar proposals that demonstrate geographic and regional 
collaboration. The Committee encourages the Secretary to 
coordinate with the Environmental Protection Agency, the 
Department of Energy, and the Army Corp of Engineers in 
identifying local, state and regional infrastructure and 
infrastructure planning deficiencies.
    Technology and innovation deployment program.--The 
Committee supports the technology and innovation deployment 
program's efforts to improve safety, efficiency, reliability, 
and performance of our nation's transportation infrastructure. 
The Committee understands that through this program States can 
apply for accelerated innovation deployment demonstration 
grants and state transportation innovation council incentives 
to demonstrate and deploy advanced composite material and 
carbon fiber composite materials in bridge replacement and 
rehabilitation. The Committee notes the growing need to 
accelerate the adoption of proven, high-payoff, and innovative 
practices, technologies, and materials that lead to faster 
construction such as the use of fiber reinforced composite 
materials and carbon fiber composite materials in bridge 
replacement and rehabilitation, and encourages the 
administration to continue to support these innovative 
technologies.
    Geosynthetics.--The Committee encourages the Federal 
Highway Administration to actively review and incorporate 
geosynthetics for highway and civil infrastructure 
applications, due to their cost savings, longevity, and 
environmental benefits. The Committee also encourages the 
Department of Transportation to thoroughly review the 
Government Accountability Office (GAO) study entitled, 
Information on Materials and Practices for Improving Highway 
Pavement Performance that investigated the benefits of 
incorporating innovative materials into pavements.
    Chehalis Basin flood mitigation plan.--The Committee 
understands the State of Washington is developing a 
comprehensive flood mitigation plan for the Chehalis Basin. The 
Department is directed to assist the Governor's Chehalis work 
group in their efforts to develop a basin-wide flood mitigation 
plan that protects Interstate 5 from catastrophic flooding and 
achieves the work group's objectives.
    Tamiami Trail project.--The Committee has strongly 
supported Everglades restoration for twenty years and was 
pleased to see the Governor of Florida pledge $90,000,000 to 
support the completion of the Tamiami Trail 2.6 mile bridge 
segment. The Committee also notes that the National Parks 
Service has pledged in their fiscal year 2015 budget, a 
matching investment of $30,000,000 per year for three years, 
from their non-appropriated Federal Lands Transportation 
Program starting in fiscal year 2015 to cover 50 percent of the 
cost of contract payments. The Committee commends DOT for its 
efforts to support federal and state coordination on important 
projects like the Tamiami Trail.

                (LIQUIDATION OF CONTRACT AUTHORIZATION)

                          (HIGHWAY TRUST FUND)




Appropriation, fiscal year 2014.......................   $40,995,000,000
Budget request, fiscal year 2015......................    48,062,248,000
Recommended in the bill...............................    40,995,000,000
Bill compared with:
    Appropriation, fiscal year 2014...................             - - -
    Budget request, fiscal year 2015..................    -7,067,248,000


                        COMMITTEE RECOMMENDATION

    The Committee recommends a liquidating cash appropriation 
of $40,995,000,000, which is the same as fiscal year 2014 and 
$7,067,248,000 below the budget request. This is the amount 
required to pay the outstanding obligations of the highway 
program at levels provided in this Act or any other Act.

             FIXING AND ACCELERATING SURFACE TRANSPORTATION

                      (LIMITATION ON OBLIGATIONS)

                (LIQUIDATION OF CONTRACT AUTHORIZATION)

                          (HIGHWAY TRUST FUND)




Appropriation, fiscal year 2014.......................             - - -
Budget request, fiscal year 2015......................      $500,000,000
Recommended in the bill...............................             - - -
Bill compared with:
    Appropriation, fiscal year 2014...................             - - -
    Budget request, fiscal year 2015..................      -500,000,000


    The FY 2015 budget proposes the Fixing and Accelerating 
Surface Transportation (FAST) program. This new, unauthorized 
program, jointly managed by the Federal Highway Administration 
and Federal Transit Administration, would competitively award 
grants and financial incentives for transportation policy 
innovations and reforms.

                        COMMITTEE RECOMMENDATION

    The Committee does not provide funding for this proposal.

       ADMINISTRATIVE PROVISIONS--FEDERAL HIGHWAY ADMINISTRATION

    Section 120. The Committee continues a provision that 
distributes obligation authority among federal-aid highways 
programs. The provision has been updated to be consistent with 
changes to the underlying authorizing statute made by MAP-21 
and is contingent upon reauthorization.
    Section 121. The Committee continues a provision that 
credits funds received by the Bureau of Transportation 
Statistics to the federal-aid highways account.
    Section 122. The Committee continues a provision that 
provides requirements for any waiver of the Buy America Act.
    Section 123. The Committee continues a provision 
prohibiting tolling in Texas, with exceptions.
    Section 124. The Committee continues a provision that 
requires congressional notification before the Department 
approves credit assistance under the TIFIA program.
    Section 125. The Committee adds a provision that aligns 
certain federal and state truck weight requirements.

              Federal Motor Carrier Safety Administration

    The Federal Motor Carrier Safety Administration (FMCSA) was 
established within the Department of Transportation (DOT) by 
Congress through the Motor Carrier Safety Improvement Act of 
1999. FMCSA's mission is to promote safe commercial motor 
vehicle operations and reduce truck and bus crashes. FMCSA 
works with federal, state, and local entities, the motor 
carrier industry, highway safety organizations, and the public 
to further its mission.
    FMCSA resources are used to prevent and mitigate commercial 
vehicle accidents through regulation, enforcement, stakeholder 
training, technological innovation, and improved information 
systems. FMCSA also is responsible for enforcing Federal motor 
carrier safety and hazardous materials regulations for all 
commercial vehicles entering the United States along its 
southern and northern borders.

                   AUTHORIZATION FOR FISCAL YEAR 2015

    FMCSA's current activities are authorized under MAP-21, 
which expires on September 30, 2014. The administration as well 
as the House and Senate authorizing committees are currently 
working on surface transportation authorization legislation. 
However, at this time, it remains unclear what authorization 
law (or laws) will be effective during fiscal year 2015. 
Therefore, the Committee must recommend appropriations for 
programs without authorization and the Committee's 
recommendations for FMCSA are contingent upon reauthorization.
    For purposes of determining authorized programs and funding 
levels for fiscal year 2015, the Committee assumes an extension 
of MAP-21 through fiscal year 2015. However, it is the 
Committee's intention that appropriations made by this bill 
will be wholly contingent on reauthorization and will be 
distributed only in accordance with the new authorization law.

              MOTOR CARRIER SAFETY OPERATIONS AND PROGRAMS

                (LIQUIDATION OF CONTRACT AUTHORIZATION)

                      (LIMITATION ON OBLIGATIONS)

                          (HIGHWAY TRUST FUND)

------------------------------------------------------------------------
                              Liquidation of contract    Limitation on
                                    authorization         obligations
------------------------------------------------------------------------
Appropriation, fiscal year               $272,000,000     ($272,000,000)
 2014\1\....................
Budget request, fiscal year               315,770,000      (315,770,000)
 2015.......................
Recommended in the bill.....              259,000,000      (259,000,000)
Bill compared with:
    Appropriation, fiscal                 -13,000,000      (-13,000,000)
 year 2014..................
    Budget request, fiscal                -56,770,000      (-56,770,000)
 year 2015..................
------------------------------------------------------------------------
\1\Amounts include $13,000,000 provided for border facilities under the
  heading ``National Motor Carrier Safety'' in fiscal year 2014.

    This limitation controls FMCSA spending on salaries, 
operating expenses, and research. It provides resources to 
support motor carrier safety program activities and to maintain 
the agency's administrative infrastructure. This funding 
supports nationwide motor carrier safety and consumer 
enforcement efforts, including the compliance, safety, and 
accountability program, regulation and enforcement of freight 
transport, and federal safety enforcement at the U.S. borders. 
These resources also fund regulatory development and 
implementation, information management, research and 
technology, grants to state and local partners, safety 
education and outreach, and the safety and consumer telephone 
hotline.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $259,000,000 in liquidating cash 
for motor carrier safety operations and programs. The Committee 
also recommends limiting obligations from the highway trust 
fund to $259,000,000 for motor carrier safety operations and 
programs in fiscal year 2015. These levels, which are 
contingent upon reauthorization, are $13,000,000 below fiscal 
year 2014 and $56,770,000 below the budget request.
    Within the amounts provided for operations and programs, 
the Committee recommends $1,000,000 for commercial motor 
vehicle operator's grants, which provide commercial motor 
vehicle operators with critical safety training. This amount, 
which is contingent upon reauthorization, is the same as fiscal 
year 2014 and the budget request. These funds are not moved 
into the Motor Carrier Safety Grants account as requested.
    The Committee continues bill language specifying funding 
amounts for the research and technology program and for 
information management, and making those amounts available 
until September 30, 2017.
    Hazardous materials safety permits.--FMCSA does not 
currently have a reasonable means of evaluating Hazardous 
Materials Safety Permit (HMSP) holders with inspection 
disqualifications which leaves operators no recourse beyond 
``aging out'' of their disqualification. Because of the special 
nature of these carriers and because many are small businesses, 
a few violations combined with a low number of inspections can 
force a safe operator out of business with no opportunity for a 
second level of review. Further, because of the timing and 
methodology of the HMSP renewal cycle, this ``out-of-business'' 
event can sometimes come with little to no warning. To prevent 
federal bureaucracy from unnecessarily hurting small 
businesses, bill language is included which prohibits FMCSA 
from denying an application to renew a HMSP permit application 
based solely on a carrier's Out-of-Service (OOS) rate unless: 
(1) the carrier has been given a reasonable opportunity to 
provide evidence of corrective actions taken or a corrective 
action plan underway; and (2) the Secretary finds that those 
actions or plan would be insufficient to address specific and 
apparent safety concerns raised by the carrier's inspection 
citations.
    Compliance, safety, accountability program.--The Committee 
directs FMCSA to carry out recommendations for its Compliance, 
Safety, Accountability program (CSA) as outlined in the 
Government Accountability Office's February 2014 report. FMCSA 
shall revise Safety Measurement System (SMS) methodology to 
better account for data limitations that undermine meaningful 
comparisons of safety performance information across carriers. 
FMCSA is directed to conduct a formal analysis that 
specifically identifies what are the limitations in data used 
to calculate SMS scores as well as limitations in resulting SMS 
scores and report that analysis to the House and Senate 
Committees on Appropriations within 180 days of enactment. Such 
analysis shall also identify, for each purpose for which SMS 
scores are used, what data sufficiency standard is necessary to 
ensure SMS is reliable enough to serve that purpose. FMCSA is 
also directed to demonstrate that any use of data, including 
SMS, to determine a carrier's fitness to operate has adequately 
accounted for data limitations.
    Hours of Service.--In July of 2013 several changes to the 
truck driver hours of service regulations went into effect 
including revisions to the ``restart'' provision. Under the new 
regulations, the 34 consecutive hours of off-duty time required 
to reset a driver's on-duty time tracking was modified in two 
important ways. First, the off-duty period was changed to 
require two consecutive 1am-to-5am overnight periods. Second, 
the restart option was restricted to one use every 168 hours 
(once per week). Per MAP-21, FMCSA conducted a field study of 
the impact of the new requirements on driver fatigue and 
released those findings on January 30, 2014. The study provided 
no insight into the impact of one of the two critical changes 
to the restart provision, the 168-hour rule. Further, in its 
review of the 1am-to-5am requirement, FMCSA failed to consider 
important consequences of such a rule including whether or not 
truckers are driving more during the day in order to 
accommodate mandated off-duty time at night, and, if so, what 
are the consequences for safety and traffic of putting more 
commercial trucks on the road during peak travel times. FMCSA 
also failed to evaluate the work habits of drivers since July 
2013 to assess whether drivers have been more frequently 
combining night shifts with day shifts in a single week, and, 
if so, what impact this irregular scheduling has on driver 
fatigue. The Committee directs FMCSA to provide a report to the 
House and Senate Committees on Appropriations within 90 days of 
enactment that catalogues the scientific evidence which 
supports the safety benefits of the 168-hour rule. The report 
should also include an assessment of effects on safety and 
traffic of the consequences outlined above and any other 
unintended consequences of the new restart provision that were 
not addressed by the FMCSA field study.

                      MOTOR CARRIER SAFETY GRANTS

                (LIQUIDATION OF CONTRACT AUTHORIZATION)

                      (LIMITATION ON OBLIGATIONS)

                          (HIGHWAY TRUST FUND)

------------------------------------------------------------------------
                                    Liquidation of
                                       contract          Limitation on
                                     authorization        obligations
------------------------------------------------------------------------
Appropriation, fiscal year 2014.        $313,000,000      ($313,000,000)
Budget request, fiscal year 2015         352,753,000       (352,753,000)
Recommended in the bill.........         313,000,000       (313,000,000)
Bill compared with:
    Appropriation, fiscal year                 - - -               - - -
 2014...........................
    Budget request, fiscal year          -39,753,000       (-39,753,000)
 2015...........................
------------------------------------------------------------------------

    FMCSA's motor carrier safety grants are used to support 
compliance reviews in the states, identify and apprehend 
traffic violators, conduct roadside inspections, and conduct 
safety audits of new entrant carriers. Additionally, grants are 
provided to states for safety enforcement at the U.S. borders, 
improvement of state commercial driver's license oversight 
activities, and improvements in linking states' motor vehicle 
registration systems and carrier safety data.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $313,000,000 in liquidating cash 
for this program, as well as a $313,000,000 limitation on 
obligations, in fiscal year 2015. These levels, which are 
contingent upon reauthorization, are the same as fiscal year 
2014 and $39,753,000 below the budget request.
    The Committee recommends the following obligation 
limitations for grants funded under this account:

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

------------------------------------------------------------------------
Motor carrier safety assistance program..............     ($218,000,000)
Commercial driver's license improvements program.....       (30,000,000)
Border enforcement grants............................       (32,000,000)
Performance and registration information system              (5,000,000)
 management program..................................
Commercial vehicle information systems and networks         (25,000,000)
 deployment program..................................
Safety data improvement program......................        (3,000,000)
------------------------------------------------------------------------

    New entrant audits.--Of the funds made available for the 
motor carrier safety assistance program, the Committee 
recommends $32,000,000 for audits of new entrant motor 
carriers, which is the same as fiscal year 2014.

 ADMINISTRATIVE PROVISIONS--FEDERAL MOTOR CARRIER SAFETY ADMINISTRATION

    Sec. 130. The Committee continues language subjecting the 
funds appropriated in this Act to the terms and conditions 
included in prior appropriations Acts regarding Mexico-
domiciled motor carriers.
    Sec. 131. The Committee adds language requiring FMCSA to 
send notices of 49 C.F.R. section 385.308 violations in such a 
way that receipt of the notice is confirmed.

             National Highway Traffic Safety Administration

    The National Highway Traffic Safety Administration (NHTSA) 
was established in March of 1970 to administer motor vehicle 
and highway safety programs. It was the successor agency to the 
National Highway Safety Bureau, which was housed in the Federal 
Highway Administration.
    NHTSA's mission is to save lives, prevent injuries, and 
reduce economic costs due to road traffic crashes, through 
education, research, safety standards and enforcement activity. 
To accomplish these goals, NHTSA establishes and enforces 
safety performance standards for motor vehicles and motor 
vehicle equipment, investigates safety defects in motor 
vehicles, and conducts research on driver behavior and traffic 
safety.
    NHTSA provides grants and technical assistance to state and 
local governments to enable them to conduct effective local 
highway safety programs. Together with state and local 
partners, NHTSA works to reduce the threat of drunk, impaired, 
and distracted drivers, and to promote policies and devices 
with demonstrated safety benefits including helmets, child 
safety seats, airbags, and graduated licenses.
    NHTSA establishes and ensures compliance with fuel economy 
standards, investigates odometer fraud, establishes and 
enforces vehicle anti-theft regulations, and provides consumer 
information on a variety of motor vehicle safety topics.

                   AUTHORIZATION FOR FISCAL YEAR 2015

    NHTSA's current programs have been authorized under a 
series of laws, and the most recent authorization, MAP-21, 
expires on September 30, 2014. The administration as well as 
the House and Senate authorizing committees are currently 
working on surface transportation authorization legislation. 
However, at this time, it remains unclear what authorization 
law (or laws) will be effective during fiscal year 2015. 
Therefore, the Committee must recommend appropriations for 
programs without authorization and the Committee's 
recommendations for NHTSA are contingent upon reauthorization.
    In the absence of a 2015 authorization for surface 
transportation programs, including highway safety programs, the 
Committee assumes a continuation of the current program 
structure. However, it is the Committee's intention that 
appropriations made by this bill will be wholly contingent on 
reauthorization and will be distributed only in accordance with 
the new authorization law.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $824,000,000, which is $5,000,000 
more than fiscal year 2014 and $27,000,000 below the budget 
request.
    The following table summarizes the Committee's 
recommendations:

----------------------------------------------------------------------------------------------------------------
                                                                                                    Committee
                                                                 2014 enacted     2015 request    recommendation
----------------------------------------------------------------------------------------------------------------
Operations and research (general fund and highway trust fund)     $257,500,000     $274,000,000     $262,500,000
Highway traffic safety grants (highway trust fund)...........      561,500,000      577,000,000      561,500,000
                                                              --------------------------------------------------
    Total....................................................      819,000,000      851,000,000      824,000,000
----------------------------------------------------------------------------------------------------------------

    The Committee recommends funding levels that provide NHTSA 
with sufficient resources to continue its critical work 
improving the safety of passenger travel on the nation's 
highway system.

                        OPERATIONS AND RESEARCH

                (LIQUIDATION OF CONTRACT AUTHORIZATION)

                      (LIMITATION ON OBLIGATIONS)

                          (HIGHWAY TRUST FUND)

----------------------------------------------------------------------------------------------------------------
                                                                   (General      (Highway trust
                                                                   fund)\1\          fund)            Total
----------------------------------------------------------------------------------------------------------------
Appropriation, fiscal year 2014..............................     $134,000,000     $123,500,000     $257,500,000
Budget request, fiscal year 2015.............................      152,000,000      122,000,000      274,000,000
Recommended in the bill......................................      134,000,000      128,500,000      262,500,000
Bill compared with:
    Appropriation, fiscal year 2014..........................            - - -       +5,000,000       +5,000,000
    Budget request, fiscal year 2015.........................      -18,000,000       +6,500,000      -11,500,000
----------------------------------------------------------------------------------------------------------------
\1\For comparison purposes, the table does not reflect the budget proposal to fund all of NHTSA's Operations and
  Research activities with mandatory budget authority.

    The operations and research appropriations support 
research, demonstrations, technical assistance, and national 
leadership for highway safety programs. Many of these programs 
are conducted in partnership with state and local governments, 
the private sector, universities, research units, and various 
safety associations and organizations. These programs address 
alcohol and drug countermeasures, vehicle occupant protection, 
traffic law enforcement, emergency medical and trauma care 
systems, traffic records and licensing, traffic safety 
evaluations, motorcycle safety, pedestrian and bicycle safety, 
pupil transportation, distracted and drowsy driving, young and 
older driver safety programs, and development of improved 
accident investigation procedures.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $262,500,000, which is $5,000,000 
more than fiscal year 2014 and $11,500,000 below the budget 
request. Of this total, $134,000,000 is from the General Fund 
for operations and vehicle safety research, and $128,500,000 is 
from the highway trust fund for operations and behavioral 
highway safety research. The Committee rejects the 
administration's request to fund vehicle safety activities out 
of the Highway Trust Fund, rather than the General Fund.
    Emerging technology research.--As vehicle safety features 
continue to advance, it is imperative that NHTSA has a clear 
understanding of the various new technologies including those 
related to autonomous driving and vehicle-to-vehicle 
communication. Understanding how these advances are evolving 
and converging will ensure that consumers, regulators, and 
safety advocates are best able to navigate and implement these 
technologies going forward. To forward this understanding, the 
Committee recommendation funds the requested increases for 
vehicle electronics and emerging technology research and for 
advanced testing of emergent technologies at the Vehicle 
Research and Test Center in East Liberty, Ohio.
    Heavy duty vehicle research.--In an effort to further 
increase the safety of heavy trucks and buses, the Committee 
encourages NHTSA to fund research that will provide needed 
insight for fleets and owner-operators on how available safety 
technologies may better enhance their ability to operate 
safely.
    National roadside survey.--NHTSA recently sponsored the 
fifth National Roadside Survey (NRS) conducted since the 
original survey in 1973. This national field survey of 
nighttime weekend drivers seeks to estimate the prevalence of 
alcohol and drugs in drivers on our Nation's roadways. The 
survey involves stopping drivers at approximately 300 randomly 
selected locations across the continental United States. While 
participation in the survey is random, voluntary, and 
compensated, civil libertarians have raised concerns about the 
presence of uniformed officers at the survey sites as the 
driving public may confuse survey sites with mandatory law 
enforcement checkpoints. In addition, passive collection of 
personal information, including blood alcohol content, has 
raised privacy concerns. The Committee directs NHTSA to provide 
a report to the House and Senate Committees on Appropriations 
within 90 days of enactment that details the survey methodology 
of the most recent NRS including what characteristics 
distinguish NRS sites from mandatory law enforcement 
checkpoints and what steps are taken to make clear that either 
pulling over or participating in the survey are both completely 
voluntary. The report should also describe what steps are taken 
to protect the privacy of both participants and drivers that 
come upon NRS sites. The Committee also directs the Government 
Accountability Office to review and report on the overall value 
of the NRS to researchers and other public safety stakeholders, 
the differences between an NRS site and a typical law 
enforcement checkpoint, and the effectiveness of the NRS survey 
methodology at protecting the privacy of the driving public.
    Tire fuel efficiency consumer information program.--NHTSA 
has not yet published the final rule for the Tire Fuel 
Efficiency Consumer Information Program (TFECIP) despite having 
published a proposed rule in 2009, obtaining comments from a 
full range of stakeholders, and publishing a proposed final 
rule in 2010. This rulemaking is pursuant to statutory 
requirements contained in the Energy Independence and Security 
Act (EISA) of 2007. The proposed rule could help inform 
decisions about the purchase of replacement tires that could 
save consumers hundreds of dollars annually. Nearly seven years 
after Congress acted, NHTSA has not been able to complete this 
rule. The Committee directs NHTSA to provide a schedule for 
completion of the TFECIP rule within 60 days of enactment.
    Materials research.--The Committee is encouraged by the 
development of, and important findings related to, those 
materials which have played important roles in the improvement 
of fuel efficiency and the enhancement of automobile 
performance. The Committee commends NHTSA for its study of 
light vehicles, and encourages the agency to continue its work 
to advance the state of the art of predictive engineering for 
plastics and polymer-based composites in the automotive field.

                     HIGHWAY TRAFFIC SAFETY GRANTS

                (LIQUIDATION OF CONTRACT AUTHORIZATION)

                      (LIMITATION ON OBLIGATIONS)

                          (HIGHWAY TRUST FUND)

------------------------------------------------------------------------
                                    Liquidation of
                                       contract          Limitation on
                                     authorization        obligation
------------------------------------------------------------------------
Appropriation, fiscal year 2014.        $561,500,000      ($561,500,000)
Budget request, fiscal year 2015         577,000,000       (577,000,000)
Recommended in the bill.........         561,500,000       (561,500,000)
Bill compared with:.............
    Appropriation, fiscal year                 - - -               - - -
 2014...........................
    Budget request, fiscal year          -15,500,000       (-15,500,000)
 2015...........................
------------------------------------------------------------------------

    The highway traffic safety grant programs authorized under 
MAP-21 include: Highway Safety Programs, National Priority 
Safety Programs, and the High Visibility Enforcement Program.
    These grant programs provide resources to states for 
highway safety programs that are data-driven and that meet 
states' most pressing highway safety problems. They are a 
critical asset in reducing highway traffic fatalities and 
injuries.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $561,500,000 in liquidating cash 
from the Highway Trust Fund to pay outstanding obligations of 
the highway safety grant programs at the levels provided in 
this Act and prior appropriations Acts. The Committee also 
recommends limiting the obligations from the Highway Trust Fund 
in fiscal year 2015 for the highway traffic safety grants 
programs to $561,500,000. These levels are the same as fiscal 
year 2014 and $15,500,000 below the budget request. The 
Committee's recommendations are contingent upon 
reauthorization.
    The Committee recommends the following funding allocations 
for grant programs:




Highway safety programs..............................     ($235,000,000)
Occupant protection..................................       (43,520,000)
State traffic safety information system improvements.       (39,440,000)
Impaired driving countermeasures.....................      (145,520,000)
Distracted driver incentive..........................       (23,120,000)
Motorcyclist safety..................................        (4,080,000)
State graduated driver licensing laws................       (13,600,000)
In-vehicle alcohol detection device research.........        (2,720,000)
High visibility enforcement program..................       (29,000,000)
Administrative expenses..............................       (25,500,000)


      ADMINISTRATIVE PROVISIONS--NATIONAL HIGHWAY TRAFFIC SAFETY 
                             ADMINISTRATION

    Section 140. The Committee continues a provision that, 
contingent upon reauthorization, provides limited funding for 
travel and related expenses associated with state management 
reviews and highway safety core competency development 
training.
    Section 141. The Committee continues a provision that 
exempts from the current fiscal year's obligation limitation 
any obligation authority that was made available in previous 
public laws.
    Section 142. The Committee continues a provision that 
prohibits funding for the National Highway Safety Advisory 
Committee.

                    Federal Railroad Administration

    The Federal Railroad Administration (FRA) was established 
by the Department of Transportation Act, on October 15, 1966. 
The FRA plans, develops, and administers programs and 
regulations to promote the safe operation of freight and 
passenger rail transportation in the United States. The U.S. 
railroad system consists of over 550 railroads with over 
187,000 freight employees, 171,000 miles of track, and 1.35 
million freight cars. In addition, the FRA continues to oversee 
grants to the National Railroad Passenger Corporation (Amtrak) 
with the goal of assisting Amtrak with improvements to its 
passenger service and physical infrastructure.

                         SAFETY AND OPERATIONS




Appropriation, fiscal year 2014.......................      $184,500,000
Budget request, fiscal year 2015......................       185,250,000
Recommended in the bill...............................       185,250,000
Bill compared with:
    Appropriation, fiscal year 2014...................          +750,000
    Budget request, fiscal year 2015..................             - - -


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

                        COMMITTEE RECOMMENDATION

    The Committee recommends $185,250,000 for safety and 
operations, which is $750,000 above the fiscal year 2014 
enacted level and equal to the budget request. Of the amount 
provided under this heading, $12,400,000 is available until 
expended.
    Congestion at international rail crossings.--The Committee 
understands that there are a number of international rail 
crossings where the switching of train operators has caused 
unnecessary delays and blocked city crossings causing long 
periods of traffic congestion and delaying freight shipments. 
The Committee directs GAO to conduct an assessment of best 
practices that can be used to reduce rail border crossing times 
and especially the blockage of street crossings on the U.S. 
side. This review should examine the impact of reduced staff 
changing times, pre-clearance for train operators, and possible 
changing in train operator location. The Committee directs GAO 
to provide its findings to the House and Senate Committees on 
Appropriations no later than 180 days after enactment.
    Positive train control.--Section 104 of the Rail Safety 
Improvement Act required the implementation of positive train 
control systems on railroads by December 31, 2015. The 
Committee directs FRA to provide a progress report to the House 
and Senate Committees on Appropriations within 180 days of 
enactment on the status of railroad compliance with positive 
train control requirements included in section 20157 of title 
49, United States Code.

                   RAILROAD RESEARCH AND DEVELOPMENT




Appropriation, fiscal year 2014.......................       $35,250,000
Budget request, fiscal year 2015......................        35,100,000
Recommended in the bill...............................        35,250,000
Bill compared with:
    Appropriation, fiscal year 2014...................             - - -
    Budget request, fiscal year 2015..................          +150,000


    The railroad research and development program provides 
science and technology support for FRA's policy and regulatory 
efforts. The program's objectives are to reduce the frequency 
and severity of railroad accidents through scientific 
advancement, and to support technological innovations in 
conventional and high speed railroads.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $35,250,000 
for railroad research and development, which is $150,000 above 
the budget request and the same as the fiscal year 2014 enacted 
level. The Committee's recommendation includes the following 
allocation for FRA's Railroad Research and Development account:




Railroad System Issues....................................    $3,871,000
Human Factors.............................................     3,692,000
Track Program.............................................    11,279,000
Rolling Stock Program.....................................     8,322,000
Train Control and Communication...........................     8,086,000


    In addition, the Committee provides an increase to Human 
Factors and allows funds to be used to improve safety practices 
and safety training for Class II and Class III freight 
railroads. The Committee understands that FRA will expend 
$500,000 for this effort in fiscal year 2014.
    Transportation of energy products.--The Committee 
underscores the importance of utilizing a multi-modal approach 
to the safety oversight of the transportation of energy 
products. The Committee expects FRA to work collaboratively 
with PHMSA to ensure that oversight is comprehensive but not 
duplicative. The Committee directs FRA to adhere to appropriate 
direction detailed this Committee report within the Pipeline 
and Hazardous Materials Safety Administration account.

       RAILROAD REHABILITATION AND IMPROVEMENT FINANCING PROGRAM

    The Railroad Rehabilitation and Improvement Financing 
(RRIF) program was established by Public Law 109-178 to provide 
direct loans and loan guarantees to state and local 
governments, government-sponsored entities, and railroads. 
Credit assistance under the program may be used for 
rehabilitating or developing rail equipment and facilities. No 
federal appropriation is required to implement the program, 
because a non-federal partner may contribute the subsidy amount 
required by the Credit Reform Act of 1990 in the form of a 
credit risk premium.
    The Committee maintains bill language specifying that no 
new direct loans or loan guarantee commitments may be made 
using federal funds for the payment of any credit premium 
amount during fiscal year 2015. Further, to ensure regional 
diversity, the Committee directs that no state shall receive 
more than $5,600,000,000 in direct loans or loan guarantee 
commitments made during fiscal year 2015. This is 20 percent of 
the $28,000,000,000 available in the program, excluding the 
$7,000,000,000 set aside for short line railroad projects.

                    RAIL SERVICE IMPROVEMENT PROGRAM




Appropriation, fiscal year 2014.......................             - - -
Budget request, fiscal year 2015......................  \1\$2,325,000,00
                                                                       0
Recommended in the bill...............................             - - -
Bill compared with:
    Appropriation, fiscal year 2014...................             - - -
    Budget request, fiscal year 2015..................    -2,325,000,000

\1\The Administration's budget requested $2,325,000,000 in mandatory
  spending from the Highway Trust Fund for a new rail service
  improvement program.

    The FRA budget documents include a new rail service 
improvement program. The program is a new, unauthorized 
program.

                        COMMITTEE RECOMMENDATION

    The Committee recommends no funding for the rail service 
improvement program in fiscal year 2015. The recommendation is 
the same as the fiscal year 2014 enacted level, and 
$2,325,000,000 below the budget request.

                 CURRENT PASSENGER RAIL SERVICE PROGRAM




Appropriation, fiscal year 2014.....................              $- - -
Budget request, fiscal year 2015....................    \1\2,450,000,000
Recommended in the bill.............................               - - -
Bill compared with:
    Appropriation, fiscal year 2014.................               - - -
    Budget request, fiscal year 2015................      -2,450,000,000

\1\The Administration requested $2,450,000,000 in mandatory spending
  from the Highway Trust Fund for a new rail service improvement
  program, which includes both capital and operating grants.

    In fiscal year 2015, the FRA budget documents include a new 
Current Passenger Rail Service Program that replaces the 
National Passenger Railroad program.

                        COMMITTEE RECOMMENDATION

    The Committee recommends no funding for the current 
passenger rail service program in fiscal year 2015, instead, 
the Committee provides funds for this purpose under the heading 
Grants to the National Passenger Railroad Program. The 
recommendation is the same as the fiscal year 2014 enacted 
level, and $2,450,000,000 below the budget request.

     Grants to the National Railroad Passenger Corporation (Amtrak)

    Amtrak operates trains over 20,000 miles of track owned by 
freight railroad carriers, and over about 654 miles of its own 
track, most of which is on the Northeast Corridor (NEC) from 
Washington, D.C., to Boston, Massachusetts. Amtrak operates 
both electrified trains, which can achieve speeds of up to 150 
mph on the highest quality track on the NEC, and diesel 
locomotives, which currently can achieve speeds between 74-110 
miles per hour.
    Congressional budget justification.--The Committee 
appreciates the level of detail in the fiscal year 2015 budget 
justifications and directs Amtrak to continue to submit 
justifications requesting funds by lines of business with a 
similar level of detail in all future budget years.

    Operating Grants to the National Railroad Passenger Corporation





Appropriation, fiscal year 2014.......................   \1\$340,000,000
Budget request, fiscal year 2015......................             - - -
Recommended in the bill...............................    \2\340,000,000
Bill compared with:
    Appropriation, fiscal year 2014...................             - - -
    Budget request, fiscal year 2015..................      +340,000,000

\1\The appropriation allows transfers of up to $40,000,000 from capital
  grants to the extent that Amtrak operating losses exceed $340,000,000.
\2\FRA's budget request for Amtrak assumed a new structure for the
  Corporation. It requested $2,450,000,000 for the Current Passenger
  Rail account, which includes both operating and capital funds for
  Amtrak, by line of business. According to FRA, the amount it requested
  for operating grants equates to $383,000,000.
\3\The appropriation allows transfers of up to $20,000,000 from capital
  grants to the extent that Amtrak operating losses exceed $340,000,000.

    Amtrak runs a deficit each year and requires a federal 
subsidy to cover both operating losses and capital investments. 
Prior to this year, however, it was impossible to discern from 
Amtrak's or FRA's budget requests or other publically available 
data, federal funding required to operate Amtrak's network by 
line of business. In fact, FRA's requests for operating funds 
did not break-out requirements by business line and 
consistently exceeded operating losses by one-third. This year, 
Amtrak presented its budget in a clearer structure, by four 
lines of business. Amtrak's budget request details revenues and 
expenses by each line of business. It is now transparent to 
Congress and American taxpayers where Amtrak is using its 
federal appropriations.
    The Committee looks forward to receiving additional break-
outs by each Amtrak route and by type of revenue and expenses 
by route (such as food and beverage) in the near future. 
Further, the Committee encourages the authorizing committee to 
adopt the lines of business structure when it reauthorizes 
Amtrak.
    Although the Northeast Corridor is profitable, the 
federally mandated services such as long-distance and state-
supported routes sustain large losses that cannot be overcome 
by Amtrak's profitable services. The table below reflects the 
profitability, or lack thereof, of Amtrak's lines of 
businesses. In order to sustain operations on all lines, Amtrak 
subsidizes its long distance service with profits from its 
Northeast Corridor operations and also relies on federal 
subsidies.

                                                  AMTRAK'S OPERATING PROFIT/(LOSS)  BY LINE OF BUSINESS
                                                                     FY 2011-FY 2015
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                           FY 2013          FY 2014          FY 2015
                          Line of Business                               FY 2011          FY 2012       (Forecast)\1\      (Forecast)       (Forecast)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Northeast Corridor.................................................     $255,000,000     $283,000,000     $289,600,000     $286,300,000     $290,000,000
State Corridors....................................................    (148,000,000)    (156,000,000)    (161,400,000)     (88,600,000)     (83,000,000)
Long Distance Routes...............................................    (554,000,000)    (558,000,000)    (587,000,000)    (614,700,000)    (618,000,000)
National Assets....................................................        1,000,000       69,000,000      100,400,000       77,000,000       79,000,000
Total Profit/Loss..................................................    (446,000,000)    (362,000,000)    (358,400,000)    (340,000,000)    (333,000,000)
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\The fiscal year 2013 figures include Hurricane Sandy impacts, which resulted in operating losses of $50,000,000.
Source: Amtrak.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $340,000,000 for operating grants 
for Amtrak, which is equal to the fiscal year 2014 enacted 
level. The Committee includes a provision allowing Amtrak to 
transfer up to $20,000,000 in capital funds to the extent that 
the corporation's operating losses exceed $340,000,000.
    Food, beverage and first class services.--Amtrak 
consistently incurs a loss on its food and beverage and first 
class service. As the table below demonstrates, Amtrak's net 
loss totaled $387,700,000 from fiscal years 2010 through fiscal 
year 2014 (forecast). In fiscal year 2014, Amtrak estimates 
that expenses will exceed revenue by $75,800,000, reflecting a 
cost recovery of only 65 percent. The losses do not reflect 
amounts that Amtrak transfers from sleeper-class and Acela 
first-class tickets to the food and beverage account, reducing 
the appearance of food and beverage losses. The Amtrak OIG 
reported that these transfers increased by $22,100,000 from 
fiscal year 2006 to fiscal year 2012.

          AMTRAK'S FOOD AND BEVERAGE LOSSES AND COST RECOVERY

                                                                     FY 2009-FY 2014
                                                                [In millions of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                            FY 2010- FY
                                                              FY 2010         FY 2011         FY 2012         FY 2013         FY 2014          2014
--------------------------------------------------------------------------------------------------------------------------------------------------------
Revenue.................................................    $109,300,000    $121,500,000    $132,900,000    $134,400,000     138,600,000    $636,700,000
Expenses................................................     191,700,000     206,000,000     204,900,000     207,400,000     214,400,000   1,024,400,000
Total Loss..............................................    (82,400,000)    (84,600,000)    (72,000,000)    (73,000,000)    (75,800,000)   (387,700,000)
Cost
  Recovery..............................................             57%             59%             65%             65%             65%             61%
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Food and beverage losses reflect an offset from sleeper and Acela first-class service transfers, reducing the appearance of losses.

    Although total revenue has increased, labor costs dwarf 
these increases. Food and beverage labor costs have increased 
mainly due to wage increases. Under Amtrak's last negotiated 
labor agreement in 2010, the average fully loaded compensation 
for the nearly 1,200 food and beverage employees was $106,600 
in fiscal year 2012. These employees were guaranteed a 3 
percent wage increase in two compounded installments per year 
until 2014. The current labor contract expires this summer, but 
will automatically extend until a new contract is signed.
    As the chart below shows, long distance routes accounted 
for a total of 90 percent of food and beverage service losses. 
The main cost driver is on board staffing (labor costs), 
representing 55 percent of the total direct costs.

                 FOOD AND BEVERAGE LOSSES BY ROUTE TYPE

                                               FY 2014 (Forecast)
----------------------------------------------------------------------------------------------------------------
                                      Revenue                        Expenses
                                 ----------------------------------------------------------------
             Routes                  Food and                                      Total direct     Profit/loss
                                     beverage     On-board labor    Commissary         costs
----------------------------------------------------------------------------------------------------------------
Northeast Corridor..............     $38,000,000     $25,100,000     $20,900,000     $46,000,000     (7,900,000)
State-supported.................      37,700,000      18,900,000      18,200,000      37,100,000         600,000
Long-Distance...................      62,900,000      74,000,000      57,300,000     131,300,000    (68,400,000)
Total...........................     138,600,000     118,000,000      96,400,000     214,400,000    (75,800,000)
----------------------------------------------------------------------------------------------------------------

    Recently, Amtrak implemented some efficiency improvements. 
The Corporation signed a new warehouse management contract with 
greater volume discounts and cost control incentives, reduced 
some on-board report times, and established a loss prevention 
unit. The Amtrak OIG, in its report dated October 31, 2013, 
stated that these actions resulted in limited efficiency gains 
because they were applied to the existing food and beverage 
business model. Further, efficiencies were balanced with 
increased labor costs.
    The Committee is concerned that the taxpayer continues to 
foot the bill for Amtrak's long-standing unprofitable food, 
beverage and first class service. On October 3, 2013, Amtrak 
announced that it would include a food and beverage performance 
metric in its 5 year financial plan to eliminate losses in five 
years.
    The Committee directs Amtrak to take actions identified in 
the October 31, 2013 OIG report, including the following:
    Staffing Efficiencies.--Base the food and beverage staffing 
guidance on actual dining car usage rates, rather than the 
number of and types of cars; require route managers to adjust 
staffing with ridership, demand, and seasonal changes; reduce 
staff reporting times; eliminate the practice of double-
counting food stocks by directing the food supply contractor to 
load trains directly.
    Financial performance.--Develop food and beverage cost and 
revenue data by train, car and departure date; ensure that the 
onboard point of sale system can generate relevant business 
management data.
    Service.--Charge Amtrak employees traveling free for the 
cost of food and beverage services they consume; use available 
revenue information to monitor onboard staff performance and 
identify opportunities to increase revenues.
    Inventory Management.--Base the level of food and beverage 
service on ridership and customer demand patterns for 
individual routes; reduce spoilage rates and reduce 
backordering by clarifying backordering policy.
    Amtrak overtime.--The Committee commends Amtrak for making 
progress in reducing overtime expenses. Overtime expenses 
decreased from $209,091,000 in calendar year 2010 to 
$185,559,000 in calendar year 2013, a reduction of 11 percent. 
In addition, Amtrak contained the number of employees that 
exceed $35,000 in overtime payments to 1,022 in calendar year 
2013. These employees were paid a total of $49,082,000, 
representing 26 percent of the total overtime paid to all 
employees.

                            AMTRAK OVERTIME

                                                 CY 2010-CY 2013
----------------------------------------------------------------------------------------------------------------
                                           CY 2010            CY 2011            CY 2012            CY 2013
----------------------------------------------------------------------------------------------------------------
Total Overtime Wages, all employees.       $209,091,000       $200,781,000       $162,461,000       $185,559,000
Number of Employees with Overtime                 1,288              1,123                703              1,022
 Exceeding $35,000 per year.........
Total Overtime Wages, employees           Not Available         54,818,000         32,681,000         49,082,000
 exceeding $35,000 per year.........
----------------------------------------------------------------------------------------------------------------

    To ensure the Corporation continues to make progress 
managing its personnel and focusing on overtime reduction, the 
Committee includes bill language consistent with prior years, 
directing Amtrak's president to approve all overtime that 
exceeds $35,000 for employees that exceed $35,000 per year, and 
provide that information to the Committee. In addition, it 
requires Amtrak to provide documentation associated with the 
overtime and requires Amtrak's president to certify 
documentation is accurate and correct.
    Reduced price fares.--The bill continues a provision that 
prohibits funding on routes where Amtrak is offering 50 percent 
or more off the normal, peak fare.

  CAPITAL AND DEBT SERVICE GRANTS TO THE NATIONAL RAILROAD PASSENGER 
                              CORPORATION




Appropriation, fiscal year 2014.......................    $1,050,000,000
Budget request, fiscal year 2015\1\...................             - - -
Recommended in the bill...............................       850,000,000
Bill compared with:
    Appropriation, fiscal year 2014...................      -200,000,000
    Budget request, fiscal year 2015..................             - - -

\1\FRA's budget request for Amtrak assumed a new structure for the
  Corporation. It requested $2,450,000,000 for the Current Passenger
  Rail account, which includes both operating and capital funds for
  Amtrak. According to FRA, the amount it requested for capital equates
  to $1,288,000,000. Amtrak requested Y.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $850,000,000 for capital grants, 
debt service, and compliance with the Americans with 
Disabilities Act. The Committee's recommendation is 
$200,000,000 below the level enacted in fiscal year 2014.
    Northeast Corridor Infrastructure and Operations Advisory 
Commission.--The Committee recommends up to $5,000,000, equal 
to the amount provided in fiscal year 2014. The Committee 
directs the Northeast Corridor Infrastructure and Operations 
Advisory Commission to submit its fiscal year 2016 budget 
request to the Appropriations Committees in similar format and 
substance as those submitted by other executive agencies of the 
federal government.
    The Committee includes bill language allowing the Secretary 
to retain up to one-half of one percent for FRA to implement 
Amtrak operating and capital grants as authorized by section 
103 of the Passenger Rail Investment and Improvement Act 
(PRIIA). FRA requires such funds to oversee all federal grants 
to Amtrak, to ensure prudent use of federal funds and to foster 
transparency.
    Capital planning.--Amtrak OIG's report dated September 27, 
2013 identified significant weaknesses in Amtrak's capital 
planning processes. The OIG found that Amtrak has not 
consistently used sound business practices in developing 
proposals for capital projects, nor did it identify how a 
project would relate to the financial and non-financial goals 
of the organization. The Committee understands that Amtrak will 
issue a corporate-wide policy providing guidance on developing 
sound project proposals. This is significant since there is a 
correlation between the use of sound business practices in 
developing proposals and the outcome of the project. The 
Committee requires Amtrak to conduct a business case analysis 
on rolling stock, track and signaling equipment, and major 
capital acquisitions. Further, the Committee directs Amtrak to 
take steps to increase transparency regarding capital projects 
in its budget submissions including providing a list of major 
projects it proposes to fund in priority order.
    Business case analysis on CAF cars.--On August 3, 2010, 
Amtrak executed a contract with CAF USA for 130 baggage, 
sleeping, and dining cars for $298,132,648 that will be 
deployed on Amtrak's long distance routes. Despite the fact 
that Amtrak will require federal appropriations to pay for this 
procurement, amounts for these cars were not visible in 
Amtrak's prior budget request documents. Amtrak representatives 
admitted that the Corporation did not perform a business case 
or cost benefit analysis before deciding to execute this 
contract, nor did it determine if funds would be better used 
elsewhere. This purchase, which now totals $349,800,000, was 
justified based solely on the age of the fleet.
    The Committee directed Amtrak to submit a business case 
analysis that explored the impact of continuing, terminating, 
or reducing the scope of the contract. Amtrak's analysis 
concluded that proceeding with the CAF USA order will generate 
a positive contribution of approximately $2,500,000 annually, 
depending on order quantities.
    Business case analysis on locomotive purchase.--A September 
27, 2013 Amtrak OIG report noted that Amtrak's mechanical 
department proposed a procurement of 20 new electric 
locomotives with 2 option orders for 20 additional units each 
to replace some existing locomotives. Amtrak approved the 
purchase of 70 locomotives without assessing whether 70 
locomotives were needed. Without an adequate needs assessment, 
Amtrak did not have assurance that purchasing the additional 
locomotives was a better alternative to achieving its goal than 
using funds for other capital investments. The Committee 
directs Amtrak to submit to the House and Senate Committees on 
Appropriations within 60 days of enactment of this Act the 
following: (1) a determination of how many locomotives it 
needs, and (2) if it needs fewer than 70 locomotives, perform a 
business case analysis on continuing the contract or reducing 
the contract's scope.

       ADMINISTRATIVE PROVISIONS--FEDERAL RAILROAD ADMINISTRATION

    Section 150. The Committee retains a provision which allows 
FRA to receive and use cash or spare parts to repair and 
replace damaged automated track inspection cars and equipment 
in connection with the automated track inspection program.
    Section 151. The Committee continues a provision which 
authorizes the Secretary to allow issuers of any preferred 
stock to redeem or repurchase such stock sold to the 
Department.
    Section 152. The Committee continues and amends a provision 
that limits overtime to $35,000 per employee, allows Amtrak's 
president to waive this restriction for specific employees for 
safety or operational efficiency reasons, requires quarterly 
reporting to the House and Senate Committees on Appropriations 
on the number of employees receiving waivers granted and 
amounts paid to those employees, and provide documentation, 
certified by the president, of the specific activities of each 
employee during the paid overtime that exceeded $35,000 and how 
the work resulted in increased safety or efficiency. It also 
requires Amtrak to submit a report by March 1, 2015 summarizing 
for calendar year 2014, and each of the two prior years: (1) 
all overtime payments incurred by the corporation, (2) the 
number of employees that received waivers by department, and 
(3) the amounts paid to the employees that received waivers by 
department.

                     Federal Transit Administration

    The Federal Transit Administration (FTA) was established as 
a component of the Department of Transportation on July 1, 
1968, when most of the functions and programs under the Federal 
Transit Act (78 Stat. 302; 49 U.S.C. 1601 et seq.) were 
transferred from the Department of Housing and Urban 
Development. Known as the Urban Mass Transportation 
Administration until enactment of the Intermodal Surface 
Transportation Efficiency Act of 1991, the Federal Transit 
Administration administers federal financial assistance 
programs for planning, developing, and improving comprehensive 
mass transportation systems in both urban and non-urban areas.
    The most recent authorization for the programs under the 
Federal Transit Administration is contained in the Moving Ahead 
for Progress in the 21st Century Act (MAP-21) (P.L. 112-141). 
Annual Appropriations Acts included annual limitations on 
obligations for the transit formula grants programs, and direct 
appropriations of budget authority from the General Fund of the 
Treasury for the FTA's administrative expenses, research 
programs, and capital investment grants. The transit programs 
authorized under MAP-21 expire on September 30, 2014.

                        ADMINISTRATIVE EXPENSES




Appropriation, fiscal year 2014.......................      $105,933,000
Budget request, fiscal year 2015......................       114,400,000
Recommended in the bill...............................       103,000,000
Bill compared with:
    Appropriation, fiscal year 2014...................        -2,933,000
    Budget request, fiscal year 2015..................       -11,400,000


                        COMMITTEE RECOMMENDATION

    The Committee recommends a total of $103,000,000 for FTA's 
administrative expenses, a decrease of $11,400,000 below the 
budget request and $2,933,000 below the 2014 enacted level. Of 
the funds provided, up to $3,000,000 is for authorized safety 
activities and not less than $1,000,000 is for asset management 
activities. The Committee's recommendation provides these funds 
from the General Fund, as usual, and rejects the proposal to 
fund basic salaries and expenses from a trust fund.
    Operating plans.--The Committee reiterates its direction 
from previous years which requires the FTA's operating plan to 
include a specific allocation of administrative expenses 
resources. The operating plan should include a delineation of 
full time equivalent employees, for the following offices: 
Office of the Administrator; Office of Administration; Office 
of Chief Counsel; Office of Communications and Congressional 
Affairs; Office of Program Management; Office of Budget and 
Policy; Office of Research, Demonstration and Innovation; 
Office of Civil Rights; Office of Planning and Environment; and 
Regional Offices plus the new safety office. Further, the 
operating plan must include any new programs or changes to the 
budget request, including new grant programs. In addition, the 
Committee directs the FTA to notify the House and Senate 
Committees on Appropriations at least thirty days in advance of 
any change that results in an increase or decrease of more than 
five percent from the initial operating plan submitted to the 
Committees for fiscal year 2015.
    Budget justifications and annual new starts report.--The 
Committee also continues the direction to FTA to submit future 
budget justifications in a format consistent with the 
instruction provided in House Report 109-153. FTA is free to 
submit a budget in alternate formats, but must also include the 
information required by the Committee. The Committee has again 
included bill language requiring FTA to submit the annual New 
Starts report with the initial submission of the budget request 
due in February, 2015.
    Transit security.--The Committee continues bill language 
prohibiting FTA from creating a permanent office of transit 
security. The Committee's position remains that the Department 
of Homeland Security is the lead agency on transportation 
security and has overall responsibility among all modes of 
transportation, including rail and transit lines.
    Full funding grant agreements (FFGAs).--TEA-21 required 
that the FTA notify the House and Senate Committees on 
Appropriations as well as the House Committee on Transportation 
and Infrastructure and the Senate Committee on Banking sixty 
days before executing a full funding grant agreement. In its 
notification to the House and Senate Committees on 
Appropriations, the Committee directs the FTA to include the 
following: (1) a copy of the proposed full funding grant 
agreement; (2) the total and annual federal appropriations 
required for that project; (3) yearly and total federal 
appropriations that can be reasonably planned or anticipated 
for future FFGAs for each fiscal year through 2017; (4) a 
detailed analysis of annual commitments for current and 
anticipated FFGAs against the program authorization; (5) an 
evaluation of whether the alternatives analysis made by the 
applicant fully assessed all viable alternatives; (6) a 
financial analysis of the project's cost and sponsor's ability 
to finance the project, which shall be conducted by an 
independent examiner and which shall include an assessment of 
the capital cost estimate and the finance plan; (7) the source 
and security of all public- and private-sector financial 
instruments; (8) the project's operating plan, which enumerates 
the project's future revenue and ridership forecasts; and (9) a 
listing of all planned contingencies and possible risks 
associated with the project.
    The Committee continues the direction to FTA to inform the 
House and Senate Committees on Appropriations in writing thirty 
days before approving schedule, scope, or budget changes to any 
full funding grant agreement. Correspondence relating to 
changes shall include any budget revisions or program changes 
that materially alter the project as originally stipulated in 
the full funding grant agreement, including any proposed change 
in rail car procurements.
    In addition, the Committee directs FTA to continue 
reporting monthly to the House and Senate Committees on 
Appropriations on the status of each project with a full 
funding grant agreement or that is within two years of a full 
funding grant agreement. Considering the scale of the proposed 
projects, the changes to the program in MAP-21, and the massive 
growth in this account, the Committee finds monthly oversight 
reports particularly useful.

                         TRANSIT FORMULA GRANTS

                  (LIQUIDATION OF CONTRACT AUTHORITY)

                      (LIMITATION ON OBLIGATIONS)

                          (HIGHWAY TRUST FUND)

----------------------------------------------------------------------------------------------------------------
                                                                Liquidation of contract       Limitation on
                                                                      authorization            obligations
----------------------------------------------------------------------------------------------------------------
Appropriation, fiscal year 2014...............................           $9,500,000,000           $8,595,000,000
Budget request, fiscal year 2015..............................           13,800,000,000           13,800,000,000
Recommended in the bill.......................................            9,500,000,000            8,595,000,000
Bill compared with:
    Appropriation, fiscal year 2014...........................                    - - -                    - - -
    Budget request, fiscal year 2015..........................           -4,300,000,000           -5,205,000,000
----------------------------------------------------------------------------------------------------------------

    MAP-21 provided contract authority for the transit formula 
grant programs from the mass transit account of the highway 
trust fund. These programs include: urbanized area formula, 
state safety oversight program, state of good repair grants, 
formula grants for rural areas, growing states and high density 
states, mobility for seniors and persons with disabilities, bus 
and bus facility formula grants, the bus testing facility, 
planning programs, transit oriented development, National 
Transit Institute, and the National Transit Database. The 
Appropriations Act sets an annual obligation limitation for 
such authority. This account is the only FTA account funded 
from the Highway Trust Fund.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an obligation limitation of 
$8,595,000,000 for the formula programs and activities which is 
the same as the fiscal year 2014 enacted level. The Committee's 
recommendation also includes $9,500,000,000 in liquidating 
funds. Funds are consistent with the final year of MAP-21 and 
contingent on authorization.
    Transit formula allocations.--The Committee continues to 
have significant concerns over the number of localities that 
are negatively impacted by changes to the transit formula 
grants program funds distribution methodology as contained in 
MAP-21. Under the current formula, the funds for bus 
replacement, purchase, and rehabilitation are severely reduced 
from previous years. Some transit experts estimate the program-
wide loss could be as much as $1,000,000,000 when compared to 
prior surface authorization Acts. This reduction is 
disproportionately impacting transit agencies in medium and 
smaller-sized cities, and in those regions and states with 
older bus fleets. The Committee strongly urges the Department 
to work with the authorizing committees of jurisdiction when 
crafting the next surface bill to either reinstate the bus and 
bus facilities program, or create a program similar to the rail 
state of good repair program to help these impacted communities 
with their bus replacement needs.
    The Committee is still awaiting the report requested in H. 
Report 113-136 regarding the transit formula allocation to 
medium and small cities. The Committee directs FTA to submit 
the report by October 1, 2014.

             PUBLIC TRANSPORTATION EMERGENCY RELIEF PROGRAM




Appropriation, fiscal year 2014.......................             - - -
Budget request, fiscal year 2015......................       $25,000,000
Recommended in the bill...............................             - - -
Bill compared with:
    Appropriation, fiscal year 2014...................             - - -
    Budget request, fiscal year 2015..................       -25,000,000


    MAP-21 authorized a new program to provide funds to transit 
agencies after disaster events to restore service. Both capital 
and operating costs are eligible.

                        COMMITTEE RECOMMENDATION

    The Committee recommendation does not include funds for 
this new account. The Committee will make funding 
determinations for emergency funds on a case-by-case basis.

                            TRANSIT RESEARCH




Appropriation, fiscal year 2014.......................       $43,000,000
Budget request, fiscal year 2015......................             - - -
Recommended in the bill...............................        15,000,000
Bill compared with:
    Appropriation, fiscal year 2014...................       -28,000,000
    Budget request, fiscal year 2015..................       +15,000,000


    MAP-21 authorizes FTA to provide funds to the National 
Academy of Sciences to conduct investigative research on 
subjects related to public transportation.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $15,000,000 for transit research, 
$28,000,000 below last year. The 2015 budget proposed 
$60,000,000 in one research account instead of the two account 
structure provided last year and in this bill.
    The Committee requires FTA to report by May 15, 2015, on 
all FTA-sponsored research projects from fiscal year 2014 and 
2015 at the National Academy of Sciences.

                   TECHNICAL ASSISTANCE AND TRAINING




Appropriation, fiscal year 2014.......................        $5,000,000
Budget request, fiscal year 2015......................             - - -
Recommended in the bill...............................         3,000,000
Bill compared with:
    Appropriation, fiscal year 2014...................        -2,000,000
    Budget request, fiscal year 2015..................        +3,000,000


    MAP-21 authorizes FTA to provide technical assistance to 
the public transportation industry and to develop standards for 
transit service provision, with an emphasis on improving access 
for all individuals and transportation equity.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $3,000,000 for technical 
assistance and training, $2,000,000 below the 2014 level. The 
2015 budget proposed $60,000,000 in one research account 
instead of the two account structure provided last year and in 
this year's bill.
    The Committee recognizes the continuing need for a strong 
technical assistance, education, and research program on the 
mobility needs of people with disabilities and older adults. 
The Committee strongly supports ongoing partnerships with 
organizations that have experience and a successful track 
record in providing technical assistance for these special 
needs populations.
    Public transportation options for seniors.--The Committee 
encourages FTA to continue exploring improvements for the 
transportation options for seniors, including public 
transportation options where available, but also including 
software programs that leverage unused private transportation 
capacity to promote transportation for seniors in small and 
rural communities. Through increased attention to these 
multiple options for private senior transport, the FTA can 
improve highway safety and the quality of life for seniors 
nationwide.

                       CAPITAL INVESTMENT GRANTS

                    (INCLUDING RESCISSION OF FUNDS)




Appropriation, fiscal year 2014.......................    $1,942,938,000
Budget request, fiscal year 2015......................     2,500,000,000
Recommended in the bill...............................     1,691,000,000
Bill compared with:
    Appropriation, fiscal year 2014...................      -251,938,000
    Budget request, fiscal year 2015..................      -809,000,000


    Grants for capital investment to rail or other fixed 
guideway transit systems are awarded to public bodies and 
agencies (transit authorities and other state and local public 
bodies and agencies thereof) including states, municipalities, 
other political subdivisions of states; public agencies and 
instrumentalities of one or more states; and certain public 
corporations, boards and commissions under state law.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $1,691,000,000 for capital 
investment grants which is $251,938,000 below the fiscal year 
2014 enacted level and $809,000,000 below the budget request.
    The fiscal year 2015 recommendation provides $1,510,000,000 
for all current and on-going full funding grant agreements 
(FFGA) as requested in the budget, plus another $25,000,000 for 
a project (or projects) that will be signed under a FFGA by 
September 30, 2014. No funds are provided for new FFGAs that 
are not under a signed grant agreement at the start of fiscal 
year 2015. In addition, $173,000,000 is provided for five new 
small start projects proposed in the budget.
    Further, the Committee recommends $30,000,000 for the core 
capacity program authorized in MAP-21, provides a total 
$18,000,000 (about 1 percent) for oversight activities related 
to the investments of this account, and rescinds $65,000,000 in 
unobligated prior year funds.
    The Committee continues the direction that FTA only further 
projects to a full funding grant agreement if the project 
requires a less than 50 percent new starts share and rates 
medium high or high in the categories related to finance and 
reducing congestion.

             WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY




Appropriation, fiscal year 2014.......................      $150,000,000
Budget request, fiscal year 2015......................       150,000,000
Recommended in the bill...............................       150,000,000
Bill compared with:
    Appropriation, fiscal year 2014...................             - - -
    Budget request, fiscal year 2015..................             - - -


    Section 601 of Division B of the Passenger Rail Investment 
and Improvement Act of 2008 (Public Law 110-432) authorized 
$1.5 billion over a ten-year period for preventive maintenance 
and capital grants for the Washington Metropolitan Area 
Transportation Authority (WMATA). The law requires that the 
federal funds be matched dollar-for-dollar by Virginia, 
Maryland and the District of Columbia in equal proportions. The 
compact required under the law has been established and 
Virginia, Maryland and the District of Columbia have all 
committed to providing $50 million each in local matching 
funds.

                        COMMITTEE RECOMMENDATION

    The Committee recommendation includes $150,000,000 for 
preventive maintenance and capital grants for WMATA, which 
equal to the budget request and last year's enacted level. The 
Committee directs WMATA to continue addressing the safety 
issues within the agency, specifically, those identified by the 
National Transportation Safety Board (NTSB). Further, the 
Committee directs WMATA to continue with its capital 
improvement plans and not defer capital and safety investments 
in order to offset operating costs.
    WMATA oversight.--The Federal Transit Administration 
recently released a draft audit report on the financial 
management oversight (FMO) of WMATA. The draft report 
identified some material weaknesses and significant 
deficiencies in a number of WMATA's financial and internal 
management controls. WMATA responded to the audit report with a 
detailed series of corrective actions to address the findings 
of the FMO review. Once the report has been finalized by the 
Federal Transit Administration, the Committee directs GAO to 
conduct a review of WMATA's progress implementing its 
corrective action plan and to identify additional corrective 
actions that WMATA may take to address the FMO findings. In 
addition, the Committee directs GAO to review WMATA's progress 
to address safety weaknesses identified by the National 
Transportation Safety Board. The Committee directs GAO to 
submit a report on its findings to the House and Senate 
Committees on Appropriations no later than 180 days after 
enactment.

       ADMINISTRATIVE PROVISIONS--FEDERAL TRANSIT ADMINISTRATION

    Section 160. The Committee continues the provision that 
exempts previously made transit obligations from limitations on 
obligations.
    Section 161. The Committee continues the provision that 
allows funds appropriated for capital investment grants and bus 
and bus facilities not obligated by September 30, 2015, plus 
other recoveries to be available for other projects under 49 
U.S.C. 5309.
    Section 162. The Committee continues the provision that 
allows for the transfer of prior year appropriations from older 
accounts to be merged into new accounts with similar, current 
activities.
    Section 163. The Committee continues the provision that 
permits the Secretary to consider significant private 
contributions when calculating the non-federal share of new 
starts projects.
    Section 164. The Committee continues the provision that 
prohibits a full funding grant agreement for a project with a 
new starts share greater than 50 percent.
    Section 165. The Committee includes a provision regarding a 
certain fixed guideway project in Houston, Texas.
    Section 166. The Committee includes a provision which 
allows unobligated and unexpended section 5339 funds from 
fiscal years 2010 through 2012 to be used for new starts 
activities.

             Saint Lawrence Seaway Development Corporation


                       OPERATIONS AND MAINTENANCE

                    (HARBOR MAINTENANCE TRUST FUND)




Appropriation, fiscal year 2014.......................       $31,000,000
Budget request, fiscal year 2015......................        31,500,000
Recommended in the bill...............................        32,500,000
Bill compared with:
    Appropriation, fiscal year 2014...................        +1,500,000
    Budget request, fiscal year 2015..................        +1,000,000


    The Great Lakes Saint Lawrence Seaway System, located 
between Montreal and Lake Erie, is a binational, 15-lock system 
jointly operated by the U.S. Saint Lawrence Seaway Development 
Corporation (SLSDC) and its Canadian counterpart, the Canadian 
St. Lawrence Seaway Management Corporation. The SLSDC was 
established by the St. Lawrence Seaway Act of 1954 and is a 
wholly owned government corporation and an operating 
administration of the U.S. Department of Transportation (DOT). 
The SLSDC is charged with operating and maintaining the U.S. 
portion of the St. Lawrence Seaway. This responsibility 
includes the two U.S. locks in Massena, New York, vessel 
traffic control in portions of the St. Lawrence River and Lake 
Ontario, and trade development functions to enhance the 
utilization of the St. Lawrence Seaway.
    The Water Resources Development Act of 1986 authorized the 
Harbor Maintenance Trust Fund as a source of appropriations for 
SLSDC operations and maintenance. Additionally, the SLSDC 
generates non-federal revenues which can then be used for 
operations and maintenance.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a total appropriation of 
$32,500,000 to fund the operations, maintenance, and capital 
asset renewal needs of the SLSDC. This funding level is 
$1,500,000 higher than the fiscal year 2014 appropriation and 
$1,000,000 above the President's budget request. The Committee 
continues the requirement that the SLSDC provides semiannual 
reports consistent with the requirements stated in the 
Explanatory Statement of the Department of Transportation 
Appropriations Act of 2009.
    Economic and trade development.--The Committee includes an 
additional $1,000,000 to support the economic and trade 
development mission of the SLSDC.

                        Maritime Administration

    The Maritime Administration (MARAD) is responsible for 
programs that strengthen the U.S. maritime industry in support 
of the Nation's security and economic needs, as authorized by 
the Merchant Marine Act of 1936. MARAD's mission is to promote 
the development and maintenance of an adequate, well-balanced 
United States merchant marine, sufficient to carry the Nation's 
domestic waterborne commerce and a substantial portion of its 
waterborne foreign commerce, and capable of serving as a naval 
and military auxiliary in time of war or national emergency. 
MARAD, working with the Department of Defense (DoD), helps 
provide a seamless, time-phased transition from peacetime to 
wartime operations, while balancing the defense and commercial 
elements of the maritime transportation system. MARAD also 
manages the maritime security program, the voluntary intermodal 
sealift agreement program and the ready reserve force, which 
assures DoD access to commercial and strategic sealift and 
associated intermodal capability. Further, MARAD's education 
and training programs through the U.S. Merchant Marine Academy 
and six state maritime academies help create skilled U.S. 
merchant marine officers.

                       MARITIME SECURITY PROGRAM




Appropriation, fiscal year 2014.......................      $186,000,000
Budget request, fiscal year 2015......................       211,000,000
Recommended in the bill...............................       166,000,000
Bill compared with:
    Appropriation, fiscal year 2014...................       -20,000,000
    Budget request, fiscal year 2015..................       -45,000,000


    The purpose of the Maritime Security Program (MSP) is to 
maintain and preserve a U.S. flag merchant fleet to serve the 
national security needs of the United States. The MSP provides 
direct payments to U.S. flagship 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.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $166,000,000 for this account, 
$20,000,000 below the fiscal year 2014 funding level and 
$45,000,000 below the request. The Committee's recommendation 
is equal to the allocation provided for the Defense 050 
function activities in this bill. Funds are available until 
expended.
    This recommendation provides funding directly to MARAD and 
assumes that MARAD will continue to administer the program with 
support and consultation from the Department of Defense. Should 
MARAD determine a smaller roster of ships is called for in 
2015, the Committee directs the Secretary to give priority to 
ships owned by U.S.-based companies that meet the Department of 
Defense requirements. The budget documents represent the 
program exceeds DOD capacity requirements and program goals.
    The Committee does not provide $25,000,000 requested for 
new payments to shippers as the Congress has not adopted 
changes to the food aid program.

                        OPERATIONS AND TRAINING




Appropriation, fiscal year 2014.......................      $148,003,000
Budget request, fiscal year 2015......................       148,400,000
Recommended in the bill...............................       132,000,000
Bill compared with:
    Appropriation, fiscal year 2014...................       -16,003,000
    Budget request, fiscal year 2015..................       -16,400,000


    The operations and training account provides funding for 
headquarters and field offices to administer and direct MARAD 
operations and programs. The account also provides funding for 
the operation of the U.S. Merchant Marine Academy and financial 
assistance to the six state maritime academies.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $132,000,000 for MARAD operations 
and training expenses, $16,003,000 less than the fiscal year 
2014 funding level and $16,400,000 below the fiscal year 2015 
budget request.
    MARAD operations.--Of the funds provided, $49,000,000 is 
for headquarters and regional office operations, and maritime 
program expenses. The Committee notes improvement in the budget 
documents, and hopefully the improvement will continue. The 
Committee continues the reporting requirement that MARAD submit 
information on the number of vacancies at MARAD headquarters 
and regional offices, and the duties associated with each 
vacancy concurrent with the fiscal year 2016 budget submission.
    United States Merchant Marine Academy.--The U.S. Merchant 
Marine Academy (the Academy or USMMA) provides educational 
programs for men and women to become shipboard officers and 
leaders in the maritime industry. The Committee continues to 
include language requiring all funding for the Academy go 
directly to the Secretary, and that 50 percent of the funding 
will not be available until MARAD submits a plan detailing how 
the funding will be spent. The Committee's funding 
recommendation includes a total of $65,700,000 in fiscal year 
2015 for the USMMA, of which up to $64,200,000 is for Academy 
operations and not less than $1,500,000 is for capital 
improvements. The committee's recommendation does not include 
$13,000,000 requested for Bowditch Hall renovation. The 
Committee recommends this reduction without prejudice.
    The Committee urges MARAD to support the USMMA Board of 
Visitors, including the annual visit required in section 51312 
of title 46, United States Code.
    State maritime academies.--The Committee recommends 
$17,300,000 for the state maritime academies. Of the funds 
provided, $3,600,000 is for direct payments, $2,400,000 is for 
student payments, and $11,300,000 is for schoolship maintenance 
and repair.
    Schoolships.--Looking at the schoolship inventory, it 
appears many, if not most of the training ships at the various 
maritime academies are nearing the end of their useful life. 
Schoolships are vital to a quality maritime education. The 
Committee directs MARAD to report to the House and Senate 
Committees on Appropriations 180 days after enactment of this 
Act on the opportunities and efficiencies of a common 
schoolship design for all maritime academies under MARAD, and 
the costs associated with design and construction. The 
Committee encourages MARAD to include funds in the 2016 budget 
request for design costs.
    Ready reserve force transfer.--Should the Subcommittee on 
Defense of the Committee on Appropriations provide for a 
transfer of their Ready Reserve Force funds to MARAD, MARAD is 
approved to administer the funds as requested.

                             SHIP DISPOSAL




Appropriation, fiscal year 2014.......................        $4,800,000
Budget request, fiscal year 2015......................         4,800,000
Recommended in the bill...............................         4,000,000
Bill compared with:
    Appropriation, fiscal year 2014...................          -800,000
    Budget request, fiscal year 2015..................          -800,000


    MARAD serves as the federal government's disposal agent for 
government-owned merchant vessels weighing 1,500 gross tons or 
more. The ship disposal program provides resources to dispose 
of obsolete merchant-type vessels in the National Defense 
Reserve Fleet (NDRF). The Maritime Administration was required 
by Public Law 106-398 to dispose of its obsolete inventory by 
the end of 2006. These vessels pose a significant environmental 
threat due to the presence of hazardous substances such as 
asbestos and solid and liquid polychlorinated biphenyls (PCBs). 
As reported in the fiscal year 2015 budget documents, MARAD 
currently has custody of approximately 25 obsolete vessels that 
are not yet under contract for disposal. By the end of 2014, 
MARAD anticipates an inventory of 20 obsolete ships located at: 
the James River Reserve Fleet site in Virginia (9 ships), and 
the Suisun Bay Reserve Fleet (SBRF) site in California (5 
ships), and the Beaumont Reserve Fleet site in Texas (2 ships--
3 less than the prior year), plus 4 decommissioned Navy Vessels 
located in Hawaii and Pennsylvania. MARAD anticipates removing 
another 8 ships from the SBRF during fiscal year 2014, with 
only 5 vessels remaining for disposal beyond 2015.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $4,000,000 for this account, 
$800,000 below the fiscal year 2014 funding level and the 
budget request. Funds are available until expended. The fiscal 
year 2015 proposed funding level reflects the Committee's 
confidence that MARAD can continue moving a significant number 
of ships out of the NDRF by sales rather than by contract. 
Considering MARAD has routinely exceeded its own performance 
goals for ship disposal, this funding level should be 
sufficient to still meet the long term goals of the program.

              MARITIME GUARANTEED LOAN (TITLE XI PROGRAM)

              (INCLUDING TRANSFER AND RESCISSION OF FUNDS)




Appropriation, fiscal year 2014.......................        $3,500,000
Budget request, fiscal year 2015......................         3,100,000
Recommended in the bill...............................         3,100,000
Bill compared with:
    Appropriation, fiscal year 2014...................          -400,000
    Budget request, fiscal year 2015..................             - - -


    The Maritime Guaranteed Loan Program, as provided for by 
Title XI of the Merchant Marine Act of 1936, provides for 
guaranteed loans for purchasers of ships from the U.S. 
shipbuilding industry and for modernization of U.S. shipyards. 
Funds for administrative expenses for the Title XI program are 
appropriated to this account, and then paid to operations and 
training to be obligated and expended.

                        COMMITTEE RECOMMENDATION

    The Committee recommends the budget request of $3,100,000 
for the Maritime Guaranteed Loan (Title XI) Program, which is 
$400,000 below the amount provided in fiscal year 2014. 
Further, the Committee recommends rescinding $29,000,000 in 
unobligated funds provided in fiscal year 2014.

           ADMINISTRATIVE PROVISIONS--MARITIME ADMINISTRATION

    Section 170. The Committee continues a provision that 
allows the Maritime Administration to furnish utilities and 
services and make repairs to any lease, contract, or occupancy 
involving government property under the control of MARAD and 
rental payments shall be paid into the Treasury as 
miscellaneous receipts.
    Section 171. The Committee continues a provision regarding 
MARAD ship disposal.

         Pipeline and Hazardous Materials Safety Administration

    The Pipeline and Hazardous Materials Safety Administration 
(PHMSA) administers nationwide safety programs designed to 
protect the public and the environment from risks inherent to 
the commercial transportation of hazardous materials by 
pipeline, air, rail, vessel, and highway. Many of these 
materials are essential to the national economy. The agency's 
highest priority is safety, and it uses safety management 
principles and security assessments to promote the safe 
transport of hazardous materials and the security of the 
nation's pipelines.

                          OPERATIONAL EXPENSES

                     (INCLUDING TRANSFER OF FUNDS)




Appropriation, fiscal year 2014.......................       $21,654,000
Budget request, fiscal year 2015......................        22,225,000
Recommended in the bill...............................        21,654,000
Bill compared with:
    Appropriation, fiscal year 2014...................             - - -
    Budget request, fiscal year 2015..................          -571,000


    This appropriation finances the operational support costs 
for PHMSA, including agency-wide functions of administration, 
management, policy development, legal counsel, budget, 
financial management, civil rights, human resources, 
acquisition services, information technology, and governmental 
and public affairs.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $21,654,000 for PHMSA operational 
expenses. This is the same as fiscal year 2014, and $571,000 
below the budget request. The Committee includes bill language 
directing PHMSA to transfer $1,500,000 to the pipeline safety 
program to fund the pipeline information grants to communities.
    Transportation of energy products.--The transportation of 
domestically produced energy products, including ethanol and 
crude oil, has grown dramatically in the last few years. The 
Federal Railroad Administration (FRA) estimates that the volume 
of crude oil transported by rail increased from 65,600 carloads 
in 2011 to more than 255,000 carloads in 2012, an increase of 
nearly 300 percent. The Committee is greatly concerned about 
recent train accidents that have resulted in releases of crude 
oil and ethanol, forced evacuations, millions of dollars in 
damage, and, in the case of the Lac Megantic, Quebec incident, 
massive fires and the loss of 47 lives. With the expected 
increases in domestic production of crude oil and other energy-
related products, a multi-faceted and comprehensive approach is 
necessary to ensure the safe and efficient transport of these 
products. Specifically, DOT should consider the following 
activities: improving the design of tank cars, developing 
emergency response plans; promoting first responder training, 
and establishing adequate oversight of railroad, pipeline, and 
shipper operations.
    The Committee is concerned that PHMSA only requires 
comprehensive response plans for oil shipments larger than 
42,000 gallons per tanker. Most tankers used to transport crude 
oil typically hold close to 34,000 gallons but are transported 
in unit train configurations that dramatically exceed the 
42,000 gallon threshold. The Committee directs PHSMA to review 
the spill response planning thresholds contained in 49 C.F.R. 
Part 130 and to update those thresholds as necessary to ensure 
carriers have the ability to respond to worst-case discharges 
resulting from accidents involving both unit trains and blocks 
of tank cars transporting oil and petroleum products. In 
addition, the Committee directs PHMSA to update the Hazardous 
Materials Emergency Preparedness curriculum guidelines to 
include training protocols unique to crude oil and ethanol 
incident response.
    The Committee expects DOT to take a systemic approach in 
its oversight to reduce the risks associated with the transport 
of crude oil and other energy-related materials. The Committee 
recommendation includes increases for PHMSA's hazardous 
materials program to support research and development 
activities on emerging oil and gas transportation safetyissues 
and to increase training and outreach activities to 
improveincident response. The recommendation also includes 
increases for pipeline safety to support additional inspection, 
oversight and enforcement activities, and to increase training 
and outreach on accident investigation and response.

                       HAZARDOUS MATERIALS SAFETY




Appropriation, fiscal year 2014.......................       $45,000,000
Budget request, fiscal year 2015......................        52,000,000
Recommended in the bill...............................        52,000,000
Bill compared with:
    Appropriation, fiscal year 2014...................        +7,000,000
    Budget request, fiscal year 2015..................             - - -


    The hazardous materials safety program advances the safe 
and secure transport of hazardous materials (hazmat) in 
commerce by air, truck, railroad and vessel. PHMSA evaluates 
hazmat safety risks, develops and enforces regulations for 
transporting hazmat, educates shippers and carriers, 
investigates hazmat incidents and failures, conducts research, 
and provides grants to improve emergency response to 
transportation incidents involving hazmat.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $52,000,000, the same as the 
request and $7,000,000 above the fiscal year 2014 enacted 
level, to fund the agency's existing hazardous materials safety 
program and to provide increases requested for research, 
training, and outreach related to emerging oil and gas 
transportation safety. The Committee recommends $7,000,000 of 
the total to remain available for three years for long-term 
research and development contracts.
    Special permits and approvals fee proposal.--The Committee 
does not include the request for new special permits and 
approvals fees. Additional fees within this account should be 
considered in the context of authorizing legislation 
originating in the committees of jurisdiction.
    Tank car design.--The Committee urges PHMSA to work 
expeditiously to finalize a rule improving safety standards for 
rail cars carrying crude no later than September 30, 2014. The 
National Transportation Safety Board (NTSB) has identified a 
number of vulnerabilities in DOT-111 tank cars and has 
recommended immediate action to improve puncture resistance, 
thermal resistance, and overall integrity. Due to several 
derailments involving crude oil and ethanol, the Committee is 
concerned about the timeline for the rulemaking on the DOT-111 
tank car fleet and directs PHMSA to report to the House and 
Senate Committees on Appropriations on a timeline for 
publication of a final rule within 30 days of enactment.

                            PIPELINE SAFETY

                         (PIPELINE SAFETY FUND)

                    (OIL SPILL LIABILITY TRUST FUND)

                  (PIPELINE SAFETY DESIGN REVIEW FUND)

----------------------------------------------------------------------------------------------------------------
                                                                  (Oil spill
                                                 (Pipeline     liability trust   (Design review       Total
                                                safety fund)        fund)            fund)
----------------------------------------------------------------------------------------------------------------
Appropriation, fiscal year 2014.............      $98,514,000      $18,573,000       $2,000,000     $119,087,000
Budget request, fiscal year 2015............      136,500,000       19,500,000        2,000,000      158,000,000
Recommended in the bill.....................      110,000,000       19,500,000        2,000,000      131,500,000
Bill compared with:
    Appropriation, fiscal year 2014.........      +11,486,000         +927,000            - - -      +12,413,000
    Budget request, fiscal year 2015........      -26,500,000            - - -            - - -      -26,500,000
----------------------------------------------------------------------------------------------------------------

    PHMSA oversees the safety, security, and environmental 
protection of pipelines through analysis of data, damage 
prevention, education and training, development and enforcement 
of regulations and policies, research and development, grants 
for state pipeline safety programs, and emergency planning and 
response to accidents. The pipeline safety program is 
responsible for a national regulatory program to protect the 
public against the risks to life and property in the 
transportation of natural gas, petroleum, and other hazardous 
materials by pipeline.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $131,500,000 to continue pipeline 
safety operations, research and development, and state grants-
in-aid, which is $12,413,000 above fiscal year 2014 and 
$26,500,000 below the budget request. Of the total, $19,500,000 
is from the Oil Spill Liability Trust Fund, $110,000,000 is 
from the Pipeline Safety Fund, and $2,000,000 is from the 
Pipeline Safety Design Review Fund.
    The Committee recommends $1,058,000 of the funds provided 
to be used for the one-call state grant program. The Committee 
recommends $54,436,000 of the funds provided to remain 
available until September 30, 2017.
    The Committee recommendation provides increases adequate to 
support the additional resources requested for the emergency 
and preparedness information for communities program, the 
onshore facilities response plan initiatives, and FTE increases 
for safety training, standards and rulemaking activities, 
accident investigations, human resources, and inspection and 
enforcement. Funding increases requested for state grants, 
grants management, and an expansion of IT modernization 
activities are not provided. PHMSA shall deliver a report to 
the House and Senate Committees on Appropriations within 120 
days of enactment that details staffing and hiring plans for 
fiscal year 2015 as well as actual turnover and hiring in 
fiscal year 2014.
    Pipeline Safety Design Review Fund.--The Committee allows 
$2,000,000 in budgetary resources to be derived from fees 
collected by the Pipeline Safety Design Review Fund as 
authorized. If no qualifying projects are, initiated in fiscal 
year 2015, then no fees will be collected and these funds will 
not be expended.
    Pipeline emergencies training.--Given the aging U.S. 
pipeline infrastructure and its vulnerability to emergency 
events, the Committee reiterates the need to ensure that 
individuals charged with responding to pipeline and pipeline-
related emergencies are properly trained. The Committee directs 
PHMSA to leverage some portion of the increases provided for 
fiscal year 2015 to take a more proactive role in promoting 
pipeline emergency response training and outreach to state and 
local first responders. The Committee further directs PHMSA to 
report to the House and Senate Committees on Appropriations 
within 90 days of enactment with an assessment of pipeline 
emergency training and preparedness including identification of 
where improvements can be made.

                     EMERGENCY PREPAREDNESS GRANTS

                     (EMERGENCY PREPAREDNESS FUND)

------------------------------------------------------------------------
                                           (Emergency       (Emergency
                                          preparedness     preparedness
                                             fund)       grants program)
------------------------------------------------------------------------
Appropriation, fiscal year 2014.......       ($188,000)    ($28,318,000)
Budget request, fiscal year 2015......        (188,000)     (28,318,000)
Recommended in the bill...............        (188,000)     (28,318,000)
Bill compared with:
    Appropriation, fiscal year 2014...            - - -            - - -
    Budget request, fiscal year 2015..            - - -            - - -
------------------------------------------------------------------------

    The Hazardous Materials Transportation Uniform Safety Act 
of 1990 (Public Law 101-615) requires PHMSA to: (1) develop and 
implement a reimbursable emergency preparedness grant program; 
(2) monitor public sector emergency response training and 
planning and provide technical assistance to states, political 
subdivisions and Indian tribes; and (3) develop and update 
periodically a mandatory training curriculum for emergency 
responders.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $28,318,000 for the emergency 
preparedness grants program, which is the same as fiscal year 
2014 and the budget request. These amounts reflect the maximum 
authorized funding levels.

                      OFFICE OF INSPECTOR GENERAL

                         SALARIES AND EXPENSES

    The Inspector General's office was established in 1978 to 
provide an objective and independent organization that would be 
more effective in: (1) preventing and detecting fraud, waste, 
and abuse in departmental programs and operations; and (2) 
providing a means of keeping the Secretary of Transportation 
and the Congress fully and currently informed of problems and 
deficiencies in the administration of such programs and 
operations. According to the authorizing legislation, the 
Inspector General (IG) is to report dually to the Secretary of 
Transportation and to the Congress.




Appropriation, fiscal year 2014.......................       $85,605,000
Budget request, fiscal year 2015......................        86,223,000
Recommended in the bill...............................        86,223,000
Bill compared with:
    Appropriation, fiscal year 2014...................          +618,000
    Budget request, fiscal year 2014..................             - - -


                        COMMITTEE RECOMMENDATION

    The Committee recommendation provides $86,223,000 for the 
Office of Inspector General, which is $618,000 above the fiscal 
year 2014 enacted level and the same as the budget request. The 
Committee continues to highly value the work of the IG in 
oversight of departmental programs and activities.
    Unfair business practices.--The bill maintains language 
first enacted in fiscal year 2000 which authorizes the OIG to 
investigate allegations of fraud and unfair or deceptive 
practices and unfair methods of competition by air carriers and 
ticket agents.
    Audit reports.--The Committee requests the IG to continue 
forwarding copies of all audit reports to the Committee 
immediately after they are issued, and to continue to make the 
Committee aware immediately of any review that recommends 
cancellation or modifications to any major acquisition project 
or grant, or which recommends significant budgetary savings. 
The OIG is also directed to withhold from public distribution 
for a period of 15 days any final audit or investigative report 
which was requested by the House or Senate Committees on 
Appropriations.
    Oversight of the Metropolitan Washington Airports 
Authority.--The Committee has continuing concerns about the 
lack of oversight of the Metropolitan Washington Airport 
Authority (MWAA). A recent investigation by the DOT Inspector 
General (IG) found a number of cases of questionable sole 
source contracting practices, a lack of ethical disclosure 
requirements for board members, and an overall lack of 
accountability and transparency. In order to improve the 
oversight of MWAA, the Committee recommendation includes a new 
provision that provides the DOT IG with oversight 
responsibilities for MWAA, and requires that MWAA reimburse the 
DOT IG for this new responsibility.

                      Surface Transportation Board


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2014.......................       $31,000,000
Budget request, fiscal year 2015......................        31,500,000
Recommended in the bill...............................        31,250,000
Bill compared with:
    Appropriation, fiscal year 2014...................          +250,000
    Budget request, fiscal year 2015..................          -250,000


    The Surface Transportation Board (STB) was created in the 
Interstate Commerce Commission Termination Act of 1995 and is 
the successor agency to the Interstate Commerce Commission. The 
STB is an economic regulatory and adjudicatory body charged by 
Congress with resolving railroad rate and service disputes and 
reviewing proposed railroad mergers. The STB is decisionally 
independent, although it is administratively affiliated with 
the Department of Transportation. The Passenger Rail Investment 
and Improvement Act of 2008, Pub. L. 110-432, (PRIIA), included 
new responsibilities for the STB.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $31,250,000 
for fiscal year 2015, which is $250,000 more than the fiscal 
year 2014 enacted level and 250,000 less than the request. The 
STB is estimated to collect $1,250,000 in fees which will 
offset the appropriation for a total program cost of 
$30,000,000.

            GENERAL PROVISIONS--DEPARTMENT OF TRANSPORTATION

    Section 180. The Committee continues the provision allowing 
the Department of Transportation (DOT) to use funds for 
aircraft; motor vehicles; liability insurance; uniforms; or 
allowances, as authorized by law.
    Section 181. The Committee continues the provision limiting 
appropriations for services authorized by 5 U.S.C. 3109 to the 
rate for an Executive Level IV.
    Section 182. The Committee continues the provision 
prohibiting funds in this act for salaries and expenses of more 
than 110 political and Presidential appointees in the DOT and 
prohibits political and Presidential personnel from being 
assigned on temporary detail outside the DOT.
    Section 183. The Committee continues the provision 
prohibiting recipients of funds made available in this Act from 
releasing personal information, including Social Security 
number, medical or disability information, and photographs from 
a driver's license or motor vehicle record, without express 
consent of the person to whom such information pertains; and 
prohibits the withholding of funds provided in this Act for any 
grantee if a state is in noncompliance with this provision.
    Section 184. The Committee continues the provision allowing 
funds received by the Federal Highway Administration, Federal 
Transit Administration, and the Federal Railroad Administration 
from states, counties, municipalities, other public 
authorities, and private sources to be used for expenses 
incurred for training may be credited to each agency's 
respective accounts.
    Section 185. The Committee continues the provision 
prohibiting funds from being used to make a loan, loan 
guarantee, line of credit, or grant unless the Secretary of 
Transportation notifies the House and Senate Committees on 
Appropriations not less than three full business days before 
any discretionary grant award, letter of intent, or full 
funding grant agreement is announced by the Department or its 
modal administrations, and directs the Secretary to give 
concurrent notification for any ``quick release'' of funds from 
the Federal Highway Administration's emergency relief program.
    Section 186. The Committee continues a provision allowing 
funds received from rebates, refunds, and similar sources to be 
credited to appropriations of the DOT.
    Section 187. The Committee continues a provision allowing 
amounts from improper payments to a third party contractor that 
are lawfully recovered by the DOT to be available to cover 
expenses incurred in the recovery of such payments.
    Section 188. The Committee mandates that reprogramming 
actions are to be approved or denied solely by the House and 
Senate Committees on Appropriations.
    Section 189. The Committee caps the amount of fees the 
Surface Transportation Board can charge and collect for rate 
complaints filed at the amount authorized for court civil suit 
filing fees.
    Section 190. The Committee includes a provision allowing 
funds to the modal administrations to be obligated to the 
Office of the Secretary for the costs related to assessments or 
reimbursable agreements only when such amounts are for the 
costs of goods and services that are purchased to provide a 
direct benefit to the applicable modal administration or 
administration.
    Section 191. The Committee includes a provision regarding 
agency transit benefits.
    Section 192. The Committee includes a provision prohibiting 
funds for the Surface Transportation Board to take action on a 
high speed rail project in California unless the Board has 
jurisdiction over the entire project and considers the project 
in its entirety.
    Section 193. The Committee includes a provision which 
limits Federal credit awarded to any individual state.
    Section 194. The Committee includes a provision that limits 
funding from being used to deny a hazardous material safety 
program permit.
    Section 195. The Committee includes a new provision which 
allows $710,477 in unexpended funds from fiscal year 2005 to 
increase the safety oversight of rail routes that carry energy 
products and provides $10,000,000 to make grade crossing 
improvements on rail routes that carry energy products.

         TITLE II--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                     Management and Administration

    Management and Administration accounts provide operating 
support to the Department of Housing and Urban Development's 
(HUD) Executive Offices, Administrative Support Offices, and 
Program Office Salaries and Expenses. Funding under these 
accounts supports the salaries and expenses of nearly all HUD 
employees as well as certain non-personnel expenses critical to 
carrying out HUD's mission. The Committee supports the 
Department's efforts to transform the way it does business and 
encourages the Department to continue efforts to streamline 
operations while making targeted technology and human capital 
investments.
    Budgetary resource levels.--HUD must have systems in place 
to track fundamental budgetary resource data including budget 
authority and FTE levels. A lack of essential information at 
HUD has in the past led to Anti-Deficiency Act violations in 
which HUD hired more people than it had resources to pay. While 
the Committee recognizes deficiencies caused by antiquated 
enterprise systems and acknowledges HUD's efforts to address 
these deficiencies, proper management of agency resources is a 
fundamental responsibility and antiquated systems are no excuse 
for violations of Federal law. The Committee directs HUD to 
continue working toward improving its ability to manage and 
track budgetary resource data. The Committee also directs HUD 
to clearly identify in its budget justifications the movement 
or transfer of budgetary resources from one account, program, 
project, or activity to another account, program, project, or 
activity so that year-over-year comparisons are possible. Any 
programs, projects, or activities that are newly requested 
shall also be clearly identified as program increases and any 
other increases should be clearly identified as adjustments to 
baseline spending.
    Reorganizations.--The Committee includes language to make 
clear that any office, program, or activity reorganizations 
require advance approval from the Committee prior to the 
Department taking steps to implement reorganizations including 
any negotiations with affected employees or their 
representatives. Unless otherwise identified in the bill or 
report, any reorganization proposed by the budget and clearly 
presented in the budget justifications is approved. 
Additionally, the Committee requires notice on a monthly basis 
of all ongoing litigation, including any negotiations or 
discussions, planned or ongoing, regarding a consent decree 
between the Department and any other entity, including the 
estimated costs of such decrees.
    New initiatives.--The Committee reiterates that the 
Department must limit the reprogramming of funds between the 
programs, projects, and activities within each account and that 
no changes may be made to any program, project, or activity 
without prior approval of the Committees on Appropriations. 
Unless otherwise identified in the bill or report, the most 
detailed allocation of budgetary resources presented in the 
budget justifications is approved. Any deviation from such 
approved allocation is subject to reprogramming requirements. 
All carryover funds, including recaptures and de-obligations, 
are also subject to reprogramming requirements.

                           Executive Offices




Appropriation, fiscal year 2014.......................       $14,500,000
Budget request, fiscal year 2015......................        15,234,000
Recommended in the bill...............................        14,000,000
Bill compared with:
    Appropriation, fiscal year 2014...................          -500,000
    Budget request, fiscal year 2015..................        -1,234,000


    The Executive Offices account funds the salaries and 
expenses of the Immediate Office of the Secretary, the 
Immediate Office of the Deputy Secretary, the Office of 
Adjudicatory Services, the Office of Congressional and 
Intergovernmental Relations, the Office of Public Affairs, the 
Office of Small and Disadvantaged Business Utilization, and the 
Center for Faith-Based and Neighborhood Partnerships.
    The Immediate Office of the Secretary provides program and 
policy guidance, and operations management and oversight in 
administering all programs, functions and authorities of the 
Department.
    The Immediate Office of the Deputy Secretary provides 
operations management and helps the Department achieve its 
strategic goals by providing management support to program 
offices under the direction of the Office of the Secretary.
    The Office of Adjudicatory Services conducts hearings and 
makes determinations regarding formal complaints or adverse 
actions initiated by HUD based upon alleged violations of 
federal statutes and implementing regulations.
    The Office of the Assistant Secretary for Congressional and 
Intergovernmental Relations is responsible for coordinating 
Congressional and intergovernmental relations activities 
involving program offices to ensure the effective and accurate 
presentation of the Department's views.
    The Office of Public Affairs educates the American people 
about the Department's mission through media outreach and other 
communication tools such as press releases, press conferences, 
the Internet, media interviews, social networking and community 
outreach.
    The Office of Small and Disadvantaged Business Utilization 
provides small business program design and outreach to the 
business community and serves as the central referral point for 
small business regulatory compliance information.
    The Center for Faith-based and Neighborhood Partnerships 
conducts outreach, recommends changes to HUD policies and 
programs that present barriers to grassroots organizations, and 
initiates special projects, such as grant writing training.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $14,000,000 which is $500,000 
below fiscal year 2014 enacted and $1,234,000 below the budget 
request.
    The bill provides that no more than $25,000 provided under 
the immediate Office of the Secretary shall be available for 
the official reception and representation expenses as the 
Secretary may determine. The Department is directed to find 
efficiencies adequate to reduce travel and contracting expenses 
within this account by at least 10 percent.

                     Administrative Support Offices




Appropriation, fiscal year 2014.......................      $506,000,000
Budget request, fiscal year 2015......................       530,783,000
Recommended in the bill...............................       500,000,000
Bill compared with:
    Appropriation, fiscal year 2014...................        -6,000,000
    Budget request, fiscal year 2015..................       -30,783,000


    The Administrative Support Offices account funds the 
salaries and expenses of the Office of Administration, the 
Office of the Chief Human Capital Officer, the Office of the 
General Counsel, the Office of the Chief Financial Officer, the 
Office of the Chief Procurement Officer, the Office of 
Departmental Equal Employment Opportunity, the Office of Field 
Policy and Management, the Office of Strategic Planning and 
Management, and the Office of the Chief Information Officer.
    The Office of Administration provides general operational 
support services to all offices and divisions throughout HUD. 
These services include HUD's non-information technology 
infrastructure in the following areas: nationwide management 
and operation of buildings, Freedom of Information Act 
processing, records management, Privacy Act administration, 
protective and physical security for HUD's Secretary and Deputy 
Secretary, and disaster and emergency response coordination.
    The Office of the Chief Human Capital Officer provides 
human resource services to all offices and divisions throughout 
HUD. These services include HUD's non-information technology 
infrastructure in the following areas: strategic human capital 
management, enterprise level training and learning, recruitment 
and staffing, workforce planning, retention, engagement, 
succession planning and Departmental performance management.
    The Office of Field Policy and Management serves as the 
principal advisor providing oversight and communicating 
Secretarial priorities and policies to field office staff and 
HUD clients. The Regional and Field Office Directors act as the 
operational managers in each of the field offices and manage 
and coordinate cross-program delivery in the field.
    The Office of the Chief Procurement Officer's mission is to 
provide high-quality acquisition support services to all HUD 
program offices by purchasing necessary operational and 
mission-related goods and services; provide advice, guidance 
and technical assistance to all departmental offices on matters 
concerning procurement; assist program offices in defining and 
specifying their procurement needs; develop and maintain all 
procurement guidance including regulations, policies, and 
procedures; and assist in the development of sound acquisition 
strategies.
    The Office of the Chief Financial Officer (OCFO) provides 
leadership in instituting financial integrity, fiscal 
responsibility and accountability. The OCFO is responsible for 
all aspects of financial management, accounting and budgetary 
matters; ensuring the Department establishes and meets 
financial management goals and objectives; ensuring the 
Department is in compliance with financial management 
legislation and directives; analyzing budgetary implications of 
policy and legislative proposals; and providing technical 
oversight with respect to all budget activities throughout the 
Department.
    The Office of the Chief Information Officer (OCIO) is led 
by the Chief Information Officer (CIO) who reports to the 
Office of the Secretary/Deputy Secretary. HUD's CIO advises 
senior managers on the strategic use of information technology 
to support core business processes and to achieve mission 
critical goals. OCIO is responsible for providing modern 
information technology that is secure, accessible and cost 
effective while ensuring compliance with applicable regulatory 
requirements.
    The Office of the General Counsel (OGC) is the legal 
adviser to the Secretary and other principal staff of the 
Department. It is the responsibility of OGC to provide legal 
opinions, advice and services with respect to all programs and 
activities, and to provide counsel and assistance in the 
development of the Department's programs and policies.
    The mission of the Office of Departmental Equal Employment 
Opportunity is to ensure the enforcement of Federal laws 
relating to the elimination of all forms of discrimination in 
the Department's employment practices. The mission is carried 
out through the functions of three divisions: the affirmative 
employment division, the alternative dispute resolution 
division, and the equal employment opportunity division.
    The Office of Strategic Planning and Management drives 
organizational, programmatic, and operational change across the 
Department to maximize efficiency and performance. The office 
will facilitate HUD's strategic planning process by identifying 
the Department's strategic priorities and transformational 
change initiatives, create and manage work plans for targeted 
transformation projects, and develop key program performance 
measures and targets for monitoring.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $500,000,000 for this account, 
which is $6,000,000 below fiscal year 2014 enacted and 
$30,783,000 below the budget request.
    The Committee recommendation reflects reduced funding for 
non-personnel expenses and the expectation that HUD will find 
ways to lower contracting and travel expenses by at least 10 
percent in 2015. The Committee recommendation provides no 
funding for non-personnel expenses requested for the 
``Broadcasting'' function and expects the Department to fund 
media and video contract expenses through offsetting 
efficiencies in funds requested elsewhere for travel, training, 
and public affairs. The recommendation also reflects the 
transfer of resources previously requested under the 
Information Technology Fund.
    Funding shall be distributed as follows:

------------------------------------------------------------------------
                         Office                            Total Funding
------------------------------------------------------------------------
Office of Administration................................    $194,000,000
Office of the Chief Financial Officer...................      45,000,000
Office of the General Counsel...........................      93,000,000
Office of the Chief Human Capital Officer...............      52,000,000
Office of Field Policy and Management...................      49,000,000
Office of the Chief Procurement Officer.................      16,000,000
Office of the Departmental Equal Employment Opportunity.       2,500,000
Office Strategic Planning and Management................       3,500,000
Office of the Chief Information Officer.................      45,000,000
------------------------------------------------------------------------

                  Program Office Salaries and Expenses

                       PUBLIC AND INDIAN HOUSING




Appropriation, fiscal year 2014.......................      $205,000,000
Budget request, fiscal year 2015......................       213,664,000
Recommended in the bill...............................       200,000,000
Bill compared with:
    Appropriation, fiscal year 2014...................        -5,000,000
    Budget request, fiscal year 2015..................       -13,664,000


    The Office of Public and Indian Housing (PIH) oversees the 
administration of HUD's Public Housing, Housing Choice Voucher, 
and Native American Programs. PIH is responsible for 
administering and managing programs authorized and funded by 
Congress under the basic provisions of the U.S. Housing Act of 
1937.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $200,000,000 for this account, 
which is $5,000,000 below the level enacted in fiscal year 
2014, and $13,664,000 below the fiscal year 2015 budget 
request.

                   COMMUNITY PLANNING AND DEVELOPMENT




Appropriation, fiscal year 2014.......................      $102,000,000
Budget request, fiscal year 2015......................       110,535,000
Recommended in the bill...............................       100,000,000
Bill compared with:
    Appropriation, fiscal year 2014...................        -2,000,000
    Budget request, fiscal year 2015..................       -10,535,000


    The Office of Community Planning and Development (CPD) 
assists communities in their efforts to provide affordable 
housing and expanded economic opportunities for low and 
moderate-income persons. The primary means toward this end is 
the development of partnerships among all levels of government 
and the private sector. This Office is responsible for the 
effective administration of Community Development Block Grants 
(CDBG), the Home Investment Partnership (HOME), Homeless 
Assistance Grants and other HUD community development programs.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $100,000,000 for this account, 
which is $2,000,000 below the level enacted in fiscal year 
2014, and $10,535,000 below the budget request.
    Regulatory compliance oversight and voluntary compliance 
agreements.--The Committee expects the Department to follow 
requirements as specified in the Code of Federal Regulation 
with respect to the implementation and enforcement of voluntary 
compliance agreements including agreements related to 
compliance with Section 3 of the Housing and Urban Development 
Act of 1968. Further, CPD is directed to be the lead office 
responsible for regulatory compliance determinations related to 
funds that it administers including the community development 
block grant program. HUD shall not establish requirements or 
require compliance agreements in a manner that is inconsistent 
with federal regulations.

                                HOUSING




Appropriation, fiscal year 2014.......................      $381,500,000
Budget request, fiscal year 2015......................       386,677,000
Recommended in the bill...............................       370,000,000
Bill compared with:
    Appropriation, fiscal year 2014...................       -11,500,000
    Budget request, fiscal year 2015..................       -16,677,000


    The Office of Housing implements programmatic, regulatory, 
financial, and operational responsibilities under the 
leadership of six deputy assistant secretaries and the field 
staff for activities related to Federal Housing Administration 
(FHA) multifamily and single family homeownership programs, and 
assisted rental housing programs.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $370,000,000 for this account, 
which is $11,500,000 below the level enacted in fiscal year 
2014, and $16,677,000 below the budget request.

                    POLICY DEVELOPMENT AND RESEARCH




Appropriation, fiscal year 2014.......................       $22,000,000
Budget request, fiscal year 2015......................        23,248,000
Recommended in the bill...............................        20,000,000
Bill compared with:
    Appropriation, fiscal year 2014...................        -2,000,000
    Budget request, fiscal year 2015..................        -3,248,000


    The Office of Policy Development and Research directs the 
Department's annual research agenda to support the research and 
evaluation of housing and other departmental initiatives to 
improve HUD's effectiveness and operational efficiencies. 
Research proposals are determined through consultation with 
senior staff from each HUD program office, the Office of 
Management and Budget, and Congress. The office also addresses 
inquiries regarding key housing and economic information.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $20,000,000 for this account, 
which is $2,000,000 below the level enacted in fiscal year 2014 
and $3,248,000 below the budget request. The Department is 
directed to provide any data requested by the Committees on 
Appropriations within seven days of the request. Failure to 
respond promptly to Congressional inquiry undermines the 
Committee's ability to oversee and support funding for these 
activities.

                   FAIR HOUSING AND EQUAL OPPORTUNITY




Appropriation, fiscal year 2014.......................       $68,000,000
Budget request, fiscal year 2015......................        77,629,000
Recommended in the bill...............................        68,000,000
Bill compared with:
    Appropriation, fiscal year 2014...................        -1,000,000
    Budget request, fiscal year 2015..................        -9,629,000


    The Office of Fair Housing and Equal Opportunity (FHEO) is 
responsible for developing policies and guidance, and for 
providing technical support for enforcement of the Fair Housing 
Act and the civil rights statutes. FHEO serves as the central 
point for the formulation, clearance and dissemination of 
policies, intra-departmental clearances, and public information 
related to fair housing issues. FHEO receives, investigates, 
conciliates and recommends the issuance of charges of 
discrimination and determinations of non-compliance for 
complaints filed under Title VIII and other civil rights 
authorities. Additionally, FHEO conducts civil rights 
compliance reviews and compliance reviews under Section 3.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $68,000,000 for this account, 
which is $1,000,000 below the level enacted in fiscal year 2014 
and $9,629,000 below the budget request.

            OFFICE OF LEAD HAZARD CONTROL AND HEALTHY HOMES




Appropriation, fiscal year 2014.......................        $7,000,000
Budget request, fiscal year 2015......................         7,879,000
Recommended in the bill...............................         7,000,000
Bill compared with:
    Appropriation, fiscal year 2014...................             - - -
    Budget request, fiscal year 2015..................          -879,000


    The Office of Healthy Homes and Lead Hazard Control 
(OHHLHC) is directly responsible for the administration of the 
Lead-Based Paint Hazard Reduction program authorized by Title X 
of the Housing and Community Development Act of 1992. The 
office also addresses multiple housing-related hazards 
affecting the health of residents, particularly children. The 
office develops lead-based paint regulations, guidelines, and 
policies applicable to HUD programs, and enforces the Lead 
Disclosure Rule issued under Title X.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $7,000,000 for this account, which 
is the same as fiscal year 2014 and $879,000 below the budget 
request.

                       Public and Indian Housing


                     TENANT-BASED RENTAL ASSISTANCE




Appropriation, fiscal year 2014.......................   $19,177,218,000
Budget request, fiscal year 2015......................    20,045,000,000
Recommended in the bill...............................    19,356,529,000
Bill compared with:
    Appropriation, fiscal year 2014...................      +179,311,000
    Budget request, fiscal year 2015..................      -688,471,000


    In fiscal year 2005, the Housing Certificate Fund was 
separated into two new accounts: Tenant-Based Rental Assistance 
and Project-Based Rental Assistance. This account administers 
the tenant-based Section 8 rental assistance program otherwise 
known as the Housing Choice Voucher program.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $19,356,529,000 for tenant-based 
rental assistance, which is $179,311,000 above the fiscal year 
2014 enacted level and $688,471,000 below the budget request. 
Consistent with the budget request, the Committee continues the 
advance of $4,000,000,000 of the funds appropriated under this 
heading for Section 8 programs to October 1, 2015.
    Voucher renewals.--The Committee provides $17,693,079,000 
for the renewal of tenant-based vouchers. This level is 
$327,552,000 above the enacted level and $313,471,000 below the 
budget request. The Committee directs the Department to monitor 
and report to the House and Senate Committees on Appropriations 
each quarter on the trends in Section 8 subsidies and to report 
on the required program alterations due to changes in rent or 
changes in tenant income.
    Tenant protection.--The Committee provides $130,000,000 for 
tenant protection vouchers, which is the same as the fiscal 
year 2014 enacted level and $20,000,000 below the budget 
request.
    Administrative fees.--The Committee provides $1,350,000,000 
for allocations to Public Housing Authorities (PHAs) to conduct 
activities associated with placing and maintaining individuals 
under Section 8 assistance. This amount is $150,000,000 below 
the fiscal year 2014 enacted level and $355,000,000 below the 
budget request.The Committee directs HUD to evaluate the effect 
of voucher portability on administrative costs to PHAs experiencing a 
large number of vouchers that are ported in from other jurisdictions. 
The Secretary is directed to report to the House and Senate Committees 
on Appropriations and the authorizing committees of jurisdiction on the 
findings, and possible remedies to address any inequities in the 
administrative fee formula, 180 days after enactment of this Act.
    Mainstream voucher renewals.--The Committee provides 
$108,450,000 to renew expiring Section 811 tenant-based 
subsidies. This level is $1,759,000 above the fiscal year and 
equal to the budget request. The Committee directs HUD to issue 
guidance to the housing agencies administering these vouchers 
to continue to serve people with disabilities upon turnover.
    Veterans affairs supportive housing.--The Committee 
provides $75,000,000 for incremental voucher assistance through 
the Veterans Affairs Supportive Housing (VASH) program. This 
funding level is equal to the budget request and the same as 
the level provided in fiscal year 2012. This program is 
administered in conjunction with the Department of Veterans 
Affairs. These vouchers shall remain available for homeless 
veterans upon turnover. This funding will add 10,000 new 
vouchers for this program, and will support the Department of 
Veterans Affairs' (VA) goal of ending homelessness among 
veterans within five years. The Committee directs HUD to report 
on VASH utilization rates, challenges encountered in the 
program, and increases in veteran self-sufficiency by March 1, 
2015.
    The Committee continues in bill language the direction to 
the Department to communicate to each PHA, within 60 days of 
enactment, the fixed amount that will be made available to each 
PHA for fiscal year 2015. The amount provided in this account 
is the only source of federal funds that may be used to renew 
tenant-based vouchers. The amounts appropriated here may not be 
augmented from any other source.
    Section 8 reforms.--The budget request includes a number of 
authorizing provisions to reform the Housing Choice Voucher 
(HCV) program, including provisions that result in cost-saving 
measures that provide administrative relief to PHAs. HUD has 
also committed to submitting a more comprehensive Section 8 
reform proposal to Congress in the spring of 2014. The 
Committee is fully supportive of any reforms that relieve 
administrative burdens and enable housing authorities to serve 
more families and lead to greater self-sufficiency. The 
Committee strongly urges the authorizing committee to address 
reforms of the HCV program expeditiously, as a failure to 
reform this program could result in significant reductions to 
the number of leased vouchers and deep cuts to other HUD 
programs, especially considering the current fiscal 
environment. The Committee urges the administration to continue 
to work with the authorizing committees on a reform bill, with 
the goal of enactment prior to the beginning of fiscal year 
2015 so that the amounts provided in this bill more efficiently 
and effectively serve individuals and families in need of 
housing assistance. The Committee also strongly encourages HUD 
to pursue regulatory and administrative reforms that do not 
require new authorizations, but that relieve the administrative 
burdens on PHAs.
    PHA consortia.--The Committee encourages the Department to 
reduce administrative burdens for public housing agencies. The 
Committee notes language in Division L the Fiscal Year 2014 
Omnibus Appropriations Act, adding a consortium of PHAs to the 
definition of a PHA. The Committee urges the Department to 
complete the necessary changes to its internal systems and 
relevant regulations to allow consortia to fully consolidate 
their reporting requirements.
    Enhanced vouchers.--The Committee is concerned about 
reported accounts of local Housing Authorities issuing vouchers 
in excess of levels stipulated in Department regulations. HUD 
regulations provide that the local housing authority has the 
authority to issue vouchers up to 110 percent of the published 
Fair Market Rent with the HUD filed office having the authority 
to approve up to 120 percent. The Committee has received 
reports of the issuance of vouchers far in excess of those 
amounts. Such vouchers divert scarce resources to fewer 
recipients and generate benefits for only a selected few. 
Issuance of such vouchers depletes limited funds that could 
otherwise be used to fill the shortfall in voucher recipients 
or make improvements to rental properties themselves. The 
Committee directs the Secretary to review such instances and 
work with local housing authorities to limit voucher value 
issuance to the levels stipulated in Department regulations.
    Public Housing Assessment System.--The Committee urges HUD 
to study potential changes to the Public Housing Assessment 
System for PHAs that operate 550 or fewer public housing units 
and Housing Choice Vouchers combined by taking into 
consideration physical inspections and an annual financial 
assessment based on current assets and liabilities.
    Physical needs assessment prohibition.--The Committee has 
included bill language prohibiting funds for HUD's physical 
needs assessment (PNA) requirement for PHAs. Implementation of 
PNA requirements on PHAs unnecessarily increases administrative 
burdens on PHAs and appears to have no operational benefit for 
local housing programs.

                    RENTAL ASSISTANCE DEMONSTRATION




Appropriation, fiscal year 2014.......................             - - -
Budget request, fiscal year 2015......................       $10,000,000
Recommended in the bill...............................             - - -
Bill compared with:
    Appropriation, fiscal year 2014...................             - - -
    Budget request, fiscal year 2015..................       -10,000,000


    The Rental Assistance Demonstration (RAD) was authorized in 
fiscal year 2012 to preserve public housing by enabling Public 
Housing Authorities to use a portion of their operating and 
capital funds to leverage private sector funding to 
recapitalize their housing stock and maintain their units of 
affordable housing primarily through the conversion to long-
term Section 8 rental assistance contracts. The budget request 
includes a request of $10,000,000 for a targeted expansion of 
the program to public housing properties that cannot convert 
their housing under this program at their existing funding 
levels.

                        COMMITTEE RECOMMENDATION

    The Committee does not provide funding for this program, 
and does not include the proposal in the budget request to 
eliminate the unit cap from the currently authorized level of 
60,000 units. The Committee has concerns about the impact new 
RAD conversions would have on the Project Based Rental 
Assistance account. Further, the Committee would expect the 
authorizing committees to undertake a full review of this 
program before taking measures to expand the program.

                        HOUSING CERTIFICATE FUND

                        (INCLUDING RESCISSIONS)

    The Housing Certificate Fund, until fiscal year 2005, 
provided funding for both the project-based and tenant-based 
components of the Section 8 program. Project-Based Rental 
Assistance and Tenant-Based Rental Assistance are now 
separately funded accounts. The Housing Certificate Fund 
retains balances from previous years' appropriations.

                        COMMITTEE RECOMMENDATION

    Language is included to allow unobligated balances from 
specific accounts to be used to renew or amend project-based 
rental assistance contracts.

                      PUBLIC HOUSING CAPITAL FUND




Appropriation, fiscal year 2014.......................    $1,875,000,000
Budget request, fiscal year 2015......................     1,925,000,000
Recommended in the bill...............................     1,775,000,000
Bill compared with:
    Appropriation, fiscal year 2014...................      -100,000,000
    Budget request, fiscal year 2015..................      -150,000,000


    The Public Housing Capital Fund provides funding for public 
housing capital programs, including public housing development 
and modernization. Examples of capital modernization projects 
include replacing roofs and windows, improving common spaces, 
upgrading electrical and plumbing systems, and renovating the 
interior of an apartment.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $1,775,000,000 for the Public 
Housing Capital Fund, which is $100,000,000 below the fiscal 
year 2014 enacted level and $150,000,000 below the budget 
request.
    Within the amounts provided the Committee directs that:
  --No more than $8,000,000 is directed to support the ongoing 
        public housing financial and physical assessment 
        activities;
  --Up to $5,000,000 is for administrative and judicial 
        receiverships;
  --Up to $20,000,000 is made available for emergency capital 
        needs, excluding Presidentially-declared disasters. The 
        Committee continues to include language to ensure that 
        funds are used only for repairs needed due to an 
        unforeseen and unanticipated emergency event or natural 
        disaster that occurs during fiscal year 2015;
  --$45,000,000 is for the Resident Opportunity and Self-
        Sufficiency (ROSS) program; and
  --$15,000,000 is provided for the Jobs-Plus program to 
        improve employment opportunities and earnings of public 
        housing residents.

                     PUBLIC HOUSING OPERATING FUND




Appropriation, fiscal year 2014.......................    $4,400,000,000
Budget request, fiscal year 2015......................     4,600,000,000
Recommended in the bill...............................     4,400,000,000
Bill compared with:
    Appropriation, fiscal year 2014...................             - - -
    Budget request, fiscal year 2015..................      -200,000,000


    The Public Housing Operating Fund subsidizes the costs 
associated with operating and maintaining public housing. This 
subsidy supplements funding received by public housing 
authorities (PHA) from tenant rent contributions and other 
income. In accordance with section 9 of the United States 
Housing Act of 1937, as amended, funds are allocated by formula 
to public housing authorities for the following purposes: 
utility costs; anti-crime and anti-drug activities, including 
the costs of providing adequate security; routine maintenance 
cost; administrative costs; and general operating expenses.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $4,400,000,000 for the federal 
share of PHA operating expenses. This amount is the same as the 
fiscal year 2014 enacted level and $200,000,000 below the 
budget request. The Committee does not include language in the 
budget request that would allow PHAs to entirely merge their 
capital and operating funds and use those funds for either 
purpose. While the Committee supports the idea of giving high 
performing PHAs regulatory relief so they can operate more 
efficiently, HUD has provided limited information on how it 
would identify and budget for capital and operating needs in 
the future if this authority to merge funds were approved.

                    CHOICE NEIGHBORHOODS INITIATIVE




Appropriation, fiscal year 2014.......................       $90,000,000
Budget request, fiscal year 2015......................       120,000,000
Recommended in the bill...............................        25,000,000
Bill compared with:
    Appropriation, fiscal year 2014...................       -65,000,000
    Budget request, fiscal year 2015..................       -95,000,000


    This appropriation funds grants to communities to 
rehabilitate and replace blighted housing and support the 
revitalization of neighborhoods with concentrated poverty.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $25,000,000 for the Choice 
Neighborhoods Initiative Program, which is $65,000,000 below 
the 2014 enacted level and $95,000,000 below the budget 
request.
    The Committee has included language which prohibits funds 
to any grantee that has previously received a Choice 
Neighborhoods Implementation grant.

                        FAMILY SELF-SUFFICIENCY




Appropriation, fiscal year 2014.......................       $75,000,000
Budget request, fiscal year 2015......................        75,000,000
Recommended in the bill...............................        75,000,000
Bill compared with:
    Appropriation, fiscal year 2014...................             - - -
    Budget request, fiscal year 2015..................             - - -


    The budget request proposes to create a consolidated 
program to help HUD-assisted residents achieve economic 
independence, rather than continue separate programs for 
Housing Choice Voucher and public housing families.

                        COMMITTEE RECOMMENDATION

    The Committee agrees with this proposal and provides 
$75,000,000 to support the Family Self-Sufficiency program. 
This is the same as the fiscal year 2014 enacted level and 
equal to the budget request. The Committee expects the 
Department to prioritize assistance to individuals and families 
that results in job stability, increased tenant incomes, and 
greater rent contributions. The Committee also expects the 
Department to report to the Committees on Appropriations the 
best practices of the program that result in increased rent 
contributions of program participants, and practices that 
result in residence achieving full self-sufficiency in meeting 
their housing needs, no later than March 31, 2015.

                  NATIVE AMERICAN HOUSING BLOCK GRANTS




Appropriation, fiscal year 2014.......................      $650,000,000
Budget request, fiscal year 2015......................       650,000,000
Recommended in the bill...............................       650,000,000
Bill compared with:
    Appropriation, fiscal year 2014...................             - - -
    Budget request, fiscal year 2015..................             - - -


    The Native American Housing Block Grants program, 
authorized by the Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4111 et seq.), provides 
funds to American Indian tribes and their Tribally Designated 
Housing Entities (TDHEs) to address affordable housing needs 
within their communities.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $650,000,000 for Native American 
Housing Block Grants, which is the same as the fiscal year 2014 
enacted level and the same as the budget request.
  --$2,000,000 is for Title VI loan guarantees up to 
        $16,530,000.
  --$3,000,000 is for organizations representing Native 
        American housing interests to provide training and 
        technical assistance to Indian housing authorities and 
        Tribal Designated Housing Entities (TDHEs). Of this 
        amount, no less than $2,000,000 is for a national 
        organization as authorized under NAHASDA.
    Timely Expenditure of Funds.--The Committee continues 
language requiring fiscal year 2015 funds to be spent within 10 
years.
    Bill language is included to withhold funding from any 
grantee that receives an allocation larger than $5,000,000 and 
that has an unexpended balance greater than three times its 
formula allocation.

                  NATIVE HAWAIIAN HOUSING BLOCK GRANT




Appropriation, fiscal year 2014.......................       $10,000,000
Budget request, fiscal year 2015......................        13,000,000
Recommended in the bill...............................             - - -
Bill compared with:
    Appropriation, fiscal year 2014...................       -10,000,000
    Budget request, fiscal year 2015..................       -13,000,000


    The Native Hawaiian Housing Block Grant program provides 
grants to the State of Hawaii Department of Hawaiian Home Lands 
for housing and housing-related assistance to develop, maintain 
and operate affordable housing for eligible low-income native 
Hawaiian families.

                        COMMITTEE RECOMMENDATION

    The Committee does not recommend funding for this program, 
which is $10,000,000 below the fiscal year 2014 enacted level 
and $13,000,000 below the budget request.

           INDIAN HOUSING LOAN GUARANTEE FUND PROGRAM ACCOUNT

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

------------------------------------------------------------------------
Credit subsidy:
    Appropriation, fiscal year 2014....................       $6,000,000
    Budget request, fiscal year 2015...................        8,000,000
    Recommended in the bill............................        8,000,000
Bill compared with:
    Appropriation, fiscal year 2014....................       +2,000,000
    Budget request, fiscal year 2015...................            - - -
Limitation on guaranteed loans:
    Appropriation, fiscal year 2014....................    1,818,000,000
    Budget request, fiscal year 2015...................    1,200,000,000
    Recommended in the bill............................    1,200,000,000
Bill compared with:
    Appropriation, fiscal year 2014....................     -618,000,000
    Budget request, fiscal year 2015...................            - - -
------------------------------------------------------------------------

    Section 184 of the Housing and Community Development Act of 
1992 establishes a loan guarantee program for Native American 
individuals and housing authorities to build new housing or 
purchase existing housing on trust land. This program provides 
access to private financing that otherwise might be unavailable 
because of the unique legal status of Indian trust land.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $8,000,000 in new credit subsidy 
for the Section 184 loan guarantee program, which is $2,000,000 
above the fiscal year 2014 enacted level and the same as the 
budget request. This will guarantee a loan volume of 
$1,200,000,000, which is $618,000,000 below the fiscal year 
2014 enacted level and the same as the budget request.

                   Community Planning and Development





Appropriation, fiscal year 2014.......................    $6,588,000,000
Budget request, fiscal year 2015......................     6,578,400,000
Recommended in the bill...............................     6,205,000,000
Bill compared with:
    Appropriation, fiscal year 2014...................      -383,000,000
    Budget request, fiscal year 2015..................      -373,400,000


    The Office of Community Planning and Development (CPD) is 
responsible for administering the Community Development Block 
Grant program (CDBG), the Home Investment Partnership (HOME), 
Housing Opportunities for Persons with AIDS (HOPWA), Homeless 
Assistance Grants (HAG), and other HUD community development 
programs. Most of these programs pass Federal funds through to 
state and local governments and other entities to address 
housing and development needs.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $6,205,000,000 for this office, 
which is $383,000,000 below fiscal year 2014 and $373,400,000 
below the budget request. The Committee acknowledges that at 
reduced funding levels communities will need to be innovative 
in finding ways to do more with less by leveraging State, local 
and private sector partnership. To help facilitate this 
innovation, the Committee fully funds the request for Section 4 
capacity building grants and also supports the request to 
increase the borrowing authority under the Section 108 loan 
guarantee program.

              HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS




Appropriation, fiscal year 2014.......................      $330,000,000
Budget request, fiscal year 2015......................       332,000,000
Recommended in the bill...............................       305,900,000
Bill compared with:
    Appropriation, fiscal year 2014...................       -24,100,000
    Budget request, fiscal year 2015..................       -26,100,000


    The Housing Opportunities for Persons with AIDS (HOPWA) 
program provides states and localities with resources to 
address the housing needs of low-income persons living with 
HIV/AIDS. Funding is distributed by formula to qualifying 
states and metropolitan areas based on the cumulative 
incidences of AIDS reported to the Centers for Disease Control. 
Government recipients are required to have a HUD-approved 
Comprehensive Plan or Comprehensive Housing Affordability 
Strategy.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a total of $305,900,000 for the 
HOPWA program, which is the $24,100,000 below fiscal year 2014 
and $26,100,000 below the budget request.
    The Committee recommendation includes formula grants and 
funding for the renewal of certain expiring contracts that were 
previously funded under HOPWA competitive grants. The Committee 
encourages ongoing efforts at the Department for stronger 
coordination between HOPWA and the Department's other homeless 
prevention and support programs.
    Formula funding methodology.--The current HOPWA formula, 
which is based on cumulative AIDS cases and area incidence, no 
longer reflects the nature of an epidemic that has been 
transformed by both advances in HIV health care and 
surveillance, and by the increasingly disproportionate impact 
of the virus on communities of poverty and color. The Committee 
encourages the Department to work with the authorizing 
committees on any additional statutory authority needed to 
modernize the HOPWA formula.

                       COMMUNITY DEVELOPMENT FUND




Appropriation, fiscal year 2014.......................    $3,100,000,000
Budget request, fiscal year 2015......................     2,870,000,000
Recommended in the bill...............................     3,060,000,000
Bill compared with:
    Appropriation, fiscal year 2014...................       -40,000,000
    Budget request, fiscal year 2015..................      +190,000,000


    The Community Development Fund, authorized by the Housing 
and Community Development Act of 1974 (42 U.S.C. 5301 et seq.), 
provides funding, primarily through Community Development Block 
Grants, to state and local governments and other eligible 
entities to carry out community and economic development 
activities.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a total of $3,060,000,000 for the 
Community Development Fund account, which is the $40,000,000 
below fiscal year 2014 and $190,000,000 above the budget 
request.
    Of the amounts made available:
  --$3,000,000,000 is for the Community Development Block 
        Grants (CDBG) formula program for entitlement 
        communities and states. This is $30,000,000 below 
        fiscal year 2014 and $200,000,000 above the budget 
        request;
  --$60,000,000 is for the Native American Housing and Economic 
        Development Block Grant (also known as Indian CDBG), 
        which is $10,000,000 below fiscal year 2014 and 
        $10,000,000 below the budget request; and
  --$7,000,000, of the amount provided for the regular CDBG 
        formula program, is for insular areas, per 42 U.S.C. 
        5306(a)(2), which is the same as fiscal year 2014 and 
        the budget request.
    The recommendation continues language requiring the 
Department to notify grantees of their formula allocation 
within 60 days of enactment of this Act.

         COMMUNITY DEVELOPMENT LOAN GUARANTEES PROGRAM ACCOUNT

                         (INCLUDING RESCISSION)




Appropriation, fiscal year 2014.......................        $3,000,000
Budget request, fiscal year 2015......................             - - -
Recommended in the bill...............................             - - -
Bill compared with:
    Appropriation, fiscal year 2014...................        -3,000,000
    Budget request, fiscal year 2015..................             - - -


    The Section 108 Loan Guarantee program is a source of 
variable and fixed-rate financing for communities undertaking 
projects eligible under the Community Development and Block 
Grant (CDBG) program. Such activities may include economic 
development, housing rehabilitation, public facilities, and 
large-scale physical development projects. By pledging their 
current and future CDBG allocations to cover the loan amount as 
security, communities are able to finance large-scale projects 
with a federally guaranteed loan. HUD may require additional 
security for a loan, as determined on a case-by-case basis.

                        COMMITTEE RECOMMENDATION

    The Committee recommendation continues the Section 108 Loan 
Guarantee program as a borrower-paid subsidy program and 
therefore recommends providing no budget authority, which is 
$3,000,000 below fiscal year 2014 and the same funding level as 
the budget request. The Committee also accepts the request for 
a limit on guaranteed loan volume of $500,000,000 which is 
$350,000,000 above fiscal year 2014 and the same as the budget 
request.
    With the conversion to a borrower-paid subsidy program 
structure, the Committee recommends the rescission of all 
unobligated balances of subsidy budget authority remaining at 
the end of fiscal year 2014.
    Hazard mitigation.--The Committee directs HUD to coordinate 
with the Federal Emergency Management Agency (FEMA) to identify 
eligible activities covered by the section 108 loan guarantee 
program that also qualify as eligible activities under FEMA's 
hazard mitigation programs intended to protect communities from 
the impact of future disasters. The Committee also directs HUD, 
in coordination with FEMA, to report to the House and Senate 
Committees on Appropriations within 60 days of enactment, on 
(1) an assessment of the benefits of making all FEMA hazard 
mitigation activities eligible under section 108, (2) a 
timeline for HUD to make communities aware of the current 
eligibility of these activities under section 108, and (3) a 
catalogue of mitigation activities that would require 
legislation in order to become eligible.
