Calendar No. 468

105 th Congress

Report

SENATE

2d Session

105 249

DEPARTMENT OF TRANSPORTATION AND RELATED AGENCIES APPROPRIATIONS BILL,

1999

July 15, 1998.--Ordered to be printed

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

following

REPORT

[To accompany S. 2307]

The Committee on Appropriations reports the bill (S. 2307) making

appropriations for the Department of Transportation and related agencies

for the fiscal year ending September 30, 1999, and for other purposes,

reports favorably thereon and recommends that the bill do pass.

Amounts of new budget (obligational) authority for fiscal year 1999

Amount of bill as reported to Senate $13,694,249,569

Amount of budget estimates, 1999 13,354,129,000

Fiscal year 1998 enacted 12,720,568,766

C O N T E N T S

Total obligational authority 4

Immediate Office of the Secretary 8

Office of the General Counsel 9

Office of the Assistant Secretary for Policy 9

Office of the Assistant Secretary for Aviation and International Affairs 9

Office of the Assistant Secretary for Budget and Programs 11

Office of the Assistant Secretary for Governmental Affairs 11

Office of the Assistant Secretary for Administration 11

Office of Public Affairs 12

Executive Secretariat 12

Contract Appeals Board 12

Office of Intelligence and Security 12

Office of the Chief Information Officer 13

Office of Intermodalism 13

Office of Civil Rights 13

Transportation planning, research, and development 13

Transportation Administrative Service Center 15

Essential Air Service and Rural Airport Improvement Fund 16

Minority Business Resource Center Program 23

Minority business outreach 23

Amtrak Reform Council 23

Operating expenses 29

Acquisition, construction, and improvements 35

Environmental compliance and restoration 43

Alteration of bridges 43

Retired pay 43

Reserve training 44

Research, development, test, and evaluation 44

Boat safety 45

Operations 47

Facilities and equipment 57

Research, engineering, and development 75

Grants-in-aid for airports 80

Limitation on general operating expenses 88

Federal-aid highways 90

Magnetic levitation transportation 98

Appalachian development highway system 99

Motor carrier safety grants 102

Operations and research 104

Highway traffic safety grants 107

Office of the Administrator 109

Railroad safety 110

Nationwide differential global positioning system 111

Railroad research and development 112

Northeast Corridor Improvement Program 114

Railroad Rehabilitation Improvement Program 115

Next generation high-speed rail 115

Alaska railroad rehabilitation 117

Rhode Island rail development 118

Capital Grants to National Railroad Passenger Corporation (Amtrak) 118

Administrative expenses 124

Formula grants 125

University transportation centers 128

Transit planning and research 128

Trust fund share of transit programs 131

Capital investment grants 131

Mass transit capital fund 160

Job access and reverse commute grants 161

Washington Metropolitan Area Transit Authority [WMATA] 162

Operations and maintenance 164

Research and special programs 166

Pipeline safety 169

Emergency preparedness grants 171

Salaries and expenses 172

Salaries and expenses 173

Architectural and Transportation Barriers Compliance Board: Salaries and expenses 175

National Transportation Safety Board: Salaries and expenses 175

Emergency fund 176

General provisions 177

Compliance with paragraph 7, rule XVI, of the Standing Rules of the Senate 180

Compliance with paragraph 7(c), rule XXVI, of the Standing Rules of the Senate 180

Compliance with paragraph 12, rule XXVI of the Standing Rules of the Senate 181

Budgetary impact statement 181

TOTAL OBLIGATIONAL AUTHORITY PROVIDED--GENERAL FUNDS AND TRUST FUNDS

In addition to the appropriation of $13,694,249,569 in new budget

authority for fiscal year 1999, large amounts of contract authority are

provided by law, the obligation limits for which are contained in the

annual appropriations bill. The principal items in this category are the

trust funded programs for Federal-aid highways, for mass transit, and

for airport development grants. For fiscal year 1999, estimated

obligation limitations total $32,234,800,000. In addition, Amtrak

receives a substantial subsidy from funds Congress identified in the Tax

Reform Act of 1997.

PROGRAM, PROJECT, AND ACTIVITY

During fiscal year 1999, for the purposes of the Balanced Budget and

Emergency Deficit Control Act of 1985 (Public Law 99 177), as amended,

with respect to appropriations contained in the accompanying bill, the

terms ``program, project, and activity'' shall mean any item for which a

dollar amount is contained in appropriations acts (including joint

resolutions providing continuing appropriations) or accompanying reports

of the House and Senate Committees on Appropriations, or accompanying

conference reports and joint explanatory statements of the committee of

conference. This definition shall apply to all programs for which new

budget (obligational) authority is provided, as well as to discretionary

grants and discretionary grant allocations made through either bill or

report language. In addition, the percentage reductions made pursuant to

a sequestration order to funds appropriated for facilities and

equipment, Federal Aviation Administration, and for acquisition,

construction, and improvements, Coast Guard, shall be applied equally to

each budget item that is listed under said accounts in the budget

justifications submitted to the House and Senate Committees on

Appropriations as modified by subsequent appropriations acts and

accompanying committee reports, conference reports, or joint explanatory

statements of the committee of conference.

TRANSPORTATION EQUITY ACT FOR THE 21ST CENTURY

The Intermodal Surface Transportation Efficiency Act, the previous

authorization for most Federal highway, transit, and highway safety

programs, expired on September 30, 1997. On May 22, 1998, the Congress

passed a new authorization bill, the Transportation Equity Act for the

21st Century [TEA21], which the President signed into law on June 9,

1998. Under this law, most of the authorizations are contract authority;

that is, they are available for obligation without appropriation. The

role of the appropriations process with respect to contract authority

programs generally is to set obligation limitations so that overall

Federal spending stays within legislated targets and to appropriate

liquidating cash to cover the outlays associated with obligations that

have been made.

THE GOVERNMENT PERFORMANCE AND RESULTS ACT

The Government Performance and Results Act [Results Act] requires

Federal agencies to develop strategic plans and annual performance plans

and reports. The first multiyear strategic plan was submitted September

30, 1997. The Committee is fully committed to support the Department as

it seeks to implement the requirements of the Results Act.

The Committee commends the Department for its aggressive

implementation of the Results Act. In the performance plan for fiscal

year 1999 that was delivered to Congress on February 23, 1998,

performance measures have been identified for all of the Department's

major programs. A total of 70 performance goals have been established.

All of these goals are stated in terms of effects on the American

public, and many reflect ambitious target levels of performance.

The Department provided the performance plan shortly after receipt of

budget justifications. The plan generally contained objective and

measurable performance goals covering the Department's budget and are

generally useful. However, the plan could be improved by consistently

linking strategic goals, program activities, and performance goals.

Further, the plan could be strengthened by identifying current (or

potential) interagency coordination of goals and measures including

discussion of the Department's proposed or potential participation in

such areas.

The Department's activities under the Government Performance and

Results Act are clearly a work in progress. The Department has made

significant strides in assessing GPRA's potential for strategically

aligning the varied and numerous programs under the Department's

jurisdiction. However, although the plan identifies strategies to help

achieve the Department's long-term goals, the plan does not adequately

describe how those strategies will lead to realization of the long-term

goals or the relative contributions of each strategy. Generally, this is

a shortcoming reasonably expected to be addressed as the GPRA process

evolves and becomes more integrated in the policy, budget, and

regulatory formulation and identification processes. However, the

Committee encourages the Department to focus in particular on

improvements to management to achieve outcomes as this has been a

historically weak area for the Department. For example, the Committee

encourages greater refinement of goals with specific and quantitable

measures to provide greater definition and focus for budgetary,

regulatory, and administrative actions.

For clarity, the performance plan should resist identifying

activities of agencies or offices under strategic goals unless there is

discussion of such organizations' primary contributions toward those

goals in the body of the plan. Elimination of the mention of these

organizations will provide greater focus on the priorities in the

strategic goal (if mention of such organization is gratuitous), or will

prompt reevaluation of the organizations' roles in the achievement of

the strategic goal.

The performance plan still has the feel of a document designed to

cover the current panoply of activities ongoing or anticipated for the

Department. As the process and the plan mature, the Committee

anticipates that the performance plan will become a management document

rather than a reporting document.

The Committee recognizes that implementation will be an iterative

process, likely to involve several appropriations cycles, and will

support the efforts of the Department to improve its performance plan.

We will consider the Department's progress in addressing weaknesses in

its annual performance plan in tandem with its funding requests. To this

end, we urge the Department to examine the program activities currently

supporting its budget requests in light of the Department's strategic

goals and to determine whether any changes or realignments would

facilitate a more accurate and informed presentation of budgetary

information. The Department is encouraged to consult with the Committee

as it considers such revisions prior to finalizing any requests pursuant

to 31 U.S.C. 1104. The Committee will consider any requests with a view

toward ensuring that fiscal year 2000 and subsequent budget submissions

display amounts requested against program activity structures that bear

clear relationships to performance goals.

Year 2000 conversion .--The Committee notes that the Department has

greatly improved its management oversight in recent months and appears

to be devoting considerable resources to the year 200 conversion

problem. However, the Department still has a long way to go and the

Office of Management and Budget indicates that the Department, with 14.9

percent of its mission critical systems validated and 7.4 percent

implemented, the Department lags well behind the Governmentwide

schedule, and its assessments of four systems had not been completed as

of the May reporting date.

While the entire Department has year 2000 conversion issues, the most

critical appear to be within the Federal Aviation Administration. The

Federal Aviation Administration has taken significant steps in the last

two quarters to accelerate efforts to address the year 2000 problems,

but the FAA systems continue to pose a significant risk. The Office of

Management and Budget specifically suggested that the FAA:

* * * determine priorities for system conversion and

replacement based on systems' mission criticality; develop

plans for validating and testing all converted or replaced

systems; and continue working to develop realistic contingency

plans for all business lines to ensure the continuity of

critical operations, including the availability of critical

telecommunications support. Of particular concern is the FAA's

HOST computer system, which is the backbone en route air

traffic control. The FAA intends to replace the HOST computers

at a pace sufficient to guarantee an adequate supply of spare

parts for the remaining computers. FAA is continuing to assess

the potential vulnerability of the system's microcode and is

validating the feasibility of a date rollback as one of its

potential contingency plans. The FAA's contingency planning

must provide for continuity of operational capability of the

National Airspace System [NAS], including scenarios when the

HOST computer is not available.

TITLE I--DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

Section 3 of the Department of Transportation Act of October 15, 1966

(Public Law 89 670) provides for establishment of the Office of the

Secretary of Transportation [OST]. The Office of the Secretary is

composed of the Secretary and the Deputy Secretary immediate offices,

the Office of the General Counsel, and five assistant secretarial

offices for transportation policy, aviation and international affairs,

budget and programs, governmental affairs, and administration. These

secretarial offices have policy development and central supervisory and

coordinating functions related to the overall planning and direction of

the Department of Transportation, including staff assistance and general

management supervision of the counterpart offices in the operating

administrations of the Department.

The Committee recommends a total of $76,925,300 for the Office of the

Secretary of Transportation including $40,000 for reception and

representation expenses.

The Committee is concerned about the continued level of vacancies in

the Office of the Secretary and notes that many of the positions have

been open for over a year. Accordingly, the appropriation for salaries

and expenses has been adjusted downward to reflect current staffing

levels generally across the Office of the Secretary. This adjustment is

made without prejudice and will be reassessed before final enactment of

this bill.

In addition, the Committee is increasingly concerned about the

apparent reticence on the part of the Office of Congressional Affairs to

brief all impacted Committees of the Congress in a timely fashion of

administration proposals directly relating to issues and accounts under

those committees' jurisdiction. This concern comes directly on the heels

of a constant stream of concerns by Members of Congress that matters of

constituent interest are not relayed to all members of a State

delegation in an even-handed and timely fashion. Unless these

deficiencies are remedied immediately, the Committee will reconsider the

need for a departmentwide Office of Congressional Affairs, and may

resolve to transfer some of the functions to other offices in the Office

of the Secretary and devolve the congressional liaison functions to the

individual modal administrations.

IMMEDIATE OFFICE OF THE SECRETARY

The Immediate Office of the Secretary has the primary responsibility

for overall policy development, central supervisory and coordinating

functions necessary for the overall planning and direction of the

Department.

The Committee recommends $1,768,600, which is consistent with the

fiscal year 1998 appropriation with controls placed on travel and PC&B

growth. The Committee expects that the funding will be sufficient for

the Immediate Office of the Secretary and expects that any shortfall can

be accommodated by slight reductions in benefits and travel. The funding

provided will allow for 16 positions.

IMMEDIATE OFFICE OF THE DEPUTY SECRETARY

The Immediate Office of the Deputy Secretary has the primary

responsibility of assisting the Secretary in the overall planning and

direction of the Department. The Committee has recommended a total of

$554,700 for the Immediate Office of the Deputy Secretary. The

Committee's recommendation provides for a staffing level of seven

positions.

OFFICE OF THE GENERAL COUNSEL

The General Counsel is the chief legal officer of the Department of

Transportation and the final authority within the Department on all

legal questions. The General Counsel's Office provides legal services to

the Office of the Secretary, coordinates and reviews the legal work of

the Chief Counsels' Offices of the operating administrations, and

generally performs the full range of legal services involved in

administering an executive department with national and international

responsibilities. With the completion of the reauthorization of the

Federal-aid Highway Program, National Highway Traffic Safety

Administration, Motor Carrier Safety Program, and Federal transit

programs, the workload of the General Counsel's Office should

substantially decrease, and the funds provided should be ample to carry

out the duties of the Office of the General Counsel.

The Committee recommends $8,645,000 for the Office of the General

Counsel. At this funding level, the Committee expects that the Office

will be able to fund 86 staff positions.

OFFICE OF THE ASSISTANT SECRETARY FOR POLICY

The Assistant Secretary for Policy is the primary policy officer of

the Department and is responsible to the Secretary for analysis,

development, articulation, and review of policies and plans for domestic

transportation.

The Committee recommends $2,479,500 for the Office of the Assistant

Secretary for Policy. This funding level is sufficient to fund the

current onboard staff.

OFFICE OF THE ASSISTANT SECRETARY FOR AVIATION AND INTERNATIONAL AFFAIRS

The Assistant Secretary for Aviation and International Affairs is

responsible for administering the economic regulatory functions

regarding the airline industry and provides departmental leadership and

coordination on international transportation policy issues relating to

maritime, trade, technical assistance, and cooperation programs. As

overseer of airline economic regulations, the Assistant Secretary is

responsible for international aviation programs, the essential air

service program, airline fitness and licensing, acquisitions,

international route awards, and special investigations such as airline

delays and computer reservations systems [CRS].

The Committee has provided $6,686,300, which will provide sufficient

resources to fund 85 positions.

Aviation competition guidelines. --When Congress passed the Airline

Deregulation Act, it decided that the marketplace, and not regulators,

should set airline prices and schedules. That landmark action has

generated enormous benefits for the air traveling public. However, the

Subcommittee on Transportation Appropriations has been very concerned

about barriers to entry and the current health of airline competition

which may distort the competitive landscape. The subcommittee has held a

number of hearings over the past 2 years and one of the clear messages

which has emerged from these hearings is that it is critically important

to have a truly free market so that everyone, big and small, can

compete. Where there is strong competition in the airline industry, the

consumers are the primary beneficiaries. What should also be clear is

that there is no prospect of support from the Committee to reregulate

the airline industry.

The Department of Transportation has recently come forth with a

Proposed Statement of Enforcement Policy on Unfair Exclusionary Conduct

by Airlines. The Committee applauds the Department's initiative to

attempt to provide guidelines to the airlines as to what activities

constitute anticompetitive activities, but the Committee is concerned

that any such policy statement not undermine the very marketplace for

airlines services that it is designed to foster. An incautious policy

that intervenes in the wrong circumstances could itself chill the

competitive process. The Committee also notes that several Committees of

the Congress have held hearings and introduced legislation to promote

airline competition.

As the Department considers ways of providing greater certainty to

the airlines as to what constitutes anticompetitive activity, the

Committee encourages the Department to consider a process in which the

Department, upon receiving a complaint, would consider within a

specified time period whether such alleged activity should be referred

to the Department of Justice or whether it was a permissible competitive

activity. Such an approach would provide greater certainty for air

carriers and could provide an efficient mechanism for focusing the

Department of Justice's attention on the most suspect of activities. The

Committee believes that such a process can be accommodated within

current staffing resources and would reject a request for additional

resources for the creation of an analytical or legal capability within

the Department of Transportation that would also, by necessity, have to

be constituted at the Department of Justice.

The Committee urges the Department of Transportation to work with

interested Committees of the Congress, the Department of Justice, and

the airlines to implement existing laws and enforcement practices to

protect the economy from anticompetitive conduct.

Another concern raised during the subcommittee's hearings was that

the role that travel agents play in the maintenance of a competitive

landscape between airlines by virtue of the value-added services they

provide for consumers might be threatened by actions taken by the major

airlines. The Committee encourages the Secretary to monitor the dynamics

of the airline ticketing industry and the impacts that developments in

that industry have on the access of consumers to airline tickets.

OFFICE OF THE ASSISTANT SECRETARY FOR BUDGET AND PROGRAMS

The Assistant Secretary for Budget and Programs is the principal

staff advisor to the Secretary on the development, review, and

presentation of the Department's budget resource requirements, and on

the evaluation and oversight of the Department's programs. The primary

responsibilities of this Office are to ensure the effective preparation

and presentation of sound and adequate budget estimates for the

Department, to ensure the consistency of the Department's budget

execution with the action and advice of the Congress and the Office of

Management and Budget, to evaluate the program proposals for consistency

with the Secretary's stated objectives, and advise the Secretary of

program and legislative changes necessary to improve program

effectiveness.

The Committee recommends a total of $5,687,800 for the Office of

Assistant Secretary for Budget and Programs. At this level, the

Committee has funded the current onboard staff positions and included

$40,000 for reception and representation expenses for the Secretary.

OFFICE OF THE ASSISTANT SECRETARY FOR GOVERNMENTAL AFFAIRS

The Assistant Secretary for Governmental Affairs advises the

Secretary on all congressional and intergovernmental activities and on

all Department legislative initiatives and other relationships with

Members of the Congress; promotes effective communication with other

Federal agencies and regional Department officials, and with State and

local governments and national organizations for development of

departmental programs; and ensures that consumer preferences, awareness,

and needs are brought into the decisionmaking process.

The Committee recommends $1,600,000 for the Office of the Assistant

Secretary for Governmental Affairs. This level holds travel below fiscal

year 1998 levels and provides funding for 23 positions.

OFFICE OF THE ASSISTANT SECRETARY FOR ADMINISTRATION

The Assistant Secretary for Administration is the principal adviser

to the Secretary on departmental administrative management matters, and

is responsible for personnel and training, management policy, employment

ceiling control systems, automated systems policy, administrative

operations, real and personal property management, acquisition

management, grants management, internal departmental financial systems,

and ADP facilities and services.

The Committee recommends $19,570,200 for the Office of the Assistant

Secretary for Administration which includes the OST portion of rent and

the majority of OST's TASC contribution. The Committee has provided a

level that will support the current staffing levels with a slight

reduction in travel and training activities.

OFFICE OF PUBLIC AFFAIRS

The Director of Public Affairs is the principal adviser to the

Secretary and other senior departmental officials and news media on

public affairs questions. The Office issues news releases, articles,

factsheets, briefing materials, publications, and audiovisual materials.

It also provides information to the Secretary on opinions and reactions

of the public and news media on transportation programs and issues.

The Committee recommends $1,656,600 for the Office of Public Affairs,

which will support current staffing levels.

EXECUTIVE SECRETARIAT

The Executive Secretariat provides and organizes staff service for

the Secretary and Deputy Secretary to assist them in carrying out their

management functions and facilitate their responsibilities for

formulating, coordinating, and communicating major policy decisions. It

controls and coordinates internal and external material directed to the

Secretary and Deputy Secretary and ensures that their decisions and

instructions are implemented.

The Committee recommends a funding level of $1,088,500 for the

Executive Secretariat, sufficient resources to maintain current staffing

levels.

CONTRACT APPEALS BOARD

The primary responsibility of the Board of Contract Appeals is to

provide an independent forum for the trial and adjudication of all

claims by, or against, a contractor relating to a contract of any

element of the Department, as mandated by the Contract Disputes Act of

1978, 41 U.S.C. 601.

The Committee has provided $460,000 for the Contract Appeals Board.

This level is sufficient to maintain the current staffing level of five

positions.

OFFICE OF SMALL AND DISADVANTAGED BUSINESS UTILIZATION

The Office of Small and Disadvantaged Business Utilization has

primary responsibility for providing policy direction for small and

disadvantaged business participation in the Department's procurement and

grant programs, and effective execution of the functions and duties

under sections 8 and 15 of the Small Business Act, as amended.

The Committee recommends $1,000,000, which is sufficient funding to

maintain current staffing levels.

OFFICE OF INTELLIGENCE AND SECURITY

The Office of Intelligence and Security within the Office of the

Secretary coordinates security and intelligence policies and strategies

among the modes of transportation and serves as liaison with other

Government intelligence and law enforcement agencies.

The Committee recommends $935,000 for the Office of Intelligence and

Security. This level is sufficient to maintain the current staffing

levels of nine positions and current activities of the office.

OFFICE OF THE CHIEF INFORMATION OFFICER

The Committee recommends $4,652,700 for the Office of the Chief

Information Officer. This level is sufficient to maintain the current

staffing level of 15 positions.

OFFICE OF INTERMODALISM

The Committee recommends $1,000,000 for the Office of Intermodalism.

This level is sufficient to maintain current staffing and activity

levels with modest reductions in travel and the initiation of new

projects.

OFFICE OF CIVIL RIGHTS

The Office of Civil Rights is responsible for advising the Secretary

on civil rights and equal employment opportunity matters, formulating

civil rights policies and procedures for the operating administrations,

investigating claims that small businesses were denied certification or

improperly certified as disadvantaged business enterprises, and

overseeing the Department's conduct of its civil rights responsibilities

and making final determinations on civil rights complaints. In addition,

the Civil Rights Office is responsible for enforcing laws and

regulations which prohibit discrimination in federally operated and

federally assisted transportation programs.

The Committee has provided a funding level of $5,562,000 for the

Office of Civil Rights. The Committee notes the unusually high number of

vacancies in the Office of Civil Rights, and expects the Director to

fill these positions as soon as possible. In addition, the Committee is

aware of the persistent carryover load of EEO cases and encourages the

director to explore alternative means of managing the caseload. Options

to be explored should include contracting out and cost-sharing

arrangements with the administrations generating the largest portion of

the Office's caseload.

TRANSPORTATION PLANNING, RESEARCH, AND DEVELOPMENT

Appropriations, 1998\1\ $4,400,000

Budget estimate, 1999 4,710,000

Committee recommendation 8,328,400

\1\Does not include reduction for TASC pursuant to section 320

of Public Law 105 66.

The Office of the Secretary performs those research activities and

studies which can more effectively or appropriately be conducted at the

departmental level. This research effort supports the planning, research

and development activities, and systems development needed to assist the

Secretary in the formulation of national transportation policies. The

program is carried out primarily through contracts with other Federal

agencies, educational institutions, nonprofit research organizations,

and private firms.

Policy studies .--The recommended level for policy studies for the

development and implementation of transportation economic policy and for

the development of environmental energy and safety policy has been

reduced by $200,000.

Transportation planning .--The recommended level includes funding

for transportation planning assistance for the 2002 Winter Olympics in

Salt Lake City and for planning and logistical support for the 1999

Special Olympics World Summer Games and the 2001 Special Olympic World

Winter Games.

Missing children .--The Committee is aware of the effective work of

the National Center for Missing and Exploited Children to combat crimes

against children and to reunite abducted or runaway children with their

families. There are many opportunities in the transportation sector to

alert the public to the status of a missing child. For example,

truckstops, airports, rail and bus stations, and other transportation

facilities are utilized by millions of Americans every day. These are

ideal places to raise public awareness of missing children. Moreover,

employees in the transportation sector, including flight attendants, bus

and truck drivers, and ticket agents, come into contact with hundreds of

individuals every day and could be a key element in identifying abducted

children. When nonlaw enforcement entities adopt procedures that hinder

pedophiles and kidnappers, they are doing a much needed public service.

Of note is WalMart's Code Adam Program. When a child disappears in a

participating store, Code Adam is addressed over the public address

system. Store personnel immediately stop work to look for the child and

monitor all exits. If the missing child is not located in 10 minutes, or

is seen with someone other than a parent or guardian, the police are

called. This program is implemented in all 2,800 WalMart and Sam's Club

stores. The Committee urges the transportation sector to consider

similar programs.

The Committee directs the Secretary and each of the modal

administrators to work with the National Center for Missing and

Exploited Children and the transportation industry to identify and

implement initiatives to maximize the transportation sector's

involvement in the effort to relocate missing children. The Committee

directs the Secretary to report to the House and Senate Committees on

Appropriations no later than March 31, 1999, on the identified

initiatives in this area and the actions taken to implement those

efforts.

Transportation noise model .--The Department of Transportation

should continue research toward developing a multimodal acoustic noise

model that encompasses all transportation related noise sources, so as

to efficiently minimize combined impact on community noise. No later

than January 1, 1999, the Department shall provide the Committee a plan

for achieving this goal. The Department should continue to improve the

transportation noise model [TNM] by incorporating neglected but relevant

propagation phenomena that affect community noise, such as atmospheric

effects. While the Department continues research toward developing a

multimodal acoustic noise model, it should require concurrent use of TNM

and its previous noise prediction model.

Freight mobility .--The recommended level includes $40,000 for a

joint freight mobility study to initiate and coordinate a freight

mobility system in Washington State to focus on the freight movement

problems of the Puget Sound region. Special attention should be given to

improving business practices to mitigate the freight mobility problems

in the region.

Flood project alternatives research .--Flooding in the Interstate 5

corridor at Centralia/Chehalis in Washington State compromises freight

mobility in the corridor and presents a unique opportunity to provide a

coordinated approach between flood control projects and highway

construction. The Committee provides $250,000 and directs the Secretary

to work with the Lewis County Economic Development Corp., the Washington

State Department of Ecology, and Grays Harbor County to further efforts

to identify and conduct preliminary work on a basinwide solution to this

transportation problem as a pilot program for other flood plain and

highway conflicts.

TRANSPORTATION ADMINISTRATIVE SERVICE CENTER

Limitation, 1998\1\ ($121,800,000)

Budget estimate, 1999\2\ (175,715,000)

Committee recommendation (165,215,000)

\1\Does not reflect reduction pursuant to section 320 of Public

Law 105 66.

\2\Proposed without limitations.

The Transportation Administrative Service Center [TASC] provides a

business operation fund for DOT to provide a wide range of

administrative services to the Department and other customers. TASC

functions as an entrepreneurial and self-sufficient entity and provides

competitive quality services responsive to customer needs. The TASC is

governed by a Board of Directors composed of customer agencies operating

in a competitive business-like environment. The TASC presents proposed

operating and financial plans to the Board at the beginning of each

fiscal year. Once the Board has approved those plans the TASC provides

products and services to its full customer base. The Director of TASC

provides quarterly performance and financial reports to the Board, makes

recommendations for changes to the approved plans and is responsible for

the day-to-day management of the TASC. DOT administrations must procure

consolidated administrative services from the TASC unless a financial

analysis of the services demonstrates that it is more cost beneficial to

the Department as a whole--not to an individual operating entity

alone--to change the nature of the service delivery (to consolidate a

service or to decentralize a service). TASC services are being marketed

to customers outside DOT to provide greater economies of scale, thus

reducing costs to individual customers. TASC services include:

--Functions formerly in DOT's working capital fund [WCF];

--Office of the Secretary [OST] personnel, procurement and

information technology support operations;

--Systems development staff;

--Operations of the consolidated departmental dockets facilities; and

--Certain departmental services and administrative operations, such

as human resources management programs, transit fare subsidy payments,

and employee wellness including substance awareness and testing.

All of the services of the TASC will be financed through customer

reimbursements, to the extent possible, on a fee-for-service basis.

The bill includes language that includes a limitation on activities

financed through the transportation administrative service center at

$165,215,000. The limitation shall not apply to non-DOT entities and the

Committee directs that activities shall be provided on a competitive

basis. Further, the Committee directs that the Department shall submit

with the Department's congressional budget submission an approved annual

operating plan of the transportation administrative service center and

quarterly reports to the House and Senate Committees on Appropriations.

ESSENTIAL AIR SERVICE AND RURAL AIRPORT IMPROVEMENT FUND

Appropriations, 1998 (mandatory authority)\1\ $50,000,000

Budget estimate, 1999 (mandatory authority) 50,000,000

Committee recommendation (mandatory authority) 50,000,000

\1\Transfer from FAA operations.

The Essential Air Service [EAS] and Rural Airport Improvement Program

provides funds directly to commuter/regional airlines to provide air

service to small communities that otherwise would not receive air

service and for rural airport improvement as provided by the 1996

Federal Aviation Reauthorization Act.

The Federal Aviation Reauthorization Act of 1996 authorizes

$100,000,000 in user fees for flights that fly over, but do not land in,

the United States. The first $50,000,000 of each year's fees go directly

to carry out the Essential Air Service Program and, to the extent not

used for essential air service, to improve rural airport safety. If

$50,000,000 in fees is not available, funding must be transferred from

other FAA appropriations to the EAS programs.

Many EAS points are located in remote rural areas: 57 of 69

communities served by the Essential Air Service Program are more than

100 highway miles from the nearest small, medium, or large hub airport.

Twenty-six more communities are located in Alaska, where, in all but two

cases, year-round road access does not exist, and in many instances does

not exist at all. Recognizing the critical importance of EAS service to

these communities, the Committee intends that service in Alaska not be

reduced. Without air service, such communities would be further isolated

from the Nation's economic centers.

Moreover, businesses are typically interested in locating in areas

that have convenient access to scheduled air service. Loss of service

would seriously hamper small communities' ability to attract new

business or even to retain those they now have, resulting in further

strain on local economies and loss of jobs.

The Committee has retained the general provision which limits the

number of communities that receive EAS funding by excluding points in

the 48 contiguous United States that are located fewer than 70 highway

miles from the nearest large or medium hub airport, or that require a

subsidy in excess of $200 per passenger unless such a point is more than

210 miles from the nearest large or medium hub airport.

The following table reflects the points currently receiving service

and the annual rates as of the end of March 1998. The $50,000,000

funding level is more than sufficient to maintain current service levels

and quality of service at the communities currently served by the EAS

program.

In the lower 48 States, the tables show distances that EAS

communities are from other air service centers and subsidy-per-passenger

calculations. The distance figures are shown to give a sense of the

degree of isolation of the communities, and the subsidy-per-passenger

figures are a rough measure of the cost of providing the service

compared to the number of passengers benefiting from the service.

Neither of those calculations are particularly relevant to Alaska.

First, only three of the 26 subsidized communities in Alaska have road

access to other air service. Thus, the Alaskan communities are clearly

among the most isolated in the Nation. In fact, many are islands and

would be all but cut off from the rest of the world without air service.

Second, any subsidy-per-passenger calculation would be highly

misleading, at best. While subsidy-per-passenger may be used as a crude

measure of cost benefit in the lower 48, in many of the subsidized EAS

markets the principal traffic being carried on the EAS flights is food

being delivered to the bush community. Thus, the whole community

benefits--indeed is fully dependent on--the EAS flights, not just the

few who may actually travel on the flights.

EAS SUBSIDY RATES AS OF JUNE 1, 1997 AND MARCH 1, 1998

States/communities Estimated mileage to nearest hub (small, medium, or large)\1\ Average daily enplanements at EAS point (year ending June 30, 1997) Annual subsidy rates as of June 1, 1997 Subsidy per passenger\2\ Current annual subsidy rates (March 1, 1998)

Arizona: 101 6.9 $155,369 $51 $411,217

Arkansas: 108 5.5 569,344 112 943,347

California: 234 26.0 151,450 12 189,043

Colorado: 162 16.6 (\3\) (\3\) (\3\)

Hawaii: Kamuela 39 4.4 292,061 181 335,454

Illinois: 126 5.1 182,319 62 218,783

Iowa: Ottumwa 85 4.5 382,072 181 458,485

Kansas: 149 9.9 146,225 28 611,661

Maine: 71 10.1 330,080 53 595,320

Michigan: 236 15.1 141,363 37 494,668

Minnesota: 121 (\5\) (\5\) (\5\) 678,375

Missouri: 138 14.1 108,120 24 295,466

Montana: 280 6.1 387,540 110 684,766

Nebraska: 256 3.9 346,863 296 797,133

Nevada: Ely 237 3.0 508,759 335 867,188

New Hampshire: Keene 56 5.3 382,283 132 737,926

New Mexico: 91 11.3 188,923 28 656,745

New York: 118 10.2 132,540 28 266,371

North Dakota: 396 12.7 415,506 53 678,375

Oklahoma: 84 5.1 381,517 121 767,398

Pennsylvania: Oil City/Franklin 86 24.2 118,373 9 243,923

South Dakota: 57 (\5\) (\5\) (\5\) 678,375

Texas: Brownwood 138 2.9 499,109 227 807,717

Utah: 178 21.8 292,882 26 577,538

Vermont: Rutland 69 10.6 382,283 62 737,926

Washington: Ephrata/Moses Lake 108 40.8 177,628 9 219,483

West Virginia: 173 8.5 270,835 60 618,017

Wyoming: 144 35.3 (\3\) (\3\) (\3\)

\1\Hub designations are recalculated annually and published by the FAA in the Airport Activity Statistics. The above distances are based on the 1997 Airport Activity Statistics, which is based on calendar year 1996 passenger data.

\2\Rounded to the nearest dollar.

\3\Subsidy rate under negotiation.

\4\There was an extended service hiatus during the year ended June 30, 1997; thus, no meaningful calculation can be made.

\5\Either no service or subsidy rate in place.

NOTE.--The Department has authorized subsidy for service levels that meet at least the statutory minimums beginning in fiscal year 1998, that is, October 1, 1998. The enplanements per day, on the other hand, reflect the subminimum service levels of ten round trips a week.

GSA RENTAL PAYMENTS

[Dollars and square feet in thousands]

Administration Fiscal year 1997 enacted\1\ Fiscal year 1997 GSA billings Fiscal year 1998 estimate Fiscal year 1999 estimate

Funding Square feet Funding Square feet Funding Square feet

Federal Highway Administration [$17,294] [1,078] [$17,369] $17,480 1,077 $17,922 1,076

National Highway Traffic Safety Administration 217 4,361 4,234 217 4,042 206

Federal Railroad Administration 143 4,075 2,930 123 2,753 112

Federal Transit Administration 152 3,091 3,239 155 3,030 140

Federal Aviation Administration 4,170 68,833 67,500 4,047 77,887 4,226

U.S. Coast Guard 2,363 35,886 36,472 2,367 35,285 2,321

St. Lawrence Seaway Development Corporation 10 198 199 10

Research and Special Programs Administration 105 2,041 2,075 106 1,965 98

Office of Inspector General 110 2,202 2,350 110 2,186 100

Office of the Secretary of Transportation [OST] 302 6,334 6,215 284 6,045 270

Transportation Administrative Service Center 304 6,455 6,640 300 8,982 386

Bureau of Transportation Statistics 24 489 660 24 750 25

OST rental payments to GSA 127,447 7,900 133,965

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

Subtotal 127,447 7,900 133,965 149,994 8,820 160,847 8,960

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

Federal Highway Administration 17,294 1,078 17,369

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

Subtotal, consolidated account 144,741 8,978 151,334

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

Maritime Administration 4,433 286 4,361 4,684 286 4,364 287

Surface Transportation Board 1,471 56 1,471 1,488 56 1,517 56

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

Total, Department of Transportation 150,645 9,320 157,166 156,166 9,162 166,728 9,303

\1\Enacted as a single account under the Office of the Secretary of Transportation. Fiscal year 1997 directed the reimbursement of FHWA GSA rent from FHWA LGOE account to the consolidated account. Requirements for fiscal year 1997 are best represented by the actual billings. There was no distribution made of the enacted amount of $144,741,000.

MINORITY BUSINESS RESOURCE CENTER PROGRAM

Appropriations, 1998 $1,900,000

Budget estimate, 1999 1,900,000

Committee recommendation 1,900,000

Office of Small and Disadvantaged Business Utilization

[OSDBU]/Minority Business Resource Center [MBRC]. --The OSDBU/MBRC

provides assistance in obtaining short-term working capital and bonding

for disadvantaged, minority, and women-owned businesses [DBE/MBE/WBE's].

In fiscal year 1999, the short-term loan program will continue to focus

on the lending of working capital to DBE/MBE/WBE's for

transportation-related projects in order to strengthen their competitive

and productive capabilities.

The Committee encourages the Minority Business Resource Center to

work with Stillman College to assist students in understanding the

opportunities and challenges facing young entrepreneurs in the

transportation industry.

Since fiscal year 1993, the loan program has been a separate line

item appropriation, which segregated such activities in response to

changes made by the Federal Credit Reform Act of 1990. The limitation on

direct loans under the Minority Business Resource Center is at the

administration's requested level of $13,775,000.

Of the funds appropriated, $1,500,000 covers the direct subsidy costs

for loans not to exceed $13,775,000; and, $400,000 is for administrative

expenses to carry out the Direct Loan Program.

MINORITY BUSINESS OUTREACH

Appropriations, 1998 $2,900,000

Budget estimate, 1999 2,900,000

Committee recommendation 2,900,000

This appropriation provides contractual support to assist minority

business firms, entrepreneurs, and venture groups in securing contracts

and subcontracts arising out of projects that involve Federal spending.

It also provides support to historically black and Hispanic colleges.

Separate funding is requested by the administration since this program

provides grants and contract assistance that serves DOT-wide goals and

not just OST purposes.

AMTRAK REFORM COUNCIL

Appropriations, 1998\1\ $2,450,000

Budget estimate, 1999\2\ 500,000

Committee recommendation 450,000

\1\Of the amount provided, $1,970,000 was utilized for the

contract on the independent assessment of Amtrak, required by sections

202 and 409 of the Amtrak Reform and Accountability Act (Public Law 105

134); and $400,000 was transferred to the DOT inspector general for new

responsibilities associated with section 409(c) of Public Law 105 134,

leaving a balance for the Council of approximately $80,000.

\2\In the administration's budget request, both the independent

assessment of Amtrak's financial status and the Amtrak Reform Council

are to be funded within this requested amount. This funding was

requested as part of the capital grants to the National Passenger

Railroad Corporation.

The Committee recommends an appropriation of $450,000 for necessary

expenses of the Amtrak Reform Council [ARC]. Initial funding for the ARC

was provided in the fiscal year 1998 supplemental appropriations bill,

Public Law 105 174.

The Amtrak Reform and Accountability Act of 1997 [ARAA] directs the

establishment of an independent commission to be known as the Amtrak

Reform Council. The ARC consists of 11 members, including four Senate

appointees, four House appointees, two Presidential appointees, and the

Secretary of Transportation. To date, the ARC slate has not been

filled--one of the Presidential appointees has not yet been named.

However, the ARC has begun meeting and coordinating with the DOT

inspector general and other interested parties. The ARC members serve

without pay, but receive travel expenses and per diem.

Under the ARAA, the responsibilities of the ARC include evaluating

Amtrak's performance and making recommendations to Congress and Amtrak

for achieving further cost containment, productivity improvements, and

financial reforms. The most important tool for the ARC's evaluation of

Amtrak's performance will be the independent assessment of Amtrak's

financial requirements through the end of fiscal year 2002, as required

in section 202 of the ARAA. The contract for the independent assessment

was let on May 5, 1998, to Battelle Memorial Institute, and will be

completed in early November. The contractor is reviewing Amtrak's

financial reports, business planning documents, and management

consultant studies in order to develop a comprehensive assessment of

Amtrak's financial condition. This will independently verify Amtrak's

accounting methods, to determine whether assumptions made by Amtrak, on

which the Corporation has built their strategic business plan, can be

successfully borne out in future operating and capital investment

decisions.

PAGE 2 105th Congress Legislation Index