Senate Report 105-55

"Department of Transportation and Related Agencies Appropriations Bill"

                                               42 275 cc                                

                                 Calendar No. 121                            

                            105 th Congress                             

                                 Report                                 

                                                                             

                                 SENATE                                 

                              1st Session                               

                                 105 55                                 
        
 DEPARTMENT OF TRANSPORTATION AND RELATED AGENCIES APPROPRIATIONS BILL,  
                                  1998                                   
                                                                         

                  July  22, 1997--Ordered to be printed                  

                                                                         

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

                          [To accompany S. 1048]                         


      The Committee on Appropriations reports the bill (S. 1048) making    
   appropriations for the Department of Transportation and related agencies
   for the fiscal year ending September 30, 1998, and for other purposes,  
   reports favorably thereon and recommends that the bill do pass.         

Amounts of new budget (obligational) authority for fiscal year 1998     



          Amount of bill as reported to Senate                $12,610,422,883



          Amount of budget estimates, 1998                13,115,727,000



          Fiscal year 1997 enacted                11,109,835,396


                            C O N T E N T S                             
         Total obligational authority                                                               4
         Salaries and expenses                                                                      7
         Office of Civil Rights                                                                     7
         Transportation planning, research, and development                                         8
         Transportation Administrative Service Center                                               8
         Payments to air carriers                                                                   9
         Rental payments                                                                            12
         Minority Business Resource Center Program                                                  15
         Minority business outreach                                                                 15
         Operating expenses                                                                         21
         Acquisition, construction, and improvements                                                26
         Environmental compliance and restoration                                                   32
         Port safety development                                                                    32
         Alteration of bridges                                                                      33
         Retired pay                                                                                33
         Reserve training                                                                           33
         Research, development, test, and evaluation                                                34
         Boat safety                                                                                35
         Operations                                                                                 36
         Facilities and equipment                                                                   44
         Research, engineering, and development                                                     65
         Grants-in-aid for airports                                                                 69
         Aircraft Purchase Loan Guarantee Program                                                   83
         Limitation on general operating expenses                                                   84
         Motor carrier safety operations                                                            85
         Highway-related safety grants                                                              90
         Federal-aid highways                                                                       91
         Right-of-way revolving fund                                                                98
         Motor carrier safety grants                                                                98
         State infrastructure banks                                                                 99
         Operations and research                                                                    101
         Highway traffic safety grants                                                              105
         Office of the Administrator                                                                108
         Railroad safety                                                                            110
         Railroad research and development                                                          111
         Northeast Corridor Improvement Program                                                     114
         Railroad Rehabilitation Improvement Program                                                116
         Next generation high-speed rail                                                            116
         Alaska railroad rehabilitation                                                             118
         Rhode Island rail development                                                              118
         Direct loan financing program                                                              119
         Grants to National Railroad Passenger Corporation (Amtrak)                                 119
         Administrative expenses                                                                    123
         Formula grants                                                                             126
         University transportation centers                                                          127
         Transit planning and research                                                              127
         Trust fund share of transit programs                                                       129
         Discretionary grants                                                                       129
         Mass transit capital fund                                                                  143
         Operations and maintenance                                                                 144
         Research and special programs                                                              146
         Pipeline safety                                                                            150
         Emergency preparedness grants                                                              152
         Salaries and expenses                                                                      153
         Salaries and expenses                                                                      155
         Architectural and Transportation Barriers Compliance Board: Salaries and       expenses    157
         National Transportation Safety Board: Salaries and expenses                                157
         General provisions                                                                         160
         Compliance with paragraph 7, rule XVI, of the Standing Rules of the Senate                 162
         Compliance with paragraph 7(c), rule XXVI, of the Standing Rules of the Senate             162
         Compliance with paragraph 12, rule XXVI of the Standing Rules of the Senate                163
         Budgetary impact statement                                                                 164


            TOTAL OBLIGATIONAL AUTHORITY PROVIDED--GENERAL FUNDS AND TRUST FUNDS  

      In addition to the appropriation of $12,610,422,883 in new budget    
   authority for fiscal year 1998, 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 1998, estimated         
   obligation limitations total $28,081,300,000.                           
                               PROGRAM, PROJECT, AND ACTIVITY                     

      During fiscal year 1998, for the purposes of the Balanced Budget and 
   Emergency Deficit Control Act of 1985 (Public Law 99 177), as amended,  
   with respect to appropriations contained in the accompanying bill, the  
   terms ``program, project, and activity'' shall mean any item for which a
   dollar amount is contained in 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.                              
                     ISTEA AUTHORIZATIONS EXPIRATION                     

      The Intermodal Surface Transportation Efficiency Act provides        
   authorizations for most Federal highway, transit, and highway safety    
   programs, and most of those authorizations are contract authority. That 
   means 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.                                                         
      ISTEA authorized these Federal surface transportation programs       
   through fiscal year 1997, and the Congress must reauthorize these       
   programs in order to create new contract authority for fiscal year 1998 
   and later years. The Congress has begun the process to reauthorize      
   ISTEA, but neither the Senate nor the House has passed reauthorization  
   legislation. Until such legislation is enacted, there will not be new   
   contract authority to fund such surface transportation programs as the  
   Federal-aid highway program, transit discretionary grants, or highway   
   safety grants, although any unobligated balances from prior years will  
   carry over and be available for obligation.                             
      In developing fiscal year 1998 appropriations legislation for the    
   Federal surface transportation programs authorized by ISTEA, the        
   Committee has generally assumed continuation of current law. If, as the 
   ISTEA reauthorization process moves forward, the Congress decides to    
   make changes to these programs, there may need to be associated changes 
   to the appropriations language for these programs.                      
                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 is due by the end of    
   September 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. Performance measures have been       
   identified for most of the Department's major programs, and the         
   Department has briefed staff of this Committee and others on these      
   measures. The Department has distributed a draft strategic plan and     
   invited comments from its stakeholders as part of the consultation      
   process required by law. The draft strategic plan represents a          
   commendable effort that builds on the Department's efforts to identify  
   program performance measures and articulates broad goals and objectives 
   for the array of departmental programs. The Committee is disappointed,  
   however, that the draft plan does not set out priorities among those    
   goals and objectives. Setting priorities among such a broad array of    
   goals and objectives is a challenging and controversial task, but the   
   Committee is convinced that a plan with as many goals and objectives as 
   the Department's draft plan that lacks a priority scheme is, in the end,
   no plan at all. As OMB Director Raines said in a recent discussion of   
   the Results Act, ``This is an era of fiscal limits. Resources are       
   scarce. Not every priority can be met nor all needs satisfied. Every    
   program must count.'' The Committee, therefore, strongly urges the      
   Secretary to consult with this Committee and others in Congress and the 
   Department's stakeholders, before the strategic plan is finalized, to   
   identify priorities among the Department's goals and objectives. If the 
   Secretary and the Congress agree on the Department's priorities, this   
   Committee can work more effectively with the Department in the          
   appropriations process to ensure resources are allocated in a manner    
   best suited to achieving those priorities.                              
      As the Department moves forward with implementation of the Results   
   Act, the Committee understands that revisions and realignments to       
   current budgetary presentations will be likely to ensure consistency    
   with strategic and annual performance plans. The Committee strongly     
   encourages the Department to develop and propose such revisions, and to 
   present any necessary reconciliation and crosswalks, to ensure that     
   fiscal year 1999 and subsequent budget submissions display amounts      
   requested against program activity structures for which annual          
   performance goals and indicators have been established. The Committee   
   further expects that the Department will develop any needed revisions to
   account and program activity structures in consultation with the        
   Committee on Appropriations and cognizant authorizations committees.    

                           TITLE I--DEPARTMENT OF TRANSPORTATION                  

                                  OFFICE OF THE SECRETARY                         

                                   SALARIES AND EXPENSES                          




          Appropriations, 1997           \1\$52,966,000



          Budget estimate, 1998                56,136,000



          Committee recommendation                66,703,000


                  \1\Does not include reduction for TASC pursuant to section 321 
         of Public Law 104 205.                                                  


      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 $66,703,000 for the salaries and 
   expenses of the Office of the Secretary of Transportation including     
   $40,000 for reception and representation expenses.                      
                              Bill Language                              

       User fees .--The Committee has included bill language which permits 
   the Office of the Secretary to credit to this account $1,000,000 in user
   fees.                                                                   
                                   OFFICE OF CIVIL RIGHTS                         




          Appropriations, 1997           \1\$5,574,000



          Budget estimate, 1998                5,574,000



          Committee recommendation                5,574,000


                  \1\Does not include reduction for TASC pursuant to section 321 
         of Public Law 104 205.                                                  


      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 total of $5,574,000 for the Office of   
   Civil Rights.                                                           
                     TRANSPORTATION PLANNING, RESEARCH, AND DEVELOPMENT           




          Appropriations, 1997           \1\$3,000,000



          Budget estimate, 1998                6,008,000



          Committee recommendation                4,400,000


                  \1\Does not include reduction for TASC pursuant to section 321 
         of Public Law 104 205.                                                  


      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.                                                      
      The Committee has reduced the administration's request by $1,608,000.
   The recommended level includes $300,000 for reimbursement to the Bureau 
   of Transportation Statistics [BTS] for services provided by the Office  
   of Aviation Information. These funds should be tendered to BTS in the   
   first quarter of the fiscal year to assist BTS in defraying the costs of
   providing these and other services to OST.                              
       Transportation planning .--The recommended level includes funding   
   for transportation planning assistance for the 2002 Winter Olympics in  
   Salt Lake City and for a multimodal transportation study for Albuquerque
   and Santa Fe, NM.                                                       
       Safety standards relating to the use of antihistamines .--With funds
   appropriated during fiscal years 1996 97, the Department is preparing a 
   1998 public awareness campaign to combat the effect of fatigue, sleep   
   disorders, and inattention related to motor vehicle crashes. In addition
   to this important effort, the Committee believes that specific attention
   must be paid to raising awareness of the potential operator impairment  
   caused by various medications. The Federal Aviation Administration has  
   been very vigilant in its review of medication suitable for use by      
   pilots and safety-related personnel and has approved, for example, the  
   use of certain antihistamines for allergy relief that are nonsedating.  
   The Committee believes that other agencies within the Department, such  
   as NHTSA and the Office of Motor Carriers, should follow the lead of the
   FAA in this regard. Therefore, the Committee directs the Secretary to   
   provide by December 31, 1997, a report detailing his plan to develop    
   safety standards relating to the use of antihistamines in all           
   public/commercial modes of transportation.                              
                        TRANSPORTATION ADMINISTRATIVE SERVICE CENTER              




          Limitation, 1997               \1\($124,812,000)



          Budget estimate, 1998                ...........................



          Committee recommendation                ...........................


                  \1\Does not reflect reduction pursuant to section 321 of Public
         Law 104 205.                                                            


      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 cost-effective 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 Committee is directing the Office of the Inspector General to    
   undertake a study and report back to the Committee by April 1, 1998,    
   that evaluates the cost effectiveness of TASC and whether the TASC      
   provides quality services responsive to customer needs.                 

                                  PAYMENTS TO AIR CARRIERS                        

                 (liquidation of contract authorization)                 

                     (airport and airway trust fund)                     




          Appropriations, 1997           ($25,900,000)



          Budget estimate, 1998                ...........................



          Committee recommendation                ...........................



      In fiscal year 1998, this account is being terminated, and remaining 
   contract authority is being rescinded. The Essential Air Service Program
   is being funded in a new account (essential air service and rural       
   airport improvement fund), reflecting provisions of the Federal Aviation
   Reauthorization Act of 1996.                                            
      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. 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.                             

                  ESSENTIAL AIR SERVICE AND RURAL AIRPORT IMPROVEMENT FUND        




          Appropriations, 1997           ...........................



          Budget estimate, 1998 (mandatory authority)                $50,000,000



          Committee recommendation (mandatory authority)                50,000,000



      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.        
      The Committee recommendation includes a general provision which would
   limit 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 1997:                       

                                                                                                   RECENT EAS SUBSIDY DATA\1\                                                                                                   

States/communities                   Estimated mileage to nearest hub (small, medium, or large)    Average daily enplanements at EAS point (calendar year 1996)    Current annual subsidy rates (June 1, 1997)    Subsidy per passenger  

Arizona:                                                                                    101                                                             5.8                                       $155,369                   $51.26  
Arkansas:                                                                                   108                                                             7.0                                        569,344                   112.48  
California:                                                                                 234                                                            25.1                                        151,450                    11.58  
Colorado:                                                                                   258                                                            36.4                                        210,544                    31.34  
Hawaii: Kamuela                                                                              39                                                             3.1                                        292,061                   180.84  
Illinois:                                                                                   126                                                             5.7                                        182,319                    61.62  
Iowa: Ottumwa                                                                                85                                                             4.0                                        382,072                   181.16  
Kansas:                                                                                     149                                                            10.1                                        146,225                    27.70  
Maine:                                                                                       71                                                            12.0                                        330,080                    52.57  
Michigan:                                                                                   236                                                            21.2                                        141,363                    37.26  
Minnesota:                                                                                  127                                                           (\3\)                                          (\3\)                    (\3\)  
Missouri:                                                                                   138                                                            13.1                                        108,120                    24.02  
Montana:                                                                                    280                                                             6.7                                        387,540                   110.25  
Nebraska:                                                                                   256                                                             2.2                                        346,863                   296.21  
Nevada: Ely                                                                                 237                                                             2.9                                        508,759                   335.37  
New Hampshire: Keene                                                                         56                                                             5.6                                        382,283                   131.82  
New Mexico:                                                                                  91                                                            12.9                                        188,923                    27.99  
New York:                                                                                   118                                                             9.0                                        132,540                    28.12  
North Dakota:                                                                               405                                                            15.0                                        415,506                    53.10  
Oklahoma:                                                                                    84                                                             6.0                                        381,517                   121.15  
Pennsylvania: Oil City/Franklin                                                              86                                                            25.5                                        118,373                     8.89  
South Dakota:                                                                               206                                                           (\3\)                                          (\3\)                    (\3\)  
Texas: Brownwood                                                                            138                                                             4.2                                        499,109                   226.56  
Utah:                                                                                       178                                                            21.8                                        292,882                    25.70  
Vermont: Rutland                                                                             69                                                            11.9                                        382,283                    61.51  
Washington: Ephrata/Moses Lake                                                              108                                                            38.7                                        177,628                     8.78  
West Virginia:                                                                              173                                                             8.6                                        270,835                    60.36  
Wyoming: Worland                                                                            164                                                             9.6                                        155,468                    31.01  

\1\The above list of communities is based on currently available data, and is subject to change for a number of reasons. Subsidy rates change as their 2-year rate terms expire throughout the year. In addition, air carriers submit passenger traffic data on a quarterly basis. Changes in both subsidy rates and traffic levels will, of course, change subsidy-per-passenger calculations. Further, some communities currently receiving subsidy-free service may require subsidy in the future while some currently subsidized communities may attain profitability and no longer require subsidy. Finally, hub designations are recalculated annually and published by the FAA in the ``Airport Activities Statistics.''  
\2\There was an extended service hiatus; thus, no meaningful calculation can be made.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
\3\No service or subsidy rate in place.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          

                                  PAYMENTS TO AIR CARRIERS                        

                  (rescission of contract authorization)                 

                     (airport and airway trust fund)                     




          Rescission, 1997                -$12,700,000



          Budget estimate, 1998                 -38,600,000



          Committee recommendation                 -38,600,000



      The Committee has included bill language which would continue the    
   current eligibility criteria for essential air service. In addition, the
   Department is encouraged to explore establishing dual EAS hubs in Kansas
   within the eligibility criteria and available funding.                  

                                      RENTAL PAYMENTS                             




          Appropriations, 1997           $127,447,000



          Budget estimate, 1998                10,567,000



          Committee recommendation                ...........................



      In 1996 and 1997 payments to the General Services Administration     
   [GSA] for headquarters and field space rental and related services for  
   all operating administrations were consolidated into this account.      
   Beginning in 1998, the administration proposes that all GSA rental      
   payments be included in the modal budgets. Therefore, the budget request
   includes funding only for OST utilized space and related services and   
   departmentwide facility security enhancements. The administration       
   believes that decentralized budgeting for rent will encourage the       
   operating administrations to reduce excess space. The Committee includes
   funding for rent, but has included the funding in the Office of the     
   Secretary salaries and expenses.                                        

                                                    GSA RENTAL PAYMENTS\1\                                                    
                                            [Dollars and square feet in thousands]                                            

                                  Administration  Fiscal year 1996 enacted\2\    Fiscal year 1996 GSA billings    Fiscal year 1997 projected\3\     Fiscal year 1998 request   

                                                  Funding           Square feet  Funding      Square feet         Funding      Square feet           

Federal Highway Administration                    [17,685]                       [17,112]     [18,005]            [1,070]           18,275    1,067  
National Highway Traffic Safety Administration                                   4,381        4,386               217                4,234      217  
Federal Railroad Administration                                                  3,493        4,955               212                2,955      156  
Federal Transit Administration                                                   3,237        3,304               152                3,239      153  
Federal Aviation Administration                                                  69,431       68,309              4,160             67,024    4,213  
U.S. Coast Guard                                                                 40,334       36,237              2,363             34,815    2,364  
St. Lawrence Seaway Development Corporation                                      193          196                 9                    150        9  
Research and Special Programs Administration                                     2,022        2,077               103                2,075      103  
Office of the Inspector General                                                  2,225        2,386               110                2,350      110  
Office of the Secretary of Transportation:                                       12,885       6,381               291                5,898      291  
Transportation Administrative Services Center                                                 6,526               321                6,640      321  
Bureau of Transportation Statistics                                              452          587                 26                   575       26  
OST--rental payments to GSA                       [135,200]                      [138,653]    [135,344]           [7,964]                            
                                                  -----------  ----------------  -----------  ------------------  ---------  -------------  -------  
Subtotal                                          135,200                        138,653      135,344             7,964            152,899    9,030  
Federal Highway Administration                    17,685                         17,112       18,005              1,070                              
                                                  -----------  ----------------  -----------  ------------------  ---------  -------------  -------  
Subtotal, consolidated account                    152,885                 8,580  155,765      153,349             9,034                              
Maritime Administration                           4,594                     298  4,433        4,465               299                4,684      299  
                                                  -----------  ----------------  -----------  ------------------  ---------  -------------  -------  
Total, Department of Transportation               157,479                 8,878  160,198      157,814             9,333            157,583    9,329  

\1\Enacted as a single account under the Office of the Secretary of Transportation. Fiscal years 1996 and 1997 appropriations directed the reimbursement of FHWA GSA rent from FHWA LGOE account to the consolidated account. The fiscal year 1998 budget proposes the termination of the consolidated rent account and the return of funding for space utilized by the operating administrations to their respective budgets  
\2\Fiscal year 1996 requirements are best represented by the actual billings. There is no distribution by mode of the enacted amounts of $152,885 and 8,580 square feet because they are less than our existing inventory. The shortfall of $3,500,000 for the consolidated account was covered by GSA.                                                                                                                        
\3\Fiscal year 1997 requirements are best represented by the projected billings. There is no distribution by mode of the enacted amounts of $144,741 and 8,580 square feet because they are less than our existing inventory.                                                                                                                                                                                                  


                         MINORITY BUSINESS RESOURCE CENTER PROGRAM                




          Appropriations, 1997           $1,900,000



          Budget estimate, 1998                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 1998, the short-term loan program will 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.                                                           
      Since fiscal year 1993, the loan program has been a separate line    
   item appropriation, which reflects the President's budget proposal,     
   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 $15,000,000.                                         
      The Department is projecting that the authorized loan level of       
   $15,000,000 will be reached in fiscal years 1998 and 1999. Of the funds 
   appropriated, $1,500,000 covers the direct subsidy costs for loans not  
   to exceed $15,000,000; and, $400,000 is for administrative expenses to  
   carry out the Direct Loan Program.                                      
                                 MINORITY BUSINESS OUTREACH                       




          Appropriations, 1997           $2,900,000



          Budget estimate, 1998                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.                                                  
                            General Provisions                           

       Political and Presidential appointees .--The Committee has included 
   a provision in the bill (sec. 305), which is similar to general         
   provisions that have been included in previous appropriations acts,     
   which limits the number of political and Presidential appointees within 
   the Department of Transportation. The Committee is recommending that the
   ceiling for fiscal year 1998 be 107 personnel.                          
       Advisory committees .--The Committee has included a general         
   provision (sec. 323) which would limit the amount of funds that could be
   used for the expenses of advisory committees utilized by the Department 
   of Transportation. The limitation specified is $1,000,000, which is     
   $250,000 below that enacted in fiscal year 1997.                        
       Minority business outreach program .--The bill includes a provision 
   in the bill (sec. 337) that would allow the repurchase of preferred     
   stock at a rate determined by the Secretary to facilitate the           
   administration of the Minority Business Resource Center Program and to  
   make more funds available for the underlying purposes of the program.   
                                  Other                                  

       Reductions in fiscal year 1997 appropriations .--In fiscal year     
   1997, reductions were made to a number of accounts due to limitations or
   reductions imposed in various areas, such as the Transportation         
   Administration Services Center, performance awards, and rescissions     
   required by the Omnibus Consolidated Appropriations Act of 1997 (Public 
   Law 104 208). In the Senate Committee report, each account head shows   
   the amount appropriated in Public Law 104 205 and Public Law 104 208,   
   before the various reductions were made. The table below depicts the    
   amount of funds appropriated for each of the accounts, and the          
   reductions required.                                                    


                                                CHANGES IN FISCAL YEAR 1997 DEPARTMENT OF TRANSPORTATION APPROPRIATIONS                                               

                                                                  Account                 Public Law 104 205                          Public Law 104 208           Net appropriation    

                                                                           Appropriations    TASC GP 321     Awards GP 346    Appropriations    Rescissions                        

Office of the Secretary:                                                   $52,966,000        -$1,458,200                                                         $51,507,800      
                                                                           ----------------  --------------  ---------------  ----------------  ----------------  ---------------  
Subtotal                                                                                      -1,553,804                                                                           
                                                                           ================  ==============  ===============  ================  ================  ===============  
U.S. Coast Guard:                                                          2,294,725,000      -2,026,805      -$3,000                                             2,292,695,195    
                                                                           ----------------  --------------  ---------------  ----------------  ----------------  ---------------  
Subtotal                                                                                      -2,026,805      -3,000                                                               
                                                                           ================  ==============  ===============  ================  ================  ===============  
Federal Aviation Administration:                                           4,900,000,000      -2,811,301      -176,888        $57,900,000                         4,954,911,811    
                                                                           ----------------  --------------  ---------------  ----------------  ----------------  ---------------  
Subtotal                                                                                      -2,811,301      -176,888        226,600,000                                          
                                                                           ================  ==============  ===============  ================  ================  ===============  
Federal Highway Administration:                                            (20,000,000)                                                         ( -9,100,000)     (10,900,000)     
                                                                           ----------------  --------------  ---------------  ----------------  ----------------  ---------------  
Subtotal                                                                                      -2,001,532      -178,512        82,000,000                                           
                                                                           ================  ==============  ===============  ================  ================  ===============  
National Highway Traffic Safety Administration:                            (171,000,000)                                                        ( -11,800,000)    (159,200,000)    
                                                                           ----------------  --------------  ---------------  ----------------  ----------------  ---------------  
Subtotal                                                                                      -597,812        -32,000                                                              
                                                                           ================  ==============  ===============  ================  ================  ===============  
Federal Railroad Administration:                                           16,739,000         -103,000        -4,000                                              16,632,000       
                                                                           ----------------  --------------  ---------------  ----------------  ----------------  ---------------  
Subtotal                                                                                      -170,979        -15,000         141,180,000                                          
                                                                           ================  ==============  ===============  ================  ================  ===============  
Federal Transit Administration: Administrative expenses                    41,497,000         -451,135        -4                                                  41,045,861       
                                                                           ================  ==============  ===============  ================  ================  ===============  
St. Lawrence Seaway Development Corporation: Operations and maintenance    10,337,000         -12,704         -2,000                                              10,322,296       
                                                                           ================  ==============  ===============  ================  ================  ===============  
Research and Special Programs Administration:                              26,886,000         -179,100        -3,900          3,000,000                           29,703,000       
                                                                           ----------------  --------------  ---------------  ----------------  ----------------  ---------------  
Subtotal                                                                                      -279,842        -5,200          3,000,000                                            
                                                                           ================  ==============  ===============  ================  ================  ===============  
Office of Inspector General: Salaries and expenses                         37,900,000         -94,086         -1,000                                              37,804,914       
                                                                           ================  ==============  ===============  ================  ================  ===============  
Bureau of Transportation Statistics\1\                                     (25,000,000)      ( -118,094)     ( -36,860)                                           24,845,046       
                                                                           ================  ==============  ===============  ================  ================  ===============  
Surface Transportation Board: Salaries and expenses                        12,344,000                         -100,000                                            12,244,000       
                                                                           ================  ==============  ===============  ================  ================  ===============  
Total reductions, Department of Transportation                                                -10,000,000     -513,604        452,780,000                                          

\1\BTS reductions in parentheses included under Federal-aid highways.                                                                                                

       Asset sales .--The Coast Guard and FAA, like many other agencies,   
   are reorganizing and downsizing while providing critical services to the
   public at less cost.                                                    
      The Committee believes that the Coast Guard, the FAA, the FHWA, and  
   the Government as a whole, would benefit substantially if allowed       
   budgetary credit for property they expect to excess as part of          
   downsizing efforts. Clearly, there is the potential for a very positive 
   benefit if the Coast Guard and the FAA are permitted to receive credit  
   for the value of excessed property.                                     
       Rebates, refunds, and incentive payments .--The Department receives 
   funds from various Government programs at different time intervals (that
   is, weekly, monthly, quarterly). For example, under the General Services
   Administration's Travel Management Center [TMC] Program, rebate checks  
   received from the travel contractor are distributed monthly to each     
   element of the Department in proportion to net domestic airline sales   
   arranged by the contractor. Past expenditures have to be analyzed to    
   determine the proper sources to refund which can be a time-consuming    
   process. The staff time and cost associated with the precise accounting 
   for each such refund is prohibitive. To alleviate the need to           
   specifically identify the source for each repayment the language allows 
   a fair and sensible allocation of the rebates and miscellaneous and     
   other funds.                                                            
      Many repayments are received late in the fourth quarter of the fiscal
   year or in the first quarter of the new fiscal year and thus are not    
   effectively available to the agency for new obligations. For example,   
   rebate checks for September travel are received from the travel         
   management contractor in October. To maintain good financial management 
   incentives and avoid injudicious commitments, this provision would      
   provide specific authority to use rebated funds for program purposes    
   beyond the fiscal year of the appropriation charged for the initial     
   payment.                                                                

                                      U.S. COAST GUARD                            

                           SUMMARY OF FISCAL YEAR  1998  PROGRAM                  

      The U.S. Coast Guard, as it is known today, was established on       
   January 28, 1915, through the merger of the Revenue Cutter Service and  
   the Lifesaving Service. In 1939, the U.S. Lighthouse Service was        
   transferred to the Coast Guard, followed by the Bureau of Marine        
   Inspection and Navigation in 1942. The Coast Guard has as its primary   
   responsibilities the enforcement of all applicable Federal laws on the  
   high seas and waters subject to the jurisdiction of the United States;  
   promotion of safety of life and property at sea; assistance to          
   navigation; protection of the marine environment; and maintenance of a  
   state of readiness to function as a specialized service in the Navy in  
   time of war (14 U.S.C. 1, 2).                                           
      The Committee recommends a total program level of $3,964,731,000 for 
   the activities of the Coast Guard in fiscal year 1998. The following    
   table summarizes the Committee's recommendations:                       

                                                                                                                                 
                                                    [In thousands of dollars]                                                    

Program                                          Fiscal year 1997 enacted\1\    Fiscal year 1998 estimate    Committee recommendations  

Operating expenses                                              \2\2,619,725                 \3\2,740,000                 \2\2,731,700  
Acquisition, construction, and improvements                          374,840                   \4\379,000                   \4\412,300  
Environmental compliance and restoration                              22,000                       21,000                       21,000  
Port safety development                                                5,000                                                            
Alteration of bridges                                                 16,000                                                    26,000  
Retired pay                                                          617,284                      645,696                      653,196  
Reserve training                                                      65,890                       65,000                       65,535  
Research, development, test, and evaluation                           19,200                       19,000                       20,000  
Boat safety                                                           35,000                       55,000                       35,000  
                                               -----------------------------  ---------------------------  ---------------------------  
        Total                                                           3,774,939                    3,924,696                    3,964,731  

\1\Excludes reductions pursuant to sections 321 and 346 of Public Law 104 205.                                                  
\2\Includes $300,000,000 in Department of Defense Appropriations Act.                                                           
\3\Includes $300,000,000 from defense discretionary funds.                                                                      
\4\Excludes $9,000,000 in proposed asset sales.                                                                                 

                                     OPERATING EXPENSES                           


                                                                               

                                        General          Trust             Total  

    Appropriations, 1997\1\          $2,594,725,000    $25,000,000    $2,619,725,000  
    Budget estimate, 1998\2\          2,715,000,000     25,000,000     2,740,000,000  
    Committee recommendation\3\       2,706,700,000     25,000,000     2,731,700,000  

\1\Includes $300,000,000 by transfer from the Department of Defense. Excludes reductions for TASC and awards pursuant to sections 321 and 346 of Public Law 104 205.  
\2\Includes $300,000,000 from defense discretionary funds.                                                                                                            
\3\Includes $300,000,000 by transfer from the Department of Defense.                                                                                                  


      The ``Operating expenses'' appropriation provides funds for the      
   operation and maintenance of multipurpose vessels, aircraft, and shore  
   units strategically located along the coasts and inland waterways of the
   United States and in selected areas overseas.                           
      The program activities of this appropriation fall into the following 
   categories:                                                             
       Search and rescue. --One of its earliest and most traditional       
   missions, the Coast Guard maintains a nationwide system of boats,       
   aircraft, cutters, and rescue coordination centers on 24-hour alert.    
       Aids to navigation. --To help mariners determine their location and 
   avoid accidents, the Coast Guard maintains a network of manned and      
   unmanned aids to navigation along our coasts and on our inland          
   waterways, and operates radio stations in the United States and abroad  
   to serve the needs of the armed services and marine and air commerce.   
       Marine safety. --The Coast Guard insures compliance with Federal    
   statutes and regulations designed to improve safety in the merchant     
   marine industry and operates a recreational boating safety program.     
       Marine environmental protection. --The primary objectives of this   
   program are to minimize the dangers of marine pollution and to assure   
   the safety of U.S. ports and waterways.                                 
       Enforcement of laws and treaties. --The Coast Guard is the principal
   maritime enforcement agency with regard to Federal laws on the navigable
   waters of the United States and the high seas, including fisheries, drug
   smuggling, illegal immigration, and hijacking of vessels.               
       Ice operations. --In the Arctic and Antarctic, Coast Guard          
   icebreakers escort supply ships, support research activities and        
   Department of Defense operations, survey uncharted waters, and collect  
   scientific data. The Coast Guard also assists commercial vessels through
   ice-covered waters.                                                     
       Defense readiness. --During peacetime the Coast Guard maintains an  
   effective state of military preparedness to operate as a service in the 
   Navy in time of war or national emergency at the direction of the       
   President. As such the Coast Guard has primary responsibility for the   
   security of ports, waterways, and navigable waters up to 200 miles      
   offshore.                                                               
                              COMMITTEE FUNDING RECOMMENDATION                    

      The Committee recommendation for Coast Guard operating expenses is   
   $2,731,700,000, including $25,000,000 from the oilspill liability trust 
   fund and $300,000,000 from the Defense appropriations bill for national 
   security missions.                                                      

                                                                                                                                  
                                                     [In thousands of dollars]                                                    

                                                              Fiscal year 1997 enacted\1\    Budget request    Committee recommendation  

Pay and allowances:                                                             1,221,311         1,252,440                   1,252,440  
                                                            -----------------------------  ----------------  --------------------------  
Total, pay and allowances                                                       1,591,249         1,635,898                   1,635,898  
                                                            =============================  ================  ==========================  
Depot level maintenance:                                                          144,276           154,659                     154,659  
                                                            -----------------------------  ----------------  --------------------------  
Total, depot level maintenance                                                    375,305           395,990                     395,990  
                                                            =============================  ================  ==========================  
Operations and support:                                                                                                                  
 Area operations and support:                                                                                                             
  Cutters:                                                                                                                                 
 Medium endurance (WMEC)                                                            17,803            18,939                      18,939  
 High endurance (WHEC)                                                              11,529            11,944                      11,944  
 Polar WAGB's                                                                        2,380             2,858                       2,858  
Area offices                                                                       18,062            18,400                      18,400  
Maintenance and logistics commands                                                136,137           130,469                     122,169  
Communication stations                                                              2,236             2,335                       2,335  
 District operations and support:                                                                                                         
District offices                                                                   46,898            47,395                      47,395  
Groups/bases                                                                       67,196            69,112                      69,112  
Combined group/air station                                                          9,928            10,281                      10,281  
Air stations                                                                       45,373            49,820                      49,820  
Marine safety offices                                                               9,926            10,104                      10,104  
Long-range electronic navaids (Loran)                                               6,283             6,362                       6,362  
Cutters-WLB's and smaller;  Mackinaw                                               31,761            34,504                      34,504  
Vessel traffic service [VTS] systems                                                  241               244                         244  
                                                            -----------------------------  ----------------  --------------------------  
Total, operations and support                                                     408,365           415,406                     407,106  
                                                            =============================  ================  ==========================  
Recruiting and training support:                                                    6,767             7,313                       7,313  
                                                            -----------------------------  ----------------  --------------------------  
Total, recruiting and training support                                             67,733            76,275                      76,275  
                                                            =============================  ================  ==========================  
Coast Guard-wide centralized services and support:                                                                                       
 Headquarters-managed units:                                                                                                              
Engineering Logistics Center                                                        8,052             8,157                       8,157  
Finance center                                                                      4,786             4,843                       4,843  
Human Resources Service and Information Center                                      1,371             1,391                       1,391  
Coast Guard yard                                                                    2,771             2,846                       2,846  
National Strike Force                                                               2,099             2,114                       2,114  
National Pollution Funds Center                                                     1,080             1,118                       1,118  
Command and Control Engineering Center [C\2\CEN]                                    2,584             3,522                       3,522  
Air station Washington, DC                                                            773               871                         871  
Operations Systems Center [OSC]                                                     7,200             7,229                       7,229  
Telecommunications/information systems command [TISCOM]                             4,116             4,138                       4,138  
Navigation Center [NAVCENT]                                                         1,896             1,899                       1,899  
Intelligence Coordination Center [ICC]                                                189             1,458                       1,458  
Electronics Engineering Center [EECEN]                                              2,304               346                         346  
Coast Guard Institute                                                                 968               979                         979  
Research and Development Center                                                       243               246                         246  
Coast Guard Personnel Center                                                          957               970                         970  
National Maritime Center                                                            3,246             3,287                       3,287  
 Centralized bill paying:                                                                                                                 
Postal                                                                              6,297             6,431                       6,431  
FTS                                                                                11,544            12,344                      12,344  
Federal employment compensation                                                     6,486             6,452                       6,452  
Unemployment compensation                                                           5,250             4,639                       4,639  
GSA rent                                                                                             35,748                      35,748  
                                                            -----------------------------  ----------------  --------------------------  
Total, Coast Guard-wide centralized services and support                          175,043           216,431                     216,431  
                                                            =============================  ================  ==========================  
Total, accountwide adjustments                                                             ================  ==========================  
                                                            =============================                                                
Total appropriation                                                             2,617,695         2,740,000                   2,731,700  

\1\Includes reduction of $2,030,000 for TASC and awards pursuant to sections 321 and 346 of Public Law 104 205.                          
Note.--Fiscal year 1997 enacted and fiscal year 1998 request includes $300,000,000 provided by transfer from the Department of Defense.  


                            PAY AND ALLOWANCES                           

       Medical care and equipment .--The Committee has provided the full   
   amount requested for medical care and equipment. The Committee feels    
   that the Coast Guard has done a good job to keep its medical care and   
   equipment line item under budget.                                       
                          OPERATIONS AND SUPPORT                         

           Area operations and support                                             

       Maintenance and logistics commands .--The Committee has provided the
   amount requested for the maintenance and logistics commands less the    
   caretaker fund requested for Governor's Island. The Committee encourages
   the Coast Guard to auction the Governor's Island property as quickly as 
   possible. The sale of the Governor's Island facility was anticipated in 
   the budget agreement and the Committee has provided bill language that  
   relieves the Coast Guard from the responsibility for maintaining the    
   property in caretaker status.                                           
                     RECRUITING AND TRAINING SUPPORT                     

      The recruiting and training support category has several subsets,    
   including recruiting, training centers (Yorktown, VA; Petaluma, CA; and 
   Cape May, NJ), the Coast Guard Academy, and professional training and   
   education. The Committee has provided $76,275,000 consistent with the   
   budget request. The Committee believes that the Coast Guard has done a  
   good job in trying to hold costs down, and though its budget for        
   professional training and education is sizable, further cuts are not    
   necessary at this time and would undermine the Coast Guard's efforts to 
   recruit and train to meet personnel needs in a streamlined Coast Guard. 
                     CENTRALIZED SERVICES AND SUPPORT                    

      The centralized services and support line item includes a number of  
   individual activities. The Committee has provided $216,431,000 overall  
   for centralized services and support. The recommendation provides a     
   $41,388,000 increase over the fiscal year 1997 level for this           
   subactivity.                                                            
                              BILL LANGUAGE                              

       National security .--The Committee's recommendation includes        
   $300,000,000 transferred from the Department of Defense for Coast Guard 
   support of national security activities. The Coast Guard plays a key    
   role in support of military missions under the U.S. Atlantic and        
   Southern Commands in support of drug interdiction missions, refugee and 
   immigration support, and enforcement and joint military training.       
      The Coast Guard is a cost-effective force which is multimissioned.   
   Its ships, aircraft, shore units, and people have four primary roles:   
   maritime safety, maritime law enforcement, marine environmental         
   protection, and national defense. These roles are complementary and     
   contribute to the Coast Guard's unique niche within the national        
   security community. The value of the Coast Guard forces and their       
   mission experience was clearly evident by their active participation in 
   Operations Desert Shield/Storm in the Persian Gulf, and more recently,  
   in operations restore/uphold democracy in Haiti. The Coast Guard is one 
   of the five Armed Forces, and is a full partner on the joint national   
   security team. To be a credible partner, the Coast Guard must maintain a
   high state of operational readiness. Many parts of the Coast Guard's    
   budget contain funding requests that, if cut, would severely impair the 
   Coast Guard's operational readiness and, therefore, its ability to meet 
   national security commitments.                                          
                            GENERAL PROVISIONS                           

       Vessel traffic safety fairway, Santa Barbara/San Francisco .--The   
   Committee has included a general provision (sec. 313) that would        
   prohibit funds to plan, finalize, or implement regulations establishing 
   a vessel traffic safety fairway which is less than 5 miles wide between 
   the Santa Barbara vessel traffic separation scheme and the San Francisco
   vessel traffic separation scheme. This language has been included in    
   previous appropriations bills.                                          
       Regulations regarding animal fats and vegetable oils .--The         
   Committee has retained a general provision (sec. 335) that prohibits    
   Coast Guard from using funds to issue, implement, or enforce a          
   regulation that fails to provide for the differences between animal     
   fats, vegetable oils, and other oils.                                   
                                  OTHER                                  

       Mackinaw .--The bill includes the $4,865,000 in requested funding   
   for continued operation and maintenance of the icebreaking cutter       
   Mackinaw during fiscal year 1998. The Committee discourages the         
   administration from pursuing proposals to charge user fees for          
   icebreaking services.                                                   
       Marine Fire and Safety Association .--The Committee remains         
   supportive of efforts by the Marine Fire and Safety Association [MFSA]  
   to provide specialized fire fighting training and maintain an oilspill  
   response contingency plan for the Columbia River. The Committee         
   encourages the Secretary to provide funding for MFSA consistent with the
   authorization and directs the Secretary to provide $146,500 to continue 
   efforts by the MFSA to provide specialized communications, fire fighting
   training and equipment, and to implement the oilspill response          
   contingency plan for the Columbia River.                                
       Defense readiness .--The Committee has provided the requested       
   $34,300,000 increase in resources for the war on drugs. It should be    
   left to the Commandant's discretion how the drug interdiction funding is
   to be distributed; however, the Committee believes that this area is    
   perfectly suited for application of performance measures and evaluation 
   of program impacts.                                                     
       Civilian staffing .--The Coast Guard recently provided the Committee
   with a report analyzing its current personnel management structure to   
   determine whether greater use of civilians would be of benefit to the   
   agency. The report concludes that a military member costs more than a   
   civilian filling the same position; the cost differential representing  
   the premium paid for frontline, rapid-response capability in an         
   operational environment.                                                
      In the aftermath of completing a major streamlining initiative, the  
   Coast Guard must now conduct military position essentiality review. The 
   report outlines the criteria to be used in such a review, including:    
   deployment, command and control, operations, military skills,           
   jurisdiction of the Uniform Code of Military Justice, statutory         
   requirements, organizational structure, and unusual work hours. The     
   Committee is very interested in the ongoing process of the essentiality 
   review and the results flowing from that effort. The Coast Guard is to  
   be commended for the openness of the report and the Committee encourages
   the Coast Guard to pursue the essentiality review with the same         
   openness.                                                               

                        ACQUISITION, CONSTRUCTION, AND IMPROVEMENTS               


                                                                               

                                   General          Trust  Total           

    Appropriations, 1997          $354,840,000    $20,000,000  $374,840,000    
    Budget estimate, 1998          359,000,000     20,000,000  379,000,000     
Committee recommendation       392,300,000     20,000,000  412,300,000     

      This appropriation provides for the major acquisition, construction, 
   and improvement of vessels, aircraft, shore units, and aids to          
   navigation operated and maintained by the Coast Guard. Currently, the   
   Coast Guard has in operation approximately 250 cutters, ranging in size 
   from 65-foot tugs to 399-foot polar icebreakers, more than 2,000 boats, 
   and an inventory of more than 200 helicopters and fixed-wing aircraft.  
   The Coast Guard also operates approximately 600 stations, support and   
   supply centers, communications facilities, and other shore units. The   
   Coast Guard provides over 48,000 navigational aids--buoys, fixed aids,  
   lighthouses, and radio navigational stations.                           
                                  COMMITTEE RECOMMENDATION                        

      The following table summarizes the Committee's programmatic          
   recommendations:                                                        

                                                [In thousands of dollars]                                                

                                             Fiscal year 1997 enacted    Fiscal year 1998 estimate    Committee recommendation  

Vessels                                                       216,500                      186,900                     214,700  
Aircraft                                                       18,040                       26,400                      26,400  
Other equipment                                                41,700                       49,700                      51,200  
Shore facilities and aids to navigation                        52,350                       69,000                      73,000  
Personnel and related support                                  46,250                       47,000                      47,000  
                                           --------------------------  ---------------------------  --------------------------  
Total                                                         374,840                   \1\379,000                  \1\412,300  

\1\Includes $9,000,000 in proposed asset sales.                                                                         

                                          VESSELS                                 

      The Committee recommends $214,700,000 for vessel acquisition and     
   improvement. The projected allocation of these funds is shown in the    
   table below:                                                            

                                                        VESSELS                                                       
                                               [In thousands of dollars]                                              

                                                                    Fiscal year 1998 estimate    Committee recommendation  

Acquire vessels and equipment:                                                         55,000                      41,000  
Repair, renovate, or improve existing vessels and small boats:                          3,800                       3,800  
                                                                  ---------------------------  --------------------------  
Total (new program level)                                                             186,900                     214,700  

      The Committee recommends a funding level of $214,700,000 for vessels 
   procurement. This is an increase of $27,800,000 over the budget request.
   This level of funding is necessary to begin to relieve the out-year     
   pressure on the ACI account due to anticipated replacement of the       
   deepwater fleet. By increasing the procurement of current production    
   vessels, the Coast Guard will realize per unit savings and will create  
   out-year room for anticipated new procurements. In addition, the        
   increased procurement of vessels will provide the Coast Guard with      
   additional flexibility in positioning assets as the Coast Guard moves to
   a more modern generation of vessels. This flexibility will enable the   
   Coast Guard to better meet its multimission challenges and better deploy
   a streamlined force.                                                    
       Seagoing buoy tender [WLB] replacement .--The Coast Guard plans to  
   replace its 50-year-old fleet of seagoing buoy tenders with up to 16 new
   tenders. The request of $55,000,000 for fiscal year 1998 is to pay for  
   the award of the second ship under the full production contract, and to 
   cover additional costs such as spare parts, logistics, and project      
   administration. According to recent estimates, the contract for the     
   first two production ships will be awarded in the second quarter of     
   fiscal year 1998.                                                       
      The Committee is concerned about the growing carryover balances in   
   this program. Last year, the Committee restored much of the House       
   reductions in this account pursuant to the belief that the Coast Guard  
   would be able to obligate a substantial portion of the requested funds. 
   That has not happened. Accordingly, the Committee recommends a reduction
   of $14,000,000 in the request which can be made up by the $46,564,000   
   unobligated balance. This program continues to concern the Committee due
   to the increasing program administration costs, the vacillating         
   sail-away costs, and the current unobligated balance. The Coast Guard   
   estimates the first vessel in the class to have cost $49,400,000, and   
   the second vessel in the class to have cost $29,800,000. Assuming these 
   estimates are accurate, the funds provided are adequate to award a      
   contract in the second quarter of fiscal year 1998 for two vessels if   
   the lower cost is accurate or if the first two vessels under the        
   production contract have similar cost profiles of the first two vessels 
   in the class.                                                           
       Coastal buoy tender [WLM] replacement .--The Committee has provided 
   $21,000,000 for the coastal buoy tender replacement program. This       
   program replaces the Coast Guard's existing 133-foot and 157-foot       
   coastal buoy tenders with 14 new ships. The Coast Guard's request of    
   $21,000,000 for fiscal year 1998 is for economic price adjustments      
   change orders, logistics, and administration. All 14 ships have been    
   ordered. Based on recent information on the 1998 spending plans, it     
   appears that the Coast Guard should have virtually no unobligated       
   carryovers that could be used in fiscal year 1998 against this request. 
       Coastal patrol boat/82-foot WPB replacement .--The Committee has    
   provided $68,100,000 for the coastal patrol boat replacement program,   
   which is a $30,800,000 increase to the amount requested for fiscal year 
   1998. This program would replace the 82-foot coastal patrol boats which 
   are over 30 years old with 31 new boats. The request for fiscal year    
   1998 was to procure eight new boats.                                    
      The Committee recommendation is to procure an additional seven CPB's 
   by exercising existing options which will provide the Coast Guard       
   increased flexibility in asset deployment at an earlier date than under 
   the current procurement schedule. The CPB is one of the more versatile  
   vessels in the Coast Guard inventory and should provide increased       
   flexibility and capability as the Coast Guard transitions from the      
   current fleet mix and recapitalizes the fleet.                          
       Stern loading buoy boat replacement project .--The Committee        
   recommendation provides the entire Coast Guard request of $12,000,000 in
   fiscal year 1998 to procure eight new buoy boats.                       
       Mackinaw replacement .--The Committee recommends $2,000,000 for     
   concept exploration to refine the specifications and costs for a heavy  
   icebreaking replacement vessel, including a new multimission vessel, for
   the 53-year-old Mackinaw . While the Committee is pleased that the      
   Commandant has committed to the continued operation of the Mackinaw to  
   maintain heavy icebreaking capabilities on the Great Lakes, the         
   Committee is concerned about the long lead time projected by the Coast  
   Guard to receive a replacement vehicle when the Coast Guard has been    
   studying this issue for a number of years, and projects that a          
   replacement vehicle would not be available until the year 2006. The     
   funding provided in the bill will prevent another year's delay in the   
   acquisition process for a replacement heavy icebreaking vessel. The     
   Committee expects the Coast Guard to issue an interim status report on  
   the concept exploration to the Committee by May 1, 1998.                
       Polar class icebreaker reliability improvement project [RIP] .--The 
   Committee recommends a reduction of $4,000,000 in this program in order 
   that the Coast Guard can effectively manage the reliability improvement 
   project for polar class icebreakers.                                    
       ATS 1 conversion .--The Committee recommends $13,000,000 for        
   conversion and the addition of a flight deck.                           
                                          AIRCRAFT                                

      For aircraft procurement, the Committee recommends $26,400,000       
   consistent with the budget request. Funds for aircraft acquisitions are 
   distributed as follows:                                                 

                                                   AIRCRAFT                                                  
                                          [In thousands of dollars]                                          

                                                           Fiscal year 1998 estimate    Committee recommendation  

Traffic alert and collision avoidance system [TCAS]                            3,300                       3,300  
Global positioning system installation--phase VII, IX                          1,900                       1,900  
HC 130 engine conversion                                                       5,200                       5,200  
HH 65A helicopter kapton rewiring                                              3,200                       3,200  
Long range search aircraft capability preservation                             4,600                       4,600  
HH 65A helicopter mission computer unit replacement                            4,400                       4,400  
HC 130 aircraft sensor upgrade                                                 3,800                       3,800  
                                                         ---------------------------  --------------------------  
        Total                                                                      26,400                      26,400  


                                      OTHER EQUIPMENT                             

      The Committee recommends $51,200,000. The following table displays   
   the project allocation:                                                 

                                                           OTHER EQUIPMENT                                                          
                                                      [In thousands of dollars]                                                     

                                                                                  Fiscal year 1998 estimate    Committee recommendation  

Fleet logistics system [FLS]                                                                          9,200                       9,200  
Ports and waterways safety system [PAWSS]                                                             5,500                       5,500  
Port security equipment                                                                                                           3,500  
Marine information for safety and law enforcement [MISLE]                                             4,000                       4,000  
Local notices to mariners [LNM] automation                                                            1,800                       1,800  
Frequency spectrum reallocation                                                                       5,100                       5,100  
Conversion of software applications                                                                   2,000                       2,000  
Defense message system [DMS] impementation                                                            1,400                       1,400  
Communication system [COMMSYS] 2000                                                                   1,000                       1,000  
Differential global positioning system [DGPS] (coastal gaps) phase II                                 1,000                       1,000  
Personnel management information system/joint uniform military pay system II                          1,600                       1,600  
Aviation logistics management information system [ALMIS]                                              2,700                       2,700  
National distress system modernization                                                                7,000                       5,000  
VHF FM high level site upgrade--phase III                                                             7,400                       7,400  
                                                                                ---------------------------  --------------------------  
        Total                                                                                             49,700                      51,200  

       Ports and waterways safety system [PAWSS] .--The Committee          
   recommends $5,500,000 for the development and implementation of a new   
   ports and waterways safety system [PAWSS], as requested by the          
   administration. The Committee continues to be interested in Coast Guard 
   activities to develop a new approach to navigation safety, with an      
   emphasis on streamlining and reducing the cost of such safety systems.  
   The Committee applauds the Coast Guard's efforts to develop such a      
   system in cooperation with the maritime community and to apply          
   information technology.                                                 

       Personnel management information system .--The Committee has        
   provided the full amount requested.                                     
       National distress system modernization .--The Committee recommends a
   reduction of $2,000,000 to $5,000,000. The Committee believes the Coast 
   Guard can complete the activities anticipated for fiscal year 1998 in   
   this program within the reduced funding level.                          

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