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[From Thomas, a service of the U.S. Congress through its Library.
Check for accuracy before citing or quoting.]
49 734 cc
Calendar No. 468
105 th Congress
Report
SENATE
2d Session
105 249
DEPARTMENT OF TRANSPORTATION AND RELATED AGENCIES APPROPRIATIONS BILL,
1999
July 15, 1998.--Ordered to be printed
Mr. Shelby, from the Committee on Appropriations, submitted the
following
REPORT
[To accompany S. 2307]
The Committee on Appropriations reports the bill (S. 2307) making
appropriations for the Department of Transportation and related agencies
for the fiscal year ending September 30, 1999, and for other purposes,
reports favorably thereon and recommends that the bill do pass.
Amounts of new budget (obligational) authority for fiscal year 1999
Amount of bill as reported to Senate $13,694,249,569
Amount of budget estimates, 1999 13,354,129,000
Fiscal year 1998 enacted 12,720,568,766
C O N T E N T S
Total obligational authority 4
Immediate Office of the Secretary 8
Office of the General Counsel 9
Office of the Assistant Secretary for Policy 9
Office of the Assistant Secretary for Aviation and International Affairs 9
Office of the Assistant Secretary for Budget and Programs 11
Office of the Assistant Secretary for Governmental Affairs 11
Office of the Assistant Secretary for Administration 11
Office of Public Affairs 12
Executive Secretariat 12
Contract Appeals Board 12
Office of Intelligence and Security 12
Office of the Chief Information Officer 13
Office of Intermodalism 13
Office of Civil Rights 13
Transportation planning, research, and development 13
Transportation Administrative Service Center 15
Essential Air Service and Rural Airport Improvement Fund 16
Minority Business Resource Center Program 23
Minority business outreach 23
Amtrak Reform Council 23
Operating expenses 29
Acquisition, construction, and improvements 35
Environmental compliance and restoration 43
Alteration of bridges 43
Retired pay 43
Reserve training 44
Research, development, test, and evaluation 44
Boat safety 45
Operations 47
Facilities and equipment 57
Research, engineering, and development 75
Grants-in-aid for airports 80
Limitation on general operating expenses 88
Federal-aid highways 90
Magnetic levitation transportation 98
Appalachian development highway system 99
Motor carrier safety grants 102
Operations and research 104
Highway traffic safety grants 107
Office of the Administrator 109
Railroad safety 110
Nationwide differential global positioning system 111
Railroad research and development 112
Northeast Corridor Improvement Program 114
Railroad Rehabilitation Improvement Program 115
Next generation high-speed rail 115
Alaska railroad rehabilitation 117
Rhode Island rail development 118
Capital Grants to National Railroad Passenger Corporation (Amtrak) 118
Administrative expenses 124
Formula grants 125
University transportation centers 128
Transit planning and research 128
Trust fund share of transit programs 131
Capital investment grants 131
Mass transit capital fund 160
Job access and reverse commute grants 161
Washington Metropolitan Area Transit Authority [WMATA] 162
Operations and maintenance 164
Research and special programs 166
Pipeline safety 169
Emergency preparedness grants 171
Salaries and expenses 172
Salaries and expenses 173
Architectural and Transportation Barriers Compliance Board: Salaries and expenses 175
National Transportation Safety Board: Salaries and expenses 175
Emergency fund 176
General provisions 177
Compliance with paragraph 7, rule XVI, of the Standing Rules of the Senate 180
Compliance with paragraph 7(c), rule XXVI, of the Standing Rules of the Senate 180
Compliance with paragraph 12, rule XXVI of the Standing Rules of the Senate 181
Budgetary impact statement 181
TOTAL OBLIGATIONAL AUTHORITY PROVIDED--GENERAL FUNDS AND TRUST FUNDS
In addition to the appropriation of $13,694,249,569 in new budget
authority for fiscal year 1999, large amounts of contract authority are
provided by law, the obligation limits for which are contained in the
annual appropriations bill. The principal items in this category are the
trust funded programs for Federal-aid highways, for mass transit, and
for airport development grants. For fiscal year 1999, estimated
obligation limitations total $32,234,800,000. In addition, Amtrak
receives a substantial subsidy from funds Congress identified in the Tax
Reform Act of 1997.
PROGRAM, PROJECT, AND ACTIVITY
During fiscal year 1999, for the purposes of the Balanced Budget and
Emergency Deficit Control Act of 1985 (Public Law 99 177), as amended,
with respect to appropriations contained in the accompanying bill, the
terms ``program, project, and activity'' shall mean any item for which a
dollar amount is contained in appropriations acts (including joint
resolutions providing continuing appropriations) or accompanying reports
of the House and Senate Committees on Appropriations, or accompanying
conference reports and joint explanatory statements of the committee of
conference. This definition shall apply to all programs for which new
budget (obligational) authority is provided, as well as to discretionary
grants and discretionary grant allocations made through either bill or
report language. In addition, the percentage reductions made pursuant to
a sequestration order to funds appropriated for facilities and
equipment, Federal Aviation Administration, and for acquisition,
construction, and improvements, Coast Guard, shall be applied equally to
each budget item that is listed under said accounts in the budget
justifications submitted to the House and Senate Committees on
Appropriations as modified by subsequent appropriations acts and
accompanying committee reports, conference reports, or joint explanatory
statements of the committee of conference.
TRANSPORTATION EQUITY ACT FOR THE 21ST CENTURY
The Intermodal Surface Transportation Efficiency Act, the previous
authorization for most Federal highway, transit, and highway safety
programs, expired on September 30, 1997. On May 22, 1998, the Congress
passed a new authorization bill, the Transportation Equity Act for the
21st Century [TEA21], which the President signed into law on June 9,
1998. Under this law, most of the authorizations are contract authority;
that is, they are available for obligation without appropriation. The
role of the appropriations process with respect to contract authority
programs generally is to set obligation limitations so that overall
Federal spending stays within legislated targets and to appropriate
liquidating cash to cover the outlays associated with obligations that
have been made.
THE GOVERNMENT PERFORMANCE AND RESULTS ACT
The Government Performance and Results Act [Results Act] requires
Federal agencies to develop strategic plans and annual performance plans
and reports. The first multiyear strategic plan was submitted September
30, 1997. The Committee is fully committed to support the Department as
it seeks to implement the requirements of the Results Act.
The Committee commends the Department for its aggressive
implementation of the Results Act. In the performance plan for fiscal
year 1999 that was delivered to Congress on February 23, 1998,
performance measures have been identified for all of the Department's
major programs. A total of 70 performance goals have been established.
All of these goals are stated in terms of effects on the American
public, and many reflect ambitious target levels of performance.
The Department provided the performance plan shortly after receipt of
budget justifications. The plan generally contained objective and
measurable performance goals covering the Department's budget and are
generally useful. However, the plan could be improved by consistently
linking strategic goals, program activities, and performance goals.
Further, the plan could be strengthened by identifying current (or
potential) interagency coordination of goals and measures including
discussion of the Department's proposed or potential participation in
such areas.
The Department's activities under the Government Performance and
Results Act are clearly a work in progress. The Department has made
significant strides in assessing GPRA's potential for strategically
aligning the varied and numerous programs under the Department's
jurisdiction. However, although the plan identifies strategies to help
achieve the Department's long-term goals, the plan does not adequately
describe how those strategies will lead to realization of the long-term
goals or the relative contributions of each strategy. Generally, this is
a shortcoming reasonably expected to be addressed as the GPRA process
evolves and becomes more integrated in the policy, budget, and
regulatory formulation and identification processes. However, the
Committee encourages the Department to focus in particular on
improvements to management to achieve outcomes as this has been a
historically weak area for the Department. For example, the Committee
encourages greater refinement of goals with specific and quantitable
measures to provide greater definition and focus for budgetary,
regulatory, and administrative actions.
For clarity, the performance plan should resist identifying
activities of agencies or offices under strategic goals unless there is
discussion of such organizations' primary contributions toward those
goals in the body of the plan. Elimination of the mention of these
organizations will provide greater focus on the priorities in the
strategic goal (if mention of such organization is gratuitous), or will
prompt reevaluation of the organizations' roles in the achievement of
the strategic goal.
The performance plan still has the feel of a document designed to
cover the current panoply of activities ongoing or anticipated for the
Department. As the process and the plan mature, the Committee
anticipates that the performance plan will become a management document
rather than a reporting document.
The Committee recognizes that implementation will be an iterative
process, likely to involve several appropriations cycles, and will
support the efforts of the Department to improve its performance plan.
We will consider the Department's progress in addressing weaknesses in
its annual performance plan in tandem with its funding requests. To this
end, we urge the Department to examine the program activities currently
supporting its budget requests in light of the Department's strategic
goals and to determine whether any changes or realignments would
facilitate a more accurate and informed presentation of budgetary
information. The Department is encouraged to consult with the Committee
as it considers such revisions prior to finalizing any requests pursuant
to 31 U.S.C. 1104. The Committee will consider any requests with a view
toward ensuring that fiscal year 2000 and subsequent budget submissions
display amounts requested against program activity structures that bear
clear relationships to performance goals.
Year 2000 conversion .--The Committee notes that the Department has
greatly improved its management oversight in recent months and appears
to be devoting considerable resources to the year 200 conversion
problem. However, the Department still has a long way to go and the
Office of Management and Budget indicates that the Department, with 14.9
percent of its mission critical systems validated and 7.4 percent
implemented, the Department lags well behind the Governmentwide
schedule, and its assessments of four systems had not been completed as
of the May reporting date.
While the entire Department has year 2000 conversion issues, the most
critical appear to be within the Federal Aviation Administration. The
Federal Aviation Administration has taken significant steps in the last
two quarters to accelerate efforts to address the year 2000 problems,
but the FAA systems continue to pose a significant risk. The Office of
Management and Budget specifically suggested that the FAA:
* * * determine priorities for system conversion and
replacement based on systems' mission criticality; develop
plans for validating and testing all converted or replaced
systems; and continue working to develop realistic contingency
plans for all business lines to ensure the continuity of
critical operations, including the availability of critical
telecommunications support. Of particular concern is the FAA's
HOST computer system, which is the backbone en route air
traffic control. The FAA intends to replace the HOST computers
at a pace sufficient to guarantee an adequate supply of spare
parts for the remaining computers. FAA is continuing to assess
the potential vulnerability of the system's microcode and is
validating the feasibility of a date rollback as one of its
potential contingency plans. The FAA's contingency planning
must provide for continuity of operational capability of the
National Airspace System [NAS], including scenarios when the
HOST computer is not available.
TITLE I--DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY
Section 3 of the Department of Transportation Act of October 15, 1966
(Public Law 89 670) provides for establishment of the Office of the
Secretary of Transportation [OST]. The Office of the Secretary is
composed of the Secretary and the Deputy Secretary immediate offices,
the Office of the General Counsel, and five assistant secretarial
offices for transportation policy, aviation and international affairs,
budget and programs, governmental affairs, and administration. These
secretarial offices have policy development and central supervisory and
coordinating functions related to the overall planning and direction of
the Department of Transportation, including staff assistance and general
management supervision of the counterpart offices in the operating
administrations of the Department.
The Committee recommends a total of $76,925,300 for the Office of the
Secretary of Transportation including $40,000 for reception and
representation expenses.
The Committee is concerned about the continued level of vacancies in
the Office of the Secretary and notes that many of the positions have
been open for over a year. Accordingly, the appropriation for salaries
and expenses has been adjusted downward to reflect current staffing
levels generally across the Office of the Secretary. This adjustment is
made without prejudice and will be reassessed before final enactment of
this bill.
In addition, the Committee is increasingly concerned about the
apparent reticence on the part of the Office of Congressional Affairs to
brief all impacted Committees of the Congress in a timely fashion of
administration proposals directly relating to issues and accounts under
those committees' jurisdiction. This concern comes directly on the heels
of a constant stream of concerns by Members of Congress that matters of
constituent interest are not relayed to all members of a State
delegation in an even-handed and timely fashion. Unless these
deficiencies are remedied immediately, the Committee will reconsider the
need for a departmentwide Office of Congressional Affairs, and may
resolve to transfer some of the functions to other offices in the Office
of the Secretary and devolve the congressional liaison functions to the
individual modal administrations.
IMMEDIATE OFFICE OF THE SECRETARY
The Immediate Office of the Secretary has the primary responsibility
for overall policy development, central supervisory and coordinating
functions necessary for the overall planning and direction of the
Department.
The Committee recommends $1,768,600, which is consistent with the
fiscal year 1998 appropriation with controls placed on travel and PC&B
growth. The Committee expects that the funding will be sufficient for
the Immediate Office of the Secretary and expects that any shortfall can
be accommodated by slight reductions in benefits and travel. The funding
provided will allow for 16 positions.
IMMEDIATE OFFICE OF THE DEPUTY SECRETARY
The Immediate Office of the Deputy Secretary has the primary
responsibility of assisting the Secretary in the overall planning and
direction of the Department. The Committee has recommended a total of
$554,700 for the Immediate Office of the Deputy Secretary. The
Committee's recommendation provides for a staffing level of seven
positions.
OFFICE OF THE GENERAL COUNSEL
The General Counsel is the chief legal officer of the Department of
Transportation and the final authority within the Department on all
legal questions. The General Counsel's Office provides legal services to
the Office of the Secretary, coordinates and reviews the legal work of
the Chief Counsels' Offices of the operating administrations, and
generally performs the full range of legal services involved in
administering an executive department with national and international
responsibilities. With the completion of the reauthorization of the
Federal-aid Highway Program, National Highway Traffic Safety
Administration, Motor Carrier Safety Program, and Federal transit
programs, the workload of the General Counsel's Office should
substantially decrease, and the funds provided should be ample to carry
out the duties of the Office of the General Counsel.
The Committee recommends $8,645,000 for the Office of the General
Counsel. At this funding level, the Committee expects that the Office
will be able to fund 86 staff positions.
OFFICE OF THE ASSISTANT SECRETARY FOR POLICY
The Assistant Secretary for Policy is the primary policy officer of
the Department and is responsible to the Secretary for analysis,
development, articulation, and review of policies and plans for domestic
transportation.
The Committee recommends $2,479,500 for the Office of the Assistant
Secretary for Policy. This funding level is sufficient to fund the
current onboard staff.
OFFICE OF THE ASSISTANT SECRETARY FOR AVIATION AND INTERNATIONAL AFFAIRS
The Assistant Secretary for Aviation and International Affairs is
responsible for administering the economic regulatory functions
regarding the airline industry and provides departmental leadership and
coordination on international transportation policy issues relating to
maritime, trade, technical assistance, and cooperation programs. As
overseer of airline economic regulations, the Assistant Secretary is
responsible for international aviation programs, the essential air
service program, airline fitness and licensing, acquisitions,
international route awards, and special investigations such as airline
delays and computer reservations systems [CRS].
The Committee has provided $6,686,300, which will provide sufficient
resources to fund 85 positions.
Aviation competition guidelines. --When Congress passed the Airline
Deregulation Act, it decided that the marketplace, and not regulators,
should set airline prices and schedules. That landmark action has
generated enormous benefits for the air traveling public. However, the
Subcommittee on Transportation Appropriations has been very concerned
about barriers to entry and the current health of airline competition
which may distort the competitive landscape. The subcommittee has held a
number of hearings over the past 2 years and one of the clear messages
which has emerged from these hearings is that it is critically important
to have a truly free market so that everyone, big and small, can
compete. Where there is strong competition in the airline industry, the
consumers are the primary beneficiaries. What should also be clear is
that there is no prospect of support from the Committee to reregulate
the airline industry.
The Department of Transportation has recently come forth with a
Proposed Statement of Enforcement Policy on Unfair Exclusionary Conduct
by Airlines. The Committee applauds the Department's initiative to
attempt to provide guidelines to the airlines as to what activities
constitute anticompetitive activities, but the Committee is concerned
that any such policy statement not undermine the very marketplace for
airlines services that it is designed to foster. An incautious policy
that intervenes in the wrong circumstances could itself chill the
competitive process. The Committee also notes that several Committees of
the Congress have held hearings and introduced legislation to promote
airline competition.
As the Department considers ways of providing greater certainty to
the airlines as to what constitutes anticompetitive activity, the
Committee encourages the Department to consider a process in which the
Department, upon receiving a complaint, would consider within a
specified time period whether such alleged activity should be referred
to the Department of Justice or whether it was a permissible competitive
activity. Such an approach would provide greater certainty for air
carriers and could provide an efficient mechanism for focusing the
Department of Justice's attention on the most suspect of activities. The
Committee believes that such a process can be accommodated within
current staffing resources and would reject a request for additional
resources for the creation of an analytical or legal capability within
the Department of Transportation that would also, by necessity, have to
be constituted at the Department of Justice.
The Committee urges the Department of Transportation to work with
interested Committees of the Congress, the Department of Justice, and
the airlines to implement existing laws and enforcement practices to
protect the economy from anticompetitive conduct.
Another concern raised during the subcommittee's hearings was that
the role that travel agents play in the maintenance of a competitive
landscape between airlines by virtue of the value-added services they
provide for consumers might be threatened by actions taken by the major
airlines. The Committee encourages the Secretary to monitor the dynamics
of the airline ticketing industry and the impacts that developments in
that industry have on the access of consumers to airline tickets.
OFFICE OF THE ASSISTANT SECRETARY FOR BUDGET AND PROGRAMS
The Assistant Secretary for Budget and Programs is the principal
staff advisor to the Secretary on the development, review, and
presentation of the Department's budget resource requirements, and on
the evaluation and oversight of the Department's programs. The primary
responsibilities of this Office are to ensure the effective preparation
and presentation of sound and adequate budget estimates for the
Department, to ensure the consistency of the Department's budget
execution with the action and advice of the Congress and the Office of
Management and Budget, to evaluate the program proposals for consistency
with the Secretary's stated objectives, and advise the Secretary of
program and legislative changes necessary to improve program
effectiveness.
The Committee recommends a total of $5,687,800 for the Office of
Assistant Secretary for Budget and Programs. At this level, the
Committee has funded the current onboard staff positions and included
$40,000 for reception and representation expenses for the Secretary.
OFFICE OF THE ASSISTANT SECRETARY FOR GOVERNMENTAL AFFAIRS
The Assistant Secretary for Governmental Affairs advises the
Secretary on all congressional and intergovernmental activities and on
all Department legislative initiatives and other relationships with
Members of the Congress; promotes effective communication with other
Federal agencies and regional Department officials, and with State and
local governments and national organizations for development of
departmental programs; and ensures that consumer preferences, awareness,
and needs are brought into the decisionmaking process.
The Committee recommends $1,600,000 for the Office of the Assistant
Secretary for Governmental Affairs. This level holds travel below fiscal
year 1998 levels and provides funding for 23 positions.
OFFICE OF THE ASSISTANT SECRETARY FOR ADMINISTRATION
The Assistant Secretary for Administration is the principal adviser
to the Secretary on departmental administrative management matters, and
is responsible for personnel and training, management policy, employment
ceiling control systems, automated systems policy, administrative
operations, real and personal property management, acquisition
management, grants management, internal departmental financial systems,
and ADP facilities and services.
The Committee recommends $19,570,200 for the Office of the Assistant
Secretary for Administration which includes the OST portion of rent and
the majority of OST's TASC contribution. The Committee has provided a
level that will support the current staffing levels with a slight
reduction in travel and training activities.
OFFICE OF PUBLIC AFFAIRS
The Director of Public Affairs is the principal adviser to the
Secretary and other senior departmental officials and news media on
public affairs questions. The Office issues news releases, articles,
factsheets, briefing materials, publications, and audiovisual materials.
It also provides information to the Secretary on opinions and reactions
of the public and news media on transportation programs and issues.
The Committee recommends $1,656,600 for the Office of Public Affairs,
which will support current staffing levels.
EXECUTIVE SECRETARIAT
The Executive Secretariat provides and organizes staff service for
the Secretary and Deputy Secretary to assist them in carrying out their
management functions and facilitate their responsibilities for
formulating, coordinating, and communicating major policy decisions. It
controls and coordinates internal and external material directed to the
Secretary and Deputy Secretary and ensures that their decisions and
instructions are implemented.
The Committee recommends a funding level of $1,088,500 for the
Executive Secretariat, sufficient resources to maintain current staffing
levels.
CONTRACT APPEALS BOARD
The primary responsibility of the Board of Contract Appeals is to
provide an independent forum for the trial and adjudication of all
claims by, or against, a contractor relating to a contract of any
element of the Department, as mandated by the Contract Disputes Act of
1978, 41 U.S.C. 601.
The Committee has provided $460,000 for the Contract Appeals Board.
This level is sufficient to maintain the current staffing level of five
positions.
OFFICE OF SMALL AND DISADVANTAGED BUSINESS UTILIZATION
The Office of Small and Disadvantaged Business Utilization has
primary responsibility for providing policy direction for small and
disadvantaged business participation in the Department's procurement and
grant programs, and effective execution of the functions and duties
under sections 8 and 15 of the Small Business Act, as amended.
The Committee recommends $1,000,000, which is sufficient funding to
maintain current staffing levels.
OFFICE OF INTELLIGENCE AND SECURITY
The Office of Intelligence and Security within the Office of the
Secretary coordinates security and intelligence policies and strategies
among the modes of transportation and serves as liaison with other
Government intelligence and law enforcement agencies.
The Committee recommends $935,000 for the Office of Intelligence and
Security. This level is sufficient to maintain the current staffing
levels of nine positions and current activities of the office.
OFFICE OF THE CHIEF INFORMATION OFFICER
The Committee recommends $4,652,700 for the Office of the Chief
Information Officer. This level is sufficient to maintain the current
staffing level of 15 positions.
OFFICE OF INTERMODALISM
The Committee recommends $1,000,000 for the Office of Intermodalism.
This level is sufficient to maintain current staffing and activity
levels with modest reductions in travel and the initiation of new
projects.
OFFICE OF CIVIL RIGHTS
The Office of Civil Rights is responsible for advising the Secretary
on civil rights and equal employment opportunity matters, formulating
civil rights policies and procedures for the operating administrations,
investigating claims that small businesses were denied certification or
improperly certified as disadvantaged business enterprises, and
overseeing the Department's conduct of its civil rights responsibilities
and making final determinations on civil rights complaints. In addition,
the Civil Rights Office is responsible for enforcing laws and
regulations which prohibit discrimination in federally operated and
federally assisted transportation programs.
The Committee has provided a funding level of $5,562,000 for the
Office of Civil Rights. The Committee notes the unusually high number of
vacancies in the Office of Civil Rights, and expects the Director to
fill these positions as soon as possible. In addition, the Committee is
aware of the persistent carryover load of EEO cases and encourages the
director to explore alternative means of managing the caseload. Options
to be explored should include contracting out and cost-sharing
arrangements with the administrations generating the largest portion of
the Office's caseload.
TRANSPORTATION PLANNING, RESEARCH, AND DEVELOPMENT
Appropriations, 1998\1\ $4,400,000
Budget estimate, 1999 4,710,000
Committee recommendation 8,328,400
\1\Does not include reduction for TASC pursuant to section 320
of Public Law 105 66.
The Office of the Secretary performs those research activities and
studies which can more effectively or appropriately be conducted at the
departmental level. This research effort supports the planning, research
and development activities, and systems development needed to assist the
Secretary in the formulation of national transportation policies. The
program is carried out primarily through contracts with other Federal
agencies, educational institutions, nonprofit research organizations,
and private firms.
Policy studies .--The recommended level for policy studies for the
development and implementation of transportation economic policy and for
the development of environmental energy and safety policy has been
reduced by $200,000.
Transportation planning .--The recommended level includes funding
for transportation planning assistance for the 2002 Winter Olympics in
Salt Lake City and for planning and logistical support for the 1999
Special Olympics World Summer Games and the 2001 Special Olympic World
Winter Games.
Missing children .--The Committee is aware of the effective work of
the National Center for Missing and Exploited Children to combat crimes
against children and to reunite abducted or runaway children with their
families. There are many opportunities in the transportation sector to
alert the public to the status of a missing child. For example,
truckstops, airports, rail and bus stations, and other transportation
facilities are utilized by millions of Americans every day. These are
ideal places to raise public awareness of missing children. Moreover,
employees in the transportation sector, including flight attendants, bus
and truck drivers, and ticket agents, come into contact with hundreds of
individuals every day and could be a key element in identifying abducted
children. When nonlaw enforcement entities adopt procedures that hinder
pedophiles and kidnappers, they are doing a much needed public service.
Of note is WalMart's Code Adam Program. When a child disappears in a
participating store, Code Adam is addressed over the public address
system. Store personnel immediately stop work to look for the child and
monitor all exits. If the missing child is not located in 10 minutes, or
is seen with someone other than a parent or guardian, the police are
called. This program is implemented in all 2,800 WalMart and Sam's Club
stores. The Committee urges the transportation sector to consider
similar programs.
The Committee directs the Secretary and each of the modal
administrators to work with the National Center for Missing and
Exploited Children and the transportation industry to identify and
implement initiatives to maximize the transportation sector's
involvement in the effort to relocate missing children. The Committee
directs the Secretary to report to the House and Senate Committees on
Appropriations no later than March 31, 1999, on the identified
initiatives in this area and the actions taken to implement those
efforts.
Transportation noise model .--The Department of Transportation
should continue research toward developing a multimodal acoustic noise
model that encompasses all transportation related noise sources, so as
to efficiently minimize combined impact on community noise. No later
than January 1, 1999, the Department shall provide the Committee a plan
for achieving this goal. The Department should continue to improve the
transportation noise model [TNM] by incorporating neglected but relevant
propagation phenomena that affect community noise, such as atmospheric
effects. While the Department continues research toward developing a
multimodal acoustic noise model, it should require concurrent use of TNM
and its previous noise prediction model.
Freight mobility .--The recommended level includes $40,000 for a
joint freight mobility study to initiate and coordinate a freight
mobility system in Washington State to focus on the freight movement
problems of the Puget Sound region. Special attention should be given to
improving business practices to mitigate the freight mobility problems
in the region.
Flood project alternatives research .--Flooding in the Interstate 5
corridor at Centralia/Chehalis in Washington State compromises freight
mobility in the corridor and presents a unique opportunity to provide a
coordinated approach between flood control projects and highway
construction. The Committee provides $250,000 and directs the Secretary
to work with the Lewis County Economic Development Corp., the Washington
State Department of Ecology, and Grays Harbor County to further efforts
to identify and conduct preliminary work on a basinwide solution to this
transportation problem as a pilot program for other flood plain and
highway conflicts.
TRANSPORTATION ADMINISTRATIVE SERVICE CENTER
Limitation, 1998\1\ ($121,800,000)
Budget estimate, 1999\2\ (175,715,000)
Committee recommendation (165,215,000)
\1\Does not reflect reduction pursuant to section 320 of Public
Law 105 66.
\2\Proposed without limitations.
The Transportation Administrative Service Center [TASC] provides a
business operation fund for DOT to provide a wide range of
administrative services to the Department and other customers. TASC
functions as an entrepreneurial and self-sufficient entity and provides
competitive quality services responsive to customer needs. The TASC is
governed by a Board of Directors composed of customer agencies operating
in a competitive business-like environment. The TASC presents proposed
operating and financial plans to the Board at the beginning of each
fiscal year. Once the Board has approved those plans the TASC provides
products and services to its full customer base. The Director of TASC
provides quarterly performance and financial reports to the Board, makes
recommendations for changes to the approved plans and is responsible for
the day-to-day management of the TASC. DOT administrations must procure
consolidated administrative services from the TASC unless a financial
analysis of the services demonstrates that it is more cost beneficial to
the Department as a whole--not to an individual operating entity
alone--to change the nature of the service delivery (to consolidate a
service or to decentralize a service). TASC services are being marketed
to customers outside DOT to provide greater economies of scale, thus
reducing costs to individual customers. TASC services include:
--Functions formerly in DOT's working capital fund [WCF];
--Office of the Secretary [OST] personnel, procurement and
information technology support operations;
--Systems development staff;
--Operations of the consolidated departmental dockets facilities; and
--Certain departmental services and administrative operations, such
as human resources management programs, transit fare subsidy payments,
and employee wellness including substance awareness and testing.
All of the services of the TASC will be financed through customer
reimbursements, to the extent possible, on a fee-for-service basis.
The bill includes language that includes a limitation on activities
financed through the transportation administrative service center at
$165,215,000. The limitation shall not apply to non-DOT entities and the
Committee directs that activities shall be provided on a competitive
basis. Further, the Committee directs that the Department shall submit
with the Department's congressional budget submission an approved annual
operating plan of the transportation administrative service center and
quarterly reports to the House and Senate Committees on Appropriations.
ESSENTIAL AIR SERVICE AND RURAL AIRPORT IMPROVEMENT FUND
Appropriations, 1998 (mandatory authority)\1\ $50,000,000
Budget estimate, 1999 (mandatory authority) 50,000,000
Committee recommendation (mandatory authority) 50,000,000
\1\Transfer from FAA operations.
The Essential Air Service [EAS] and Rural Airport Improvement Program
provides funds directly to commuter/regional airlines to provide air
service to small communities that otherwise would not receive air
service and for rural airport improvement as provided by the 1996
Federal Aviation Reauthorization Act.
The Federal Aviation Reauthorization Act of 1996 authorizes
$100,000,000 in user fees for flights that fly over, but do not land in,
the United States. The first $50,000,000 of each year's fees go directly
to carry out the Essential Air Service Program and, to the extent not
used for essential air service, to improve rural airport safety. If
$50,000,000 in fees is not available, funding must be transferred from
other FAA appropriations to the EAS programs.
Many EAS points are located in remote rural areas: 57 of 69
communities served by the Essential Air Service Program are more than
100 highway miles from the nearest small, medium, or large hub airport.
Twenty-six more communities are located in Alaska, where, in all but two
cases, year-round road access does not exist, and in many instances does
not exist at all. Recognizing the critical importance of EAS service to
these communities, the Committee intends that service in Alaska not be
reduced. Without air service, such communities would be further isolated
from the Nation's economic centers.
Moreover, businesses are typically interested in locating in areas
that have convenient access to scheduled air service. Loss of service
would seriously hamper small communities' ability to attract new
business or even to retain those they now have, resulting in further
strain on local economies and loss of jobs.
The Committee has retained the general provision which limits the
number of communities that receive EAS funding by excluding points in
the 48 contiguous United States that are located fewer than 70 highway
miles from the nearest large or medium hub airport, or that require a
subsidy in excess of $200 per passenger unless such a point is more than
210 miles from the nearest large or medium hub airport.
The following table reflects the points currently receiving service
and the annual rates as of the end of March 1998. The $50,000,000
funding level is more than sufficient to maintain current service levels
and quality of service at the communities currently served by the EAS
program.
In the lower 48 States, the tables show distances that EAS
communities are from other air service centers and subsidy-per-passenger
calculations. The distance figures are shown to give a sense of the
degree of isolation of the communities, and the subsidy-per-passenger
figures are a rough measure of the cost of providing the service
compared to the number of passengers benefiting from the service.
Neither of those calculations are particularly relevant to Alaska.
First, only three of the 26 subsidized communities in Alaska have road
access to other air service. Thus, the Alaskan communities are clearly
among the most isolated in the Nation. In fact, many are islands and
would be all but cut off from the rest of the world without air service.
Second, any subsidy-per-passenger calculation would be highly
misleading, at best. While subsidy-per-passenger may be used as a crude
measure of cost benefit in the lower 48, in many of the subsidized EAS
markets the principal traffic being carried on the EAS flights is food
being delivered to the bush community. Thus, the whole community
benefits--indeed is fully dependent on--the EAS flights, not just the
few who may actually travel on the flights.
EAS SUBSIDY RATES AS OF JUNE 1, 1997 AND MARCH 1, 1998
States/communities Estimated mileage to nearest hub (small, medium, or large)\1\ Average daily enplanements at EAS point (year ending June 30, 1997) Annual subsidy rates as of June 1, 1997 Subsidy per passenger\2\ Current annual subsidy rates (March 1, 1998)
Arizona: 101 6.9 $155,369 $51 $411,217
Arkansas: 108 5.5 569,344 112 943,347
California: 234 26.0 151,450 12 189,043
Colorado: 162 16.6 (\3\) (\3\) (\3\)
Hawaii: Kamuela 39 4.4 292,061 181 335,454
Illinois: 126 5.1 182,319 62 218,783
Iowa: Ottumwa 85 4.5 382,072 181 458,485
Kansas: 149 9.9 146,225 28 611,661
Maine: 71 10.1 330,080 53 595,320
Michigan: 236 15.1 141,363 37 494,668
Minnesota: 121 (\5\) (\5\) (\5\) 678,375
Missouri: 138 14.1 108,120 24 295,466
Montana: 280 6.1 387,540 110 684,766
Nebraska: 256 3.9 346,863 296 797,133
Nevada: Ely 237 3.0 508,759 335 867,188
New Hampshire: Keene 56 5.3 382,283 132 737,926
New Mexico: 91 11.3 188,923 28 656,745
New York: 118 10.2 132,540 28 266,371
North Dakota: 396 12.7 415,506 53 678,375
Oklahoma: 84 5.1 381,517 121 767,398
Pennsylvania: Oil City/Franklin 86 24.2 118,373 9 243,923
South Dakota: 57 (\5\) (\5\) (\5\) 678,375
Texas: Brownwood 138 2.9 499,109 227 807,717
Utah: 178 21.8 292,882 26 577,538
Vermont: Rutland 69 10.6 382,283 62 737,926
Washington: Ephrata/Moses Lake 108 40.8 177,628 9 219,483
West Virginia: 173 8.5 270,835 60 618,017
Wyoming: 144 35.3 (\3\) (\3\) (\3\)
\1\Hub designations are recalculated annually and published by the FAA in the Airport Activity Statistics. The above distances are based on the 1997 Airport Activity Statistics, which is based on calendar year 1996 passenger data.
\2\Rounded to the nearest dollar.
\3\Subsidy rate under negotiation.
\4\There was an extended service hiatus during the year ended June 30, 1997; thus, no meaningful calculation can be made.
\5\Either no service or subsidy rate in place.
NOTE.--The Department has authorized subsidy for service levels that meet at least the statutory minimums beginning in fiscal year 1998, that is, October 1, 1998. The enplanements per day, on the other hand, reflect the subminimum service levels of ten round trips a week.
GSA RENTAL PAYMENTS
[Dollars and square feet in thousands]
Administration Fiscal year 1997 enacted\1\ Fiscal year 1997 GSA billings Fiscal year 1998 estimate Fiscal year 1999 estimate
Funding Square feet Funding Square feet Funding Square feet
Federal Highway Administration [$17,294] [1,078] [$17,369] $17,480 1,077 $17,922 1,076
National Highway Traffic Safety Administration 217 4,361 4,234 217 4,042 206
Federal Railroad Administration 143 4,075 2,930 123 2,753 112
Federal Transit Administration 152 3,091 3,239 155 3,030 140
Federal Aviation Administration 4,170 68,833 67,500 4,047 77,887 4,226
U.S. Coast Guard 2,363 35,886 36,472 2,367 35,285 2,321
St. Lawrence Seaway Development Corporation 10 198 199 10
Research and Special Programs Administration 105 2,041 2,075 106 1,965 98
Office of Inspector General 110 2,202 2,350 110 2,186 100
Office of the Secretary of Transportation [OST] 302 6,334 6,215 284 6,045 270
Transportation Administrative Service Center 304 6,455 6,640 300 8,982 386
Bureau of Transportation Statistics 24 489 660 24 750 25
OST rental payments to GSA 127,447 7,900 133,965
----------- ---------------- ----------- -------------- --------- ------------- -------
Subtotal 127,447 7,900 133,965 149,994 8,820 160,847 8,960
=========== ================ =========== ============== ========= ============= =======
Federal Highway Administration 17,294 1,078 17,369
----------- ---------------- ----------- -------------- --------- ------------- -------
Subtotal, consolidated account 144,741 8,978 151,334
=========== ================ =========== ============== ========= ============= =======
Maritime Administration 4,433 286 4,361 4,684 286 4,364 287
Surface Transportation Board 1,471 56 1,471 1,488 56 1,517 56
----------- ---------------- ----------- -------------- --------- ------------- -------
Total, Department of Transportation 150,645 9,320 157,166 156,166 9,162 166,728 9,303
\1\Enacted as a single account under the Office of the Secretary of Transportation. Fiscal year 1997 directed the reimbursement of FHWA GSA rent from FHWA LGOE account to the consolidated account. Requirements for fiscal year 1997 are best represented by the actual billings. There was no distribution made of the enacted amount of $144,741,000.
MINORITY BUSINESS RESOURCE CENTER PROGRAM
Appropriations, 1998 $1,900,000
Budget estimate, 1999 1,900,000
Committee recommendation 1,900,000
Office of Small and Disadvantaged Business Utilization
[OSDBU]/Minority Business Resource Center [MBRC]. --The OSDBU/MBRC
provides assistance in obtaining short-term working capital and bonding
for disadvantaged, minority, and women-owned businesses [DBE/MBE/WBE's].
In fiscal year 1999, the short-term loan program will continue to focus
on the lending of working capital to DBE/MBE/WBE's for
transportation-related projects in order to strengthen their competitive
and productive capabilities.
The Committee encourages the Minority Business Resource Center to
work with Stillman College to assist students in understanding the
opportunities and challenges facing young entrepreneurs in the
transportation industry.
Since fiscal year 1993, the loan program has been a separate line
item appropriation, which segregated such activities in response to
changes made by the Federal Credit Reform Act of 1990. The limitation on
direct loans under the Minority Business Resource Center is at the
administration's requested level of $13,775,000.
Of the funds appropriated, $1,500,000 covers the direct subsidy costs
for loans not to exceed $13,775,000; and, $400,000 is for administrative
expenses to carry out the Direct Loan Program.
MINORITY BUSINESS OUTREACH
Appropriations, 1998 $2,900,000
Budget estimate, 1999 2,900,000
Committee recommendation 2,900,000
This appropriation provides contractual support to assist minority
business firms, entrepreneurs, and venture groups in securing contracts
and subcontracts arising out of projects that involve Federal spending.
It also provides support to historically black and Hispanic colleges.
Separate funding is requested by the administration since this program
provides grants and contract assistance that serves DOT-wide goals and
not just OST purposes.
AMTRAK REFORM COUNCIL
Appropriations, 1998\1\ $2,450,000
Budget estimate, 1999\2\ 500,000
Committee recommendation 450,000
\1\Of the amount provided, $1,970,000 was utilized for the
contract on the independent assessment of Amtrak, required by sections
202 and 409 of the Amtrak Reform and Accountability Act (Public Law 105
134); and $400,000 was transferred to the DOT inspector general for new
responsibilities associated with section 409(c) of Public Law 105 134,
leaving a balance for the Council of approximately $80,000.
\2\In the administration's budget request, both the independent
assessment of Amtrak's financial status and the Amtrak Reform Council
are to be funded within this requested amount. This funding was
requested as part of the capital grants to the National Passenger
Railroad Corporation.
The Committee recommends an appropriation of $450,000 for necessary
expenses of the Amtrak Reform Council [ARC]. Initial funding for the ARC
was provided in the fiscal year 1998 supplemental appropriations bill,
Public Law 105 174.
The Amtrak Reform and Accountability Act of 1997 [ARAA] directs the
establishment of an independent commission to be known as the Amtrak
Reform Council. The ARC consists of 11 members, including four Senate
appointees, four House appointees, two Presidential appointees, and the
Secretary of Transportation. To date, the ARC slate has not been
filled--one of the Presidential appointees has not yet been named.
However, the ARC has begun meeting and coordinating with the DOT
inspector general and other interested parties. The ARC members serve
without pay, but receive travel expenses and per diem.
Under the ARAA, the responsibilities of the ARC include evaluating
Amtrak's performance and making recommendations to Congress and Amtrak
for achieving further cost containment, productivity improvements, and
financial reforms. The most important tool for the ARC's evaluation of
Amtrak's performance will be the independent assessment of Amtrak's
financial requirements through the end of fiscal year 2002, as required
in section 202 of the ARAA. The contract for the independent assessment
was let on May 5, 1998, to Battelle Memorial Institute, and will be
completed in early November. The contractor is reviewing Amtrak's
financial reports, business planning documents, and management
consultant studies in order to develop a comprehensive assessment of
Amtrak's financial condition. This will independently verify Amtrak's
accounting methods, to determine whether assumptions made by Amtrak, on
which the Corporation has built their strategic business plan, can be
successfully borne out in future operating and capital investment
decisions.
Although the ARC will not have the results of the independent
assessment until November 1998, the Committee lauds the decision to
begin working toward meeting its legislative charge. As a practical
matter, the ARC is a temporary commission. After December 1999, the
Commission must make a determination on whether or not Amtrak can meet
the financial goals outlined in the ARAA. If the ARC determines these
goals cannot be met, they must then submit a restructuring plan, and
Amtrak must submit a liquidation plan.
The Committee's recommended funding level, $450,000, will allow the
ARC to decisively move forward in performing its tasks and
responsibilities. These funds are available for 2 years, through
September 30, 2000. The Committee is aware that the members of the ARC
have been selected based on their technical qualifications, professional
standing, and demonstrated expertise in areas relevant to the needs of
the Council. Therefore, there should be no need for outside consultant
services, and the Committee has included a provision precluding the use
of appropriated funds for such services.
Route closure and realignment recommendations. --Under current
authority, the ARC can recommend improvements or changes in law that it
believes to be necessary or appropriate, including recommending that the
Amtrak Board of Directors close down or consolidate unprofitable routes.
In addition, the sunset trigger in the ARAA directs the ARC to notify
the President and the appropriate congressional committees if Amtrak's
business performance prevents the railroad from meeting its financial
goals, or if the ARC determines that continued Federal operating
subsidies will be required after December 2, 2002. In order to help
Amtrak work toward meeting its financial goals and to decrease reliance
on Federal subsidies, the ARC shall identify Amtrak routes which are
candidates for closure or realignment, and report to the Congress
annually, as required under the ARAA, on these recommendations.
The process for determining candidate routes for closure or
realignment shall be based on Amtrak's own performance rankings, which
incorporate information on each route's fully allocated costs and
ridership on core intercity passenger service. A May 1998 General
Accounting Office report entitled ``Financial Performance of Amtrak's
Routes'' (GAO/RCED 98 151) examined the operating ratios for all of
Amtrak's 40 intercity routes during fiscal year 1997, and ranked the
routes by performance. The only profitable route on Amtrak's system is
the New York to Washington, DC Metroliner. All other Amtrak routes lose
money on a per passenger basis, from a low of $11 lost per passenger
trip to a high of $284 lost per passenger. The average systemwide per
passenger loss is $47. Though the Committee recognizes that the issue of
connectivity is important to any passenger rail system, it is imperative
that these losses be stemmed by judicious reductions and
rationalizations. The Committee has determined that making
recommendations for route closures or realignments is a task that is
complementary to the Amtrak Reform Council's mission, and is well within
the scope of the ARC's statutory responsibilities.
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 1999 be 91 personnel.
Advisory committees .--The Committee has retained a general
provision (sec. 327) 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.
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 Committee has
included language (sec. 333) that 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.
Other
User fees .--The Committee has included bill language, included in
previous appropriations bills, which permits the Office of the Secretary
to continue to credit to this account $1,000,000 in user fees.
Reductions in fiscal year 1998 appropriations .--In fiscal year
1998, reductions were made to a number of accounts due to limitations or
reductions imposed in various areas, such as the Transportation
Administration Services Center and the Presidential line-item veto. In
the Senate Committee report, each account head shows the amount
appropriated in Public Law 105 66 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 1998 DEPARTMENT OF TRANSPORTATION APPROPRIATIONS
Account Public Law 105 66 President's line-item veto Public Law 105 119 Net appropriation
Appropriations GP 320 TASC Appropriations transfer from DOS
Office of the Secretary: $61,000,000 -$343,000 $60,657,000
---------------- ------------- ---------------------------------- ----------- ---------------
Subtotal -363,000
================ ============= ================================== =========== ===============
U.S. Coast Guard: Operating expenses (includes $300,000,000 for defense-related activities) 2,715,400,000 -529,000 $63,000 2,714,934,000
================ ============= ================================== =========== ===============
Federal Aviation Administration: Operations 5,301,934,000 -939,000 1,554,000 5,302,549,000
================ ============= ================================== =========== ===============
Federal Highway Administration: (552,266,000) ( -610,000) (551,656,000)
---------------- ------------- ---------------------------------- ----------- ---------------
Subtotal -657,000
================ ============= ================================== =========== ===============
National Highway Traffic Safety Administration: 74,901,000 -81,000 74,820,000
---------------- ------------- ---------------------------------- ----------- ---------------
Subtotal -178,000
================ ============= ================================== =========== ===============
Federal Railroad Administration: 20,290,000 -29,000 20,261,000
---------------- ------------- ---------------------------------- ----------- ---------------
Subtotal -49,000 -5,280,000
================ ============= ================================== =========== ===============
Federal Transit Administration: 45,738,000 -124,000 45,614,000
---------------- ------------- ---------------------------------- ----------- ---------------
Subtotal -124,000 -500,000
================ ============= ================================== =========== ===============
St. Lawrence Seaway Development Corporation: Operations and maintenance 11,200,000 -7,000 11,193,000
Research and Special Programs Administration: 28,450,000 -48,000 -450,000 27,952,000
---------------- ------------- ---------------------------------- ----------- ---------------
Subtotal -92,000 -450,000
================ ============= ================================== =========== ===============
Office of the Inspector General: Salaries and expenses 42,000,000 -59,000 41,941,000
================ ============= ================================== =========== ===============
Bureau of Transportation Statistics\1\ (25,000,000) ( -47,000) (24,953,000)
================ ============= ================================== =========== ===============
Surface Transportation Board: Salaries and expenses 13,853,000 -3,000 13,850,000
================ ============= ================================== =========== ===============
Total reductions, Department of Transportation -3,000,000 -6,230,000 1,617,000
\1\BTS reductions in parentheses included under Federal-aid highways.
U.S. COAST GUARD
SUMMARY OF FISCAL YEAR 1999 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 $3,959,757,000 for
the activities of the Coast Guard in fiscal year 1999. The following
table summarizes the Committee's recommendations:
[In thousands of dollars]
Program Fiscal year-- Committee recommendations
1998 enacted 1999 estimate
Operating expenses\1\\2\ 2,715,400 2,771,705 2,761,603
Acquisition, construction, and improvements\3\\4\ 397,850 442,773 388,693
Environmental compliance and restoration 21,000 21,000 21,000
Alteration of bridges 17,000 20,000
Retired pay 653,196 684,000 684,000
Reserve training 67,000 67,000 67,000
Research, development, test, and evaluation 19,000 18,300 17,461
Boat safety 35,000
-------------- --------------- -----------
Total 3,925,446 4,004,778 3,959,757
\1\Excludes reduction for TASC pursuant to section 320 of Public Law 105 66; excludes transfer from Department of State pursuant to Public Law 105 119.
\2\Fiscal year 1998 enacted and fiscal year 1999 Committee recommended amount include $300,000,000 in defense discretionary funding; fiscal year 1999 estimate includes $309,000,000, both amounts for national security activities of the Coast Guard and scored against budget function 050 (defense).
\3\Includes $9,000,000 for fiscal year 1998 and $1,000,000 for fiscal year 1999 in proposed asset sales.
\4\Fiscal year 1999 estimate includes $35,000,000 in proposed navigation assistance tax fees.
OPERATING EXPENSES
General Trust Total
Appropriations, 1998\1\ $2,690,400,000 $25,000,000 $2,715,400,000
Budget estimate, 1999\2\ 2,746,705,000 25,000,000 2,771,705,000
Committee recommendation\3\ 2,741,603,000 25,000,000 2,761,603,000
Secretary's discretionary transfer authority 60,000,000 60,000,000
---------------- ------------- ----------------
Total available funds 2,793,603,000 25,000,000 2,821,603,000
\1\Includes $300,000,000 for national security activities scored against budget function 050 (defense). Excludes reductions for TASC pursuant to section 320 of Public Law 105 66; excludes transfer from Department of State pursuant to Public Law 105 119.
\2\Includes $309,000,000 for national security activities scored against budget function 050 (defense).
\3\Includes $300,000,000 for national security activities scored against budget function 050 (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
$2,761,603,000, including $25,000,000 from the oilspill liability trust
fund and $300,000,000 from function 050 for the Coast Guard
defense-related activities.
The Committee notes that the cost per average FTE for the Coast Guard
in the most recent complete fiscal year is $65,560. The anticipated cost
per average FTE for fiscal year 1998 is $69,630. The Committee
recommendation provides sufficient resources for an average FTE cost
greater than that anticipated for fiscal year 1998 at staffing levels
above current levels. The Committee also notes that the 5-year FTE
experience indicates that the Coast Guard tends to lag behind requested
FTE levels. The Committee encourages the Coast Guard to strive to reduce
the ratio of officers to enlisted and to report to the Committee by
March 1, 1999, on the officer-to-enlisted ratio over the past 10 years
with comparable officer-to-enlisted ratios from the other services.
[In thousands of dollars]
Fiscal year 1998 enacted\1\ Budget request Committee recommendation
Personnel resources: 1,246,767 1,292,406 1,290,029
----------------------------- ---------------- --------------------------
Total, personnel resources 1,702,298 1,762,471 1,752,673
============================= ================ ==========================
Operating funds and unit level maintenance: 114,009 109,563 109,563
District commands:
1st district 37,711 36,831 36,831
7th district 46,400 47,532 47,532
8th district 29,894 30,044 30,044
9th district 18,205 18,583 18,583
13th district 13,749 13,887 13,887
14th district 9,838 10,655 10,655
17th district 20,693 19,805 20,693
----------------------------- ---------------- --------------------------
Total, operating funds and unit level maintenance 617,530 619,593 619,289
============================= ================ ==========================
Depot level maintenance: 154,261 152,391 152,391
----------------------------- ---------------- --------------------------
Total, depot level maintenance 395,106 389,641 389,641
============================= ================ ==========================
Total appropriation 2,714,934 2,771,705 2,761,603
\1\Includes reduction of $529,000,000 for TASC pursuant to section 320 of Public Law 105 66; includes transfer of $63,000,000 from Department of State pursuant to Public Law 105 119.
Note.--Fiscal year 1998 enacted and fiscal year 1999 request include $300,000,000 and $309,000,000, respectively, for national security activities, budget function 050 (defense).
PERSONNEL RESOURCES
Military pay and benefits. --The Coast Guard is to be commended for
the progress that has been made over the past several years to
streamline and increase the efficiency of the uniformed services.
Staffing continues to lag behind recruiting goals, in part because of
the competition for qualified individuals that is endemic to the current
robust state of the economy. However, the 5-year FTE utilization
experience of the Coast Guard indicates that they continue to run behind
requested levels and accordingly, the Committee recommends a reduction
in the FTE levels and a commensurate reduction in the military pay and
benefits request. The Committee also notes that the streamlining effort
has not yet been fully reflected throughout the ranks and trusts that
the Commandant will continue to pursue the streamlining efforts of his
predecessor and seek a ratio of officers to enlisted personnel
consistent with the other armed services and the unique nature of the
Coast Guard's multiple mission requirements.
International engagement in Caribbean. --The Committee has not
included funding for the mobile, ship-based support and training buoy
tender platform as requested in the budget, without prejudice. Although
this may be a worthwhile foreign policy initiative, the budgetary
constraints already facing the Coast Guard make such an addition to the
Coast Guard's mission profile an unwarranted diversion of operating
funding from other critical missions.
Military health care .--The Committee has provided $121,800,000 for
military health care, an increase of $2,399,000 over fiscal year 1998
levels.
The Committee supports the Alaska Federal Health Care Partnership's
proposal to develop an Alaska-wide telemedicine network to provide
access to health services and health education information in remote
areas of Alaska to the more than 200,000 Federal beneficiaries now
living or stationed in Alaska, including more than 3,000 Coast Guard
beneficiaries. The partnership, a joint effort of the Coast Guard,
Department of Defense, Department of Veterans Affairs, and the Indian
Health Service will create 235 telemedicine health care access sites at
Coast Guard, DOD, VA and IHS clinical facilities throughout Alaska
linking remote installations and villages with tertiary health
facilities located in Anchorage and Fairbanks over a 4-year period and
should serve as a model for the use of telemedicine technology for the
delivery of health care services and health care education in remote
settings. The Committee has provided funding for the Coast Guard to
participate in the partnership's Alaska telemedicine project.
Training and education .--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
$65,012,000 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.
OPERATING FUNDS AND UNIT LEVEL MAINTENANCE
BILL LANGUAGE
National security .--The Committee's recommendation includes
$300,000,000 from the defense function 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 Operation Desert Thunder in the Persian Gulf and 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.
OTHER
Mackinaw .--The bill includes funding for continued operation and
maintenance of the icebreaking cutter Mackinaw during fiscal year 1999.
Drug interdiction activities .--The Committee has provided the
requested $369,000,000 for the war on drugs. It should be left to the
Commandant's discretion how the drug interdiction activities 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.
Global marine distress signal system [GMDSS] .--The Committee is
concerned with potential problems with the implementation of the global
marine distress signal system [GMDSS]. The Federal Communications
Commission [FCC] has adopted regulations that will require GMDSS units
to be installed on all vessels, including fishing vessels, over 300
tons. This is intended to replace ship-to-ship emergency communications
with an automated ship-to-shore system. Several problems exist with the
GMDSS concept as it would be applied.
One of the most serious problems would be that vessels carrying GMDSS
equipment would no longer be required to monitor other communications
channels including those most frequently used by fishing vessels. Most
successful rescues are performed by other nearby commercial vessels, and
under this new regime, the distressed vessel would have to rely on the
Coast Guard to direct nearby vessels to the incident site. This will
cause an unnecessary delay in response and could substantially degrade
current levels of safety.
Other potential problems include: (1) whether new shore-based
stations will provide adequate listening coverage for all parts of the
Bering Sea; (2) cost per vessel of installing the new equipment; (3)
lack of adequate training for system operators; and (4) whether
manufacturers of GMDSS equipment are capable of supplying the number of
units that will be required by February 1, 1999. The Committee directs
the Commandant to ensure that the Coast Guard's mission to ensure the
safety of life at sea is not compromised by the new GMDSS requirements
and to report to the House and Senate Committees on Appropriations on
what actions, if any, are necessary to provide this assurance.
Marine Fire and Safety Association .--The Committee remains
supportive of efforts by the Marine Fire and Safety Association [MFSA]
to provide specialized firefighting 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 $178,000 to continue
efforts by the nonprofit organization comprised of numerous fire
departments on both sides of the Columbia River. The funding will be
utilized to provide specialized communications, firefighting training
and equipment, and to implement the oilspill response contingency plan
for the Columbia River.
Seasonal rescue capability. --The Committee remains concerned about
maintaining critically important Coast Guard air rescue response time in
the New York City area during the peak boating season. Therefore, the
Committee directs the Coast Guard to establish and operate a seasonal
air facility in the New York City area to provide helicopter rescue
capability during the period April 15 through October 15.
Container Inspection Program. --The Committee recommended funding
level includes $1,191,000 for the restoration of the Container
Inspection Program. The Committee rejects the request to downsize the
Coast Guard container inspection work force and has provided sufficient
funds to maintain the inspector work force at the fiscal year 1998
level. Testimony by the Commandant before the Committee indicates that,
while the Coast Guard proposal is presented as a reduction solely to the
container inspector work force, the actual effect of the reduction would
be to cut personnel who are devoting a majority of their time to other
critical marine safety functions at the direction of the captain of the
port. As such, the proposed reduction, rather than serving to reduce
only container inspections, would effectively reduce numerous other
critical marine safety activities.
These activities include the inspection of tankships and waterfront
facilities handling crude oil, petroleum products and hazardous
materials for compliance with safety and pollution prevention
regulations; the inspection of foreign flag vessels under the Port State
Control Program for protection of U.S. ports and harbors from the
hazards posed by poorly maintained and unseaworthy vessels; the timely
response to pollution incidents and oversight of pollution cleanup
activities; and the performance of periodic shoreside and waterborne
harbor patrols for law enforcement, port risk assessment and
identification of potential safety hazards. The Committee continues to
view the Container Inspection Program as a critical marine safety task
and an important component of the Coast Guard's port safety mission,
especially in light of the continued growth in containerized cargo
entering U.S. ports.
Ballast water management program .--The Committee recommended
funding level includes $2,000,000 to implement the nationwide ballast
water management program.
USCG Station Rockaway, NY .--The Committee directs the Coast Guard
to provide, on a quarterly basis, a report to the Appropriations
Committees on the status of a readiness and manpower capability of the
Rockaway, NY, U.S. Coast Guard Station.
Secretary's discretionary transfer authority .--The bill includes
language that permits the Secretary to transfer up to $60,000,000 from
Federal Aviation Administration operations to Coast Guard operating
expenses for the purpose of providing additional funds for drug
interdiction activities.
User fees .--The bill includes language that prohibits the planning,
finalization, or implementation of any regulation that would promulgate
new maritime user fees not specifically authorized by law after the date
of enactment of this act.
ACQUISITION, CONSTRUCTION, AND IMPROVEMENTS
General Trust Total
Appropriations, 1998\1\ $377,850,000 $20,000,000 $397,850,000
Budget estimate, 1999\2\ 422,773,000 20,000,000 442,773,000
Committee recommendation 366,093,000 20,000,000 388,693,000
\1\Includes $9,000,000 in asset sales.
\2\Includes $1,000,000 in asset sales and $35,000,000 in proposed navigation assistance fees.
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 1998 enacted\1\ Fiscal year 1999 estimate\2\ Committee recommendation
Vessels 212,100 269,573 215,473
Aircraft 25,800 37,131 46,131
Other equipment 44,650 33,969 35,389
Shore facilities and aids to navigation 68,300 53,650 43,250
Personnel and related support 47,000 48,450 48,450
----------------------------- ------------------------------ --------------------------
Total 397,850 442,773 388,693
\1\Includes $9,000,000 in asset sales.
\2\Includes $1,000,000 in asset sales and $35,000,000 in proposed navigation assistance fees.
VESSELS
The Committee recommends $215,473,000 for vessel acquisition and
improvement. The projected allocation of these funds is shown in the
table below:
VESSELS
[In thousands of dollars]
Fiscal year 1999 estimate Committee recommendation
Acquire vessels and equipment: 105,000 45,000
Stern loading buoy boat replacement 11,773 11,773
Survey and design--cutters and boats 500 500
Mackinaw replacement 4,000
ATS 1 conversion 10,000 14,000
Surface search radar replacement project 12,900 12,900
Deepwater capability replacement 28,000 28,000
Repair, renovate, or improve existing vessels and small boats: 3,800 3,800
--------------------------- --------------------------
Total (new program level) 269,573 215,473
Seagoing buoy tender [WLB] replacement .--The Coast Guard is in the
process of replacing its 50-year-old fleet of seagoing buoy tenders with
up to 16 new tenders. The request of $105,000,000 for fiscal year 1999
is to pay for the award of two ships 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 no earlier than the
fourth quarter of fiscal year 1998.
The Committee continues to be concerned about the growing carryover
balances in this program. Last year, the Committee maintained the
funding in this account pursuant to the belief that the Coast Guard
would be able to obligate a substantial portion of the funds. To date,
that has not happened.
In addition, this program is of concern to the Committee due to the
increasing program administration costs, the vacillating sail-away
costs, and the current unobligated balance. The Coast Guard estimates
that the third and fourth vessels in the procurement cost a total of
$65,000,000. The current request for two vessels under the anticipated
full production procurement contract is $105,000,000. The cost
escalation of this vessel procurement is of great concern to the
Committee, and accordingly, the Committee recommends a reduction of
$60,000,000 to the request. When combined with the unobligated balances,
the program funding level should be sufficient to award a contract for
two vessels at the average cost of the initial procurement assuming the
cost profiles for the procurement remain stable for more than a couple
of months. The Committee understands that the contract is structured for
a minimum of two ships in fiscal year 1999. The Committee's intent is to
provide sufficient funds for the Coast Guard to contract for the two
vessels at a reasonable price and, at the same time, clear any
unobligated balances associated with the program. The Coast Guard shall
provide an analysis of the proposed procurement to the Committee prior
to the obligation of these funds including an estimate of the cost of
the complete procurement to fill the requirement for seagoing buoy
tenders.
Coastal buoy tender [WLM] replacement .--The Committee has provided
$31,000,000 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
$31,000,000 for fiscal year 1999 is for economic price adjustments,
change orders, logistics, and administration. All 14 ships have been
ordered.
Coastal patrol boat/82-foot WPB replacement .--The Committee has
provided $37,600,000 for the coastal patrol boat replacement program.
This program would replace the 82-foot coastal patrol boats which are
over 30 years old. The $37,600,000 request for fiscal year 1999 was to
procure eight new boats.
The Committee had hoped to procure additional CPB's by exercising
existing options to provide the Coast Guard increased flexibility in
asset deployment at an earlier date than under the current procurement
schedule, but budgetary constraints make that impracticable at this
time. 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 $11,773,000 in
fiscal year 1999 to procure eight new buoy boats.
Mackinaw replacement .--The Committee recommends $4,000,000 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 Coast
Guard 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 vessel 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 January 31, 1999.
ATS 1 conversion .--The Committee recommends $14,000,000 for
conversion and the addition of a flight deck.
Deepwater capability replacement.-- The Committee has provided
$28,000,000 consistent with the budget request. The Committee is
concerned with the aggressive and novel approach envisioned by the Coast
Guard in the deepwater capability study and procurement and notes that
the Coast Guard and the Department have a history of difficulty with
large complex procurements or asset modifications. The deepwater
procurement promises to be the most complex and potentially
controversial of procurements that the Coast Guard has managed.
Accordingly, the Committee directs the Coast Guard to report to the
House and Senate Committees on Appropriations, the House Transportation
and Infrastructure Committee, and the Senate Commerce, Science, and
Transportation Committee prior to the downselection concerning the
anticipated number of project teams, the anticipated role of the
Government team, and the anticipated schedule for final contract award.
The Committee encourages the Department and the Coast Guard to structure
the procurement to provide the greatest possible flexibility for the
procurement, cost competitiveness, and diversity of approach for meeting
the deepwater mission requirements.
The Committee is concerned about the inclusion of a Presidential
advisory council on Coast Guard roles and missions as part of the
Deepwater capability replacement analysis justification. The
justification indicated that the council would convene in early 1998,
but as of June 10, 1998, the Committee had not been made aware of the
formulation of such a council, much less any meetings. Before any funds
are committed to initiate such a roles and mission review council, the
Committee expects to be briefed on the expected composition of any such
proposed council, the charter for any such council, and the anticipated
timetable for completion of such a review. The Committee is concerned
that too much time has elapsed in fiscal year 1998 for the initiation of
such a review to have any meaningful contribution to the fiscal year
1999 appropriations process and accordingly, directs that funding for
such a review council be requested in the fiscal year 2000 budget
submission.
Polar class icebreaker reliability improvement project [RIP]. --The
Comittee recommends $4,000,000 for this project and reiterates the cost
overrun and project management concerns noted in the fiscal year 1998
conference report.
AIRCRAFT
For aircraft procurement, the Committee recommends $46,131,000. Funds
for aircraft acquisitions are distributed as follows:
AIRCRAFT
[In thousands of dollars]
Fiscal year 1999 estimate Committee recommendation
HC 130 engine upgrade 9,941 9,941
HH 65A helicopter kapton rewiring 4,500 4,500
HH 65A engine control program 9,000
Long range search aircraft capability preservation 1,590 1,590
HH 65A helicopter mission unit computer unit replacement 3,000 3,000
HC 130 aircraft sensor upgrade 11,000 11,000
HU 25 aircraft avionics improvements 3,500 3,500
HH 60J navigation upgrade 1,100 1,100
HC 130 side looking airborne radar [SLAR] 2,500 2,500
--------------------------- --------------------------
Total 37,131 46,131
HH 65A performance limitations. --The Committee understands that
there are a large number of mission situations where the combination of
current mission weight requirements, fuel load, temperature, altitude,
and sea state must be traded off with mission range, on-station time,
and shipboard operations. A full authority digital electronic control
[FADEC] engine control program, currently anticipated as a life cycle
cost reduction and safety initiative in fiscal year 2000, is an
essential initial step to restoring power margins on the HH 65.
The Committee recommends $9,000,000 to initiate the FADEC program a
year early and to initiate any associated engine upgrade engineering
efforts required to facilitate a cost-effective power upgrade program.
The Committee further requests the Coast Guard to provide a description
of the limitations and tradeoffs mentioned above, with relevant measures
of how frequently power limitations restrict the HH 65 below original
Coast Guard requirements and the impact of such limitations. Further,
the Committee requests the Coast Guard to provide a plan to restore
needed power margins while accommodating past and future weight growth
over the second half of the HH 65's useful life. Please provide this
report by March 1, 1999.
OTHER EQUIPMENT
The Committee recommends $35,389,000. The following table displays
the project allocations:
OTHER EQUIPMENT
[In thousands of dollars]
Fiscal year 1999 estimate Committee recommendation
Fleet logistics system [FLS] 4,669 4,669
Ports and waterways safety system [PAWSS] 6,600 5,500
Marine information for safety and law enforcement [MISLE] 6,100 4,000
Local notices to mariners [LNM] automation 1,300 1,000
Defense message system [DMS] impementation 800 800
Communication system [COMMSYS] 2000 2,000 1,000
Differential global positioning system [DGPS] 2,600 9,520
Personnel management information system/joint uniform military pay system II 1,900 1,900
Aviation logistics management information system [ALMIS] 1,000 1,000
National distress system modernization 3,000 2,000
Commercial satellite communication upgrade |
