Statement of Administration Policy: H.R. 2490 - Department of Transportation and Related Agencies Appropriations Bill, FY 1994

(House Rules)
(Sponsors: Natcher (D), Kentucky; Carr (D), Michigan)

This Statement of Administration Policy expresses the Administration's views on H.R. 2490, the Department of Transportation and Related Agencies Appropriations Bill, FY 1994, as reported by the House Appropriations Committee. The Administration supports House passage of H.R. 2490 and will work with Congress to address the concerns described below.

President's Investment Program

The Administration supports the Committee's action that funds a significant portion of the Federal-aid highways and mass transit investment proposals. The Administration objects, however, to the lack of funding for other investment proposals, in particular, high-speed rail. The high-speed rail initiative represents an important initial step to speed and improve intercity rail transportation. In addition, the Administration is disappointed that the Committee was not able to fund the Federal-aid highway program at the levels authorized in the Intermodal Surface Transportation Efficiency Act.

Reductions in requested funding for investment proposals could be restored, in part, through a reallocation of funding from lower-priority, earmarked, or unrequested programs included in the Committee bill. For example, over $300 million is provided for place-specific highway projects. The House is urged to reserve funding for unauthorized investment proposals, such as high-speed rail, so that these proposals can be funded upon authorization.

Investment Criteria

The Administration commends the Committee for its effort to develop and apply a set of economically-based investment criteria for transportation projects. The Administration supports the use of these types of performance indicators.

Other

The Administration is pleased that the Committee has provided the Secretary of Transportation the discretion to allocate $100 million for transit new start projects based on the Department's assessment of needs and priorities.

Additional Administration concerns with the Committee bill are contained in the attachment.

Attachment

Attachment
(House Rules)

ADDITIONAL CONCERNS

H.R. 2490 — DEPARTMENT OF TRANSPORTATION AND RELATED AGENCIES APPROPRIATIONS BILL, FY 1994

FUNDING ISSUES

The Administration looks forward to working with the Congress later in the process in an effort to address the following concerns.

Coast Guard. The $74 million reduction to operating expenses would reduce the level and quality of service the Coast Guard provides. For example, notwithstanding the Committee's funding reduction, flight pay for Coast Guard pilots remains a statutory requirement and will have to be absorbed. The $139 million reduction to AC&I would constrain the Coast Guard's ability to support its capital plant.

Federal Aviation Administration. The Administration objects to the continuation of the controller pay demonstration project at the expense of higher-priority operations activities, including safety workforce levels. The reduction to the facilities and equipment account could delay modernization projects, such as the Advanced Automation System and the Voice Switching and Control System.

Amtrak. The $65 million reduction for Amtrak capital would leave insufficient funds to continue purchase of new equipment and maintenance of stations, or to upgrade equipment repair and overhaul shops.

GENERAL PROVISIONS

Chicago O'Hare Slots. Section 336 would prohibit the withdrawal of slots from U.S. carriers for use by a foreign carrier to provide international service. This could prohibit the United States from fulfilling its international treaty obligations. This provision could be expected to trigger retaliation by other countries and limit U.S. ability to secure increased access for U.S. carriers to foreign airports. This issue needs to be examined, but would be better dealt with through the regulatory process.

Collection of Passenger Facility Charges on Frequent Flyer Tickets. Section 337 would prohibit the awarding of airport improvement program funds to any airport that allows the collection of passenger facility charges (PFCs) on frequent flyer tickets. This provision would extend the current prohibition to PFCs that were grandfathered under a similar provision in last year's bill. The Administration objects to this extension. Retroactively restricting PFC collections may prevent an airport from fulfilling a bond covenant and could limit an airport's ability to use PFCs to back bonds in the future. Furthermore, this issue would be more appropriately addressed through the authorization process.