Statement of Administration Policy: H.R. 3675 - Department of Transportation and Related Agencies Appropriations Bill, FY 1997

(House Floor)
(Sponsors: Livingston (R), Louisiana; Wolf (R), Virginia)

This Statement of Administration Policy provides the Administration's views on H.R. 3675, the Transportation and Related Agencies Appropriations Bill, FY 1997, as reported by the House Appropriations Committee.

The Administration is pleased with many aspects of the Committee bill. However, the bill contains specific provisions that are troubling, as discussed below.

In general, the Committee has reduced funding requests for certain high-priority safety, operating, and infrastructure financing programs, largely to permit continued funding of earmarked highway projects. These high-priority programs are necessary to ensure die continued safe and efficient movement of passengers and freight across all modes of transportation. The Administration's concerns regarding these programs can be addressed, in large part, within the constraints of the Committee's 602(b) allocation. For example, funding offsets could be found by adopting the Administration's proposals regarding user fees for FAA services arid limiting funding for highway demonstration projects.

Essential Operations

This year, as before, this Administration has made ensuring the safety of the traveling public a primary goal. In particular, the Administration has again made addressing the challenges facing the Federal Aviation Administration (FAA) a priority. With Congress' support, we have made significant strides in reforming the FAA. As we pursue the final component of this effort, meaningful long-term financial stability, it is imperative that FAA's safety programs remain fully-funded. While the Committee's mark provides substantial increases for FAA's Operations account, the Committee's recommendation is $1$ million less than requested. In addition, reductions of close to $29 million in Coast Guard operations could undermine the Coast Guard's ability to ensure the safety of the boating public, as well as to fulfill its law enforcement and national security obligations.

State Infrastructure Banks

The Administration is very concerned that the Committee has chosen not to fund the State Infrastructure Banks (SIBs) program. In this time of limited Federal resources, it is increasingly important that States and localities be permitted to leverage transportation infrastructure funds. States have expressed substantial interest in this program and the flexibility it gives them to identify and pursue their highest-priority transportation projects.

Amtrak

The Administration supports the Committee's full funding of the request for Amtrak's operating subsidy. However, the Committee's $376 million reduction to Amtrak capital funding and the Northeast Corridor Improvement Program would jeopardize Amtrak's ability to become self-sustaining by FY 2002, a goal that requires upgrading Amtrak's physical assets. Amtrak has made substantial strides toward improving its financial strength and viability.- Steps should be taken to accelerate this trend, rather than arrest it.

Transit Operating Assistance

The Committee proposes to reduce the Administration's request for transit operating assistance by 20 percent, to $400 million. This reduction, along with the proposed reductions in transit capital programs, would exacerbate mass transit service reductions and fare increases. Transit-dependent rural communities, small urban areas, and the working poor would be affected by these reductions. The Administration's requested level for operating assistance is needed in order to avoid diminishing transit service.

Earmarking

The Administration commends the Committee for not including add-on funds for highway demonstration projects. However, the Administration objects to the Committee's earmarking of 23.transit projects for which Full Funding Grant Agreements (FFGAs) have neither been signed nor are expected before the beginning of FY 1997. Many of these projects have yet to complete cost effectiveness or engineering analyses. Funding to complete these projects would be in addition to the $3.5 billion outstanding Federal share of projects with existing or anticipated FFGAs. The earmarks create expectations that may be difficult to meet under a balanced budget.

Domestic Content Labeling Audits

The Administration requests that the House add back $500, 000 for audits by the National Highway Traffic Safety Administration to evaluate industry compliance with the American Automobile Labeling Act. This Act requires automobiles and light trucks sold in the United States to be labeled to show domestic content. This information is needed to monitor foreign countries' compliance with U.S. trade laws.

Language Provisions

The Administration opposes the provision of the Committee bill that would prohibit any funds from being used for changes in Corporate Average Fuel Economy (CAFE) standards. The provision would effectively dictate that any CAFE rulemaking not deviate from existing standards. The Administration believes that any rulemaking related to CAFE standards should be addressed in an open proceeding in which relevant issues are considered and in which all interested persons and parties are able to participate in fashioning the appropriate outcomes.

The Administration also opposes restricting the National Highway Traffic Safety Administration's ability to promulgate rules on tire rating. Neither of these restrictions is necessary or appropriate.

In addition to the concerns discussed above, the Administration has additional concerns with the bill that were detailed in a June 18th letter to the House Appropriations Committee.