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28-003

109TH CONGRESS

Report

HOUSE OF REPRESENTATIVES

2d Session

109-495
DEPARTMENTS OF TRANSPORTATION, TREASURY, AND HOUSING AND URBAN DEVELOPMENT, THE JUDICIARY, DISTRICT OF COLUMBIA, AND INDEPENDENT AGENCIES APPROPRIATIONS BILL, 2007

June 9, 2006- Committed to the Committee of the Whole House on the State of the Union and ordered to be printed

Mr. KNOLLENBERG, from the Committee on Appropriations, submitted the following

R E P O R T

together with

ADDITIONAL VIEWS

[To accompany H.R. 5576]

The Committee on Appropriations submits the following report in explanation of the accompanying bill making appropriations for the Departments of Transportation, Treasury, and Housing and Urban Development, the Judiciary, District of Columbia, and independent agencies for the fiscal year ending September 30, 2007.

INDEX TO BILL AND REPORT
Page number
Bill Report
Operating plan and reprogramming procedures 2
Relationship with budget offices 3
The effect of guaranteed spending 3
Tabular summary 4
Committee hearings 4
Program, project, and activity 5
Title I--Department of Transportation 2 5
Title II--Department of the Treasury 63 90
Title III--Department of Housing and Urban Development 80 109
Title IV--The Judiciary 134 163
Title V--District of Columbia 142 168
Title VI--Executive Office of the President and Funds
Appropriated to the President 176 177
Title VII--Independent Agencies:
Architectural and Transportation Barriers Compliance Board 189 185
Consumer Product Safety Commission 189 186
Election Assistance Commission 190 186
Federal Deposit Insurance Corporation 190 187
Federal Election Commission 190 187
Federal Labor Relations Authority 191 188
Federal Maritime Commission 192 188
General Services Administration 192 189
Merit Systems Protection Board 203 198
Morris K. Udall Foundation 204 198
National Archives and Records Administration 205 199
National Credit Union Administration 206 201
National Transportation Safety Board 207 202
Neighborhood Reinvestment Corporation 208 203
Office of Government Ethics 208 203
Office of Personnel Management 208 204
Office of Special Counsel 212 207
Selective Service System 212 207
United States Interagency Council on Homelessness 213 208
United States Postal Service 213 208
United States Tax Court 214 209
Title VIII--General Provisions--This Act 215 209
Title IX--General Provisions: Departments, Agencies, and Corporations 222 210
House of Representatives Report Requirements:
Constitutional authority 213
Statement of general performance goals and objectives 214
Appropriations not authorized by law 214
Transfers of funds 216
Compliance with rule XIII, clause 3(e) (Ramseyer rule) 219
Comparison with the budget resolution 266
Five-year outlay projections 267
Financial assistance to state and local governments 267
Rescissions 233
Changes in the application of existing law 233
Full Committee votes
Tabular summary of the bill

OPERATING PLAN AND REPROGRAMMING PROCEDURES

The Committee continues to have a particular interest in being informed of reprogrammings which, although they may not change either the total amount available in an account or any of the purposes for which the appropriation is legally available, represent a significant departure from budget plans presented to the Committee in an agency's budget justifications and supporting documents, the basis of this appropriations Act.

Consequently, the Committee directs the departments, agencies, boards, commissions, corporations and offices funded at or in excess of $100,000,000 in this bill, to consult with the Committee prior to each change from the approved budget levels in excess of $500,000 between programs, activities, object classifications or elements unless otherwise provided for in the Committee report accompanying this bill. For agencies, boards, commissions, corporations and offices funded at less than $100,000,000 in this bill, the reprogramming threshold shall be $250,000 between programs, activities, initiatives object classifications or elements unless otherwise provided for in the Committee report accompanying this bill. Additionally, the Committee expects to be promptly notified of all reprogramming actions which involve less than the above-mentioned amounts. If such actions would have the effect of significantly changing an agency's funding requirements in future years, or if programs or projects specifically cited in the Committee's reports are affected by the reprogramming, the reprogramming must be approved by the Committee regardless of the amount proposed to be moved. Furthermore, the Committee wishes to be consulted regarding reorganizations of offices, programs, and activities prior to the planned implementation of such reorganizations.

The Committee also directs that the Departments of Transportation, Treasury and Housing and Urban Development, as well as the Judiciary, the General Services Administration, and the Office of Personnel Management, shall submit operating plans, signed by the respective secretary, administrator, or agency head, for the Committee's review within 60 days of the bill's enactment.

RELATIONSHIP WITH BUDGET OFFICES

Through the years, the Committee has channeled most of its inquiries and requests for information and assistance through the budget offices of the various departments, agencies, and commissions. The Committee has often pointed to the natural affinity and relationship between these organizations and the Committee which makes such a relationship workable. The Committee reiterates its longstanding position that while the Committee reserves the right to call upon all offices in the departments, agencies, and commissions, the primary conjunction between the Committee and these entities must normally be through the budget offices. The Committee appreciates all the assistance received from each of the departments, agencies, and commissions during the past year. The workload generated by the budget process is large and growing, and therefore, a positive, responsive relationship between the Committee and the budget offices is absolutely essential to the appropriations process.

THE EFFECT OF GUARANTEED SPENDING

Over the objections of the Appropriations and Budget Committee, in 1998 the Transportation Equity Act for the 21st Century (TEA-21) amended the Budget Enforcement Act to provide two new additional spending categories or `firewalls', the highway category and the mass transit category. The Safe, Accountable, Flexible, Efficient, Transportation Equity Act: A Legacy for Users (SAFETEA-LU) extended the highway and mass transit firewalls through fiscal year 2009. The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (AIR-21) provided a similar treatment for certain aviation programs, which were later extended in the Vision-100 Century of Aviation Reauthorization Act. These Acts have produced the same results: they significantly raised spending, and they have had the effect of prohibiting the Appropriations Committee from reducing those spending levels in the annual appropriations process. As the Committee noted during deliberations on these bills, the Acts essentially created mandatory spending programs within the discretionary caps. This undermines Congressional flexibility to fund other equally important programs not protected by funding guarantees and to address emerging priorities, such as homeland security and overseas military requirements, within projected budget totals. In addition, the reorganization of the Committee in the 109th Congress posed additional challenges in this regard, because funding guarantees for selected transportation programs compete in the budget process against funding for non-transportation agencies such as the Department of Housing and Urban Development, Office of National Drug Control Policy, enforcement of anti-terrorism and money laundering activities in the Treasury Department, the Internal Revenue Service, the General Services Administration, and the Judiciary. In addition, funding guarantees skew transportation priorities inappropriately, by providing increases to highway, transit, and airport spending while leaving safety-related operations in the FAA, FRA and Amtrak to scramble for the remaining resources. As in past years, the Committee has done all in its power, considering this environment, to produce a balanced bill providing adequately for all modes of transportation as well as all non-transportation programs under the jurisdiction of this bill.

QUALITY OF BUDGET DOCUMENTS

For years, the Committee has directed departments and agencies to improve the budget justification document quality and presentation by including relevant and specific budget information. While the Committee has seen some improvement in a few submissions, most justifications continue to be filled with references to the Program Assessment Rating Tool (PART), drowning in pleonasm, and yet still devoid of useful information. The Committee strongly encourages the administration to use a meaningful system of evaluation to justify proposed program funding levels, as long as the basis for the evaluations will also be shared with the Committee. The Committee finds little use for a budget justification which does not reveal specific details of the measurable indicators and standards used to evaluate a program's performance, relevance, or adherence to underlying authorization statute. Further, the Committee has little patience for secretaries and administrators who cannot explain the rationale behind a program's funding level other than `the PART score,' `getting to green,' or `this is what OMB provided.' The Committee welcomes the input from the agencies, and is very interested in the methodologies used by the administration to fund various program priorities.

TABULAR SUMMARY

A table summarizing the amounts provided for fiscal year 2006 and the amounts recommended in the bill for fiscal year 2007 compared with the budget estimates is included at the end of this report.

COMMITTEE HEARINGS

The Committee has conducted extensive hearings on the programs and projects provided for in this bill. Pursuant to House rules, each of these hearings was open to the public. The Committee received testimony from cabinet officers, agency heads, inspectors general, and other officials of the executive branch in areas under the bill's jurisdiction. In addition, the Committee has considered written material submitted for the hearing record by Members of Congress, private citizens, local government entities, and private organizations. The bill recommendations for fiscal year 2007 have been developed after careful consideration of all the information available to the Committee.

PROGRAM, PROJECT, AND ACTIVITY

During fiscal year 2007, 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 an appropriations Act (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 capital investment grants, Federal Transit Administration. In addition, the percentage reductions made pursuant to a sequestration order to funds appropriated for facilities and equipment, Federal Aviation Administration 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.

TITLE I--DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

SALARIES AND EXPENSES


-----------------------------------------------
-----------------------------------------------
Appropriation, fiscal year 2006    $84,051,000 
Budget request, fiscal year 2007    92,742,000 
Recommended in the bill             92,558,000 
Bill compared with:                            
  Appropriation, fiscal year 2006   +8,507,000 
  Budget request, fiscal year 2007    -184,000 
-----------------------------------------------

COMMITTEE RECOMMENDATION

The bill provides $92,558,000 for the salaries and expenses of the various offices comprising the office of the secretary. The Committee's recommendation includes individual funding for all of the offices within the office of the secretary, as has been done in past years, rather than consolidating them as proposed in the budget request. The following table compares the fiscal year 2006 enacted level to the fiscal year 2007 budget estimate and the Committee's recommendation by office:


--------------------------------------------------------------------------------------------------------------------------------
                                                           Fiscal year 2006 enacted Fiscal year 2007 estimate House recommended 
--------------------------------------------------------------------------------------------------------------------------------
Immediate office of the secretary                                        $2,176,000                $2,255,000        $2,255,000 
Office of the deputy secretary                                              691,000                   717,000           717,000 
Office of the executive secretariat                                       1,428,000                 1,478,000         1,478,000 
Office of the under secretary of transportation for policy               11,534,000                11,934,000        11,684,000 
Board of contract appeals                                                   690,000                   707,000           707,000 
Official of small and disadvantaged business utilization                  1,252,000                 1,286,000         1,286,000 
Office of the chief information officer                                  11,776,000                12,281,000        12,281,000 
Office of the assistant secretary for governmental affairs                2,270,000                 2,319,000         2,319,000 
Office of the general counsel                                            15,031,000                15,681,000        15,681,000 
Office of the assistant secretary for budget and programs                 8,400,000                10,002,000        10,002,000 
Office of the assistant secretary for administration                     21,811,000                25,108,000        25,108,000 
Office of public affairs                                                  1,891,000                 1,932,000         1,932,000 
Office of intelligence and security                                       2,013,000                 2,655,000         2,722,000 
Office of emergency transportation                                        3,089,000                 4,386,000         4,386,000 
Total                                                                   $84,051,000               $92,742,000       $92,558,000 
--------------------------------------------------------------------------------------------------------------------------------

Office of the under secretary of transportation for policy- The Committee provides a total of $11,684,000 for the office of the under secretary of transportation for policy, a reduction of $250,000 below the requested level. The adjustment to the request is shown below.

Deny transfer of two full-time equivalent positions (FTE) -$250,000

The Committee denies the request to create a new office, the security policy office, within the office of the under secretary of transportation for policy. In addition, the Committee denies the transfer of two FTEs from the office of intelligence and security (OIS) to this office. The Committee does not understand the need for the new office or how creation of a new office will enhance security or operations. Further, the Committee is concerned that the dissection of OIS security functions and the creation of a new bureaucratic layer between the secretary and some of those functions will create inefficiencies and duplication of effort. The Committee is concerned that this proposal will result only in the dilution of security.

Office of intelligence and security- The Committee provides $2,722,000 for the office of intelligence and security, an increase of $67,000 above the requested level. Adjustments to the request are detailed below.

Deny transfer of two FTEs +$250,000
Deny funding for one FTE -187,000

Deny transfer of two FTEs- As mentioned above, the Committee denies the transfer of two existing FTEs from OIS to the office of the under secretary of transportation for policy. OIS has served as the Department of Transportation's (DOT) primary point of contact with the Department of Homeland Security (DHS), the Homeland Security Council, and various security-related working groups since the Transportation Security Administration (TSA) was transferred to DHS. OIS advises DOT executives on policy issues related to intelligence, information sharing, and national security strategies coordinated in the Homeland Security Council. Further, OIS coordinates across all elements of DOT. Rapidly emerging threats against the transportation system may require quick decisions and immediate implementation of protective measures. The Committee believes that a robust security function should include all elements of security in a single office with a direct line of communication to the Secretary of Transportation, and therefore, denies that budget request to add needless layers of bureaucracy to this vital function.

Deny funding for one FTE- In addition, the Committee denies $183,000 in funding that was not addressed, justified, or reflected in the fiscal year 2007 budget appendix or the Office of the Secretary of Transportation's (OST) congressional justification for a `senior management position associated with reorganization.' The Committee is confused as OST's own congressional budget justification stated that no additional FTEs were required or necessary for this office. In addition, OST requested that this Committee include a provision in the fiscal year 2006 supplemental allowing OST to obtain detailees from modal agencies, free of charge, to help staff OIS. It is inconsistent that an office that requests funding for an additional FTE and detailees from the modes would also seek to transfer two existing FTEs to another office.

Disadvantaged business enterprise- The Committee is aware that the Department of Transportation recently promulgated a new rule revising and updating its regulations concerning the participation of disadvantaged business enterprises (DBEs) in concessions activities of airports receiving federal financial assistance from the airport improvement program. One of the issues addressed in the new rule is a personal net worth standard for program eligibility purposes. The Committee is also aware that certain industry groups and others have raised concerns regarding the standard and its implementation and have petitioned the department to initiate additional rulemaking on this matter. The Committee urges the department to carefully review these concerns and the basis for the standard.

Congressional budget justifications- The Committee urges the department to improve the quality of the budget submissions and to include the same level of detail that was provided in the congressional justifications presented in fiscal year 2003. Some of the budget documents submitted for fiscal year 2007 did not adhere to that standard. Therefore, the Committee again directs the department to submit its congressional justification materials at the same level of detail provided in the congressional justifications presented in fiscal year 2003. Further, the department is directed to include in the budget justification funding levels for the prior year, current year, and budget year for all programs, activities, initiatives, and program elements. Each budget submitted by the department must also include detailed justification for the incremental funding increases and additional FTEs being requested above the enacted level, by program, activity, or program element.

In addition, the Committee notes that many general provisions included in the President's budget request are not justified, addressed, nor presented in any DOT justification. Therefore, the Committee directs DOT to justify each general provision proposed either in its relevant modal congressional justification, or in the OST congressional justification.

OST currently includes a helpful discussion in its justification of changes from the current year to the request. To ensure that each adjustment is identified, the Committee directs OST in future congressional justifications to include detailed information in tabular format which identifies specific changes in funding from the current year to the budget year for each office, including each office within the office of the secretary.

Operating plan- The Committee directs the department to submit an operating plan for fiscal year 2007, signed by the secretary for review by the Committees on Appropriations of both the House and Senate within 60 days of the bill's enactment. The operating plan should include funding levels for the various offices, programs and initiatives detailed down to the object class or program element covered in the budget justification and supporting documents or referenced in the House and Senate appropriations reports, and the statement of the managers.

Bill language- The bill continues language that permits up to $2,500,000 of fees to be credited to the office of the secretary for salaries and expenses.

OFFICE OF CIVIL RIGHTS


----------------------------------------------
----------------------------------------------
Appropriation, fiscal year 2006    $8,465,000 
Budget request, fiscal year 2007    8,821,000 
Recommended in the bill             8,821,000 
Bill compared with:                           
  Appropriation, fiscal year 2006    +356,000 
  Budget request, fiscal year 2007      - - - 
----------------------------------------------

The office of civil rights is responsible for advising the secretary on civil rights and equal opportunity matters and ensuring full implementation of civil rights opportunity precepts in all of the department's official actions and programs. This office is responsible for enforcing laws and regulations that prohibit discrimination in federally operated and federally assisted transportation programs. This office also handles all civil rights cases related to Department of Transportation employees.

COMMITTEE RECOMMENDATION

The Committee provides $8,821,000 for the office of civil rights, the same as the budget request.

TRANSPORTATION PLANNING, RESEARCH, AND DEVELOPMENT


-----------------------------------------------
-----------------------------------------------
Appropriation, fiscal year 2006    $14,850,000 
Budget request, fiscal year 2007     8,910,000 
Recommended in the bill             13,000,000 
Bill compared with:                            
  Appropriation, fiscal year 2006   -1,850,000 
  Budget request, fiscal year 2007  +4,090,000 
-----------------------------------------------

This appropriation finances those research activities and studies concerned with the planning, analysis, and information development needed to support the secretary's responsibilities in the formulation of national transportation policies. It also finances the staff necessary to conduct these efforts. The overall program is carried out primarily through contracts with other federal agencies, educational institutions, nonprofit research organizations, and private firms.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $13,000,000 for transportation planning, research and development, a decrease of $1,850,000 below the fiscal year 2006 enacted level and $4,090,000 above the budget request.

WORKING CAPITAL FUND


---------------------------------------------------
---------------------------------------------------
Limitation, fiscal year 2006        ($116,834,000) 
Budget request, fiscal year 2007 1           - - - 
Recommended in the bill              (120,000,000) 
Bill compared with:                                
  Limitation, fiscal year 2006        (+3,166,000) 
  Budget request, fiscal year 2007  (+120,000,000) 
---------------------------------------------------

The working capital fund (WCF) was created to provide common administrative services to the various modes and outside entities that desire those services for economy and efficiency. The fund is financed through negotiated agreements with the department's operating administrations and other governmental elements requiring the center's capabilities.

COMMITTEE RECOMMENDATION

The Committee recommends a limitation of $120,000,000 on the working capital fund. The budget request proposed a limitless program level for the fund in fiscal year 2007. The Committee's recommendation is appropriate considering the funding levels of the operations and administrative accounts.

Modal usage of WCF- Consistent with past practice, the Committee directs the department, in its fiscal year 2007 congressional justifications for each of the modal administrations, to account for increases or decreases in WCF billings based on planned usage requested or anticipated by the modes rather than anticipated by WCF managers.

MINORITY BUSINESS RESOURCE CENTER PROGRAM


------------------------------------------------------------------------------
                                 Appropriation Limitation on guaranteed loans 
------------------------------------------------------------------------------
Appropriation, fiscal year 2006       $891,000                  ($18,367,000) 
Budget request, fiscal year 2007       891,000                   (18,367,000) 
Recommended in the bill                891,000                   (18,367,000) 
Bill compared to:                                                             
Appropriation, fiscal year 2006          - - -                        (- - -) 
Budget request, fiscal year 2007         - - -                        (- - -) 
------------------------------------------------------------------------------

The minority business resource center of the office of small and disadvantaged business utilization provides assistance in obtaining short-term working capital and bonding for disadvantaged, minority, and women-owned businesses. The program enables qualified businesses to obtain loans at prime interest rates for transportation-related projects.

COMMITTEE RECOMMENDATION

The recommendation fully funds the budget request of $495,000 to cover the subsidy costs for the loans, not to exceed $18,367,000, and $396,000 for administrative expenses to carry out the guaranteed loan program.

MINORITY BUSINESS OUTREACH


----------------------------------------------
----------------------------------------------
Appropriation, fiscal year 2006    $2,970,000 
Budget request, fiscal year 2007    2,970,000 
Recommended in the bill             2,970,000 
Bill compared with:                           
  Appropriation, fiscal year 2006       - - - 
  Budget request, fiscal year 2007      - - - 
----------------------------------------------

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 grants and contract assistance that serves DOT-wide goals.

COMMITTEE RECOMMENDATION

The Committee provides $2,970,000 for this program, equal to both the fiscal year 2006 funding level and the budget request.

NEW HEADQUARTERS BUILDING


-----------------------------------------------
-----------------------------------------------
Appropriation, fiscal year 2006 1  $49,500,000 
Budget request, fiscal year 2007    59,400,000 
Recommended in the bill                  - - - 
Bill compared with:                            
  Appropriation, fiscal year 2006  -49,500,000 
  Budget request, fiscal year 2007 -59,400,000 
-----------------------------------------------

The President's budget included funds for the new Department of Transportation headquarters building, which would consolidate all of the department's headquarters operating administration functions (except for the Federal Aviation Administration) from various locations around the Washington, DC metropolitan area into a leased building within the central employment area of the District of Columbia.

COMMITTEE RECOMMENDATION

Without prejudice, the Committee does not provide funding in fiscal year 2007 for the new headquarters building due to budget constraints.

PAYMENTS TO AIR CARRIERS

(AIRPORT AND AIRWAY TRUST FUND)


-----------------------------------------------
-----------------------------------------------
Appropriation, fiscal year 2006    $59,400,000 
Budget request, fiscal year 2007         - - - 
Recommended in the bill             67,000,000 
Bill compared with:                            
  Appropriation, fiscal year 2006   +7,600,000 
  Budget request, fiscal year 2007 +67,000,000 
-----------------------------------------------

The Essential Air Service (EAS) program was originally created by the Airline Deregulation Act of 1978 as a temporary measure to continue air service to communities that had received federally mandated air service prior to deregulation. The program currently provides subsidies to air carriers serving small communities that meet certain criteria.

The Federal Aviation Administration Reauthorization Act of 1996 (Public Law 104-264) authorized the collection of user fees for services provided by the Federal Aviation Administration (FAA) to aircraft that neither take off from, nor land in the United States, commonly known as overflight fees. In addition, the Act permanently appropriated these fees for authorized expenses of the FAA and stipulated that the first $50,000,000 of annual fee collections must be used to finance the EAS program. In the event of a shortfall in fees, the law requires FAA to make up the difference from other funds available to the agency.

The fiscal year 2007 budget proposes to fund the EAS program at a total of $50,000,000, solely from new overflight fee collections credited to the Airport and Airway Trust Fund and changes the program to require communities share in the cost of air service. The Committee finds the budget proposal unrealistic considering that in fiscal year 2006 the department came to the Committee seeking additional funding for the EAS program as several communities were in jeopardy of losing air service.

COMMITTEE RECOMMENDATION

The Committee recommends a total program level of EAS in fiscal year 2007 of $117,000,000, a $7,600,000 increase above the level provided in fiscal year 2006. This funding consists of an appropriation of $67,000,000 and $50,000,000 to be derived from overflight fee collections. In addition, bill language is included that allows the secretary to transfer up to $10,000,000 to the EAS program from the small community air service development program, if needed.

The Committee notes that workload has increased significantly as the number of EAS subsidized communities has increased by more than 50 percent since 1996, from 97 to 151. The changing structure of the industry is also having dramatic effects on services at small communities and creates challenges. In addition, VISION 100 resulted in new responsibilities for the department and established six new pilot programs. To help meet these responsibilities, the Committee provides this office with two new FTE, representing half of the request.

The Committee includes language (sec. 101) to ensure prompt availability of funds for obligation to air carriers providing service under the EAS program. The language removes an unintended penalty whereby if $50,000,000 is made immediately available by the FAA to the EAS program at the beginning of each fiscal year, the FAA must take that amount from its appropriations, without the ability to credit back amounts transferred from the FAA once sufficient overflight fees are available. Without this language, the result would be a permanent reduction in the appropriations to the FAA. The Committee has also included language that allows the secretary to take into consideration the subsidy requirements of carriers when selecting between carriers competing to provide service to a community.

The bill includes a provision (sec. 104) prohibiting the use of funds to implement an essential air service program that requires local participation.

COMPENSATION FOR AIR CARRIERS

(RESCISSION)


------------------------------------------------
------------------------------------------------
Rescission, fiscal year 2006              - - - 
Budget request, fiscal year 2007   -$50,000,000 
Recommended in the bill             -50,000,000 
Bill compared with:                             
  Rescission, fiscal year 2006      -50,000,000 
  Budget request, fiscal year 2007        - - - 
------------------------------------------------

The Air Transportation Safety and System Stabilization Act (Public Law 107-42) provided $5,000,000,000 to compensate air carriers for direct losses incurred during the federal ground stop of civil aviation after the September 11, 2001 terrorist attacks, and for incremental losses incurred between September 11 and December 31, 2001. To date, of the $5,000,000,000 appropriated, $4,603,452,933 of direct compensation payments have been made (net of repayments from carriers including a $29,000,000 repayment from Federal Express). Also to date, a total of $325,000,000 has been rescinded by Congress as surplus to need leaving a current balance of approximately $71,000,000 in the fund.

COMMITTEE RECOMMENDATION

The Committee includes language that rescinds $50,000,000 from the compensation for air carriers, consistent with the budget request. The Department of Transportation has recalibrated its litigation risk in outstanding administrative and court cases. The rescission leaves a balance of approximately $21,000,000, which DOT states will cover any potential liabilities from unresolved claims or contingent liabilities.

ADMINISTRATIVE PROVISIONS--OFFICE OF THE SECRETARY OF TRANSPORTATION

Section 101. The Committee continues a provision allowing reimbursement for fees collected and credited under 49 U.S.C. 45303.

Section 102. The Committee continues a provision allowing the Secretary of Transportation to transfer unexpended sums from `office of the secretary, salaries and expenses' to `minority business outreach'.

Section 103. The Committee continues the provision prohibiting the Office of the Secretary of Transportation from approving assessments or reimbursable agreements pertaining to funds appropriated to the modal administrations in this Act, unless such assessments or agreements have completed the normal reprogramming process for Congressional notification.

Section 104. The Committee continues the provision prohibiting the use of funds to implement an essential air service local cost share participation program.

FEDERAL AVIATION ADMINISTRATION

The Federal Aviation Administration (FAA) is responsible for the safety and development of civil aviation and the evolution of a national system of airports. The Federal Government's regulatory role in civil aviation began with the creation of an Aeronautics Branch within the Department of Commerce pursuant to the Air Commerce Act of 1926. This Act instructed the Secretary of Commerce to foster air commerce; designate and establish airways; establish, operate, and maintain aids to navigation; arrange for research and development to improve such aids; issue airworthiness certificates for aircraft and major aircraft components; and investigate civil aviation accidents. In the Civil Aeronautics Act of 1938, these activities were subsumed into a new, independent agency named the Civil Aeronautics Authority.

After further administrative reorganizations, Congress streamlined regulatory oversight in 1957 with the creation of two separate agencies, the Federal Aviation Agency and the Civil Aeronautics Board. When the Department of Transportation began its operations on April 1, 1967, the Federal Aviation Agency was renamed the Federal Aviation Administration (FAA) and became one of several modal administrations within the department. The Civil Aeronautics Board was later phased out with enactment of the Airline Deregulation Act of 1978, and ceased to exist at the end of 1984. FAA's mission expanded in 1995 with the transfer of the Office of Commercial Space Transportation from the Office of the Secretary, and decreased in December 2001 with the transfer of civil aviation security activities to the new Transportation Security Administration.

OPERATIONS

(AIRPORT AND AIRWAY TRUST FUND)


--------------------------------------------------
--------------------------------------------------
Appropriation, fiscal year 2006    $8,104,140,000 
Budget request, fiscal year 2007    8,366,000,000 
Recommended in the bill             8,360,000,000 
Bill compared with:                               
  Appropriation, fiscal year 2006    +255,860,000 
  Budget request, fiscal year 2007     -6,000,000 
--------------------------------------------------

This appropriation provides funds for the operation, maintenance, communications, and logistical support of the air traffic control and air navigation systems. It also covers administrative and managerial costs for the FAA's regulatory, international, medical, engineering and development programs as well as policy oversight and overall management functions.

The operations appropriation includes the following major activities: (1) operation on a 24-hour daily basis of a national air traffic system; (2) establishment and maintenance of a national system of aids to navigation; (3) establishment and surveillance of civil air regulations to assure safety in aviation; (4) development of standards, rules and regulations governing the physical fitness of airmen as well as the administration of an aviation medical research program; (5) administration of the acquisition, research and development programs; (6) headquarters, administration and other staff offices; and (7) development, printing, and distribution of aeronautical charts used by the flying public.

COMMITTEE RECOMMENDATION

The Committee recommends $8,360,000,000 for FAA operations, an increase of $255,860,000 above the level provided in fiscal year 2006, and $6,000,000 below the budget request.

A comparison of the fiscal year 2007 budget request to the Committee recommendation by budget activity is as follows:


-----------------------------------------------------------------------------------------
Budget activity                 Fiscal year 2007 request Fiscal year 2007 recommendation 
-----------------------------------------------------------------------------------------
Air traffic organization                  $6,704,223,000                  $6,698,728,000 
Aviation safety                              981,668,000                     997,718,000 
Commercial space transportation               11,985,000                      11,985,000 
Financial services 1                                                          92,227,000 
Human resources 1                                                             87,850,000 
Region and center operations 1                                               272,821,000 
Staff offices 1                              668,125,000                     175,392,000 
Information services                                                          36,779,000 
Adjustments                                                                  -14,000,000 
Total                                     $8,366,000,000                  $8,360,000,000 
-----------------------------------------------------------------------------------------

TRUST FUND SHARE OF FAA BUDGET

The bill derives $11,787,000,000 of the total appropriation from the airport and airway trust fund. The balance of the appropriation ($3,516,000,000) will be drawn from the general fund of the Treasury. Under these provisions, 77 percent of the FAA's costs will be borne by air travelers and industries using those services. The remaining 23 percent will be borne by the general taxpayer, regardless of whether they directly utilize FAA services.

STATE OF THE AIRPORT AND AIRWAY TRUST FUND

According to Administration estimates, fiscal year 2007 will continue the recent trend where necessary outlays for FAA programs outstrip the revenues from aviation users deposited into the airport and airway trust fund. The following table compares trust fund revenue to trust fund outlays for the past three fiscal years. As the table indicates, under current estimates the Federal Government is not only spending all the revenues coming into the trust fund, it is going beyond that, and spending down the cash balance. The Administration estimates that, at the end of fiscal year 2007, the uncommitted cash balance in the trust fund will be approximately $2,706,000,000.


-------------------------------------------------------------------------
                      Fiscal year 2005 Fiscal year 2006 Fiscal year 2007 
-------------------------------------------------------------------------
Trust fund revenue 1   $10,830,000,000  $11,241,000,000  $11,997,000,000 
Trust fund outlays      11,209,000,000   12,332,000,000   12,167,000,000 
Difference                -379,000,000   -1,091,000,000     -170,000,000 
-------------------------------------------------------------------------

It is imperative for the agency to lower its operating costs and find ways to be more efficient in all its operations. For several years, the Committee has indicated that improvement was needed in the area of personnel costs. The average full-time equivalent (FTE) workyear cost for fiscal year 2006 was $142,587 and expected to increase to $145,450 for fiscal year 2007. FAA's workyear costs have historically been and remain among the highest of all federal agencies. Average sick leave costs historically have been 20 percent higher than the government average, raising the agency's staffing costs. Although FAA has made progress in this area, the current average yearly sick leave consumed is 10.80 days per FAA employee. In addition, special pays will cost the agency $349,740,000 in fiscal year 2007.

Given the severe budget constraints facing the nation, the Committee directs FAA to continue focusing on ways to reduce sick leave, to improve productivity and lessen the need for additional staffing resources in future years.

AIR TRAFFIC ORGANIZATION

The bill provides $6,698,728,000 for air traffic services, a reduction of $5,495,000 from the budget request. These resources would be managed by FAA's air traffic organization. Recommended adjustments to the budget estimate are listed and described below:

Amount
Contract tower base program +$3,242,000
Contract tower cost-sharing program +263,000
BTS aviation statistics -2,000,000
NAS handoff -7,000,000

Contract tower program.--The bill includes $97,500,000, an increase of $3,242,000 above the budget estimate of $94,258,000, to continue the contract tower base program. The President's budget does not reflect estimates for operations at 12 new towers entering the program during fiscal year 2007.

In addition, the bill provides $8,000,000, an increase of $263,000 above the budget estimate, to continue the contract tower cost-sharing program. The Committee continues to believe this is a valuable program that provides safety benefits to small communities. Communities in this program as of January 1, 2006 are shown below:


----------------------------------
----------------------------------
King Salmon                    AK 
Fayetteville                   AR 
Rogers Municipal-Carter Field  AR 
Springdale                     AR 
Laughlin/Bullhead City         AZ 
Hawthorne                      CA 
Waterbury/Oxford               CT 
Bloomington                    IN 
Columbus Municipal             IN 
Gary Regional                  IN 
Muncie/Delaware County         IN 
Garden City                    KS 
Barkley regional (Paducah)     KY 
Sawyer                         MI 
Jefferson City                 MO 
Joplin Regional                MO 
Smith Reynolds (Winston-Salem) NC 
Lebanon Municipal              NH 
Lea County/Hobbs               NM 
Elko                           NV 
Latrobe                        PA 
Williamsport/Lycoming County   PA 
Greenville Donaldson Center    SC 
Grand Strand/Myrtle Beach      SC 
Walla Walla Regional           WA 
Morgantown                     WV 
----------------------------------

The Committee recognizes that the number of airports participating in the cost sharing program fluctuates regularly because of changes in air traffic activity. In order to prevent program disruptions and provide more certainty, the Committee allows FAA to use unsubscribed funds from the contract tower base line program to avoid elimination of communities from the cost share towers program. However, FAA should only employ this flexibility with surplus funds in the base line contract tower program, after all baseline contract tower obligations have been fulfilled.

Controller staffing.--According to FAA, the agency expects that over the next 10 years, 72 percent of its 15,000 controllers will become eligible to retire. The FAA is currently updating its staffing plan submitted in December 2004. This update will be based on a refined methodology and will incorporate new estimates of future traffic and retirement projections, and recent productivity gains. Consistent with the plan and with FAA's request, the bill provides $18,220,000 for salaries, benefits, training, and ancillary support costs associated with 1,136 new hires, for a net increase of at least 132 in controller work force in fiscal year 2007.

The Committee agrees with FAA that a one for one replacement of retiring controllers is not prudent, as it would not assume productivity improvements from procedural changes, facility consolidation, or even new technology. The business-like mindset of the air traffic organization has begun to make productivity improvements a reality, and further productivity will continue to lessen the need for additional personnel. Currently, FAA is taking steps to achieve savings of 10 percent by 2010 in controller staff costs through productivity improvements, and realized the first three percent of this goal in 2005. In addition, the Committee believes that the ability to waive the mandatory retirement age is a good hedge against the retirement surge in future years.

Bureau of transportation statistics studies.--The Committee provides $2,000,000, half of the requested amount for the aviation statistical studies to be conducted by the bureau of transportation statistics (BTS), under the Research and Innovative Technology Administration. The Committee directs BTS to perform only those functions and studies that are relevant to FAA's mission. Further, the Committee directs DOT to provide to the House and Senate Committees on Appropriations an accounting of how the funds were spent and how FAA uses that data to fulfill its mission.

National airspace system handoff.--The Committee recommends a reduction of $7,000,000 below the budget estimate, for a total of $87,400,000 in NAS handoff funding.

New York/New Jersey airspace redesign.--The Committee notes that the executive summary of the FAA's Draft Environmental Impact Statement (DEIS) for the redesign of the New York/New Jersey/Philadelphia regional airspace states, `Mitigation measures to avoid, minimize, rectify, reduce, eliminate, or compensate for these (noise) impacts will be considered in the Final EIS.' The Committee directs the FAA to provide a letter report to the House and Senate Committees on Appropriations by January 7, 2007 on the specific mitigation measures that will be considered to address noise impacts of the redesign.

AVIATION SAFETY

The bill provides $997,718,000 for aviation safety, an increase of $16,050,000 above the budget request. Recommended adjustments to the budget are described below.

Additional safety inspectors and engineers +$16,000,000
Professional aerial application support system +50,000

Aviation safety inspectors and aircraft certification staff.--The Committee provides $48,711,612 for aviation safety, an increase of $16,000,000 over the budget request to increase safety critical staff in the office of aviation flight standards (AFS) and the office of aircraft certification (AIR).

The fiscal year 2006 Act provided an additional $12,000,000 above the fiscal year 2006 budget request for 238 new safety personnel, of which $8,000,000 was for AFS inspectors, and $4,000,000 for AIR safety inspectors, engineers, pilots, and scientists. The FAA states that after accounting for the fiscal year 2006 across the board cut and mandatory pay raise, only 87 new safety staff, 55 for AFS and 32 for AIR, could be hired. The additional $16,000,000 provided in this bill, together with a $4,000,000 reprogramming request, will enable the FAA to increase safety personnel to the full 238, as intended.

Although the Committee did not specify the number of staff for each office, it did provide clear direction regarding the distribution of funding. The carefully negotiated agreement stated that $4,000,000, or one-third of the total increase provided in fiscal year 2006 was for AIR and $8,000,000, or two-thirds of the increase was for AFS. Based on these figures, FAA states that the total new hires would have been 182 for AFS and 56 for AIR. The Committee directs the FAA to hire AFS and AIR staff consistent with the direction in the fiscal year 2006 Act to ensure that the funding increases provided in fiscal years 2006 and 2007 appropriations, plus the 2006 reprogramming result in the same proportional increase, for a total increase of 182 new staff in AFS safety staff and 56 new AIR staff. This funding should not affect FAA's plans for filling existing vacant positions in either AIR or AFS.

Further, funds provided for the offices of aircraft certification and flight standards are designated congressional items of interest. The Committee prohibits the reprogramming of funds between the two offices, or for any other purpose within or outside of the aviation safety office, including the hiring of other types of personnel within aviation safety. The Committee directs the Secretary to provide a summary by March 1, 2007 regarding the use of the funds provided, including, but not limited to the total full-time equivalent staff years in the offices of aircraft certification and flight standards, total employees, vacancies, positions under active recruitment to the House and Senate Committees on Appropriations.

The Committee notes that loss of certification staff has negatively impacted the domestic aviation industry's ability to bring new products to the marketplace, which directly affects the aviation industry's global leadership and competitiveness.

Professional Aerial Application Support System.--The recommendation includes $50,000 to continue the National agricultural aviation research and education foundation's professional aerial application support system.

COMMERCIAL SPACE TRANSPORTATION

The Committee recommends $12,000,000 for the office of commercial space transportation, consistent with the budget request.

BASE TRANSFERS

Total funding for staff offices increased significantly from the fiscal year 2006 funding level. However, a significant portion of the increase results from a number of proposed activity and personnel transfers from other offices within the air traffic organization. The budget also proposed transfers among the staff offices. The Committee agrees that these transfers will properly align functions and positions among the offices.

FINANCIAL SERVICES

The Committee recommends $92,227,000 for the office of financial services, a reduction of $2,482,000 from the budget request. The President's budget proposed $16,200,000 for unanticipated increases in Delphi maintenance and operation costs. The Committee is concerned that DOT did not foresee an increase of this magnitude for the complex department-wide financial management system. Therefore, the Committee provides a total funding level of $13,800,000 for Delphi, and urges DOT to explore ways to maintain and operate the system more efficiently. In addition, the Committee provides a total of $482,000 to support 5 new positions at half-year funding for expanded contract oversight.

HUMAN RESOURCES

The Committee recommends $87,850,000, consistent with the budget request. The increase from fiscal year 2006 is due to base transfers for labor relations positions, payroll services, and human resources positions from other FAA offices. The Committee notes that FAA is expanding a successful pilot program began in fiscal year 2003 to better contain workers' compensation costs for the agency. FAA's target goal is to increase the total one-year workers compensation cost avoidance by two percent in fiscal year 2007.

REGION AND CENTER OPERATION

The Committee recommends $272,821,000 for the region and center operations, as requested.

STAFF OFFICES

Office of General Counsel.--The Committee recommends $38,186,000 for this office. The funding level provides a total of $229,890 for four new positions for expanded contract oversight at half year funding, representing a reduction of $575,000 below the budget request.

ACCOUNT-WIDE ADJUSTMENTS

Personnel compensation and benefits.--The recommendation includes a reduction of $8,000,000 in agency-wide personnel compensation and benefits costs due to budget constraints.

Unfilled executive positions.--The Committee recommends a reduction of $5,000,000, reflecting the unfilled roster of 18 executive positions in the agency, including 7 which were not under active recruitment. Past hearing records indicate that, at any given time, the agency is likely to have between 10 and 20 unfilled executive positions. For an agency with 159 executive positions, this level of openings may not be problematic. However, it does indicate excess costs are being budgeted for positions that are not likely to be filled in the entirety of the fiscal year.

Working capital fund costs.--The recommendation allows $23,913,000 for working capital fund costs, a reduction of $1,000,000 below the budget estimate.

BILL LANGUAGE

Manned auxiliary flight service stations.--The bill includes the limitation prohibiting funds from being used to operate a manned auxiliary flight service station in the contiguous United States. The FAA budget includes no funding to operate such stations during fiscal year 2007.

Second career training program.--Once again this year, the bill includes a prohibition on the use of funds for the second career training program. This prohibition has been in annual appropriations Acts for many years, and is included in the President's budget request.

Sunday premium pay.--The bill retains a provision begun in fiscal year 1995 which prohibits the FAA from paying Sunday premium pay except in those cases where the individual actually worked on a Sunday. The statute governing Sunday premium pay (5 U.S.C. 5546(a)) is very clear: `An employee who performs work during a regularly scheduled 8-hour period of service which is not overtime work as defined by section 5542(a) of this title a part of which is performed on Sunday is entitled to . . . premium pay at a rate equal to 25 percent of his rate of basic pay.' Disregarding the plain meaning of the statute and previous Comptroller General decisions, however, in Armitage v. United States, the Federal Circuit Court held in 1993 that employees need not actually perform work on a Sunday to receive premium pay. The FAA was required immediately to provide back pay totaling $37,000,000 for time scheduled but not actually worked between November 1986 and July 1993. Without this provision, the FAA would be liable for significant unfunded liabilities, to be financed by the agency's annual operating budget. This provision is identical to that in effect for fiscal years 1995 through 2006.

Aviation User Fees.--The bill includes a limitation carried for several years prohibiting funds from being used to finalize or implement any new unauthorized user fees.

Nonprofit safety standard setting organization.--The Committee retains a provision that allows the use of funds to enter into an agreement with a nonprofit standard setting organization to develop safety standards.

Aeronautical charting and cartography.--The bill maintains the provision which prohibits funds in this Act from being used to conduct aeronautical charting and cartography (AC&C) activities through the working capital fund (WCF). Public Law 106-181 authorized the transfer of these activities from the Department of Commerce to the FAA, a move which the Committee supported. The Committee believes this work should continue to be conducted by the FAA, and not administratively delegated to the WCF.

Store gift cards and gift certificates- The bill maintains the limitation in effect since fiscal year 2004 prohibiting FAA from using funds to purchase store gift cards or gift certificates through a government-issued credit card. This provision responds to abuses documented by the U.S. Government Accountability Office.

FACILITIES AND EQUIPMENT

(AIRPORT AND AIRWAY TRUST FUND)


--------------------------------------------------
--------------------------------------------------
Appropriation, fiscal year 2006    $2,514,600,000 
Budget request, fiscal year 2007    2,503,000,000 
Recommended in the bill             3,110,000,000 
Bill compared with:                               
  Appropriation, fiscal year 2006    +595,400,000 
  Budget request, fiscal year 2007   +607,000,000 
--------------------------------------------------

The Facilities and Equipment (F&E) account is the principal means for modernizing and improving air traffic control and airway facilities. The appropriation also finances major capital investments required by other agency programs, experimental research and development facilities, and other improvements to enhance the safety and capacity of the airspace system.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $3,110,000,000 for this program, an increase of $595,400,000 above the level provided for fiscal year 2006 and $607,000,000 above the budget estimate. The bill provides that of the total amount recommended, $2,662,100,000 is available for obligation until September 30, 2008, and $447,900,000 (the amount for personnel and related expenses) is available until September 30, 2007. These obligation availabilities are consistent with past appropriations Acts.

ENGINEERING, DEVELOPMENT, TEST AND EVALUATION

Automatic Dependent Surveillance-Broadcast (ADS-B).--The Committee acknowledges that FAA has established the ADS-B technology as the basis of a future surveillance system. However, the Committee is concerned that under the newly established program office, too much focus is being placed on interim ground-based solutions instead of further accelerating the implementation of ADS-B technology. The Committee recommends $100,000,000 for the funding of the ADS-B, of which $20,000,000 shall be directed to the Safe Flight 21 office for continuing research and development of air-to-air applications. The remaining amount is directed to the ADS-B program office. Provisions should be made for ensuring that this air-to-air research is translated into implementation across the national airspace system (NAS).

Chicago O'Hare.--The Committee is concerned that the FAA has not acted on its recommendations to improve the overall efficiency of operations at Chicago's O'Hare International Airport that impacts the NAS. While long-term solutions to airport congestion at O'Hare continue to be developed, immediate operational improvements can be implemented to ease flight departures, arrivals and ground movement of aircraft particularly in times of inclement weather. Therefore, the FAA shall make the following improvements to operations at O'Hare International Airport: 1) expeditiously deploy ASDE-X radar system to improve ground handling of aircraft; and 2) design procedures that allow for RNAV departures and arrivals.

ENROUTE PROGRAMS

Airport Surface Detection System--Model X (ASDE-X)- The Committee provides funding and provides $73,600,000 for ASDE-X, for an increase of $10,000,000 over the budget request. The additional funds will enable FAA to expedite site implementation and commission ASDE-X systems earlier than currently planned. Deploying ASDE-X earlier at these sites will make it possible to realize safety and efficiency benefits sooner, including better controller situational awareness in all weather conditions and reduced risk of Category A and B runway incursions.

Detroit Metropolitan Airport, Michigan.--The FAA is currently implementing multilateration technology to improve capacity in inclement weather conditions at Detroit Metropolitan Airport. The Committee provides $8,000,000 to complete implementation at this airport.

Integrated control and monitoring system.--The Committee recommends $3,000,000 for continued procurement and installation, including site preparation, of the integrated control and monitoring system (ICMS). FAA is currently using ICMS in Denver, Seattle, Newark, Minneapolis, Salt Lake City, and Phoenix, and is installing the system in six additional locations shortly. This system would offer significant benefits to other operational evolution plan (OEP) airports as well as others with substantial landing aids and lighting systems. The Committee expects the agency to obligate these funds within six months of enactment, and to install such systems at airports with the highest need.

TERMINAL PROGRAMS

Terminal air traffic control facilities replacement.--The Committee provides a total of $127,250,000 for this program, an increase of $3,250,000 over the budget request. Funds shall be distributed as follows:

Kalamazoo, Michigan $1,800,000
West Palm Beach, Florida 10,000,000
Reno, Nevada 2,500,000
Cleveland, Ohio 3,700,000
Memphis, Tennessee 22,400,000
Jeffco, Colorado 4,200,000
Houston, Texas 2,000,000
Gulfport, Mississippi 5,200,000
Las Vegas, Nevada 55,000,000
Pensacola, Florida 1,100,000
Dayton, Ohio 2,200,000
Saint Louis, Missouri 1,250,000
Palm Springs, California 2,000,000

FLIGHT SERVICE PROGRAMS

Wide Area Augmentation System (WAAS) and GPS approaches- The Committee notes that the fiscal year 2007 budget request of $122,400,000 for the wide area augmentation system includes $17,000,000 for the development of additional approaches and flight procedures at the nation's non-part 139 certified airports. The Committee supports this effort, and has provided $132,400,000 for WAAS, an increase of $10,000,000 above the budget request. Additional funds are provided to publish WAAS approaches at airports at non-Part 139 airports without an existing ILS approach.

Loran-C- The Coast Guard has proposed terminating the LORAN C program in the President's budget request because this system is no longer necessary for a secondary means of navigation. The Committee understands that a decision to terminate LORAN C is dependent upon agreement by the Department of Transportation, which has not yet occurred. The Committee assumes the continuation of LORAN C since this decision has not been fully coordinated within the Executive Branch.

Terminal air modernization replacement (TAMR phase II).--The Committee provides a total of $36,450,000 for TAMR phase II. The $6,000,000 increase over the budget request will ensure full funding and accelerate the upgrade of nine high-risk sites, including the four Full Digital ARTS Display (FDAD) sites identified as critical to the NAS by the inspector general. These four sites are located in Chicago, Saint Louis, Denver, and Minneapolis.

LANDING AND NAVIGATION AIDS

Instrument landing system establishment.--The Committee provides $4,900,000 for this program, an increase of $900,000 over the budget request. Funds shall be distributed as follows:

Nationwide $4,000,000
Completion of ILS at Northeastern Regional Airport, Edenton, North Carolina 500,000
Nationwide surveys 400,000

The Committee directs the FAA to complete surveys to determine if the Hazard Airport, Kentucky; Boise Airport, Idaho; Orlando International Airport, Florida; and the March Air Force Base, California (consistent with the existing cooperative agreement) meet the FAA criteria for establishment or upgrade of an ILS in terms of cost and feasibility.

Approach lighting system improvement program.--The Committee provides $14,000,000 for this program, an increase of $2,000,000 over the budget request. Funds shall be distributed as follows:

Nationwide $12,000,000
Continuation of ALS at Lehigh Valley International Airport, Pennsylvania 1,000,000
Continuation of MALSR at Arlington Municipal Airport 1,000,000

MISSION SUPPORT

NAS information systems.--The Committee provides $14,000,000 to enable the agency to implement FAA requirements for logical access control to align with the common identification standards. This funding will allow the agency to meets its flight plan goal to defend the FAA NAS systems and networks against intrusion by unauthorized personnel. The Committee directs the FAA to provide the House and Senate Committees on Appropriations a summary of how the FAA plans to use the funds.

Center for advanced systems development.--The Committee provides $86,000,000 for the center for advanced systems development, an increase of $16,000,000 above the budget estimate, and equal to the fiscal year 2007 level.

Frequency and spectrum engineering.--The Committee recommendation includes $7,000,000 for frequency and spectrum engineering, an increase of $2,500,000 over the budget request. The additional funds are for the continued implementation of the NAS interference, detection, location, and mitigation for the purpose of monitoring, detecting and locating radio and digital signals affecting the NAS, including such signals as Ultra Wide Band and GPS.

PERSONNEL AND RELATED EXPENSES

The Committee recommends $447,900,000 for personnel and related expenses. This appropriation finances the installation and commissioning of new equipment and modernization of FAA facilities.

BILL LANGUAGE

Capital investment plan.--The bill continues to require the submission of a five year capital investment plan.

RESEARCH, ENGINEERING, AND DEVELOPMENT

(AIRPORT AND AIRWAY TRUST FUND)


------------------------------------------------
------------------------------------------------
Appropriation, fiscal year 2006    $136,620,000 
Budget request, fiscal year 2007    130,000,000 
Recommended in the bill             134,000,000 
Bill compared with:                             
  Appropriation, fiscal year 2006    -2,620,000 
  Budget request, fiscal year 2007   +4,000,000 
------------------------------------------------

This appropriation provides funding for long-term research, engineering and development programs to improve the air traffic control system and to raise the level of aviation safety, as authorized by the Airport and Airway Improvement Act and the Federal Aviation Act. The appropriation also finances the research, engineering and development needed to establish or modify federal air regulations.

COMMITTEE RECOMMENDATION

The Committee recommends $134,000,000, and a decrease of $2,620,000 below the fiscal year 2006 enacted level and $4,000,000 above the President's budget request.

A table showing the fiscal year 2006 enacted level, the fiscal year 2007 budget estimate, and the Committee recommendation follows:

RESEARCH, ENGINEERING AND DEVELOPMENT


-------------------------------------------------------------------------------------------------------------------
Program                                   Fiscal year 2006 enacted Fiscal year 2007 estimate Committee recommended 
-------------------------------------------------------------------------------------------------------------------
Improve Commercial Aviation Safety:                    $96,040,000               $88,162,000           $88,162,000 
Fire research and safety                                 6,182,000                 6,638,000             6,638,000 
Propulsion and fuel systems                              5,741,000                 4,048,000             4,048,000 
Advanced materials/structural safety                     5,881,000                 2,843,000             5,843,000 
Atmospheric hazards/digital system safety                3,407,000                 3,848,000             3,848,000 
Aging aircraft                                          19,807,000                18,621,000            18,621,000 
Aircraft catastrophic failure prevention                 3,306,000                 1,512,000             1,512,000 
Flightdeck safety/systems integration                    8,099,000                 7,999,000             7,999,000 
Aviation safety risk analysis                            4,883,000                 5,292,000             5,292,000 
ATC/AF human factors                                     9,558,000                 9,654,000             9,654,000 
Aeromedical research                                     8,800,000                 6,962,000             6,962,000 
Weather research                                        20,376,000                19,545,000            19,545,000 
Unmanned aircraft system                                                                                 1,200,000 
Improve Efficiency of the ATC System:                   20,192,000                21,166,000            21,166,000 
Joint program and development office                    17,919,000                18,100,000            18,100,000 
Wake turbulence                                          2,273,000                 3,066,000             3,066,000 
Reduce Environmental Impacts:                           15,840,000                16,008,000            16,008,000 
Environment and energy                                  15,840,000                16,008,000            16,008,000 
Mission Support:                                         4,548,000                 4,664,000             4,664,000 
System planning and resource mgmt                        1,189,000                 1,234,000             1,234,000 
Technical laboratory facilities                          3,359,000                 3,430,000             3,430,000 
-------------------------------------------------------------------------------------------------------------------

Advanced Materials/Structural Safety.--Within the funds provided for advanced material/structural safety, $3,000,000 is for the National Institute for Aviation Research to continue critical aviation research.

Joint Planning and Development Office.--The bill includes $18,100,000, as requested, for FAA's contribution to the multi-agency Joint Planning and Development Office (JPDO). This office involves the Departments of Defense, Commerce, and Homeland Security, FAA, and the National Aeronautics and Space Administration in developing a national plan for the transformation of air transportation. This plan is expected to establish a vision for the future air transportation system, set national aerospace goals, and provide a forum to engage industry and customer input. It is an advisory committee as defined in the Federal Advisory Committee Act.

GRANTS-IN-AID FOR AIRPORTS

(LIQUIDATION OF CONTRACT AUTHORIZATION)

(LIMITATION ON OBLIGATIONS)

(RESCISSION OF CONTRACT AUTHORIZATION)

(AIRPORT AND AIRWAY TRUST FUND)


-------------------------------------------------------------------------------------------------
                                 Liquidation of contract authorization Limitation on obligations 
-------------------------------------------------------------------------------------------------
Appropriation, fiscal year 2006                         $3,399,000,000          ($3,514,500,000) 
Budget request, fiscal year 2007                         4,000,000,000           (2,750,000,000) 
Recommended in the bill                                  4,171,000,000           (3,700,000,000) 
Bill compared with:                                                                              
Appropriation, fiscal year 2006                           +772,000,000            (+185,500,000) 
Budget request, fiscal year 2007                          +171,000,000            (+950,000,000) 
-------------------------------------------------------------------------------------------------

The bill includes a liquidating cash appropriation of $4,171,000,000 for grants-in-aid for airports, authorized by the Airport and Airway Improvement Act of 1982, as amended. This funding provides for liquidation of obligations incurred pursuant to contract authority and annual limitations on obligations for grants-in-aid for airport planning and development, noise compatibility and planning, the military airport program, reliever airports, airport program administration, and other authorized activities. This is $171,000,000 above the amount requested in the President's budget and $772,000,000 above the level enacted for fiscal year 2006.

LIMITATION ON OBLIGATIONS

The bill includes a limitation on obligations of $3,700,000,000 for fiscal year 2007. This is $950,000,000 above the President's budget request and $185,000,000 above the fiscal year 2006 level.

DISCRETIONARY GRANTS

Within the overall obligation limitation in this bill, funding of about $965,000,000 is available for discretionary grants to airports.

ADMINISTRATION AND RESEARCH PROGRAMS

The bill provides that, within the overall obligation limitation, $74,971,000 is available for administration of the airports program by the FAA. In addition, $10,000,000 is for the airport cooperative research pilot program, and up to $17,870,000 for the airport technology research. These levels are consistent with the request level. Of the funds provided for airport technology research, $1,000,000 is for alkali silica research.

HIGH PRIORITY PROJECTS

Of the funds covered by the obligation limitation in this bill, the Committee directs FAA to provide not less than the following funding levels, out of available resources, for the following projects in the corresponding amounts. The Committee agrees that state apportionment funds may be construed as discretionary funds for the purposes of implementing this provision. To the maximum extent possible, the administrator should work to ensure that airport sponsors for these projects first use available entitlement funds to finance the projects. However, the FAA should not require sponsors to apply carryover entitlement to discretionary projects funded in the coming year, but only those entitlements applicable to the fiscal year 2007 obligation limitation. The Committee further directs that the specific funding allocated above shall not diminish or prejudice the application of a specific airport or geographic region to receive other AIP discretionary grants or mulityear letters of intent.

Access Control System, Chattanooga Airport, TN $500,000
Airport Expansion Master Plan, Council Bluffs, IA 1,000,000
Airport, Taxiway Alpha, Albany, GA 750,000
Airside Improvements, Jacksonville Airport, FL 1,000,000
Alamance County Regional Airport Runway Extension, NC 1,000,000
Albert Whitted Airport Ramp Design/Construction, FL 200,000
Alliance Airport Runway Extension Project, TX 500,000
Alliance Airport Runway Extension, Fort Worth, TX 2,000,000
Altus/Quartz Mountain Regional Airport Runway Rehabilitation, OK 150,000
Anson County Airport Improvements, NC 1,000,000
Atlantic City International Airport Terminal Apron, NJ 1,000,000
Aurora Airport, IL, Various Improvements 2,000,000
Bemidji Regional Airport Development, MN 500,000
Bishop Airport, Cargo Apron Expansion, MI 1,500,000
Chattanooga Airport Runway Project, Feasibility Study, TN 1,000,000
Cherokee County Airport Authority Improvements, GA 1,500,000
Cherokee County North Carolina Airport Improvement 2,000,000
City of Detroit Airport Gateway Plan, MI 1,500,000
Concord Regional Airport Improvements and Land Acquisition, NC 1,500,000
Cuyahoga County Airport Pavement Maintenance and Rehabilitation, OH 800,000
Devils Lake Airport, ND 800,000
DuPage Airport, Various Improvements, IL 1,500,000
Gary/Chicago Airport, Gary, IN 1,000,000
Greenwood County Airport Runway Extension Study, SC 100,000
Halifax Northampton Regional Airport, NC Runway 500,000
Houma-Terrebonne Airport Taxiway and Runway, LA 750,000
Houston George Bush Intercontinental Airport Noise Project, TX 750,000
Huron County Regional Airport Taxiway Construction, MI 150,000
Indianapolis Metropolitan Airport Study, IN 750,000
Jackson International Airport Improvements, MS 500,000
Kalamazoo Battle Creek Airport Terminal, MI 750,000
L.O. Simentstad Municipal Airport, Osceola, WI 1,500,000
Lafayette Airport, Upgrades, LA 1,000,000
Lawrence-Vincennes Municipal Airport Terminal Development, IL 750,000
Lewis Airport Improvements and Land Acquisition, Romeoville, IL 1,000,000
Lincoln Regional Airport Arrival/Departure Building, CA 350,000
Louisville Airport Authority Capacity Enhancements, KY 2,000,000
Mangham Regional Airport Expansion, Nacogdoches, TX 200,000
Manitowoc County Airport Improvements, Manitowoc, WI 750,000
McAllen-Miller Airport Mission Pilot Channel Reroute, TX 700,000
Middle Georgia Regional Airport, GA 800,000
Midfield Replacement Terminal, Springfield, MO 2,500,000
Mobile Downtown Airport Apron Rehabilitation, Mobile, AL 500,000
Monroe Regional Airport, New Terminal, LA 2,000,000
New Bedford, MA Airport Safety Upgrades 100,000
New River Valley Airport, Runway Rehabilitation, VA 600,000
NFIA Circulatory Road and Apron, Niagara County, NY 1,000,000
Parallel Runway, Kellogg Airport, Battle Creek, MI 750,000
Parallel Runway, St. Lucie International Airport, FL 1,000,000
Parallel Taxiway Construction Ogden-Hinckley Airport, UT 750,000
Pellston Regional Airport Expansion, Pellston, MI 350,000
Phoenix Sky Harbor Airport Noise Reduction, AZ 1,700,000
Reconstruct West Apron, Harlingen Airport, TX 600,000
Rehabilitate Runway, CVG, Cincinnati/Northern Kentucky Airport, Boone, KY 2,000,000
Resurface Runway, Philadelphia International Airport, Philadelphia, PA 1,500,000
Rochester Airport Ramp and Safety Improvements, NC 1,000,000
Rockingham County Airport Improvements, NC 500,000
Runway 13-31E Reconstruction at BNA, TN 500,000
Runway 7-25 Rehabilitation, NNWIA, VA 1,000,000
Runway Upgrade Phase I, Garfield County Regional Airport, CO 1,500,000
Sacramento County Airport System Master Plan, CA 300,000
Saline County Airport, AR 700,000
San Jose International Airport Guard Lights, CA 400,000
Sawyer County Airport, WI 1,500,000
Sheboygan County Memorial Airport Improvements, Sheboygan, WI 500,000
Somerset Airport Land Acquisition for Obstruction Removal, KY 1,000,000
St. Cloud Airport Improvements, MN 150,000
St. Petersburg-Clearwater International Airport Terminal Renovation, FL 500,000
Stanly County Airport Improvements, NC 1,000,000
Statesville Airport Improvement Project, NC 750,000
Subsurface Wetland Glycol Treatment, Buffalo, NY 1,250,000
Taylor County Airport, Medford, WI 2,000,000
Terminal Improvements Roberts Field--Redmond, OR 950,000
Terminal Improvements, Augusta Regional Airport, GA 2,000,000
Texarkana Regional Airport Passenger Terminal, TX 750,000
Toledo Express Airport, Air Cargo Operations, OH 750,000
Turner County Airport Revitalization, GA 250,000
Tuscaloosa Regional Airport Master Plan Update, AL 200,000
Twin County Airport, Airport Safety Area, Carroll County, VA 200,000
Williams Gateway Airport Taxiway Improvements, AZ 2,000,000

BILL LANGUAGE

Runway incursion prevention systems and devices.--Consistent with the provisions of Public Law 106-181 and the fiscal year 2004 through 2006 Appropriations Acts, the bill allows funds under this limitation to be used for airports to procure and install runway incursion prevention systems and devices.

Small community air service development program.--The bill specifies that $20,000,000 of the total amount limited is available to continue the small community air service development program.

Administration and research programs.--The bill provides that, within the overall obligation limitation, $74,971,000 is available for administration of the airports program by the FAA. The Committee also provides $10,000,000 is for the airport cooperative research pilot program, and up to $17,870,000 for the airport technology research.

(RESCISSION OF CONTRACT AUTHORIZATION)


---------------------------------------------------
---------------------------------------------------
Rescission, fiscal year 2006       -$1,032,000,000 
Budget request, fiscal year 2007    -1,582,000,000 
Recommended in the bill                -25,000,000 
Bill compared with:                                
  Appropriation, fiscal year 2006   -1,007,000,000 
  Budget request, fiscal year 2007  -1,557,000,000 
---------------------------------------------------

The Committee recommendation includes a rescission of contract authorization of $25,000,000 from contract authority in fiscal year 2006 that `popped-up' above the obligation limitation available for that fiscal year due to the 1 percent across the board cut. Therefore, this rescission has no effect on any grants-in-aid program. The proposed rescission is a result of section 107 of AIR-21 (P.L. 106-181). This section specified that, in the event appropriations for the facilities and equipment program were less than authorized in a given fiscal year, additional contract authorization would automatically be made available for the grants-in-aid for airports program. The Committee understands that the legislative committees intended to provide flexibility in meeting the funding guarantees, by allowing the Appropriations Committees to meet the guarantee by providing a single, combined total of funding for the F&E and grants-in-aid programs rather than hitting the precise authorized amounts for each as specified in the authorization Act. Because the Appropriations Committees are not provided an allocation of budget authority for the grants-in-aid program, section 107 provided automatic budget authority for this purpose. The Committee continues to disagree with the Congressional Budget Offices' scoring of this provision.

ADMINISTRATIVE PROVISIONS--FEDERAL AVIATION ADMINISTRATION

Section 110. The Committee retains a provision requiring FAA to accept landing systems, lighting systems, and associated equipment procured by airports, subject to certain criteria.

Section 111. The Committee retains, with modification, a provision limiting the number of technical workyears at the Center for Advanced Aviation Systems Development. The modification raises the limitation from 375 in fiscal year 2006 to 380 in fiscal year 2007.

Section 112. The Committee retains a provision prohibiting FAA from requiring airport sponsors to provide the agency `without cost' building construction, maintenance, utilities and expenses, or space in sponsor-owned buildings, except in the case of certain specified exceptions.

Section 113. The Committee retains a provision allowing reimbursement of funds for providing technical assistance to foreign aviation authorities to be credited to the operations account.

Section 114. The Committee retains a provision prohibiting funds to change weight restrictions or prior permission rules at Teterboro Airport, Teterboro, New Jersey.

Section 115. The Committee continues a provision extending the current terms and conditions of FAA's aviation insurance program, commonly known as the `war risk insurance' program, for one additional year, from December 31, 2006 to December 31, 2007. Although the underlying program is authorized until March 2008, certain provisions including premium price caps were set to expire at the end of this calendar year. The Committee recommendation preserves the status quo under this program, a savings of $125,000,000 from the budget estimate. Savings accrue because the bill's provisions result in additional revenue from insurance premiums, which were assumed to be zero in the budget estimate for fiscal year 2007.

Section 116. The Committee retains a provision that prohibits funds for engineering work related to an additional runway at Louis Armstrong International Airport in New Orleans, Louisiana.

FEDERAL HIGHWAY ADMINISTRATION

The Federal Highway Administration (FHWA) provides financial assistance to the states to construct and improve roads and highways, and provides technical assistance to other agencies and organizations involved in road building activities. Title 23 of the United States Code and other supporting legislation provide authority for the various activities of the FHWA. Funding is provided by contract authority, with program levels established by annual limitations on obligations set in Appropriations Acts.

The Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU), enacted August 10, 2005, provides for increased transportation infrastructure investment, strengthens transportation safety and environmental programs, and continues core research activities. SAFETEA-LU also amended the Budget Enforcement Act to continue two discretionary spending categories, one of which is the highway category. This category is comprised of all federal-aid highways funding, the Federal Motor Carrier Safety Administration's motor carrier safety funding, National Highway Traffic Safety Administration's (NHTSA) highway safety grants funding and NHTSA highway safety research and development funding. If appropriations action forces highway obligations to exceed this level, the resulting difference in outlays is charged to the discretionary spending category. In addition, beginning in fiscal year 2007 if receipts into the highway account of the highway trust fund exceed levels specified in SAFETEA-LU, automatic adjustments are made to increase or decrease obligations and outlays for the highway category accordingly. Additional resources provided by this automatic spending mechanism are called revenue-aligned budget authority (RABA).

SUMMARY OF FISCAL YEAR 2007 PROGRAM

SAFETEA-LU caps the highway category obligations at $39,460,710,516 in fiscal year 2007 and federal-aid highway obligations at $38,244,210,516. In addition, the provisions of SAFETEA-LU require an increase of $842,254,167 in fiscal year 2007 in federal-aid highway funding due to RABA. This combined total highway funding level of $39,086,464,683 represents almost a 10% increase over the fiscal year 2006 enacted level of $35,550,788,034.

The Committee's recommendation is consistent with the levels guaranteed by SAFETEA-LU, as adjusted for RABA. The following table summarizes the program levels within the FHWA for fiscal year 2006 enacted, the fiscal year 2007 budget request and the Committee's recommendation:


---------------------------------------------------------------------------------------------------------------------
Program                                     Fiscal year 2006 enacted Fiscal year 2007 request Recomended in the bill 
---------------------------------------------------------------------------------------------------------------------
Federal-aid highways                              $35,550,788,034 1           $38,244,210,516        $38,244,210,516 
Revenue aligned budget authority (RABA)                        - - -              842,254,167            842,254,167 
Subtotal                                              35,550,788,034           39,086,464,683         39,086,464,683 
Exempt contract authority                                739,000,000              739,000,000            739,000,000 
Subtotal                                              36,289,778,034           39,825,464,683         39,825,464,683 
Emergency relief program--P.L. 109-148 (GF)            2,750,000,000                    - - -                  - - - 
Appalachian development highway system (GF)               19,800,000                    - - -                  - - - 
Rescission of contract authority                      -3,142,999,000                    - - -         -2,164,453,027 
Total                                                 35,916,589,034           39,825,464,683         37,661,011,656 
---------------------------------------------------------------------------------------------------------------------

LIMITATION ON ADMINISTRATIVE EXPENSES


--------------------------------------------------
--------------------------------------------------
Appropriation, fiscal year 2006    ($360,991,620) 
Budget request, fiscal year 2007    (372,504,000) 
Recommended in the bill             (372,504,000) 
Bill compared with:                               
  Appropriation, fiscal year 2006   (+11,512,380) 
  Budget request, fiscal year 2007        (- - -) 
--------------------------------------------------

This limitation controls spending for the salaries and expenses of the FHWA required to conduct and administer the federal-aid highway program, highway-related research, and most other federal highway programs.

COMMITTEE RECOMMENDATION

The Committee recommends a limitation of $372,504,000, consistent with the budget request and $11,512,380 above the fiscal year 2006 level. This funding level is sufficient to fund 2,430 full time equivalent staff years (FTE).

Congressional budget justifications- The Committee is disappointed by the poor quality of the FHWA's budget submission for fiscal year 2007, particularly with the lack of information provided for the agency's research and technology programs. For example, the budget submission fails to include basic descriptive budgetary data, such as tables showing funding amounts for each research program, as well as justifications and descriptions for these programs. The budget submission also fails to identify changes in legislative language being requested by the agency. The Committee cannot evaluate the merit of bill language if the language is not included; a short description with little to no information is unacceptable. The Committee understands that the FHWA recently hired a new budget officer and is optimistic that this new hire will bring about positive changes. The Committee expects to see improved budget justifications next year and, to this end, directs the FHWA to submit its fiscal year 2008 Congressional justification materials at the same level of detail provided in the fiscal year 2003 Congressional justifications. Furthermore, the Committee directs the FHWA to include funding levels for the prior year, current year, and budget year for all programs, activities, initiatives, and program elements. The budget submission must also include detailed justification for requested FTE and funding increases, by program, activity, and program element, as well as legislative language for all proposed programs and provisions.

Unobligated balances in miscellaneous accounts- The Committee is concerned that the FHWA is doing little to identify unneeded balances of unobligated highway project funds. These no-year funds, which have been designated for specific purposes and geographic locations, cannot be used for another project without legislative action. As a result, these funds remain unobligated indefinitely. In a 2004 report, the Government Accountability Office (GAO) noted that the FHWA was not routinely reviewing these unobligated project funds and identified $16,407,909 that could be rescinded. In a subsequent May 2006 report, GAO identified an additional $12,177,194 for rescission. The Committee is concerned that the FHWA is not routinely reviewing projects with unneeded balances and is instead waiting for outside parties to initiate reviews. Therefore, the Committee directs the FHWA to submit a report to the House and Senate Committees on Appropriations by February 1, 2007, detailing how the agency is addressing GAO's recommendations. The report should describe the process for reviewing unobligated project funds, as well as notifying Congress of those projects where legislative action is needed.

In addition, the Committee understands that section 1603 of SAFETEA-LU addresses the use of excess funds and funds for inactive projects that were allocated before fiscal year 1991. The Committee directs the FHWA to include with the fiscal year 2008 budget submission a description of any action taken under that section in fiscal year 2006.

George Washington Memorial Parkway feasibility study.--The Committee directs the FHWA to work with the National Park Service to determine the feasibility of extending a third southbound lane of the George Washington Memorial Parkway from the Key Bridge to the Roosevelt Memorial Bridge in Arlington, Virginia. The FHWA shall assist the National Park Service in the preparation of a report which must be submitted to the House and Senate Committees on Appropriations, not later than six months after the date of enactment of this Act, on the feasibility of such an extension.

LIMITATION ON TRANSPORTATION RESEARCH


--------------------------------------------------
--------------------------------------------------
Appropriation, fiscal year 2006    ($425,502,000) 
Budget request, fiscal year 2007    (429,800,000) 
Recommended in the bill             (429,800,000) 
Bill compared with:                               
  Appropriation, fiscal year 2006    (+4,298,000) 
  Budget request, fiscal year 2007        (- - -) 
--------------------------------------------------

This limitation controls spending for the transportation research and technology contract programs of the FHWA. It includes a number of contract programs including surface transportation research, training and education, university transportation research, and intelligent transportation systems research. Funding for the Bureau of Transportation Statistics (BTS) is also included within this limitation even though BTS is organizationally placed within the Research and Innovative Technology Administration (RITA). Additional information regarding BTS is included in the RITA section of this report.

COMMITTEE RECOMMENDATION

The recommendation includes an obligation limitation for transportation research of $429,800,000 in fiscal year 2007 for the following transportation research programs:


---------------------------------------------------------
---------------------------------------------------------
Surface transportation research             $196,400,000 
Training and education                        26,700,000 
Bureau of transportation statistics           27,000,000 
University transportation research            69,700,000 
Intelligent transportation systems research  110,000,000 
  Total                                      429,800,000 
---------------------------------------------------------

FEDERAL-AID HIGHWAYS

(LIQUIDATION OF CONTRACT AUTHORIZATION)

(LIMITATION ON OBLIGATIONS)

(HIGHWAY TRUST FUND)


-------------------------------------------------------------------------------------------------
                                 Liquidation of contract authorization Limitation on obligations 
-------------------------------------------------------------------------------------------------
Appropriation, fiscal year 2006                        $36,032,343,903      ($35,550,788,034) 1  
Budget request, fiscal year 2007                        39,086,000,000          (39,086,464,683) 
Recommended in the bill                                 39,086,464,683          (39,086,464,683) 
Bill compared to:                                                                                
Appropriation, fiscal year 2006                         +3,054,120,780          (+3,535,676,649) 
Budget request, fiscal year 2007                              +464,683                   (- - -) 
-------------------------------------------------------------------------------------------------

The federal-aid highways (FAH) program is designed to aid in the development, operations and management of an intermodal transportation system that is economically efficient, environmentally sound, provides the foundation for the nation to compete in the global economy, and moves people and goods safely.

All programs included within FAH are financed from the highway trust fund and most are distributed via apportionments and allocations to states. The FAH program is funded by contract authority in SAFETEA-LU and liquidating cash appropriations are subsequently provided to fund outlays resulting from obligations incurred under contract authority.

COMMITTEE RECOMMENDATION

The Committee recommends a liquidating cash appropriation of $39,086,464,683. This is the amount required to pay the outstanding obligations of the highway program at levels provided in this Act and prior appropriations Acts.

LIMITATION ON OBLIGATIONS

The bill includes language limiting fiscal year 2007 federal-aid highways obligations to $39,086,464,683, consistent with the SAFETEA-LU highway funding guarantees as adjusted for RABA. Of the amount provided under RABA, an amount to be calculated is available to the Federal Motor Carrier Safety Administration (FMCSA) for the motor carrier safety grant program and bill language is included to transfer this funding to FMCSA.

The Committee has also included bill language, as was enacted last year, that allows the secretary to charge and collect fees from the applicant for a direct loan, guaranteed loan, or line of credit to cover the cost of the financial and legal analyses performed on behalf of the department. These fees are not subject to any obligation limitation or the limitation on administrative expenses set for the transportation infrastructure finance and innovation program under section 608 of title 23, United States Code.

Although the following table reflects an estimated distribution of obligations by program category, the bill includes a limitation applicable only to the total of certain federal-aid spending. The following table indicates estimated obligations by program within the $39,086,464,683 provided by this Act and additional resources made available by permanent law:

FEDERAL-AID HIGHWAYS ESTIMATED OBLIGATION LIMITATION BY PROGRAM
[In thousands of dollars]
--------------------------------------------------------------------------------------------------------------------------
Programs                                                     FY 2005 limitation FY 2006 limitation FY 2007 est.limitation 
--------------------------------------------------------------------------------------------------------------------------
Subject to limitation:                                                                                                    
Surface Transportation Program                                       $5,475,931         $5,139,465              6,143,138 
National Highway System                                               4,678,055          4,879,210              4,853,549 
Interstate Maintenance                                                3,829,247          3,994,609              4,776,773 
Bridge Program                                                        3,271,421          3,412,935              4,081,561 
Congestion Mitigation and Air Quality Improvement                     1,336,163          1,393,288              1,665,247 
Highway Safety Improvement Program                                        - - -            866,641              1,014,618 
Equity Bonus                                                          6,828,645          5,858,197              7,359,857 
Surface Transportation Research Program                                 152,453            169,159                188,811 
University Transportation Research, Training and Education               52,086             83,029                 92,675 
ITS Standards, Research and Development                                  85,386             94,743                105,750 
ITS Deployment                                                           94,701              - - -                  - - - 
Bureau of Transportation Statistics                                      26,263             26,730                 27,280 
Federal Lands Highways                                                  630,538            701,440                854,650 
High Priority Projects                                                2,536,272          2,554,960              2,851,782 
Projects of National and Regional Significance                          152,105            306,451                427,565 
National Corridor Infrastructure Improvement Program                    166,554            335,562                468,183 
Transportation Improvements                                             218,473            440,165                614,126 
Appalachian Development Highway System                                  385,374            395,296                446,970 
Transportation, Community, and System Preservation Program               21,375             52,755                358,883 
Other Programs                                                        4,032,584          4,380,083              2,265,255 
Transportation Infrastructure Finance and Innovation (TIFIA)            104,310            105,079                117,286 
Administration                                                          341,485            360,992                372,504 
Total Subject to Obligation Limitation                               34,419,420         35,550,788             39,086,465 
Emergency Relief Program                                                100,000            100,000                100,000 
Equity Bonus                                                            639,000            639,000                639,000 
Total Exempt Programs                                                   739,000            739,000                739,000 
37,095,492                                                           39,039,788         39,825,465                  - - - 
--------------------------------------------------------------------------------------------------------------------------

The following table reflects the estimated distribution of the federal-aid limitation by state:

ESTIMATED FY 2007 OBLIGATION LIMITATION
[In thousands of dollars]
-------------------------------------------------------------------------------------------------------------------------------------------------
State                  Formula Obligation Limitation Formula Obligation Limitation RABA Equity Bonus Appalachian Development Highways      Total 
-------------------------------------------------------------------------------------------------------------------------------------------------
Alabama                                     $548,200                             $6,932      $49,514                          $27,803   $632,448 
Alaska                                       234,629                              4,058       44,953                                0    283,640 
Arizona                                      531,148                              9,833       54,387                                0    595,368 
Arkansas                                     368,026                              4,539       28,040                                0    400,605 
California                                 2,778,209                             50,276      145,364                                0  2,973,850 
Colorado                                     386,101                              7,192       18,226                                0    411,519 
Connecticut                                  390,861                              4,716       34,746                                0    430,324 
Delaware                                     122,165                              1,507        3,464                                0    127,136 
District of Columbia                         129,766                              1,442            0                                0    131,208 
Florida                                    1,345,091                             26,230      171,589                                0  1,542,910 
Georgia                                      971,216                             18,912      113,040                           17,040  1,120,208 
Hawaii                                       130,372                              1,608        4,694                                0    136,674 
Idaho                                        210,115                              2,636       21,033                                0    233,784 
Illinois                                   1,013,190                             19,098       65,256                                0  1,097,544 
Indiana                                      703,075                             13,379       76,653                                0    793,106 
Iowa                                         339,393                              6,186        3,012                                0    348,591 
Kansas                                       326,808                              3,639        1,201                                0    331,648 
Kentucky                                     445,166                              6,027       29,265                           65,207    545,665 
Louisiana                                    474,012                              5,526       18,002                                0    497,540 
Maine                                        147,155                              1,820            0                                0    148,975 
Maryland                                     464,625                              8,769       24,454                            6,099    503,947 
Massachusetts                                514,054                              5,834       15,592                                0    535,479 
Michigan                                     910,643                             16,515       59,244                                0    986,401 
Minnesota                                    494,480                              9,441       32,938                                0    536,858 
Mississippi                                  351,018                              5,157       17,376                            5,042    378,593 
Missouri                                     699,480                              8,215       39,809                                0    747,505 
Montana                                      270,304                              3,383       28,177                                0    301,863 
Nebraska                                     229,456                              2,647        3,000                                0    235,103 
Nevada                                       195,480                              3,948       10,750                                0    210,178 
New Hampshire                                139,154                              1,607        6,610                                0    147,371 
New Jersy                                    767,970                             14,227       52,968                                0    835,165 
New Mexico                                   282,590                              3,365       18,444                                0    304,399 
New York                                   1,366,034                             16,028       58,046                           21,467  1,461,574 
North Carolina                               779,871                             15,308       75,757                           36,363    907,299 
North Dakota                                 192,539                              2,233        4,198                                0    198,970 
Ohio                                       1,047,877                             19,884       81,721                           19,517  1,169,000 
Oklahoma                                     465,604                              8,380       19,266                                0    493,250 
Oregon                                       354,111                              4,219        6,124                                0    364,454 
Pennsylvania                               1,263,460                             15,672       75,171                           98,347  1,452,651 
Rhode Island                                 155,474                              1,883            0                                0    157,356 
South Carolina                               456,633                              8,686       39,627                            2,762    507,707 
South Dakota                                 200,028                              2,483       10,343                                0    212,854 
Tennessee                                    605,013                             12,060       47,765                           33,257    698,095 
Texas                                      2,330,764                             43,408      228,337                                0  2,602,509 
Utah                                         214,770                              2,682        9,396                                0    226,848 
Vermont                                      134,835                              1,617            0                                0    136,452 
Virginia                                     743,028                             14,357       64,750                           31,796    853,930 
Washington                                   530,117                              9,319        5,358                                0    544,794 
West Virginia                                241,452                              3,848       15,979                           82,269    343,548 
Wisconsin                                    550,530                              6,782       57,813                                0    615,125 
Wyoming                                      206,506                              2,378        8,552                                0    217,436 
Subtotal                                  28,752,597                            469,890    2,000,000                          446,970 31,669,457 
High Priority Projects                     2,821,046                             30,736            0                                0  2,851,782 
Allocated Programs                         4,223,597                            341,629            0                                0  4,565,226 
Total Limitation                          35,797,241                            842,254    2,000,000                          446,970 39,086,465 
-------------------------------------------------------------------------------------------------------------------------------------------------

Federal-aid highways and bridges are managed through a federal-state partnership. States and localities maintain ownership and responsibility for maintenance, repair and new construction of roads. State highway departments have the authority to initiate federal-aid projects subject to FHWA approval of plans, specifications, and cost estimates. The federal government provides financial support for construction and repair through matching grants, the terms of which vary with the type of road.

There are almost four million miles of public roads in the United States and approximately 594,000 bridges. The federal government provides grants to states to assist in financing the construction and preservation of about 971,000 miles (24 percent) of these roads, which represents the National Highway System plus key feeder and collector routes. Highways eligible for federal aid carry about 85 percent of total U.S. highway traffic.

Under SAFETEA-LU, federal-aid highways funds are made available through the following major programs:

Surface transportation program (STP)- STP is a flexible program that may be used by states and localities for projects on any federal-aid highway, bridge projects on any public road, transit capital projects, and intracity and intercity bus terminals and facilities. A portion of STP funds are set aside for transportation enhancements and state sub-allocations are provided. The federal share for STP is generally 80 percent, subject to the sliding scale adjustment, with a four-year availability period.

National highway system (NHS)- The NHS program provides funding for a designated National Highway System consisting of roads that are of primary federal interest. The NHS consists of the current Interstate, other rural principal arterials, urban freeways and connecting urban principal arterials, and facilities on the Defense Department's designated Strategic Highway Network, and roads connecting the NHS to intermodal facilities. Legislation designating the 161,000 mile system was enacted in 1995 and the Transportation Equity Act for the 21st Century (TEA-21) added to the system the highways and connections to transportation facilities identified in the May 24, 1996 report to Congress. The federal share for the NHS program is generally 80 percent, subject to the sliding scale adjustment, with an availability period of four-years.

Interstate maintenance (IM) program.--The IM program finances projects to rehabilitate, restore, resurface and reconstruct the Interstate system. Reconstruction that increases capacity, other than HOV lanes, is not eligible for IM funds. The federal share for the IM program is 90 percent, subject to the sliding scale adjustment, and funds are available for four years.

Funds provided for the Interstate maintenance discretionary program in fiscal year 2007 shall be available for the following activities in the corresponding amounts:

Alameda County I-580 HOV Lane, CA $1,000,000
Cactus Avenue, NV 500,000
Depression of Belt Line Road Below Grade at I-35, TX 750,000
I-10--Grove Avenue, Ontario, CA 750,000
I-10 Improvement Project, Western Maricopa County, AZ 750,000
I-10 Ramon Road/Bob Hope Interchange, CA 500,000
I-15 Bluff Interchange, St. George, UT 1,000,000